Ferguson drops plan to sue Oakeshott

Martin Ferguson, Minister for Resources and Energy; Minister for Tourism, PM Julia Gillard and Deputy PM Wayne Swan last week Picture: Kym Smith Source: The Australian

FEDERAL Resources Minister Martin Ferguson will drop plans to sue Independent MP Rob Oakeshott for defamation, Prime Minister Julia Gillard says.

Mr Oakeshott says he received a letter from a law firm representing Mr Ferguson threatening legal action unless he apologises for comments made in a Fairfax newspaper criticising the government's mining tax.

But Ms Gillard spoke to Mr Ferguson this morning and he is expected to release a statement later in the day indicating his intention to drop the case.

"Minister Ferguson will not be pursuing such action against Mr Oakeshott and he will be releasing a statement to that effect very shortly,'' Ms Gillard told reporters in Sydney today.

"Minister Ferguson is a very honest man with a great deal of pride in his reputation for honesty and that's appropriate.

"He was therefore offended by comments that he saw in the Sydney Morning Herald, but he does not believe pursuing legal action is the appropriate way forward.''

Ms Gillard said the case would have no bearing on her working relationship with Mr Oakeshott.

"We'll keep working with Mr Oakeshott as we work with members across the parliament to get the job done that the nation needs,'' she said.

No thanks ... Independent MP Rob Oakeshott as rejected an offer to be a minister in a Labor minority government. Picture: Renee Nowytarger Source: The Australian

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