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(generated from captions) This program is not subtitled This program is captioned live. Tonight - bowing to the inevitable. his asylum bill. John Howard scraps but this is the situation. I'm disappointed to ease the petrol price pain. The Government goes gas in a Baghdad attack. Four Australian soldiers injured to cease-fire - And from open fire will the Lebanon truce hold?

Juanita Phillips with ABC News. Good evening. instead of defeat. Retreat a humiliating loss in the Senate John Howard realised he was facing new asylum legislation. over his tough, a pragmatic Prime Minister So today, decided to abandon it. warned that the backdown Immigration Minister Amanda Vanstone to fight terrorism, could make it harder Australian politicians while Indonesia accused to asylum seekers. of signalling that the door is open large on high. The message to John Howard was writ the same at ground level, too - His problem was that it was just shoulders of Liberal Judith Troeth victory or defeat rested on the in the Senate. who held the decisive vote

Yes, I have made up my mind. This morning she met John Howard his offshore processing legislation. to confirm she would vote against to the inevitable. With that, the PM bowed The whole Bill is out, the numbers in the Senate I mean I accept that there aren't to pass it. his own ranks inflicted the defeat, The rebels in from fellow Liberals. despite sustained pressure they were being accused As late as this morning, against terrorism. of undermining the struggle very dangerous view They take a very, to achieve here of what we're trying terrorism is on the rise. given the fact that international if you know who's coming Of course in a more risky world, before they come and who they are protecting your country. you're in greater control of overnight discovery Amanda Vanstone also used the on Ashmore Reef of eight unauthorised arrivals to make a pointed observation. on the mainland Had these people arrived and had it been rejected and had they put in an asylum claim for years and years and years. they'd be able to stay is paying the price Labor says the PM protests for kow-towing to Indonesian to 42 Papuans. over the decision to grant asylum border protection. This was never about in the most callous way. It was about appeasing Indonesia

caught Indonesia on the hop. The PM's capitulation any information yet. I haven't received Jakarta expressed its regret This evening, that the legislation had failed, diplomatic consequences did not rule out further politicians of sending a signal and accused Australian that asylum-seekers were welcome. for the arrival of asylum-seekers, Australia is opening staying in Indonesia for many years. including those who have been Indonesia's reaction But Mr Howard says is a secondary consideration.

Jim Middleton, ABC News, Canberra. drivers $2,000 The Federal Government will pay from petrol to gas. to convert their cars to growing public anger It's made the offer in response over the high cost of fuel. could cut their fuel bills People who switch to LPG by around $30 a week. will cost taxpayers But subsidising the scheme more than a billion dollars. finding time to fit LPG tanks... Mechanic John Whyte is barely OK. between the phone calls. so far today We've taken seven bookings And that's just the start of it. 20 inquiries, There's also been another how much. just people wanting to know was about to become clear. The reason for the interest of $2,000 The Government will provide a grant to LPG for private use. to the cost of converting vehicles The money's available from today. once every three years Car owners can get the cash until 2014. the motorist to recoup the net cost It would take only four months for of a $2,500 conversion. an immediate $1,000 There'll also be a factory-fitted LPG car. for anyone who buys

to take the cash incentives Up to 230,000 people are expected in the first four years. it's not ready to meet the demand. The motoring industry admits

having enough qualified fitters The major concern is going to be and enough equipment. $1.3 billion The Government's spending to encourage the switch to gas. move off from petrol, But for those who can't or don't relief from record prices. his package offers only modest of ethanol-blended fuels, To lift the supply to $20,000 to fit new pumps. service-station owners will get up measures announced today. The PM must go further than the Green groups agree. for the future When it comes to energy security to solve the problem. it really isn't going on Middle East oil, To ease reliance $70 million Mr Howard's promising an extra to search for new supplies here.

Greg Jennett, ABC News, Canberra. have been injured Four Australian soldiers in a rocket attack in Baghdad in the Iraqi capital. on another violent day The Chief of Defence says

at long range. three rockets were fired security detachment, One landed near the Australian causing widespread damage. their barracks at the time. The injured Australians were in Air Chief Marshal Angus Houston says to hospital, all four soldiers were taken three were treated and released, more serious injuries. but a female soldier received to the head, She's got lacerations bruising and the like some internal injuries, as well. and obviously some shrapnel injuries

