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(generated from captions) There are no guarantees but There are no guarantees

Kevin Rudd says his $42 billion

response to the economic response to the economic crisis

is our best chance of fighting

off a recession. Homes

evacuated in Far North

Queensland - the region hit by

the worse flooding in two decades.

decades. Tamil separatist urged

to lay down arms to end

bloodshed in a civil war

lasting 25 years. Something to

celebrate - Ricky Ponting celebrate - Ricky Ponting and

Michael Clarke share Michael Clarke share the Allan

Border Medal for Cricket's most valuable player.

This Program is Captioned Live.

Good morning, it's Wednesday,

4 February, I'm Virginia

Trioli, and I'm Joe O'Brien,

the top story on 'ABC Breakfast

News' the Prime Minister has

launched a full-scale assault

for a national emergency, but

even he admits it may not be

enough. Kevin Rudd says the

mini-Budget announced yesterday

is designed to ward off a

recession, and wants it passed

by parliament by the end of

next week. The Prime Minister

says the measures will save up

to 90,000 jobs. That won't stop

the unemployment rate rising

from 4.5-7% by June of next

year, it means the Federal

Budget will plunge into deficit

for the next four years. The

Government of Australia cannot

control the destiny of the

global economy. We must global economy. We must respond

to the data as we are presented

with it, and put our absolute

best foot forward based on the

best advice from the Treasury

about what will provide the

necessary stimulus for the

period ahead. There is fear in

the community. I understand

that, most members of

Parliament are in connect with

their local communities

understand that as well. What

you need to construct therefore

is a rational basis for

optimism, confidence and hope,

that means explaining to people

frankly, but not what the problem is,

frankly, but also the structure

of your response, the dimension possession of your response,

what will be done, how much money, over what period of

time, what it will be invested

in. Kevin Rudd speaking on in. Kevin Rudd speaking on the

'7.30 Report' last night. Ben

Worsley joins us from Canberra

for more. Even the Prime

Minister is not shying away from admitting this is

something of a gamble. A

with massive gamble. $42 billion,

with no guarantee of success,

which is stark language from

the Prime Minister, although he

hasn't been afraid of using

stark language during the

entire duration of this global

financial crisis. This package

is designed economically,

obviously, to, at best, ward

off a resession, at worse to

soften the effects of a

recession that many say is

inevitable. Politically it's obviously designed to make the Government look like it

Government look like it did, is

doing everything it can to

mitigate the effects of the

global slowdown, to show it

acted fast and as it likes to

say, ahead of the curve. From

the economic side of things

it's a double whammy, the

Government continuing with its

faith in the one-off cash

splash, if you like, the cash

bonuses which are designed to

inject money immediately into inject money immediately into

the economy, assuming it's

spent. It's also got a more

middle term focus as well. That

is where we look at the

business incentive tax breaks,

the investment in

infrastructure, and the

insulation of 2.7 million insulation of 2.7 million homes

around the country. Now, so

much of this gamble that Kevin

Rudd is willing to take, he's

willing to turn a decade or more

more of economic and political

orthodoxy on its head, that

surpluses are good,

surpluses are good, deficits

are bad and debt is bad.

Obviously the Government is

willing to take massive risks

on thisment and the figures

bear that out -- on there. The

figures bear it out $22 billion

surplus last may to $22 billion

deficit this year, it's a sharp

turnaround. It is, it's divided

across most of the media

outlets, strong and repeated

questions is why there's not

more money that might give back

what the economists call the

multiplier effect, not just the

cash Hand outed. The one-off

that may be saved or spent, but

targeted money going into

longer firm infrastructure that

may do the nation building that may do the nation building

Kevin Rudd says he wants done. If you were

If you were to sum up If you were to sum up the

reaction so far, it would be

fair to say that most are

saying that, "Yes, the

Government had ta act, it's

good they are acting", much of

this is well targeted. As you

say, there are obviously

concerns, there were going to

be when you spend $42 billion

of taxpayers' money in times

like these. Some of the

concerns are, for instance, the

Government is addressing the

symptoms of the problem, not symptoms of the problem, not

the problem itself, which is

the problem with international

credit, and obviously local credit. There is concern credit. There is concern that

there was no spending, really,

on the homeless, there's

incentives to get them towards

education and training, but no

real spending on the homeless;

that health missed out

altogether. And that, also, the

same consearches we had for the cash splash before -- cash splash before -- concerns

we had for the cash splash

before Christmas that many will

spend it on savings, make off

personal debt. There's no real

evidence of whether that

pre-Christmas stimulus actually

worked. They have replicated

that to some extent and added

$2 billion to the immediate payments. One of the payments. One of the critics,

of course, is the former

Treasurer and the long-term Treasurer of the Treasurer of the previous Australian Australian Government. Australian Government. That's

Peter Costello, he was an

'Lateline' last night. Let's

listen to what he had to

say. 12 months ago, you know

what Kevin Rudd was saying? He

was saying the inflation genie

was out of the bottle. We need

an interest rate rise, and we

needed larger surpluses. That

was 12 months ago. He was

wrong. Wrong throughout 2008.

