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(generated from captions) This program is LIVE captioned. This morning - Back on dry land, of a rescued Russian sub. the lucky crew for Discovery's return to earth. All systems go And, oh so close! in the second Ashes Test. England snatches victory with Chris Bath. This is Seven's Morning News Good morning. The Russian sailors trapped in a submarine rescued after more than three days at the bottom of the Pacific Ocean with their families. have been reunited has ordered an official inquiry President Vladimir Putin

as he faces criticism his Navy's outdated fleet. for failing to upgrade

The happiest of all happy eninnings

for the seven sailors and the whole

of Russia for most people had

certainly feared the worst for them.

Yet they did look remarkably okay

as they touched dryland again.

Still having spent nearly four days

in a cold dark tube of the sea bed

with little air left to breathe

exhausted. they must surely have been

These were the conditions then rescue team out in the Pacific. that confronted the British propeller mechanisms The 13.5m-long Russian submersible which all had to be cut through wrapped in long cables before the sub could be freed. and took just five hours But the operation went perfectly with only one technical repair. to the surface And after that the sub floated to open the hatch themselves. and the crew were able so well together For us to be able to work and with the Americans with the Russians out to the scene very, very quickly in getting our equipment here and we have saved these men's lives. has been proven in that naval commanders there was elation. Among the watching Russian the men's condition as satisfactory Russia's Defence Minister described their endurance and strength of will. and congratulated them on SPEAKS RUSSIAN He then thanked the British

for offering the hand of friendship. He then thanked the British Yet amid all the happiness about what it all means the dark question about the quality of the Russian Navy in recent years which has suffered so many problems by President Putin and why the promises of modernisation seem to have been so empty. enters a new era tomorrow Federal Parliament taking control of the Senate with the Federal Government for the first time since the 1970s. it's a dream come true. For the Prime Minister had plenty to contemplate John Howard today. as he arrived at Parliament House The new composition of the Senate something he has long dreamed of - delivers the Prime Minister control of the Parliament.

that they have a tough job ahead Opposition parties are acutely aware estimates committees and fear reports they'll nobble is an abuse of that power. Estimates are about accountability how we spend their money and about the public knowing and what decisions Government takes. the Parliament starts And a day before the Senate's accountability powers. this Government is determined to - Sweeping industrial relations reforms facing the new Parliament. will be one of the headline issues

against the changes With the union campaign showing no signs of slowing down, is still some months away the Government

outlining exactly what it plans. from producing the legislation It's a big issue for the community. It's certainly a big issue for me. be working hard on that one. It's my portfolio, so I'll certainly has an extreme attack in mind The Howard Government

on the rights of working people against it. and we'll continue to campaign Telstra is another major issue Completing the privatisation of on the Howard wish list some of his Coalition senators but first he has to win over and that could prove expensive. came this prediction Out of left field today new-found power that as a consequence of his to introduce the GST on food. the Prime Minister is planning It wouldn't surprise me at all if the next step thing the Senate denied John Howard, wasn't to bring back the one last thing the Senate denied John Howard,

a GST on food. Drought-stricken farmers on $600 million have apparently missed out in Federal Government assistance. The Sydney Morning Herald reports and bureaucratic bungling tough rules, red tape more than half the available funds. are preventing farmers accessing more than $1 billion Government ministers claim to struggling farmers. has been given out about 40c for every available dollar. But so far they have only received are reportedly working with children 89 convicted sex offenders after their bans were overturned. Sydney's Daily Telegraph, According to in New South Wales some could be working teachers and youth workers. as school bus drivers, Working with Children Check system. The exemption allows them to pass the Child protection groups are outraged should have been kept informed. and say the public Ken Moroney is urging other States New South Wales Police Commissioner a new system of abduction alerts. to introduce of kidnapped children Queensland already broadcasts details Amber Alerts in the US. based on the introduction of The following introduction of the

amber alert in the US that alert

system has been responsible for the

safe recovery of over 150 children

and seen temple recovered unharmed

and returned to their families. and taxi and bus companies Under the system, media outlets details of abducted children. would work together to broadcast The man accused of killing Sydney housewife Kerry Whelan

Sydney housewife Kerry Whelan eight years ago at the start of his trial. has arrived in court this morning

Bruce Burrell has pleaded not guilty

of Mrs Whelan. to the kidnapping and murder She was last seen in May 1997.

