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Pressure mounts on Israel to

lift its blockade of Gaza's

borders. A High Court challenge

to Australia's policy of processing aslyum seekers offshore. Police prepare a second arrest warrant for man

wanted over the murder of Perth businessman Craig Puddy. And

the Socceroos kick off their

South Africa campaign with a

1hill nil win over

Denmark. It's Wednesday 2 June. I'm Michael Rowland. And I'm Virginia Trioli. The top

stories on ABC News Breakfast -

pressure is growing on Israel

to lift its blockade of Gaza's

borders. Some aid and supplies

have been getting into Gaza

after Egypt temporarily opened its border with the Palestinian territory. But the United

Nations Secretary-General Ban

Ki-Moon says Israel's attack on

an aid flotilla would never

have happened if the Israeli

border with Gaza was open. Israel's acknowledged its

mistakes in the fatal raid but

still blames convoy organisers

for any deaths. The first batch

of humanitarian aid from the

blocked flotilla makes its way

into Gaza. Israel is allowing

the freight in after checking

it for weapons. At the other

other enof Gaza an Israeli air

strike kills three Palestinians

after rockets were fired into

Israel. Earlier in the day the

amy says two militants crossed

the border and were killed.

This is the reality of the

siege that's been in place

since Hamas took power in Gaza

in 2007. And the raid on the

aid ship it's tried to bleak

that blockade has put it into

the international spotlight.

TRANSLATION: Israel should

immediately lift the inhumane

embargo on arguo and it could

not prevent humanitarian aid

being carried to Palestinian

people. Australia, China and

the UK are also calling on

Israel to completely open its

four freight crossings with

gassa. Israel says it allows

leader 15,000 tonnes of

humanitarian aid into Gaza each

month but the US UN says that's

about a quarter of what's need

and it says items like school

books and even artificial limbs

have been stopped from going

in. The Government maintains

there's no humanitarian crisis

inside Gaza but that's an easy

statement to make from here

inside Israel and which people

who haven't set foot inside the

Gaza Strip in three year, since

the crossings were closed. In

Gaza no building supplies are

allowed in. So we've seen

hospitals that remain

unfinished. We've seen people

still living in tents a year of

the Gaza war ended. Even the

import of glasses restricted so

this school for disabled

children spends the winter with

plastic on the windows. Gaza is

a place where the only building material is recycled rubble

from bombed out buildings mixed

with cement that's smuggled in

through the tunnels from Egypt.

Egypt also restribts access through its single crossing into Gaza but has just

announced it will temporarily

open it for three days. Gaza is

controlled by Hamas, a

resistance group backed by Iran

that is sworn to destroy

Israel. Israel says the

blockade of Gaza is to stop

Hamas from building up its

arsenal. It also say thest the

is a siege will stay in place

until ha has replaces an

Israeli soldier held cap

they've in Gaza for nearly four years but the pressure hasn't

worked. Gaza is now a one party

state that some people who live

there call HamasStan.

International pressure to lift

the siege on their behalf is growing but Israel's Government

digging in. In other news this

morning, Australia's system of

detaining and processing aslyum

seekers off shore is being

challenged in the High Court.

Four new challenges to the

policy have been filed, lawyers

for at least 13 Afghan yay Sri

Lankan aslyum seekers have

already managed to delay

deportations. All in the group are being held only Christmas

Island or on the mainland but

they're classify as offshore

detainees. The Government says

it's confident of winning those cases. West Australian police

have prepared a second warrant

for murder suspect Cameron

Mansell. The 3 #-year-old was

detained near Townsville last

week after a nation wide man

hunt by police investigating

the disappearance of his

business partner Craig Puddy. A

frad magistrate in North

Queensland has ruled the first

arrest warrant invalid. Police

will resume their search for Craig Puddy's body Craig Puddy's body today . That

woman has died in hospital

after being stabbed and set

alight during a the mostic

dispute if Melbourne's east

yesterday. Bystanders at a Bayswater Petrol Station by a

tried to save the woman as her

car and a portfolio pump caught

fire. The attacker was found by

police in a nearby church yard.

He remains in hospital under

police guard. In Guatemala a

giant sink hole has swallowed a

three storey building and a

house. It opened up in

Guatemala City in the wake of

tropical storm Agatha. A

similar hole up opened up near bilast year and residents

blamed the poor underground

sewage system. The storm has

killed at least 150 people

across central America and BP

has vealed that the cost of the

US oil disaster has reached

almost a billion dollars. The

news saw a plunge in BP's share

price, closing down 13% after

at one stage falling to its

lowest levels in 15 months. The

US Government says it lacks

some key equipment to clean up

the spill. The White House will

appeal to foreign Governments

for help. Australia's system of

detaining aslyum seekers who

arrive by boat is being

challenged in the nation's

highest court. Lawyers acting

in four separate cases

involving refugees say it's

unlawful to deny boat arrivals the

the full right to a a legal appeal. For about nine year,

and under two Governments

Australia has been denying

aslyum seekers arriving by boat

full rights to a peel against

Government decisions made about

them. That's enforced by

processing them off shore at

the moment on remote Christmas

Island. It's been removing from

Australia's migration zone. But

now four appeals to the High

Court threaten to render that

system obsolete. Well,

hopefully it forces them to

reconsider that whole

process. Sydney lawyer Stephen

Blanks says representing a Sri

Lankan aslyum seeker. Commald

is part of Australia, Australia

awn commicial official can only

act there in accordance with

Australian law a so the basis

of this case is that Australian

law applies to what is being

done here. The debate over what

to do with aslyum seekers is

one of Australia's most di

siesive. High Court action is

not what the Government needs

in an election year, but the Immigration Minister says he's

confident the appeals will fail

. Well we think we've got very

strong chances of success. Our strong chances of success. Our legal advice is there's no

