Brendan Nelson has again been forced to defend himself after speculation over his future as opposition leader, saying he is determined to see the job through.

While conceding he faces a tough job in holding on to the Liberal leadership, Dr Nelson said he was "extremely confident" in his position.

"This is a job that is as hard as it is important and that's why I am determined to see it through and that's why I'll keep doing what I'm doing," he told ABC TV.

"These are hard days, hard yards, four-and-a-half months after an election with a change of government after almost 12 years," he said.

Everyone always knew and respects the fact that it's a challenging task, (but) I'm very confident in my position and I will continue to lead the opposition and to ensure we have effective, inspiring alternative policies for Australia."

Dr Nelson was emphatic in saying he had the numbers to retain the leadership, but refused to elaborate, preferring to shift the discussion to his much maligned "Listening Tour".

"I'm not going to speculate about any of those sorts of things," he said.

"The things that are of most concern to Australians is feeding, clothing and housing their children ... (getting their) kids into education, getting health care - all the things I've learned as I've gone (around) Australia over the last few weeks.

"I think the last thing people want is internal speculation about positions in the opposition."

-aap-ninemsn.com.au

The FuelWatch scheme will force metropolitan and regional petrol stations to publicise their prices for the following 24 hour period at 2pm each day in a bid to give motorists more choice.

A 2007 report from the competition watchdog predicted the program could shave two cents a litre of the price of petrol.

FuelWatch is already operating in Western Australia and will start nationally by December 15.

What we want to do is ensure motorists are not paying one cent more than they have to at the bowser," Mr Rudd told reporters.

"What we want to do is ensure that motorists are able to buy the cheapest petrol at the cheapest prices at the cheapest petrol stations and at the cheapest times."

FuelWatch will be headed by the Australian Competition and Consumer Commission (ACCC) petrol commissioner Pat Walker, who previously ran the WA program.

The plan was met with criticism from the opposition and motoring groups over concerns FuelWatch would mean an end to the weekly discount cycle.

"I think we've got to be concerned that Mr Rudd's creating this petrol price commissioner which is really just another pair of hands at the ACCC," Opposition Leader Brendan Nelson told reporters in Brisbane.

"The battlers who are filling up early in the week are likely to lose the discounting that they get early in the week."

Opposition competition policy spokesman Peter Dutton said Mr Rudd had to nominate a price drop that would mark FuelWatch a success.

Mr Howard was speaking in Brisbane at a function to celebrate his life in politics.

He spoke of his pride in the achievements of the Coalition government in his 11 years as prime minister.

Mr Howard says he will do everything he can to help the party win government again.

"It's a party of enormous depth and resilience," he said.

"It has a great future. It's had a great past, but very importantly it has a great future."

Sympathising with the party's current leader Brendan Nelson on the difficulties of Opposition, Mr Howard said he remembered other hard times for the Liberal Party.

"Just as we came through those difficult years long ago, we'll come through those difficult years again."

Mr Howard defended the economic record of his government and criticised Labor for not supporting the Coalition's economic reforms.

He says Labor is talking down the economy internally, while boasting of its strength when overseas.

He also says the Labor Party cannot take any credit for Australia's economic prosperity over the past decade.

"Almost every single measure that we undertook in Government - either in any of Peter Costello's 12 budgets or other measures that we undertook that was designed to reduce debt or strengthen the Australian economy - was opposed root and branch by Mr Rudd and his colleagues," he said.

He offered his support to Opposition members and told those gathered he had been lucky to be involved with the Liberal Party.

"It's been my good fortune to have had your support and your loyalty and your friendship over so many years, and I shall remember it for the rest of my life."

Six hundred people attended the Liberal Party fundraiser, including current federal Liberal leader Brendan Nelson and other state and federal MPs.

Tickets sold for $150 a head for party members and $250 for non-members.

The speech is Mr Howard's first public appearance in Australia since his November election defeat.

-abc.net.au

ABC 1's Four Corners program has been told property developers now factor in large donations to NSW politicians as part of the cost of doing business in the state.

Developer Hardie Holdings has admitted to paying almost $500,000 in seven years to gain access to state ministers and lobbying the NSW Government to rezone a large area of land in the Hunter Valley for housing.

NSW Planning Minister Frank Sartor stepped in to rezone the land in 2006 against the advice from his department but has denied the decision had anything to do with political donations.

The development - a new town called Huntlee that will house about 20,000 people - is one of the largest ones personally approved by Mr Sartor.