He was actually urging on He was actually urging on a

restrictive monetary and fiscal

policy when what we should have

been doing last year is we

should have been ensuring that

we had pro-growth policies. OK,

he's turned around, done a

U-turn, he's done the biggest

U-turn in Australian economic history. J-turns, You turns,

it's coming back to me, Peter it's coming back to me, that's

Peter Costello's view, a simple

question, what does the

Opposition think of

this? Simple question, not a

simple answer. Malcolm Turnbull

learnt from his previously

full-throated and immediate

bipartisan support for the

Government's measures in

responding to the gz rrtion,

this time he's withholding

global financial crisis, this time he's withholding -- global financial crisis, this

time he's withholding support. He's criticised He's criticised many aspects,

kuing it Whitlamesque in

grandeur and -- calling it

Whitlamesque and Grandure in

size. He's attack the the

surplus to deficit, $22 million

surplus to $22 billion deficit.

He likes the idea of longer

term tax cuts, that's the

obvious philosophical difference between his difference between his and

Kevin Rudd's view. Also he wants wants to know where are the

jobs that you promised - we

talk about this yesterday, from

the last stimulus package, how

do you guarantee the 890,000

figure to be protected will be

-- 90,000 figure to be

protected will be measured. He

said the time line is offensive

to suggest that everyone in

Parliament should have a couple

of days to digest this, amend of days to digest this, amend

it, and decide what they oppose

and support by the end of the week, which is the time week, which is the time line

Kevin Rudd is suggesting. The

Opposition is promising

scrutiny, so are the Greens,

independents, there's a fair

way to go in this, but Kevin

Rudd's framing this in terms of

a national security crisis,

which is putting pressure on which is putting pressure

the Opposition to step up to

the plate and support what the

Government is proposing. Ben, we'll talk later this morning, we'll talk later this morning,

thank you so much. Now, what do

you think of the Government's

$42 billion spending plan. Will

it get us out of jail, send us an email:

In other news this morning -

parts of Far North parts of Far North Queensland

have been hit by their worse

flooding in 20 years. Several flooding in 20 years. Several

towns around Ingham have been

cut off, some homes have been

evacuated. 400mm of rain fell

in two days. More rain is

expected, there's another

potential cyclone developing

offshore. The abortion issue is

on the agenda in Canberra

again. Under the Howard

Government there was a ban on

aid spending linked to groups aid spending linked to

that gave advice on abortion in

developing nations. The Greens will move a motion in will move a motion in the

Senate calling for the

restriction to be

abolished. The international

community is calling for Tamil

Tigers fighters to surrender to

the Sri Lankan military and end

the bloodshed. Government

soldiers seized a number of

Tamil hideouts including the

separatist leader's bunker, the

army says it started a final

offensive in a civil war lasting 25 lasting 25 years, and claimed

70,000 lives. A long-range

rocket launched by militants in

the Gaza Strip struck the

Israeli port city of Ashkelon.

It's the first trig by a

long-range rocket -- strike by

a long refuse range strike

since the ceasefire. Israel

threatens to retaliate. Iran

launches a satellite into

orbit. State television showing

the blast off, it is carrying the blast off, it is carrying a

research and teledemungs

satellite. France says it is -- telecommunications satellite.

France is concerned because The

technology could be adapted to

carry nuclear warheads. There's

speculation that North Korea is

preparing to test fire a

long-range missile that could reach the

reach the US or Australia.

Security officials are quoted

as saying they have images.

Missile in transit. The icy

relationship between North relationship between North and

South Korea got frostier.

Seoul's Yonhap newsagency say

they have seen a satellite agency on the agency on the coast.

TRANSLATION: What I know is on 3 February on 3 February a Japanese

newspaper reported that North

Korea is preparing to launch a

missile which could be attached

to a nuclear warhead and

launching preparation could be

completed within one or two

months. Last week North Korea

announced it severed all

political or military ties political or military ties with

South Korea. Japan is concerned

about the deteriorating relationship. TRANSLATION: The Government

is making an effort to is making an effort to collect information regarding the North

Korean missile, we'll refrain

from making comment on each

issue, but will make an effort

to collect information. Former

US assistant Secretary of

State, and former ambassador State, and former ambassador to

North Korea, Stephen Bosworth,

and Morten Abramowitz head to

Pyongyang, but say they are not

carrying a message from Obama

carrying a message from Obama I carry nothing, we are

private citizens, we are not caring caring messages. The South

Korean Government says the

missile failed when North Korea

tested it last year. It's

expected to face its second

test in two months. Returning

to Sri Lanka where civilians

are turning to the Internet to

appeal to the international

community for help. A new

video throughout to be filmed

in northern Sri Lanka is

believed to show innocent Tam

ims caught up in the violence. Jeff Waters

reports. These amateur pictures

filmed to northern Sri Lanka were posted on the were posted on the Internet.

They are believed to show They are believed to show part

of the Sri Lankan Government's

latest defensive. It's hard to

escape the horror. These

people, if you look at the

footages, you can see that they

are straightforward

civilians. The ABC cannot

verify exactly where or when

the video was filmed, but the video was filmed, but it's

angered Tam ills living angered Tam ills living abroad.

