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(generated from captions) students, drought-affected

farmers and single-income

families. Fifth, for small

business be will deliver a business be will deliver a 30

cent in every dollar investment

tax break for the immediate

period ahead. In this plan, we

are investing in the future,

and investing also to support

Australian jobs. Because of the

global recession, the

Government will go into

temporary deficit. Once the

gloek economy recovers, acts to

-- global economy recovers acts

to restore our Budget to

surplus, that's a responsible

course of action for the

nation. I recognise a temporary

deficit may not be popular.

That is the global reality we

face with virtually all

governments now in deficit. I

cannot remove the impact of the

global recession on Australian

jobs, but by Government action,

we can reduce it. I have

absolute confidence that this

strategy combined with a great underlying strengths of the

Australian economy and people will see our nation

listening. this crisis. I thank you for

Live. This Program is Captioned

Tonight - more cash for

families in a $42 billion stimulus, there is no guarantee

of success. We will throw

everything at this. Growth will

be stagnant and unemployment is

still heading up. I have not

the slightest intention of misleading the Australian

people on this. Relief for home

owners, interest rates down by

1 percentage point, and no-go

for Andrew Symonds, out of

Australia's next tour. Good evening, Juanita Phillips evening, Juanita Phillips with

ABC News. Yesterday he said

he'd move heaven and earth to

get the economy going, today the Prime Minister delivered on

his promise to the tune of $42

billion a short time ago Kevin

Rudd addressed the nation

announcing his second stimulus

package in four month, the main

aim to support 90,000 jobs. Nearly three-quarters of the

money will be invested in

schools, housing and roads,

there'll be $13 billion in cash

payments to families, low and

middle income earners,

underpinning the package -

reduced growth forecasts.

Unemployment could rise to 7%,

the Federal Budget as a result

will be in deficit for at least will be in deficit for at

four years, a total of $118

billion. As expected today billion. As expected today the

Reserve Bank cut interest rates

by 1 berge point to the lowest

level in nearly -- 1 percentage

point to the lowest level in

nearly #r50 years. We'll have

national and State reaction in

a moment. First Chris Uhlmann

takes us through a dramatic day

in Canberra. Two men united by

denomination, and divided by

belief. Modderation must be to belief. Modderation must be

all men. Nowhere was this a day

for restraint. A $42 billion nation-building and jobs

plan. This plan is backed by a

further decision by the Reserve further decision by

Bank Board to reduce rates by a

further basis 100 basis

points. To show that fiscal and

monetary policy levers are

pulled together to stop the economy crashing, the

Government picked the day

interest rates fell to 3.75%,

the lowest level in 40 years to

announce a massive increase in

public spending. Extraordinary

times demand extraordinary

measures. That, combined with

rapidly evaporating taxes adds

up to massive debt. $22.5

billion this financial year.

35.5 billion in the next,

across the four years of the

forward estimates, it's now

projected that the deficit will

total $118 billion. This is

not a question of choice. This

is what we are required to do.

The $22 billion deficit for

the year ended June 2009, is

mostly constituted by the 19

billion of extra billion of extra spending. Half

of the $42 billion is slated to

be spent in this calendar be spent in this calendar year.

