Dramatic new evidence to the Leveson inquiry this week is expected to unleash a "bloodbath" of bitter recriminations between police and prosecution officials arguing over failings in a series of investigations into allegations of phone hacking, computer hacking and bribery by journalists.

Julia Gillard has staved off a challenge from Kevin Rudd, winning the leadership ballot 71-31 to retain the prime ministership.

Returning officer and the member for Fowler, Chris Hayes, said there was no recount and that the mood in the party room meeting was "reasonably tense".

Mr Rudd has said that after ballot he will be working for a unified Labor team, according to Mr Hayes.

He also said that there was relief on the faces of some senators and MPs after the result and some clapping.

Mr Rudd is reported to have reacted well to the result.

"He seemed fine," Mr Hayes said.

A prominent state Liberal MP has been accused of misusing his position while campaigning against a wind farm that is to be built next to his property in western Victoria.

Kevin Rudd’s advisers were all smiles as they arrived at the Rudd family home this morning.

It was a marked difference from yesterday when there was still uncertainty as to whether Mr Rudd would be challenging Prime Minister Julia Gillard’s leadership

The decision to depose Rudd without destroying him showed decent restraint in the bloody context of those days.

from Crikey ......

Crikey Canberra correspondent Bernard Keane writes:

MASTERCARD, NEWS CORP, NEWS INTERNATIONAL, RUPERT MURDOCH, VISA, WIKILEAKS

Kevin Rudd's wife Therese Rein joined the Labor leadership war today, urging "ordinary people" to back her husband in the campaign against Julia Gillard.

Mr Rudd consistently outpolls Ms Gillard as preferred Labor leader but has been savagely criticised by Labor ministers who worked closely with him as prime minister for having a chaotic and dysfunctional leadership style.

As if noting a change of seasons, many Israelis are talking about a possible war come summer, or later this year, with an air of inevitability born of years of festering conflict that has periodically flared up into full-blown hostilities. The prospect of devastating counter-strikes and possible mass casualties seems to be taken in stride, seen as a lesser evil than facing a nuclear-armed Iran.

picture by Gus Leonisky (2011)