Abbott seizes conservative high ground

New Australian Opposition leader Tony Abbott has cemented his shift to the right to confront Prime Minister Kevin Rudd on what he regards as the conservative high grounds of the economy, industrial relations and asylum seekers.

While nudging his vulnerability on climate change to the background, Abbott yesterday rewarded key supporters in the emissions trading battle that felled predecessor Malcolm Turnbull with senior posts in his shadow Cabinet.

And while denying that the Opposition's new line-up is a shift back to the glory days of former Prime Minister John Howard, his rhetoric and the restoration and promotion of former Howard ministers confirms a return to the conservative heartland.

Abbott has already unleashed an attack on Rudd's economic management - strengthened by the recent series of interest rate rises - and on his inability to stem the continuing stream of boat people from Indonesia.

Further ammunition came on Tuesday from Rudd's meeting with state and territory leaders, which failed to produce any real action on the Government's promised, but much-delayed, reform of Australia's ailing health system.

Rudd has increased funding to the states, but has not yet made good his threat to take over the hospital system if the states were unable to improve their performance.

Abbott is also targeting Rudd's A$43 billion ($55 billion) national broadband network, which he described as a prime example of the Government's vulnerability on waste.

He has also foreshadowed a new industrial relations policy that will unwind Rudd's reforms and shift back towards the free-market approach that marked Howard's Government.

And Abbott has moved to heal rifts with the junior Coalition partner, the rural-based Nationals, whose unhappiness with the Liberals peaked as Turnbull tried to ram his ETS deal with the Government through the Senate.

Yesterday Abbott pulled Nationals Senate leader Barnaby Joyce into the shadow Cabinet as finance spokesman, despite a volatile and outspoken career that has in the past seen him rebel and vote with the Government.

Nationals leader Warren Truss retained his job as trade, transport and regional development spokesman.

South Australian senator Nick Minchin, a former Howard finance minister, has been promoted to energy and resources spokesman - a key position for a confirmed climate change sceptic and implacable opponent of the ETS and Turnbull.

Another Howard-era minister and conservative, Tasmanian senator Eric Abetz, has been given workplace relations, a job central to the platform Abbott will be taking to the next election.

Three other former Howard Ministers were also named in the shadow ministry, including Phillip Ruddock and Kevin Andrews, two controversial former immigration ministers responsible for implementing and overseeing draconian policies on asylum seekers.

Andrews is now families spokesman and Ruddock is the non-voting shadow Cabinet secretary.

Former Aged Care Minister Bronwyn Bishop returns as shadow Seniors Minister. Shadow Treasurer Joe Hockey, a Turnbull ally and the unsuccessful third contender in the leadership ballot, will stay on as shadow Treasurer.

Scott Morrison, formerly housing and local government spokesman, takes on the key immigration portfolio.

Abbott said the team would focus on giving the Government "the fright of its life".