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Ten Early News -

View in ParlView

(generated from captions) This program is captioned live.

Hello. I'm Kathryn Robinson. And

I'm Frank Coletta. Welcome to Ten's

Early News. Making headlines today

- the Rudd Government hit by

another damaging Cabinet leak - its

credibility on petrol in tatters.

Nick D'Arcy's hopes of swimming at

the Beijing Olympics all disappear. the Beijing Olympics all but

The search continues for more

remains at a suspected World War I

burial site in northern France.

And the long-delayed -- long delay

pays off - Lleyton Hewitt leads an

Aussie charge into the second round

of the French Open.

Now for our first check of the Now for our first check of the

markets, it's fairly quiet on Wall

Street. It has been, Kath. Good

morning. Wall Street took a slide

financial sector. early amid renewed fears about the early amid renewed fears about the

Coming up - the controversial move

by Qantas to combat increased fuel

prices, Kath. Thank you, Frank.

The Rudd Government has been

damaged by another leak. It's been

revealed that Cabinet ignored advice from four Government

departments, warning that the FuelWatch scheme could result in

competition. higher petrol prices and less

As FuelWatch sprung another leak, the As FuelWatch sprung another leak,

the Government attempted to repair

the damage. It is true. There was

some bureaucratic advice. Against

FuelWatch. I don't believe that was

well-grounded. Four departments, well-grounded. Four departments,

including the Prime Minister's, warned Cabinet that FuelWatch was

flawed. It's meant to empower motorists by forcing sufrbts

stations to lock in prices for 24

hours. But the financial department

advised that the:

Cabinet was also told FuelWatch

would lift business costs,

especially for small operators. The

Government says it did listen - not

to its own bureaucrats, but to the

consumer watchdog. We backed it

because there was strong advice

from the ACCC. We're confident in

the ACCC's position. We've rested

our policy on that basis, and we'll

be proceeding with this policy. The

Opposition is already calling it

FuelGate. For him to ignore advice

from Treasury and finance and

industry is quite astonishing. And

the Australian people deserve some

answers. With another damaging leak

undermining Labor's petrol policy,

the Prime Minister called Cabinet

together to work out a response to this latest crisis before he

attended a dinner at Parliament

House. I said to the colleagues afterwards,

afterwards, "I know it's a new afterwards, "I know it's a new

Government, guys, but when we talk

about Cabinet documents, it doesn't

mean leaving the documents on the cabinet."

Disgraced swimmer Nick D'Arcy is clinging to the slimmest hopes

he'll compete in Beijing. The Court

of Arbitration for Sport has ruled

he brought himself into disrepute

after being charged with assault effectively endorsing his dumping

from the team. But it also found

AOC chairman John Coates didn't AOC chairman John Coates

have the power to sack D'Arcy. The

20-year-old says he'll keep

training, hoping for a miracle. A

little bit disappoint would the

decision, obviously, because it's

not as clear-cut as I would have

liked it to have been. A final

decision now rests with the board

of the AOC, which is expected to of the AOC, which is expected to

meet within a fortnight.

Archaeologists are searching for

more human remains at a suspected

mass burial site in northern France.

It's believed around 170 Australian

diggers lie there after one of the

bloodiest days in our military

history. Ten's Europe correspondent

Danielle Isdale is at the site on the outskirts of Fromelles. the outskirts of Fromelles.

Years of research and lobbying and

months of planning appear to have

finally paid off here in Fromelles,

with a team of archaeologists

unearthing what they believe could unearthing what they believe

be the remains of an Australian

soldier or a British soldier buried

here during the Battle of Fromelles

in World War I. Has been it has been, I have to say, it's been, I have to say, it's quite

obvious a sombring of mood among

the team. And I think we're now

guarding our loins for a very

difficult and intense three weeks

as we spend every day literally

face to face with potentially these

soldiers. It is a significant

breakthrough and a sombre moment,

not just for historians and

archaeologists, but experts here say for each and after Australian.

The team here is looking for up The team here is looking for up to

170 diggers who died during the

Battle of Fromelles and were

believed to be werede in this area

by the Germans in the days by the Germans in the days that

followed. They say now they've

found some remains, it's likely

they may find a lot more. They're

not here to exhume or disturb any

remains or anything they find, but they're here to confirm the they're

presence of any bodies to determine

a quantity and to take a look at

the condition that what they the condition that what they find

is in after all this time.

Fire has ripped through a Sydney

motorcycle shop overnight. A blaze

destroyed a workshop and left a

showroom badly damaged. Around 50

people had to be evacuated from

nearby homes. A crime scene has

been set up and police are been set up and police are now investigating

investigating the cause of the fire.

