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ABC Midday Report -

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Prime Minister and it's a Live. Australia getting a new

woman. The new leader of the

Federal Parliamentary Labor

Party elected unopposed is

Julia Gillard. The new Deputy

Leader of the Federal

Parliamentary Labor Party leblingted unopposeside Wayne Parliamentary Labor Party

Swan. The political knives came

out last night for Kevin Rudd,

his fate sealed at a special

Labor caucus meeting this

morning. What I'm less proud of

is the fact that I have now


As for serving this

Government in the future I will

of course serve it in any of course serve it in any

manner in which I can be of

assistance. It's with the

greatest humility, resolve and

enthusiasm that I sought the

endorsement of my colleagues to

be the Labor leader and to be

the prime minister of this

country. And Australia's World

Cup campaign ends with a gutsy


COMMENTATOR: Brett Holman from

long range. What a goal, he's long range. What a goal, he's

got it again, Brett Holman.

Hello and welcome to Australia's News at Midday, I'm

Joe O'Brien. The local share

by mining stocks.. market is pushing higher driven

Well there was no long, drawn out campaign drawn out campaign of

destabilisation. One minute he

was there, the next he

wasn't. Kevin Rudd was suddenly

dumped as prime minister this

morning. He struggled with his

feelings as he fronted a news

conference after his Labor

colleagues abandoned him. His

deputy Julia Gillard was

elected unopposed as Labor

leader. She becomes Australia's

first female prime minister. A

momentous day in federal

politics. First let's go to our political editor Chris Uhlmann. political editor Chris Uhlmann.

An amazing day and it's not

over yet. Words cannot contain

it, Joe, and hundreds of thousands will be written about

it because it is a day of

history. After two years, 5

months and 24 days as Prime

Minister Kevin Rudd has been

deposed and we saw at his end

an extremely eloquent and

moving speech and then, of

course, we saw the person who

took his job, Julia Gillard,

of Australia who is the first female Prime Minister

of Australia who is now on her

way to Government House to be

sworn in by the first female

Governor-General. It's a day of

history here. OK, Chris, back

to you shortly. The coup was

quick, clean and decisive.

Jewel - Julia Gillard became

PM prm with such support the incumbent had little choice but

past with to resign. The moment came and

past with little fuss or

emotion by the caucus members

involved. Hayden Cooper pieces

together how events unfolded.

It's been almost 2 decades

since an act of such political

significance. One prime

minister entered the building,

soon another had replaced him.

Ms Gillard r you confident

you've got the numbers? Julia Gillard arrived side by side with

with her running mate. Half an

hour later the coup was

complete. The few leader of the

Federal Parliamentary Labor

Party elected unopposed is

Julia Gillard. Kevin Rudd had

seen the writing on the wall

and fallen on his sword. What

did you say to the caucus,

Prime Minister? What was your

message to the caucus? Do you

feel betrayed by Julia

Gillard? And soon the new PM emerged. I feel very honoured

and I will be making a full

statement very shortly. For

Kevin Rudd it's a sudden and

stunning defeat, 3 years after

heralding change he's become

the first prime minister to be

dumped in his first term. This

has been a very busy 2.5 years.

We have thrown our absolute all at

at this. The loss cuts deep.

But he's not leaving

recontesting the next election entirely. I will be

in the seat of Griffith. The

new leader has had a steady

rise to the top. Thank

you. From her role as a union

lawyer to Labor backbencher,

minister and now the Lodge. Her

parents in Adelaide couldn't be parents in Adelaide couldn't be

prouder. In our wildest dreams

we wouldn't have anticipated

anything like this. Visitors to Parliament were caught up in

the moment too. We just ran

down to Parliament because we

wanted to show our kids. It's

something we will never

forget. Good for females of the country but it won't be

changing my vote. Some have

little choice but to change

their view. Caucus backers of

Kevin Rudd are adapting to Kevin Rudd are adapting to the

new world. Julia's the Prime

Minister and we will all

completely and fully support

Julia Gillard as the Prime

Minister of Australia. She will

do a great job. I've been

saying that she will make a

great prime minister one day,

that day has come. And a

remarkable day it is. And

having said all that, folks,

we've got to zip.

And joining me again now is

political editor Chris Uhlmann.

Chris, first let's go to Julia Gillard's press conference

which has just wrapped up. Her first comments in that were a

tribute to the hardest

workers. That's right. She's

talked about her own

background. She talked about

the fact that she liked those people in Australia who set

their alarms early, who got up

to work in our fact r and to work in our fact r and our

farms and in the workplaces

around Australia. She tried to

position herself in that. Cast your mind back to yesterday

when she was approached to do

this job by those two factional

heavy weights. She was

approached in the morning, they

came back at noon and they said

they had support fer her. It

was enough to get her the job

as prime minister and she tried

to say why it was she wanted

that job. She talked about the

fact that she believed this

Government was a good

Government but lost its way and

needed to get back on track and

here's part of what she had to

say. I believe in a government

that rewards those who work the

hardest, not those that

complain the loudest. I believe

in a government that rewards

those that day in and day out

work in our factories and on

our farms, in our minds - mines our farms, in our minds - mines

and in our mills, in our classrooms and in our

hospitals, that rewards that

hard work, decency and effort.