The Defence Chief says and she's stable. her condition isn't life threatening a number of vehicles. The blast also badly damaged After five weeks of fighting and more than 1,200 deaths, the guns have fallen silent in southern Lebanon. The UN-brokered cease-fire began four hours ago and so far both Israel and Hezbollah are holding to it. But as the ABC's Emma Griffiths reports from Jerusalem, the fighting was at its deadliest just before the truce deadline. Tens of thousands of Israeli troops will remain in South Lebanon but for these soldiers, returning from the battlefield with a Hezbollah flag as a souvenir, the cease-fire was still good news. Difficult, but... we won this war. Some Israeli troops were packing up... RIFLES CLICK ..but the army is under orders to stay alert in case Hezbollah breaks the truce. Until the moment the cease-fire was called, both sides were still trying to win the war. A day earlier, Hezbollah rockets caused more misery in northern Israel, killing one civilian and injuring several more. And Israel's expanded assault pushed around 30,000 soldiers into Lebanon, some reaching as far as the Litani River - the strategic goal of the campaign. (Speaks Hebrew) TRANSLATION: We are still fighting in order to reach positions which will guarantee protection for our forces and also promise the implementation of the agreement. Military chiefs say

they will still launch isolated missions to destroy Hezbollah weapons and that could take weeks. This is a shaky truce, at best. Many here believe Hezbollah will break it, and Israel still has the right to strike back in defence. One Israeli minister says if Hezbollah throws even a rock at Israel, then a Lebanese village will be flattened. Also still at stake is the fate of two Israeli soldiers. Their capture, last month, triggered this conflict. And their release has not yet been guaranteed. (Speaks Hebrew) TRANSLATION: Our Government will do everything within its power to bring about not only their release,

but also that of Gilad Shalit, who was kidnapped by Hamas. Israelis aren't sure if they've won this war, but they know what they've lost. More than 100 soldiers have died - about a quarter of them in the past two days. There are now questions about what their sacrifice has achieved. Emma Griffiths, ABC News, Jerusalem. After weeks of shattering bombardment, the people of southern Lebanon are slowly emerging to assess the damage to their homes and businesses. Israel's onslaught continued until just minutes before the truce came into force. The final day of fighting claimed the lives of 42 Lebanese and eight Israelis. Middle East correspondent David Hardaker reports from Beirut. No dancing in the streets of Beirut, but there were cars and people - for the first time in over a month - getting about their daily business. In the first hours after an end to hostilities, there was relief, but tinged with caution. In the early morning hours leading up to the official cease-fire, Israel continued to attack - bombs fell around the port city of Tyre. It followed a tough 24 hours where Israel had gone for broke. POPPING EXPLOSIONS The capital, Beirut, was rocked by 20 enormous explosions, all in the space of two minutes. The southern suburbs - where Hezbollah is strongest - were again the target. And it wasn't long before Israel's warplanes returned.

As you can see, the smoke is still rising above the southern suburbs of Beirut after another massive Israeli bombing raid. This one came just on sunset, and it is clearly part of Israel's strategy to use every available minute to pound Lebanon until the moment hostilities officially cease. A group of young men looks on at the devastation.

And on the car radio, the names of Lebanon's dead are announced. Around the country, the bombs rained down. With roads, bridges and buildings reduced to rubble, Lebanon's Government is now looking to rebuild. We hope that the international community will come with aid and mainly donation for Lebanon.

Aid has arrived and there are hopes a cease-fire will mean help can get to the tens of thousands in desperate need. But Lebanon's political future remains unclear. Sources in the Lebanese Government are saying Hezbollah is unwilling to disarm, and now, Lebanon's Government is facing its moment of truth - to make any cease-fire last. David Hardaker, ABC News, Beirut. ABC correspondent Emma Griffiths has been monitoring the cease-fire from Jerusalem. Emma, are both sides sticking to the agreement?

Juanita, at least for these first

few hours it appears that both

few hours it appears that both sides are sticking to it. The Israeli

military has begun to thin out its

presence in southern Lebanon, but

presence in southern Lebanon, but it could be days, perhaps a couple of

weeks before they withdraw.