Controversial Channel Nine personality Sam Newman has been

ordered to take an extended break. Nine

Nine executives told its 'Footy

Show' frontman of 15 years he needs

time to recover from two major time to recover from two major

operations. Newman has also been

asked to attend counselling over

his recent behaviour on the show,

including a stunt involving a

naked mannequin. The network says

it should not have allowed Newman

back on air so soon after a

life-threatening illness.

A nasty bite from a venomous snake

sounds pretty scary! But spiders sounds pretty scary! But spiders

and bees are four times more likely

to send you to hospital. New

research from the Institute of

Health and Welfare reveals spiders are the worst culprits, accounting

for a third of the 11,000 bites and

sting admissions each year. 60% of

those are thanks to redbacks.

Safety concerns about Melbourne's

Burnley Tunnel have resurfaced

after another major crash. A

multivehicle pile-up has revived

memories of last year's deadly inferno.

Brakes screeched as six cars and

two trucks slammed into one another.

I think someone cut someone off up

there, so we all braked, and then

there was a loud bang from behind !

one man was hospitalised and,

while investigations continue, while investigations continue, it

appears the last vehicle didn't

have enough room to pull up,

causing the chain reaction. I've

braked, he's braked. In my

rear-vision mirror, the sugar truck

behind me wavered. I thought "I'm

gone." The accident has gone." The accident has brought

back memories of the deadly tunnel

crash just over 12 months eago that

claimed three loivs. I was really

shaken up and probably thinking

back to the other Burnley Tunnel

accident. Witnesss say a late lane

changed caused the crash. The changed caused the crash. The

Government had promised a

lane-change ban but backflipped. It may

may actually make the roads more risky. Military helicopters have been call

in to rescue people cut off by

landslides after China's

devastating earthquake. The

villagers were airlifted out of the

Aba area of the hard-hit Sichuan province. The official death toll

from the 7.9-magnitude quake is

already more than 68,000, with

nearly 20,000 listed as missing.

Cricket now, and Matthew Hayden will

will not play a match on the West

Indies tour. The opening batsman

will be sent home to recover from

an ongoing Achilles injury. Hayden

was an unwilling spectator for the first-Test victory in Jamaica, still hobbled by the injury he

picked up during the Indian

Premier League. His second Test

begins tomorrow - he was only rated

a slim chance of playing the third Test next month.

Aussie success in the rain-delayed

first round of the French Open, with

with Lleyton Hewitt, Casey

Dellacqua and Samantha Stosur all advancing. Finally some sunshine at Roland

bears, and Lleyton Hewitt was able

to start his campaign. Any concerns

about a hip injury brushed away as

he dominated Nicolas Mahut. A lapsing concentration all around

forcing Hewitt to fight back from 4-1

4-1 down in the third set. He did

so and sealed the match with an ace,

and a trademark... "Come on"! The

wind caused havoc on centre court. World number two Rafael Nadal also

with a battle against his Brazilian

qualifier. This young fella's a

player. The defending champion up

to the challenge as he wrestled for the

the first set. That's too good. Nadal full of confidence in the second and third to wrap up the match. There's the difference. It

wasn't so easy for world number one

Maria Sharapova. Her 104th-ranked

compatriot forced their match into

a third set. Well played.

Sharapova's power and skill

eventually prevailed in a long

final set 8-6. The AFL has backflipped on its

controversial interchange rules, with computers replacing the old-fashioned paper system. The

league has embraced modern

technology in a bid to eliminate the interchange fiascoes. the interchange fiascoes. Having

listened to the feedback and seen

the way the new interchange the way the new interchange holding

area operators, it will no longer be necessary for our interchange

stewards to write down that information. You'd think it

wouldn't be a difficult task to

manage that. We've bib put a man on

the moon and we have TVs and iPods

- you'd think they'd be able to do

that. Champion Data will

electronically record all

interchange movements.

Now to finance with Frank, and

Qantas hit hard by rising fuel

costs. No surprises there. That's

right. It will flow on, Kath. Qantas

Qantas and its budget offshoot

Jetstar will cut flights and jobs

due to the rising price of due to the rising price of fuel.

Hundreds of positions are set to be

axed, along with several eastern

states routes to cover the air

all's fuel expenditure. The Gold

Coast-to-Sydney and Ayers

Rock-to-Melbourne services the

first to go. Virgin Blue also

expected to make cuts due to fuel

costs. Meantime, Qantas passengers

face possible delays today as

hundreds of maintenance engineers

stop work over a wage dispute.

Melbourne-sid, Sydney and Brisbane

airports will all be affected

Origin Energy is expected to nounce

it has agreed to to takeover from

BG Group, worth at least $13.2

billion. The deal values Origin as

much as $14 billion. The

agreemented price is believed to be between

between $15-$16 a share. BG made

its first bid for Origin last month.

