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Tonight - Budget bewilder mented - some people just don't

get if. It clearly has exceeded

the reading age of many. An

uneasy pieces as the Rebel

leader's body is found. A

Melbourne mother faceses five

years in a Thai jail. And what

a catch for this chick magnet.

Good evening, Juanita Phillips

with ABC News, Australia's top

two men you men are talking up

the prospects of a solid

rebound from the recession

Treasury Chief Ken Henry

launched a spirited defence of

his optimistic growth figures

in the Budget, telling critics

his forecasts aren't wrong,

just misunderstood. just misunderstood. The Reserve

Bank Governor Glenn Stevens is

more cautious, but sees signs

of a recovery in China, which

could mean an economic

turnaround this year. Political

Editor Chris Editor Chris Uhlmann. The

Treasury Secretary has a

difficult story to tell. Some

Budgets speak for themselves I

guess, this one apparently does

not Any problem readers have

following the plot isn't the

author's faulted. It has clearly exceeded the age of

many. The story has two

plots. The Government

confronting the task of

explaining the deficit came to

the view that it had to explain

how that will be wound in over time. Economic parameters are

not usually the focus of Budget

story tell, this is different.

The return from deficit is

built on two pillars - that

Australia will grow at 4.5% at

2011 and stay above friend for

five years, and that Government

spending will fall from the stimulus-spending high

watermark and be constrained to

2% real growth until returning

to surplus Perhaps it's

to surplus Perhaps it's too

early to declare we'll come out

of this period in better shape

than other developed

countries.? I'm prepared to

make that Reserve Bank Governor make that predicted. The

Reserve Bank Governor believes

Australia can grow strongly off

the back of recession and is

buoyed by the growth in

China. It's real, the

durabilitiy of it is the open question. Asked if he agreed

with Treasury's medium turned

growth figures, he was

supportive, but reserved I supportive, but

don't think it's, you know, crazily optimistic to expect

that that will occur at some

stage. That is very, very faint

praise indeed. I believe our

forecasts put forward by the

Treasury is Conservative. The

Government is worried that the

deficit excess strategy is

believed to be a fairytale and

is bogged down in the debited

story, it's desperate to turn

the page 200,000 jobs and the page 200,000 jobs and more

in the coming years. Stories

with pictures are easier to

read. The Sri Lankan read. The Sri

Government is tonight glorying

in its rout of the Tamil Tigers separatists, the President

going on national television to

declare victory over an enemy that defied the authorities for

25 across, and to silence

sceptics the Government broadcast pictures of what was broadcast pictures

said to be the body of the

Rebel leader, that led to more

rejoice ing in the capital as South Asian correspondent Sally

Sara reports. Residents of the

capital rallied on the streets

to Sell bait the end of the to Sell bait the end of

Civil War, there was a sense of Civil War, there was a sense

joy and relief. We were looking

for 30 years for this moment,

for freedom. (Singing). The

President hailed victory during

a speech to Parliament, and

urged Sri Lanka's ethnic groups

to unite. to

TRANSLATION: The law of the

state runs across every inch of

our territory, we have defeated

terrorism. Yesterday the military announced it killed

the leader of the Tamil the leader of the Tamil Tigers,

Velupillai Prabhakaran, the army said Velupillai

Prabhakaran was shot dead by

Government forces as he tried

to escape the combat zone in an

ambulance, the leader of the ambulance, the leader of

Tamil Tigers was revered by

followers, but feared and

despised by civilians in the

capital It's so important that

he is no more to dictate the he is no more to dictate

terrorism and activities in

this country. The pro-Tamil web site Tamil Net site Tamil Net proclaimed

Velupillai Prabhakaran was

alive and well. The army

released pictures showing the

Rebel leaders body. In the

north-east the full scale of

the humanitarian effort is yet

to unfold. Several doctors

treating the injured behind the

lines and giving reports on

casualties have been arrested.

