Renegade MP Martin Hamilton-Smith cuts loose on Nine News after seeing Liberal leader Steven Marshall brand him "a traitor".

'Very serious problems within the Liberal Party'

FORMER Liberal leader Martin Hamilton-Smith will become a minister in the minority State Labor Government, in a development that has stunned both sides of state politics.

Mr Hamilton-Smith has been sworn in as minister for Investment, Trade, Defence Industries and Veterans Affairs, and will sit on the crossbenches as an independent Liberal.

Mr Hamilton-Smith’s defection strengthens Labor’s working majority in the 47-seat Parliament — the party holds 23 seats and can now rely on the support of two independents (Mr Hamilton-Smith and Member for Frome Geoff Brock).

Mr Hamilton-Smith — a former SAS soldier — has held the safe Liberal seat of Waite for 17 years and was opposition leader between 2007 and 2009.

This week, he attended a Shadow Cabinet meeting and addressed a Liberal Party branch meeting in Mitcham, in which he pledged support for Opposition Leader Steven Marshall.

“I’m delighted the Premier has extended this opportunity to me to serve in Government,” Mr Hamilton-Smith said today, as he stood alongside Premier Jay Weatherill to announce his decision.

“The Government won the election ... the election is over and what we all in Parliament need to consider is what is in the best interests of the people of South Australia.

“What the people of South Australia deserve now is good and effective government. They deserve certainty.”

Mr Marshall blasted the defection to “a parasitic, divided and dysfunctional Labor Party” as “an act of political betrayal and treachery”.

“Mr Hamilton-Smith’s disgraceful decision is unrivalled in its treachery and duplicity,” Mr Marshall said.

“With Mr Hamilton-Smith’s background, he should understand what loyalty means. Clearly he doesn’t have a clue about loyalty.”

Mr Marshall cancelled a planned trip to New Zealand after the announcement and furiously declared to journalists that Mr Hamilton-Smith was “a traitor”.

HOW THE DEAL PANNED OUT

Former minister and Member for Newland Tom Kenyon brokered the deal over a series of lunches following the election.

In the last term of parliament, Mr Hamilton-Smith and Mr Kenyon travelled overseas on several bipartisan trade missions and became good friends.

Mr Hamilton-Smith said he and Mr Weatherill “want to build things, we don’t want to rip them down”.

“I can’t see how uncertainty and political point-scoring over coming months and years will help kids, the pensioners. It’s time to put people first and politics second,” he said.

He said he would be “an independent Liberal” and denied his decision was a betrayal of the voters in his electorate.

“The people of Waite elected a Liberal and they still have one. I will be running at the next election as an independent Liberal. Having made this decision I will put myself back to the people of Waite, I will explain my decision and I will argue for re-election in 2018,” he said.

Having spent most of his career in Opposition, he said Mr Weatherill had given him an opportunity to “step up to the plate ... and make the world a better place — and I’m going to take it”.

“I have spoken to Steven (Marshall) and explained my position,” he said.

Mr Hamilton-Smith’s portfolio was cobbled together from three other ministers — Susan Close of Labor’s Left gave up Trade, while the Right’s Jack Snelling and Zoe Bettison gave up Defence Industries and Veterans’ Affairs respectively.

It’s unclear whether the “Investment” element of the ministry will lead to a further downsizing of someone else’s role.

His fellow independent minister, Geoff Brock, declined to comment other than saying he looked forward to working with Mr Hamilton-Smith in Cabinet.

Mr Hamilton-Smith will get an immediate pay rise of $114,750 for jumping ship.

South Australian ministers receive a 75 per cent loading on their base salary of $153,000, bringing the total to $267,750.

Mr Hamilton-Smith will also receive a boost to his parliamentary pension, depending on how long he acts as minister in this government.

Using the formula applicable to members elected after 1996, it appears Mr Hamilton-Smith will receive another $26,897 in pension payments per year if he stays as a minister until the next election in March 2018.

@GregBarila @theTiser their's no i in Team...But plenty in Martin Hamilton-Smith — Bill Holst (@bill_holst) May 27, 2014 Sub-type: comment CAPTION: @GregBarila @theTiser their's no i in Team...But plenty in Martin Hamilton-Smith— Bill Holst (@bill_holst) May 27, 2014 Sub-type: comment CAPTION: @GregBarila @theTiser their's no i in Team...But plenty in Martin Hamilton-Smith— Bill Holst (@bill_holst) May 27, 2014

PREMIER’S LONGSTANDING RESPECT FOR RIVAL

Mr Weatherill said the decision meant having the “best talent available in SA” in the Government.

He said this was the best way for the Government to replicate the election result within the executive arm — having both an independent and an independent Liberal in the Cabinet.

“We know he is hardworking and has been well regarded by industry and by all sides of politics since being elected to Parliament in 1997,” Mr Weatherill said.

“Mr Hamilton-Smith has been a strong advocate for the defence industries and has worked in a bipartisan manner to advance South Australia’s trade investment.”

In a lengthy interview with The Advertiser at the end of 2013, Mr Weatherill was asked who he would like to poach from the Liberals and replied: “I think Martin Hamilton-Smith’s worked well together with my trade minister, Tom Kenyon. They’ve been on three trips together this year and I think there’s a fair amount of bipartisanship in how we approach the question of international trade.”

Still on @HamiltonSmith's website: "Martin believes working families have been punished under Jay Weatherill & Labor" #SAParli — Greg Barila (@GregBarila) May 27, 2014 Sub-type: comment CAPTION: Still on @HamiltonSmith's website: "Martin believes working families have been punished under Jay Weatherill & Labor" #SAParli— Greg Barila (@GregBarila) May 27, 2014 Sub-type: comment CAPTION: Still on @HamiltonSmith's website: "Martin believes working families have been punished under Jay Weatherill & Labor" #SAParli— Greg Barila (@GregBarila) May 27, 2014

MARTIN HAMILTON-SMITH’S CV

December 1, 1953 — born. Later educated at Marion High School

1971 — entered the Royal Military College Duntroon, graduated in 1975

1976 — attempted to resign from the Australian Army to join the British Army. His resignation was rejected

1978 — joined the SAS. Served in 6th Battalion of the Royal Australian Regiment and the Australian Special Air Service Regiment (SASR)

1985 — graduated from the University of NSW with Master of Arts (History)

1994 — leaves the Army for business career

1997 — enters Parliament as the Liberal Member for Waite

October, 2001 — Takes a position as Cabinet Secretary

December 2001-March 2002 — Minister for Innovation and Tourism and Member of Executive Council

2002 — graduated from University of Adelaide with an MBA

April 2007-July 2009 — Leader of the Opposition. Toppled as leader after using documents later found to be forged to claim fundraising links between the Labor Party and the Church of Scientology

April 2007 until November 2012 — various shadow ministries including economic development, defence industries and industry and trade

April 2007 to July 2009 — Shadow Treasurer

March 2010 to April 2010 — Deputy Leader of the Opposition

April 2014 — May 2014: Opposition’s spokesman for manufacturing, innovation and trade, small business, defence industries, mineral resources, energy, higher education, automotive transformation, veterans’ affairs, science and information technology, business services and consumers

Tuesday, May 27, 2014 — announced he was swapping political parties and joining the minority Labor Government