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Tonight - rising fears -

inflation is up. Will interest

rates be next? Most economists

now will be expecting a hike in

a fortnight's time. Walking,

not talking - the key Brimble

witness remains silent. Jail

but no life sentence for

Janelle Patton's killer. We

would have liked a longer

sentence. And water torture -

first the floods, then the big

dry. You're allowed two per

household. Good evening.

Juanita Phillips with ABC News.

First tonight, there has been

a major development in the

terror case involving Mohammed

Haneef. The Commonwealth

Director of Public Prosecutions

says he will personally review

all relevant material. He says

there are matters which have

developed since Haneef's

arrest, although he wouldn't be

specific. Mohammed Haneef has

been charged with recklessly

providing support to a terror

ist organisation. He has been

in custody in Brisbane for just

over three weeks. The DPP

proceedings late this announced his full review of

afternoon. I think it's a

positive move that the matter

will be looked at. I mean, I

can't make a, you know, a

judgment call on it because obviously the director will

have access to more material

than what I've had access to,

and, you know, I will respect

his findings in relation to the

matter. The Prime Minister

says the review has nothing to

do with the Government. The

prosecution is a matter for the

Director of Public Prosecutions

and the Federal Police. I have

been at some pains to make that

point over the past few days.

Haneef's legal team today

claimed that the prosecution

made an error in the wording of

the charge against him. His

defence lawyer, Peter Russo

said the charge made no mention

of any link between Haneef's

actions and the failed bombings

in London and Glasgow. It's

the last thing a Prime Minister under pressure needs in the

run-up to an election.

Economists are warning that interest rates are more likely

than not to go up again,

possibly within weeks. The

reason - inflation. The latest

figures out today show the cost

of living has been pushed up by

the rising price of petrol,

food and housing, and that may be enough to force the Reserve

Bank to put up interest rates.

There was trouble at mill as

John Howard campaigned at a

Perth construction site today

and not just from bolshie

building workers. How are

you? I'm well, mate. I don't

want to shake your hand, mate.

That's alright. Take

everything off us. Howard has

to go! The Prime Minister has

got no intention of going, but

his bid for a fifth term may

just have been made that much

harder. Inflation is on the

rise again, up a

greater-than-expected 1.2% in

the June quarter, courtesy of

higher food prices as well as

petrol, rent, and the cost of

buying a house. More importantly, the Reserve Bank's

measure of core inflation

remains un comfortably close to

3% at the top of the bank's

target zone. Most economists

now will be expecting a hike in

a fortnight's time. Families

are finding it difficult enough

to make ends meet, to pay these

increased prices without the

prospect of a an interest

rates rise. Mr Howard is

talking down the need for a

rate rise this close to the

level of interest rates is a election. The question of the

matter for the Reserve Bank,

but the inflation rate is well

within the band. For a prime

minister who campaigned in

2004, pledging to keep interest

rates low, a rate rise this

close to the election would be

a serious blow indeed, under

mining his efforts to hole the

high ground on economic

credibility from Kevin Rudd's

assault. And today the Opposition Leader sprang a

surprise, putting the Republic

back on the agenda, pledging a

new referendum. The time will

come before too much longer

when we do have an Australian

as our Head of State.

Tomorrow is the Prime

Minister's 68th birthday which

he will celebrate in East

Timor. No, Johnny, no. No,

Johnny! Where Australian

troops are certain to give him

a kinder reception than he

received today. At the Diane

Brimble inquest, the last man

of interest has exercised his

right to remain silent. Mark

Wilhelm wasn't talking today,

but he was heard in secretly

taped phone conversations aired

in court. In them, he blames

Mrs Brimble for taking the date

rape drug that killed her on

board the Pacific sky cruise

ship. Since day one, he has

been billed as the star

witness, but when Mark Wilhelm

finally fronted the coroner

today, he chose to exercise his

right to silence. Speaking

volumes, however, were

intercepted telephone

conversations between the eight


Wilhelm has previously

admitted he had sex with the

mother of three before she died

on his cabin floor, and he

allegedly gave her fantasy, the

drug that killed her. He told

a friend:

Peter Pan tick, the man who

allegedly took photos of Mrs

Brimble is agrees.

Ryan Kuchel comes up with a

way of getting his own back,

saying they should sue the

media. Letterio Silvestri has

a better idea.

