MP says Labor can govern without agreement

Key federal independent MP Tony Windsor says a change of leader would not necessarily bring down the Labor minority government.

Mr Windsor, together with crossbench colleague Rob Oakeshott, signed an agreement following the 2010 federal election in which they guarantee the Gillard government their confidence in parliament’s lower house and to support supply.

The MP insists that agreement is with Prime Minister Julia Gillard and not transferable to anyone else.

But a new Labor leader might not need any formal agreement for the minority government to remain in power, Mr Windsor said.

“Minority governments can be formed without written agreements,” he told ABC Radio on Friday, adding that Ms Gillard could have assumed government until Labor’s numbers were tested in parliament.

“The new leader could enter parliament and assume the government benches until a vote of the parliament says he or she couldn’t.”

Mr Windsor’s comments come amid renewed speculation about the future of Ms Gillard’s leadership.

His oft-stated “all-bets-would-be-off” stance, in the event of a leadership change, has been seen as impediment to the return of Kevin Rudd.

Mr Windsor refused to say whether he was less inclined to support a minority government led by Mr Rudd.

“If I’m confronted with it, I’ll look at it,” he said, adding he did not think Labor would dump Ms Gillard.

Senior Labor figures this week have been keen to play down any suggestion Ms Gillard is under threat from a second leadership challenge within six months.

The latest round of speculation was sparked by the comments of chief government whip Joe Fitzgibbon who cast doubt on any political leader’s ability to remain in office without popular support.

Ms Gillard and Labor are languishing in the polls with an election likely in late 2013.

The prime minister continues to enjoy strong support amongst key unions with one reportedly threatening to withdraw $200,000 in political donations to the Labor Party if MPs dump Ms Gillard in favour of Mr Rudd.

Transport Workers Union boss Tony Sheldon told The Australian that Mr Rudd would be a “disaster” for the union movement.

He said Mr Rudd could not be trusted to represent union members and would lose the election if he seized the leadership.

Sources told the newspaper that Mr Sheldon told a meeting of union leaders on Tuesday that a “small minority” of MPs – whom he described as “dickheads” – was continuing to push for Mr Rudd to return to the leadership

He warned that if Mr Rudd was elected leader by caucus, his union’s national office and its state branches would refuse to make financial contributions to federal Labor’s re-election campaign.

Shadow treasurer Joe Hockey said it was “absolutely outrageous” that union bosses wanted to control who was prime minister.

“They are blackmailing the Labor Party not to get rid of her,” he told Macquarie Radio.

“Julia Gillard is their prime minister but frankly most Australians do not want her as prime minister and I suspect most of the Labor Party don’t want her as prime minister either.”

Ms Gillard is meeting union leaders at The Lodge in Canberra on Friday night when she is expected to outline key government initiatives in industry policy and job creation.

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