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(generated from captions) The Federal Opposition says fail to deliver. Australians the Government banking re forms

today get nothing out of today get nothing out of this banking package from the

Gillard Government. It's so much spin and so little substance. This Program is Captioned Live. Latest WikiLeaks cables

reveal Australian fears about a nuclear war in nuclear war in the Middle

East. Locust invasion - town s in flood vafaged NSW encountary new new threat. A catch-22. We need

the rain and this is perfect weather for them at the rain and this is the

moment. And the final round of perfect weather for them at the

the Australian PGA to be played

this morning.

Good morning, it's Monday, 13 December, I'm Michael

Rowland And I'm Virginia

Federal Government is facing Trioli. The top story

strong opposition from Banks about plans to scrap

they might charge mortgage exit fees. Banks say

they might charge higher for interest rates to compensate

Government goes ahead with

plans to boost competition in the sector. Federal Treasurer

says he won't allow banks to bring in new charges when it

scraps the fees next year. But Hockey

Hockey says the plan fails to

deliver for family and small

businesses. No-one can can remember what the first reform package. Is this a

reform package why is there

nothing there for people who

have a loan now? Why is there nothing there for small businesses that are paying up to 14% right now? Why is there

nothing there to deal with the

systemic challenge of now the

Government having to deal with financial institutions that

cannot fail? If it was reform, it would be considered, it

across the board. It's not would be detailed, it would be

reform. The fact the the

conference on a Sunday in front Government had

of the Australian flag with two

that the nodding heads behind him says

to spin this up as something far more significant than what

it really is. Joe Hockey

speaking yesterday. For more,

Melissa Clarke ins us now from

Canberra. Good morning, it's a

strong response from Joe

Hockey. What is Canberra

actually outlined that it wants

to do? What we've had is a

fairly strong political reaction to Wayne reaction to Wayne Swan's

proposed policies, and partly

because he is theless one to

the Opposition and Joe Hockey get in on the

outline their 9-point plan.

While there are a couple of

point s that coincide between

the Opposition's plan and the the Opposition's plan and

getting the ACCC to look at Government's plan, things like

price signaling, cracking down

some moves on xirt some moves on xirt fee,

although as we heard from Joe Hockey there he wants it to go further than what Wayne Swan is

proposing, they do have different ideasant what should

be done and Joe Hockey got into that space before Wayne Swan.

We also have the Greens who are

saying that they wreck some of

the movings but they also want their particular their idea to have a their own ideas to be adopt, in

ban on foreign ATM fees where

if you use a bank's ATM that is

not your own bank you can pay

up to $2 to withdraw money or

do a transaction. So the Greens

say they will be pushing hen

this comes before Parliament to

have their ideas included too. Independent Senator

company Nick Xenophon has said he doesn't there there should

new ones. So the Government has be a differentiation between

a lot of negotiating to do to

get this lu the lower and upper

House when it comes to

investigating a number of these

itiumings. If you look at approach the Greens Adam Bandt itiumings. If you look at the has been taking, has been taking, it looks like all sides will whether playing

hard ball to get what they

want. On mortgage exit fees we

are very pleased that the

Government has taken seriously

excessive mortgage exit fees. the Greens' call to get rid of

Mortgage exit fees really are a way of just the banking

profiteering and getting rid of

them is a move that is well overdue. On the question of

Government has squibed it. excessive $2 ATM fees the

don't need another inquiry or a

taskforce or a website to tell

us that excessive $2 ATM fees

are hurt ing people. We don't

need to monitor excessive fee,

we need to get rid of them. We will be having another inquiry,

though? We will indeed. In fact

we have the Senate inquiry into

banking system starting today. the competitiveness in the

They will be having hears Sydney. There's no coincidence

that the Government managed to

release its banking reform package just before the start of the inquiry because it mean #2s focus of the inquiry will be around Government has put forward

rather than Hockey's 9-point

plantor Greens' ideas as we

heard Adam Bandt outline there.

We will see some stuff question ing because there's significant players appearing players appearing before this

inquiry today. The Reserve Bank govern or Glenn Stevens s will

be there as will the NAB Cameron Clyne and Treasury department officials. The CEO also come before the inquiry so they're pretty heated questions from they're likely to face some

the MPs and senators who have

found that bigging in d d d -

digging in on the banks has

been a good political move. In other news the United States

has suffered its worst combat

incident in Afghanistan since

May. Six US soldiers and two Afghan troops were suicide bombiner the province

of Kandahar. The bomber of Kandahar. The bomber blew up

his car outside a US military

base. Swedish police are investigating two bombings in Stockholm as acts of terrorism.

A car blew up in an area

popular with Christmas shoppers. Witnesses say a man found dead after the second

blast had been carry an

explosive device. Police are investigating an & threaten ing email that was sent before the

flooded homes and swamped roads

in Queensland. Three of the

isn't four hours north of main roads to Bundaberg which

Brisbane were cut, limiting

had to rescue a number of access to the city. Authorities

people from the flood waters.

More rain is forecast for later

in the week. A fisher man has been rescue ed by two Black

Hawk helicopters off the coast of Queensland last night. of Queensland last night. The

Army choppers lifted the man

from a tug boat 150 nautical

miles north-east of Bundaberg. He is said to have fall en ill

while out figure. An independent economic forecaster

is warning retailers they're in for a tough Christmas. Access Economics says this Economics says this year's

growth didn't translate well

into retail sales. It also pre

disict distincts that jobs growth will begin to favour the

resources States - Queensland

and WA - over the next and WA - over the next two years. There have years. There have been protesting in Cairo over the results of the country's parliamentary

party is expected to take 97%

of seats in ejirpt's Parliament after minor - Egypt's

Parliament after minor parties decided to boycott the second

round of voting. In front of

Egypt's Supreme Court,

protester s raild against an election they say was rigged

from the start. 'This is a

decollusional parliament with a

chance.' The week after its

election the anger in Egypt

hasn't gone away, but protests

here are tightly

authorities are not taking any chances with this demonstration. Demonstrators are outnumbered are outnumbered by police by

about 10 to 1 and this about 10 to 1 and this entire

street is lined with more trucks filled with trucks filled with riot officers. The main Opposition

party, the Muslim Brotherhood,

held a fifth of the seats in

the last Parliament now it has none. We know and everybody knows that there was

fraud. This man won his seat by

a record margin at the last

election. This election. This time round the numbers mysteriously resoresed.

