Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Disclaimer: The Parliamentary Library does not warrant the accuracy of closed captions. These are derived automatically from the broadcaster's signal.
ABC News (Sydney) -

View in ParlView

(generated from captions) McDonaldis the next oneHousing

This Program is Live


Tonight - interest rates go

up - the banks are quick to

cash in. Today's decision will

be tough on family Budgets. The

State hits the jackpots, will

the Minister let it ride. What

he should do is take the

billion and stick it into the

North West Rail Link, and start

it tomorrow. Chile reaches for

help amid disillusionment and

despair. And bowled over, from

cricket tragic to cricket

supremo. I look forward to

working in the interests of the

game that I have loved all my life.

Good evening, Juanita

Phillips with ABC News. It was

always a question of when, not

if interest rates would go up

again, and today the Reserve

Bank put us out of our misery,

the RBA lifting the cash rate

by a quarter of 1% and most economists believe it is the

beginning. Within hours of the

announcement the banks moved

too. So far the Commonwealth,

ANZ and St George all passed on

the rate rise in full. Chief

Political Correspondent Mark

Simkin reports. Deanna Mann

bought a house and land package

in September, when the official

cash rate was 3%. Construction

hasn't started yet, and rates

are already 1% higher. Do you

think that will be Eddie's

bedroom. Yes. This latest hike

will add $40 a month to her

repayments. I'm worried about

obviously expenditure, our

household bills, things that

will have to be put by the

wayside. Today's decision will

be tough on family Budgets, but

it's important to understand

that rates are at 1970s lows. The Reserve Bank raised

rates by 25 basis points,

taking the cash rate to 4%. The

Central Bank told the markets

it's applying the brakes

because infligs is close to target and economic growth

close to trend. With the risk

of serious economic contraction

in Australia having pass it's

appropriate for interest rates

to be closer to average.

Today's decision is a further

step in that process. That

suggests more steps to

come. Mortgage rates with about

is percent below the average of

the last decade, so the odds

are we are likely to see 2-3

more hikes from the RBA this year. The Opposition says Kevin

Rudd is responsible. The

Reserve Bank is increasing

interest rates faster and

higher than any other

comparable county in the world.

Rate rises are an inevitable

consequence of a recovering

economy that is outperforming

the rest of the world. He had a

blunt warning for the

banks. There's no justification

whatsoever for any increase

over and above the official

cash rate increase. That's a

recognition rising rates hurt

governments as well as home

owners, especially in an

election year, and even though

people with average mortgages

are $6,000 a year better off

than they were 18 months ago.

The rate increase will hit

many borrowers as early as

Friday. Retailers are worried

shoppers will spend less, and

counselling services are

preparing for a bigger demand

on their services. As for

business groups they feel the

Reserve Bank is being too optimistic about the state of

the economy. Business groups

did find a silver lining,

higher interest rates are a

vote of confidence in the

economy. But for manufacturers,

the Reserve Bank's move is a

head wind they can do

without. I believe that the

economy's more fragile than

they think, and this could well

pose a setback to many

industries, particularly those

exposed to a higher currency and pressure on margins. Retailers are

expecting to feel the pinch as

borrowers have less to spend on

other things, first home buyers suffering from the Christmas

spending hang over will be

pushed to the limit. They are

the ones hit hardest by

interest rate rises, and after

a succession of interest rate

rises, they are presenting in

their numbers. The banks acted

swiftly, Commonwealth and ANZ

will raise rates by 25 basis

points in line with the Reserve

Bank on Friday. But it also

means higher deposit rates for savers. It's good news for

self-funded retirees, anything

that brings in extra income to

the household is positive. Although the global

financial crisis left some

retirees with huge losses,

forcing them back into debt,

they'll take another step

backwards while their cash-rich

counterparts get richer. The

Treasurer says he's hit the

Jackpot with his deal to

sell-off the State's lotteries,

the gaming group Tatts will by

$1 billion for exclusive rights

to the business for the next 40 years, Eric Roozendaal says

some of the money will be used

to pay off debt. The Opposition

says it should be spent on the

Rai. State Political Reporter

Matt Wordsworth. The billion

price tag scratched all

tags. Proceeds from the NSW

Lotteries allows us to reduce

State debt and put money into

front line services. The

Opposition has other designs.

