"But I say the Australian people, we are a progressive party, we are an honest party made up of honest people who are not afraid to express a view. We do not have an emperor who imposes his view without contradiction and without question."

Earlier today

LIBERAL Leader Malcolm Turnbull called on the fight against those in the party unhappy with his handling of the emissions trading scheme issue, with a party meeting held at 1pm to confront those challenging his leadership authority.

The move came as anger over Mr Turnbull's ETS decision spread to the Coalition front bench, with three shadow parliamentary secretaries quitting their roles this morning in protest at his decision to support an emissions trading scheme.

The three are Mathias Cormann, Brett Mason and Mitch Fifield. All sent letters to Mr Turnbull this morning.

A full shake up of the shadow ministry is expected before the end of the week.

Mr Cormann is shadow Parliamentary Secretary for Health Administration, Mr Mason is shadow Parliamentary Secretary for Education and Mr Fifield is shadow Parliamentary Secretary for Disabilities, Carers and the Voluntary Sector.

Former Howard government Minister Kevin Andrews was the only definite leadership candidate.

Mr Andrews was basing his tilt for the top job on the premise that a majority of the party was unhappy with Malcolm Turnbull’s decision to push through support for an emissions trading deal. "For these reasons I will put my hand up if there is a successful motion to have a spill this afternoon," he said.

"The reason I'm doing this is because I believe the decisions or the purported decisions that were taken yesterday do not reflect the overwhelming majority of what Liberal Party members throughout Australia believe about this issue," Mr Andrews said.

"They do no reflect the views of the majority of Liberal Party supporters throughout Australia.

"The indication is that people are now starting to understand what the cost of Mr Rudd's ETS will mean for them.

"It is an imposition in terms of a tax upon them that won't be simply for the next few years but will continue and cascade for decades and generations to come."

Mr Andrews talked up his 20 years of experience as suitability for the job, but acknowledged mistakes made during his term as Immigration Minister residing over the bungled Mohammed Haneef affair and as Workplace Relations minister and the Work Choices policy often blamed for the Government’s election failure.

Mr Turnbull's camp was confident he had the numbers to "comfortably" head off any spill of the leadership, frontbencher Ian Macfarlane says.

Tony Abbott told the media this morning that he would not challenge Mr Turnbull, and Joe Hockey also confirmed he would not be standing for the leadership.

Mr Turnbull's strategy was to both remove any speculation about his hold over the party, and to lock in the party behind his controversial stance of having the Liberal party vote in favour of the Government's amended emissions trading scheme.

Background

The move follows extraordinary scenes last night, when Mr Turnbull declared he was the leader and would cut a deal with Labor on the emissions trading scheme.

If anybody was opposed, they should move a motion and challenge him, he said.

"I'm the leader, right. And if people are unhappy with the leader, they can take whatever steps they deem appropriate. But I am the leader and I have made the call," he said.

A Liberal source opposed to the decision said that during the day's party meeting 40 MPs spoke against accepting the $7 billion worth of Government concessions and 33 in favour. When shadow cabinet was included the numbers were 47-46 in Mr Turnbull's favour.

Afterwards Wilson Tuckey and Dennis Jensen gave notice that a leadership spill motion would be moved.

Kevin Andrews and Tony Abbott were both considering challenging. Joe Hockey said he would not stand.

The Liberal Senate leader, Nick Minchin, was so angry he was threatening to resign from the front bench so he would be free to vote against the emissions scheme which Mr Turnbull wants passed this week.

The events came at the end of a party-room meeting lasting almost eight hours to decide whether to back Labor's amended scheme that gave the Coalition more than $6 billion in extra concessions to heavy polluters.

By about 7pm, an exasperated Mr Turnbull was claiming a majority of three. He calculated this by adding the individual views of the 20 shadow cabinet members and took into account the Nationals, all of whom are hostile.

"That's enough, we're going to vote for it," he told the party room.

He stormed out and rumours swept Parliament that there would be a leadership challenge. Mr Turnbull was coaxed back into the meeting and it resumed at 8pm.

Mr Abbott spoke to try to calm things down and Senator Minchin gave Mr Turnbull a way out. He said Mr Turnbull would have majority support if he allowed the Senate to delay the legislation until February, after the Copenhagen climate conference.

Mr Turnbull refused and the meeting was called off.

"I've never seen such a wild bunch in the party room," an MP said.

Following weeks of negotiation, Mr Turnbull and his emissions trading spokesman, Ian Macfarlane, had secured more than $6 billion in extra compensation and exemptions for big polluters from the Government.

But Mr Turnbull's authority took a hammer blow in the afternoon when Andrew Robb spoke against accepting the deal. Mr Robb was the emissions trading spokesman until five weeks ago when he moved to the backbench to deal with depression. His attack on the amended scheme was loudly applauded by the climate change dissidents and infuriated Mr Turnbull's supporters.

"Worst act of bastardry I have seen in politics," a senior frontbencher said.

Mr Abbott and Mr Andrews were suspected of positioning themselves for a leadership challenge when they left the meeting together for about an hour in the morning.

The first move came in the afternoon when Mr Tuckey threatened a spill because Mr Turnbull would not allow the matter to be decided by secret ballot.

"I'll be back here with others to have a secret ballot on the leadership," he threatened.

It is believed that under Liberal Party rules, it would be up to Mr Turnbull to call the meeting. But it would be hard for him to resist the demands for a test of his leadership.

Mr Andrews told The Age he did not think Mr Turnbull could ignore the call for the special meeting to test his leadership. ''I will be a candidate,'' he said. ''I believe we need to reconnect with the grass roots of our party and with the Australian people.''

Mr Andrews said if he were leader he would support deferring the emissions legislation until after next month's climate change conference in Copenhagen and sending it to a Senate committee for further analysis.

But one of the likely alternative leaders, shadow treasurer Joe Hockey, told The Age late last night: "There's no vacancy and I'm not a candidate."

Even so, there was talk last night about persuading Hockey to run.

But frontbencher George Brandis tried to play down talk of a spill. ''Yet another meeting is the last thing most of my colleagues want,'' he said.

Deputy leader Julie Bishop, asked if she would back Mr Turnbull's leadership come what may, said: ''I support the leader''.

So volatile is the situation that no one wanted to predict what would happen today, let alone tomorrow.

The Nationals have formally split from the Liberals on the scheme. They will oppose and delay where they can.

Sen. Minchin, if he doesn't resign from the frontbench in protest as well, will decide Senate tactics. He is bound by shadow cabinet solidarity to usher the legislation through.

If he does, there still exists the potential to embarrass Turnbull. The five Nationals will cross the floor. Up to a dozen Liberals will do the same. One of them will be Minchin if he quits.

Sen. Minchin had appealed to Mr Turnbull in last night's meeting to accept a delay move on the legislation as a face saver.

But Mr Turnbull suggested the Opposition would have to get someone else if it wanted to take that course.