Howard's power to deregulate

By GREG ANSLEY


CANBERRA - Australia is bracing itself for a renewed round of conservative reform following Prime Minister John Howard's fourth election victory, handing him power not enjoyed by any Government for more than two decades.

The unexpected surge in support that defied earlier polling and increased his majority in the House of Representatives also appears likely to allow him to control the Senate, previously a wilful chamber dominated by Labor and minor parties.

Business organisations are already lining up with their wish- lists for new industrial and other controversial laws that had been blocked in the Upper House by anti-Howard forces.

Howard's stunning victory also ensures that his United States-oriented foreign policy will continue to tighten ties with Washington and embroil Australian forces overseas.

The nation's troops will remain indefinitely in Iraq - rather than coming home as Labor leader Mark Latham had intended if he won power - and Australia will continue its involvement in such American initiatives as the "son of star wars" missile defence programme.

US President George W. Bush was among the first world leaders to congratulate Howard.

"Australia is a great ally in the war on terror, and John Howard is the right man to lead that country," Bush said, confirming the support Washington had expressed for the Prime Minister in the run-up to the campaign.

British Prime Minister Tony Blair, another member of the US-led Coalition of the Willing in Iraq, said he looked forward to continued close co-operation in "common interests and shared priorities".

With elections looming for Bush and Blair, both countries had followed the Australian vote closely.

The extent of Howard's victory astonished a country expecting a close election - possibly even a Labor victory - following polling that had showed the major parties neck-and-neck, even on Saturday morning as Australia's 13 million voters headed to the polls.

Howard, with the added weight and authority of incumbency, had run a brutal campaign against Latham, warning of economic incompetency, profligate spending and high interest rates, depicting Latham as a learner politician.

Labor's retaliation failed to dent the Government.

Nor did its alliance with the Greens, which surged to capture more than 7 per cent of the national vote - triple its performance at the last election - and to oust the ailing Democrats as Australia's third political force.

Instead, the Liberal-National Coalition swept across Australia, holding its most vulnerable seats and taking others from Labor in a two-party preferred swing of 2.13 per cent that will give Howard a majority of between 10 and 18 seats, depending on final results.

In the Upper House, the Democrats, who held seven seats, were decimated, losing the three seats contested in an election that included only half the Senate. The Democrats' votes appeared to have gone to the Government as well as to Labor and the Greens.

"It's a devastating result for us," former leader Natasha Stott-Despoja said.

The Greens seem likely to increase their representation in the Senate, with increased support across Australia.

But Howard is the big winner, taking enough of the vote to put him within range of 38 Upper House seats - 50 per cent of the Senate. A friendly new Senator from the Assemblies of God-backed Family First Party is also likely to be elected.

The Government and Family First swapped preferences during the campaign and, while refusing to be portrayed as a Government rubber stamp - it would oppose the full sale of telecommunications giant Telstra, for example - it shares many of Howard's positions.

Australia's new political landscape has delighted a "truly humbled" Howard, who promised to begin work immediately on the A$13.5 billion ($14.5 billion) worth of programmes outlined during the campaign.

"This is a proud nation, a confident nation, a cohesive nation, a united nation, a nation that can achieve anything if it sets its mind to it ...

"We have a strong economy, we are a nation that is respected around the world because we are prepared to stand up for what we believe in."

Conceding defeat, Latham said he honoured and respected the decision of the Australian people, and said he would be back.

As the extent of Howard's victory became clear, business staked its claims for a new reform programme.

The Business Council of Australia wish-list covered most of the areas previously blocked by Opposition parties, including tax reform and further workplace deregulation.