Tony Abbott has brushed aside another damaging leak in which a senior member of the Liberal party calls into question a “conflict of interest” in the prime minister’s office between his chief of staff Peta Credlin and her husband, the party’s federal director Brian Loughnane.



Two letters from the party’s federal treasurer, Philip Higginson, were made public overnight in which he attacked the closeness of the relationship.

Abbott told 2GB radio on Tuesday morning there was “no problem” with the relationship.

“Brian Loughnane has been the federal director for 12 years. For the last 10 years Peta Credlin has been chief of staff to a minister, or chief of staff or deputy chief of staff to a party leader,” Abbott said. “So if this is a problem, it’s been a problem for 10 years. In fact, it is no problem.”



In a separate interview he told Channel Nine voters were “sick of the internals” within the Liberal party.

“I stand by my staff. I certainly have full confidence in the party’s president, the party’s federal director,” Abbott told Nine. “I’m aware of that particular storm in a teacup but the treasurer signed off on the party accounts. So I’m not quite sure what the fuss is over.”

“I’m focused on government. I know there are always some people in this business of politics who would rather pursue their own ambitions than the national interest but I am absolutely focused on getting on with government.”

One letter, which foreshadows Higginson’s resignation, said: “How this party ever let a husband and wife team into those two key roles where collegiate competitive tension is mandatory and private consultations between colleagues to see that each side is served well is a complete mystery.

“The persons in our party’s history that allowed it to occur should hang their heads in collective shame. The federal director has a fiduciary duty to act in the best interests of the organisation at all times, repeat, at all times,” the letter said.

“How can this possibly happen when the COS [chief of staff] to the prime minister is his wife?

Higginson said the connection between Credlin and Loughnane was hurting the party.

“It immediately brings about the cessation of open communication to the federal director, contributes to wooden and unreliable communication, and a reluctance towards open and trusting lines of communication and, dare I say it, retribution.

“In corporate Australia the chairman of the board would never allow his EA [executive assistant] to be wife of the managing director, or the managing director would never allow his EA to be the wife of the chairman,” Higginson wrote.

“I am overwhelmed daily by the sheer vitriol, and pent-up animosities, and enmities that exist, and we are all personally affected by it and contributing to it, the longer the conflict of interest exists,” Higginson wrote.

He issued a veiled warning that changes must be made in the prime minister’s office.

“I haven’t worked pro-bono for over four years in this role and over 10 for my good friend [Abbott] to see him brought down in this way. We all need to do our bit to encourage him to see what is so plain for all to see.”

Credlin told the Australian newspaper on Monday she would resist the intense pressure for her to step down.

Abbott has been the subject of a series of damaging leaks since he survived a leadership spill two weeks ago, in which 39 of his colleagues voted against him.