Historic moment but at what cost

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JULIA Gillard finally became the nation’s first popularly elected female Prime Minister yesterday. And it only cost $10 billion – and a ministry for one of the two country independents who delivered Labor into the first national minority government in 70 years.

A coalition of Labor, conservative country independents and the Greens will govern Australia in a fragile alliance that angry Coalition MPs were privately warning “won’t last a year”.

At 3pm, Labor finally won the support of NSW independents Rob Oakeshott and Tony Windsor, giving it a 76-74 majority, after Queensland independent Bob Katter backed the Liberals earlier in the day.

Ms Gillard made a dash to Governor-General Quentin Bryce to inform her she had the numbers to form a government.

At a press conference after the decision was announced, Ms Gillard said: “The events of the past fortnight shows us that our democracy is very strong indeed.

“If we fail in this solemn responsibility, we will be judged harshly by the Australian people at the next election.”

But both independents warned that an election could come at any time, saying they reserved the right to withdraw their support and bring the Government down if it failed in its duty.

“This is not a mandate for any government,” Mr Oakeshott said. “Nor is it an endorsement of anyone, any philosophy, any brand or any campaign.

“It will be a cracker of a Parliament. It will be ugly, but it will be beautiful in its ugliness.”

However, they also revealed their decision was based largely on self survival. Mr Oakeshott admitted that it was a case of “who was less likely to knife us first” and call an early poll to regain a majority.

During one of the most dramatic days in the country’s political history, Mr Katter’s decision plunged the ranks of Labor MPs into fear when he split from his fellow independents and gave his support to Tony Abbott, claiming he could not forgive Labor for axing Kevin Rudd.

But the extent of the political bribes and promises from Labor to return it to power were revealed when Ms Gillard addressed the nation at 4.45pm to announce an unprecedented regional funding package, which would divert money from city schools, hospitals and infrastructure to the bush.

As part of a $10 billion regional economic development package, the next round of $1.8 billion in health funding would be quarantined for regional areas, as would $500 million in school infrastructure funding.

Ms Gillard also found an additional $800 million for general projects for the bush as well as the $6 billion regional infrastructure fund promised in the campaign.

She also promised uniform pricing for broadband so rural and regional areas had parity with the city.

On broader national issues, a tax summit will be convened by June 2011 to put the Henry tax review to public debate.

An uneasy Mr Oakeshott admitted he had been offered a ministry after denying it last week. He said he was going home to consider it with his family.

Ms Gillard said Mr Oakeshott was invited to serve as a minister to drive regional reform. It was likely a new ministry would be created, to prevent a caucus revolt over taking a spot away from a Labor member.

Both independents recognised there would be widespread anger, even from their electorates.

“I’m comfortable with this, I can live with it,” said Mr Windsor, who added he could not look past Labor’s broadband policy, desperately needed in the bush.

“I make this plea to country people who don’t agree with the Labor Party: It’s not about philosophy, this is about using the political system to advantage the people we represent.”

Mr Oakeshott said he had been “thoroughly unimpressed” with the major parties and encouraged MPs to break ranks and stand up for their communities.

While he admitted that his decision to back Labor would be unpopular, he added: “It will also deliver a regional package never seen before, a turbo-charged regional Australia. You might not like the decision but you can’t knock us for going through a methodical process.

“This will not be a weak Parliament. It will be a strong Parliament.”

Ms Gillard now has to choose her ministry and return to the Governor-General before being sworn in.

Mr Abbott said it had been a “disappointing day, a disappointing result”.

But he vowed not to frivolously attempt to bring the Government down with no-confidence motions – unless it was warranted.

“I can hope [Labor] can provide a better government than it has in the past three years,” he said after calling Ms Gillard to congratulate her.

“I hope that it can rediscover the soul that has been so lacking.”