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Australia’s Labor to form government with support from independents

Australia's Labor Party has won crucial support from two independent MPs giving it the 76 votes it needs to form a government.
Independent MP Bob Katter said earlier this afternoon that he would back the Coalition, while other independents Tony Wind

NBR staff
Tue, 07 Sep 2010

Australia’s Labor Party has won crucial support from two independent MPs giving it the 76 votes it needs to form a government.

Independent MP Bob Katter said earlier this afternoon that he would back the Coalition, while other independents Tony Windsor and Rob Oakeshott have backed Labor.

The national broadband network (NBN) was a key issue in the election - arguably the only substantive issue - and in the three independents' post-ballot deliberations (read NBR's August 22 story, Aussie independents lean toward Labor on Crown fibre).

In a message just minutes after Mr Oakeshott finally announced his decision, market analyst Paul Budde said "There was a combined sigh of relief in (most of) the telecoms industry when the Independents decided to support a Labor government."

Ms Gillard also topped NBN promises with a $A10 billion rural spending package including money for education and infrastructure spending.

MORE: 
The Australian: $10bn regional package seals Labor win
The Australian: Independents rescue Labor from ruins
Sydney Morning Herald: The Chosen One
The Age: Gillard at last

Earlier, Mr Budde told NBR that although the three were rural conservatives, they were all in favour of the $A43 billion public-private fibre project. They saw it as a positive regional development initiative, and rural voters wanted better broadband.

The opposition coalition, dominated by the urban Liberal party, had mooted a much smaller-scale initiative led by the private sector. It wanted to "recall" of the structural separation of Telstra; a centrepiece of Labor's NBN plan.

"Individual companies got out of their comfort zone in support of the NBN and with a so clear demarcation line between Labor and Liberal they as such made a political statement," said Mr Budde.

NBN supporters included Macquarie Telecom, iiNet, Internode, Singtel-Optus and Primus while "Telstra’s absence in the debate also provided at least silent support in favour of the NBN," the analyst said.

Not your father's NBN
Ovum research director Kevin Noonan was more circumspect.

"The NBN will continue. [But] is not yet clear what concessions have been made to the independents," he wrote.

"We think it likely that the NBN rollout will focus on rural Australia over the term of this parliament."

NBR staff
Tue, 07 Sep 2010
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Australia’s Labor to form government with support from independents
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