Her body has never been found. 16 weeks. The trial is expected to last has just handed down its ruling The Industrial Relations Commission affecting workers and their families. on a vital test case flexibility in award conditions Employers had argued for greater

to make more time for their families. claiming it would allow workers joins us live from Melbourne Reporter Peter Morris with the commission's ruling. what has the commission decided? Peter,

The unions are very happy with

this Chris and as part of their

claim for working parent they were

hoping to achieve a two-year unpaid

parental leave component t right to

part-time work when parent return,

flexible working hours and the

choice of any employee's workplace

location all designed to try to

accommodate woking families and

better care for children. Now what

the full bench of the Industrial Relations Commission this morning

has agreed to is unpaid parental

leave, extended out from 12 months

to two years, and then an employee

is able to take on part-time work

after that two year period until

their children are at school so

they see that as major win. Also

maternity leave requested by both

parent can be pushed out to about 8

weeks now from a week so on those

two key points the unions are

extremely ecstatic. They say it is

one of the major things to have

happened since the achievement of

the 8-hour working day and set

benchmarks for the future

Did employers get anything they

were asking for?

The employers are saying they are

cautiously optimistic this will

work. They were happy with the full

bench's approach to this, that

there was I guess a degree of

caution to the whole thing that the

full bench didn't make sweeping

reforms. They have put a trial

period on it and they say a

reasonable time should elapse then

the situation or the amendments

they have made should be reviewed

so to that end the employers are

quite happy. They are still

speaking upstairs at the moment so

I guess we find out a little later

on as to what their full digestion

of this is and the impact. One of

the concerns they have though is if

employees are directly negotiating

with their bosses that this could

degenerate into something that will

end up in some sort of unfair claim

or some sort of tribunal that it

may not be workable. They are

worried if these things are set in

concrete that their flexibility is

taken away from them so that is a

concern, also the cost to

businesses if there is flexibility

that is set in concrete on that

employees have the right to make

these sorts of demands what it will

cost them so they are the concerns

and we are still hearing about them

Quickly, will the Government's

industrial relations changes have

any impact on this decision at all?

We under that the changes that

will be made by the Federal

Government ahigh to national awards

and certainly this component of a

national award will be left alone

so that these changes will stand

and that it will not be affected by

any changes that will happen

federally in the coming days and weeks, Chris

Thank you Pete. The crew of the space shuttle Discovery will be back on earth this evening. They're due to touch down in Florida around 6.30pm eastern time. While memories of the Columbia disaster will make it a nerve-racking re-entry the seven crew and NASA are today feeling confident. Seven's US reporter Louise Pennell has more.

Louise, it appears it's all systems go.

According to Discovery's crew

everything is running smoothly and

as you said the pre-dawn launch

business 8 hours away, in fact you

can see a white tiny dot in the sky

on the east coast of America with

the naked eye and on board that dot

are the astronauts, they are

taking their last sleep break after

a very busy day. They had some

final media interviews before they

checked the flight control system

then they used a computer simulator

to practice the landing and

although they say they have the

memories of the Columbia tragedy

with them, they are confident the

re-entry will go according to plan.

Let's listen to Discovery's

commander Eileen Collins

I think Discovery is a great shape

it performed well and this morning

we did a flight-control system check-out, everything checked out

fine. We will align the measure

many units. Today we also fired all

of our jets so we are in pretty

good shape. The inside needs more

work, we need to put up the seats

and get our pressure ready for

entry and we will be doing that for

the rest of the day but I'm

confident about the entry and I

have been thinking about the

landing for the last couple of days

Astronaut Andy Thomas is fly tinge

flag for Australia?

