Dunkley MP Chris Crewther could be rubbed out by Section 44

THE Morrison government risks having the High Court rub out Chris ­Crewther, MP of the second-most marginal seat in Victoria, over shares he recently bought in local company.

EXCLUSIVE: The Morrison Government faces losing another MP and a nightmare by-election in its second most marginal seat in ­Victoria after a backbencher made an investment that could disqualify him from parliament.

Two weeks after the ­government lost its majority in the House of Representatives, it risks having ­Dunkley MP Chris ­Crewther rubbed out by the High Court under the ­notorious Section 44 of the Constitution, which has ­already seen 16 MPs booted since the 2016 election.

Chris Crewther, MP for Dunkley, which includes Frankston, Langwarrin and Mornington, is likely to face a vote in parliament to refer him to the High Court over shares he recently bought in local company Gretals Australia which specialises in developing highly innovative pharmaceuticals.

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Scott Morrison’s government could lose another MP. Picture: AAP Image/Dan Himbrechts

Labor has already signalled it plans to make a fresh attempt to refer Home Affairs Minister Peter Dutton to the High Court over his pecuniary interest in a childcare centre.

Since the government lost its majority at the Wentworth by-election earlier this month, it no longer has the numbers in parliament to protect its MPs being referred to the court.

Mr Crewther’s investment in Gretals is at risk of falling foul of Section 44’s ban on MPs having a direct or indirect pecuniary interest in any agreement with the Public Service of the Commonwealth.

ASIC records updated this week show that Mr Crewther is one of 14 shareholders of Gretals Australia, which is currently the beneficiary of a linkage grant from the Commonwealth through the Australian Research Council with the University of Melbourne.

He holds the shares in common with his wife through their self-managed superfund.

Dunkley MP Chris Crewther risks being rubbed out. Picture: Wayne Taylor

The commercial benefits of the Commonwealth-funded research under that grant are shared between the University of Melbourne and Gretals Australia under the grant, which has another year to run.

The company has also received direct grants from the Commonwealth in recent years including $50,000 from the Global Connection Fund in 2017.

MPs can only have direct or indirect pecuniary interests in an agreement with the Public Service of the Commonwealth if they have them through “an incorporated company consisting of more than 25 persons”.

When contacted today, Mr Crewther said he was unaware of the constitution’s rule about the number of shareholders.

“I thought I would support the local economy,” he said.

He said he was also unaware of how many shareholders the company had.

The seat of Dunkley includes Frankston. Picture: Wayne Taylor

If the High Court were to rule that Mr Crewther’s shareholding made him ineligible to sit in parliament, his seat would be declared vacant, reducing the government’s numbers to 74 members in the 149-seat House of Representatives.

The government’s chances of retaining Dunkley at a by-election would be bleak, with the most recent Newspoll showing Labor ahead 57 per cent to 43 per cent on two-party preferred basis.

At the 2016 election, Mr Crewther won the 51.43 per cent to 48.57 per cent.

If Mr Crewther and Mr Dutton were both to lose their seats, the government would be reduced to 73 MPs out of 148.

Faced with that prospect, the government could call an early election.

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