They are circulated images

likes these no highlight a

humanitarian crisis. In these

days of all these GPS days of all these GPS systems,

where the hospitals are clearly

not known, they have bombed

hospitals. In another scene a

camp for people seeking refuge

is, itself, attacked. (Sound of

bomb blast). This time a young

woman is killed. On the

international community has to

take account of this. Before

it's too late. They have to do

something. Journalists are

being denied permission to

enter Northern Sri Lanka, so

there's no independent coverage there's no independent

of the situation there. of the situation there. The

Sri Lankan Government has a

policy of not harming

civilians, accusing the Tamil

Tigers of using human

shields. And now to the front

pages. Major newspapers around

the country. Not surprisingly

the Government's stimulus package package dominates. 'The

Financial Review' reports Financial Review' reports the

Rudd Government took a

two-pronged approach to fend

off a recession, the stimulus

package will plunge the package will plunge the budget

into its largest deficit in 15

years. 'The Australian' says

300,000 Australians will be

forced on to the dole in the

next 16 months despite the

launch. $42 billion stimulus

package. 'The Canberra Times'

says the Federal Government's

rescue package may create jobs

but unemployment will rise. but unemployment will rise. The

'Sydney Morning Herald' takes

moretive approach, saying Mr

Rudd's stimulus package and Rudd's stimulus package and the

Reserve Bank's interest rate

cut supercharged the economy

against recession, ensuring

positive economic growth. 'The

Age' reports that the package

will boost the economy by

offering cash handouts to

families and money for

infrastructure. The average

family will be $6,000 better

off according to the 'The off according to

Herald Sun'. 'The Daily

Telegraph' says Kevin Rudd will

spend $28.8 billion to rebuild

roads and schools while

families receive $12.7 billion

in payments. Families, schools

and small business the winners,

the Adelaide 'Advertiser' the Adelaide 'Advertiser' bri.s

'The Courier Mail' says

struggling Australians have

been handed a double dose of

relief. $950 cash bonus and

$200 a month in savings on the

average mortgage. 'The West

Australian' says Kevin Rudd's

package includes $14.7 for

school upgrades and $2.7

billion on dark breaks. The

'Mercury' interest rates at

their lowest levels after the their lowest levels after

Reserve Bank decision to slash

by one percentage point to

3.25%. For a break from

finance, 'The Northern

Territory News' leads with a

story of a man who nearly lost

his ear after being attacked by

a man wielding a a man wielding a tomahawk. When

you don't write stories on the

stimulus package, that's the

yarn you end up with, yarn you end up with, the

Northern Territory tomahawk

story Or the crocodile. Top

stories - the Prime Minister

will be trying to win support

for his 42 billion mini-Budget

a day after saying it's the

best chance of warding off a

recession, Kevin Rudd says the

measures will save 90,000 jobs,

but it will force the Budget

into deficit for the next four

years. Hundreds of people

forced from homes as far North

Queensland is swept by some of

the worst flooding in 20 years,

towns around Ingham have been

cut off after 400mm of rain

fell in two days, more rain is

expected, a potential cyclone

developing offshore. The international community calls

for Tamil Tigers fighters to

surrender to the Sri Lankan

military to avoid deaths. The

army says it begun a final

offensive in a civil war

lasting 25 years, claiming

75,000 lives. lasting 25 years, claiming

To finance news, and the

release of BHP Biliton Bilton

adds half yearly results

providing the clearest picture

of how the global mining

company is weathering the

financial crisis. Analysts will

be looking closely at BHP Biliton's iron ore production

and performance as miners brace

for significant price falls in

the coming contract

negotiations with China. Andrew

O'Connor joins us from our

Perth newsroom. We heard just

two weeks ago about the 3,000

jobs slashed by BHP Biliton, is

this going to be more bad news

today? Well, BHP Biliton Bilton

has been hit by the global

economic slowdown like other

resource companies, but it

seems to be unusually well

placed. The job losses that we

saw a couple of weeks ago, 1100

in Queensland, across in NSW,

and 2,000 or more here in the

west were confined to BHP Biliton's nickel Biliton's nickel operation,

that was something that we knew

about, BHP Biliton in November

had written off $2 billion in

the value of nickel the value of nickel assets,

While the job losses in their

scale from surprising, the fact

it occurred wasn't. Nickel is

one part of the diversified

asset base. They are in asset base. They are in oil,

iron ore, You rain Ummium,

which have stabilise ed despite

the slowdown, iron ore demand

slipped. BHP Biliton is still

shipping substantial volumes,

and that is what analysts will

be looking at closely. BHP

Biliton is still doing

reasonably well, but these

coming contract negotiations

will be particularly

tough. That's right. Iron ore

miners are coming out of a

period of golden years, we had

five years of a boom, they've

been able to extract

extraordinary price rises from

customers not just in China,

but Japan, last year the iron

ore contract price sored by 80%

to around $100 US a ton. The

slowdown in China brought all

of that to a screeching halt.

Miners and analyst are talking

about very substantial drops about very substantial

that the Chinese will use the

slowdown to drive prices down slowdown to drive prices

in the yirnor market, talking

about drops in the -- iron ore

market, talking about drops in

20-50%. Miners like BHP

Biliton will have to take a hit

on profit margins and prices in

the year ahead. If they take a

hit on profit margins and

prices does that mean more jobs

going from Australia. It's

hard to tell. Marius Kloppers

will deliver a briefing in

Sydney in a couple of hours

from now, I think we'll have a

clearer sense of what BHP

Biliton expects over the coming

six months from that briefing.

On the face of it BHP Biliton

seems remarkably well placed to

absorb substantial cut in iron

ore prices. It has high grader,

massive volumes, low production

costs, it still is saying that

it's planning to push ahead

with expansion of iron ore

production in the west, due to

the fact that it walked away

from a merger with Rio Tinto.