Chris, at 53 this will be his last

mission and I'm sure his family

will not be happy until he is back

on earth but his father who will be

watching the landing if his home in

Adelaide says he is nervous but he

has the utmost confidence in his

son and the Discovery crew and Andy

Thomas of course has been in

constant email contact with his

father over the 13-day mission and

he told his father that he is

confident that everything will go

according to schedule. And also

some amateur radio operators from

Australia had a chance to speak to

Andy while he was in space and we

have just a ship yet of their conversation. Let's take a listen

We are right tomorrow coastline of

Queensland right now as near as I

can tell and heading north-east towards daylight

Louise, even if there is a perfect

landing there is still a cloud over

the space shuttle program itself

That is right Chris. Celebrating a

success full mission will be almost bitter sweet

As things happen in space they

sometimes go awry and it seems our

satellite has gone down. Sorry

about that, but the crew of the

shuttle Discovery due to touchdown

this evening eastern time. And we

will bring you the shuttle's

re-entry live night in Seven News. Next though, our business and finance report. And we meet the competitors in the Formula One of the skies. The Asthma Foundation is warning Australians over 55 to recognise respiratory symptoms early especially during winter. Studies show asthma is commonly mistaken for a simple cold or flu and as a result can go undiagnosed. A virus triggered life-threatening symptoms for 56-year-old asthma sufferer Marion Reece. I had to go on life-saving machines as result of it. Doctors say it's a worry, especially for people over 55. That's the time in life when the largest number of deaths occur from asthma and we're trying to reduce those. Asthma is harder to diagnose in older people because of other complicating medical conditions. It aggravates the breathlessness that already exits from other conditions such as heart disease, smoking-related chronic bronchitis and emphysema, and of course in people who are obese. It's thought half of the people in that age group are unaware they have asthma, because it usually follows a cold or flu in the winter months. They consider this the end result of a viral infection. But in fact it lingers and early intervention will help them considerably. Australia has the third-highest incidence of asthma in the world, with over 2 million sufferers. It's estimated this will increase by 25% within the next four decades.

The symptoms to look out for include breathlessness, wheezing, coughing, and chest tightness. People can expect to undergo a lung-function test and treatment with ventilation, if necessary. The Asthma Foundation has more information. Two more men have been charged over last month's failed London bombings. The 27-year-old Ibrahim Said and 23-year-old Ramzi Mohammed

are accused of planting bombs on the transport network and have been charged with attempted murder. jpppppppppppppppppppppppppppppppz They will appear in court tomorrow. A third man, Yasin Hassan Omar, has already been charged in relation to the attacks. Search engine giant Google has been asked to remove satellite images of Australia's nuclear reactor. The head of Australia's nuclear energy agency, Ian Smith, wants Google to delete the Lucas Heights reactor from its Google Earth program as a safety measure. The free online program allows users to zoom in on almost any building in the world. Google Earth censors the White House, but aerial shots of sensitive Australian sites

such as Parliament House in Canberra and the secret US spy base at Pine Gap are posted online. The Formula One of the skies is air racing. It's a sport not for the faint-hearted.

The latest round got under way over the weekend in the skies above Longleat in Britain.

Imagine struggling to sit upright

with an elephant resting on your

shoulders as you try to fight with

the controls of a light aircraft.

Well that is apparently how these

pilots feel as they pull up to 9G

on this three-dimensional sleigh

level course, the overall aim of

today was to find the world's

greatest racing pilot in this the

UK leg of the red bull air race

I'm amazed at how lucky I have

been to to the have any problem

other than the fuel tank problem.

The engine itself has been doing

great a lot of power out there

Each 10 pilots have to fly around

the course against the clock but it

is not only about speed they must

also have to perform stunt like

this through the inflatable cones,

hit one and they can get penalised

and run the risk of losing control

of their plane

I cut some corners and it was kind

of hairy, pretty close to buy lopbs

but it all worked out

The planes are made out of the same

materials as those used on Formula

One racing cars but no matter how

finally tuned the aircraft if the

pilots themselves are not at the

peak of fitness this level of

agility is simply not possible

They have to be really fit, they

have to be strong athletes and they

are very used to it, they have to

practice a lot to get their bodies

used to It the winner of this leg

was Mike from the US, he managed

the course with all its twists and

turns in 2 minutes 54 seconds, a

great deal of skill and possibly an

equal amount of good luck in the air. To business and finance news. Joining us is Westpac's global head of economics, Bill Evans. Good morning, Bill. The Reserve Bank releases its quarterly statement on monetary policy today. It should give us an idea of its plans.

