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This morning - leaves several people in hospital. a Melbourne train collision

Australians are hurting The PM concedes after the latest interest rate rise. over her Logies Twitter comments. And the newspaper columnist sacked with Natalie Barr. VOICEOVER: This is Seven Early News Good morning. Several people have been injured in Melbourne's north. after a train collision into the back of freight carriages. The passenger train slammed

a building exploded. Witnesses say it sounded like Passengers had no warning the back of the freighter before their train slammed into before 9:00 last night. alright? You have to get off the tracks, It's a crime scene, off the tracks. Windows shattered the Pacific National train as the Metro smashed into

Station in Melbourne's north. which had stopped near Craigieburn It took 20 minutes 12 passengers and driver onboard. for emergency workers to free the

while the driver has head wounds. Three people were seriously injured, were taken to hospital, He and four passengers

with suspected spinal injuries. including a 15-year-old girl to the train, When I went up, actually, and crying and very upset one of the girls was screaming for her and help her. so I climbed on so I can be there a building had exploded. Nearby residents thought The whole house shook. that there was an earthquake. My daughter thought worse had more people been onboard. Paramedics say it could've been much that there's no fatalities at all. Very, very surprised So very lucky. the cause of the crash. WorkSafe is investigating Craigieburn and Broadmeadows Metro train services between for this morning's peak. aren't expected to resume in time Kevin Rudd has conceded will hurt families the latest interest rate rise to buy a home. and make it even tougher passed on the full 0.25% hike The four big banks have quickly from Friday. with borrowers to feel the pinch homebuyers are feeling the pinch. Across the country, with things, which we'll have to. We need to change what we do It's the running word. Tighten our belts, as everyone says. budgets are being squeezed. From Perth to Sydney, one house-price bandwidth We started looking at in house-price bandwidth. and we actually downscaled There's no bones about it. in interest rates When you've got a 0.25% rise it hurts the bottom line

repayments on their mortgages. and it hurts families in their 6 times in 7 months, Rates have now gone up to average mortgage repayments. adding a total of $300 a month

the latest increase. All four big banks have passed on but keen to point out - The Government's sympathetic Of course, interest rates now of 2.25% lower than they were are still something in the order when we came to office. back to normal. They are bringing rates at record lows forever. Rates could never stay probably isn't finished yet, And the Reserve Bank

it's worried about inflation. with the board indicating next month I do not expect to see a move likely to see further adjustments but I do expect that we will be very

over the course of this year. 6 increases out of 7 meetings. of gradual increases, It's not my definition has been saying all along. which the Reserve Bank Governor had a night of talks And the Prime Minister's

with mining bosses in Perth about his new super profits tax. with several leading executives Kevin Rudd attended a dinner on the 40% tax. where he promised more consultations the overall design We believe we've got of the super profits tax right

discuss with the mining industry but we are here, of course, to implementation details. wiped off the stock market value Billions of dollars have been of mining companies since the new tax was announced.

have emerged as the biggest losers Victoria's first homebuyers in the State's $45 billion budget. or building new homes From July, only those buying will be eligible for assistance. getting a $4 billion boost, Among the winners are health, by 1,700. and police, whose ranks will swell about Victoria being the only State Treasurer John Lenders also bragged for the next four years. forecast to be in surplus to survive the crisis We put this State on the right track in place for Victoria's future. and we now have the right plan is set to increase However, the Government's total debt

in 3 years. from $14 billion to $26 billion to revoke the citizenship There are calls of the four Pakistani brothers in Sydney. who gang raped teenage girls after a string of vicious attacks. The men were jailed in 2002 who was just 13 when she was raped, The family of one victim, brothers will soon be out of prison. says they're devastated one of the Destroyed her life. we're trying to pick up the pieces Destroyed our life and so it's all rehashed. and now they let him out, out on parole in three weeks. The man, known only as MKR, will be it's too early to say Adelaide doctors say will recover how well a young toddler with a meat mincer. from a horror accident

somehow became caught in the grinder The 2-year-old's hand four hours to free him. and it took emergency workers It's pretty confronting in a mincing machine like that when you see a kid's arm traumatic for the parents as well. and I would imagine it's been pretty of delicate operations. The boy will now have a series a Pakistani-born US citizen American authorities claim a car bomb has admitted trying to set off in the middle of New York City. News LA bureau chief, Mike Amor. For more, I'm joined by the Seven What are officials saying? Good morning, Mike.

Well, Nat, Faisal Shahzad is

expected in a federal court in

Manhattan at any moment. The

30-year-old was arrested in

spectacular circumstances overnight.

