Australian Prime Minister Julia Gillard appointed Greg Combet on Tuesday to oversee the new steel industry rescue package. His appointment is part of the cabinet reshuffle initiated by Ms Gillard. He used to head the Ministry for Climate Change.

The change would have Mr Combet replacing Kim Carr as Minister for Industry and Innovation, while Mr Carr would head the Ministry of Manufacturing which would have the latter reporting to Mr Combet.

The package aims to ease the impact of the newly approved carbon tax and the decline of the steel making manufacturing industry in Australia. On Monday, BlueScope Steel announced it would apply for $100 million assistance under the package.

Mr Combet's appointment was received well by the Australian Workers' Union (AWU), the Australian Industry Group expressed disappointment that manufacturing would not have a direct voice in the Gillard cabinet, while the opposition criticised Mr Combet's appointment.

"Greg was the architect of the steel industry transformation plan so it is good news for the people of the Illawarra that Greg is going to be the man also implementing it," Illawarra Mercury quoted AWU National Secretary Paul Howes.

Opposition spokeswoman for industry Sophie Mirabella pointed out that Mr Combet is the same man who spearheaded the introduction of the carbon tax that she claims would destroy Australian businesses.

It is the third cabinet revamp for Ms Gillard since she came to power in June 2010.

"I have selected people who have got the skills to deliver the changes we need to keep strengthening our economy. I've also selected people who can publicly make the case for change," News.com.au quoted Ms Gillard.

Ms Gillard acknowledged that 2011 is a difficult year for the Labor-led government. She said the government would focus on the economy, a clean energy future, jobs, health, mental health, disability, ageing and social inclusion in 2012.

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