Scott Morrison delays next COAG meeting to finalise school and hospital funding deals

Three weeks into the job, Prime Minister Scott Morrison has called off a meeting next month with state and territory leaders.

PM Scott Morrison had delayed next month's COAG meeting. Picture: Kym Smith

Scott Morrison has cancelled a meeting between with state and territory leaders scheduled for next month as his government tries to lock down key policies school and hospital funding.

The Prime Minister contacted state premiers last night and told them the Council of Australian Governments meeting would not take place when next scheduled, on October 4.

The next COAG meeting will be in December. Sources close to the Prime Minister say the COAG leader meetings will be reduced to two a year, which was the usual protocol.

The Prime Minister’s office said the government’s junking of the national energy guarantee was not a reason for cancelling the meeting.

The COAG’s domestic violence summit, led by Women’s Minister Kelly O’Dwyer, will still go ahead in Adelaide on October 3.

The cancellation of the meeting comes as Mr Morrison’s attempt to kick start a new agenda has been undermined by internal leaking and allegations of bullying within the Liberal Party.

It means the next COAG meeting will be after the Victorian election and would give Mr Morrison clearer air in negotiating with either a Coalition government or an often recalcitrant Daniel Andrews.

The Prime Minister is hoping the states agree to the reliability component of the “dead” national energy guarantee, despite walking away from legislating or regulating the emissions reduction target.

The reforms that would require electricity retailers to contract sufficient dispatchable power requires state legislation.

The Australian also revealed this morning Mr Morrison is moving to pump at least $4 billion into schools funding under a complex new deal to appease Catholic and low-fee independent schools facing campus closures and fee rises under former education minister Simon Birmingham’s policies.

The deal was being finalised last night in talks between new minister Dan Tehan and the Catholic sector, led by Sydney Archbishop Anthony Fisher, and independents.