Tony Abbott uses Press Club speech to warn against 'infighting'; says he has 'listened and learned' over unpopular 'captain's picks'

Updated

Tony Abbott has used a crucial speech at the National Press Club to reset the budget debate and deliver a message to critics within the Coalition, saying Australians do not deserve "infighting" from the Government.

In his first formal address at the National Press Club since winning the election 16 months ago, the Prime Minister dumped his signature paid parental leave policy and removed himself from the process of selecting knights and dames under the Order of Australia.

He also indicated that households will be protected from further budget pain in the Government's next budget in May, when a new "families" policy will also be announced.

Small businesses will also receive a tax cut of at least 1.5 per cent from July 1, as the Government pursues a broader look at the taxation system through a white paper process.

Mr Abbott has been battling criticism - both internal and external - which peaked last week in the wake of his announcement that Prince Philip would be awarded a knighthood under the Order of Australia.

The PM conceded he "probably overdid it" and has announced future decisions will be made by the same council that awards other honours in Australia.

"I just want to make it clear that all awards in the Order of Australia will henceforth be entirely a matter for the Order of Australia Council," he said.

"I accept that I probably overdid it on awards and that's why as of today I make it crystal clear that all awards in the Order of Australia will be wholly and solely the province of the Council of the Order of Australia. I have listened, I have learned, I have acted, and those particular captain's picks which people have found difficult have been reversed."

The National Press Club address in Canberra is seen as a bid to shore up his leadership and reset the Government's agenda, as the Coalition grapples with a crushing loss in the Queensland election and poor polling for the Prime Minister.

But in an early sign that some on his backbench want more changes from the Prime Minister, the LNP member for the Brisbane-based seat of Bowman, Andrew Laming, has called for knights and dames to be abolished from the Australian honours system.

Mr Abbott announced he had decided to reinstate the new awards last March, without consulting his party room.

Dr Laming said the new arrangements Mr Abbott outlined were "inadequate" and that he would introduce a private member's bill to abolish the honours.

"Today's announcement has failed to address the concerns and feelings of the electorate at large," he said in a statement.

Bishop backs PM, Turnbull dismisses leadership questions

When asked whether he had considered resigning to make way for a new prime minister, Mr Abbott responded "no".

"It's the people that hire and frankly it's the people that should fire," he said.

Behind the scenes, Liberal MPs are discussing who could replace him. The two names most widely mentioned are that of deputy Liberal leader Julie Bishop and Communications Minister Malcolm Turnbull, whom Mr Abbott ousted from the top job in 2009.

Before the speech Ms Bishop told reporters in Sydney that: "The PM has my support."

And Mr Turnbull dismissed questions from reporters about whether he was interested in returning to the leadership.

"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," he said as he arrived at Sydney airport after a trip to the United States.

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

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

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

PM promises to lead a 'much more' consultative government

Mr Abbott told the NPC the Coalition was elected as a rejection of the "chaos" of the Labor leadership switches from Kevin Rudd to Julia Gillard.

"And we are not going to take them back to that chaos," he said.

He said Australians "deserve budget repair, no return of the carbon tax, no restart of people smuggling and no infighting".

While he acknowledged the Government had had a rough couple of months, he said "when things are difficult the last thing you want to do is to make your difficulties worse".

He promised he would lead a "much more" consultative government, with more meetings of the full ministry and between Cabinet ministers and backbench committee chairs.

"It will certainly be the most consultative and the most collegial government this country has ever seen in the weeks and months and years ahead because we are on a journey, we are all on a journey, the journey to build a better Australia."

Queensland backbencher Ewen Jones praised the PM's address as "strong".

"As Tony Abbott said we've had a pretty tough couple of months and a pretty poor last week and I think this has set the direction to go forward," he told the ABC.

"I think this is what he had to say to mark out what the year was going to be."

In his speech, Mr Abbott also flagged a tougher crackdown on groups that "justify terrorism" in Australia, pointing to the group Hizb-ut Tahrir, and a "better enforcement" of the rules around foreigners buying agricultural land and housing.

And significantly, he indicated that the Government's second budget, due in May, will not hit households.

"The Government's budget focus will be on strengthening the economy," he said.

"Because we have done much of the hard work already, we won't need to protect the Commonwealth budget at the expense of the household budget."

He said a "good" way to put the budget back on the path to surplus was to not "make any unnecessary new spending commitments" but to focus on spending to boost numbers in the workforce.

"Economic growth is the best and fastest way to restore the surplus."

Mr Abbott used the speech to confirm he would drop his multi-million dollar paid parental leave scheme, which would have paid women their full wage for six months up to a salary limit of $100,000.

"I accept that what's desirable is not always doable especially when times are tough and budgets are tight," Mr Abbott said.

"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.

"So a bigger, better PPL scheme is off the table."

The Government will develop a new "families" package with an emphasis on more funding for childcare in the lead up to the May budget.

The Labor Party, which has always opposed the PPL package as too expensive, criticised Mr Abbott for dumping it and breaking a promise.

Opposition Leader Bill Shorten said the Prime Minister could not be trusted.

"All he is doing now is a last-ditch, desperate effort to try and save his job, and now he's ditched the policy which he said you could trust him on most," he said.

Senate crossbencher Nick Xenophon said he thought the leadership issue would come to a head at the Coalition party room meeting next Tuesday.

"I just can't see how the Prime Minister will be leading the Liberal Party at the next election," the SA independent senator said.

Topics: federal-government, government-and-politics, liberals, abbott-tony, australia

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