John Pesutto’s hold on the Vic Lib leadership slips as Sam Groth quits frontbench over defamation crisis

Victorian Liberal frontbencher Sam Groth has stunned his colleagues by quitting the frontbench, declaring that he could not ethically remain given the nature of John Pesutto’s defamation defeat.

Opposition leader John Pesutto holds a press conference after his loss to Moira Deeming in the Federal Court for defamation. Picture: NewsWire/Ian Currie

Victorian Liberal frontbencher Sam Groth has stunned his colleagues by quitting the frontbench, piling pressure on John Pesutto over the defamation crisis crippling his leadership.

Mr Groth declared that he could not ethically remain on the frontbench given the nature of Mr Pesutto’s defamation defeat.

Mr Groth’s decision dramatically raises the heat on the leadership question and will trigger intense debate among his partyroom colleagues.

It will be seen as a decision that will weaken Mr Pesutto’s position and could trigger other moves by potential leadership candidates.

Mr Groth, the former spokesman for tourism, sport and events, is widely seen as ambitious and coveting the leadership but is unlikely to gather enough votes on his own to seize the leadership from Mr Pesutto, sources said.

Victorian Liberal frontbencher Sam Groth has stunned his colleagues by quitting the frontbench. Picture: The Australian/ Luis Enrique Ascui

“At all times in my life, both professionally and personally, I have believed in acting with integrity,” he said in a statement.

“It is with regret that, following yesterday’s Federal Court judgment against John Pesutto and his subsequent decision to remain as Liberal leader, I have decided to resign from his front bench.

“In good conscience, I can no longer continue to serve in this role.’’

“My loyalty remains with the members of the Liberal Party, the people of my electorate of Nepean, and all Victorians.’’

A senior Liberal frontbencher said Mr Groth’s decision could destroy his career.

“He may never come back from this. It’s a seriously stupid decision,’’ the MP said.

“Sam looks like Sam is only for Sam and that never goes down well. We are meant to be a team.”

The announcement comes as there is open chatter about a compromise leadership ticket involving shadow treasurer Brad Rowswell and education spokeswoman Jess Wilson.

This would be a fallback position if it were decided that Mr Pesutto’s position had become untenable, with the Liberals facing a February 8 Prahran by-election.

Mr Groth’s decision came on the same day that Upper House MP Bev McArthur – an enemy of Mr Pesutto – challenged Mr Pesutto to declare his position vacant on and allow a spill.

Mr Pesutto laughed off the suggestion from Ms McArthur: “What Bev has said is nothing new to me.’’

Several sources said discussions about replacing Mr Pesutto were taking placeand would continue at the weekend.

At the same time, one senior MP said that Moira Deeming’s return to the partyroom would be “opposed to the end of the world’’ because of the damage caused by the defamation action.

It is believed that Ms Deeming is unconvinced that the partyroom will allow her return despite her defamation victory.

One senior MP said that Moira Deeming’s return to the partyroom would be “opposed to the end of the world’’. Picture: NewsWire/Ian Currie

Concerns about Mr Pesutto’s leadership are cross-factional but his heaviest critics are outside the moderate grouping, which has the numbers in the partyroom.

The partyroom was described by one senior MP as “volatile” in the wake of Thursday’s judgment.

“Elements of the party room are like a tinderbox at the moment, anything could happen,” the MP said.

The MP said a spill motion before Christmas could not be ruled out.

“It’s all in play,” the MP said.

Another MP said the names most often mentioned as potential leadership contenders were frontbenchers Brad Battin, Sam Groth and James Newbury, with Mr Rowswell and Ms Wilson a potential moderate alternative to Mr Pesutto.

“I don’t get a sense we have time to do it before Christmas,’’ a Pesutto critic said.

“It’s more likely to be early next year. He makes a mistake and then it’s all over.’’

Ms Deeming was awarded $300,000 in damages but the costs in the case could run to millions of dollars.

Ms Deeming, an independent MP since her expulsion from the Liberal partyroom last year, sued Mr Pesutto over allegations that he falsely portrayed her as a Nazi sympathiser after she helped organise and attended a Let Women Speak rally that was gatecrashed by neo-Nazis.

Judge O’Callaghan found Mr Pesutto defamed Ms Deeming in five media appearances and in a document supporting her expulsion from the parliamentary party.

He dismissed each and every point of defence offered by the Opposition Leader.

Justice O’Callaghan found Mr Pesutto defamed Ms Deeming in a media release by conveying that she was unfit to belong to the ­Victorian parliamentary Liberal Party because she knowingly associated with neo-Nazis.

He said Mr Pessuto defamed her by conveying that Ms Deeming associated with Nazis and in an ABC interview by conveying that Ms Deeming knowingly associated or sympathised with neo-Nazis and white supremacists.

And by conveying that Ms Deeming knowingly worked with activist Kellie-Jay Keen and other organisers to help them promote their agenda and radical views.