proper basis for the challenge,

we'd expect to win and that

will allow us to get won

determineling the status of

offshore aprooifls. We've

always said that the great risk

of this Government transferring

people from Christmas Island to

the mainland would open up that

whole can of warms of again of

people having endless access to

the court scbls at least 13

aslyum seekers from Sri Lanka and Afghanistan are being

represented in court. And many

have had their deportation

delayed as a result. Some

refugee advocates say lawyers

are now looking at a class

action for a greater number.

Turning back to our maybe

story, the aftermath of

Israel's aid than aid flotilla and

and we're hearing that Israeli Ministers have agreed to

release all foreigners detained

from aboard that flotilla so

that will be happening in the

next few hours. Bill Corcoran

is President of the American Near East Refugee Aid which provides human and development

assistance to Gaza and as we

know the raid on the flotilla

has put the spotlight again on

the plight of the residents of

Gaza. He's a a frequent visitor

to that region

to that region and joins us now

from Washington. Bill Corcoran

we have news overnight that

Egypt has decided to

temporarily lift its blockade

of Gaza. Do you see that as a

welcome move? Well it's always

welcome when they open up that

outlet but it is temporary I'm

sure and our primary concern as

professional NGOs is that we have an opening of the crossing

on the Israeli side because

those are the those are the major cargo

centre it's are able to carry

large containers and truck load

of supply it's are so needed in

Gaza What chance do you see of

Israel bowing to that increasing international demand

and lifting that blockade? I'm always hopeful but at the same time this policy has been

rather consistent for the past

three years. A number of

imports are contained every

month of food and medicines but

the legal loopholes and the

hurdles that we're going

through are tremendous and

they're increasing raesh decreasing. Recently for instance we were trying to get

a medical shipment in and we

were denied the importation of

Kathters, there seem to be a

little rhyme or reason so the

number omp refusal for allowing certain products in and certain products in and we're

containing to beat our heat

against that bureaucracy You

see therefore there events of

the last couple of days, that

flotilla that ended

disastrously as being

effectively the only realistic

way of breaching that Brock blockade? No, I wouldn't say

that what the ships did was necessarily strategically smart

or really a major improvement

in the daily lives of

Palestinian pls ls pass. That can only come can only come through the

Israeli crossings because they

are constructioned for a large

scale industrial importation.

We're hoping that this Israelis

will somehow liberalise that

whole situation. We're also

asking the American Government and the international community

to continue to put pressure on

them because we're of the firm

opinion that starving a

3-year-old is not the way to

control Hamas or to provide

security for Israel. As I mentioned you're a frequent

visitor to Gaza can you give me

an insight into the plight suffered by the average

Gazan? Well I've been there now

eight times incthe war and each

time it gets a little bit more

cleared of the rubble but their

lives are really deteriorating.

They still do not have ample

food because one third of the agricultural fields like fall

yox they don't have the spare

parts for the well, they don't

have the ability even to get to

some of the fields because they

have unexploded ordnance in

them. The hospital, many of

them were damaged, they can't

rebuild that because they don't

have cement or steel, and

simple things like the sewage

system right now, they cannot

be repaired and so every single

day the Gazans are pumping 75

million litres of raw sewage

out into the Mediterranean and

oddly enough that flows right

to Israel and hits its beaches.

So the situation is bleak and

deteriorating rather than

improving. I've read a recent

report after one visit where

you write of a remarkable

resilience of a lot of

Gazans? This is true. They

have, they're good business

people in many ways, they find

some way to survive and make do

with with limbed resources but

their patience after year of

this, three years now of

closure by Israel, has just

taxed them all. And we're

hearing them going to a new

phase now and it's just really

depression, a number of people

are self-medicating themselves

with a Valium-like substance

and they're finding that's the

only way for them to survive

and when you speak to youth you

ask them what would they like

to do in the future and they

say either get out of Gaza or

simply die. That's not the dreexs normal youth right

now. What do you stie Israel's

argument that it's really Hamas

that's responsible for this

plight of the people of Gaza,

because they're firing rockets

din inn discriminately into southern Israel and posing a terrorist threat to the State

of Israel? There's no question

that has Ma is partially to blame for this. At the same

time, the Israeli policy of

imposing almost inhumane conditions on the average

family is not the way for the

Israeli to get security Israeli to get security whether

it's here or there. We'll

suggest that they'll get much

more by allowing the Gazan

people to live in dignity and

there then there might be possibilities for

containing. We may not see

change in the near future but

in the long-term is the

blockade of Gaza politically, diplomatically, economically sustainable? I suspect by

Israel it is sustainable. They

have a large military and as a

result it's something which

they could endure for quite

some time. Whether or not it's

advisable is another question.

