Australian PM unveils new cabinet

Australian prime minister Julia Gillard unveiled her new cabinet today, with Wayne Swan retaining his treasury portfolio and …

Australian prime minister Julia Gillard unveiled her new cabinet today, with Wayne Swan retaining his treasury portfolio and former climate minister Penny Wong moved to the senior finance portfolio.

The new ministry is Ms Gillard's first chance to put her stamp on the government since the ruling Labor Party dumped former prime minister Kevin Rudd in late June, as she made only minor changes to the cabinet ahead of the August 21st national elections.

In a bid to heal some of the internal tensions over her move against Mr Rudd, Ms Gillard gave the former prime minister the senior role of foreign minister in her new government.

Ms Gillard kept Martin Ferguson in the key resources and energy portfolio, where he will be crucial to pushing through plans for a 30 per cent tax on the profits of big iron ore and coal mines.

In other changes, former union leader Greg Combet was promoted into a cabinet position as minister for climate change to replace Ms Wong.

Mr Combet, a political trouble-shooter known for his negotiating skills, faces the task of drawing up a plan to put a price on carbon pollution, blamed for global warming, and finding community consensus for action against climate change.

Former foreign minister Stephen Smith was moved to defence, where he will be responsible for policy on Afghanistan, where Australia has around 1,600 troops. Former small business minister Craig Emerson becomes trade minister.

Ms Gillard last week secured a second term in office in the aftermath of last month's close election with the support of three independents and a Green MP. Hers will be the first minority government since World War Two, raising concerns the administration will be unstable and may not run its full term.

Reuters