Gillard gets Greens on-board as post-election talks enter end game

Australia's Green Party today signed a deal formalising their support for Julia Gillard's Labor Party should the prime minister form the next government - in exchange for the creation of a dedicated climate change committee tasked with establishing a price on carbon.

The deal gives Labor 73 seats in the 150 member lower house, bringing the party level with the Liberal-led coalition, but still three short of the majority required to form a government.

Greens leader Bob Brown said today that the agreement does not represent a full coalition, but will give Labor an extra vote on the budget and other no-confidence motions.

"This agreement is a replacement of both the Labor and Greens commitments to dealing with climate change," he said.

The independent climate commission would be made up of lawmakers and scientists and will provide advice on the best way to charge polluters for emissions.

"We have set up a process that will set up a carbon price and tackle
climate change," Brown said. "It will be inclusive and there will be
other parties involved."

However, the deal does not guarantee the Greens support for any Labor legislation on carbon. During the previous parliament the Greens refused to support Labor's plans for a climate change bill on the grounds that its proposals for an emissions trading scheme were not seen as ambitious enough.

Earlier this year, the ruling Labor party was forced to shelve its plans for an emissions trading scheme until after 2012, due to staunch opposition in the Senate and wilting public support. The move contributed to Gillard's decision to mount a coup against then prime minister Kevin Rudd, which in turn prompted last month's inconclusive election.

Bookmakers today shortened their odds on Labor forming a government following the Greens deal, though the conservative coalition is still favourite to stitch together the support it needs to form a government.

Responding to news of the deal this morning, Liberal leader Tony Abbott said it gave the Greens significant power in any future Labor government.

"There will be a carbon tax, there will be a mining tax, there will be funding cuts for independent schools and there will never be offshore processing," he said.

The Liberals, many of whom remain sceptical about climate change science, have promised to scrap the carbon-trading plan and a proposed mining profits tax if they form the new government.

A small group of independents - Robert Oakeshott, Tony Windsor, Bob Katter and Andrew Wilkie - now hold the balance of power and are this week in Canberra for talks with the two main parties.

Environmental policy is likely to form a key part of the talks after Oakeshott hinted that improvements to climate change policy were critical if he was to support any deal.