For the Gazan people, it is not

sustainable. They have

exhausted their resources and

they have very little left and

in organisation are shipping in

food and basics every day, our

resources are being depleted so

the ability to sustain this

current situation for much

longer is not something I

foresee. Bill Corcoran of American Near East Refugee Aid,

thank you for your time this

morning. Thank you very

much. We'll take a look now at the front pages of the front pages of the major newspapers around the country

and that issue of course still

splashed right across the front

of most of them. Israel's

become increasingly isolated as

its allies and enmisexpress

outrage over that raid. The

'Mercury' says a young Australian has had surgery for

a bullet wound after he was

caught um in that Israeli raid.

The 'Sydney Morning Herald'

says authorities are preparing

for another show down with two

more boats headed for the

besieged Palestinian

enclave. Solar power industry

leaders say shady work is rife

in the industry. The mining

industry has released economic

modelling showing the Government's proMCGed resource

tax would have a devastating

impact on the value of some minings. The 'Australian' says

Kevin Rudd is preparing to deal directly with smr mining bosses

to avoid a public brawl over

the proposed tax. PM Kevin Rudd

is dealing with rising Labor

caucus dis content over key

Government policies in a particular aslyum seekers and that's in 'Canberra Times'. The

'Herald Sun' says Victorian

commuters are prepared to stand

on a train for up to 45 minutes

according to the Victorian Government. The 'Daily

Telegraph' says the Sydney

Opera House will receive a $130

million rescue package to help

repair the national icon but

that's not what they've wanted

and been after at the Opera

House for almost 15 years now.

The Federal Government's - several

several Governments have been

lobbied to try and get the

money that the House needs to

restore and also bring it up to the glory it was the glory it was suppose tobd The Anglican church has received advice received advice that it could

legally transfer money from its

charity organisation Anglicare

to pay commeption to sexual

abuse victims. Finally the 'Northern Territory News' say

twos men have been arrested in connection with the shooting of

a man at a bush camp site. We

reported that story the other

day. If you'd like to send us

your feedback -

Top of the conversation today will

will continue to be the Israeli

aid on that flotilla but as is

normally the case with these stories, anyhow the other side

of the story if you like is

coming out too and I'm shower

that be a bone of contention

for you this morning, Israel

says that many if not all of

its commandos once they approached that boat were subjected to extreme subjected to extreme violence

and were beaten with metal bars

and in one case one commando

was overpowered and actually

tipped over the side of that

boat so the Israeli line is

that they were not going there

to meet peace keepers or a

piece visit, that it was a lot

more slielent then than Now that Israel has agreed to

release most of 2600 prisoners

behind bars as a result of that

raid we'll get the other side of the story including

of the story including

hopefully from the Fairfax jl

journalists Paul Mcgo. We'll

take a look at the top stories on ABC News Breakfast..

The US Secretary of State says Washington backs the United Nations call for a prompt and perhaps parent investigation

into Israel's attack on a

Gaza-bound aid ship. But Hillary Clinton says Israel could conduct its own

investigation as long as it

meets those criteria.

Australia's system of detaining

aslyum seekers who arrive by

boat has been challenged in the

nation's highest court. Lawyers

acting in four separate cases

involving prospective refugees

say it's unlawful to deny them

the full right to a legal appeal. And West Australian

police have prepared a second

warrant for murder suspect

Cameron Mansell. Mr Mansell was

detained in near Townsville

last week after a nation wide

man hunt by police

investigating the disappearance

of Craig Puddy. The magistrate

has ruled the first warrant's


Now to the story that keep on

keeping on, representives from

the mining sector will descend

on Canberra today for a two day

conference which will focus,

yes, on the Super Profits Tax. For more Melissa Clarke

joins us now from Canberra.

Good morning. So there'll be

lots of these grumpy people in

town will there? I can't escape

it. Try as I might. All the

mining companies, a lot of

their representatives are going

to be in Canberra for the next

two days as they have their

annual conference, today and

tomorrow. They've dubbed it

minerals week so this is where

they come va a big AGM tonight.

They'll have a big shin dingal

Parliament House. This was the

one that Kevin Rudd was invited

to addressed but he declined.

