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Josef Fritzel changes his

plea and admits he is guilty on

all charges of rape, imprisoned

and murder. He now and murder. He now faces life

in prison. The Federal

Government says it has to pay

back $300 million in alcopop

taxes, after its plans were

blocked by Steve Fielding and

the opposition in the Senate.

The head of AIG tells a US

congress the cold realities of

competition forced him to pay

out executive bonuses. Despite

receiving billions in

government handouts. And Bryce

McGain awaits word on his

delays possible test debut as sickness

delays the announcement of

Australia's line-up for the third test.

Good morning, it is Thursday

the 19th of March. I am Joe

O'Brien. I am Virginia Trioli.

Breakfast - the The top story on ABC News

Breakfast - the Austrian man

who locked his daughter in a

cellar and fathered 7 children

with her has changed his plea

to guilty on all charges,

including murder. Josef

Fritzel had previously pleaded

guilty only to rape and incest

but he changed his plea after

watching footage of his

daughter's testimony. He is

due to be sentenced tomorrow

and faces life in prison. The

BBC's Richard #3w6789 i -

BBC's Richard #3w6789 i -

Bilton reports from San Poelten

in Austrian. This is Josef

court this morning. He had no Fritzel's lawyer arriving in

idea of what was about to

happen inside.

Frit Fritzel had spent yesterday listening to the

testimony of his eldest

daughter Elisabeth. In a

prerecorded interview she had

described 24 years of horror

and abuse, at the hands of her

father. What father. What Fritzel saw on

these screens made for a

dramatic start to today's

proceedings. The judge asked

Fritzel how he felt after

watching the prerecorded

testimony of his daughter.

Fritzel responded with just

three words. In a low voice he

told the court "I plead

guilty". He went on to say, "I

was hoping the little one would

survive but I should have done

didn't something. I don't know why I

didn't help. I'm sorry". So

Fritzel has now admitted

murder, rape, incest,

enslavement. Coercion and

false imprisonment. As a dramatic morning in San Poelten

court ended I spoke to

Fritzel's lawyer. He said he

had changed because he had seen

first time videos of Elisabeth

and he had seen and he had seen the first time

how she had this - how she had

thought about this thing and

how was her feeling about the

facts. How was that for you to

hear him talk like that? For

the first time he was accepting

the horrors? I was very, very

surprised because a man - his

personality, he always want to be powerful. be powerful. I was very

surprised it was possible for

him now to speak in for whole

public how guilty he is. Why

would he plead not guilty

initially then if he is now

just accepting he did do it? I

think it was not possible for

him to plead guilty because it

means he has no power. You

understand me. That was the

problem for him problem for him This trial has

seen Fritzel's attempts to

control, covering his face as

he arrived in court. Today the jury heard from the

psychiatrist, who assessed his

mental state. What I told the

court was Mr Fritzel has never

been mentally ill, and that he

has always been sane. In the

he was always legal sense of the word. That

he was always able to discern

between right and wrong and

that he always knew what he did

was wrong. Fritzel will spend tonight in the prison attached

to the court. Under Austrian

law despite the confession a

jury will still assess the

charges. But tomorrow Josef Fritzel will face justice for

what he did it.

In other news this morning, the Federal Government says the Federal Government says

that its legally obliged to

return $300 million it has been

collected from its alcopops

taxes back to distil er, the

government's tax hike was defeated in the Senate

yesterday. The bill's de blows

a $1.5 billion hole in the

budget over the next four year,

the chief executive of US

the bonuses insurance giant AIG admitted

the bonuses paid to some

executives were in his words

distasteful. Edward Liddy came

under fire from US politicians

after his company paid millions

of dollars in bonuses follow

ing a $180 billion US bail-out.

Mr Liddy told a congressional

hearing the cold realities of

competition meant the executive

contracts had to be honoured.

Bernard Madoff's auditor has

after being charged surrendered to authorities

after being charged with

securities fraud. Madoff who

insisted he acted alone was

jailed last week after pleading

guilty to 11 counts of fraud,

money laundering, perjury and

theft. His accountant David

Friehling is the first person

to be charged after Madoff and

faces up to 1050 years in

prison - 105 years in prison.

The Navy says it may have

located 31 containers of

ammonium nitrate which fell off

coast last week. a cargo ship off the Queensland

coast last week. The 'Pacific

Adventurer' lost the containers

and more than 200,000 litres of

oil during rough seas brought

on by Cyclone Hamish. The navy

believes it has located the

containers in waters east of

Cape Moreton and remark made

this week by the Pope that

condoms only aggravate the

problem of HIV AIDS has been

attacked by World Health

Organisations, the French foreign ministry has foreign ministry has also

voiced its concern. The UN

aides program says condom use

is an essential part of

preventing the disease. The

Rudd Government has slammed the

Coalition and Senator Steven

Fielding for scuttling the tax

hike on alcopops. Senator

Fielding said he blocked the tax increase to draw attention

to alcohol advertising which he

says is the real problem. Here

yesterday. is some of what he had to say

yesterday. Let's gate real.

