AUSTRALIA has a new Prime Minister. His name is Kevin Rudd.

Three years and three days on from the day he was knifed by the faceless men, the former PM has been returned to the Lodge following a secret ballot called by Ms Gillard.

Chris Hayes, the Chief Whip, announced at 7.45pm that Mr Rudd had defeated Ms Gillard by 57 votes to 45.

It was Mr Rudd’s third attempt to exact revenge and steal back his job.

The first decision under the second Rudd Government be abandoning Ms Gillard’s September 14 election date and go to an early election – sometime in August.

Anthony Albanese will become Deputy Prime Minister.

And Wayne Swan will be replaced as Treasurer by Chris Bowen.

Craig Emerson, Joe Ludwig and Communications Minister Stephen Conroy have quit. Penny Wong has been elected as the new Labor leader in the Senate, a position previously held by Mr Conroy, with Jacinta Collins as deputy.

In the end Victorian powerbroker Bill Shorten delivered the killer blow when he announced he would back Kevin Rudd 30 minutes prior to the ballot.

The Workplace Relations Minister and former union boss, who delivered Julia Gilled the prime ministership in 2010, said he believed his decision was in the best interests of the nation and the Labor party.

“I have carefully considered my position,” and emotional Mr Shorten said, 20 minutes before the 7pm ballot.

“I have now come to the view that Labor stands the best chance to defend the legacies of this government and improve the lives of millions of Australians with Kevin Rudd as leader.”

Labor powerbroker Bill Shorten - who delivered Julia Gillard the prime ministership in 2010 - switched his allegiance and was instrumental in returning Mr Rudd.

Shorten said he believed his decision was in the best interests of the nation and the labor party.

“I have carefully considered my position,” and emotional Mr Shorten said, 20 minutes before the 7pm ballot.

“I have now come to the view that Labor stands the best chance to defend the legacies of this government and improve the lives of millions of Australians with Kevin Rudd as leader.”

media_camera Parliament House Canberra Kevin Rudd announces he will run against Julia Gillard Picture: Tauber Andrew

If Mr Rudd is returned as leader of the party tonight it will mean Mr Shorten will have been instrumental in the removal of two Labor prime ministers.

Mr Rudd is likely to go to an August election if he is restored to the prime ministership tonight after a 7pm showdown with Julia Gillard.

Sources have confirmed that Mr Rudd would abandon the September 14 election date, and seek to go earlier – with an official election campaign likely to begin within weeks.

The sources also confirmed that if successful, Mr Rudd would promote Anthony Albanese to the deputy prime ministership, and appoint Chris Bowen as the new Treasurer.

While the Rudd camp claimed it was confident that it now had 55-60 votes in the 102 caucus, supporters of Ms Gillard claimed that she still retained the confidence of the majority of the caucus.

He said he would stand as a candidate in the ballot at 7pm tonight because of the “parlous state” of the Labor Party.

“For the nation's sake I believe it is time for this matter to be resolved,” Mr Rudd said.

Earlier Ms Gillard had laid down the challenge to Mr Rudd to have the courage to challenge her and meet the same condition, that if he loses, he should resign from Parliament.

“This is it, tonight is the night, this is it,” the PM said.

A key Rudd backer claimed the former PM could win the ballot, “there is enough signatures”, he said.

media_camera warren cartoon thursday julia gillard kevin rudd despair NEW

Claims that Bill Shorten had shifted camps have been rejected by Mr Shorten.

Mr Shorten told The Daily Telegraph the reports were wrong and he was sticking with Ms Gillard.

Is Rob Oakshott running or not?

"My position has not changed," Mr Shorten said.

A source close to Ms Gillard confirmed that the petition would be successful.

"There is a petition, it will have the required signatures, there will be a ballot tomorrow and he (Kevin Rudd) will win," the source said.

Labor MPs 'stripped of preselection' if they don't back Gillard

TRANSCRIPT OF INTERVIEW WITH DAVID SPEERS

SKY NEWS

HOST: Prime Minister, thank you for your time. Will you call a leadership ballot?

PM: Thank you David for this opportunity.

