Hastie rules out leadership challenge as pressure mounts on Sussan Ley

Liberal MP Andrew Hastie has ruled out a challenge to Opposition Leader Sussan Ley, bringing an end to days of speculation over the Liberal Party's leadership as tensions continue to simmer inside the Coalition.

Ms Ley has faced mounting pressure following the Nationals' decision to walk away from the Coalition and resign en masse from the shadow ministry, prompting senior Liberals to consider whether a leadership spill was imminent. Mr Hastie, alongside frontbencher Angus Taylor, had emerged as a potential challenger.

However, Mr Hastie confirmed on Friday he would not contest the leadership, citing insufficient support among colleagues.

"I've previously stated that I would welcome the opportunity to serve my party and our country as leader of the Liberal Party," Mr Hastie said in a statement.
"But having consulted with colleagues over the past week and respecting their honest feedback, it is clear that I do not have the support needed to become leader."

The West Australian MP said his focus would instead remain on policy priorities including immigration and energy, arguing the country was best served by a united Coalition.

"I believe Australian families and our country are best served by a strong Coalition government, and I will work every day to make my party the very best version of itself," he said.

Mr Hastie's announcement followed talks with Mr Taylor in Melbourne on Thursday, where the pair discussed the leadership situation but failed to reach any agreement. Liberal sources say Mr Hastie's withdrawal clears the path for Mr Taylor to challenge Ms Ley at a time of his choosing.

Meanwhile, Ms Ley has given the Nationals one week to return to the Coalition before she moves to permanently reallocate their shadow cabinet positions. Temporary acting arrangements have been put in place, with senior Liberals taking responsibility for portfolios previously held by Nationals MPs.

Under the interim changes, foreign affairs spokesperson Michaelia Cash has assumed the trade portfolio, Anne Ruston has taken on agriculture, Dan Tehan has added resources to his energy brief, and Mr Taylor has been allocated veterans' affairs. Deputy Liberal leader Ted O'Brien has taken on the assistant treasurer role, while Angie Bell has added water and emergency management to her environment portfolio.

The standoff began after Nationals leader David Littleproud walked away from the Coalition when Ms Ley accepted the resignations of three Nationals senators who defied the agreed Coalition position on hate speech legislation.

Ms Ley has signalled she remains open to reconciliation, saying she would seek talks after the Nationals' party room meeting on Monday. Mr Littleproud is expected to survive a leadership challenge from Queensland MP Colin Boyce.