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(generated from captions) Live. Tough choices ahead, taxpayers may foot part of Queensland. This is going to require some difficult decisions. There will be spending cutback

also be a levy. Jeparit in strain on the town's ageing levees. Taking a hit, New York's mafia targeted in a one of the largest single day for operations against mafia in the a Tom ck attack, the takes aim at Rafael Nadal in the third round of the the third round of the Aussie Open. Hello, you're ABC News Open. Hello, you're watching won't come O'Connor. Rebuilding Queensland may be won't come cheap and taxpayers

of the cost. a flood levy to help pay the

bill. Julia Gillard says spending cuts are also way. The Opposition spending cuts are also on the

like the idea of a levy. said it would hurt families an small businesses but the Prime decisions will have to be made. This is going to require some difficult decisions. There will be spending cutbacks

working on those decisions now there may also be a levy. I am

and when I'm able have more work to do. We don't

have the total damage bill But I with Australians, we have a But I want to be very blunt

of flood with Australians, we have a lot

Queensland, there will be Queensland, there will be some

economic effects on economic effects on GDP growth, short-term effect on inflation

with flood prices and the

but our economy is strong we will get through this but our economy is strong and

pulling together the same way

we got through the global joins us from Canberra. Melissa, she is really testing the waters, I would suspect, in

terms of how the public are

going to respond to this idea of a levy? Certainly that's Abbott believes. ABC this morning that Julia

Gillard by saying that there may be a flood preparing the ground to introduce one. Certainly it's a the consistent line from the

Government early to

we won't rule anything in or

out. What we had last night on the '7:30 Report' was the Prime Minister making it very clear

that there will be big spending

cuts and there may well be a

tax too. Now, that will be a

tough ask as much as there is large public sympathy for

people who have gotten through natural disasters adding electorally popular there were to be a flood levy would go to help rebuilding introduced it's unlikely it

individual houses, it public infrastructure. We see more likely to be to repair

Queensland's rail but we could badly damaged by these floods

extension to something along the line of an

from as many taxpayers as as a way of gathering money

enormous bill for rebuilding in possible to help with this

Queensland and Queensland and increasingly Victoria too. Do you stick to the idea of getting the budget back into black within 2 years? Well given how

much emphasis is Government has

election, after the election placed on that prior to the

and in the immediate aftermath

of the floods I don't see the

Government has much room to back down now because they've

made it very clear that they

intend on sticking to that 2012-13 financial year deadline they've set themselves for

getting the budget back into the black. Julia Gillard said last night that the sticking so firmly to it, even

when a lot of industry figures

are saying that the Government

should just run deficits for a

bit longer, is the economy will

in 2 years time when we get to be running back at full speed

that point and to manage that

push in the economy the

Government needs to be running

surpluses. So the Government is

trying to make an economic

argument to justify sticking to

that timetable. Now of course a

lot of talk around Canberra

today will centre on today will centre on the Productivity Commission and its report into aged care particularly how report into aged care and into the future. Some rather important reforms are on the agenda? It's a big step forward if the forward if the Government

recommendations from chooses to adopt some of these

Productivity Commission. It's

just in its draft stage now just in its draft stage now but

what it's recommending is that

given how much of an increase there's going to be there's going to be in the

number of people needing

various levels of aged care as

hit their senior years, there we get baby boomers starring to

needs to be an overhaul in way it's its funded. So they're needs to be an overhaul in the

number of nursing home places be scrapped all-together and

seniors who are relying on

these services contribute if

they are financially able to,

to that cost. Now that would see seniors pay between around

5% to up to 25% of the cost of

being in a nursing home being in a nursing home and

they would be assessed for

their financial position as

well as their care position and

that may well - their wealth

could well include if the

Productivity Commission has its

way, the value of their family home. So there may have to the equity in their home to provision for people to access

help contribute help contribute to their

mean nursing home costs. So this may

mean having to sell a family mean having to sell a family

home to be able to pay a bond

to a nursing home or it may

mean the Government providing

reverse mortgages so the equity can be accessed from those houses for people so some big