As you’ve been reporting, and others are reporting, there is apparently a petition circulating within the Labor Party to call for a leadership ballot.

I haven’t seen this petition.

Call me old fashioned, but the way in which these things are normally done is a challenger approaches the leader of the Labor Party and asks them to call a ballot for the leadership, you shake hands and then a ballot is held.

That hasn’t happened. But in these circumstances I do think it’s in the best interests of the nation – and in the best interests of the Labor Party – for this matter to be resolved.

So, whilst I haven’t been approached by anyone saying that they wish to be Prime Minister, or Labor leader, it is my intention to call a ballot for the Labor leadership at 7PM tonight.

HOST: And you will stand?

PM: Yes I most certainly will stand. I actually believe that politics, government, is about purpose.

It’s not about personalities. It’s about values and getting the big things done that the nation needs.

And even today in the midst of what has been a fair bit of hurly burly I’ve been very focused on our education reforms and improving schools for every child. That’s my focus.

HOST: Will you win this ballot?

PM: Well David, I do want to say to you because I believe politics is about purpose – not about personality – that going into this ballot tonight I think that everyone involved should accept a few conditions on the ballot, should come to understand the true significance of the ballot.

First and foremost, anybody who believes that they should be Labor leader should put themselves forward for this ballot.

This is it.

There are no more opportunities.

Tonight is the night and this is it.

Number two, because politics is not about personality, all of these issues need to be resolved tonight.

We cannot have the Government or the Labor Party go to the next election with a person leading the Labor Party and a person floating around as the potential alternate leader.

In those circumstances I believe anybody who enters the ballot tonight should do it on the following conditions: that if you win, you’re Labor leader; that if you lose, you retire from politics.

HOST: You are agreeing to do that?

PM: Absolutely.

HOST: If you lose tonight you will leave Parliament at the election?

PM: Correct.

And I think that that is the right thing to do for the nation and for the political party I lead, and I hope to lead following the ballot.

We cannot be in a circumstance where the nightly news has been as the nightly news has been for much of my prime ministership if the truth be told, where I have been in a political contest with the Leader of the Opposition, but I’ve also been in a political contest with people from my own political party.

No leader should be in that position; certainly no leader should be in that position in the run up to an election.

And so tonight, this is it, finished. I am asking my political party to endorse me as a leader and Prime Minister of purpose.

People will make their decision but having made their decision it’s over and the best way of it being over is for the person not successful to retire from politics.

HOST: As you indicate, this issue has not left you throughout this parliamentary term.

This is the third time it’s coming to a head.

Who do you blame for that? Has Kevin Rudd really been an honest broker when he says he’s not interested in challenging?

PM: Well I’ll let my caucus colleagues decide all of that and judge the history.

What I would say for myself, and I know that these things are contested and spoken about in politics, what has always driven me in politics and will continue to drive me if I receive the trust of my colleagues tonight is getting things done in accordance with Labor values for a Labor purpose.

HOST: But Prime Minister, you said this earlier on in the year. Why does it keep coming back to this?

Do you accept any responsibility for the fact that so many of your colleagues want to bring this on again?

PM: I accept responsibility for my own conduct. People need to accept responsibility for their conduct.

And so I think your questions are perhaps best put to others.

What I can certainly tell you as Prime Minister and as Labor leader is I have never been diverted from that task and achieving the big things the country needs by all of this nonsense.

But I am, as a rational politician, aware how debilitating this nonsense is for my political party, for my parliamentary colleagues, which is why I am making it a contest where I think the only decent thing for anybody to do is to say that is it, tonight is the moment for caucus to decide.

I accept that outcome so fundamentally that if I am not successful I will not run at the next election.

I ask others to accept the outcome on the same basis.

And whether it’s me or whether it’s someone else who emerges from tonight’s contest, they can go to the next election leading a united team because there is no one seeking to divert attention from Labor’s re-election campaign.

HOST: You said you have not seen this petition. Has anybody approached you to call on you to bring about a spill?

PM: No they have not and I have been wryly joking with some of my colleagues that this petition is the political equivalent of the Loch Ness monster. Everybody says that it exists but nobody has actually got the photograph of the Loch Ness monster.

