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Edition: U.S. Article Comments (2) Save Email Print Reprints Most Popular Most Shared UPDATE 3-Oracle hires former HP's Hurd, Phillips leaves 06 Sep 2010 Oracle hires former HP's Mark Hurd 2:17am EDT Firm can't fire man for 1.8 cent theft 03 Sep 2010 Connaught on brink of administration - BBC 06 Sep 2010 Strong yuan would hurt China: economists 12:43am EDT Storm Hermine slams into far northeastern Mexico 06 Sep 2010 Nokia bets on new smartphones for recovery 06 Sep 2010 Obama kicks off campaign with infrastructure plan | Video 06 Sep 2010 German party mistakenly hands out porn pens to kids 03 Sep 2010 God did not create the universe, says Hawking 02 Sep 2010 UPDATE 3-Oracle hires former HP's Hurd, Phillips leaves 06 Sep 2010 German party mistakenly hands out porn pens to kids 03 Sep 2010 Best of the week 03 Sep 2010 Oracle hires former HP's Mark Hurd 2:17am EDT Earthquake shakes New Zealand 06 Sep 2010 Obama kicks off campaign with infrastructure plan | Video 06 Sep 2010 Storm Hermine slams into far northeastern Mexico 06 Sep 2010 Men have more "senior moments" of memory loss than women 06 Sep 2010 U.S. defense industry girding for predicted slump 03 Sep 2010 Editor's choice 06 Sep 2010 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 PM Gillard to form second-term govt Tweet This Share on LinkedIn Share on Facebook Related News Instant View: Australian PM Gillard retains power 2:10am EDT Australia PM Gillard in tenuous grip on power 2:47am EDT Analysis & Opinion Aussie election stalemate leaves miners in dark Uneducate people Related Topics World » COP15 » 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 James Grubel CANBERRA | Tue Sep 7, 2010 2:51am EDT CANBERRA (Reuters) - Australian Prime Minister Julia Gillard secured a second term in office Tuesday, winning the support of independent lawmakers to form a minority Labor government after losing her majority at elections last month. Gillard's success sent a shudder through mining shares and the Australian dollar, with her government vowing to press ahead with a new mining tax and work toward a scheme that would force major polluters to pay for their carbon emissions. With four of the five cross-bench MPs in the new parliament now backing Gillard, she has a majority of just one seat and a tenuous grip on power. "I will reserve the right to represent my constituency on any vote in the parliament and also reserve the right to move a no-confidence motion in the government as I see fit," said rural independent Tony Windsor in announcing he would back Labor. The four have all made clear they will support a stable Labor government and back its budgets, but they pointedly do not guarantee their support for Labor policies, reserving the right to vote independently on each one. "This parliament is going to be different and no one party has dominance over the executive or the parliament," independent lawmaker Rob Oakeshott told reporters at parliament house after announcing the decision alongside colleague Windsor. "That is just the reality of the way we are going to do business over the next three years." But with Labor in minority in the lower house and the Greens to control the balance of power in the upper house Senate from July 2011, Gillard will need all her negotiating skills to not just pass policy, but ensure Labor survives its three-year term. "It's really anyone's guess how long the government will last and how effective it will be and I don't think you can really pre-judge the outcome," said Brian Redican, senior economist at Macuarie Bank. Gillard and conservative leader Tony Abbott had been desperately wooing three undecided independents since dead-heat August 21 elections and Tuesday agreed to reforms demanded by the trio, including brakes on executive power over parliament. MAJOR POLICIES UP FOR REVIEWW Major policies will now be up for review, including Labor's mining tax and a $38 billion national broadband project proposed by Labor. Climate change policy will also be reviewed. Global heavyweights BHP Billiton, Rio Tinto and Xstrata have already signed-up to the 30 percent tax due by 2012. Shares in BHP Billiton and Rio Tinto extended losses Tuesday after the independents backed Labor. BHP was down 0.5 percent at 0534 GMT compared with flat before the independents backed Labor, while Rio was down 1.1 percent compared with down 0.4 percent earlier. Fortescue was down 0.6 percent. But the final shape of Labor's resource tax and its headline rate may rise due to pressure from the Greens party which supports the tax but has argued for a higher rate. Such a move could see Labor's deal with the miners broken and reignite a bitter battle in which miners earlier warned that around A$20 billion in resource investment could be at risk. Australia avoided recession during the financial crisis due in large part to its booming minerals exports to China. The other major Labor policies seem to be on more solid ground, with Windsor saying Labor's fiber-optic broadband network was the critical factor in his decision. "There's an enormous opportunity for regional Australians to engage with the infrastructure of this century and ... I thought (that) was too good an opportunity to miss," said Windsor. "You do it once, you do it right and you do it with fiber." Windsor also said Labor's pledge to move toward a carbon price, postponed by previous Labor prime minister Kevin Rudd, was another reason for his support. "It's obvious to me that regional Australia would be a major beneficiary of a lot of the renewable energy sources. I see enormous opportunities where others fear the whole climate change debate," he said. (Writing by Michael Perry; Editing by Jonathan Thatcher) World COP15 Julia Gillard Tony Abbott Comments See All Comments (2) | Post Comment Sep 07, 2010 1:06am EDT Hold up it hasnt been “agonizing”, its rather refreshing. I just hope they do this every election just to demonstrate that society holds itself togethor rather then the government being the glue. outsideopinion Report As Abusive Sep 07, 2010 1:46am EDT PRIME NEWS. A new Federal Election is lurking around the corner. One of the most confusing thing was that one Independent MP is making a press conference more than ONE hour before the other two MP’s. Something is fundamentally wrong with Australian democracy! I would guess that this election shall trigger a Republic Referendum very soon. NEWSTIME2010 Report As Abusive See All Comments (2) 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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