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ABC News Breakfast -

View in ParlView

(generated from captions) the Prime Minister won't

the Prime Minister won't rule

out on early election if the

Senate blocks his Budget plans.

A hospital in Sri Lanka's war

zone bombed for the second time

leaving at least 50 dead. Rugby League star Matthew Johns

apologise s to the woman in apologise s to the woman in the

middle of a sex middle of a sex scandal.

Manchester United's bid against

Wigan stumbles as they go 1-0

up in this morning's clash.

Live. This Program is Captioned

Koorning, it's Thursday, 14

May, I'm - good morning, it's

Thursday, 14 May, I'm Virginia

Trioli, and I'm Joe O'Brien,

the Prime Minister refuses to

rule out an early election if

Senators try to change the Senators try to change

Federal Budget. Kevin Rudd is

determined to see his alcopops

bill through. The election will

be reintroduced in June,

there's Speck lags a double

dissolution could be on the

cards if it's rejected a second

time. I have a fundamentally conservative approach to these

things, a little like my

predecessor, that is I predecessor, that is I believe

we were elected to serve a full

three-year term, but we have to

ensure the financial integrity ensure the financial

of the Budget we put before the

parliament through the

Treasurer's statement is

upheld. Kevin Rudd speaking on

the 7.30 Report. Ben Worsley

joins us from Canberra for

more. How did you interpret

what the Prime Minister was

saying there, because when he

was questioned about, "Are you

refusing to rule out the

possibility of going to an

early election?", he said,

"Don't put words in my

mouth". He had a bet each way, obviously leaving the door obviously leaving the door open

in the language that he chose,

but he probably didn't have

much of a choice because if it

does eventuate for any other

reason that they go early, he'd

be accused of breaking a

pledge. I would suggest that it

is still a possibility, but the

more likely reason for going to

the polls early is to get it

done before the real horror

Budget which is more likely to

be next Maysan the Budget just

gone - Maysan the Budget just

gone, as far as the legislation

is concern certained, I would

alcopops is an unlikely

trigger, taking a tax popular,

unpap ow loor or otherwise to

the - un popular is the main reason, it wouldn't be

suicidal, but it wouldn't be

wise, the Emissions Trading

Scheme legislation would be

more likely, not saying it would definitely happen, it

would be a more likely double dissolution trigger, that's dissolution trigger, that's the

Emissions Trading Scheme put

before the lower house today.

That will ramp up the interests That will ramp up the

and the pressures surrounding

that legislation which looks

unlikely to pass the Senate in

its current form. The Senate

obviously involves the

Opposition and those seven Senators, two of the important ones are Nick Xenophon, ones are Nick Xenophon, and

Steve Fielding, they responded

to Kevin Rudd's veiled threat

or however you interpret it on

Lateline, let's look at what

they said about it. If the

Government uses the alcopops

tax as a double dissolution

trigger, I think they'll pay

for it at the election ballot

box. Really most Australians

know the alcopops tax is not

working, and it's a blatant tax

grab and the Government needs

to stop holding behind it. If

they use it for a double

dissolution they'll lose the

plot. I love election

campaigns, I don't think it's

shared by Australians,

Australians could punish a

Government going early if they

see it as politically

opportunistic. I'm Budgeting on

the Government lasting three years, that's the assumption

I'm working on. The Independent

Senators there, in the

continuing wash up to the Budget there's been discussion about the about the ability, whether or

not it's realistic for the

Government to say that over the

next couple of years spending

growth will be kept at 2%. Joe

Hockey the Shadow Treasurer

says it's not possible, it

handcuffs the Government, if

you like, to no spending or no

new spending in the scheme of

things for the next six years

or so, and he makes the point

rightly that governments have

to spend before an election or

have to promise to spend before

an election and spend

afterwards. He has a afterwards. He has a point.

Malcolm Turnbull makes his

Budget in reply speech, so the

pressure is on him to

articulate how he would reign

in the deficit that exists and

the debt incurred by the

Government. Will he put a

figure on the smaller deficit

that he implies would be the

Coalition's policy and outline

how to reign in that deficit

and that debt. Joe Hockey

probably didn't help probably didn't help him

yesterday by on TV suggesting

that the deficit would be 25

billion less, he's referring to

the cash handouts that the

Government has recently gin to

Coalition wouldn't have done the electorate. He says the

that, so the deficit would have

been smaller, will Malcolm

Turnbull put a figure on it,

there's no bigger stage

separate to an election

campaign for an Opposition

Leader than the Budget in

reply, it's an important night

for Malcolm Turnbull and we'll

push ahead the political debate

surrounding this Budget. In

other news - a Sri Lankan

hospital in the country's hospital in the country's war

zone has been bombed for the

second time this week, a second time this week, a local

Red Cross worker among 50

killed during the renewed

shelling. The Tamil Tigers blim

the Government, but the Sri

Lankan - blame the Government.

