The judges,who were this year encouraged to be more liberal in interpreting Miles Franklin criteria for the award,described the book as''a masterful and exhilarating exploration of bravery and betrayal,of the risks and sacrifices some people make for their beliefs,and of heroism hidden in the most unexpected places''.

Funder's novel has already won a host of prizes and is shortlisted for next month's PM's fiction prize. While she was''totally stoked''to win the Miles,she said she found the experience odd because''you become a horse to be bet on''. Writing prizes weren't races or competition:''They are signposts in the cultural landscape.''

Although she chose to set her book in the period before the war,she said the fundamental issue of centralised government power and resistance was something that played out in every era and many countries.''Think of China,Libya,Burma,Russia,there are probably 50 or 60 countries where it could have been set.''

In her recorded acceptance speech - she had not been told in advance that she had won - she said prizes were important because they showed that free speech was alive and unbeholden to government or media barons. The irony of the prize being presented in Queensland,where new premier Campbell Newman has scrapped the Queensland Premier's Literary prizes,would have been lost on no one.''It's a mistake for him to think it's a personal prize,''Funder said.''It's the premier's,it's the people's prize. It is not a good sign. I'm not saying that Campbell Newman is an autocrat,but it's a bad sign to have him withdraw funds.''