TRANSLATION: We observed a lot

of violations. intimidations and a lot of

violence from party thugs and

security forces. Mustapha said

the ruling party wanted to give

Mubb a big election - Mubb a big election - mueb a

big election - win. Instead big election - win. Instead of giving him 75% of the party they give him 100%. This election was despite a few irregulatories

and it was conducted in the majority of polling

stations. The US has publicly

expressed its concern over the

fairness of the vote. But not Australia. Even though Kevin

Rudd met with President Rudd met with President Hosni

Mubarak on Saturday. The fig

leaf of democracy is gone but

for all the anger is likely to be resolved not is likely to be resolved not on the streets but in the courts. The rain has stopped in The rain has stopped in the Riverina district of NSW but now the locusts are now the locusts are back. Local

sports club in the town of

Howlong say they're struggling

to run their regular

competitions due to the influx of locusts Golf courses,

bowling greens are littered

with locusts. I think the main

problem for the golfers because they're on the greens

they're - we need a smooth

putting service. By the time

they sweep the locust

line, they've walked back and

gone to putt the locusts are

back again. It's a catch-22. We get the rain

get the rain we need it. And

then these come and it's just

the perfect weather for them at

the moment - the heat, the rain, give s them a bit of humid ity. I've lived in the

city for the last 14 years. I u

grew up as a local here and to

come home to this come home to this I can see why the farmers are being driven insane. We We mowed the

greens, cleaned them all up and

there was no locusts, within an hour they were all back. So

just to get a game in place we

had to sweep and use a blower to get rid

the live ones but quite a

number of dead ones that had just #2k50id on the

just #2k50id on the greens. - died on the

beleaguer ed folk of Howlong. I

actually saw a actually saw a very brightly coloured locust crawling up the front of a frock on a mannequin

in - behind a shop front in the Burke Street mall Burke Street mall in Melbourne

of a weekend. So they've made

it down to Melbourne. And it

was fitting in very nicely with

a very multi coloured patterned frock and this locust itself a Home and I thought - A nice topical Christmas

display. I went in and hold the

hapless shop assistant, they were not pleased.

water broker has found what it beliefs is a $5 billion

shortfall in the Federal

Government's water reform costings. Questions have been raised over the use of

taxpayers' money. Kim Robertson reports. The debate over a plan

to cut irrigators water to cut irrigators water use has

been an emotive one, now the Government underestimating what is

required to restore the required to restore the health of the Murray-Darling Basin. It's pledged $12.1 billion to return 3,000 billion to return 3,000 to 4,000 gigalitres of water to the environment through water

byebacks or water efficiency

measures but a water market

broker says, based on average

water prices, that is between

1.5 and $5 billion short. The

Treasurer needs to find another pot of money to potential ensure that these water reform targets are well funded. In its annual water market annual water market report,

Waterfind also highlights the potential conclict of potential conclict of interest between the ft's roles as

policy maker and participant.

It says the dual

responsibilities don't meet

international bench mark and it's bad look for Government. There is a

potential live conflict of

interest where the Government

creates the water market and plays the water market. That is one thing that needs to be taken into account. Waterfind says there needs to be tighter legislation for water legislation for water markets including a leer situation between those who make the

rules an those buying water. The Federal Opposition says the

Government's water reform

agenda is in a-Kaye honourable senator. The head senator. The head of the Murray-Darling Basin Authority walked away last week, there's

a $5 billion black hole this

week, and industry is raising questions about the probity of

the Government's approach for next week. The Federal Water Minister's staff respond to questions for answers to the report's

findings. Now let's look at the

front pages of the major

newspapers this morn. The the 'Age' reports that diplomatic cables released by WikiLeak s show Australian intelligence agencies fear irz

real may launch military strikes against Iran. The 'Canberra Times' says the

agents is I also feared Iran could draw Australia and the US into a potential nuclear war with cables also reveal senior Australian dip low Australian dip low meats warned

Kevin Rudd his condemnation of

Iran risked retaliation against

Australia's embassy in Iran,

says the 'Sydney Morning Herald'. The 'Australian' reports Wayne to bring down interest rates a with a package of with a package of banking measures he believes will increase increase competition. The 'Courier Mail' says mortgage

exit fee s will be banned next

year but only new bore evers will will be benefit. The 'Advertiser' reports the

Treasurer faces a backlash over his because it snubs existing home owners. The The Federal Reserve says under the new

plesh measures the bank s will be able to top into the $1.2 trillion superannuation sector to raise funds. An investigation has found investigation has found a rookie pilot who crash landed

orn one of the Tasmania's

busiest highways ran out of the fuel reports the 'Mercury'. And

Shane Warne has been accused of having a steamy secret love affair with actress Liz Hurley.