The Sri Lankan military deny

using heavy art illy. Matthew

Johns apologises to a woman

involved in a sex encounter he

took part in. He made the

apology on Channel Nine, he was

stood down by the network over

his involvement in the incident his involvement in the

and has been dumped as an assistant coach with Melbourne assistant coach with the

Melbourne Storm. Victoria's

Royal Commission into the

February bushfires will hear

more evidence from Black

Saturday victims when it

continues today. Yesterday the commission heard State Emergency Services commission heard Victoria's

believed everyone in Marysville

was safe 24 hours after the

blaze killed 34 people, and

some bushfire emergency calls

from diverted to Centrelink. The Pope called for

the wall around Islam to be

torn down. The Pope backs a

two-state solution, calling on

both sides not to resort to

violence and terrorism. A

suicide bomb attack kills six

outside a US military base in

Eastern Afghanistan, there's

been more revelations from

Afghan officials about a US air

strike killing civilians a week

ago, they say 95 children were

among the 140 killed when US

War planes dropped bombs on two

villages in the province of

Farah, more on the story

Farah, more on the story of

Matthew Johns, who his been

stood down from Channel Nine

over a group sex incident. He

has apologised to the woman

involved in the encounter,

admitting he'd been waiting for

the incident to catch up with him. Karen Barlow

reports. Matthew Johns wasn't

at Channel Nine to play for

laughs, he went to the Sydney

studios to apologise for his

behaviour on a club tour seven

years ago I wasn't aware of

what she'd been through, and I

have to say now, you know, that

any trauma, embarrassment that

she's gone through as a result

of this incident, I'm extremely

sorry for. With his wife Trish

Johns by his side, he gave his

version of the encounter with a

19-year-old woman, and another

11 players and staff. He said

she was a willing

participant. At no point did

she object at any stage to what

was going on. The woman has

been traumatised and suicidal.

Police investigated her

complaints in 2002 and didn't

lay any charges, and they've

said this week there's no

reason to reopen the case. And

the statements that were the statements that were made

to the police it says that she

- she encouraged players to

come forward, and then she

actually - she - she actually

said, "Someone come forward" -

words, "Will someone hurry,

come forward and have sex with me". Rugby League me". Rugby League writer

Rebecca Wilson called for Johns

to be sacked by nine. He didn't

leave the room. She leave the room. She said

Matthew Johns did not go far

enough There's no way any

person can feel anything other

than empathy for the Johns

family, I felt there was none

of that feeling in the wider

community that we've had, which

is the whole thing about there

being one 19-year-old request

10 or 11 guys, and that feeling

that maybe she couldn't say

no. Rebecca Wilson says no. Rebecca Wilson says nine

Chief Executive David Gyngell cutting Matthew Johns loose was

a good result. The CEO said a good result. The CEO said the

Footy Show personality was in

an untenable position and had to be stood down. He said:

David Gyngell backed the David Gyngell backed the NRL

Chief Executive's efforts to change the league's culture:

Lucrative Channel Nine

Lucrative Channel Nine toifrs

have been pressuring the

station this week to station this week to drop

Matthew Johns. I don't think

they'd expect to see this man

back again ever, quite simply

in the modern times, on matters

like this, there is zero

tolerance. Matthew Johns has

been temporarily removed from a part-time assistant coaching

role at the Storm We need to give space between ourselves

and him. Ties have not been

severed. We'll give Matthew the

support like any players or

staff member. Seeing the pain

it caused my wife and just

facing my children, looking at

my children. It's been

hell. Matthew Johns appears to

have taken the fall for the

other men involved in the group

sex encounter. I think sex encounter. I think that

Matty Johns has been made to

wear the wrap for what went on

there, and I think it's up to

us to find the other guys, it's

up to them to come forward and

say, "Yes, I was there that

night". It's not going to make

it right. But it will make it

better. So far no-one else from

the 2002 Sharks team have come

forward. Karen Barlow with that

report, later in the program

we'll hear from Kathy Lumby who

has been advising the has been advising the NRL from

time to time on such issues.

The Royal Commission into the Victorian bushfires enters Victorian bushfires enters its

fourth day, the commission

yesterday heard how 24 hours

after a fire in Marysville

killed 344 people authorities issued a statement saying

everyone in the town was safe.

Let's hear some of the

testimony from Bruce testimony from Bruce Esplin, State Emergency Services

Commissioner. This is 8am

Sunday, last paragraph on the

Murrindindi mill entry says,

"We understand everyone in

Marysville is save and

assembled at Gallipoli park,

emergency response crews are

working on getting Emergency

Services into the town", that's

true so far as it goes in that

the people on the park were

safe. That is severely

incorrect, isn't it? It is, on

the basis of what we now

know. By 8am on the Sunday why

are staff had still not been

provided with better

information on the Murrindindi

fire from the DSE. I am not

sure why that happened, there

was confusion around the

Murrindindi Mill the fact my

office wasn't advised of the

start of the fire, obviously

intelligence of what had

happened in that area was

unclear And the Murrindindi

Mill fire the control agencies

was the DSE Yes 5:00 Sunday the

Taggerty area is of concern,

the fire burnt through Taggerty

Saturday, hadn't it? Yes. And

the report continues to say it's understood everyone is

safe in Marysville and is

assembled at Gallipoli park. By

5pm Sunday Bruce Esplin, that's

yfgly out of date. It's

unfortunate and wrong It would

seem DSE still had not provided

your staff with the correct

information I think my office

has to take some responsibility

for that particular element of

the report at that time. The Victorian State Emergency Services Commissioner Bruce

Esplin speaking at the Royal

Commission into the Victorian

bushfires. Let's look at bushfires. Let's look at the

front pages of the front pages of the newspapers,

Sydney Morning Herald - warning

an early Federal election is

possible as the PM plays Hard

ball on the Budget. Australian

- Kevin Rudd's promise to lift

future Government spending

prevent him making election promises. The Financial promises. The Financial Review