The people who play by the

rules, set their alarms early,

get their kids off to school,

stand by their neighbours and

love their country. The Prime Minister designate, Julia

Gillard. And it was a very

emotional press conference for

Kevin Rudd and by all reports Kevin Rudd and by all reports a

very emotional caucus meeting

for him as well? Absolutely.

They said at the caucus meeting

that he spoke eloquently. In

fact one said that if he'd

spoken that eloquently all throughout his prime

ministership he would still be

prime minister and he certainly

had that sense when he stepped

up to speak to the gathered

press core when he spoke a

little bit earlier today. It

was very eloquent speech. It

was very moving speech, he talked about his pride in different different things, he talked

about his pride in the

achievements of this Government

and he listed a long, long list

of them. The way that the

Government had acted during the

global financial crisis. He got emotional when he spoke about things that were personal to

him. He is, as we know, the

recipient of an organ donor. He

has had an organ donor, a valve

in his heart. So he spoke and

got quite emotional and had to pause for

pause for a long time and he

talked about his work on that

and the fact that organ

donation rates had gone up. He

also spoke, and this was

particularly moving, about the

stolen generations and remember

the time in that very courtyard

where he was giving his speech where the stolen generations

had come through the gates an

then paused, he said, because they were frightened and that

will, no matter what people

remember Kevin Rudd for, his

apology to the stolen

generations, be a moment that is is remembered in Australian history. And the big question

now is there likely to be any

policy change.? In Julia

Gillard's press conference we

heard her refer to the Labor Party or the Rudd Government

having lost its way, is it

likely there will be policy change in One of the most interesting things that she

said was that she was take

Agnew attitude on the mining

tax. She staid that she was

willing to open her door to the mining industry mining industry as long as the

mining industry was willing to

open its mind She said she would suspend immediately the Government's advertising

campaign and she called as a

sign of good will for the

mining industry to suspend its

multiple dollar advertising campaign. She spoke about

emission s trading and she said

that after the next election

she would reprosecute that

case, although there wasn't an enormous about of detail about enormous about of detail about

that. And on asylum seekers she

said that she didn't want to

elevate that debate beyond

where it should be. She didn't

want to raise fear in people's

minds as she thought that the

Opposition was trying to do but

she did understand that people

wanted their borders protected

and that she would move to do

that. So they are quite large

statements but you'd have to

see a lot more detail to

understand exactly what she's

going to do on those issues. And issues. And Chris finally, the

Opposition is now facing a

bigger challenge than

expected? That's right. Last

night as this was all unfolding

I had some messages from strategists in the Liberal

Party who thought that perhaps

this made their job that much

harder, that Kevin Rudd - they

believed they had the measure

of him. In fact they were

getting more and more confident

that they were heading towards victory. Apparently some of

victory. Apparently some of the

polling that has been done by

the Australian Workers Union in

recent weeks does show that the

Labor Party was looking like it

would lose 19 seats. Under

Julia Gillard it's a whole new

ball game and I'm sure that

Tony Abbott, who is actually

quite a fan of Julia Gillard's,

although you won't know that

from now on l be ready for this challenge and understands the challenge and understands the

size of the challenge he now

faces. Lit be an interesting sparring match. Chris Uhlmann

in Canberra, thanks. And Julia

Gillard's partner Tim Matheson

spoke outside her home in

Melbourne's west just before

this morning's leadership

vote. I spoke to her just

earlier, she's pretty good,

actually very good. I'm

probably more nervous than her.

She's a pretty strong lady so

great job and I think the

nation's going to be proud

around about 9:30. So thanks around about 9:30. So thanks

very much, guys. Australia's

designate first man there. The

change of leadership may have

been quick but Julia Gillard's

had a long journey to the top

job. Born in Wales in 1961 she

moved to Australia with her

parents and settled in

Adelaide. She studied arts and

law and served as President of

the National Union of Students

before going on to a distinguished legal career. Parliament soon beckoned but it Parliament soon beckoned but it

was a rough road to Canberra.

Her rise in government may have been rapid but Julia Gillard's early political

career wasn't as easy. The

young lawyer and party activist sought preselection for Labor 3

times and failed. After her

third attempt she worked for

then Victorian Opposition

Leader John Brumby and finally

in 1998 won a seat in Federal Parliament. I'm not naive,

Parliament. I'm not naive, you

know, I'm not Doris Day who's

just somehow parachuted into

Canberra. I had to fight hard

to get preselected, I had to play a factional game to do

that, I had to count numbers, I

had to make deals. In her

maiden speech she praised the

growing influence of women in

politics and has since risen to

become the most powerful woman

in Australia. In Opposition she quickly rose she quickly rose through

portfolios - Immigration,

Indigenous Affairs an then

Health where she went head to

head with Tony Abbott. Do you

like each other, do you

think? I think I'm a much more

normal person than Tony Abbott.

