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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared UK police seek information on newspaper eavesdropping 05 Sep 2010 Obama launches big week on economy 1:35am EDT Firm can't fire man for 1.8 cent theft 03 Sep 2010 What might make the Fed flinch? 05 Sep 2010 God did not create the universe, says Hawking 02 Sep 2010 German party mistakenly hands out porn pens to kids 03 Sep 2010 Guatemala landslides kill dozens, toll seen rising 1:10am EDT Eight policemen dead in Pakistan suicide attack 05 Sep 2010 Islamist threat to Germany is growing say police 05 Sep 2010 Europe Factors-Shares set to add to last week's rally 2:21am EDT Strange and unusual 26 Aug 2010 Analysis: Southeast Asia drinks sector sparkles 02 Sep 2010 God did not create the universe, says Hawking 02 Sep 2010 Obama to propose permanent research tax credit 05 Sep 2010 German party mistakenly hands out porn pens to kids 03 Sep 2010 Oracle offered job to ex-HP CEO Hurd says source 05 Sep 2010 Flomax linked to cataract surgery complications 19 May 2009 UK wants GSK's Avandia pulled as EU reviews safety 05 Sep 2010 Muslim cleric calls for beheading of Dutch politician 03 Sep 2010 Nineteen killed in suicide bombing in Pakistan 3:22am EDT NYSE and AMEX quotes delayed by at least 20 minutes. NASDAQ delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here. Australia's Gillard expected to form new government Tweet This Share on LinkedIn Share on Facebook Related News Swing-vote Australia MP hints at possible Labor deal Fri, Sep 3 2010 Return to power within grasp for Australia's PM Thu, Sep 2 2010 Scenarios: Will Australia's Gillard win a second term? Thu, Sep 2 2010 Australia's Gillard inches closer to power Thu, Sep 2 2010 Australia Greens to announce deal with ruling Labor Tue, Aug 31 2010 Analysis & Opinion Aussie election stalemate leaves miners in dark Related Topics World » Australia » Julia Gillard » Tony Abbott » Australia's Prime Minister Julia Gillard speaks at a news conference in Melbourne August 22, 2010. Credit: Reuters/Mick Tsikas By Rob Taylor CANBERRA | Mon Sep 6, 2010 3:26am EDT CANBERRA (Reuters) - Australian Prime Minister Julia Gillard is expected to form a new minority government on Tuesday with the backing of three kingmaker independents, ending two weeks of uncertainty. Independent Tony Windsor said the impasse should end on Tuesday morning, but there was still a risk the independent MPs could split, delivering a deadlock of 75 votes apiece in the 150-seat lower house and the prospect of another election. "People may be leaning one way, but they may have to come back the other way to get some stability into the system," Windsor told national radio on Monday before last-minute talks with rival leaders at Canberra's parliament house. Labor's Gillard and conservative opposition leader Tony Abbott have been desperately wooing the independents for their support for a minority government since August 21 elections delivered the country's first hung parliament since World War Two. Several newspapers on Monday said unnamed conservatives were expecting Gillard to win over at least two independents to form a minority government holding 76 seats. Bookmakers are also tipping a Gillard Labor government. Gillard currently has 74 seats to Abbott's 73 after a fourth independent last week sided with Labor, but Abbott could still form a government if the three uncommitted independents back him. Labor has promised a controversial mining profits tax and a $38 billion broadband project if it wins, as well a carbon price to curb one of the world's highest per-capita levels of emissions. The conservatives oppose all three policies. "They are pretty significant issues with significant amounts of money wrapped up in all three of those policies, so I think a lot more certainty on the government side and those policy fronts will be welcomed by business leaders," said Stephen Halmarick, Head of Investment Markets Research with Colonial First State. AUSTRALIANS WANT FRESH ELECTION An Essential Media poll on Monday showed 52 percent of Australians now wanted another election, regardless of which party the independents decided to back, underscoring expectations that any new government will struggle with such a thin majority. Seventy percent of respondents believed there would be fresh elections within a year, the survey found. Australia's economy recorded strong growth in the last quarter and financial markets have largely been unruffled by the political gridlock. Standard & Poor's on Monday reaffirmed its AAA/A-1+ foreign and local currency sovereign credit ratings for Australia, with a stable outlook. "The ratings on Australia reflect the country's ample fiscal and monetary policy flexibility, economic resilience, public policy stability and its sound financial sector," Standard & Poor's credit analyst Kyran Curry said. Despite providing a large stimulus of almost 5 percent of GDP over 2009 and 2010, the government's fiscal position was stronger than most other AAA countries, with the deficit likely to peak at a modest 3.2 percent of GDP in 2010. Independent Rob Oakeshott said he could change his mind about which of the two major parties to back in a minority government if the outcome was tied at 75 seats apiece. He also said he was disappointed at conservative opposition to some parliamentary reforms sought by the kingmakers. "There is a national interest issue in question about how we have a stable government over the next three years," he said. Betting agencies were tipping one of the three, stetson-wearing outback MP Bob Katter, to side with Abbott. Katter last week gave Gillard and Abbott a "wish list" of 20 priorities that could cement his support, ruling out emissions trade and the 30 percent tax on coal and iron ore miners. But Katter also hinted that the mining tax, brokered by Gillard with Rio Tinto, BHP Billiton and Xstrata, was not a deal breaker. (Editing by Nick Macfie) World Australia Julia Gillard Tony Abbott Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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