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Opposition Leader John Pesutto may be polling well, yet in-fighting continues after party room vote over Moira Deeming

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Some Liberal MPs are discussing scenarios where Opposition leader John Pesutto resigns or is challenged. (ABC News: Patrick Rocca)

In the wake of the drawn vote to re-admit exiled MP Moira Deeming to the Victorian Liberal Parliamentary party room, embattled leader John Pesutto declared the issue was done and dusted.

"Today marks a bookend to this discussion,'' Mr Pesutto told the gathered press pack.

If that's accurate, Christmas wishes can come true.

Friday's party room meeting may bookend 2024, but Ms Deeming's status in the Liberal Party remains a lightning rod for division among MPs and grassroots Liberal members.

Opposition Leader John Pesutto may be polling well, yet in-fighting continues after party room vote over Moira Deeming

Mr Pesutto defends his status as opposition leader to media following the vote. (ABC News: Richard Willingham)

Last year, Ms Deeming was expelled from the parliamentary Liberal Party — a group comprised of elected MPs — after threatening defamation action against Mr Pesutto, which she ultimately won.

She remains a member of the broader Liberal Party.

The saga centred on Ms Deeming's attendance at an anti-trans-rights rally at parliament in March 2023, which was gatecrashed by neo-Nazis. Her decision to sue Mr Pesutto pushed many to expel her. 

Position under pressure

While there were public denials that Friday's vote wasn't about Mr Pesutto's leadership, the reality is that this was a proxy vote.

And his position is once again under immense pressure.

"It's worse than terminal. He's actually in a coma, on life support and has been left to die,'' one detractor said in the wake of the vote.

MPs are discussing scenarios where he resigns or is challenged.

Opposition Leader John Pesutto may be polling well, yet in-fighting continues after party room vote over Moira Deeming

John Pesutto exits the Liberal party room meeting at Victoria's Parliament House on Friday. (ABC News: Patrick Rocca)

Alternative candidates are being talked about. Brad Battin's name has been raised again, as has first-term MP Jess Wilson.

The most frustrating issue for many MPs who want to focus on the Allan Labor Government, is a well-founded fear that the agitators will not stop.

"I'm so tired of this shit,'' one MP said.

"This is an unprincipled campaign of terror,'' another senior MP said. "It's not really about Moira anymore. It never really was."

Deeming's supporters won't quit

The problem for Mr Pesutto is that nearly half the party room disagrees with him on the future of Ms Deeming. (MPs Cindy McLeish and Nick McGowan were absent; Ms McLeish is on the record supporting the leader's position).

And Mr Pesutto's willingness to use a casting vote to break a deadlock to ensure Ms Deeming would not return is fanning the flames of discontent within his own ranks. (Though 16 votes would have been needed to readmit her anyway.)

His position is untenable for many, because he refuses to compromise in the face of defeat.

The Federal Court's finding that he did defame Ms Deeming by linking her to neo-Nazis was utterly humiliating and will be financially crippling for Mr Pesutto.

Opposition Leader John Pesutto may be polling well, yet in-fighting continues after party room vote over Moira Deeming

 MP Moira Deeming leaves the Federal Court, triumphant after her defamation lawsuit victory. (AAP: Joel Carrett)

He's on the hook for $315,000 in damages and hundreds of thousands — probably millions more — in legal costs.

Mr Pesutto will not be appealing the Federal Court.

It was total legal defeat, and it's likely more pain will come.

Ms Deeming wants an apology and reinstatement — her supporters won't quit until she gets it.

Those that want Ms Deeming to return have openly questioned Mr Pesutto's integrity for failing to reinstall the exiled MP after her convincing court victory.

But those behind Mr Pesutto point to the fact she was ultimately expelled from the party room for suing Mr Pesutto, not for attending the anti-trans rights rally or her association with organisers.

Those supporters are shell-shocked that the Friday vote was locked 14-14. They believed they had a bigger buffer which has many worried.

And this may doom Mr Pesutto.

Members and donors are frustrated. Many want Ms Deeming back, while others believe Mr Pesutto's ham-fisted banishment of the outspoken MP was well intended.

It's a mess

The plan was designed to send a message to Victorians that he would lead a sensible opposition not focused on issues such as trans rights.

Silencing a woman willing to talk about trans rights has rallied conservatives against Mr Pesutto.

His leadership should be safe.

On all the key metrics he's doing well. The polls show the coalition ahead of Labor and he's leading as preferred premier.

For a Liberal party that's made opposition its natural habitat for the best part of 25 years those numbers are gold.

Yet the fighting continues.

And it shows that the division is about much more than Ms Deeming's status.

It's about a long-running factional dispute over control and direction of the party. Conservatives vs moderates, this camp vs that camp. Personality vs personality.

Opposition Leader John Pesutto may be polling well, yet in-fighting continues after party room vote over Moira Deeming

Former Liberal leaders Michael O'Brien, Ted Baillieu and Matthew Guy. (ABC News/AAP)

It's characterised a generation of state Liberals. It contributed to the demise of Premier Ted Baillieu just two years after he ended an 11-year Labor government. It helped end Michael O'Brien's tenure as opposition leader. Personal tensions continue to cripple the party.

And Friday's vote has done nothing to end the war.

"Just when you think we couldn't get any worse, we do this,'' one despairing MP said.

It's a years-long problem that is likely to define 2025 as well.

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