A split between moderates and conservatives would plunge the Liberals into “permanent opposition” and make Labor the natural party of government, one of the party’s most senior figures has warned.
Senator James Paterson also argues the coalition’s “apology tour” needs to end, five months after its thumping election loss.
The opposition’s finance spokesman used a speech in Sydney on Tuesday night to outline his vision for the future of the Liberals, urging his colleagues not to “misinterpret” their election loss.

He says it’s time for the party to get on with developing serious policies.
“We’re absolutely right to be humble after the Liberal Party’s worst-ever defeat in our 81-year history,” he told ABC radio on Wednesday.
“But people aren’t going to vote for us at the next election in two-and-a-half years time because we’ve spent a lot of time apologising for our failings.
“They will vote for us if they’re convinced that we’re ready for government, that we have a policy agenda which solves the problems they face in their lives.”
All Liberal policies are up for review after the party’s disastrous election loss, prompting fierce internal wrangling over its future direction.
Earlier in October, opposition home affairs spokesman Andrew Hastie quit the front bench because of a disagreement over climate change and immigration policy.
The two issues are emblematic of a broader split between MPs who believe the Liberals should shift toward the political centre, and those who want the party to pursue a more conservative agenda.
But Senator Paterson cautioned his colleagues against any talk of breaking up the Liberals into a conservative party and a more moderate one.
The radical step was predominantly being suggested by people outside parliament and wasn’t in the Liberals’ best interests, he said.

“That would be as successful for the Liberal Party today as the split in the Labor Party was for them in the 1950s,” Senator Paterson said.
“It will end with us being in permanent opposition and achieving the prime minister’s dream of making the Labor Party the natural party of government federally.”
Opposition Leader Sussan Ley, who will visit Melbourne on Wednesday in an attempt to shift political debate to youth crime, says she welcomes Senator Paterson’s contribution.
“It makes a really strong point, that if we back our values and back aspiration, we can meet Australians where they are with a serious, compelling and credible agenda for change,” she told Nine’s Today program.
Ms Ley said she wanted to build support among Gen Z and Millennial voters, saying their futures were being “mortgaged” by the Albanese government.
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