Aid groups say the Government

doesn't have enough resources

to meet the needs of civilians

Lankan Government is stranded in camps. The Sri

Lankan Government is under

pressure to rebuild

infrastructure, stability and

confidence indeed north. It's

difficult to gauge how hard

that task will be. Foreign

observers and aid groups are

waiting for unhindered waiting for unhindered access

to the worse areas. Promotion s

were awarded to the military

commandiers by President commandiers by

Mahinda Rajapaksa, responsible

for the campaigns against for the campaigns against the

Tamil Tigers. The United States

delivered is blunt message to

Israel on the future of Israel on the future of the

Middle East peace process,

during talks at the White during talks at the White House

Barack Obama stressed that a

two-state solution is America's goal. Prime Minister Benyamin

Netanyahu says he wants to

restart peace negotiations with

the Palestinians immediately,

but made no mention of a

Palestinian state. Here is

Washington correspondent Mark

Simkins. It's the first time

they've met as President they've met as President and

prime minister, but the issues discussed are not APPLAUSE discussed are not new.

And despite the latest

diplomatic niceties. An

extraordinarily productive

series of conversations. Extraordinarily

friendly and constructive

talks. The meeting revealed

rather than resolved sharp differences. These

demonstrators are opposed to a

Palestinian state, and Benyamin Netanyahu appears to share

their concerns, he carefully

avoided to referring to a two-state solution despite

prodding from his host I

suggested to the Prime Minister

that he has a historic

opportunity to get a serious

movement on this issue. The

Israeli Prime Minister says he

is willing to restart peace

talks with conditions. Because

security conditions are met and

there's recognition of Israel's

permanent legitimacy, we can

envision an arrangement where

Palestinians and Israelis live

side by side in dignity and

security and peaceful The two

leaders have different pollses

and priorities, the and priorities, the Israeli

Prime Minister's focus is on

Iran, he wants tough access to

stop its nuclear stop its nuclear program,

Barack Obama prefers words and

want to neg with Iran, for want to neg with Iran, for now

at least. The President segd

Iran has until the end of the

year to show it's serious. We

are not going to have talks forever. The Americans

indicated they'd keep a range

of tougher options on the table

if Iran doesn't come to the

table. A holiday to Thailand

turned into a nightmare for an Australian woman who is now

facing up to five years in jail

there, mother of four Annice

Smoel has been accused of

stealing a beer mat from a

nightclub in Phuket. Her

friends say they were the ones

responsible. Thai police are

standing firm. Annice Smoel's

family are appealing to family are appealing to the Federal Government for help. 36-year-old Annice Smoel

is living out her worst nightmare. If they want to

teach me a lesson, they have

well and truly done it, I don't

understand why I need to keep

staying here. 16 days ago the

Melbourne woman was charged

with theft, spending four days

in jail, because of a

prank. Two of her girlfriends,

whilst partying at the Aussie

Bar in Phuket thought it was a

good idea to place an Aussie

Bar Bar mat into her handbag. The friends admitted they were

responsible. The bar owner

thinks otherwise. It's a bad

wrap for Phuket and because of

one person has done wrong.

Let's not forget the fact that

she has stolen something.

Annice Smoel has been told it

could be months before her case

is heard in court. In the

meantime her passport has been

confiscated and she's been

ordered to report fortnightly

to local police. Her husband

flew to Thailand to be with

her, leaving the four young

daughters with family The

oldest one had an emergency

appendix operation, no mother

to care for her. Annice Smoel

admits she resorted to buying

her way out. Darren Smoel says calls to Australian calls to Australian authorities