Tony Abbott will address the

conference instead but the

miners are in town and it looks like they're going to get

direct talks with the PM

himself because the PM Kevin Rudd gave a press conference

yesterday mostly to talk about

the Super Profits Tax, the it's

if first press conference he's

given for a couple of months

and he came out on the grounds

that the Government had

received its first report from

its consultation committee

about the negotiations and he

made several points and among

them was firstly that he

expected negotiations to

continue for weeks yet, he said

it's not a matter of days that

the Government won't be rushed

into some kind of timetable of

getting this sorted out,

they'll keep negotiating and

that may well take weeks or

longer but also that he was

prepared to directly intervene

and talk to the mining

companies himself if that's

what is required to reach some

kind of compromise here. But in

the meantime, the war continues

because the Government is still

rolling out its ads and what

we've seen is the latest from

the mining companies is the

Minerals Council putting out

retch from KPMG shows that new

copper and nickel and iron ore

mines won't necessarily be viable according to this study

with the new tax in place so

the bat rolls on. Certainly

does. So there seem to be

another battle of a different

kind looming for Kevin Rudd

because his own caucus is

starting to get a bitancy about

a couple of issue it's have

clearly seen Kevin Rudd's

fortunes fall in the opinion

polls? Well, a number of

backbenchers questioned the PM

Kevin Rudd in their caucus meeting yesterday. Of course,

all the Labor MPs get together

on Tuesdays of sitting weeks

before parliament starts to go

over all the issues and they

spent a long time in caucus

yesterday talking about the

issue of aslyum seekers and a

number of backbenchers raised

with Kevin Rudd that they'd

been approached a lot in their

electorates about fear in this

community about boat arrivals

and that there was a lot of

misinformation going around

about what sort of entitlements

they receive, I think media

watch has done a number of

exposes on some of the rumours

that fly around about

entitlements and welfare

benefits that are given to

aslyum seekers and there's a

loft concern that

misinformation there from some

of these email campaigns is

really upsetting people in the

local electorate. It's really

forced Kevin Rudd to respond to

the caucus saying that he

promised them he wouldn't try

and outflank the Coalition on

the right and that he would try

and correct some of those mists

that are out there so there's concern within the backbench

but particularly from those in marginal seats where they're

under attack from the Greens or

from the left that the

Government by trying to appear

tough on people smugglers is

coming across too harsh on

aslyum seekers as well, but the

really interesting thing here

as well is that Tony Abbott

when he had his meeting of all

the Liberal and national MPs at

they have their joint party

room meeting faced questioning

about the same issue. There

were some in his party, two

moderates, who raised with Tony

Abbott questions about how he

proposed to keep his promise of

turning boats back where

possible, they were suggesting

that that's just not viable and

there were others who were

frustrated that Tony Abbott

wasn't putting some of these

policies to the party room

before announcing them, so both

of the leaders are feeling the

pressure on the aslyum seeker

issue and I think it shows how

important it will be with the

election just around the

corner. That's right. So Tony

Abbott's decided to sure up

some different kind of support

overnight as well and he'll be

attending that minerals council

din they're Kevin Rudd

won't? He'll be giving a speech

to the miners so Kevin Rudd

might be avoiding a public

debate with them out in the open but he is prepared to do

it behind the scenes, so in

declining that invitation Tony Abbott will fill the gap. Kevin

Rudd instead is going to be

addressing a centenary

celebration of Andrew Fishter

former PM, at old Parliament

House tonight but while the

miners from in town, Clive

Palmer and Paul House the head

of - the new mining tax and

Paul House from the AWU, tail

be slugging it out at the

National Press Club today at

lunch time as as wellment you

can't escape mining And no and

nor do we want to! Nice to talk

to you. Turning now to finance

nows and US and UK markets

resumed trading overnight after

their closed for public

holidays on Monday and the news

isn't good.

The Socceroos scored a morale boosting victory in the lead-up

to the World Cup and here is

Paul Kennedy. Thank you. Good

morning. Yes, the Socceroos

beat Denmark 1-anymore last

night in South Africa. It was

an interesting game. The scroodz were very pleased with

their perform appearance Ha

their defencive effort in

particular. But after the game

both coaches criticised the new

ball that they're uses at the

World Cup so keep an eye on

that as we show you some

highlights and then we'll hear

from the coaches after this. MUSIC

It's not too far of Mark

Schwarzer's right hand post.

All the way back to the corner,

it's volleyed by Lucas Neil.

This will be a good view of it

as well. He didn't muck around.

Wiltshire with the ang toll try

and cross, takes a deflection.

Awkward bounce, Kennedy might

get there, it drops for Josh

Kennedy and he puts into the

back of the net and Australia have the lead with 20 minutes

to go. A soft goal from

Denmark's perspective but

Australia don't care. They lead

and it's big Josh on the mark.

That's a morale boosting

performance. That is confirmed

by the ref Daniel, beenet, Australia the winners by the

only goal. A good hit-out only goal. A good hit-out for

both team, the result may not

matter too much but the numbers

do keep stacking up for Pim

Verbeek As I mentioned, the

subject of the ball there at

the World Cup it's a newly

designed ball just a few months

ago, it was released and it's

supposed to have less

components than the traditional

ball. Let o's hear now from the

Danish coach and Pim Verbeek. I

will not search for excuse for

my team but I think it will

search for excuse for both

teams. I think it's - we are

still two weeks to work with

this ball because what I hear,

what I see, this is very, very

difficult to control, this kind

of ball. But of course, every

team have to cope with that and

I think that both coaches are

lucky that we still have a

couple of weeks. We did well

for. That we also were

struggling when we had the

ball. You could see every pass

should be 100% right, there is no excuse, your to play the

ball to the feet. Every ball

that's not going there gets

more space and speed. We are

going to train in altitude for

the coming ten days and we're

going to play Germany at sea

level so it will be interesting

if we can change the way of

play displg to the French Open

and Federered if has lost in quarter final for the first

time in six years. 23 grand

slam townments he's gone by

reaching a semifinal or a

final, well that's come to an

end now, Robin Soderling beat

him in four sets, fedded if him in four sets, fedded if won

the first one 6-3 but then

Robin Soderling won 6-4, # 5 5,

6-h. Not the first time he's

caused a big upset. He knocked out Rafael Nadal last year

before Federer beat him in the

final but this one was perhaps

his biggest scalp to far and I

wanted to show you you from from the patch with Francesca

Schiavone who beat Caroline

Wozniacki 6-2, 6-3 and a nice way to

way to finish. Trying to get

that taste out of your mouth bf

you move on to the semifinals.

