Labor resources to be diverted to marginal Sydney seats in bid to win Federal Election LABOR campaign resources will be dramatically redirected to Sydney seats previously thought impossible for Labor to win, following the return of Kevin Rudd to the leadership. The Daily Telegraph understands that, just two weeks after warning Sydney marginal seat MPs that they were unlikely to hold their seats and were on their own financially, Labor party officials have reversed the decision and will now campaign to regain the seats they won in 2007 and then lost in 2010. Kevin Rudd ignites Labor war in NSW The Daily Telegraph understands internal Labor polling over the past week has shown wild swings of 15-16 per cent being recorded in western Sydney seats against Labor in past months had almost entirely been reversed since last Wednesday's leadership coup. Buoyed by the apparent Rudd-led resurgence, the party plans to pour resources into two seats, Macquarie in Sydney's outer west, and Bennelong - the seat it won from John Howard in 2007 but then lost again three years later under Julia Gillard's leadership. NSW party boss Sam Dastyari told The Daily Telegraph Mr Rudd was a "game changer" for Sydney and NSW seats: "We are no longer planning to hold seats, we think we can win seats." He said seats such as Lindsay, Greenway, Reid, Parramatta, Barton and Banks - which Labor had given up hope of retaining - were now back in the race: "We have pushed back and will campaign in seats that frankly we thought were no longer in play. We think there is an opportunity to win back the seats we won in 2007 but then lost in 2010. Mr Dastyari two weeks ago sent a warning to marginal seat MPs - those on less than 4-5 per cent - that they could not be given resources because of the need to save seats held by ministers higher up the party totem pole. That has all changed, with resources now being put into seats Labor hopes not just to hold, but to win back from the Coalition. "Obviously all funding decisions are always under review," he said. When an event as big as this has happened, you review everything. We are not planning just to hold seats, we want to win seats. I can say - what was right at the time is no longer right at the time. Liberal Party officials have privately admitted the election will be much tighter under Mr Rudd but claimed it would not change the focus of the opposition. However, it will also review its key seat strategy, and redirect resources from seats it believes it may no longer be able to win, such as Barton in Sydney's southwest, held by the new Treasurer Chris Bowen. It is believed the Coalition is soon to push the button on a multi-million advertising campaign targeting Mr Rudd.