Australia’s first woman PM Julie Gillard calms economic tensions

12 April 2012

Australia's ruling party removed prime minister Kevin Rudd today in a stunning revolt that also gave the country its first woman leader.

Mr Rudd's deputy, Julia Gillard, 48, was elected leader in an uncontested vote about 12 hours after she surprised colleagues by challenging a prime minister who until recently had been among the country's most popular.

Mr Rudd was one of the West's few Chinese-speaking leaders and helped broker the Copenhagen climate change agreement, but his quick removal showed his party — who regarded him as a hero for winning power after 11 years in opposition — had lost faith in his ability to win a second term.

Many foreign policies, including Australia's 1,500-strong military contribution to the war in Afghanistan, are not likely to change under Ms Gillard.

But her elevation immediately eased tensions between the government and big mining companies over a proposed tax on "super profits" from booming mineral and energy sales to China and India.

Ms Gillard quickly ended an advertising campaign that promoted the tax, keeping a Labor promise never to use taxpayers' money for political advertising that Mr Rudd had broken.

The world's biggest miner, BHP-Billiton, responded by suspending counter-advertising that claimed the new tax would cost jobs and investment in the mineral sector, which is driving Australia's economic growth.

Ms Gillard, who was born in Barry, Wales, and went to Australia with her parents when she was four, said her government was willing to negotiate on the proposed tax. Opinion polls show the tax debate is harming the government's re-election bid this year.

"I have said to the mining companies of this nation publicly that the government is opening its door, and we are asking them to open their minds," Ms Gillard told Parliament.

Mr Rudd rode high in opinion polls until he made some major policy U-turns, including shelving plans in April to make Australia's worst polluters pay for their carbon gas emissions.

Ms Gillard, a former lawyer and state government political staffer, was part of Mr Rudd's inner circle and is regarded as one of the best communicators in the Australian parliament. She was sworn in by Quentin Bryce — Australia's first female governor-general.

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