The Australian Senate today rejected the government’s proposed $42bn (US$28bn) stimulus package designed to boost the economy in the face of the global financial crisis.

But the prime minister Kevin Rudd told parliament the legislation would be reintroduced later in the day in 'the national economic interest'.

After the defeat Rudd said the government would not be deterred from taking 'whatever action is necessary'.

'For those reasons I formally notify the house that later today legislation will be reintroduced to advance this nation’s national economic interest at a time of global economic crisis,' he said.

The National