In a development certain to add to the pressure on Mr Abbott ahead of the cabinet meeting, former News Limited boss and now head of Prime Media John Hartigan said Mr Abbott's position now was unrecoverable. Tony Abbott is welcomed at Government House in Auckland on Friday. Credit:Alex Ellinghausen "No. I think his opportunity is gone. Even his strongest supporters are now detractors," Mr Hartigan said, while also categorising himself as an admirer of Mr Abbott. "But as I say, he has appeared as if he doesn't want to face up to the realities of his political life. He is letting them slip through his fingers day by day." Mr Hartigan also complained that political uncertainty was hurting the economy.

"It's very significant. I have not seen Australia, in so many economic areas – and I'm not speaking about our industry, I'm speaking across the board – at such a crossroads," he said. Business leaders say leadership instability involving Prime Minister Tony Abbott is harming confidence. Credit:Alex Ellinghausen Woolworths CEO Grant O'Brien also complained about the situation after disappointing half-yearly results, observing "stability is a really important thing" for consumer confidence. "And stability across a number of factors, not the least is political stability," he said Illustration: Ron Tandberg.

It came as Coalition backbenchers have handed responsibility for resolving the leadership crisis afflicting the Abbott government to the cabinet, telling senior ministers they must stop denying the problem and act to protect the interests of the party and the nation. The shift, which is aimed at securing a high-level approach to Mr Abbott, or a direct challenge within days, reflects a view in the party room that backbenchers have made their views known and now believe the executive should step up. Two senior ministers have pointedly reminded Mr Abbott that his tenure as Prime Minister remains the exclusive gift of the Liberal party room and not of voters. With frustration approaching a tipping point at Mr Abbott's apparent incapacity to rise above the uncertainty amid leaks and judgment errors, senior cabinet figures are known to have discussed the situation although no plan has been agreed. However, one minister said there was a growing acceptance among ministers that the government cannot continue with the matter left unresolved. "They're talking to each other, but if anyone tells you they know what's going to happen, then don't believe them," an MP said.

As many as a dozen to 16 ministers, according to one inside estimate, would back a switch to Malcolm Turnbull in the event of a challenge. Those agitating for a change to Mr Turnbull, the former leader and now Communications Minister, believe it should happen quickly due to the "brand damage" being done to the Coalition government after a week of solid policy work was all but obliterated by Mr Abbott's aggressive pursuit of Gillian Triggs, the president of the Australian Human Rights Commission. Publicly, senior ministers from the Prime Minister down continued to deflect questions on Friday, with Social Services Minister Scott Morrison describing the background campaign by those fomenting unrest as "a bit of political bed-wetting" from which the government needed to move on. But both Mr Morrison, who has been tipped as a likely treasurer under a future Malcolm Turnbull prime ministership, and deputy Liberal leader Julie Bishop also reminded Mr Abbott that he held the leadership only at the will of his parliamentary colleagues – a direct repudiation of his previous claim to have the direct mandate of the Australian people. "Well it is a matter for colleagues, as John Howard said 'who leads the party is always a gift of the party room'," Mr Morrison told Fairfax Radio's Neil Mitchell.

"Remember, our party room is made up of people who are elected by their constituents, so that's how the system works and I think anyone who pretends differently is kidding themselves. What proves success in government and in politics is performance and competence and that's what we're focused on." Speaking in Auckland, Ms Bishop described it as "self-evident" that the individual members of the party room are able to elect the leader and the deputy leader of the Liberal Party. "That has always been the case, I imagine it will continue to be the case." Just days before the last challenge, Mr Abbott told the National Press Club: "Sure, party rooms or caucuses choose leaders, but once they've gone to an election, things have changed. It's the people that hire and, frankly, it's the people that should fire". However on Friday, in the wake of Ms Bishop's comments, he softened his approach acknowledging the party room's centrality.

With the mood in the government febrile, the Bishop and Morrison comments appeared to be pre-emptive shots across the bow of the Prime Minister and his supporters not to use the threat of public retaliation as defence against challenge. Mr Morrison's name has been discussed as a possible future leadership contender although officially he insists he is happy with his current role. However, the ambitious Sydney-based MP clearly believes he has what it takes to lead his party and the government, arguing that anyone who enters Parliament and claims not to be interested in rising as high as possible "is lying to you". "I'm a fixer," he said referring to his record of stopping the boats as immigration minister. "I get things fixed, I get things done and that's what I look to do in this portfolio and in welfare."

Loading Several MPs contacted by Fairfax Media dismissed the latest round of attention as a confected crisis designed by malcontents either to flush out a challenger to Mr Abbott, or to bring an end to the current leadership crisis before the NSW state election on March 28. Follow us on Twitter