changes, certainly there's been

broad acknowledgment so far

that big changes are needed. And a lot needed. And a lot more

discussion before they happen. Melissa Clarke in Canberra,

boss Gail Kelly is going to thanks so much. Now the

appear before a Senate inquiry into

little later today but that into banking competition a

hearing is already under way and a representative from ASIC

is taking questions about exit fees. Now you will remember

these are rather contentious

fees that you have to pay if

you want to get out of a mortgage. We may - we are

hoping to cross to that

commission hearing in just a

minute. Also appearing today will be the commissioner of the

Australian Securities and Investments Commission, Peter Boxall. We just have had

a few technical difficulties a few technical difficulties so we won't go there for the

moment but hopefully bring you

more on those exit fees, a fairly contentious fairly contentious issue that the Government has undertaken

to get rid of. Now the small town of Jeparit in north-west Victoria is facing its flood

threat today. Residents have

been fortifying the town with sandbags and keeping their

fingers crossed its levies will

hold. They're quietly confident

that the levee system old and there is a chance it

could give way. ABC reporter

James Ben it is there Andropov smoke to Hindmarsh shire councillor councillor Michael Garwith. Over night Garwith. Over night the Wimmera

River has continued to rise,

certainly the fortification s

and efforts to shore up the

town are ongoing at the moment

but joining us now is councillor Michael Garwith. Give us an idea of how things

are going overnight? The latest on the river this morning the river did rise 200 mm last

night and it's still continuing to

to rise. It's got about 600 to rise. It's got about 600 to go before it will go before it will be at the top of the levee that's mind us

here now. So we've got works still happening here in the

Wimmera Mallee pioneering museum. They're putting some

finishing touches on their

strengthening work they did

yesterday and the rest of the

volunteers going around making

sure of the integrity of the

dwellings that we sandbagged

yesterday and we've got a good

supply of sandbags already

filled and everything's in

place. So from 23450Here on in

I think it's just a matter of

basically wait and see and

patiently and watch. Now there

was some talk from the SES over concerns of the strength of the levees, that they've been

around a very long time and haven't necessarily had some maintenance, what can you tell

us about that? Yeah, the levees - with flows that we're expecting,

that the levee hasn't had a

river event to that magnitude before. These levees were pushed up in the very early

'70s for the '74 flood which

was a 1 in 70 year event, this one is anticipate ed to be one is anticipate ed to be more

than a 1 in 100. So there's

already areas here where the

levees are very spongy and so

that's why we

straight to a scenario straight to a scenario whereas

if this levee didn't exist then

what properties would be what properties would be at risk and we've gone straight there and sandbagged

we've done the second line of

defence first and so in the

event if this levee does fail

then we've got the properties at risk already sandbagged at risk already sandbagged and hence the museum here emptied out and the fuel agent over the

road he's leveed himself in and nah

underground fuel tanks and all

those sorts of things. So I

think at this stage we're very well prepared and it's just a matter of very waiting and seeing how the

situation unfolds. If things do go according to plan go according to plan and fingers crossed the levees do

hold, there's a good side hold, there's a good side to this water now, isn't there?,

in terms of where it's headed

as it gets to tend of the

river? Absolutely. This river

system's been crying out long, long time for good run of fresh water and that's exactly

what we're getting at the

moment. Prior to the run last moment. Prior to the run last

year the salinity levels in

the river behind we were up

around the 200,000 ECs and that's a measurement meruring the salinity in the

wairt and 200,000 ECs is about

equivalent to 4 times sea water

so. There was very little life.

There was no aquatic life in there. And gum trees have perished but now

with this water coming

with this water coming through

here now that will give a huge regeneration happening, I'm

hoping, and the further up

through the lake system we can push the water the better and it reached Wiperfield National

Park in 1974 or '76 after the

'74 floods an I've seen it in

my lifetime so I reckon it

would be great if my would be great if my grandkids

could see the water get to

Wiperfield. What about for farming areas around town, is there a

there a benefit as well as the problems it's problems it's obviously causing? The water's swollen

out from the river and it's

gone out into where people do

farm but it is still in the river flood plains, it hasn't really gone outside of the flood gone outside of the flood plain as gone flood plains, it hasn't really as such. But as such. But anywhere in that flood plain where farmers

moment, it is a huge moisture credit for next credit for next year so there will be will be subsoil moisture there for a

