NSW Liberals branch calls for federal administration after ‘catastrophic failure’ of state division

<span>Brian Loughnane in 2015. The former federal Liberal director has been called in to examine the NSW division of the party.</span><span>Photograph: Julian Smith/AAP</span>
Brian Loughnane in 2015. The former federal Liberal director has been called in to examine the NSW division of the party.Photograph: Julian Smith/AAP

Northern Beaches Liberals have called for federal intervention over the “catastrophic failure” of the New South Wales division to nominate candidates for local government elections.

On Wednesday evening the Northern Beaches local government conference – which accounts for 15% of the state party – voted unanimously for motions critical of the failure calling for an administrator to be appointed to run the division and governance reforms.

The motions may fuel moderate fears of reforms to disadvantage their faction or moves to sack the NSW president, Don Harwin, but others insist unanimous votes 126 to 0 indicate widespread support – including among moderates.

Related: NSW Liberal party claims nomination failure ‘will not define us’ after sacking director and promising refunds

The motions were moved by Stu Cameron, the president of the Mackellar federal electoral council (FEC), and Alex Dore, the president of the Warringah FEC, who are both considered unaligned, although moderates regard them as hostile to their control of the NSW party.

Earlier in August the state director, Richard Shields, was sacked over the NSW division’s failure to lodge nominations for more than 130 council candidates.

Brian Loughnane, the former federal Liberal director and reviewer of the 2022 election defeat, has been called in to examine the nomination failure and preparedness of the NSW division for the next election.

Loughnane is set to report back on 2 September – one day before a meeting of the federal executive – to decide if there are grounds under the party’s federal constitution to intervene.

The motions, seen by Guardian Australia, note the “significant impact” of the “catastrophic failure”, including preventing councillors and candidates from serving their community and disenfranchising Liberal voters.

Cameron and Dore’s motions called on the federal executive to appoint an administrator and “an appropriately qualified state director”.

Northern Beaches Liberals, together with the FECs in Pittwater, Wakehurst, Manly, Mackellar and Warringah, will also prepare a submission proposing unspecified governance reforms of the NSW division.

These would be designed by a subcommittee and then considered at state council on 2 November.

Conservatives have long complained moderates maintain power in the NSW division by party structures that reward control of individual branches rather than respecting the principle of one vote, one value for each member.

One Liberal, who spoke anonymously as they were not authorised to speak with media, argued the party structure is “not fit for purpose” and the division required reduction in the size of governing bodies and more cooperation and information sharing between branches.

“Factional warlords … don’t control the branches. One of the techniques that they use is to concentrate authority in the state executive,” they said, leaving the director forced to act on instructions.

“I would say of all factional leaders: that hubris, overconfidence, and confirmation bias dominate their thinking and actions. They’ve lost the focus on the real mission … and what’s required to deliver on that mission.”

The failure to nominate was “the most manifest failure of process and leadership that I’ve ever seen in any political movement, anywhere, at any time”, they said.

The Northern Beaches Liberal groups are situated in two formerly blue-ribbon Liberal seats lost to teal independents Sophie Scamps and Zali Steggall.

The nomination failure has prompted speculation the Northern Beaches deputy mayor, Georgia Ryburn, could contest Mackellar against Scamps at the next federal election.

The Liberals are struggling to attract a quality candidate to contest Warringah, which Steggall won off former prime minister Tony Abbott in 2019. In 2022 the seat was contested for the Liberals by Katherine Deves, a campaigner against trans women’s inclusion in women’s sport.

Earlier in August Abbott described the NSW division as a “factional plaything for too long”, reportedly telling the Australian Financial Review it “must be cleaned up lest it start to interfere with our federal campaign to save Australia from a really bad government”.

State conservatives including Lane Cove’s MP, Anthony Roberts, have publicly pushed for both Shields and the NSW president, Don Harwin – a moderate – to go as a result of the council nomination failure.

The Liberal who spoke with Guardian Australia likened the situation to a public company “that was very clear on their mission and failed on that mission”.

“I don’t imagine shareholders would tolerate either the CEO or chairman of the board sticking around for longer,” they said. “I think there would be, quite rightly, moves to dump both those people when … the sorts of processes and accountability weren’t there.”

Earlier in August several senior Liberals told Guardian Australia conservatives are “definitely” keen to use the scrutiny on the NSW division to weaken the hold of moderates.

One senior Liberal said it was “absurd” blame was being directed at Harwin for the failure to nominate, which was the responsibility of the state director.

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