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(generated from captions) This program is LIVE captioned. This morning, Labor's pact with middle-Australia The Budget reply -

Kim Beazley's leadership? but can it save We owe our lives to them. pay tribute to their rescuers Todd and Brant and remember a lost mate. Mother of the Year. Congratulations to Australia's This is Seven Morning News with Ann Sanders. Good morning. Opposition Leader Kim Beazley to middle-Australia has made his pitch a much-needed boost in the polls. hoping his plan will give Labor

The showpiece is to create more childcare centres a $200 million program some tough criticism. but it is already facing with middle-Australia. Kim Beazley calls it his pact when put it in, you get back. Under a Beazley Labor Government, to the Budget, Delivering his formal reply unveiled five key commitments. the Opposition Leader They include hundreds of new childcare centres promising to build in primary schools... after having a child, When you want to go back to work the dreaded double drop-off. you shouldn't have to face in skills and training, investment industrial relations laws, a promise to tear up the Government's

a ban on foreign apprenticeship visas and improved broadband services. on that desk, When you put a computer that plugs you into the world I'll give you a connection into your home. and brings every book ever written at the Treasurer and his tax cuts, He has also taken a shot comparing him to a poker machine. crowds gather around. The lights flash, the bells ring, "Jackpot," he crows. 10 bucks, that's the drop, 10 bucks. in hitting back. Peter Costello didn't waste any time he had glib one-liners He didn't do policy tonight,

discipline with a glib one-liner. and you can't make up for a lack of sunk the boot in as well. The Prime Minister in Opposition, Mr Beazley has now had 10 years a coherent alternative plan and he still doesn't have

and Australia's future. to manage Australia's economy for the next two weeks, With John Howard heading overseas both Kim Beazley and Peter Costello to voters, will be left to sell their Budgets and at the same time as alternative Prime Minister. showcase their wares Kim Beazley a short time ago. I spoke with Opposition Leader Good morning, Mr Beazley. Good morning, good to be with you. Yes, thank you. to deserving middle-income families Your Budget is an unashamed pitch economic credentials? but has it re-established Labor's is a pact with middle-Australia, Look, what I've been talking about

you put in, you get back. in middle-Australia An awful lot of people table feel as they sit around the kitchen amount in the workplace, that they've put in an enormous they put in an enormous amount to government

at the other end. and they see very little a number of areas So I was identifying with ordinary Australians that I know from my discussions are massively important to them. of their kids Talking about the qualifications and the economy needs that. And talking about the ability in the workforce for women to participate affordable, convenient child care, because they get access to decent, things. just to say a couple of these for the average family member. These are important economic issues You say middle-income Australia tax cuts label would offer? Can you put a dollar figure on what cuts that we put in place last year, We put a dollar figure on the tax on the issues of tax reform. and we will keep working then. We'll put dollar figures on them On the issue of superannuation, $6 billion in super taxes. the government is abolishing for all Australians? What's your stand on superannuation They may be. they're doing, Anne. See, we don't know exactly what announced it as a done deal Because even though Peter Costello on Budget night, in the statement he made to the fine print, when you actually go it's a proposal. We view the proposal positively structure of superannuation, because we invented the current a few creaks in the joints and like all good things it develops and things have to be done to it. We absolutely accept that. this positively So we're going to approach

responsibility, as we do it. and with an eye to economic good scheme of superannuation So we will make certain that our ironed out in it stays healthy and has the bugs government's propositions and we will approach the positively. to hear about your childcare promises I'm sure all families will be happy a space in our biggest cities but how realistic is it to even find

for childcare places next to schools? for more land for themselves. So many primary schools are begging Some are, some aren't. What we've got to start to do is in convenient places. to get the childcare kids at childcare centres. I talk a lot to women dropping off are these: The things they about to me

One, the double drop.

in the childcare centre That is, dropping one child to put another child in school. and then going half an hour's drive those two together The idea of bringing

and worthwhile idea. they find it a very interesting I get it from them.

in the inner-city, oddly enough, The second thing is particularly child care in place the most difficult thing in getting because it is so expensive. is to actually get access to land schools. But there is land available in many for us to do So we suggest the sensible thing with the State governments would be to sit down and work through this scheme, and, of course, the providers, providers, both private and community

and work through where we need to go in a convenient way. to put up a child care making schools available. It'll make all the difference in Finally this morning, Mr Beazley, to Mr Howard's comment how do you respond put up an economic platform for Labor that three years ago Simon Crean

that you ridiculed. It was seen as a major undermining of his leadership. What will this Budget do to reunify your leadership?

If Mr Howard actually said that about my responses to any of Simon's Budget statements, he is not telling the truth. He simply isn't telling the truth.