So there will be benefits there the ducks and the wildlife

that's really, really taken advantage. So from Jeparit, it's a situation which obviously has no doubt its challenges in the hours challenges in the hours ahead with the levee system to come under some

that the high water might persist peak. But benefits as well and obviously some some positives for the lakes and been crying out for a drink for a very long most beautiful and tranquil morning in Jeparit. To

southern suburbs. Four homes damaged. Fire fighters damaged. Fire fighters have contained a fire in mereby Parmelia. Resident were told leave or be prepared to fires have been deliberately lit. violence in reag. At least people have died in 2 people have died in 2 bomb attack on the outskirt of the holy stit of Karbala. More than the attacks which target ed FBI is making significant progress in of the New York's mafia. Already many of mafia. Already many of its leaders are serving long jail sentences and a lot sentences and a lot more may soon be joining thep. agents have arrested more than 100 suspected mobsters in a

series of raids. Attorney-General Eric Holder says it's one of the mafia in the FBI's history. We are pleased today to announce an important step forward in our nation's forward in our nation's ongoing fight against the crime families of La Cosa Nostra, the mafia. Today more than 800 federal, than 800 federal, State and

local law enforcement officials individuals including dozens of associated. Some allegations

involve classic mob hits involve classic mob hits to eliminate Other involve truly senseless murders. In uninstance as

victim was allegedly attempt and 2 other murder victims allegedly victims allegedly were shot in a public bar because of a

dispute over a spilled drink. determined to eradicate these criminal enterprises once criminal enterprises once and for all and to

there. Lisa Millar says it's been a coup for US authorities. This authorities. This is the land

of the Sopranos Neal so you caused some waves. You've got

rack tearing, one of the crimes

that someone's been indicted on relates to a 1981 homicide in the 'Shamrock' bar

in Queens over a spilled in Queens over a spilled drink, we're told. So it junior book makers in families, right up to some alleged mobsters. So the that Eric Holder

travelled to Brooklyn to front this press conference himself indication of just how important the Obama

Administration would see like this. They do say that is the biggest sweep is the biggest sweep of the

mafia in modern mafia in modern history. Well Lisa, we just and they're not your typical mobsters, they're track suit pants and jeans and hooded tops. Can the authority there's make

there's make the charges stick and secure lengthy fact just last week 93-year-old mafia member was sentenced to 8 93-year-old mafia over a crime that he'd sentenced to 8 years in jail over one of the over a crime that he'd one of the oldest who were

charged in these raids was an

81-year-old. So while you might

be seeing the younger hooded

members of particular families

in those shots, there's certainly some older, certainly some older, more

senior members there as well.

Whether they can make the

charges stick, well the fact that they had 800 agents and

they managed to do it all predawn and have all the

arrests made of almost 130

people from 7 different families, they got it all done

by 8:00 this morning. I mean that does sound pretty

extraordinary and the fact that

Eric Holder is standing there virtually boasting and bragging

about it would give you an

indication that they feel pretty confident about the

information that they had on these these people. Lisa Mila in washton. Italy's Prime Minister washton. Italy's Prime Minister

Silvio Berlusconi is fighting

for his political life as the latest sex scandal swirls

around him. He's accused of paying for

girl and using his office to

cover it up. He's denying the

claims. Now the claims. Now the Moroccan

teenager at the centre of the scandal also says they are

untrue. The top stories on ABC

News Breakfast - big spending

cuts and a levy on taxpayers are on the Prime Minister's

agenda as she grapples with how to damage. Julia Gillard says tough decisions

tough decisions will have to be made but the Opposition says a

levy would only hurt levy would only hurt families

and small businesses. Emergency

crews in Victoria remain confident an ageing Leee system

in the small town of Jeparit

will hold up against will hold up against rising

flood waters. Residents are not

taking any chances though. They've

They've been fortifying the

town with sandbags. And FBI

agents have conducted one of

against New York's mafia

families. They've arrested more

than 100 suspected mobsters than 100 suspected mobsters in

a series of raids across a series of raids across the north-east of the

Westpac boss Gail Kelly will

appear before a Senate inquiry

into banking competition later

today. Also appearing today

will be the commissioner of the Australian securities Australian securities and

investments commission, Peter Boxall.

got under way so we're going to take a quick listen. ... and generally the standard generally the standard overall

is higher than it was a couple

of year ago. So you wouldn't

say that some of the bigger, in

terms of the outcome and terms of the outcome and say people looking at those

hardship provisions now, with

floodings and other disasters around the country, they

wouldn't be better off with the

big banks or larger

unions or - I think it would be dangerous to generalise in that

way, yes. OK, good, thank you.