In late 2006 Julia Gillard

formed an unlikely partnership

with Kevin Rudd and the

so-called marriage of convenience toppled Kim Beazley

to install a new generation of

leadership to Federal leadership to Federal Labor. Australian voters liked

the pairing and in 2007 Labor

swept to power. In Government

she took on a heavy work dtion

load as Minister for Employment

and Workplace Relations she

rolled back Work Choices. As

Minister for Education she went

head to head with teachers over

NAPLAN testing and won. She

also re presided over the

Government's school building

program. But the leadership question never question never went away. Ki

just get a hug from the future

prime minister? You first of

all PM... Oh, stop it,

Karl. There's more chance of me

becoming the full-forward for

the Dogs than there is of any change in the Labor

Party. She's a fantastic

deputy Prime Minister and she's

going to make a fantastic prime

minister as well, one day. That

day has arrived. One of day has arrived. One of those

watching today's dramatic

events is Susan Ryan, now the

Chair of the Australian Humans

Right Group. She was a high

profile minister in the Hawke

Labor Government of the '80s. I

think one of your campaign

slogans back in the '8 #0s was

a woman's place is in the

Senate. This must be a pretty

sweet day for you? Oh, it's

wonderful. It really sees the

work of all of those women and men who

men who support equality of opportunity in politics and

everywhere else and when we

said a woman's place is in the

Senate, we weren't bold enough

then to say in the House, in the Prime Minister's seat, but

it's happened and it's a

fantastic thing for

Australia. Has it taken too

long for this day to

come? Well, when the day comes

you're so thrilled and excited

it wouldn't be, you know, fair to complain about

to complain about the past but

I think Australia has been politically conservative on

this issue and now it's not and

no-one can say that being a

woman is an impediment to high

political office after

this. We're just seeing some

pictures from Government House at the moment where Julia

Gillard is about to be sworn

in. You can see Quentin Bryce

sitting down there, the

Governor-General. And amazing

day, Susan Ryan, to have a

female Governor-General and the female Prime female Prime Minister

designate. Absolutely. It

really does demonstrate to all

of Australians but especially

to schoolgirls and young women starting out in their career

that women can do anything. We

might just listen to. And 65 of

the constitution hereby direct

and appoint the Honourable

Julia Ilene Gillard MP Julia Ilene Gillard MP a member

of the federal executive

council to hold the office of

Prime Minister and to

administer the Department of

the Prime Minister and Cabinet.

Susan, Ryan, did you ever

think you'd see the day? I think you'd see the day? I

dreamt about it but dream don't

usually come true. This one has and it's fabulous for

Australia. Is Julia Gillard a

capable woman for this

position? Think we all know she

is because the great thing about Julia Gillard is that

she's tried and tested. She's not someone who's just been

brought in at the last minute,

she's had a long parliamentary

career, she's gone through some

very tough times in Opposition,

some very tough times in

Government. So we know of Government. So we know of her

capacities and I think we all

feel supremely confident that

she will be a wonderful leader

for our country. I invite you

to stand and make and subscribe

the affirmation of office as

Prime Minister. I Julia Ilene

Gillard, do solemnly and

sincerely affirm and declare that I

that I will well and truly

serve the Commonwealth of

Australia, her land and her

people in the office of Prime


How does it feel to hear

those words, Susan Ryan? It's

absolutely wonderful. It really

is a realisation of all of our

hopes about Australia being a society

society where women and men are

equal and where everyone can

aspire to high office if they

work hard enough, if they've

got the ability because also

Julia's a migrant and

Australia's a country built on

migration and refugees. So it's

just a wonderful coming

together of everything that's

best about Australia and

seeing, you know,

Governor-General Bryce and

Prime Minister Gillard there. Prime Minister Gillard there.

Congratulations on this

historic day for our country

and I wish you well.

You can see a lot of the

cameras flashing there and that

will be one of the interesting

things is how the media deals

with a female prime

minister. Well, I think they

will give her a good run to begin

begin with. There will be

pickiness later on but she has

learnt through her long years

in Parliament how to deal with,

you know, less than friendly

media and I think right now the

whole country's full of the

euphoria that this wonderful

thing has happened. And how do

you think the Opposition will

deal with a female prime

minister? Would that be prickly for them to deal

for them to deal with? I think

Tony Abbott's going to find it

very, very hard to have Julia

Gillard as Prime Minister

opposing him. He's used to

sparring with her but now she's

the Prime Minister and he's the

contender, I think he will feel

daunted. He will feel quite

daunted. Is there any danger

though considering what's

happened over the past 12 hours

or so, she could be painted as a puppet of the

a puppet of the factions or the unions? Well, somebody might

try to do that but they won't

succeed. I think it's very

clear from her political career

that she's always adopted

positions, supported people in

ballots and so forth on clearly

e - enunciated principles. She

was supported not only by

factions but the whole of the party all around

Australia. Susan Ryan, thanks

for coming in an thanks for

that insight. Now Kevin

that insight. Now Kevin Rudd enjoyed enormous public support

during his first 2 years as

prime minister. The 2007

election win was a new

beginning for the ALP after 11

years of John Howard. But

things started to unravel for

Kevin Rudd soon after he

shelved the emissions trading

scheme. Rebecca Barrett takes a

look back at his highs and

los. To unite and write a new

page in our nation's history. As

history. As election victories

go it was a landslide. The new

look ALP with Kevin 07 at the

helm sweeping into office on a

tide of hope and optimism and

ending the Howard era. At the

age of 50 Kevin Rudd became

Australia's 26th prime

minister. I, Kevin Michael Rudd, do swear that I will well

and truly serve the

Commonwealth of Australia, her

land and her people in the office of Prime Minister so

help me God. And for the first

time Australia had a female Deputy Prime Minister, one of

Mr Rudd's first actions as

Prime Minister was to attempt

to remove what he called a

great stain on the nation's soul. On behalf of the Government of Australia, I am

sorry. On behalf of the

Parliament of Australia, I am

sorry. And I offer you this apology

apology without qualification.

