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Gillard announces slightly changed cabinet -

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Julia Gillard has left Kevin Rudd on the backbench, but promised him a ministry if he and Labor
both win at the next election.


LEIGH SALES, PRESENTER: The Prime Minister has left her predecessor on the backbench, but promised
him a ministry after the election.

Julia Gillard unveiled her Cabinet today, making just a few changes in response to last week's
dramatic events. But there's no room for Kevin Rudd - at least for now.

The former prime minister was interested in a frontbench role, but he's been overlooked.

And the new leader is putting the Government on an election footing, campaigning today at a crowded
shopping mall.

Political reporter Hayden Cooper.

HAYDEN COOPER, REPORTER: Australian politics has been hit with a game-changer and the new Prime
Minister's intentions have been made abundantly clear: it's straight into the shopping malls.

Voters in Queanbeyan were lining up to wish her well. The only hitch came from an angry local

LOCAL TOBACCONIST: This government has shut down family businesses! Come on! Follow me! I'll show
you! Come on, follow!

HAYDEN COOPER: Election fever is in the air and the shape of the Gillard Cabinet has now been
settled, it's only a minor renovation.

JULIA GILLARD, PRIME MINISTER: You need a steady hand, hard work and methodical work.

HAYDEN COOPER: Simon Crean has been judged as the man with those credentials. He takes on Julia
Gillard's old portfolios of Employment, Education and Workplace Relations. The Foreign Affairs
Minister picks up trade as well.

JULIA GILLARD: It is best to have as limited a reshuffle as possible to keep the maximum stability
amongst the team and to keep our focus on the work that Australians need the Government to be

HAYDEN COOPER: Even Lindsay Tanner stays where he is, despite his retirement at the election.

TONY ABBOTT, OPPOSITION LEADER: There's nothing new at all here.

HAYDEN COOPER: Tony Abbott's targeting the economics.

TONY ABBOTT: While the Coalition has a plan to get Labor's debt and deficit under control, Labor
doesn't even have a plan for a Finance minister. ... It's the same people with the same policies
producing the same problems for our country.

HAYDEN COOPER: At The Lodge, the former prime minister is considering his next move. For him,
there's no place in the Cabinet, at least not before the election.

JULIA GILLARD: If the Government is re-elected, I will be very delighted to welcome Kevin Rudd into
the Cabinet in a senior position.

JOURNALIST (to Kevin Rudd): Do you feel betrayed by Julia Gillard?

HAYDEN COOPER: Mr Rudd's response is diplomatic; he says he respects the decision and will now take
a break with his family.

JULIA GILLARD: There is nothing about this period of time that is easy or happy for Kevin Rudd.

HAYDEN COOPER: Julia Gillard's been careful to avoid promoting her factional backers. Bill Shorten
was one of the axemen who crept up on the Prime Minister. He's explained his role in the coup for
the first time.

BILL SHORTEN, GOVERNMENT FRONTBENCHER: It is without a doubt, I suspect, for every one of those
caucus members, including myself, the single hardest decision that we've ever made in politics. It
wasn't done lightly. I concede it was done quickly, and I reckon there's - and I can understand a
fair amount of shock, but it wasn't done on the basis of an opinion poll.

BARNABY JOYCE, NATIONALS SENATE LEADER: This was an act of political bastardry, bullying in the
playground par excellence, and you are making excuses for it.

HAYDEN COOPER: Brutal though the change was, the Government will take heart from the public
reaction to Julia Gillard's sudden rise. Polling has placed her out in front of Tony Abbott. It
only heightens expectations of an election sooner rather than later.

Hayden Cooper, Lateline.