Mr Ryan, who was Denis Napthine's deputy premier, had been very confident about the Coalition's chances of victory at the election despite polling indicating they were in trouble. The Nationals are under threat of losing their third party status and their formal Coalition agreement with the Liberals is also showing signs of breaking up. "I will not be seeking a further term as leader of the Nationals when the parliamentary party convenes later this week for its first meeting following the election," Mr Ryan said. "It has been my honour and privilege to lead the Nationals in both opposition and government spanning a period of 15 years." "This brings to a close some 15 years in the chair, leading the Nationals. I started in December 1999 and this next century on almost, 15 years on, I think it's time to finish."

Mr Ryan indicated he was backing former Water Minister Peter Walsh as his replacement. "I think he would be terrific." He said he intended to serve a full term. "The people of Gippsland South have re-elected me for I think it is the seventh time, so that is my intention." He said Emma Kealy and Stephanie Ryan's wins for the Nationals, were reflective of the changes needed for the party.

He said the Coalition should remain intact, and needed to exist to defeat Labor. "As a principle I think the Coalition should remain intact, but of course that is a matter for the members of the party." He said the party was confident they would hold onto the seat Morwell, but were less confident in Shepparton, where they are facing defeat from Independent Suzanna Sheed. He said he did not know whether Liberals had helped Ms Sheed's campaign. He hit out at federal Agriculture Minister Barnaby Joyce- who recently said the troubled SPC Ardmona was not a Nationals issue - saying they had hurt the party's chances in Shepparton and were "less than helpful".

"It happened at a point of time that was pivotal to us in that seat where a very well orchestrated ambush was mounted and we did not see it coming and for that I take responsibility. I am sure it was a factor playing out in people's minds." Labor conveyed their message to voters better than the Coalition, he said.