League star Israel Folau's decision to play Australian

rules football for millions of

dollars has caused plenty of

debate and we'll be discussing

that this morning. We'll have

some comment from the high

performance manager at the

greater western Sydney team

little in the program. Let's look at what happened

yesterday A hand hand shake

with coach Kevin Sheedy and a with coach Kevin Sheedy and a round after applause, Israel Folau

Folau is set to back the

highest paid player in the code of football he's only ever

watched.. No, I haven't played

Aussie Ryles before, but living

in Melbourne for two years I

watched the game before and I

went to a few games. The

Broncos as with Karmichael Hunt

were never in the hunt. Folau's

contract reportedly worth $6 million over

million over four years is one

of the most lucrative in of the most lucrative in Australian sport. How close

could you have come to

that? Less than half. If I

stayed in rugby league, or even

if I went to rugby union I

would have been getting paid

well, so money wasn't the end

fact of my decision. I'm not

going to bag him for it at all.

It's a fantastic offer and one

that will be extremely

difficult for any of us to

knock back. Folau's signing is

a massive AFL coup in rugby a massive AFL coup in rugby

league heartland. It is a

combination of his playability,

of his ability to get people

interested in our new

club. Coach Kevin Sheedy

expects Folau will be a full forward. Definitely somewhere

in the goal to goal line I will

be thinking. Now obviously it

will be a lead-up target, he's

got a great pair of hands,s

that what we tested him at.

He's got a bit of work to do on

the half-volleys A lot of money to flow

to flow at a player who has

never played footy before. It's

a slap in the face for players

that have played the game for a

long time. You should never

shut the door on opportunity.

You should never make judgments

on whether people can and can't

make it But the league player

has probably played his last

stourj match. I would think and

I think the coach one of the

statement view that they would

prefer to have someone around

for the long-term. The

Livermore says the selectors

themselves would get the axe if

Folau was named for game

two. As I said we'll be

speaking to the greater western

Sydney high performance coach

later in the program. I think

now the deal has been done it

might be interesting to look at

what needs to be done and

there's basically experiment of

sport science which should be

interesting from here on in.

But but it's a weird time in

sport. League players going to

AFL and Roger Federer losing in

the quarterfinals. Who'd have thought? Well, Robin Soderling

is a good player so I guess you

don't want to be on his side of

the draw and Federer has paid

the price there. Thank

you. Snubz can be watched live

on the web from anywhere. Just

visit the main ABC News

website. Vanessa O'Hanlon joins

us with the weather now? Good

morning. Let's take a look at

the satellite image. We have

showers that are increasing

over the Queensland and NSW

border. It's from a trough, a

weak front is also passing

Tasmania causing a few light

showers but for the rest of the

country a killy morning from a

high pressure system but we're

in for a mostly clear day

around the country. For

Queensland today

You're watching ABC News

Breakfast, still to come - the

Federal Government's taking

legal action to stop Japanese

whaling. Environment Minister

Peter Garrett will join us to

discuss the issue in the next

hour. And also ahead we'll have

a review of today's newspaper,

this morning we're joined by Plain English editor Andrew Pegler. Leading the news this

morning, there are reports the this morning that Israel will

free hundreds of foreign act

virss seized during a raid on a

depaza-bound aid Flo tilla.

Nine people died in the attack.

Reuters says Israeli Cabinet Ministers have zieed to release

some 6 # 30 activists including

some who it had threatened to

put on trial. Australia's

system of detaining and processing aslyum seekers

offshore is being challenged in the High Court. Four new

challenges to the policy have

been finaled, the Government

says it's confident of winning

the cases. West Australian

police have prepared a second

warrant for murder suspect Cameron Mansell, the

38-year-old was detained near

Townsville last week after a

man hunt by police investigating the disappearance

of Craig Puddy. A Federal

magistrate in North Queensland has ruled the first awest

warrant invalid. BP has

revealed the cost of the US oil

disaster has reached almost $1

billion. The news triggered a

plunge in BP's share price, it

closed down 13% after at one

stage falling to its lowest

level in 15 months. The US

Government says it looks some

key equipment to clean up the oil spill and the White House

is now appealing for help. And

in Guatemala a giant sink hole

has swallowed a three storey

building and a house. The sink

hole opened up in the north of

Guatemala City following a

heavy rains brought by a

tropical storm Agatha. The

Stormont has killed a loot east 150 people across extra

America. A new report looking

at the resources industry under

a Super Profits Tax claims

future projects in major

commodities would become

economically unviable. The

minerals council of Australia

commissioned the study to look

at the impact of a tax rate of

40%. It predicts that

investment will plummet as we

report. The PM is refusing to

shift on the rate of the

Resource Super Profits Tax. The

Government remains fully

committed to a Resource Super Profits Tax consistent with the

framework that we announced on

2 May. That of course cluz a

40% rate. With the Government

striking back against resources

industry claims wits own

advertising, new research

released to Lateline shows how

the hip pocket of the nation

could be affected by the tax. The Minerals Council of

Australia commissioned auditors

KPM dw. To assess the future

impact of the Super Profits Tax

and it paints a pleek picture

of the future. It demonstrates

that in the real world of

project financial

considerations, that this

massive tax will destroy value

to the point where project

projects under any other

analysis in terms of cost and

risk profile would go ahead but

now are at serious threat.

