Australian new PM addresses parliament, praising predecessor

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Australian new Prime Minister Kevin Rudd gave his first speech in the Parliament House on Thursday and praised his predecessor Julian Gillard.

Rudd, who was sworn in by Governor-General Quentin Bryce earlier in the day, told fellow parliamentarians that he had been commissioned as prime minister by Governor-General Bryce. His commission was accepted without a "no-confidence" motion by the federal opposition.

Rudd praised his predecessor Julia Gillard, saying he acknowledged Gillard's great achievements in taking the Fair Work Act through parliament and in gaining greater funding for Australian schools. "Through the difficult years of minority government the former prime minister has achieved major reforms for our nation that will shape our nation's future," he said.

"On top of all that, I acknowledge her great work as a standard bearer for women in our country, Australia's first deputy prime minister, Australia's first woman as prime minister."

Rudd is expected to announce his new cabinet line-up on Friday. He has to fill in the cabinet posts vacated by Gillard supporters including Deputy Prime Minister and Treasurer Wayne Swan, Minister for School Education Peter Garrett, Minister for Climate Change Greg Combet, Minister for Trade Craig Emerson, Minister for Communications Stephen Conroy and Minister for Agriculture Joe Ludwig.

The Rudd government is now faced with a lot of policy challenges ahead, with asylum seekers and the economy top the agenda ahead of the federal election.

The prime minister's first priority is to get a briefing from Treasury officials over the weekend on the state of the budget and the Australian economy. At the press conference Wednesday night, Rudd has already raised concerns that Australia's mining boom is waning and he would set out a plan to diversify the economy, help small business, invest in new infrastructure and bolster manufacturing. Australian Associated Press reported that the new Treasurer Chris Bowen has already been in talks with peak business groups.

Rudd told the parliament that he would also seek advice of national security agencies on how to deal with people-smuggling, a critical election issue.

In a bid to deal with the Opposition's carbon tax attack, Rudd is widely expected to move forward the end of the fixed carbon price period by a year to 2014, easing pressure on business but lowering the money reaped by the scheme.