Labor dismisses talk of leadership change

Prime Minister of Australia Julia Gillard. Photo / NZ Herald

A senior cabinet minister has dismissed as chatter suggestions Labor MPs have given Prime Minister Julia Gillard six to 12 months to regain her popularity with the electorate.

The first major opinion poll following the release of Labor's carbon pricing scheme shows the prime minister is on the nose with 62 per cent of voters.

Support for Ms Gillard and the government has slumped to record lows in the Nielsen poll, published in Fairfax newspapers on Monday, while the coalition has its biggest-ever two-party preferred lead - 61-39 per cent - over Labour in nearly 40 years.

Pollster John Stirton says the poll's results are "diabolical" for the government.

But Ms Gillard remains steadfast against suggestions she should move out of the way.

"It's a marathon, not a sprint," she told ABC Radio in Adelaide, adding the next election was more than two years away.

Climate Change Minister Greg Combet said the prime minister and the government were up to the task of selling their carbon pricing scheme despite fewer than four out of 10 voters supporting the measure.

He dismissed reports Labor MPs had given Ms Gillard six to 12 months to improve her popularity, saying it was chatter not worthy of a response.

Ms Gillard says she is determined to plough on with her campaign to convince Australians about the merits of carbon pricing.

"I've well and truly got the courage of my convictions and I will be out there providing the leadership necessary as we tackle this big reform, she said.

More voters than not - 53 per cent - believe they will be worse off under the scheme despite the government's promise that nine out of 10 households will receive some compensation to cushion price impacts.

The government is hoping a US$12 million (NZ$14.2 million) television ad campaign, which went to air for the first time on Sunday, and a US$13 million public information campaign will sway voters to support its scheme.

Communications Minister Stephen Conroy cited backing for a flood levy as evidence the government could turn around voter support.

"In the early stages of debate it was polling badly, but the government showed determination, passed it through the parliament and now you don't hear a thing about it," he said.

Opposition Leader Tony Abbott said the poll reflected voter anger over a carbon tax.

"The problem is not Julia Gillard, the problem is the policy," he told reporters on the Gold Coast.

Mr Abbott, who holds an 11 point lead over Ms Gillard as preferred prime minister, said there was only one way Labour could fix its ailing popularity.

"I know a lot of Labor people are thinking they've got to dump the leader, well probably they've got to dump the policy," he said.

Independent MP Rob Oakeshott is not backing away from his support for Ms Gillard's minority government.

When asked whether he had backed the right horse following the 2010 election, he told ABC Radio: "That is what it is for the next three years."

- AAP