Adrenaline hit equal to 2% of

all economic activity, 12.7

billion will come through cash

payments to individuals, to

keep the economy ticking until

28.8 billion in money 28.8 billion in money for

alternative is to do public works kicks in. The

nothing. Payments of $950 each

will begin flowing in March to

farmers facing hardship and

tertiary students and trainees,

single income families and low

and middle income families with

school-age children. The bulk school-age children. The

of the spending $8.2 billion

will arrive from April by way

of tax-office payments of up to

$950 to nearly 9 million

taxpayers. Today is a very

important day for the mums and

dads around Australia. The

largest part of the money for

building is 14.7 billion

allocated to improve and

refurbish every one of the

nation's 9,540 schools. 6.6

billion will be spent building

20,000 new public homes, 3.9

billion is slated to fund

payments of up to 1600 to

insulate nearly 3 million

homes, and 2.7 billion will be

spent on giving small

businesses a 30% tax deduction

on assets worth more than

$1,000. There is no guarantee

of success. But a lot is being

gambled on it. With the money

on the table the Prime Minister

has called Premiers and Chief

Ministers to Canberra on

Thursday to fast track the

delivery of his projects. He'll

be urging the States and

Territories to get a move on,

and start spending the money on

schools, roads and rail. Political correspondent Greg

Jennett reports on reaction to

these parents couldn't be the package. School is in, and

happier. It couldn't have come

at pa better time. With new

uniforms and that stuff, it's

great, it will help out. With a

$950 back to school bonus, the

stimulus package brings almost

instant relief to the families

of $2.8 million. I think he

did a good job by doing that. did a good job by doing

It will boost the economy. New

shoes and books aren't the only

changes, the injection of $14

billion into schools promises building and maintenance work

in every one of the country's

9,500 schools. Over 70% will 9,500 schools. Over 70% will be

allocated to public schools. As

the Government prepared to

release its release its packet.

ALL: Climate justice now. Environmentalists were

circling demanding it do more

on climate change, and it on climate change, and it did.

Almost $4 billion worth of

insulation Batts. I'm insulation Batts. I'm pleased

Mr Rudd focussed on insulation.

It's about time. I'll give this

a 6.5 out of 10. Infrastructure

will be scattered far and wide

on roads and rail. States and

territories aren't complaining. That stimulus,

whether it impacts on

consumption expenditure or

investment is something investment is something the

State Government

welcomes. Premiers and Chief

Ministers meted Kevin Rudd

Thursday, he's warning them not

to close their wallets as he

opens his. This package of

measures is designed to support

up to 90,000 jobs. With tax

incentives to invest and

billions to wash through the

economy, business is just as

upbeat. We believe this

combined with the monetary

easing, today's decision by

easing, today's decision by the

Reserve Bank will go a long way

to averting the to averting the worst aspects

of the economic downturn. Plenty of spending

targets are hit, there's

obvious miss, the trade union movement is disappointed that

training, income support and

the protection of entitlements

for the thousands who face

unemployment hasn't been

addressed - at least not yet. I

would be hopeful they'll be

addressed over the next couple

of months. Economic analysts

say it's not enough to ward off

recession, they are not worried

about the dive into the red. It

makes sense to throw makes sense to throw the

kitchen sink at the downturn,

it's a big one. Better than all

going down the gurgler. And

political correspondent Chris

Uhlmann joins me now from

Canberra this, is an enormous

amount of spending, is it

enough to keep Australia out of recession. The Government doesn't know the answer to

that. What it does know is with

all of this spending and a cash

rate set as low as it has rate set as low as it has been

in the last 40 years, that

unemployment will rise to 7% by

next year; that the growth rate

will be 1% this year, An

anaemic 0.75% next financial

year. Given these year. Given these forecasts

have been revised once already

before the Budget it's possible

they may be revised down wards

again, all the risk is on the downside. Where does it leave

the Opposition, do they have

any choice but to support the package. This is presented by

the Government as a national

security crisis, its package is

presented as the only answer,

anyone who questions it or anyone who questions it or part

of it is painted as a traitor.

We know from around the We know from around the world

there are different ways of

addressing these issues, it's

fair to question parts of this

package, it's an enormous

amount of public spending. It

requires a reasonable amount of

security, Malcolm Turnbull has

all his work in front of

him. Chris Uhlmann in Canberra,

thank you. As the Federal

Government was putting the

final touches on its stimulus package, the Reserve Bank was

doing its bit to boost the

economy. Official interest

rates were cut by 1 percentage

point. That takes them to their

lowest level since the 18960s, announcing the decision the --

1960s, announcing the decision

the banks board said Australia

was facing the weakest global

economy in years. It's been 40

years since home mortgage rates

were this lowle Rocket Rod Laver dominated world Laver dominated world tennis,

Holden Kingswood were all the

rage. The Reserve Bank cut the

cash rate a full 1 percentage

point to 3 boy 25%. Meaning the

standard variable home mortgage

rate is back to where it was in

the '50s and '60s. After five

years of renting first home

buyers like Casey Rawson, and

her young family can't believe

their good fortune. With

everything coming along it's

made things easier, we realise

that we are in a position that

we can afford the repayments on

a mortgage. Those with an

average home Lon of $300,000

will save more than $180 a

month. Today's rate relief

coming courtesy of a Reserve

Bank worried about a serious global downturn and impact on

Australia. There are signs of

concern about the further

deterioration in the global

economic environment and

slowing in Chinese economic

expansion in the last three month, the bank makes note of

those two factors. It took

account of the Government

stimulus package saying the

package and lower interest

rates should help cushion the

blow. The blow has been harder

on businesses given less

interest rate relief than home borrowers. If interest rates

were lower, it would give us

breathing space to look at the business in a different light. Early signs look good,

Westpac leading the way,

passesing on the full 1

percentage point cut to home

and business borrowers.

