STAR Labor recruit Nova Peris has been forced to issue a statement after a smear campaign alleged wrongdoing during her time working for an NT government department.

As the fallout continued from Prime Minister Julia Gillard's "captain's pick" of Ms Peris for a Northern Territory Senate seat, rumours began circulating that Ms Peris had misused departmental assets during her time working with the Northern Territory Education Department.

"I have been made aware of malicious and unfounded rumours circulating about my time as an employee of the Northern Territory Department of Education in 2011 and I wanted to definitely correct the record to address these incorrect suggestions," she said in a statement.

"I put my own furniture, including two lounge suites, a coffee table, a fridge, a microwave and a rug into two of the academies," she said. "After finishing work with the department in November 2011, I was asked by the department to remove my furniture, which was replaced by new furniture purchased by the department. No furniture owned by the department was ever taken by me from the academies."

The Australian reports Ms Peris was not aware on any investigations into her behaviour and that she was never questioned over any incidents.

"I left the job with the department in November 2011 on good terms," she said.

"The decision to leave was solely of my own choosing. I am committed to becoming a member of the Labor team and am determined to work hard for young and indigenous Australians and all Territorians."

Julia Gillard named Ms Peris as her choice for the NT Senate seat on Tuesday, a move that blind-sided long-serving Territory Senator Trish Crossin who says she was only told of the decision on Monday night.

The smear campaign comes as nervous Labor MPs said some anxious caucus members fear the PM may dispose of them before the election in the same way Senator Crossin's career was terminated.

Senior Labor MP Chris Evans has defended the Prime Minister 's decision, saying Ms Gillard was right to step in.

media_camera Prime Minister Julia Gillard has announced that Nova Peris is her preferred Senate candidate for the Northern Territory, displacing incumbent Labor's Senator Trish Crossin. Picture: Kym Smith

"The Labor party has had many members of parliament around Australia (and) in the state parliaments but it has been a failure on our part to successfully get an indigenous person elected for federal parliament," he told ABC Radio this morning.

"It's something the prime minister wanted to address and is now seeking to, if you like, right that wrong."

Senator Evans also criticised former NT Labor minister and now Country Liberal Party minister Alison Anderson, who said Ms Peris would be the "maid inside the house" of the party.

"Her commentary about Nova Peris ... is completely inappropriate - it's insulting and demeaning," he said.

"I think it reflects the fact that she's now crossed over to become a Liberal-National Party minister and it's very much a political attack."

However, there are concerns within Labor ranks the tactic used to put Ms Peris into the NT's top Senate spot would be used to "entrench'' the leadership of the party.

Several MPs said they regarded the use of the National Executive to oust Ms Crossin, a supporter of Kevin Rudd, as an unprecedented use of power by Ms Gillard to remove a representative.

"There are a lot of caucus members who are worrying what it means for them if they are not seen as an absolute star or a supporter,'' one MP said. "It has set a very damaging precedent.''

Who do you think should get the chop? Have your say below

media_camera Senator Trish Crossin, Deputy Chair of the Legal and Constitutional Affairs References Committee, during an inquiry into Australia's agreement with Malaysia in relation to asylum seekers, during a sitting of the committee at Parliament House in Canberra. Picture: Kym Smith

The anxiety generated by Ms Crossin's knifing was exacerbated because Ms Gillard had previously seen off Kevin Rudd and Harry Jenkins from their positions, MPs said.

One Labor MP even likened the move to end Ms Crossin's career to communist ideology of "executing one to educate a thousand''.



"She is heading down a dangerous path and setting a dangerous precedent if a leader can pick caucus members on the basis of patronage,'' the MP said."We are risking seeing candidates selected to entrench the leader.''

SA Labor MP Nick Champion yesterday told Sky he disagreed with the PM's intervention.

"I don't think that that's the best way to go - I think we're nearly always better having rank and file involvement in the preselections,'' he said.

Ms Gillard has said Ms Crossin's backing of Mr Rudd in last year's leadership challenge had nothing to do with her decision to endorse Ms Peris, who is assured a Senate spot and will become Labor's first indigenous representative in Federal Parliament.

The decision came in the wake of Labor being swept from power in the NT last August in an election in which indigenous voters abandoned the party to vote Liberal.

Ms Gillard began planning the move seven weeks ago and told Ms Crossin on Monday night at The Lodge but has said she would not routinely intervene in preselections.

Ms Crossin yesterday said in a Facebook update that thousands of people had sent her "messages of support and well wishes by text, Facebook, email and phone over the last few days.

Dozens of supporters posted replies including one who said: "I think what Julia Gillard has done to you is the same as what was done to Kevin Rudd. How dare they treat people like that.''

Originally published as Peris hits out at smear campaign