By LIAM DURKIN
TRARALGON-born MP and former state Liberal leader, John Pesutto might not be out of the woods yet.
The party’s administrative committee’s decision to pay Liberal colleague Moira Deeming the $1.55 million owed to her by Mr Pesutto could play out in court.
Senior Liberal Colleen Harkin has launched legal action against the committee’s decision to approve the loan, saying it goes against the party’s constitution.
The Herald Sun revealed four members of the administrative committee – Erin Hunt, Anthony Schneider, Ian Pugh and Marcus Li, joined Ms Harkin as plaintiff in a Supreme Court challenge to the loan.
Mr Pesutto was ordered to pay Ms Deeming $2.3 million in damages after the federal court found he defamed her after speaking at a women’s rights rally on the steps of state Parliament in 2023.
The saga led to him losing his leadership of the state Liberals, and he could yet be forced out of politics all together.
By law, anyone declared bankrupt cannot sit in Parliament.
Mr Pesutto previously secured $500,000 himself, while $200,000 was raised from an online crowdfunding campaign before the loan was approved.
“I supported the party’s administrative committee decision to pay Mrs Deeming the $1.55 million owed to her by Mr Pesutto, to satisfy the federal court costs order following its decision that Mr Pesutto had defamed Mrs Deeming,” Liberal leader, Brad Battin said last month.
“Mr Pesutto will repay the party on commercial loan terms.
“Throughout this process, I have acted in accordance with the rules, maintained my impartiality, and ensured the confidentiality, welfare, and dignity of my colleagues.”
Despite the pending crisis, the matter is not expected to be heard any time soon given the debt has already been paid.
Justice Michael McDonald has lashed Ms Harkin’s application, calling it “half baked”.
“I’m going to have to hear from the members of the administrative committee in order to form a view about whether or not there is a serious issue to be tried, because unless I can come to that conclusion, there’s no basis for any interlocutory relief,” he told the Herald Sun.
The Liberals will hope to see an end to the drawn-out controversy as next year’s state election looms.
While the state government has attracted a swathe of criticism in recent years, it may have little trouble winning government given the opposition’s imploding.
Elsewhere, the Liberals are confident of maintaining government across Bass Strait, after Tasmanians went to the polls at the weekend.
At time of press (Monday), more than three-quarters of the vote had been counted, although three seats still remained in doubt, and a final result is not expected for another fortnight.
The Liberals led 14 seats to Labor’s nine, needing 18 to form government. The Greens had five seats and independents/others four.
The Nationals traditionally don’t have much presence in Tasmania.
“In general in Tasmania, there’s not much demand for a separate rural branded party,” election analyst Dr Kevin Bonham explained.
“I think that’s particularly because the distances are smaller, the bush is not so isolated.”
Oddly enough, the much-vaunted AFL Hobart stadium could decide the election.
Tasmania is set to have an AFL team introduced for season 2028, yet the stadium’s proposed $1 billion price tag has become a major bone of contention.
Most of the Tasmanian cross-bench is anti-stadium, meaning the major parties may need to toe the same line if they want to hold government.
Should the stadium go ahead, it is expected to feature Tasmanian Oak, in a nod to the state’s native timber industry. Australian Sustainable Hardwoods, Heyfield stocks Australian Oak, which is the company’s brand of Tasmanian Oak timber.
