Mercury (Hobart)

PM IS STILL DESPERATE

- JAMES CAMPBELL, ROB HARRIS and ANTHONY GALLOWAY

MALCOLM Turnbull is set to overhaul his second signature policy in just two days in a desperate bid to hold on to power.

The Prime Minister will boost Catholic and independen­t school funding to help shore up his leadership — after yesterday dumping legislated energy emissions targets.

But Coalition MPs are still openly discussing a challenge, with some speculatin­g there could be a move this week.

PRIME Minister Malcolm Turnbull is losing his grip on power due to a revolt fuelled by Queensland MPs.

Mr Turnbull last night was set to overhaul a second signature policy in two days, boosting Catholic and independen­t school funding in a desperate bid to shore up his dwindling support.

However, Coalition MPs were openly discussing a challenge to his leadership before the end of next month, with some speculatin­g there could be a move this week.

The rebellion in favour of Home Affairs Minister Peter Dutton comes despite Mr Turnbull’s supporters insisting he retains the support of the party room. A conservati­ve faction of Liberals who want the PM gone have told News Corp they believe they are closing in on the numbers to dump him.

One Dutton backer said his man had 45 of the 85 possible votes and it was possible something could happen on Thursday, but it was more likely in the coming weeks.

Queensland Liberal MPs said they had faced a barrage of text messages and emails from angry rank-and-file party members over the past 24 hours, with Queensland LNP president Gary Spence privately urging federal MPs to topple Mr Turnbull and replace him with Mr Dutton.

It is understood a handful of Queensland MPs, some urging Mr Dutton to challenge, have informed Mr Turnbull’s office the Prime Minister was quickly losing their support.

A senior government source admitted that Queensland was “on fire” but remained adamant there were no more than 20 MPs who supported a leadership spill.

Queensland MP Warren Entsch criticised Mr Spence for interferin­g in matters for the party room.

“The LNP is in no position to be advising others on how to win elections,” Mr Entsch said.

He said he was not part of any push to bring down the Prime Minister.

A total of 26 government MPs hail from Queensland, including 18 in the Liberal party room. A dire primary vote in last month’s by-election in Longman and strong support for One Nation and Bob Katter’s Australian Party have regional MPs on edge.

It is understood Federal Education Minister Simon Birmingham last night was set to make a fresh offer of funding to the Catholic and independen­t schools sector. A fierce campaign from the Catholic sector was blamed for the Liberals’ low primary vote in Longman.

Mr Turnbull said he was “very” confident he had the support of his colleagues after shelving plans to legislate or regulate Australia’s commitment to cut emissions by 26 per cent yesterday, his third position in less than a week.

“Peter Dutton was at our leadership group meeting this morning and he was at the Cabinet last night. He’s a member of our team. He’s given me his absolute support,” the Prime Minister said.

Mr Turnbull retains the overwhelmi­ng support of his Cabinet, with one minister saying the potential for any challenge was a “total beat-up”.

But in another setback for Mr Turnbull, a compromise to his corporate tax cuts package last night was knocked back by One Nation leader Pauline Hanson. Under the deal put to crossbench Senators, the four big banks would have been excluded from receiving the tax cuts, but last night the Bill was defeated in the Senate.

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