Julia Gillard is one step closer to keeping Labor in power after securing the support of independent MP Andrew Wilkie to form a minority government.
Mr Wilkie says he decided to back Labor after Ms Gillard agreed to several requests, including $340 million for the Royal Hobart Hospital and restrictions on poker machines.
His decision means Labor has 74 definite seats, two short of the majority needed to secure power.
The Coalition has 73 seats if West Australian Nationals MP Tony Crook is included.
Mr Wilkie also revealed Opposition Leader Tony Abbott offered him almost three times as much for the Hobart hospital, but he turned it down.
“The ALP best meets my criteria that the government must be stable, competent and ethical,” he said.
As well as the $340 million for Hobart hospital, Ms Gillard has promised to open up a funding round of $1.8 billion for other hospitals.
Mr Wilkie says regional and rural hospitals should be considered as priorities in the applications for funding.
A Labor government would also force the states to implement “smart cards” on poker machines to restrict gambling if they do not agree to do it voluntarily.
“This is a fabulous commitment of the Prime Minister and will go a long way to reducing problem gambling in Australia,” he said.
However Mr Wilkie also warned his decision to back Labor only extends to issues of supply and no-confidence motions.
Mr Wilkie’s decision comes as the other three independent MPs are locked in talks while they consider which party to support in a minority government.
Rob Oakeshott, Tony Windsor and Bob Katter are today in back-to-back meetings in Canberra with Labor and Coalition figures.
The trio have also had lunch with mining magnate Andrew “Twiggy” Forrest, who is strenuously opposed to Labor’s mining tax.
Mr Oakeshott says he is likely to use the weekend to come to a final position.
Glenn Milne, The Drum: By signing on to support a minority Gillard Labor Government, Tasmanian Independent Andrew Wilkie may very well have also signed his own political death warrant at the next election. Read more HERE
