Liberal MP Julia Banks quits government to sit on crossbench

Scott Morrison was blindsided on Tuesday by rogue Victorian MP Julia Banks’ defection from his government to move to the crossbench destroying the Prime Minister’s big budget ­announcement in a perfectly timed assault that threw the Coalition government into chaos.

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A rogue Victorian MP has sensationally quit the Liberals and destroyed Scott ­Morrison’s big budget ­announcement in a perfectly timed assault that threw the Prime Minister’s Coalition government into chaos.

Chisholm MP Julia Banks blindsided the PM, delivering an explosive speech in which she quit the Liberal Party “effective immediately” at the same time as Mr Morrison revealed the government would hand down an early budget that would ­return the country to surplus before the next election.

The Daily Telegraph ­understands Mr Morrison, who was yesterday attempting to take control of the political agenda, had no idea Ms Banks was quitting the party.

Crossbencher Julia Banks (second from left) is welcomed by The Independents, Cathy McGowan, Rebekha Sharkie, Kerryn Phelps and Andrew Wilkie. Picture: Gary Ramage

Ms Banks, who had previously stated she would not recontest her seat for the party in protest at Malcolm Turnbull’s dumping, atten­ded a party room meeting where she did not tell colleagues of her plans shortly before pulling the ripcord.

But her attempt to destabilise the government ­appears to have backfired as senior moderates angry with her decision claimed the move would force MPs to “hunker down and show some discipline”.

One moderate front­bencher said it was hard to see anyone else following Ms Banks’ lead and instead ­expected their colleagues to “play a team game”.

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Julia Banks stands in the House of Representatives to resign as a Liberal backbencher. Picture Gary Ramage

In a disastrous start to the final sitting weeks for Mr Morrison, on Monday the government was forced into damage control after Queensland MP Llew O’Brien revealed he was considering crossing the floor to establish a national integrity commission.

Former deputy leader Julie Bishop then added to havoc with a stunning intervention into the energy debate in which she called on the government to do a deal with Labor to revive the dumped National Energy Guarantee.

Ms Banks said “dark days” in the aftermath of the ­August leadership coup had “acutely laid bare the major parties’ obstructionist and combative actions and ­internal games”.

When asked about Ms Banks’ defection Mr Morrison and Treasurer Josh Frydenberg ended a press conference at Parliament House.

“All for political point scoring rather than for timely, practical sensible decisions on matters which Australians care about,” she said. “The Liberal Party has changed. Largely due to the actions of the reactionary and regressive right wing who talk to themselves rather than ­listening to the people.”

As she spoke Mr Morrison fronted the media hoping to seize control of the agenda and refocus it on the economy with a plan to hand down an early budget on April 2 which he said would put the national books back in black.

Full statement from Julia Banks after leaving the Liberal Party.

It would also set up the next federal election to be held on either May 11 or 18.

The press conference was cut short when news of Ms Banks’ defection filtered through and Mr Morrison, flanked by Treasurer Josh Frydenberg, managed to avoid answering questions on the developing mess.

The government had also hoped to capitalise on embattled Labor MP Emma Husar’s pledge that she would recontest her seat of Lindsay as an independent if she was not re-endorsed.

Liberal MPs were yesterday furious with Ms Banks, labelling her a “traitor”.

The Prime Minister was admittedly ‘blindsided’ by Julia Banks’ resignation. Picture: Getty

Her move also forced Reid MP Craig Laundy to deny ­rumours he also planned to join the crossbench. Mr Laundy, who was considering whether to stand at the next poll, said the suggestion was a “complete and utter lie”.

But South Australian Senator Lucy Gichuhi, who joined Ms Banks in making claims about bullying during the leadership coup backed her decision given the party’s women problem. “Good on her,” she told the ABC.

Conservatives, already outraged at some MPs publicly blaming the faction for the loss in Victoria, said the move showed moderates were causing electoral grief through further instability.

Defence Minister Christopher Pyne said Ms Banks would have the “bear the consequences” of her decision to sit as a crossbencher.

Ms Banks agreed to give Mr Morrison confidence and supply, meaning her move would not bring down the government.