There is footage, a still in there. So Warnie back in there. So Warnie back in the headlines for all the wrong reasons. And the 'Northern

Territory News' says one Top

End town drank the End town drank the equivalent of almost 12 million cans of heavy beer last heavy beer last year. They wouldn't be drinking light in the Top End would they! Cothe

banking re forms go far enough

for you? There is one sticking point - those of you with mortgages right mortgage and head to mortgage and head to another bank, you won't get to enjoy what other new mortgagee also

from about June of next

year. June or July next year

because the Government says

it's legally unable to it's legally unable to break

contracts between Banks and

bore you - bore yoers. A lot of people athat is not really the kaiz case an Joe Hockey is

arguing the entire package is a

case of spin over substance. Do

you feel left out? Do you feel

this is a fizz ler after all the build-up, after all the

political momentum for banking reform changes? If you would

like to join the conversation on this or on this or any other stories

e're covering this morning,

please contact us:

We will take a quick look

at the weather for you now:

These are the top stories -

and the Federal Opposition says

the Government has missed an opportunity to impose real

reform on the banking sector. The Government's announced measures to scrap

measures to scrap exit fees for

new home loans from next July. The Banks say they might have

to charge highest interest rate

s in order to compensate for that lost revenue. Swedish police say they're treating two

explosions in the capital Stockholm as attack. A car blew up in a busy shopping area on the weekend, followed by another blast nearby. Police are investigating a threatening email that was sent before attacks. A fisher man has been

rescued off the coast of Queensland, two Black Hawk helicopters helped rescue the

man from a tug boat near Bundaberg last night. It's believed he fell ill while out

fish and has been taken to hospital for treatment. After nearly a week of talk, 200 nations have reached a deal to curb climate change. Climate Change Minister Combet has

turned up the heat on Tony

Abbott, demanding he accept the

science and support a price on carbon. North America

correspondent Lisa Millar reports from Cancun. The

delegates met into the early

hours of the morning, hours of the morning, desperate

not to let Cancun go the way of Copenhagen. Let us now do what

it takes to support the Mexican

presidency, get this deal done

and put the world on a more

hopeful path toward a low substitute future. This time

only Bolivia held out but it

was overwhelmed by the mood of

triumph and relief on the

floor. Activists had floor. Activists had been

hoping Cancun would breathe new life into the UN process life into the UN process to

tackle global warming. The UN

deal approves a multibillion-dollar green fund for developing continuesries,

includes for the first emission

reduction target of both rich and poor and poor nations, and offers compensation to preserve

forest. There are a lot of ghosts from Copenhagen in this

meeting but we haven't seen the

howl ing ban cheese and we've seen countries now have an agreement which

capture s the majority of the pollution. But it was criticised for not raising

emission targets an set ing deadlines. The significance of Cancun is the negotiations are

still ray live. But there's

masses - - alive but there's masses still to be done before

we lock in place what is there

because it's a very, very weak deal. Close to dawn, an

exhausting Greg Combet emerged to demand action back home. How

about we need See a bit of better commonsense, respect for the scientific the scientific evidence and

some national interest and some

responsibility taken by Tony

Abbott to support efforts to

get a carbon price into our

economy. The Greens want a

price on carbon set as soon as they take the balance of power in the Senate next year. The

Greens have actually put all we've got into the negotiations to make sure we get price. So we will get one by

hook or by crook next

year. After the relief that the long night had produced agreement, comes the realisation this is still realisation this is still just one step in the process and

many of these arguments will be

dealt with again when they meet next year in Durban, South Africa. Two official photographs photographs to mark Prince William's engagement to Kate Middleton have now been

officially released. The pictures with taken by the photographer who create somd of the most enduring images of Diana, the Princess of Diana, the Princess of Wales. The BBC's royal correspondent

Nicholas Witchell reports. Two photographs were issued

by St James's palace but there is no doubt which of them

captured the mood of a young

Kyoto protocol U-couple in love

and prepare ing to mar yi. It's

this one, an informal pose in

which William has his arms around Cath Lyn, both smiling ease limit as royal engagement photograph it breaks in terms of its intimacy. The pictures that we see today are

very different from the kind very different from the kind of pictures which were released in

the past. They're much more informal, much more - couple are much closer

together. They're very romantic

pictures. You could not take a picture like that unless couple picture like that unless the

couple were completely at ease

with each other. The way he's

holding her and we get the ring so we know why the photograph

has been taken because engagement photograph. What engagement photograph. What a glamorous couple. The easy informality of William and Kate

can be contrasted with this d, the water stiffer pose of his mother and father in their engagement photograph. That's

good. In part, that's thanks to the photographer, Mario, who

knows William and Harry well

and who took some of the best remembered photographs of

Diana, Princess of whales Wells Wales. Yet what hi & appear s

to have captured here cannot

look of a couple in love.

Even the Beeb has got the disease. They have their royal correspondent to give his particular take on it. It's

true. I am so glad there was

close analysis of what marked it as an engagement photo! Get used to it. There will br so much more of this. . Let's take

a look at the markets and they

closed on a positive the end of last week.

To wrap up what was a

sodden week at the golf, here

is Paul Kennedy. Good morning.

