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Live.

A Turkish passenger plane

crashes with 134 people on

board while trying to land in

Amsterdam killing at least 9

and injuries dozens. The big

job losses continue around the

country and warnings things are

only going to get worse. The

lone surviving gunman of the

Mumbai attacks that claimed

more than 170 live assist

charged with murder and waging

war against India. And

Australia leaves out the spinners paving the way for

test against South Africa. three debutante in the first

Good morning, it is Thursday

the 26th of February, I am

Virginia Trioli. And I am Joe

O'Brien. The top story on ABC

News Breakfast this morning - at least nine people are dead

and there are fears that number

could rise after a Turkish

passenger plane crashed in

Amsterdam. 134 people were on

board. When the plane went

down as it tried to land in

light fog at the Dutch

capital's Schipol Airport. The

Turkish Airlines plane crashed

in a field just short of the

runway. Officials say more

than 80 people were taken to

hospital. 25 with serious

injuries. The BBC's Clive

Myree has the story. The

runway was just a few hundred

yards beyond this field but the

Turkish Airlines jet couldn't

make it. Emergency crews were

on the scene within minutes.

But the muddy conditions meant

tractors had to be used to

ferry away those lucky enough

to survive. And those who

didn't.

Several hours after the crash

three crew members who perished

were still inside the cockpit. Once investigators finished

their inquiries the cockpit can

be cut open and the bodies

removed. So what happened to

flight TK 1951? Well all

seemed well as it made its

final approach to Schiphol

Airport around 9.30 local time

this morning. The landing gear

was down but steadily the nose

rose higher and higher. At

this point I realised that I

was hearing engine noise but it

wasn't coming from that plane.

Combined with the side of a

plane which was travelling

very, very slow giving the fact

it was still 3km away from the

runway. Approaching its designated runway from the

north the plane fell short.

Crashing into a field, and

breaking into three pieces.

But there was no fire or

explosion. The fuel tanks

remained intact. It is

believed the tail hit the

ground first with the already

deployed undercarriage being

ripped off. Weather conditions were good this

morning when the plane came

down. The skies were overcast

but visiblity was fine and the

winds were light. Crash

investigators have been pouring

over the wreckage all day.

Trying to work out just what

went wrong. Anxious relatives

received news of loved ones who

were on board alta makeshift

crisis centre. For some their

worst fears were realised. For

survivors of the crash miracles

do happen TRANSLATION: I was

scared I wouldn't see my

children again. That's about

as scary as you can get. The

black box recorder has now been

found. Witness to one horrific

tragedy that so far no-one can

explain. In other news this

morning, the head of Pacific

Brands says clothing

manufacturing in Australia no

longer provides a competitive

advantage. The company owns

businesses including Bonds and

Berlei and has announced it

will cut more than 1,850 jobs.

It is aiming to find $150

million a year in savings and

will look at sells assets and

axing brands. The PM is

expected to today deliver the

first report on efforts to close the gap between indigenous Australians and the

rest of the population. The

report was delayed by the

Victorian bushfire emergency.

The Northern Territory Senator

Nigel Scullion says the

government's inaction is a

disgrace and the situation is

in many Aboriginal communities

has worsened in the last year.

The insurance claims from the

Victorian bushfires have so far

cost more than $800 million.

And are expected to rise much

higher. 6,000 claims have been

made by people who's property

and homes were damaged by the

fires. And according to the Insurance Council of Australia

60% have now been assessed.

The Indian authorities have

formally charged the man

identified as the lone

surviving gunman of the Mumbai

attacks and charge ed him with

murder and waging war against

India. Mohammed Ajmal Kasab

could face the death penalty if

convicted. The severely

disabled 6-year-old son of

Britain's Opposition Leader

David Cameron has died. Ivan

Cameron suffered from cerebral

palsy and severe epilepsy.

PM's Question Time was

suspended overnight in British

parliament as a sign of respect for David Cameron and his

family. Returning to the

jobs crisis now. And how the

major parties have been

reacting to Australia's

economic woes. Ben Worsley

joins us from Canberra. Now

Ben just how have the political

parties been discussing these

latest job losses? Well the

opposition's laying the blame

squarely at the feet of the

government. And claiming that

it is evidence that it's

massive stimulus package before

Christmas simply didn't work.

The unfortunate thing for Wayne

Swan is we saw yesterday was

his reference to a socks and

jocks-lead recovery when he was getting evidence from some

major retailers about how that stimulus package was affected

sales. Now the government is

saying it proves why they had

to act before Christmas, and

also shows how much things

would have been worse without

that stimulus action. Now, the

sums aren't exactly in just yet

as to whether that stimulus package did have a major

effect. Treasury officials

were before the Senate

yesterday siting increased ATM

activity, increased retail

figures, as proof that there

was some indication that it did

work. Anyway, the opposition

is very much seized on these

job losses. The government's

accusing them of popping champagne corks every time a

job is lost in Australia

because it adds to their

political advantage. Joe

Hockey is obviously the new

Shadow Treasurer. He was on

'Lateline' last night. Let's

have a quick look at how he

articulated the opposition's

response to yesterday a

news. There is a lot the

government can do to stop

further job losses. And single

most important thing the

government can do is to have a

message of hope. A message

that says that they are

confident that we can get

through this significant

downturn. And I would urge PM

Rudd to take a leaf out of

President Obama's book today,

where the message was hope and

aspiration. And a belief that

America can get out of it, and if the President of the United

States can do that, surely our

PM can do the same. Joe Hockey

speaking there on 'Lateline'.

