Australia heading for a hung parliament
Updated on 21 August 2010
As Australia appears to be heading for its first hung parliament in 70 years, Network Ten journalist Daniel Sutton tells Channel 4 News that the balance of power lies in the hands of a handful of independents.
The latest survey by Newspoll put the ruling Labor party on 50.2 per cent of the vote compared to the Liberal Party-led coalition's 49.8 per cent. Newspoll has predicted the correct result in all 48 federal and state elections it has surveyed since 1985.
Another polling firm, Morgan Poll, also predicted a tight race.
Welsh-born party leader Julia Gillard has struggled to hang onto support following a last minute surge towards her opponent Tony Abbott.
Originally written off because of his frequent gaffes and right wing views - Abbott, who was born in London, campaigned hard on issues such as immigration and paying down government debt - and opposing Labor's plans for new taxes to tackle climate change.
Ms Gillard became Australia's first woman prime minister in June after ousting her predecessor, Kevin Rudd. She has been accused of running a lacklustre campaign, which has been overshadowed by continued rows over the leadership coup that led to Mr Rudd's resignation. He was deposed after Labor activists thought he had no chance of winning the election.
Speaking from Australia Network Ten journalist Daniel Sutton told Channel 4 News a hung parliament is likely and the "balance of power lies with several independents".
He said: "It looks like we are headed for a hung parliament in Australia. At the moment both sides of politics are deadlocked. We have three or four seats still undecided, but it looks like the balance of power will be with several independents - about five or so who have been elected.
"And so now both parties are locked in negotiations trying to work out with those independents who can offer them the sweetest deal to try to form a government.
"Three of the five independents who have won seats tonight do have some links to the conservative side of politics.
"Perhaps Tony Abbott and his conservative coalition may be able to open up some discussions with them. However two of the independents are opposed to one of his key policies - they support the introduction of a national broadband network in Australia, allowing high speed internet so perhaps Tony Abbott and the conservatives here, may have to relax their stance on this policy if they want to negotiate with these independents."
Speaking to Australian morning television programmes as the polls opened on Saturday, Gillard continued to pitch herself as the best choice to continue leading the nation.
She said: "I'm advocating with passion my positive plan for the nation's future. I'm not contemplating the days beyond. My focus is on today and the choice that Australians will make, a positive plan versus taking a risk with Mr. Abbott of the return of Work Choices and direct cuts that he has promised to schools and health care."
Later, she cast her vote in Melbourne.
Joined by his family, Abbott kicked off the day by manning a barbecue breakfast at his local surf club.
He said: "This is a big day for our country. It's a day when we can vote out a bad government. It's a day when we can vote in favour of a competent stable government which respects the tax payer's dollar."
The tight race has led to tempers flaring among campaign staff, who have coming to blows in the street. There have been several allegations of assault involving candidates or members of their team and both leaders have ordered their supporters to calm down.
Final campaigning has been frantic, with both Gillard and Abbott accused of resorting to scare tactics in an effort to win over voters in marginal constituencies.
Gillard mingled with shoppers in Sydney last night, warning that her opponent posed too much of a risk: "Tony Abbott is too great a risk to your family's future and your local economy", she declared.
Abbott claimed "a Labor win will mean a mining tax that threatens jobs and investment. A carbon tax will drive up process for Australian families and make our economy less competitive."
If no party wins outright, an incoming minority government might have to depend on a few independent or Green MPs to survive.
Such a move could jeopardise some of Labor's most controversial policies, such as plans to introduce a 30 per cent mining tax and a carbon trading scheme to tackle global warming.
However Labor could be helped by the country's complex voting system - by picking up second preference votes from unsuccessful Green party candidates.
Australia's major newspapers have been split in their endorsements. Sydney's Daily Telegraph has backed Abbott - using Barack Obama's slogan on its front page to say "Yes, He Can".
The Sydney Morning Herald called for a "second chance" for Labor - arguing that the party had managed to steer Australia through the world financial crisis without sinking into recession.
Gillard also received more unlikely support from a psychic crocodile in Darwin. Dirty Harry predicted a Labour win by chomping on a dead chicken dangled over her image.
However analysts have warned the prospect of an inconclusive result would put pressure on the Australian dollar - which, say experts, could fall by as much as five per cent if the election produces a hung parliament.
