Jeff Kennett warns: Victorian Liberals are facing an ‘extraordinary implosion’

Jeff Kennett says a threat to sue former premiers including himself and six other Liberal figures is the ‘most extraordinary thing to do and the Labor Party must be laughing’.

Former Victorian premier Jeff Kennett has warned the Victorian Liberal Party is facing an ‘extraordinary implosion’. Photo: Glenn Hunt / The Australian

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Jeff Kennett says he made only a “token” donation to John Pesutto’s failed defamation defence and has warned that the Victorian Liberal Party is facing an “extraordinary implosion” over the internal crisis engulfing the opposition.

The former Liberal premier told The Australian on Wednesday he was not concerned by Moira Deeming’s threat to sue him and other former premiers Ted Baillieu and Denis Napthine to recover $2.3m in court-ordered legal costs if Mr Pesutto were unable to pay the sum by Friday.

“I have no worries about it all because my army training taught me you salute the uniform and support the leader, so when John (Pesutto) was under pressure, very early I made a token donation as a public gesture of supporting the leader; after that I had no idea or involvement in the conduct of the court case. It was a token ­donation,” he said.

Liberal state member for Hawthorn and former opposition leader John Pesutto. Picture: Jake Nowakowski

Mr Kennett described the threat to potentially sue the former premiers and six other Liberal figures, including two sitting MPs, in a letter from Mrs Deeming’s lawyer sent to Mr Pesutto’s legal team as the “most extraordinary thing to do and the Labor Party must be laughing”.

The May 21 letter, first reported by The Australian on Wednesday, referenced nine Liberal figures, including the three former premiers, as being potential targets of legal action to recoup the $2.3m in costs if Mr Pesutto is unable to pay and declared bankrupt.

“Each of the above persons has … a ‘sufficient connection’ with Mr Pesutto and the proceedings to enable the court to make non-party costs orders against them,” the letter on behalf of Mrs Deeming states. It goes on to claim the donors “had an interest in the proceedings, whether financial or otherwise, and, our client believes, took an active part in the conduct of the proceedings.”

Mrs Deeming sued Mr Pesutto in the Federal Court over alle­gations 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.

Mr Pesutto was ordered to pay Mrs Deeming more than $300,000 in damages.

Moira Deeming. Picture: David Crosling

Mr Kennett said he felt “deeply sorry” for senior Liberal MPs Georgie Crozier and David Southwick, who were among the nine Liberals named as potential targets. “I thought to myself what would it be like being in that partyroom where they become the second and third person who a fellow member is potentially going to sue? What must it be like being in a partyroom where there is so much division and deep, deep feelings? I just can’t imagine,” he said.

Mr Kennett said he joined the Liberal Party in 1970 and he had “never seen anything like this”.

He also said he felt sorry for the tens of thousands of Liberal members and volunteers “who have given their time because they believe in the fundamental values of the Liberal Party and had never volunteered their time to be part of this extraordinary implosion that is taking place”.

Mr Kennett’s comments came as Opposition Leader Brad Battin on Wednesday continued to insist his party remained united and would stick together to work towards winning next year’s state election.

Mr Battin said he wanted the costs matter resolved “as soon as possible” but refused to detail how he was dealing with it. “Every conversation I have with Cormack [Foundation] or the party will remain confidential. I’ve said that 1000 times,” he said.

Opposition legal affairs spokesperson Michael O’Brien said the letter was “bizarre” and “not helpful” to the party.

Mr Southwick said it was a “wake-up call” and marked a “line in the sand moment” for the party to resolve the matter and avoid a Hawthorn by-election, which would be triggered should Mr Pesutto be declared bankrupt.

He declined to comment on the potential threat to him but ­issued an emotional plea for the party to do whatever it could to save Mr Pesutto his job.

“The fact that he [Mr Pesutto] is fighting for his job, fighting for his livelihood is horrific,” Mr Southwick said.

Mr Pesutto on Wednesday said he was doing everything he possibly could to pay the costs he owed Mrs Deeming, while Mrs Deeming said there was “no case except the one against John”.