June 27, 2013 – 11:27
By James Grubel

CANBERRA (Reuters) – Kevin Rudd was sworn in as Australian prime minister for the second time on Thursday, a day after toppling Julia Gillard and three months ahead of elections in which opinion polls show the ruling Labor Party faces a devastating defeat.

Rudd’s return as prime minister follows three years of squabbling within the Labor leadership and as the world’s 12th largest economy faces challenges stemming from a slowdown in top trade partner China.

Rudd, a Mandarin-speaking former diplomat, has highlighted the difficulties associated with “the end of China’s resource boom” and said he would work to rebuild the government’s strained relations with the business community.

He left open the option of changing the September 14 election date, telling parliament that prime ministers had the right to choose the date.

“There is not going to be a huge variation one way or the other,” he said.

Australian business was scathing of the political instability and urged Rudd to abandon laws that strengthen trade union access to the workplace and tighten rules for temporary skilled immigration.

“Our tolerance factor with instability in the leadership of Australia’s government is at breaking point, matched only by a swathe of anti-business policies which have brought business frustration to boiling point,” said Peter Anderson, chief executive of the Australian Chamber of Commerce and Industry.

“The economic challenges facing Australia, especially our declining competitiveness, high cost structure and low confidence, are serious.”

The favourite to win the coming elections, opposition leader Tony Abbott, has promised to scrap a carbon tax and a 30 percent tax on iron ore and coal mine profits if he wins power.

He has also promised tighter control of public spending, a speedier return to surplus budgets and stronger economic growth.

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