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(generated from captions) of Australia's ageing population. to meet the financial challenge that health costs must be reined in the Treasurer's warning next month's budget, As federal cabinet wraps up to the Medicare safety net. has foreshadowed cuts The Treasurer Peter Costello with ABC News. Good evening. Joe O'Brien false starters on the track. And no second chances for over a death in custody. Prison authorities criticised in Bali. A row over child abuse allegations to the Medicare safety net. The Treasurer signals cuts This program is captioned live.

in luxury hotels on the island. while in child care their children were sexually abused, the ABC's 'Lateline' program Two Australian families have told about child care in Bali. to issue a specific travel warning on the federal government The opposition is calling Jim Middleton, ABC News, Canberra. and retired at 65. than if the PM had taken his advice at least one budget more his tenth - The treasurer's now preparing a husk after one budget, wasn't he? Well, I think Mr Beazley was He's a very worn husk of a man. as the PM's doing his. only half as well the treasurer's doing his job voters think with a new survey suggesting Kim Beazley's making hay, Speaking of employment aspirations, in the decades which lie ahead. We are going to need these workers Peter Costello disagrees. to boost growth. arguing that it would do little the disability support pension, to make it harder to claim in John Howard's push any significant economic benefit also disputes The Productivity Commission in the future. to cover any given fiscal gap and that's what makes it possible income growth because that's what drives Productivity is very important says it's no crisis yet. But the Productivity Commission they won't be available. when new drugs are invented If it's not sustainable, and spending on health and medicine. massive increases in demand for population will mean warning that Australia's aging from the Productivity Commission this report The Treasurer's seized on the system will break. is not put on a sustainable basis If your health lifting the thresholds. and he does not rule out that's not sustainable Peter Costello says $1 billion after just one year. more than doubling to a projected beaut" scheme is blowing out fast - Trouble is, the cost of the "you you get 80% of the excess back. go over $300 a year, out-of-pocket expenses and your out-of-hospital or a family tax benefit recipient If you're a cardholder We have this "you beaut" safety net. on his Medicare Safety Net. John Howard campaigned hard as an election issue. only to economic credibility Health policy was second

in Melbourne today, The latest national wage case began on tonight's 'Lateline'. And you can see that story in full would be impossible. that don't meet Australian standards listing facilities around the world and says warnings about childcare overseas The minister points to general by Mr Downer. should have been issued and says a Bali-specific warning an official briefing this afternoon Labor's Kevin Rudd received are concerned and their families. as far as the kids themselves This is stomach-turning a problem over here." "Hey look, there could be just to inform parents that, on the government So I think it was incumbent Anti-child abuse campaigners agree. for all Australians. the grave implications and it's refused to realise has been incredibly inadequate Overall, the response about childcare in Bali. warning parents for him to consider travel advice asking unsuccessfully who wrote this letter to Mr Downer, Chris Ellison, They met the Justice Minister three years later. at a nearby hotel in Bali while in childcare their 5-year old boy was raped The second family say any hard evidence for that. if we don't have where paedophiles are active is a place that a particular childcare centre We can't claim who was responsible for the abuse. couldn't determine because Indonesian police The minister says it wasn't possible to be upgraded. and asked for travel warnings and his department to the office of Alexander Downer The family wrote to come in as gonorrhoea. It took three days for the cultures the family's fears were confirmed. after a medical examination Back in Australia she was beside herself in tears. She was standing there, My daughter was crying. when she was two. her daughter was assaulted in 2001, One mother told 'Lateline' while in childcare at 5-star hotels. their children were sexually abused when two Australian families say They were on holiday in Bali have enough evidence. But the government says it doesn't

