Crean warns Labor of 'mutual destruction'

20 Feb 2012, 11:13 am   -   Source: AAP

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Former Labor leader Simon Crean says Labor is in danger of 'mutual destruction' unless the tension between Julia Gillard and Kevin Rudd is resolved.

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Labor is in danger of "mutual destruction" unless the leadership tension between Kevin Rudd and Julia Gillard is resolved, former leader Simon Crean says.

Mr Crean is urging the foreign minister to be a "team player" and encouraging the prime minister to "have a conversation" with her rival.

"The responsibility for us is to stem the mutual destruction that is going on and get back to some principles of integrity and openness and honesty and frankness," he told ABC radio on Monday.

"(We should be) prepared to confront the issue directly - not just deal with this madness that is going on by leaking."

Senior MPs rallied behind the prime minister after a weekend of speculation and verbal jousting, sparked by a leaked video of Mr Rudd swearing while trying to record a speech.

Schools education minister Peter Garrett, who is with the prime minister in Canberra on Monday for the launch of the Gonski school funding review, says the leader is doing "a good, good job in somewhat difficult circumstances".

"I have said clearly that I do support the prime minister," Mr Garrett told ABC radio.

Defence Minister Stephen Smith says it has been a tough 12 months for the government.

"We've fronted up to some very difficult questions about our country's future and that's what we need to be focused on - doing our jobs," he said.

Mr Crean says if Mr Rudd had the numbers to challenge Ms Gillard at a caucus meeting - which could be held as early as February 27 - he would.

"(But) he hasn't and he won't.

"What's got to happen is the prime minister has got to have the discussion with him."

The regional development minister says Mr Rudd, who is in Mexico for a G20 foreign ministers' meeting, is "clearly not playing as part of the team".

"(And) if he can't be part of the team he should exit the team or challenge."

Asked if Ms Gillard should sack the foreign minister, Mr Crean replied: "That's a question of judgment for her based on that conversation."

He says Mr Rudd is failing to convince Labor MPs of the need to reinstate him as prime minister and his supporters' alternative strategy is to go public.

"For all the time that he has been trying to say that he is different, a different Kevin, a new Kevin, all he does is reinforce the old Kevin."

Former Labor powerbroker Graham Richardson says he's staggered Ms Gillard hasn't sacked Mr Rudd for his part in instigating the expected challenge.

He predicts the prime minister will call Mr Rudd's "bluff" and announce a leadership spill by the end of the week.

Independent MP Tony Windsor says he doesn't think Mr Rudd would succeed in any caucus ballot, but believes there needs to be some "clearance of the air".

Australian Chamber of Commerce and Industry (ACCI) chief Peter Anderson says mounting speculation over the foreign minister making a run for the top job is harming the business environment.

"Those matters and the extent to which they need to be resolved are matters for the politicians, but there are risks to the economy, especially when there is political instability inside a governing party," he told ABC radio.

Former Queensland premier Peter Beattie says the speculation is killing Labor's chance of retaining government in the state election on March 24.

"It's time that there was a caucus meeting and the matter was dealt with once and for all," he said.

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