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Live. Tonight we have a

Government and Julia Gillard is

the chosen one. Ours will be a Government with just one

purpose and that's to serve the

Australian people. After an

election race too close to

call, Tony Abbott loses in a

photo finish. My challenge now

is to ensure that I'm not the

best Opposition Leader never to

have become Prime Minister. And adios amigos, a

split in the Independent ranks keeps everyone guessing the bitter end. I intend with

my vote, for what it's worth,

to support the Labor Party.

It's going to be ugly but it

going to be beautiful in its ugliness. Good evening, Chris

Uhlmann in Canberra for this special edition of ABC Also tonight, hundreds of

properties facing isolation as

the flood crisis worsens in

northern Victoria. More on

Victoria's flood emergency in

your local bulletin later but

first, from a hung parliament

and 17 days of indecision,

Australia finally has a Government. Julia Gillard tonight called on the

Governor-General to tell her

that she can lead a stable

Government but it was a

near-run thing. Labor limped to

the magic number of 76 with the

backing of just two of the

three country Independents. Rob Oakeshott and Tony Windsor say

they went Julia Gillard's way

for stability and for country Australia. They've also for the bush as a spin-off. multibillion-dollar commitments

We'll begin our special

coverage tonight with chief

political correspondent Mark

Simkin. Mark, how did it all

unfold? Like a bizarre reality

TV show, Chris. The three

judges delivered their verdicts

one after the other and no-one,

newt even the political

leaders, knew who the winner

would be. Julia Gillard went

back to Government House where had campaign began seven long

weeks ago. An extraordinary election is finally over and

Julia Gillard is the first female Prime Minister elected

by the people. Labor is prepared to deliver stable,

effective and secure Government

for the next three years. But

only after the country

Independents rode to her

rescue. Can I say we live in a

lively and resilient democracy

and it works. It works for some. The Coalition won more

votes and more seats than our

opponents but, sadly, we did

not get the opportunity to form

a Government. Obviously I'm disappointed about that but

that's our system. I'm just

going back to the meeting.

Give us a clue, Bob. The

Independents only decided to

become Queen-makers this

afternoon. After a dramatic,

frantic and final round of

negotiations. Tony Abbott and

fates when the public did. I'm Julia Gillard learned their

not saying anything that would

divulge the nature of our

discussion. They wanted to

vote as a bloc but they didn't.

Bob Katter declared his hand

first. I will be backing the Coalition, yes. I went for

North Queensland. I went for my

tribe, my homeland, that's who I went for and it a pity a few I went for

other members of parliament

didn't do it as well. That

made it 74-74. Tony Windsor

vote, went next. I intend with my

vote, for what it's

vote, for what it's worth, to support the Labor Party. Labor's broadband plan Party. Labor's broadband

won him over, sweetened with the promise of wholesale rates

for regional areas. You do it

once, you do it right and you

do it with fibre. At that

point the Coalition couldn't

win but Julia Gillard was still one short of a majority. An

absolute line-ball, points

decision, judgment call, six of

one, half a doesn't of the

other. Rob Oakeshott teased his

way through a 15-minute

explanation before finally

delivering the Prime Ministership. That means

confidence and supply in Julia Gillard

Gillard unless - and I

emphasise unless - exceptional circumstances determine otherwise. Julia Gillard offered Rob Oakeshott a

money rather than a job. The s money rather ministry but the clincher was

promise of national investments

in rural hospitals, education

and infrastructure. For

regional Australia, they can

look forward to benefits in the

order of $9.9 billion but

that's a fair share. This is

not a mandate for any Government. Their extends to supply and no-confidence motions. All

other legislation will be

treated on its merits.. It's

going to be ugly but it's going

to be beautiful in its

ugliness. Let's draw back the

curtains and let the sunshine

in. My challenge now is to

ensure I'm not the best

become Prime Minister. Tony Opposition Leader never to have

Abbott became Opposition Leader

by one vote and now Julia

Gillard's beaten him by two of them. If the Independents

thought making a decision was

hard, it's nothing compared to

the pressure they'll feel over

the next three years. They're

caught between being Government

watchdog, potential targets of

a Coalition eyeing their and local constituents who seem

divided over the call they've

made. Dana Robertson reports.

