ABC AM with Tony Eastley

Subject: Leadership.

Transcript, E&OE

20 February 2012

TONY EASTLEY: Labor's leadership problems have stepped out of the shadows, with Ministers and MPs now talking about who they support and why. Names are being put on lists and a leadership ballot is looking likely when Parliament resumes next week. Some, like the Minister for Defence Stephen Smith, says he's been verballed and, yes, he's right behind the Prime Minister Julia Gillard. A Victorian backbencher has publicly called for her to resign. From Canberra, Naomi Woodley reports.

NAOMI WOODLEY: Julia Gillard's backers concede momentum is shifting towards Kevin Rudd, although they are adamant that he doesn't have close to the 52 votes he'd need to win a ballot. The Trade Minister Craig Emerson says a small group is responsible for the leadership chatter.

CRAIG EMERSON: I know it's a small group; I know there's a process of inflation going on, whereby that small group continually seeks to put people's names in the pile under Kevin Rudd's name.

WOODLEY: In response, some Caucus Members, like Matt Thistlethwaite, Rob Mitchell and Andrew Leigh, have used social networking sites to emphasise their support for Julia Gillard, calling for loyalty to see through the Government's plans. Many of the Prime Minister's supporters don't want her to call a leadership vote. Others say she should bring it on to put the matter to rest.

EMERSON: Well, this is a matter for others to contemplate. I'm interested in policy. I'm interested in the destabilisation by Labor MPs of a Labor Government stopping. Because what it is doing is playing into the hands of Tony Abbott. Yes, there is an alternative to Julia Gillard — that's Tony Abbott. The only beneficiaries of the attempted destabilisation of a Labor Government by a small group of Labor MPs are Tony Abbott and the Liberal Party.

WOODLEY: And Craig Emerson says there is a consistent level of frustration that the ongoing speculation is crowding out any attempt to talk about the Government's achievements, most recently the means testing of the private health insurance rebate.

EMERSON: Achievements made on their behalf, brokered through the Parliament by Prime Minister Gillard — but we're now having a discussion about politics and about leadership. And that's the pity of it all, because these are great Labor reforms in a great reforming tradition.

WOODLEY: Parliament doesn't sit again until next week, meaning a Caucus vote couldn't be held until then. It gives both sides another week to decide if a challenge should be brought on. But it will also be another week of speculation and distraction.

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