Let's front up to the

Australian public. Let's have

a fair dinkum debate rather

than a debate about tax. We

are talking about

binge-drinking. A $15.3

billion problem, and here we

are, we are talking about tax.

They hijacked the debate and we

should be talking about what

round really make a difference

in Australia. 72% of

advertising restrictions. Australians want alcohol

That's the real measure that

the government have missesed

the opportunity to do. Maybe

they will wake up tomorrow and

look at that as a real measure.

Senator Steven Fielding

speaking there in Canberra

yesterday. For more Ben

Worsley joins us now from

Canberra. Senator Fielding has

made a stand on this issue.

How has he emerged? Not very

popular. Put it that way. popular. Put it that way. You

countries the government's - you can understand the

government's frustration.

Separate what you think about the merits of the legislation.

So concerned is Steve Fielding

about binge-drinking he is

blocking legislation that would

offer $50 million as part of

the Greens and Nick Xenophon amendments towards

binge-drinking programs and so

concerned is the Coalition

about the budget deficit its

position on the legislation has

helped blow a

helped blow a $1.5 billion hole

in the budget over the next

four years. So yes, there is

grow ing frustration. What I

think is interesting is the government has always been

reluctant to criticise any of

the crossbenchers in the Senate

in they do contribute to blocking some legislation

because they are go to have to

deal with them down the track.

This siem the gloves - time the

gloves seem to be off. They

have finally had a gutful. If I

I can use that expression, of

Steve Fielding on this one.

It's a major headache for the

government because obviously

apart from the money they have

to gore go into the future it

seems that $300 million has to

be refunded. Not a great time

to put that amount of money

back to major distilling

companies. Of course the

Senate last night did descend into

into some sort of farce when

Senators from both major

parties missed the vote. As

I'm sure you have seen in the

papers and the news, Nigel

Scullion missesed the initial

vote. He is a Country Liberal

Party member. So initially

Labor actually got its way but

then because of Senate

convention they returned the

vote again and then a Labor

Senator missed it. But

eventually what it comes down

to is this legislation at the moment is

moment is dead and buried. Is

the Fair Work bill heading that

way as well? It's hard to

tell at the moment. The

sticking point remains, as it

has, as we have been talking

about for the last couple of

days, the definition of a small

business. The threshold at

which unfair dismissal

protection kicks into place.

Julia Gillard insists on 15 employees, Nick Xenophon employees, Nick Xenophon wants

20. The Coalition wants 25.

It seems at this stage that

no-one is giving ground on, that despite even the Coalition

being apeaced by some of the

government's changes so far.

But as we mentioned Julia

Gillard is sticking to her guns

on the unfair dismissal

provisions. She says she has a

mandate, let's look at what she

said on the '7:30 Report' last night. We went to night. We went to the

Australian people with an

election policy. That election

policy said we would give them

unfair dismissal laws that had

special arrangements for

businesses with fewer than 15

employees. We are insisting on

our election policy. It's what the Australian people voted

for. And we are insisting in

the name of the Australian

people, that it be delivered by

the Senate. We designed

the Senate. We designed our

workplace relations policy for

all economic environments, for

the good times and for the

tough times. We have got the

balance right. The Australian

people endorsed that balance.

And it is always a good day for

fairness in Australian

workplaces, and that's what our

fair work bill delivers. We

had a very clear policy we

took to the Australian people.

Our unfair dismissals policy Our unfair dismissals policy is

crystal clear and we are saying

to the Senate that maybe they

have got different views about

the best way of doing things

and maybe at some future

election they want to put those

views forward for the

adjudication of the Australian

people but the Australian

people voted in 2007. They

voted tor Labor's plan and

Labor's plan should be put into

law by the Senate. Julia Gillard speaking there 'Lateline' last night and Gillard speaking there on

parliament is supposed to rise

tonight. Ben but you might be

there for a little longer.

Thanks for talking to us this

morning. Returning to

Washington now where the chief

executive of the head of AIG

has been defending his

decision to pay bonuses to his

executives after the firm was

given $180 billion in handouts

from the government. Some congressmen are

congressmen are threatening

subpoena the names of

executives who received bonuses

but Edward Liddy said this

could put them in danger. I am

just really concerned about the

safety of her - our people let

me read two things to you. All

the executives and families

should be executed with piano

wire around their necks. If

the government can not do this

problem we the people will take it in our

it in our own hands and see

justice is done. I am looking

for all the CEOs names, kids

where they live etc. You have

a legitimate request. I want

to protect the well-being of

our employees. Edward Liddy

the chief executive speaking.

