Paluzzano 1. Talk was wild in the ranks of the Labor Party last night in Western Sydney that the Paluzzano rorts affair could spread to other Labor MPs. Karyn Paluzzano got busted for rorting her allowances, signing dodgy staff pay claim forms and lying about it to the Independent Commission Against Corruption. She resigned as an MP last night. The ALP is in damage control in Western Sydney. Rudd should be worried.

Paluzzano 2. Fresh from Eric Roozendaal’s lotteries debacle, Western Sydney and Blue Mountains ALP members are furious with the NSW Treasurer. As secretary of the party in 2003, Roozendaal hand-picked Karyn Paluzzano and put her into the seat without a rank and file ballot. Local members warned him at the time that Paluzzano and her husband Robert were not stable and were a risk to the election and to the Party. They’re only surprised it’s taken this long for the move to blow up in Roozendaal’s face. At the time he passed over Mark Greenhill, who has gone on to become a councillor in the Blue Mountains, and Cathy O’Toole who has gone on to become a lawyer. The local branches feel vindicated that Paluzanno’s now gone and are warning Roozendaal to stay clear of the preselection this time.