While it was not officially rejected, Origin hinted there rejected, Origin hinted there was

room for the British company to improve the offer.

To today's newspaper headlines now

- 'The Australian' has more on the

discovery of remains in northern

France, with some relatives asking

that the diggers be left alone.

The 'Financial Review' looks at the

annual BRW rich list, which isn't

topped by a Packer for the first

time in 20 years. Or Frank Coletta.

And the 'Sydney Morning Herald' has

more on the decision over the

future of swimmer Nick D'Arcy.

A French couple's sentence over one

of Europe's worst killing sprees. Details when the Early News returns.

This program is captioned live.

Making headlines this morning - Cabinet

Cabinet leak - revelations the Rudd

Government ignored warnings from

four departments over its FuelWatch

scheme.

Nick D'Arcy remains optimistic about his Olympic swimming dreams

despite a court ruling he broke two rules.

World War I mystery - archaeologists continue digging archaeologists continue digging for

more remains at a suspected burial

site in France.

And Luke Lewis rejects Russell Crowe - the rugby league star

choosing to remain at Penrith next

year instead of switching to South Sydney.

Now to the latest on the markets with Frank Coletta. Thank you very

much, Kath. Wall Street took a

slide early amid renewed fears

about the financial sector.

Coming up - that rich list - were

you on it, Kath? I know I wasn't.

If you give all your money away at

crab racing, you won't be, soon!

The FuelWatch scheme is in tatters following another damaging leak.

It's been revealed four Government

departments warned Cabinet the

scheme would lead to higher petrol

prices and reduced competition. It

is true. There was some

bureaucratic advice. Against

FuelWatch. I don't believe that was

well-grounded. The competition

watchdog is today expected to

release the modelling which convinced the Federal Government

to go ahead with the scheme. Disgraced swimmer Nick D'Arcy

believed he can still make the

plane to Beijing, despite another

setback to his Olympic dream. The Court setback to his Olympic dream. The

Court of Arbitration for Sport has Court of Arbitration for Sport has

found his dumping from the swim

team was correct, but D'Arcy says

he'll keep training.

It wasn't the finding Nick D'Arcy

had been praying for. His appeal to

the Court of Arbitration for Sport to the Court of Arbitration for Sport

to overturn his dumping from the

Beijing swim team a desperate last

hope for an Olympic reprieve. A

little bit disappointed with, um, the

the decision, obviously, 'cause

it's not as clear-cut as I would

have liked it to have been. Not

clear-cut because, while the court agreed

agreed D'Arcy's removal from the

national team over an alleged fight

with retired swimmer Simon Cowley

was correct, it also found Olympic

Committee chairman John Coates

didn't have the power to sack him.

Any decision to terminate should be

taken by the AOC, the executive of

the AOC, rather than by Coates's the AOC, rather than by me. However,

Coates's decision to axe D'Arcy is

tipped to be rubber-stamped by the committee when it meets within a

week. It doesn't matter which way the

the decision goes. I'm still proud

to have been part of the Australian

swimming team at one point in my life. D'Arcy says he'll life. D'Arcy says he'll keep

training and cling to his fast-fading Olympic dream.

Qantas passengers face delays at

airports today as engineers walk

off the job over a pay dispute.

Maintenance workers will down tools

at Sydney Airport from 8:00am until

midday, while engineers in Brisbane

will do the same from 6:00pm to will do the same from 6:00pm to

10:00pm. Workers in Melbourne are

expected to walk off the job

tomorrow morning. Meantime, Qantas

has been hit hard by rising fuel

costs, announcing it will cut

flights and jobs.

A 6-year-old child has been

seriously injured after being hit

by a bus on the Gold Coast. Police

are still interviewing the bus

driver. The child has been rushed

to hospital in Brisbane, and

remains in a critical condition.

It's unclear whether driver error

or mechanical failure was to blame

for the accident.

The search for more human remains

continues in northern France at a

suspected World War I mass burial

site. Further digging has been

suspended as archaeologists examine

the area. We now are going to an

extensive, slow, methodical,

perhaps boring, process. Boring,

but necessary, because in essence, but necessary, because in essence,

we have one go at this process, and we want to do it correctly. It's

believed up to 170 diggers could be buried there.

A French couple has been jailed for A French couple has been jailed for

life for seven murders in a life for seven murders in a serial

killing spree lasting more than killing spree lasting more than a decade. The couple scoured northern

France and Belgium for women and

girls to rape and girls to rape and kill and

prosecutors suspect there may prosecutors suspect there may be more victims.

