This week was a week of number twos on a variety of fronts. In the US, Joe Biden became Barack Obama’s new sidekick, while in Australia, the minor parties in the Senate geared up to take on their new roles as second fiddles. Meanwhile, in the entertainment world, ‘Stargate Atlantis’ was cancelled and replaced by ‘Stargate Universe’.

Although he ruled out a direct challenge for the Liberal leadership, the former treasurer did not answer any questions on whether he would accept an overture to accept the leadership if Brendan Nelson quit. Mr Costello had previously indicated to colleagues that he might enter the fray if Malcolm Turnbull launched a challenge against Dr Nelson.

Wayne Swan and Kevin Rudd can no longer blame their predecessors for all of Australia’s mounting economic ills. And they know it. Whether or not the banks pass on next month’s anticipated official rates cut, you can be sure our new leaders will say that the Reserve Bank’s decision stemmed directly from their actions as brave inflation fighters.

The big news of the week, rather surprisingly, wasn’t the Olympic Games. However, the media still found time to complain about the Chinese government. On the local front, Labor managed to hang on in the Northern Territory, Federal Labor actually made a decision, and Peter Costello waited some more for his book launch.

The Government is in a dilemma. Having invested much political capital in FuelWatch, does it move heaven and earth to get it through? Or does simply blame the Opposition for not supporting the policy, and privately breathe a sigh of relief when the Senate shoots what has been widely attacked as a dog of an idea?

It is clear from the polls that voters believe Kevin Rudd promised to do something about rising petrol and grocery prices before the federal election last year. Nick Xenophon put his finger on the Government’s problem of balancing perception and reality when he said: “I just don’t think [FuelWatch is] going to do what it’s meant to do.”

Family First senator Steve Fielding has suggested that Assistant Treasurer Chris Bowen is so convinced it will work he can test it in his own home state first. But another key crossbench senator, independent Nick Xenophon, says FuelWatch’s 24-hour rule is a “dead parrot” that cannot be fixed.

The Australian: Kevin Rudd accused the Coalition of siding with big oil companies over the FuelWatch scheme today, as the Government conceded it was prepared to “listen” to key senators to secure support.
Assistant Treasurer Chris Bowen extended an olive branch to crossbench senators over FuelWatch, admitting the Government would accept legislative amendments after it became [...]

The Government needs the support of the Greens and senators Fielding and Xenophon to get its legislation through the upper house. “We’re still wanting to understand how it won’t push petrol prices … up and we also want to know how FuelWatch won’t squeeze out independents,” said Senator Fielding.

Independent Senator Nick Xenophon said today that he was now convinced the FuelWatch scheme didn’t stack up. If the Coalition decides to oppose the measure the Rudd Government will be forced to rely on Mr. Xenophon and the minor parties to get the policy through the Senate.