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CC Tonight, bank statement

- the Government fine tunes its

financial crisis plan.

Necessary guarantees by Government unprecedented

guarantees. On the rails, the

Premier unveils his transport

vision. Mr Rees is again

making it up as he goes

along. And food for thought but

can a voluntary code work?

Food and beverages will only be

advertised on children's

television where they meet

healthy food guidelines. Good

evening, Juanita Phillips with

ABC News. The Federal

Government has announced the

missing details of its controversial bank guarantee

scheme. More than 99% of people

will get their deposits backed by the Government for free.

Those with more than a million

dollars in the bank can choose

to pay to effectively insure

it. The details were released

as a growing number of

financial institutions frees

withdrawals as a result of the

uncertainty surrounding the

guarantee scheme. Political

correspondent Greg Jennett. The

question he cannot escape.

Have you not created a system

where we have safe banks and

unsafe banks? Money talks and

the answer from investors in

funds not covered by the

Government's guarantee is

emphatic. We had a 20 times

increase just the beginning of

this week in terms of people

redeeming money. Axa is among

13 big mortgage funds to freeze

capital in some of their investment accounts although

they stress regular payments to

investors will still flow. The

level of income they receive

and rely upon each month will

continue. The Government

admits some self-funded

retirees might be affected. Do

fully investigate your

eligibility for interim support

through Centrelink. The best

he can say to people whose life

savings has been frozen is, "Go

to superlink." Where they

could be eligible for a pension

if they can prove income or

assets have been savaged. At

week's end, after the markets

had closed, the guess work on

the Government's guarantee

package came to an end. These

are considered refinements to

the scheme that was always

going to be refined. Deposits

under a million dollars will be

guaranteed for free, about

99.5% of depositors. Over a

million it's optional with

sliding premiums demanding on

credit ratings. The Treasurer

has nothing to offer those

funds not included within the

guarantee but they may yet get

something to staunch the flow.

He's ordered his Treasury

secretary and other regulators

to investigate what can be done

to help them and their

investors. The Government has

requested ASIC to provide

urgent advice in relation to

retail investor hardship cases

where redemptions may have been

frozen. What we've seen is a

week or more of dith. Ending

investor uncertainty is one

thing, lifting the Paul from

small business another.

Profit's getting smaller, rents

getting larger. They're

promised quick payment when

doing business with Government

and $4 million worth of advice.

Self-funded retirees are being

urged to stop and think before

they rush to pull their money

out of cash management trusts.

According to the association of

independent retirees, the

trusts are no more risky now

than they were before the

Government guaranteed bank

deposits. Finance reporter John

Robertson. Self-funded retirees

have watched their nest eggs

get hammered over the last 12 months. They're afraid that

their futures and when fear

grips logic can go out the

window. Now is not the

appropriate time to be selling.

If you have spare cash, now is

the right time to be

buying. Theresa is a

self-funned retiree and

believes it's time for those

with money in cash management

trusts to take a deep breath

and see the wood for the

trees. The asset is as good as

it was. Its market value has

dropped for the moment. A cash

management trust is a managed

fund which invests in cash

based assets like Treasury

notes and bank bills. Investor

returns are paid out of

interest on those investments.

According to the latest statistics, cash management

trusts are a small part of

Australia's managed funds

industry. The sector was valued

at $1.3 trillion at the end of

June. Cash management trusts

were just $47 billion. While

they share some characteristics

with banks, there are many

differences. Cash management

trusts are a higher risk

investment tool whereby

depositors achieve a higher

return but take the risk of

market fluctuations. David

Curnow says the Government is

right not to include cash

management trusts or trusts of

any kind in its depause.

Guarantee. Where do we stop?

Do we stop at the type of

organisation that Alan Bond ran

in the '80s? Do we stop at Ron

Braly's type of organisation?

Do we guarantee Alco? Do we

guarantee Babcock and Brown?

Dr Curry says an extension of the guarantee could lead to the

Government having to support

everybody's superannuation, a

proposition which is unaffordable. The All

Ordinaries fell more than 100

points today despite last

night's rise on Wall Street.

Like parliament, the share

market was transfixed by the

knock on effects of the

Government's bank deposit

guarantee, that was

announcements to freeze

redemptions on mortgage trusts.