As the families and friends of the

victims quietly wept, there is

little sense of satisfaction at the

verdicts. Merely a monumental

relief that Fourniret and Olivia

will spend the rest of their behind will spend the rest of their lives

behind bars. Michel Fourniret and

his wife were described in court as

monster thfpltz prosecutors said

they had merge under to a single

creature of evil. Monique creature of evil. Monique Olivier

would tempt young willen into their

van, often asking for their help,

and then Fourniret would rape

and then Fourniret would rape and

kill the helpless victims. They

ranged in age from 12 to 21. In these pictures, Fourniret can be

seen directing police to some of

the bodies. Two at least he buried

here next to a chateau he once

owned. One of those killed was

Elisabeth Bruchay. His father today

declared he was pleased with had

the verdict. Life in prison was

harsher, he said, than the

guillotine. Even the lawyers said

they would never be the same. After

these two months, I think everybody

is a little bit different than he

was before the trial.

Rugby league, and South Sydney have

failed their bid to sign panthers

yuen utility Luke Lewis, despite Lewis Lewis declaring in April he would

wear the red and green in 2009.

First, I said I was going to go to

Souths. I was always willing to,

you know, to do the right thing.

Then a few things, a few issues,

have come up. The opportunity to stay have come up. The opportunity to

stay at Penrith has come up as well,

which is pretty good for meself.

The NSW representative has signed

with the Panthers till the end of

the 2000 11 season.

-- 2011 season. Lleyton

Lleyton Hewitt is through to the

second round of the French Open

after he defeated Nicolas Mahut in straight sets.

Hampered by a hip injury coming into

into the tournament, Hewitt moved

freely, dominateding the first two sets. Come on!

But he fell behind briefly in the

third , yet fought back from 4-1 third , yet fought back from 4-1

down, sealing the match with an ace.

And of course a trademark "Come on."

A blazing century from Sean marsh

guarded pungic to victory over

Shane Warne's Rajasthan Royals in

the last Indian Premier League

match before this match before this weekend's

semifinals. Captain-coach Warne

rested himself from the

top-of-the-table Royals' line-up.

He received the best view of He received the best view of the

Marsh onslaught. I was playing with

his dad. Jeff was six or seven. We

were rolling balls to him him in

the nets - now he's smashing them

out the parks! Rajasthan fell 41

runs short.

Anthony Mundine is pursuing the

world's best middleweights for his

next bout after defending his beWBA next bout after defending his beWBA

super-middleweight title overnight. Mundine Mundine fought Sam Soliman for the

third time, winning a unanimous

points decision. Solomon's corner

in disbelief. What have you got to

do to win a fight here? Fair dinkum. What

What about giving boxing a chance?

What about giving boxing a chance?

I'm the best, I'm the best. It is

Mundine's third successful defence

of his supermiddleweight crown.

To finance now. A bit of outrage

here, Frank - Bond back on the rich list.

list. She indeed. A few people

angry about this. Disgraced

businessman Allancon bond has

clawed his way back into BRWs rich

list. He has been absent from the

list in 19 years since list in 19 years since being

convicted of the biggest corporate

fraud in Australian history, coming

in at 157th place with a $265

million fortune, built mostly from

overseas mining interests. James

Packer has fallen to third place, worth just... $6.1 billion. Fortescue mining group's chief

Andrew Forest is now the richest

Australian on record, worth $9.4 billion.

In a surprise move, Chinese

steel-maker Sinosteel has declared

its $1.3 billion bid for Midwest

final. It was thought Sinosteel may

leave open the option to increase

its offer after -- rival miner its offer after -- rival miner launched a reverse takeover bid.

Midwest had already agreed to the offer. Sinosteel already owns

nearly 20% of Midwest. It's unlike

3 pass the majority hurdle given

Murchison has the support of a

block of shareholders who own 40%.

A prominent AFL commentator ordered

to take an extended break - we'll

have the details next. And the have the details next. And the

CommSec finance report when the Early News returns.

If I had my way, I'd have more time to get ready in the morning. I could have a second cup of coffee. And there'd be no rush for the early bus. You've got it. The new ACTION. We're going your way.

This program is captioned live.

Making headlines today - the Rudd

Government hit by another damaging Government hit by another damaging

Cabinet leak - its credibility on

petrol now in tatters.

Dars dar dars's hopes of swimming Dars dar dars's hopes of swimming

at the -- Nick D'Arcy's hopes of

swimming at the Beijing Olympics

all but disappear

The search continues for human

remains at a suspected World War I

burial site in France.

And the long delay pays off - Lleyton Hewitt leads an Aussie

charge into the second round of the French Open.

Now to Frankie, who has a very

quick check of the markets. Thank

you very much, kagtd. Wall Street

has rebounded late in trade,

overturning a mostly negative session.

The Nasdaq up 5.

