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(generated from captions) new Queensland Senator Barnaby Joyce with one backbencher suggesting National Party tactics over Telstra, Several Liberal MPs let fly at of Federal Parliament. took control of both houses as the Howard Government and National parties today A spat erupted between the Liberal Felicity Davey with ABC News. Good evening. for Australia's speed attack. And another setback in Iraq. Australians facing renewed tensions hits fresh turbulence. The returning space shuttle but some loyalties still divided. Tonight - allegiance pledged, This program is captioned live.

in its workplace changes. Commission from the Industrial Relations to include new leave entitlements under increasing pressure The Federal Government is coming Jim Middleton, ABC News, Canberra. one way or another. would be accommodated $40 million a year, estimated at up to at regional universities, for student services that any shortfall in funding says he left the talks confident Nationals Senate leader Ron Boswell A fight. (Laughs) Minister Brendan Nelson today? in discussions with Education What was Senator Joyce expecting of compulsory student union fees. about the abolition National Party reservations as the government tries to overcome Brinkmanship's also on display on a sell-off. finalised its position that the government had not yet Mr Howard reminded his troops to see Telstra fully privatised, to the price he's prepared to pay that there's a limit Apparently signaling than Coalition unity. over the past decade to his government's success more important declaring that nothing had been warning about the cost of division, The PM also delivered a sharp for the government. provided an enormous opportunity that control of the Senate John Howard told his backbench of the new parliamentary session, Coalition party meeting At the first (All recite) So help me God. for a quarter of a century. government majority in the Senate as a member of the first Senator Joyce had been sworn in And that was even before telecommunications system. having a proper it's a matter of all Australians Nationals flexing their muscles, It's not just a matter of the and blackmail. between horse-trading Well, there's a very thin line on another planet. I think Barnaby must have been to oppose a full Telstra sale. for threatening to cross the floor to give Senator Joyce a kicking Liberal MPs decided at Labor's expense, But rather than kicking goals the best job we can. and trying to do the dressing room and, sort of, coming out of The game's started for the kick-off. Barnaby Joyce couldn't wait After months on the sideline, the government. was trying to "blackmail"

by 90 minutes. but the landing has been put off a fe minutes from now, 'Discovery' was due to touch down because of the weather. has been postponed again The landing of the space shuttle ABC News, Canberra. Craig McMurtrie, has yet to be spelt out. in the legislation and how exactly they'll be covered of minimum standards in the Government's shortlist ..but they aren't included The answer to the question is yes. and smoko's. public holidays, meal breaks as minimum conditions that the Government will include conference to a Queensland Nationals stood by his comments whether the Deputy PM The Opposition also wanted to know will be put to rest. and all of his concerns Opposition to wait until October I invite the leader of the is still months away. is proving difficult to draw up, but the complex legislation, which aren't extreme, and have fewer minimum conditions to simplify awards his proposed workplace changes John Howard says such a conservative proposal? how could you not at least consider and the BBQ-stopper, about work/life balance If you're concerned JEERS by some third party to do so... you're not conferred a right you ask for it. In a true flexible system the decision. that the Government's examining The PM will only say minimum standards legislation. if he doesn't put this in his absolutely no choice, There'll be no choice, John Howard holds the key to this. the decision of the IRC". say clear cut - "I support and your mealy-mouthed statements, Instead of your weasel-words unpaid parental leave. the right to ask for up to 2 years granting workers on federal awards Commission by the Industrial Relations in yesterday's decision the new entitlements that John Howard guarantee Kim Beazley's demanding CHEERING was cranking up the pressure. the Opposition leader Down the road at a union rally, biggest priority. is the Government's the industrial relations debate the PM declared that winning on parliament's first day back, In a pep talk to his troops the Prime Minister should guarantee. an option the Opposition says could be doubled - that unpaid parental leave Yesterday, the commission ruled

