Australian PM survives challenge

Australian prime minister Julia Gillard convincingly won a leadership vote against rival Kevin Rudd today, just as opinion polls…

Australian prime minister Julia Gillard convincingly won a leadership vote against rival Kevin Rudd today, just as opinion polls showed her unpopular minority government clawing back voter support despite the bitter fight to head the party.

In a victory news conference, Ms Gillard said the battle in the Labor Party had been "ugly" and that Australians were fed up with the political brawl, but promised her government would now unite and put voters first, adding she was convinced Labor could win the next election due by mid-2013.

"Today I want to say to Australians... the leadership question is now determined," said Ms Gillard, who won the vote 71 to 31, ending former foreign minister Mr Rudd's hopes of returning as prime minister before the next election.

"I understand that many Australians will have their doubts that after this fight Labor will come together in a united way. We have come together before and we will do so now," she said."I absolutely believe that united we can win the next election. I will take Labor to that election and I am confident we can win that election."

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Leading pollster Newspoll today showed that Labor was recovering some ground, rising two points to 47 per cent, though it still lags the opposition's 53 per cent.

"I accept fully the verdict of the caucus and I dedicate myself to working fully for her re-election as the prime minister of Australia, and I will do so with my absolute ability dedicated to that task," Mr Rudd told reporters after the vote.

Ms Gillard said she would soon announce a new foreign minister to replace Mr Rudd, but may use the opportunity for other ministerial changes and to demote ministers who backed her challenger.

She will also need to replace assistant treasurer Mark Arbib,  who helped engineer the coup against Mr Rudd in 2010 and who announced he would leave politics today, saying his resignation was a gesture of goodwill to help unite the party.

Mr Arbib sits in the upper house Senate and his resignation will not threaten the minority government, as his seat will be filled by another Labor candidate.