What he should do is take the

billion dollars, sticking it

into the North West Rail Link

and sporting it tomorrow. Tatts

runs Powerball and Oz Lotto,

and thanks to today's deal has

80% of the National market. You

could spend the rest of your

life. It hopes to increase the

business here by 3% a year,

taking New South Wales from its

place as lowest spenders per

capita and will use scratchies

to do it. In Tasmania we added

40% of the sale. Workers

transferring to Tatts will keep

pay and conditions, but

eventually staff is trimmed. Between Queensland and

Victoria as our existing

business, we have less people. The Public Service

Association isn't happy about

the Government losing a

state-owned asset. What they

have done is given away a cash cow. The Government won't

receive the $50 million annual

profit but will pocket gambling

duties of $330 million, more if Tatts recognises its growth

plans. Scratchies and lotto was

described as a benign form of

gambling, Wesley Mission says

pokies account for 85% of their

problem gamblers. The Gaming

minister says $12 million a

year is spent kaunsing

gamblers. We work with those

who are problem gamblers, that

will not change. With the sold

on NSW Lotteries, the next

asset is the state-owned energy

business. There's a bridge

behind us, let's hope with have

the title deeds for that come

next election. After a 9 month

wait the nation will learn tomorrow how the Federal

Government intends to fix the

health and hospital system,

Kevin Rudd will unveil his

health blueprint, it's likely

to involve a Federal take over

of hospital funding, from

Canberra Political Reporter

Emma Griffiths. The Prime

Minister likes his ABC's. Good

morning, boys and girls, are

you doing the letter B. Kevin

Rudd is moving on to

arithmetic, doing the sums on a

new funding model for the

health and hospital system. We

had more than a decade of

wasted time on this, it's time

to get on with the job. He

anoubsed his intention to

release the Government -

announced his intention to

release the Government plan via

Twitter, details will be spelt

out tomorrow, a likely option

is to take control of hospital

funding by setting up a central

authority to distribute State

and Federal cash, it's expected

that money will be allocated on

the basis of patient numbers

and hospital performance. It is

a challenge, both to the

hospital, and doctors and

nurses working in them to come

up with the goods. But it is a

potential to have efficient

funding combined with effective

health care. The Opposition's

mounted a pre-emptive

attack. Do you trust the

bureaucrats who have given you

the Pink Batts disaster to give

you a functioning public

hospital system, and I think

the answer is people will doubt

it very. The Prime Minister's

dismissed that as the ABC of

Opposition under Tony Abbott. A

is for argue, B is for block

and C is for criticise. The

Prime Minister says negotiations with the States

and Territories, will go on

even after his plan is revealed

tomorrow. If they don't like it

he's holding out the threat of

calling a referendum. Hundreds

of people have been evacuated

as floodwaters surge through

the southern Queensland town of Charleville. Bradleys Gully has

broken its banks, sending waves

of water through the town. More

than 300 people have been taken

to the town's showgrounds until

waters subside. The area has

been declared a disaster zone

and residents are eligible for

emergency payments. The wane

swamped the south-east corner

of the state as well, the gold

and Sunshine Coast posted falls

of more than 100m overnight. In

the Sunshine Coast hinterland

roads were closed, schools shut

early so students could get

home The heaviest falls

expected is along the Sunshine

Coast coast, the Wide Bay,

Burnett region. And around

Brisbane more than 90mm fell

overnight with flash flood ing

in low lying areas. Chile has

put out a call for

international help, and the

world has responded quickly.

The US, Europe and Chile's

South American neighbours are

pitching in to help the country

deal with the earthquake and

tsunami disasters, Australia

pledged $5 million, but on the

ground the situation is dire,

looting hisn't been stopped and

many victims are waiting for

basic assistance. ABC Correspondent Craig McMurtrie

reports. It's survival of the fittest.

Desperate hands reach up for

anything they can grab, and

hold on to. At another

warehouse in Concepcion, those

that can carry them lug huge

bags of flower, "I need food, I

can't eat bread, this will help

me, we do what we have to

do". At a service station

watched by police people wait

for hours to grab whatever

petrol they came. Nearby

firefighters are drilling holes

in a fawn apartment building

trying to reach those trapped

inside. They found bodies but

pulled out dozens of survivors.

Elsewhere there's simply

nothing left, "We found 42

bodies, he says, which we have

given to the relatives. And

with little or no warning for

many families living near the

coast, the waves that came

after the quake were

devastating. Their mother dead,

these children made a desperate

plea on local television for

help to find their father. With

hospitals overwhelmed, and an

estimated 2 million people

without shelter Chile's

Government asked for

international help including

field hospitals, water

purifiers and generators,

supplies are arriving. So is

the army. Dozens of looters

have been arrested for ignoring

a nightly curfew. And not just

in smaller centres. This

ransacked supermarket is in

Jonathan Santana. And on top of

everything else, Chile's relief

effort was rocked by news of a

plane crash, a 6-strong aid

team on its way to Concepcion,

there were no survivors.