It doesn't mean the companies

or their trusts are broke but

it knocked investor confidence

in the sector. Those three

listed companies affected

directly fell heavily as did

AMP and Macquarie. Mining companies, banks and

industrials fell as well but

not as much. The All Ordinaries

finished 2.7% lower even though

Wall Street closed higher but

it was pretty unconvincing. The

Dow opened steady, rose 300

point, slumped 600 points and

then rallied to finish 170

points higher or 2%. The

Japanese market has fallen

nearly 10% because of the

rising yen which will have a

dreadful impact on profits.

Investors don't know whether they're looking at bargains or

a future earnings disaster.

Tonight's graphs present two

views of the effect of

recessions on global profits.

First, return on equity which

is a profit as a percentage of

shareholders funds. In the past

two downturns, 1992 and 2001,

it fell to 8%. It's currently

at 14%, having hit a record

high of 16. Analysts reckon it

will probably fall to 8 again.

Graph 2 is the decline in

global earnings in 1992, 2001

and now. The idea that we're

just 10% into a 35% decline is

what is really scaring

investors around the world at

the moment. Commodity prices

fell again today, both base

metals and precious metals and

the Australian Dollar was down

3 US cents or 4% to 64 cents

which is a new 5-year low. He

was once one of Washington's

biggest hitters, now Alan

Greenspan has been forced to

face the music. The former

chairman of the US Federal

Reserve has been accused of contributing to the global

financial crisis. He told a

Congressional committee that he

did make a mistake in not

imposing tighter controls on

the financial system. North

America correspondent Michael

Roland. Alan Greenspan is

describing the financial crisis

as a once in a century credit

tsunami. Those of us who have

looked to the self- interests

of lending institutions to

protect shareholders' equity,

myself especially, are in a

state of shocked disbelief. So

too are many US politicians who

accuse Dr Greenspan of being

asleep at the wheel when he was

overseeing the financial

system. Our regulators became

enablers rather than enforcers.

Their trust in the wisdom of

the markets was infinite. The

former Central Banker concedes

his belief in free markets and

reluctance to regulate helped fuel the crisis. In other

words, you found your view of

the world, your ideology was

not right. It was not working.

Precisely. That's precisely the

reason. I was shocked because I

have been going for 40 years or

more with very considerable

evidence that it was working exceptionally well. The

financial regulators are the

latest to face the political

blow torch in the wake of the

market mayhem. Where have you

been all these years? I think

that every regulator wishes he

or she had been able to predict

the unprecedented meltdown of the entire US mortgage

market. The melt down is now

extending to the US labour

market. Some of America's

biggest companies vunounced

20,000 job cuts this week

alone. Unfortunately flr a lot

of people in America who have

lost their job or are anxious about losing hair job. More

than 1 million Americans have

been forced out of work this

year. Just a day after

revelations of major problems

with the new Epping line, the

Premier has announced yet

another rail master plan. He

wants the Federal Government to

pay for a CBD metto. The

Opposition says the idea is

half-baked and doubts it will

ever be built. In March the

north-west metro was announced

by the previous Premier as the

beginning of a transport

revolution. Today, Nathan Rees

revealed his vision. Do we

have the plan? The map? OK.

The Government's plan has

changed. It's now spruiking a

CBD metro from central station

to Rozelle with four stops

along the way. This makes

metro the future of passenger

transport in greater

metropolitan Sydney. Nathan

Rees says the project is of

national significance and he's

asked Infrastructure Australia

for full Federal funding of $4

billion. They got it. They got

the vision bit about where this

fits. The Opposition says he's

making it up as he goes along.

It's confusing the hell out of

people across the city and

State. Mr Rees still won't

commit to the original

north-west metro or the western

line to Parramatta but says

this inner city system would be the first stage for both and he

wants to start building that in

2010. The Opposition suspects

the bigger projects will be

delayed. Joom wondering whether

my kids will see this

north-west metro built. The

Premier says he'll have more to

say about the metro system when

the mini Budget is handed down

on November 11 but at this

stage there's no guarantee any

of these plans will go ahead.