Economists say the Reserve Bank

isn't done cutting interest

rates just yet. And the ANZ has

just announced that it's joined

Westpac in passing on the full

1% point cut to home borrowers. The NSW Government says The NSW Government says it

will base its response to the

economic crisis on the results

of an industry summit held

later this month. The Opposition has slammed Opposition has slammed the

summit as a talkfest with the

Premier saying it will provide

an overarching plan for the

state. The Premier emerged from

the year's first Cabinet

meeting with a plan to come up

with a plan. Emented I want

everyone signed on to the

package. He's invited business

summit at Parliament House in and community leaders to a

three weeks to find ways to

save jobs in NSW. The Property Council has already

RSVPed. Three things - reverse

the Government's big increases

in land tax on

in land tax on business

announced in the mini-Budget.

Invest in the infrastructure we

need and cut away blockages in

planning in NSW. The Opposition

isn't invited and blooes it's a

waste of time. I don't need to

sit through a two-day talkfest

with Nathan Rees chairing it with Nathan Rees chairing it to

know what's right for know what's right for NSW. He

want to cut payroll tax. The

Premier knocked it back before,

but didn't rule it but didn't rule it out. We'll

deal with the situation on the best possible deal with the situation based

advice. Those on the front

advice. Those on the front line

of the financial battle have

plenty of advice. Get more

housing and more work. And some

big ideas too. Get rid of State

Government, both parties. Look

at the money you save. The

Premier's counsel to people

struggling runs counter to the struggling runs counter to

Prime Minister's entreaty to

keep spending. It's a difficult

period. People need to make

sure they are keeping an eye on

expenditure. The Government

says it is updating its

forecasts for economic growth

in New South Wales, but they

are not expected to be good

given these are what the

Premier described as difficult

and stark times since the

depression. Mr Rees began to consider the word consider the word "recession",

that is a possibility

everywhere. Some say it's a

reality. And Premier Nathan

Rees is with me now. Premier,

what do you need a summit for,

why not get on with it and make

the tough decisions To be

frank, we are in a war on

unemployment, and the Prime

Minister has nailed the

response nationally, we have a

global recession that we need

to deal with, and I want

everyone, industry, labour

figures, and academics and

other experts on board for our

plan to protect jobs, families

in NSW. It's a war on

unemployment, and we need to

make sure that our policies are

aligned with the needs of

industry, and the strategic

locations of where jobs will be

protected. Let's talk about protected. Let's talk

Kevin Rudd's new stimulus package. Are you disappointed

there wasn't more in it for one

of your big problem areas

public transport. Not at all.

$42 billion is an extraordinary

injection by any measure, he

has shown courage and character has shown courage and

in the face of what is an

unprecedented crisis

internationally, I applaud him

for that. $42 billion, an

extraordinary injection of

funds into schools, roads, re

knewable energy and green-type

initiatives and tax breaks for

small businesses and direct

cash assistance for families,

this is good news, but a global

recession, and as I said to him

last week, we are prepared to

stand shoulder to shoulder with the Federal Government and do

what we need to do to protect

families and jobs. We heard in Emma's report you are urging

people to be careful with

money, Kevin Rudd tells us to

spend. What do we do. Kevin

Rudd has more louvres, Rudd has more louvres, the

Reserve Bank and the interest

rate drop is the biggest

louvre, it's good to see a

couple of the banks passing it

on, that's the best assistance

households get. Save or spend. Spend. Nathan Rees, spend. Spend. Nathan

thanks for your time. The

impact of the crisis on China

became clear with a senior

official saying 20 million

rural workers have lost their

jobs, the admission came as

China's Premier Wen Jiabao is

in Europe talking up the

prospects of economic recovery,

the ABC's China the ABC's China correspondent

Stephen McDonell. Until

recently around 130 million

Chinese rural workers would

head to industrial cities, work

in manufacturing, sending in manufacturing, sending money

back to their families, a

senior Government official put

a number on how many lost their jobs.

