Iemma to become NSW Premier next week

Bob Carr

SYDNEY - Morris Iemma will be sworn in as premier of New South Wales next week after Police Minister Carl Scully yesterday pulled out of the contest for the Labour Party leadership.

Mr Iemma, 44, will be the only nominee when state Labour MPs meet on Tuesday to elect a successor to Premier Bob Carr, who will retire on Wednesday.

Currently the health minister, Mr Iemma has been in parliament since 1991 and is married with four children.

He said yesterday it was "a great honour and a privilege" to be preparing to take over the premiership and thanked Mr Scully for withdrawing from the contest.

"I'd like to pay tribute to Carl, who has been a friend and continues to be a friend and a colleague," the MP for the Sydney seat of Lakemba said.

Mr Scully announced this afternoon he was withdrawing from the leadership contest because it was clear he did not have the numbers to win.

Transport Minister John Watkins also announced he had decided not to run.

The NSW Labour Party's Sussex St head office and parliamentary powerbrokers Joe Tripodi and Eddie Obeid strongly backed Mr Iemma's candidacy for the Labour leadership.

Mr Iemma declined to outline his vision for the state, saying it was not appropriate to do so before Tuesday.

"Bob Carr remains the premier of NSW and we owe him the respect that his position demands," he said.

When pressed, Mr Iemma said health and transport would be among his top priorities and that he had plans for the unpopular vendor duty on the sale of investment properties.

"That is one of the issues that matter to NSW and I have some ideas about the vendor tax and the way forward," he said.

"Obviously I've got a lot of plans and a lot of ideas and I want to share those with you on Tuesday."

Mr Scully said Mr Iemma would have his 100 per cent loyalty and support.

"You can be assured of my full commitment to helping Morris Iemma become a successful premier and to win the election in 2007," he said. "I'm now his greatest fan."

Although he had promised to run in the caucus ballot even if the only vote he had was his own, Mr Scully said he had formed the view today that he did not have the support of his colleagues.

"This is not about Carl Scully, this is about the Labour Party and it's about their opinion," he said.

His withdrawal avoids a contest which was already starting to become bitter, with Mr Scully yesterday accusing ALP officials of dirty tricks.

Mr Iemma refused to say if he would replace Deputy Premier Andrew Refshauge with Michael Costa in the treasury portfolio.

He said he would be holding discussions with Dr Refshauge at the weekend.

Earlier yesterday, Dr Refshauge denied his position as deputy premier could be challenged by Mr Watkins or by Education Minister Carmel Tebbutt.

"John Watkins and Carmel Tebbutt have both rung me today to say that there is no challenge on," he said.

Only the state Labour conference has the power to remove a deputy party leader between state elections.

State Labour secretary Mark Arbib today denied the party machine was attempting to bully MPs into supporting Mr Iemma.

"Any suggestion the people are somehow being machined or somehow led on in terms of their vote is just ridiculous," Mr Arbib said.

- AAP