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Tonight - a few hours of

peace, but now a new conflict.

A town coming to terms with

tragedy. Everyone around the

town are all in shock. That's

all they want to talk about is

the poor little kids and the

dog. A rare meeting of

presidents - past, present and

future. Is this the end - Matthew Hayden dropped from Matthew Hayden dropped from the

one-day squad. It's very

disappointing not to fulfil the

cricketing calendar.

Good evening, Deborah Rice

with ABC News. There's been a

dangerous new development in

the Israeli-Palestinian

conflict. Israel says at least

four rockets have been fired from Lebanon injuring two

people. The attack is seen as

linked to Israel's Gaza linked to Israel's Gaza

offensive. This after earlier

positive signs of a resolution

in Gaza. Israel agreed on the

principles of a cease-fire deal

and suspended its ground

offensive to allow in

humanitarian aid. Middle East correspondent Matt Brown

reports from Jerusalem, and a

warning his story contains

disturbing images. After nearly

two weeks of war, selected

television crews from outside Gaza

Gaza were finally allowed in.

These pictures cleared by the

military sensor show Israeli

troops hunting for militants

near gritry, as they searched

-- Gaza City, as they searched

damaged buildings, they are

aware of booby tracks. We

searched the school, me and my

dog found ammunitions, RPG, the school was wired up. They were school was wired up. They were waiting for us to come and take

over the school. The whole

school was wired. The troops

find a Palestinian family

trapped by the fighting. ,

"We've been here five days and

we need food, we have no milk

or bread", says that

man. During a 3-hour lull in

the Israeli bombardment others

fund relief, venturing into the

open to stock up on supplies.

The pressure unrelenting. The

Israelis promised more lulling

like this in the coming days.

As the people of Gaza buried

the dead, hopes were high to a

permanent end to the killing.

The French President Nahr kos

yea issued a statement saying

Israel -- Nicolas Sarkozy

issued a statement saying

Israel accepted a

cease-fire. The tunnels ever a

key sticking point. How to

ensure that Hamas will not

resume rocket shooting, will

not resume bombings or terror

attacks, and how to ensure

there'll be no more smuggling

of war materials across the

Gaza-Egypt border. Hamas is

weighing its options. Meanwhile

controversy deepened over an

Israeli attack, killing 40

people gathered at a UN school

to seek refuge. Israel backed

away from claims Hamas militants used the school to

launch an attack on its troops.

After being challenged by the

UN Israel concedes the fire

could have come from outside

the school grounds. It says

fault for the carnage lies with

Hamas for firing from the area

in the first place. Matt Brown

joins us from Jerusalem. Matt,

we have heard the new front

opened up with Lebanon, what

details do you have of

that? Several rockets were

fired to South Lebanon into the

Northern Israeli city of

Nahariya, several were wounded

and residents in the area have

been told to stay indoors or go

into their bomb shelters,

Israeli military responded with

artillery fire. The important artillery fire. The important

thing is we don't know who is responsible for this

attack. Why is this a sensitive development? Well, there are

Palestinian militant groups in

the area that have a small

number of rockets. If they are responsible, this incident may

be contained. Others may come

in to back them. The Lebanese

militia, Hezbollah, has

thousands of rockets, back in

2006 it snuck across the 2006 it snuck across the

border, kidnapping two Israeli soldiers, launching a barrage

of rockets on Israeli towns,

causing a month-long war. Matt

Brown in Jerusalem, thanks for

the update. The Defence Force

announced an investigation into

an incident in Afghanistan.

