Michael McCormack survives challenge from Barnaby Joyce in Nationals leadership spill

Michael McCormack managed to fend off a challenge from former leader Barnaby Joyce and hang on to the Nationals top job on Tuesday.

Emergency Management Minister David Littleproud will replace Agriculture Minister Bridget McKenzie as deputy leader of the party.

Mr Joyce defended his decision to challenge Mr McCormack on the first day of the parliamentary year, saying the right to challenge was fundamental to freedom, and he made the process "as brief as possible".

In an opinion piece for The Canberra Times, Mr Joyce turned to the climate debate, saying the answer is nuclear power and "efficient coal power technology", which would substantially curtail emissions.

People in regional areas had had enough of wind towers on the hill in front of their veranda, he said, challenging city dwellers to put up with wind turbines at Bondi beach, or a 3000 hectare solar farm next door.

Politicians would always back the climate policy that had the least direct effect on them.

"Wind farms are for your backyard not mine, zero-emission nuclear is for France, only support banning coal mines if the coal mines aren't in your electorate, and try not to get caught on a sticky question of what replaces our nation's largest export," he said.

His challenge on Mr McCormack was sparked by Senator McKenzie's resignation over the sports grants affair.

Disgruntled parliamentarians took the opportunity to move against Mr McCormack, citing dissatisfaction with his ability to communicate with regional Australians.

Resources Minister Matt Canavan declared the party needed a "bulldog", when he quit his portfolio late on Monday to back Mr Joyce. Mr McCormack has confirmed Senator Canavan will not return to cabinet.

This means there will be a reshuffle of portfolios, although Senator McKenzie and Senator Canavan were returned as the party's leader and deputy leader in the Senate.

Mr Morrison told the Coalition party room on Tuesday the party needed to be united to best serve Australia. He said the party had come together to win an election against all odds and needed to refocus its efforts on delivering for Australia.

Mr Littleproud said it was time to focus back on regional Australia.

"The shenanigans are over," he said.

Mr McCormack said the Nationals must unite.

"We had way too much media speculation, way too much speculation in general, about the leadership role. It's time to put all that to bed," he said.

Mr Joyce meanwhile blamed undisclosed colleagues for talking him into challenging for the leadership, in an interview on Seven on Tuesday night.

However the Member for New England made no secret of his ambition to return to the leadership after he was force to resign two years ago under pressure over an affair with his staffer and sexual harassment allegations - and has said before if the position becomes vacant he will stand.

But Mr McCormack said it was time to draw a line in the sand.

He said he had been endorsed as leader when Mr Joyce resigned two years ago, again after the 2018 election and again on Tuesday.

He had shaken Mr Joyce's hand, would continue to work with him and did not expect him to challenge again, Mr McCormack said.

"That's three times in less than three two years. I think that's enough to warrant me leading the party going forward," he said.

The Nationals do not release the results of their ballots, which remain secret even within the party, but the vote was reported to be close by Joyce supporters. Keith Pitt and David Gillespie also stood for deputy.

It has prompted speculation that another challenge could be on the cards.

However Mr Joyce now said "the issue is finalised".

"It is appropriate that if an issue needs resolving as to contentions held, there is a procedure to resolve it, as is noted in our parliamentary system," Mr Joyce said.

"That process has been followed and the issue is finalised. This was made as brief as possible prior to the first sitting of parliament for the year."

But Nationals MP Darren Chester said allegations of Mr McCormack's failings were a "confected crisis brought up by others trying to promote their own self-interest".

"If this was just a shouting contest where you just have to yell abuse at the Liberal party to get results well then maybe we'd have a different leader. But it's not that. You have to negotiate, you have to get outcomes for our communities and you have to show a unity of purpose," Mr Chester said.

Meanwhile the Department of Prime Minister and Cabinet secretary Phil Gaetjens is set to investigate whether Senator Canavan also breached ministerial standards.

Mr Gaetjens' report on Senator McKenzie - which found she should have recused herself when giving grants to gun clubs she had undisclosed links to - was the catalyst for her resignation.

Senator Canavan revealed he had an undisclosed interest in the Cowboys NRL team, which received a $20 million loan through a program he oversees, when he quit cabinet.

A spokesperson for Mr Morrison said, "The Prime Minister has today asked for advice from the Secretary of the Department of Prime Minister and Cabinet on the matter raised by Senator Canavan."

Labor senator Murray Watt said Senator Canavan should also be sanctioned over the omission.

"The same standard should have been applied to all ministers," Senator Watt said.