It's cashed up, debt free. It's

one of the few companies in

Australia in the world nas in a

position to pick up a-- nas in

a position to that's in a

position to pick up or absorb

those prices. In other finance

news, and the big news of

yesterday mortgage rates set to

fall to the lowest rate since

the 70s since the official rate

cut of one whole percentage point. ANZ and Westpac say

they'll pass on the cut in

full. The Prime Minister has

urged other banks to do the

same. The cut is worth around

$190 for someone with a

$300,000 standard variable mortgage. The European Union

says it will lodge a complaint

with the World Trade

Organisation over a buy

American clause in Barack

Obama's $800 billion US

recovery plan. The stimulus

package is considered by

Congress, seeking to ensure

Congress, seeking to ensure US

iron and steel and manufactured

goods are used in projects

funded by the bill. Now to a

look at the markets:

recovery plan. The stimulus Obama's $800 billion US American clause in Barack

goods are used in projects iron and steel and manufactured Congress, seeking to ensure US package is considered by

look at the markets: funded by the bill. Now to a

In a few minutes Vanessa

O'Hanlon here with a look at

the weather. Ahead we'll have a review of newspapers from review of newspapers from today

this. Morning we are joined by

plain English editor and

creator of satirical creator of satirical journal

'The Bugle', Andrew Pegler. Now

with sport and cricket function

last night. Here is Paul

Kennedy. Good morning, Kennedy. Good morning, Captain

Ricky Ponting and Ricky Ponting and vice-captain

Michael Clarke have both won

the bed A when the announcement

was made Ponting looked

confused because he thought he

had no chance of winning. It's

the first tie in the award's 10

years, the Ponting is -- the

medal is Ponting's fourth,

Clarke's second. Nathan Bracken

was the best performed one day

player, Phillip Hughes was

named Bradman Young Cricketer

of the Year the best State player went to South Australia's Michael Klinger,

and Shelley Nitschke was recognised as recognised as women's Player of

the Year. It's been a rough 12

months for Ponting, but the

Australian captain is punting on a quick change of

fortune. Look, it's been, as we

know, it's been an up and down

year for the team. Everybody at

the moment is writing uggs off.

Deep in my heart I know we are

not far away. Results would

prove that over the last couple

of months, it's been an amazing

time with some of our greats

leaving the team, obviously

some young and exciting players

coming in to the team. It's an

amazing challenge for me and

Michael to keep leading this

team in the right direction,

showing some direction, and

passing on some experience to

the younger guys, something

that I'm looking forward to, I

know Michael and a lot of more

experienced players are looking

forward to it as well. Thanks

to everybody, it's been as I

said on amazing year. I'm blown

away to stand up here tonight. Very honoured to

receive the Allan Border Medal,

more honoured to be standing

beside my captain Ricky

Ponting, to the rest of my

team, and all forms of game

thank you for your help and

support, family and friends,

Lara for her support, thank

you, and to Punter, congratulations, mate. Andrew

Symonds wasn't at the Symonds wasn't at the function

last night and won't be last night and won't be touring

South Africa. He's been ruled

out of international matches

for now, the all-rounder

receiving help for his

emotional state. It doesn't

help that he hasn't been able

to make runs this summer at any

level. Cricket Australia boss

James Sutherland announced the

decision on Andrew Symonds,

this is what he said. In

arriving at that decision the

board has taken on board has taken on advice

received from a number of

people working closely with

Andrew, and we see that this

peered back in Australia will

provide him with an opportunity

to have more intense

counselling, and to work

through some of his issues and

ensure he has the right

platform to come back to

international cricket in a

manner that he wants to. It's a

tough stance, it's an

appropriate stance in the

circumstances, and I think it

can be looked at as a sanction.

I would prefer to look at this

as being a decision in the best

interests of Andrew Symonds as

well. And an interesting result

there with Ponting and Clarke

sharing that medal. I

sharing that medal. I thought Mitchell Johnson may be up

there, he was the out and out

favourite. He finished about

fourth, I think, Hussey and

Katich may have finished ahead

of him. In light of what's

happened to Australian cricket

over the past couple of months,

has it lost some of its sheen

that occasion. The medal,

definitely. Especially the top gong, because that was

Ponting's fourth medal, by his

standard he had an average

year. By the look on his face

it looked like he was

surprised. The look on the face

of somebody that wins the top

medal for cricket in medal for cricket in Australia

- he almost looked a bit embarrassed. That's because

he's a great, and he hasn't had

a super year, but he - a super year, but he - his

average is still - average

performances are better than

everyone else's except for

Clarke who played well. It's

probably the discomfort when

something operation worthy is

said about you, but you know

your performance is not goopd.

The look on his face is don't

draw attention to the facts we

have problems by singling me

out for this. There's a couple

of big things that happened that can turn things around in

the last couple of days, one the last couple of days, one is

Andrew Symonds, finally they

made a call on him, which is

significant. You think it was

the right one. It's been coming

for a while, and finally

they've made that correct

decision. So now they put the

onus on him, if he wants to

return he has to have

outstanding performances at

State level. That's what it

comes down to This is the long

goodbye, isn't it. I think

so. And watch what he says on

radio interviews. Improve

behaviour and get back and make

runs, that's what it is now for

him. The other significant

thing from the weekend was that

Bryce McGain the leg-spinner

from Victoria took five wickets

against South Australia, so

hopefully he gets a call up for

the touring team to go to South Africa. The other Africa. The other winners

Phillip Hughes won the Phillip Hughes won the Young

Cricketer of the Year, he Cricketer of the Year, he may

get a go and Michael Klinger,

I'd like to see him, he's made

so many runs for South

Australia, let's hope he gets

the call up. And Nathan Bracken

won the one-day Player of the

Year, I hope he's looked at for Test particularly with the

Ashes looming, he swings the

ball better than anything in Australia. Good to hear

positive cricket positive cricket news. 'ABC News Breakfast' can be News Breakfast' can be watched

live on the web from live on the web from anywhere

in the world. Visit: Here in the world. Visit: Here is

Vanessa O'Hanlon with a look at

the weather. Good morning,

before we go to the weather in

Australia, there's been another

day of brilliant snow across

Briton, from Kemp to Cornwell

blankets of white. More storms

forecast until the end of the

week adding centimetres to the

deepest snow banks in 18 years.