It's claimed up to nine Afghan

locals were injured or locals were injured or killed during clashes with international forces and

Taliban insurgents, an inquiry

has begun to find out whether

Australian troops were

responsible. Today at the base

in Afghanistan, Australian

military leaders and soldiers

held a memorial service for one

of their colleagues. Private Gregory Michael Sher died

Sunday during a rocket attack

on a patrol base in the Oruzgan

Province, he was an experienced

soldiers ier , the aghts

Australian to be killed in -- experienced soldier, the

eighth Australian to be killed

in Afghanistan. The father of a

child mauled to death by a pack

of dogs says it was no-one's

fault. Her 15-month-old sister

was released from hospital was released from hospital

after being tried for bites

from the face and body. Three

of the dogs died after being

treated with tranquillisers at

a council pound. Jayne Margetts

reports. The house where the

attack happened is deserted,

the yard strewn by reminders of

a little girl's death in

horrific circumstances,

3-year-old ruby Lae was mauled

by a pack of dogs. Everyone in

the town is in shock, that's

all they want to talk about, if

a bomb took off they wouldn't

take notice of a bomb. The

children were being cared for

by the dogs owners, yesterday

morning the neighbours heard

barking and cries for hep. When

they arrived the girl was

dead. I saw the cars, I

couldn't make out what it was,

someone told me the dogs

attacked the little girl. Her 15-month-old sister Lily

suffered bites to the face and

body. Neighbours have theories

about what prompted the

attack. I think it's jealousy,

not used to having children

around the house, only the

owners. Three of the dogs had

been registered with the local

council. We don't have a

control of what dogs do within

the premises of a residence.

Unless we have a complaint, in this case we've had no complaint complaint whatsoever. Last

night the dogs were sedated

with tranquil isers and

impounded. This morning three

of the four dogs were found

dead at the pound. According to

the council ranger, they died

from a combination of sedative

drugs, heat stress and obesity. The State Government

says its dangerous dog laws are

tough enough. At the end of the

day it's up to people to supervise children when they supervise children when they

are around dogs of any

breed. The girls' father issued

a statement saying no-one is to

blame. There were violent

clashes in Sydney's south-west

today, this time involving the

media. More people were in

court charged over the brawl in

Rosemeadow Monday night. As

arrests continue, it's clear

the troubles in the area are far

far from resolved. Three days

on tensions over the Rosemeadow

brawl show no sign of

easing. (Bleep) off. Supporters

of people charged over the

brawl clashed with the media

outside the Campbelltown

Children's Court. You are going

to get in trouble. Inside the

court a 16-year-old boy was

refused bail over a string of

firearms and affray charges. In

the nearby local court a

27-year-old man, John Rophia,

arrested last night was refused

bail on one charge of affray.

He'd been on parole at the time

of his arrest. In nearby Clay

more police moved in during the

afternoon to arrest one of the

people involved in the earlier

fracas with the media. Get

away, get out of it. Police

have arrested more than a dozen

people over the initial brawl

and subsequent violence, they

say there'll they'll be a

presence tonight We have had

over 30 personnel allocated to

that area to conduct raids and

also to raise the presence of

policing in the area. A group

of Elders from the community

say they'll make a public

statement about the unrest

tomorrow morning. The state

Opposition is set to break

years of political opposition

by pledging an end to the law

and order auctions during

election campaigns, wanting emphasis on rehabilitation

instead. The Government is in

the bidding, standing by its

sentencing regime, insisting

it's already doing enough to

turn offenders around. More

police, tougher sentences. So

goes the law and order auction

between the major parties at

election time. But the NSW

Opposition has put in a bid to

end it. I've seen these law and order auction proposals

implemented and failing. The Coalition's justice spokesman

Greg Smith promised to end the

law and order bidding war,

citing his real-life experience

as a former Director of Public

Prosecutions he wants to spend

more on rehabilitation. There

are many prisoners who are not

such a physical danger to

society, but who could be

rehabilitated in a better way

than is being done at the

moment. The Government is not

buying the Opposition's call,

and is proud of its record on

police numbers, sentencing and

rehabilitation. We have a

strong sentencing regime, we

make no apologies for it. We

recognise also the importance

of providing opportunities of providing opportunities for

people to address their behaviour. Standing by the side

of the Attorney-General, a

victim of crimes backed the Government. I think Mr Smith

has today, if you'll pardon the

expression stated the bleeding obvious. The Opposition found

itself on the same side as

civil liberties groups. Too

many people are ending up in

prison, and too many people are

exposed to conditions in prison

which cause them to reoffend which cause them to reoffend

after their release. Greg Smith

insists the opposition has not

gone soft on crime, and holds

hardline views on punishing

violent offenders but is

confident the new approach will

be taken to the next State

Election and believes voters

will approve. It's a plea from

the Acting Prime Minister to

the unions, "Be responsible". Julia Gillard says the Julia Gillard says the global

