Sky News reveals policy paper behind National Party return to Coalition amid internal tensions and leadership rumours
The Liberal Party has formally endorsed a suite of policy concessions demanded by the Nationals in a dramatic attempt to repair the fractured Coalition.
Sky News has obtained the document, presented to and agreed to 'in principle' by Opposition Leader Sussan Ley and the Liberal Party.
These include lifting the nuclear energy moratorium, supermarkets divestiture powers, universal service obligations for regional telecommunications, and a $20 billion regional future fund.
The policy paper states:
'The Coalition commits to removing the moratorium on nuclear energy, at a minimum, with a review of the remaining elements of the Nuclear policy.
'The Coalition commits to the $20 Billion Regional Australia Future Fund. The fund will be provided with $5 billion in seed capital.
'The Coalition commits to introducing court-ordered divestiture powers for supermarkets and hardware stores as a last resort and with a clear public interest test enshrined in legislation.'
Nationals leader David Littleproud had walked away from the longstanding alliance earlier in the week, demanding commitments from the Liberals on four key policy areas.
There has been ongoing internal unease as Liberal Party members have expressed concerns about the manner in which the policy shift occurred.
Sky News understands Senators Andrew Bragg and Paul Scarr questioned the process, arguing that the Nationals were dictating policy outside the usual shadow cabinet framework.
Senator Jane Hume also raised concerns, warning that lifting the moratorium on nuclear energy without nominating sites could open the door for Labor to revive scare campaigns.
Behind closed doors, the power struggle within the Coalition extended beyond policy.
There has been rumours that Ms Ley or her emissaries may have floated the idea of having Nationals leader David Littleproud challenged to break the deadlock.
While former Nationals leader Michael McCormack acknowledged speaking with Ms Ley during the standoff, he denied that the conversations were about leadership.
Instead, he said he relayed the intensity of feeling within the Nationals party room—describing it as 'do or die' on their policy demands.
He also stressed the need for patience before publicly announcing a shadow cabinet, in order to ensure Coalition negotiations could continue in good faith.
Nationals MP Darren Chester also dismissed speculation of leadership moves and denied having spoken to Ms Ley.
He denied having had any conversation with Ms Ley or her ally, Alex Hawke, or anyone else about the leadership of Mr Littleproud.
Despite the drama, the Coalition appears to be edging back toward unity.
Ms Ley was authorised by the Liberal party room to take the agreed policy position back to Mr Littleproud and finalise further negotiations.
Outstanding issues such as frontbench appointments and committee roles are still to be resolved.
Mr Littleproud has planned to tour drought-affected areas next week, as he looks to reassert his leadership and refocus attention on regional issues.
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