Ted Baillieu has resigned as Victorian premier. Mr Baillieu resigned on Wednesday night after MP Geoff Shaw quit the party, threatening the coalition’s grip on power.
Denis Napthine is the new leader and Mr Baillieu will remain in parliament.
Mr Baillieu says it is clear to him that a change of leadership is in the best interests of the government.
‘‘I love this state, I love the Liberal Party and I love this role that I have had the honour to enjoy over the last two and a bit years,’’ he told reporters.
‘‘It is apparent to me that a change of leadership is in the best interests of the government.’’
Dr Napthine has previously led the Victorian Liberal Party in opposition but was deposed by Robert Doyle in 2002.
‘‘Ted has put his heart and soul into the Victorian Liberal Party ... for the best part of three decades,’’ Dr Napthine said.
‘‘He is an outstanding individual.
‘‘He is not just a colleague, he is a great friend.
’’Dr Napthine said he was proud to serve under the Baillieu government.
‘‘I look forward to providing strong, stable and positive government for the people of Victoria,’’ he said.
Mr Shaw’s resignation from the Liberals leaves the coalition with only half the seats on the floor of the lower house, and relying on the vote of Mr Shaw - an ex-bouncer accused of misconduct in public office - to remain in power.
In a statement, Mr Shaw said he had lost confidence in the coalition government leadership.
‘‘Labor left Victoria in a mess and Victorians elected a coalition government to fix the problems and build for the future,’’ he said.
‘‘While the government has made significant progress in that direction, I believe my actions reflect the general loss of confidence Victorians are feeling in the leadership of the government.’’
Mr Shaw did not say whether he would support the government on matters of supply.