Yet again today, the inquest

was delayed. The appearance

of Mark Wilhelm attracted so

much attention, there wasn't

enough room in the court for

media and members of the

public. Counsel Assisting the

coroner said the situation was

disgraceful and insisted a

bigger court would have to be

found. Later in a District

Court room, the coroner refused

a request by Wilhelm's

barrister to terminate the

inquest and refer the case to the Director of Public

Prosecutions, but the man

himself believes he has done

nothing wrong.

The coroner is expected to

wind up the long-running

inquest by the end of the week.

An unspeakably cruel crime -

that's how the judge described

it today when jailing a New

Zealand man for killing Janelle

Patton on Norfolk Island five

years ago. Glenn McNeill

escaped a life sentence, but

will serve a minimum 18 years

behind bars. It was a Sydney

court, not Norfolk Island,

where the Patton family came to

hear justice delivered. Their

daughter, 29-year-old Janelle

Patton, was murdered on the

Pacific island in a violent and

prolonged attack, suffering 64

separate injuries. She had

desperately tried to fight off

her attacker. Today Glenn

McNeill sat quietly in the

court as the judge described

his crime as an appalling

attack upon a defenceless young

woman, committed in

circumstances of unspeakable

cruelty. Justice Mark

Weinberg sentenced McNeill to a

minimum of 18 years in jail.

We would have liked a longer

sentence, but we are Janelle's

parents and I don't think any

parents would be satisfied with

any length of time. Shelley

Hooper, McNeill's partner and

mother of their two children,

left the court holding back

tears. The judge said one of

the grounds for not sentencing

Glenn McNeill to life in prison

was that he could find no

evidence of any planning or

premeditation on McNeill's

part. McNeill's solicitor

says his client is disappointed

and will appeal both the jury's

verdict and the severity of the sentence. We understand that

the appeal may be heard in

November or December, but it

will be filed next week. We

just hope that any appeal is

unsuccessful. Today marks the

final chapter in Norfolk

Island's first murder trial in

150 years. For now, Glenn

McNeill is in protective

custody in Sydney's Parklea

prison. He is eligible for

release in 2024 on the condition he never returns to

Norfolk Island. The former

Aboriginal a fares Minister

Milton Orkopoulos is to stand

trial on more than 50 child sex

and drugs charges. Today seven

charges were removed and five

new ones laid, including sexual

assault without consent.

Orkopoulos has waived his right

to a committal hearing. He is

due to face the Newcastle

District Court next week. The Prime Minister's takeover of

the Murray-Darling River system

will be settled in the High Court. Victoria's Premier

Steve Bracks has vowed to

challenge John Howard's move

towards national control of

water in the basin, but legal

commentators believe the State

will struggle to win. Steve

Bracks may have been swamped by

a John Howard's grab for

control on water, but he is

reaching for a lifeline. This

will be a matter which will be

tested obviously through the

courts. We will vigorously

defend our position. That

means a High court challenge.

The High Court will uphold Commonwealth power in the area.

It's just a question of It's

about time the Victorian

Government thought of the

national interest. This is a

river system that flows across

State borders. With three

Labor states and the Territory

on the Prime Minister's side,

Kevin Rudd has been left in no

man's land, unable to declare

who he backs. I would urge

both parties back to the

negotiation ing table because

water is too important to play

party politics on. But Steve

Bracks is telling Kevin Rudd he

expects him to re-work the $10

billion package if he becomes

Prime Minister. I do believe

that the Federal Labor would

have an opportunity to

re-examine this if they happen

to be elected. Mr Bracks is

also convinceed that the

Commonwealth has a hidden

agenda to privatise water

allocations, an accusation John

Howard flatly rejects. That

is desperate, stupid, in

accurate and just totally

wrong. It's got nothing to do

with privatisation. In the

end, the political argument

will count for nothing. The

federal takeover will be

determined on a black and white

reading of the constitution by

the High Court's seven justices

and legal commentators will predict the Federal Government

will be on solid ground. So

long as the Federal Government

is cautious and careful in

drafting its laws, victory is

likely for its side. The

WorkChoices regime is seen as

willingness to favour federal

takeovers. It's been a tough

day for the Community Services

Minister Mal Brough, clashing

with both his State

counterparts and the pairnlts

of disabled children. Carers

confronted him at a meeting in

Sydney. They are angry about

delays in finalising a joint

funding agreement for

disability services, but Mr

Brough hit back when Queensland

Minister Warren Pitt became

involved. You have just told

a lie. That is a scurrilous

thing to say. Today's meeting

again failed to reach agreement

on funding. The talks are set

to resume in December. In

Britain, it's a case of water,

water everywhere, nor any drop

to drink. In the middle of the

worst floods in decades,

hundreds of thousands of people

have no running water. Their regular supplies have been

tainlted and now many of them

are relying on bottled water

brought in by emergency

services. Stand back a bit!