It's causing problems though

for the transport network.

Problems up north, flooding

continuing in Ingham dash.

It's added 233mm since 9am and

as the satellite is showing,

there's a lot of cloud up that

area, and tropical lows

developing in north-western

Australia and over Queensland,

there'll be a lot more showers

and storms on the way. We also

have the active monsoon trough

generating heavy showers and

storms over the tropics, they

are mainly near the lows, as we

head to Queensland, all the

rain is falling over the north,

there'll be a lot more of it in

Queensland, severe flooding and

heavy rainfall current tore

North Queensland. In NSW

isolated showers on the North

Coast and clearing showers,

fire warning for the

south-western district.

Victoria - fire warning for the

mallee, morning drizzle

clearing. Norms for the

north-east and eastern ranges.

See you in half an hour.

The top story on 'ABC News Breakfast', Prime Breakfast', Prime Minister

Kevin Rudd will be trying to

win support for his $42 billion

stimulus package designed to

save jobs and keep the country

from falling into recession.

The majority of spending will

be invested in schools, housing

and roads. Chris Uhlmann

reports on the details of the

new plan seeing the Federal

Budget in deficit for four

years. Two men united by

denomination and divided by

belief. Moderation must belief. Moderation must be

known to all men. Nowhere was

this a day for restraint. A $42

billion nation-building and

jobs plan. This plan is backed

by a further decision by by a further decision by the

Reserve Bank Board to reduce

rates by a further basis - 100

basis points. To show that

fiscal and monetary policy

levers are pulled together to

stop the economy crashing, the

Government picked the day

interest rates fell to 3.75%,

the lowest level in 40 years to

announce a massive increase in

public spending. Extraordinary

files demand extraordinary

measures. That combined with

rapidly evaporating taxes adds

up to massive debt. 22.5

billion this financial year.

35.5 billion in the next.

Across the four years of the forward estimates, it's

projected the deficit will

total $118 billion. This is not

a question of choice. This is

what we are required to do.

The $22 billion deficit for the

year ended June 2009 is mostly

constituted by the 19 billion

of extra spending. Half of the

42 billion is slated to be

spent in this calendar year,

and adrenaline hit equal to 2%

of all economic activity, $12.7 billion coming through cash

payments to individuals, to

keep the economy ticking until

28.8 billion in money for

public works kicks

public works kicks in. The alternative is to do

nothing. Payments of $950 each

will begin flowing in March, to

farmers facing hardship and

tertiary students and trainees

and single income families and

low and middle income low and middle income families

with school-aged children. The

bulk of the spending, $8.2

billion will arrive from April

by way of tax office payments

of up to $950 to nearly 9 million

million taxpayers. Today is a

very important day for the very important day for the mums

and dads around Australia. The

largest part of the money for

building is $14.7 billion,

allocated to improve and

refurbish every one of the

nation's 9,540 schools, 6.6

billion will be spent building

20,000 public homes, 3.9

billion slated to fund payments

of up to 1600 to insulate 3

million homes, and 2.7 billion

will be spent on giving small

businesses a 30% tax deduction

on assets worth more than

$1,000. There's no guarantee

of success. A lot is gambled on

it. There's concern from some quarters that the Federal

Government's second Government's second stimulus package package doesn't do enough to

help the unemployed. help the unemployed. The Australian Council of Social

Security says moves to create

jobs and fund infrastructure

problems is welcome, but is

concerned those without jobs will receive limited will receive limited help.

Clare Martin is the CEO of Clare Martin is the CEO of the Australian Council of Social

Security, and joins us now from

Sydney. Good morning. Joe, good

morning. 800,000 Australians to be unemployed by be unemployed by next year. The

real victims of this crisis,

what do they get out of this

package? Well, there's a lot in

this package, I think the

important thing to remember

about this package is it's

focussed on job creation, for

every Australian who is fearful

of losing their job, or ones

that don't have a job

currently, this is a great

opportunity, it's not about

jobs demanding high skills, some of the work some of the work to do with

energy efficiency and

insulation can be done by those

with lower skills, there's

great opportunity in the focus

of job creation of

infrastructure projects that I infrastructure projects that

believe are targetting those

that are vulnerable. The issue

for ACOSS is $225 is the

current Newstart allowance,

people struggle to live on

that. If we look at another 300,000 Australians 300,000 Australians living on

the Newstart allowance by the

middle of next year, they'll be

doing it really touch. That's

the issue we've been pushing

saying that it needs to be increased, the increased, the Newstart at

least by $30 a week. One

commentator describes the fact

that that issue has been put to

one side in this package as

amoral, and suggestions that

the Prime Minister's next essay

could be on the morality of

kicking victims. Do you think kicking victims. Do you

that's a fair enough

call? Look, I don't want to call? Look, I don't want to get

in the emotion of this. The

reality is if you talk to

someone trying to survive on a

Newstart allowance, they are

doing it tough. They are paying

a lot in private rentals, the

housing measures in the package

are welcome. You can talk to

people on Newstart who are

spending sk like $20 a week on

food -- something like $20 food -- something like $20 on

food. One man spends it on bake

beens. We can do better in

Australia, if we face tough

times with greater

unemployment, which seems to be

every prediction is telling us

this, we have to do something

about those Australians that

are struggling. It's called a

fair go. What needs to be done

about those Australians

struggling, living on $220 a

week, what should that be

increased to. We've been

arguing it should be increased

by at least $30 so there's a

$50 difference between what you

get on New start as a single

and the single aged

and the single aged pension,

there was a lot of discussion

last year, policitians saying,

"I couldn't survive on this

that", this is $50 less a week,

we'll continue to argue those

involved with the involved with the unemployed

about how tough it is, and how

we as a country we as a country can afford to

pay - we need to pay more to

knows that are unemployed knows that are unemployed while they are in the transitional

period of getting a period of getting a job. Should

that have been included in the

package. I believe it should.