See, I don't worry about myself and my leadership. What I'm worried about is the people of Australia. This is a pact for middle-Australia. I'm talking directly to my fellow Australians. You put us in. What you put in in your effort and in your work, you're going to get back. That's something that governments don't often do, don't often undertake and those pacts they don't often set up. I worry about them. I don't worry about myself and us. Mr Beazley, thank you very much for your time this morning. Good to be with you, Anne. Rescued miners Todd Russell and Brant Webb have paid tribute their rescuers at a fundraising event in Beaconsfield. The miners received a hero's welcome as they took to the stage. For all our mates who each day said goodbye to their families and loved ones every shift to put their lives on the line for us, we owe our lives to them. The support they gave to our families during our ordeal showed not only to us but also to the entire country, the importance of our community, a friend in need is a friend indeed. The event raised more than $450,000. Todd and Brant have requested some of the money be used to help the family of their colleague Larry Knight who was killed in the Anzac Day rockfall. Larry was a great friend of us and a great work colleague and a lot of people will miss you, Larry. APPLAUSE A seven-year-old girl is dead and her two brothers, aged 12 and 14, are in a critical condition after being hit by a car. The children were crossing the road at a bus stop at Kendall on the New South Wales mid-north coast. Police have questioned the 40-year-old female driver. It is unclear what caused the accident. The first Queenslander to be charged under Australia's new anti-terrorism laws has just appeared in the Brisbane Magistrates Court.

Seven reporter Angela Cox was at the court and joins us now. Good morning, Angela. What happened this morning?

It waiz very brief appearance and

the 40-year-old is charged with

committing an abgtd done in

preparation for terrorist attacks

and using a carriage to make a

threat and using a carriage threat

for a threat. What those latter

changes mean in response to an

anonymous email that was received.

It is understood police allege that

he wrote that. Amundsen 's lawyer

says se not a terrorist and there

are no allegations that he is. The

high school teacher was remanded in

custody and he will face court

again on 26 May Thank you. A mother-of-six who donated a kidney to her son has been named Australia's Mother of the Year. Carmel Gordon also has eight grand-children and works with several disabled children. She was given the award in Sydney last night and says being a good mum is about looking at the big picture. Just concentrate on the things that are important. The dust and the fingerprints can wait. Don't forget it's Mother's Day this Sunday. Next in Seven's Morning News, the remarkable discovery that saved the lives of two missing American bushwalkers and a lucky esacpe as an emergency rescue exercise goes horribly wrong. Last year we saw a fantastic all-round performance (Miaows) Technically perfect. Hello, chair. APPLAUSE Superb leg-rub. Cat food of champions. Friskies with new Marine Balance. Taste and nutrition inspired by the sea. A report into the 2005 London bombings has blamed a lack of resources for the failure to prevent the attacks. 52 people were killed but it has now emerged all of the bomers were already known to police. Death, fear and confusion on the streets of London. A deadly attack on the capital that could have been prevented if the people meant to protect us had been given more resources.

The fact that the attacks were not prevented

shows that they were and are clearly areas for improvement. But overall, the committee has found that there were no culpable failures by the security and intelligence agencies. No culpable failures, despite the revelation the security services were aware of three of the bombers.

The report found they had on record a telephone number belonging to Germaine Lindsay. There had been a photograph of Mohammed Sadique Khan

circulated to foreign intelligence services, and the authors found that Sadique Khan and Shehzad Tanweer had been under security service investigation in 2004. But the two men seen here on their way to London were deemed to be peripheral figures and the investigation stopped after staff were reassigned to more pressing priorities. With hindsight the bombing showed what a disaster that was. It's prompted the report's authors to call for more intelligence on the homegrown threat. Neither the potential speed of radicalisation nor the fact that British citizens could become radicalised to the point of suicide

were understood. The report found that just a month before the attack on London the terror level there was reduced from severe to substantial. It has recommended a new, clearer system But the most chilling conclusion of today's report where more information is made available to the public. But the most chilling conclusion of today's report is that whatever is done, there's no guarantee this won't happen again. George W. Bush is facing tough questions today following reports the phones of millions of Americans have been tapped. Seven's US correspondent Anna Coren joins us now. Good morning, Anna. This report is causing quite a stir?

This is big news here in the United

States. A newspaper broke the

story this morning that the

national security agency has been

collecting a massive database of

phone calls. That means 10s of

millions have had their phone calls

recorded. The three largest

telephone communications companies

have been providing information and

only one company has refused to

cooperate. The critics say this

screams Big Brother but within

hours President Bush came out and

defended the agency The privacy of

ordinary Americans fiercely

protected in all our activities. We

are not mining or troling through

the personal lives of millions of

innocent Americans. Our efforts are

focused on al-Qaeda and Nona fill

yats. They say they don't listen to

the phone calls but looks at the

time to pick up on any suspicious

patterns. He says his main aim is

to protect home soil What sort of

reaction has there been at at White

House A mixed response. According

to the experts, this is legal.

No-one's rights are being violated.