Yes, it was a very wet on the Sunshine Coast yesterday and

Australian PGA was washed out. They're going to start in just

over half an hour to complete

that round. Let's look back now at

at some of the action before it at some of the action before it got washed out. During the first three rounds, first three rounds, Peter Senior had elevated himself to

sentimental favourite. Victory would make the two-time winner the old toast win the title. The title. The rain began early, and became torential. It was

good for the wildlife, and had

little initial impact on little initial impact on the scoring. Jared Lyle was 7-under through the holes. Others

also marched into contention,

Geoff Ogilvy a week after his

Australian Open

Australian Open win, John Senden with another final round flurry threatened to make significant

moves. Math you Griffin stormed

up to board to 10-under and Arron Townsend kept himself in the mix. Another 51-year-old,

Peter Fowler and and ray Stolz

also stayed close to the lead. Bobby Gates had led after

the second and third rounds he

was ahead after the third and

fourth. But as the conditions

worsened, Gates front nine with consecutive

bogeys, gifting the lead to

Senior. Both found the there's

off the tenth before play was

suspended. The 10th tee under water. It was squishy. As

the rain persisted, most at a drenched Coolum were

rearranging their schedules. We

will go to the A-League and will go to the A-League rilts and the final match of the round was Perth and central

coast mighting foo ithing out a

controversial draw. 1-1 was the result and Brisbane tonight continued on its merry way

beating Sydney FC 1-0. The

first for the home side. Near

posts it goes and it's opener for the Perth Glory and

it's Josh Mitchell with his

first. Either way it alluded

the goalkeeper intraieth the

back of the net. The finish was

on the spot. There is equaliser for the central equaliser for the central coast Mariners. So clever to beat his man. The ball was

played by Risdon and the challenge was late. There it is - Brisbane make the breakthrough. You have to say it's been coming! There was

plenty of drama in the English Premier League overnight.

Chelsea still unable to get a win. That was again at theenham. We will show you theenham. We will show you

their - Tottenham. We will show you their second half action

now. Let's take a look. They

are really enjoying it. It's a

cold December day and cold December day and it's getting colder and Drogba, right through thekeeper!

1-1. Too much power in 1-1. Too much power in the shot. A penalty Chelsea, stoppage time White stoppage time White Heart

Lane. Chelsea after a horrible run how they neat this. It's a must for Didier Drogba. Saved by Gomez. . That's how it

finished at 1-1. Let's look at some some highlights yesterday from the tour match between England

and Victoria, Victoria did

quite well here. But the English will

English will be pleased that

Prior, the wicketkeeper was able to make a able to make a century. Clint

McKay took four wickets McKay took four wickets but

Prior got in some great batting

practice as if Australia needs

him being

as well. There was a one-day match between NSW and SA.

Notable for Usman Khawaja makes a century. And some of his handy work there was handy work there was NSW making

313 in its two innings and came

right down to this last ball of

the innings. SA needed a Bownry

for a draw. And they couldn't

do it. So that is the do it. So that is the on pitch

action and of course Warnie is all over all over the newspapers this morning. morning. I was just recently

thinking about Shane Warne. His personal life really cost personal life really cost him the captaincy and the the captaincy and the

vice-captainsy at one stage of Australia Australia which must really

hurt him still. He seems to

really be disappointed about that. But the individualism

that he had and being himself

has made him so much money. When you watch When you watch the coverage

now, he's got his own talk

show, he is even on the - he

is even flogging different

stuff. So whether or not this

latest publicity will

latest publicity will hurt him I am not sure. This is what we're talking about this morning - the front page of the

'Herald Sun', caught out, and

so there's an allegation there

that he has been carrying on

with Liz Hurley. By all

accounts he finished his commentate been caught out by the tabloid

media over there. I don't think

it will be the end of any

contractual obligations but he was of course put off was of course put off by Channel 9 at one stage back in 2005 when Kerry Packer had

- For all off-field and yition. And the slim and fantasticial notion of him

coming back to rescue the come back. I know, but I really enjoyed feeling that line. But the potential psychological trauma to the Brit s could have been tremendous! Maybe bowl a

new hours and just stand there

with a menacing glow and

sledge. He was the best sledger

going around. I was half

serious. The selectors never ruled it out, by the way. But thankfully he hasn't been

brought back and we can forge

on through these

of Australian cricket. There was some nice stories in the paper on the weekend about the

'80s, so if you can take

something out of our bad patch at the moment, it's reflect ing on that really time of '80s

cricket. And Twitter being as

quick there is a new take er calls Pashes. That is the one to follow this morning. ABC News Breakfast can News Breakfast can be watched

live on the web from anywhere. Just visit the main

ABC News website. You will find streamed live every streamed live every day. Here is Vanessa O'Hanlon with the weather. Today's satellite

image is showing cloud over Queensland, moving closer

towards the east coast as towards the east coast as a

trough moves offshore. Moist air is triggering widespread

stoefrms topics. Northerly

winds are building over WA and

into western SA. That is ahead

of a trough. The trough will

bring a late Qom change to the south-west. Fine through

western and central Queensland today. More scattered showers

on the east coast with rain Burnett district. You're watching ABC News Breakfast. We will be speaking to ACCC Graeme Samuel about the Government's proposed Government's proposed banking re forms particularly one

aspect of them which is going -

going to outlaw so-called price

signal , that's the action of

banks saying that they may have

to increase interest rate to increase interest rate s as

a result of funding pressures. Samuel has been very strong on

this and we will get his views

on whether the banking reform

goes far enough. Also with we

will review some of the nurps.

This morning we're for Stonnington in Melbourne. Leading the news

this morning, the Federal Government is facing strong

opposition from the bank about plans to scrap mortgage plans to scrap mortgage exit fees. Banks

charge higher interest rate s

in order to compensate for the

lost revenue if the Government

goes ahead with the plans.

Federal Treasurer Wayne Swan

says he won't allow banks to

bring in new charges hen it scraps exit fees next year. Joe

Hockey says the plan fail s to deliver for families. New Australian intelligence agencies fear Australia could be disraun into a nuclear war in the Middle East. in the Middle East. The documents published in Fairfax

newspapers are from Australian intelligence sources to intelligence sources to the US embassy. They say Australia

fear s Israel might launch military strikes against Iran. A fisherman has been rescued by two Black Hawk helicopter office the coast of

Queensland. The Army choppers

lifted the man from a tug boat

150 nautical miles north-east

of Bundaberg last night. He is

said to have fallen ill while fishing. The rain in the Riverina district of

southern NSW, but now the locusts are back. Sports clubs

in the towns of Howlong say

they're struggling to run their

regular competitions regular competitions because of the locusts. And a proposed strike by maritime workers could discorrupt filming of Winfrey wp's filming of her show at the Opera House tomorrow. The tomorrow. The workers in charge of setting up an ex-clues zone around the site, they're

threatening to strike over pay and working k conditions.

