This could get hairy fast. As I see it there are three possibilities.Foreign Minister Kevin Rudd has announced his resignation at a press conference in Washington DC at 1.20am local time, 5.20pm AEDT.
He said he no longer had the support of the Prime Minister, Julia Gillard, and had no option but to resign.
When it comes to expressing our anger, Kevin Rudd's leaked tape highlights the glaring gender divide.
After midnight ... Kevin Rudd.
"I cannot continue to serve as foreign minister if I do not have the Prime Minister’s support and so I have decided to do the honourable thing and the honourable thing is to resign."
He said the reign of "faceless men" and their iron grip on the control of the Labor leadership must end.
He called the leadership brawl a "soap opera" and said he would not have "anything to do with it".
Mr Rudd said the "ongoing saga" was damaging the business community and "my good friend Anna Bligh" who is contesting the Queensland election.
"I feel very uncomfortable doing this from Washington rather than in Australia but I don’t feel I have a choice," Mr Rudd said.
He said he would return to Brisbane tomorrow and will consult his family and electorate before deciding what his political future is before Parliament returns on Monday.
No 'stealth attack'
"There is no way I will ever be party to a stealth attack on a sitting prime minister who was elected by the people."
He said the Prime Minister's failure to repudiate Simon Crean and other cabinet ministers' attacks on him throughout the week had been central to his decision to resign as Foreign Minister.
Mr Rudd took aim at Ms Gillard’s poor standing in the polls.
Mr Rudd said there had been some "similar factors at play" in June 2010 when he lost the prime ministership.
"It's time for some plain speaking on this," he said.
"The truth is I can only serve as foreign minister if I have the confidence of Prime Minister Gillard and her senior ministers.
'Faceless men'
"In recent days Mr [Simon] Crean and a number of other faceless men have publicly attacked my integrity and therefore my fitness to serve as a minister in the government.
"When challenged today on these attacks Prime Minister Gillard chose not to repudiate them.
"I can only reluctantly conclude that she therefore shares these views."
"There is one overriding question for my colleagues and that is who is best placed to defeat Tony Abbott," he said.
"Tony Abbott is on track to win and has been for a long time."
Sad to leave
Mr Rudd said he was sad to leave the office. It was the second time he had resigned from high office - the first as Prime Minister after the 2010 leadership coup - and that the two events shared similarities.
"The simple truth is I cannot continue to serve as foreign minister if I do not have Prime Minister Gillard's support," he said.
"I therefore believe the only honourable thing, and the only honourable course of action, is for me to resign."
Australia must be governed by the people, not party factions, Mr Rudd said.
"I promise you this - there is no way, no way, that I will ever be part of a stealth attack on a sitting prime minister elected by the people," he said.
"We all know that what happened then was wrong and it must never happen again."
Mr Rudd said he had few options in announcing his resignation overseas.
"The truth is I feel very uncomfortable doing this from Washington and not in Australia," Mr Rudd said.
"But I don't feel like I have a choice given the responsibilities over the days ahead."
Mr Rudd said the ongoing leadership speculation about the federal party was hurting Labor's prospects in the coming Queensland election.
He said the saga was bad for his friend, Queensland premier Anna Bligh.
"I believe the good people of Queensland deserve some clear space over the coming month as they make up their minds on a very important decision on the future of Queensland, my home state," he said.
Mr Rudd's daughter Jessica tweeted:
Jessica Rudd @Jess_Rudd
Effing proud of you, Dad. xxxx
22 Feb 12
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His wife Therese Rein responded: "Me too, Kevin xxxx".
Mr Rudd said he would fly out of Washington tomorrow morning and he is due to arrive home in Brisbane on Friday morning.
"Under no circumstances do I want Australia’s international reputation brought into disrepute because of this ongoing saga,’’ he said.
‘‘Therefore, Ambassador (Kim) Beazley will discharge my functions here on my behalf in Washington tomorrow and the permanent secretary of my department, Dennis Richardson, will represent me in London and in Tunis.’’
He ended the extraordinary press conference without taking questions, saying there was "much, much to do".
Abbott responds
Opposition Leader Tony Abbott was quick to respond to the unprecendented move by the Foreign Minister.
"Kevin Rudd has confirmed two things – that the faceless men are running the Labor Party and that the instability at the top of this government is damaging our country," he said.
