Coalition deal nears as Sussan Ley and David Littleproud bow to pressure
Updated ,first published
The Liberal and National parties are moving closer to a reunion that would avoid a prolonged and historic break after Opposition Leader Sussan Ley and National Party leader David Littleproud moved to patch things up after weeks of bickering.
After a tense period over demands that appeared likely to precipitate a formal split, Ley and Littleproud on Saturday took major steps to revive the ailing Coalition, according to two National MPs and several Liberal MPs familiar with the talks.
The deal had not yet been formally signed on Saturday night, but Ley told senior MPs it was moving in the right direction, and senior MPs from both parties said the deal should be announced as early as Sunday as long as neither side makes any unworkable demands later in the process.
Opposition small business spokesman Tim Wilson said on Sunday that “significant steps” had been made in resolving the impasse and suggested more information would come “later in the day”.
“I think the expectation is that the National Party will come back.” [to the Coalition] Because we will focus our aim on accepting a proposal for solidarity and shadow cabinet solidarity and that will be the way forward,” Wilson told Sky News: “The only winner from this conversation at the moment is [are in] Labor Party.”
The alliance broke up in January when three leading members of the National Party breached convention to vote against the Liberals on hate crimes legislation to address antisemitism in the wake of the Bondi massacre.
A major sticking point was Ley’s demand that the three rebels be removed from the front row if the Coalition was reassembled; Littleproud was against the proposal because the Nationals maintained the trio had done nothing wrong.
But on Friday morning Littleproud offered a concession, proposing that the three front-row players, along with all national players, receive a collective six-week suspension before rejoining the front-row in March. Under Ley’s counter-proposal, the Coalition agreement would come into force immediately, but the National Party would only return to the shadow cabinet from March, six weeks after the breach of party discipline that sparked the crisis.
Ley’s allies and moderate Liberals opposed the National Party’s latest request, but Ley was pressured by right-wing leaders Angus Taylor and James Paterson, as well as deputy leader Ted O’Brien and neutral MPs such as Dan Tehan and James McGrath, who wanted to accept the new deal.
Speculation was also rife on Friday and Saturday that Taylor would step down from the front bench and resign as leader next week if Ley solidified the split and announced on Sunday that only the Liberals would be in the front row.
Appearing on Sky News on Sunday morning, Wilson dismissed rumors of a potential challenge and said he did not expect one next week and supported Ley’s leadership.
Ley disappointed his moderate allies by pushing for a deal with Littleproud on Saturday despite the Liberals’ proposal to suspend it until April being rejected by the National Party. In a meeting with most senior MPs on Saturday evening, Ley said final details had been worked out but a deal was nearing.
A National MP criticizing his leaders, speaking on condition of anonymity, claimed Ley had “openly capitulated” to Littleproud to announce a new Coalition deal before the upcoming parliamentary session.
Disputing that criticism, another Liberal said Littleproud had backtracked from his previous stance of admitting no fault and no punishment. “They both win a little, they both lose a little,” the MP said.
Either way, the reunification, which could be announced as early as Sunday if final details are ironed out, reflects how under pressure both Ley and Littleproud are to re-establish the Coalition. The pair have an adversarial relationship, and colleagues and party elders such as John Howard are encouraged to put their egos aside to prevent a split that would benefit Labor and cause electoral damage.
“For different reasons [Ley and Littleproud] “When they read the writing on the wall, they realized they had to save this thing for the good of the Coalition and their own leadership,” added a Liberal MP.
Another Liberal MP said the agreement represented a victory for Ley because the National Party appeared on the verge of codifying the fact that the National party chamber, which Littleproud highlighted as a critical body, could not reverse positions adopted by the joint Liberal-National party chamber.
The MP said Littleproud’s initial proposal to reform the Coalition only from March, which Ley rejected, would create weeks of chaos in which the country’s party would rebel against the Liberals in parliament.
Both leaders are likely to face questions from Labor and the media about how they can work harmoniously after expressing such strong discontent with the other party in recent weeks.
Littleproud announced about three weeks ago that no citizen could serve in the shadow cabinet alongside Ley.
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Paul Sakkal is the chief political correspondent. It has previously covered Victorian politics and won the Walkley and Quill awards. Reach him securely on Signal @paulsakkal.14Connect with: X or email.
Nick Newling is the federal politics correspondent for The Sydney Morning Herald and The Age.Connect via email.
