Wikileaks Leaks BAG Archives: Australia Related (Part-1)

READ all the Australian cables obtained by WikiLeaks.
77562

9/8/2006 6:10
06CANBERRA1366
Embassy Canberra
CONFIDENTIAL//NOFORN

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C O N F I D E N T I A L SECTION 01 OF 03 CANBERRA 001366 SIPDIS NOFORN SIPDIS E.O. 12958: DECL: 09/07/2016 TAGS: PGOV, PREL, MARR, PARM, AS

SUBJECT: AMBASSADOR'S INTRODUCTORY CALL ON OPPOSITION LEADER KIM BEAZLEY

Classified By: Ambassador Robert McCallum, Reasons 1.4 (b) and (d)

SUMMARY -------

1. (C/NF) Opposition Leader Kim Beazley told the Ambassador during his September 6 introductory call that the alliance continued to enjoy broad bipartisan support in Australia. The Labor Party, for its part, could be counted on to continue to support the alliance’s core elements of ship visits, the joint facilities, and joint exercises. If elected to replace Prime Minister John Howard, Beazley would maintain Australian forces in Afghanistan, since they represented a key part of the GOA,s response to the 9/11 attacks on the U.S. While he would also leave Australian troops in Baghdad to protect Australian diplomats and Australian naval forces in the Gulf, Beazley would make good on his longstanding pledge to withdraw Australian troops from southern Iraq. In other comments, Beazley urged that the U.S. release David Hicks if he could not be brought before a civil court, since most Australians would never accept his conviction by a military commission, maintained that the Howard government had had full knowledge of the Australian Wheat Board’s violations of the Iraq sanctions regime, and reiterated Labor opposition to any decision by the government to enrich uranium.

BIPARTISAN ALLIANCE SUPPORT ---------------------------

2. (C/NF) The Ambassador began his September 6 introductory call on Labor Party head and Opposition Leader Kim Beazley by noting that he looked forward to remaining in close touch with the opposition during his time in Australia. We greatly valued, he said, the bipartisan underpinnings for the Alliance here, and appreciated that Labor's continued support for our close ties was of paramount importance. In this connection, the Ambassador recalled he had already met with Shadow Foreign Minister Kevin Rudd, who had observed that the party leadership’s support for the alliance was not cost free, in terms of Labor’s internal dynamics (reported SEPTEL). Rudd had also provided a candid description of where Labor differed from the U.S. approach on certain issues, while reaffirming the leadership’s ironclad commitment to the overall alliance.

LABOR'S HISTORIC BACKING OF U.S. TIES -------------------------------------

3. (C/NF) Opposition Leader Beazley responded by recalling wryly that the Ambassador’s immediate predecessor, with whom he had enjoyed a very constructive relationship, was not adverse to taking Labor publicly to task on occasion. Although this had prompted criticism, Beazley said the former Ambassador was merely doing his job -- and doing it well -- of promoting his country’s interests. Australian politicians needed to be mature, and recognize that U.S representatives would react if their country’s policies were attacked. This came with the territory, and Labor officials had to be prepared to wear it.

4. (C/NF) Continuing, Beazley reinforced Rudd’s comments on Labor’s historically strong support for the Alliance, recalling that the immediate post-war Menzies-led Liberal government had real concerns over Washington’s policies at the time, which it believed promoted destabilizing decolonialization in Southeast Asia. Labor, by contrast, was guided by Prime Minister Curtin,s embrace of the United States during World War II as the region,s primary hope for a lasting postwar peace. This said, Beazley recounted that Labor had long recognized the relative power disparity between the United States and Australia on the international scene. The United States is invariably the elephant in the room, he said, and while Australia,s views may not always matter that much in Washington, the reverse was never true. Australians remained obsessed with the United States, and followed Washington,s every move, perhaps to a fault.

HIGH-LEVEL U.S. ATTENTION -------------------------

5. (C/NF) The Ambassador, in responding, cautioned Beazley against underestimating the esteem in which Australia was now held at the highest levels of the U.S. Government. The U.S. media too often could ignore Australia, but policy makers were keenly aware of the multifaceted interests that our two nations share, and that were driving our relations ever closer. In the meantime, the Ambassador told Beazley that he was committed to ensuring Washington had a comprehensive picture of Australian views, which meant those of the Opposition and well as those of the Government. At the same time, the Ambassador stressed his understanding of the key personal role Beazley had played as defense minister under the Hawke Government in defending and strengthening the alliance during crucial periods in the 1980s.

