Friday, 5 September 2008

Iemma sacks Costa, reshuffle imminent

Gone: NSW Treasurer Michael Costa has been sacked

New South Wales Premier Morris Iemma has sacked his unpopular Treasurer Michael Costa in the wake of the state's failed electricity privatisation push.

Mr Iemma will reshuffle his Cabinet today after sacking Mr Costa overnight in response to enormous pressure from his backbench, Cabinet and Labor Party members and luminaries.

Mr Costa is scheduled to hold a media conference about his future at 10:00am (AEST).

The outcome of the reshuffle will be announced after a Labor Caucus meeting later today.

Former education minister Carmel Tebbutt will be confirmed as the new Deputy Premier after the parliamentary Left faction endorsed her yesterday.

The Left faction also voted to elevate Granville MP David Borger to the ministry.

Nathan Rees, Verity Firth and Kristina Keneally are all expected to receive a promotion into more senior portfolios, and John Della Bosca has been promised a return to the frontbench after being cleared of wrongdoing in the Iguanas nightclub scandal.

Reba Meagher is expected to be a loser in the reshuffle after a series of incidents in her health portfolio.


Carmel Tebbutt named NSW deputy premier
Ms Tebbutt left the frontbench 18 months ago for family reasons
Labor MP Carmel Tebbutt has been chosen as the next deputy premier of New South Wales.

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