Scenes you wouldn't expect in

regional Britain. A city

inundated but without tap

water. At a car park in

Gloucester, hundreds of

residents fill supermarket

trolleys. You're allowed two

per household. The army

delivered 3 million bottles,

but many fear there is not

enough to go around. It's for

two families. We don't waste

a drop of water. This is the

first lot we've fetched. It

could be up to a fortnight

before normal supplies are

restored. Police urged

residents to remain calm.

Nearby, the town of Tewkesbury

has become an island.

Lifeboats navigate the streets,

steering clear of the treetops.

We don't know what's below

the water and we have to find a

way around town obviously.

Those without boats found more

unusual ways of getting home.

That's the only way? Well, it

has been so far. 90km from

London, the city of Oxford

braces for an emergency.

Floodwaters here are rising and

threaten the city's main

electricity substation.

We're really on a sticky wicket

because as we are pumping it

away, more water is just

flowing in. Some estimates

have put the cost of these

floods at more than $10 billion

and the British Government has

warned the emergency isn't over

yet. Fine weather has provided

a break for some of the towns

and cities affected by the

water, but severe flood

warnings remain in place and more rain is still to come. Australian soldiers in

Afghanistan have shot dead a

local man who defied orders to

stop at a roadblock. The

incident happened in Tarin Kowt

where the Defence Force says

there is a significant threat

from car bombs. A formal

investigation has begun, but

the Defence Department says the

soldiers acted within their

rules of engagement. A Greek court will decide tomorrow

whether to extradite the drugs

boss Tony Mokbel to face murder

charges in Melbourne. The

convicted drug dealer told the

judges today that an

extradition order would be like

sending him to face Adolf

Hitler. Outside the court,

Mokbel's lawyer claimed it

would be very difficult for the

41-year-old to get a fair trial

back in Australia . It's

probably impossible to get 12

impartial, independent

Victorians that can hear the

case against Tony. Mr Mokbel

will get a fair trial on his

return to Victoria, return to

Australia. He should face the charges which have been

presented before him. Mokbel

was sentenced to nine years in

jail on cocaine charges after

he skipped bail last year. An

international study has found

that babies born with HIV can

be saved by giving them drugs

even before they start to show

symptoms. The results of the

research was so clear cut, that

the trial was abandoned and the

doctors urged that their

findings be put into

practiceson possible. Babies

born aren't give anti-retro vie

ral drugs until they start to

show signs of illsness, but a

major study shows that freeting

infants before 3 months old can

increase their chances. A 7

a% increase in survival, so

much bigger chance of surviving

than the babies that didn't get

it immediately. Lead

researcher Dr Avy Violari

recruited almost 400 babies for

the trial. She said it

identifies the importance of

medicating babies with hu. IV

as early as possible. Once

identified, it could save a lot

of babies. Over half a million

babies are born with HIV around

the world every year. We were

very happy we were able to show

something and help the

scientific community to make

better decisions. The latest

anti-retroviral drugs are

proving more effective than

existing medications. The big

thing about them is there seems

to be less likelihood of

developing resistance and

tolerate them. Tonight's top

story: The Commonwealth

Director of Public Prosecutions has decided to personally

review the Mohammed Haneef

case. And still to come - a

dream price for a dream


The ferry crash that claimed

four lives in March has been

re- enacted on Sydney Harbour.

