NSW Nationals feud with Liberals over 'destructive attacks'



COALITION talks over next year's federal election have hit a wall in NSW, with the Nationals accusing the Liberals of mounting "a direct attack on our party's finances and viability".

In a stinging letter last month to her Liberal counterpart, senator Arthur Sinodinos, Nationals state president Christine Ferguson lambasted the Liberals and accused them of attempting to poach Nationals members.

She says the Liberals' behaviour threatens a "massively destructive impact" on Coalition relations, less than 18 months from the federal election.

Among other issues, Ms Ferguson is angry the Liberals have "dishonoured" an agreement to delay candidate selections until the two parties have signed their regular election agreement.

The Liberals in NSW have already completed the majority of their preselections, after federal leader Tony Abbott argued that a tardy preselection schedule cost the party seats in the state in 2010.

In Ms Ferguson's letter, which has been obtained by The Australian, she says the Nationals will not accept a renegotiated split of public election funding that would see their share drop from about $935,000 to about $560,000, while the Liberal share rose from about $2.8 million to about $3.2m.

In what is emerging as a pinch-point between the two parties in NSW, she says the Nationals will not forgo their right to contest the southern NSW seat of Hume if the sitting member, colourful Liberal MP Alby Schultz, withdraws before the preselection contest. Ms Ferguson's letter is part of the cyclical bargaining between the two parties over the terms on which they will fight the next federal election, but its strident tone suggests Coalition relations in NSW loom as a roadblock for the federal Opposition Leader as he seeks to capitalise on Labor's low polling numbers in the state.

While a collapse in talks is unlikely, it would trigger damaging "three-cornered" contests across rural and regional NSW and result in the two parties slugging it out for Senate spots.

Recent agreements have banned the Coalition parties fighting over rural and regional seats, except when a member retires. The Liberals hold 16 federal seats in NSW while the Nationals hold four -- and hopes of beating independent MPs Tony Windsor and Rob Oakeshott.

The Liberals have proposed retaining Hume -- whatever Mr Schultz decides to do -- and in exchange offered the Nationals security in their seats over a two- or three-election cycle.

Ms Ferguson says "it would be entirely impossible for us to sign an agreement stating that we would not run for . . . Hume".

Mr Schultz, a long-time thorn in the Nationals' side, last night put the tone of Ms Ferguson's letter down to the fact she stood unsuccessfully against him in Hume in 1998. "I can understand how much they hate me and hate the Liberal Party in the seat of Hume," he said.

For the first time, Mr Schultz conceded there were "a number of contingencies" that could cause him to withdraw from the May 12 preselection. He is close to another candidate, business consultant Angus Taylor, who has included a photograph of himself with the MP in his official propaganda. Mr Schultz said there was "a lot of angst" among the Liberals about "the generous contribution the Liberal Party makes to the Nationals in terms of the percentage of (public) election funding, which they then use to fight the Liberals in three-cornered contests".

On the proposal, in an earlier letter from Senator Sinodinos, for the 75-25 split to become an 85-15 split, Ms Ferguson says: "This was never raised with us in discussion and I am shocked that you are raising it in this way. We have budgeted on this figure . . . For you to suggest a change as we move towards the urgent need to finalise this agreement is a direct attack on our party's finances and viability."

In addition to starting their preselections ahead of the agreement, Ms Ferguson says the Liberals "have sought to contact members of the National Party and (unsuccessfully) try to convince them to join the Liberal Party".

"This is unacceptable behaviour, and not appropriate for a partner in a close Coalition," she says. "We have overlooked these and other actions . . . in the interests of Coalition stability. However, the items in your letter are, frankly, outrageous. If you insist on them to be a part of the agreement, there will be a massively destructive impact on the Coalition at both a federal and state level."

Ms Ferguson and Senator Sinodinos played down the stoush last night. "This is part of the normal to and fro that occurs between parties as the Coalition agreement is ironed out before each election," Ms Ferguson said.

Senator Sinodinos said: "The discussions are continuing and will do so in a spirit of amity and co-operation."


http://www.theaustralian.com.au/national-affairs/nsw-nationals-feud-with-liberal...