Corruption findings hit Labor where it hurts

By ABC's Barrie Cassidy

Photo: The media will be on red alert for the Prime Minister's drive to Government House this weekend. (AAP: Alan Porritt)

Kevin Rudd hasn't personally been damaged by the ICAC corruption findings, but they almost guarantee that his election campaign will lose crucial seats in New South Wales, writes Barrie Cassidy.

Tucked away on page six of Thursday's Herald Sun in Melbourne were six paragraphs, a single column, reporting that Kevin Rudd was "sickened" by corruption within his own party.

While the findings from the largest corruption hearing in NSW's history got blanket coverage in Sydney and in the national mastheads, it didn't feature on or near the front pages in any of the state-based papers.

But that's as good as the news got for the Rudd Government.

The fact that the story didn't travel well beyond the NSW borders was small comfort given the impact it will have, reviving memories of a tarnished Labor brand in a state rich with marginal seats.

The report is a stinker in a crucial part of the country, and the only hope for Labor is that an imminent election campaign encourages voters to focus on other issues.

It came as a gift to Tony Abbott who cleverly revived memories of the successful "guilty party" slogan that hurt premier Joan Kirner in Victoria more than 20 years ago. The themed advertisements will no doubt follow.

The commission's brief was narrow, but the findings dragged in a considerable network of "mates" in politics and business. And it served to shine a light on an ugly Labor culture that goes way beyond even those named in the report.

Whatever the polls suggest about a status quo result in NSW, the ICAC findings almost guarantee that the Government will lose crucial seats.

Two matters, however, temper the backlash. Firstly, the state Labor government was trounced at the last election, and even though that was more about incompetence than corruption, the electorate would have got a little of the built-up anger out of its system.

Secondly, all of the allegations were reported as they unfolded during the inquiry. There was nothing new.

The Opposition will struggle to implicate Kevin Rudd in the scandal. He got on the front foot announcing the intervention into the affairs of the NSW branch. And neither can it be said that he is Prime Minister only because of the support of the tainted elements of the NSW party. In the end, they came to him to lead, not the other way around.

The charge made against Rudd would have hurt Julia Gillard but the "non-aligned" Rudd is on firmer ground.

The challenge now for the Opposition is to narrowcast the corruption issue, target it specifically to NSW without wasting money and resources elsewhere.

The challenge for the Government is to change the conversation, and a focus on cost-of-living issues and job security would be a good start.

Shadow treasurer Joe Hockey has hammered the rise in cigarette taxes as a direct hit on the incomes of the battlers. To the extent that low-income earners use proportionately far more of their income on cigarettes than wealthier smokers, then he is right.

But it's also true that making cigarettes more expensive will cause some smokers to quit. It sounds like shameless spin, and it's not what motivated the Government to act, but it's true nevertheless.

And now this weekend, for the first time, the media will be on red alert for the Prime Minister's drive to Government House.

The sticking point has always been Rudd's desire to attend the G20 summit in Russia on September 5 and 6.

The hardheads in the party though know his travels are rarely a plus no matter how he views them. They can see his attendance at the G20 being labelled as the ultimate "ego trip." Far better to make a virtue of his non-attendance by declaring he is keeping his feet firmly on Australian soil, dealing with issues at home.

Whether Rudd sees it that way will be clear for all to see on Sunday morning.

Insiders will be ready for the live crosses.

Barrie Cassidy is the presenter of ABC programs Insiders and Offsiders. View his full profile here

Corruption findings hit Labor where it hurts - The Drum (Australian Broadcasting Corporation)