That congressional hearing is

still going on now. For more

Mark Simkin Jones us from

Washington. That little built

of evidence if you leak or commentary just there from Mr Liddy,

Liddy, that indicates the

super-heated environment in

which all of this is taking

place? It really is

extraordinary. There is a

tradition here of CEOs going

before congress being referred

to as "human pinnatas". A

reference to the kids toy, that

paper mashay cartoon character

or animal filled with lollies

stick until and kids will beat it with a

stick until the lollies pour

out. But what's going on here

takes that in a whole new

direction. This is law-maker

politician after politician

just ripping into this guy,

saying things like "AIG stands

for arrogance, incompetence and

greed" and they really are

gunning for Mr Liddy. Although

he was able to defend himself

with those quotes of the death

threats he and his staff have threats he and his staff have

received and in many AIG

offices around the United

States now there are armed

guards outside. An indication

of just how fierce the heat is

getting. Edward Liddy has said

that he has asked his

executives to do the right

thing. And to return the

bonuses. Apparently according

this morning some of them are to testimony I heard earlier

going to do that Mark? Yes,

he has said that he wants the

people who have received people who have received this

money to repay at least half of

it. He says some people have

already offered to repay all of

it. But, of course, we are not

sure exactly who is doing this.

Who is doing what. And that's

what actually prompted that

exchange you heard before I

came on the screen. Barney

Frank the mass chewet s

Democrat was Democrat was demanding a full

list of who got what, who has

given back what and Mr Liddy

was refusing to do so unless

confidentity was assured and

they were not going to assure

that at all. There are still a

lot of unanswered questions

here about who got what and who

is giving back what but that is

the bone Mr Liddy has thrown

the committee today half the

bonuses he has at least asked

for them to give at laugh half for them to give at laugh half

the bonuses back Staying with

the context in the super heated

environment in which this issue

has been unraveled. Barack

Obama and his Treasury

Secretary Timothy Geithner are

still under fire about this as

Geithner come into the well. How does Timothy

picturer? Well it is bation

basically that age-old

Washington question, who knew

what and when. And Republicans

are taking aim at - an already

weakened Timothy Geithner. He weakened Timothy Geithner. He

is not impressed. This wonder

kid that was able to save the

financial system has not done

so yet. He is looking

vulnerable. The sharks on the

Republican side can smell the

blood in the water and they are

basically saying "why didn't he

stop these bonuses. He agreed

to give $30 billion more to AIG

a few weeks ago. Sure ely he a few weeks ago. Sure ely he

should have known these bonuses

were paid". So today you had

Barack Obama actually stand in

the rose garden and utter those

words I think that every public

servant dreads hearing from the

chief executive "I have the up

most confidence in my Treasury

Secretary". When you are

forced to say that, it sucially

not a very - usually not a very

good sign and sadly of course

for many people who have heard

that it is not long after that

that - well, the end is nigh,

put it that way. It is true.

It's a phrase you never want to

hear, neither do you ever want

to utter it Mark Simkin we

managed to get through that conversation without once

saying Gordon Liddy. So we are

doing OK. You remember the

jailed watergate author. I

think this AIG case is a prime

example of politicians having

to show some sort of restraint

when they make statements in

these situations because we

heard that Senator talking

yesterday about these

executives should go and commit

suicide. And now we are

hearing that they are getting

letters saying that horrible

interview with Mark Simkin. quote before you did that

And it just shows the need for

politicians to exercise some

restraint. It is very true.

At the same time there is

always going to be that element

in the population who take it

too far. You know you receive those letters from time to time

too. So there is always going

to be the lunatics out there.

But restraint is the one thing that's missing right now isn't

it? The politicians should be

lighting the fire and inflaming

it. Let's take a look at the

front pages of the major

newspapers round the country.

'The Australian' reports the

Rudd Government's ambitious

plans for major economic

infrastructure are at risk

because of a lack of available

funding from the private

sector. The Rudd Government will slash the size of golden handshake for company

executives but the exists

contracts of executives will be unaffected by the government's

clamp down on executive

remuneration according to the

'Sydney Morning Herald'. The

'Mercury' reports those who try to bend the ruls of the

government's golden handshake

legislation will face criminal

charges. They also have the

story of a Hobart grandfather

who's clever money management

will see him miss out on the government's stimulus package.