Kevin Rudd has made it

beginning from this day onward,

a brand new, fresh history.

After reconciliation, Mr Rudd

declared his other key passion

global warming. Climate change,

he said, was the greatest moral and economic challenge of our

time. There is no plan

time. There is no plan B. There

is no other planet that we can

escape to. But it was soon

derailed by global economic

crisis at the G20 in Pittsburgh

it was clear world leaders had

other priorities. A nuclear

threat in Iran and a lingering

recession, but Mr Rudd was happy to be part of the

club. The road to global economic recovery will be

tough, it will be bumpy, lit be

long but today is a

long but today is a

landmark. Back home economic

stimulus was seen as a vote

winner but he couldn't buy

votes for his emissions trading

scheme, abandoned after little

consultation with his party

after failing to get it through

the Senate. Questions began to

be asked about Mr Rudd's leadership and the pressure

started to tell. He began to

lose his cool. Now it might be

easy for you to sit in '7:30

Report' land and say that was easy to

easy to do, let me tell you,

mate, it wasn't. We are

fundamentally committed to

climate change, we could not

get the global accord we wanted. Labor began to slip in

the polls and an ongoing stoush

of the miners frayed the nerves

of Labor's backbench. Despite mounting pressure Mr Rudd

showed no signs of budging . I

was elected to do a job, I

intend to continue doing that

job. A job that's now been

taken away from

taken away from him. Joining me

now is the presenter of

'Insiders' Barrie Cassidy.

Barrie, you've participate ed

in and been a watcher of

politics for decades, we saw

that historic moment just in

the last 10 minutes or so. Back

in the '80s did you ever think

you would see the day? Look, I

figured that yes, in my lifetime it might happen

lifetime it might happen but

then again I thought Australia

might become a Republic in my

lifetime, you can never count

of these things but Australia

now has a woman as prime

minister and sworn in by a

woman as Governor-General. So I guess you've got to keep your

mind open to all of those

possibilities. I would just

like to be there though when

Julia Gillard phones Barry Hall

and says that the Bulldogs now

have a full-forward because she

did say that that would happen before

before she became Prime

Minister. And I think she had

to deal with that issue right

off the bat today because it's

out there, the fact that she

had so vehemently denied any

interest in the job and she

tackled that by saying well she felt in the end she had a responsibility, she had a responsibility to step up and

try and prevent the Coalition

from being elected. So what are

the principal challenges for

Julia Gillard now in turning public

public opinion around? Well, I

think she tackled the principal

ones right off the bat and that

is clearing the decks of those

messy issues and she did that

by talking about consensus and

a different style all together.

That is to talk genuinely with

the mining companies and try

and get a resolution to that

and on climate change it was

about getting community consensus. Of course within

that framework she did say that

there should be a tax on carbon

so she's committed herself to

so she's committed herself to that, that gives Tony Abbott

something to work with but I

think she also made it fairly

clear there won't be any

detail, there won't be any

policy on climate change before

the election zblsm now earlier

this morning you were expecting

Rudd to go through with this

vote but the numbers must have

just been overwhelming? The

numbers were obviously so

one-sided that they felt that

to put them on display would

not be good for the party and certainly not good for Kevin

certainly not good for Kevin

Rudd. If, for example, the

numbers were 75 to 30 something

that wouldn't have been a good

look for a prime minister who,

as Julia Gillard said of him,

that he was a man of remarkable

achievement who made wonderful

history and by wonderful

history she was talking about

the day he apologised to the

stolen generations. So given

that kind of attitude they

simply didn't want to embarrass him, I guess, and

him, I guess, and then when he

was given the opportunity to

avoid the vote, to resign and

then be able to make a speech

with some dignity then he took

it. What do you think of this

argument that Julia Gillard

only moved on Kevin Rudd after

he started seeking out the

opinions of backbenchers and

she was furious about that, or

is that just being seized on as

an excuse for her winning the leadership? Well, that was

leadership? Well, that was the

catalyst to a very ugly day and

so it will have its place in

history in that sense, that

that's what really infuriated

Julia Gillard. But she'd been approached before that, she'd

been approached by Bill Shorten

and then more recently by Mark

Arbib and David Feeney and

she'd told them that she wasn't

inclined to run. She wasn't

inclined to open the whole

thing up. But then as the day

got out of control and then the ABC right on cue at

ABC right on cue at 7:00 opened

the whole thing up and away it

went. So once it got a momentum

of its own then there was no

stopping it and she in the end

took the judgment that she had

to act. Question Time is going

to start up soon this

afternoon, it will be an interesting fight between Tony

Abbott and Julia Gillard. It

will and I think others have

made the point but Tony Abbott

up until now hasn't been as comfortable dealing with Julia Gillard as

Gillard as he has been with

Kevin Rudd but that's all ahead

of him now. Barrie Cassidy in

Melbourne, thanks for that. And

Julia Gillard's parents John

and Moira watched their

daughter's triumph from their

home in Adelaide's southern

suburbs. Well there we are. Elated,

Elated, excited, mindful of

the enormous job ahead. Binding

the party together now,

healing, dealing with

contemporary issues, facing an

adversary that's formidable. Julia Gillard's

parent, they're very proud.

Joining me now is Cheryl Kernot

former leader of the Australian

Democrats and former Labor Party MP.

