Albanese rewarded with key regional job

PM Julia Gillard promoted Rudd backer Anthony Albanese (pic) in her new-look ministry. Source: AAP

PRIME Minister Julia Gillard has promoted Rudd backer Anthony Albanese in a reshuffle caused by last week's aborted leadership challenge.

Mr Albanese gets the additional portfolio of Regional Development and Local Government vacated by former minister Simon Crean who was sacked last week.

Ms Gillard is reshuffling her ministry for the sixth time since the 2010 election after Kevin Rudd on Thursday declined to stand for leader at the caucus meeting.

Four ministerial portfolios needed filling after Mr Crean was sacked and colleagues Chris Bowen, Martin Ferguson and Kim Carr resigned.

Ms Gillard said purpose had driven the government but unity had proved elusive.

"And that unity spectacularly eluded us last week," she told reporters in Canberra on Monday.

"Like Australians around the nation, I was appalled by the events of last week.

"My political party, the Labor Party that I love very dearly was self-indulgent.

"Our eyes were on ourselves rather than doing what we should have, being focused on the nation.

"It was an unseemly display."

Ms Gillard said out of that had come clarity and it was now clear she had the confidence of her colleagues to remain as prime minister.

"It is also clear that Kevin Rudd has appropriately acknowledged he will never lead the Labor Party again," she said.

"In these circumstances, the leadership contest that has been within the Labor party is over."

MP Catherine King will join the outer ministry as Minister for Regional Services, Local Communities and Territories, and as Minister for Road Safety.

Ms Gillard also announced that Gary Gray would join the cabinet as Minister for Resources and Energy, Minister for Tourism and Minister for Small Business.

Minister for Home Affairs and Justice Jason Clare has also been elevated to cabinet as a full member and will maintain his current portfolios.

Senator Jan McLucas will become the new minister for human services after serving as parliamentary secretary to the prime minister and parliamentary secretary for disabilities and carers.

"I am delighted that I have been able to promote Jan to this role," Ms Gillard said.

The minister for Trade and Competitiveness, and minister Assisting the Prime Minister on Asian Century Policy, Craig Emerson, will also take on the portfolio of Tertiary Education, Skills, Science and Research.

As well, the Department of Climate Change will be merged with the Industry Department to become the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education.

Ms Gillard said the ministers who resigned had taken the honourable course.

She said Mr Albanese, who is also the government's leader in the house and infrastructure and transport minister, had provided a public explanation of his position in regard to his support for Kevin Rudd.

"I have always been able to work with Minister Albanese well," Ms Gillard said.

"He has been very central to the life of this government and I believe he will serve very well and with a very strong sense of loyalty into the future."

Ms Gillard also announced several new parliamentary secretaries.

Andrew Leigh has been appointed Parliamentary Secretary to the Prime Minister, while Matt Thistlethwaite becomes Parliamentary Secretary for Pacific Island Affairs and Parliamentary Secretary for Multicultural Affairs.

Michael Danby has been named Parliamentary Secretary for the Arts, to assist environment minister Tony Burke in his additional role as Arts Minister.

Bernie Ripoll will be Parliamentary Secretary for Small Business, and Amanda Rishworth will Parliamentary Secretary for Sustainability and Urban Water and Parliamentary Secretary for Disabilities and Carers.

Shayne Neumann will be Parliamentary Secretary to the Attorney-General and Parliamentary Secretary for Health and Ageing.

When he stood down last week, Mr Ferguson accused Labor of engaging in a class war and urged the government to stand for all Australians.

Ms Gillard defended her relationship with the business community.

"We as a political party have always been dedicated to ensuring there is opportunity for all," she said.

She said while Mr Ferguson was entitled to his views, Labor traditionally taxed areas of the economy which were very profitable.

A Labor government introduced the Petroleum Resource Rent Tax, and more recently the Minerals Resource Rent Tax.

Ms Gillard also disagreed with Mr Ferguson that the government needed to take example from the reforming Hawke/Keating Labor government.

"We do govern in the Hawke/Keating tradition," the prime minister said.

She said her party believed in the power of markets and their role in a modern economy.

"I believe you can have well functioning markets that enable you to run a nation and a society of fairness, something that (Opposition Leader) Tony Abbott doesn't believe in," she said.

"Just look at his climate change policy. It would make a Soviet central planner blush."

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