Hardie bought the 1,700 hectares of land for an estimated $75 million.

Immediately after Mr Sartor stepped in to rezone half of it for housing, the company sold it to another developer for $185 million, retaining a 25 per cent share of the project and netting an instant profit of more than $100 million.

Hardie Holdings general manager Matt Somers has told Four Corners, which airs tonight at 8:30pm, developers have to pay hundreds of thousands of dollars in donations to gain access to State Government ministers.

"It's part of the business environment at the moment that people pay donations, not for approvals. They don't pay for approvals, they pay to get access..." he said.

"No-one wants to pay them if you don't have to. We happily support good candidates. We've felt we've paid the money to ensure we have access when we required it...

"We've just dealt with it as a factor of business."

Political historian and ALP member Professor Peter Botsman agrees donating money is necessary to get the ear of the NSW Government.

"There's a relationship established around a donation to a political party which brings also a personal phone relationship and a conversation at a critical time - maybe all that is needed," he said.

Dismal opinion poll results have renewed leadership tensions within the Liberal Party ranks.

It has been reported the backbenchers who gave Dr Nelson a narrow victory over Malcolm Turnbull for the leadership are beginning to shift their allegiance.

But Dr Nelson has told the Victorian Liberal State Council he has got what it takes to win the next federal election.

"I have always succeeded at everything that I've set out to achieve in my public life. I don't intend to do anything less with this," Dr Nelson said.

"I've had people underestimating me for 20 years and it seems nothing has changed."

Dr Nelson says the poll results are not surprising given the party's election defeat.

"If we get this right, we can do this. What we read in polls - and I don't intend to comment on any of those - there should be nothing surprising about any of that for where we are at the moment," he said.

Former Liberal deputy leader Peter Costello says the backbench supports Dr Nelson.

"I don't know who'd engage in such speculation," Mr Costello said.

"Not as far as I'm aware, I thought he put in a very good performance."

-abc.net.au

There has been increasing speculation about his leadership, which has been marked by poor opinion poll results.

There are reports of rising backbench discontent with his performance and a renewed push by treasury spokesman Malcolm Turnbull to unseat him.

Dr Nelson, in Melbourne for today's meeting of the Victorian Liberal Party, says he is here to stay.

"I am very determined and I will keep fighting and speaking up for everyday Australians, I assure you I'm going nowhere," he said.

He has addressed the Council, saying he believes he can become the next Prime Minister.

"If we have inspiring and attractive policies, founded by our beliefs and informed by what everyday Australians want and think, we will do this," he said.

"I have always succeeded at everything that I've set out to achieve in my public life. I don't intend to do anything less with this, and we will do it.

"I've had people underestimating me for 20 years and it seems nothing has changed."

They are aged between 15 and 24 at the moment, but by 2020 they could be Australia's business leaders and policy-makers.

Federal Youth Minister Kate Ellis and acting Prime Minister Julia Gillard will address the group this morning before the delegates break into groups for discussions.

They will be talking about the same 10 topics as the main forum and 10 people will be chosen to represent those views next weekend.

There has already been some concern about the need for a separate youth forum, though.

Tim Goodwin, 24, feels like it makes young people feel less significant.

"Having a youth summit a week before kind of feels a bit like you're at the kids table, and I think that it's really important that young people force their way onto the agenda in a way that means that it's inescapable to listen to their opinions," he said.

Tim Quadrio, 22, is looking forward to the opportunity to talk about how he sees the future of Australia. But he agrees that young people's views need to be taken seriously.

"A lot of people say that young people are the future of our country, but I think there's a problem with that because young people are the current as well, and to say there is this one amorphous group called young people is troublesome," he said.

Dr Nelson secured the Liberal leadership in November, defeating Mr Turnbull 45 votes to 42.

Since then, his Newspoll approval rating has dropped as low as 7 per cent, before bouncing back to 9 per cent on Tuesday.

Sources quoted by The Australian newspaper suggest the Liberal Party is considering dumping Dr Nelson within months.

The sources say there are no immediate moves to remove Dr Nelson as Liberal leader, but timetables being considered factor in the Opposition Leader's budget reply speech next month, and the looming Gippsland by-election brought on by Nationals MP Peter McGauran's recent decision to quit.

Dr Nelson is due to address today's meeting of the Victorian Liberal Party.

The Victorian Liberals are meeting for the first time since the federal election loss, looking to rebuild the party.

Dr Nelson will discuss the challenges faced by the party across the nation.

Party state director Julian Sheezel says Dr Nelson and the state Opposition Leader Ted Baillieu will focus on a range of issues.

