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(generated from captions) we set aside a $22 billion

surplus earlier this year in

the Budget as a buffer against

tough times. Those tough times

have now arrived. And that's

why we've decided to take

decisive action today with this

economic security strategy and

we will build on it soon with

the Government's

build the infrastructure nation-building agenda, to

Australia needs for the future.

History tells us that when the

economy slows, responsible

Governments step in to

strengthen growth and that is

what we have done by using the

surplus. As Prime Minister,

it's my job to level with the

Australian people. I don't

intend to gild the Lily. There

will be tough times ahead but

the Government remains

determined to take whatever

action is necessary in the

future to steer the economy

through this global financial

crisis. And I have absolute

confidence that as a nation we

All in

Australia's

interests. Pensioners and

public works cash in on the

crisis. I have a lot of

grandchildren to buy for so,

yes, it will be very welcome.

The strongest priority is to

move forward quickly now with

public investment. And a record

Wall Street rally rubs off on

Australian shares. Good

evening, Joe O'Brien with ABC

the news. Kevin Rudd is loosening

the purse strings to kick start

the economy. The Prime

Minister's outlined a one-off Christmas bonus to boost

consumer spending and counter

the global economic slow-down.

Pensioners, low and middle

income families and first time

home buyers will get the most

out of the $10 billion package

and while countries like

Australia are rolling out the

cash, global markets are also

on a roll. More on that later.

First political editor Chris

Uhlmann on the Prime Minister's

Yuletide gift. A long-hand

letter to the nation. The

truth is that we are going

through the worst financial

crisis in our lifetime. And

Kevin Rudd will soon be

signing cheblings. A $10.4

billion economic security

strategy. 4 .8 billion will

fund a payment to pensioners

and seniors set at $1400 for

singles and 2400 for couples

and carers will get $1 thousand

for each eligible person in

their care. 3.9 billion will go

to more than 2 million families

through a one-off $1,000

payment for each child. 1.5

billion will help 150,000 first

home buyers, doubling the

existing grant from 7,000 to

14,000 for established homes or

trebling it to 21,000 if the

home is new. The cash payments

will start to flow from 8

December. The world changed,

changed dramatically in the

last couple of weeks. So a

dramatic slice of the $22

billion surplus is being pushed

back in to the economy to

cushion it from the slow-down

that's expected to follow the

financial crisis. Early

action, responsible action,

decisive action. It has our

support, it will provide a

stimulus to the economy. And

necessary because there's a

growing consensus the economy

will slow sharply next year.

We think unemployment by the

end of next year is going to be

around 6% compared to 4 and a

bit at present. There's no

sign of Treasury's numbers yet

but they must tell a similar

tale because the Government's

pumping money into the pockets

of people who will spend it.

The housing industry is tipping

an extra 15,000 starts. We

expect Queensland, NSW and

parts of Victoria to benefit

primarily from today's

package. Pensioners are being

mobilised to help the fytion.

This is is the opportunity for

them to participate again in

society and to have their

standard of living improved.

We'll spend all we've got and

that will be good for the

economy. I have a lot of

grandchildren to buy for. Yes t

will be very welcome. Right on

target so far. Welfare

organisations have welcomed the

package but are calling for

more immediate spending on the

dole and infrastructure.

They're arguing the service

sectors of the economy will be

hardest hit by the global

economic crisis with

unemployment , debt and

bankruptcies all rising. Good

but not equit able. Australia's

peak welfare agency says the

Government's package has one

glaring omission. People on

unemployment benefits missed

out. They're one of Australia's

most disadvantaged groups and

they're often located in areas

of Australia where the

economy's not doing well. Her

predecessor agrees pump priming

is the way to go but warns

speed is of the essence. The

strongest priority is to move

forward quickly with public

investment in transport,

schools, hospitals. The

billions may soon be flowing

into the pockets of pensioners,

fams ylz and carers but will

they spend? We don't want

consumers to dry up their cash.

If they dry up their cash that

means jobs are at

threat. Welfare groups warn

despite the Government's spend,

the credit crisis will hurt the

Australian economy and

unemployment will rise. Those

working part time and casually

will be hit hardest. There's

no doubt we'll find people out

of work or with less secure

work. For many Australians, an

economic downturn is an

everyday reality. I've got a

mortgage. I'm finding it

difficult to pay that

mortgage. Sam Solomon was made

redundant from his IT job two

years ago. He'd sell his Sydney

flat but it's only worth about

75% of what he owes. Now

bankruptcy looms as an

insidious option. The Prime

Minister's package is about

minimising the damage. The

fact that 80% of the population

may not be badly hurt, even if

it's as high as that, 20% is

far too high and we've got to

worry about them. The

Government is hoping it won't

come to that. Political editor

Chris Uhlmann joins us now from

Canberra. Chris, the

Government's spending half the

surplus on this stimulus

package. Is it throwing caution

to the wind? Everything that

the Government's done so far

has really been to play

catch-up on the financial

crisis and that's

Governments around the world understandable because

have been doing the same thing.

