Ley and Littleproud dig in as Coalition reunion talks reach critical stage

Coalition reunification talks remain delicately poised, with Opposition Leader Sussan Ley and Nationals Leader David Littleproud holding firm to competing positions as negotiations enter a decisive phase.

The Nationals are finalising a formal response to a Liberal proposal that would see the Coalition restored within days, but only under a set of non-negotiable conditions. Central to the Liberal offer is a six-month suspension from the shadow ministry for three Nationals senators who crossed the floor on Labor's hate-speech legislation.

With the deadline for announcing a new shadow ministry fast approaching, Mr Littleproud and Ms Ley are expected to meet again today as both sides seek to resolve an impasse that has fractured the opposition.

Ms Ley earlier told Mr Littleproud that a new Coalition agreement could be struck quickly, provided the three former Nationals shadow ministers accepted a temporary exile from the frontbench and both parties reaffirmed the principle of shadow cabinet solidarity. The Nationals, however, have long argued that reinstating their senators is a prerequisite for any reunion.

Nationals MPs and senators met in a closed-door party room today to settle their position. Former party leader Michael McCormack confirmed a response would be delivered to the Opposition Leader "in due course", but declined to detail its contents.

While Mr Littleproud has previously insisted the return of his senators was essential, he struck a more flexible tone on Tuesday, saying he would not "rule anything in or out" as negotiations continued behind closed doors. He also expressed frustration that elements of the Liberal proposal had been leaked, defending the Nationals' stance on the hate-speech laws as "principled".

"There was never a shadow cabinet, nor a leadership meeting, nor a joint party room after that final bill was provided," Mr Littleproud said. "So there was no Coalition position on that bill."

Liberals dispute that claim, maintaining a shadow cabinet position was agreed the day before parliament resumed, contingent on amendments that Labor subsequently adopted.

Ms Ley said the majority of the Liberal party room supported her conditions for reunion, including reaffirming shadow cabinet solidarity, preventing either party from overturning shadow cabinet decisions, and enforcing the six-month suspension.

"The Coalition can reform this week under those three conditions," she said. "I'm taking the Nationals leader in good faith, and we are continuing the discussions we started on Monday."

The Coalition split was evident when parliament returned, with Nationals MPs relegated to the backbench and the Liberals' share of Question Time reduced to reflect a larger crossbench. Voting patterns have also shifted, with several Liberals - including Andrew Hastie - supporting a Nationals amendment while the rest of the party abstained.

The rupture began last month when Nationals senators Bridget McKenzie, Ross Cadell and Susan McDonald voted against Labor's bill, defying what Liberals say was an agreed shadow cabinet position. All three resigned from the frontbench, a move Ms Ley accepted but which Mr Littleproud said rendered the Coalition agreement "untenable".

Mr Littleproud said the resignations were offered "out of respect" for Ms Ley's belief that a decision had been made, even though he disputes that view. Mr McCormack indicated the Nationals were unlikely to accept an extended suspension for the senators.

The Nationals leader said he would not provide running commentary on negotiations before his party reached a collective position. "There are no unilateral decisions in the National Party," he said.

Ley avoids spill as Nationals weigh Coalition 'reset'

Ms Ley's proposal has also helped her avoid an immediate leadership challenge, amid speculation that Angus Taylor could move against her following the Coalition split.

After late-night talks with Mr Littleproud, Ms Ley outlined what she described as a clear pathway to reunification. Mr Littleproud said the Nationals were considering "endeavours to reset the Coalition", but sources within the party have described any agreement to suspend the senators as untenable.

Shadow cabinet authority remains a key sticking point, as does the question of whether either party room can reverse shadow cabinet decisions.

Some Nationals MPs support reuniting the Coalition. Darren Chester has argued publicly that internal division only benefits the government, warning that continued infighting hands a "free pass" to Labor.

Ms Ley's supporters insist she retains the numbers in the Liberal party room, despite the narrow margin by which she defeated Mr Taylor in last year's leadership ballot following the Coalition's election defeat.

With talks continuing and pressure mounting on both leaders, the future of the Coalition - and the shape of the opposition - remains finely balanced.