NSW Premier Gladys Berejiklian has conceded the Liberal party has lost the seat of Wagga Wagga for the first time in 60 years.
With over 85 per cent of the vote counted, independent Joe McGirr is in the strongest position.
"I want the people of Wagga to know that my government will work hard across NSW but especially in that region, to win back the trust that we have clearly lost," she said.
She said the result also indicated the impact of the federal Liberal party leadership spill which elevated Scott Morrison to the prime ministership.
“This was really about trust in the political system, trust in politicians,” she said.
NSW Premier Gladys Berejiklian has shouldered the blame for the significant swing against her government in the Wagga Wagga by-election. Source: AAP
“The overwhelming message I was getting is that people were sick of politicians fighting amongst themselves and sick of the perception that politicians were in it for themselves and not the community.”
She said she believed the party can regain its losses, citing how the party bounced back after the 2013 swing against the Liberals in the NSW seat of Miranda.
“We had a swing of 26 per cent against us and the Coalition was able to regain the seat,” she said.
Saturday's by-election was triggered by the forced resignation of Daryl Maguire over a corruption scandal.
Independent Joe McGirr is set to win the regional seat of Wagga Wagga. Source: joemcgirrnews.blogspot.com
A recording played during the Independent Commission Against Corruption captured Mr Maguire discussing developer ‘dividends’ for helping to broke a multimillion-dollar property deal for the then Canterbury City councillor Michael Hawatt in 2016.
Premier Berejiklian apologised to voters for Mr Maguire’s resignation.
MPs downplay impact of leadership spill
Treasurer Josh Frydenberg conceded the federal Liberal party leadership spill had had an impact, but said he believed local issues were more significant.
“Now clearly what happened in Canberra doesn't help the overall situation but if you're looking for cause and effect, it was local factors,” he told ABC’s Insiders program.
The premier and several of senior colleagues acknowledged Malcolm Turnbull's knifing had deterred some voters in Wagga but federal Senator Jim Molan dismissed those concerns.
Deputy Prime Minister Michael McCormack also wouldn't be drawn on whether the federal coalition would be to blame for a Liberal loss saying the government wasn't intending on losing the seat.
12.9 per cent margin slashed
A troubled campaign bookended by a local corruption scandal and a messy federal leadership coup has eroded their once-safe 12.9 per cent margin, senior government sources say.
Doctor and academic Joe McGirr ruled out joining the coalition once in government.
Liberal candidate Julia Ham told the subdued crowd she would consider running in March if the loss eventuated.
No matter the outcome, Labor candidate Dan Hayes declared the community had
"made Wagga marginal again" after arriving at the election night reception to rapturous applause.
Mr Hayes said the local and national scandals had stoked community anger.
- Additional reporting by AAP
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