Applause crackled and tears flowed in city squares and parks across Australia yesterday as the country united to embrace its original inhabitants with an apology most Aborigines never thought they would hear.

The yellow, black and red of the Aboriginal flag fluttered from buildings, including the Sydney Harbour Bridge, as the Prime Minister delivered an apology on behalf of Parliament and the Government for the pain and suffering inflicted on tens of thousands of indigenous people taken from their families.

In his first parliamentary speech as the nation's leader, Kevin Rudd urged Australians to “turn a new page” by “righting the wrongs of the past”.

Aborigines in the public gallery, including Cathy Freeman, the Olympic gold medallist, Evonne Goolagong Cawley, twice the Wimbledon singles winner, and members of the “stolen generations”, wept and hugged amid a prolonged standing ovation.

“The stolen generations are not intellectual curiosities, they are human beings. Human beings who have been damaged deeply by the decisions of parliaments and governments. But, as of today, the time for denial, the time for delay is at last come to an end,” Mr Rudd said.

Amid the tears and cheers there were also jeers as Brendan Nelson, the opposition leader, spoke in support of the formal apology. “We formally offer an apology, we say sorry to those Aboriginal people forcibly removed from their families through the first seven decades of the 20th century,” Dr Nelson said.

But he added: “Our generation does not own these actions nor should it feel guilt for what was done in many, but certainly not all cases, with the best of intentions.”

As his speech was being televised, some in Parliament's Great Hall, outside the chamber, turned their backs on the large screen. The controversy intensified as it emerged that two of Mr Rudd's media advisers had joined the protesters in their gesture.

Wilson Tuckey, an outspoken conservative politician known as Ironbar for his uncompromising views, walked out of Parliament before the apology, saying it would do little for Aborigines. Five others boycotted the debate.

While the apology itself was generally warmly greeted across the ethnic divide, most agreed it was only the start of a longer reconciliation process.Patrick Dodson, often called the father of reconciliation, was among several Aboriginal leaders to issue fresh calls for the Government to compensate victims financially - something Mr Rudd has rejected.

In an effort to create further momentum, the Prime Minister said that he and Dr Nelson would take the unprecedented step of co-chairing a new bipartisan “war cabinet” to address disadvantage among Aborigines, focusing initially on housing and constitutional recognition.

Mr Rudd committed to halving the gap in infant morality rates between indigenous and non-indigenous children and to close the 17-year life expectancy gap. “None of this will be easy,” he said.

Read the fulll text of Australia's apology

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