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PREMIER Morris Iemma and his 21 ministers will today decamp from Parliament for a three-month summer break, leaving the state in disrepair and his leadership in question.

A damning report into child deaths and DOCS, a police inquiry into one of his ministers, a separate investigation into Royal North Shore Hospital and now doubts about the $15 billion sale of electricity, hang over the Government like a guillotine.

Facing possibly his worst day as Premier, Mr Iemma was yesterday forced to stare down treacherous MPs and deny he was planning to throw in the towel mid-term.

His day from hell started with talk-back radio and a denial he was planning to quit.

It was followed by:

 A NSW Ombudsman's report showing an alarming rise in kids dying under care of DOCS;

 A DAMNING Coroner's report into the health system failure in the meningococcal death of 18-year- old Jehan Nassif;

 A WARNING from the business community that the Government would be in tatters if it failed to privatise the power industry;

 THREATS from unions to fight the power sell off;

 AN ONGOING police inquiry into domestic violence claims against suspended environment minister Phil Koperberg; and

 CLAIMS the Government was abusing Parliament by cancelling the last week of Parliament.

"I'll be contesting the election, the next election, as Premier," said Mr Iemma in defiance of suggestions he would retire by 2009.

"If the people will have me, I'll contest the 2015 election."

Asked what had triggered the rumours surrounding his leadership - prompted by claims by his own MPs that he had lost interest - Mr Iemma said it was "just part of the nonsense and the rubbish".

"I got elected eight months ago. We got a very good majority - a mandate from the people to get on with it," he said.

"That's what we've been doing. We've got big plans and I will be contesting the next election."

But Sydney's big end of town yesterday warned that any failure of his proposed $15 billion power sector sale would leave the Government's credibility - and Mr Iemma's - in tatters.

Last night The Daily Telegraph learned Mr Iemma was forced to again delay taking his electricity privatisation proposal to his MPs, with a special caucus meeting unlikely before next week.

A senior government source confirmed that MPs were now understandably nervous, with the Left caucus voting to oppose the sale and the Koperberg investigation creating fractures in the once united Right bloc of MPs.

Western Sydney and Central Coast/Hunter MPs were also concerned about the impact of the sale on workers in their electorates.

And if that wasn't bad enough for Mr Iemma, yesterday he was also attacked from the proponents of the sale.

"We are concerned about the attempts to derail the Premier's plan to privatise electricity in NSW," head of the NSW Business Chamber Kevin MacDonald told The Daily Telegraph.

"Those within the Government who seek to derail this policy run the risk of doing great damage to the State.

"For the sake of the long term viability of the NSW Budget, the Premier has to stare down this revolt.

"The Government must not give way on this issue - to do so would be to risk the Government's economic credibility.

"We are concerned that critical areas of government policy such as new workplace safety legislation, privatisations and further investments in infrastructure are not being implemented.

"We back the Premier on electricity privatisation.

"The best interests of the people of NSW are at stake."