SOUTHEAST ASIA/PACIFIC FOCUS ----------------------------

6. (C/NF) Beazley affirmed that the alliance continued to enjoy broad bipartisan support in Australia. This did not mean, as Kevin Rudd had noted, that the Labor leadership did not have to pay certain costs within the party when it argued the alliance case. Nonetheless, Labor could be counted upon to continue to support the alliance,s core elements, which Beazley described as the joint facilities, ship visits, and joint training exercises. At the same time, Labor and the coalition government had different strategic policy outlooks, with Labor more focused on Southeast Asia and the Pacific region and the government less so, as a result of its preoccupation with the Middle East. The government, and Foreign Minister Downer in particular, had badly misstated the facts, Beazley charged, when Downer claimed in August of 2004 in Beijing that a conflict between the U.S. and China over Taiwan would not necessarily trigger Australia,s ANZUS obligations to aid the U.S. In the event of a war between the United States and China, Australia would have absolutely no alternative but to line up militarily beside the U.S., Beazley said. Otherwise, the alliance would be effectively dead and buried, something Australia could never afford to see happen. It was important for Washington and Canberra to do everything possible to prevent such a catastrophe, but Downer should have known better than to have given Beijing any notion that Canberra would be able to sit out a conflict. (COMMENT: Prime Minister Howard, subsequent to Downer,s Beijing remarks (which he insisted had been taken out of context), made clear Australia,s ANZUS alliance responsibilities would always play a key role in the nation,s decisions, while maintaining it was improper to speculate about hypothetical future situations. END COMMENT.)

REMAIN IN AFGHANISTAN, BUT LEAVE IRAQ -------------------------------------

7. (C/NF) Beazley continued that Labor also disagreed with important aspects of government policy toward the Middle East. Labor supported Australia,s military contributions in Afghanistan, and would continue to do so until Hell freezes over, since Australia,s actions clearly fell under its ANZUS obligations to respond to the 9/11 attacks on the U.S. Iraq was different, he maintained, and was a terrible mistake because it damaged, rather than strengthened, the overall war on terror. Labor would not commit an act of vandalism, however, if it came to power. Australian troops in Baghdad guarding Australian diplomats would remain, as would Australian naval forces protecting gulf oil terminals against terrorist attacks, although Beazley would make good on his longstanding pledge to withdraw Australian troops presently in southern Iraq.

FREE DAVID HICKS ----------------

8. (C/NF) David Hicks was a ratbag who had almost certainly been up to nefarious things, and should probably spend a long time in jail, Beazley said. Still, he predicted most Australians would never accept his conviction by a military commission, even if the Administration manages to structure one acceptable to the Supreme Court. Unless he can be tried by a civil court or by a fully constituted court marshal, it would be better, Beazley argued, to let him go. The British citizens who were released would never pose a threat again, CANBERRA 00001366 003 OF 003 since they were under constant surveillance by the UK authorities. Hicks would be no different, and would quickly fade into well-deserved obscurity.

AUSTRALIAN WHEAT BOARD ----------------------

9. (C/NF) Beazley maintained the Howard government had had full knowledgeof the Australian Wheat Board,s appalling bribes that undermined the sanctions regime against Saddam. It had repeatedly turned a blind eye to numerous indications of wrong doing, and had lied about what it had known and when. Not only had it sanctioned blatant wrongdoing, but the government had facilitated the destruction of the one mechanism that might have forced Saddam to satisfy international demands to prove he was not pursuing weapons programs. The U.S. had every reason to be outraged with Howard, and Beazley urged that Washington express disapproval.

NO TO ENRICHMENT ------------------

10. (C/NF) Australia should not pursue uranium enrichment, Beazley said, while repeating Labor,s public concerns that such a decision by Canberra would be detrimental to international counter-proliferation efforts. Other nations in Australia,s region would use Canberra,s decision to start programs of their own, and it would be virtually impossible to convince them Australia would not seek at some point to use the technology as the basis for a nuclear weapons program.