Isn't it a case Ben we have

heard Kevin Rudd saying over

and over that Australia is in

one of the best positions in

the world to handle all this?

Kevin Rudd's faced the

difficult task admittedly of

having to get across mixed

messages. He has, yes, indicated and rightly, that

Australia is in a better

position thanks to a big

surplus. Well which we used to

have. And higher interest

rates than many other country,

therefore we had the flexibility both in the monetary policy sense and

fiscal policy sense to tailor

Australia's response to the

global slow down. But he has

also been going on - you would

almost say ad nauseam with that

serious tone of delivery,

saying things will

gettingingly, thing - ugly,

things will be tough. Joe

Hockey is obviously honing in

on that. I would suggest Kevin

Rudd has his work cut out transforming into Barack Obama

on a number of fronts. And

also seriously it is more complicated than that.

Confidence is vital. But

Pacific Brands was facing $500

billion debt and a lot of

pressure from its banking

investors to restructure.

Which is a nice way of saying

sacking a lot of people and

moving overseas. You can be

guaranteed the back and forth

over job also continue today

and the opposition, regardless

whether it is celebrating job

losses or not, will continue to

try to use it to its political

advantage. Just turning to

another issue, the Defence Minister Joel Fitzgibbon has

been coming under a bit of

pressure over this Army pay

dispute. Yes, his performance in parliament yesterday was

almost hard to watch. He is a

man under intense pressure. He

ordered his department a few

months back to fix this pay

dispute. It apparently ignored

him. Which is a terrible look for a minister. He did it try

to act but it didn't work. Now, interestingly who has come

to his defence? No-one other

than Benjamin Netanyahu -

Brendan Nelson. The former

defence mention. I don't know

if Malcolm Turnbull is too

appreciative of that. He says

the defence department often

ignores orders from its

civilian masters. When they

are called for the Defence

Minister to be sacked out pops

the former defence leader

jumping to his defence. All

this happened within a minor

reshuffle within the government

ranks, Joel Fitzgibbon is

losing one of his assistants,

just quickly I will go through

the winner, Mark Arbib is a

name that not many people will

know but a name people will

know from now on. He is now

Parliamentary Secretary for government service delivery.

Which means he is basically the

PM's right-hand man. Bill

Shorten and Greg Combet have

also been promoted and Mike

Kelly has been moved into the

climate change and water

department. Two things we can

see. Who are the likely next

raft of Labor ministers and

Kevin Rudd obviously thinks he

needs to bolster the climate

change department. So he has

put Greg Combet and Mike Kelly

towards that. Ben Worsley in

Canberra. Thanks very much for

that. Mark Arbib one of the

key architects of the Rudd win

and Rudd ascendency. A bit of

a reward there as well. The

thing about the reshuffle I

don't understand is who are the

losers, wi have heard of the

winner s. I think Joel Fitzgibbon has lost out. He

has got fewer people to help

him with a mammoth portfolio

and one he appears to be

struggling with. Top human

rights commission claims there

has been significant violation

in a handling of a mud flow

disaster. The government says

both the government and company

that many blame for the

disaster has failed to look

after the victims and the

commission will try to bring the case before the courts.

It's a disaster that just

keeps on getting worse. More

than 3 years, mud has been spewing from the ground in east

Java. Thousands of people have

been displaced and 13 villages

lost. Now Indonesia's human

rights commission, Komnasham

says the government hasn't been

serious enough about stopping

the mud or looking after the

victims. TRANSLATION: The

government must immediately

resolve this. The government

has a duty, a responsibility to

respect, protect, and uphold

human rights as stated in the

law. Mining company Lapindo

which was drilling at the site

where the mud flow started is

blamed by many for causing the

disaster. It is owned by a

government minister, who is

also Indonesia's richest man.

In its report, the commission

said there had been significant

human rights violations, and it

would now try to bring those before the courts.

TRANSLATION: There are 15

times of human rights

violations. The commissioner

says. The right to life and safety, to the right to

housing, food and prosperity.

Lapindo claims the mood flow

is a - mud flow is a natural

disaster and has never expected

responsibility. It has agreed

to pay some victims

compensation. Many are still

waiting for the money. The

human rights commission says

Lapindo has been more concerned

about preserving its image than

helping the victims.

Now the front pages of the

major newspapers around the

country this morning. And the

'Financial Review' reports the

Federal Government is under increasing pressure after

Pacific Brands announced it

will axe 1850 jobs. 'The Age' says the Pacific Brands

decision will have potentially

drastic implications for local

industry as the company

announced most of its remaining local production will be

transferred to Asia. The

government has warned the

nation to prepare itself for

more large scale job losses as evidence of the global

financial crisis hits home. Says the 'Sydney Morning

Herald'. Australia faces a

longer period of low growth,

higher debt and higher

unemployment than predicted

'The Australian' reports. The

'Canberra Times' also reports

that massive job cuts are on

the way. The Brisbane 'Courier

Mail' says Anna Bligh's

election campaign has suffered

another setback. This time in health after an investigation

into the sexual assault of a

nurse finds health bureaucrats

failed to take appropriate

action. Almost 40 South

Australian schools will be

closed as the state prepares

for extreme fire danger.

