Isra-Mart srl : Turnbull still harbours leadership hopes

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Malcolm Turnbull says he still has ambitions to lead the Liberal Party once more, but he has no doubt Tony Abbott will take the Coalition to the next election.

The Government today seized on the Opposition frontbencher's appearance on ABC1's Lateline where he described the Coalition's direct action climate policy as inefficient and expensive.

He says he is surprised by the way his latest comments have been reported and the reaction to them.

Mr Turnbull lost his party's leadership to Mr Abbott because of his support for emissions trading and has previously criticised the Coalition's direct action policy, saying it risks wasting billions of dollars.

He argues there is nothing new in admitting that he would like to be leader again one day, but indicates it will not be before the election.

"Every member of the House of Representatives has a field marshal's baton, or the leader's baton in their knapsack, so nobody can ever discount that sort of ambition completely," he told the Queensland Media Club.

"However, and I've said it before and I'll say it again, I have absolutely no doubt, no doubt whatsoever, that Tony Abbott will lead the Liberal Party, the Liberal-National party, to the next election."

But Mr Turnbull says he is not certain of Mr Abbott's victory.

"I can't say I have no doubt that he'll win it but I think he's more likely to win it than not," he said.

"We're certainly not complacent, so I have every reason to believe that within a couple of years or so Tony will be prime minister."

Prime Minister Julia Gillard says Mr Turnbull has "let the cat out of the bag" with his comments about the Coalition's climate change policy.

"Last night on Lateline, Malcolm Turnbull told us the truth. He told us the truth that basically this plan won't work. He told us the truth that it would blow the budget," she said.

"He said this is a plan where industry was able to freely pollute, if you like. That it would become a very expensive charge on the budget in the years ahead.

"Mr Turnbull is telling us that Mr Abbott plans to blow the budget."