ACOSS certainly put together

its own stimulus package,

delighted that some of the

measures we talked about are in

the package today, particularly

the housing, a lot of long and

hard lobbying was done for hard lobbying was done for more

affordable housing, social

housing, this is the biggest

boost. We can't leave the unemployed in terms of their

survival behind. We can create

jobs, that's fantastic, we can

support them into jobs, while support them into jobs,

they are doing that, they are

struggling. How soon do you

want the payment

increased. Yesterday, Joe. Are you optimistic the Government

will move on it though if they haven't included it haven't included it in this package, they'd presumably

don't have much money

left. What - what we would like

to see is a consideration given

to those who are really doing

it tough on an unemployed

allowance. While measures are

there to get them from that

into the paid work force, that

will take time. I think there

needs to be consideration

given. ACOSS won't give up on

it, there are other voices

calling for an increase as

well. What is the danger if

that doesn't happen. What we'll

see is the kind of - we have 2 million Australians currently

doing it tough, who are finding

the kind of gap between the

haves and the have not greater.

As we go into tough economic

times, we'll see that gap I believe times, we'll see that gap grow.

I believe fundamentally

Australians don't want to see

that. They believe that we

should have a fair go, and that

we need to have Government

focussed on the fact that we

keep that - we don't see that

gap widen as we go into tough

economic times. Clare Martin

from ACOSS, thanks for talking

to us this morning. We'd like

to hear your thoughts on the to hear your thoughts on

Prime Minister's plan to Prime Minister's plan to keep

the Australian economy ticking

over. You can send emails to:

In other news this morning In other news this

Far North Queensland has been

swept by some of the worst

flooding in 20 years, several

towns around Ingham have been

cut, some homes evacuated after

400mm of rain fell in two days,

more rain is expected with

another low pressure systeming

offshore. There's been an

explosion at a building in

Sydney's inner west believed to

be the headquarters of a Hell's

Angels motorcycle club. Flying

debris hit shop fronts up to 70

metres away and a tattoo

parlour were shot out. Police

are looking for two men who

drove away from the Petersham building in a dark green building in a dark

four-wheel drive. No-one was

hurt. There's pressure on the hurt. There's pressure on

Federal Government to overturn

a ban on aid spending linked to a ban on aid spending linked

groups giving advice an

abortion in developing nations

the Greens will move a motion the Greens will move a

in the Senate calling for the

restriction to be abolished.

The policy was introduced the Howard Government in The policy was introduced by

1996. The international

community is calling for Tamil

Tigers to surrender to the Sri

Lankan military to avoid death,

Government soldiers seized a Government soldiers seized

number of hideouts including a

complex believed to be the

separatist leader's bunker. The

army has begun a final

offensive in a civil war

lasting 25 years, claiming

75,000 lives. 200 refugees

believed to be ethnic Rohingya

fleeing from Burma have been

rescued off the coast of Samatra, the second group to

afb in the past month and afb in the past month and say

they were beat en by Thai and

Burmese soldiers, Indonesian

police claim to have

intercepted a boat carry ing

Afghan asylum seekers to

Australia. Iranian State

television showed what the

country could achieve despite

international sanctions, Tay

lan insists the satellite

called 'Hope", will be used for research.

State television proudly

showed the launch in its early

morning Bull tins, the

satellite is called Amid,

meaning home. Satellite and

rocket made in Iran, a source

of national pride. President

Ahmadinejad personally

supervised the launch

authorising it with the words

"god it great". Being, "God is

great.". The satellite will be

used for telecommunication,

with heavy political significance as significance as well.

TRANSLATION: This satellite

sends a peaceful message to the

world. The message is in

Persian, but I hope it's

received by the whole world. In

a snowy Tehran they weren't

sure what to make of it. When I

saw the news, it seemed very

strange. Looked rather unrealistic. I am not sure that

they can do this, if they do

it, I will be so glad. But just

as with Iran's nuclear as with Iran's nuclear program,

this is technology that could

be diverted to military

purposes, and what about the

danger of a long-range missile

with a nuclear wore head.