Wayne Swan defended the Federal

Budget's recovery forecast. Age

- women have to haggle with

doctors or pay an extra $550 to

have a baby under new

rules. The Mercury - Tasmanian

public servants in shop at the

cutting of an entire Department. The Canberra Times

- $200 million forcing the ACT

to borrow money and slash

spending. The Herald Sun - dial

000 for fiasco, bushfire

emergency calls diverted to the

dole office. The Daily

Telegraph - Matthew Johns wife

will stand by the disgraced NRL

star but is glad it wasn't her star but is glad it wasn't her

daughter to whom that incident happened. The Northern

Territory News Territory

murdered his girlfriend after

she didn't cook hits dinner

fast enough. South Australian

Premier promises water

restrictions to end by restrictions to end by 2012

according to the Adelaide

Advertiser, an optimistic

view. And The Courier Mail -

alleged money launderer passed

through police checks to through police checks to work

for an elite Australian crime fighting agency responsible fighting agency responsible for

tracking the proceeds of

crime. If you'd like to send feedback on feedback on the stories we are

covering:

Top stories - the Prime

Minister says he won't rule out

an early election if Senators

try to make changes it try to make changes it the

Federal Budget. The Opposition

criticised the budgeted's

high-level of debt. Kevin Rudd says Malcolm Turnbull needs to explain what he'd explain what he'd do

differently to fight the recession. At least 50 recession. At least 50 people

have been killed after a

hospital in Sri Lanka's war

zone was shelled for a second

time, the Tamil Tigers blame

the Government. The Sri Lankan

military denies using heavy

artillery in the area. Rugby

League personality Matthew

Johns publicly apologised to

the New Zealand woman who says

she's been traumatised by a

group sex encounter. He's been

stood down from his roles stood down from his roles at

Channel Nine and the Melbourne

Storm.

To finance news, To finance news, and the

Federal Government will embark

on the largest bond issue

program in Australian history

to fund its Budget deficit to

2015. The move has the

potential to change markets as

institutions shift their

investment strategies, Desley

Coleman reports. In an attempt

to plug the hole left by

shrinking tax revenues, the

Government is on a bond writing

spree. Bonds on issue will jump

from $70 billion this year to

an estimated $300 billion by

2013. The Government will come

back as the primary issuer of

securities into the Australian market and Government bonds

will dominate. Huge increase,

on top of that you have

Government guaranteed bank

bonds and Government guaranteed

State Government bonds

significant structural changes

in the bond market. Stephen

Halmarick from Colonial First

State says the new bont issues

will feed into the current

market. The big increase will

test markets, you'll see

increase perhaps a increase perhaps a steepening

of the yield curve as they try

to issue longer dated bonds,

offshore investors will be attracted to Australian

bonds. The Commonwealth's deibility manager deibility manager the Australian Office of Financial

Management revealed that it

will need to borrow a record

$60 billion over the next

year. They told us they'd be

issuing mainly into their

existing A dollar bench bonds,

adding a new pond, 2022. They

have flagged they'd look at

alternative funding source,

longer term bonds, 15, 20, 30

year bonds and re-establishing

the index bond market. One

thick that it clear, they'll

focus the issue in A

dollars. But Government bonds

are only one part of the fixed

income market. There had been

recent glimmers of recovery in Australia's non-government bond

market with a trickle of new

corporate issues being

done. We've go from a situation

where late last year corporate

bond markets gloecially were

effectively shut to a position

- ly were effective life to a position now where there's

signs of life. Players in other

fixed income markets such as

mortgage backed securities are

concerned the increased

activity among corporates and

Government bonds could crowd

them out It's important that

confidence is rebuilt in the

broader debt markets which I

think is starting to be seen

and that will then lead to a

greater window of opportunity

for Australian issuers to come

into the market to finance not

only home loans, but other

asset classes as well We are in

a period of repair in the

capital markets. The fact that

governments around the world

are having to issue so many

bonds risks slowing that

normalisation process down and

extending the process of repair

for capital markets which could

take some years. As will repairing damaged economies. That was Desley

Coleman with that report. Coleman with that report. The

European Union has fined US

computer chipmaker Intel nearly

$2 billion for anti-competitive

behaviour, and has ordered the

company to stop using sales

tactics that prevented rival

companies from selling computer

chips. Intel says it will

appeal against the appeal against the decision. US

Treasury Secretary Tim Geithner

says the US financial system is

starting to heel. Tim Geithner

told an audience of told an audience of community

bankers that recovery is a as a

result result of efforts to

rescue banks and steady the

housing market. Transparency in

the financial sector will be

essential. The green shoots are looking like strong

branches. If I hear the phrase

one more time. Let's look at

the financial figures:

Vanessa O'Hanlon will be here

with a look the the

weather. And our reviewer of

the newspapers, this the newspapers, this morning

we'll be joined by

international relations

lecturer from Monash lecturer from Monash University

Greg Barton, with sport here is

Luke Waters. Football is first, Wigan postpone Manchester

United's celebrations taking a

lead in the EPL clash which lead in the EPL clash which is

under way, a Manchester United

win would assure them of the

time. Wigan are determined to

make the going tough.

Wigan have torn up the

script, taking the lead script, taking the lead against

Manchester United. That was no

- certainly not on the cards.

Wigan 1-0 up. IPL - big

hitting from Adam Gilchrist hitting from Adam Gilchrist and

Andrew Symonds not enough to

get the Deccan Chargers over

the line, they were on track,

but Delhi Daredevil Rajit Batia

ripped through the order. ripped through the order. Let's take a look.

Great highlights. Rafael

Nadal's run on clay continues

with another straight set win

in the Madrid Open, James Blake

and Novak Djokovic joining the

Spaniard in the third Spaniard in the third round. Novak Djokovic was involved in

the rally of the day. Let's take a look.