have been just as unsuccess. I

never heard a thing, when I

called them, it would be six

hours before they got back to

me. Sta a smoecksman for me. Sta a smoecksman for the

Department of Foreign Affairs

say consular officials in

Bangkok have been providing

support and advise Annice Smoel

to cooperate. The Prime

Minister has been briefed on

the situation. Our consular

officials zided by the Foreign Minister Minister and Department of

Foreign Affairs will be in

there providing assistance to

them, and dealing with the Thai authorities. Thai police told

ABC Annice Smoel was aggressive

on the night of her arrest and

deny receiving confessions to

the theft. A crown prosecutor

has like end the death of a

7-year-old girl to the fate of

child Holocaust victims in Nazi

Germany, the girl weighing 9kg

when her body was found, her

parents on trial accused with

starving her to death. Some

viewers may find details in the

story upsetting. The

prosecution warned jurors at

East Maitland Supreme Court

that the evidence would be

confront, neither the little

girl or her parents can be

named for legal reasons, the

stench of bodily secretions and

a tiny mound under a doona on a

mattress on the floor led

ambulance officers to the

little girl who they say was

obviously dead. According to

the crown, the 7-year-old was

half the weight she was 18

months previously, and she was:

inside the house the crown

says the girl's

says the girl's mother told police:

Today the 7-year-old's mother

wept in the dock as she sat

alongside her husband, both

have pleaded not guilty to

murder. The jury was told that

the trial will hear evidence

from a senior medical

specialist who says he's never

seen a child so malnourished

and it would have taken months and it would have taken

for her to get that way and in

the weeks leading up to her

death she would not have been death she would not have

able to get out of bed, in the

days leading up to her death

she would have been in a

coma. The parents will give

evidence that the girl was

autistic and had a

developmental bone disease

preventing her growing

normally. A 21-year-old

Victorian man will appear in

court tomorrow over a plan to

smuggle scores of Afghans into

Australia, he'll face charges

of money laundering and drugs

offence, his father is being questioned by Federal

Police. Tsutomu Yamaguchi a

dead man walking, he should dead man walking, he

have been killed not once, but

twice, when the United States

dropped atomic bombs on

Hiroshima, and Nagasaki in

August 1945. Now the

93-year-old has been formally

recognised by Japan as the only

living survivor of history's

two nuclear attacks. North Asia correspondent Mark

correspondent Mark Willacy

travelled to Tsutomu Yamaguchi

to meet the ordinary man with

an extraordinarily story. Every

day Tsutomu Yamaguchi gives

thanks for what he calls his

miracle. As a survivors of the

atomic bomb attacks on

Hiroshima, and nag r the

93-year-old can't decide - nag

r the 9 3-year-old can't - nag

r the 93-year-old can't decide

if he's the luckiest or unluck if he's the luckiest or

yes. . I have walked and

crawled through the death. The

Nagasaki native was working in

Hiroshima, when the bomber Hiroshima, when the

Enola Gay appeared in the skies

above. I thought the sun fell

from the sky, there was a sound

and a flash of light above

me. The world's first atomic

attack reduced Hiroshima to attack reduced Hiroshima

ashes and left Tsutomu

Yamaguchi badly burned. Having

survived the horrors of Hiroshima, Tsutomu Yamaguchi

returned to Nagasaki, but a day

later he again heard the sound

of an American B-29 bomber in

the skies above. In a flash

perish. 73,000 more people would

TRANSLATION: I was telling my

company supervisors in Nagasaki

that one bomb destroyed all of

Hiroshima, he told me I was

crazy. As he said crazy. As he said that...

..the bomb fell on Nagasaki. It

wasn't until recent media

coverage of Tsutomu Yamaguchi's

case that officials recognised

him as a survivor of both


TRANSLATION: There are fewer

survivors of the atomic

bombings left, Tsutomu

Yamaguchi's case is unique. Now

in his 10th decade, growing increasingly frail, Tsutomu

Yamaguchi knows he hasn't got a

lot of time left. Despite the

pain of his memories, he wants

the lessons of history and his

story to live story to live on.