impossible they will get their wish to land the shuttle here in Florida at the Kennedy Space Center. at the Kennedy Space Center. They'll have to look much further afield at the Edwards Air Force base if California. What are the implications of that? A further delay but perhaps cost in delay but perhaps cost in retrieving the shuttle and bringing it back to its base? That's exactly right, Felicity. NASA doesn't want to have to land the shuttle in California. Even though the weather conditions there, we are told, are extremely good. The problem is as soon as good. The problem is as soon as they land it, they would have to load land it, they would have to load the shuttle on to a special jum bejet and fly it piggy-back style right across the country back here to Florida for their post-mission Florida for their post-mission tests and things like that. It's a and things like that. It's a process that would take time, take weeks that would take time, take weeks and cost millions and create more problems for a shuttle program that's already beset by delays. So, Mark, California is now morning. It now looks almost again for a second time this they'll have to postpone the landing they'll have to postpone the have come in from offshore and there have been storm clouds that few moments ago NASA announced that increasingly uncomfortable. Just a certainly becoming frustrating and an agonising wait, but it is head of NASA says that this is not head of NASA says that this is Well, that's right, Felicity. The wait for the crew of 'Discovery? Mark, it must be a nerve-wracking Mark Simkin joins us again. ABC North America correspondent in Florida has caused the delay. The chance of rain and thunder we get our feet on the ground today. SHUTTLE COMMANDER: We sure hope that for feet on the ground. and it's a day It's a day for sunshine just about says it all. and the wake-up music this morning Good morning, 'Discovery' MISSION CONTROL: good day, sunshine. # SONG: # Good day, sunshine, proved more hopeful than accurate. on board the shuttle to the seven astronauts NASA's wake-up music today looking the likely place for the shuttle to land. If that doesn't happen, how long can the shuttle remain in orbit? Yes, that's a remain in orbit? Yes, that's a good question. NASA says it is question. NASA says it is determined that the shuttle will land today.

But it doesn't have to. It's not a California or bust option. It has supplies for another day or two in space in orbit and after space in orbit and after that space in orbit and after that things start to get serious. There are other options. I think California other options. I think California is the most likely because of the weather there is good. New Mexico weather there is good. New Mexico is also an option. Although the last time they tried to land in New Mexico there was a sandstorm and they are still apparently picking they are still apparently picking up dust and dirt from the cracks between the tiles. So it's not the ideal situation, but I think California is looking the most likely situation in about four or five hours time. The end to a very prolonged, but hopefully soon to prolonged, but hopefully soon to end mission. Mark Simkin in Florida, thanks again. Formal negotiations are under way for the export of Australian uranium to China. The Foreign Affairs Minister Alexander Downer says the uranium will be sold on the basis that it's used for peaceful purposes and negotiations will include safeguards. China's leaders want to quadruple nuclear energy production. Meanwhile, there's growing unease over Iran's defiant move to restart work at a nuclear facility. The decision has heightened fears that Tehran may be seeking nuclear weapons. Workers wheeled out a barrel of uranium ore, or yellowcake, to restart the first stage of the nuclear fuel cycle. Excited technicians took photographs as the process got under way. UN inspectors have set up monitoring cameras, but the work began before they could be tested. They did this just after the inspectors had set up the cameras, but regrettably prior to the 24-hour testing period that we said we required. Iran says its nuclear program is only for peaceful purposes, but the move has set up a confrontation with the international community. The UN's nuclear watchdog will hold a crisis meeting later tonight and is expected to issue an ultimatum to suspend the work. Violence has erupted in the south of Iraq, in the city that's under the direct control of Australian forces. Riots and sporadic gun battles have rocked the city of Simawah for the past two days, sparked by residents demanding better services. Middle East correspondent Matt Brown. This is the capital of the province that 450 Australian troops are helping to secure. Simawah City, in Iraq's south, has been wracked by two days of violence. If the Australian troops stationed there are to be brought home, the province must be stable and the Iraqi forces they are training must be able to keep it that way. HUBBUB OF ANGRY VOICES A riot broke out over the weekend as locals protested outside the office of the governor, demanding his resignation and improved local services. GUNSHOTS Security forces opened fire on the crowd killing at least 1 and wounding around 40 others. The Defence Minister, Robert Hill, toured Simawah City in April. He met the governor who spoke then about the need to improve local services. We need to convince the international community that this is a safe and stable environment. The then commander of Australian forces in Iraq, Greg Evans, warned that local power struggles could spill over into violence in Simawah and that may be what's been happening in the past two