The CommSec preview in just The CommSec preview in just a moment, Kath. Thank you, Frank.

The Rudd Government has been

damaged by another leak. It's been damaged by another leak. It's been

revealed four departments warned

Cabinet that the FuelWatch scheme

could result in higher petrol

prices and less competition.

As FuelWatch sprung another leak,

the Government attempted to repair

the damage. It is true. There was

some bureaucratic advice. Against

FuelWatch. I don't believe that was well-grounded. Four departments,

including the Prime Minister's,

warned Cabinet that FuelWatch was

flawed. It's meant to empower motorists by forcing service

stations to lock in prices for 24

hours. But the finance department advised that the:

Cabinet was always told FuelWatch

would lift business costs,

especially for small operators. The

Government says it did listen - not

to its own bureaucrats, but to the

consumer watchdog. We backed it

because there was strong advice from

from the ACCC. We're confident in

the ACCC's position. We've rested

our policy on that basis, and we'll

be proceeding with this policy. The Opposition Opposition is already calling it

FuelGate. For him to ignore

from treasure thererary and

Finance and Industry is quite

astonishing. And the Australian

people deserve some answer s. With

another damagic leak

another damagic leak undermining

Labor's petrol policy, the Prime Minister called Cabinet together to

work out a response to this latest

crisis before he attended a dinner

at Parliament House. I said to the colleagues afterwards, "I know it's

a new government, guys, but when we

talk about Cabinet documents, it

doesn't mean leaving the documents on the cabinet."

Disgraced swimmer Nick D'Arcy is

clinging to the slimmest of hopes clinging to the slimmest of hopes

he'll compete in Beijing. The Court

of Arbitration for Sport has ruled

he brought himself into disrepute

after being charged with assault, effectively endorsing his dumping

from the team. But it also found

AOC chairman John Coates did AOC chairman John Coates did not

have the power to sack D'Arcy. The 20-year-old says he'll keep

training, hoping for a miracle.

A little bit disappointed with, um,

the decision, obviously 'cause it's

not as clear-cut as I would have

liked it to have been. A final

decision now rests with the board decision now rests with the board

of the AOC, which is expected to meet within a fortnight.

Controversial Channel Nine personality Sam Newman has been

ordered to take an extended break.

Nine executives told its 'Footy

Show' frontman of 15 years he needs

time to recover from two major operations.

operations. Newman has also been ask to attend counsel over his

recent behaviour on the show,

including a stunt involving a

naked mannequin. The network says

it should not have allowed Newman

back on air so soon after a life-threatening illness.

There's speculation this morning

the Catholic Church may have helped

cover the funeral expense for one

of Queensland's most notorious

child killers. Valmae Beck died in hospital from heart-surgery

complications while serving a

lifetime in jail for the torture,

rape and murder of Sian Kingi in

1987. Now a friend of Beck's with 1987. Now a friend of Beck's with close ties to the Catholic Church

has confirmed a quote a generous

benefactor has come forward to pay her cremation. her cremation. Military helicopters have been

called in to rescue people cut off by landslides after China's devastating

devastating earthquake. The

villagers were airlifted out of the

Aba area of the hard-hit Sichuan

province. The official death toll province. The official death toll

from the 7.9-magnitude quake is

already more than 68,000, with

nearly 20,000 listed as missing.

The search for more human remains continues in northern France at a

suspected World War I mass burial site.

site. Further digging has been

suspended as archaeologists examine the area.

We now are going to an extensive,

slow, methodical - perhaps boring -

process. Boring, but necessary

because, in essence, we have one go

at this process and we want to do

it correctly. It's believed up to

170 diggers could be buried there.

Aussie success in the rain-delayed

first round of the French Open,

with Lleyton Hewitt, Casey

Dellacqua and Samantha Stosur Dellacqua and Samantha Stosur all advancing.

Finally some sunshine at Roland

bears, and Lleyton Hewitt was able

to start his campaign. Any concerns

about a hip injury brushed away as

he dominated Nicolas Mahut.

Elapsing concentration all around in

in the third set forced Hewitt to

fight back from 4-1 down. He did so,

and sealed the match with an ace, and

and a trademark... "Come on"! The

wind caused havoc on centre court, world number two Rafael Nadal also with a battle against his with a battle against his Brazilian

qualify. This young fella's a

player. The defending champion up

to the challenge as he wres frld

the first set. That's too good.

Nadal full of confidence in the

second and third to wrap up the

match. There's the difference. It

wasn't so easy for world number one

Maria Sharapova. Her 104th-ranked

compatriot forced their match into

a third set.

