The Liberal-National Coalition is showing early signs of strain just months after reuniting, as Nationals leader Matt Canavan stakes out firm positions on a proposed EU trade deal and artificial intelligence policy, drawing pushback from Liberal MPs who say the Nationals cannot dictate the Coalition's stance on economic issues.
In meetings in Canberra this week, tensions emerged between the Coalition parties. At a Liberal-only meeting on Tuesday, former minister Alex Hawke criticised the Nationals for opposing a trade deal with the European Union, arguing the party needed its own identity on economic issues or risk electoral damage. Hawke told colleagues that it would be seen as "nutty" for a free-market party to outright oppose a deal with the world's second-biggest trading bloc, according to sources in the room.
Liberal leader Angus Taylor has described the EU deal as a dud, but the government is using question time to wedge the Coalition on the issue. Trade Minister Don Farrell has said his door is open for negotiations, but Labor has not indicated willingness to change the deal to win Coalition support.
On artificial intelligence, the Nationals and some conservative Liberals are pushing against a mooted consensus on welcoming data centres and changing copyright laws to attract frontier AI labs. David Littleproud, who has the largest data centre in the country planned in his Queensland seat, argued against weakening copyright laws. "They're threatening not to come. That's bullshit. They are coming," he told this masthead. He said the data centre could create 1400 jobs but expressed concern about the renewable energy needed to power it.
Nationals Senator Ross Cadell, who sits on the bipartisan AI committee, said there should be no change to copyright laws and potentially a tightening. "Not only should there be no change, but we should potentially tighten it. There are real problems on copyright: it's property theft," he said.
Liberal MP Garth Hamilton has become the first major-party MP to call for a moratorium on data centre construction. The Greens support a moratorium and One Nation has expressed scepticism. The hardening positions complicate Taylor's negotiations with Prime Minister Anthony Albanese on bipartisan copyright reform.
The latest Resolve Political Monitor shows One Nation at 25 per cent, ahead of the Coalition at 23 per cent, with Labor at 29 per cent. Nationals sources said the party still fears big losses to One Nation but has seen improved polling in regional areas recently.
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Party vote share in Resolve Political Monitor
per cent
Source: Resolve Political Monitor
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Analysis
Why This Matters
The rift in the Coalition, reunited only months ago after a split, threatens its ability to present a unified front ahead of the next election.
Nationals resistance to both the EU trade deal and AI copyright reform could stall key policy areas that the government and some Liberals consider vital for economic growth and national security.
The rise of One Nation, polling ahead of the Coalition, is driving the Nationals to take harder positions to avoid losing seats in regional areas.
Background
The Liberal and National parties split earlier this year but reunited under leaders Angus Taylor and Matt Canavan. Unlike the fraught relationship between their predecessors, the new leaders are described as mutually respectful. However, the Nationals have been granted room to fight the threat of One Nation, which is polling strongly and endangering Nationals seats. Canavan declared both parties opposed to the EU trade deal without prior Liberal approval, setting off this week's friction.
Key Perspectives
Alex Hawke: The Liberal backbencher argued that the Nationals cannot dictate the Liberal position on the EU trade deal, saying the party needs its own identity on key economic issues and that opposing a deal with the EU is "nutty" for a free-market party.
David Littleproud: The Nationals MP opposes changes to copyright laws to attract AI companies, saying "they are coming" anyway, and expressed concerns about the scale of renewable energy needed for the Maranoa data centre.
Ross Cadell: The Nationals senator supports no change or a tightening of copyright laws, describing copyright as "property theft".
Peta Credlin: "I'm not so sure that conservatives would regard Hastie as one of their own any more," the News24 host said, questioning Andrew Hastie's standing after the Ben Roberts-Smith saga.
Right-wing Liberal MP: Said Taylor will last until the next election because the Ben Roberts-Smith saga has damaged the best alternative, Andrew Hastie.
What to Watch
Whether the Coalition can reach a united position on the EU trade deal before any potential vote in parliament.
How the government's AI copyright reform proposal progresses, and whether Labor chooses to work with the Greens instead of the Coalition.
The impact of One Nation's polling on Coalition policy-making, especially in regional areas.
12 claims in this story checked against 1 source: 8 supported.
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SupportedCoalition friction has surfaced over the EU trade deal and AI policy.The Age - Latest News: “Cracks emerge in reunited Coalition over trade deal and AI.”
Partly supportedLiberal MPs are pushing back against Matt Canavan’s stances on both free trade and copyright reform.The Age - Latest News: “In a Liberal-only meeting on Tuesday, former minister Alex Hawke, a factional opponent of Taylor, spoke out against the Nationals’ position on a proposed trade deal with the EU.”
Not in the sourcesCanavan stakes out a firm position on AI policy.The Age - Latest News: “On AI, the Nationals and conservative Liberal Garth Hamilton are pushing back against a mooted Liberal-Labor consensus”
Partly supportedLiberal MPs say the Nationals cannot dictate the Coalition’s stance on economic issues.The Age - Latest News: “Hawke argued that Canavan had no right to dictate the Liberal position”
SupportedAt a Liberal-only meeting on Tuesday, Alex Hawke criticised the Nationals’ opposition to the EU trade deal and argued Liberals needed their own identity on economic issues.The Age - Latest News: “In a Liberal-only meeting on Tuesday, former minister Alex Hawke, a factional opponent of Taylor, spoke out against the Nationals’ position on a proposed trade deal with the EU.”
SupportedHawke said it would be seen as “nutty” for a free-market party to outright oppose the deal.The Age - Latest News: “The backbencher added that it would be seen as “nutty” for a free-market party to outright oppose a deal with the world’s second-biggest trading bloc .”
SupportedLabor is using question time to wedge the Coalition on the deal.The Age - Latest News: “Labor used a series of set-piece speeches in question time to wedge the Coalition on the EU deal.”
SupportedLittleproud said: “They're threatening not to come. That's bullshit. They are coming.”The Age - Latest News: ““They’re threatening not to come. That’s bullshit. They are coming,” he said.”
SupportedLittleproud said the data centre could create 1,400 jobs.The Age - Latest News: “Littleproud said the data centre could create 1400 jobs”
Partly supportedLittleproud expressed concern about the renewable energy needed to power the data centre.The Age - Latest News: “he cast doubt on it by saying its owner could lose social licence if it built the 20,000 hectares of renewable energy he argued would be needed to power it without other energy sources such as coal.”
SupportedCadell said: “Not only should there be no change, but we should potentially tighten it. There are real problems on copyright: it's property theft.”The Age - Latest News: ““Not only should there be no change, but we should potentially tighten it. There are real problems on copyright: it’s property theft.””
SupportedGarth Hamilton became the first major-party MP to call for a moratorium on data centre construction.The Age - Latest News: “Hamilton, a target of Pauline Hanson, holds the nearby electorate of Groom and became the first major-party MP to call for a moratorium on data centre construction.”