TRANSLATION: Japan can't rid

the world of nuclear weapons by

itself, the whole world needs

to hold hands and prevent this

kind of war. Only world leaders

can answer Tsutomu Yamaguchi's

lifelong prayer, for that to

happen he may need another


The husband of former Liberal

MP Jackie Kelly has been given

the maximum penalty for

distributing bogus pamphlets

ahead of the last Federal

election. Gary Clark pleaded

guilty to handing out leaflets

to a fake Islamic group in

western Sydney, declaring that

the Labor Party supported terrorism. The magistrate said

the case was in the worst case

category fining Clarke $1,100

and pay more than $200 for

prosecution legal fees. The

State's ageing electricity

network is society for an network is society for

overyou will haul.

EnergyAustralia is planning to

build dozens of substations in response to the response to the blackout

plaguing Sydney, the plans

upsetting local residents

accusing the company

accusing the company and

short-circuiting normal Planning Minister of

procedures to get the work

done. Five years to haul the

State's power grid into the

21st century, substations are

children of the '60s. This

whole process shows a

Government behind the times.

76 to be built, 76 upgraded

doubling the normal program,

the pace stepped up after a

series of blackouts gripped the

CBD, including ones knocking the lights out of fashion

week I was told the chances of

this happening, verbally was

one in a million, I'm seriously

unhappy. Some of the new

substations are in residential

streets, despite efforts to

disguise Piccadilly Gardenses,

this one in Top Ryde has not

been accepted. It's needed to

provide the power

safelily. Liberal MP Victor

Dominello says the project was

Minister Kristina approved after Planning

Minister Kristina Kenneally

stepped in. My understanding is

the Minister directed council

to approve

this. EnergyAustralia broke this. EnergyAustralia

with practice and got a third

party to buy the land It

leaves a question mark as to

the Bona fides of the

traction. A smoecksman says the

power supplier wasn't trying to

hide plans. Not at all. When we finalised the sale of the land

from the developer, we went to the community almost

immediately. But with an 18

billion program ahead, it won't

be the last time the State's

interests bristle with the

locals. On to finance now, and

the local share market

rebounded strongly after a big

rise on Wall Street. Here rise on Wall Street. Here is

Alan Kohler. Well, it's a rally

refusing to die. The S&P 500

rose a surprising 3%. For not

good reasons. There was a good

result from a retailer Lowe's,

the housing market index went

up in May, and the Treasury

Secretary said he thought the

US economy was stabilising.

Investors piled in at the

opening bell, staying all day. In Australia it was the

same story, a big rise at the

opening to 3800, and steady for

the rest of the day, helped by

two glasses half-full not empty

speeches, by Australian Secretary Ken Henry, Reserve Bank Governor good Secretary Ken Henry, and

eveningens. Resources stocks

led the way, Qantas did well,

up 5%, Telstra Chief up 5%, Telstra Chief Executive

Sol Trujillo cleared his deft.