TRANSLATION: 15.3% of 130

million, roughly 20 million

rural workers have gone back to

their home towns because they

have lost their jobs. Thousands

of factory closures followed a

collapse in international

demand for Chinese goods. In

London Premier Wen Jiabao was still talking up the potential

for China to lead the way to recovery.

TRANSLATION: If Chinese

economy can maintain steady and

fast development, it will be

the biggest contribution to the

whole world in the face of such

a financial crisis. At

Cambridge university protester

threw a shoe at Premier Wen

referring to him as a dictator.

At home he has bigger problems,

the Government is worried about

the social instability that

unemployment could bring. China

is hanging on to 6.8% economic

growth, a figure most

governments can only dream off.

The Chinese Government needs

economic expansion more than

most, its legitimacy rests on

it. With millions of rural

workers out of a job, towns and

villages are losing their main

source of income. The first

Australian to be convicted of

leading a terrorist group has

been sentenced to 15 years in

jail. Abdul Nacer Benbrika led

a home-grown cell that planned

a series of attacks on Melbourne. The Supreme Court

heard the men posed a threat to the community's the community's safety. Justice Bernard Bongiorno took two

hours to sentence the terrorist

leader and his followers,

security was toughen ed up security was toughen ed up for

the court appearance, it passed

without incident. The men

barely reacting when they

learned their fate. 48-year-old Algerian Algerian immigrant Abdul Nacer

Benbrika will be 60 before he's

eligible for parole. Sentenced

to 15 years, a minimum of 12.

Six other men convicted of

being members of the group

received minimum jail terms

between 10 and 4.5 years. The

court heard Abdul Nacer

Benbrika holdities followers

thattist lame -- told his

followers that Islam demanded a

violent struggle Abdul Nacer

Benbrika shared that belief to

varying degrees. The trial

heard the men never had an

advance plan for an advance plan for an attack.

Justice Bernard Bongiorno said

he disregarded evidence from an

unreliable witness, Izzydeen

Atik, a member of the group claiming that Abdul Nacer

Benbrika said the MCG was a

target. He told the men even

though an attack didn't though an attack didn't happen,

their crimes were serious. The

existence of the Jemaah as a

terrorist organisation

constituted a significant

threat that a terrorist act would be

would be or would have by now would be or would have by

been committed in Melbourne. The judge said four Melbourne. The judge

of the men, of the men, including Abdul

Nacer Benbrika, never remounsed

or moderated their views, or moderated their views, and

Abdul Nacer Benbrika once said

if the brother were arrested

the group would continue in

jail. The men served 3 years in

jail, the youngest eligible for

release in 18 months. Tonight's top story, top story, the Prime Minister

Kevin Rudd has announced a 42

billion stimulus package billion stimulus package for

the Australian economy.

Two Australian soldiers have

been wounded in a roadside ball

attack in Southern attack in Southern Afghanistan.

