NSW Labor prepares for civil war over Jodi McKay leadership

Walt Secord has quit as NSW shadow treasurer after declaring he could no longer serve on a frontbench led by Jodi McKay.

Senior Labor MP Walt Secord has quit the Shadow Cabinet, declaring he “can no longer serve in a Jodi McKay-led Shadow Ministry”.

“Effective immediately, I am resigning from the front-bench as Shadow Treasurer and the Shadow Minister for the Arts,” Mr Secord said.

Explaining his move to the backbench, Mr Secord said “the actions of a staff member of the Deputy Labor leader distributing a file on a colleague was completely unacceptable”.

“In short, it was absolutely disgusting,” he said.

Embattled NSW Labor leader Jodi McKay. Picture: NCA NewsWire / Gaye Gerard

It came after Labor sources backing Ms McKay as leader highlighted references to presumptive challenger Chris Minns’ in an Independent Commission Against Corruption hearing during an investigation into allegedly dodgy donations in 2019.

Shadow Treasurer Walt Secord has quit the ALP frontbench. Picture: Monique Harmer

The material - described by backers of Mr Minns as a “dirt file dossier” - also listed which candidates each Labor MP voted for in the 2019 leadership ballot which saw Ms McKay elected leader against Mr Minns.

Mr Minns lost the caucus ballot 21 votes to 29, and also lost in a ballot of rank and file Labor members.

Both Ms McKay and her deputy Yasmin Catley said they had not seen the material distributed to journalists.

Ms McKay dug in as Labor leader on Tuesday afternoon, declaring that in the 48 hours since the Upper Hunter byelection, no one had asked her to stand aside.

“No one at all made any comment that would in any way be construed as them not having confidence in me,” she said.

“No one has the numbers within our caucus to mount a challenge against me, which means I am the leader of the Labor Party,” Ms McKay said.

NSW LABOR IN CIVIL WAR

State Labor is preparing for a civil war with Leader Jodi McKay digging in, despite a mood from some in the party for an “orderly transition” to a new leader.

Supporters of Ms McKay have launched a major offensive against presumptive challenger Chris Minns, with Labor sources backing Ms McKay suggesting Mr Minns only has 14 votes in caucus.

That would be short of the 30 votes needed to bring on a spill.

However supporters of Mr Minns dispute that calculation, with one describing it as “laughably wrong”. MPs in the Minns camp believe they have the numbers to bring on a spill and oust Ms McKay in a caucus vote.

Chris Minns. Picture: NCA NewsWire / Gaye Gerard

Former Leader Michael Daley, who had been mooted as a contender for the Labor Leadership if it was vacated, on Tuesday called for the caucus to “stop the division and support Jodi”.

“The NSW Lib-Nat Government is a bad government that’s getting worse. It’s mired in scandal and they’ve got no plan for life after COVID,” he tweeted.

“We should be concentrating on their failures. We need to stop the division and support Jodi. NSW needs Labor united.”

Mr Minns lost the 2019 caucus leadership ballot to Ms McKay 21 votes to 29

Ms McKay’s backers have also sought to highlight Mr Minns’ links with allegedly dodgy donations in a bid to weaken his leadership position.

As part of a 2019 investigation into suspect donations to the Labor Party, the Independent Commission Against Corruption heard that Mr Minns received more than $10,000 of dollars in cheques from straw donors.

Mr Minns was not called to give evidence to the ICAC.

ICAC Commissioner Peter Hall said that because Mr Minns not given evidence, “it would be quite unfair for anyone to draw inferences or suggest the significance of any evidence concerning the cheques … circumstances where Mr Minns has not given evidence at all about the matter”.

Mr Minns said he would repay the money at the time.

Ms McKay’s supporters say the party’s head office continues to support her as leader.

A growing chorus of Labor heavyweights are now calling for Ms McKay to step aside.

Former Labor senator Graham Richardson is the latest to voice his opinion following a disaster performance by the party in the Upper Hunter by-election.

Mr Richardson had previously been a supporter of Ms McKay but has changed his tone.

“I think the result the other day was probably the last straw for her. When it gets to this stage it is almost inevitable she is going to be defeated. It is increasingly obvious to me it is not the case,” he told 2GB’s Ben Fordham.

Former Senator Graham Richardson said it is time for Ms McKay to leave the top job.

“I think it’s time for Jodi to take a step aside and let someone else have a go.”

NSW Labor general secretary Bob Nanva has also spoken with Ms McKay to “consider her future.

Party sources said the push for a “sensible transition” is designed to avoid a contested ballot for the leadership.

Labor MPs said the party’s head office was also “indirectly” encouraging Ms McKay to consider her position by telling her caucus supporters she needs to go.

However, Ms McKay’s supporters dispute claims that Mr Nanva told her that it’s time to go, suggesting the conversations are instead about structural problems in the party.

“The general secretary is supporting the leader and in no way is he ­talking to her for her to stand down,” Upper House MP and McKay supporter Mark Buttigieg said.

Multiple Labor MPs who want a new leader now believe it is “inevitable” that Ms McKay will go, but the timing is still up in the air.

After Labor’s crushing loss in the Upper Hunter sparked a fresh round of leadership speculation, MPs said talk of an immediate challenge had been somewhat calmed amid the push for Ms McKay to step aside in the wake of a strong Nationals victory.

NSW Labor general secretary Bob Nanva

There is also a view among some that removing a leader following a by-election loss sets a dangerous precedent.

More by-elections are ­possibly looming after government MPs Gareth Ward and John Sidoti were forced to the crossbench.

Deputy Premier John ­Barilaro said the government might face a by-election in Mr Ward’s Kiama electorate “at some point in the future”.

Premier Gladys Berejiklian wouldn’t say on Monday whether she shares that view: “I don’t delve into the hypotheticals, that’s not my job, my job is to deal with the facts.”

The embattled Opposition Leader received sympathy from her political opponent, with Ms Berejiklian saying she felt “sorry” for Ms McKay “because NSW politics is tough”.