According to the Advertiser.

The 'Daily Telegraph' reports

a teenage boy died after taking

part in a fight club style

event after school. The

Northern Territory news says a

man died shortly after being held on the ground by four

police and sprayed with

capsicum spray. The 'Mercury'

says the Bartlett government

may be forced to buy and run

Tasmania's ailing rail system

after it plans to sell the operating company collapsed.

They also have the story of a

little girl's quest to find her

lost stuffed rabbit. Finally

former AFL star Garry Ablettt

has advised Ben Cousins to make

the most of his second chance

as he makes his AFL comeback

for the Tigers tonight.

Reports the 'Herald Sun'. And

if you would like to send us

your feedback on any of the

news stories we are covering

today send us an email.

The top stories on ABC News

Breakfast this morning - at

least nine people are dead

after a Turkish passenger plane

crashes while trying to land at Amsterdam Schiphol Airport.

Around 80 others were injured

when the plane with 134 people

on board crashed in a field

just short of the runway. The

head of Pacific Brands says

clothing manufacturing in

Australia no longer provides a

competitive advantage. The

company has announced it will

cut more than 1850 jobs in an

effort to find $150 million

worth of savings and the

Reserve Bank and prominent business leaders are warning

things are about to get worse.

The man identified as the lone

surviving gunman of the Mumbai

attacks has been charged with

murder and waging war against

India. Pakistani national

Mohammed Ajmal Kasab could face

the death penalty if conikt

haved - convicted over attacks

that claimed more than 170

lives.

Let's take a look at finance

news now and the chief executive officer of Pacific

Brands has defended the

company's decision to cut 1800

jobs. Pru Morfett told 'Lateline' business the

decision was not taken lightly.

There is no longer a long-term

sustainable advantage for us

from local manufacturing. The

only sad thing about it for

Australia is that 1800 people

are going through a significant

transition in their life. In

terms of - that is quite

difficult. There is no doubt

about that. Pacific Brands's

decision to axe nearly 2,000

workers is no surprise to three

men at the heart of the

economic downturn. Leading liquidators Tony McGrath and

Steve Sherman as well as the

Reserve Bank Board member Roger

Corbett have told business

leaders in Sydney the worst is

yet to come. Andrew Robertson

reports. Liquidators don't like

to say too loud, but economic

downturns are good for

business. We certainly went

into an increase towards the

end of last year. That's

probably flattened out

somewhat. It won't stay flat

for long if fellow liquidator

Tony McGrath's take on the

economy is right. We haven't hit the bottom yet in

Australia, I think we are still

very much at the early stages

of unravelling what we have

before us. Tony McGrath says

there have been no real

surprises in the heavily

leveraged companies which have

collapsed under the weight of the global financial crisis.

What he says will be a surprise

is what lies ahead. Ultimately

there will be good businesses

who may suffer cash flow issues

and because of the state of the debt markets it's very difficult to refinance.

Retail will suffer. Building

industry is suffering. New project finance is difficult to

find, as Tony said. The debt

market is extremely tight for

new projects and what I think

what you will see is over the

next 12 to 18 months the cycle

of a tightning of general

spending by businesses. Roger

Corbett who sits on the board

of the Reserve Bank agrees the

outlook is bleak. Despite the

RBA's official line the first

glimmers of recovery may appear

towards the end of 2009 Mr

Corbett says he left a December

Reserve Bank Board meeting thinking to himself the

economic data for January and

February would set the tone for

the year. I think it's fair to

say most of the numbers we have

seen have been a lot worse than

most people anticipated. Roger

Corbett is also a director of

US retail giant Walmart and he believes the different corporate structure of the

United States is one of the

biggest contributeders to the global financial crisis. In

the United States the rolls of

chairman and chief executive

are usually held by the same

person, while in Australia

those roles are split. Which

means the management of US

banks have a lot more power in

the board room than their counterparts in Australia.

This would prevent or make it

much more difficult for the

board to act as an independent

assessor of both the risk

profiles the bank was taking

and of course the remuneration

that a lot of these people were

getting that was based on

taking higher than sensible

risk. Mr Corbett says he

supports the Rudd Government's

fiscal stimulus package, but

says the hard part for the

government when the recovery

comes will be to cut spending

and allow the economy to resume

normal operations. Let's take a

look at the markets now. The

Dow is trading down sharply

falling more than 1%. The

NASDAQ S&P 500 have also

fallen. The FTSE closed

slightly higher. In commodities -

In a few minutes Vanessa

O'Hanlon will be here with a look at the national weather. .

Also ahead we will have a

review of some of today's newspapers. This morning we

will be joined by Mark Forbes

the deputy editor of the

'Sunday Age'. Now with sport

here is Paul. Good morning, it

starts tonight. The

Australia-South Africa test

series will decide the world

number one ranking and the

visiting Aussies may include

three debutantes for the first

test at the Wanderers ground. Bryce McGain has been left out

of the 12. It is expected Ben

Hilfenhaus or Philippa McDonald

will carry - Andrew McDonald

will carry the drinks. All of our young guys that played in

our serious specially have

lesht a lot from that and it is

a matter of putting that stuff

we have learnt into practice

into this series. We are

excited about this series.

It's a great challenge for all

of us, in particular probably

some of the younger guys in the

squad but as captain I am

looking forward to leading a

younger team here. I haven't

had a chance to get on the

ground and have a look at the

wicket. But a few guys were

out there yesterday and it was

soft and tacky yesterday.