However much Iran insists the

technology is peaceful, however

much Iran complains about

double standards, this

satellite launch is bound to be

a wake-up call for the west as

Americans and its allies reassess their approach reassess their approach towards

Iran and its nuclear

program. Heavy snow storms

spread across Britain causing

the closure of 5,000 schools

and causing disruption to

transport. Wales and the West

bore the brunt of the severe

weather overnight. Forecasters

warn that more snow is on the

way. The the BBC with this

report. Day two, and even more

of Britain turned white. From

West Wales to East Anglia, from

Cornwall to Hampshire, the snow

brought more communities

shivering to a standstill. It

was to be another day of chaos

and confusion. Some commuters finally managed to get finally managed to get into

Central London today, but just

when they thought they when they thought they made it,

our cameras chanced upon these

scenes at Waterloo station. Network Rail should

have salted the steps, it's have salted the steps, it's a

poor effort. Crowded train,

managed to stop at every

station, it wasn't too

bad. This was the scene in the

Brechten beacons with bus roots

cancelled passengers had to

make their own way and help one another out to

another out to reach their

destinations. Once again airports have been struggling

to cope. At Heathrow they

worked around the clock to worked around the clock to keep

runways open but cancellations

and delays were

inevitable. These children in

Suffolk struggle to the snow to

their lessons, across Britain,

5,000 schools were shut. You

can see why this one in Truro

had to close. Elsewhere some

parents were angry about what

they saw as unnecessary

disruption, here in Devon, disruption, here in Devon, they

said they had to do it. I've

been here more than 10 years

now, this is the first time we

closed it. Hopefully we won't

do it too often. It's unusual

for North Devon, this

weather. The NHS has been hit.

This marge district hospital in

Barnes tea ball North Devon was

forced to close outpatient clinics followed by clinics followed by smaller

community units. This is the

result. Normally you'd have to

fight for a space in this

hospital car park, this whole

area would be full of vehicles.

But today plenty of room. With

ambulances unable to reach many

rural areas of Devon and

Cornwall military helicopters

were needed to rescue those in

need of medical treatment.

Flying in these conditions is a

hazard in its own right The

definition all changes,

everything looks the same on

the ground making navigation

harder, the flying of the

aircraft when you land, you

blow-up big snow clouds making

orientation for pilots an issue. For many there was less

to worry about, another

unexpected day off. These

youngsters in Cambridge shire

making the most. Family dogs

playing the parts of his kiss,

if you wonder what next -- --

his kiss, if you wonder what

next, look at this, off the

cornish coast a

cornish coast a tornado. It may

be thawing in some place kes

but the snow is unlikely to --

places but the snow is unlikely to disr altogether. The to disr altogether. The BBC

with that report. You are

watching BBC. The top stories -

the Prime Minister will be

trying to win support pore his

42 billion mini-Budget a day

after saying it's the best

chance of warding off a

recession. Kevin Rudd case the

measures will save up to 90,000

jobs, but will force the Budget

into deficit for the next four

years. Hundreds of people are

forced from their homes

forced from their homes as Far

North Queensland is swept by

some of the worse flooding in

20 years, several towns around

Ingham have been cut off after

400mm of rain fell in two days.

More rain is expected with a

cyclone developing offshore. The international community calls for Tamil community calls for Tamil

Tigers to surrender to the Sri

Lankan military to avoid death,

the army beginning a final

offensive in a civil war

lasting 25 years, claiming 75,000 lives.

Now for a look at Now for a look at the

national papers, we are joined

by plain English editor and

creator of satirical 'The creator of satirical 'The Bugle', Andrew Pegler. Good

morning. Good morning. You have

42 billion topics to talk

B Yes, yes. We have. Look, it

is a big news day as we

discussed. Luckily it's not a

small New Zealand day,

yesterday was the -- news day,

yesterday was the biggest day

in Australia's macro-economic

history. We had a 1% rate

reduction in there 42 billion

in spending to stimulate the

economy. Or the word that economy. Or the word that the

Liberal Party have been ramming

home is cash splash, they like

that one, because it rhymes. I

notice the papers adopted that this morning as a this morning as a description

of it, rather than saying it

was a stimulus package, using

the cash splash. They are.

Absolutely from a

communications analysis

perspective the Liberal Party

would have done well on this

one. It worked. Yeah, absolutely. They got absolutely. They got it

through. The figures

obviously, they've been covered

extensively by you, $42 billion

broken into nation building infrastructure spending, on

school building, which is good,

and Kevin Rudd is spending

money on building science

wings. That's nice. The

Australian up saying Rudd goes

for broke. Did they certainly

support the initiative. It

seems to be so. I imagine it would be difficult not to support stimulating the economy

in times like now. The debate

rages do we go into deficit, surplus, an interesting thing

for me in the issue is the ideological discussions going

on. You have almost the left

and the right wing of politics

divided over do we go into

surplus, or deficit. We know

that in an upcoming article in

the monthly, Kevin Rudd the monthly, Kevin Rudd refers

to the great neo-Liberal

experiment of the last 30 years

falling on its face

essentially. Thank you very

much Reagan and Thatcher, and

the response from the the response from the other

side of politics has been the

neo-Marxist are on the rise,

that's been the left wing of

politics supposedly poised to

nationalise banks, and take

over this, that and everything

else. And run long-term

deficits. We hear the deficits. We hear the line

Whitlamesque used to describe

the spending. And Rudd

countering it saying, "I'm the

economic Conservative", being

rigid about that. That is

important to the electorate in

a time like we are in now where

fear is a big player. You Wayne

Swan a steady guy at the ship.

