We’ve had quite a few debates here about the Labor leadership. While there are plenty of issues, there is one that, at this point in the cycle, trumps all the others. Of the two serious contenders, who is more likely to save Australia from the disaster of an Abbott-led coalition government? The answer to this question is so clear-cut that I find it impossible to believe anyone would dispute it: Julia Gillard has almost no chance of victory at this point, while Kevin Rudd has a chance. There’s certainly room for debate about how good Rudd’s chances are, but none, I think, as regards Gillard’s. And, whatever the stylistic differences, in substantive terms Gillard’s agenda is the one she inherited from Rudd.

The question now is whether we will have another three years to implement that agenda, or whether we have a Newman-style slash and burn assault on the public sector, the environment, science, women’s rights and, of course, the working class. The only thing likely to stop that is an immediate change of leadership.

As last year drew to a close, it seemed quite possible that the Gillard government could be re-elected. The polls were going the right way, the reality of the carbon price had discredited the apocalyptic scare campaign of the Opposition, and the various real or alleged scandals surrounding the government seemed to be fading. The carbon issue is still going the right way, but everyhing else has turned around severely since then: even before the disasters of the last week, the polls had turned bad, pointing to an uphill struggle.

Last week was bad for the government in all sorts of ways, but the Obeid hearings before ICAC were in a league of their own. I was aware of the scandal, of course, but the evidence of Obeid’s total control over the NSW Right, and therefore of the state government, still surprised me. Even more out of the blue was the involvement of two federal ministers, Conroy and Burke. While taking free accommodation from Eddie Obeid looks a lot worse in retrospect than it would have at the time, his dubious reputation goes back a long way.

It’s hard to see how Gillard can credibly promise to clean up this mess. Her long reliance on Thomson and Slipper, the role of the NSW Right in sustaining her power, and, fairly or otherwise, the old allegations about her own career, all count against her. At this point, as Bernard Keane says (h/t Nancy Wallace)

‘If only Labor had an alternative leader who was fixed in the public mind as someone profoundly at odds with Labor powerbrokers …’

Obviously, he’s talking about Kevin Rudd. While it’s late for a shift, the case has become stronger in many ways. Of the people strongly identified with the personal attacks on Rudd last year, Roxon has gone to the backbench, Conroy and Burke are now liabilities, and Swan’s failed surplus push has greatly weakened him.

A simple change of leader would not be enough. Labor needs to excise the tumour that is the NSW Right. If restored to the leadership, Rudd should immediately push for a full-scale intervention into the NSW Branch removing all the existing officials, and putting someone credible like John Faulkner in charge. The whole faction system needs to be reformed or abolished, starting with the dissolution of the NSW RIght. And those compromised by their association with Obeid, Richardson and similar agents of corruption need to be expelled or permanently removed from any positions of power.

I don’t know if it’s too late to stop the election of an Abbott government. But it’s evident that Gillard is not the right person for the job.