That's the most alarming

thing The research looked at

six major commodity, iron ore,

coal, copper, nickel, gold and

bauxite. Says the future value

of issue ore and coal project

also drop by 46 and 5 #%

respectively based on net

present values and new

nickeling gold and copper mines

would become economically unviable. International

investment community is saying

what are you doing? Do you

understand the ramifications of

what you are doing? Not just

for your industry but for this

country as a whole. The

Minerals Council says the

modelling demonstrates a Super

Profits Tax would damage

investment in Australian

mining. Council chief Mitch

Hooke says it shows global

resources companies would rank

projects in Australia beneath

those in countries whose tax

rates are lower. Projects that in Australia would have been up

in the top end of the equation

will drop down the bottom end

of the equation and therefore

they'll either be deferred,

shelved or just simply cut from

the equation of investment so

investment will essentially

move to where the capital can

be best employed, and if it's

not Australia it will go

offshore. Government and mining

figures will meet in Canberra

this week. But Wayne Swan is

sticking to the line about the

resources industry paying its

way. There is compelling

evidence in the Henry report

that they've not been paying

their fair share, that the

Australian people deserve their

fair share and compelling

evidence in that report as to

what we must do for economic

reform as we two forward. The

hard men of mining and the

Government still have a lot of

ground to cover. In the United

States, controversial new flaws

Arizona have sparked a fierce

national bootle over border

security and illegal immigration. Police are

required to ask people for

evidence of their right to be

in this United States. Critics

say it's a racist law that will

target Hispanics. It was the

biggest protest yet in the five

weeks since America's toughest immigration laws were approved.

SB 10 70 makes it a state crime

to not have immigration papers and requires police to determine the status of someone

they stop if they think they're

here illegally. Critics say his

pan xwriks will be the only

ones targeted. At the road we

don't want to go down. I think

it's racist America has a

complicated relationship with Mexican immigrants. We no

longer going to clean this

country's homes, take care of this country's children and

take care of the elderly and

remain silent. We'll no locker

tolerate the abuse. The cheers

were just as loud on the other

side of the city where supporters of the law

rallied. I have nothing against

mex cabs Hispanics Latin

Americans, whatever you want to

call them. I do have a problem

with people who sneak into our

country And there's the man

dubbed America's toughest

sheriff. Which way is Mexico

here. Where's the border. It

would be that way or that way.

Nun you know that's a good

question. Here Iam adon't even

know how to get to Mexico. Joe

earned his stripes making

inmates wear pink underware to

emasculate them and housing

them in tents in a city where temperatures soar above 40

degrees and he's got Arizona's

illegal immigrants in his

sights blaming them for gang

violence, increased crime and drug trafficking. If you're

here illegally, you can be

arrested and put in my

jails. The law doesn't come

into effect for another two

months but Arizona's police

have been detaining illegal immigrants for years while police have been told not to make judgments based on

someone's race, Joe says this

new law gives them even more

power. Many people have left,

there's one statistic, I don't

think, is 100,000, I don't want

to take credit for that, but

they say I break up families

people are afraid to go to

church, people are afraid to go

to school. Because of the big

dad sheriff. So they are

leaving. Arizona is home to 6.5

million people, a third of whom

are Hispanic. Most have arrived

on work visas to take jobs in

hotels and lest rants, on farms

or construction sites but an

estimated half a million are

here illegally, either

outstaying their visas or

crossing the remote desert

border without them. This is

what so many of them come for

- I here by declare on

oath... American

citizenship. We are a stronger

nation because of what new

Americans bring to our

shores. This man arrived here

as a 6-year-old 24 years ago.

His parents had temporary work visas. A lot of them work jobs

that no-one else wants. I mean,

no-one wants to work at a

slaughter house cutting chicken

heads and stuff like that for

practically nothing. This

father of two might be pledging

allegiance to the flag near

Washington, but with his family

in Arizona, his heart is

aching. How can people justify,

like my son was born here, my

son is 7 or 10, when he walks

down the street just because he

looks like that they feel it's

justified to ask hem for his

naturalisation papers. If

someone's from India, Pakistan

or Africa, they don't go and do

that His mother came into the

US with a visa but admits going

illegal for a few years ab amnesty meant she eventually

became a permanent resident but

now she feels under as much

suspicion as anyone else. No

now the people are afraid of

going out on the streets. It's

not like other times when

people were going to the parks

and the stores. People are

fearful. The family doesn't

want to move interstate but her

son says that's an option,

others who don't have papers

are simply heading south.

TRANSLATION: One of the friends

that we have already went to Mexico.

Mexico. Other people are

waiting for immigration

reform. Cities like Los Angeles

and San Franciso are vowing to

boycott Arizona while other

States are considering copying

the laws. All of them agree

though that Washington's

failure to act on this growing

problem over the years has

caused this crisis. The

protesters have two months to

try to overturn the Lau the

law, the White House wants

Congress to consider overhauling national

immigration laws before the end

of the year but none's rush to

do it but because the opinion

polls suggest the majority of

Americans actually support

Arizona's tough approach. And

with the mid term elections

approaching, productivities

comes into play. The President

is concerned by the law and

there's speculation he's his

Justice department could

challenge it. In the meantime

he's sent 1,500 troops to the

border to relieve the pressure.