When Rob Oakeshott said the

words... That means confidence

and supply in Julia

Gillard. ..the response at home

was less than rapturous. The national consensus but there's key Independent hopes for

no sign of it in Port

Macquarie. I'm really, really

sad. I think he's an idiot. It's to be expected. In Katter country they're more

forgiving. Good on him. It

needed to be done. I think

with the Greens in with Labor,

I think Bob Katter is much

better off with the

Coalition. Bob Katter cites

Queensland's wild rivers laws

as the main reason he rejected

a Labor Government but the Premier takes no

responsibility. Our wild

rivers legislation leads the

world when it comes to

protecting the environment.

We're very proud of it and disappointed that Bob feels the We're very proud of it and I'm

way he does. Old hands say re

building Labor in Queensland

must be a Gillard priority.

The Labor Party position innal

Queensland has passed. But

despite their daughter's brush

with political death, Julia Gillard's parents believe

minority Government will be her

making. It will be making. It will be an exciting

time and one fraught with

difficulties but I'm sure

Julia's confident She's very

straight forward and I think they appreciate that. I am

very confident that not only

will this next parliament last three years but it will be one

of the richest and most productive parliaments in this

country's history. For the

Greens, the new regime is a

promise of more colour in

Federal politics. Yes, well, if

you come to the fork in the

road, take the most adventurous

option. With their new-found

power the Greens were after,

but didn't get, a seat in parliament. If Rob Oakeshott's got a opportunity there him well. Julia Gillard wants

to name her ministry early next

week and has again confirmed

that Kevin Rudd will be a part

of it and can then there's the

matter of The Lodge. The Prime

Minister's finally getting the

keys but says she hasn't yet

thought about when she'll move

in. Back to our chief political correspondent Mark Simkin,

Mark, how stable is Mark, how stable is this

minority Government likely to

be? Minority Governments can

have major headaches. It's

Labor plus four individual

cross benchers and each has

separate policy agendas and

priorities and that means every peace

peace of legislation could be a

high-wire juggling ac. A few

slips could $could end up with

some policy paralysis, I

suppose, and on top of that

you've got an Opposition that

now has more than just Labor to now has more than just Labor to target. Whilst publicly

Opposition MPs are being quite

respectful about the Independents, privately they're scathing. One expression doing

the rounds is blanking drama

queens. Tony Abbott got so near

and yet so far, what happens to

him now and his Coalition

team? He will stay on as

Opposition Leader. He'll put

his hand up at a party room meeting meeting on Thursday and be

re-elected un opposed but politics being politics and

politicians being politicians,

there will be some blood and

recriminations somewhere.

Already there are private calls

for a generational change

within the party. There will be

some sort of shakeup of the

front bench. For one, Malcolm Turnbull will have to get a

senior job but there are more

likely changes in the party machine and there are also

complaints there, particularly

about the way the campaign was run

run in NSW. There were some late preselections, some poor

preselections and many in the

party believed there were seats

that could have been won and

just one seat won there would

have made all the difference in the Parliament House in Canberra at

the end of a gripping episode

in Australian history. We'll

cross now to your local buttens. Goodnight. To buttens. Goodnight. To other news now and residents in the north and west of Victoria face

a nervous wait this evening as floodwaters continue to rise.

Hundreds of homes are at risk

in the towns of Shepparton and

Horsham with swollen rivers

expected to peak later tonight.

The rain may have eased but the

flood risk is far from over.

About 300 properties around

Victoria have been flooded and

hundreds more could be cut off

tonight. For the north of the

State the flood risk is still

very real, particularly for the next 24 hours. Shepparton in

Victoria's north and Horsham in

the State's north-west remain

on flood watch. Rising waters

are expected to are expected to peak later

tonight. You might have a

foot of water around your house

but your house will be

safe. For now it's a waiting

game. We at this stage will be

OK but it's how long for that's

the concern. A lot the concern. A lot of people

watching it but as the waters

rise we'll get a lot more calls. Water police evacuated

Gael Monfils's children while

the couple - Julie and Jo's

children while the couple

stayed to save their home in

Shepparton. Inside's fine.

We're going to start sand

bagging now and hopefully save

the house. While farmers have already begun counting their

losses. To see the water is fantastic but it's just the

damage it does. Floodwaters

have eased in the south of the

State. Authorities in the

northeast fear a levee bank on

Wangaratta's Ovens River may

break but residents say the

water is subsiding. The

a flood task force to assist in

the recovery but with more rain

forecast over the next 10 days

it's not known when the waters

will subside. The damage bill

is estimated at tens of

millions of dollars and like

the floodwaters, it is rising.

