Gillard confident of forming new government; approaches independents

With none of the major parties securing simple majority in the cliffhanger Australian general election, the Prime Minister, Ms Julia Gillard, on Sunday sought to assure countrymen that she would deliver "stable and effective" government, amid hectic efforts to cobble up a coalition.

Describing Australia as "one of the strongest democracies" in the world, 48-year-old Ms Gillard, whose ruling Labour was dealt a crippling blow in key provinces of New South Wales and Queensland, said she was still hopeful of forming a government with support from independents.

Neither Labour nor the opposition Coalition led by 52-year-old, Mr Tony Abbott, looks like getting the 76 seats in the 150-member House of Representatives needed to form government in its own right, but analysts believe that Ms Gillard's party might get closer to the magic figure.

Australian Labour Party (ALP) national secretary, Mr Karl Bitar, said it "potentially" can win 75 seats "but only if all the cards fall the right way".

When the counting wrapped up last night before its resumption on Sunday, Labour and the Coalition each had won 71 seats while independents got three and Greens bagged one. Four other seats were too close to call.

Ms Gillard, the first woman Prime Minister of Australia, said it was now clear that the Labour had won the popular vote and this should be weighed carefully by independents who would now help decide which party governed.

Voters had clearly sent a message calling for a change in the way politics in Australia was conducted, Ms Gillard, who had entered into negotiations with independents to form government, said while vowing to consider reforms to Parliament.

"That is the conclusion. The Australian people are talking about changing politics," she told reporters.

"I've heard the voice of the Australian people. We are clearly at a historic moment," she said as she moved to assure voters that "as Prime Minister I will continue to provide stable and effective government."

As both Ms Gillard, a former industrial lawyer, and Abbott began negotiating with independents to form a minority government, the Prime Minister claimed her party has the "best prospect" of offering stability.

But Mr Abbott said the "savage swing" against Labour meant it had "lost its legitimacy" to govern and the public now expected change.

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