Ramping up the intensity of the

debate, the fact that the former Presidential candidate

John McCain is facing a

challenge as an Arizona

Senator. I don't want 13

million more here a few years

now because we didn't get the

border secured Sher the sheriff

was a target for the weekend was a target for the weekend

protesters but he has no

intention of backing down. They

may throw in their typical Nazi

Hitler signs that they carry

about me, that's OK, I'll be a little sad that they don't. He

may be determined but so are

the thousands who risk their

lives every year desperately

speaking the better life

promised over the border. You're watching ABC

News Breakfast, these are our

top stories today - Israel says

it will deport all foreign

nationals detand during an

Israeli operation to halt an

aid flotilla bound for Gaza.

Five Australians were among

those detained including a man

shot in the leg. Australia's

system of detaining aslyum

seekers who alive by boat is being challenged in the nation's highest nation's highest court. Lawyers

acting in four separate refugee

cases say it's unlawful to deny

boat arrivals the fall right to

a legal appeal. And West

Australian police have prepared

a second warrant for murder

suspect Cameron Mansell. Mr

Mansell was detained near

Townsville last week after a

nation wide man hunt by police

investigating the disappearance

of his former business partner

Craig Puddy. A magistrate has ruled the first

ruled the first warrant

invalaid. We're just hearing

word from Washington that the

US Government has just launched

a criminal probe into that

devastating oil spill in the

Gulf of Mexico. The

Attorney-General has just held

a media conference where he

said if they find evidence of illegal behaviour they'll be forceful in their forceful in their response.

This morning BP he vealed that

the cost of the oil spill is

now north of $1 billion. Now

he's one of the best known men

of science but until now

little's been known about the personal life of Charles

Darwin. Due for release if

Australia, 'Creation' is a film that

that shows the human side of

the father of

evolution. 'Creation' is an up

close and personal view of one

of the greatest scientists of all

all time. Charles Darwin's discoveries changed the world

view on the evolution of humans

and animals but they also

created a wedge between science

and religion. Theal mighty can

no longer claim to have

authored every species in under

a week. You've killed

god. 'Creation' was written by

Australian based screenwriter

John Collee. He was a softy and

he was deeply wounded by criticism, very sensitive, Darwin sensitive, Darwin visited

Australia during a five year

world sloi voyage and

scientists here celebrated his

discovers during last year's

celebration of the 150th

anniversary of his book 'On the

Origin of Species'. The film has been highly

anticipated. After the Darwin

year we thought we knew

everything about what he did

and the inevitable intrepid course but this guy is a human

being and he's living at a time being and he's living at a time when his ideas were really

really outrageous. Although

Darwin lived in Victorian

England, the filmmakers see

comparisons with today's

climate change scientists who

also fight the sceptics. This

scientists who are telling us

this have somehow become the Annemy because we just don't

want to know so in a way we're reliving that kind of conflict

that Darwin experienced. 'Creation' will

are be released nationally next

month. We'll take a look at the national papers and we're

joined now by Plain English

editor Andrew Pegler. Good

morning.. Good morning What's

Kwon on your list today? First

can cab off the rank would be

the pause by the Reserve Bank

in the interest rates. Stop

right there they've said

according to Glenn Stevens. The

reason which have been covered

are all to do with Europe

looking shakyier than Januariy

Cash in rehab at the moment,

the Chinese looking a little

bit jittery, softness in

commodity prices affecting us

and there was also a downturn

in building approvals. I think

the figure might have been

about 15%. All these sort of

things add up to them sitting

around munching oon the biscuits

biscuits and the tea and

deciding that the best thing to

do is to keep it on hold for a

bit The 'Age' is one papers

that had a special look at

that They have. The 'Age' as

most papers would have covered

it all very well but that's

good news for home buyers or

people with mortgages, I think

it's $50 a month for every $3

thunderstorm,000 mortgage, mind

you I doesn't do my plans for a

parity party any good. I bought

the champagne and that thes,

but we're not going to be going

ahead with that bun How long do

you reckon it will stay on

hold? Base - reading between

the lines as you often to do

with the Reserve Bank

statements possibly four or

five months. There was

increased speculation that the

next month could be down if the

Greek debt crisis worsens and

the prospect of a aggressive

mark two but I think mortgage

holders could be breathing a

sigh of relief until the end of

the year. Certainly July, they

won't raise it. It's good

news There's a story in the

'Australian' you're looking at

today as well? The Newspoll

have got out a poll out that

essentially seems to be

following the UK political

model a little bit in that

people are a little tire tofd

dominant two parties, it would

seem that the thesis being that

Bob Brown may be someone they

want to consider in the

preferred PM stakes. This is

analysis they've done the day

after the release of the Newspoll. That's right. Kevin

Rudd's satisfaction rating has

hit a new low of 18, but this

decline has not been matched by

Abbott who is also dropped by

12%. Now, according to this

piece by Peter, both leaders

are drowning and it's just a

matter of who can stand on

whose shoulders to gasp for

oxygen. He also points out interestingly that the Labor

Party are now going to go with

more of a team strategy because

the brand Rudd has been damaged

and they've got the depth of talent at the moment which the

Liberals probably don't have to

put themselves forward as that

team. How willing will Kevin

Rudd be to use Julia Gillard

though given the relative

popularity stakes of those

two The author does say he

reckons rudd will win narrowly

and will be rolled by Julia

soon after and who knows? He

also says that he thinks Joe

Hockey or Malcolm Turnbull will

roll Tony Abbott. It's

interesting, it's sort of

reassuring in a way, isn't it?