It was completely unexpected

but there is a second wave

coming and that is expected and

that's the economic slow-down

that will come as the economies

of the world slow down and

Australia slows down. So what

we're seeing today is the

Government sand-bagging against

that wave. We don't have their

figures and don't know how big

the threat is but I think you

could understand from the size

of the response that they think

that that threat is

significant. What are the

risks here and when will we

know if it's worked? It's very

much an art, not a science.

You're seeing is a Government

anticipating where the economy

will be in 6 and 12 months time

and then taking a punt that

this stimulus package will be

enough to do enough to make

sure the economy doesn't suffer

a hard landing. As I say, it is

a punt and I think the main concern from the Government at

the moment would be that it

would undersmoot and not

over-shoot because if it has to

come back and spend more money,

it might be too late to make a

real difference. Australia

isn't the only country trying

to spend its way out of trouble. The Bush

Administration is reportedly

about to shore up another nine

US banks, many of them Wall

Street giants. Similar rescue

packages have seen stunning

turn-arounds on global markets

and it was Wall Street that led

the way. What a difference a

global action plan makes.

Investors found their

confidence and the Dow

apparently found its bottom.

The index soared through the

session, closing more than 900

points up. It's the Dow's

biggest single-day surge, twice

as big as the previous record.

1.5 trillion dollars were added

to the market. Now people

realise the world is not coming

to an end and the financial

system is going to be

rescued. The monster row bound

came after Central Banks

flOeded the markets with money

and Governments rewrote the

international financial rule

book. All of us will continue

taking responsible decisive

action to restore credit and

stability and return to

vigorous growth. The US

Treasury secretary summoned the

leaders of the big banks to

Washington. He's asked a

35-year-old to coord nalt the

financial rescue plan. Our

tool kit is being designed to

help financial institutions of

all sizes so they can grow

stronger and provide crucial

funding to our economy. The of

that could come tomorrow when

the frozen credit markets

reopen after a one-day holiday.

If they don't start to thaw and

the banks don't start to lend,

today's rally could be a

one-day wonder. Barack Obama

unveiled a new economic

stimulus package. It's a plan

that begins with one word

that's on everybody's mind and

it's easy to spell -

J-O-B-S. John McCain is trying

to distance himself from the

current President. We cannot

spend the next four years as we

have spent much of the last

eight, waiting for our luck to change. The Republican homes he

can stage a comeback that

rivals the stock markets.

European markets were also

buoyed by huge bank bail-outs.

One of the biggest in Britain

will cost taxpayers more than

$90 billion. ABC correspondent

Philip Williams reports. In

Britain, taxpayers woke to find

themselves part owners of the

banks. 60% of the Royal Bank of

Scotland, 40% of the troubled

HBOS and Lloyds TSB. For

savers, for small businesses

and for home owners, we must,

in an uncertain and unstable

world, be the rock of stability

upon which British people can

depend. One after another,

European leaders lined up to

deliver their packages of State

guarantees and loans. Germany

promised a trillion dollars. In

France it was $800 billion.

Other nations followed as

finally a coordinated approach

appeared to work and markets

recovered some of the previous

week's losses. There are

strings attached, which there

should be, because there's

always a price to pay when you

get money like this but it's

the right step. While Gordon

Brown can bask briefly in the

success of his European rescue

template, some are asking why

he didn't see the crisis coming

in the first place. Rerts not

forget we're in this position

in the first place because the

Government didn't act

decisively enough over the last

several years to stop this

credit and housing bubble. The

Opposition Conservatives say

the British rescue package will

end up costing every citizen

more than $25,000. The question

remains if all the bail-out

schemes require all the money

they've promised, and we're

talking trillions of dollars,

where on earth is that money

coming from? Here, investment

bank Goldman Sachs JB Weir says

the Government's spending

package is too late. Australia

is already in recession. But

the bleak assessment didn't

stop the market following Wall

Street's overnight lead to post

strong gains. The Australian

market's marching to an

international tune, although

today's Government spending

package was seen as a double-edged sword. The All

Ordinaries index surged 6% at

opening before easing back.

