Labor loses ground

The Australian Labor Government has taken another poll hit amid continuing damage over the bungled home insulation programme.

The Sun Herald/Taverner poll, taken before Peter Garrett's demotion for his role in the insulation debacle, shows the coalition level with Labor on a two-party-preferred basis.

Kevin Rudd remains the preferred prime minister at 53 per cent compared with 40 per cent for Opposition leader Tony Abbott.

Rudd has handed responsibility for a new insulation programme to Greg Combet.

Garrett retains his other portfolios.