CANBERRA—Labor today played down its poor result in the Gippsland by-election, as Opposition Leader Brendan Nelson won credit for his part in helping the Nationals retain the seat.
The Rudd Government shrugged off the 8.5 per cent swing against it in the by-election for the federal Victorian seat, brought about by the retirement of former agriculture minister Peter McGauran.
Instead, the Government tried to turn attention to measures coming into effect from tomorrow, including around $7 billion in tax cuts, a lift in the childcare rebate and an education tax refund.
After yesterday suggesting the tough May budget may have played a part in the result, Prime Minister Kevin Rudd today said the crucial issue for the Government was to govern.
"Opinion polls come and go and by-elections will come and go," Mr Rudd told reporters.
"(For us) the challenge is this, to govern for the future."
Senior ministers maintained that Labor had never expected to win the seat, which the Nationals have held for 86 years.
"I don't think we ever had any realistic expectation of winning the seat," Foreign Minister Stephen Smith told ABC radio.
"It's not a seat we've won at a general election so after a tough budget you have got to be sober about your prospects."
The result appears to have taken some of the pressure off Dr Nelson, whose leadership would have been under scrutiny had Labor snatched a win.
His ambitious treasury spokesman, Malcolm Turnbull, credited Dr Nelson for his role in the coalition victory and said there was no pressure on his leadership.
"Dr Nelson has the support of the entire party, so he is our leader," Mr Turnbull told ABC radio.
"The Gippsland result is a great credit to the whole of the Liberal Party and the National Party working together.
"And of course, as leader, Brendan, and of course, Warren Truss, the Nationals leader, can take a fair share of the credit for that."
Dr Nelson mocked Mr Rudd for blaming a tough budget for the swing against Labor.
"Mr Rudd is trying to suggest that this is a result of so-called hard decisions that he's had to make," Dr Nelson told reporters.
"I remind Mr Rudd that when John Howard was elected in 1996, after a very tough budget to deal with Labor's $100 billion in debt that had been left, there had been a five per cent swing to John Howard in the Lindsay by-election in western Sydney."
The result in Gippsland clears the way for other former ministers - such as Alexander Downer in Mayo, Peter Costello in Higgins and Mark Vaile in Lyne - to exit politics without fear of further electoral losses.
Mr Downer is widely tipped to make an announcement on his future this week.
But a speech he was due to give on Wednesday on life after being foreign minister - where it was thought he may give a clue as to his plans - has been cancelled due to a death in the family.
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