financial crisis means that job

security is more important than

large pay rises. The push for

wage restraint is being

ignored. Air traffic

controllers are the latest

workers seeking a big pay rise, they are not ruling out

industrial action. In the

smelters...

..and in the skies. The conditions are right for a wage

claim. The reality is we are

short of air traffic

controllers across Australia,

we need more people in the

job. They are seeking 25% over

three years. If they don't get

it, air traffic controllers

could strike within the

month. As always, any

industrial action is the last

restart. For workers at the

struggling aluminium giant

Alcoa, the stakes are just as

high, they want up to 30% more,

but the Government wants

everyone to keep a lid on

it. Simple message: think

about jobs first. Anxious about rising unemployment, Julia

Gillard is telling the unions

to show resfrant in their wage

demands. We want to --

restraint in their wage

demand. We want to minimise job

losses and ask people to take a responsible approach to

that. The unions tell her right that. The unions tell her right

back workers need more money in

the tough times. Wage increases, where the companies

can bear that, critical to maintaining demand in an

economy. The debate reflects

the changing landscape. Workers

in the mining sector pointing

to years of good times as proof

that pay rises are affordable.

As the Government knows the

boom is no more. The mining

industry will be facing a

different era than the one it's different era than the one it's

been in, with the prices for

commodities coming down. But

then even the ACTU admits that

some claims are simply

that. Argy bargy of collective

bargaining will go on regardless of the economic

circumstance. The outcome is

what people need to focus

on. Under the ground and high

above it... above it...

..a supersized pay rise could

be difficult to land. Officials

in Washington confirmed that former Prime Minister John

Howard is the dignitary who's

preventing Barack Obama from

staying in the presidential

guesthouse. Barack Obama didn't

comment on the issue today,

instead he attended a historic

meeting at the White House with

American presidents past and present. present. Washington

correspondent Mark Simkin. The

former rivalries were put aside

for the ultimate power lunch. I

love this rug. For the first

time in more than a quarter of

a century, all the living

presidents met at the White

House. I want to thank the

President-elect for joining the ex-Presidents for

ex-Presidents for lunch. I am

one message that I have, and I

think we all share is that we

want you to succeed. Barack

Obama requested the lunch, with

Gaza in turmoil and the US

economy in recession, there

would have been a lot of

questions asked and a lot of

advice given. This is an

extraordinary gathering, all

the gentlemen here understand

both the pressures and

possibilities of this

office. The get together is a

sign of a relatively smooth presidential transition. The

only hiccup has an Australian

flavour. Barack Obama can't

live at the White House until

after the inauguration, so he

asked if he could stay at the

official guesthouse. The

administration knocked him back

saying there was a prior

booking. The Obamas had to

check into a hotel. Which

visiting dignitary unwittingly

bumped the President-elect. John

John Howard will stay in the

guesthouse before receiving the

Medal of Freedom. Left-wing

commentators are shocked a

former Australian leader trumps

the new American one. Given how

popular John Howard is in

Australia, it's possible he's

seeking political asylum. And no hotel would take

him. Britain's Tony Blair and

Columbia's Alvaro Uribe will Columbia's Alvaro Uribe will be honoured alongside John Howard.

They were invited to stay at

the guesthouse, but

declined. Russia has shut down

all gas flows to Europe through

Ukraine and won't restore

supplies until Ukraine agrees

to pay full market prices, the

row over gas prices and unpaid

bills cut heating to tens of

thousands of household in Bulgaria, hitting supplies as

far west as France and jerm ni,

as Europe faces freezing

temperatures. Ukraine a state

with a large Russian speaking

population had been paying

prices below world levels.