There has been no rain this

morning which is obviously a

good sign for start of the

game. Hopefully we will

Republic - look at it this

afternoon and have a better

idea. We know Australia are

really come - competitive and

they will not give it to us

easily. We have to earn it,

which is a bigger sense of achievement for everything.

Pakistan's captain could not

break the world record for a

batsman he resumed for 306 on

day 5 but made on 7 more runs.

Pakistan thought it might win

when it took five Sri Lankan

wickets but time ran out and

the long anticipated draw was

declared. The NBL the Tigers

had a win over the New Zealand

Breakers last night. The final

score was 117-99. Luke Kendall

was the highest scorer with 25. And Ben Cousins will resume

his AFL career tonight. For

Richmond against Collingwood.

It will be the first for the

Tigers who rekrukted him

despite his drug addiction and

rehabilitation. A big crowd is

suspected but Cousins is

unlikely to play much more than

half the game. They are expecting more than 40,000

people for a preeseason game.

Just to highlight the frenzy

surrounding Ben Cousins at the

moment. As a keen AFL watcher

how do you rate his perform

ance, or what are you looking

forward to in his performance tonight based on what you know

of what he has produced

before, I will be looking to

see how light he is on his

feet. He seems to. He looks

lean. He always has been. But

with a couple of years off he

might just be a little bit - a

step behind some of the other

players. Particularly the

younger guys. So I will be

looking to see how quick he is

off the mark. In terms of

pace. In terms of pace. That

will be the big thing. If he

has maintained his pace will is

no doubt he can still be one of

the best players going around.

He is the sort of player that

quite feeds off the attention

and the focus and he loves a

crowd. And he like's crowd

focussed on him. So I think

that will play to his strength

and state of mind won't it?

Yeah and I think there will be

some relief for him he ecan run around on a football ground

without a camera being 2m away

for him. For the right

reasons. That's his playground

and he will be back out there

and running and bumping and

getting that physical

aggression out. Which he

loves. Are they playing him

where he is usually played

before? They will move him

through the midfield and Terry

Wallace at some stage this week

has said he will start him. So

he has got a sense of drama

too. He doesn't want to start

him on the bench. But as I say

I don't think he will play more

than half a game. I wouldn't

certainly play him for more

than that because you want him

to get a feel. A physical

condition back. Hopefully he

touches the footy a few times

but they won't care how well he

plays as long as he gets

through. Because it's a

preseason game. There is

nothing in it for either team

to win. Just the risk of

injury. To cricket. What's

your take on the team Australia

is taking into this test? The

conditions are set for pace and

swing, as we have been sort of

expecting. But Bryce McGain

has been left out of the 12

altogether. So it looks like

they will choose between

McDonalds and Ben Hilfenhaus.

It is unlucky for Bryce McGain.

He has been so close a couple

of times. But just the

conditions don't seem to be

suiting spin bowling there. So

they will take in Marcus North

at number 6 who will bowl a bit

of offspin if needed which

means will be down to McDonald

and Hilfenhaus. I think they

will go for Hilfenhaus because

he is faster and an X factor.

South Africa haven't played him

in tests. There will be three

debutantes out of the 11 players and Ricky Ponting will

be loving that because there

will be no real pressure on

those three at least, and I

think new side, new beginning.

Anything might happen. But has

to be said the toss is very,

very important. All said and

done, it may come down to who

picks heads and tails.

Because whoever bats first

will won't have to bat last

obviously. Thanks a lot Paul.

ABC News Breakfast can be

watched live on the web from

anywhere in the world. Visit -

Here is Vanessa O'Hanlon

with the weather. And we have

heard that there are schools

going to be closed in SA. I am

not sure if that's today or

next couple of day, but it's

not looking good in SA. It's

very hot over at the moment.

It has been declared a total

fire ban for all areas, except

north-east pastral, riverland and metropolitan Adelaide.

Cloud is moving through WA down

to the bite. This cloud will

trigger showers and storms,

mostly over the south. Cloud

over eastern Queensland will

cause a few showers and the odd

storm over the south-east.

Storms for the tropics with

monsoon cloud. In WA trough

and front will bring aculer

change with isolate - cooler

change with isolated showers

and thunderstorms.

South-easterlies will bring

showers to North Queensland and

the east coast. And hot in Victoria.

to tomorrow -

I will see you in half an

hour.

The top story on ABC News

Breakfast - at least nine people are dead and there are

fears that that number could

rise after a Turkish passenger

plane crashed in Amsterdam.

134 people were on board when

the plane went down as it tried

to land in light fog at the

Dutch capital's Schiphol Airport. The Turkish Airlines

plane crashed in a field just

short of the runway. Officials

say more than 80 people were

taken to hospital. 25 with

serious injuries. The BBC's Clive Myree is at the airport

and has the story. The runway

was just a few hundred yards

beyond this field. But the

Turkish Airlines jet couldn't

make it. Emergency crews were

on the scene within minutes.

But the muddy conditions meant

tractors had to be used to

ferry away those lucky enough

to survive. And those who

didn't. Several hours after

the crash three crew members

who perished were still inside

the cockpit. Once investigators

finished their inquiries the

cockpit can be cut open, and

the bodies removed. So what

happened to flight TK 1951?

