Latham departure leaves Labor in danger of divisive battle

SYDNEY - The Opposition Labor Party appears to be heading for a damaging leadership battle a day after the resignation of Mark Latham.

Latham, 43, who led the party to a crushing defeat at the federal election in October, is suffering from pancreatitis, a potentially life-threatening inflammation of the pancreas.

Kim Beazley, 56, a former defence minister and party leader, has thrown his hat into the ring but support is building for other candidates, suggesting a divisive leadership struggle.

Labor, with three leaders in as many years, has been riven by factional fighting, much to the delight of the conservative coalition Government of Prime Minister John Howard, who is enjoying unprecedented public support.

Among those who might challenge for the leadership are foreign affairs spokesman and former diplomat Kevin Rudd, rising star and health spokeswoman Julia Gillard.

Other contenders are shadow industry minister Stephen Smith and backbencher Lindsay Tanner.

At least two are expected to announce that they will enter the contest in the next few days.

Beazley's supporters argue that as a former leader he would be a safe pair of hands with the ability to unite Labor's warring factions.

"The inexperience of [Mark Latham] was a factor at the last election and hence why I believe that Kim Beazley would be an asset," said shadow attorney-general Robert McClelland. "People would have faith in his capacities to lead the country."

But other Labor figures believe that Beazley, under whose leadership the party suffered electoral defeat against Howard in 1998 and 2001, has had his day.

"Dusting Kim off for a third try is not the way to go," said Harry Quick, a Labor MP from Tasmania.

"Kim's had his two terms. We need a new ship, a new skipper and a new course."

Senior party figures have admitted that the leadership issue has made Labor a laughing stock in the eyes of the public, who are weary of the seemingly endless intrigue and infighting.

Even if Beazley wins a clear mandate, Labor's woes might not stop there. Like Latham, he has been dogged with health problems, including a running battle with his weight.