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Derision rose from the floor as Pesutto took to the stage to deliver a speech on Saturday at the Liberal Partys state council in Bendigo, where he urged the party to unite and focus on the Andrews government ahead of Tuesdays state budget.

Supporters of Moira Deeming at the Liberals state council on Saturday in Bendigo. Penny Stephens

But the meeting was overshadowed by a group of party members wearing Deeming masks, who yelled Shame, shame as dozens of others many of them from Deemings Western Metropolitan electorate left the room before Pesuttos speech.

In response to the walkout, many of Pesuttos supporters rose to their feet to cheer the leader in an attempt to drown out his critics.

Liberal MPs broadly dismissed the walkout and talked down any immediate threat to Pesuttos leadership.

However, several federal and state MPs, who spoke to The Age on the condition of anonymity to discuss internal party matters, , particularly if Deeming proceeds with her threat of defamation action against him.

The unrest came just over a week after the parliamentary Liberals voted 19-11 to expel Deeming from their team after she to challenge her nine-month suspension.

and lost her position as upper house whip after attending , that was .

After Saturdays walkout, Pesutto urged more than 300 members who stayed inside the conference room that the party had to remain disciplined and focused.

Whatever we might say about the Labor Party, whatever criticisms you might level, they have kept it together in terms of focus and discipline, he said.

The Victorian Liberals have voted to expel Moira Deeming from the party room during a 90-minute meeting of MPs this morning.

We can win, people want us running the state, but we have to believe in ourselves.

Outside the venue, party members who walked out, including Ross Kroger, Noelle Mason and Maria Cagalj, told The Age Pesuttos actions in supporting the expulsion motion against Deeming were disgraceful and disgusting, and called for him to be replaced.

To have her expelled, its disgusting," Mason said.

John Dunn, a Liberal member for 40 years, said he wrote to Pesutto and called on him to apologise.

Opposition Leader John Pesutto arrives at the meeting in Bendigo on Saturday. Penny Stephens

I know many Liberals are very upset and my only hope now is that you have not destroyed the Liberal Party, he wrote in the letter seen by The Age.

Pesuttos critics also said their anger at him was shared by some federal MPs, and cited .

Senator Sarah Henderson addressed members after Pesutto, and called on the party to expel Prime Minister Anthony Albanese from office, which was widely interpreted as a rebuke of state Liberals decision to expel Deeming.

As a strong and united team which respects our individual freedoms, including the freedom of speech and freedom to be our best selves our broad church working together with you, we can do this, Henderson said.

Pesutto didnt address the Deeming scandal in his speech, and instead made an early election commitment to hold a comprehensive review of the states tax system which would include a review of stamp duty and payroll tax.

He also promised to reinstate a Victorian version of the productivity commission if elected in 2026.

After his speech, Pesutto played down the walkout by more than two dozen members and said he was moved by the standing ovations from supporters.

If there were people that had different views, thats a matter for them, but what I saw was a strong endorsement to my commitment to reforming the party, he said. I was overwhelmed by the strong support in the room.

Senator Sarah Henderson called on the party to expel Anthony Albanese from office in her address. Penny Stephens

Privately, some of his colleagues fear Deemings defamation action will ultimately cost him his job by causing a distraction in the lead-up to the 2026 state election.

One MP said: Labor will weaponise both the bullying and defamation claims, and he wont ever be an effective opposition ... in the longer term he might have to consider an orderly handover.

Pesutto greets federal Liberal MP Dan Tehan at the conference. Penny Stephens

Federal Liberal MPs Dan Tehan, Jane Hume and James Paterson also attended the conference with the majority of state MPs and Victorian Nationals leader Peter Walsh.

As MPs and grassroots members arrived at the conference, Deemings supporters handed out copies of a newspaper article in which the MP declared in an interview she wont go quietly.

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Shame, shame: Opposition Leader John Pesutto booed at state council meeting - The Age