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Assaf Namer, Families mourn Australian in Lebanon. killed fighting for Israel for a $30-a-week pay rise. Unions begin their push

could send the Salvation Army broke. And claims an abuse scandal This is Seven Morning News VOICE-OVER: with Ann Sanders. Welcome to Seven News. Good morning.

killed in the Middle East conflict The first Australian will be laid to rest in Israel today.

in a Hezbollah ambush in Lebanon Israeli-born Assaf Namer died on Wednesday. His aunty, Shosh Davidson, says from the army next month. he was due to be discharged

the bodies of nine Israeli soldiers Inside this convoy of ambulances are in Hezbollah strongholds killed in fierce ground fighting in southern Lebanon. Among them, 26-year-old Assaf Namer, killed in the conflict. the first Australian the news they'd been dreading. Namer's aunt and grandmother received

After such heavy causalities, ground offensive against Hezbollah Israel has decided not to expand its on Lebanon. instead escalating its aerial assault EXPLOSION Israel's Justice Minister claims to demand an immediate ceasefire the failure of world leaders to continue fighting gives his country permission until Hezbollah is wiped out. The European Union says is "totally wrong". the Minister's interpretation

was the latest Hezbollah target. A factory in Kyriat Shemona number of rockets across the border, The militant group has fired a record averaging 100 a day. And now it has a new ally.

on al-Jazeera television, saying, Al-Qaeda's second-in-command appeared "We will not stand by our brothers in Gaza and Lebanon." "while these Israeli shells burn

and its allies. He urged Muslims to attack Israel Ali Saleh, injured in Lebanon the 16-year-old Australian boy, Back home,

arriving home in Sydney. was reunited with friends and family, scored the biggest win of his life... And Rugby League legend Benny Elias

to us. Thank you! The government sent everything from the war zone safe and sound. ..getting his mum, Barbara, back Good on you, darling. Love you, mum. Anna Coren, Our correspondent in Israel, with the family of Assaf Naser. spent a great deal of time yesterday earlier this morning. Anna spoke to us from Haifa

Assaf Namer Ann, I can tell you that 26-year-old brother, grandson, nephew was certainly a much-loved son, and boyfriend. with his family We spent much of the day who are absolutely grief-stricken

just had the world at his feet. that they've lost someone who really Sydney when his parents separated, He was born in Israel, moved to

lived with his mother and sister with an Israeli girl and two years ago he fell in love who was travelling around Australia to Israel. and that's why he moved back military He decided he wanted to join the uncle and other cousins had done. because that's what his father and not to join the army. His family begged him to be in the military, They didn't want him but he was adamant. they knew the dangers involved, This was a stubborn young man

as his relatives said, who once he made up his mind, they could not change his mind. in just five days. Tragically his service was up

military service. On Sunday, he was going to end his for people to join the military Here in Israel, it's compulsory to do their service. straight after high school But he did not have to do that. when he moved to Israel He was 24 years old

join the military, and he did not need to

is just even more painful. which I think, for the family, his girlfriend, Rivatel, We spent quite a bit of time with next month. who was going to move in with Assaf an apartment in Tel Aviv. They were going to move into She spoke to him three days ago. she had contact with him That was the last time southern Lebanon. and that's when he moved into

she feared for his life She said that actually die on the battlefield. but she never believed that he would a broken man. His father has been described as from Australia His mother and his sister fly in to attend the funeral first thing tomorrow morning many plans and dreams for. and bury the son that they had so

intensifying and really escalating The situation here is only as you heard in the news. 12 UN observers Australia has decided to remove it's from southern Lebanon. It's not taking any chances

at the outpost a couple of days ago. after Israel killed four observers green light to wipe out Hezbollah Israel has basically been given the before the ground troops move in but the bombing can only do so much

the casualties. and that's where we're really seeing What I think we have to remember not a pushover. is that Hezbollah is certainly preparing for war for years. This is an army that has been fighting will continue So Ann, I really think that this stamps it's foot and says, until the international community we've seen enough bloodshed". "enough is enough, Ann. Anna Coren there in Israel.