Party MP. A landmark day for

people in Australia? When I saw

a female Governor-General swear

in a female Prime Minister it

made me very teary and very

proud. I think you saw in Julia Gillard's press conference one

with an absolutely natural

instinct for leadership, not a

crafted one. She talked about

beliefs and values and I

believe her, I really believe

believe her, I really believe

her and I think that her

inclusiveness and her capacity

for consultation and

negotiation will be very good

for Australia. Is it over the

top to describe this as a

coming of age for Australia in

at least one sense? I think

people of all political

persuasions understand the

symbolic importance of what

today means for all of us, not

just for women. This is not

about gender. I just have to interrupt

interrupt you there, tablt is

just about to start holding his

press conference, let's cross

to that. For the former prime

minister I want to say on

behalf of the Coalition that I

thank him for his service in

that office and I should say

that service in high office is

a privilege and a burden,

especially on families and

especially on families and no-one watching the former

prime minister today could not

have been moved by what he's

been through. Prime ministers

should not be treated this way.

Obviously I should also

congratulate Julia Gillard on

her asession to the highest, in

this case, non-elected office

this case, non-elected office

in the land because she hasn't

yet been elected and it's my

job to make sure she is never

elected by the Australian

people. Julia Gillard and I

obviously do agree on many

things. We want to reward hard

work, we want to support

families, we want to encourage business. The difference

business. The difference is in

how we think those nobel

objectives are actually

realised. It's not what the new

Prime Minister says, it's what

she's done and what she will do

that matters. I really want to

stress that the problem with

this Government has not been

the leader, the problem has

the leader, the problem has

been the policy and Julia

Gillard has been the co-author

along with Kevin Rudd of all

the major policies of this

Government. Julia Gillard and

Kevin Rudd were both in denial

over pink batts, Julia Gillard

along with Kevin Rudd were both

incompetent when it comes to border

border protection. Julia

Gillard was the principal

author along with the Prime

Minister of the school hall rip

offs and Julia Gillard, along

with Kevin Rudd, and along with

the new Deputy Prime Minister

co-authored the great big new

tax on mining. Now this is very

significant. She has pulled the

ads but she has not pulled

ads but she has not pulled the

revenue from the Budget and

until she pulls the revenue and

not just the ed as, she is just

as committed to the mining tax

as her predecessor. Just as

committed to this tax that

would be deadly to the economic

future of our country. No-one should believe that she is

going to be any different to

going to be any different to

her predecessor, she even used

the same language "We're

prepared to negotiate" but the

word compromise never escaped

her lips and the truth is that

there's only one acceptable

position on this tax and it's

to dump it. It's a bad tax,

it's dangerous for our future,

it just has to go and everyone needs to understand

needs to understand that if the

Government is re-elected people

will get this tax. Now there

will be a lot of talk about

this being a historic day and

it is quite a historic day in

many senses. One of the senses

in which it is historic is that

it's the first time that the

style of NSW Labor

style of NSW Labor has come to

Canberra and a prime minister

elected by the people has been

executed by the union and the

factional warlords, the style

of the NSW Labor mafia has been

well in evidence over the last

24 hours. Now, I want to say

that there is a better way

that there is a better way and

the better way is what my

colleagues and I will be offering to the Australian

people. I think we have been a

formidable Opposition, I think

we can be a formidable

Government, we will have clear

policies, we are committed to

good process and I can offer

the Australian people a united,

the Australian people a united,

stable and experienced team in

a way that Labor plainly can't.

REPORTER: Mr Abbott when you

came Opposition Leader, the alleged flirting with Julia Gillard, there still seems to

be a cosy relationship between

you on Friday morning

television, will you find it

hard tore mount political

attacks on her and her policies

because she's a woman? Look,

it's not about us, it's about

it's not about us, it's about

the policies that are going to

be offered to the Australian

people and her policies will be

Kevin Rudd's policies. She made

it very clear, different salesman, same dud product and

that's the problem.

REPORTER: You sound critical

that she has no popular

mandate, that she's been put

there because the NSW mafia

executed Kevin Rudd. Is she an

illegitimate prime

minister? Look, she is the

leader of the Labor Party but

plainly a process has been gone through inside the Labor Party,

it's an ugly process and you

only have to look at the

comments that are now pouring

in to the Labor Party website

to know that a lot of Labor

people feel that this was no

way to treat a prime minister.

REPORTER: Will you now call on

her to have an election sooner

rather than later? Look, it is

up to the Government to decide

when there should be an

election. Whenever the election

is called the Coalition will be

ready for it but the important

thing is that there are good

policies in place, good

government is in place and

we're going to get the same

policies and the same style of

government from Julia Gillard

as we had from Kevin Rudd. REPORTER: Do you fear her more

than Kevin Rudd? Look, I think

that the Coalition's critique

of the Government has been vindicated. Julia Gillard

herself said quted this is a -

"This is a Government which has

lost its quai." She has

vindicated our position.

REPORTER: Do you fear her electorally more than Kevin

Rudd? She's a person that has

just admitted that she has been

deputy prime minister in a government that isn't doing right.

REPORTER: But how do you feel

about her? What I feel is that

I have a big job ahead of me.

It doesn't matter who the Labor

leader is, I have a big job

ahead of me but this Labor

leader, this new Labor leader

has effectively conceded the

Opposition's critique.

