Australian PM hopes of retaining office boosted by pact with independent MP

The Telegraph ^ | 9/2/2010 | Mark Chipperfield in Sydney

[bruinbirdman]

Julia Gillard, the Australian prime minister, moved closer to retaining office yesterday after an independent MP pledged support following disclosures over a blackhole in the opposition's budget plans

Julia Gillard is the front runner in the battle for independent support

Miss Gillard's Labour Party is now just two seats away from sealing an overall majority after election victory after winning support of Tasmanian MP Andrew Wilkie, a day after the announcment of a pact with the Green Party.

Tony Abbott's Liberal/National coalition emerged as the single largest party in the Australian election but fell three seats short of a majority. With five non-aligned MPs holding the key to victory, the large parties are attempting to lure support by opening their manifesto pledges to negotiation.

Treasury Department bureaucrats dealt a blow to Mr Abbott by declaring there was a shortfall in the Opposition's forward estimates, ranging from A$7 billion to A$11 billion.

Independent MPs Tony Windsor and Rob Oakeshott, whose support is vital in the formation of a future minority government, have demanded an explanation about the shortfall from Coalition leader Tony Abbott, who disputes the findings.

"That's a lot of money," said Mr Oakeshott. "It's more than what I've got in my wallet."

Mr Windsor says he has not entirely ruled out the possibility of backing a minority Coalition government, but points out that the Treasury revelation does raises important questions of trust.

"It's not a game-breaker, but it places some question marks within my mind at least," he said. "It's not so much about numbers as it is about what people went to the election on, and the trust that we can have in them."

Almost a fortnight after Australia went to the polls, Miss Gillard, who has been in office just two