NSW Labor placed under administration

THE NSW Labor Party has been placed under the administration of the ALP national executive in a bid to end corruption and limit union influence.

Prime Minister Kevin Rudd and NSW Labor boss Sam Dastyari secured the agreement, aimed at improving the party's image after damning revelations about former MPs' conduct came to light during hearings at the state's corruption watchdog.

News Ltd reports that Mr Dastyari will be handed absolute power by the Prime Minister and the national executive to begin the reforms.

They include a policy of zero-tolerance under which MPs will be expelled if they are investigated for corruption.

The administrative committee of NSW Labor is expected to be sacked.

Presently 80 per cent of the NSW administration is comprised of union officials.

This will be changed under the reforms and Mr Rudd and Mr Dastyari are seeking to have 50 per cent of the new administration made up from rank-and-file members.

"We need to not only clean it up, we need to look like we are cleaning it up," a senior NSW federal MP told News Ltd.

"It's a courageous and necessary move."

Under the move, property developers will be prohibited from seeking preselection for the party at state and federal levels, News Ltd reports.

Unions could be angered by the plan, but Mr Rudd told News Ltd he "had a gutful of this stuff,"

"Labor party members have had a gutful of this and so has the nation," he told News Ltd.

"It must now be fundamentally changed."

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