Investors shed a tear and two

cent as the new boss David

Thodey moved into the big

office. On Asian markets Indian

stocks held on to gains,

Chinese market going up 1%,

Japan and Korea up 3%. Shares

in China and India are both up

the same amount this year so

far. 45% or so, with India

having caught up after this

week's election, China should

try one. Share prices for the

world as a whole are steady for

the year, which can't be said

of GDP at least for the world's

three biggest countries, here

are the annualised are the annualised GDP

contractions for December and

March. America started the

crisis, Europe and Japan are in

the greatest trouble by far,

the Aussie dollar continued the Aussie dollar continued its

impression of a I don't I don't

jumping 1.5ients or 2.5% in

line with the rise on the stock

market. Nam Le was a baby when

his family fled Vietnam 30

years ago and he drew on his heritage for his debut heritage for his debut book,

'The Boat', and he added the

top NSW literary prize to an

impressive string of

awards. Writers, publishers and

the gliteratti gathered to

toast the cream of the Lit rate

tour top. The winner for

Book of the Year is Nam Le tour top. The winner for the

Book of the Year is Nam Le for

'The Boat'. He beat off the

leading writers to take leading writers to take the

Book of the Year award, he is

in Europe, where he's praised

for the book of short stories,

one reality relating to his

family background as Vietnamese

refugees. It's testament refugees. It's testament for

the fact that the stories are

diverse, they speak so a huge

range of readers. Melbourne

writer Chloe Hooper's harrowing

account of the death in the

Palm Island watchhouse Palm Island watchhouse of

Cameron Doomadgee scooped the

$40,000 non-fiction award. This

story is, in a way, an

Australian tragedy and an old

story, the literal collision story, the literal collision of

black and white Australia. It's

30 years since these awards ,

the first state literary awards

in Australia saw the light of

day in this very place the Art

Gallery of NSW. And the Gallery of NSW. And the Premier

of the day, Neville wran was

here to celebrate the

anniversary. He praised

Australia's record of tolerance

that allowed refugees like Nam

Le to rise to the top I think

it's a wonderful reflection

upon the descency of the

Australian people. Generally

speaking, we welcome

people. The top fiction award

went to Western Australian

writer Joan London for her

novel 'The Good Parent'. The

guessing game is almost over,

this time tomorrow we'll know

who will play for Australia in

the Ashes series in England.

Today Captain Ricky Ponting

kept his cards close to his

chest. Here is Peter

Wilkins. Roging is viewing the

Ashes - Ricky Ponting is

viewing the Ashes as a personal

challenge after the humbling

defeat. I'm treating this

personally. It was all pleasure

today, but before inflicting

pain on England, Ponting is

anticipating some selection

headaches. With Stuart Clark

and more than likely Brett

coming into the squad , Ben

Hilfenhaus, Siddle and Johnson

did an amazing job in South

Africa, there'll be tough calls

to be made. One myselvy call is opener Phillip Hughes, whose

run-plundering in county

cricket may have backfired on

India. They may we dreading

letting him play. Ponting is

impressed not surprised by

India's win over the West

Indies and sees a man as an

Everest. Kevin Pietersen is the

class player, he rises to the

change of playing against

better teams. Australia's heavyweight Opposition heavyweight Opposition for

World Cup hosting honours in

2018 and 2022 wheeled out

football raty and the real

thing to launch a

bid. England's love for the

game is world renowned,

football is in our blood. We

will stage a World Cup to

remember forever. The pride,

passion, players, you know,

something that can be

better. With already a glut of

possession in terms of marquee

sporting events including the 2012 Olympics England believes

its tradition of football will

secure its first cup hosting

since the 1966 win and

motivator new generation. To

have a huge competition like

the World Cup, the biggest

football competition in our

country is inspiring for young

kids. This ride from little

known span ian has Aritz

Aranburu ended Kelly Slater's

chances of a world title, the

near perfect wave from

23-year-old Aritz Aranburu put

the pressure on Kelly Slater,

trying but not secure the

necessary ride, and concedes

his title hopes are remote

It's decision time. With that

many 17s, you are hard pressed

to win a world time. A to win a world time. A casualty

was Joel Parkinson winning his

second round losing to Taylor

knots, Mick Fanning is one

Australian with a

anyoningans. The United Kingdom

economy may be stunned but the

Chow is about growth. This year

designers relied on creativity

rather than money to produce

another sell-out. ABC's Philip

Williams has been smelling the

roses. These are the real roses. These are the real stars

of the show, but there are many

less perfect specimens here to

pay homage to the pulling power

of a flower. Flower power,

exactly, must be time , gosh,

summer of love was a long time

ago, 41 years, maybe it's time

for a now one . In the field of

dreams fantastic sigs meets

foliage, Chelsea is foliage, Chelsea is where

imagination is given free rein,

from formal structure where ge

om etry rules or cacaphony of

unruly colour wants to make a

statement. This is created by

the homeless and this is the homeless and this is the Australian Flemings Garden, a

gold winner in past years, it

was forced to cancel because of

the Victorian bushfires.