Investors are encouraged by the

money being thrown around but

also see it as possibly

restricting future interest

rate relief. The Australian

market's performance was more

subdued than Wall Street's but

Japan surged ahead. Higher oil

prices helped boost the energy

sector more than 9% with

resources playing a major role

in today's rally but weaker

bullion prices took a toll on

gold stocks. Suncorp has

abandoned talks to sell its

banking unit, the Government's

spending package did nothing

for retailers. Wesfarmers which

borrowed heavily to swallow

Coles is forecasting a tough

year ahead and Harvey Norman

says its fourth quart sales

growth has slow tod 3% while

growth over the past month has

fallen and spending growth

which is a big economic driver

is a major reason Goldman Sachs

JB Weir says Australia is

already in a mild recession.

The orange part of the spending

growth line shows Goldman

Sachs's forecast for growth

which it expects to fall to its

lowest point since the last

recession. It will be even

worse, should house prices fall

dramatically by say 20%.

Commodities markets reflected

the easing intentions with gold

prices taking a hit and oil

rising. The Australian Dollar

is much stronger thanks to the

pick-up in positive sentiment

around the world. It's worth a

little more than US 71 cents.

The dramatic share revival in

Australia and beyond has some

hoping the worst may be over.

At the very least, a fragile

confidence is returning to the

markets with investors keeping

their fingers crossed that it

will last. They're on a roll

but not all investors are

convinced the good times are

back to stay. It will go

sideways now for years. I'm an optimist and I'd like to think

we have turned the corner. I

think we'll see see a short

spurt and then more down

cycle. This week's bounce has

seen the All Ordinaries index

at 9% but it's still down 37%

from its record high last

November. Experts like Commsec chief economist Craig James say

it's too early to feel

optimistic. I think it's going

to be another couple of month before we can say that the

worst is over and we're out the

other side. Others believe last

Friday's share market bloodbath

may have been the turning

point. The investors are now

at least warming to the

attempts by the Central Banks

and by all concerned to really

put a floor under the banking

system. But after being

propped up by Governments

around the world, Peter Warns

believes the banks now need to

lead from the front. The banks

have got to get out and do what

they do best and that's lend to credit-worthy individuals and

corporates to improve the

economic activity in the

globe. Something that won't

happen overnight because US and

European banks are still in

very bad shape. Significant

bad loans on the balance sheets

of banks effectively they need

to be cleaned up before we can

say the worst is over. The

next big hurdle for the

recovery on world share markets

will come tonight on Wall

Street. Everybody will be

hoping the US market can hang hoping the US market can hang

on to yesterday's record

one-day rise. Market

turn-arounds and Government

rescue packages will come too

late for more of Australia's

car workers. Ford is preparing

to announce a new round of job

cuts in Victoria with one

report suggesting up to 500

positions could go. The

development has rattled other

local industries bracing for

the impact of the global

economic downturn. It's a story

that's become all too

particular, more jobs on the

line in an industry that's

already haemorrhaging. People

are angry. They're angry at the

state of the , they're angly at

the state of the economy. In

August, Ford said 350 positions

would go at Broadmeadows and

Geelong but left the door open

for further cuts based on

sales. Today theal company was

guarded about what was in

store. I can't be specific we

have told employees we'll get

back to them as soon as we can

and work through the options

individually. The manufacturing

union has again urged the

Federal Government to reject a

call by the former Victorian

Premier Steve Bracks to halve

tariffs. The Bracks review also

recommended billions of dollars

in taxpayer-tunded assistance.

If they don't provide assist

ance at this end of the cycle

then to be quite frank, we

suspect it may be too late for

manufacturing. Sales of the new

Falcon were 9.5% higher in

September than a year ago and

based on current forecasts,

industry groups warn that

across the spectrum tens of

thousands of jobs are on the

line. The best way to prevent

that happening or to prevent it

being even worse than that is

to take cost pressure off

business. That means tax cuts

for business.

An Australian soldier killed

during the Vietnam war has

finally been laid to rest.

Families and friends of Private

David Fisher, who died almost

40 years ago, attended a

private ceremony at Ryde in

Sydney's north-west. Private

Fisher was a member of the Special Air Service Regiment.

He was killed when he fell from

a helicopter rope in 1969. His

body was buried by enemy

soldiers. Private Fisher's

remains were found in August

this year and returned to

Australia last week. There's

been more heart ache for the

relatives of Britt Lapthorne,

the Australian backpack er

whose body was found in waters

off Croatia last week. Croatian

authorities have released an

autopsy report saying her body

was too damaged to reveal any

clues as to how she died.