Well all seemed well as it

made its final approach to

Schiphol Airport around 10:30

local time this morning. The

landing gear was down. But

steadily the nose rose higher

and higher. The point I

realised that I was hearing

engine noise but it wasn't coming from that plane combined

with the side of a plane which

was travelling very, very slow,

given the fact it was still 3km

away from the runway.

Approaching its designated

runway from the north the plane

fell short. Crashing into a

field, and breaking into three

pieces. But there was no fire

or explosion. The fuel tanks

remained intact. It is

believed the tail hit the

ground first. With the already

deployed undercarriage being

ripped off. Weather

conditions were good this

morning when the plane came

down. The skies were overcast,

but visiblity was fine and the winds were light. Crash investigators have been pouring

over the wreckage all day.

Trying to work out just what

went wrong. Anxious relatives received news of

loved ones who were on board at

a makeshift crisis centre. For

some their worst fears were

realised. For survivors of the

crash miracles do happen.

TRANSLATION: I was scared I

wouldn't see my children again.

That's about as scary as you

can get. The black box

recorder has now been found.

Witness to one horrific tragedy

that so far no-one can explain.

Clive Myree reports there.

Now the word's second largest

cruise liner the the queen

Mary II is sailing into Sydney

Harbour this morning. Philippa

McDonald joins us. Whereabouts

are you and what can you see?

I am right on Mrs Macquarie's

chair on the harbour and what

an awesome sight. The Queen

Mary II a whole 150,000 tonnes

of it, 23 storeys high, 2,500

passengers on board and

hundreds of onlookers. Let's

take a good look at the queen

Mary II. It has been cruising

for the past 90 days, some

people have paid a quarter of a

million dollars to have a

deluxe suite. We will have to

leave it there for a moment. I

am so sorry to interrupt you.

We have a dodgy link to Sydney

this morning. It is hard to

exaggerate the imagine -

Majesty of the ship. It is an

incredible vessel. As huge.

Phillipa will join us very

shortly. She will take us

through some of the facts and

figures. In other news todayed

het of Pacific Brands says closing manufacturing in

Australia is no longer a

competitive advantage. The

company owns businesses

including Bonds and Berlei ands

that announced it will cut more

than 1850 jobs. It is aiming

to find $150 million a year in

savings and will also look at

selling assets and axing

brands. The PM is expected to

today deliver the first report

on efforts to close the gap

between indigenous Australians

and the rest of the population.

The report was delayed by the

Victorian bushfire emergency.

The Northern Territory Senator

Nigel Scullion says the

government's inaction is a

disgrace. And the situation in

many Aboriginal communities has

worsened in the last year.

Mr The insurance claims for

the Victorian bushfires have so

far cost omore than $800

million and are expected to

rise much higher. 6,000 claims

have been made by people who's

property and homes were damaged

by the fires, and according to the Insurance Council of

Australia 60% have now been

assessed. Indian authorities

have formally charged the man

identified as the lone survive

ing gunman of the Mumbai

attacks with murder and waging

war against India. Pakistani national Mohammed Ajmal Kasab

could face the death penalty if

convicted. Almost 170 people

died in the attacks last

November. We will cross back to

Virginia now. There is

severely - I am sorry we are

actually taking you back to

Sydney now. Where of course

the world's second largest

cruise liner 'Queen Mary II' is

sailing in. Sorry we had to

leave you before. I think we

have our shot straight now. So

you rat - you are at Mrs

Macquarie's chair. Yes I am.

The 'Queen Mary II' is so

large it has to birth here at

the Garden Island naval base. So special security

arrangements there, for 2,50 passenger, 12 00 are Australians. Some have paid

about $15,000 for a 14-day

tour. You might remember that

two years ago when this ship

first visited, Sydney was in

grid-lock... public. I am

sorry, we will leave it for the

moment. We actually took some

earlier pictures of the cruise

liner sailing in three the

heads and in through the

harbour. Let's look at those

pictures. And it is actually

an experience or a shot that I

have been lucky enough to see

myself. This amazing cruise

liner sailing in the dark

through the heads, and across

the harbour towards Garden

Island where as Philippa

McDonald was telling you is the

only place big enough to hold

that ship. You can tell tr

Phillipa's reaction it is

pretty exciting to see. Tell

us how tall that ship is just

in terms of stories of

buildings so we can get a

comparison. There is very

little to compare this too. We

had the 'Queen Mary II' which

made its last voyage here two

years ago. But it is really

quite extraordinary. Everyone

very excited on the docks - at

the decks there. And as I

mentioned earlier people have

paid to have the really

beautiful cabins here about

$250,000. People have got up

at 3 o'clock in the morning to

come here, little kids, a

little boy I was talking to

before he said "I love ships.

When I grow up I want to build

a ship as big as this". I am

so sorry. We are certainly

going to leave it here and

leave it here ly. - finally.

We tried, It is difficult to

get this line working.

Philippa McDonald there

watching a awesome spectacle.

China one of the twoation markets crucial to Australia's

recovery has downgraded its

official growth forecast for

the year to 7.7%. A year ago

it was above 11%. So what is

going on right now with China's

so-called economic miracle?

