Gillard keeps job as premier after possible rivals spurn leadership ballot

Her predecessor, Kevin Rudd, whom she ousted in an internal party coup in 2010, had been 
expected to attempt to replace her.

But at the last moment he announced he would not contest the ballot.

Senior minister Simon Crean had earlier brought leadership unrest to a head by calling on his government colleagues to sign a petition to force a ballot if Ms 
Gillard refused to call one.

The Labour party faces the growing prospect of a sound election defeat on September 14.

Ms Gillard announced the ballot for her job, and that of Deputy Prime Minister and Treasurer Wayne Swan, on the last day of parliament before a seven-week break.

“I have determined that there will be a ballot for the leadership and deputy leadership of the Labour Party,” she told parliament.

Mr Crean – a former Labour leader who is now Minister for the Arts, Regional Australia, Regional Development and Local Government – said he wanted to be deputy leader and called on Mr Rudd to challenge for the top post.

Part of Mr Rudd’s appeal is opinion polling that shows he would be a far more popular choice of the public. He led Labour to victory at elections in 2007 before being deposed, and challenged Ms Gillard last year and was roundly defeated in a ballot of Labour politicians.

“Kevin Rudd in my view has no alternative but to stand for the leadership,” Mr Crean said.

Mr Rudd, however, took a different view, and Ms Gillard was elected unopposed, although possibly weakened.

The dramatic events came after Ms Gillard delivered a historic national apology in parliament to the thousands of unwed mothers who were forced by government policies to give up their babies for adoption over several decades.

After the vote, Ms Gillard said: “Today the leadership of our political party, the Labour Party, has been settled and settled in the most conclusive fashion possible.”