JULIA Gillard this morning will announce a Monday ballot for the Labor leadership, after Kevin Rudd quit as Foreign Minister in a sensational bid to wrest back the prime ministership.
Mr Rudd called a news conference at 1.20am local time in Washington to declare he could no longer serve as Foreign Minister because he did not have Ms Gillard's confidence citing attacks on him that she had not repudiated.
Mr Rudd has cancelled the rest of his overseas trip and is flying back to Brisbane to consult his family and colleagues, before making a formal announcement.
The Labor caucus numbers this week have been improving in Ms Gillard's favour, but Mr Rudd's tactic has made them more unpredictable.
Before yesterday's dramatic developments, Gillard sources put Mr Rudd's numbers at fewer than 30 in the 103-member caucus while Rudd sources said he had around 40.
Mr Rudd gave Ms Gillard no notice of his move, but he sent a letter at the same time as he stood up for his news conference.
Rudd sources said he had been contemplating what to do for some time, but made his decision yesterday.
He told journalists: ``Minister [Simon] Crean and a number of other faceless men have publicly attacked my integrity and therefore my fitness to serve as a minister in the government.
When challenged today on these attacks, Prime Minister Gillard chose not to repudiate them. I can only reluctantly conclude that she therefore shares these views.
I cannot continue to serve as Foreign Minister if I do not have Prime Minister Gillard's support.'' Mr Rudd although he has not yet formally declared his challenge sought to portray himself to colleagues as the best leader to fight Tony Abbott, saying: ``There is one overriding question for my caucus colleagues and that is, who is best placed to defeat Tony Abbott.''
Ms Gillard, in a statement three hours after Mr Rudd's announcement, praised his performance as Foreign Minister, saying he had strongly pursued Australia's interests in the world, but attacked the way in which he had quit. ``I am disappointed that the concerns Mr Rudd has publicly expressed this evening were never personally raised with me, nor did he contact me to discuss his resignation prior to his decision.''
She said she would make a further statement today at a media conference at which she will confirm the plan for a Monday ballot.
Ministers came out with guns blazing against Mr Rudd. Treasurer Wayne Swan said: ``The party has given Kevin Rudd all the opportunities in the world and he wasted them with his dysfunctional decision-making and his deeply demeaning attitude towards other people including our caucus colleagues.
``He sought to tear down the 2010 [election] campaign, deliberately risking an Abbott prime ministership, and now he undermines the government at every turn.
``For too long Kevin Rudd has been putting his own self interest ahead of the interests of the broader labour movement and the country as a whole, and that needs to stop.''
Environment Minister Tony Burke said: ``Everybody has had enough of his stealth and undermining campaign.''
Events moved fast yesterday after an online report at lunchtime said Ms Gillard was prepared to sack Mr Rudd after calling a leadership spill on Tuesday.
The Prime Minister's office denied the story, saying her plans had not changed, although some Gillard and ministerial sources said no decision had been made about tactics.
Earlier, Mr Rudd had told reporters in Washington: ``I support the Prime Minister and I intend to remain as Foreign Minister.''
The Rudd camp reacted with fury after the online report, believed to have resulted from a briefing by a senior government source.
Industry Minister Greg Combet, saying he strongly supported Ms Gillard, fuelled the situation when he said at lunchtime: ``Enough is enough _ this issue needs to be resolved in the near future.''
Mr Rudd handed over his tasks in Washington to ambassador Kim Beazley, while his work in London and Tunis where he was due to go after the US will be taken over by Foreign Affairs Department secretary Dennis Richardson.
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