PM holds firm on Gonski and leadership

HOLDOUT Coalition states are citing Labor leadership instability as a reason not to commit to Julia Gillard's education reforms.

Julia Gillard

HOLDOUT Coalition states are citing Labor leadership instability as a further reason not to commit to Julia Gillard's education reforms and have accused the Prime Minister of using the Gonski program to defend her "desperate leadership".

A defiant Ms Gillard declared she would lead Labor to the next election and speculation about her future was "wasted breath" as she redoubled her attacks on conservative premiers yet to sign on to the education deal, accusing them of putting politics ahead of school kids.

But leadership speculation continued to bury the government's positive political message for a third consecutive day, minister after minister emerging publicly to defend Ms Gillard after some Victorian Labor MPs became convinced they would lose their seats under her leadership.

"Now, as we go about talking about improving Australian education, I'm well aware that there's plenty of rumour-mongering and plenty of speculation," Ms Gillard said in Brisbane.

"A breath spent on that speculation or rumour-mongering is a breath that isn't spent on putting the case for improving our schools for our kids."

As senior Labor figures such as Australian Workers Union national secretary Paul Howes and Queensland Right faction and AWU powerbroker Bill Ludwig declared their strong backing for Ms Gillard, a senior Labor source expressed concern the party's poor polling could deteriorate further if she remained in the leadership.

Victorian powerbroker Bill Shorten has moved to quash speculation that his support for the Prime Minister was wavering and that he was under pressure to ask her to step down.

Ms Gillard used a visit to a primary school north of Brisbane to pressure Queensland Premier Campbell Newman to sign on to her government's Gonski education deal.

The move is part of a blitz by the Prime Minister this week to clinch agreement from holdout states in time for her June 30 deadline for the Gonski reforms.

She accused Mr Newman of "playing politics rather than putting the kids of Queensland first".

"What I'd want to see is Premier Newman stop playing Tony Abbott's politics and put the kids of Queensland first, and that means signing up for $3.8bn of extra resources and our plan for school improvement so we can lift standards in Queensland schools," Ms Gillard said.

"It would be a tragedy for Queensland if Queenslanders could look across the border and see schools in NSW that were better resourced and getting better results because Premier Newman had put the politics first."

But the Queensland Education Minister, John-Paul Langbroek, fired back. He said it was clear Ms Gillard was "a desperate Prime Minister, hanging on to the hope that the Gonski brand would save her leadership".

As cabinet ministers backed Ms Gillard, Mr Rudd appeared with Victorian MP and parliamentary secretary for the arts Michael Danby in his Griffith electorate.

A senior Labor source said that Mr Rudd still lacked the numbers in the caucus to topple Ms Gillard and he had ruled out mounting a challenge.

But a Labor source called on senior members of the party to act. The source said unless there was a change, senior members of the caucus were preparing to "take everyone off a cliff with them".

The source said there was a view in the party that the government's position could not get worse.

"Yes it can get worse," the source said.

A string of senior ministers, including Transport Minister Anthony Albanese, Health Minister Tanya Plibersek, Trade Minister Craig Emerson, Communications Minister Stephen Conroy and Attorney-General Mark Dreyfus declared Ms Gillard would lead Labor to the election.

But retiring Labor senator Trish Crossin, who was deposed by Ms Gillard's "captain's pick" of former Olympian Nova Peris, said Mr Rudd was a popular leader who would give the government its best chance of re-election.

Tony Abbott said Australians were sick of the Labor soap opera. "Enough is enough," the Opposition Leader said.