A federal intervention in New South Wales' Liberal preselections is looming, amid a deepening split between the party's conservative and moderate wings just months out from an election.
Prime Minister Scott Morrison has lashed out at the "childish games" and "factional rubbish" in NSW, which saw a ballot to endorse ministers Alex Hawke and Sussan Ley, and backbencher Trent Zimmerman, fail.
The three Liberals are facing challenges for preselection in their respective seats.
Before yesterday's vote, there was an expectation an agreement had been reached between the right, centre-right and moderate factions, and the trio would be endorsed.
There is speculation that tactical games are at play, with sources suggesting the right is using the endorsements as a bargaining chip to install its preferred candidates in Hughes, held by Liberal-turned-independent MP Craig Kelly, and the Labor-held seat of Dobell.
One Liberal described the immense frustration within the NSW division, which has been trying to resolve preselections for 12 months, and warned: "We need to get candidates in the field ASAP."
"People playing games in politics can often forget what it's all about, which is getting unemployment down to a three in front of it, protecting Australia's security interests and getting Australians into jobs."
Mr Morrison went onto praise Ms Ley, who is facing a challenge from a right-faction candidate.
He said if the NSW division failed to endorse her, "they should get out of the way and let the Federal Executive get it done".
A federal intervention is seen as a last resort, and would override the usual preselection process which gives the power to paid-up, grassroots members to pick candidates, with some input from party headquarters.
All other sitting Liberals in NSW, including Mr Morrison, have been formally preselected.
However, in a sign of the deep dysfunction, the party is yet to select candidates in a number of key seats including Hughes, Dobell and Tony Abbott's old seat of Warringah.
Many endorsements are being held up by the committee which controls the party's vetting process and some lay the blame at the feet of Mr Hawke, a close ally of Mr Morrison's, who is from the centre-right branch.
Such is the lack of trust between the factions that some suspect Mr Hawke is deliberately delaying the vetting process to trigger a dramatic federal intervention and install his faction's picks as candidates.
With time running out for the state to resolve the impasse, a federal intervention is looking increasingly likely.
The Liberals holds 14 of the 47 federal electorates in NSW and is hoping to hold all of them and pick up a handful more in May.