That is a great rally, in

news just to hand Manchester

United equalised in the EPL

game, we'll keep you posted.

Racing Victoria postponed a

decision on the future of Jumps

Racing, hundreds of Racing, hundreds of supporters

of the sport and 20 animal

activists calling for a ban clashed outside Racing

Victoria's headquarters as the

board met to discuss the issue,

police formed a barrier and had

to separate people as emotions

boiled over. Racing Victoria is

expected to announce its

decision on Monday. As we have

heard earlier Matthew Johns has

been stood down from his media

positions following Monday

night's group sex revelation,

he was stad down indefinitely

by the Nine Network and will

not act as assistant skills

coach on Melbourne Storm, he

appeared on a current affair,

admitting to and apologising

for his roles. It for his roles. It emerged

Melbourne Storm, after winning

a game Monday night sat down as

a group and watched that Four

Corners report, all the players

and were quite - as you would

be - moved by the contents What was Johns' role with the

storm. He worked with the five

eight and the half-back, he eight and the half-back, he was

referred to as an advisor, I

think a consultant to the team.

Or to the club, so it's not

like he was - had a like he was - had a continuity

role as an assistant coach. He

has extensive media commitments

in Sydney, you wouldn't in Sydney, you wouldn't have

thought he'd spend heaps of

time in Melbourne. Has he been

sacked or just stood

down. Well, exactly what's

happened is it's been reported

that they stood him down. That

wasn't so much the case, I

spoke to an insider at the

Storm, and on Thursday he made

the club aware of the fact that

this had taken place, they

spoke to the police, realised

that the police had conducted an investigation and thought,

"OK, that's fine, let it run

its course", given the gravity,

magnitude and power of the Four

Corners report and the Corners report and the contents

of the interview with the young

lady, they were in lady, they were in negotiations

with Johns, and he's not in a

state at the moment to continue

there. It's not like they had

to say to him, "You're gone",

they discussed it and he said

it's not a position. The Storm

didn't take a tough

decision. They didn't have to,

he's not in a position to

continue coaching in his continue coaching in his role

as an assistant there at the

Storm. It wasn't like they

said, "You're gone", it was

more mutual. It could be the

case there's a role for him

that he hasn't been

sacked. It's possible. If he

stays in Australia, you'd be

surprised if he didn't pop up

on a commercial television

network. There's murmurs that

he may look at coaching roles

overseas, his future is uncertain. Thanks a lot

Luke. ABC News Breakfast can be

watched live on the web watched live on the web from

anywhere. Visit:

Now here is Vanessa O'Hanlon

with the weather, it's cold in

the south already, but a wintry

blast is about to hit. That's

right. Westerly wind

strengthening tomorrow , winds

forecast to exceed 60km/h, all

of Tasmania is in for a wet

day, heavier conditions over

the west, showers will increase

over southern Victoria and

coastal South Australia, it

will be cold enough for snow on

the mountains, a series of

fronts will move over the

region, the strongest cold front sweeping through

Saturday. The high dominating

the country has weakened,

driving warm easterlies over

the west and East Coast of

Queensland, a week trough

sitting in cloud, continuing to

trigger isolated showers or

storms, the strengthening

westerly winds driving massive

cloud across the south. There's

not a lot of activity in

Queensland - isolated showers

east of Normanton to Warwick,

thunderstorms for the

south-east. NSW - frost mostly

about the northern ranges,

isolated showers along the

western slopes of the southern

ranges and winds freshening in

the south-east. Victoria -

isolated showers, widespread

about the coast and eastern

ranges, alpines - cold enough

for snow, gusty winds about the

coast and ranges. Tasmania -

rain for the State, 50mm for

the mid-west coast. Cold

the mid-west coast. Cold and

gusty winds. South Australia -

isolated showers over the

agricultural area scattered

about the southern about the southern areas.

Western Australia - apart from light isolated showers in the

morning along the Eucla you

have another fine and sunny

day. Windy in Port Hedland, sunny in

sunny in the north, showers for

the territory's north-east

coast and humid over the Top

End. Ahead to tomorrow, fine in

Brisbane, a top of 26. In the

south-east corner a change as

the wind sweeps through, warm

in Melbourne. See you in half an hour.

The top story on ABC News

Breakfast - Federal Opposition leader Malcolm Turnbull

expected to continue his attack

on the Government's rising debt

when he makes a formal when he makes a formal response

to the Budget in Parliament tonight. The Rudd Government is demanding details about what

