The Nationals are entitled to run a candidate in the Liberal-held seat of Hume at the next federal election, shadow treasurer Joe Hockey says.
The retirement of sitting MP Alby Schultz, who has held the seat since 1998, is stirring tensions between the two coalition parties.
The Liberals are insisting the Nationals not run, Fairfax Media says, but leading Nationals figures are reportedly keen to stand in the electorate in southern NSW.
Mr Hockey said the Nationals were entitled to run in a three-cornered contest when a sitting coalition MP retired or Labor held a seat.
“They’re entitled to run where there’s a vacancy, but I’ll be supporting our Liberal candidate,” he told reporters in Sydney on Wednesday.
“It’s been a tradition that there be three-cornered contests in NSW where a vacancy occurs, so nothing has changed. There’s nothing new about that.”
Nationals senator Fiona Nash and NSW Primary Industries Minister Katrina Hodgkinson would be likely preselection candidates if the party ran a candidate.
The Liberals in May preselected cattle breeder and Rhodes scholar Angus Taylor.
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