days. Leaders of these militias tend to think like tribal leaders. They may try to assert personal control using their militias in that province. It is unclear whether the Iraqi forces being trained by the Australians played any role in the riot or the gun battles that followed. Matt Brown, ABC News. The latest report on the Iraqi oil-for-food scandal has further implicated a former head of the UN program. An independent committee headed by former US Federal Reserve chairman, Paul Volcker, has concluded Benon Sevan accepted nearly $200,000 in cash bribes. Mr Sevan and another UN official were suspended after an earlier report accused them of improper behaviour. UN Chief Kofi Annan has lifted the former director's immunity from prosecution. The UN has been under fire from critics over the oil-for-food program with claims millions of dollars were squandered through mismanagement. It's been an emotional day for six World War II veterans at a commemoration service in Papua New Guinea. It was held to honour fellow soldiers who died fighting Japanese troops in the battle of Milne Bay in 1942. The RAAF played an important role in the battle when Japanese soldiers attacked an Australian base on the eastern tip of the country. The service, which included the unveiling of a commemmorative plaque, was marked with a fly-past by two RAAF planes. It's been quite emotional, I have to admit that although I'm supposed to be a tough sort of fellow, it has been very strange going to some of these sites. The battle is considered to have been the first defeat of the Japanese land forces in the Pacific campaign. China's worst storms in decades have closed thousands of construction sites around Beijing and are threatening to flood the homes of 40,000 people north of the capital. Floods have already swept through northern and eastern China, causing landslides and damage estimated at hundreds of millions of dollars. Thousands of homes and farms were destroyed, and work on 6,000 construction sites in Beijing was stopped in case of building collapses. In southern Guangdong province, rescuers have warned that the number of miners trapped in a flooded coal mine could be double the 100 originally thought to be underground. Mine managers are said to have fled when millions of cubic metres of water flooded the mine. The Supreme Court trial of the man accused of murdering Sydney woman Kerry Whelan has been aborted just a day after it began. 52-year-old Bruce Burrell is charged with abducting and murdering Kerry Whelan eight years ago. Two jurors who were selected to sit on the jury told the the judge this morning they were unable to continue. A female juror became ill overnight, while a male juror was yesterday offered a job. Justice Graham Barr was extremely critical of the juror for not declaring he'd applied for a job and was waiting for a response. The the entire jury was discharged, another trial is expected to begin tomorrow. Morris Iemma's new ministry is complete. The elevation of three junior MPs to his Cabinet concludes a fortnight of factional deals and Labor Party bloodletting. The only question that remains is the future of Education Minister Carmel Tebbutt, who's trying to move to the Lower House seat of Marrickville. Labor Caucus without Bob Carr in charge. After 17 unbroken years it was Morris Iemma's show. There was even room for smiles as the left put aside its differences to formally offer John Watkins as his deputy. Well, what we've seen in the last week is normal for the Labor Party. I hope to bring to Morris some experience with senior portfolio positions. The Premier dodged questions about Carmel Tebbutt's future should the Education Minister fail to win the lower house seat of Marrickville. One step at a time. Carmel's going to be engaged in a very tough fight to win Marrickville. Less controversially MPs met to endorse what the factions had already decided, the names of the three new ministers in the Iemma Government. Former party General Secretary Eric Roozendaal is elevated to Ports and Waterways minister after just 13 months in parliament. Milton Orkopoulos gets the Aboriginal Affairs portfolio. Kogarah MP Cherie Burton goes back to her roots, becoming Housing Minister. It's amazing being a young girl growing up in a housing estate and then you become the Minister for Housing, you know I'm very overwhelmed. The family's beside themselves. John Brogden senses Labor has been damaged by the recent infighting. It's an absolute mess, and head office using its authority to deliver people like Eric Roozendaal into the ministry is just an example of how distant from democracy this whole change of leadership has been. The Opposition, for its part, is trying to put the focus back on the policies it hopes will return it to government at the next election. Today, it promised to improve nurses' training by increasing time spent in hospitals rather than the classroom. The scourge of petrol sniffing on remote Aboriginal communities in the Northern Territory continues to claim lives. The Territory coroner is investigating the deaths of three petrol sniffers including a 14-year-old boy and has heard how efforts to combat sniffing are failing because of a lack of ongoing funding. The inquest will examine the