Russia and Ukraine blame each

other for the supply cut and

agreed to let the European Union monitor independentenedly

gas flows. The top story -

Israel fires artillery into

Lebanon in response to rocket

attacks on Northern Israel.

Still to come - Matthew Hayden

dropped from the Australian

one-day squads.

Cooler weather gives

firefighters time to strengthen

containment lines around

several fires across the state.

The concern a blaze in the The concern a blaze in the

Southern Highlands, the Rural

Fire Service says residents

should take advantage of conditions to clear around

their homes before the hot

weather returns Queensland's

north-west is inundated

tonight. Water racing down the

major river systems in the

region cut off towns between

Julia River, Mt Isa, Boulia and

Camooweel. More than 1,000kg of food and medical supplies have been

been flown in, a derailment

west of Cloncurry closed the

line between Townsville and Mt

Isa, a helicopter is on stand

by in case emergency

evacuations are necessary. The swollen Georgina River has tone

over Austral downs station,

300km west of the Mt Isa, it

runs 17,000 head of capital. It could be weeks before those

there get the chance to assess the

the damage, let alone see dry

land. There's no panic

yet. They love the rain down,

when it's too high, it's

menacing for them. They like it

in the backyard at the

moment. In Mt Isa kids make the

most of the water in their

backyard. It's been a long time

since there was water in these

creeks. For drought-stricken

cattle the green roughage

couldn't have arrived a minute couldn't have arrived a minute

erl. Julia River was far from

full yesterday, the creek today

close to going under. That's a

fas makes of outback

Queensland, things --

fascination of outback Queensland. Things change in a

matter of moments. That means a

precarious situation for truck

drivers transporting foots to Queensland and the Northern

Territory. Roads could be

closed for six weeks, the

Barkly will take three months

to retare. The Transport

Workers Union says the Federal

Government needs the Defence

Force to be involved. We have aircraft sitting on the tar

macs around the country, we

might as well utilise them to

get the food out. The Bureau of

Meteorology says the weather

system passing through the west

last night will turn around

tonight, heading back to the gulf. The challenge is

additional rain falling in areas

areas well saturated. The The

attention is focussed on the

outback town of Boulia that

started flooding today. The

average rainfall around 50mm,

125mm has already fallen in

just the last week. The massive

amounts of water flowing down

the nearby Georgina River

doesn't look like easing soon. In

soon. In finance, the mood on

global share markets darkened

in response to bad news from

the United States. Domestic

data added to the gloom as

building approvals plunged suggesting interest rates would

need to keep falling. It's time

for all the optimists to take a

cold shower. The All Ords index

falling more than 80 points, or

2%, wiping out most of this

week's gains. It was a similar

story throughout the region as

weak US jobs data turned

optimists into pessimists and

world equity markets down, that

news hitting commodity prices,

especially oil, which was

affected by numbers showing

America's oil inventories were

higher than higher than forecast.

We had home grown bad news,

November's trade surplus

smaller than expected, exports smaller than expected, exports

falling, succumbing to the

global slowdown, and as

interest rates plunged late

last year, so did building

approvals in November to be

nearly 35% down in 12 months.

And an index of construction

activity weakened in December,

to be below 50, meaning the

sector's contraction is accelerating. Building

approvals this low have been an ominous warning in the ominous warning in the past,

with the exception of late

2002, when the huge rises and

falls cancelled each other out.

The building approval slump in

2000 preceded the GST

introduction and negative

growth that year, and in 1989

it preceded a deep recession.

Needless to say, it weighed on

share prices, resource stocks

not treated kindly. Building industry Building industry like boreal

fell, and Macquarie Group

warned it faced tough market

continues last quarter hurting

proofists. Trading in Babcock &

Brown was haltered. So

investors punished its investors punished its satellites.