I'm not in the business of giving guarantees for or against anything. For two years, the strong economy has led to significant rises in the commission. Last year, it lifted the minimum wage by $19 a week. Now that the heat's gone out of the economy, employers say $10 a week is a more realistic figure. Minimum wages increases should be more moderate than they have been when the economy was growing at record levels. $13 an hour is a very modest level of income. The commission will deliver its decision by June. Ben Knight, ABC News, Melbourne. Police say two men who died on a remote track in outback Western Australia were totally unprepared for travel in the unforgiving terrain. The bodies of the 40-year-old man and his 21-year-old nephew were found near their broken down vehicle on the edge of the Gibson Desert. Originally from the NSW town of Warilla, to guarantee the minimum wage would keep up with inflation under any new system. the government but Greg Combet has asked by cabinet, Any changes will be decided on in this country. reduce the level of minimum wages and that is they would like to reason and one reason only - They are arguing that case for one there's no reason to change at all. but the ACTU says on what changes will be made, there's little detail what he's seen in the UK, While Kevin Andrews likes industrial dispute. dealing with an interstate on a union ambit claim, is sitting as judge where the commission a court-based adversarial process This is the commission works. nor employers like the way Neither the government to the setting of the minimum wage. a much more rigorous approach in the UK involves by the Low Pay Commission the mechanism that's applied I believe that to set wages. to cut back the commission's powers The government wants But this could be the last time. in this room to do battle. Each year, unions and employers meet Commission. of the Industrial Relations an overhaul with the government planning of its kind But it could be the last case for low-paid workers. for a $26 a week rise with unions pushing

the pair perished near Cotton Creek sometime after buying petrol on March 28. When you look at the situation these people have got themselves into - a very old vehicle 31 years old. It's not road worthy, not enough the gang of four had committed brutal and cowardly acts on the two friends who were merely passing by. water, not enough fuel and they haven't told anyone. It's a disaster waiting to happen. The men and their dog headed off in search of water. But without a proper map, were unaware a functioning well was just 9km away in the other direction. Police will use dental records and DNA to formally identify the two men. Four men have been sentenced over the manslaughter of Sydney teenager Kurt Smith. The 19-year-old was bashed by four men at suburban Emu Plains on the way to a party with friends. The Supreme Court judge described the crimes as "mindless brutality." Kurt Smith was walking to a New Year's Eve party with friends when he was set upon by four men. During the fight his head struck a power pole. He died later from injuries. His friend Sean Clifford was also bashed. He was in court to hear the sentences which ranged from 4 years to a little over 5.5 years. Kurt Smith's family didn't come to the court, a victims of crime group doing the talking. The fact that a 19-year-old has lost his life in the prime of his life and these guys have got sentences which are around 5 years maximum is just unbelievable. The men faced trial for murder last year, but the trial was aborted when prosecutors accepted guilty pleas to manslaughter charges. The judge agreed today that the crime was not murder. The young men have been held in a juvenile jail. The judge found that they'd been working hard to rehabilitate themselves and were sorry for what they had done. Justice Greg James said

