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Inside the showdown meeting that split the Coalition

David Littleproud and Sussan Ley’s Albury meeting marked a turning point, as deep policy rifts led the Nationals to walk away from the Coalition agreement.

The Nationals have walked out on the Coalition. AAP/Lukas Coch.

As David Littleproud drove to Albury to meet with new Liberal leader Sussan Ley on Thursday to negotiate a coalition agreement, one message from his party room echoed loudly: “No blinking”.

Fresh from fending off a leadership challenge from Queensland senator Matt Canavan, Littleproud needed to drive a hard bargain with Ley over contentious policies including nuclear energy, net zero and forced divestiture.

Ley, who was in Albury to care for her dying mother, faced a different imperative — avoiding any commitments that would further alienate metropolitan voters after the disastrous 3 May election result.

The two leaders were on a collision course. On Tuesday, soon after meeting Ley for the second time, Littleproud confirmed his party would rip up the Coalition agreement for the first time in 38 years.