he'd do differently, and last

night the Prime Minister made

it clear he would not accept

changes to the Budget in the

Senate. From Canberra, Hayden

Cooper reports. The day after

Budget day is always

helter-skelter. Don't hurt

me. Those who want more from

the Government complain

loudly. Those who are never

satisfied do the same The Labor

Party deficit and debt will be

bigger than what we heard last night. The authors do whatever

it takes to steal back the

spotlight. But away from the

Canberra Vaudeville families

are trying to decide what they

like about this like about this Budget. Look,

there was nothing that was in

his speech that was going to

benefit us that I could

remember. Yes. Sydney couple

Richard banks and Alexandra

Taylor will have to pay more

for private health for private health insurance

when the 30% rebate is reduced

and are not comfort with the

nation's 57 billion

deficit. People throw around

billion like it's the old million dollars, and million dollars, and everyone

has lost the concept of how big

the number is, the Opposition

wants to remind them. This is

reckless fiscal management. It

is an assault on the public

finances on Australia that we

have not seen in generations,

and they have done it wilfully,

they have done it without any

care for the future. Those

opposite talk about deficit all

the time, they can't nominate

one saving they'll make, the

weight is on them now. A ship

of fools they are. This

juvenile behaviour is

extraordinary. Absolutely juvenile. It's only juvenile. It's only natural

that at this point... Well. The

former Treasurer should appear. I think for appear. I think for Australia

of course it will be a great

disappointment, isn't it. Five,

six years of deficit. 188

billion worth of debt. In

generational terms, this will

hock our children. And the

heroic assumptions that he's

produced to try to sugar coat

it - don't inspire a great deal

of confidence. The Government

is more than happy to see Peter

Costello back in front of the

cameras, just in time cameras, just in time for

Malcolm Turnbull's important

Budget reply speech. Budget reply speech. The

Opposition Leader will seek to

intensify the focus on debt and

unemployment. He, too, is

casting doubt on the optimistic growth projections for after

the recession. Will the Prime

Minister table the economic

advice from the Treasury upon

which he asserts his incredible

forecast is based? Once again

what we have seen in the what we have seen in the debate

in the last 24 hours or so a

direct assault on the direct assault on the integrity

of the Treasury. The Coalition

is still fighting Budget

measures from last year, so

this year's effort is no

certainty for Senate approval.

It looms as a potential trigger

for an early election. I've got

to say we have to ensure the

financial integrity of the

Budget that we have put before

the Parliament through the Treasurer's statement last

night is upheld. It contains

within it the disciplines you

and I have been discussing,

when people start cherrypicking

one bit after another, you have

to be careful not to put the

financial integrity of financial integrity of the

Budget at risk long

term. Inside and out, it's a

Budget generating heat. It's

the Opposition's turn tonight.

What do you want to here the

Opposition say about the way it

will deal with the crisis, will deal with the crisis, send us your emails:

In other news - a Sri Lankan

hospital in the country's hospital in the country's war

zone has been bombed for the

second time this week, a

second time this week, a local

Red Cross worker was among more

than 50 killed during

yesterday's renewed shelling ,

the Tamil Tigers blame the

Government, but the Sri Lankan

military denies using heavy

artillery in the area. Rugby League personality Matthew

Johns publicly apologises for

the woman involved in a group

sex encounter he took part in

seven years ago, making the

apology on Channel Nine 9. And

was stood down by the network

over his involvement in the

issue, and left his position as

a assistant coach with a assistant coach with the

Melbourne Storm. NSW Parliament

passed a second round of laws

to combat bikie gangs, members

face five years imprisonment if

they recruit new people, the

laws building on existing

legislation enabling

authorities to label bikie

gangs as criminal

organisationing, the crackdown

sparked by a fatal brawl sparked by a fatal brawl at

Sydney Airport in march. Victoria's Royal

Commission into the February

bushfires to hear more evidence

from Black Saturday victims,

yesterday the commission yesterday the commission heard

State Emergency Services

Commissioner authority issued a

statement that everyone in

Marysville was safe 24 hours

after the blaze killed 34

people. It was also revealed

some bushfire emergency calls

were divert ed to Centrelink. A

suicide bomb attack killed at

least six civilians outside a

US military base in eastern

Afghanistan. There's been more

revelations from Afghan

officials about a US air strike

killing civilians a week ago,

they say 95 children were among

the 140 people killed when US

warplanes dropped bombs on two

villages in the western

province of Farah. Back to our

story on Rugby League

personality Matthew Johns -

he's apologised to the New

Zealand woman involved in a

group sex encounter seven years

ago, and he told Channel Nine

he didn't realised the incident

had caused the woman

distressed. I wasn't aware much

what she'd been through, and I

have to say now, you know, that

any trauma, embarrassment ta

she's gone through as a result

of this incident - I'm

extremely sorry for. Matthew

Johns speaking will on A

Current Affair. In Western

Australia police charged a

39-year-old Perth man under the

state's racial Villification

laws over remarks posted on the

Internet, showing a

confrontation between the Perth

man and a Jewish man at a

shopping centre. Conn joins us

from the ABC's - Andrew O'Connor joins us from the

Perth newsroom. What can you

tell us. The video starts with

a cut music and picture

sequence showing Jewish images

and a voice track talking about

a one-world Government being

run by a Jewish community and

cuts to a man heading to an AGA

supermarket to protest over the

stocking of Israeli fruit in

the supermarket. This man

claims to be a Christian representing Christians, using

the Internet as the printing

press of the 21st century to

start a grassroots movement.

His idea of doing that is to

confront a couple of young

Jewish men at the supermarket

and engage them in a discussion

about the Jewish faith and the

Palestinian conflict. This

discussion starts civilly but

quickly escalates into a confrontation, which ends when

this man refers to one of the

young men as a racist Jew, that

remark and these two 10 minute videos posted on the Internet

that are the subject of a

racial Villification complaint

to police, they've investigated

that complaint and laid this

charge. This is apparently the

second time someone is charged

with racial vilification in

WA. The application of WA. The application of these laws in Western Australia laws in Western Australia are