REPORTER: You've been effective against Kevin Rudd, you've

killed him off now. Are you

disappointed you did that so

soon and it now leaves you in

this position where you have to

fight someone who will say give

you a bigger fight? As I said,

I think that the Opposition has

been vindicated, I think what's

been demonstrated over the last

6 months is that this is an

extremely formidable Opposition, an Opposition which

is much more in tune with the

Australian public, which is

much more conscious of the way

this Government has dudded the

Australian public than any of

its own members.

REPORTER: Mr Abbott, you said earlier that Julia Gillard

hadn't changed the position on

mining. She's obviously changed

the rhetoric around it and BHP

Billiton had just announced

that it is withdrawing its ads

as an act of good faith. Are

you in danger of being caught

stranded while the mining

companies take up her act of

good faith? Well, as I said,

Dennis, it's one thing to pull

the ads but unless you pull the

revenue out of the Budget you

are committed to the tax in its

existing form. The only sign of

good faith that people should

take seriously here is saying

look, we're starting again from

scratch, because we're starting

again from scratch we can't

count on the revenue. Now you

won't get that from Julia

Gillard just as you didn't get

it from Kevin Rudd because they

absolutely depend on this tax

gouge to bring their Budget

into balance, as I've often

said there is a high road and a

low road back to sir plus. The

high road is expenditure

restraint and encouraging a

more productivity economy. The

low road, the Gillard Rudd road

is tax increase s.

REPORTER: So you're opposed to

a resources tax on the mining industry no matter what

compromise is reached with

miners and the Government? Well, I mean we all

know and we've known for

several days that the

Government is about to announce

a - arrangements with the coal

seam gas people that will

replicate the existing petroleum resource rent tax.

The only reason why that hasn't

happened is because the

Government has been too focused

on itself and not sufficiently

focused on governing. We also

know that any change which

significantly increases the tax

rate for coal and iron ore and

other minerals is going to be incredibly damaging to Australia's competitive

position. Now I am against

anything that damages

Australia's competitive

position and this is a truly

bad tax because it will truly

damage this industry which has

been so vital to our present

and to our future prosperity. REPORTER: Implaquably

opposed? This is a bad tax, a

bad tax. At the moment when

production goes up the States get more through royalties,

when profits go up the

Commonwealth gets more through

company tax. There is a profits

based tax, it's called company

tax and I am perfectly

satisfied with those

arrangements. Under those

arrangements as Kevin Rudd and

the Government used to say

until their addiction to

spending fed their addiction to

increased taxes, under those

arrangements Australia has

benefitted itch measurably from

the mining boom and the problem

with this Government is that it

is going to kill the boom stone


REPORTER: Do you expect Labor

to move to the right on asylum

seekers now that Gillard's

Prime Minister, as Kevin Rudd

indicated last night? Look, I

don't know where the

Government's rhetoric will go.

The important thing is what

their policies are and this

Government has no policies to

stop the boats and this there

is no evidence whatsoever that

the incoming Prime Minister has

any new ideas or will have any

new policies.

REPORTER: Your alleged problem

with women does this not bring

that into sharper focus? Look,

I mean I'll let the public make

a judgment about me. I'm not

going to offer psycho analysis

or a running commentary on myself.

REPORTER: What do you regard

Julia Gillard's best asset as a political foe to you and what

will be the hardest element of

her political style for you to combat? Again it's not my job

to offer commentary on

personality or personalities,

it's my job to engage in a

contest of policies and I'm

just going to focus on policy

and the bad policies of Kevin

Rudd, the policies that caused

the Government to lose its way

are the polingcys that Julia

Gillard is still committed to.

REPORTER: Is victory now within

your gasp - grasp? No election

is unlosable, no election is

unwinnable. I think this

election is very winnable but

we have a long, long way to go.

REPORTER: More or less winnable

now that Julia Gillard - I'm

just going to say we've got a

long, long way to go but I

think a lot of people watching

the ugly assassination which

has taken place today will be

very disillusioned with the

Labor Party.

REPORTER: On climate change, Mr

Abbott, Julia Gillard says she

wants a community consensus,

can you see a community

consensus where you would

support a CPRS in the next

term? Well, let's not engage in

Orwellian news speak. Te

missions trading scheme is a

tax. Now I've said that if

there is an international

consensus, if a new way of

doing things is to become part

of the international trading

system , of course we will

respond intelligently. Let's

just remember what the incoming

prime minister has been saying

for years about climate change

and about an emissions trading

scheme. Her rhetoric on this

subject has been almost as

evangelical as the former prime

minister's. She said in respect

of an emissions trading scheme

delay is denial and yet she's

obviously now into the same

delay as the former prime

minister. Thanks so much. Thank

you. That it was Leader of the Opposition there Tony Abbott

with his first press conference

while Julia Gillard is Prime Minister. You've got to get

used to saying that now, the

Prime Minister Julia Gillard.

He paid tribute to Kevin Rudd,

Tony Abbott paid tribute to

Kevin Rudd. He said Julia

Gillard and he agree on a lot

of things but we differ on how

to get there. He also made a

point of linking Julia Gillard

to all the decisions of the

Rudd Government. He says she

has been the co-author of all

the major policies of this

Government and it's apparent

from that press conference that the mining tax will continue to

be a focus for the Opposition.

