Thumping in NSW has fired warning at Rob Oakeshott, Julia Gillard | thetelegraph.com.au

ANY Federal Labor MP who doesn't think the thumping NSW election result has implications for Julia Gillard is kidding themselves.

Gillard's strategy of demonising the Liberal Party as a bunch of loonies who don't believe in climate change has been hit for six.

Barry O'Farrell is a moderate Liberal who has just given the anti-carbon tax campaign credibility.

People in NSW will look to their new Premier and realise that being concerned about the carbon tax does not put them in the wing-nut membership of the Far Right.

It has just become harder, not easier, for Gillard to run the line that the Liberal Party has been taken over by extremists.