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Libs leadership race down to two as Abbott wi -

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TONY JONES: The Prime Minister elect is in Canberra tonight as he prepares for tomorrow's first
meeting of his government.

The victorious Labor Leader is set to reveal the makeup of his frontbench after a caucus meeting in
the morning.

The Liberals will also meet to elect a new leader.

The race for the job of opposition leader is now down to two people but the recriminations over the
election loss continue.

From Canberra, Hayden Cooper reports.

HAYDEN COOPER: The new rulers have swept into town. Kevin Rudd and Julia Gillard are ready to name
their team and get down to business in Canberra as the first lady handled the press over in the
commercial airport.

THERESE REIN, KEVIN RUDD'S WIFE: Hi nice to meet you. Hi, I'm Therese. G'day, nice to meet you. Hi
how are you? Okay.

HAYDEN COOPER: Therese Rein was on a fact-finding mission: a new school for her youngest son.

THERESE REIN: I'm really excited about the amount of support and encouragement and I think
excitement in the community, so yeah I'm excited about that.

HAYDEN COOPER: But before anyone settles in, John Howard has thrown one final party in the Lodge.

His ministers joined him for lunch for the last time.

PHILIP RUDDOCK, LIBERAL MP: I guess it's conviviality isn't it?

HELEN COONAN, LIBERAL MP: We can thank him for all the good things he did.

TONY ABBOTT, LIBERAL MP: It's probably going to be the last supper at the lodge for quite some

HAYDEN COOPER: One that Peter Costello and Alexander Downer didn't attend.

Today the former Treasurer's father-in-law and former state Liberal came out firing over the
weekend's election annihilation, pointing the finger of blame at John Howard.

PETER COLEMAN, FORMER LIBERAL MP: The fatal flaw was egomania.

HAYDEN COOPER: And accusing him of killing Mr Costello's career.

PETER COLEMAN: There is no doubt that this man of great promise and great ability was blocked by
Howard's egomania, I don't think that can be doubted.

JOHN HOWARD, FORMER PRIME MINISTER: And as the party moves on from the Howard influence the former
prime minister's greatest supporter is shelving his own leadership ambitions.

TONY ABBOTT: This time does not suit me.

HAYDEN COOPER: Not this time, but a future one, sure.

TONY ABBOTT: Who knows what future times might hold?

REPORTER: So the baton's still in your knapsack?

TONY ABBOTT: Oh yes, absolutely right.

HAYDEN COOPER: And so it's down to two... Brendan Nelson.

BRENDAN NELSON, LIBERAL MP: I'm really looking forward to the party room meeting tomorrow.

HAYDEN COOPER: Malcolm Turnbull...

MALCOLM TURNBULL, LIBERAL MP: Well, we'll see the party room will make that decision tomorrow,

HAYDEN COOPER: And most members are coy on who they'll back.

ALEXANDER DOWNER, LIBERAL MP: That's my business. I'm in the glorious position now where I don't
have to say. I think either of them will be fine.

KEVIN ANDREWS, LIBERAL MP: I'll continue to talk to my colleagues about that and I'll cast my vote
in the privacy of the party room tomorrow.

TONY ABBOTT: It's best to let that emerge tomorrow.

HAYDEN COOPER: Julie Bishop is putting herself forward as a team builder in the deputy's job and a
counter to Julia Gillard.

JULIE BISHOP, LIBERAL MP: Well I've been a cabinet minister, the other deputies have not, I've also
been a junior minister.

HAYDEN COOPER: The contrast could not be more clear.

As the Liberals and the Nationals seek a new leader the new Labor Government is sailing into town
to take up the spoils of office.

Outgoing ministerial staff had a deadline of today to pack up their things and tomorrow the makeup
of the new ministry moving in should be revealed.

JOEL FITZGIBBON, LABOR FRONTBENCHER: Well, I've been travelling to Canberra for eleven and a half
years and this is the first time I've travelled to Canberra as a member of the government. It's a
pretty good feeling.

STEPHEN SMITH, LABOR MP: Happy to do whatever Kevin wants me to do.

HAYDEN COOPER: Watching from abroad, the UK and the US are taking notice of Kevin Rudd's plans,
especially on climate change.

GORDON BROWN, UK PRIME MINISTER: He's already said that he will press at the Bali talks for further
carbon emission reductions and I believe that his contribution to that debate is going to be very
important for the future.

HAYDEN COOPER: And also on Labor's plans to withdraw troops from Iraq.

ROBERT MCCALLUM, US AMBASSADOR: We are going to talk to Mr Rudd about the whole range of issues
that relate to Iraq and Afghanistan, no doubt.

REPORTER: Do you need Australian combat troops?

ROBERT MCCALLUM: Well, that is one of the things that we are going to be talking about with Mr

HAYDEN COOPER: The new era is set to begin.