Identifier
Created
Classification
Origin
09CANBERRA1053
2009-11-27 06:29:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Canberra
Cable title:  

OPPOSITION MELTS DOWN OVER CLIMATE CHANGE

Tags:  SENV PGOV AS 
pdf how-to read a cable
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RUEHBJ/AMEMBASSY BEIJING 9651
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RUEHPT/AMCONSUL PERTH 5068
RUEHDN/AMCONSUL SYDNEY 5071
UNCLAS SECTION 01 OF 02 CANBERRA 001053 

SENSITIVE
SIPDIS

DEPARTMENT FOR S/SECC STERN

E.O. 12958: N/A
TAGS: SENV PGOV AS
SUBJECT: OPPOSITION MELTS DOWN OVER CLIMATE CHANGE

REF: CANBERRA 920, CANBERRA 893 and previous

UNCLAS SECTION 01 OF 02 CANBERRA 001053

SENSITIVE
SIPDIS

DEPARTMENT FOR S/SECC STERN

E.O. 12958: N/A
TAGS: SENV PGOV AS
SUBJECT: OPPOSITION MELTS DOWN OVER CLIMATE CHANGE

REF: CANBERRA 920, CANBERRA 893 and previous


1. (SBU) SUMMARY: The Opposition Liberal Party is in turmoil after
an unprecedented revolt against leader Malcolm Turnbull and his
decision to support the Government's climate change legislation. A
Liberal party leadership ballot will be held on Monday. Malcolm
Turnbull's decision to back the government's emissions trading
scheme has deeply divided the Liberal party, causing Tony Abbott -
from the party's right - to put his hand up. Some of Turnbull's
supporters are pressuring him to resign so that fellow moderate Joe
Hockey - who insists he won't challenge Turnbull - can take over.
The Right is amenable to Hockey provided he makes concessions on the
ETS. The majority view is that Hockey will succeed Turnbull however
Turnbull insists he's not resigning. This public meltdown is likely
to leave deep scars within the Liberals and further reinforces the
consensus that Prime Minister Kevin Rudd is primed for victory in
the next election, which is likely to be sometime in 2010. END
SUMMARY.

LIBS PLOT TURNBULL'S DOWNFALL
--------------


2. (SBU) A significant proportion of Liberal MPs were livid at
Turnbull for announcing Opposition support for a revised version of
the government's emissions trading scheme (ETS) earlier in the week.
This followed the Government accepting a series of Opposition
amendments to the legislation that provided additional compensation
to industry. Angry Liberals first called for a leadership vote,
which was defeated November 25 by a margin of 48-35, allowing
Turnbull to argue he had party support for voting in favor of the
ETS. However, on November 26, around 10 Liberals - including Abbott
and Senate Leader Nick Minchin - announced their resignations from
the frontbench. Liberal Senator Gary Humphries told us this was
part of a "coordinated campaign."


3. (SBU) Turnbull hit the airwaves, declaring he would not back down
or resign, and that the Liberal party would be annihilated if it
took a "do nothing" position on climate change. Echoing Prime
Minister Rudd, he warned that taking no action on climate change
risked "the future of our planet and the future of our children and
their children". On November 27, Abbott announced he would
challenge Turnbull for the leadership if Turnbull didn't change his
position on the ETS. Subsequently, a meeting will be held on Monday
30 November to determine 1) whether there should be a ballot for the
leadership - a "spill motion;" and 2) if the answer is yes, a
leadership ballot.

LIBERAL INSIDER'S PREDICTION
--------------


4. (SBU) Liberal Party Deputy Federal Director James McGrath
(PROTECT) confided that Turnbull's key supporters are pressuring
Turnbull to resign so that Shadow Treasurer Joe Hockey - who doesn't
want to challenge Turnbull - becomes leader. They fear Abbott would
win a showdown with Turnbull, delivering the leadership to someone
viewed as far more conservative on social issues than mainstream
Australians. According to McGrath, Abbott and Minchin assured
Hockey he will be elected unopposed if he agrees to make concessions
on the ETS. McGrath predicted Hockey would be leader by Monday
Qon the ETS. McGrath predicted Hockey would be leader by Monday
afternoon but that removing Turnbull could be messy due to his
stubbornness.


5. (SBU) COMMENT: The consensus among our political contacts is
that Turnbull will resign - perhaps if he loses the spill motion -
and that Hockey will become leader. However, if a spill motion
succeeds, it is conceivable the belligerent Turnbull doesn't resign,
thus bringing on a leadership showdown with Abbott. If this occurs,
enormous pressure will be brought on Hockey to run. While Abbott
may connect with the Liberal base, some Liberals are fearful his
very conservative views will alienate critical swing voters,
particularly women. Anti-ETS Liberals believe public opinion is
turning against an emissions trading scheme as the associated costs
become apparent, and have no fear of Rudd calling an early election
on the issue. Interestingly, some Labor strategists have told us
such an election would be risky given the location of several Labor
marginal seats. However, Labor Party politicians are confident that
the disarray within the Opposition will pay dividends for a long a
time to come. END COMMENT.

CANBERRA 00001053 002 OF 002



BLEICH