Police in Sweden say they're treating into explosions in Stockholm as a terrorist attack. A man was

kill and two others injured when a car explode on Saturday.

The Swedish Government says the explosions could have explosions could have had catastrophic Cannes quences.

The BBC - consequences. This

is the moment terror came to Sweden. A series of explosions

in a car on a busy street,

caught by a camera on a mobile

phone. A short time later,

further down the main shopping street in Stockholm, another explosion, killing the man carrying the explosives. It's

not clear if he meant to detonate them or not. The initial view initial view of the police is

that the dead man also caused

the earlier explosions in the car containing gas can

sters. As far as we know from

now on this looked like he was working for hidges. But we don't know. With we have to

make that really sure so we make that really sure so we are investigating that there could

be more perpetrators, know. The explosions happened

heesh on the busy - drl busiest

shop in Sweden at the shop in Sweden at the busiest

time of the day in the busiest

period of the year. It would seem to be a seem to be a bungled attempt at mass murder. The mass murder. The Swedish Prime

Minister was careful not to

draw too many conclusions about

how wide any plot might. Be Any

idea whether this is a loan

person or a - lone person or a

bigger conspiracy within Sweden international actions, al-Qaida. We have no such confirmation, the prosecutor and the police are treating

this as suspected terrorist

crime. That is what we know. We

know it's one person killed but

we don't know of any such connection. Sweden has a reputation as an easy, tolerant teat Society but there has been rising rising tension recently over

immigration. An email to the police 10 minutes before police 10 minutes before the

blast s blamed the rir's involvement in

Afghanistan and also the way a Swedish cartoonist had Committee picted the prophet

Mohammed. If this is inteeden's first #13w078ing, the question will

will be - suicide bombing the

question will be whether the country can maintain their

reputation as a tol - Tom rant

and peaceful society. Now

pubs an clubs in the ACT are

upset about new non-smoke

regulation. The new laws

governing smoking in outdoor owners are calling for urgent

amendments. The u quick which

us to ash trays are gone and so

the smoke. In their place an

array of signs forcing of - warning warning of $550 fines. It's

nice to have the clean smoke

free environment. The ACT

Assembly passed the law s banning smoking in public outdoor eating an drinking

areas one year ago. The laws came into force this catching some by surprise. Pretty surprise. Pretty distract actually. - Distraught actually. actually. Just an Aussie

past-time. Have a beer and a smoke. I am sure there will be

a group of smokers who feel

this is going one stech too far but we have tried to accommodate that accommodate that with the

designate smoke areas. Smoke is

not perm yilted at restaurants

and cafe s but it is allowed in

the outdoor areas of some an clubs. In these new smoke spai, eat ing, drink and

entertainment won't be band. They won't be serviced or

cleaned either. It's better for

us because we don't have to clean

clean the ash trace. Televisions are being

switched off or removed from designated outdoor areas. But

there's confusion over the entertainment ban. There's You can't have an outdoor area

which overlooks sporting areas. Clubs ACT says viewing bowl organise live sport on

publicly owned playing fields should not be included. They're

also un happy at also un happy at the confusion over whether watching games on the Internet is included in ban. We don't know what the

rules are even though the

legislation is already in

force. While that confusion is

bound to be resolved in time, some patrons are criticising the legislation saying it

doesn't go far enough.

Despite the strength of the economy, charities are saying

more families than ever before

will be doing it tough Christmas. Smith faxly volunteer have been mobilised

across the country to deliver toys and food to struggling

families. The spirit Christmas has arrived. Across

Australia, thousands of Smith

Family volunteers have been Family volunteers have been at work packing Christmas hampers

- For the girl, six months and

older. Loading up - Each of the

families gets a hamper delivered. And hitting road. Merry Christmas. And while it's a huge logistical exercise - Here is an example of the cartons which all the food stuffs so the

farmlies will enjoy farmlies will enjoy on

Christmas day. It's hardly Christmas day. It's hardly a thankless task. Hard work, it's

really hot in here but really hot in here but it's

been a great morning. It's fun every every time we do it and it

feels like Christmas. But for an increasing number of

Australians time s are tu. The

demand this year is as great as ever this year, probably increasing. And just how tough?

Sue is a single out of Sue is a single out of work mother, with four boys. Good

morning. Her young est has a

rare heart condition and has

been in and and ute of hospital

since he was born. Struggle add

lot of years through Christmas

with the kids. So we've had a

hard couple of years . The Smith Family began 8 years ago when five wealthy business men decided to give gifts give gifts to a Sydney orphanage. Utth it's now grown

to this - 10,000 hamper and 20,000 toy packs for families across the country. And what an impact they make. It should be a good Christmas. Sure will. Now while upstream

communities are suffering from

floods, things couldn't be

better for those at the ends of the Murray-Darling biggest water inflows in more than a decade, the town

Goolwa is experiencing a

tourism boom with more water on

the way. Of course. Is a their's suffered years of drought. The paddle steam ser

showing off a healthy waterway to tourists are WHO are again

flocking to the region. But not

so long ago it was a different

story. The red marker we passed

is the edge of the channel. From there over to where

see the land was total dirt 12 months ago. The volvolunteers

who operate and maintain

who operate and maintain the

paddle steamer say as has returned so too have the

smiles on faces. The last time

we were here there was not near

ly as much water. With more

water expected to flow to these

parts in the coming weeks due to flooding on the east coast,

locals say thingies can only get better. With the get better. With the barrage open and dredging halted, 48 gigalitres is flowing out to the sea every the sea every day. . We expect that this summer will be

quite fantastic, given the

conditions we've got this year. So we're looking forward to a busy summer period. But

while morale and the economy is

up, reality is never far away. Mother Nathure fixed us

up for the short-term, it's now up to the plithss to make sure

system into the future. While

this community hassing we ed

the waterks they're mindful of the negative impact it's hatd on - it's on their neighbours. It's already being

sold as one of the world's

great walks - the trek from

North Head to South Head on the Sydney Harbour. It's Sydney Harbour. It's vision

vision for the nark National

Park. Summer on Sydney Harbour doesn't get much better than.

