Australian govt denies sacked PM behind leaks

AFP

SYDNEY: Australia's government Thursday denied sacked ex-leader Kevin Rudd was behind leaks which have dented its election campaign and indicate lingering bitterness over last month's party coup.

Prime Minister Julia Gillard, who ousted Rudd with the backing of powerful Labor Party factions, described her former boss as "honourable", and threatened to sack any ministers who leaked information.

"Kevin Rudd is honourable. He's working hard for his local community," Gillard said.

"If there is anyone in my government, if we are re-elected, that does not respect the confidentiality of cabinet they then will no longer be a cabinet minister," she added.

On Wednesday, Gillard angrily rebutted the claim that she opposed popular welfare increases while serving in Rudd's cabinet, the latest hiccup in her increasingly tight race for August 21 polls.

Deputy Prime Minister Wayne Swan also dismissed media speculation -- earlier denied by Rudd -- that the former leader was deliberately sabotaging his successor's campaign.

"I do believe that he is doing everything that he possibly can to see the return of the government, including campaigning in his local electorate," Swan told public broadcaster ABC.

However, the ruling Labor Party is reportedly deeply worried by the latest in a series of breaches, and fears any recurrences in the final stages of campaigning.

The welfare leak follows allegations that Gillard reneged on a secret deal to let Rudd remain as prime minister until October, and a story which accused the ex-leader of not attending high-level security meetings.

"What's next?" an insider told the Australian Financial Review newspaper. "We could die the death of a thousand drips."

Rudd was sensationally axed by his own party in late June, after his sharp fall from record popularity raised jitters about Labor's re-election prospects.

But the latest Newspoll shows centre-left Labor just four percentage points ahead of the conservative Coalition, the same gap as immediately before Rudd's dismissal.

Another survey released on Thursday showed Gillard's personal approval dropping to level with Coalition leader Tony Abbott, while sportsbet.com.au said 90 percent of wagers since late Tuesday were for an opposition win.

The opposition seized on the tip-offs as a sign of disunity in the government, now flirting with an electoral defeat which would have been unthinkable just months ago.

"The institute of cabinet and the need for unity and the need for discipline is fundamental to stable government in our system," said opposition frontbencher Andrew Robb.

"This government has not only lost its way, it's now off the tracks and it's heading for a train wreck."

Welsh-born Gillard, Australia's first woman prime minister, came to office promising to get a drifting government back on track, but has hit a number of hurdles.

Her plan to house asylum-seekers in East Timor is mired in confusion, while a proposal to consult a "citizens assembly" on climate change was universally condemned.

Gillard neutralised a mining tax row with influential resources companies just days after coming to power, but smaller firms this week launched a new TV campaign against the revamped levy.

Some 57 percent of voters believe Rudd's undignified removal will hurt Labor's re-election chances, according to a recent poll, while analysts said the leaks were clearly payback.

"The cause is obvious: it is the price Labor is now paying for the destruction of Rudd's prime ministership," said Financial Review columnist Geoff Kitney. "Treachery sown is now treachery being reaped."