They were conducting a They were conducting a patrol

last Friday when their

Bushmaster vehicle was hit by a

bomb. They were evac ud by

helicopter to a nearby

hospital, both men are in a

stable condition, one soldier

will be flown to Germany for

specialist treatment. A sniffer

dog was also injured in the

blast. Fears over Iran's

nuclear ambition s have been

fuelled with the launch of an Iranian-made satellite. State

television said the satellite

is designed for research and

telecommunications. It will be

in orbit for between one and

three months, the launch taking

place as the county marks the

30th anniversary of the 1979

Islamic revolution. You know

the economy is really going

downhill when lawyers start to

feel the pinch the the state's

highest judge called on lawyers

not to be greedy and keep a lid

on charges. Chief Justice Jim

Spigelman used last night's Law

Society in Sydney to warn the profession that it faces tough

times ahead. It's an economic

downturn which the NSW Chief

Justice says will shift

tectonic plates and lead to

social tremors and quakes,

lawyers have to change the way

they do business. The legal

profession is in danger of

killing the goose. He says

judges are doing their bit, but

too often legal costs are disproportionate to the

outcome. If the profession is

too greedy it will end up with

less and in some fields with

nothing. We are great advocates nothing. We are great

in the Law Society of mediation

and arbitration to get things

through quickly without lengthy

litigation. The The Chief

Justice says more can be done

including greater use of

telephone and electronic

drengss hearing, cooperation on

expert -- directions expert -- directions hearings,

cooperation on expert evidence,

and cut in trial. Hoping that a

smoking gun may exist is not

worth the cost involved. It's

all very well to rush a case

through. If the consumer through. If the consumer feels

they are not getting court air,

there'll be another series of

complaints. The lawyers

watchdog said the Chief

Justice's remarks are Justice's remarks are timely. I

don't believe that people are

getting the access to justice

that they deserve. I think that

greed is a real problem in any

business, but in the legal

profession, it's fatal. The

office of the legal services

commission settled more than

1300 complaints over costs last

year, and in the majority of

cases lawyers had to reduce the

fees they charged their

clients. But Steve Marks says

in tougher economic times,

lawyers are becoming less

willing to reduce their bills

to settle a dispute. In finance

news the local share market

closed steady today and the

Australian dollar rose after

the twin boosts of the Government's stimulus package

and the rate cut. Here is Alan

Kohler. The share market

rallied hard in the morning

after it was learnt the Prime

Minister was going to announce

a big a big fiscal package at

lunchtime. After the package

came out it started falling, it

was classic buy on the rumour

sell on the fact. The rate cut

at 2:30 was less than many

expected, it made no expected, it made no difference

to the decline. The All Ords

finishing steady on the day.

The dollar was a similar story,

falling at 12:po, rallying at

2:30. Some thought the rate cut 2:30. Some thought the rate cut

would be bigger, about 1am the

dollar hit a low of 62.5 US

cent. The greenback continued cent. The greenback continued a

weird safe haven rally. The

dollar ended up higher dollar ended up higher against

everything but the euro which

had a bit of a resurgence

against the US dollar.

Short-term measures in the

fiscal package are fine, this

is what the Reserve Bank is on

about, 5.85%, the lowest rate

if all banks pass on the rate

cut. It can't be guaranteed. It

seems like yesterday it was

over 9%, and petrol $1.50. That

will kick-start the economy.

Back to the share markets, we

found why Qantas crunched 6.5%

yesterday. They are about to

announce a capital raising,

somebody found out about it

yesterday, it's called insider

trade, isn't it. Westfield

announce ed a big capital

raising, they went up

yesterday, they'll go down

tomorrow. There were big differences between other

stocks, banks rallying stocks, banks rallying strongly

in the morning before the

fiscal package and the rate cut

and faded in the afternoon,

Fairfax fell 10%, Incitec Pivot

10% and Orica 10%. That's finance. Andrew Symonds finance. Andrew Symonds will have

have to spend more time in the

wilderness because of his

off-field behaviour. Cricket

Australia will not be

considering him for this's tour

of South Africa saying he --

this month's tour of South

Africa saying he needs more

time for rehabilitation. The

summer of cricket began in a

sea of optimism for Andrew

Symonds, ending in a quagmire

of discontent. Whilst he's disappointed he's not able to

be selected for be selected for the South

African tour, he's is grateful

he's a contracted Cricket

Australia player. Former captains registered their

doubts. If he was selected for

South Africa, it would be a gamble. Current players knew

the cite earia. He has to be

mentally right and physically

prepared. Andrew Symonds at his

best carried an X Factor

Australia needed and still

dom As a playing group everyone

and the public wants a fit and

healthy Andrew Symonds out

scoring runs for Australia. An

outburst on radio outburst on radio criticising

New Zealand's Brendan McCullum

forced Cricket Australia's hand

on top of an ill-conceived

finishing trip and a Brisbane

pub incident. We acknowledge

that there has been a couple of

setbacks in recent times, but

over all, the advice that we

are getting from those working

with Andrew is that he is

making good progress. He came

out and said I am not healed of

anything, I'm working with the

right people. I trust that

process. Andrew Symonds has to

undergo further psychological counselling before being

considered again. A series knee

injury to Brett Emerton clouded

the Socceroos one qualifying campaign. Bad campaign. Bad for him and us.