COMMENT -------

11. (C/NF) Beazley's Chief of Staff David Fredericks and DCM were also present at the meeting, which was very cordial throughout. Beazley, whose own personal support for the alliance has been evident for decades, clearly wanted to make the twin points that he has a deep understanding of its importance and that as Opposition Leader he recognizes most of the Australian electorate are not about to risk the country's security by choosing a prime minister with suspect credentials in this regard. Although the reasons for Mark Latham's loss to John Howard in 2004 are legion, Labor recognizes that his multiple, embarrassing pronouncements on issues affecting the alliance represented blunders of the first order. In this same vein, Beazley's office made a point of issuing a press release on his meeting with the Ambassador shortly after it concluded (which it cleared with us) underscoring Beazley's strong commitment to the ANZUS alliance. MCCALLUM


80743
10/5/2006 7:28
06CANBERRA1574
Embassy Canberra
CONFIDENTIAL//NOFORN

VZCZCXRO0361PP RUEHPBDE RUEHBY #1574/01 2780728ZNY CCCCC ZZHP 050728Z OCT 06FM AMEMBASSY CANBERRATO RUEHC/SECSTATE WASHDC PRIORITY 5872INFO RUEHPB/AMEMBASSY PORT MORESBY PRIORITY 1652RUEHWL/AMEMBASSY WELLINGTON PRIORITY 4760RUEHBN/AMCONSUL MELBOURNE PRIORITY 3191RUEHBAD/AMCONSUL PERTH PRIORITY 1742RUEHDN/AMCONSUL SYDNEY PRIORITY 1166RHEHNSC/NSC WASHINGTON DC PRIORITYRHHMUNA/CDR USPACOM HONOLULU HI PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 CANBERRA 001574 SIPDIS NOFORN SIPDIS E.O. 12958: DECL: 10/04/2016 TAGS: PGOV, ELAB, ECON, AS

SUBJECT: INTEREST RATES MORE IMPORTANT POLITICALLY THAN LABOR LAW CHANGES

Classified By: Political Counselor James F. Cole, REASONS 1.4 (b) and ( d).

SUMMARY

1. (C/NF) Interest rates will be a key political issue for the 2007 federal elections, according to a number of observers Embassy poloffs met with during a visit to Sydney. The consensus was that changes to the industrial relations laws will be at most a contributing factor. So far, the impact of the labor law changes on workers has been minimal given the strong economy and low unemployment. According to these observers, most Australian voters, thinking about their finances when they vote next year, will likely support the Coalition but they will not want the Government to continue controlling the Senate, as it does now. New South Wales (NSW) Labor Party Secretary Mark Arbib (Protect) noted that left-of-center parties have stressed a "national vision" for the future but security concerns have helped right-wing governments since 9/11.

INTEREST RATES BIGGER ELECTION ISSUE THAN INDUSTRIAL RELATIONS REFORM

2. (C/NF) During a trip to Sydney September 28-29, Embassy poloffs met with Garry Brack (Protect), Chief Executive of Employers First, Mark Lennon (Protect), Assistant Secretary of the Labor Council of New South Wales, Dr. John Buchanan (Protect), Director of the Australian Centre for Industrial Relations Research and Training at the University of Sydney, and Mark Arbib (Protect), General Secretary of the New South Wales Labor Party.

3. (C/NF) Mark Lennon, deputy director for the labor-union umbrella organization in NSW, said that while the changes to the industrial relations laws were a key issue for organized labor, the voters would be focused on the pocketbook when they voted next year -- and the key issue for them was interest rates. Given the large mortgages needed to buy the expensive real estate in Sydney, and the fact that most loans had adjustable interest rates, a rise in rates affected most voters' disposable income. Many voters were chary of Coalition Senate control, Lennon also maintained. With a healthy economy and stable interest rates they would keep the Government in power in the House but were less likely to vote for Coalition senators.

POST-9/11 SECURITY CONCERNS HAVE HELPED RIGHT WING PARTIES

4. (C/NF) Arbib echoed Lennon's sentiments on interest rates, noting that during the 2004 election campaign, PM Howard's standing in the polls always increased when he focused on interest rates, and conversely, decreased when he changed the subject. Not only does the strong economy help the Coalition, Arbib said, but post-9/11 security concerns were another factor. Left-of-center governments need to articulate a vision for the future, and unless Australia invests in its future it will only be a "quarry for the Chinese and a tourist destination for the Japanese." However, Arbib continued, the immediate issues for every voter are the economy and security, and the Howard Government currently holds the advantage on both. It will be a tough struggle for the Labor Party (ALP) to win the federal elections in 2007, Arbib admitted, but the ALP has a stronger team of young leaders coming up through the political system and he was confident for the future.