Radovan Karadzic is accused of

some of Europe's worst war crimes, but he insists his

cause was just and holy, the

former Bosnian Serb Leader be

gan out lining his defence at

the resumption of his trial in

The Hague, denying ethnic

cleansing or making

concentration camps. Europe

Correspondent Philip Williams

has more. After months of his

strident criticism of the

tribunal, finally Radovan

Karadzic began his defence. The

core of his argument that

Bosnian Serbs were under attack

by fundamentalists intent on

creating an Islamic state in

Bosnia, he had to protect his people.

TRANSLATION: I will defend

that nation of ours and their

cause which is just and holy,

and in that way I will be able

to defend myself too and my

nation because we have a good

case, we have good evidence and proof. The former Bosnian Serb

Leader is accused of 11 crimes

including two charges of genocide over the murder of

8,000 men and boys at

Srebrenica, and the siege of

Sarajevo, and faces charges of

persecution, deportation,

hostage taking and crimes of terror. Radovan Karadzic

detailed his version of history

leading up to the war, saying Serbs were Serbs were trying to protect

their lives and property. For

the mothers of the victims of

Srebrenica, the man regarded as

a war criminal failed to

acknowledge any

wrongdoing. After 15 years he

didn't show any remorse for

what he said, he's the same war

criminal he always was, he's

not a hero, he's a coward",

this mother says, in the

Sarajevo marketplace the lack

of remorse prompted more anger,

"I don't believe The Hague can

punish him enough, they should

send him back to us here in

Sarajevo, we'll hang him in the

middle of the town", says this

man. The war may be history,

consequences are yet to be

settled, some fear punishment

may never fit the crimes. Tonight's top story, interest

rates on the rise again, with

mortgages set to rise from this

Friday. Still to come,

broadband reaches the mainland.

All the uncertainty about an

Emissions Trading Scheme hasn't

stopped aluminium giant Rodrigo

Alvim signing a deal to power

its Victorian smelterers with

brown coal until 2036. Environmentalists condemned the plan

plan saying locking in coal-fired power means there's

no incentive for the company to

cut emissions. We have a

problem in that 96% of our

electricity in Victoria is

generated by burning coal,

entrenching the problem If you

run a smelter you need

long-term power, 24/7 it has to

be reliable and globally competitive. We believe we

ticked the boxes. The company

says the deal safeguards 2500

jobs. Environmentalists

celebrate a rictry in their

battle to save the River Red

Gums in the Riverina. More

than 100,000 heck will be

protected from logging

understand a State Government

plan, they include parts of the

Millewa Forest, and state

forests along the Murray, Murrumbidgee, and Lachlan Rivers, 80 Rivers, 80 million has been

committed including

compensation for timberworkers

affected by the position. It's

an estimate, somewhere in the

range of 150-180 jobs. The

Greens are angry that much of

the Millewa Forest is open to

logging. Virgin Blue has

appointed a former Qantas

executive as its new boss.

After 36 years with Qantas,

John Borghetti resigned last

year after losing the race for

the national carrier's top job.

Today Virgin Blue announced

he'll take over from its outgoing Chief Executive Brett

Godfrey in May. John Borghetti

says it's turbulent times for

the aviation industry. You have

the challenge of economic

conditions, the environment,

whether it's oil or exchange

rates and whatever it is, and the challenge of

competition. Qantas had an

announcement of its own, the

surprise res ig nacks of its

Chief Financial Officer, after

less than 18 months in the job

Colin Storrie says he's

stepping down for health

reasons. On to finance, and the local share market and the

Australian dollar have both

traded slightly higher. As Alan

Kohler reports, the Aussie

currency fluctuated wildly

after today's rate

decision. The economists all

nodded wisely after the rate

hike was announced and said

they expected it, a consensus

is forming around 1% by the end

of the year, if the economy

fires on all cylinders as it is

at the moment. The dollar is

heading higher. By the way,

it's above 60 British pence for

the first time in living

memory, the view about rates

going to 5% was boosted by

retail sales data for January,

up 1.2% versus a consensus

forehast of half a per cent.

Looking at the Aussie dollar,

looks like some traders punted

on a bicker hike than a quarter

of 1%, currency dropping

sharply. The All Ords closed a

third of 1% higher, having more

to do with Wall Street last

night than interest rates

today. US stocks rose, there

was good news about the

economy, a survey showing

manufacturing industry

expanding and strong December

quarter GDP numbers from

Canberra. 5% growth, about the

same as America's. Here are highlights from the

market. Virgin Blue announced a

new CEO former Qantas executive

John Borghetti, both shares

went up. Tatts fell 7% after

buying the NSW Lotteries,

Nufarm fell after reporting a

half yearly loss and Wesfarmers

lost some recent lustre,

tonight's graph is a long-term

look of US Government outlays

of as a percentage of GDP. 25%.

