John Della Bosca’s return to the New South Wales Cabinet from exile ends a difficult three months under the threat of criminal charges over allegations that he and his wife, federal MP Belinda Neal, bullied staff at a Central Coast night club and then pressured witnesses to change their statements.

This week saw big problems emerge for the Labor Party in New South Wales and Western Australia, while federally the Nationals shrank even further with the loss of Lyne. In the Senate, Steve Fielding voted down the luxury car tax increase, while in the United States, Sarah Palin has garnered an immediate and positive reaction.

The New South Wales Premier has revealed his new cabinet, declaring that the “soap opera is over”. As tipped, John Della Bosca has returned, along with right faction powerbroker Joe Tripodi. Frank Sartor and Michael Costa have been dumped, while Reba Meagher withdrew from contention last night before being pushed out.

The prosecuting authorities yesterday found that there was insufficient evidence to support any criminal charges against the Member for Robertson and her husband, senior New South Wales Labor MP John Della Bosca, over an altercation at the NSW Central Coast restaurant Iguanas on June 6.

This is an unacceptable situation that penetrates to a pivotal issue in politics: Rudd’s ability to win enough goodwill from state governments to make viable his economic and social reform agenda. The time for a national industrial relations system arrived some years ago. It has been championed by everyone from Gough Whitlam to John Howard and, in 2007, Rudd and Gillard.