Now we've got Cheryl Kernot

here before we were rudely

interrupted. I don't mind. By Tony Abbott. So Tony Abbott was

straight away there on the

front foot about the connection

with the unions and the

factions and we can expect that

to continue? I think so. But

look, don't underestimate

Julia, she really, I think, has

shown through her competence

that she's her own person and

she might be a woman and she

might have been supported by

the right faction and unions

who support the right faction

but she took her own votes to

give Kevin Rudd the leadership

first. I think she's

demonstrated her commitment,

her loyalty and I think Australians are going to see

her for the natural lead

they're she is. I don't think

Tony Abbott's going to win

easily this argument. It's a

curious situation though with the right faction supporting

someone from the left. It

is. Is there a chance that

could all just end up in a

mess? Not in the short term, I

don't think, because she's got

the authority, she's got the

competence. She's there because

she is the most competent

person to lead the Labor Party.

I think she should have been

there before this, however she

took her votes to support Kevin

Rudd and I think she's shown

that loyalty. I think she

should get some of that loyalty

back from those in those

factions who at the moment

support her. I don't think

she'll disappoint them

though. Now just going to the

relationship between Tony

Abbott and Julia Gillard, they

seem to have a pretty good

relationship, let's take a look

at one of their exchanges. I

say. Abbott's out there for a

door stop that he will be complaining that everyone's being mean to him because he's

a Catholic. It's just nonsense

so I'm going to walk out and

say "Tony, this isn't about

you" try get him off talking

about himself. Come on, mate.

Be lucky to make Question Time

at this rate. Sorry to hold you up,

up, Julia.? Now do you think that dynamic is going to change

at all? I hope not. I think

Australians are yearning for

something different in politics

and I think that if Tony Abbott

and Julia Gillard are - have

the courage to be themselves

and to deal with the issues

rather than the personality we

might see a quantum leap in the quality of political

conversation in this country. That would be a great

That would be a great

thing. What about turn Kevin

Rudd for a moment, it was a

pretty brutal and swift

treatment for a leader who had

taken them to a victory that everyone thought was going to

be very difficult back in 2007.

He wasn't treated softly by the

ALP? No, but if you have to

win, which they want to win,

they don't want to be just a

one-term government. Many, many

people are prepared to do

whatever it takes, aren't they,

and in this case I think that

the fact that Julia has been so

loyal for so long but just in talking to people could see

that really I think they were

going to lose. Sometimes you

have to step up and she did. So

you don't think the ALP has

been brutally unfair to Kevin

Rudd? I think the execution of

the decision has been pretty

brutal but it's not the only

thing that's brutal about

decisions in the Labor Party. I

understand the kind of tribal

loyalty where they don't

usually change leader, they

give them one go to the next

election, so it is different

and I think it will be very

hurtful for someone who's

invested his whole life in

becoming prime minister. But that might be the difference.

If you want it so much for

yourself then perhaps - and you

don't articulate the beliefs as

clearly then perhaps that's

part of the combination of

complex factors that have gone

into the loss of confidence in

him. OK, Cheryl Kerr - Kernot

thanks for coming in on this

day. The Western Australian Premier Colin Barnett has been

a vocal opponent of the mining

tax proposal. He's now hoping

Julia Gillard will drop it. He

also says the new leader will

have a job on her hands in the

West as WA voter hardly know

her. Today though, despite

being on the other side of

politics, Mr Barnett said Kevin Rudd had been hard done

by. He's a Labor politician,

I'm a Liberal politician, we

are opponents but I did have a

good working relationship with

him on most issues, certainly

not on the mining tax. I think

he was let down badly by Wayne

Swan on that issue. My belief

is that he left that issue to

Wayne Swan and Wayne Swan

simply did not do the work, did

not do the consultation. Do I

feel sorry for him? Yes, I do,

I do, I must say that. This is

a very dramatic display of the

brutality of politics. WA

Premier Colin Barnett there. So

battle lines are drawn for the

coming election. Julia Gillard

versus Tony Abbott. How will the campaign be shaped by

Australia's first female Prime

Minister and how does the

Opposition now sell brand

Abbott? Jane Caro is an independent advertising

consultant, she joins us now.

Did the Coalition's job just

get a lot tougher? Yes, it did,

a lot tougher, I'm afraid. She

is the kind of new, unique,

revolutionary fresh band. We

have never had a prime minister

like this before. She is a

woman, she changes h whole

tenure of the debate, she's

exciting, the buzz around her -

the announcement this morning

is much greater than it would

have been if we had another man

in a suit get this position. It

doesn't matter what side of

politics you are on, it doesn't

matter what gender you are, it's exciting, it's different.

We feel like in a way we've

come of age. Something really

fundamental about Australian

society has changed merely

because Julia Gillard is a

woman and that's a brand and

Tony Abbott's going to have a

lot of trouble. He already has trouble. We're just seeing

shots of Julia Gillard on the

steps of Government House there

with her partner and Quentin

Bryce and Wayne Swan after she

was sworn in. You look pretty

happy about it? Yep, I'm really

- hey guys, we're taking over

the world, always knew we

would, it's only taken u us 200

years. Give an inch and they'll

take a mile. That's right. But

I think that Tony Abbott is

going to find it hard. Whatever

he does in a way he's going to

look bad. If he goes at her

like an attack dog that's going

to be a bit distasteful. We're

still a bit sexist about men

having too hard a go at women,

we feel uncomfortable that. But

if he's too nice and cosy we'll

see that as patronising and

condescending. Remember he's an

old Riverview boy, single sex

background. Julia is Unley High

school, scrappy co-ed high

school. I'd pay her chances of

mixing it with the boys a lot

better than his chances of

dealing with a woman in power.