You can see Anna's full interview and family in Israel with Sergeant Namer's girlfriend on Seven News tonight at 6.00. To other news now, for a $30-a-week pay rise and unions are pushing for low-income earners. for low-income earners.

It will be the first test new Fair Pay Commission. for the Federal Government's to be rewarded for their efforts Unions claim workers deserve and fuel prices. in the wake of rising interest rates In the lead-up to the last election, on one simple promise - the Coalition campaigned heavily to keep interest rates low? Who do you trust leap in inflation Yet this week's higher-than-expected Reserve Bank to lift interest rates, will almost certainly force the again. record-low interest rates. Vote for us and we'll maintain Since then, they've gone up twice. next week. Who knows what's going to happen it's broken its promise to voters... The Government denies

Ah, nah, nah, nah, nah. would always be higher under Labor We said interest rates and that's absolutely right. ..and says world fuel prices, and the once-humble banana, are to blame.

Well, of course,

bananas were the largest component in that CPI figure. Look, who can control the price of bananas after Innisfail? It gave new meaning to that old song about, yes, I have no bananas. To offset rising interest rates and petrol prices, unions are seeking a $30-a-week pay rise for low-income earners, which will be the first test for the Government's new Fair Pay Commission. The Government warns too big a pay rise would only put more pressure on inflation, paving the way for a further hike in rates. We don't want interest rates to go up, we certainly don't. Lawyers representing scores of people who were abused

when they were wards of the State in Victoria, say their claims have the potential to send the Salvation Army broke. The Salvos have apologised for the sexual, physical and emotional abuse of children kept in homes they ran in Melbourne between the 1940s and 1970s.

So far, they've paid out almost $1.5 million while it's been revealed the Bracks Government has paid a further $3 million not just to Salvos victims but to wards abused in other State-sponsored homes. Seven's political reporter Brendan Donohoe has more. They haven't seen each other for 50 years since suffering in the Salvation Army's boys' home at Bayswater but the emotional scars are still fresh.

Well done, mate.

Rod Braybon, whose been paid $40,000 by the Salvos for sexual, physical and emotional abuse,

is reunited with John, another ward of the state,

who came forward

after our story last night about the Salvo's shameful past. The government gives the Salvation Army money to look after us, to feed us and we all get abused, physically and mentally abused - scarred for life.

John went into the Salvo's Bayswater home at nine years old and kept five years of abuse bottled up for 50 years until today. Here I am, a ward of the state, a young kid -

who is going to believe me against the Salvation Army? But the Salvos, who have settled 50 cases and have 50 more in the pipeline, are urging those abused to come forward. Our understanding is that all the research says that it is very helpful to talk to somebody about these issues. The Bracks government plans a public apology on 9 August but Seven News has learnt that behind the scenes, the government has been negotiating confidential out-of-court settlements with former wards of the state,

wards that were supposedly under state care. Over the past three years, about $3 million has been quietly paid out to an unspecified number of former residents of boys and girls homes.

Yes, it is millions of dollars. They deserve compensation. We recognise and acknowledge the traumatic times they have had. Advocates for state wards say the government needs to do more than just give a verbal apology

such as counselling and medical care. No amount of money will ever replace what they took. How can they replace a childhood? It is a kind of paper-thin apology because it does not do anything to address the issue of compensation. For the Bayswater boys, the message is they won't forget. I'm not alone in this world because people like this have come forward. You're right, mate? The Communications Director for the Salvation Army, Major Brad Halse, joins me on the line now. Major Halse, there are reports today that this scandal could cost the Salvation Army up to $25 million. Will that send the Salvos broke?