A search for a Sydney teenager

missing in the Snowy Mountains

ended in tragedy today after

his body was found in rough

terrain near Charlotte Pass ski resort. Early yesterday,

15-year-old Evan Greenwood told

his family he was going skiing.

When he failed to return

yesterday afternoon, police and emergency workers mounted a

search. It was stepped up this

morning after subzero temperatures overnight. Around

noon, police told Evan's family

that cross country skiers had

found a body near the banks of

the snowy river at Mount

Guthrie. They've come for a

family get-away and it's turned

to tragedy. Police will conduct a full investigation. The

construction union says it has

evidence of dodgy employment

arrangements for workers

affected by the collapse of affected by the collapse of the

Barton highway bridge last

month. Nine people were taken

to hospital after the bridge

collapsed during a concrete

pour. A WorkSafe ACT report

found form work had not been

adequately braced. The

construction union says it has statutory declarations from

some of the workers which show

they were employed under sham

contracts and did not receive

proper safety inductions. Both the principal contractor, Abergeldie, and the

subcontractor, went to various locations including the

hospital and got workers to

sign forms saying they were casual employees. Abergeldie

has released a statement saying everyone

everyone working on the bridge

has been

the company also says it does

not condone sham contract and

says if the CFMEU has evidence

of malpractice it will support

an inquiry. The foouz Prime

Minister has spent the day touring

touring earthquake devastated Christchurch. Christchurch. The city continues to be rocked by

strong after shocks. The

Government says the national

economy will be seriously

disrupted by the disaster. And it's offered $100 million

assistance package to help

workers who've lost their jobs.

John Key's priority is helping to accommodate workers

traumatised by earthquakes. We

want to help people They're under enough stress at

the moment dealing with the

after shocks that are occurring

on a regular basis. Mr Key's priorities changed after two

magnitude 5 quakes and a string

of weaker tremors rattled the Canterbury region

The massive quake which brought

down buildings like this on

Saturday was undoubtedly

terrifying but many here find

the after shocks worse. the after shocks worse. People

told me it's like playing

Russian roulette with a load

gun. Each time a tremor strikes

people wonder if it will kill

them. Michael Duncan is one of

200 people who've sought refuge

at the raceway. Some are homeless because

homeless because of the

earthquakes, others just want company. Why did you come

here? Too much stress. Too

stressful at home. It's like living in living in a nightmare at the

moment. It is really. You don't know what to expect. Margaret

is a Red Cross worker who's

trying to keep people's minds

off the earthquakes. There's an elderly gentleman in here

who was asked to come here by

some welfare agency so he's

just sitting here. We can't get

him to talk. It'sfecting people

pretty deeply. Once you have

little tears and everything

falls into place. It's very

traumatic. It's hard not to be

scared but it is a normal

process. Earthquakes like the Haiti earthquake, 7.0 Haiti

earthquake had a similar after

shock sequence so this is to be expected. But he warns they

could ego on for months.

Financial markets have spent the day with one eye on

economics and the other on

Federal politics. Shares

finished flat as the Reserve

and investors wondered what to

make of the election result.

Here's Phillip Lasker. These

days, interest rates are far

more predictable than politics.

As expected, the Reserve Bank

kept the official cash rate at

4.5%, that's four months in a

row. It decided the current level of rates level of rates was appropriate

for the time being, which is

code for, "We're probably going

to put them up eventually." But

not now according to the bank because the economy is growing close to average close to average speed,

underlying inflation is in the

RBA's 2 to 3% comfort zone and

the global outlook is

uncertain, in fact it may weaken. The street announcement

saw the market fall away but

there was some last-minute

buying to leave it a touch

lower. Events in Canberra mean

the resources tax will stay and

miners copped it. Weaker commodity prices didn't help

either. It looks either. It looks like the

national broadband network is a

goer as well. Telstra was done

a lot more earlier in the day announcements from Canberra and the Reserve Bank. It was a

different story with the banks except Macquarie group which is

still suffering from its 25% profit downgrade. This where

the politics and economics played out on financial

markets. The Australian dollar

took a hit when the Reserve Bank's interest rate decision

came out, probably because the

bank pointed to weakness and

uncertainty in Europe and the

US then it took another hit, a

little less than a quarter of a

kept, when Independent Tony

Windsor declared his support

for the Labor Party. Analysts

are putting that down to the

likelihood of a mining tax. The

Australian Dollar is still

pretty high though. It's still

worth more than 91 US cents and

that's finance. A simple dose of sunshine may be all it takes to to prevent schizophrenia

