Julia Gillard confident of forming new govt; approaches independents

With none of the major parties securing simple majority in the cliffhanger Australian general election, prime minister Julia Gillard today sought to assure countrymen that she would deliver "stable and effective" government, amid hectic efforts to cobble up a coalition.

Describing Australia as "one of the strongest democracies" in the world, 48-year-old Gillard, whose ruling Labour was dealt a crippling blow in key provinces of New South Wales and Queensland, said she was still hopeful of forming a government with support from independents.

Neither Labour nor the opposition Coalition led by 52-year-old Tony Abbott looks like getting the 76 seats in the 150-member House of Representatives needed to form government in its own right, but analysts believe that Gillard's party might get closer to the magic figure.

Australian Labour Party (ALP) national secretary Karl Bitar said it "potentially" can win 75 seats "but only if all the cards fall the right way". 

When the counting wrapped up last night before its resumption today, Labour and the Coalition each had won 71 seats while independents got three and Greens bagged one. Four other seats were too close to call.

Gillard, the first woman prime minister of Australia, said it was now clear that the Labour had won the popular vote and this should be weighed carefully by independents who would now help decide which party governed.

Voters had clearly sent a message calling for a change in the way politics in Australia was conducted, Gillard, who had entered into negotiations with independents to form government, said while vowing to consider reforms to Parliament.

"That is the conclusion. The Australian people are talking about changing politics," she told reporters. 

"I've heard the voice of the Australian people. We are clearly at a historic moment," she said as she moved to assure voters that "as prime minister I will continue to provide stable and effective government."

As both Gillard, a former industrial lawyer, and Abbott began negotiating with independents to form a minority government, the prime minister claimed her party has the "best prospect" of offering stability.

But Abbott said the "savage swing" against Labour meant it had "lost its legitimacy" to govern and the public now expected change.

Gillard, however, said she has held talks with all three rural independents; and Andrew Wilkie, who has a chance to win the Tasmanian seat of Denison from Labour.

She said she also held face-to-face discussions with Greens leader Bob Brown and Adam Bandt, the party's newly-elected member for the seat of Melbourne. The negotiations would take place "in good faith" with "propriety, integrity and diligence".

Gillard said she would be assisted by deputy prime minister Wayne Swan in seeking an agreement.

She believed the rise in the vote for the Greens and independents reflected a desire for fundamental changes to the way politics was conducted. "They probably want to see more openness."

In a history-making day yesterday, a national primary vote swing of more than 5 per cent against Labour left the two-month-old Prime Minister Gillard fighting to hold onto her leadership. She had come to power after the ouster of Kevin Rudd.

Labour MPs were swept aside by swings of more than 9% against them in former prime minister Rudd's home state of Queensland and of over 6 per cent in New South Wales (NSW).
The Rockhampton-based seat of Capricornia is the only Labour
win in regional Queensland.

Declaring that the Coalition was "back in business", Abbott said "it was almost inconceivable" that Labour could provide competent and stable government as it was "chronically divided and dysfunctional".

"It is historically unprecedented for a first-term government to receive the kind of rebuff that the Rudd-Gillard government received yesterday," he said. "I think that the public expect a change of government as a result of yesterday's verdict."

Abbott said he had also talked with the three independents and Greens leader, Senator Brown; and had left messages with other key players. 

Figures from the Australian Electoral Commission (AEC) show about 5.65% of ballots cast yesterday would not count because they were filled out incorrectly or left blank. 

Only 3.95% were informal at the 2007 election, media reports said, adding counting will resume today after 10.8 million votes were tallied last night.

Informal votes are a feature of Australia's compulsory voting system. Voters face a $20 fine if they don't exercise their franchise.