Andrew Hastie clears path for Taylor to run in Liberal leadership contest

West Australian MP Andrew Hastie withdrew from the Liberal Party leadership contest on Friday, clearing the way for Angus Taylor to be the Right faction’s candidate in a looming challenge to Sussan Ley.

The decision, reached after a covert meeting between the two men on Thursday, makes a leadership spill within the next fortnight a real possibility.

Sources close to both men insist a challenge is still on the cards and it’s “now a matter of when not if”, noting that “things could move very quickly”.

Another Right faction figure said “we now have a candidate”, which had previously been the sticking point to launching a challenge to Ms Ley.

“We have to stem the bleeding,” a third Right faction figure said of the need for leadership change.

Mr Hastie issued a statement on Friday afternoon acknowledging that he still held leadership ambitions.

“But having consulted with colleagues over the past week and respecting their honest feedback to me, it is clear that I do not have the support needed to become leader of the Liberal Party,” the Canning MP said.

“On this basis, I wish to make it clear I will not be contesting the leadership of the Liberal Party.”

His announcement came a day after he met Mr Taylor and Right faction powerbrokers Jonno Duniam, James Paterson, Matt O’Sullivan and former MP Michael Sukkar in Melbourne for discussions that canvassed their rival bids.

Mr Taylor hasn’t announced his intentions but it’s understood he is now rallying support.

He narrowly lost the leadership to Ms Ley immediately after the election, but the party room numbers have shifted since then, with the departure of three senators and the defeat of moderate candidate Gisele Kapterian.

Nevertheless, the Right says getting a spill motion up would still be lineball until at least some in the moderate faction also see Ms Ley’s leadership as terminal.

Politicians will return to Canberra over the weekend for a fortnight of sittings.

The Liberals have a regularly scheduled party room meeting on Tuesday morning.

Ms Ley’s supporters believe the chances of a challenge to her leadership have now diminished, as Mr Taylor works to secure enough support from moderate MPs to topple her.

Late on Friday, Liberal frontbencher Andrew Wallace praised Ms Ley as “an incredibly strong woman” who “continues to get up” despite the difficulties she’s faced since becoming Opposition Leader.

“I don’t believe there will be a spill and I believe that will be proved correct next week,” he told Sky News.

Earlier in the day, Ms Ley set a week’s deadline for the Nationals to rejoin the Coalition as she unveiled a new-look Liberal only shadow ministry.

Under the revamp, Liberal frontbenchers Ted O’Brien, Michaelia Cash, Anne Ruston, Dan Tehan, James McGrath, Mr Taylor and Angie Bell take on additional portfolio responsibilities previously held by National Party shadow ministers — but only in an acting capacity.

In a statement, Ms Ley said the Liberal leadership group had agreed that the “finalisation of longer-term shadow ministerial arrangements is also required”.

“It is intended that these acting arrangements cease before the second February sitting week commences (Monday 9 February), when I appoint a further six parliamentarians to serve in the shadow cabinet and two in the outer shadow ministry, on an ongoing basis,” she said.

“There is enormous talent in the parliamentary Liberal Party and my party room is more than capable of permanently fulfilling each and every one of those roles.”

The decision effectively issued an ultimatum to the Nationals to rejoin forces after leader David Littleproud dramatically abandoned the Coalition last week.

Ms Ley said his decision was “both regrettable and unnecessary and that door remains open” to having the party return to its previous arrangements with the Liberals.

“The Liberal and National parties exist to serve the Australian people and the maintenance of a strong and functioning relationship between both is in the national interest — whether we are in a formal Coalition or not.”

Senior moderate figure Andrew Bragg said the Liberals had “tried very hard in this past six or eight months to work with the Nats” but it hadn’t worked out.

“We have tried very hard to work through all their issues, and I say that I think at times they’ve been unreliable. So we have to forge on in our own way,” he said.

Earlier this week, Ms Ley wrote to Mr Littleproud proposing a meeting “without any preconditions and as a priority” to discuss a reforming of the Coalition ahead of Parliament’s return.

However, he is facing his own spill motion in the Nationals’ party room meeting on Monday — one he is expected to win — and said he couldn’t meet until that was dealt with.

“Following Monday’s parliamentary meeting of The Nationals, I will attempt to meet with whoever is elected as their leader,” Ms Ley said on Friday.