After 17 days of negotiations, Tony Windsor and Rob Oakeshott - both from rural New South Wales - announced yesterday at 3pm that they would form a minority government with Labor.

It means Julia Gillard will remain Australia's prime minister.

Queenslander Bob Katter agreed to support the Coalition, announcing his decision about 1.30pm.

Liberal Member for Farrer Sussan Ley said she was surprised and extremely disappointed with the decision.

"I strongly believe rural people are far more comfortable with the Coalition in power," Ms Ley said.

"I believe it will be more difficult to get the results we want, because whatever way you look at it this is a Labor government.

"For example it would be easier to take a water issue, like the Basin Plan, to a Coalition government than a Labor/Greens government."

But Ms Ley said she would not let being in opposition deter her from doing her job.

"My job is to represent local people and local issues and I will be doing that whoever is in power," she said.

A spokesman for Nationals Member for Mallee John Forrest said yesterday that it was "very disappointing" that the independents had sided with Labor.

For more on this story, see Wednesday's edition of The Guardian (September 8, 2010).