Ley must tackle economic policy to build credibility

On paper, Sussan Ley has the right mix of business training and practical experience to lead the Liberal Party back to the centre on economic management and, with it, political success. She has three finance degrees with a masters in tax law, has worked as a pilot and lived in a caravan as a shearer, and believes in the core Liberal values of opportunity and reward for effort. But she will need all the bush skills she can muster from her time spent working in the sheep sheds of Thargomindah in outback Queensland to unite her team and take them with her.

As the federal Liberal Party’s first female leader, Ms Ley represents something of a welcome fresh start, even though she was deputy to Peter Dutton and part of the leadership team that performed so badly at the May 3 federal election. Gender alone will not be enough to repair the disconnect that has been exposed between what the Liberal Party offers and what voters want. Ms Ley says she is humbled and honoured by her success in the leadership ballot against former shadow treasurer Angus Taylor by what was a slim margin of 29 votes to 25. She has promised to listen to party members and electors before taking any big decisions on future policy and shadow cabinet.

This is fair enough. But she was right to speak out immediately on the threat posed to social cohesion by the Albanese government’s handling of the Middle East conflict involving Israel and terrorist group Hamas. Beyond that is a long list of issues that must be dealt with, including the economy, housing, energy, and how best to recapture the support of voters in the major cities and suburbs of the nation.

Over the past two federal elections, the electoral map has been redrawn and shows the Liberal Party has been driven out of the cities to now hold less than 10 per cent of the available metropolitan seats. Ms Ley represents the food bowl seat of Farrer in southern NSW, which is a long way from the party’s once blue-ribbon heartland that has been under sustained attack from well-financed and so-called progressive independents.

Much of the blame must be shared with the Liberal Party organisation that has been largely dysfunctional at both state and federal level. But the challenge for Ms Ley is to find the balance that can satisfy the disparate parts of her party’s parliamentary membership as well as the requirements of Coalition partner the Nationals. Without unity here the party cannot expect to win the respect of voters. The strong showing by Queensland Nationals senator Matt Canavan in the leadership ballot against David Littleproud on Monday speaks to the size of the challenge. The same divisions over energy policy and net zero in the National Party exist within the federal Liberals.

Ms Ley will not be able to deliver electoral success for the Coalition unless she can find a way to deliver on the difficult issue of energy security and affordability in a way that does not inflame ideological divisions both among colleagues and the electorate at large.

Ms Ley’s deputy, Ted O’Brien, has a big role to play. Mr O’Brien led the Coalition charge in support of nuclear power and was effective in his debates on the issue with Energy and Climate Minister Chris Bowen during the election campaign. He spoke passionately at Tuesday’s press conference with Ms Ley, where he said being the youngest of 10 children instilled in him the importance of the group. Mr O’Brien said he was a pragmatic person and that would be a key moving forward to form policy.

Ms Ley is wise not to rush public debate on where to next on energy or net zero. The priority must be to identify the common ground and build a solid case on tax reform and economic management to hold the government to account. With debt rising to more than $1 trillion, the federal budget in structural deficit and productivity stuck, the economy is the Albanese government’s weakest link and should quickly be made the Coalition’s strongest suit.

Getting the best results will involve harnessing the energies and talents from across the party spectrum, including rival leadership candidate Mr Taylor and Jacinta Nampijinpa Price, who moved from the Nationals to offer herself as Mr Taylor’s deputy. Ms Ley spoke positively about both on Tuesday. It should also include Tim Wilson, who has provided a template to win inner-city seats back from the teals through holding a consistent message and hard work.

Ms Ley has promised to listen and “meet the people where they are” in the electorate and on policy. She says the road back to government for the Liberals includes every single seat that was lost both in the cities and in country areas. Her priority must be to instil a shared vision of Liberal values that transcends the internal divisions within her party and proves to voters her team is worthy of support.