Tragic and avoidable. That's

how the Coroner has described

the drowning death of

8-year-old Armani Dirani on a

school excursion in 2006. In a

damning indictment, the

Coronerer found school and pool

staff ignored their own safety

guidelines. He's also made

recommendations to stop a

similar tragedy occurring. When

the Coroner delivered his

finding today, it came as some

small comfort for Armani

Dirani's father. I hope no-one

has to endure what we went

through. The 8-year-old

drowned at the Glen brook swim

centre in 2006 on a primary

school excursion. The students

were meant to be supervised by

19 teachers and four life

guards but the Coroner found

the school and pool both failed

to comply with their own safety

guidelines. "Armani Dirani's

death by drowning on a

supervised school outing was a

tragic but avoidable death." At

times the life guards were busy

selling food in the canteen and

the attention of the teachers

was on a fun float. Also, the

school failed to have an

appropriate form of assessment

or verification as to her

swimming ability. The teacher

had accepted a note indicating

incorrectly she could swim. The Coroner suggested all school

databases include swimming

ability. "I accept that this

will cost time and money but no

money or time can be compared

to the life of a young child."

She was an angel, a princess.

Her laugh tfr, her smile,

everything just was

beautiful. In Coroner also recommended a standardised

system of wrist bands be

introduced to identify swimers

and nonswimmers at school

events and the ratio of life

guards should be doubled to one

to every 50 children. Those recommendations have been sent

to the Education Minister and

the royal life saving society.

Indonesia says the Bali bombers

will be executed early next

month. The announcement was

made in Jakarta by the

Attorney-General's office. The

three bombers were sentenced to

death for killing more than 200

people including 88 Australians

in 2002. On Tuesday they lost a

legal challenge to have death

by firing squad declared unconstitutional. There was

then mounting speculation

they'd be executed this week

and family members visited one

of the bombers yesterday. The

Attorney-General's office today

confirmed their legal options

have now run out. Sarah Palin's

star power is waning. New polls

suggest she's dragging down the

Republican ticket. It's a big

turn-around from the way she

started out with all the hoopla

and fire works of the

Republican convention. Since

then she's been involved in a series of controversies, the

latest about the cost of her

clothing. Sarah Palin spent a

day in the rust belt. The Republican was trying to

connect with workers like

Ohio's own Joe the plumber, the

voter who questioned Barack

Obama's tax plan. They're

investigating and attacking

good old Joe the plumber for

just asking a question. Boo!

But a lot of folks around the country, they're identifying

with jof. But are they

identifying with Sarah Palin?

During the convention,

Republican operatives spent US

$150,000 on pail pail's

clothing and make-up. They say

the difference between a hockey

mum and a pit bull, hip stick.

The purchases were made at

high-end stores including this

baby boutique where Trig Palin

scored a jumpsuit. That is

$98. The story is now raging.

How do you spend $150,000 on

clothes in two months? What,

do you buy the original

Thriller jacket off obey?

Alright, got me there. Are you

looking into bide Biden's

supposed botox shots Sarah

Palin's well designed image as

an average hockey mum could

come undone. $150,000 is three

times the average plumber's annual income. Independent

voters are being turned off

Sarah Palin, especially women.

A month ago 28% of them had an

unfavourable view of the

Alaskan, now 56% do. I don't

think she's ready for the big

boys, should something happen

to McCain. Democrats have made

fashion faux pass too. John

Edwards was pilloried for

spending $400 on a haircut.

spending $400 on a haircut. Tonight's top story, the

Federal Government has revealed

further details of its bank

plan including a fee to

guarantee savings of more than

a million dollar s. Still to

come, a plea to Queensland

farmers to help save the Great

Barrier Reef. A teenage girl

has died in a caravan fire

despite the frantic attempts of

her father to save her. The

17-year-old girl was asleep in the van when the fire broke

out. The van was in the

backyard of a house in

southwest Sydney. Her father

suffered burns to his hands and

face before being beaten back

by the intense heat.

Counsellors were provided for

traumatised fire crews.

Investigators say there don't

appear to be any suspicious

circumstances. In Queensland, a

3-year-old boy has been killed

in a house fire southwest of

Brisbane. The boy's mother and

neighbours tried to rescue him

but were driven back by the

flames. Smelt smoked about 7:00

this morning, they were quick

to react, knowing a mother and

her two young children were

inside the Goodna home.

