Michael Daley steps down as NSW Labor leader

Opposition Leader Michael Daley defended his campaign in Maroubra, after a 10.3 per cent swing against him, as his office expects the 10.3 per cent drop to narrow as votes are counted.

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Michael Daley’s Saturday started with a plain pie and strawberry milk in Matraville and ended with a swing against him in his own backyard.

By Monday he had stepped down as NSW Opposition Leader following Labor’s defeat to the Berejiklian government.

Mr Daley announced his decision amid speculation of a leadership challenge, saying he would recontest for the position after the federal election.

“To do otherwise would be an unnecessary distraction from the task of electing a Shorten Labor Government in a few weeks’ time,” he said.

“I will be contesting the leadership when nominations are called for that position.”

Michael Daley during a press conference at Maroubra beach on Sunday. Picture: Jonathan Ng

Mr Daley was still comfortably returned as the state Maroubra MP, so far earning 57.8 per cent of the vote on a two-party preferred basis.

However, early vote counts revealed a 10.3 per cent swing away from him on a first preference basis.

It is understood Mr Daley’s office expects the swing to narrow in his favour as votes are counted.

Ballots are still coming in from voting centres in Botany, Chifley, La Perouse, Maroubra Bay and St Johns Maroubra.

Mr Daley was still comfortably returned as the state Maroubra MP, so far earning 57.8 per cent of the vote on a two-party preferred basis.

Michael Daley’s “lucky” election breakfast at House of Pie in Matraville. (AAP Image/Joel Carrett)

However, early vote counts revealed a 10.3 per cent swing away from him on a first preference basis.

It is understood Mr Daley’s office expects the swing to narrow in his favour as votes are counted.

Ballots are still coming in from voting centres in Botany, Chifley, La Perouse, Maroubra Bay and St Johns Maroubra.

“We were up against a strong independent here and what happens when you’re the leader, particularly when you’ve got to condense your entire four-year leadership situation into four months, is you don’t work in your own electorate,” Mr Daley said on Sunday.

“It’s one of the quirks of the Westminster system is that when you’re the leader, you have to spend more time in other people’s electorates than your own. I wasn’t here to campaign.”

He was grateful to the people of Maroubra for understanding the “responsibilities of leadership” in re-electing him: “They’ve had premiers before, they’ve had federal ministers before … that’s the slack that they cut you.”

On Saturday he cast his vote at Chifley Public School about 8.45am, before boarding a campaign bus bound for marginal seats around Sydney.

In Maroubra the candidates attempting to wrestle away possession of his seat could smell blood.

Maroubra Liberal candidate Pat Farmer chats with a voter at Maroubra Junction Public School. Picture: Heath Parkes-Hupton

Liberal Pat Farmer said he could sense a “desire for change”, and independent Noel D’Souza could feel a “tidal wave” of votes flowing away from Mr Daley.

Both believed Mr Daley had taken his seat “for granted” during the campaign.

Mr D’Souza, who gained 14.1 per cent of the vote, said a week of gaffes from the sitting member had turned some voters away.

Noel D'Souza, the independent candidate for Maroubra at Matraville Public School.

Mr Farmer had attracted 31.9 per cent of first preference votes on Monday afternoon.

Some locals heading to the ballot box were conscious of Mr Daley’s infamous comments about Asian migrants “taking” young people’s jobs.

Speaking at Maroubra Junction Public School, Daniel, who voted for The Greens instead of Labor, said the comments had turned him off Mr Daley.

“A lot of my fiends are Asians with PHDs,” he said. “I was pretty neutral on him before but not anymore.”

In the wake of a disappointing election result for Labor, Mr Daley maintained he was still the “best person” to lead the party but faces a likely leadership challenge.

But late on Monday afternoon he announced he would step aside until after the federal election, when he would recontest for the position.