Liberal leadership hopeful wins back Hawthorn as Labor plans reshuffle

Liberal Party leadership contender John Pesutto has won back the seat of Hawthorn, as Premier Daniel Andrews prepares to unveil his new cabinet as early as Friday.

On Wednesday afternoon, the former shadow attorney-general edged ahead of teal candidate Melissa Lowe by more than 1000 votes, after a 2 per cent swing towards the Liberals on a two-party preferred measure. Lowe conceded just before 5pm.

John Pesutto has won back the seat of Hawthorn.Credit: Eddie Jim

Four years ago Pesutto was beaten by Labor’s John Kennedy, in one of the shocks of the 2018 “Danslide” election.

On Wednesday, Pesutto took to Twitter to acknowledge his win and thank Kennedy. “Moments ago, John Kennedy graciously called to offer me congratulations on the Hawthorn result,” he wrote.

“I pay tribute to John for representing our community over the last four years in parliament and I warmly acknowledge his dedication and work for the people of this electorate.”

The win will keep Pesutto in the race to replace Matthew Guy, who on Sunday resigned as Liberal leader following the party’s disastrous election result the previous day.

Berwick MP Brad Battin and Polwarth MP Richard Riordan will also contest the leadership when the ballot is held late next week. Battin and Pesutto both believe they are likely to win, though Guy has told at least one colleague that he was likely to back Pesutto.

Finance spokesman Ryan Smith pulled out of the leadership race on Wednesday morning and will instead back Battin for the job.

“I have taken the decision today to withdraw my candidacy for the leadership of Liberal parliamentary team,” Smith said.

The Liberals’ leadership contest comes amid a reshuffle in Labor ranks.

St Albans MP Natalie Suleyman and Northern Metropolitan Region MP Enver Erdogan are widely tipped to be elevated to the frontbench, while Lizzie Blandthorn could lose her planning portfolio because of conflict of interest questions due to her lobbyist brother representing major development, construction and infrastructure clients.

Colin Brooks, Steve Dimopoulos, Harriet Shing, Sonya Kilkenny and Blandthorn were appointed to cabinet in June as part of a major reshuffle, but Andrews is expected to make several changes following Saturday’s election victory.

Several MPs who spoke to The Age said it was the wish of the victorious premier and his office to cause minimum instability in the reshuffle, which can occasionally cause severe tension between MPs and diminish morale.

When asked on Wednesday whether she expected a reshuffle, Deputy Premier Jacinta Allan refused to speculate on ministerial changes but said it was “an honour to serve in the portfolio the premier allocates”.

Labor MP Enver Erdogan is being tipped to join the cabinet.

“There’s the usual caucus processes that have to be worked through and then the usual process of the premier allocates portfolio.”

Upper house MP Jaala Pulford announced her resignation from politics a few weeks before the election, leaving the government with one vacancy on its frontbench. Her former colleague in the Legislative Council, Shaun Leane, is tipped to move out of cabinet and make way for Erdogan, who is part of the shop workers union.

The dominant Right faction grouping – made up of the Transport Workers Union, shoppies union and MPs aligned with Deputy Prime Minister Richard Marles – has gained new MPs since the election, and will push for up to three new cabinet positions. The smaller right-wing grouping, including the Australian Workers Union, has about three more ministers than it is entitled to under a numerical quota system.

Several Labor sources speaking on the condition of anonymity expected Blandthorn to be moved out of the planning portfolio. In July, she recused herself from any project involving her brother, John-Paul Blandthorn, a director of Labor-linked lobbying firm Hawker Britton, to avoid a conflict of interest with his construction and development clients.

Blandthorn’s appointment in June caused angst among senior government and Labor insiders. The Age is not suggesting there has been, or will be, any impropriety between the Blandthorn siblings, only that the minister’s appointment raised potential conflicts of interest.

The final make-up of Labor’s caucus may not be known for at least another week because several lower house seats are still too close to call and counting in the upper house continues.

The results in Bass, Hastings, Mornington, Northcote, Pakenham and Preston remain unclear. However, Labor strategists believe the party is unlikely to win Bass or Pakenham.

On Saturday, the National Party picked up three extra seats, boosting the party’s numbers in the lower house to nine. The Nationals also expect to finish with another two members in the upper house.

Under the current Coalition agreement, the Nationals are now entitled to four shadow ministerial positions on the Coalition’s frontbench. Nationals leader Peter Walsh said he would negotiate with the Liberal leader for more portfolios.

Walsh said the deal – signed before the 2018 election – was a two-term agreement and would only be renegotiated if one of the parties wanted to change the agreement.

He confirmed the Nationals would not break away from the Liberal Party in opposition as they did after the 1999 election.

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