Lucinda and Amy were on the 41

veranda and I ran across and said,

said, "Where's Billy?" And she

said, "I can't find him." The

3-year-old boy was still

upstairs in his bedroom. We

pulled open the double doors

and by then the windows were

already popping and there was

smoke pissin' out of the

house. Neighbours tried in vain

to find another way in. We no

sooner said, "Get off the

veranda," and someone grabbed

Amy and Lucinda climbed over

and next minute the flames all

come out behind 'em. Emergency

services arrived within minutes

but it was too late. The body

of a small 3-year-old boy was

located in the front

bedroom. The father of the boy

and 6-year-old girl rushed home from work to be with his

family. There is a whole world

of grief and hurt for him as

well so we've got our police well so we've got our police

chaplains attending. All we can

do is just offer support and

comfort for the poor people at

the moment. He idolised his

dad very much. The mother and

her daughter were treated for

smoke inhalation and shock.

Police say it's to early to

speculate on the cause but say

the fire doesn't appear

suspicious. Ipswich city

council is coordinating support

for the

for the family. With Australian

children now among the fattest

in the world, it seems there

are finally moves to restrict

junk food advertising. The food

industry is suggesting junk

food ads be banned during

children's TV programs but it

would be a voluntary ban and

parents' groups aren't happy.

The calls for tough laws to ban

junk food advertising to

children have been growing

louder with some State

Governments suggesting they'll

draft their own laws, the food

industry has announced plans

for a voluntary code. What

we're suggesting is that food

and beverages will only be

advertised on children's

television where they meet

healthy food guidelines. Use of

character such as 'Shrek' would

be banned unless it's promoting

healthy foods. The code will

cover not only television and

radio but the Internet,

magazines and school

fundraising. It would be an

independent arbiter and there

will be annual reporting oaf

what's actually happened. But

parent groups are concerned

that the code only covers

children's viewing times and

not between 6 and 9:00pm when

many more children and

teenagers are watching

television. Something like

80,000 children on average

watch TV between 4 and 5:00 in

the afternoon but you have

something like 500,000 children

that watch it between 7 and

8:00 at night. They say another

drawback is that fast food

companies won't have to follow

the code because they're not

members of the food and grocery

council. The food industry says

it's hopeful those companies

will follow their example.

Canberra's decision to largely

maintain the status quo in the

Northern Territory intervention

has met with both anger and

applause from the people it

affects. There's still concern

in some quarters over the

Government's decision to keep

compulsory welfare controls in

place. Having said it wanted an evidence-based approach, the

Government rejected the

recommendation of its own

inquiry to end the blanket quarantining of welfare

payments in Aboriginal

communities. That's got key

Indigenous groups wondering

what the review's months of

consultation were for. We want

inclusion. We don't want to be

left out in the dark and the way we're feeling at the moment

is that we are, people aren't

consulting, people in Canberra

are making decisions for

us. Most of the Federal

Government's announcements are

yet to trickle down to the

45,000 people they effect but

among those who do know, the

reaction to the Government's

decision not to reinstate the

racial discrimination act for

now is mixed. As a person I'm

talking from, it's working. We

would like to see income

management still continue. I

think it's ridiculous because

the Government should actually

treat everyone equal. The Territory Government had pushed

for the racial discrimination

Act to be reinstated and

welfare quarantining made

mostly voluntary but it stepped

back from that today. Women

and children are healthier, are

safer as a result of income

management being applied in

these remote communities across

the Territory. The review also

concluded the single most

valuable thing missing was the

willing participation of the

people the intervention is

trying to help. The Federal

Government hopes the

consultation promised will help that. Global warming, the

pressures of tourism and

introduced pests, they've all

been blamed for contributing to

the decline of the Great

Barrier Reef but now the

Queensland Government is

pointing the finger at farmers.

It says practices on the land

must change if Australia is to

save its greatest natural

treasure. It's taken 8,000

years for the Great Barrier

Reef to reach its current form

but scientists predict it could

be wiped out within the span of

a human lifetime. After we've

addressed climate, the single

greatest factor influencing the

health and resilience of the

Great Barrier Reef is the

quality of the water. Experts

say coral needs low nutrient

water so the nitrogen,

phosphorus and sediment running

off the land is devastating.

The Premier wants new farming

regulations, indicating she's

lost patience with the

voluntary system introduced in

2003. Both carrot and stick are generally the best way

forward. There's been a lot of

carrot in the last five years.

I think it's time to put a

little bit of enforcement into

the equation. Farmers say the

carrots weren't big enough to

start with but best practice

was spreading. The State

Government determined to

undermine that by picking a

fight with farmers over

regulation of farming

practices. What I've accepted

is is the need for the State

Government to do more. Peter

Garrett got the money flowing

promising an extra $23 million

to help change farming

practices as part of a $200

million reef rescue plan. We

must act in a united way today.