The midfielder has been at the

heart of most of Australia's

best performances over the last

11 years We don't have players

with the same qualtedy, that's

clear, we don't have a clear, we don't have a second

Brett Emerton. Cruciate

ligament damage sustained in

English club football could English club football could de

Brett Emerton out for nine

months, Vince Grella will months, Vince Grella will be

available to play Japan, and

could be joined by Scott Chipperfield and Harry

Kewell. I have to be 100% sure

they can play 90 minutes. In

tough economic times it's tough economic times it's pie

in the sky but the country's

peak Olympic and Paralympic

bodies are highlighting a need for increases in Federal sport

funding, at a high performance

planning forum the committee

announced a push for $100

million a year extra including

1,500 increase in financial

help for winter sports arguing Australia's international

competitiveness is on the

line. They decide to continue

to support Olympic and

Paralympic sport, to continue

to give athletes an opportunity

to excel internationally, or

they don't. We then firmly

believe that the decline will

continue. A sports funding plan

is expected to be in the

Government's hands by the end

of the month. Checking the

weather - severe thunderstorms

around. It's been an active

afternoon, the severe

thunderstorm warning is current

for the slopes and ranges

anywhere south of Nowrabi and

north of Tumbarumba. There was

a downpour west of the Yass.

Temperatures in Sydney ranging

from 28-35, dropping behind a

southerly, looks good for

showers overnight. We expect to

see them clear quickly

tomorrow. Light showers about the North Coast through the

day. That trough over the

inland triggering isolated

thunderstorms along the slopes

and ranges, including the and ranges, including the ACT.

Chifley Dam and Chifley Dam and Oberon

receiving 30-plus millimetres,

the remainder of the state dry,

44 at Ivanhoe its ninth

consecutive day above 42

degrees. The trough producing

decent isolated good falls,

isolated and generally today's falls have been more

lying. The flooding rains eased

in the Queensland tropics, 36mm

in Townsville. Adelaide had a

brief reprieve from the strex

heat. A cyclone watch is

current between Kalumbaroo, and

Broome in the west. A low

moving off the coast forming a

cyclone Thursdayment the trough

active in NSW tomorrow, showers

and storms to the east. It will

weaken Thursday with a

southerly change to the

southern half of the coast

Friday. Rainfall heaviest,

isolated storms tomorrow.

Isolated good falls, they'll

generally be very isolated.

Possible thunderstorm in

Canberra tomorrow. Showers for

the tropical cities and gusty

storms for Broome. Isolated

showers on the North Coast and

nearby ranges of NSW. Clearing

showers about the Central

Coast. Showers and

thunderstorms mostly about the

central and southern ranges,

and also possible along the

slopes in south coast. It will

be dry elsewhere, hot

conditions over the inland.

Looking at an early shower in

the city, partly cloudy. Winds

light.

No reprieve from the heat

over the weekend. Temperatures

pushing up to 42 degrees for

both days, a cool ever change

so a significant cooler period

on the way. Tonight's top stories again, the stories again, the Government

is going on a 42 billion

spending spree to keep the

country out of recession, the

money going to schools,

families and businesses, the families and businesses,

Reserve Bank has announced an interest rate cut of 1

percentage point to the lowest

level in 50 years. And the

Federal Budget will go into

deficit this year by $22 billion. That's ABC News for

this Tuesday. I'll be back

with updates throughout the

evening. To catch up with the

overnight developments, don't forget 'ABC News Breakfast' on

ABC2. We'll leave you with pictures of record snowfalls in the United Kingdom. Goodnight.

Closed Captions by CSI

Tonight - a special program

for extraordinary times.

Welcome to the '7.30 Report'.

If you had any lingering doubts

about the seriousness of the

times we are living in, today

would have dispelled them. The

big interest rate cut, another

1 percentage point means the

rate has come down by 4

percentage points in the past

five month, the Prime Minister

announced another huge spending

package, his second in less

than four months in a desperate

bid to keep Australia out of

recession, in the protest Mr

Rudd was almost boasting about

the virtuous of turning a $22

billion Budget surplus

announced nine months ago into

a $22 billion deficit with a

$75 billion deficit for the

next financial year, only if

the global crisis doesn't get

worse - which it L we look at

the key elements of the Rudd

package, which is about