STATE MPs Nathan Rees and Carmel Tebbutt will lead Labor to the 2011 election after Premier Morris Iemma mapped out his exit strategy from politics yesterday.
Senior Labor figures are predicting Mr Iemma could be gone from state politics within 12 months. [...]
As the Government descended into political paralysis, government sources revealed that a deal had been struck to allow Mr Rees to succeed Mr Iemma as a non-factional premier, rivalling the rise of former premier Neville Wran in 1976.
It would allow Ms Tebbutt to remain as deputy and appease the dominant right-wing faction, which would never have agreed to the Left controlling the two top positions.
"It would be fair to say Nathan and Carmel have been in close discussions in the past 48 hours," a senior Labor Party source said. "And Carmel will support Nathan for the leadership."
Mr Iemma was also expected to quit as Premier before the 2011 election, although sources claimed it could be hastened if the Government suffered a massive swing against it in the Ryde by-election, created by the resignation of Deputy Premier John Watkins.
"It is looking more like 2009 than 2011," said a senior minister last night.
"But a huge loss in Ryde could make his (Mr Iemma's) position untenable and force him to leave sooner."