The judge said the attack wasn't provoked and couldn't find a motive for the violence. The young men will be eligible for release at various times during the next 18 months. Rachel Mealey, ABC News, Sydney. The family of an Aboriginal woman who committed suicide in Bathurst Jail last month has accused the authorities of ignoring obvious warning signs. Family members say Lana Ryan had a record of self-harm and suicidal tendencies. They've rejected corrective services assessments that she was not at risk. It's another death in custody - a decade and a half after it was all supposed to stop. Lana Ryan was found hanging by a sheet from the shower in her cell at Bathurst jail three weeks ago. Corrective Services at the time said she'd spent two days in detox, and she'd been constantly assessed as being not at risk. Her aunt says warning signs were clear when she visited Lana at Dubbo Police Station, before she was moved to Bathurst. She was banging her head against the walls, and pulling her hair, and punching the walls and kicking the walls. And hurting herself. And she was saying that she can't go back, and that she would kill herself. Lana Ryan was being held on remand on property offences. Her family says her record of self-harm was well-known to those who knew her, but somehow the authorities missed it. I'm pretty sure that her files and everything that's happened in the past weren't with that expert that properly assessed her. Lana Ryan's mother didn't know she'd been arrested until it was too late. But says the news of her daughter's death came as no surprise. She tried to hang herself once in Mullawah. She said if she ever went into jail again she would hang herself. The family says it's not seeking to blame the Corrective Services Department, the police or any individual. But says 14 years since the report into deaths in custody, the system still seems to be failing its people. It was that long ago that the final report made a series of recommendations to make sure potential suicides were recognised and treated. We're not pointing the finger at Corrective Services, we're pointing the finger at the whole system, including the Aboriginal community. Lana Ryan's alleged crime was the theft of some jewellery. She was 27. Geoff Sims, ABC News, Dubbo. Some new jobs, but no new faces. John Brogden has unveiled the team he will take to the 2007 state election. The reshuffle contains several changes with Michael Gallagher and Peter Debnam exchanging portfolios and there's an enhanced role for National Party leader Andrew Stoner. John Brogden's new front bench contains the same faces as his old shadow ministry. Instead of introducing fresh blood, the opposition leader believes he can win the next election by simply re-allocating portfolios. It'll be a real contest, a contest I believe we can win and this is the team that'll win it for us. The changes start at the top. John Brogden gives up Treasury with Peta Seaton taking on the key role. By not promoting any new faces John Brogden has rebuffed anyone with ambition on his backbench. Likewise he's forsaken the opportunity to clear out any dead wood from the front bench ahead of an election where the coalition fancies its chances In return she hands over Planning and Infrastructure to her leader. National Party leader Andrew Stoner takes control of Roads, Energy and Utilities, including sorting out Sydney's water problems. We love those portfolios that have got dollars and concrete involved. Brad Hazzard returns to Community Services. My message to Reba Meagher is to watch out. Peter Debnam is ousted from Police but picks up the equally high-profile responsibility of Transport. Michael Gallacher goes the other way, returning to his roots as a police officer. I have quite a strong policing background, a real one. I've locked up many people in my time and I'm very proud of what I've done. Education is split into two with Jillian Skinner retaining Schools and Don Page gaining Skills, Development and Training. This is the team that I'll take to the 2007 election. This is the team that will provide policy alternatives to the people of New South Wales.

But the President's admiration is tempered by his concern that Israel is going to expand one settlement, just outside Jerusalem. I've been very clear about Israel has an obligation under the road map. That's no expansion of settlements. The Israeli leader believes this particular settlement lies outside the road map's provisions. (Speaks Hebrew) The position of the Israelis is that the construction of the blocs of settlements will remain with Israel. Prime Minister Sharon wants the President to pressure the Palestinians do more to adhere to their obligations. In past days, Palestinian militants in Gaza have renewed their attacks on settlers. Ariel Sharon says the situation in Israel is tense enough, even without Palestinian violence. I repeat it again - of finally returning to government. Simon Santow, ABC News, Sydney. US President George W.Bush has warned Israeli Prime Minister Ariel Sharon not to expand Jewish Settlements on the West Bank. But as the two leaders met at the President's Texas ranch, there was also praise for Israel's plan to pull out of Gaza. North America correspondent, Leigh Sales. An invitation to the President's Texan ranch is a reward for close Bush allies. I strongly support his courageous initiative to disengage from Gaza and part of the West Bank. there is an atmosphere of a civil war, but I'm fully convinced that I'll make every effort to avoid that. Both President Bush and Prime Minister Sharon reaffirmed their support for an independent Palestinian state. The Palestinian leadership will get its chance to lobby the US next month, when President Mahmoud Abbas comes to the White House. The key issue for those talks will be whether the Palestinians are doing enough to end violence. Leigh Sales, ABC News, Washington. A mystery man dressed in black with two suitcases has sparked a major security alert in Washington. The man stood in front of the Capitol Building, asked to see the president and refused to say anything else. Fearing he was carrying explosives, swat teams evacuated the area and leapt into action. Oh my God! They're rushing him. They're rushing him right now. They're taking him down, they just took him down. They have him on the ground, yeah, whoo whoo! The man suffered superficial injuries as he was dragged away. He was later charged with disobeying a police officer. His suitcases were blown up, but nothing suspicious was found. American victims of paedophile priests say they're outraged that the cardinal at the centre of the scandal has led a special mass at the Vatican. Cardinal Bernard Law was forced to resign as Boston's archbishop over claims that he covered up child abuse. Overnight he led the mourning for Pope John Paul II as they gathered downstream from the dam to celebrate a new moon. Scores are still missing with some estimates putting the eventual death toll in the hundreds. The state-run hydro-electricity authority is blaming the disaster on a lack of co-ordination with local dam operators. To finance now - and the local sharemarket edged higher today despite a new survey which found business conditions in Australia have deteriorated. Alan Kohler has the details. The monthly NAB survey of business conditions continues the trend of economic slowdown accompanied by signs of inflation. Business conditions and confidence about the future both fell according to the survey - although not by much. as a small band of victims' rights campaigners protested outside St Peter's Basilica. I think the problem is that the bishops, by hiding the molesters, by giving them fresh starts, by moving them, they allow the molesters to have an incredibly long career. They don't go to jail. Cardinal Law is one of 115 cardinals who'll take part in next week's conclave to elect the next Pope. At least 60 pilgrims have been swept to their deaths in central India after the gates of a dam were accidentally opened. Thousand of Hindus were hit by the flash flood