Now I just wanted to move to

switch ing of accounts. ASIC developed an account switching

package. That gives customers a

list of direct debit and

credits going back 13 months,

can you tell us how many

customers have used this service? I don't have figures

and we did some work with institutions, both again when

the package was announced we did some initial work about

their implementation of it and

we thought there were some

short falls in the initial impreliminary plementation,

gave them some recommendations and made sure those changes

were made. We did a subsequent review which generally - but I think subsequently has subsequently has been released

under FOI. So there's been some publicity given to it. It found

that overall implementation

that institutions had put these procedures in place. So implementation had implementation had happened,

consist went the requirement.

But there was a relatively low level of usage at that point

and this is probably going back I think I think two years now.

Relatively low level of Relatively low level of usage. For consumers who did use the new procedures generally reported a better reported a better experience

switching than those who

hadn't. I think we identified

one of the problems in the situation is making sure

consumers are aware of

consumers are aware of this possibly of the service and

it's very difficult to it's very difficult to compel an institution to advertise to its customers the fact that it will give them help to

leave. Greg Kirk from ASIC. He will be one of many appearing before the Senate

into banking competition. Let's

take a look at the markets and

US stocks fell US stocks fell slightly overnight with concerns about

the impact of China's comim growth. Now with all the sports news,

Amy bin bridge. Samantha Stosur and Bernard Tomic have both had comfortable

Stosur was barely troubled by Russia's Vera Dushevina in Russia's Vera Dushevina in a

6-3, 6-2 win last night. Her

victory has set up a meeting with with Brisbane International champion Petra Kvitova. Earlier

on day 4 Bernard Tomic set on day 4 Bernard Tomic set up

his clash with Rafael Nadal after a 3-set win over Lopez.

But the other Australian in

action Alicia Molik was no mat

for Nadia Petrova. The other

top seeds had a trouble free run yesterday. Tomic on the back of a thumping

rin over Ryan Sweeting and

Robin Soderling is also through, so is Andy Murray. 27th seed 27th seed David Nalbandian retired from his match against Richard Berankis. Richard Berankis. Nalbandian was suffering was suffering from exhaustion

after his 5-set win over

Lleyton Hewitt. And women's

third seed Kim Clijsters had an

impressive straight sets win.

South Australia is now on top

of the Twenty/20 table after 10-run win over Queensland last night. Redbacks spin es claimed

6 of the initial 7 wickets to

fall as the Bulls crashed in their quest. The Queenslander finished at 9/149 in reply South Australia's States have won 3 of 4 matches. And New Zealand has

consolidated top spot in the national a 91-77 victory over the Adelaide 36ers. The led at every

Zealand opened a 7-point term. Kirk Penney shot 19 points for the Breakers. Matthew Goss Under. Paul Kennedy is at the

start line. Paul, there's been

plenty of people out and about

on their bikes this morning? Certainly has,

I'm at Norwood and they head think to Strahalbyn morning or this afternoon they will get there, this riders.

think that was about the

figure. The start line was here and this was to raise various various causes. Any reason that

somebody wants to choose and so they were all

thing, it looked fantastic and

they pressed through. So it that's how many there were. The

Rann's a very him I'll just update

now and then. You can see I'm at the start line at the start line here and

there's just under 2 before the and we can see there the

businesses as they have been at all of the different places that they've gone through, start and finish lines start and finish lines are all

quite busy and the people that you can see you can see there are all

gathering for the start of the

race. It's going to be a great vantage there's so many things interest with race. Let's now from the Premier and going. The attendances are up on last year. Last year we had

770,000 people over the whole week and currently we're 4,000 ahead of where we were this time last year. And I think

think yesterday was pretty hot

day. I'm expecting a really day. I'm expecting a really big turn out here Amy, there was a Amy, there was a really good finish yesterday. It was lot of riders still there with

a chance to win last 20 or so kilometres was very tough. We saw Lance riders were finished way back. Of course

