Prime Minister Julia Gillard and Queensland Premier Anna Bligh embarassed by leaked letters showing them praising dirt digger Robert Hough prior to his defection

JULIA Gillard and Anna Bligh have been embarrassed by leaked letters showing them praising the Labor figure behind the explosive dirt file on their party.

Robert Hough

JULIA Gillard and Anna Bligh have been embarrassed by leaked letters showing them praising the Labor figure behind an explosive dirt file on their party just as he was switching sides to start digging up sex and scandal on the ALP for the LNP.

The Prime Minister was last night dragged into the deepening scandal as a letter revealed she lauded federal candidate Robert Hough for his "contribution to the Labor cause" right when he was plotting his defection.

The revelations came as a letter written by the Premier before the election revealed she was hoping to work with Mr Hough as a new member of the re-elected Gillard Government.

In a signed letter written on September 20 letter last year, obtained by The Courier-Mail, Ms Gillard "warmly" thanked Mr Hough for his "courage and conviction" during his unsuccessful tilt against federal Liberal MP Steve Ciobo.

Ms Gillard's office yesterday explained the bad timing of the letter, saying it was just a standard post-poll thank you sent to candidates.

But the letter came after a disillusioned Mr Hough publicly attacked Ms Gillard's leadership coup.