Rudd presses opposition leader over disputed e-mail

Australian prime minister Kevin Rudd yesterday demanded opposition leader Malcolm Turnbull resign if he failed to produce an …

Australian prime minister Kevin Rudd yesterday demanded opposition leader Malcolm Turnbull resign if he failed to produce an e-mail at the heart of allegations that Mr Rudd misled parliament.

The e-mail relates to accusations Mr Rudd sought special government treatment for a friend under a scheme to help struggling businesses find finance during the global financial crisis.

The opposition has demanded Mr Rudd and treasurer Wayne Swan quit over the affair.

The controversy comes at the mid-point of Mr Rudd’s three-year term in office, just as the government is struggling to drive legislation through a hostile upper house of parliament and amid speculation that Mr Rudd might want an early election.

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“If when parliament resumes in 24 hours, Mr Turnbull fails to produce this e-mail, this e-mail upon which his entire case against the government is based, for authentication, he has no alternative but to stand in the parliament, apologise and to resign,” Mr Rudd said. “These are most serious matters.” The e-mail allegedly came from Mr Rudd’s office, but the government says it has failed to locate the document on its computers and on Saturday called in police to investigate. Mr Turnbull has denied he has a copy. Yesterday he dismissed Mr Rudd’s demand as a “trick”, and said the opposition would co-operate with the police inquiry, adding that the government clearly had questions to answer.

The row stems from Mr Rudd’s friendship with a Queensland car dealer and accusations that he asked treasury officials to help the man’s company gain access to a government programme.

It is the first such storm to engulf Mr Rudd personally since he won office in late 2007, and comes two weeks after the defence minister resigned over accusations that his office helped arrange meetings for his brother with defence officials.

However, Mr Rudd remains well ahead in opinion polls, despite the slowing economy and political setbacks as he battles to push his programme, including plans for an emissions trading scheme, through an opposition-dominated Senate.

Mr Rudd would normally face an election in late 2010, but may have a trigger to go in December this year or early 2010 if the Senate continues to reject his carbon trade plan. – (Reuters)