according to researchers. While

one in every 100 Australians

will be diagnosed with the

disease, the causes of the

illness remain a mystery but

now researchers have discovered that getting out in the sun a

bit more during pregnancy might

help. Medical reporter Sophie

Scott. Unravelling a complex

condition like schizophrenia

isn't easy. Its likely to be

caused by a combination of genetic and environmental factors. Now Australian researchers think pinpointed one important cause. What

cause. What we have shown with

this research is if you have

low levels of vitamin D this

has a negative impact on the developing brain. Scientists

already knew people with

stitsphrenia were more likely

to be born in winter. To see

how important sunshine or vitamin D is for brain

development, they used blood

samples taken through routine

screening of 800 new-born

babies. Those with low levels

of vitamin D had a 2-fold increased risk of getting

schizophrenia as adults. The

findings need to be confirmed

in larger trials but

researchers say it opens the possibility that pregnant women could

dose of sunshine or take a

vitamin D supplement in the

same way they're advised to take foalate to prevent spina

bifida. Researchers say the

chance to possibly prevent vent

a serious disorder like

schizophrenia through a simple public health message is within

reach. Australia's Sam Stosur

has been shown some mercy by

the organisers of the US Open.

Her quarterfinal match tomorrow

against defending champion Kim Clijsters has been Clijsters has been rescheduled. She'll now play at night,

giving her more rest time after

her late-finishing fourth-round

match. Today the top seed,

Caroline Wozniacki, underlined

had her favouritism with a

straight-sets win over former champion Maria Sharapova. John

Haye s Bell reports. Seasoned

campaign were Maria Sharapova

was seen as the biggest threat so far to Caroline Wozniacki's run in the US seed's power game was on show

but last year's runner-up is determined to go one step

furtherthism 20-year-old Dane

brushed aside Maria Sharapova

6-3, 6-4 to move into the last

8. Wozniacki will face Dominika

Cibulkova who upset another Russian, it was 7-5, 7-6

against another former US against another former US Open choump, Svetlana Kuznetsova.

Sam Stosur defeated Russian

Elena Dementieva in the latest

finishing US Open women's

singles match. She needs all

the time she can get to prepare

for Kim Clijsters. I have play

some of my best tennis and

fight hard. Swiss second seed

Roger Federer was given a solid

work-out by Austrian Jurgen

Melzer but the Swiss prevailed

and is into his 26th consecutive glam quarterfinal.

3rd seed Novak Djokovic will

play Frenchman Gael Monfils after overcoming American Mardy Fish. Australian golfers Geoff

Ogilvy and Jason Day have

finished equal second in the

latest PGA tour event. 33-year-old American Charley

Hoffman surged to a 5-shot win

with a final round 9 under par

62. Tiger Woods was 12 strokes behind the winner but has retained the number one

ranking. Socceroos coach Holger

Osieck has a fully fit squad to

choose from for the friendly

against Poland. I want to have

a look at everybody. A new

team under a new manager with a

new style and a new influence.

It will be the first senior international between the

nations. And boxer Danny Green will defend his IBO World Cruiserweight Belt against

unbeaten American BJ Flores in

Perth in November. Green is

seeking to rebuild credibility

lost during his most recent

fight against Paul Briggs which

lasted less than a round. I'm wondering whether my phone

number is still in these

people's phones because it used

lost it. This guy's coming to

take my title and I've got to

bite my tongue. Flores is the

north American champion. The

Raiders face an anxious wait

ahead of Saturday night's

qualifyingifiable against the

Panthers. Captain Terry Campese

could miss the game as he

awaits the birth of his first

child. His wife's due to give birth birth any day now, putting him

in doubt. We've trained as a

squad today, we'll do the same tomorrow. We've got some

options there, who we can use.

At the moment someone like

Herbert can't be used as he's

still injured but there is a couple of ideas there but we're

hoping that it all either goes well or hold on. Coach David

Ferner today named an unchanged

line-up for Saturday night's

final but there could be

changes, Alan Tongue, Adam Mogg

and Josh Miller haven't been

named but will be given to

Friday to show they're fit.

Prop David Shillington and

fullback Josh Dugan gongs at want to's Dally M

awards in Sydney. The stars

were out in Sydney last night

to celebrate the best theatre

and musical performances of the

year at the 10th annual

Helpmann Awards. There were the

usual winners and lose and a snub for our snub for our most prominent actress. With first-time host

Terry Campese centre stage,

this was a night for many of

Australia's performing artists

to be part of the to be part of the audience as

the industry honoured its own.

