Gillard's u-turn puts strain on deal with Greens

Australian Prime Minister Julia Gillard. Photo / Greg Bowker

CANBERRA - Tensions are growing between Prime Minister Julia Gillard's minority Labor Government and the Greens as critics claim the relationship is becoming a poisoned chalice.

Gillard is back-pedalling on support she gave for a Greens bill to allow the Australian Capital Territory and the Northern Territory more freedom to make their own laws by removing existing ministerial powers to veto their legislation.

The bill is now being seen by powerful forces within Labor and by the Opposition as a Trojan horse for the Greens' social agenda, which includes same-sex marriage and euthanasia.

Gillard needs the support of the Greens and independent MPs to govern, a dependence that will increase when the Greens assume the balance of power in the Senate in July.

Labor is already under heavy attack for its dealings with the Greens - including Gillard's planned carbon pricing scheme, proposed as popular support for climate change measures declines and anger increases against Labor MPs and independents who support the move.

The latest row follows a decision by the Labor Caucus on Wednesday to support a Greens bill that would remove the power of ministerial veto over territory laws, replacing it with "checks and balances" requiring the votes of both Houses of Parliament.

The federal Government has previously blocked territorial legislation allowing same-sex marriages, injecting rooms for addicts and euthanasia, although the Greens bill would not override the conscience vote that killed the NT's euthanasia law in 1997, after four assisted suicides.

Greens Leader Bob Brown said the bill was designed to give the ACT and NT the same democratic rights as other Australians.

But angry Labor MPs have claimed support for the bill was rushed through Caucus, and a delegation met Gillard to demand a rethink.

Treasurer Wayne Swan yesterday described fears that the bill could allow same-sex marriages in the territories as entirely legitimate. Gillard supports Labor policy against same-sex marriage.

She said yesterday Labor in the past had supported similar moves to increase the ability of the territories to make their own laws, but several MPs had expressed concerns about the breadth of the bill.

She supported an Opposition move to refer the bill to a Senate inquiry, but denied MPs had raised concerns about the influence of the Greens on the Government.