Yes, Chris, look in May they

indicated that they would not be

surprised if interest rates had to

rise further in this cycle. But at

the same time they were concerned

that domestic demand had slowed and

there were question-marks over the

world economy. This time the world

economy looks much stronger than it

looked in May, particularly the US

economy, the domestic demand

numbers have picked up soy think it

is extremely likely that they will maintain that sentiment that

interest rates are likely to rise

further in this psych stkpwhrl bill

the Aussie dollar down overnight

Yes, down to 76.80, peaked around 7

7.40 over the last couple of days.

Look, all to do with the strength

of the US labour market numbers,

the market expected a number about

150,00 less, a number came in over

200,000 plus about 40,000 of

provisions so a hugely stronger

number than expected which pushed

up US interest rates and made the

US dollar attractive

Is that the ekten of the US job

figures on the markets

The US share markets sold off velt

of that because it indicates the

Federal Reserve will keep raising

interest rates and we will see

another interest rate next wreak so

US shares sensitive to interest

rates sold off but awe has gone the

other way because our resource

shares, oil shares do well when the

world economy looks strong, a

strong US economy is good for those

shares so in fact we have gone up a

touch which is indicative of the

strepbgts of our market at the

moment Thanks Bill. Next in Seven's Morning News, the latest in sport. And it's level-pegging in the Ashes series

as England takes the second Test. England has levelled the Ashes series at one apiece with a thrilling win in the second Test at Edgbaston. Needing 107 runs for victory, the Aussies fell just two runs short in one of the most amazing finishes in Test cricket history. Trailing by 107 runs with just two wickets in hand the Aussies were not expected to present too many concerns for England on day four, but Shane Warne and Brett Lee had other ideas. The pair combined to add 45 runs in a defiant ninth wicket stand, but when Warne was dismissed any hope of victory for Australia looked to go with him. COMMENTATOR: Got him. Well done, Flintoff. Michael Kasprowicz joined Lee at the crease as the man the Poms call Grievous Bodily Harmison tried anything to remove them. England's frustrations continued to grow when Simon Jones grassed this chance with the Aussies 15 runs short of the target. It got to him well and truly. But he didn't suffer for too long. His namesake behind the stumps sent England into hysteria. RITCHIE BENAUD: Jones, Bowden... Kasprowicz the man to go and Harmison has done it. Despair on the faces of the batsmen and joy for every England player on the field. will be questioned by the NRL today Manly officials will be questioned by the NRL today after it was alleged the club committed a minor technical breach. Former Waratah Sam Harris was listed to play in the No.6 jersey during the Sea Eagles' win over Brisbane yesterday but instead came off the interchange bench wearing No.21. The Wests Tigers moved into the top four after coming from behind to defeat Canberra yesterday. The result is the sixth consecutive win for the Tigers and sets a new club record. The Tigers now have their eyes set on claiming a home final but face a tough final few rounds. In AFL - Essendon coach Kevin Sheedy believes the Swans are serious contenders to win this year's AFL premiership.

Sheedy made the comments after watching Sydney beat his Bombers in Melbourne for the first time since 1989. The win consolidates the Swans' place in the top four. The Wallabies' backline stocks will be tested as they prepare to face the All Blacks in their Tri-Nations clash at Telstra Stadium on Saturday night. Chris Latham is the latest concern. He is battling a hamstring problem

and could join Mat Rogers, Wendell Sailor and Stephen Larkham on the sidelines. Aussie Troy Corser has maintained his lead at the top of the World Superbike Championship overnight. Corser won the first race but a mistake in the second cost him a shot at scoring the double. Another Aussie Chris Vermeulen rode his Honda to third in the last race to be in second in the overall standings. I'll be back with all the weather details after this break in Seven's Morning News.

My world vision is that there's no poverty, no hunger, and everyone has an opportunity in life. with an urgent appeal to all Australians. to help 10,000 of the world's poorest children. You see so much poverty and you feel like I can't do anything, you are making an impact. Child sponsorship provides not only for the child, but for the community All it takes is a phone call. You can choose the country the child's from, the gender. but for us it's very little. WOMAN: We chose to sponsor a child through World Vision Finally you've just got to make the decision yes, Sponsor online or call 13 32 40 now.

To the weather now. A fine day in most regions as a high dominates over the centre. But the high is directing moist, south-westerly winds

on the central and northern Queensland coasts producing some showers. Showers will clear in Victoria but continue in parts of Tasmania.

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 Chris Bath. Thanks for your company. Have a great day. Captioned by Seven Network Email -