deaths of two men at this community near Uluru, in June and July last year. A 21-year-old long-time sniffer from Mutijulu suffocated over a petrol can and a 37-year-old man died while sniffing in a car at the same community. The Coroner will also consider the death of a 14-year-old first-time sniffer at the community of Willowra, three months earlier. The boy suffocated on petrol fumes after falling asleep with a bottle of fuel to his face and a blanket over his head. On the first day of the week-long inquest, Coroner Greg Cavanagh heard of the tragic toll petrol sniffing continues to wreak on remote communities. Mutijulu police officer Constable Michael Doutrum described how: Superintendent Michael White, from Alice Springs, told how a number of programs to stamp out petrol sniffing at Mutijulu had failed through a lack of ongoing commitment: ...and there was: ..to keep the initiative running. The Central Australian Youth Linkup Service will provide evidence later this week that petrol sniffing in the Territory has more than doubled in the past two years. We're hoping that the NT Government and possibly the Federal Government into combating petrol sniffing. will put more resources The inquest will continue at Mutijulu tomorrow, where evidence will be taken from family and friends of the victims of petrol sniffing. Jayne Stinson, ABC News, Alice Springs. The ban on Australian wool products in American department stores has been lifted after wool growers agreed to phase out the practice of mulesing. Several chains, including Abercrombie & Fitch, refused to stock Australian wool products because they believe the practice is cruel. But the group, People for the Ethical Treatment of Animals, PETA, says it will lift the boycott while negotiations continue with growers to phase out mulesing. To finance now - and the local sharemarket hit another record high today as oil prices soared. With the details, here's Alan Kohler. Oil is now trading in Singapore at around $66.50 a barrel - up 2% in a day. It's risen 12% in 12 trading days and 35% since the 23rd of May. Now add to that Woodside's decision yesterday to press on with the $5 billion Pluto gas field off Western Australia, and investors just get enough energy stocks at the moment. Woodside shares shot up another 4.5% today and BHP Billiton has closed above $20 for the first time ever. The banks and Telstra, however, were sold off, which is why the All Ordinaries index only went up a few points. They were following Wall Street, which went down last night because of the big jump in the oil price and because of expectations that the Federal Reserve Board will increase US interest rates when it meets tonight. Despite that, the US dollar fell a little today, so that the Australian currency rose against the greenback while falling against other currencies. And Asian markets were generally quite a bit stronger - stocks in Japan and Korea are trading at about 1% or so higher. The most significant profit report today was Wesfarmers, which showed a 9% improvement, and investors liked that. And today's economic news in Australia included the National Australia Bank Monthly Business Survey, which showed a sharpish deterioration in both trading conditions and confidence, plus housing finance, which was mixed - loans for owner occupiers down after steady increases over the past few months, while loans to investors bounced after a series of falls. But one of the most important influences on the economy at the moment takes us back to the start of tonight's report - oil. Here's a graph of average monthly assuming 35 litres a week. It's up 28% in six years, and that really eats into the budget. And that's finance. There's new hope for haemophiliacs after American researchers managed to cure the condition in dogs. Human trials of the ground-breaking therapy are now under way and two Australian patients are among those helping to overcome the final hurdles. These dogs represent what some doctors believe, is the future for treating haemophilia. Doctors from the Children's Hospital in Philadelphia have cured the disease in these animals. Now the same approach has been trialled on a small number of humans, including two Australians. When we started to use the higher doses, one of the subjects in particular had a good elevation of his protein level, to the point that he didn't require treatment with outside protein. Doctors take a gene which has been modified to encourage blood clotting. They inject it directly into the liver of the patient with haemophilia. Early studies showed the treatment worked well but it was only temporary, the liver rejecting the drug after several weeks. The researchers think they have the answer. They say giving patients a short course of drugs to suppress the immune system will allow the cells to take hold and start producing protein for the blood to clot. If the medicine does get into the liver and teach the liver cells how to make factor for a long period of time, it could have a tremendous benefit on the lives of patients with haemophilia. Australian haemophilia experts say the research could provide a long-term cure for the disease - though that still remains some years away. It needs to be safe for patients and it needs to be cost