HOST: And you haven’t spoken to anyone who has seen it?

PM: No I haven’t spoken to anyone who has seen it.

HOST: Do you doubt its existence?

PM: Look, David, I don’t know.

What I do know, and I don’t want to be critical of your honourable profession during the course of this interview.

What I do know is that when things get like this there are all sorts of claims and counter claims but I’ve got an obligation to the nation.

We are talking about who leads the nation.

I’m not going to let that speculation run endlessly.

I’m not going to have this Parliament, when we’ve still got business to do and big things to get done, end up being subject to media crews cannoning up and down parliamentary corridors in the hope of catching someone that they can then get half a sentence from.

That’s not the way I want to do things so let’s get it done.

HOST: Just getting back to the earlier question, how confident are you that you will still be Prime Minister this evening?

PM: Well I wouldn’t be putting myself forward unless I had a degree of confidence about the support of my parliamentary colleagues.

I certainly have very much received good support from my closest cabinet colleagues, people who are doing very good and important work for the country.

This is a pressurised time. People will make a decision. The important thing is that people keep in their mind as they walk into that room what is in the best interests of the nation, what is in the best interests of the Labor Party.

I answer those questions by saying what’s in the best interests of the nation and the Labor Party is to have a sense of values and purpose and discipline and that is why I am shaping up tonight’s ballot like that.

HOST: In a nutshell then, if this is your final pitch publicly before that caucus ballot tonight, why are you a better Prime Minister than Kevin Rudd?

PM: I will speak to caucus colleagues about the way in which caucus colleagues vote but I am happy to answer your question generally about why I have done this job and why I seek to continue to do this job.

I came into politics to make a difference.

I came into politics believing government could be about providing opportunity and it wouldn’t matter whether you came from a rich background or a poor background, you’re a migrant, you’re an indigenous Australian, you were entitled to lead a life of opportunity partnered with your own endeavour and hard work.

That’s how I’ve lived my life and that’s how I’ve brought the reforms that we’ve focussed on as a government, nothing more important than the school funding reform.

These are Labor values, Labor purpose. That’s what drives me.

I’m not interested in public accolades, I’m not interested in applause. I’m not interested in any of that personality politics. I’m interested in getting things done.

HOST: But do you think Kevin Rudd does not share those Labor values that you just articulated?

PM: Mr Rudd can speak for himself and I would not be presumptuous enough to speak for him.

HOST: But if he ends up leading Labor again tonight, do you fear for the future of the Government and the party?

PM: I’m not being drawn about hypotheticals beyond tonight’s ballot.

HOST: Well Prime Minister, we know you do have a busy few hours ahead, I appreciate your time. Thank you.

PM: Thanks David.

KEVIN RUDD TRANSCRIPT:



KEVIN RUDD: Thank you for gathering. My fellow Australians. My fellow members of the Australian Parliamentary Labor Party. Today I am announcing that I will be a candidate for the position of Leader of the Parliamentary Labor Party. I am advised that the Chair of the Parliamentary Labor Party has been collecting a petition of members, about a third in number, which requested that a meeting of the Party be held to resolve the question of the Party’s leadership. Of course, Julia’s statement of half an hour or so ago removes the need for such a petition. The truth is, many, many MP’s have requested me for a long, long time to contest the leadership of the Party because of the parlour circumstances we now face. And perhaps less politely, various Ministers have been free and frank in their public advice to me as to the desirability to contest the leadership in recent days. For the nation’s sake, I believe it’s time for this matter to be resolved. The second and more important reason for contesting the leadership is the tens and thousands of ordinary Australians, members of the Australian public who have been asking me to do this for a very long time. And it’s your voices, the voices of the Australian people; it’s those voices that have had a huge effect on me. More so than the voices I happen to hear around the corridors of this building. What literally thousands of Australians have said to me over the last year or so is that they are genuinely fearful of what Mr Abbott could do to them if he’s elected, not only elected with a massive majority, including a majority in the Senate, which he is currently on track to do.

