Prime Minister Tony Abbott 's chief of staff has come under fire yet again for her controversial decision to ban Labor appointments from retaining their positions on government boards . The move by Peta Credlin has been derided by the business community as 'unrealistic ' because nearly all of the directors on government boards were employed during Labor 's six-years in government . Speaking at an Australian Institute of Company Directors lunch , chairman of CSIRO , Simon McKeon confirmed the ban on Labor appointees to government boards , claiming he will lose his position when his contract expires in June . Scroll down for video . Prime Minister Tony Abbott 's chief of staff , Peta Credlin ( pictured ) has come under fire yet again for her controversial decision to ban Labor appointments from retaining their positions on government boards . 'Labor was in power for six years . Virtually everybody currently serving on the boards of government bodies was either appointed or reappointed while Labor was in power , ' Mr McKeon said . 'If Abbott persists with his policy , there will be a full clean out of directorships . ' 'The reality is that , yes , there is a rule that no one on the board of a federal government agency has been reappointed , ' Mr McKeon said . 'It 's an issue that many people are finding worrying . ' Mr McKeon , who is also chairman of AMP , said the policy was at odds with what the AICD and Business Council of Australia subscribed to as good governance . 'My understanding is that there are many people like me who are disappointed with this quite brutal rule , ' he said . ' I have n't come across anyone actually in government , let alone in private enterprise , who says ` oh this is a wonderfully good initiative ' . ' Takeovers Panel member and Telstra director Dr Nora Scheinkestel said the panel 's size had been significantly reduced as members had not been reappointed when their terms came up . In February , it was revealed that Peta Creddlin was at loggerheads with top Cabinet Ministers over her attempts to micro manage Julie Bishop and steal Joe Hockey 's thunder . 'The reality is we lost a lot of people who brought great expertise , major institutional investors , investment bankers etc , and I think it 's to the detriment of how the panel functions . ' Mr McKeon said Australia needed excellent people on these challenging boards . 'The last thing we want to be doing is to one kick them off after three years , let alone send a very strong message saying this is the way it ought to be . ' Dr Nora Scheinkestel , a director of Telstra , said she was strongly against the rule , as was chairman of BlueScope Steel Graham Kraehe . McKeon is a former Australian of the Year and is coming up for reappointment in following months , like many of his colleagues . Many of them are part of the boards for humanitarian or charitable reasons . 'My understanding is that there are many people like me who are disappointed with this quite brutal rule , ' he said . But Abbott 's devotion to Credlin is unmoving . The prime minister has defended her time and time again , calling her 'the fiercest political warrior I 've ever worked with ' In February , it was revealed that Peta Creddlin was at loggerheads with top Cabinet Ministers over her attempts to micro manage Julie Bishop and steal Joe Hockey 's thunder . Foreign Minister Julie Bishop is understood to have been involved in a feud with Credlin after her extensive attempt to micro manage the government included controlling minister 's media appearances . Meanwhile , Treasurer Joe Hockey 's grievances with Credlin are also understood to have stemmed from her tendency to over-step her mark and take control . At a small celebration following the release of the party 's first budget , Credlin undermined the Treasurer by having the first word - leading the toast , and ultimately taking ownership of an accomplishment that should have been Hockey 's to savour . But Abbott 's devotion to Credlin is unmoving . The prime minister has defended her time and time again , calling her 'the fiercest political warrior I 've ever worked with ' . He is known to have told associates that raised complaints against her : 'you would n't be here if it was n't for Peta ' . Meanwhile , Tony Abbott 's future remains uncertain with some disgruntled MPs claiming it is only a matter of time before the leadership issue comes to a head .
Peta Credlin has banned Labor appointees from keeping their jobs . It was confirmed at an Australian Institute of Company Directors lunch . It has been met with outrage from the Coalition and business community . Many of the appointees do the job for humanitarian reasons . Tony Abbott is a staunch supporter of Credlin calling her a 'political warrior '