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The Cole inquiry seeks greater powers This morning,

the Iraqi wheat scandal. to investigate Transplant hope -

United States make medical history. two tiny patients in the is the national champion. COMMENTATOR: And Schipper the Commonwealth trials in Melbourne. The records continue to tumble at with Simon Reeve. This is Seven's Morning News

Good morning. development this morning There has been a significant at the Cole Commission paid by the wheat scandal. investigating kickbacks for some extra powers. Terrence Cole has called

joins me now from Canberra. Seven political reporter Geof Parry what happened? Geoff, can you take us through

It was expected that commissioner

coal would ask for greater powers

to investigate the government and

government ministers but he told

his own commission this morning

that he has enough powers to

investigate public serve abts and the Department of Foreign Affairs

and trade but he does want extra

powers to investigate the tigress

payment an off shoot of BHP and

what was involved here was Tigress

getting money out on a debt owed

for a wheat donation and that money

came from that food for oil fund of

the United Nations. What Mr Cole

wants to know whether they broke

Australian law. He reserved making

a request for an extension. He is

due to report on his findings on 31

March but may seek an extension The

Prime Minister is expect today make

a statement. Is he likely to agree

with Mr Coal

is a fair bit of

damage control being undertaken. In

about half an hour's time of the

Australian press's and he is

expected to be questioned then How

bad is this for the Howard

Government? It is bad and it has

the potential to get worse when

commissioner coal can put public

serve wants on the stand and ask

them what they know about it and

lying to the commission is a

jailable offence so that may bring

to light some more revelations. It

is serious. What is also not a good

luck a couple of photos published

by the Sydney Morning Herald

showing a couple of gun-toting

wheat sales men. These are the

government's own men in Baghdad and

it was Michael who told

commissioner coal that in 2003 he

emailed about serious concerns

about whether AWB was in fact

involve nd kickbacks an he emailed

that to a number of people in the

Department of Foreign Affairs. They

said thra proves nothing because

AWB was not mentioned in that. They

stood by that and there has been a

shift in this review of the public

service. Here is Joe Hockey on

Sunrise this morning. It certainly

- certainly no minister of was

aware of any issues involving the

alleged kickbacks. As for the

dental officials, there are

hundreds of them. They should be

subject to the coal inquiry, if

ministers are called. The Prime

Minister will appear On another

matter, the Victorian Liberal Party

are meeting tonight to discuss

Julian McGauran. What is expected

there The nationals will find a

place to nest in the Liberal Party.

He resign frd the National Party to

become a liberal. There is not a

chance that he they will reject his

membership but when Parliament

resumes he will be sitting as a

liberal which is not good for party

liberal which is not good for party

or coalition arrangements Thanks

very much. A busy day in Canberra. has launched an urgent investigation The New South Wales Ambulance Service waiting for help to arrive. after a man died The man called triple-0 on Monday a suspected heart attack after suffering in Sydney's northern suburbs at his home a similar sounding street in Grafton, but dispatchers sent an ambulance to

more than 600 kilometres away. discovered the mistake, By the time paramedics the man had passed away.

Investigators are applying to get DNA of killing a Sydney taxidriver. from two teenage girls accused remained in their holding cells The 14-year-old cousins yesterday remained in their holding cells

before the magistrate refusing to appear at Lidcombe Children's Court. in NSW history The girls are the among the youngest to be charged with murder. by Queensland's rail workers A snap rail strike transport headaches across Brisbane. is continuing to cause major 24 hours The strike is expected to last and would-be passengers furious. leaving platforms empty this morning around. This is just buggerising people action illegal. Queensland Rail has called the strike Bob Scheuber Queensland Rail chief executive joins us on the phone now. Good morning, Mr Scheuber. Just how many services are affected to transport commuters? and what contingencies are in place

Simon, unfortunately because of

this illegal strike action and that

is what it is, it is illegal, we

have no train services operating

across Queensland that is impacting

both passenger services and freight

services. If you got up this

morning as a commuter to travel

into work we unfortunately weren't

able to provide that service How

bad was it this morning, Bob? We

carry around 150,000 passenger

journeys in and out so obviously

there has been a significant number

of people who have had their daily

of people who have had their daily

lives impacted. We sincerely

apologise for that. We only got

about two hours notice before

midnight when the strike was called

on. We have tried with the

assistance of trans link and bus

operators to put additional bus

services on. We haven asking

people to make alternative

arrangements. We sincere ly

apologise to our commuters. We are

in the commissioner at 10 o'clock

to seek assistance to get our

employees back to work and get

services back to normal When do you

think that might be? I am hopeful

that the commissioner will be able

to point out that the action is

illegal. There are proper processes

that can be followed to settle

these sorts of disputes and that he

has put orders on them to get back

to work. I implor our employees to

come back to work so we provide

services to our customers and we

can sit down and work through these

issues as we were always prepared

to. Under the enterprise agreement

which has just been signed which

pro hibts this action. All our

employees were given a pay rise and

we were negotiating a further increase for certain train crew

drivers and that is what this issue

is about. Everyone got a full 1%

pay rise backdated to October. This

is not about money alone but

industrial power. Thank you for your time morning.

were stranded on the Parramatta River 85 Sydney ferry passengers late yesterday. for more than four hours in soft mud The Sydney HarbourCat ran aground to let another ferry pass. when it changed course to help move the stranded vessel. Smaller boats were sent But by the time a tug turned up the tide had gone down even much further so we were basically marooned like an island. Sydney Ferries officials have apologised to passengers describing the incident as embarrassing.