-- you want a steady guy at the

ship. He said, "We'll throw absolutely everything we can at

this", it seems he was. Whether

they have other bullets in the gun, I am not sure at this stage. That is obviously the

big elephant in the room, it's

hard to go past that one. Another story I noticed Another story I noticed was

Paul Keating - it's good to

have Paul Keating back, I like

it when he comes out of the

shadows, says a few things and disappears. We blame

'Lateline'. As you should, 'Lateline'. As you should, one

of the great shows on

television. He said Monday

night that essentially if we

are to come out of this global

financial crisis, China and

India need to be more accounted

for in the world order. He says

the central question for Barack

Obama is is China a commercial xet tore that has to be strategically -- xet tore that has to be strategically watched or a building block for a multipolar world. It's good when Paul Keating comes out with world visionary statements. I do miss those. when he talks about how economies such as India and China really aren't going to want to have a bar of America dictating terms to them now about an international recovery plan when American security markets getting us into the problem in the first place. There's an argument - the theory has been raging theory has been raging whether we are living in a post-American world. Paul Keating is playing to that theory Words like post and neopop up all over the neopop up all over the place as a result of the global

financial crisis, it's like we are reviewing or revisiting entrenched philosophies we have, the post American world, I haven't heard that, it's great. An interesting book if you want to look at it. Something in the 'The Herald Sun' caught your eye.

Anything to do with Mick Gatto

catches my eye, I like to duck

first. He came out swinging

over his portrayal in the

'Underbelly' prequel. It shows,

apparently a reference to him

as a hit man, he claims it's

defamatory and "a load of

nonsense", he's unlikely to

consider legal action.

Surprise, surprise. I think Surprise, surprise. I think

Mick likes the publicity, it

helps elite crane's business.

Are you sure the quote was a

load of nonsense. I'm reeling

here from the reck tied ud that

the man displayed with a choice

of language. I think he knows

what does get into print. If

anyone does. The accusation is

in the show someone goes into a gym looking for

gym looking for a hit man to do

a job. Mitt Gatto is referred

to as the man that could

perform the task and the

response from the person

looking for the hit man looking for the hit man is... I

don't know if we should give

the response. It's funny. If I read it out. Mick Gatto, "He

couldn't hit the back-end of a

bull with a wet bag of bull with a wet bag of rice",

that's the offensive part. That

may be what he's cross may be what he's cross

about. There's another thing I

thought was interesting from is

that visual point of that visual point of view. I

don't know if we have a spot of

this. We should get a shot of

that. Tell us about that. This

is Pauline Hanson, a portrait

of her done for the Moran

Contemporary Photographicic

Prize, it's Pauline Hanson as

you have never seen her,

Doughty, weather Doughty, weather beaten,

scrubbing the Australian flag on an old washing board.

There's a number of ways to

take this, it could be regarded

as Pauline Hanson getting her

hands dirty for Australia or

whitewashing Australia. It

depends which side your

politics lie. Interestingly the

photographer said although

she's no fan of Pauline Hanson

she found her to be a she found her to be a genuinely

lovely person. That's something

I keep hearing. She is, I had

deals with her in Queensland.

She's a reasonable person to

deal with. Amazing how she

keeps popping up. She's a keeps popping up. She's a part

of the firmament. We can't get

rid of her despite whether you

do or don't want to. The final

story, just for nothing else

other than the photograph other than the photograph which

is fantastic,

is fantastic, it's witty. Is

dreadlock holiday. This dreadlock holiday. This is

Andrew Symonds considered unfit

for tour. That's a 10 CC

reference, of course. It is,

indeed. For those people out

there. Great song I thought he

was ruled out because he's

emotionally unfit. Now, that's

a big call, I would have

thoughts. He's now facing an uphill uphill battle to convince

counsellors, and his employers

that he can again represent his

country when the situation is

reviewed. It looks pretty

unlikely. We'll talk about that

in sport with Paul Kennedy in a

moment. Andrew Pegler, good to

have you on board. Thank you. A

reminder you can watch all reminder you can watch all of

'ABC News Breakfast' streamed

live. Now with live. Now with Sport and more

on the cricket here is Paul

Kennedy. Thanks, captain Ricky

Ponting and

Ponting and vice-captain Michael Clarke both win Michael Clarke both win the

Allan Border Medal. When the

announcement was made Ponting

looked confused, he thought he

had no chance of winning, it's

the first tie in the awards 10

year, the modal Ponting's

fourth, Clarke's second, the vice-captain winning

vice-captain winning Test Player of the Player of the Year. Player of the Year. Brack where

are was the best performed

one-day player, Phillip Hughes

named Bradman Young Cricketer

of the Year, the best State

player award going to clinker, and Shelley Nitschke was recognise's as recognise's as women's Player

of the Year. Andrew Symonds

wasn't at the function and

won't tour South Africa, he's been ruled out of international

matches for now. The all-rounder is receiving help

for his emotional state. It

doesn't help that he doesn't help that he hasn't

been making runs at any level

this summer. Socceroos voch Pim

Verbeek says the lot -- loss Verbeek says the lot -- loss of

Brett Emerton for the one

campaign is a set back, he says

Emerton has class in defence,

announcing a squad for the

Japan clash. Vince Grella is

back, and Harry Kewell on a

stand-by list. Other soccer news

news - surprise, surprise AC

Milan want to deem David Beckham. LA Galaxy won't be

happy to hear that. Reminds me

of the movie 'Indecent

Proposal' where Woody lets his

wife go to a man for a million,

and she doesn't want to come

back. AC Milan can afford

back. AC Milan can afford

him. Yes. There'll be

contractual disputes. Now here

is Vanessa O'Hanlon with a look

at the weather and massive rain falls around North

Queensland. It is set to

condition with heavy falls and

flooding expected over the next

few days, an active monsoon

causing this. Some areas such

as Ingham had February rainfall

average in two days, Townsville added

added 98.8mm since 9 ooment.

Let's go to the satellite --

9am. Let's go the satellite.

Rain and storms over the

tropics, particularly over

North Queensland. Cloud over

Tasmania in a jet stream, no