The share market was about line ball - up 0.2%. ANZ was among the biggest rises - 1.1% . Bluescope Steel was up 3.5%, while Macquarie Bank and Lend Lease led the declines. Against that, wage costs are 5% higher, so the Reserve Bank could either raise or lower rates according to which things it looked at. while Macquarie Bank and Lend Lease led the declines. Wall Street was also just about steady, ending slightly lower and in Asia today the general trend was also lower. On commodity markets - the oil price went up 0.5%. Gold, silver and copper all went up on Comex in New York, while the wheat price did much the same. And on foreign exchange markets, the Australian dollar continued to rise against the US dollar, but it was steady against other major currencies. Now here's a new survey of housing affordability in the US and Australia. In the category of severely unafforable, we have Sydney at number three. According to the Demographia website, the average house price in Sydney is 8.8 times average earnings - a bit less than Los Angeles and San Diego, but more than Honolulu, Miami and New York for that matter. Here are the other Australian cities: Melbourne, Adelaide, Hobart, Brisbane Canberra and Perth are all classed as severely unaffordable by the website, while Darwin is just plain unaffordable. And for no particular reason - except that it's pretty interesting - here's a graph of something called the American art price index. Prices quadrupled between 1985 and 1990 and are now back above that level for the first time, after a 20% increase in 2004. And that's finance. Sydney police have used tear gas to arrest four men accused of a series of armed robberies. The men were under surveillance when they spotted the police and tried to escape. Police rammed their car and fired a tear gas cylinder through the windscreen. Police say one of the men jumped over a rail bridge and fell several metres, injuring himself. The gang is suspected of a series of armed hold-ups in Sydney's south-west. A fire at a timber factory in Sydney's south this afternoon caused havoc for peak hour motorists. The Princes Highway was closed in both directions at Arncliffe for more than two hours after the roof of the timber factory collapsed. One firefighter was taken to hospital with minor injuries. The brigade says it's too early to tell what caused the fire. A woman whose son drowned in a boating accident three years ago is among those urging authorities to improve marine safety in Australia. Commonwealth and state authorities are meeting in Hobart, hoping to introduce uniform laws to reduce the high rate of fatalities on the water. Maureen Healey knows first-hand the importance of safety at sea. She lost her teenage son in a boating accident off the Queensland coast three years ago. Benjamin was our lifeline. He was my first child born, destined to be on the sea. 19-year-old Benjamin Healey drowned after his trawler capsized. He had no way to raise the alarm. I'm hoping that all legislation will be passed that every person who enters onto a fishing boat are given their own personal EPIRB. On average there are 12 serious boating accidents each week and 80 lives lost each year. The National Marine Safety Committee says uniformity of standards will help save lives, but it could be three years before they're in place. You've got eight different sovereign states and eight parliaments, at the end of the day that's one of the complexities and therefore things can't be put through a legislative process quickly. A marine safety conference has heard fatigue is a key factor in up to 80% of boating accidents. It's the major cause of accidents, incidents and occurrences and inevitably, sadly, yes that would actually lead to the loss of life. New research suggests automated navigation systems may also pose a safety hazard. There could be a problem with over automation, where people lose their skills and then if something happens, there's an emergency, they're not able to recover from that accident. Marine experts say more research is needed into the over reliance on technology and the associated loss of skills. Kate Scanlan, ABC News, Hobart Athletics is set to follow swimming's lead by implementing a "no false start" rule. Currently athletes are allowed one false start, but it applies to the whole field. The second infringement results in disqualification for the offender. That's about to change under a new rule proposed by the International Athletics Federation. Here's Peter Wilkins. Under this ruthless rule change it will be one twitch and you're gone. Swimming has already produced the most infamous precedent. Top athletes have had trouble delivering their best in the pressure of competition with the luxury of one false start. and try and get yourself back into form. You know, he is going to be smashed the first time he goes out there. 20 Englishmen, 11 Irishmen, 10 Welsh and 3 Scots make up the squad with the first Test against the All Blacks in June. Waratahs hooker Adam Fryer has been ruled out of Saturday's Super 12 clash against the Brumbies with a groin strain. Both teams are desperate for a win after disappointing recent results They've worked for years. They certainly would like more chances on the blocks in a pressure-cooker situation. I'm anticipating that athletes, particularly 100m runners, will be disappointed. The sport's governing body says the proposed new rule is about restricting gamesmanship where athletes seek to unsettle opponents and gain an advantage. Closer to the track, the proposal is seen in a different light. It's possible that it's more of a business decision in terms of sponsors, media, TV, adverts, but it's certainly not an athlete-friendly rule. Adam Gilchrist says rumours of him retiring after the 2007 World Cup are just that. The Australian vice-captain says comments he made in a magazine interview regarding his future have been misinterpreted. Around that time I'll make an assessment and the way I feel at the moment, I definitely would like to play on after that. Jonny Wilkinson, the player who kicked England to victory in the last Rugby World Cup, has been left out of the British and Irish Lions team to tour New Zealand starting next month. Wilkinson's long run of injuries has forced former England coach, Sir Clive Woodward, to leave the fly-half out of the initial 44-man squad. New Zealand is not a place to go