The economic data and weaker

commodity prices saw the

Australian dollar come in for

punishment. Down sharply to

below 71 US below 71 US cent. That's

finance. A 31-year-old man has

been arrested in Perth and will

be extradited for NSW for the

murder of a Sydney prostitute

more than a decade ago. Richard

Dorrough made a brief mrns in

Perth Magistrates Court today.

He was -- appearance in Perth

Magistrates Court . After a

review of DNA evidence. He was

accused of the 1998 killing of

29-year-old prostitute Rachel

Campbell, she was stabbed to

death, her body dumped in the

grounds of a church in Sydney

south. He appeared in Perth

Magistrates court, remanded in

our custody to be taken to

Sydney. He'll be charged with

Rachel Campbell's murder.

Richard Dorrough has family in

Perth where he was working as a

diver. Australian Test opener

Matthew Hayden says he'll

consider his future over the next few weeks next few weeks after being left

out of the National limited

overs squads. Matthew Hayden

struggled for form since

returning from in-- injury. The

next test squad will be

announced next month. For 15

years Matthew Hayden and his

growing family have been

fixtures around Australian team

hotels. The 37-year-old's

presence won't be felt during

this summer's Twenty20, and one this summer's Twenty20, and one

day matches, his career in the

balance. It's my call and, you

know, as I said at the start,

it's time to get back with my

family and people I love. Selectors are looking two

years ahead. In one day cricket

it's our view that he wasn't

going to get to the 2011 World Cup. Matthew Hayden is in the

2009 Test mix. I'm still of the

view our best plans would be

for Matthew Hayden to go lo to

the end of the Ashes. His replacement against South

Africa at Twenty20 level on

Sunday, hard-hitting NSW

22-year-old Dave Warner is yet

to make a first class

debut. It's my game. Queensland

all-rounder Ryan Harris has a Twenty20 birth and South

Australian Shaun Tait returns

to national duties in both

short form squads. It's up to me to repay

me to repay them. If I get a

run hopefully I'll do well and

show them that they've made the

right decision. Fast bowl

e-Mitchell Johnson has been

given down time, Vice Captain

Clarke will miss two matches

with a chum injury. Elsewhere

Graham Smith is heading home

for treatment on his hand and

elbow, his decision to shed his

plaster cast to help plaster cast to help his team

save the Sydney Test earned accolades. Opportunities come

around to show bravery,

whatever. In the context, it

was nice to have the

opportunity. It would have been

nice to last 10 balls

longer. England captain Kevin

Pieterson resigned and coach

Peter Moores has been sacked

less than a fortnight before a

tour of the West tour of the West Indies, the

departure put down to a break

down between captain and coach.

Andrew Strauss is the new

skipper. Lleyton Hewitt had his

first loss since his return

from injury, going down to

American James Blake at the

Hopman Cup in Perth. Western

Australian Casey Dellacqua had

her first win at the tournament

before Blake defeated Hewitt to

ensure the tie was decided in the mixed the mixed doubles.

The United States claimed victory in victory in a third set match

tie break. Casey Dellacqua lost

her previous two singles

matches at the Hopman Cup, but

took the first set convincingly

against Meghann

Shaughnessy. Despite battling

a knee injury the American

raced to a 3-0 lead in the

second set. But Casey Dellacqua

fought back to take the set and

the match 6-3, 6-4. Lleyton Hewitt struggled in Hewitt struggled in his rubber

from the outset, arguing with

the umpire over a line

call. The ball was in the air.

It's too late. Then asking for

a trainer after being bothered

by an ear ache. His opponent

James Blake taking it in his

stride, powering past the

Australian. The American

controlled the match from start

to finish. Winning 6-2, 6-2. It

wasn't a Lleyton Hewitt we have

come to know, the player that

can win a grand slam title. He

wasn't at his best. It's tough

to play against someone not at

his best. The Americans took

the mixed doubles ensuring the

hosts were winless against

their three ties. The Slovak

Republic were the first to

qualify when Nicolas Kiefer had

to retire because of an ankle

injury. Two of the top women's players had different

preparation, American Serena

Williams arriving in Australia

today. While at the Brisbane

International top seed Ana

Ivanovic suffered a shock

straight-sets loss to French woman Amelie woman Amelie Mauresmo.

