PM's payback for Rudd's mates

Key cabinet ministers are in the firing line after voting for Kevin Rudd in yesterday's leadership spill. Picture: Ray Strange Source: The Daily Telegraph

KEY cabinet ministers are in the firing line for "payback" after voting for Kevin Rudd in yesterday's leadership spill.

Senior government sources confirmed Robert McClelland is expected to be dumped from cabinet in a reshuffle to be announced by Julia Gillard before the end of the week.

But Immigration Minister Chris Bowen is expected to be spared.

The PM will now also be forced to find a replacement for another NSW ministerial vacancy created by the shock resignation of Mark Arbib.

Ms Gillard yesterday would not rule out demotions of key cabinet ministers who supported Kevin Rudd, claiming any changes would be based on merit.

This morning the PM still wouldn’t speculate on her ministry or rule out payback.

"I will judge my team the way I’ve said that I’m going to judge it: on merit and the capacity to take the fight up to the other side of politics," Ms Gillard told ABC Radio’s AM program.

"That’s what will drive my decision."

Ms Gillard said she would announce the ministry reshuffle in her own time.

Stephen Smith or Simon Crean are considered the likely candidates to replace Mr Rudd as foreign minister.

However, Mr Bowen was also named as a potential promotion into the job, not only on merit but as a gesture of unity.

"The next big challenge for us is how we challenge this reshuffle," a senior source close to the PM's office said.

"You would have to think Robert has to go. She wanted to do it last time but wasn't allowed.

"The problem is, can you have any confidence in the PM's office to manage considering the disaster of the last reshuffle."

Mr Rudd yesterday prevailed on caucus not to punish his supporters.

"My final request of the leader is no retribution against my supporters," he said. "They are good Labor people, every one of them."

Trade Minister Craig Emerson will act in Mr Rudd's role until a decision about the reshuffle - and could himself be in line to take the job permanently.

A spokesman for Mr Smith, who was foreign minister under Mr Rudd said: 'This is entirely a matter for the prime minister."

Ms Gillard will continue with a divided inner sanctum with some of Mr Rudd's backers, such as Martin Ferguson, set to stay on.

Leader of the house Anthony Albanese's office confirmed he would remain in the chief parliamentary head-kicking role after Ms Gillard had refused to accept his resignation.

"I would hope Julia Gillard would want to see me continue in the cabinet," Mr Bowen said.

"But that would entirely be a matter for the prime minister of the day and I will serve in any cabinet capacity for either of them."

Mr Ferguson is considered a valuable asset to the government and said: "I will always serve the Labor Party."

It was unclear what will happen to Manufacturing Minister Kim Carr who was demoted in last December's botched reshuffle.

By retaining Ms Gillard as leader, the party avoided an exodus of ministers with Attorney-General Nicola Roxon and School Education Minister Peter Garrett declaring they would not serve as ministers if Mr Rudd was re-elected.

Treasurer and Deputy Prime Minister Wayne Swan may also have refused to serve Mr Rudd.

David Bradbury and former defence minister Joe Fitzgibbon have been named as MPs from the NSW Right who could replace Mr Arbib and Mr McClelland.

Opposition Leader Tony Abbott, meanwhile, said yesterday’s leadership battle had changed little, saying Australia today had the "same untrustworthy" PM and the “same dud policies” as it did yesterday, before the spill.

"This isn't a new start for the prime minister it is just a stay of execution," Mr Abbott said.

Mr Abbott said Mr Rudd was still "nursing ambition".

"We know that Bill Shorten has an enormous opinion of himself, we know that Simon Crean and Stephen Smith were auditioning last week, and they will be waiting for this prime minister's first stumble," he said.

"I think the Australian people are desperate for better government. I think they know that we are better than this. I think they know that we are a great country which has been badly let down by a poor government getting worse."
 

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PM's payback for Rudd's mates