He was on a flited to his native

Pakistan. The plane pulled out when

authorities called it back and

escorted him off. His home, where he

reportedly lived with his wife and

two children is being searched. They

said they found bomb-making

materials there. He will be charged

with an act of terrorism across

international borders and an action

of mass destruction. The car was

noticed after smoke was seen coming

from it, they found petrol canisters

and detonators. Thankfully it didn't go and detonators. Thankfully it didn't

go off on a busy Saturday night.

Faisal Shahzad has admitted his

involvement but said he was acting

alone. The FBI can be sure they will

have all the tools they need to

learn everything we can, including,

what, if any connection, this

individual has with terrorist

groups. We will not rest until we

have brought everyone responsible to

justice. He has only

justice. He has only an American

citizen for 13 months. He bought the

ticket on the way to the airport and

a gun in the car. It looked like he

was fleeing the US. Melbourne newspaper 'The Age' has sacked columnist Catherine Deveny over her online comments during Sunday's Logie Awards. The comedian attacked several celebrities using social networking site Twitter,

Including a sexual joke about 11-year-old TV star Bindi Irwin. Catherine's was just purely shock. I mean, the stuff that this woman said was just totally inappropriate, out of hand, unnecessary. I don't know if she was actually thinking.

Was she drunk? Deveny's Tweets also targeted Rove McManus and Seven's music guru, Molly Meldrum. Now for your first look at Wednesday's weather: Showers and a possible afternoon storm in Brisbane. Coming up on 'Sunrise' at 6am -

Kochie and Mel investigate if criminals are getting out too early on parole. But next on Seven Early News - more sea creatures killed as America's oil spill spreads further. And British PM Gordon Brown attacked by one of his own on the eve of the UK election.

A fire which ripped through a chemical factory south-east of Melbourne is being treated as an accident. The ferocious blaze at Dandenong South sent black smoke across Melbourne and set off several large explosions.

It took 8 fire trucks almost 2 hours to get it under control. Investigators believe the fire began in a solvent mixing room. It's not known if the factory's 62 employees will be able to return to work today. More sea creatures have washed up along America's Louisiana coast as the oil rig disaster worsens. 25 turtles were found dead after eating oil-contaminated fish. The crisis has forced California Governor Arnold Schwarzenegger to reverse his support for more oil drilling off his State's coast. I see on TV the birds drenched in oil, the fishermen out of work, the massive oil spill and oil slick destroying our precious eco system. That will not happen here in California. The rig's owner, BP, says efforts to contain the giant spill are costing around $5 million a day. As if he needed it, British PM Gordon Brown has suffered another setback on the election trail. Just 48 hours from polling day, one of Mr Brown's own Labour candidates has labelled him the country's worst-ever prime minister. He is the worst prime minister I have ever seen in the history of this country and it's a disgrace. He owes an apology, not just to you and to me, but the British people and the Queen as well.

Only last week, Gordon Brown was caught out labelling a pensioner a bigoted woman. British aviation officials have warned of more airport closures over the next few days as strong winds push Iceland's volcanic ash back towards the UK. Airports in Ireland and Scotland were shut down for six hours yesterday. Iceland's volcano is still spewing ash into the air, melting surrounding glaciers and sending water rushing towards nearby towns. Your first finance this Early News:

Wall Street's confidence has been

knocked by fears about the worsening

European debt crisis.

Coming up on 'Sunrise' at 6am - Aussie actor Gary Sweet will tell the team about his tough role on 'The Pacific'. But next on Seven Early News - NRL bosses urge star players to stick with rugby league. And Essendon has a bad night at the AFL Tribunal.

The stories we're following on the Early News - several people have been injured after a train collision in Melbourne's north. The passenger train slammed into the back of freight carriages. Kevin Rudd has conceded the latest interest rate rise will hurt families and make it even tougher to buy a home. The four big banks have quickly passed on the full 0.25% hike. Melbourne newspaper 'The Age' has sacked columnist Catherine Deveny over her online comments during Sunday's Logie Awards. The comedian attacked several celebrities using social networking site Twitter, including Bindi Irwin. Now it's over to Mark Beretta with a sports update. Thanks, Nat. Good morning, everyone. NRL boss David Gallop has urged Johnathan Thurston and Israel Folau to not turn their backs on rugby league. Gallop met with club bosses on Tuesday with a review of the salary cap top of the agenda. Gallop acknowledged the cap needs to be looked at but urged clubs to explore the option of third-party payments from non-club sponsors

to keep their star players in the game. Changes to the salary cap are expected once the game's television deal comes up for renewal in 2012. Rugby league officials have called on New South Wales selectors to ban Matt Cooper from State of Origin. The St George centre withdrew from the annual City Country clash

only to be named in his club side. It's the fifth time Cooper has withdrawn from the fixture due to injury. Country officials have labelled the player a disgrace, banning him from all future teams.