"One of the key focuses of this weekend's State Council is to consider options for a series of workshops for the reform and renewal of the Liberal Party," he said.

-abc.net.au

Federal Trade Minister Simon Crean says officials will hold their first meeting in New Delhi next week and the study is expected to be completed early next year.

He says the study will look at how a Free Trade Agreement might take the economic partnership between Australia and India to a stronger level.

India is Australia's fastest growing major export market.

-ab.net.au

The Government is reducing its spending in an effort to curb inflation, but Opposition Treasury spokesman Malcolm Turnbull says most economists believe the Government's cuts will have little impact.

He says the Government would need to slash at least $5 billion immediately to have an influence.

Mr Tanner says the extent of the budget cuts are yet to be determined and he says Mr Turnbull's claims are based on figures he has made up.

"We haven't set a particular target for that because obviously nobody knows what the economic circumstances will be in say, three years time. So I think he is just making things up again," he said.

The Government has promised significant spending cuts as part of its effort to curb inflation.

Mr Turnbull says most economists believe the Government would need to cut at least $5 billion immediately if it wants to have an influence.

"The cuts in spending that you have to make would have to be very big," he said.

"What Labor has been talking about as I understand it, is $10 billion over the forward estimates, over four years," he said.

"That is not going to make ... any material impact on aggregate demand."

-ab.net.au

During his recent trip to Washington Mr Rudd said it was clear that human rights abuses were being committed in Tibet, and on Wednesday he repeated those claims during a speech in Mandarin at a university in Beijing.

But Chinese Government officials say his comments are unfounded.

Communist Party Central Committee spokesman Si Ta has criticised Mr Rudd at a Beijing press conference.

"The reporter mentioned about the certain politician who expressed concern about China's human rights record. This particular politician should join us in condemning the violent crimes in Lhasa - the crimes that have violated human rights," he said.

Tibetan Regional Government chairman Xiangba Puncog also disagreed with Mr Rudd's comments and echoed Mr Si's view on human rights.

"Australia, or other countries, should have better appreciation and understanding of the fact that people in Tibet are now enjoying democracy and have wonderful human rights protection, and those remarks are totally unfounded," he said.

But Mr Rudd says he will not be backing away from his plan to raise his concerns with the Chinese leadership.

"It's important, as I said in my speech earlier today, to have a relationship that is capable of handling a disagreement and putting views in a straight-forward fashion," he said.

"That's what I said I'd be doing in my remarks earlier today, and that's what I will be doing. I stand by the comments I made earlier on this matter."

He has also supported Australians' right to turn their back on the Olympic flame.

"You know one thing about Australia [is], it's a robust democracy. We live in a free country - people can express their point of view in any manner that they choose," he said.

China is angry over Mr Rudd's comments during a press conference with US President George W Bush earlier in his world tour, when he said it was clear that human rights abuses were being committed in Tibet.

He encouraged the Chinese Government to discuss the future of Tibet with the Dalai Lama, and promised to raise the matter in Beijing.

The Chinese Government has responded by making a verbal complaint to Australian diplomats in Canberra and in Beijing, where Mr Rudd arrived today on the final leg of his world tour.

A spokesman from the Department of Foreign Affairs says the Australian Government holds strong views on Tibet and stands by its comments.

Mr Rudd is due to meet Chinese Premier Wen Jiabao tommorrow.

The Australia-Tibet Council says it wants Mr Rudd to use his visit to China to push for the cancellation of the Olympic torch relay through Tibet.

The council's executive officer, Paul Bourke, says taking the torch through Tibetan areas would be highly provocative and could result in further violence.

"They're preparing with massive influx of police, clearing a path through Tibet," he said.

"The only way the torch can proceed through Tibet is under virtual martial law, or it will result in uprisings which will further endanger the Tibetans in Tibetan areas."

-abc.net.au

Mr Rudd says he is a lifelong republican and it is part of the Labor Party platform, but it is not his top priority.

He has met the Queen at Windsor Castle and pointed out that she is highly respected in Australia.

Mr Rudd has been pressed on what his timetable is for restarting the process towards an Australian republic and says he expects it will grow in significance during the next year.

"I expect that in the course of the year ahead you'll have an accelerating public debate about the republic," he said.

"I welcome that we should do that, we're a democracy and we'll be looking carefully at the way in which that debate unfolds."

British Prime Minister Gordon Brown says the decision on whether to become a republic is up to Australians.