Alleged Bali Nine ringleader Andrew Chan will have the chance to issue a final statement to Indonesian judges today but Chan is expected to remain silent

despite prosecutors calling for his execution.

Other accused drug smugglers Si Yi Chen, Tan Duc Thanh Nguyen

and the group's youngest member Matthew Norman broke their silence yesterday, pleading their innocence. All members of the Bali Nine will learn their fate within two weeks. Two tiny patients have made medical history becoming the youngest living heart donor and recipient. Doctors at Columbus Children's Hospital in the United States have performed a rare domino transplant which involves three babies, two hearts and a set of lungs. Two babies spending their first few months of life in desperate need of a miracle. Two-month-old Kayla Richardson needed a new heart. She was hooked up to a ECMO machine to keep her alive and so they said that transplant was the only option.

Just a few beds over at Columbus Children's Hospital three-month-old Jason Wolfe needed a lung transplant. The odds weren't real likely that he'd even receive a donor in time. It was just heartbreaking. But then came news that would change the fate of both babies. Word that an infant heart and lungs had suddenly become available from out of State,

setting the stage for a remarkable chain of events, a domino transplant. To increase Jason's chance of survival he got both the donor heart and lungs. Surgeons then transplanted his healthy heart into baby Kayla. The duo becoming the youngest domino transplant patients in history. It is really quite a rare event because everything has to fall into place. After almost 12 hours in side-by-side operating rooms Jason and Kayla emerged with their new organs and a special bond they far too young to appreciate. I'm close to Kayla because she's my daughter but I also feel close to Jason, too, because it feels like we're so connected now. Connected, too, with a family they'll never know. Two babies, one struggling, now thriving thanks to medical technology and a life-saving gift.

Next in Seven's Morning News,

legal action launched against computer giant Apple, and surfers back a new device to scare sharks away from beaches.

Geez mate, your bin's looking full. It's all my recycling. That's great mate, but you can't put that in there, or that. Why not? Causes problems at the recycling plant.

This contaminates the recycling. And this could break down the machines. Just stick to the stuff that can go in your recycling bin. So how do I know what I can and can't put in? Just get on the web, look at your recycling calendar or check out the sticker under your bin lid. Recycling, let's sort it out for our future.

The Federal Government is reportedly considering a prevention-focused health system revamp. Under the $1.1 billion plan people aged over 45 would be eligible for a free annual health check-up. The Australian reports rural and remote services would also be boosted and a national call centre would be set up for initial medical queries. We have a warning today for anyone getting in front of a computer. A new destructive virus is being unleashed around the world today. The Karma Sutra worm was discovered in January but only activates on the third day of the month.

They say sex sells and this computer virus uses the oldest trick on the screen. It's an attractive topic. Open it up and bang! You're torched. Over the past two weeks you might have received the Karma Sutra virus without even knowing it. It comes in the form of an email with a pornographic attachment. Subject lines include crazy illegal sex, and schoolgirl fantasies gone bad. Open the attachment and you don't get dirty pictures, just a virus that lies dormant ready to unleash its destruction when the clock ticks over the 3 February. It affects users of all versions of Windows corrupting common files like Word documents, Excel spreedsheets and PDFs. It can disable your virus protection and send itself to everyone in your address book. One final tip - If you get an email and don't know who it's from... Regardless of how attractive the topic looks don't open it. The furore over a series of newspaper cartoons representing the prophet Mohammed has reached boiling point. International journalists and diplomats are pulling out of Palestinian areas as the threats of violence to foreigners increase. This has nothing to do with Palestinian politics. The gunmen are trying to take over the office of the EU commission in Gaza city, a symbolic target for the European newspapers which have caused so much anger in the Arab world - anger which has spilled over with dangerous threats to bomb European churches and offices in Gaza.

(speaks Arabic) "We give the Danish and Spanish government "48 hours to officially apologise or else," says this militant. Foreign journalists, diplomat and aid workers are now being urged to leave Gaza. Across the Arab world, there's been outrage at the publication of cartoons of the prophet Mohammed. We condemn this strongly. First, what threatened about prophet Mohammed and about Islam. The Prime Minister of Denmark has appeared on Arab television in a desperate attempt to calm the situation. There's much anger against his country. It was a newspaper in Copenhagen which began the furore last September by printing the original cartoon which showed an image of Mohammed wearing a turban shaped as a bomb. Well, clearly it is someone we hold with great regard and revere

as a prophet of God. But the reprinting of the cartoon by several other European newspapers, including the Paris Daily Francois seems to have ignited the situation. Anger in the Arab world is spreading, with the council for the states of the Gulf warning the cartoons could trigger what it calls more terror. Surfers have backed the use of an electric shock device to scare sharks away from Gold Coast beaches.

