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Kristina Keneally rises to NSW Premier. -

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LEIGH SALES, PRESENTER: After a tumultuous week for the Liberal Party, now it's Labor's turn.

Tonight the New South Wales, Premier Nathan Rees, was rolled by his party and Kristina Keneally has
become the first female Premier of the state.

Nathan Rees says he was deposed by a treacherous right-wing Labor faction and that the new leader
will be a puppet.

John Stewart reports.

JOHN STEWART, REPORTER: Kristina Keneally emerged from tonight's Labor caucus meeting the first
female Premier of New South Wales.

KRISTINA KENEALLY, NSW PREMIER: I'm humbled by their trust in me. And I say that I'm here to work
for the people of New South Wales.

JOHN STEWART: Premier Keneally was born in America and has two sons. Before being elected to
Parliament in 2003 she was a full-time mother. Now she has the Labor Party to look after.

KRISTINA KENEALLY: Governments earn trust from the community. I intend to restore that trust.

JOHN STEWART: Those who had been plotting to get rid of Nathan Rees were now calling for peace.

FRANK SARTOR, NSW LABOR MP: I'm actually quite relieved and I'm looking forward to a really relaxed
and happy Christmas with my family. I'm actually quite relieved.

JOHN STEWART: Earlier today Nathan Rees said his 15-month leadership was undermined by a
treacherous right-wing Labor faction.

NATHAN REES, FORMER NSW PREMIER: Should I not be Premier by the end of this day, let there be no
doubt in the community's mind, no doubt, that any challenger will be a puppet of Eddie Obeid and
Joe Tripodi.

JOHN STEWART: Tonight Premier Keneally denied she will be controlled by right-wing powerbrokers and
distanced herself from Joe Tripodi.

KRISTINA KENEALLY: I can rule out that Joe Tripodi will be in Cabinet.

JOHN STEWART: 15 months ago Nathan Rees was plucked from obscurity to replace Morris Iemma, who'd
fallen foul of Labor factional powerbrokers. The one-time garbage collector promised to give the
top job everything he had.

NATHAN REES: I will be having a red hot go at fixing the problems in NSW.

JOHN STEWART: But the state's hospitals were in crisis, public transport occasionally shambolic and
the state's debt mounting.

On top of that, several of his ministers became immersed in scandals. And right-wing powerbrokers
constantly plotted when the Premier's poll numbers failed to improve.

Then two weeks ago at the state ALP conference, Nathan Rees moved against the plotters.

NATHAN REES: It was the single biggest day of my life, in professional terms.

JOHN STEWART: In a bold move, he axed ministers Ian Macdonald and Joe Tripodi.

JOE TRIPODI, NSW LABOR MP: I know for a fact that you all know that I have been nothing other than
loyal to Nathan Rees.

JOHN STEWART: It was meant to be a new start for the troubled Labor Government but the reshuffle
triggered his downfall.

NATHAN REES: Through the past 15 months my ability to do good has been impaired at every turn. A
malign and disloyal group well known to the New South Wales community has made the business of
Government almost impossible.

JOHN STEWART: The New South Wales Labor Party has become a problem for Kevin Rudd, weary that the
chronic instability will have an electoral impact at the federal level.

KEVIN RUDD, PRIME MINISTER: I would frankly say to all those folk in the New South Wales
Government: get your act together. Get your act together. The people of New South Wales expect good
government. It's time to end the games.

BARRY O'FARRELL, NSW OPPOSITION LEADER: The public's been locked out of the choice of the next
Premier of New South Wales. That's why if Nathan Rees wants to really fight for the public, go down
to Government House and ask the Governor for an election.

JOHN STEWART: Premier Keneally has a tough job ahead of her, with the next state election just over
15 months away.