"This is a matter for the Australian people," he said.

"We welcome the strength of the relationship between the two countries, we believe that that relationship is stronger, but any decisions about the future are a matter for the Australian people."

-abc.net.au

Ahead of a meeting with the Queen in London, Prime Minister Kevin Rudd has reaffirmed his republican status, but says it is not his top priority.

Dr Nelson says he is happy with the current constitutional arrangements and does not think the republican debate should be re-opened.

"There are many Australians, many members of the Liberal Party that would like to see a republic, but the one thing upon which I do agree is that it's not a top order priority," he said.

"I mean the real priorities at the moment are petrol, groceries and home loan interest rates and making sure small business can survive."

-abc.net.au

The retirement of former Howard government minister Peter McGauran has put renewed pressure on Mr Costello and Mr Downer to spell out their plans.

Dr Nelson has told Fairfax Radio he hopes the Liberal Party heavyweights decide to stay on.

"I'd like them to stay," he said.

"In the case of both of these men, the amount of experience they've acquired in a long period of time, particularly Downer as the longest-serving foreign minister and a valuable resource when it comes to foreign policy, [as] Peter Costello is in treasury and finance."

It is believed Mr McGauran is poised to announce that he has taken up a job as the chief executive of Thoroughbred Breeders Australia.

-abc.net.au

Mr Rudd, who is also preparing for a high-level meeting with British Prime Minister Gordon Brown, made his comments in an interview with the BBC.

"I'm sure Australia will begin talks about this and debate it as time goes by," he said.

"Our position is pretty clear. We are committed to an Australian republic. I'm a republican. And that's what I will work towards over time.

"But it's not a top-order priority right now."

Mr Rudd stressed that the Queen is a highly-respected figure in Australia.

Mr Rudd has already been in informal talks with Mr Brown during the Progressive Governance summit, but the meeting at Downing Street tonight (Australian time) will be the first formal discussions between the pair.

-abc.net.au

During the week federal Opposition Leader Brendan Nelson questioned the bid, lobbying for which could cost taxpayers $35 million.

Speaking on ABC1's Insiders, Mr Smith said there are many benefits to being a member of the council and that as a top economy, Australia needs to "punch above our weight" in terms of foreign affairs.

He says Australia has a responsibility to do more in the international community.

"We are a significant country. We have a robust parliamentary democracy, a well-developed economy and we should be taking our values, and our virtues to the world, accepting our responsibility as a regional leader and making our points about international and global issues," he said.

But Mr Smith says the Government will not compromise its standing on foreign and public policy just to win a seat at the table.

He says Australia has played past roles in the Security Council and can now lead the way toward modernising the UN to reflect today's world, in terms of climate change, millennium development goals and international trade.

"The permanent membership should be changed to reflect the modern reality - having on the permanent membership Japan for example and India for example," he said.

"That much more reflects the modern world than the current institution.

"Our attitude is, be in there, be active, be robust. That's a much better approach than our attitude of the immediate past, which was to stand outside and throw rocks at the building. That doesn't actually help."

-abc.net.au

Mr Costello previously said he would probably leave parliament during this parliamentary term to pursue a business career.

Media reports today suggest a delegation of Liberal MPs have approached Mr Costello, urging him to stay in parliament and seek the party's leadership.

But Dr Nelson says there is no basis to the story.

"I think speculation is the accurate word, I don't see any substance to it at all," he said.

"I just say to you, as I've said before publicly and I'll say it again, Peter [Costello]'s earned the right to do what he thinks is best for his family and his electorate, but personally I'd be very happy for him to stay.

"Peter Costello has earned the right, over a long period of time, being Australia's treasurer among other things, to make a decision that he thinks is in the best interests of his constituents and his family and I've also said publicly I'd be very happy for him to stay."

-abc.net.au

The Howard government used up much international credit accumulated over the previous 30 years. Fixed, as we are, on good news and praise, this reality has not been conveyed by public servants (who were fearful of the consequences of conveying bad news) and by the media who, by and large, wilted in front of Howard's bullying. There are good people of influence in many countries who are waiting to see how Australia will reposition itself and they will be guided by the substance of real achievement.

Whilst there have been some welcome changes to bring Australia back into line on domestic and international law relating to refugees, 4,000 Australian islands remain excised from Australia including Christmas Island which houses a new and large refugee detention centre. Australia maintains a policy of turning back refugee boats and continues an unhealthy relationship with Indonesia over the issue of refugees.

