Right behind the PM, declares Ludwig

VETERAN Labor Right figure Bill Ludwig has pledged full backing for Julia Gillard's prime ministership.

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VETERAN Labor Right figure Bill Ludwig has pledged full backing for Julia Gillard's prime ministership, despite indications some Labor MPs are now abandoning their leader.

Responding to news of a fracturing of the Prime Minister's support within the NSW Right, Mr Ludwig, the national president of the Australian Workers Union, said yesterday he and his union were "110 per cent" committed to Ms Gillard.

As senior ministers continued to publicly support Ms Gillard and urge colleagues to stick by their leader, mining magnate Andrew "Twiggy" Forrest added to her woes by attacking her as "a liar" who was being ignored by voters.

In February, Ms Gillard ended months of leadership speculation by easily beating former prime minister Kevin Rudd in a leadership ballot.

But concern among colleagues about her handling of the scandals surrounding sidelined Speaker Peter Slipper and Labor MP Craig Thomson, amplified by Labor plunging to a near-record low primary vote of 27 per cent in this week's Newspoll, have renewed leadership speculation.

Numerous MPs who backed Ms Gillard in February say that while they want her to succeed, they now concede she is unlikely to reconnect with voters. There are indications her supporters in the NSW Right are contemplating a return to the leadership by Mr Rudd, who led Labor to election victory in 2007 but was dumped by factional leaders in favour of Ms Gillard in June 2010.

However, Mr Ludwig, a commanding figure in the Queensland Labor Right faction, told The Australian yesterday that he, his AWU party faction and his union all backed Ms Gillard.

"She retains my support 110 per cent," he said. "And she retains the support of the union nationally."

Figures in the Victorian Right also backed the Prime Minister, conceding that while Labor was in deep trouble, MPs still held hopes the party's stocks would improve after next week's budget and the July 1 implementation of the $23-a-tonne carbon tax.

In any event, the sources said, nothing would happen over the leadership in the short term.

Another MP said the caucus retained goodwill for Ms Gillard.

"But I think people are now realising that if we can't improve our primary vote, a point will come where we have to think about our responsibilities to the future of the Labor Party and the movement," the MP said.

Mr Forrest, billionaire chairman of the Fortescue Metals Group, said uncertainty over the Labor leadership was hurting the economy. "We have a Prime Minister who's lied and we know no one is listening to," Mr Forrest told the National Press Club in Canberra. "That is dangerous for an economy, and it should be resolved as soon as possible."

Mr Forrest also took aim at Wayne Swan, saying "a three-legged dog" could oust the Treasurer from his Brisbane seat of Lilley at the next election.