Australia’s New PM Abbott Unveils Cabinet, Promises Economic Stability

Australia’s new conservative Prime Minister Tony Abbott unveiled his first cabinet on Monday, appointing experienced lawmakers and promising a return to stable government after three years of often tumultuous minority centre-left rule.

Abbott, who won power in Sept.7 elections pledging stronger economic management, made only minor changes to his opposition line-up, with Joe Hockey appointed treasurer, as expected, while Mathias Cormann becomes finance minister, shifting from his assistant treasury portfolio.

Abbott’s Deputy Liberal Party leader Julie Bishop will become foreign minister, and will be the only woman in his 20-member cabinet, although several women were promoted to junior ministries.

“It is, I believe, one of the most experienced incoming ministries in our history, and I think it’s important to have experience as you move from opposition to government,” Abbott said in his first news conference since the elections.

Abbott will become Australia’s third prime minister in three months when he is sworn in by the country’s governor-general on Wednesday. He won a commanding majority in parliament on a platform to scrap taxes on carbon pollution and mining profits, as well as a popular pledge to curb the arrival of asylum seekers into Australia by boat.

After the previous Labor government switched prime ministers twice in three years, Abbott has promised a methodical government with no surprises, already outlining spending cuts totalling A$40 billion, tax reforms and a return to a budget surplus by 2016-17.

Abbott’s first cabinet also shifted trade responsibility from its minority partner in the incoming Coalition government, the Nationals Party, which has led a push for tighter rules on foreign investment in farms, handing the job to veteran Liberal Party colleague Andrew Robb.

One of the early tests the new government will face is whether to allow a proposed A$3 billion ($2.7 billion) takeover of bulk grain handler GrainCorp by U.S. Archer Daniels Midland. Nationals lawmakers are opposed to a foreign takeover of the country’s biggest agribusiness.

“I also want people here and abroad to understand that Australia welcomes foreign investment,” Abbott said. “It’s got to be the right foreign investment, it’s got to be foreign investment which is in our national interest.”

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