The team had to wait for calm conditions similar to those on

the night of the collision. A

small cruiser with 12 people on

board was underneath the bridge

when it was hit by a harbour

Cat. There has been debate

over how well lit the pleasure

cruiser was. Authorities will

use the re-enactment to help

identify the likely cause of

the crash. Police are yet to

decide if any charges should be

laid. The Premier has played

down talk of a looming battle

with bus drivers over the

introduction of the troubled

T-card ticketing system. The

secretary of the bus union said

yesterday that drivers are fed

up with trialing the T-card

because it breaks down so

often. The official

contradicted the Transport

Minister John Watkins who had

claimed there are no industrial

issues. A junior official who

might say there is a dispute

does not call into question

what the Minister said

yesterday. The Government

today quoted a more senior

union official who agreed there

was no dispute. The T-card has been in development for 10

years but Mr Iemma say it is

won't be rolled out until it

works flawlessly. To finance,

and traders are betting on an

interest rates in August and if

not there, almost certainly the

month after. Home borrowers

will have a nervous two-week

wait before the Reserve Bank

will make the call on interest

rates. Here is Phillip Lasker.

To move or not to move, that

is the question. Whether it is

nobler for the Reserve Bank to

Before today's shock result,

interest rates on interbank

cash futures suggested a 35%

chance of a rate rise next

month. Now it's 80%. As for

the chances of a move in

September, it went from less

than 50% to nearly 100%.

Today's numbers also con

firnled the stronger Australian

dollar hasn't yet delivered the

lower prices we might have

expected. The non-tradables

orange line shows prices for

services like education, health

and communications are fairly

flat. But the blue tradables

line, without petrol and fruit

and vegetables is moving up.

It represents many goods that

are imported, cloak clothing

and footwear and furniture.

The inflation numbers added to

concerns on the share market

which was already rattled by a

selloff on Wall Street due to

worries about America's

subprime mortgage sector.

Banks were in the firing line

because of the higher interest

rate threat. Macquarie also

suffered. Mining companies

didn't escape the fallout

either. There were stories

floating around that Wesfarmers

may change the structure of its

obvious for coals to make it

more attractive to all

shareholders. Those US housing shareholders. Those US housing

concerns spread to share

markets in Asia, but both Tokyo

and Hong Kong proved Moree

sillant than Wall Street or

Australia. All this hasn't

done the Australian dollar any

harm. It gained ground against

most currencies and hit a new

18-year peak. It's now worth

US 88.6 cents. That's finance.

St Vincent de Paul has been

reminded that charity begins at

home. It has been ordered to

reinstate two workers it sacked

unfairly. They were fired for

pairing up to complain about a

manager. It was deemed they

acted collectively to resolve a dispute. But the Industrial

Relations Commission ruled the

dismissals were harsh and

unjust. Thank God this decision went the way it did

because it affirms the rights

that should always be there.

It was a very unfortunate set

of circumstances. We're

looking forward now and how we

can remedy it and again meet

the expectations of the

commission. St Vincent de

Paul says it is now reviewing

its human resources policies.

From today, food and drink

outlets will be named and

shamed if they break the law.

It is day one of a new

government web page list ing

individuals and businesses.

They weren't making it in

Scotland. That's part of the

problem as well. So they were

bragging the labelling rules.

The food Authority also hopes

to event wlly list businesses

which get on-the-spot fines.

The end of an era in Australian

sport - Kevin Sheedy and

Essendon will part company at

the end of the season. They

had a record 27-year

partnership which included four

AFL premiership flags. The

quirkiness of Kevin Sheedy

contrasted the club's anguish

over the impending divorce.

Feeling alright? Not the best

day in my career. The

termination of Sheedy's un

broken 27-year reign had been

mutually discussed since

January. I've known all year.

I've done pretty well, don't

you think? With time pressures

to find a replacement, the

Bombers board actwide a heavy

heart. When you're talking

about a person who has had the

most profound impact on this

football club. It's probably

the right opportunity for

Essendon and Kevin Sheedy to

live without each other. Many

people don't get that

opportunity. I've been lucky

like that. Sheedy says he

will remain in the game and

didn't discount the possibility

of coaching Richmond where he

won three premierships as a

player. With Essendon sitting

just outside the eight, there

was no wallowing time for

Sheedy's unfinished epic.

We've got training coming up

today and we've got to prepare

for Adelaide. Tour de France

fans have been taken for

another ride with Kazakhstan's

Alexandre Vinokourov testing

positive for blood doping. The

test was recorded after his victory in the time trial last

weekend. He is the second

cyclist to test positive on

this year's Tour. Vinokourov

and his Astana team are now out

of the race. It has been a

good and bad day for cycling.

A good day because we've got

rid of a cheat and a bad day

because sigh cling as bad

publicity because of it.

