Tony Abbott to dump paid parental leave policy amid leadership speculation

Updated

Coalition MPs are sounding out frontbenchers Julie Bishop and Malcolm Turnbull as potential replacements for the Prime Minister, as Tony Abbott prepares to deliver what some of his colleagues have described as a "make or break" speech.

In an address to the National Press Club, Mr Abbott will announce he has dropped his "signature" paid parental leave scheme in favour of a "families package", as he tries to convince his colleagues he deserves to keep his job.

Behind the scenes Liberal MPs are discussing who could replace him. The two names being most widely discussed are Julie Bishop and Malcolm Turnbull.

This morning Ms Bishop told reporters in Sydney that: "The PM has my support."

Mr Turnbull was asked by reporters if he was interested in the top job.

"The only thing we should be interested in on the political front today is the Prime Minister's speech to the National Press Club in a few hours," Mr Turnbull said.

Social Services Minister Scott Morrison, who is also touted as a possible leader, has been asked on Fairfax Radio whether his colleagues want him to step up.

"Have you had an approach or not?" asked announcer Neil Mitchell.

"No I wouldn't describe it like that," Mr Morrison said.

Prime Minister Tony Abbott will today announce he has dropped his "signature" paid parental leave scheme in favour of a "families package", as he tries to convince his colleagues he deserves to keep his job.

In the wake of Saturday's disastrous Queensland election result, Coalition MPs across the country fear they face an electoral wipe-out and some ministers have told the ABC they think the Prime Minister should consider resigning.

In a bid to convince colleagues he is listening, Mr Abbott will use a much-anticipated speech to confirm he has dumped his paid parental leave (PPL) scheme in favour of a "families package" and "a bigger, better PPL scheme is off the table".

"We sought the advice of the Productivity Commission and I have listened to the feedback from my colleagues and from mums and dads around Australia and they have said that, with our current budget constraints, the better focus now is on childcare if we want higher participation and a stronger economy," Mr Abbott will tell the National Press Club in Canberra.

The PPL scheme has few supporters inside the Government and some MPs say the decision shows Mr Abbott is finally listening to their concerns.

The new "families package" will be developed in the lead-up to the budget.

"The key focus of this package will be to reform and improve the current confusing system of multiple childcare support payments," Mr Abbott will say.

"[This will] provide more money in parents' pockets to help them with their childcare costs when they want to go back to work."

Social Services Minister Scott Morrison this morning confirmed the PPL scheme would not go ahead.

"We're not proceeding with the paid parental leave scheme that has been advanced because the priority is to get the focus on childcare to ensure that we have a childcare package," Mr Morrison told ABC News Breakfast earlier.

During the address, the Prime Minister will also pitch a "small business and jobs package", more changes to national security laws and an overhaul of the way the Foreign Investment Review Board operates.

The uncertainty over Mr Abbott's leadership is causing unease in the business community.

Prominent Queensland businessman Robert Bryan, who is a major LNP donor, has confirmed he wrote to Mr Abbott last week and called for a transition to a new leadership.

"I think the time has come, that this thing, that the present leadership is just unsustainable," Mr Bryan told AM.

"I have become increasingly distressed about the performance of his Government, and more particularly his personal performance as Prime Minister."

Most of the Coalition MPs the ABC has spoken to say they are "willing Tony to succeed".

But a number seem to doubt that the Prime Minister can recover.

One MP said: "How do we get out of this? We need policy and personnel change. Sadly for him I think it's terminal."

But Mr Morrison has dismissed that suggestion and says the public have other priorities.

"I don't think they're interested in the sort of reality television commentary that we sometimes see around what are very serious issues," Mr Morrison said.

Mr Morrison was asked on AM whether he had been approached by colleagues to address the Coalition's predicament.

"Of course I'm aware of the concerns that are out there but the way that the Government moves forward is by dealing with the things we were elected to deal with and not getting engaged with the personality games that can often occur," Mr Morrison said.

Poll shows Coalition slipping further behind Labor

Assistant Treasurer Josh Frydenberg acknowledged the Government had its "back against the wall" but said the Coalition and Mr Abbott could recover.

"He's not finished, and today is an important speech, and he has the strong support of his Cabinet colleagues as well as the broader team. Of course you're not going to please everyone," Mr Frydenberg told ABC NewsRadio.

"We're talking about the prime ministership of Australia here, not the presidency of a local party branch. The Liberal Party has never tossed its own Prime Minister in its first term ... and I don't think we should start today."

New polling points to a plunge in the Prime Minister's personal standing and the Coalition slipping further behind Labor.

The latest Fairfax–Ipsos poll shows the Coalition trailing Labor by 54 per cent to 46 per cent after preferences, with the gap widening by four points since December.

Mr Abbott's approval rating has fallen nine points to 29 per cent since December and his disapproval rating has risen 10 points to 67 per cent.

Mr Frydenberg pointed out that John Howard was behind in the polls — 55 to 45 — when he was prime minister up against Labor leaders Kim Beazley and Mark Latham, and he "bit by bit" improved his position.

More Cabinet consultation with backbenchers

A common complaint from the increasingly restless backbench MPs is that the Prime Minister does not ask for, or listen to, their advice before making contentious decisions.

The ABC understands new measures are in place to bolster the Cabinet process and backbench consultation.

The full ministry will now meet every month for a strategic discussion, instead of quarterly, all ministers will be required to regularly attend backbench policy committee meetings, the Prime Minister will invite the chairman of all backbench policy meetings to Cabinet six times a year and a new backbench policy advisory group will be set up to work on policy development.

Topics: government-and-politics, federal-government, political-parties, australia

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