ABC correspondent Tom Iggulden

travelled to one of China's

most important industrial

regions for some insight. Some

have already dubbed it the

great leap backwards. After 30

years of almost uninterrupted

economic growth, China is

spluttering. Growth slowed to

it about 7% at the end of last

year, down from almost double

that in 2007. The Chinese government's concerned enough

to be pouring just under $1

trillion Australian into a nation-building stimulus

package. They realise that if

economic growth falters there

is going to be a serious social

cohesion, social discontent

issue. Any spark in China's

domestic demand will be good

news for Australian miners who

supply China with iron ore and

coal. But trade consultant and

investment banker Jason Lee says there is bad blood from

the boom times that may come

back to haunt the miners. The

Chinese felt very bullied in

terms of the price hike. The

iron ore price has gone up some

600% in the last few years.

This time last year when

demand for iron ore was high,

China's steel mangers paid

record - makers paid record

prices during contract

negotiations. At this year

negotiations with demand low it

is the Chinese who have the

upper hand. What we are

hearing now, the market's

expecting a 30, 40% drop in the

contract and benchmark price

for iron ore during these price

negotiations. China's biggest

steel maker Bau Steel pulled

out of a schedule interview for

this story siting the

sensitivity for these

negotiations but the Chinese

economy is part of the story.

The economic miracle that's

happened in China over the last

three decades has been off the

back of exports. An those

experts are plunging. In

January they were down almost

18% koment paired to January -

compared to January last year.

The biggest drop for 1 years.

It is - 13 years. It is also

bad news for Australia. This

is one of China's big four

processing plants. It is part

of the sprawling text time ind

strid in the - textile industry

from the yang zee river delta.

Instead of growing as it has

done in the last decade the

company is fighting for

survival. Traps trance the

economy - TRANSLATION: The

economy won't recover very

soon. So this year we will be

very cautious in our

operations. At this time of

year the factory 's warehouse

will normally be packed to the

rafters with bales of

Australian wool as the industry

gears up for the new season's

fashions. Now it is all but

empty. The price of wool has

fallen by as much as 40% over

the last 12 months. And the

weak Australian dollar makes it

even cheaper. Still it's too

rich for Mr Yuah. Three things

are not yet clear. Firstly

overall demand hasn't been well

stimulate ed and the demand

from the north American market

is still very low. The

exchange rate for Australian

dollar is still unpredibilityable and we think

the impact brought by the

global economic downturn hasn't

been fully seen yet. In other

words he doesn't want to be

caught out with what could turn

out to be overpriced Australian

wool on his hands if things get

even worse. When his processed

wool leaves his factory it

comes to other factories like

this one that turn it into

fabric. Here again there are

glaring signs China's exporters are literally running out of

steam. Some of the expensive

European made machines are

ticking over to service the

dribble of short-term orders

from Europe and America but

many are not. By our guess the

factory was only running at

about half capacity, or less.

The owner of this factory

tells us at this time last year these machines were working

overtime to keep up with

demand. Now as you can see

they are lying idle waiting for

orders from over's to pick up

again. Maybe the light at the end of the tunnel is the support from the Chinese

government. It is offering tax

breaks to the textile industry

and cheap loans to struggling

factories. That could turn out

to be good news for's too.

TRANSLATION: - for Australia

too. 70% of our wool is imported and the majority of

the imported wool comes from

Australia. Therefore I think

that if we can boost the wool

textile industry in our country

it will be very beneficial to

Australia's wool production.

But while support packages may

keep industrial struggling factories ticking over they

won't fix the collapse in

demand from western customers

and there is no sign yet those

economies will rebound in the

short-term. , Tom Iggulden with

that report. For the first

time schools in parts of SA

will be closed today due to

Education Department is calling extreme fire danger. The

on parent whose are unsure if

their children will be affected

to call their school. To

explain the areas most at risk

we are joined by Hayley Conole

in Adelaide. Now Hayley first

of all how many schools are

going to be affected today?

There is about 40 schools that

are going to be affected. They

are isolated to the regional

areas of the west coast and the

Lower Eyre Peninsula. So that

includes state schools a

Catholic school and and

independent school as well.

3,000 students all all. West

coast to the site of some of

SA's bushfires in recent time,

in jantry 2005 we - January

2005 we had black Tuesday mine

people were killed in the Wa in

- where nine people were killed

in the Wangary fires so they

are not taking any risks at

all. Why has the Education

Department gone so far as to

shut down the schools in these

areas? Well as I mentioned

there is a significant history

of bushfires in those regions.

The environment there is quite

exposed to the elements. There

is a 40 degree plus

temperatures, strong northerly

winds and the other thing is

those extreme fire danger risks

are as their highest mid afternoon. Of course when

parents will pick up their

children from school. And they

will be in their cars and

considers what's happened in

Victoria they are just not

taking any chances at all. And

have some South Australian

firefighters been sent to

Victoria? They have. We have

got about 70 firefighters over

in Victoria at the moment.

They are helping out in the Murrundindi fires over there.