This A day like today, this is a good thing to be doing. This

being the unveiling of a National Park. What this is

about is really increasing about is really increasing the

access of people to access of people to the Sydney Harbour National Park, gep

giving them access to the #k3 th experience. It's a 60km

foreshore walk way from North

Head to South Head and there's

a hop on, hop off ferry service. Having people stay in

Sydney an extra day to something different is important. But it doesn't come

cheap.? D day fiket is $59. And

not everyone gets a guide tour.

If the plan work s tiny Clarke

island will not Ngo longer be a

taif haven for day trippers

with their own boats. We're

look at generate ing enough

interests in the islands so we

can justify being bring ing regular

regular public transport to the island. Around 2 million people visit the national park every year but many come by

park. Part of this 10-year plan

is to rebuild this area and

allow ferry access here again. But don't expect to note ace

total harbour makeover total harbour makeover any time

soon. It's sort of an evolve

ing thing. The same goes for

the budget for the plans.

I've done that walk around

North Head in particular, South Head as well. But North Head more recent ly and it was

glorious. But that is a very

expensy day pass. As part of

the criticism often with many of the tourism tuntss around Sydney and the public transport

is it ends up costing you too

much money. They won't get the

people they want if they keep

it at those rice prices. it at those rice prices. These

are our top stories this morn

dg - Federal Opposition says the Government has missed an opportunity to impose real reform on the sector. The Government's

announced measures to scrap

exit fees for new home loans

from next July as part of a package of reforms. And the

banks say they might have to charge er interest rates to compensate for lost

revenue. The swedish police say they're treating into say they're treating into two

explosions in Stockholm as

explosions in Stockholm as a terrorist attack. A car blew up

in a busy shopping area on the

weekend followed by another

blast nearby. Police are investigating a threatening

email that was sent before the attacks. The latest WikiLeaks cables intelligence agencies fear Australia could be drawn into a nuclear war in the Middle East.

The documents published in

Fairfax newspapers are from Australian intelligence sources

to the US Embassy and they say

Australia fears Israel might

launch military strikes against

Iran.

We will now take a look at

the Monday papers and we're joined by Tim Smith, Liberal councillor

councillor for Stonnington in Melbourne. Good morning. We have a piece from where the Business Council of

Australia are criticising the Government for not having a

concrete action plan for

infrastructure reform. Criticising them for folk folk quusing too much on the

NBN and not enough on supply

side issues like port, road and

rail capacity. There was an

interview with the BCA bloerd

in the Fin today and it's just

painting a pict our after gooft

is paralysed by the hung

parliament. Not embark ing on

real reform. I think what

they're saying is

Infrastructure Australia and I

think the they're probably

looking at a greater level of

leadership coming out of bra on

what Canberra wants to see happen in happen in terms of infrastructure infrastructure role rolling out as opposed to politically focusing on the NBN. Wouldn't

this be the same

this be the same organisation

that lie lay s heavily into the

Government fit starts to propose big spending outlays

and don't the States have a role to play? The States do

have a role to play, certainly.

But I think the comment they're making is

made across the country at made across the country at the

moment - and this will segue

nicely into the banking package yesterday - that yesterday - that there is a paralysis of leadership at the

moment. And I don't think we

can simply say that there is a

hung parliament of course there's a paralysis of leadership. I think people

across the country and all aer earias of the Government are

looking for the Government to show leadership but I don't leadership. This leadership. This Government is

essentially captured by a great

many interests. I has to keep

the rural Independents happy, the Greens happy, various

members of the Labor factions

happy. Because of that

paralysis there is no set

direction coming out of the highest echelons of the Government. It's been a torrid

five or six months for Julia Gillard. She's barely had a

week let air loan a day of

- Sintion we spoke on election day, on that fateful morning, what a brutal couple of months really. I think everyone is looking forward to

Christmas. If we're looking at

Swanny yesterday rolling out

that banking pack age, I was lie tong couch yesterday

afternoon going, mate I, I've

seen all th all before. I remember Grocery Watch, I

remember fuel When the resource

rent tax reback. I know I'm

being overly partisan at the

moment - moment - dis Very political

partisan. I am sorry, but I just had this shocking feeling

of deja vu going this poor

bloke desperately want s a

holiday. He is trying to reel this thing out

minutes before midnight before

Christmas. He has got no love

out of the papers this

morning. Which seg - segues nicely to the 'Australian'. . We love the 'Australian'. Why do you love the the 'Australian'? I think they write very they write very well. Come on! Call it like it Call it like it is. They're

very sound, thal shal we say! They're differently

running that line. As you say

no love out of the papers

really anywhere. That is the

just make an observation about I

I suppose the media

cycle? We're ender hag is called the silly season. In

terms of it's obviously winding down before Christmas. People

are going on holidays. And so

you start talk about the cricket and Sydney-to-Hobart yacht race and

other such things talking about

attempts at real reform in the

banking sector is probably not

the ideal time of year. And

also it is such a response to

the Opposition in terms of

hack Hockey was going on about

in the last couple of months

- It looks like Hockey is dancing to hi tune. It's watching this yesterday I was saying this is just pure

politics and it's half baked.