It's interesting to compare

what happened now with the period after the Great

Depression back at of the start

of the graph when President

Roosevelt's new deal was in

place, President Barack Obama's

new deal is twice as big as

FDR's in the '30s. A broadband

roll-out is gathering pace with

the Federal Government

announcing the first mainland

strikes. Telstra did its bit to

spoil the party, the telco

warned investors the scheme is

likely to destroy the value of

their shares.

It's the biggest cable roll out

in the nation's history. The announcements announcements keep coming This

is an important milestone in

the delivery of this historic infrastructure project for

Australia. A part of Brunswick

in Melbourne's inner city will

be the first mainland

metropolitan centre to take

part in live trials. If it

means people there better

access to Internet and quicker

and speedier, I think it's

fantastic. The small South

Australian town of Willunga is

set to be connected, locals say

reliable high speed broadband

will help the wine, food and

tourism hub become more


competitive. It's great news

for the region, if it all comes

to pass, it's an important part

of our interest

structure. Around the country

the roll out will include two

suburbs of Townsville,

Sydney and townships near Kiama south of

Sydney and Armidale in NSW.

Telstra attacked the laws

accusing the Government of

moving into the retail

communications market, as well

as the wholesale. In a letter

to shareholders today it said:

Share price went below $3

before the bill. The retail

price of the Government's

broadband remains a mystery,

today there was mint that the first trials in Tasmania will

be priced to attract consumers,

but that the rest of the

country will have to pay more.

A Sydney carpentry teacher

denied that he used taxpayers

money to build a deluxe greyhound kennel. Garrie Cooper

has been accused of getting

TAFE to pay $30,000 to house

more than 20 of his greyhounds

at today's corruption inquiry

he denied instructing tradesmen

to send bills for the kennel to

the college, he said he would

have paid the tradesmen but he

hasn't received invoices,

council assisting the ICAC say

he might receive the invoices

shortly. A report is expected

within a few months. John

Howard's love affair with

cricket won him a key role in

the game's future, the former

Prime Minister is Australia and

New Zealand's choice for

President of the International

Cricket Council, the sports

ruling body, he'll assume the

role in the middle of 2012.