Sharapova's power and skill

eventually prevailed in a long final set

Cricket now, and Matthew Hayden

will not play a match on the West

Indies tour. The opening batsman

will be sent home to recover from

an ongoing Achilles injury. Hayden

was an unwilling spectator for the

first-Test victory in Jamaica,

still hobbled by the injury he

picked up during the Indian

Premier League. The second Test

begins tomorrow, and he was only

rated a slim chance of playing the

third Test next month. Carlton coach Brett Ratten claims

speculation over the future of his

top goal kicker, Brendan Fevola, is

becoming a distraction. The key

forward is yet to come to terms

with the club over a proposed new 3-year deal.

Carlton spearhead Brendan Fevola is

juggling plenty at the moment -

even the upcoming

Juventus-Melbourne Victory soccer

game. That's the wog coming out in

me. Off-field, though, he's

stalling over his playing future after stalling over his playing future

after reportedly knocking back

3-year dee. his coach very much

over the saga. I think we should

move on a bit. If he doesn't want

to accept it, so be it. At St Kilda,

the players are in agreement with

coach Greg Lyon that they were soft

against Brisbane on Sunday. Clearly

the evidence was there on the

weekend for everyone to see that we

were soft. The playing group was

totally accepting in what Ross said,

and like I said, it has stung us into

into action. They disagree with

their president, who says they're

rebuilding. I Don't think we're in

a rebuilding phase, no. I think we've

we've got a strong list. And the

stress getting to Mark Harvey, the

Fremantle coach having a laugh

after his side's horror fade-outs. I'd have

I'd have tart-card readers write to

me, gypsies writing to me. me, gypsies writing to me. The

funny one was a ventriloquist wrote

to me saying "I might be able to

help ya."

The world oil crisis has claimed

even more victims, with Qantas

announcing it will cut jobs and services due to the rising cost services due to the rising cost of

fuel. With more, we're joined by

CommSec live. Do you think the

surge in oil prices will mean the

end of low-cost air travel? Frank,

it's probably unlikely, because at

the end of the day, airlines still

want to remain competitive. It's tough that airlines are facing

tough decisions in the wake of

higher jet-fuel costs, but

customers remain their number-one

priority, and there will always be

operators battling to get our

business by offering discounted

seats. Let's hope so! There is good

news on I ubgz, with boom

conditions continuing there? That's right.

right. Construction was at a record

in the March quarter. Construction

rose by more than 2% for the first

three months of the year. That

totalled $30 billion for the

economy. Most of the work wass to

the building of new roads and

commercial projects. But the good

news is there's also been a slight

pick-up in housing activity. That's

of course great news for renters as

more housing availability means

there will be less pressure on reds,

Frank. Thank you very much. Thanks.

To the newspaper headlines now. The 'Herald Sun' reveals that 'Footy Show's controversial personality

Sam Newman has been asked to take

an extended break from television.

The 'Herald's 'Business Day'

reports that quantsis to slash 5%,

as we've heard, of international

and domestic capacity to cope with

rising fuel costs. 'The Advertiser'

reveals that the family of Dianne

Brimble are still waiting for any

charges to be laid over her cruise-ship cruise-ship death almost six cruise-ship death almost six years ago.

I like the sound of this - a 100-carrot diamond goes under the

hammer. The details when the Early News returns. Good morning, i'm Lachlan Kennedy The A-C-T Government has admitted a SYMONSTON respite care centre, would have been re-located, if the original proposal for a gas fired power plant at MUGGA LANE, was approved. Disability minister KATY GALLAGHER said early plans had been made to move the centre, at no taxpayer expense, if the eighteen stack plant went ahead.

Opposition Leader ZED SESELJA says he wants to know what the Government knew about the plants impacts, and why CANBERRANS weren't informed. A-C-T Police are thanking the public for their help, in uncovering an alleged hydroponic drug lab in a home at Banks over the weekend. A TWENTY NINE year old man has been summonsed over the drug raid, which allegedly netted five kilos of cannabis, drug and hydroponic equipment, and seven thousand dollars in cash. Air services to the Snowy Mountains are unlikely to be re-instated for this year's ski season.

The State Transport department says it has had no expressions of interest from carriers keen to replace Rex Airlines, who pulled out of the Cooma to Sydney route earlier this year. TO SPORT The Boomers Squad will arrive in Canberra on Sunday, for a five day training camp. TWENTY members of the THIRTY-THREE man squad, including Canberra's own Patrick Mills, will use the camp to hone their skills, ahead of upcoming series against Iran and New Zealand TO THE WEATHER NOW A trough is moving out to the Tasman Sea today, while a high pressure system will become established over the state. Nationally... early fog clearing to a fine day in Canberra and Melbourne... mostly sunny in Sydney... the wet weather now up around Brisbane Closer to home... a mostly fine day with a few clouds about for Wollongong... sunny for Wagga and Dubbo... 15 the top in Orange today Early fog clearing to a fine day in Bowral ... 19 the top with some high cloud in Batemans Bay