There's been no sort of real

substantial ry fofrmt this not Keatingesque reform. They

had to be seen to be doing

something. But you have to be seen with this mob, it's just

some glib attempt at ticking

that box. It is just frankly

rubbish. What is interesting is

the David Crow piece in the David Crow piece in the 'Financial Review' today which

in a sense pings both iz trying to make any political hey from this grass because it

makes the very simple point

that unless you're going to

overturn the market economy, you you can't really do anything

when it comes to banking fees

and to the pay banks to d'oh their business and the

like. What set s interest rates in this country? Reserve Bank, not the Government. It's the Reserve

Bank. Board. We just - I mean,

divorcing the politics from all this,

this, people just need to realise it's

rates. There are a whole heap

of things that you can set the

right environment to make sure

rates are as low as possible

and that is the legitimate role for for Government. But the

Government doesn't set rates anymore, its bank. I think politicians need to be very,

very careful that they don't put false hopes in the minds of

the many that they can really do anything about it. This's

what the 'Financial Review' is

saying if you have a free compete against each other and set their own policies and

their own fees and charges,

unless you're going to sut super structure

super structure around that,

then back off. Or then back off. Or be gutsy and

step in and regular late it.

No-one is going to do that. The

'Sydney Morning Herald' has the

latest WikiLeaks instalment

this morning. Here we go again,

I suppose. This is day 6 now, I think. We are up to nuclear strikes in the Middle East and

the former Prime Minister and the the current Prime Minister's relationship with the Israeli ambassador to Australia. Everyone knows Australia. Everyone knows that the Middle East is a very

dangerous place. I suppose

that's the best way to describe

it. Strategically it's an absolute minefield and obviously obviously Iran's nuclear program concerns Israel and

concerns the West. So it should

because the - the Iranian

regime is a very dangerous

regime and it concerns Israel

and it concerns the West and and it concerns the West and I just think that what has shown this morning is what we already knew. Do think of these cable s bother these cable s bother you, the way they're being published in

this way and we are learning the inside conversations that some believe should be kept

private and should be kept line between reporting things

that are in the public interest and are and are simply irresponsible. But at - Have you you seen anything irresponsible so far? I think some of the

comments earlier regarding

troop deployments and what not in Afghanistan, which was the

first instalment a couple of weeks ago, and also people

involved in assisting the United States whether that United States whether that be

the State Department or their intelligence service in various countries where the American help it can get in terms of ensuring

ensuring peace, I think that is very, very dangerous because

you are putting the lives of people on the line. Stuff like this,

already. Some of the other

stuff which is embarrassing for

people, get over it, it's a

fact of public life. Now we

have a lovely report on the front page of the NT

News. Again you might file this

under stuff we already know,

but the figures are

amazing. Yeah, 12 million cans

of beer in a year - wow!

is it. I the headline! Where do you go with that? We could

be all serious and talk be all serious and talk about welfare quarantining and talk

about the state of alcoholism in certain parts of in certain parts of the

Northern Territory. I the front

page and on a lighter note that

is a heap of beer. There's really not much to say. We

can't let you go without looking at Shane Warne's latest antics. Warnie! Allegations. 'New of the World' has done it A-again, it appear. Well... um... This has stumped you. Warnie and Liz Hurley, I didn't see that one coming. Let's see what comes of this. This will keep everyone

entertained between now and

February. You were talking

silly season. Always good to

see you. Thanks for having over sport, here is Paul

Kennedy. Very serious matter Kennedy. Very serious matter of golf tournament finishing on

the Sunshine Coast this morning. It starts in about five minutes.

Peter Senior Peter Senior is in front and

all of these golfers will do

their best to try to win the

tournament and then shoot off to their various engagements including Robert Allenby, I

think he is hosting an event in Victoria, a charity event this

morning so he will get want to

get down for that as well. To

the soccer and the English Premier League had

drama. Wells y still trying to

get a win. They haven't been

able to celebrate for a long

time. Didier Drogba scored one time and had the chance score again in injury time but

was unable to do it. In cricket, England has got some

much betted batting practice

for Meyer - Matt Prior, the

wick et keep rp. The Vicks gave

the tourists as I say some practice and they won't be

disappointed there, they were

pished all the way in the three-day match. Speakingn't beer, he was the surprise

selection to be the spinner

over in WA, the little-known

left-handed finger spinner so we will see how he goes on the spinning round about of election.

It's good to see Beer tapped

for the side! It's going to be an awful day. So it was a wet weekend in Queensland? It It

has been. The rain lashed down

pretty much all weekend over some parts. The latest

situation is that the rain eased, still a few scattered

showers in the east and on the

east tropical coast around

months Mahon. Since 9 am

yesterday nearly 108mm was at

Hervey Bay, and 61 at

Maryborough. With the rivers an

creeks rising there is a creeks rising there is a lot of flood to stay away from the flood warnings, proms everyone to waterways. The main rern concerns are for central Queensland, Queensland, the central west

and the border river More of a look at those

Still ahead - Access

Economics joining us for a

rather glum forecast. Back

after this very short break. The Federal Opposition

says the Government's says the Government's banking re forms failed to deliver. Australians today get

nothing out of this bank ing

package from the Gillard Government. It's so much spin

and so little substance.

An act of terror - Swedish

police investigate two bomb blasts in invasion - after the floods, NSW townsface a new

threat. Catch-22 isn't it. We

get the rain, we need it and

then these come. In and ice just the perfect weather for them. At tands rain Adelaide

final round of the Australian

PGA to be played this morning.

