PM prepares for new-look cabinet

Prime Minister John Howard has cleared the decks for a major ministerial shake-up this week following the departure of three ministers.

Fisheries and Conservation Minister Ian Macdonald revealed on Sunday that he had been dumped from the frontbench by Mr Howard, as Family and Community Services Minister Kay Patterson simultaneously announced her resignation.

Their announcements followed the decision by Defence Minister Robert Hill last week to retire from politics.

Mr Howard told Senator Macdonald last Thursday that his place in the ministry would go to someone else, but the Queensland Liberal senator said he would contest the next election and continue to represent the state for another six-year term.

The departures mean two current ministers will be elevated to cabinet, paving the way for the promotion of three backbenchers to the ministry.

Senator Macdonald, the only Liberal senator with a rural portfolio, could be replaced by Northern Territory senator Nigel Scullion.

Other candidates include Victorian MPs Andrew Robb and Sharman Stone along with NSW MP, lawyer, investment banker and multi-millionaire former businessman Malcolm Turnbull.

Mr Howard is expected to announce his new look ministry when he addresses the National Press Club on Wednesday.

Finance Minister Nick Minchin had been strongly tipped to win the defence portfolio, but he played down any move from his current job.

"I am very happy in the finance portfolio," he told reporters.

"My preference would be to remain in the finance portfolio.

"There's a lot of unfinished business in that portfolio particularly the tasks of selling our remaining shares in Telstra, establishing the Future Fund (and) masterminding another budget with Peter Costello.

"So I will be very happy to stay where I am."

Health Minister Tony Abbott also has been rumoured to be a contender for the defence job, with Education Minister Brendan Nelson, a doctor, suggested as a natural fit for Mr Abbott's portfolio.

Minister for the Ageing Julie Bishop is tipped for promotion to Senator Patterson's portfolio.

Foreign Minister Alexander Downer ruled himself out of any imminent shift, saying the only promotion from foreign affairs would be treasurer but his understanding was Treasurer Peter Costello was not leaving.

Acting opposition leader Jenny Macklin told reporters in Melbourne it was time Mr Howard made his leadership intentions clear to the Australian public.

"It's high time John Howard took the Australian people into his confidence and told them whether he would be prime minister at the next election," she said.

"He should stop pussy-footing around and come clean and tell the Australian people whether he is going to stay on as prime minister."

Mr Howard said he was grateful for the loyalty and dedication Senator Macdonald had brought to government.

"Ian Macdonald brought energy and skill to both of his portfolios," Mr Howard said in a statement.

"He especially understood the complexity of forestry policy.

"His advice to me, a little over a year ago, in relation to the Tasmanian forests was both balanced and prescient."

Mr Howard said Senator Macdonald had been a vigorous advocate for the people of Queensland and a hard worker for the Liberal cause in the state.

Mr Howard also paid tribute to Senator Patterson, a past lecturer in behavioural science, for her work in community services and her former portfolio of health and ageing.

"She has worked diligently and successfully to promote better family and social policy," he said.

"The professional background which she brought to the two portfolios she served in was of particular value."

Opposition work and family spokesman Tanya Plibersek said Senator Patterson was interested and motivated in her portfolio but was not supported by Mr Costello and Mr Howard.

"Kay Patterson did her best as family and community services minister and in her time worked to alleviate some of the mounting problems in childcare," she said in a statement.

"Senator Patterson was respected by many in the industry as a minister who was interested and motivated.

"Unfortunately, her aims were without the support of the prime minister or treasurer."

Ms Plibersek said the childcare crisis had continued to escalate under the Howard government with many parents unable to find places and those who could, finding it too expensive to continue working.

"I would like to wish Senator Patterson the best for the future," she said.