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Edition: U.S. Article Comments (0) Email Print Reprints Full Focus Best of the week Our top pictures from the past week. Full Article Read North Korea "readies missiles" | 1:52am EST Online bargain-hunting spreads beyond Cyber Monday 27 Nov 2010 China says chairman of North Korea parliament to visit 27 Nov 2010 Europe set to bail out Ireland as debt crisis grows 27 Nov 2010 Q+A: Why are U.S.-South Korea drills so sensitive? 27 Nov 2010 Discussed 103 Obama’s 2012 re-election prospects uncertain: poll 63 South Korea names security adviser as defense minister 53 North Korea shells South Korean island Watched Bejeweled bra exposed in NY Thu, Oct 21 2010 Row over vote orgasm video Fri, Nov 19 2010 Anti-North Korea protests in Seoul Sat, Nov 27 2010 Green Business Investors hope climate deal on track Investors in "green" assets hope that upcoming U.N. climate talks in Mexico will salvage a deal to cut greenhouse gas emissions in 2011, and in the meantime widen and simplify existing carbon markets. Full Article Copenhagen Accord: Climate guide or too weak? Japan: Extending Kyoto "meaningless" Australia's Labor suffers state election reverse Tweet This Share on LinkedIn Share on Facebook By Rob Taylor CANBERRA (Reuters) - Australia's ruling Labor Party was in fresh political turmoil Sunday after elections in the second-most populous state looked to have delivered another hung parliament, or worse, a surprise conservative opposition... Related News Australia's Gillard ends troubled year on a high Fri, Nov 26 2010 PRESS DIGEST-Australian General News - Nov 25 Wed, Nov 24 2010 UPDATE 2-Australia govt gets support for broadband plan Wed, Nov 24 2010 Australia commits to rare earths supply to Japan Tue, Nov 23 2010 UPDATE 1-Australia's Gillard faces test over bank, telco laws Mon, Nov 15 2010 Analysis & Opinion Why a Republican House will make Obama a better president Third time unlucky for BHP Related Topics World » Australia » By Rob Taylor CANBERRA | Sat Nov 27, 2010 9:56pm EST CANBERRA (Reuters) - Australia's ruling Labor Party was in fresh political turmoil Sunday after elections in the second-most populous state looked to have delivered another hung parliament, or worse, a surprise conservative opposition victory. Prime Minister Julia Gillard's home state of Victoria was facing days in political limbo as vote counting continued in the wake of state elections that left neither side with a majority, but with the conservatives looking slightly stronger. The vote was a "refreshing rain of renewal," state conservative leader Ted Baillieu said, after balloting was marred by heavy rain and flash flooding, while the outcome will give heart also to Gillard's opponents nationally. "I think this has been a very tough night for Labor, let's just call a spade a spade. We should have a long hard look at whether we have got some deeper problems we need to deal with. I think wise reflections on this are necessary," said senior Labor lawmaker and Foreign Minister Kevin Rudd. Gillard's Labor won a second term in August after dead-heat national elections, but only with support from three independents and a Green lawmaker, leading to concern her government might be unstable and not survive a three-year term. The Victorian poll was fought over issues generally thought to be Labor strongpoints, such as health and education, as well as policing, and road and rail improvements. The state, which accounts for a quarter of the national economy with a population of 5.5 million, is also a manufacturing base, and Labor's setback could now make Gillard's job of delivering promised economic reforms like carbon pricing and health funding more difficult. State Labor governments had agreed to hand a third of consumption tax income to the national government to improve health services, and that deal could be in trouble if a conservative government emerges over coming days, as Australian Broadcasting Corp. was predicting. A deeply unpopular Labor state government is also likely to lose power in New South Wales state next year, while the party's brand is also in trouble in the resource and agricultural powerhouse of Queensland state. In Victoria, Labor suffered a swing of about 6 percent to the conservatives, and an ABC election computer had the conservatives picking up 13 seats and with 550,000 pre-poll votes still to be counted. The lower house has 88 seats. Rudd, speaking to local television, said state issues did not necessarily reflect voter concern about national issues, like Labor's promise of a 30 percent coal and iron ore profits tax, and construction of a new $35 billion fast broadband, which will be the country's biggest and riskiest infrastructure project. "I think what is clear from events in Victoria, clear from also what we see in terms of reactions against the state Labor government here in New South Wales, is that people very much making up their mind on state based issues," he said. Labor had held power for 11 years in the state that is home to global mining giant and mining tax critic BHP Billiton, as well as the company most affected by the broadband rollout, Telstra Corp., which is Australia's dominant phone company. Gillard had hoped to finish the year on a high after last week winning parliament's backing for a key reform pledge and boosting her chances of serving a full term in office. 1 2 Next World Australia 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. 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