Failure is not an option. But

environmental groups say it's a

paltry sum compared to the $10

billion to save the

Murray-Darling. They also

criticise the target, a 25%

reduction in sediment and

pollution levels by 20 20.

Wecopy accept a 25% target for

the reef. Let's have a 50%

target. Tourism groups point

out the reef delivers $6

billion a year to Queensland, a

staggering 3% of the State's

entire economy, making the

reef's survival everyone's

business. Retired wicket keeper

Adam Gilchrist has given India

more motivation ahead of the test by criticising Sachin

Tendulkar in his book.

Gilchrist questioned

Tendulkar's honesty during the

Test in Sydney earlier this

year and said the Indian

batsman was hard to find for a

handship after games. By handship after games. By

accusing India's cricketing God

Sachin Tendulkar of poor

sportsmanship, Adam Gilchrist

has virtually committed

sacrilege. He's also questioned

his honesty over the Harbhajan

Singh 'monkey jibe' affair. One newspaper says:

If Tendulkar wants, he can

classify and say, "I never said

this." I'm sure the world want

to know what happened in those

cloed-door meetings. Such is

the level of interest in the

Australian team in yinledia

that Doug Bollinger and Jason Krejza, who haven't played a

test, were treated like rock

stars on the trip to the Taj

Mahal. It looks like a

photograph, it's a bit surreal.

Looks like a fairytale. She's

one of the cock cack fasks but

'the princess' has trouble

coping with the barriers.

Connections feel princess cope

deserves favouritism. An

expected fast pace won't hinder

her chances. I think when you

put up $3 million some jockey

gets a head rush somewhere in

the race. I don't believe it

will be run at a slow speed.

Samantha Miss is jostling the

princess for favouritism.

Georging Smith edged out

Wycliff Palu to claim his

second John Eales Medal as

Australian rugby union's Player

of the Year. The ACT Brumbies

forward has been a fixture in

representative teams since 2002

when he won the prestigious

medal in its inaugural season.

I didn't expect it. I thought

Wycliff Palu played well. Five

gold medals and three silver in

Beijing earned swimmer Matt

Cowdrey the Australian

Paralympian of the year award.

The 19-year-old was not only

elated with the honour but

thankful of the team's

recognition. They're great

elite athletes and to see the

recognition for a team full of

guys is so inspiring. Cowdrey was the most successful

individual athlete at the

Games. Australia's Will Power

was fastest in practice for the

Gold Coast Indy 300 and

tomorrow he'll attempt to win

pole position for the third

consecutive time. I'm really

focused on finishing the race

on Sunday and hopefully in a podium or in first

place. Avoiding the bad luck

which affected some, Power

finished 1.5 seconds faster

than the rest of the field and

five seconds quicker than

Danica Patrick who became the

first woman to win an open

event earlier this year. It was

back to acceptable spring

weather today just in time for

the weekend. It was a very

pleasant one but there's still

room for improvement on the

temperature front but I think

we'll see that over the

weekend. Today's maximums of 20

to 23 felt warmer than the past

couple of days but they were

still a degree or two below the average.

The cloud associated with a

front in the west has reached

its peak and will now weaken as

it moves further east. The high

over NSW will strengthen as it

moves into the Tasman,

directing warmer north-westerly

winds over the State. It will

slow the movement of the

weakening trough and remain a

dominant feature well into next

week. The rain forecast between

now and the end of the month is

far from promising with only

isolated and light falls

expected.

Thanks, Graham. That's ABC

News for this Friday. Stay with

us now for Stateline with

Quentin Dempster. We'll leave

you tonight with an emotional

homecoming for a group of

soldiers who have been serving

in Afghanistan. They're the

first Australian artillery unit

to see combat since the Vietnam

war and today they arrived home

in Darwin. Goodnight.

Closed Captions by CSI

CC This week, a winner is

grinning. Those results are

coming in. Even a loser looks

pleased. So many wonderful and

committed and passionate people

like me. And like him, John

Robertson, in the foot steps of

Michael Costa. We've got to

get on with doing it and if we

don't then we know what's

coming. Welcome to Stateline

NSW, I'm Quentin Dempster. The

State Budget's now officially

in deficit and after a long

delay Treasury has posted the

revenue figures saying

declining stamp duty receipts

and cost blow-outs in health

cancelled out the projected