Here is Peter Wilkins. Hits cricketing skills were

questionable at best, there's

no question John Howard's

political prowess, that might

be needed to keep peace in the

cricketing world increasingly

dominated by Indian politicians

and businessmen. The strength

of it on the Indian

subcontinent, for example, is

remarkable. I would like to see

it grow in other areas as

well. A self-confessed cricket

tragic, Mr Howard regularly

weighed into the politics of

the game as Prime Minister. Now

he'll be in a position to guide

its future. I have views, but

they are about promoting the

future of the game. Preserving

the three forms, and

understanding there's a place

for each of them. Australia's

current leading cricketing

figure arrived in New Zealand, confident Australia can

continue its undefeated one day

summer. We'd like to think our

50-over cricket has been our

strength in the last couple of

years, we want to continue on

that in this series. A critical

eye has been cast over Tennis

Australia in light light of the

derth of Australian talent at

top levels of sport. All it is

now is about making money, and

the health of the sport is

jeopardised. I think the team

is doing a magnificent job, I'd

love input and direct

involvement from

anyone. Australia's No.1 player

criticised the process, which

delivered the current crop of

young players some of whom have

been called in to represent in

this week's Davis Cup tie

against Chinese Taipei. We are

looking at guys ranked 250-400

getting a gold jacket to play

Davis Cup, that's scraping the

barrel. Davis Cup captain John

Fitzgerald disagrees, believing

success is around the corner. In terms of junior

group coming through, I'd argue

that maybe it's the best group

between 13-16 we have had in

more than a decade. Jason

Culina will lead the Socceroos

in the vital Asian Cup against

Indonesia in Brisbane. The

29-year-old Gold Coast

midfielder will play his 45th

international. Coach Pim

Verbeek says his predominantly

A-League squad is primed for a

big effort. It won't be easy,

they'll fight, it's up to

us. Two former world champions,

Australian Chelseas Hedges, and Peruvian Sofia Mulanovich made

up for first round defeats on

the Gold Coast moving to the

third round, both are former

winners of the event. A former

champion Dean Morrison won

through to the third round in

the men's event along with Kai

Otton, and Andy Irons. To

breaking news, and police have tonight detonated three

suspicious devices at a house

in the Sydney suburb of South

Maroubra, the devices were

found inside a house, a nearby

car and a gas meter at the

front of the property. So far they've detonated three devices

and at the moment, as we speak, there's another robot in the

house going through the hour,

there's a number of other

device s within the

house. Police hope to have the house cleared by late this

evening. Shockwaves in Chile,

mind games across the Pacific,

the tsunami alert following the

earthquake in Chile sparked

the island nations hit

by a tidal surge months ago,

nowhere more so than Samoa,

where 140 were killed. As ABC's correspondent Sean Dorney

reports, the locals refuse to

give up hope. The Taufua family

beach hut business wiped out

five months ago is being

regulated. Tai Taufua and other

survivors buried 14 of their

extended family members. We

lost our father, some sisters,

one sister-in-law, six nieces.

One grand-daughter. And some nephews. Tai Taufua nephews. Tai Taufua says it

difficult to talk about the

tsunami, but life has to go

on The only thing that we can

do now is to rebuild, and that

gives us strength to move on,

and hopefully we can give hope

for the others to move on. Her

family has now moved inland on

to a plateau, where they were

building before the tsunami

struck. But the family business

depends upon tourists, and that

means rebuilding Fales on the

beach. The beech is the beech.

We can't change the beach. And

this is natural. And this is

why people want to come

back. Tai Taufua says donations

from former guests have helped

them re-establish their

business. I do believe in god.

Now we have learned a lot from

the tsunami as well. Everything

is happening in the world is

all part of learning. These

Samoans believe it's their

faith in god that helped them

rebound so quickly from the

tragic devastation of the

tsunami. Time for the weather

now, and after a warmer than

average summer, there's been a

cooler than average start to

autumn There has been with

maximum temperatures across the

state around up to 10 degrees

below the March average,

northerly winds rutting in a

warming trend over the coming

days, today's tops of 22 and 23

were between 1-6 below the

average, Bom hill and Auburn

the wettest at 1mm. Isolated

showers and drizzle periods

expected overnight and tomorrow

morning. Low over the inland of

the Queensland is extending

rain across the northern border

of NSW, light showers falling

along the remainder of the

coast, apart from the South

Coast. The northern half of the

state recorded maximum temperatures, 12

temperatures, 12 below average.

The Northern Rivers and the Mid

North Coast received heavy

falls and lighter falls along

the rest of the coast and

northern border. Isolated heavy

falls continued with the best

about of the Northern

Rivers. 61mm of rain fell in

Brisbane last night with a

further 16mm today. And the

heaviest of the falls north and

west of the city. Monsoon low

that brought the heavy rain

will move along the South

Australia and NSW border from

tomorrow through to Friday,

connecting with a trough moving

through the bite, drawing rain

across the inland of the state

with moderate falls. Over the weekend, a cold front will

cross the state, pushing the bulk of the rain fall out of

the coast. Over of the next

four cases the inland will

experience accumulated falls of 15-50mm, lighter about the

mid-north to the South Coast.

Showers and drizzle in Brisbane

tomorrow, a dry day in all

southern capitals. NSW -

isolated showers or drizzle

from the Northern Rivers

through to the Central Coast.

Partly cloudy, dry for the

Illawarra and South Coast.

Brief drizzle periods about the

eastern side of the Northern

and Central Tablelands, and dry

and sunny over the southern

half of the inland, increasing

cloud in the north, rain areas

spreading south. For the most

part Wednesday will be dry in

Sydney, cloudy. Possible

isolated showers or drizzle and

most of those will be in the

morning with tops of 25-27.

Looking at generally light

winds shifting north-easterly

as we head into the afternoon.

There's considerable variation

between the forecast models

beyond Friday. Showers least

likely on Thursday, rain

developing Friday, and a shower

and a cool change with a

thunderstorm on Saturday. And

this is ABC News for this

Tuesday. I'll be back with

updates during the evening. For

all the overnight developments

don't forget 'ABC News

Breakfast' first thing tomorrow

morning an ABC2. Goodnight. Closed Captions by CSI

Australia is amongst the

least affordable houses in the least affordable houses in the world. Tonight on the '7.30

Report', with interest rates on

the rise, what is driving the

national property boom.

There's a severe shortage of

properties to sell. We'll

have enormous problems

providing housing for all these

people needing it. This Program is Live


Welcome to the program, the bad

news from the interest rate

rise is obvious to anyone with

a home mortgage or carrying

business loans, the good news

is the Reserve Bank says the

risk of a serious slow down in

Australia has passed. And that

economic conditions last year

were better than expected. One

piece of evidence of a rebounding economy quoted by

the bank was the strength of

the housing market which it