5. (C/NF) Arbib said Kim Beazley, because he was the opposite of the volatile Mark Latham, was the right man to lead the ALP at the present time. Arbib noted that the March 2007 state elections in NSW would be tough for the ALP. They had been in power for 12 years and were having some problems but the Opposition leader was inexperienced and not yet ready to challenge for the leadership. Coalition control of the Federal Government and ALP control of the states and territories was accentuated by the fact that the best Coalition political operatives gravitated toward Canberra, where they could get better jobs working at the national level. The best jobs for the good ALP politicians and staffers were in the state governments, which the ALP run.

6. (BIO NOTE: Young, dynamic and friendly, Arbib is reputed to be the leader of the right wing of the ALP (traditionally centered in NSW) and the one who chose Beazley to be the ALP CANBERRA 00001574 002 OF 002 leader after Latham. He also told us that he, unlike Beazley, supported Iraq as well as the war on terrorism in general.)

WITH A STRONG ECONOMY, WAGES INCREASE DESPITE NEW LABOR LAWS

7. (C/NF) Employer representative Brack explained that under the old awards system of industrial relations, an "award" issued by the Australian Industrial Relations Commission in response to a labor dispute increased compensation and benefits for a particular industry. That award would then provide the benchmark that would increase wages and benefits in other industries throughout the economy. This made it impossible for businesses to control labor costs and compete internationally, Brack said.

8. (C/NF) While the reforms instituted by the Howard Government in 1996 and amended in 2005 have provided more job-market flexibility and ended the steady increases in wages and benefits, the reforms have had little impact, Brack pointed out. With a growing economy and essentially full employment, the tight job market is continuing to push salaries higher. Employers are most concerned with keeping their skilled employees. In addition, Brack noted, many employees are covered by awards or state compensation laws that pre-dated the 2005 workplace law and have not yet expired.

9. (C/NF) Dr. Buchanan, whose research institute has done a number of studies on the new workplace relations laws, said that strikes were much harder to mount under the new laws and the unions had lost bargaining power. Skilled employees would be less affected by the changes than the 20 percent of workers at the bottom, who would lose many of their protections. Under the old awards system, this 20 percent was paid relatively well, forcing employers to use fewer workers more efficiently. Buchanan noted that New Zealand and the states of Victoria and Western Australia had undertaken similar reforms that dismantled industry-wide guarantees in favor of individual agreements and a few statutory minimum conditions. The result has been the growth of low-paying jobs and greater wage inequality, especially for women, young people and low-skilled employees.

10. (C/NF) The new industrial relations laws -- designed to give employers the ability to hire a more flexible workforce to compete internationally -- may be partially responsible for the fact that unemployment is at the lowest level in 30 years (4.9 percent). As Buchanan noted, under the old system employers had to pay their less-skilled workers relatively well, so they hired fewer. His fear -- and perhaps a fear of many Australians -- is that employers may now be able to create a class of so-called Walmart employees in Australia.

COMMENT

11. (C/NF) The economy and security appear to remain the issues over which the elections will be fought next year. The observers we spoke with stressed that PM Howard is a master politician who will lay claim to the country's current prosperity and keep interest rates lower than a Labor government would be able to do. He will also be a formidable campaigner in the fight to convince the electorate which party can best deliver on national security. OWENS


87931
12/4/2006 5:13
06CANBERRA1933
Embassy Canberra
CONFIDENTIAL//NOFORN
06CANBERRA1393|06CANBERRA1925

VZCZCXRO4930OO RUEHPBDE RUEHBY #1933 3380513ZNY CCCCC ZZHO 040513Z DEC 06FM AMEMBASSY CANBERRATO RUEHC/SECSTATE WASHDC IMMEDIATE 6410INFO RUEHPB/AMEMBASSY PORT MORESBY IMMEDIATE 1713RUEHWL/AMEMBASSY WELLINGTON IMMEDIATE 4869RUEHBN/AMCONSUL MELBOURNE IMMEDIATE 3568RUEHBAD/AMCONSUL PERTH IMMEDIATE 2049RUEHDN/AMCONSUL SYDNEY IMMEDIATE 1562RHEHNSC/NSC WASHINGTON DC IMMEDIATERHHMUNA/CDR USPACOM HONOLULU HI IMMEDIATE

C O N F I D E N T I A L CANBERRA 001933 SIPDIS NOFORN SIPDIS E.O. 12958: DECL: 12/03/2016 TAGS: PGOV, PREL, AS

SUBJECT: KEVIN RUDD IS NEW OPPOSITION LEADER

REF: A) CANBERRA 1925 B) CANBERRA 1393 Classified By: DCM Michael P. Owens for reasons 1.4 (b) and (d).