Good morning, it ease Monday,

13 de, I'm Michael Rowland And

I'll Virginia Trioli. I'll Virginia Trioli. The top story - the Federal Government is facing strong opposition

from the banks about plans to

scrap mortgage exit fees. Banks say they might charge higher interest rates in order to

compensate for the lost revenue

if the Government goes ahead with plans to boost competition

in the sector. The Federal

Treasurer Wayne Swan says he won't allow banks to bring in new charges hen it scraps exit

fees from next year. The Shadow Treasurer, Joe Hockey, says the plan fails to deliver for families and families and small

businesses. No-one can remember

what the first banking reform

package was. If this is a Pacificing reform package, why

is there nothing there for

people who have a loan right

now? Why is there nothing there

paying up to 14% right now? Why

is there nothing there to deal with the systemic challenge of how the how the Government having to deal with financial

institutions that cannot

fail? If it was reform, it

would be considered, it would

be detailed, it would be detailed, it would be across the board. It's not reform. This is the fact that

the Government had a long press

conference on a Sunday in front

of the Australian flag with nodding heads behind him says that the Government's trying to

spin this up as something far

more significant than what it really is. Joe Hockey speaking yesterday. For more, Melissa Clarke joins us now from Canberra. So what exactly is Joe Hockey criticising? What has the Government unveiled? The Government has

pulled out a raft of measures.

Some of them are aimed at consumers like strap scrapping

exit fee s from new mortgages

that are taken up from 1 July last

last year, some of them - year. And some of them are aimed at strengthening the

fifth pillar, the credit unions and building society, so allowing them to cover bonds.

And then there's also some wider re wider re re forms the Federal Government is looking at. So

there's a bit of a grab bag of

issues like an iron into having

bank account number

transportability so you can

take bank account numbers with

you if you were to change provider. Others are more

controversial, things like dumping of exit fees, some are

saying that that will make it harder for Banks. There are a

couple of thing has the

Coalition and the Government

agree on that come out in agree on that come out in this, thing likes give ing the ACCC

create er greater power to

investigate price signaling. So

there is some mute yum

agreement on these - mutual

agreement on these measure.

Hockey is saying there is enough for exiting loan holders. Wayne Swan you can't implement things

retrospectively so there is a despite put other done for current mortgage holders. But the Government is

also going to have to tackle

criticism from the Greens as

well because they've been

trying to push some of their

own banking reform measures in particular scrapping those'

fees that can be up to $2 for

using an ATM that is not from

your bank. They have made it

clear they want to see that included

included so when it comes to

the Government trying to push this legislation through Parliament they're going to have to juggle those competing demands from the Opposition, from the Greens and from the Greens and no doubt from the Independents as well

who all want to be seen as cracking down on the Banks. Let's hear from Let's hear from Bandt bants

yesterday reacting yesterday reacting from the Government's Government's announcement. On

mortgage exit fees, we are very

pleased that the Government has

taken seriously the Greens'

call to get rid of excessive

mortgage exit fees. Mortgage

exit fees really are a way of

just the banks profiteering and

getting rid of them is a move

that is well overdue. question of excessive $2 ATM fees the Government has squibed

it. We don't need another

inquiry or a taskforce or website to tell website to tell us this

excessive $2 ATM fees are

hurting people. We don't need

to monitor excessive fee, we

need to get rid of them. We are

going to have a Senate inquiry

into competition in the banking industry, ms nonetheless. And

one that the Senate has been very much Greens. That will start today.

No co ince sense that the Government got their reform package out just beforehand

which means lit no doubt be the secht

in the Senate inquiry. But it

will be closely watched there's there's some heavy fitting

financial figures coming before the inquiry today, including

the Reserve Bank governor Glenn Stevens, st CEO of the National Australia Bank Cameron Clyne, figures from the Department of Treasury

Treasury as well, and later in

the week e w we will as well. Given how much heat has been on the big four about their moving of raising interest rates beyond the official cash rate from the

rsh, they're likely to -

Reserve Bank, they're likely to

face some pretty heavy

questions and the the senators

will not want to be seep as letting themgate Get away. Swedish police are

investigating two bombs in

Stockholm as agent of

terrorism. A car blew up in an area

shoppers. It was followed by a

second blast nearby. A man found dead after the found dead after the second blast had been carry ang

explosive device. The police are investigating a email that was sent before the attack. The email denounce s

Sweden's involvement in

Afghanistan. WikiLeaks cables show Australia fears being

drawn into a nuclear war in the Middle East. The documents

published in today's Fairfax newspapers are from Australian

intelligence sources to the US

Embassy. Say The United States

has suffered its worst om bat incident in Afghanistan

incident in Afghanistan since May. Six US soldiers and two

Afghan troops were killed by a suicide bombiner the province

of Kandahar. The bomber blew up

his car outside a US military

base. Kosovo has held its first

Parliamentry elections since it declared independence from

Serbia almost three years ago. Voiting booths have close and

exit poles show the Prime Minister's spaert Officials say call force a

boycott in Serbian areas of the

North appear to haven't have been observed. And days of hefin rain has flooded and swamped roads in Queensland. Three of the main roads to Bundaberg which is

about four hours north of about four hours north

Brisbane were cut, limiting action cess to that city.

number of people from the flood Authorities thatted to rescue a

waters. More rain is forecast for later this

week. Returning to those bomb

man, blasts in Sweden now, and a

was kill and two two other

people were injured when a car

exploited on Saturday. The

Swedish Government says the

explosion s would have had

catastrophic consequence. The BBC's Steven Evans reports from Stockholm. This is the moment

terror came to Sweden. A series

of explosions in a car on a

busy street, caught by a camera

on a mobile phone. A short on a mobile phone. A short time

later,