Arthur Sinodinos resigns as Assistant Treasurer, paving way for possible Cabinet reshuffle

Updated

Arthur Sinodinos has told the Prime Minister he is resigning as Assistant Treasurer, paving the way for Tony Abbott to reshuffle his Cabinet.

Senator Sinodinos stood aside from his ministerial duties in March after being called before the Independent Commission Against Corruption (ICAC).

He was questioned about his former role as a director of Australian Water Holdings (AWH), which ICAC has been investigating over corruption allegations.

At the time, Mr Abbott indicated he expected Senator Sinodinos to resume his duties once the ICAC case had concluded.

But the report from ICAC has been delayed from January 2015 to March, which Senator Sinodinos said he was "extremely disappointed" about.

"I believe I'll be vindicated in terms of no corrupt conduct or illegality and I look forward to those reports coming out in due course but, as I've said, that could be some time yet," he said.

In recent weeks, he had been discussing his position with Mr Abbott and Liberal Party federal director Brian Loughnane.

"The Prime Minister has advised me that I cannot resume ministerial duties until the ICAC matters are completed and reported upon," Senator Sinodinos said.

"On that point the Prime Minister and I agree.

"We, as a government, need to have a full-time assistant treasurer, so it was by mutual agreement that I should resign.

"I've made a clean break. I've announced it, and now the Government can move on in terms of what arrangements are going to be put in place.

"I'm moving on, I'm a backbencher right now and, in a sense, I feel quite liberated in terms of now being able to speak out in the interests of the Government and the people of New South Wales."

But Senator Sinodinos said he had not given up hope of returning to the frontbench.

"In politics, you have ups and you have downs ... I enjoy politics, I like serving people, I like policy, so I'm around for the long haul," he said.

"I very much look forward to returning to the ministry in the not too distant future."

Resignation could pave way for Cabinet re-shuffle

In a statement, Mr Abbott said he accepted Senator Sinodinos's resignation from the ministry with "deep regret".

"Knowing Arthur as I do, I am confident he will be vindicated," the statement said.

"Nevertheless, the Government does need an Assistant Treasurer for the preparation of the Budget. I will announce Arthur's replacement in the next few days."

The Government had intended to announce Senator Sinodinos's resignation on Sunday, but speculation in the media about a Cabinet re-shuffle prompted the announcement to be brought forward.

The Prime Minister may simply promote a parliamentary secretary to replace Senator Sinodinos as assistant treasurer.

Josh Frydenberg, Parliamentary Secretary to the Prime Minister, and Steven Ciobo, Parliamentary Secretary to the Treasurer, are considered the front-runners.

The Prime Minister could use the opportunity to dump Defence Minister David Johnston, who has been under fire for his performance.

There had also been speculation the Immigration Minister Scott Morrison and Trade Minister Andrew Robb could be promoted for delivering on key Coalition policies this year.

Mr Abbott has also been under pressure – both within his party and from outside – to increase the number of women on his front bench.

Senator Sinodinos has cautioned against a major reshuffle, but said it was for Mr Abbott to decide.

"What happens in terms of reshuffles is a matter for the Prime Minister, and he'll have to judge that," he said.

"My own view is we've got a lot of good people to choose from, but you don't undertake reshuffles lightly.

"And it's important to give people the opportunity to show what they can do in government, so you don't do reshuffles very often in government, so you think about it very carefully."

Sinodinos's ICAC involvement

Use our interactive below to explore Senator Sinodinos's involvement in the ICAC investigations.

Topics: federal-government, federal-parliament, canberra-2600

First posted