1. (C/NF) SUMMARY: Kevin Rudd won the vote in the Labor Party (ALP) caucus on December 4, beating Kim Beazley 49-39 to become the new leader of the Opposition. The press is reporting that the uncommitted caucus members swung to Mr. Rudd over the weekend. Voting for the shadow cabinet and other leadership positions has been postponed until Thursday. As ALP MP Bob McMullen (protect) pointed out to us Friday, Rudd is a strong supporter of the U.S. alliance. At his press conference today, Rudd reiterated that his support for the alliance was rock solid. However, he also backs the current ALP policy calling for a withdrawal of Australian troops from Iraq. Rudd will be the fifth ALP leader since 1996. END SUMMARY.

ALP ELECTS NEW LEADERSHIP

2. (SBU) Shadow Foreign Minister Kevin Rudd became the new Opposition Leader December 4 after winning a caucus vote over Kim Beazley 49-39. Current Shadow Health Minister Julia Gillard became Deputy Leader. The ALP caucus will meet Thursday to elect a new front bench. This will give Rudd and Gillard time to pick a new team that will not face parliamentary question time until next year. Kim Beazley's position had become increasingly difficult the past two weeks (see ref A), and Rudd and Gillard seized their opportunity. What had appeared on Friday as still a tight contest broke for Rudd over the weekend. In two polls released Monday, the public preferred Rudd-Gillard to Beazley-Macklin by 21 percent. The press was also reporting that Rudd supporters were leaking internal ALP polling over the weekend that mirrored the public polls.

NEW ALP LEADER'S ATTITUDE TOWARDS U.S. ALLIANCE

3.(C/NF) MP McMullen pointed out to poloffs Friday that Rudd and Beazley were both strong supporters of the alliance with the U.S. Rudd had noted to the Ambassador in September (ref B) that while the ALP had specific policy differences on issues like Iraq, it was committed to maintaining a strong alliance relationship. When asked about the U.S. relationship at his press conference today Rudd said his commitment to the alliance was "rock solid."

GENERATIONAL CHANGE

4. (C) In the end, the Rudd-Beazley contest did not appear to be bitter. The long-standing ALP factions did not vote as blocks in the caucus, and this may reflect the weakening of the factions within the Labor Party as a whole. In press conferences after the voting, both sides praised the other, with Beazley -- whose brother unexpectedly died today -- giving a warm, heartfelt farewell speech showing more passion than he had in months. The 57 year-old Beazley noted that this caucus election may reflect a generational change, with Rudd and Gillard both in their 40s.

5. (C/NF) COMMENT: Beazley was not connecting with the public. With the polls showing the ALP within striking distance of the Coalition, a switch to Rudd and Gillard made sense to most caucus members. As senior ALP politician Robert Ray (protect) told us last week, the key question in any poll is satisfaction rating, and those polls were showing that Beazley was unelectable despite a range of issues (interest rates, global warming, Iraq) that presumably should have made him competitive with Prime Minister Howard.

6. (C/NF) The ALP caucus also switched leaders several months before the last federal election, bringing in the initially popular but ultimately unstable Mark Latham to replace Simon Creen. Hardworking, smart, and serious, Rudd is no Mark Latham. However, the Mandarin-speaking intellectual Rudd is not an affable politician in the mold of Bob Hawke. His ability to connect with average Australians will be a big question in the lead-up to the 2007 elections. MCCALLUM




131994
11/29/2007 7:42
07CANBERRA1697
Embassy Canberra
CONFIDENTIAL

P 290742Z NOV 07FM AMEMBASSY CANBERRATO SECSTATE WASHDC PRIORITY 8636INFO AMEMBASSY BEIJING PRIORITY AMEMBASSY JAKARTA PRIORITY AMEMBASSY SEOUL PRIORITY AMEMBASSY SINGAPORE PRIORITY AMEMBASSY TOKYO PRIORITY AMCONSUL MELBOURNE PRIORITY AMCONSUL PERTH PRIORITY AMCONSUL SYDNEY PRIORITY CDR USPACOM HONOLULU HI PRIORITYSECDEF WASHINGTON DC PRIORITYNSC WASHINGTON DC PRIORITY

C O N F I D E N T I A L CANBERRA 001697 SIPDIS SIPDIS E.O. 12958: DECL: 11/28/2017 TAGS: PGOV, MARR, ECON, ETRD, AS

SUBJECT: RUDD ANNOUNCES NEW CABINET

Classified By: James F. Cole for reasons 1.4 (b) and (d)