Last time Mr Abbotts party had absolute power, they brought in work choices. People are afraid, they are very afraid, that they will try to do it again. Under a different name of course, but no one forgets work choices. Australian families are afraid of what Mr Abbott could do to penalty rates and overtime. What could happen to their jobs, what it could do to pensions.

And what i could do to the environment. And the truth is if we are all being perfectly honest about it right now is that we are on course for a catastrophic defeat, unless there is change. And so today i am saying to you the people of Australia, I’m seeking to respond to your call That I’ve heard from so many of you to do what i can to prevent Mr Abbott from becoming prime minister. There is a third reason for contesting the leadership as well. I believe that all Australians whatever their politics want a real choice at this election. A real choice. At present if you talk to them long and hard, they don’t feel as if they’ve got one. And they are frustrated that we are denying them one. They are angry that we are leaving them with little choice at all other than to vote for Mr Abbott. Australian want a real policy debate on our vision for the countries future and Mr Abbotts vision for the future of our economy and jobs, on national security, on education, on health, on climate change and how we would make these competing visions work. This has now become urgent for the future of the economy in particular. I believe that what the country needs now is strong, proven, national, economic leadership to deal with a formidable new challenge Australia now faces with the end of the decade long china resources boom and its impact on Australian jobs and living standards into the future.

Given that our economic relationship with China alone now accounts for nearly 10% of the total size of our economy. This is a massive new challenge.

Diversification and productivity are no longer important for Australia, they are essential for Australia, if we are to protect our jobs and maintain our living standards.

Mr Abbott’s alternative economic policy is to copy the British conservatives – launch a national slash and burn, austerity drive and drive the economy into recession as happened in Britain. A double dip and almost a triple dip recession in the United Kingdom.

I therefore believe, with all my heart that I owe it to my country to offer the Australian people a viable alternative, for them to choose the future they want for themselves. Their jobs and their families - because these big economic questions will affect us all and sooner than we think.

It is time for proven national economic leadership.

These are the three core reasons why I have changed my position on the leadership. The request that I have received from my colleagues, my belief that the Australian people deserve a competitive choice at the next election and my fear that if we don’t offer it Mr Abbott will win by the biggest landslide since Federation. Unleash an assault on the people who rely upon us the Australian Labor Party and those of us in the Australian Labor government to protect them.

I do not seek to fudge the fact that I have changed my position, I’ve simply given you the reasons today that I have done so.

I accept full responsibility for my previous statements on the leadership and I’ll leave it to you , the good people of Australia to judge whether I have made the right call.

If I win this ballot, every effort I have in my being will be dedicated to uniting the Australian Labor Party. No retributions, no pay backs, none of that stuff. It’s pointless, it’s old politics.

The values which drive our movement are those things which should unite us. For those ministerial colleagues and friends who choose to serve and who want to serve, my general principle will be to embrace them in serving. For those who believe they cannot serve, I wish them well, thank them for their service and welcome the opportunity to renew the government. If I lose, of course, I would announce that I would not contest the next election, and I thank Julia for making the same commitment.

Friends, my fellow Australians, I love this country of ours and I’m doing what I honestly believe to be in the best interest of Australia. And to my friends in the media, you’ve heard me say this a million times, I have an hour and 40 minutes to speak to a number of friends in the Parliamentary Labor Party about what will happen here in this room at 7pm, so I’ve gotta zip, thank you.

PHIL JACOB: As Kevin Rudd supporters gather in Canberra to push for the re-election of their one-time leader , punters have now also backed him in to lead at the next election.

"Rudd has been heavily backed this morning from $3 into $1.85 to be Prime Minister at the next election while Julia Gillard has drifted from $1.33 to $1.85," Centrebet's Michael Felgate said.

"Money is a very good indication in politics and with news breaking that a petition is underway to oust Julia Gillard it looks like it could be right again.'

"We now have Rudd and Gillard $1.85 to be Prime Minister at the next election so it will be interesting to see who the punters back from here."

Sportsbet yesterday also installed Kevin Rudd as favourite, at $1.75 ahead of Prime Minister Gillard at $2.00.

"The odds are changing all the time as more money comes in, but it’s going to be a fascinating next 24 hours, that’s for sure,” Sportsbet’s Shaun Anderson said.