Poll advantage narrows for Australia's Gillard
CANBERRA (Reuters) - Australian Prime Minister Julia Gillard suffered twin setbacks on Monday after a poll showed her lead slashed ahead of an August 21 election and smaller miners resumed an advertising campaign against her new mining tax.
The Newspoll published in the Australian newspaper pointed to a revival in support for opposition leader Tony Abbott, who on Sunday was deemed a narrow winner of a televised election debate.
Abbott, who has promised to scrap the proposed mining tax if he wins office, was buoyed by the latest poll and his performance in the leaders' debate as he campaigned in the northern Queensland state.
"I do feel pretty good. It's quite a challenge going before a national audience, some critical journalists and your principal political opponent for a full hour. But I thought it went well," Abbott told Australian radio.
Gillard replaced Kevin Rudd as prime minister on June 24 and immediately sought to neutralise a tax fight with the booming mining sector by forging a deal with global miners BHP Billiton, Rio Tinto and Xstrata, and agreeing to cut the tax from 40 percent to 30 percent.
But small and mid-range mining companies are upset they were not included in negotiations, and their lobby group. the Association of Mining and Exploration Companies (AMEC), promised to resume an advertising campaign against the tax.
"We still have an enormous amount of uncertainty out in the industry," AMEC chief executive Simon Bennison told reporters in the western city of Perth. "Investment levels are at their lowest ... especially the exploration sector."
MINING TAX DEFENDED
Treasurer Wayne Swan defended the government's compromise on the mining tax, which is due to start in July 2012, saying it was good for small miners because it set a A$50 million (29 million pound) threshold before the tax kicks in.
"We have put in place in the final design, measures that the small miners asked for," Swan said in Perth.
The latest Newspoll found support for the ruling Labor Party fell to 52 percent from 55 percent a week ago, while support for the conservative opposition rose to 48 percent from 45 percent.
Gillard's rating as preferred prime minister tumbled seven points to 50 percent, while Abbott's rating climbed seven points to 34 percent.
The results still give Gillard an election-wining lead, but point to a closer result. The latest Reuters Poll Trend on July 22 gave Gillard a 7.0 point lead.
The latest poll was taken before the televised debate, but after Gillard on Friday announced her key climate policy which confirmed a delay of at least two years before the government will try to reintroduce its plan for carbon trading. Abbott is opposed to any carbon trade plan.
Gillard refused to comment directly on the polls or her performance in the debate, where audience meters found she was more popular with women voters than men.
"The judgement here is for the Australian people to make and they will make it on the 21st of August," Gillard told reporters in the southern state of Tasmania.
Both Abbott and Gillard on Sunday signalled major cuts to Australia's immigration intake, due to concerns from crowded outer suburbs in big cities.
But the move has angered business groups, who want immigrants to help fill labour shortages and sustain economic growth as the population ages.
About one in four Australians were born overseas, including both Gillard and Abbott. Both were born in Britain, but moved to Australia as children.
(Editing by Ed Davies)