effective. But the outlook is positive. Doctors say these 4-legged subjects remain disease free five years after being treated. Sophie Scott, ABC News. Australia's dwindling fast bowling stocks have been bolstered for the third Test with the inclusion of NSW quick Stuart Clark. Clark has been called into the squad as cover for Brett Lee who's fighting a leg infection from an injury suffered in the first Test, and Glenn McGrath who's almost certain to miss his second test in a row due to an ankle injury. Here's Peter Wilkins. In a beaten side Brett Lee was back to his venomous best with ball and bat. And already had the infection before his defiant innings which almost steered Australia home. I don't know if he thought about his knee so much as his hand and his elbow from copping some of the battering that he received. Bumps and bruises might have been soothed by the post-match spa, but not the infection around the Lee knee which needed the clinical cleanliness of the hospital bed. Well we're optimistic he's going to be, but, of course, it depends on how the infection responds to the therapy he's been given and we'll go from there. Lee's absence would be another body blow to Australia's Ashes cause and selectors have reacted by including Blues paceman Stuart Clarke and are pondering the advantages of two spinners on a favourable Old Trafford wicket - a concept which has former England great Ian Botham on guard. What we must make sure is that we don't serve up a massive turner at Old Trafford after we've just got back into the series and then say to MacGill and the boys, "Warne, hear you are lads have a bit of this." From Australia's perspective the series winner will be the side which hits form with the bat. The course of the series probably will be determined by the batting side that begins to come to grips with how to play their opposition bowling teams and plans better. A tough schedule hasn't taken the edge off swimmer Libby Lenton. She set a new short-course world record for the 100m at the national titles in Melbourne, after competing at the long-course World Championships and the duel in the pool meet against the United States in the past 10 days. The 20-year-old still had enough in reserve to become the first woman to break 52 seconds. I kind of was hoping... Having arrived back on Thursday but, you know, very pleased with the result. One of Australia's greatest basketball exports is hoping a return to the NBL, will rekindle his passion for the game. Chris Anstey will play for the Melbourne Tigers after spending the past two years in Russia. It's fun playing basketball again and I think by coming back here, not only can my family be here in Melbourne, but I think I'll enjoy playing basketball a lot more and hopefully prolong my career. The former NBA player has made himself unavailable for international duties over the past two years, but, at just 30, is still in the sights of Boomers coach Brian Goorjian. Cate Blanchett has another trophy for the mantlepiece - a Helpmann award picked up last night for her work on the stage. But most accolades were heaped on South Australia's opera company for its heroic production of Richard Wagner's 'Ring Cycle'. They may not have the recognition of the Oscars, but even so, the frocks and photographers are beginning to crowd the red carpet at the annual Helpmann Awards, now in their fifth year. It helps to have an Oscar-winning star on the bill and Cate Blanchett obliged by winning the Best Actress Award. Not everyone found the Ibsen play compulsive viewing. Our son, for deciding to sleep through on the closing night, thank you. The entertainment industry gave its biggest ovation to the South Australian opera company. A $15 million production of the four operas which make up Wagner's 'Ring Cycle' scooped 10 awards. Another legend of the opera world, Dame Joan Sutherland, was honoured for a lifetime of achievement. And I really appreciate this great honour. David Williamson was also honoured for 40 years of prodigious play writing. The Best Play of the Year was written by an emerging Australian writer. Tony Briggs penned 'The Sapphires' for the Melbourne Theatre Company. Ladies and gentleman, it's show time! And as expected 'The Producers' was musical of the year... EXUBERANT MUSIC ..winning a total of five Helpmanns. David Spicer, ABC News, Sydney. To the weather - and another wintry blast on the way, Mike Bailey? But a different story today, Felicity. Good evening - yes, a vigorous cold front's forecast to bring snowfalls down to 600m on the southern and central ranges tomorrow night. Ahead of it, freshening nor-westerly winds and they helped take temperatures in Sydney today from 9 to 20 degrees, a top that's 2 above average. Now it's 16.3 average. In the south - fresher winds. Dry in Sydney today. Adelaide was the wetest today. Cloud well to the south of the continent brings cold air. Rain - southern half of the state. Strong wind warning - south of Woolie. Severe weather warning - alpine regions. Colder in the days ahead. Thanks, Mike - and that's ABC News this Tuesday night. I'm Felicity Davey. Join me for our next news update in an hour. 'Lateline' tonight is at 10:35. For now, good night. Captions by Captioning and Subtitling International.