AAP
September 2, 2011, 1:28 am
.The knives are out
Julia Gillard's leadership is under serious scrutiny within the Labor party after her Malaysian Solution failure.
Prime Minister Julia Gillard's leadership is under renewed scrutiny, as she grapples with the problem of where to send asylum seekers, now that Malaysia is not an option.
The Labor Party was buzzing with talk about possible replacements for Ms Gillard, including Kevin Rudd and Stephen Smith, Fairfax Media reported on Friday.
The speculation comes after Wednesday's High Court decision to scuttle the Malaysia asylum seeker swap deal.
"In the longer term, it will be pretty damaging for her," a minister who had previously dismissed any suggestion of a leadership change before the next election told Fairfax.
"The idea of replacing her is no longer pie in the sky," he added.
"It's a big blow because she invested so much in this. It was her policy, rather than (Immigration Minister Chris) Bowen's."
News Limited also reported talk of Ms Gillard being replaced.
Labor figures who supported Ms Gillard when she replaced Mr Rudd as prime minister just 14 months ago were discussing a plan to return Mr Rudd to the leadership, with Mr Smith as his deputy and treasurer, the News Limited report said.
"This is about authority and whether she can assert her authority because she hasn't got it now," one senior figure said.
Meanwhile, The Australian says Labor powerbrokers are talking about a ministerial reshuffle or a shake-up of the prime minister's office to shore up her leadership rather than a leadership change.
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