Hezbollah is still well and truly

dug in in that area of southern

Lebanon, so while they're sticking

to it, this period is shaping up to

be very tense and very cautious

transition. Now regardless of what

has been signed, does the Lebanese

Government have the clout to stop

Hezbollah attacking Israel? This is

the real concern and the real

challenge for the Lebanese

Government. It had scheduled a

Cabinet meeting todous disarming

Hezbollah and even that has had to

be postponed. Hezbollah say it is

will not disarm, will not leave the

area and will reserve the right to

continue fighting as long as

Lebanese troops remain on their

soil. Israel has also had the

to crush resistance, so the soil. Israel has also had the right

potential for this truce to be

broken is very high and one

commentator here has said that as

this cease-fire began, so, too, did

the countdown for the next war in

Lebanon. How are the Israeli people

are feeling about this conflict,

they are seeing so many casualties are feeling about this conflict, how

and no sign of Hezbollah being

defeated? There are many questions

being asked of the Israeli

Government at the moment. The

public mood seems to have swung to

criticising the way this war was

carried out because many of its

Hezbollah stated aims have not been achieved

Hezbollah rockets did not stop and stated aims have not been achieved -

the two captured soldiers have not

been returned, so there are many

questions being asked of the

Prime Minister, Ehud Olmert and he questions being asked of the Israeli

is due to address the Knesset, the

Israeli Parliament in a few hours

from now, to explain why Israel has

agreed to this cease-fire. The the

Opposition Leader, Benjamin

Netanyahu will then address the

Knesset and explain how he believes

the Government has gone wrong.

Emma Griffiths a court Here, a State Labor MP has told as a minister that he was forced to quit he might cost the ALP because of fears a fourth term in government. the 'Sydney Morning Herald', Eddie Obeid is suing by an article claiming he was defamed published four years ago. was accused of soliciting a bribe The former Fisheries minister to get approval in return for helping at Liverpool. for the Oasis development that the then premier, Bob Carr, He's told the Supreme Court the day after Labor won a third term demanded he return to the backbench would continue to pursue him because of fears the newspaper over the allegations. by the article Mr Obeid says he was devastated would be so dirty and so vile. and he never realised politics to the Supreme Court The Attorney-General has gone being freed from jail. to try and stop a convicted murderer Maddison Crompton Hall Transgender prisoner is due for parole next week of a 22-year sentence. after serving 16 years of murdering Lyn Saunders In 1989, Crompton Hall was convicted as brutal and callous. in a shooting described killer is not ready for release. The victim's mother says her son's This is about my son. My son's dead eventually loses sight of the fact and I think that the system that this is about a murder.

will be made later this week. A decision on the appeal Police say they're at a loss

arson attacks to explain a series of dramatic on a shop in Sydney's south-west.

to help Today, they released security tapes

responsible. track down the four men through the front In May, a stolen car was driven and both were set on fire. of the Revesby fish and chip shop In an earlier attack, through the window of the same shop. a petrol bomb was thrown in their early 20s Detectives say the arsonists are or Mediterranean appearance. and of Middle Eastern For many older Australians they'll ever make. it's one of the biggest decisions village is not without risk. Buying a place in a retirement their life savings. especially for those who invest But soon, they'll be able to rest a little easier some protection with new laws offering if their new home goes bankrupt. the reforms are long overdue. For these retirees,

There'll be 50 changes at retirement villages, including yearly safety checks a 90-day cooling-off period secured creditors - and retirees will become so if a home goes bust, of their hard-earned money back. they can get some in which our ageing population, We want a fair and responsible way

which is growing, can keep into the future.

on excessive fees and charges. There'll also be a crackdown The Retirees Association says of the greatest reform, operating standards are in need of unscrupulous operators with a handful for some residents. making life a misery all the time. They're in a state of stress where they stand, They never know to happen to them next. they never know what's going for eight people And that's the case in Wahroonga, at this retirement home which went broke. are cold comfort for the retirees The reforms announced today who are still here in limbo. be retrospective The new laws will not for those residents and won't provide any protection up in the air. whose futures are still that are in trouble It's always the people that don't get the assistance - the people now they're gonna assist that are not in trouble. for today An eviction notice set down has been extended by a month, helps them find new accommodation. while the State Government Sydney. Adrian Raschella, ABC News, Tonight's top story - is dead. John Howard's asylum legislation And still to come - gets the big screen treatment. a murder mystery their search British police are widening bomb plot. for evidence of the transatlantic

north-west of London Investigators are combing woodlands the liquid explosives. looking for materials used to make the terror threat level Authorities have downgraded in the past few hours, from 'critical' to 'severe' but they've also revealed there's been a number of other terrorist plots transport system last year. since the bombing of the London

major plots have been thwarted. I can tell you that at least four I can tell you... to major loss of life. INTERVIEWER: Which would have led In my view, yes, on the information that I have received. Big delays and disruptions continue on flights out of the UK as stringent new security checks are enforced.