The hot ly contested musical

category was dominated by the

underdog 'Avenue Q', a quirky

adult puppet show. We're very

fond of the puppets. A great

Hume Puppet cast. But the

glossier Broadway hit 'Jersey

Boys' took out the big one, best musical. Bangarra Dance

Theatre cleaned up in the dance stakes, taking out all three

major awards and can Opera Australia's Peter Grimes sang

its way to the top of the

prizes. There's always a few

surprises in the Helpmann Awards about who's in and who's

out. This year the glaring omission was Cate Blanchett,

usually a winner she wasn't

even nominated for her critically acclaimed

performance in 'A Streetcar

Named Desire'. The play audiences from Sydney to New York to Washington. The

Oscar-winning actress was in

attendance though as a

presenter, leaving Julie

Forsythe to score best actress for Malthouse's 'Happy for Malthouse's 'Happy Days'. The Melbourne Theatre Company's

'Richard III' was a winning

vehicle for Ewen Leslie who

scooped the best actor award.

The much fancied opera 'Bliss'

bombed. Nominated 11 times t

took out two smaller awards in

spite of rave reviews at the

Edinburgh Festival. Another

Australian act making waves in

Edinburgh triumphed. Rock

singer turned cabaret supremo iOTA scooped the best new Australian work for 'Smoke and

Mirrors'. A remarkable colour

film has surfaced about life in

London during the German blitz

of World War II. The footage shows the destruction of

several of London's several of London's landmarks

including the John Lewis store

on Oxford Street and it captures the impact of the

raids on Londoners as they try

to carry on with their daily

lives. Tonight's raid opened

with a smashing Blair of

gunfire and bombs. During the

first few hours the raiders

came boring in and were aided

by the dim light of a pail,

watery quarter moon. So far

it's one of the heaviest raids

for many nights. The film was

shot by an amateur cameraman

and has only just been discovered by their family

hiddenen their attic. Its release comes on the 70th anniversary the Nazis launched a

devastating 8-month bombing

campaign on Britain. The

country's survival against all

the odds was regarded as one of

the turning points of the war.

And now with a look at today's

weather, here's Mark Carmody.

Thanks, Virginia and good evening. You could hear the

grass growing today and after

the recent wet weather along

with today's sunny skies, plus

if you'd thrown some fertiliser

about you need to do one thing

and gnats sharpen the blades

because you'll be cutting grass this weekend.

There's a band of cloud

associated with a trough approaching Adelaide but

further west a front will bring

showers to Perth tomorrow.

Along with that front there's

another one further west still

and these will get to our

region on Thursday afternoon,

bringing some showers with them

but before that a high will

give us another 3G day - grouse grass-growing day. Around

Australia tomorrow, showers increasing in Perth.

This is a sim biddian orced that one of our fine journalists mother's garden. Don't linger

too long tonight as the rusty

old lawn mower of yours needs sharpening. A brief recap of today's historic news Federal Parliament and Labor

has scraped back into power 17 days after the federal election. Julia Gillard has

formed a minority Government after Independents Rob

Oakeshott and Tony Windsor

decided to back Labor. The third rural Independent, Bob Katter, chose to side with the

Coalition, giving the

Government 76 seats to the

Coalition's 74. Tony Abbott

says he's disappointed but has praised his team and says he

intends to remain party leader. That's ABC News. Stay with us

now for a special edition of

the '7.30 Report'. Kerry

O'Brien will be interviewing

Prime Minister Julia Gillard

and Independents Tony Windsor and Bob Katter about today's

extraordinary events. Enjoy your evening. Goodnight Closed Captions by CSI This Program is Captioned Live.

Welcome to the program on

the day Australia's engrossing

political stand-off finally

ended. To Julia Gillard's immense

immense relief, and Tony

Abbott's deep disappointment,

and in keeping with the pattern

of the past 2.5 weeks the high

wire act of the three

out over much of the day. Bob

Katter first in the early afternoon, committing to afternoon, committing to the

Coalition and then in a and

thelisingly slow revelation at their press conference, Tony

Windsor and Rob Oakeshott gave

Labor just enough numbers to

claim Government with the smallest possible majority. If

Labor does manage to govern for

three years with six

cross-bench MPs in effect and

next year's new Senate where

the Greens have the balance of

power, it will the trick iest