Europe correspondent Emma

Alberici reports from

Dubrovnik.Was she pushed or did

she fall in to the bay? Just

some of the questions that

weren't answered by the autopsy

report. The 2-page document

said the body was too badly

decomposed to be able to

establish a cause of death. We

go home with Britt on her last

journey with us. That is better

than no closure at all. The

post-mortem, signed off by the

investigating judge at the

county court, said her body

might have become dismembered

and ruined beyond recognition

after being bashed against the

rocks in the sea. Neither the

report nor the police mentioned

the possibility of murder.

TRANSLATION: In the current

criminal investigation, there

was no evidence of violence on

the body which was found. The

police briefing lasted four

minutes. It confirmed that a

criminal investigation into

Britt Lapthorne's death would

continue. The media were

accused of spreading

disinformation but weren't

allowed to ask questions. I

believe the police statement

said there was no evidence of

foul play. And at the moment,

considering the autopsy report,

it is probably correct but

there's no evidence of anything

else because the body was in

such poor condition and the

autopsy was so inconclusive. Britt Lapthorne's

father and brother are making

arrangements to bring her body

back to Australia where the

Victorian Coroner will conduct

a second autopsy.The ranks of

the State's top bureaucrats are

set to be slashed in next

month's mini boinl. The Premier

Nathan Rees wants 20% of senior

public servants to go. He

estimates that will save the

State more than $30 million a

year. This is about senior

executives. It is not about

front-line staff and that's the

message I want to send. This

is the start on winding back

those back office jobs, it's a good start but no-one will

believe it until it

happens. The Government needs

to make up revenue shortfalls

of $90 million a month. Police

in Victoria have confirmed

they're investigating a sexual

assault allegation against a

State Cabinet Minister. Premier

John Brumby says he's unaware

of the details of the case but

accepts the decision of the

State's industry Minister Theo

Theophanous to step aside until

the matter is resolved. He's

done the right thing in

standing down. He's entitled to

the presump someone of

innocence, right, as any

person. He's not been

charged. Mr Theophanous says he

has no case to answer but it

would be inappropriate for him

to carry on. I have a

responsibility as a Minister in

such a successful Government to

act with complete propriety and

to step aside until this matter

is resolved. His three

portfolios have been

reallocated. The former Federal

Court judge Marcus Einfeld has

had five of nine charges

against him quashed. Marcus

Einfeld is still due to face

trial in Sydney's Supreme Court

on charges of perjury and

attempting to pervert the

course of justice. It's alleged

the former judge lide about who

was driving his car when it was

recorded speeding. Mr Einfeld

and the prosecution tried to

have the court's decision

suppress ed in the media on the

grounds it could prejudice his

trial but the court disagreed.

The Brisbane Broncos have

introduced the NRL's toughest

alcohol restrictions with

players warned they'll be

suspend fed they drink too

much. The club says the

crackdown is necessary because

of recent off-field incidents

including the alleged sexual

assault of a woman in a

nightclub toilet. Karmichael

Hunt, Sam Thaiday and Darius

Boyd have been linked to the

alleged incident. A month ago,

a woman told authorities she

was sexually assaulted by three

men in a Brisbane nightclub

toilet. A police investigation

is finished but the results

haven't been released. We

think it will probably take

about two weeks to review it

internally here and after that,

as I've indicated previously, I

believe it's appropriate to

seek some independent view.

The commissioner says that

could involve the Director of

Public Prosecutions or a senior

counsel. Because of the level

of public interest that it's

important to get independent

advice that confirms the police

determination. Today's

decision comes as the club

launch as new crackdown on

alcohol consumption by the

players. Broncos who drink too

much at the wrong time next

season will be disciplined.

They'll know what the

consequences are if they break

the rules. They could be

suspended. Fines could also be

imposed along with curfews and

Sunday training to stop the

Friday night to Monday drinking

sessions. No, I don't know

anything about it. Talk to

Cory. It has been a matter of

trust but we probably feel

we've been let down in that

area and so we'll take back

that responsibility ourselves

now. The club's strong stance

has support. They're a young

group these day scpedz maybe

they need this leadership type

of stuff to get them in line

and with the new coaching

staff, it can only benefit the

club. I think it tells the

fans the club is serious about

what happened last

month. Michael Jeh has concerns

about why the ban is needed.