Replaced by the credit-crunch

gardens, this put together with

junk and imagination reflecting

recessionary times. It shows

if you have time and

imagination, you can get a

eclectic garden that's suiting

your personality. Chelsea is

where face meets flowers, where

self-expression takes an

incomprehensible path. (Makes

sounds). But for all, this is a

piece of peace, where the

famous and frail enjoy one of

the special days in London

life. It's very much part of

the London scene. Of course,

it wouldn't be the Chow without

a good old downpour or two,

after all this is gardening

British style. Well, it's

getting to that time of year,

severe weather heading for severe weather heading for the

North Coast. Yes, we North Coast. Yes, we are

looking at the first of the

winter East Coast lows

developing tomorrow and a flood

watch for moderate to major

flooding has been issued for

all coastal rivers north from

the Nambucca river. Severe

warnings for flash flooding, damaging winds and dangerous

seas, we'll look at the reasons

for the wild weather in a

moment. In Sydney today -

pleasant temperatures. Showers

heavy at times tonight. 17 so

far at San suesy has been the

heaviest fall. Apart from the southern border districts

showers developing over most of

the states, moderate falls

about the North Coast. Isolated thunderstorms developing north

and west of Bourke, producing

good falls there, and the

warmest temperatures 24 degrees

at Moree and

Mungandie. Northern inlaud

picking up 10-25 Mill metres.

A severe weather warning

issued in Brisbane, the gold

and Sunshine Coast for flooding

and damaging winds. This is due

to a strong upper low and

surface trough combining with a

high to produce a deep

magnificent onshore wind flow.

The high in the southern Tasman

Sea and the low expected to

develop off the Frazer Island

coast tomorrow, will intensify

the pattern of wet weather,

strong to gale-force winds and

dangerous surf about the

north-east of the state until

Friday. Showers are expected

over most of NSW tomorrow, with

heavy falls about the North

Coast, spreading to the eastern

side of the northern tablelands and Mid North Coast Thursday,

Perth breaking a dry spell,

more wild conditions about

south-east Queensland, in NSW

rain and isolated thunderstorms

with moderate to heavy falls expected in the northern

districts, rain increasing over

the northern rivers, with

strong to gale-force winds and

dangerous surf developing,

showers falling over the

remainder of the state heavy

along the coast, tending

isolated south of a line from

Nowra to Griffiths, showers

heavy in Sydney. Top

temperatures of 19-20.

strong wind warning strong wind warning for Sydney

coastal waters. The worst of

the weather is north of Sydney,

the chance of showers hanging

around until Friday, more showers over the weekend,

persisting into the early part

of next week, the worst of the weather about the north weather about the north and Mid

North Coast. Those areas

closely watching the rainfall

with possible major flooding

across that region. Finally

tonight, how a banker turned a

mum's deposits into

life-savings. This mother duck

chose a first floor balcony to

hatch her broad, she needed a

helping hand to get them to

earth. Banker Joel Armstrong

was in the right place at the

right time. One after another

the day-old ducklings went into

free-fall, Mr Armstrong never

looked like dropping. When the

last chickened out he climbed

into action. Mother and duck

set off down the street until

they found the river. You did

it. After all that ducking and

weaving, this was plain

sailing. That's our bulletin

for this Tuesday, 7.30 Report

is up next. Good afternoon.

Closed Captions by CSI This Program is Captioned Live.

Welcome to the program, last

week was the hard graft behind

closed doors, this week closed doors, this week the

hard sell in the open. Today

the Prime Minister, Treasurer

and even the Treasury and even the Treasury Secretary

Ken Henry were out in public

selling the Budget. And perhaps

just as importantly for them,

justifying the economic

assumptions that underpin assumptions that underpin it.

Ken Henry hit back at critics,

including the Opposition, who

claimed the Budget's economic

forecasts were heroic, a

late-breaking story on Channel

7 news claiming that Reserve

Bank growth forecasts were out

of step with the Government's

stimulus packages were seized

on by the Opposition supporting

its case, I'll talk with Joe Hockey shortly. The Government