Victorian Nationals leader Peter Walsh stands down, replaced by shadow roads minister Danny O’Brien

Victorian Nationals MP Peter Walsh has been praised for his long contribution to the party after it was revealed he would be replaced as leader by Gippsland South MP Danny O’Brien.

Victorian Nationals Leader Peter Walsh has stood down after a decade in the job. Picture: Ian Currie

Victorian Nationals MP Peter Walsh will serve out the remainder of his term from the back bench after announcing he would step down as party leader after more than a decade.

The veteran MP’s decision to walk away from the top job has paved the way for Gippsland South MP Danny O’Brien to be elected as new leader.

Mr Walsh, who has led the party since 2014, told colleagues of his intention to step down two weeks ago. Mr O’Brien was elected unopposed during a partyroom meeting on Monday.

Lowan MP Emma Kealy, who had been widely touted as a future leader, will remain deputy leader.

Mr Walsh — known affectionately as “Walshy” to his colleagues and other parliamentarians — did not front the media alongside Mr O’Brien and Ms Kealy on Tuesday, but the party has said it was entirely his decision to step down.

New Victorian Nationals leader Danny O’Brien. Picture: Supplied

He will stay in parliament as the Murray Plains MP for the remaining two years of his term, avoiding a by-election for the party.

Mr O’Brien paid tribute to his predecessor’s political career, describing Mr Walsh as a “voice of reason (and a) source of wise counsel” who “maintained us as a team through some pretty difficult times”.

He said while there may be “little tweaks” between his leadership and Mr Walsh’s, he will retain a “laser-like” focus on the interests of regional communities.

“Particularly at the moment when we have a terrible government that is very city centric and focused on the urban areas at the expense of rural and regional Victoria,” he said.

Mr Walsh had served in shadow cabinet but will lose his portfolios overseeing Aboriginal Affairs, regional development and local government, sparking a minor portfolio reshuffle.

Opposition Leader John Pesutto with Nationals leader Peter Walsh. Picture: Nicki Connolly

Upper house Nationals MP Melina Bath will be elevated into shadow cabinet.

It’s unclear whether Mr O’Brien, who is a former journalist, will keep his portfolios of roads and casino, gaming and liquor regulation.

Mr O’Brien said he was committed to keeping the Liberal-National Coalition in place.

Federal Nationals leader David Littleproud said Mr Walsh’s contribution to the party has been “significant”.

“Peter Walsh has been one of the greatest Leaders for The Victorian Nationals because he never wavered in his commitment for regional, rural and remote Victorians,” he said.

Premier Jacinta Allan thanked Mr Walsh for his leadership and wished him well.

“I’ve always found Peter as someone that is good to work with, he’s a professional, he’s transparent and he’s very honest in his dealings,” she said.

Treasurer Tim Pallas said Mr Walsh’s contribution to politics has been “second to none”.

“He deserves enormous credit ... whatever he decides to do, he goes knowing that he’s made a great contribution to the state,” he said.