Those sort of figures are

frightening figures but we think

that they are probably quite

alarmist. Whoever is raising those, alarmist. Whoever is raising those,

they are not numbers in terms of

potential claimants that we are

considering and they certainly

haven't org naited with us These

reports shocking to say the least.

How are they responding to

allegations of such widespread

abuse? We have been responding for

some years and deep regret and

unequivocal apology. We are always

shocked when we hear from former

residents and we have been hearing

understandably in the last few days

from some more people that we

strongly urge to talk with us and

start a process of communication so

that we can work with them to hell

resolve these issues You talk

resolve these issues You talk about

potential claimants. How many

people are there likely to come

forward and should you be offering

more than money? Certainly we are

offering more than money. A

significant number of claimants,

their principle focus of inquiry is

not necessarily about compensation

but it is about being acknowledged

and receiving a personal apology.

We access people to the very best

of counselling if that is their wish

We try to talk about other things

as well as a straight financial

compensation grant. We are doing as

much as we can in that regard What

are the staff who were allegedly

abusing these children at the time.

Are any of them around to account

for their

for their actions? Some would be

around. Not in the employ of the

Salvation Army. There have been

some who have been brought before

the courts or in that process and

we again would strongly encourage

people who are alleging us serious

and significant abuse of any sort

to - if they believe they have the

evidence to take that to the police

and we encourage them to do that

and are supportive that Thank you

for your time this morning. Thank you. Two people have been killed in an overnight crash on Brisbane's bayside. Police say the driver of a car lost control on a bend in Victoria Point before colliding with an oncoming station wagon. The drivers of both vehicles died at the scene. They were a 27-year-old man and a man in his 80s. Nobody else was in either vehicle. A motorcyclist has been killed in a crash in Sydney's west. The accident happened on the M4 at Eastern Creek earlier this morning. Developers of Internet file-sharing program Kazaa have agreed to pay 30 record companies a total of $151 million. The global settlement was reached

after Sharman Networks was found guilty

of encouraging users to infringe copyright by downloading pirated music. The greatest challenge for that is there is a file sharing system

which has allowed traders to trade music for free, the artist doesn't get paid industry doesn't get paid,

and it makes it very difficult for on-line business to make money

to compete with free. Next in Seven News, our business and finance report.

And what's up with the Hoff - kicked off a flight out of London.

Saddam Hussein will be sentenced for crimes against humanity on 16 October. The former Iraqi dictator is on trial in Baghdad

and could face the death penalty if found guilty. The ex-president denies all charges,

but says if he is condemned to die, as a military man he wants to be shot, rather than hung like a common criminal.

With her recent trips to the Middle East and Rome, you'd have thought Condoleezza Rice spent enough time in the spotlight. But when the US Secretary of State took to the stage

at the Association of Southeast Asian Nations dinner, it was to perform a classical piano piece by Brahms. The dinner, which is closed to the media, has previously seen Colin Powell perform the YMCA, complete with hard hat and hammer. And a spokesman for actor David Hasselhoff has rejected reports

he was prevented from boarding a plane at Heathrow Airport because he was drunk. The former Baywatch star reportedly staggered around the first-class departure lounge while drinking beer and spirits yesterday. But his publicist says he was sick, not drunk. Hasselhoff's divorce from his wife of 16 years was finalised yesterday. To business and finance news now.

Joining us is Cherelle Murphy from the ANZ Bank. Cherelle, what are the markets doing this morning?

Good morning. The stock market has

slipped a little bit this morning,

not helped by movements on US

equity markets overnight. The ASX

is trading down 21 points. One of

the biggest movers today has been Aus

Aus tralind. Its profit down .50%

and the share down by 10% Everyone

is talking about interest rates.

The Reserve Bank meets next week to

decide whether to lift them. What

is the market predicting Rate hike

is all but locked in with all the

economists expecting 25 basis

points. Debate turns to whether or

not there will be another one.