It does raise the question what

other information is the government

collecting. As I said, a mixed

response from Congress. Let's have

a listen Order nair ji citizens, no

wrongdoing, no suspicion of wrong

doing are being targeted and this

is all being done outside the

purview of the courts That is nuts.

We are in a war and we got to

collect intelligence on the enemy

Conflicting opinions but it will be

interesting to see how Americans

react and how much of their privacy they will give up. A Russian helicopter has crashed into the sea during a rescue exercise north of Japan. The pilot struggled for some time to get the chopper into the air, but the MI14 nosedived and exploded after its rotor blades hit the water. All 13 people on board were rescued,

but the pilot died on the way to hospital. Two hikers in the United States say they owe their lives to a man they've never met. The pair got lost for days when they walked off a mountain trail, but then made a remarkable discovery. Gina Allen and Brandon Day are lucky to be alive. I should have played golf. The young couple from Dallas came to Palm Springs for a sales conference but ended up lost and alone in the snowy San Jacinto Mountains. We just ventured off the trail just a real short time

and found ourselves completely lost. That first night was extremely cold. We weren't wearing heavy winter gear by any means. Two days after they lost their way the couple discovered an abandoned campsite and inside a discarded backpack they found a diary. Mr John Donovan, he was writing that he was in a place where he wasn't going to be found. Nobody knew to look for him. It was dated exactly a year ago to the date we found it.

who was 60 years old when he vanished here a year ago. The situation was extremely dire. Brandon and Gina also found a book of matches among John's other things

and started a fire. That saved their lives. The fire that I said was large enough for everybody to see so I pretty much burned up a couple of acres, but... They saw the smoke. Rescue teams found Brandon and Gina cold, dehydrated, scared but happy to be alive. The couple knows that if one year ago John hadn't gotten lost they would never have been found. I have a lot of sympathy for the Donovan family If anything they can hold solace in the fact that him losing his life saved two others. To business and finance news now. Joining us is ANZ economist Cherelle Murphy. Good morning, Cherelle. What's happening in the markets this morning?

Good morning. Yes, the Australian

dollar is trading at around 77.73

US cents. That is close to an

eight-year high. It has traded of

around 1 c. The main catalyst is

the US dollar which has been weaker

as markets perceive the US to lose

its interest rate advantage. We

have seen very strong commodity

prices overnight. Most of the

companies are going record high The

housing finance figures are soon

to be released. We are looking for

1.5% finance data in March. It is

for March before the rate rise and

we will be looking for the post-May

data. Of little significance but

nevertheless we will keep an eye on

it. Thank you. Sport is next in Seven's Morning News, including a look at big weekend ahead in the AFL. And the City versus Country match shaping up as a battle for the Blues. City and Country do battle tonight in the second match on the Rugby League representative calendar. City coach Tim Sheens has defended the fixture, saying the game is important for any Origin hopeful. Despite calls to scrap the match from next season,

City coach Tim Sheens says the annual match against Country is still an important part of League's landscape. Sheens says both teams should see the match as a stepping stone to the Blues side. New South Wales coach Graham Murray claims as many as six Origin jerseys will be up for grabs for the first match against Queensland.

In AFL, St Kilda and Geelong open up round 7 tonight. The Cats are looking to snap a four-game losing streak, while the Saints' Robert Harvey will be playing a club record 324th game. Brisbane will be hoping to put a controversial week behind them, when they meet Hawthorn tomorrow. Lions mid-fielder Jason Akermanis will play for Suncoast in the curtain-raiser, after he was dropped by the team's leadership squad for failing to meet team guidelines. I particularly asked the group to close down ranks. Of course we know what has happened the last three days. That's something we took on board and Aker went outside that. Socceroos star Harry Kewell says winning this weekend's FA Cup final against West Ham will be the perfect lead-in to next month's World Cup. Kewell will be looking to join countryman Craig Johnston as a Cup winner in Liverpool colours and is confident he's at full fitness for the clash. He'll then fly to Australia to join his Socceroos team-mates ahead of the match against Greece on 25 May. The Brumbies will be looking to secure a Super 14 semifinal spot tonight, when they meet the Crusaders in Christchurch. They need just one point from the clash to clinch a place in the semis,

but they will be without stars Matt Giteau, Stephen Larkham and George Gregan. The Reds will also play tonight against the Highlanders in Townsville. The Force and Waratahs will play tomorrow. A look at the weekend weather up next in Seven's Morning News. What you watch on commercial television has been classified to comply with a Code of Practice. Programs carry classification information and warnings. Some programs can only be shown at certain times. Classifications are designed to help you decide what you and your family watch. If you'd like a copy of the code, visit our website for more information, or write or call us at: A look at the national weather. That's Seven's Morning News to now. We will keep you up to date throughout the day and in our bulletins at 4.30 and 6.00. I'm Ann Sanders. Thanks for your company. Happy Mother's Day to all the mums for Sunday. Captioned by Seven Network.