unusual in the sense it's plied

in circumstances that you

wouldn't normally expect. The

first case was out in

Kalgoorlie where a young

Aboriginal girl was charged

with racial vilification over

remarks made to a white woman,

the magistrate dismissed the

charge, found the girl not

guilty of racial vilification

saying she engaged in petty

name-calling. This latest case

is also a bit unusual in the

sense we'd normally area associate anti-Semitic remarks

with white supremist or hate

groups. This year we had a

group promoting a race hate

concert in Western Australia,

they seem to have roots in the

old skin head movement. The

bloke in this video is someone

you wouldn't look at twice, you wouldn't look at twice, his

washing have been sufficiently

offensive to the Jewish

community for them to make community for them to make the

complaint and police to

investigate T Now, I feel a

Eurovision story coming on the

the Eurovision Song Contest has

been a source of

controversy And charm. Already

this year Georgia had to pull

out after upsetting the

Russians with a song that made

an embarrassing play on the

name Vladimir Putin. Now

Israel's entry created a Israel's entry created a storm

in the Middle East. Our

correspondent Ann Barker

reports. It's meant to be reports. It's meant to be a

song about peace with the kind

of shmatsy lir igs Eurovision

judges love and the singers

hope might bring the

Palestinians and Israelis closer

# There must be another way.

I wanted to convey a mess in of co-existence, I've been doing

that, working for peace We did

it in order to bring our

people, both our people to a

reality where we can live side

by side without inflicting harm

to each other. It's a call

aberration between a Jewish

Israeli singer Achinoam Nini,

and Arab Israeli Mira Awad

presenting a unified face to

the world.

It is impossible that it's

only through violence and the

escalating level of extremism

that we can make progress, we

have a responsibility of

finding that way, whatever it

is. Their message of peace

inflamed tensions in Israel

about who should represent the

Jewish state and what it means

to be Israeli, some Jews and

Arabs angry the pair from

chosen to sing at this year's

Eurovision. Palestinians say no

Arab living innist lal should

present a picture of harmony

that doesn't exist when the

pair were chosen at the height

of Israel's recent bombardment

at Gaza Being part of the and

going out in the world with an

Israeli Jew is to distort the

real picture of what happens on

the ground. Co- existence

starts when I as a Palestinian

have the right to be an equal

citizens to any Jew living with

me. Ultra Conservative juice

say Mira Awad is not the right

person to support Israel if it

doesn't support the separate State. Someone supporting

Israel has to be proud of t

accept this is a Jewish state,

and has to like the national

anthem. We are not singing

about an existing situation. We

are trying to sing and cry out

for a situation that we are

aspire ing to, there are those

that write articles and

that write articles and those

that write songs and sing them.

That's what we can do. It's not the first time

the first time the Eurovision Song Contest caused controversy

in Israel, 11 years ago

glamorous Israeli transsexual

surprised everyone includingist

rails by winning, upsetting Jewish Conservatives along the

way. No-one expects the

Israelis to win, the Eurovision

voting system favours countries

with support from their own region, something Israel

doesn't have, in the doesn't have, in the end

Achinoam Nini and Mira Awad

aren't fussed whether they win,

the victory for them is not in

the prize, but in the message.

Days of Abba a long time ago. Conservationists earned

delegates at the World Ocean

Conference to forge a united

position on climate change,

Ministers are expected to unveil

unveil the The Manado Declaration on Oceans and

Climate Change later today. But

their are differences over who

should foot the bill for the

economic cost of global

warning, Indonesia correspondent Gavin Fang

reports from Man addo. With representatives from more than 120 countries at 120 countries at the World

Ocean Conference, it's not

surprising that some

differences have emerged.

differences have emerged. Ahead

of the Manado Declaration on

Thursday, their remains debate

over who should shoulder the financial costs of the effects

of climate change on the

world's oceans. This is one

planet, we depend on each

other, we produce commodities

used around the globe, I don't

think it's a point of who

should pay for this, and so on,

it's a collective effort that

we should agree on. It will be

coastal communities in poorer countries feeling the initial

effects of global warming on

the oceans. Scientists say food

stocks will fall, sea levels

rises, and there'll likely be a

surge in natural disasters, surge in natural disasters, the

Asian Development Bank says

developing nations won't developing nations won't be

able to deal with those costs

alone. And in the future, the

financial cost of climate

proofing against the effects of

global warming will have to be

taken into account. If you are

doing a coastal road you doing a coastal road you take

into account storm surge and

other potential impacts, you

look at hired power, you look at hired power, you take

into account rainfall patterns

above the dam, if it's agricultural agricultural development

program that might involve

irrigation, you have to think

in new terms about the water

availability and so forth, all

the changes - we are getting a

finer tune on what's likely to happen. The Asian Development

Bank says there's already a

billion available for countries

through the United Nations for

climate change adaptation

projects. More money will be

needed from rich countries to

help out. You are help out. You are watching ABC

News Breakfast - these are the

top story, the Prime Minister

says he won't rule out an early

election if Senators try to

make significant changes to make significant changes to the

Federal Budget. The Opposition

criticises the Budget's

high-level of debt. Kevin Rudd

says Malcolm Turnbull needs to explain what he'd

explain what he'd do

differently to fight the

recession. 50 have been killed

after a hospital in Sri Lanka's

war zone was shelled for a

second time, the Tamil Tigers blame the Government the blame the Government the the

Sri Lankan military denies

using heavy artillery in the area. Rugby League area. Rugby League personality

Matthew Johns publicly

apologises to the New Zealand

woman traumatised by a group

sex encounter. Matthew Johns

has been stood down from his roles at Channel roles at Channel Nine and the Melbourne Storm.

For a look the the national

papers, we are joined by Professor Greg Barton Professor Greg Barton from Monash Monash University Centre for Islam and the Modern World.

Good morning. Good morning. What's caught your

attention first. Starting with

Australia is the story in Australia is the story in the

The Age, carried in the other

papers too, about papers too, about the Bushfire

Royal Commission, a catchy

headline, "Cry wolf fears on

forced evacuation", a

reasonable argument that if reasonable argument that if you

force people to evacuate ahead

of a fire, first time it works,

second, third they won't be so

persuaded, you can't always get

the predictions right. It the predictions right. It sits

in the context of the

disastrous tragic situation.

