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Conroy keeps communications portfolio

Kate Lundy appointed parliamentary secretary

Prime Minister Julia Gillard says her new ministry delivers on a promise to establish a portfolio dedicated to regional Australia.

It will be headed by Simon Crean, previously responsible for education and workplace relations.

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

Ms Gillard earlier in the day announced former prime minister Kevin Rudd had been appointed foreign minister, replacing Stephen Smith, who moves to defence.

Mr Smith will be Labor's third defence minister in less than three years.

In a surprise move, Penny Wong takes the finance portfolio left vacant by Lindsay Tanner when he retired from federal politics at the August 21 election.

Senator Wong had been keen to move from the climate change portfolio following her failure to have parliament's upper house approve Labor's carbon pollution reduction scheme.

Greg Combet becomes climate change minister, a step up from his assistant role to Senator Wong.

Craig Emerson, one of Labor's better media performers, also has been promoted to cabinet, taking over the trade portfolio for which Mr Smith had responsibility since June.

Peter Garrett retains his place in cabinet despite being responsible for the botched home insulation scheme, but he loses the environment portfolio to take responsibility for schools, early childhood and youth.

"This is a special new responsibility for him," Ms Gillard told reporters in Melbourne.

There are four new ministers: Bill Shorten (Assistant treasurer and superannuation), Mark Butler (ageing), Jason Clare (defence procurement) and Gary Gray (special minister of state).

"Mr Shorten is a very talented member of parliament," Ms Gillard said, adding he had done an outstanding job as parliament secretary for disabilities.

The previous ageing minister Justine Elliot has voluntarily stepped aside from her ministerial position to become parliamentary secretary for trade.

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

Mark Arbib, one of the factional powerbrokers responsible for bringing down Mr Rudd, has not been rewarded with a cabinet position.

But Ms Gillard said he would be given "greatly increased responsibilities" for indigenous employment and development, social housing and sport.

Wayne Swan, as expected, remains treasurer.

Chris Bowen becomes the new immigration minister replacing Chris Evans, who moves to a jobs portfolio.

Martin Ferguson continues as resources, energy and tourism minister.

Joe Ludwig is the new agriculture minister replacing Tony Burke who adds communities, environment and water to his sustainable population portfolio.

Tanya Plibersek becomes human services and social inclusion minister while Kate Ellis picks up employment participation and childcare.

Nick Sherry is the new small business minister, a position previously held by Dr Emerson.

Warren Snowdon takes over from Alan Griffin, who retired to the backbench, as veterans affairs minister.

Ms Gillard opted to leave largely unchanged the portfolios of a number of cabinet ministers: Nicola Roxon (health and ageing); Jenny Macklin (families, housing, community services and indigenous affairs); Anthony Albanese (infrastructure and transport); Stephen Conroy (broadband, communications and the digital economy); Kim Carr (innovation, industry and science); Robert McClelland (attorney-general).

She has appointed as parliament secretaries two of the plotters who helped bring down Mr Rudd.

David Feeney will be asked to assist Mr Smith in defence, while Don Farrell will work with Mr Burke.

Other newcomers as parliamentary secretaries are David Bradbury, Julie Collins, Mark Dreyfus, Catherine King and Kate Lundy.

The ministry will continue to have a sharp focus on job creation and improving skills and education, Ms Gillard said.

It would also have a new focus on regional Australia, with a dedicated department within the prime minister's portfolio.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

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