Supporters of Fidel Castro are hoping the pictures don't lie. Photos taken for his 80th birthday show the Cuban leader alive and well as he recovers from stomach surgery completed a fortnight ago. The pictures, in a state-run newspaper, are intended to put an end to speculation that Fidel Castro may be dead. But it was Raul Castro, the President's brother, who greeted Venezuelan leader Hugo Chavez on his Cuban visit. Qantas has been accused of using the Federal workplace laws to employ cut-price cabin crews for its Jetstar service.

The flight attendants' union says it's been left out of negotiations that would see wages cut by a quarter. Qantas is hiring hundreds of new flight attendants for its international Jetstar services on individual workplace agreements - on very different pay and conditions

to the majority of Qantas cabin crew. This is about doing the right thing fast, for the airline that gets us the right cost base. They'll be receiving about 25% less pay for working 60% more. The flight attendants' union says it wasn't consulted about the deal, which effectively caps crew salaries at $46,000. In Thailand, where crew are being locally recruited by a majority Qantas-owned company, the salaries are considerably lower still. How on earth do you think people feel when they see a CEO like Geoff Dixon around $7 million extra in salary adjustments? - extra! Jetstar says the aviation industry is a tough one

and its departure from collective bargaining to individual contracts, at lower pay, is in line with industry standards. This is a significant step in the airline's efforts to reduce the power of the 16 unions it's negotiated with in the past, and Qantas isn't ruling out introducing more individual agreements in the coming months. Former aviation executives say the changes are likely to affect a substantial number of Qantas and Jetstar employees. You're looking at all inputs to an airline, which have a substantial component of labour, whether it be ground handling or at check-in. Qantas says the Federal Government's new workplace laws will allow it to save on labour in an environment where the cost of fuel has soared to $4 billion a year and its profit has slumped. Philippa McDonald, ABC News. Hundreds of workers at the Cowra abattoir

in central New South Wales are facing an uncertain future after the meatworks was placed into voluntary administration today. Earlier this year, the abattoir's plans to restructure its work force was seen as a national test case in the new federal industrial laws. To finance now, and the oil price has slumped in Asian trading this afternoon

following today's cease-fire in Lebanon. Here's Alan Kohler. The price of Tapis crude fell 1.25% in Asian trading this afternoon. Since Wednesday, when speculators first started betting that there would be a cease-fire in Lebanon, the oil price has dropped more than 3.5%. And the gold price, which was also pushed higher by the fighting in the Middle East, has now fallen 4% since Wednesday. And on the share market today, Qantas shares recovered some of its recent losses because of the drop in the oil price, but it's also still 26% lower than it was in late February. Coles Myer produced one of the biggest gains

among the leaders today - up nearly 4%. Most of the banks went up today, except the Commonwealth Bank, which dropped another 2.5%. It has now fallen 5% since reporting an increase in profit and dividend last Wednesday. And Telstra shares also continued to slide closing $0.02, or 2.5%, lower today, after again touching a record low of 3.64% during the day. And while Commonwealth Bank shares are becoming more affordable, the Housing Affordability Index it produces with the Housing Industry Association shows that houses are much less affordable. The index fell 5.3% in the June quarter, and that was before the latest rate hike. Although, as this graph of housing affordability shows, it's been virtually steady for three years. having fallen sharply during the boom between 2000 and 2003, and thanks to rising interest rates, it hasn't recovered since then, despite flat property values and rising incomes. Finally, the Australian dollar has gone up a little against the US dollar since Friday, but eased against the euro. And that's finance. The Newcastle Knights' NRL premiership chances could be decided at the judiciary, after captain Andrew Johns was charged for swearing at a touch judge during Friday's game against Manly.

The contrary conduct charge carries a 3-match suspension

for an early guilty plea, meaning Johns would be ineligible to play

until the second week of the finals. If Johns challenges the charge and is found guilty, he'll be banned for four games.

The on-field outburst has had a further cost for the Knights.

Coach Michael Hagan was fined $5,000 for defending Johns.