Sunny skies across the Snowy's... looking good in Parkes as well Looking ahead: The wet weather should be all gone for now... the unstable conditions moving out of the region and up to Brisbane. We can expect fine and mostly sunny skies today, tomorrow and across the weekend. (that's the latest from Southern Cross Ten ... stay with us for all your national and local Hi, honey. How was your day? Oh, it was great! I dropped the kids off... Talking to the people in your life and in your town shouldn't come at a price. That's why TransACT phone customers can call each other for free. One in four homes and businesses in Canberra and Queanbeyan have already signed up. Hi. How was school? So let's get the whole town talking... Pocket money? ..with free local calls. Call today and switch to TransACT.

This program is captioned live.

You're watching Ten's Early News.

Making headlines today - Cabinet

leak - revelations the Rudd

Government ignored warnings from

four departments over its FuelWatch scheme.

scheme.

Nick D'Arcy remains optimistic

about his Olympic swimming dreams,

despite a court ruling he broke

team rules.

World War I mystery - archaeologists continue digging for

more remains at a suspected burial

site in France. And

And Luke Lewis rejects Russell

Crowe? The rugby league star choosing

choosing to remain at Penrith next

year instead of switching to South Sydney.

Now, to finance with Frank, who has

the latest, and our final look on

the markets. Thank you, Kath. Wall

Street rebounded late in trade

overturning a mostly negative

session to end well and truly in the black.

The Nasdaq up 5 points.

Ahead - the comments by an ex-RBA

boss which has the centralbank in a

bit of a spin, Kath. Thanks, Frank

The credibility of the Rudd Government's national FuelWatch

scheme is in tatters following

another damaging leak. It's been

revealed four Government

departments warned Cabinet the

scheme would lead to higher petrol prices and reduced competition. It

is true. There was some bureaucratic advice. bureaucratic advice. Against

FuelWatch. I don't believe that was

well-grounded. FuelWatch. I don't believe that was well-grounded. The competition watchdog

watchdog is today expected to

release the modelling, which

convinced the Federal Government to

go ahead with the scheme. Disgraced swimmer Nick D'Arcy

believes he can still make the

plane to Beijing, despite another

setback to his Olympic dream. The Court of Arbitration for Sport has

found his dumping from the swim

team was correct, but D'Arcy says he'll keep training.

It wasn't the finding Nick D'Arcy

had been praying for. His appeal to

the Court of Arbitration for Sport

to overturn his dumping from the

Beijing swim team a desperate last

hope for an Olympic reprieve. A

little bit disappointed with, um,

the decision, obviously 'cause it's

not as clear-cut as I would have

liked it to have been. Not

career-cut because, while the court

agreed D'Arcy's removal from the

national team over an alleged fight

with retired swimmer Simon Cowley

was correct, it also found Olympic

Committee chairman John Coates

didn't have the power to sack him.

Any decision to terminate should be

taken by the AOC, the executive of

the AOC, rather than by me. However,

Coates's decision to axe D'Arcy is

tipped to be rubber-stamped by the

committee when it meets within a

week. It doesn't matter which way

the decision goes. I'm still, um,

proud to have been part of the

Australian swimming team at one

point in my life. D'Arcy says point in my life. D'Arcy says he'll

keep training and cling to his

fast-fading Olympic dream.

Qantas passengers face delays at airports

airports today as engineers walk

off the job over a pay dispute.

Maintenance workers will down tools

at Sydney Airport from 8:00am until midday, while engineers in Brisbane

will do the same from 6:00pm to

10:00pm. Workers in Melbourne are

expected to walk off the job

tomorrow morning. Meantime, Qantas has

has been hit hard by rising fuel

costs, announcing it will cut

flights and jobs.

Sales of pre-mixed alcopop drinks

have plummeted. Drinkers have have plummeted. Drinkers have

turned their attention to stronger

spirits! Alcopop sales fell by

almost 40% in the fortnight since

the Rudd Government introduced its

new tax. But those improvements

were offset by a 20% jump in

stronger, straight -spirit sales.

The investigation into photographer

Bill Henson has stalled after the

young model at the centre of the exhibition

exhibition refused to speak with

police. Liberal frontbencher Tony

Abbott has joined the debate and

says calling the photos 'art' is a

double standard. I mean, if I had

on my computer the kind of images

that were in that gallery, I'd be,

ah, interviewed by the police and

quite possibly face charges. Police

have also removed dozens of Henson

images from the National Gallery in Canberra. Archaeologists

Archaeologists are searching for

more human remains at more human remains at a suspected mass burial site in northern France.

