NSW Nationals leader John Barilaro has backed down on a threat to pull his party from the state's coalition government and agreed to hold further talks over changes to koala protection laws.
NSW Premier Gladys Berejiklian told on Thursday they had until 9am Friday to declare support for her government or be sacked from cabinet after they threatened to mutiny because of a dispute over the koala policy.
The NSW Nationals leader blindsided Ms Berejiklian when he announced his MPs would abstain from voting on NSW coalition government bills as they fought changes to the protection plan.
It was confirmed late on Friday morning a compromise had been struck.
"Following a meeting this morning between the Premier and Deputy Premier, the NSW Liberal & Nationals Coalition remains in place," a joint statement said.
"The matter will be dealt with at an upcoming Cabinet meeting."
Mr Barilaro announced the crossbench threat after a party room meeting on Thursday morning, saying changes to the Koala Habitat Protection State Environmental Planning Policy are "wrong" and hurt landowners and farmers.
"We will be abstaining from voting on government bills," he said.
"By not voting or abstaining from voting from government bills we're effectively on the crossbench."
The Nationals are concerned the policy limits land use on farms and the ability to rezone areas for development as more trees are classed as koala habitat, which will restrict the clearing of land.
NSW Nationals leader John Barilaro. Source: AAP
The Nationals have 13 lower house MPs, while the Liberals have 35 and Labor 36. In the upper house, the Nationals have six, the Liberals have 11 and Labor has 14.
State opposition leader Jodi McKay said on Friday she would move a no-confidence motion against the Berejiklian government next week and called on Mr Barilaro to resign.
"The deputy premier is not a cattle dog. He is a lap dog and he has proven that this morning with his capitulation to the premier," she told reporters.
Feds weigh in
Earlier on Friday, Bridget McKenzie, the leader of the Nationals in the federal Senate, strongly defended Mr Barilaro.
"The NSW Nationals are doing exactly what they were sent to Macquarie Street to do and that's to stand up for their constituents," Senator McKenzie told the ABC on Friday morning.
"I don't think it's surprising that city-centric policy decisions being made in the main by the Liberal and the Labor Party are being challenged by the Nationals, whether it's in Macquarie Street, in Canberra, or in Spring Street."
Former federal Nationals leader Barnaby Joyce also backed Mr Barilaro's tactics.
Trade Minister Simon Birmingham, a senior Liberal Party member, said NSW needed to focus on supporting Ms Berejiklian as she concentrated on suppressing the threat of coronavirus.
"These are matters for the NSW Parliament and government to resolve between themselves," he said.
Additional reporting by AAP.