Rudd's Sorry Statement, whilst welcome, still needs the passage of time to demonstrate practical change and the restoration of fairness in the workplace has yet to take place, although no doubt it will.

Rudd's middle power statements and focus on the UN were timely and well overdue, but he should be on guard against the Blair syndrome; the propensity to talk at length underwater without delivering. Not only is it annoying, it is dangerous, as expectations are raised which might not be fulfilled; an impression conveyed of a polished and socially correct version of whatever it takes.

Before rushing to announce his intention to seek a place on the Security Council, Rudd should have done some of the hard yards to restore Australia's tarnished reputation in the world.

As a case in point, under Howard, Australia was one of a handful of countries to consistently vote with the United States against Palestine.

If a UN vote were held this year to elect two non-permanent members to the Security Council, with Finland and Luxembourg already contenders, Australia would pick up no votes in continental Europe, particularly the Scandinavian countries after Tampa. Australia would pick up no votes in the Middle East apart from Israel, and few if any in Africa.

Pressure and pressure alone might secure a couple of votes in the Pacific but India, Indonesia, Malaysia and Burma would not vote for Australia. Pakistan would be hard to predict. Sri Lanka, Thailand, South Korea and Brunei would probably vote for Australia and Cambodia, Laos and Vietnam might also but then again they might not. The United States, Canada and perhaps Britain might vote for Australia, but the numbers are significantly against us. A lot of work will need to be done to significantly rebuild respect for Australia.

The Commission estimates the Federal Government provided about $15 billion of assistance to industry last financial year.

Commission chairman Gary Bank says assistance such as tariffs benefits some industries at the expense of others, with importers often forced to pay higher prices for goods.

He has urged a review of areas including drought relief, defence procurement, ethanol and renewable energy.

Mr Banks says it is important to ensure the general community is getting value for money from industry assistance.

"Drought relief has increased enormously in recent times and farmers have been doing it tough," he said.

"But it is time to look at that in the context of global warming and so on to see if we've got the right arrangements there."

Mr Banks says government support for industry has increased 15 per cent over the past five years.

"So at a time of budgetary constraint and tight labour markets we think we need to be sure that that support for industry has good rationale and is providing a pay-off to the community," he said.

-abc.net.au

Under the system, half of all welfare payments are reserved for essentials like food and rent.

The new Northern Territory ALP President Senator Trish Crossin has floated the idea of allowing people to opt out of the system after the federal intervention into remote communities is reviewed mid-year.

But Tony Abbott says welfare quarantining is working and federal Labor would be ill advised to accept Senator Crossin's advice.

"I'm a little disappointed to hear Trish Crossin's comments and I think she's at odds with her leader and her minister.

"The Labor left hate welfare quarantining and they will certainly push hard to get rid of it.

"But I think it is demonstrated in the townships where it is in operation that it is making a big difference, that the drinking and gambling is much reduced and that a lot more kids are a lot better fed."

The Federal Government says it supports income management and the Northern Territory Emergency Response will be fully reviewed in the second half of the year.

Party Leader Brendan Nelson is today continuing his so-called 'listening tour' of the country.

Behind the scenes, a campaign review committee is seeking public feedback, four months after last year's crushing Federal election defeat.

The Party's review committee chairman Tony Staley says it is a sensible thing to do.

"It would be helpful for us to hear your views quite frankly, not so much on the loss but on the lessons of the future," he said.

"That's what we're really on about, we're not wanting to hold a detailed post mortem on the loss."

Mr Staley said the review is more about developing an approach to opposition after 11 years of government.

"An approach into how to get back into government and we'll be wanting to make helpful suggestions about how the party can face the task of future campaigning to win," he said.

-abc.net.au

There have been well publicised factional wars in New South Wales where people have been rejected from joining party branches with opposing views.

Brendan Nelson has told the ABC TV's Insiders program this is evidence that changes are needed if the party is to win elections.

"There needs to be reform, not only in New South Wales but in other parts of the country," he said.

"We're also looking at some constitutional reform federally but I believe very strongly that we are going to have to have some change."

-abc.net.au

Mr Rudd wants Australia to have a seat on the Council from 2013 but cannot say how much the lobbying process will cost.

Some estimates have put the cost at around $35 million.

Mr Rudd is now returning to Washington after his weekend trip to the UN in New York.

His next engagement is a working dinner with prominent Australians who live in the US, including astronaut Andy Thomas, author Geraldine Brooks and mathematics professor Terrence Tao.

Shadow foreign minister Andrew Robb says he supports the Government's bid for a Security Council seat.