It's believed around 170 Australian It's believed around 170 Australian

diggers lie there after one of the

bloodiest days in our military

history. Ten's Europe correspondent

Danielle Isdale is at the site on

the outskirts of Fromelles.

Well, years of research Well, years of research and

lobbying and months of planning

appear to have finally paid off

here in Fromelles, with a team of

archaeologists unearthing what they

believe could be the remains of an

Australian soldier or a British

soldier buried here during the

Battle of Fromelles in World War I.

It has been, I have to say it's

quite obvious a sombring of mood

among the team. And I think we're

now guarding our loins for a very

difficult and intense three weeks

as we spend every day literally

face to face with potentially these

soldiers. It is a significant

breakthrough, and a sombre moment not just for historians not just for historians and archaeologists, but experts here

say for each and every Australian.

The team here is looking for up to

170 diggers who died during the

Battle of Fromelles and were

believed to be buried in this area

by the Germans in the days that

followed. They say now that they've

found some remains, it's likely

that they may find a lot more.

They're not here to exhume any

remains or disturb anything they

find, but they appear to confirm -- find, but they appear to confirm --

they're here to confirm the presence of any bodies, to presence of any bodies, to

determine a quantity, and to take a determine a quantity, and to take a

look at the condition that what look at the condition that what

they find is in after all this time.

Danielle Isdale in Fromelles there.

A French couple have been

sentenced to life in prison for the

kidnap, rape and murder of seven

girls and young women. Michel girls and young women. Michel

Fourniret and his wife Fourniret and his wife Monique Olivier scoured northern France and

Belgium for their victims, who were

aged between 12 and 21. Their kill spreeing spanned more than a decade. -- killing spree. It's as big It was regarded as a signing that could change South Sydney's fortunes in 2009. But hopes of Luke Lewis leading a Rabbitohs revival were dashed when he agreed to terms that foot of the mountain for a further three years. At first, I said I was going to go to Souths. I was always willing to, ah, to do the right thing. Then a few issues have

have come up. And then the

opportunity to stay at Penrith has come

come up as well, which is pretty...

pretty good for meself. Lewis quick

to dispel claims the change of

heart had anything to do with

Souths' poor form. It's just, ah, someone in the family is a someone in the family is a bit

crook at the moment. Don't want to

go into too much depth about it,

and I'd just like to be close. I don't like the don't like the travel and that. The

Melbourne Storm have released

Michael Crocker from the final year

of his contract to join Hull in

English Super League in 2009. Australian

Australian team-mate Willie Mason

expecting many to do the same if

Parramatta CEO Denis Fitzgerald's

calls for the salary cap to drop

come to fruition. If you lower the

salary cap, you'd see a bigger

defect of players going to Europe

and France. And England. The stupidest stupidest comment I've ever heard.

Tennis now, and Lleyton Hewitt is

through to the second round of the French Open after he defeated Nicolas Mahut in straight sets.

Hampered by hip injury coming into

the tournament, Hewitt moved freely,

dominating the first two dominating the first two sets. "Come on"!

He fell behind briefly in the third,

yet fought back from 4-1 down,

sealing the match with an ace, and

of course a trademark "Come on."

The AFL has backflipped on its

controversial interchange rules, with computers replacing the

old-fashioned paper system. The league has embraced modern league has embraced modern

technology in a bid to eliminate

the interchange fiascoes. Having

listened to the feedback and seen

the way that the new interchange

holding area operators, it will no longer

longer be necessary for our

interchange stewards to write down

that information. Do you'd think it that information. Do you'd think it

wouldn't be a difficult task to be

able to manage that, having put man

on the moon and having TVs and iPods and everything else they've

got going, you'd think they'd be able to do that.

able to do that. Champion Data will

electronically record all

interchange movements. interchange movements.

Frank, a warning from a former Frank, a warning from a former RBA

governor on interest rates?

Straight to the point. He's

fighting for the battlers, in fact.

Former RBA chief Bernie Fraser says

the central bank may need to reuse

its think of rates to fight

inflation if food and fuel prices

keep rising.

keep rising. He says it may need to

be reviewed if rising food and fuel

costs are reflecting a structural

shift in the global economy. New

figures reveal Australian families

are spending almost a quart are spending almost a quart of

their income on rent due to the

squeeze on home affordability. The

real estate institute of Australia

says interest-rate rises are

continuing to hurt, with mortgage rates

rates accounting for 24.7% of their income praftstkpwhref let's check the weather.

That's it for the Early News. Hope

you get better, Woodsy. Good on you, you get better, Woodsy. Good on you,

Woodsy. Have a great day. See ya.

Supertext Captions by Red Bee Media Australia. www.redbeemedia.com.au