Underneath that is a story

about a disaster review plan

for the whole of Australia

filed away and kept secret.

This seems to suggest that the

problem here with the bushfire

was we didn't have the systems

in place, it's hard to blame

individuals when the systems

weren't ready. Had we had a

disaster similar to this in any

proportion to wake us up to the

fact that something like this

was needed? This is - I guess

we can't say completely

unprecedented. Given when this

bushfire came along on Black

Saturday in February, and given

the technology, we could have

had an automatic system to

phone through every house.

That would be much discussed

and desired by some. One of and desired by some. One of the

news items in the commission

that came up was there was good

work made on predictive

mapping, where the fire would

go, it wasn't integrated and information wasn't getting

through inside the CFA let

alone the public, a systems

problem would appear. The

reporting of this seems to have

been sober, given we have been sober, given we have a

Royal Commission, and hearings

and news every day. How have

you tracked that as you read it

in various papers, the tone and

tenure of the reporting of the

commission. We should be glad

there's no self righteous anger

directed at the head of the CFA

or others, terrible or others, terrible mistakes

have been made, it's hard to

shoot those mistakes home to

one person. It's been a sober

and I think sensible and adult

conversation, that's what is required. Now what is happening

in Indonesia, one of your areas

of interest. This is something

I'm supposed to know about.

There's news today in the Jakarta Post they are

expressing surprise, we have a

story picked up in the

Australian that SBY, as the President Manuel Jorge Neves

Moreira De Sousa is known, he's

chose - - SBY has chosen a

running mate. The current running mate. The current head

of the Central Bank has an

American doctorate, but wrote

it while he was in ANU, he has

a bachelors degree from the

university of Western

Australia, a mosters from

Monash university. Do you know

him yourself. I don't know him,

I met him in pass, I can't

claim to know him. Pretty much

all Australian economists know

him and vouchsafe his

reputation as being

non-corruptible. It's a non-politician. The fact that

the President's share of the

parliamentary vote went from

7.5 to 21, he's tripled his

party's vote, who in his first

tem term had trouble with

Cabinet support let alone other

support, choses a non-politician, none of the

parties feel as his own,

replacing a controversial

current Vice-President. It

seems like good news seems like good news for Indonesia, the right Indonesia, the right direction

to go. What does it tell you

about SBY's mind-set to pick

someone like this. A lot of

people will be encouraged

because the main criticism is

he's indecisive, lacking

boldness and courage, in his

first term he was in a

difficult situation without

support in Cabinet and

Parliament. This time around

he's reinvigour rated by

tripling the party vote, looks

like he could have a solid

Coalition result. What stage is

the election process at. We had parliamentary elections in

April. The first round of

presidential elections in July.

It may be the last round going

through to October. SBY had 61% in the second round in 2004. His popularity rating at a higher level. He could win in the first round. The important thing is he was seen to be handcuffed to a handcuffed to a Vice-President in the first term who wasn't within Pakistan ranging across the border with Afghanistan, it looks like things will get tough for them. We've been hearing about this over the last week, it's intense last week, it's intense tied, does it appear to you that this is a genuine effort by Pakistani authorities to get this under control, or a token effort because it's pressured by the US. I think it would beunfair to describe it as a token effort they've never gone in this hard, they've lost thousands the troop lives and civilian lives over the years, they've paid a big price, it wasn't clear if they were pushing as hard as they could. They do now appear to be. Related to that story

underneath it in the age, is a

story of the change of the

command for the Afghanistan US

forces, the new general Stanley

Mccrystal coming from a special operations background

suggesting the US is shifting

tact relating to its

relationship with Pakistan, it

can't go in with fire power,

has to work out things in a

sophisticated fashion and get

into a counterinsurgency into a counterinsurgency

situation. What hopes do you

hold out that the fresh push by

the Palestinian military will

have real effect on the Taliban

power in the north of

Pakistan. If they carry on,

keeping it up as they were, it

will have real effect. The

question is whether they'll

lose their nerve, they'll pay a

terrible price, Taliban forces

are close even to Islam. Basha are close even to Islam. Basha

- Peshawar is outside the

Government control. If they

back down it's hard for America

or NATO to intervene, it

involves question of

sovereignty, there's a fine

game going on where America

says, "You have to do what you

can, you can't back off, but we

can't go across the

boarder", In your view, are all

the powers that be inside Pakistan, are they Pakistan, are they lined up in

the same direction, the

intelligence service, political

power, military power, is that

facing the same way That's the

$64,000 question. No, Pakistan

is not a singular state there's

not a singular regime. The

Government is a progressive

element. The military is

somewhat committed. What is not

clear is the ISI involved in clear is the ISI involved in

the involved in the cee ages of

the moouge, that's the big

question. We don't have an

answer, good to see you. A

reminder, you can watch all reminder, you can watch all of

ABC News Breakfast extremed

live. Go to: Now with sport

here is Luke Waters. Manchester

United's EPL title hopes are

all but assured, they've taken

a 2-1 lead in a 2-1 lead in the battle with

Wigan under way at the moment.

Man U under the pump Man U under the pump conceding

a goal in the 19th minute.

Teves found the back of the net

for Manchester United early.

