Liberal Party won't recontest Hunter seats in 'act of atonement' for ICAC scandal

Updated

The Liberal Party will not contest by-elections in two New South Wales seats held by MPs who resigned in disgrace amid a donations scandal.

The announcement - described as "an act of atonement" - followed revelations former Newcastle MP Tim Owen and Charlestown MP Andrew Cornwell accepted undeclared cash donations from developers.

Both men resigned after making admissions before the Independent Commission Against Corruption (ICAC), which is investigating political donations by developers.

Such donations are banned under NSW electoral laws.

NSW Liberal Party Director Tony Nutt issued an apology on behalf of the Party, saying the revelations "disgusted the honest, law-abiding parliamentarians, elected office bearers, members, donors and supporters of the Liberal Party".

"The people of NSW have every reason to be deeply disappointed and angry at those responsible," he added.

"As an act of atonement, the Liberal Party will not contest the Newcastle and Charlestown by-elections."

Deputy Opposition Leader Linda Burney described the decision as "astounding".

"That is not an act of atonement, that is putting up the white flag and saying, 'We know we are going to lose these by-elections because people are so furious with the way in which their trust has been abused'," she said.

"It [contesting the seats] would have been a show of 'we're going to regain the trust of the people of Newcastle'," she said.

"A notion of some act of atonement, I'm afraid, leaves me fairly cynical."

Earlier, Premier Mike Baird apologised for the way the party "let the people of Newcastle down".

Today, Mr Baird said the party had forfeited its right to represent the electorates, but it had not ruled out contesting the seats in the March 2015 state election.

"We have to consider our position," he said.

"At the moment we are in a position where we're not contesting the by-elections, but once our house is in order and we have confidence our house is back in order, we will be back to those electorates."

Premier Mike Baird failed to make hard decisions: Opposition

The State Opposition criticised the Government for not doing more to address the scandal.

It accused Mr Baird of failing to make "the hard decisions" by allowing Newcastle Lord Mayor Jeff McCloy to continue in the position after he admitted making undeclared donations.

Mr McCloy told ICAC he gave cash to Mr Owen, Mr Cornwell and Swansea MP Garry Edwards, who has stepped aside from the parliamentary Liberal Party.

But Mr McCloy said he was "not a property developer" because he did not submit development applications.

Ms Burney said people in Newcastle were furious and incredulous.

"It just displayed almost a rabbit-caught-in-the-headlights moment that he [Mr Baird] hasn't been able to take the hard decisions," she said.

"I spoke to a number of people in Newcastle yesterday, and they just shake their heads and are completely embarrassed by the way in which their state representatives have let them down."

Scandals have damaged Labor: MP Linda Burney

However, Ms Burney acknowledged the ICAC inquiry could unearth more damning revelations about her own party.

She said the developer donation scandals had done enormous damage to both Labor and Liberal.

"There is a lot of work to be done by all of us to regain the trust back of people in New South Wales," she said.

Mr Baird said the Government would take every step required to restore confidence in NSW politics.

We need to ensure that we take away the corrosive influence of donations. NSW Premier Mike Baird

Opposition Leader John Robertson's chief of staff, Ian McNamara, was named in the opening hearing as a person who may have leaked information used in a smear campaign against former Labor MP Jodi McKay.

ICAC has previously heard evidence the former Newcastle MP was targeted by her Labor colleagues after she declined donations from developer Nathan Tinkler and refused to support his proposed coal loader project.

Mr Robertson has not asked Mr McNamara to stand aside pending his appearance at the donations inquiry.

Mr Baird said the Government would take every step required to restore confidence in NSW politics.

"We need to ensure that we take away the corrosive influence of donations," he said.

Topics: corruption, states-and-territories, state-parliament, newcastle-2300, charlestown-2290, sydney-2000

First posted