Australian PM announces new cabinet in Melbourne

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Australian Prime Minister Julia Gillard on Saturday announced her new cabinet for the Labor Government in next term, and confirmed that former prime minister Kevin Rudd would be given the Foreign Affairs portfolio.

The announcement came four days after Labor secured the support of two country independents to form a minority government in the first hung federal parliament in 70 years.

In a press conference in Melbourne, Gillard said she is keeping her promise to create a new department to look after regional Australia and has given Simon Crean the new Regional Affairs portfolio, who is previously responsible for education and workplace relations.

There are four new ministers: Bill Shorten will be Assistant Treasurer and Minister for Superannuation and Financial Services, Mark Butler will focus on Ageing and Mental Health, Gary Gray is the new Special Minister of State and Jason Clare will focus on Defense Procurement.

Former Foreign Affairs minister Stephen Smith has moved aside to allow Gillard to fulfill her promise to Kevin Rudd, the man she deposed as prime minister and Labor leader.

Smith will replace John Faulkner as Defense Minister, with responsibility for Australia's involvement in the war in Afghanistan.

Gillard also confirmed that Wayne Swan will remain Treasurer, former Climate Change Minister Penny Wong will serve as the new Finance Minister, and former Secretary of the Australian Council of Trade Unions Greg Combet has been promoted to Climate Change Minister.

Former Environment Minister Peter Garrett will now take on the Schools, Early Childhood and Youth portfolio.

"Making sure that we focus on education is vital, giving every child a chance of a great school education," Gillard said.

"That's why I have asked Peter Garrett to be the Minister for Schools, Early Childhood and Youth to continue a key focus on the education reforms that this Government has started to deliver and will continue to deliver," she said.

Health Minister Nicola Roxon, Community and Indigenous Affairs Minister Jenny Macklin and Industry Minister Kim Carr will all remain in their portfolios.

Labor Member of Parliament Craig Emerson is the new Trade Minister.

Kate Ellis has been moved from her Sport portfolio to Employment Participation and Childcare, and Mark Arbib has been promoted to Minister for Indigenous Employment, Social Housing and Sport.

Minister for Financial Services Chris Bowen will take over the Immigration Portfolio from Chris Evans, who will be the new Minister for Employment.

Meanwhile, Gillard said she had not spoken to the three country independents about the appointment of Crean to the regional Australia portfolio.

Opposition Leader Tony Abbott is expected to announce his new cabinet for the Coalition in coming days.

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