Mark Cavendish was suffering

from the day before and was some 12 minutings back but the field was quite spread out. ones feeling fit field was quite spread out. The

right at the end went for it

and Andre Greipel was there,

Matt Goss finished Matt Goss finished third and now leads the was siem rn finishing 4th but the winner was Michael Matthews. He's 20

years old and a young star on Tour Down Under is about in

event show casing these young

Australian many internationals an Michael Matthews his and he celebrated across the finish line there and watch for him

him again today. And all as he rides his first year on

the pro tour. It It certainly is a great event for

riders in particular to show their wairs. likely to hold the lead over their wairs. Is magt Goss

the think? It's so tight at the top it really is hard Robbie McEwen still right up it really is hard to tell.

there and Andre Greipel is yet

to burst out and have win in the stage.

right up there win in the stage. But he's

wouldn't discount won two of these before so you

wouldn't discount him. It will

be an interesting day today. It's not as hot as The riders will perhaps be in a sprint looks really strong. He's in

great form. All week coming off

the victory in a Bay Classic seary, the Cancer after the stage one, after the stage one, he won stage one. Yesterday he may

have been the man to challenge

Michael Matthews at the finish.

He finished third but Goss in fact punctured a tire some 5 6 kilometres from the finish so

catch up so that's how well would say he's the out would say he's the out and out

favourite but you wouldn't say

there are others too far behind

him. Lit be an interesting

today and then tomorrow and on interesting as they do a interesting as they do a couple

of hill climb and start to wind

up the race which I have to say

preseason the riders aren't here for

preseason form, they're gunning

for it. Certainly very Paul, Robbie McEwen and Paul, Robbie McEwen and Lance

Armstrong are organising a charity ride, what's the

in Brisbane on Monday morning and Armstrong and McEwen say

they will ride with people. They're hoping to people. They're hoping to get 10,000

for that you pay your $50 and perhaps for that you pay your $50 and charity to be charity to be raised there on Monday. McEwen is from

Queensland and he's transferred not having a team, he

supporting him this week and anyway will all return anyway will all return the favour and support Queensland flood victim and those who have been affected on mono. It should just another reason to just another reason to - for Lance Armstrong to

raising money for charity. raising money for charity. He's

not dominating on the bike he said after day one he was

suffering. Yesterday he really had a good go at it. kilometres from the finish he

was right up there at

at the age of 39 his professional at the age of 39 his farewell suffering professional ride. He's be enjoying himself. Certainly suffering but he does look to

enjoyed himself was negative press about than the day before when there

have been out in force enjoying him as we. Thanks for to us. Thank, to us. Thank, Amy. South

Australian Premier Mike Rann

was saying earlier they reckon they will have more spectator last year. I they they had they they had 770,000 people lining the street. Do you think Lance Armstrong has had impact on bringing out? Quite impact on bringing the number organise rers now saying

in place. It's now a world

class event, with big rider

comes through they do like to

make the trip out to Australia

and get their year off to a

good start. They say good start. They say they've got mechanisms in place to

carry that popularity over.

there's so many keen cyclists

around who are keen to ride the

stage before the pros get through. A huge weekend of sport. We can't not talk about the tennis because there's two block busters on and the organisers of the Australian organisers of

Open must be Open must be thrilled. Rubbing

their mands in glee. We've got

big action today and Federer

coming up after something of scare. He just didn't look coming up after something of a

quite his normal self.

Obviously finding his feet

coming into this tournament. If

we saw from Nadal you look at

yesterday. That was a funny

match from Federer because match from Federer because he looked as though he was breezing through. He took the

first 2 sets with ease and then

whether it was a loss of concentration but

has had a good record against Federer and can rattle Federer and can rattle him. It

was really interesting. I saw

Rafa play yesterday Rafa play yesterday on centre

court and he looked very hot

and I was wondering at one point whether he was still suffering a bit from suffering a bit from the flu

because he was out there a because he was out there a bit,

just seeped to want to get the

job done but I guess job done but I guess he wants

to conserve energy and so far total across his matches. Tomic court for about 2 hours in this week

had better watch out

tomorrow. I think so. But what

a gifted youngster. We do there's big for a gifted youngster. We do hope

in the future. He's so athletic

and mobile for a big fella. 195

cm. He seems to be bulking out

at the top, filling out his at the top, filling out

frame and if he can keep his

court movement up what a great future. Very exciting as is Sam

Stosur who is looking in terrific form as well. Now

Vanessa joins us for all the weather have a nervous wait in Brisbane

this morning. A higher than usual king tide will occur