The equaliser making it

mathematical possible but

hardly unlike ly for Man U to

lose the time. Good news for

the United fans. Adam Gilchrist and Andrew Symonds and Andrew Symonds among the

runs in IPL cricket their

efforts couldn't get the Deccan

Chargers over the line. Adam

Gilchrist smashed five sixes on

his way to 64 off 33 his way to 64 off 33 delivers,

Andrew Symonds cleared the

fence twice on his way to 41

off 22 balls. The Delhi

Daredevil Rajit Batia put an

end to the run chase ripping

through the Deccan lower order, taking 4/15

taking 4/15 from 2.4 overs and

with it Man of the Match

honours. To tennis, world honours. To tennis, world No.1

Rafael Nadal continues to

dominate the clay at the Madrid

Open, the defending champion

made three unforced errors in

disposing of Austrian disposing of Austrian Melzer.

Rafael Nadal appears to be on

course for his sixth title of

the year. James Blake had to fight for his fight for his win dropping a

first set, but the American

found range with his serve

taking the match. Novak

Djokovic cruised past his

opponent to win 6-3, 6-3, he's

in great touch. Rafael Nadal

continues on his way on clay,

there's no stopping him. He's

your favourite player. I'm

backing him Three unforced

errors, not bad. Vanessa O'Hanlon with the O'Hanlon with the weather, it's

wet in Baartz of Tassie. Mt

Reid in the West Coast ranges

picked up 69.2mm, 17.4 pore

Hobart. A road weather alert is

current. Tasmania in for a wet

day. For the rest of the

south-east westerly winds strengthening, strengthening, showers

increasing over southern

Victoria and of the coastal

parts of South Australia, you guessed it

guessed it - it will be cold

enough for snow on the mountains. Fronts moving over

the ranges, the strongest cold

front sweeping through

Saturday. The high dominating

the country over the past week

and a half is with weakening,

but it's driving warm easterlies over the west easterlies over the west coast,

over the west coast of the

Queensland a weak trough

causing isolated showers along the the coastline. Strengthening

winds driving the cloud across

the south, jet stream the south, jet stream cloud

over the interior, but it will

be dry. Queensland - be dry. Queensland - isolated

showers east of Normanton to Warwick, thunderstorms in the

south-east. NSW - early frost

about the northern ranges,

isolated showers along the

western slope of the southern

ranges and winds freshening in

the south-east. Victoria -

isolated showers widespread

about the coast and about the coast and eastern

ranges and alpines, cold enough

for snow, gusty winds about the

coast and ranges. Tassie winds

- rain with the possibility

going up to 50mm, cold, going up to 50mm, cold, fresh

to strong westerly winds. South

Australia - isolated Australia - isolated showers

over the agricultural area scattered, strong winds about

the South Coast. To the west -

isolated showers eye long isolated showers eye long the

Eucla coast, but fine and

sunny. Windy in Port Hedland,

sunny in the North. Territory -

a few showers and humid: a few showers and humid: ahead to tomorrow:

Thanks a lot. Still ahead Thanks a lot. Still ahead on

ABC News Breakfast - we'll be

talking to the Deputy Prime

Minister Julia Gillard, hearing

what she has to what she has to say about what she has to say about some

of the criticisms of of the criticisms of the

Federal Budget and it will be

interesting to hear what she

says about the extra costs for

mothers giving birth, and

people seeking IVF treatment. We'll speak to treatment. We'll speak to the

Shadow Minister for housing Scott Morrison about the Scott Morrison about the impact

on first home buyers, coming up

after the break on ABC News

Breakfast, see you in a little bit.

For Housing Scott Morrison about the impact on first home buyers, coming up after the break on ABC News Breakfast,

see you in a little bit.

One day after the Budget One day after the Budget the

Prime Minister won't rule out

an early election if the Senate

blocks his Budget plans, a

hospital in Sri Lanka's war

zone bombed for the second time

leaving at least 50 dead. Rugby League star Matthew Johns League star Matthew Johns

apologise s to the woman at

apologise s to the woman at the

centre of a group sex

centre of a group sex standard.

Manchester United goes one step

closer to claiming the

premiership title after a 2-1

win against Wigan.

This Program is Captioned Live.

Good morning, it's Thursday,

14 May, I'm Virginia Trioli,

I'm Joe O'Brien, the top story

on ABC News on ABC News Breakfast, the

Prime Minister has refused to

rule out an early election if

Senators try to make significant changes to significant changes to his

Federal Budget, Kevin Rudd says

he's determined see his

alcopops bill through. The

legislation will be re

introduced in June there's

speculation a double addition

lugs could be on the cards

lugs could be on the cards if

it's - addition lugs could be

on the cards if it's rejected

for a second time. A

fundamentally Conservative

approach like my predecessor, I

believe we were elected to

serve a full 3-year term, we

have to ensure the financial

integrity of the Budget we have put before the Parliament

through the Treasurer's statement is

statement is uphold. For statement is uphold. For more,

Ben Worsley joins us from Canberra. The Prime Minister

was saying he has a

fundamentally Conservative

approach, but he'll go to an

early election if needed. He

said he had a said he had a fundamentally

Conservative approach to

economics, if you remember from

the election campaign, and the

truth turned out to be

different to that. Who knows,

look, he's having a look, he's having a bet each

way in his language,

way in his language, that's

understandable to some extent.

If he rules out an early

election and has one for any

reason, double dissolution or

what have you, he'll be

criticised for it, I would

suggest the alcopops as a

trigger legislation would be a

very unlikely trigger for a

double dissolution, you don't

want to go to an election pushing a tax if pushing a tax if the Emissions

Trading Scheme, which is put

before the Lower House is

eventually blocked in the

senate.