Upper Hunter Nationals MP Dave Layzell says he will not rule out crossing the floor of Parliament to vote in favour of legislation which would remove government penalties constraining plans for a Newcastle freight terminal.
The Newcastle Herald reported on Thursday that Lake Macquarie MP Greg Piper had signalled his intention to introduce the Port of Newcastle Liability Extinguishment Bill when Parliament resumed next month.
Mr Layzell told the Newcastle Herald on Thursday that he hoped the bill would pass because diversifying the privately leased port's activities would benefit the Hunter and regional NSW economy.
On Friday, he went a step further, saying he could vote with Labor and the crossbench to pass the bill.
"I haven't had a chance to review the bill yet," he said.
"There may be some areas I would like to see changed.
"However, I do feel strongly that we should have a diversified competitive freight industry and maximise the benefits to the Hunter Valley.
"So I certainly would not rule out crossing the floor on issues that have far-reaching benefits for my electorate."
The Herald understands Mr Piper's bill would seek to remove a clause from the government's 2014 "commitment deed" with the Port of Newcastle consortium which requires PoN to compensate the government for any penalties the state must pay Botany and Kembla lessee NSW Ports if freight traffic in Newcastle exceeds a set cap.
The bill likely would not seek to change the state's agreement to compensate NSW Ports if Newcastle develops a rival terminal.
NSW Ports said it was not party to the commercial deal between PoN and the state and "as such it is not appropriate for us to comment".
The issue could test the Coalition relationship months out from a state election.
The Nationals have publicly backed changing the PoN deal as a Newcastle terminal would benefit farmers.
If the Coalition party room does not support the bill, Mr Layzell, outspoken Northern Tablelands MP Adam Marshall and other Nationals will have to decide whether to cross the floor.
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