Photo © AAP Image/Joe Castro

Julia Gillard was forced to come out fighting this morning after reports that she argued against pension rises and paid parental leave in cabinet meetings.

The leak – which, if true, would appear to come from somone close to the inner circle of the Rudd cabinet - suggests that Gillard actively opposed both moves, reportedly saying “Old people never vote for us.”

In Adelaide this morning, the PM tackled the criticism head-on. “I’m not a soft touch,” she declared. “I am going to make sure we run the ruler over every proposal and ask: 'Is this affordable?’”

Gillard denied making the comment about elderly people’s voting habits, but pointed out that with expenditure of more than $50 billion over 10 years, she needed to be satisfied that the proposals were affordable.

The leak is the third cabinet disclosure within a month, and, with Gillard declining to call in the Federal Police, speculation mounts as to the identity of the culprits. The obvious suspects would be supporters of deposed PM Kevin Rudd… but some Canberra pundits find that a bit too convenient. Could other shady figures be taking advantage of the situation by throwing a spanner in the works, framing a hapless K-Rudd in the process?

And more disturbingly for the ALP's campaign, as party loyalties give way to personal vendettas, what could the plotter(s) be planning next?