It has been a constant flow of

firefighters. They do five day

stints over there. So this is

probably about the fiveth

contingent that's over there at

the moment and we will be sending more later this week as

well. Is there a concern that

too many have left the state

and now the state is exposed

because you have got this

dangerous day? The CFS has

advised there are 15,000 firefighters or volunteers

ready to go at any one time and

that 70 is just a drop in the

ocean. That we can afford to I

guess to lose those

firefighters. They are

strategically taken from places

that aren't considered, the

most high fire danger risk. So

it is not leaving any areas

exposed And there was a South

Australian firefighter injured

yesterday? Yes. Unfortunately

a 39-year-old volunteer

firefighter, we believe from

the state's Mid-North, so

that's around the Hawker port

pir ry - Pirie region a few hour north of Adelaide was hit

by a falling tree while

fighting the fires. He has

been taken to hospital in a

serious condition but the CFS hasn't released any further

details on exactly how he is

going and what his injuries

are. Hayley Conole in

Adelaide, thanks very much for

that. Thank you. Now here is

how you can contribute to ABC

News Breakfast. You can send

email to -

You are watching ABC News

Breakfast. The top stories

this morning - at least neen -

nine people are dead after a

Turkish passenger - plane while

trying to land at Amsterdam's

Schiphol Airport. It crashed

in a field just short of the

runway. The head of Pacific

Brands says clothing

manufacturing in Australia no

longer provides a competitive

advantage. The company has

announced it is going to cut

more than 1, 850 jobs in an

effort to find $150 million in

savings. And both the Reserve

Bank and prominent business

things in Australia are about leaders are warning thin -

to get worse. The man

identified as the lone

surviving gunman of the Mumbai

attack s has been charged with

murder and waging war against

India. Pakistani national

Mohammed Ajmal Kasab could face

the death penalty if convict ed

over attacks that claimed more

than 170 lives.

Now for a look at the

national papers today we are

joined by Mark Forbes the

deputy editor the 'Sunday Age'.

Good morning. Good morning.

What's the first one you want

to look alttoday? The one the

can't miss and haven't been

able to miss over the past few

months if you are in Melbourne

has been the great comeback

saga of Ben Cousins. We love a

comeback. But I think the

'Herald Sun' has taken it to

new heights. Or lows today,

with the lifestyle and career

advice from Garry Ablettt.

Suggesting that Ben doesn't

blow it. y Ablett. Suggesting

that Ben doesn't blow it. It

takes a little of the breath

away. We had the front page on

the screen there. But I just find it interesting on the day

that we have got a company

losing 1800 workers and a lot

of them in Melbourne the

'Herald Sun' has opted to go

with a big front page splash of

that and pg.4 and 5 with four

different stories on the same

suggest. You wonder a little

where the news priorities lie

on this. Good luck to the

bloke and he is coming back.

But I think they have also done

a selection of sort of great

Australians of our times advice to Ben Cousins. They love

their AFL in Melbourne. It is

also just about knowing your

market isn't it? If you are

publishing the 'Herald Sun', a

quality tabloid like that that has a good connection with the

AFL scene, you go big on it.

Because they will move more

papers. So I think it's a very

smart editorat decision. And

talking about knowing the

market, the Sydney counter part

the 'Daily Telegraph' I think

has done a big special as well

on looking at McDonalds who

have done a new marketing

strategy where they are going

to - looking at where they can

boost prices and strangely

enough that seems to be in the

poorer areas of Sydney,

Melbourne and other parts of

Australia. So - You mean they

are only raising prices in

those areas? They have done a

survey of the - the 'Daily

Telegraph' has been leaked a

survey of where is the areas

that will most be acceptable to

higher prices. And for again

reasons a bit beyond me they

are saying that is in the

poorest area, particularly in

the western suburbs of Sydney

and Melbourne. And I think

it's something like a 15, 20%

increase to the price of a

happy meal. Maybe that's

linked in in because we heard

that story earlier about how in

tough times people will go to

fast food more frequently

because they think that's a cheaper option. That's right.

And so if they think they will

get a boost in clientele then

they may as well try to fatten

that margin as well. As well

as fatten everything else if

you eat too much of the stuff -

according to a film that was

released sel - several years

ago. I did have my eye caught

by a story on the travel

splurges of our jet-setting PM.

That has come from Steve Lewis

of the News Ltd and 'Daily

Telegraph' talking about the -

extravagance use and over $3

million spent since he came in

office. I must admit I did

raise my eyebrows slightly

because yesterday I noticed a

piece in 'The Australian'

talking about what sounds like

a fairly abortive Chinese

government funded trip to Tibet

taken a little while ago by one

Mr Steve Lewis along with Cameron Stuart from 'The Australian'. Interesting that

only two Australian journalists

got on to this and they were

both from News Ltd. Is this

just Fairfax resentment talking

here? With my freebie. Just

be clear about this. How much

has Rudd spent in $3 million on

overseas trips? 3.4 I think

since he has been elected, It

is Senate estimates time of

course so we are getting these

figures come out and a story

'The Australian' had on its

front page talks about in its

terms of jet setting of senior

education officials as well

trying to - going to events

here and there and spending a

whole. A happiness conference

they were at and several

hundred thousands spent on

that. These are gimmie stories

aren't they? They appear with

great regularity every year and

I think it's strange that we

don't accept our leaders at

least have to travel the world. Particularly in these times.

There is a line. No-one knows

where the line is, and it sort

of seems to shift depending on

the mood of the people and

there is a tolerance for a certain amount of spending right up to the moment where

there's not. And you never

know when that is. In these

tough times you would have

thought that figure would have

come down for the PM but if it

is a global financial crisis he

needs to be travelling the

world a little to work out - Do

you think so? To work out what's happening and how to

solve it. If I was Steve Lewis

I would try to space out my

stories a little bit between

the publication of taking China

ees government money to be told

the official version of what's

happening in Tibet and

attacking our PM. Anything

else on your list this morning?

