Tasmania's new Premier Lara Giddings used her first public speech to deliver a sober warning about the state's economic position.
Ms Giddings was sworn in today, after David Bartlett suddenly resigned on Sunday to spend more time with his young family.
The decision came just 10 months after the last state election, which saw Labor cling to power with the support of five Greens MPs. Mr Bartlett will remain in cabinet as Attorney-General and as Minister for Justice.
Ms Giddings, the state's first female premier, promised a fresh approach to government.
"I am not going to pretend that things haven't been tough for Labor in recent years," she said. "There are people who have been disappointed with us and feel we have let them down. "My first job as premier will be to go back to basics."
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But she was quick to warn about hard times ahead. Ms Giddings will remain treasurer, a position she has held since December, which makes her all too aware of the state's financial woes.
Mid-year budgetary figures are expected to show a $200 million shortfall in GST revenue, while there has been speculation about public sector job cuts.
"The state must adjust to the new post-GFC world of reduced revenues and therefore the need to reduce expenses," Ms Giddings said.
"We must take strong action to ensure we do not go back to the bad old days of the 1990s."
Ms Giddings said she had never actively pursued the role of premier, but denied she was a reluctant leader.
"I had no intention of doing anything of the old politics of stabbing my leader in the back," she said.
"One of the beauties of today's historic moment of having the first female premier in Tasmania is that there is not one drop of blood on the floor." Ms Giddings said she had asked Mr Bartlett to remain in cabinet in an effort to maintain the close relationship with the two Greens ministers.
"David and Nick McKim had a very strong relationship and I'm pleased that David is remaining in my cabinet," she said.
"I believe the relationship he has is very important for the government as a whole." But Greens leader Nick McKim played down the significance of his friendship with Mr Bartlett. "We're not going to focus on personality politics here," he said.
"We're going to focus on the issues that matter to Tasmanians in their day to day lives."
Bryan Green was made deputy premier again, a position he held under Paul Lennon.
He was forced to step down in 2006 when he faced charges of signing an illegal deal with private building accreditor Tasmanian Compliance Corporation (TCC) Mr Green faced trial twice, but the charges were dropped after juries failed to return a verdict. He said he was grateful to be given a second chance.
"I did make a mistake, I accept that I made a mistake, I'm a lot better minister for it," Mr Green said.
"It was the people of (the electorate of) Braddon that gave me the opportunity to serve again and I was very pleased to return to cabinet."