they don't like us, we're not going to hide from it. The Brumbies have named Tamaiti Horua at number eight in place of the injured Scott Fayva. With former Waratah Jone Tawake added to the bench. I've been waiting for this for a couple of years now so hopefully we'll go in there and do the job. The Waratahs team will be named on Thursday. One of the world's oldest Greek tragedies, 'Medea', is about to be given a new lease of life in modern-day Australia. Black medea . . Blends the ancient The Greeks have been performing Euripides' classic play since it was written nearly 2,500 years ago. Director Wesley Enoch recognised its relevance to today so picked up the story and ran with it. The chance to contemporise it and bring it into contemporary Australia meant we can rewrite it and put it into our mouths and tell the story our way. Them black fellas - they know I'm from somewhere they've never been and they're scared. Margaret Harvey plays the tragic Medea who is isolated after leaving her desert home for love and then abandoned by her husband. It's a love story gone wrong, gone sour. We're dealing with a lot of issues within the play that have major impacts on indigenous communities - communities everywhere, really. Crawl back and beg forgiveness. I sacrificed for you. and as always when the arch rivals meet, it's personal. There's no bones about it, we don't like them, And what have you got to show for it? A home, a husband, a son. 'Black Medea' will be staged in Sydney and Melbourne. tale of passion and revenge ... With indigenous storytelling. 'Cos I love you. It's over. No! Actor Aaron Pedersen wants Australian men to learn from the mistakes of his character Jason in 'Black Medea'. Jason's drunkenness, infidelity and violence destroy his family. I took this on because there is a moral stance, I suppose, at the end of it. I want men to wake up and very quickly to realise that there's a massive loss at the end of this journey if you don't come to your senses.

Anne Maria Nicholson, ABC News. Not much rain to report tonight, but a rather rare figure for Sydney. The area's top fall to 9am this morning was at Warragamba Dam. Trouble is, it was only 8mm. The coast scored less than 4mm, and temperatures went from 20 to 24 degrees, a top that's 1 above average.

And that's ABC News for this Tuesday. I'm Joe O'Brien. I'll be back with an update in an hour and 'Lateline' is along at 10.35pm. We'll leave you with today's swearing-in ceremony for new Supreme Court judge Megan Latham. Good night. Captions by Captioning and Subtitling International.