Begs the question as to why

professional grown men have to

have these rules in place. The

club says the new rules will be

dumped only when the players

can be trusted again. Australia

probably sees it as the one

that got away. The tourists had

to settle for a draw in the

first Test in Bangalore thanks

to steady inled Ien batting and

poor light. Australia struggled

for wickets who Sachin

Tendulkar was out just 15 runs

short of breaking the record

for Test runs. One down, three

to go. The battle lines are

drawn. Australia had the

ascendancy for much of the Test

but couldn't deliver the

telling blows on the final

day. A quality spinner might

have made things a bit

different today. India says

the Australians lacked killer

instink. They didn't look like

they were ready, especially on

a wicket like this. We were

the only wurpz flying to take

the game forward. Brian Lara's

Test world record of 11,953 is

still in tact. The disbelief

is evident everywhere. Sachin

Tendulkar's 49 left him 15

short and gave Cameron White

his maiden Test scalp. The

second Test starts on Friday.

It was a cagey Socceroos coach

on the eve of tomorrow's World

Cup qualifier against Qatar in

Brisbane. It will be

interesting for you of course.

Who will be in the final 11, I

will not tell you. The Qatar

camp is also playing mind

games. Maybe today I think the

mind is a game for Australia

tomorrow. The Socceroos easily

beat Qatar in their last two

meetings but the visitors were

keen to point out their spot on

the ladder in Group A. We are

in first position, Qatar. The

world golfing landscape won't

be immune from financial

concerns but the Australian

Open, backed by the NSW Government, is still well

placed to survive. The

tournament's been riding out a

tough time and it seems to be

getting better every year and

if we can tride out at a time

like this, imagine how good

it's going to be when it all

gets good. O Geoff Ogilvy will

head a strong Australian cast

at Royal Sydney which is

rapidly expanding with young

guns. Could really explode at

some point. There's going to be

a wave of guys. I don't know

about one. There's going to be

a bunch of guys and it's going

to be good. Irishman Darren

Clarke heads the international

cast in early December. Horse

of the year, Weekend Hussler, galloped impressively in track

work this morning ahead of

Saturday's Caulfield Cup. The

top weight will carry 57kg said

over the 2400m. Tomorrow's

barrier draw could dictate the

4-year-old gelding's chances.

Could be a great blessing if we

could draw inside six. Trainer

Ross McDonald confirmed the

7-time group one winner will

run irrespect of course the

starting gate. The rider to

finished third at this year's

tfred has tested positive to a

banned substance. Bernard Kohl

tested positive to a form of

the blood booster EPO. Only

last month Kohl signed a

contract with Cadel Evans's

team. The Wiggles are heading a

global campaign to get children

to wash up before meals and

after going to the toilet.

# Wash your hands

# After toilet use

# Wash with soap and

water... It's estimated that

5,000 children across the world

die each day from water-borne

diseases and poor hygiene. I

think they can reduce it by 50%

if children wash hands after

going to the toilet or before

eating. The inaugural global

hand washing day is scheduled

for tomorrow. After a wet day

in Sydney, here's Graham with

all the weather details.

Thank s, Joe. It was a wet day.

Ingleburn recorded the heaviest

falls of 26mm, 20mm fell at pen

scprth the Warragamba catchment

received around 30mm.

The main cloud feature

extend along a trough that

stretches from the band of

thunderstorms in NSW' Central

Tablelands to just west of

Darwin. The trough will move to

the northeast of NSW with

unsettled conditions there 'til

around Thursday. Else where,

the high will produce a

clearing and warming trend as

the week progresses. Rain

tomorrow will generally be

confined north and east of a

line from Newcastle to Moree

but it won't be as heavy as

today.

Authorities have

blame adfaulty autopilot system

for last week's mid flight

incident on a Qantas flight to

Perth. More than 70 people were

injured when the plane suddenly

lost altitude. The Transport

Safety Bureau says incorrect

flight information was

transmitted to the autopilot

computer, causing the aircraft

to dive. The plane's

manufacturer Airbus is sending

the findings to all pilots

around the world to avoid a

repeat. That's ABC News for

now. There will be more on the

financial crisis next on the

'7.30 Report' and on 'Foreign

Correspondent' at 9:30. Have a

great night.

Closed Captions by CSI

CC We are in the midst of

the worst financial crisis ever

to confront the modern market economy. Tonight on the '7.30

Report', will the Government's

$10 billion boost to households

do its job and ward off

recession? The situation is

moving very fast and it does

require decisive, decisive

action. And the former Reserve

Bank Governor says, "Don't

panic over super." From the

long-term point of view, and

superannuation is a long-term

investment, it's a good area to

be, to have your savings.

Welcome to the program on yet

another remarkable and dramatic

day in Australian politics and

finance with the share market

continuing to recover and Kevin