"Kevin Rudd’s statement tonight confirms that this government is unworthy to continue in office."
Emerson to act as Foreign Minister
Craig Emerson will act as Australia's Foreign Minister.
Mr Emerson, presently the Trade Minister, will take on Foreign Affairs responsibility immediately.
But a senior Labor source said decision on a permanent replacement for Mr Rudd was not expected for some time.
The Prime Minister now must decide whether to reshuffle her front bench as anticipation builds that Mr Rudd will challenge for the top job.
This will bring matters to a head: Bligh
Premier Anna Bligh said from her campaign bus: "Well I said earlier this week that this needed to be resolved. I presume that this decision will actually bring this matter to a head. I think for the sake of the country it has to be resolved, certainly for Queensland and for this campaign it’s important.
“I note that Kevin says he understands that this whole issue has not been good for this campaign. He’s right about that. I share his views and I’m glad to see it being brought to a head."
“Kevin Rudd and I have been friends for a very long time. He’s my local federal member. He’s a great member of Parliament. I guess we’re in for some pretty interesting times ahead."
Earlier coverage: A move against Kevin Rudd next week is almost certain with Prime Minister Julia Gillard determined to resolve the leadership crisis when parliament resumes.
With the backing of her senior cabinet ministers, Ms Gillard is poised either to sack Mr Rudd from the ministry or hold a leadership ballot to expose his lack of support.
Senior sources stressed that no decision had been made but, said one: "There's movement at the station."
One backer of a ballot said there was a growing feeling that Ms Gillard would take on Mr Rudd in a leadership spill next week and "not only win, but win bloody decisively".
The Sydney Morning Herald revealed today that Ms Gillard was reserving the option of calling a leadership ballot next week but that she will bring it on only from a position of strength to resolve the crisis consuming her government.
A senior source reported that "it is still very much an option to bring it on ... No decision has been made. It's a discussion that needs to be had."
Industry and Climate Change Minister Greg Combet fuelled speculation that the leadership battle needed to come to a head.
Mr Combet told the National Press Club in Canberra that he was "frustrated" that the speculation over a leadership bid by Mr Rudd was continuing.
"Enough is enough. It is time this matter is resolved," he said.
"It is a distraction to the work of government."
He said he was a "strong supporter" of Ms Gillard.
"This issue needs to be resolved and it needs to be resolved in the near future," Mr Combet said.
The way in which it was resolved was "a judgment for the Prime Minister to make".
Another senior Gillard backer said Ms Gillard and Mr Rudd could no longer work together "in any capacity".
"The facts are that Kevin can't stay in cabinet and Julia needs to take him on in front of the caucus," the source said. "If he doesn't throw his hat in, then he will be dumped anyway."
The Gillard camp is confident that it retains the numbers to win convincingly over Mr Rudd in a ballot, with the Foreign Minister thought to have about 30 votes in the 103-strong caucus.
Mr Rudd - who is to deliver a speech in Washington, DC, on Wednesday - said that he was not challenging for the leadership and expected to remain Foreign Minister.
"Can I just say, as I've said many times before, that we have a Prime Minister; I support the Prime Minister; and I intend to remain as Foreign Minister," Mr Rudd said in response to questions about a leadership spill.
- with AAP, Daniel Flitton and Danielle Cronin
1. Rudd has done this because he is aware the speculation is killing the party and is attempting to defuse it, and he will retire to the backbench and not make a run for PM. (Unlikely)
2. Rudd challenges Gillard, and she beats him. If by a small margin, the leadership crisis in the Labor party will worsen and probably end the government, if by a large margin, Rudd will be pushed to the backbench and told to shut up. Best would be to have him retire from the party, but they can't because they lose government without him. If only there was an independent they could have kept onside to give them some breathing room. Oh, wait.
3. Rudd challenges and wins. The Labor caucus proves itself terminally stupid and Rudd stays in government till the next election, avoiding every difficult policy and being mauled by Abbott without landing a single retort, then loses comprehensively.
I wish I could say that Labor couldn't have seen this coming, couldn't have taken steps to avoid it or that this wasn't their fault, but I can't. The only reason they survived the last election is that no one in Labor was Tony Abbott. That won't save them again.