Adelaide assistant coach Matthew Primus has admitted making a bet on an AFL game in 2009 which breached the code's gambling guidelines. The wager was part of a multi-bet involving the 2009 NAB Cup semifinal match between Geelong and Carlton.

Primus admitted making the bet in a statement issued by the club. Power officials say the club will discuss an appropriate sanction for Primus with the AFL. Essendon vice-captain Andrew Welsh has put his character on trial at the AFL Tribunal, and lost. Welsh was appealing a 4-match ban for kneeing Hawthorn midfielder Xavier Ellis.

But the Tribunal ruled Welsh must serve the full penalty. We're disappointed. We understand the character of Andrew Welsh, a player that's never been suspended, so we are disappointed in the finding. Welsh could also have taken the early plea and accepted a 3-match suspension. St Kilda captain Nick Riewoldt has revealed he is already two weeks ahead of schedule in his recovery from hamstring surgery. The star forward will start light running on Monday, boosting his chances of a return to the game well before the finals. Riewoldt was expected to spend 12-16 weeks sidelined after surgery but showed his desperation to be back early by spending extended time in a hyperbaric chamber. Riewoldt suffered the severe hamstring injury in Round 3 against Collingwood. New Zealand has advanced to the Super Eights of the World Twenty20

with a 7-run win over Zimbabwe under the Duckworth-Lewis method. New Zealand bowlers Nathan McCullum and Scott Styris starred with the ball, taking three wickets each, dismissing Zimbabwe for only 84 runs.

There is a big shot, bit more top,

fielder under it, gone, Chigumbura

is gone, looks at the top of his bat. With bad weather around, New Zealand made sure they were up with the target, scoring 36 off the first 8 overs before rain ended the match. The English town of Stilton has been brought to a standstill by the annual cheese-rolling contest. Hundreds of locals and visitors made their way to the main street to watch the teams battling for the undoubted honour of being called the Stilton Cheese Rolling Champions.

The final came down to a nail-biting contest between the Cheesy Rollers and competition veterans, the Stilton Sombreros. And it was the Sombreros who stormed to victory with a skilfully controlled performance.

But it wasn't just Stilton with a bizarre sporting event. The usually sleepy town of Shropshire has hosted the annual Sheep and Goat Racing Grand National. The event sees them race with stuffed animals tied to their backs. It was rider number 17, Woolly Wombat, who took out this year's Grand National.

Something a bit different this

morning rb see you soon for Sunrise.

Don't know if it is sport but thank

you anyway. Next, a look how the

weather is shaping up near you.

'Sunrise' is next. It's over to Kochie and Mel for a look at what's ahead. Nat, as you've been reporting, a train crash in Melbourne overnight has injured several people. There'll be big delays for commuters this morning. Our Melbourne correspondent Nuala Hafner is at the scene and we'll talk to her shortly. A couple of parole decisions lately have us questioning the system. Are the crims getting out too early? This morning, we'll get an insider's view on parole records and requirements. Also ahead, the girl who, by all accounts, should be dead. She was stung by a box jellyfish in a remote area. This morning, you'll hear the personal story about how she survived. There was an unusual find on 'Australia's Got Talent'.

How far can this power piper go? And what can he do to top this?

He was the Acca Dacca, the Angus

Young of bab pipes. -- Of bagpipes. And actor Gary Sweet tells us about his tough role on 'The Pacific'. Now for a closer look at how the weather's shaping up around the country. A cold front is charging through the south-east of the continent, bringing colder weather with showers to Victoria, Tasmania and southern New South Wales.

Isolated showers and storms are also possible over south-east Queensland ahead of a trough. So, around the capitals: Before we go, a look at the blockbuster parade that rocked Australian Fashion Week last night. More than 1,000 guests crammed into Sydney's Fox Studios to see Alex Perry's Arabian princess-themed spring collection. The runway alone was a showstopper, nearly 100 metres long. 31 models wore 48 outfits and were fussed over by 20 make-up artists. A budget pushing $250,000 ensured the parade was a fashion extravaganza. And that's Seven Early News for this Wednesday. I'm Natalie Barr. Stand-by now for 'Sunrise'. Supertext Captions by Red Bee Media Australia

www.redbeemedia.com.au