About polls, that even the most

independent analyst have said

we have a policy vacuum at the moment. Not much being achieved

or huge backflips by the Federal Government and on the other hand nothing from the

Opposition to fill in that gap

either and people have been able discern that and say,

"Forget it. If we don't even

have a strong targetment on one

side or the other, we're not

giving our impry mat your to you." They're adopting this

small ball strategy. He'll

release the policies close to

the election but I think it's

very much a days on pox of both

of your houses. The 'Sydney

Morning Herald' also a paper

you're looking at today? I

don't know this but the CSIRO

apparently came up with the

math mall matical equations

that led to the development of

wireless Internet and what they

call Wifi this drives lap top and routers.

We spoke to the scientist who

had actually come up with that

invention. Didn't he take out

the PM's science award. He did.

He got $300,000 for that they

stand to make what is regarded

as a lazy $1 billion from

lucrative patent claims in the

US. They've netted already $250

million through Dell, HP and

Microsoft and those guys who

settled out of court and now

they're going for the big flee

US mobile phone carriers who

they say are breaching the patent. I didn't know

Australian CSIRO more or less

invented wi-fi which is a great

thing. The next story that you

want to look at I frankly

tonight believe. I believe that

it happened but I reckon

tickets are doctorsed? This is

a sink hole. That is so photo

shopped. This sink hole is as a

result of the storm called

Agatha and this is in Guatemala

City. It formed an in the

northern part of the State has

swallowed a space larger than

the area of a street

intersection. It swallowed

three story buildings and a house

house and a security guard and

sink holes for those who don't

know exactly what happens,

basically rain or wash comes

along and sort of perk lats

upwards, usually it's a limestone structure That's not

photo shopped. That Pitt

there.. We didn't see the black

bottom. Show me the solid black

bottom. Go back to - there you

go. It's 60m deep. Forget it. Viewer feedback might get

us back on to that one but sink

holes there we go. I didn't

know what they were and now we

do and that's what they do It's

been a learning morning for you today Good to see you. Thank

you. And now to sports news and

all the latest on the Socceroos

triumph in South Africa here's

Paul Kennedy? Thank you. Yes,

not sure what we can read into

this one but the Socceroos have

beaten Denmark 1-nil in a

friendly in South Africa and it

was an interesting game, both

coaches have come out and

criticised the ball which is a

newly designed ball for this

World Cup. Josh Kennedy was

certainly - did well to slot

home the only goal of the game,

of course both teams are

heavily in training at the

moment so we're told we can't

take too much out of the result

but it seems to be a good one for Pim Verbeek and the

Socceroos on track for that

first game against Germany in

about ten days. And we'll take

a look at what happened at the

French Open last night. Roger

Federer is out of the French

Open. 23 grand slams he's gone

with reaching the semifinals

and the finals and this is the

first time in six years he hasn't reached the semis. Robin

Soderling beat Roger Federer in

four sets, Federer won the first set but then Soderling

who has a really big forehand

and a great wig serve, did the

job on the world number one,

just as he did on Rafael Nadal

last year so Soderling goes

through and Israel Folau's

defection to AFL is causing a

lot of debate this morning.

Most of the sports pages are

filled this morning with talk

of whether Israel Folau is

worth the money that's being

paid just like happened with

Karmichael Hunt last year, but

I suppose that is the point f

he's being paid this much money

and so many people are talking

about it, then the AFL is

getting their money's

worth. Particularly if you take

speckies like that, no

worries.. That is the great

promo for Israel Folau taking

those high marks and he'll have

to call them from now on Is there a break clause, what

happens if he's a dud? He's got

four years. You know who I

think will be the big

beneficiary of thaul is rugby

union because in four years

time they'll teach him how to

kick and if he's no good at AFL

he can go and play for the

Wallabies and be a multitalented rugby union

superstar and he'd still only

be 25 at that age but we will

talk in the next hour to a high

performance coach at greater

Western Sydney and find out how

they're going to train him U

need to be a player manager.

Vanessa O'Hanlon joins us with

the weather now and those storm

chasers are up to it again And

glad they are too. We have some

very dramatic footage of large

tornado as it hate the ground

in Colorado in the US. This storm travelled for about three

Hoares with hail the size of

tennis balls. Let's come back

home, not quite as dramatic, in

fact very quiet day for us. In Queensland cloudy over the

south with a few isolated

showers along the south-east

border. A few showers also in

the tropics, otherwise a fine


Thank you. Now some news to

share with you, that actually

came as a bit of a shock to

political watchers and also to

the friends of the couple. Al

and Tippy Gore have announced

that they're going separate

after 40 year of mark. In a

statement, the goers have told

associates that the decision

was a mutual and mutily

supportive one that they've

made together after a process of loong careful

consideration That was the big

kiss at the democratic

convention. The kiss. That woke

everyone up to the fact that

this was a very devoted couple.

One that has been best friends,

they met in high school and

married when they were both

very young. And Al Gore I think

he gave in that speech before

that long kiss at that

convention said that he'd been

in love with her ever since his high school prom and always interesting during the Clinton

year, the Gores were a picture

of martial harmony, stability

and love compared to the psycho

drama that the Bill and Hillary