Yeah, obviously the Pacific

Brands story has been pretty

big today and my paper the

'Age' has gone bigger than

most. And I suppose it's a

question of do we really think

that this is the beginning of

the end for Australian clothing

manufacturing? The beginning

of the end has been coming for

a long time of course. The

phasing out of tariff support

and the - successive closing of

manufacturing. Do you think it

is the last gasp? Is this it?

I suspect we are going to be

in for another around of debate

s about protectionism. That

whole idea of free trade and

this push we have been on for

so long as being the accepted

sort of orthodox is going to

come under pressure in these

times. There are still tariffs

on the TCF industries but they

are being phased out over the

next couple of years. But

there be calls for that to be

frozen now. I think people

will be pushing for the

reintroduction of tariffs, I

notice with Pacific Brands

while they are saying there is

no future in Australian

manufacturing at least they are

still producing bies Ikele

helmet - bicycle hell mitts

here. - helmets there. And

carpet underlay. A reminder

now you can watch all of ABC

News Breakfast streamed live

every morning. Here is Paul Kennedy with sport. Good

morning, Australia won't

include a specialist spinner in the first test against South

Africa beginning tonight. The

Aussies left Bryce McGain out

of its 12, the opposition

captain Graham Smith says he

expects Australia will pick

four pacemen and leave Andrew

McDonald to carry the drinks.

In the NBL the Melbourne Tigers

had an ease win over the New

Zealand Breakers last night.

It was the first game in the

best of three semifinal series.

The final score was 117-99.

Luke Kendall was the highest

scorer with 25. And Ben

Cousins will resume his AFL

career tonight for Richmond

against Collingwood. The

pre-season cup game will be the

first for the Tigers who

recruited him depiet his drug

addiction and rehabilitation.

A big crowd is expected but

Cousins is unlikely to play

much more than half the game.

The western world may be doing

it tough in the economic crisis

but poorer countries are doing

it tougher. Mongolia's most

popular national celebration is

taking place in week. But the

economic crisis is forcing many

families to celebrate more

modestly than ever before.

From Ulan Batar, Anna Walker

reports. Families across the

country have been bizly

preparing for the three day

holiday that includes a lot of

food and a series of intricate

traditions. It's a time when

winter passes and spring is

reborn. TRANSLATION: Last year

was very good for my family.

Now we are making 100 pastries. So this year will be good

also. The eldest family

member is the centre of

attention for the day. With

relatives and friends giving

money and celebrating as if it

will be their last Saban Sar

but for some this year's

festivities have been clouded

by the economic slow down. It

has had a major impact on this

poor country where the average

monthly rage is around $200

Australian. Despite a sharp

rise in food prices the

government has urged mongolians

to buy local produce and budget

carefully for the next year.

TRANSLATION: The economic

crisis has definitely affecting

mongolian families, we won't be

able to buy as many gifts as we

did last year. These

university students who live in

the country's capital Ulan Bata

are making thousands of mutton

dumplings. A hearty meal in a

harsh land where temperatures

at this time of the year drop

to as low as minus 40.

Mongolians eat as many of these

as they can squeeze in during

Sagan Sa in the hope they won't

go hungry the following year.

A typical family makes about

1,000 to 2,000 Buz usually 10

days before the holiday. The

economic situation has hit

Mongolia hard. With the

government forced to ask its

powerful neighbours, China and

Russia, for billions of dollars

in assistance. But over the

next few days all worries will

be put aside as this naturally

positive and fiercely patriotic

holiday. nation celebrates its oldest

Now here is Vanessa O'Hanlon

with a look at the weather.

sunshine in North Queensland. And finally there is some

That's right. There will be

by the weekend. As the sun

starts to shine until early

next week. Since January 1 Townsville alone has recorded

1.5m. Their wettest start to

the year in 50 years, but there

will be one monsoon cloud that

will cause some dramas before

the end of April. Cloud will

cause a few showers and storms

but mostly over the south.

Cloud over eastern Queensland

will cause a few showers and

the odd storm over the

south-east. In WA a trough and

front will bring a cooler

change with isolated showers

and thunderstorms. A tropical

low will take the heavy showers

from the Top End and move them

over towards Kimberley while

south-easterly s will bring

showers to North Queensland and

the east coast. And hot in

Victoria and SA with the dry

north-easterly winds. In

Queensland showers and

thunderstorms over the northern

and central tropics contracting further northwards during the

remaining east coast. day. A few showers along the

Thanks so much Vannessa. Still ahead on ABC News

Breakfast we are going to hear

more about the consequences of

Pacific Brands cut. As we have

been telling you this morning

1800 jobs, Andrew southcot will

be joining us and Julia Gillard

will be on as well and we will

be talking to her about that.

And we will be talking to the

Catholic Church about the

reasons a priest was sacked

from saint marry's parish in

Brisbane. That's coming up on

ABC News Breakfast. Do stay

with us.

A Turkish passenger plane

crashes with 134 people on

board, while trying to land in

Amsterdam killing at least nine

and injuries dozens. The big

job losses continue run the

country and there are warnings

things are only going to get

worse. The world's second

largest passenger liner the

'Queen Mary II' cruising into

Sydney Harbour. And Australia

leaving out the spinners paving

the way for three debutantes in the test against South Africa.

Good morning, it is Thursday

the 26th of February. I am

Virginia Trioli. And I am Joe

O'Brien. The top st