"It's quite a legitimate ambition to try and gain a seat on the Security Council," he said.

"Back in 1996-97 the Howard government made a similar attempt to try and gain a seat on the Security Council."

-abc.net.au

The Anzac class frigate HMAS Stuart is leaving Sydney this morning on a six-month deployment to the region.

Its 185-strong crew will be involved in Operation Catalyst, protecting sea lanes and oil platforms in the Gulf as well as training the Iraqi Navy.

Mr Fitzgibbon says the Government believes Australian combat troops are no longer needed in southern Iraq but an Australian naval presence is needed in the Gulf.

"We have a long-term commitment to Iraq and the Iraqi people, that means playing a part in international efforts in the Gulf and elsewhere for as long as it takes to bed down democracy in Iraq," he said.

-abc.net.au

Kevin Rudd has spent the day in meetings with the top level of the US administration and began the day by meeting President George W Bush.

Under the scheme, US Immigration Department officials would work in Australian airports, which would mean Australians would not have to queue for as long at customs when arriving in the US.

A similar scheme operates on a trial basis for Canadians and Mexicans.

Earlier in the day, Mr Rudd and Mr Bush shared a lunch of steak and coconut cream tart with others, including vice-president Dick Cheney and Dr Rice.

Then Mr Rudd went into a series of meetings including one with Treasury Secretary Henry Paulson, discussing the global economic instability caused by the US credit crunch.

After their talks today, Mr Rudd and Mr Bush emphasised the strength of the relationship between the two nations.

As Kevin Rudd heads off on his VIP jet bound for Washington, Europe and China, he must know he is taking a political risk.

For a prime minister to spend 18 days overseas while a crucial federal budget is being put together is — as Sir Humphrey used to say in Yes, Prime Minister — courageous.

The opposition has started sniping already. Leader Brendan Nelson calls it "surprising" and "interesting" that Rudd should absent himself for so long during "the preparation of what is arguably the most important budget that Australia will see in recent memory".

If things go wrong in the budget-making process — if, for example, there is a repetition of the recent damaging headlines suggesting threats to bonus payments to carers and seniors — the prime minister might well rue the decision to strut the world stage.

He might rue that decision even more if the budget gets bad reviews, for this will be viewed as Rudd's first budget: Wayne Swan will deliver it on May 13, but the prime minister more than the treasurer will carry the can for any shortcomings.

On the plus side, however, Rudd's decision to leave decision-making and political management to his underlings at such a time would seem to give the lie to claims that he is an insufferable control freak.

It shows enormous trust in Swan, finance minister Lindsay Tanner and Julia Gillard, who will be acting PM in Rudd's long absence. If Rudd did not have faith in them he would stay at home.

It coincides with other ministers spreading their wings and showing independence.

Defence minister Joel Fitzgibbon, health minister Nicola Roxon and foreign minister Stephen Smith are three who have demonstrated that they have little need of prime ministerial micro-management.

Monday marked 100 days since Labor turfed the coalition out of office at the November 24 election.

Mr Rudd marked the occasion with a cabinet meeting and a speech to a business lunch in his home town of Brisbane, followed by a series of media appearances.

Asked to comment on a newspaper editorial that described the new government's first 100 days as competent but dull, Mr Rudd told ABC television: "If you want wang, bang, pizazz, performing cartwheels and throwing fireworks into the air, mate you've backed the wrong guy with me.

That's not me.

"But I take seriously the program we took to the people, I intend to implement it, and I intend to face squarely the long-term challenges of the country as well."

The Rudd government is also planning to slash the donation disclosure threshold from $10,300 to $1,000, reversing Howard government changes which let political parties hide millions of dollars in donations.

Prime Minister Kevin Rudd said the time had come for "comprehensive campaign finance reform" to make the system more transparent and democratic.

Mr Rudd said under current laws it was perfectly okay for foreign citizens and corporations to make political donations, and that had to change.

I think it's time we got to the stage of saying that's not right," Mr Rudd told ABC television.

"So my proposal ... will be to ban foreign donations, either by citizens or by corporations, to Australian political parties."

Mr Rudd said he was also looking at imposing caps so Australian people and companies could not donate more than a prescribed amount.

"The civil liberties argument will come in, 'well it's a free country, anyone can donate, therefore Bob's your uncle, off you go'," Mr Rudd said.

"(But) I think you have got to be very worried, at the end of the day, about whether a democracy therefore ends up being up for sale.

"I'm not about to be prime minister of a country which allows that to happen."