Liberal MPs are prepared to accept the Nationals’ watered-down demands to preserve the Coalition, clearing the path to reunite the parties after a dramatic split that has exposed deep internal divisions, bruised both leaders and bolstered Anthony Albanese’s grip on power.
But the split is expected to have ongoing repercussions even if it is patched up, as both sides privately accuse the other of capitulating during negotiations.
In a day of high drama in Canberra, the Liberal leader, Sussan Ley, and the Nationals leader,David Littleproud, agreed to pause the two-day-old breakup after making concessions during crisis talks on Thursday morning.
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Ley texted Littleproud at 9am to arrange the talks as some senior Nationals MPs pushed for their leader to reverse the decision to blow up the Coalition.
At the meeting, Littleproud guaranteed the Nationals would adhere to shadow cabinet solidarity while Ley committed to fast-track consideration of the country party’s four policy demands: support for nuclear power, breakup powers for supermarkets, a $20bn regional future fund and a guarantee for phone and internet access in the bush.
Liberal MPs – who were briefed on the dramatic developments at a virtual party room meeting on Thursday afternoon – expect to be summoned to Canberra next week to debate the policies.
The four policies were agreed upon, in some form, under former leader Peter Dutton but Ley promised to review them in the wake of the 3 May election defeat.
Senior Liberal sources predicted there would be “some grumbling” among colleagues about the policies – divestiture powers, in particular – but expected them to be endorsed in the interest of resurrecting the Coalition.
The Nationals have softened their position on nuclear in recent days and were open to supporting a lifting of the John Howard-era moratorium without committing to taxpayer-funded reactors.
It’s a position that is palatable to the majority of Liberal MPs.
Endorsement of the policies would clear the path for the Liberals and Nationals to reunite before the return of federal parliament on 22 July.
“There’s definitely a clear pathway now [to re-form the Coalition],” said one Liberal MP, who said the four policies were not “unreasonable”.
Sources inside the Liberals and Nationals were on Thursday attempting to frame the pause as a backdown from the other side.
“She blinked,” one Nationals MP said of Ley.
One senior Liberal MP said Littleproud “lost a lot of skin” over the past 48 hours and his leadership would now be under threat.
Pressure was mounting on Littleproud to make up with the Liberals aftersenior Nationals MPs Michael McCormack and Darren Chesterspoke up publicly against the split.
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Ley approached McCormack, Chester and Barnaby Joyce – who also questioned the break-up – in an attempt to broker a peace deal.
One Liberal source said both leaders ultimately conceded ground.
The source said Ley could have avoided “the whole bloody mess” by convening a party room meeting late last week to quickly resolve the policy positions.
Ley spent the latter part of last week in her home town of Albury with her terminally-ill mother, who died over the weekend.
“I think both David and Sussan miscalculated how serious the other one was [about their position] and how diabolical the outcome would be,” they said.
Another Liberal MP said Ley, who is in just her second week as leader, should be praised for saving the Coalition.
“If she can pull this off – good on her,” they said.
Ley and Littleproud were poised to unveil their respective all-Liberal and all-National frontbench lineups on Thursday, before the announcements were paused after the crisis talks.
If the parties are reunited and a Coalition agreement reached, Liberals and Nationals would sit alongside each other in shadow cabinet.