Key invites Gillard over to stay at his bach

While John Key was among the first to congratulate Kevin Rudd on his successful leadership coup, it is Mr Rudd's deposed rival, Julia Gillard, that the Prime Minister has personally invited to come and stay at his Omaha beach house.

Yesterday, Mr Key said he spoke to Mr Rudd last Thursday night following his victory over Ms Gillard in the leadership vote that reinstalled him as Australian Prime Minister.

The changeover came just weeks ahead of an election Mr Rudd's Labor Party is widely expected to lose.

"I wished him the best and indicated that I thought the bilateral relationship was in great heart and I looked forward to working with him over the months ahead," Mr Key said.

Mr Rudd had responded by saying he was looking forward to his new job, he had a lot of work to do, and he thought the Labor Party was now competitive in Australia. Mr Key said he had spoken with Ms Gillard on Sunday.

Read more on the NZ Herald.