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| Australia has its first woman PM | Australia has its first woman PM |
| (about 2 hours later) | |
| Australia's Julia Gillard has become the country's first female prime minister after Kevin Rudd stood aside from a party ballot. | Australia's Julia Gillard has become the country's first female prime minister after Kevin Rudd stood aside from a party ballot. |
| Mr Rudd took the step in the knowledge he would suffer an embarrassing defeat, correspondents say. | Mr Rudd took the step in the knowledge he would suffer an embarrassing defeat, correspondents say. |
| His successor said the government had been losing its way and she promised to make it strong for this year's general election. | His successor said the government had been losing its way and she promised to make it strong for this year's general election. |
| The Labor Party had suffered a sharp drop in support in opinion polls. | The Labor Party had suffered a sharp drop in support in opinion polls. |
| Ms Gillard, who was deputy prime minister before the challenge to Mr Rudd, stood unopposed at a vote of the Labor Party's 112 members of parliament at a meeting on Thursday morning. | Ms Gillard, who was deputy prime minister before the challenge to Mr Rudd, stood unopposed at a vote of the Labor Party's 112 members of parliament at a meeting on Thursday morning. |
| Finance minister Wayne Swan was elected the new deputy leader, also unopposed. | Finance minister Wayne Swan was elected the new deputy leader, also unopposed. |
| Ms Gillard was born in Barry Island in Wales, moving to Australia with her family at the age of four. | Ms Gillard was born in Barry Island in Wales, moving to Australia with her family at the age of four. |
| 'Losing its way' | 'Losing its way' |
| Emerging from the party vote at Parliament House in Canberra, Ms Gillard told reporters: "I came to the view that a good government was losing its way. | Emerging from the party vote at Parliament House in Canberra, Ms Gillard told reporters: "I came to the view that a good government was losing its way. |
| "I believe too I have a responsibility to make sure at the next election that Labor is there at its strongest." | "I believe too I have a responsibility to make sure at the next election that Labor is there at its strongest." |
| The tumble of events has been extraordinarily fast for at the start of this year the polls suggested that Kevin Rudd remained Australia's most popular prime minister in 30 years - since the days of Bob Hawke. | The tumble of events has been extraordinarily fast for at the start of this year the polls suggested that Kevin Rudd remained Australia's most popular prime minister in 30 years - since the days of Bob Hawke. |
| But the pivotal moment came when he decided to shelve the centrepiece of his environmental strategy, an emissions trading scheme. Many thought it was an act of political cowardice - gutless was the oft-heard word. | But the pivotal moment came when he decided to shelve the centrepiece of his environmental strategy, an emissions trading scheme. Many thought it was an act of political cowardice - gutless was the oft-heard word. |
| Since becoming leader of the Labor party in 2006, he had always been much more popular with the Australian people than with his colleagues in the Labor party. | Since becoming leader of the Labor party in 2006, he had always been much more popular with the Australian people than with his colleagues in the Labor party. |
| But after picking a fight with the resources sector over his plans for a super tax on their super profits, the polls slumped again. | But after picking a fight with the resources sector over his plans for a super tax on their super profits, the polls slumped again. |
| The party powerbrokers and factional leaders decided the government would fare better at the forthcoming federal election with Julia Gillard at its head. | The party powerbrokers and factional leaders decided the government would fare better at the forthcoming federal election with Julia Gillard at its head. |
| Read Nick's analysis in full | |
| On the issue of a planned super tax on mining, which had dogged Mr Rudd, she said she wanted a consensus. | On the issue of a planned super tax on mining, which had dogged Mr Rudd, she said she wanted a consensus. |
| "We need to do more than consult, we need to negotiate... we need to end this uncertainty," she said. | "We need to do more than consult, we need to negotiate... we need to end this uncertainty," she said. |
| "Today, I am throwing open the government's door to the mining industry and in return I ask the mining industry to open its mind." | "Today, I am throwing open the government's door to the mining industry and in return I ask the mining industry to open its mind." |
| She said the government would cancel paid advertising canvassing for the mining tax and in return would ask the mining industry to call off its campaign. | She said the government would cancel paid advertising canvassing for the mining tax and in return would ask the mining industry to call off its campaign. |
| On Mr Rudd, she said: "He was the leader who saw us through the global financial crisis. | On Mr Rudd, she said: "He was the leader who saw us through the global financial crisis. |
| "He came within a breath of brokering an international agreement on climate change." | "He came within a breath of brokering an international agreement on climate change." |
| For his part, Mr Rudd said he would devote himself to helping Labor get re-elected. | For his part, Mr Rudd said he would devote himself to helping Labor get re-elected. |
| "I have given it my absolute all and in that spirit I am proud of the achievements we have delivered to make this country fairer," he said. | "I have given it my absolute all and in that spirit I am proud of the achievements we have delivered to make this country fairer," he said. |
| "I am proud of the fact we kept Australia out of the global economic recession." | "I am proud of the fact we kept Australia out of the global economic recession." |
| Fall from grace | Fall from grace |
| Mr Rudd had called a late-night news conference on Wednesday to announce the ballot after Ms Gillard said she would stand. | Mr Rudd had called a late-night news conference on Wednesday to announce the ballot after Ms Gillard said she would stand. |
| Mr Rudd, who led Labor to a landslide election victory against the Liberal government in 2007, blamed "a number of factional leaders" within the party for plotting against him. | Mr Rudd, who led Labor to a landslide election victory against the Liberal government in 2007, blamed "a number of factional leaders" within the party for plotting against him. |
| Announcing he would stand in the leadership ballot, a defiant Mr Rudd had said: "I was elected to do a job. I intend to continue doing that job. I believe there is a strong body of support for the continuation of my leadership." | Announcing he would stand in the leadership ballot, a defiant Mr Rudd had said: "I was elected to do a job. I intend to continue doing that job. I believe there is a strong body of support for the continuation of my leadership." |
| But the BBC's Nick Bryant in Australia said that by Thursday morning Mr Rudd could not even muster enough support to contend the ballot. | But the BBC's Nick Bryant in Australia said that by Thursday morning Mr Rudd could not even muster enough support to contend the ballot. |
| His popularity had plummeted following setbacks on his mining tax plans and the shelving of an emissions trading scheme. | His popularity had plummeted following setbacks on his mining tax plans and the shelving of an emissions trading scheme. |
| Our correspondent adds that Mr Rudd has always been more popular with the public than with his colleagues - he is regarded as intellectually arrogant and aloof. | Our correspondent adds that Mr Rudd has always been more popular with the public than with his colleagues - he is regarded as intellectually arrogant and aloof. |
| So when his approval ratings started to slump, his critics within the Labor Party moved against him, Nick Bryant says. | So when his approval ratings started to slump, his critics within the Labor Party moved against him, Nick Bryant says. |
| Are you in Australia? What do you think of Australia having its first female prime minister? Send us your comments using the form below. | Are you in Australia? What do you think of Australia having its first female prime minister? Send us your comments using the form below. |