The gadget would also reduce the risk for migrating whales. Under water, the cable emits a constant electrical pulse. It can't be felt or heard by humans and most marine animals, but experts say it causes great discomfort for sharks. It certainly doesn't kill them. It deters them, though, and that's what we want.

Bill Morrison adapted the shark shield from a South African device designed to protect surfers and divers.

It can be wired to form a barrier between the flags or a long coastal strip. You can string it from here to Cairns if you want to. The vibration penetrates through the water seven metres deep and costs just over $1,000 for 100 metres. Bill has been so determined to prove that his device works here in Australia that he's done all his own testing. On one occasion he leapt into the water with it next to a live shark who was being hauled into a fishing boat.

The shark's reaction even surprised Bill. The shark - it didn't take off, it was just having convulsions and it just keeps having convulsions just like that until you turn the unit off. Board riders and some politicians want the device trialled in areas where whales often become entangled in shark nets. I would say today, Premier, today, Minister, will you open the books and have a look at this product and get on with it? The marine specialists responsible for the shark nets say the shock unit won't be considered as a replacement. We haven't seen any evidence that it's going to be effective in a large-scale area or a broad-scale area. Fisheries say the shark shield may be evaluated again during winter.

To business and finance news now. Joining us is Cherelle Murphy from ANZ. How are the markets looking this morning?

Australian equities are not looking

better this morning. Woodside is

one of the biggest to lose this

morning. Do we have any important

local data coming up today? Yes,

two pieces of important data today.

We have the December retail trade

figures. We are looking for a back

from the 1% decline. We are looking

for a 4% number. We also have the

international international trade .

$2.5 billion so we expect some

correction of $1.8 billion.

Sport is up next in Seven Morning News including the Wallabies future according to new coach John Connolly. Thorpe not happy despite a win at the Commonwealth trials.

Ian Thorpe had a win at the Commonwealth Swimming trials in Melbourne last night but it wasn't a record-breaking performance. That was left to world champion Jessicah Schipper. She broke her own Commonwealth record in the final of the 100m butterfly, edging out Libby Lenton. Going into the final only two women had swum quicker than Jessicah Schipper in 100m butterfly, but Libby Lenton was keen to add another title to her already impressive list. COMMENTATOR: Schipper going after Lenton. Schipper's doing better than Lenton, Schipper inside the 5 and Schipper is the national champion. Schipper stopped the clock at 57.15, another record for one of our golden girls of the pool. Ian Thorpe knows a thing or two about breaking records but in the final of the 100m freestyle it was 50m specialist Brett Hawke who led the field. Look at the Hawke go. Look at him go indeed. He's hit the wall. He's half a second under the world record but he's going to fade. And fade he did as the Thorpedo did what he has done so many times before

to claim his 20th national crown. Hawke is gone, now it's up to Sullivan and Thorpe. Thorpe's got him. Thorpe wins it. But his coach Tracey Menzies didn't look impressed and neither was the champ. In the scheme of things it's a little bit disappointing

but have that swim the Commonwealth Games now and it's going to have to be a lot faster than that. New Wallabies coach John Connolly says the Australian side has the potential to win next year's Rugby World Cup. Australia is coming off a horror year in 2005 losing eight of the last nine Test matches. Connolly says the team needs to focus on the basics and no-one is guaranteed a spot. The team will definitely be selected on form and we do have some very good young players coming through. It will be a huge challenge in France in 18 months' time. Connolly has signed a two-year deal. Australian Richard Green has a share of the lead after the first round of the Dubai Desert Classic. Green carded an eight-under-par 64 to be tied with South African Retief Goosen and Wales' Jamie Donaldson. Nick O'Hern is three shots back

while Peter O'Malley shot a round of 70. Jana Pittman and Tamsyn Lewis will fight it out for the 400m crown at the Australian Championships in Sydney tonight. Pittman is the fastest qualifier for the final while Lewis is third quickest. Lewis is the current national champion. Sprinter Patrick Johnson will be out to claim the 100m title. The weather from around the country up next in Seven Morning News and work from some of our top young designers on display.

Bushfires are part of Australian life. But what you do, along with your neighbours and your local fire authority, can make a real difference. The Australian Government is working together with fire authorities to help you be better prepared. Make sure you're ready this bushfire season.

Call your local fire authority or fire service. Be safe, be prepared this bushfire season.

Checking the weather around the nation. A ridge of high pressure will clear most of the southern coastline. Onshore winds along the east coast will bring showers, rain and storms also expected over inland New South Wales. A monsoonal tough will maintain patchy storms in the tropics.

That's Seven's Morning News to now. We leave you now with some pictures from the Mercedes Start-Up Fashion Award final last night. The winning label Silence is Golden by Kelvin Tam and Olivia Shih. I'm Simon Reeve.

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