Skip to content

Briefing

Party Negotiations

Coalition deal inches forward as Liberals agree to Nationals demands

Make us a preferred source

Link copied

The news: The Liberals have agreed to four key demands from the Nationals in principle, according to Liberal sources, paving the way for another Coalition agreement just days after the two parties split.

The context: The Coalition split on Tuesday after Nationals leader David Littleproud announced he could not be guaranteed key demands to sign on to another deal.

On Thursday, Littleproud announced he would not unveil his own shadow frontbench to give Ley time to take the proposal to the Liberal party room on Friday.

Despite significant frustration in the Liberal party room over Littleproud’s handling of the issue, which set off days of public bickering, MPs agreed to back the demands.

The demands include:

  • A lift on the national moratorium against nuclear energy;
  • A $20 billion future fund for regional Australia;
  • Guarantees on mobile service in regional areas; and
  • Divestiture powers to break up the big supermarkets.

All had been official Coalition policy before the last election, though former opposition leader Peter Dutton had gone further by promising state-built nuclear reactors.

It comes after 48 hours of public recriminations for Littleproud’s decision to walk out on the Coalition.

Ley said Littleproud had refused to commit to cabinet solidarity – requiring frontbenchers to vote in unison – during initial discussions.

But after Littleproud publicly said that was not a deal-breaker on Thursday mornings, talks quickly resumed that day and both leaders shelved plans to unveil their own frontbench.

The Liberals agreeing to the demands means a new Coalition deal is extremely likely, after the Nationals stated publicly they were the only impediment to a new agreement.

On Thursday, Littleproud insisted the saga would not prevent him working productively with Ley – claiming backgrounding against the Nationals had not come from her office.


By Finn McHugh and Anthony Galloway