A silver tray that once

belonged to Captain James Cook

has been bought by the National

Library for $120,000. The piece is covered in small is covered in small scratches

suggesting it had a lot of use

in the Cook household, probably

to serve tea and drinks, and

was inscribed with Cook's coat

of arms after his death. He was

a popular celebrity after his

death, marking the begins of

the growth of the British

Empire, it was an extraordinary

well-known coat of arms, and it

has the term, "He left nothing unattempted", on

unattempted", on it. The

insignia is un unusual, because

the Pacific region is in the

centre of the globe, instead of Europe. It will join a

collection of maps and other

items collected to James Cook.

The weather, and it's been

three weeks since an update on

the Sydney's dam lefs, how does

it look. It's not good, all the levels are levels are down.

Light showers in Sydney.

Teemp tours will be cooler

tonight - -- temperatures will

be cooler, light showers and

cooling patches B A trough

moved to the north-east of the

state. Further south the coast

and ranges experienced low

cloud in a fresh onshore wind

flow. Temperatures south of the

trough fell below average.

Showers and storms produced

plenty of light falls across

the state yesterday. It was a

thunderstorm this afternoon

producing some falls of up to

40mm in the area around Scone. Now there was

Now there was brief showers in

Brisbane and Hobart and

thunderstorms around in Darwin

and Cairns. The most

significant cloud is over the

Territory, and Queensland. It

will increase in the coming

days as the monsoon trough

deepens, and there's a high

chance of a cyclone in the Gulf

of Carpentaria by Sunday. Cloud

along the NSW coast persisting,

as a high in the Bight

maintains magnificent onshore maintains magnificent onshore

winds, a trough in the

north-east moving west reintroducing unsettled

weather. The rain tomorrow less

than 5mm, similar falls over

the weekend, as storms and

showers develop along the

trough. Brisbane and Darwin the

wettest, day 13 of the heatwave

in Perth. There's a chance of

thunderstorms about the northern border ranges tomorrow

with showers and drizzle on the

north and central coasts, and the

the adjacent ranges, they'll

clear from the southern

districts. Mostly sunny and dry

elsewhere. Winds generally east

to south-east, and there's a

high to extreme fire danger

over much of the inland. It

will be cloudy in Sydney, with

a light shower or two in the

morning. A light to moderate

south-easterly winds hanging

around through most of the day,

producing choppy conditions on

the water. Despite the shower

icons as we head to next week,

it's in association with a

trough sitting through the

inland. It doesn't look as

though we'll see individual heavy falls, just the odd

shower or two, the weekend looking good. looking good.

Another look at tonight's top

stories, there's a new front in

the Middle East conflict with

Israel shelling Lebanon in

response to rockets fired response to rockets fired into

Northern Israel. A father of a

young girl killed by a pack of

dogs says her death was an

accident. The State Opposition

pledges an end to law and order auctions in favour of

rehabilitation policies. That's

ABC News for now, I'll be back

with updates during the

evening, the '7.30 Report' is

next. You can keep up to date

at ABC News Online, for the

latest tomorrow morning, don't latest tomorrow morning, don't forget break 'ABC News

Breakfast', on ABC2. Goodnight.

Closed Captions by CSI

Tonight on the '7.30 Report' Tonight on the '7.30 Report'

- Australia's real-life Billy

Elliott. My father is very into

Motorsport. He raced

drag-racing, I would easily

have chosen that path as well.

And I still follow championship

drag-racing regularly, I love

it. From Sydney's west to the

Royal Ballet. He's a very

exciting person to watch. Every time

time he gets on stage you know

he'll do something more,

always. This Program is Captioned

Live.

Welcome to the program. I'm

Scott Bevan. Also the Rudd

Government's looming showdown

with the unions on the issue of pay rises

pay rises in tough times. That