Craig Kelly to cause trouble if Libs dump him

The Liberal MP threatens to quit the government and be an outspoken crossbencher if he loses an upcoming preselection.

Craig Kelly at Parliament House in Canberra.

Liberal MP Craig Kelly has threatened to quit the government and be an outspoken crossbencher if he is rolled as the party’s candidate for the federal electorate of Hughes in NSW in an upcoming preselection battle.

Mr Kelly has told close supporters and senior Liberal MPs there would be severe consequences if he lost preselection to a “left-wing factional stitch-up”, warning that he would consider running for the electorate as an independent candidate at the next­ ­election.

The threat is a warning shot to Malcolm Turnbull as it would ­either cost the Prime Minister his wafer-thin majority in the House of Representatives or mitigate any potential gains in the up­coming round of “super Saturday” ­­by-elections.

Mr Kelly, an outspoken supporter of the coal industry, has been voicing a theory that party powerbrokers are moving against him at the behest of energy giant AGL. Mr Kelly’s theory was dismissed by his opponents last night as a “concocted conspiracy theory that has no basis in fact”, while a key supporter also doubted the claim.

Mr Kelly faces a challenge from NSW Liberal Party vice-president Kent Johns. One senior Liberal said yesterday: “Malcolm is mad if he doesn’t get Kent to pull out. You can’t roll Craig Kelly. We’ll lose the seat.”

The conservative MP is a key member of the Coalition’s ­­pro-coal Monash Forum ginger group and has been critical of the Prime Minister’s energy policies, which he believes are too generous to renewables.

He has also been critical of AGL for refusing to keep the Liddell coal-fired power station running and has advocated toughening competition laws to prevent the energy company from closing the plant.

Mr Kelly has told party figures that he is being punished for his criticisms of the government’s energy policy, while arguing AGL has influenced powerbroker Michael Photios to move against him because Mr Photios’s wife did advisory work for AGL last year.

Sources close to Mr Photios yesterday called the claims “fanciful”, “off the planet” and “a craftily designed conspiracy to distract from the fact he doesn’t have local support”.

A spokesman for AGL did not comment by the time of publication.

Party sources say Mr Johns has had the numbers to roll Mr Kelly in the seat at the past two elections but Mr Kelly was saved by the intervention of Tony Abbott in 2013 and Mr Turnbull in 2016, who both personally lobbied Mr Johns to withdraw himself from the contest.

Mr Turnbull will publicly support Mr Kelly in the preselection battle but Mr Johns is unlikely to adhere to any request that he stand down for a third time.

Mr Kelly’s supporters last night gave him a better than 50/50 chance of winning the vote against his moderate opponent. But supporters of Mr Johns argue he has the backing of up to 70 per cent of branch members, believing Mr Kelly’s loss could be on the same scale as Liberal National MP Jane Prentice in the Brisbane electorate of Ryan.

It comes as NSW party figures expect a flagged challenge against Bennelong MP John Alexander to go nowhere.

Mr Johns, a former Sutherland Shire mayor, nominated on Friday to challenge Mr Kelly, causing consternation even among some moderate Liberals.

Mr Johns, who is married to Melanie Gibbons, the Liberal member for the NSW state seat of Holsworthy, declined to comment yesterday.

The Australian understands factional powerbrokers have asked Mr Johns not to challenge Mr Kelly, to no avail.

Mr Kelly would not comment on his threats to leave the party or say whether he would run as an independent at the next election.

“Under the rules of the party, you’re not allowed to comment on party preselection but all I’d say is I look forward to standing on my record,” Mr Kelly said.

“I have successfully won Hughes for the Liberal Party ... and look forward to putting myself to voters at the next federal election whenever that is held.”