Liberal deserter Julia Banks fuels chaos in Coalition ranks

The defection of Julia Banks to the crossbench has aided Labor’s attempts to destabilise the minority government.

Julia Banks with independents Cathy McGowan, Rebekha Sharkie and Kerryn Phelps after announcing her resignation from the Liberal Party yesterday. Picture: Gary Ramage

Scott Morrison’s pre-election legislative ­agenda is in disarray after Victorian MP Julia Banks quit the ­Liberal Party and defected to the crossbench, aiding Bill ­Shorten’s attempts to destabilise the minority government and ­target Home Affairs Minister Peter ­Dutton.

The shock resignation, deliv­ered at the same time the Prime Minister announced an April 2 budget, has increased the threat that Mr Dutton will be ­referred to the High Court to test his eligibility to sit in parliament.

The Australian understands the Prime Minister was blindsided by Ms Banks’ announcement yesterday, with the Malcolm Turnbull loyalist marching to the office of Attorney-General Christian Porter with independent MP Kerryn Phelps to seek urgent advice on Mr Dutton’s case.

Her resignation coincided with calls from Julie Bishop for the ­Coalition to revive the doomed ­national energy guarantee, throwing the government into further chaos. Ms Banks, who is believed to have kept in contact with Mr Turnbull since his dumping in ­August, launched a scathing ­attack on the culture of the Liberal Party, claiming it had been taken over by “right-wing” forces.

The Coalition now faces a mounting legislative challenge, with its numbers reduced to just 73 seats on the floor of the House of Representatives, putting in doubt a range of crucial bills, including on energy, national security and religious freedoms.

 

Mr Morrison will rely on an early budget to save the ­Coalition but risks falling hostage to an emboldened opposition which will seek to win over a larger crossbench to its alternative agenda.

Ms Banks, who holds the seat of Chisholm by 3.4 per cent following a redistribution, delivered her bombshell in parliament at midday as Mr Morrison and Treasurer Josh Frydenberg were announcing they would hand down a budget on April 2, and effectively confirming an election in mid-May. Parliament is due to sit for only two weeks next year before the budget.

The timeline sets up a gruelling six-month campaign for Mr Morrison as he negotiates a more hostile parliament that could veto his “big stick” plan to break up the ­assets of energy companies and scuttle his response to a long-awaited review of religious freedoms. Mr Morrison must win the support of at least two crossbenchers to pass legislation, while Labor could suspend standing orders to move key votes in the house with the support of all seven independents.

Maverick north Queensland MP Bob Katter has now emerged as kingmaker after earlier pledging support for Mr Morrison in ­return for $234 million in water projects in his electorate of ­Kennedy.

The Australian understands Mr Turnbull, who retains support from former staffers, has remained in contact with a group of ­Coalition MPs and ministers since he quit parliament following the August leadership spill.

He is accused by some of running a shadow campaign against Mr Morrison to bring down the government, while other MPs yesterday said the removal of the ­former prime minister had ­entrenched perceptions of division and dysfunction.

 

The former prime minister has publicly called for the referral of Mr Dutton and, despite claiming he was stepping away from the political arena, has publicly criticised the conservative wing of the party he blames for toppling him.

The Morrison government last night threatened it would move to refer Labor MPs Mike Freelander, Tony Zappia and Anne Aly, with questions raised over their eligibility. A senior government source said at least one crossbencher had privately told them they would only back the referral of Mr Dutton if all other MPs with eligibility questions were included. They ­include Dr Phelps, the newly elected member for Mr Turnbull’s former seat of Wentworth.

Ms Banks’ move to the crossbench could give Labor enough support to successfully pass a ­referral motion, after questions were raised under section 44 of the Constitution over an arrangement between the commonwealth and Mr Dutton’s family trust.

Leader of the house Christopher Pyne said there was “very strong advice that Peter Dutton doesn’t have a section 44 issue”.

“Of course there are a number of Labor MPs — Anne Aly, Emma Husar, Tony Zappia, (independent MP) Kerryn Phelps herself in fact in terms of her involvement with Medicare, potentially she might have a problem, she says she has advice that says she doesn’t, and so does Peter Dutton. Mike Freelander, of course, he’s in the same boat,” Mr Pyne said.

“We could all sit here and throw stones at each other around section 44. I think the public are thoroughly sick of that and want us just to get on with the job.”

Dr Phelps, whose vote on a Dutton referral could be crucial, has not decided whether she would support a motion.

Ms Banks, who failed to turn up to a crisis meeting of Victorian Liberal MPs on Monday, made a point of praising Mr Turnbull and Ms Bishop as “visionary, inspiring leaders of sensible centrist liberal values with integrity and intellect”.

“My sensible centrist values, belief in economic responsibility, and focus on always putting the people first, and acting in the ­nation’s interest have not changed,” she said. “The Liberal Party has changed. Largely due to the ­actions of the reactionary and ­regressive right wing who talk about and talk to themselves, rather than listening to the people.

“To continue to put the people before the party and act in the ­nation’s interest authentically and constructively, effective immediately I will serve as a member of this House of Representatives as an independent representative. I intend to give the government my assurances to confidence and supply. In the new year, I will make a decision about my future career path.”

A source close to Mr Turnbull told The Australian he had been unaware of Ms Banks’ intentions to quit the party. Ms Bishop, who praised Ms Banks, repeated her calls for more female representatives in the Liberal Party. But her call for the NEG to be revived reignited hostility ­between moderate and conservative factions.

Mr Morrison attempted to rally his troops in the Coalition partyroom yesterday. He also said his government was “getting on with the job” as he faced questioning from Labor in parliament, with Mr Shorten repeating his demand for a proper explanation as to why Mr Turnbull was forced out.

Mr Shorten accused the ­Coalition of being “consumed by division, dysfunction and chaos”, with Labor seizing on Ms Bishop’s comments about the NEG and revelations Mr Turnbull’s downfall had stalled a decision on a ­national corruption body.

Industrial Relations Minister Kelly O’Dwyer was also unable to deny reports at the dispatch box that she had described the Liberals as being regarded as “homophobic, anti-women, climate-change deniers” at a Monday crisis meeting of Victorian MPs following the party’s rout at the state election. Centre Alliance MP Rebekha Sharkie said she had no “formal agreement with the government” and would not advocate for an early election.

Ms Banks’ pledge on supply and confidence makes a forced early election unlikely. She will decide in the new year whether to contest the 2019 election as an independent candidate.

Additional reporting: Joe Kelly