Certainly we think there is a

reasonable case for this. This

weeks CPI not only showing prices

for petrol and bananas but core

inflation. That is what the Reserve

Bank will worry about and not want

to let it get out of control The

Aussie dollar has been given a nice

boost this week. What ask behind

that It got as Hyatt 76.56. It has

come off a little bit from there

but sitting 1% higher. Again this is

an interest rate story. As

investors see our yields grow here

in Australia where in the US

in Australia where in the US the

interest rates are going higher

they are attracted to our assets.

It is not good news for those with

a mortgage but if you go on holiday

the latest data is in your favour. Next in Seven News, the latest in sport as the winner of the Tour de France denies he's a drugs cheat.

Here in Kenya and in other countries around the world, there are many children living in desperate poverty. That's why we need 10,000 sponsors Children like 7-year-old George. Every day George fetches water from the only source they have.

and even though it makes him sick, he has no choice but to drink it. Because of the drought, their crops have failed But you could help change the life of a child like George by becoming a sponsor today. like food to eat, clean water to drink,

You can choose to sponsor a boy or a girl, their age and even their country, or let World Vision decide. Please sponsor a child today. Call us or visit our website where you can sponsor online now. It only take a few minutes but it will help change a child's life forever. Sponsoring a child couldn't have been easier for us. There are many children around the world like George who urgently need our help. If you've ever thought about sponsoring a child, please do it today. 10,000 sponsors for 10,000 children in urgent need by the end of August. Sponsor online at worldvision.com.au or call 13 32 40 now.

Tour de France champion Floyd Landis has denied that he's a drugs cheat. 30-year-old Landis returned a positive drugs test, just days after claiming the title. His team management has released a statement saying Landis had unusually high levels of testosterone in a drugs test after stage 17. He won the stage by over 5 minutes.

A "B sample" will be tested before any action is considered. Collingwood is expected to have little trouble The All Blacks only have one thing on their mind ahead of tomorrow night's clash against the Wallabies. All Blacks assistant coach Wayne Smith says his team must stop Steve Larkham, if they're any chance of retaining the Bledisloe Cup.

Smith claims Larkham is still one of the world's best players, and is as deadly as ever, despite his age. And, of course, you can catch all the action, right here on Seven. Collingwood is expected to have little trouble disposing of Hawthorn when they meet at the MCG tonight. The 'Pies will be looking to give captain Nathan Buckley a perfect present, as he lines up in his 250th match for the club. Hawthorn has made a number of changes from the side that was beaten by the Lions last week. A bumper crowd is expected at Toyota Park in Sydney tonight, as the Sharks and Knights open round 21 of the NRL. The Sharks are coming off the back of a four-game losing streak but are confident they can beat the Andrew Johns-led Knights. The losing side will slip out of the top eight. Disgraced former Cronulla Sharks player Tevita Latu

The Matildas are through to the 2007 Women's World Cup after a 2-0 victory over Japan last night. The girls became the first Aussie team to qualify through Asia and will meet China in the final of the Asian Cup on Sunday. China's opponents had a rough time just getting off the pitch in their match. North Korean players and fans threw bottles and became violent after their team was beaten 1-0.

Next in Seven News, our weekend weather update.

The dad who takes his toddler clubbing.

Time for a quick look at the nation's weather now. A cold front passing through WA should bring some welcome showers today, while some low cloud over the south-east Queensland should also bring some rain.

How long does it take to get the perfect golf swing? A Couple years?

A lifetime? Well, for this toddler from Denver, Colorado, the answer is both. At just 2.5 years old, Brayden Bozak is teeing off like a pro, even though he hasn't mastered everything yet.

It's amazing, because he's still in diapers, you know? I mean he's 2.5 years old. He's trying and we're trying to potty train him and get him out of diapers. With that swing, look out Tiger!

I bet he'll thank his dad for those comments down the line. 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. Have a lovely weekend. See you Monday.

Captioned by the Seven Network.

Let's go shopping. I thought you were house detective.