Prime Minister Julia Gillard has seized the initiative to try to form government, beginning preliminary negotiations with the Australian Greens and independent MPs.
"It's my intention to negotiate in good faith an effective agreement to form government," Ms Gillard told reporters in Melbourne on Sunday.
Australia is facing the prospect of a hung parliament, the first since 1940, after neither Labor nor the coalition had the 76 seats to form government in their own right.
A final result is unlikely to be known for days.
Ms Gillard claimed the mandate to form minority government on the basis Labor had the bigger two-party preferred vote.
She admitted it was clear neither party had earned the right to govern in its own right.
"(But) it now appears clear that Labor has won the two-party vote," she said.
Re-elected independents Tony Windsor, Rob Oakeshott and Bob Katter have all received a phone call from Labor as did a possible fourth independent Andrew Wilkie.
The prime minister met personally with likely Greens MP Adam Bandt and his party leader Bob Brown in Melbourne on Sunday.
Ms Gillard said she would lead negotiations with the independents and Greens assisted by her deputy Wayne Swan.
"Negotiations will be conducted with propriety, with integrity, with diligence," she said.
Ms Gillard said a majority of Australians voting on Saturday preferred a Labor government."
The prime minister said that was "critical fact" to weigh in the coming days.
Ms Gillard said the election result showed voters wanted change.
"I believe last night's election result and the strong performance of independents and Green candidates reflects a desire for change in the way politics is conducted in our nation."
Ms Gillard said discussions with the independents and Greens had been "preliminary only" and would continue in coming days as the election count became clearer.
Australians were saying they wanted to see a change in the business of politics and the way politics was conducted.
"They probably want to see more openness," she said.
"Now I am not going to preclude at this stage any of the good ideas that might flow from discussions to be had over the days ahead with the independents and with the Greens.
"But I think the message from the Australian people is they do want to see a change to the way politics is conducted."
Ms Gillard said no party would be able to pass legislation in the Senate without the support of the Greens and the other major party.
"The question before all of us is this: Which party is better able to form a stable and effective government in the national interest?" she said.
"Which party can proceed and process the business of the Australian people and get legislation passed though the parliament?"
Labor could deliver "real progress" on the agenda it outlined in the election campaign, Ms Gillard said.
Asked if internal leaks against her in the second week of the campaign had deprived Labor of a majority, Ms Gillard said it had been a "tough campaign" for Labor.
"This is not a time for introspection, this is a time for dealing with the circumstances arising from the election campaign," she said.
"What I owe the Australian people is to use the best of my efforts and the best of my labours to talk, to think, to consult to create a stable government."
Ms Gillard highlighted the national broadband network as one of Labor's "great policies" that would appeal to rural and regional Australia.
"I particularly believe in the power of the national broadband network for the whole of our nation, the transformation it will bring to regional communities, to communities that feel the pressure of distance," she said.
Labor made a conscious decision to make an announcement about rural health care using the broadband network at its campaign launch, she said.
Ms Gillard said she wouldn't be compromising her values when it came to negotiating with the Greens and independents.
"I'll never be compromising on my values," she said.
If Labor formed a minority government, the prime minister said she would still make the major decisions.
"I will obviously seek views but I will make the decisions."
On the future of former prime minister Kevin Rudd, Ms Gillard was still promising to give him a ministry if Labor is able to form government.
"Should the government be re-elected out of this process, yes of course (he will get a ministry)," she said.
Ms Gillard tried to soothe worries and uncertainty that a hung parliament would bring to the community and financial markets.
"My words today are to say to the Australian people, to markets, we are a robust democracy, with clear conventions and rules. Stability in government continues in this period," she said.
Subject: Gillard trying to form government 
August 22nd 2010, 9:18 am