Cadel Evans was second behind

Vinokourov in a time trial. Tour leader Michael Rasmussen

said administrative errors were

to blame for him missing some

out of competition drug tests

this year. I've had 14

anti-doping tests during the

Tour, and all results are

negative. Tonight's 16th

stage takes the riders through

the gruelling Pyrenees for the

last time. Former Socceroo

captain Craig Moore has become

the latest high-profile player

to join the A-League. Moore

has brought down the curtain on

his overseas career by choosing

to sign a two-year deal with

the Queensland Roar. Fitter

and stronger than what I've

ever been in my career and some

might argue that my best years

as a defender are to come.

Australia will be full of

confidence heading into November's netball

Championships after inflicting

a heavy defeat on New Zealand.

The Australians clinched the

Test series 2-1. Slick

passing and the superb shooting

of Catherine Cox helped the

home team to a 15-goal lead in

the third term. The

Australians held off a late

charge to continue their recent dominance of the current world

champions. A painting by Clifford Possum Tjapaltjarri

has Sydney Harboured the record

for - -- has smashed the

record for Aboriginal art. It

sold for $2.4 million at

auction last night. The

National Gallery in Canberra

snapped it up, saying it was

one of the most important works

of the 20th century. It was

standing room only. Hundreds

there to see it go under the

hammer, and it was over in

minutes. Third and final

call. It's an as ston

initialing result. Smashed

the record and the painting

well and truly deserved it.

Paid just under $40,000 for the

Clifford Possum paint ing under

15 years ago. I valued it at

about half a million dollars.

Mr Ebes says he bought to to

ensure it stayed in the

country. It is the night

watch of the Aboriginal art,

the Sistine chapel, whatever

you want to cull it, the

ultimate explanation of life as

the Aboriginal people knew it.

And now it will with the

National Gallery of Australia

the new owner. We're trying

to, in our 25th anniversary

year, buy significant work in

every area of our collecting,

and this is our major Indigenous Australian

acquisition. The painting

will go on display in Canberra.

Well, there' going to need a

pet detective to solve this

mystery. How did a dog stolen

from as in agent in New South

Wales end up in Darwin? It has

been a long road for Rusty.

Snatched from Woy Woy on the

Central Coast two months ago,

Rusty has turned up 3,000km

away. The pup and its owners

were identified by microchip.

How it got to the Northern

Territory, it isn't clear.

Judging by its paws, it looks

like he didn't walk to Darwin.

Hasn't got fleas and ticks,

but needs a good wash. He is

now heading back to a quieter

life in Woy Woy tonight. Sydney was noticeably warmer

today. The top was a very

pleasant 21 degrees, 3 above

the average. Right now:

The satellite picture shows

scattered cloud crossing

south-west WA, bringing a few

showers. High cloud is

crossing the south-east and cloud over northern New South

Wales and Queensland is

bringing some light showers.

On the synoptic chart, a trough

and a front moving across the

south-east, mild northerlies

for eastern New South Wales.

Rain tomorrow in the south-east

with heavy falls forecast for

north-east Victoria. Showers

in eastern Queensland and on

the west coast of WA. Showers

in most of the capital cities

tomorrow except for Brisbane and Darwin.

Tonight's top stories

again: The Commonwealth

Director of Public Prosecutions

says he will personally review

all of the material in the case

of alleged terrorism supporter

Mohammed Haneef. An un

expected rise in the inflation

rate has sparked fears of

another interest rate increase

as early as next month. And

the key person of interest at

the Diane Brimble inquest has

taken the stand and exercised

his right to remain silent.

And that is ABC nous -- and

that is ABC News for this

witness. The '7:30 Report' is

up next. At 10.30 'Lateline'

will have an interview with the

Prime Minister. Goodnight. Closed Captions by CSI

Tonight on the 7.30 Report -

no laughing matter, the down

side of nitrous oxide as an

anaesthetic. When you can't

breathe, it is a bit worrying.

You think, "I'm going to cark

it." After 160 years, has it

reached its use-by date. I

believe it is not safe to use

it as a routine. They've been

a great client of myself. You

don't get, you know, a 27-year

client that often. And the end

of an era - legendary AFL coach

Kevin Sheedy given the boot.

There is a fine line between

being insane and a genius and

sometimes he walks that fine



Welcome to the program and

first, today's un expectedly