The Liberal Party will not contest by-elections in two New South Wales seats held by MPs who resigned in disgrace amid a donations scandal.
The announcement followed revelations former Newcastle MP Tim Owen and Charlestown MP Andrew Cornwell accepted undeclared cash donations from developers.
Both men resigned after making admissions before the Independent Commission Against Corruption (ICAC), which is investigating political donations by developers.
Such donations are banned under NSW electoral laws.
NSW Liberal Party Director Tony Nutt issued an apology on behalf of the Party, saying the revelations "disgusted the honest, law-abiding parliamentarians, elected office bearers, members, donors and supporters of the Liberal Party".
"The people of NSW have every reason to be deeply disappointed and angry at those responsible," he added.
"As an act of atonement, the Liberal Party will not contest the Newcastle and Charlestown by-elections."
Deputy Opposition Leader Linda Burney described the decision as "astounding".
"It would have been a show of we're going to regain the trust of the people of Newcastle'," she said, "A notion of some act of atonement, I'm afraid, leaves me fairly cyincal."
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