Nationals leader David Littleproud and Liberal leader Sussan Ley to meet for further Coalition talks

Barnaby Joyce has dismissed speculation he is helping to mount a leadership challenge against David Littleproud, as talks over a new Coalition deal get under way.

Nationals MP Barnaby Joyce has railed against his party’s commitment to net zero emissions as he played down the prospect of helping to mount a leadership challenge against David Littleproud.

Mr Littleproud is due to discuss a new Coalition deal with Liberal leader Susan Ley on Monday afternoon, with the two parties widely expected to reunify within days.

Barnaby Joyce says net zero is “disastrous”. Picture: NewsWire / Martin Ollman

Mr Joyce described last week’s Coalition split as “unedifying” and “chaotic,” though he dismissed speculation he was assisting former leader Michael McCormack to oust Mr Littleproud from the Nationals’ top job.

“No one’s rung me up for numbers or inquiring,” Mr Joyce said.

“I have no idea what’s going on.”

Mr Joyce reiterated his opposition to net zero, describing it as “disastrous for everyone” and complaining the infrastructure promised to the Nationals in return for their support of the policy had not been delivered.

“There is no deal. There’s no nuclear power stations anymore, there’s no dams, no roads, no railway line upgrades, no ports,” he said.

Senator James Paterson says he thinks the Coalition is landing in the ‘right place’. Picture: Jason Edwards / NewsWire

Liberal Senator James Paterson said on Monday he believed the two parties were “landing in the right place” on a Coalition deal, and praised Ms Ley for defending principles like shadow cabinet solidarity.

Mr Paterson said after effectively engaging in “therapy sessions out in public” the Liberals needed to work through the “difficult issues” dividing the party in order to rebuild after the election.

“It was not a close election, we were delivered a very strong message and we need to demonstrate that we’re listening, that we’ve heard the Australian people and we respond with a policy agenda that hopefully inspires them to vote Liberal and National at the next election,” he said.

After a brief separation the Liberals and Nationals are on track to reunite pending the rural party’s acceptance of “in principle” support for their key demands like nuclear energy and powers to break up supermarkets.

Mr Littleproud and Ms Ley have renewed attempts to hash out a Coalition agreement, with four policy positions the only remaining obstacles to the two sides forming a deal.

Nationals leader David Littleproud says he is ‘relaxed’ about his position. Picture: NewsWire / Martin Ollman

Two days after the Nationals sensationally quit the Coalition last week, Mr Littleproud hit “pause” on plans to walk away from the Liberals to give Ms Ley time to work through his party’s demands with her colleagues.

Ms Ley will be presenting Mr Littleproud with the Liberals’ counter offer to the Nationals’ request the Coalition agreement lock in support for nuclear, divestiture powers to break up the big supermarkets, a $20 billion regional fund and expansion of mobile coverage in the bush.

At an urgent meeting on Friday, the Liberals had agreed to support the ideas “in principle,” provided extra “context” was added to the policies.

This included that the $20bn fund be distributed fairly across all regional electorates, as well as making divestiture a “last resort” to tackle anti-competitive behaviour by supermarket giants.

All final policy positions would also still require shadow cabinet sign off.

Sources familiar with negotiations said they believed a Coalition agreement was imminent, with Ms Ley then likely to announce her shadow ministry shortly afterwards.

Liberal leader Sussan Ley is expected to unveil her shadow ministry this week after a Coalition deal is finalised. Picture: NewsWire / Martin Ollman

Deputy Liberal leader Ted O’Brien is expected to take on the treasury portfolio, a position previously held by Ms Ley’s leadership rival Angus Taylor.

Supporters of Mr Taylor said if he was not given the treasury role, it would be “unacceptable” for Ms Ley to offer anything other than foreign affairs or defence as an alternative.

The Nationals are in line to receive six shadow cabinet positions and two outer ministry roles.

Meanwhile, Mr Littleproud on Sunday declared he was “relaxed” about his position despite some colleagues arguing the drama had damaged his leadership.

“The vast majority of my party room decided to leave the Coalition. I enacted what was directed,” Mr Littleproud told Sky News.

Former leader and opponent of the split, Michael McCormack last week pointedly refused to rule out a future tilt, but Nationals sources said at this stage no one had the numbers to take on Mr Littleproud.

Nationals deputy Kevin Hogan said Mr Littleproud should “absolutely” remain leader.

Mr Hogan also played down the likelihood of the Coalition reopening the debate about supporting net zero emissions by 2050, saying this had been “settled years ago”.

Nationals MP Barnaby Joyce and Senator Matt Canavan are among those who have publicly questioned net zero, but Mr Hogan said the “policy is as we took to the election”.

Originally published as Nationals leader David Littleproud and Liberal leader Sussan Ley to meet for further Coalition talks