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Australia's Rudd faces crisis as defense chief quits

(China Daily)
Updated: 2009-06-05 09:56

CANBERRA: Australian Prime Minister Kevin Rudd faced his first political crisis since taking office when his defense minister resigned Thursday over travel and lobbying activities involving family and friends.

The development is a blow to Rudd, as outgoing Defense Minister Joel Fitzgibbon was a factional supporter and senior minister from the most populous New South Wales state, a key to winning national elections.

While the controversy surrounding Fitzgibbon, who was portrayed as politically clumsy, had led to a series of damaging headlines, analyst Nick Economou said his resignation would allow Rudd to draw a line under the affair and so keep open the option of an early election in late 2009 or early 2010.

"I suspect Rudd is thinking seriously about an early election. They needed to clear the decks, and Fitzgibbon had to go," said Economou, from Melbourne's Monash University.

"There was more and more coming out about Fitzgibbon, which was hurting him and hurting the government."

The resignation gives Rudd the option of reshuffling his Cabinet, although Rudd told Australian television his ministry was functioning "exceptionally well" and he "would not be foreshadowing any major changes".

Possible replacements include former union leader Greg Combet, currently a junior climate change minister, another former union boss Bill Shorten, or veteran minister John Faulkner, currently Rudd's Special Minister of State.

As defense minister, Fitzgibbon oversaw the withdrawal of Australian combat forces from Iraq, and the development of a new defense strategy for Australia for the next 20 years, including plans to buy new ships, planes and submarines.

But Fitzgibbon has been targeted by the conservative opposition since early 2009 for failing to properly disclose trips to China, taken before he was a minister, paid for by a Chinese-born family friend with close ties to Beijing.

Fitzgibbon earlier this week told parliament he also failed to disclose the cost of a night in a hotel, paid for by health insurance company NIB Holdings, run by his brother.

But his resignation came after it was disclosed Fitzgibbon's ministerial office was involved in meetings between his brother's company and his own defence department.

"To protect the integrity of the government, I have decided to resign as a member of the executive, effective immediately," Fitzgibbon said in his letter of resignation.

Reuters