Most likely challengers to John Pesutto’s Liberal leadership

Defiant John Pesutto has vowed to fight on as Victorian Liberal Leader after a damning court ruling that he defamed Moira Deeming, but some MPs claim a challenger may surface soon, and there are a number of names in the mix.

A defiant John Pesutto after his loss to Moira Deeming in the Federal Court for defamation. Picture: Ian Currie

Defiant John Pesutto has vowed to fight on as Opposition Leader after a damning Federal Court ruling that he defamed his exiled colleague Moira Deeming – as some Liberal MPs said he was “safe for now” and others claimed a challenger could emerge before Christmas.

In a bombshell verdict, Justice David O’Callaghan on Thursday ordered Mr Pesutto to pay $300,000 in damages to Mrs Deeming, after she sued him for painting her as a Nazi sympathiser when a women’s rights rally she organised was gatecrashed by white supremacists.

In a huge blow to Mr Pesutto, he also faces having to fork out for Mrs Deeming’s costs, as well as his own lawyers, with those bills potentially topping $2m.

Nearly a year ago, Mr Pesutto ignored an offer from Mrs Deeming – without having to apologise – to settle the dispute for just $100,000 and preliminary legal costs, it emerged yesterday.

Some MPs say Victorian Liberal Party leader John Pesutto is “safe for now”, but others are not so sure. Picture: David Crosling

Some colleagues described Mr Pesutto’s leadership as “untenable” last night, with suggestions several MPs could resign from his front bench in order to force a change.

There were even suggestions a challenger could emerge before Christmas.

Brad Battin, Sam Groth and James Newbury were named as the most likely challengers to Mr Pesutto’s leadership, while Jess Wilson was also mentioned.

Senior MP Bev McArthur was scathing of her leader, saying: “Twice in his judgment, Justice O’Callaghan finds that the sworn evidence given by Mr Pesutto is false. All five claims made by Mrs Deeming of defamation against her were validated by the judge and damages awarded. It seems the judge has passed judgment.”

Exiled Liberal MP Moira Deeming. Picture: Ian Currie

Another said Mr Pesutto “should do the right thing and go with dignity”.

“I think it comes to a stage where not everything is about him. He needs to do what’s best for the party. He has not shown leadership at all. The writing is on the wall. If he doesn’t make the decision, it will be made for him,” the MP said.

But most of the Liberal MPs spoken to by the Herald Sun believed a spill was unlikely in the immediate future, with some suggesting his position was as strong as ever.

Supporters pointed to the Victorian Liberals’ resurgence, with recent polls showing increasing support for the party and Mr Pesutto as preferred premier over Jacinta Allan.

Backbench MP Wayne Farnham said: “John’s approval rating continues to go north, when everything is going north, don’t shit yourself. The Moira stuff is insignificant to what’s happening in Victoria.”

James Newbury is a name in the mix to potentially challenge Mr Pesutto for the leadership. Picture: Nadir Kinani

Several MPs added there was no alternative enough colleagues could agree on.

One source said both Mr Newbury and former leader Matthew Guy had “protested their loyalty to Pesutto” during the day.

A senior MP said the situation was best summed up as one of “confusion”.

Mr Pesutto said he had not been informed of any threats to his leadership.

Former premier Jeff Kennett called on agitating MPs to “put up or shut up”, calling the next few days a “bigger test” for the party to show it was united.

“If there are people talking, telling him to resign, they ought to put their name on the record,” he said.

Sam Groth is another name that has been mooted as a potential challenger to Mr Pesutto. Picture: Getty

Mr Kennett, a key backer of Mr Pesutto, said: “Like many others, I was shocked at the decision. To me, (the case) it’s finished, it’s over. Now we’ve got to move on. It’s got financial consequences which we need to address … (but) I’ll do whatever I can to help him.”

Mr Pesutto was coy when asked how he planned to cover the damages and costs, despite saying he would be transparent in declaring where the money would come from.

“I don’t want any Victorians to be worried about how I’ll pay my bills. My chief concern is how Victorians will pay their bills in a cost-of-living crisis, under a Labor government that doesn’t care about easing the tax burden and getting our debt down,” Mr Pesutto said.

Labor leader of the house Mary-Anne Thomas said Mr Pesutto needed to “immediately disclose the amounts he has received and what he has promised wealthy donors for their support”.

He and Mr Kennett should also reveal “who they are now soliciting donations from to prevent John Pesutto from being bankrupted and therefore ineligible to be an MP”, she said.

Delivering his judgment, Justice O’Callaghan said Mr Pesutto had made defamatory imputations in five publications: in a media release, interviews on 3AW and the ABC, at a press conference and in an expulsion motion and dossier.

He found that Mr Pesutto’s defences of public interest, honest opinion and common law qualified privilege failed.

While making his defamation finding, Justice O’Callaghan concluded Mr Pesutto had not lied while testifying during the trial, but described much of his evidence as “infuriatingly unresponsive”.

Moira Deeming says she is “grateful to God” for the legal win. Picture: Ian Currie

Mrs Deeming said she was “grateful to God” for the legal win, which she described as a vindication, adding that she expected to be welcomed back into the Liberal Party room.

“I was unjustly expelled,” she said. “I have every right to be there. I did nothing wrong.

“Not one Liberal Party value was honoured or furthered in Victoria by this relentless and remorseless campaign to discredit me … My door is open if anyone wants to speak to me.”

Former Liberal prime minister Tony Abbott posted to social media that Mrs Deeming “should now swiftly be readmitted to the party room”.

Mr Pesutto said he didn’t want Mrs Deeming to return to the party room, but that ultimately wasn’t his call.

“I’ve been on record previously saying I wouldn’t support that. But that’s not to say that matters cannot be put before the party room,” he said.

Most MPs said there was little appetite to welcome back Mrs Deeming, who the party voted to expel in May 2023.