Coalition MPs back Turnbull despite backfire

Coalition MPs are backing their leader's role in the OzCar affair, saying he has done the right thing despite the issue backfiring on the opposition.

Malcolm Turnbull is facing fierce criticism he relied on a fake email to back charges Prime Minister Kevin Rudd misled Parliament over the Government's special treatment of a Brisbane car dealer.

Mr Rudd has called on senior coalition figures to tap Mr Turnbull on the shoulder and tell him to resign.

``Malcolm Turnbull did exactly what an opposition should do,'' Liberal frontbencher Tony Abbott said.

``We had credible evidence from a senior Treasury official that the prime minister had misled the Parliament.''

Mr Turnbull did ``absolutely'' what an opposition leader should do.

``He held the Government to account.''

Mr Abbott recalled the wheat-for-weapons scandal in which Mr Rudd pursued the previous Howard government from opposition.

Accusations Mr Rudd made at the time turned out to be ``totally false''.

``So let's have no more sanctimonious humbug from Mr Rudd over this issue,'' he said.

Mr Abbott admitted the Opposition could no longer sustain its case against Mr Rudd, but the case against Treasurer Wayne Swan was ``absolutely watertight''.

``The more we know about Wayne Swan's involvement in this matter, the clearer it is that he has misled Parliament.''

Liberal backbencher Stuart Robert said Mr Turnbull had done an outstanding job and the idea of asking for him to go because Mr Swan couldn't explain his actions was ``completely ridiculous''.

``This is all about the Treasurer,'' he told reporters.

``The stench in this affair is the fact that Mr Swan provided favours for Mr (John) Grant ... a Kia dealer. That's the stench. Let's get some perspective on this.''

Labor backbencher Nick Champion says Mr Turnbull has been foolish, reckless and irresponsible.

``It's time that Mr Turnbull did three things - confess to the Australian people about exactly what communications the Liberal party had with any of the players in this affair.

``He should apologise to the Prime Minister and the Treasurer and thirdly, he should resign.''