The NRL said it can't tolerate coaches endorsing the abuse of match officials. In its match review report released tonight, the NRL found its officials had made an incorrect decision before the Johns' incident. Australia has appointed an old hand to lead the Socceroos in Wednesday's Asian Cup qualifier against Kuwait. Kevin Muscat will take charge in front of a sell-out crowd, anxious to see Australia in action for the first time since the World Cup. Here's Peter Wilkins. The wheel's turned full circle for the occasionally volatile Kevin Muscat. 13 years since the veteran defender pulled on Socceroo colours, Muscat will step out for Wednesday night's Asian Cup qualifier wearing the captain's armband. In his 46th international, the 33-year-old realises his experience will be vital to a Socceroos's side devoid of all its European-based talent. It's a massive challenge for us, you know, coming off the back of the World Cup and the success the team had there, and, you know, in term of personnel, this is a shadow of that side. But what of Kuwait? They're taking the game very seriously. They need to get a result. They're desperate, so it's going to be a very good game. The English season pipe-opener gave FA Cup holder Liverpool the chance to outpace the Premier League champion, Chelsea. John Arne Riise's dipping 30m shot for 1-0 was cancelled out when Frank Lampard chipped for Andriy Shevchenko's finesse.

Chelsea owner Roman Abramovich's celebrations were short-lived, as Craig Bellamy's control down the left set up the unmarked Peter Crouch for the match winner. The Community Shield - more booty for the Red's trophy cabinet.

It was a case of 'Oh, so close!' for Australian Golfer Richard Green in the Dutch Open. This shot was part of his remarkable comeback from eight shots behind after two rounds. Briton's Simon Dyson, with a late birdie, joined Green in a playoff and found the right stroke to win his second tournament of the year on the first hole of sudden death.

Nathan Green finished best of the Australians in Colorado, 5 points behind the winner, American Dean Wilson, who also won in a playoff, defeating Tom Lehmann for his first US PGA win after six victories in Japan. A new documentary could give police fresh insights into a real-life murder mystery.

Directed by Gillian Armstrong, the film tells the story of Sydney socialite and designer, Florence Broadhurst,

who was brutally killed in the 1970s. It not only tells her life story, but names two men who might have been responsible for her death. The flamboyant eastern suburbs entrepreneur and socialite - played in the documentary by actor Judi Farr - was 78 years old when she was murdered on 15 July 1977. There were six people who had a real motive, so, that says something about a life. Film-maker Gillian Armstrong and writer Catherine Thompson have pieced together the extraordinary life of a Queensland country girl who reinvented herself as a wealthy English artist - a persona that she got away with when she infiltrated Sydney's snobby social scene in the 1950s. She was so naughty and she had so many lives. But she was not a mere con woman. Late in her life, she started a highly successful career designing exotic wallpaper. While her murder was never solved, friends of Florence Broadhurst spoke out for the first time in the documentary. They pointed the finger at two Sydney wheeler-dealers - now both dead - whom they believe were responsible. There was a sense that it was really a hit job,

it was done to hush somebody up, and, so... and it worked because it hushed up all Sydney society. The New South Wales State Crime Command is reviewing the case. All the information we find out, we have passed onto the police, so, perhaps, perhaps, this mystery will finally be solved. While Florence Broadhurst is long gone, her artistry lives on. The wallpaper patterns are back in fashion and highly prized by international designers. Anne Maria Nicholson, ABC News. The weather now with Mike Bailey. Thanks, Juanita. Good evening. Dry to begin the week, but a change in the south tonight and another about Thursday will bring at least some patchy rain. Mostly sunny today in Sydney -

where temperatures went from 9-22 degrees, a top that's 4-above average. Cold in the west to start the day.

Right now 17.2, a couple above the average. Pressure is rising. -7 at Glen Innes was the lowest overnight. Casino had 25. Not much rain to talk about. Mostly dry in the main centres - a bit of rain in Adelaide. Snow will come to 1,700m on the Snowy Mountains but only in light falls. Isolated showers around the Central Coast and Hunter region

Chance of a shower late in the day for Sydney. Strong winds and possible storms in Perth.

Most of the state will remain dry tomorrow. Sydney will be partly cloudy but mainly fine. Tops of 20 for most of the west. Further outlook - change later in the week and falls likely in the inland. Thanks, Mike. And before we go, another look at the stories making the news tonight. John Howard has scuppered his controversial asylum bill, after the most serious backbench revolt since he came to power.

In Iraq,

four Australian soldiers have been injured in a rocket attack.

They were on patrol in Baghdad. And the UN-backed truce in Lebanon is holding.

Israel and Hezbollah have agreed to stop fighting to allow a multinational peacekeeping force to take control. And that's ABC News for this Monday, I'm Juanita Phillips. I'll be back with updates during the evening and 'Lateline' is along at 10:35. That'll be followed by the very first 'Lateline Business' with Ali Moore. Goodnight. Closed Captions produced by Captioning and Subtitling International Pty Ltd But first, domestic politics, and John Howard may well reflect