1. (C/NF) SUMMARY: Prime Minister-elect Kevin Rudd announced his 20-member Cabinet November 29. It is a talented line-up that strikes a balance between different regions and the Labor Party's left and right-wing factions. Rudd honored his undertaking to retain his core economic team - Julia Gillard as Employment and Workplace Relations Minister, Wayne Swan as Treasurer and Lindsay Tanner as Finance Minister - in their positions. He surprised many observers by appointing Stephen Smith as Foreign Minister and Gillard as Education Minister on top of Workplace Relations and her position as Deputy Prime Minister. Rudd has appointed Joel Fitzgibbon as Defense Minister and former Australian Labor Party (ALP) Leader Simon Crean as Trade Minister. The other major surprise was the appointment of gaffe-prone shadow minister and former rock star Peter Garrett as Minister for the Environment, Heritage and the Arts while creating a new position of Minister for Climate Change and Water (the two most important components of the Environment Ministry) and giving it to Senator Penny Wong, a rising star who performed well during the election. The Cabinet will be sworn in on Monday December 3. We will report on the cabinet appointments in more detail, and provide a full list, septel. END SUMMARY

FOREIGN AFFAIRS

2. (SBU) Western Australia's Stephen Smith, currently Shadow Education Minister and close to former Opposition Leader Kim Beazley, will be Minister for Foreign Affairs. A former lawyer, Keating Government adviser, and State Secretary of the Western Australian ALP, Smith has a sharp mind and calm manner, although he has little experience in foreign affairs. In his press conference, Rudd cited Western Australia's time-zone (it is two hours behind eastern Australia and the same as several Asian countries) as an advantage of having Smith in the portfolio. Former Keating Government Minister Bob McMullan was touted for Foreign Affairs but will be Parliamentary Secretary to the Foreign Affairs Minister -- with responsibility for overseas development.

DEFENSE

3. (SBU) In Defense, Fitzgibbon's appointment is a reward for his solid performance in that portfolio and perhaps gratitude for helping deliver Rudd New South Wales support in his leadership coup 12 months ago. Assisting Fitzgibbon will be two Parliamentary Secretaries Greg Combet and new MP and former Australian Army lawyer, Mike Kelly. Combet is the former secretary of the Australian Council of Trade Unions and has no background in defense procurement, which is his new portfolio.

TRADE AND AGRICULTURE

4. (SBU) Former ALP leader Simon Crean, a minister in the last ALP Government, retains the Trade portfolio he held when Labor was in opposition. Former ALP spokesperson for Immigration, Tony Burke, is the new Minister for Agriculture. Having just finished his first term in Parliament, this is a significant appointment for someone Rudd called a "rising star" in his press conference. An accomplished politician who increased his margin of victory in the recent election in Qwho increased his margin of victory in the recent election in what was already a safe Labor seat, he is from Southwestern Sydney and is not likely to have much of a background in agriculture.

CLIMATE CHANGE

5. (SBU) Former Labor Environment and Water Spokesperson Peter Garrett has lost the climate change portfolio but will be Minister for the Environment, Heritage and the Arts. The Cabinet Ministry of Climate Change and Water will be held by South Australian Senator Penny Wong who performed very well during the recent election. (Wong visited the United States on an IVG earlier this year.) The former Foreign Affairs Spokesman Robert McClelland will be Attorney-General. Nicola Roxon continues her role in health for the ALP as the new Health Minister. She will have the unenviable task of trying to improve quality and control expenses in Australia'a state-run public hospitals. Martin Ferguson is new Minister for Resources, Energy and Tourism. His expertise is in transport and regional services. Senator Chris Evans, the former Labor spokesperson for resources from Western Australia, is Minister for Immigration and Citizenship.

A TOUGH LOAD FOR GILLARD

6. (C/NF) COMMENT: In September, Rudd broke ALP tradition by declaring that he would name the Ministry rather than cater to the demands of the various factions within the party. He appears to have chosen a capable team that contains a good mixture of youth and experience while also maintaining the balance between the factions. Gillard has a monumental task as the Minister responsible for overseeing the winding back of WorkChoices and implementing Rudd's "Education Revolution." Its unclear why she would take on two difficult portfolios and now that the Liberal Party has named the capable and high-profile Julie Bishop as its spokesperson on industrial relations (see septel), Gillard will have her hands full. While Smith may have little experience in foreign affairs, it is probable that the real foreign minister will be Kevin Rudd himself, a micromanager and former diplomat who was Labor's spokesperson for foreign policy. MCCALLUM