Labor has built up momentum, but is it now going to learn in the nastiest possible way what can happen when you skid at speed?

If you were watching Lateline last Friday night, you would have seen a spectacular debate between Joe Hockey and Julia Gillard.

Joe was hammering away when Gillard suddenly jabbed back with: “Why do you act like you’re the Opposition and when we put out a proposal you knock, why don’t you actually put out some proposals that would make a difference for Australian working families?”

It was an interesting point — maybe not just a throwaway line. Since Rudd took over the Labor leadership, it’s looked as if it’s been the Opposition that has been setting the agenda — or at least doing better at cutting through to voters.

One of Howard’s strengths has been his ability to set the agenda. That seems to have diminished in recent months. His troops seem to have a brief to do little else but shoot on sight when it comes to Labor policies. None of them has Howard’s courage under fire. The Government has looked rattled and demoralised and lacking discipline.

Suddenly, IR shots seem to have hit their mark. If you believe today’s reports, it’s jihad on Julia. “Labor frontbenchers have turned on Julia Gillard, accusing her of policy and presentation failures on industrial relations that have damaged Labor’s links with employers and business,” The Australian says.

The SMH goes further: “A business backlash has forced Labor into retreat on its union-friendly industrial relations policy and it will devise a plan to allow big companies to keep flexible deals struck with individual workers under Howard Government laws.”

This is about much more than Gillard, though. Labor has built up momentum. Is it now going to learn in the nastiest possible way what can happen when you skid at speed? Kevin Rudd could suffer serious bruising — both external and internal.

If the IR policy has to change, the Government’s accusations that Rudd is inexperienced will have been proved true. As will that “growing discontent in caucus about a lack of consultation and decision-making by a small group of ministers close to the leader” that Crikey reported last week.

It might be jihad on Julia today, but it could turn into the beginning of Rudd’s rout. Lucky there’ll be a Budget along to distract us all next week.