Senate kingmaker Clive Palmer has stated categorically that his party will not vote for the deregulation of university fees when the Abbott government presents legislation to the Senate. Mr Palmer's stance was backed by Palmer United Party senator Jacqui Lambie, who called on the Nationals to ''grow a set'' and oppose fee deregulation.

When asked whether his party was open to supporting fee deregulation, Mr Palmer replied: ''No.'' PUP policy is that university education should be free.

PUP Senator Jacqui Lambie says university fee deregulation won't happen on the PUP's watch. Credit:Alex Ellinghausen

Senator Lambie said fee deregulation ''will not happen on PUP's watch … If the Nationals grew a set, they could also say no to the Liberals on key issues, like university deregulation, which, of course, will see campuses close in regional country areas and bush families greatly disadvantaged.''

The government will need the support of at least two senators from the PUP/Australian Motoring Enthusiast Party alliance to pass its higher education package. It plans to introduce a bill this month to deregulate university fees, reduce course funding by an average of 20 per cent, increase the interest on student debts and extend government support to students at TAFEs, private colleges and sub-bachelor degree programs.