That's going to be hard for

him. We'd already had a bit of

a taste of what was to some subpoenathy back to Kevin Rudd. Obviously the Labor Party

didn't agree with me it was

clever, witty and a good piece

of advertising. That strategy

is gone now for them. We've

already heard from Tony Abbott

in his first press conference

since Julia Gillard was sworn

in. He's attacked her on the

unions and factions link, as an

advertising effective if the

Coalition came fo you would you

be ad - add vising them to go

down that path in their

advertising? Probably but not

today. I think he made an error

today in going down that path.

I think he needed to be

generous and I think he needed

20 kind of capture the tenure

of the day which is this is a

major change for Australia.

This really

creates a different image pr for our country internationally

and it gives us a different

sense of who we are and what

our character is like and he

didn't get into any of that and

I think the list of she's just

going to be like Rudd I

wouldn't be doing that now. Let

her get her feet under the table, let us see what she's

going to be like as leader but

he gets in there saying she's

going to be like the old guys

but in a skirt. We don't

believe it yet and if we don't

believe it ear not going to

listen to what you're saying. Jane Caro, thanks for

that. My pleasure. We'll have

more on the leadership in a

moment but there is some other

news around today. One big

story, Australia has bowed out

of the World Cup but the

Socceroos went out with a 2-1

victory over Serb yasmt it was

Australia's first win over a European opponent at a World

Cup but the margin wasn't

substantial enough to secure a

place in the knockout phase.

The ABC's Peter Wilkins reports

from Nelspruit. There was

several signature moments

during the Socceroos' last Hu

ra in South Africa but any

thoughts of a tournament saving

victory seemed remote during a

first half dominated by Serbia.

A combination of poor finishing

and outstanding keeping from

Mark Schwarzer kept his team in

the contest. A fantastic

save. There was only fleeting

glimpses of Australian authority.. Despite a bright

start to the second half the

pattern continued until the

Socceroos grabbed hold of the

match. A period of domination

in defence and attack was

converted by Australia's prime

source continuing his strike

rate of one goal every two

internationals. Tim Cahill once again. But it was Brett Holman's brilliant second which

really lifted hopes. From long

range, what a goal! He's done

it again, Brett Holman. I think

we all got pretty excited and

it was a wonderful achievement to get

to get that far ahead but, you

know, I guess things didn't

ultimately fall our way. The

score in the other Group D

match where Germany led was a

closely held secret. Australia

searched for a vital third

until Schwarzer made a rare

error. And Serbia have got a

goal back. Serbia's quest to

advance falling fractionally

short. Germany's 1-0 win over

Ghana was enough for those two

teams to qualify. Germany set

to meet England in an epic

final 16 clash. Australia saved

its best for last. Well I'm

elate and disappointed at the

same time. After the game some

of them had tears in their eyes

but they were proud. But the

Socceroos were left to rue what

might have been. We have 4

points, I was hoping it was

enough and after all the goal difference against Germany

killed us. The Socceroos ended

South Africa 2010 on a piercing

note in contrast to the way

they started their campaign. It

was a fitting finale for

several senior players who will

soon be headed into

international retirement. In

Australia supporters braved the

cold to watch the game at public

public venues. Diehard

supporters were in place early

overnight. By kick off this

morning hundreds had packed the official FIFA site in Sydney's

CBD to show their

support. Aussie spirit means it

doesn't matter what the stakes

are, we're going to win. As

long as they can give the

retiring Socceroos a good send

off I'll be happy. In Melbourne

too fans gathered at Birrarung

Marr to watch the match on a

big screen. The scoreless first

half had fans on edge. While

Serbian supporters took it as a

good sign. It was pretty quiet

over there, actually. The crowd

erupted when Tim Cahill and

Brett Holman scored within 5

minutes of each other. While

the 2-1 win fell short of the

margin needed to get Australia

through to the next stage, fans

say it was the Socceroos' gutsiest effort at gutsiest effort at this World

Cup, particularly without star

striker Harry Kewell. Good

performance without him.

Unlucky to get a card but yeah.

Cahill came through in the end

for us. They played pretty well

a lot better than their

previous game. They held the

centre quite well. Soccer

Australia says these crowds are

a public demonstration of

support for the game and the nation's bid to host the World

Cup in 2022. The FIFA site will

stay in place for the rest of

the tournament and next month

its delegates will visit to

inspect potential sites. For

the thousands of Australian

supporters in South Africa the

win against Serbia has been

enough to fire their passion

for the Socceroos, sorely

tested at the start of the

tournament. They're already

looking forward to the next

World Cup. Andrew Geoghegan

reports from Nelspruit.

(Sings) # Aussie, Aussie

# Thousands of Australians have

been following the Socceroos in

South Africa. For them this was

a game worth travelling halfway

around the world to see.

Australia, we showed them we

can play football! Yeah! Some

real mixed emotion here in

Nelspruit. The Socceroos' fans

are so pleased their team

finally has a win but of course finally has a win but of course there's massive disappointment

they left it too late. I'm

proud to be an Aussie, that was

fantastic. Awesome. Absolutely

proud. We went out with a bang, you couldn't do better than

that. Fantastic game but sorry that we're going home unfortunately but fantastic

effort. The boys played well.

Come on Aussies, yeah! Going

home with smiles on our faces.

True Australian spirit. It's

got to be one of the most depressing victories you could

ever have. These