The 'Daily Telegraph' says the

government's new executive

payout legislation is a greedy

boss blitz and there is a

picture of Sally Padey who was

forced to shoot the lioness who was

was forced - she was forced to

shoot. The 'West Australian'

reports the government may try

to reintroduce the alcopop

bills today in a hope of a back

down of Senator Fielding. The

Adelaide 'Advertiser' reports

the South Australian Parole

Board chief has blamed weak

laws from a tragic stabbing

attack that killed a man and

young boy. The Territory young boy. The Territory news

reports the grandmother of

Briony Goodsell has called for

an animal of crocodiles in the

Northern Territory. The 'Age'

says revelations the Royal

Women's Hospital told the

government it had submitted

false data about waiting lists,

has prompted accusations of a

high level cover-up. The

'Courier Mail' says cancer

patients could lose valuable

taxpayer funded subsidies under

a plan to means test the a plan to means test the

Medicare Safety Net. And the

'Herald Sun' reports taxpayers

will foot half of the $3

million bill to lure Tiger Woods to the Australian Golf

Tournament in Melbourne. There

is a golden handshake as well.

If you would like to send your

feedback on any stories we are

covering today -

The top stories on ABC News

Breakfast - the Austrian man

who locked his daughter in a

cellar and fathered 7 of her

children has pleaded guilty to

all charges against him.

Including murder. Josef

Fritzel changed his plea after

watching footage of his

daughter's testimony. He is

due to be sentenced tomorrow, due to be sentenced tomorrow,

and faces life in prison. The

Federal Government says its

legally obliged to return $300

million collected from its

alcopops tax to distil ers

after its plan was defeated by

the Senate. The bill's defeat

blows a $1.5 billion hole in

the budget over four years.

The head of US insurance giant

AIG blames the cold realities

of competition for forcing him

to pay millions of dollars in

bonuses to his executives.

Edward Liddy was speaking

before US congressional leaders

who want to know how the firm

can justify paying bonuses

after being paid $180 billion

US in government handouts.

To finance news now and

unemployment in Britain has

climbed above 2 million. The

highet level since 1997. The

jobless rate was released as

record numbers of Britons

signed up for sell benefits,.

The Rudd Government says not

all companies listed on the age stock exchange will be covered

by new rules cracking down on

executive payouts. Bruce Thieli

is chairman of Athic who was on

'Lateline' last night. I think

it is fair to look at how the system is working, that's the

current mood. Arbitrary to say

one year - I'm not in a

position to judge. I tend to

step back from it and say, what

is reasonable? But also what

is competitive. In a sense if

you are trying to go to the

world to get world's best

executives, and get them to

come to Australia, this is just

off the top of my head - and

say "by the way, one year's in

retirement". Is all you will

get - is all you will get - I

think you need to reflect on

that. Because I think a lot of

the - I mean you can't justify

the excesses but my take on it

is one of the key drivers is

the ability to go to the international markets and

somewhere along the line I

think the BHPs and these

companies need to be able to

access the world. So we just

need to be a bit careful.

Speaks on 'Lateline' business

last night. Take a look at the

finance figures now and there

are more positive signs on Wall

Street overnight. The Dow

Jones is trading almost 2% up.

The NASDAQ is trading around 2%

higher too. The S&P 500 is up

by around 1.5%. In Europe the

FTSE closed down 52 point, oil

was $48 US and the Aussie

dollar is buying 67 US cents.

50 Euro cents and 47 pence

Stirling. In a few minutes

Vanessa O'Hanlon will be here with a look at the national

weather. Also ahead we will

have a review of today's

newspapers and this morning we

will be joined by the 'Plain

English' editor Andrew Pegler.

With sport here is Paul. Good morning, announcement of the

Australian cricket team to play

South Africa in the third test

at Newlands tonight has been

delayed. Marcus North, who

would certainly be in the team

to bat at number 6 did not

attend the final training

session because of gastro. It

makes Bryce McGain's debut more

likely but if North is OK the

final spot will be McGains or

Andrew McDonald. The captain's

Ricky Pontings and Jacques Kallis have held their final

media conferences ahead of that

test. Ponting's concerns were

selection-based while Jacques

Kallis is wondering how he will

do his job and make runs and

take wickets. I don't know if

with are leans right at the

moment. There has been serious

discussions in the last 24

hours about playing the spinner

out there in this slenue.

Looking - venue, looking back

through the records spinners

have done OK here. They have

had to work pretty hard though.

Which is pretty much right the

way through South Africa but I

don't think there is any real

standout reason why you would

make that change. We have a

number of things to consider and Marcuses health is one of

those issues. I have always

said to be an all-rounder and

captain is probably the hardest

job in the world. That's why I

don't think there are too many

that do do it. Fortunately I have got bouchy next

have got bouchy next to me. It

is a tough job but it is once

off. I have enjoyed doing it

in the past. And look forward

to the challenge to be brutely

honest. The central coast

Mariners took a point away from

their Asian Champions League

game in China overnight. They

looked like creating an upset

before the home team equalised

late. Let's look at the goals

now. A shot. And Jin have

scored Flat-footed. Brad

porter. Symonds goes deep.

Merger with the header. Huge

shot has taken a deflection and

the Mariners - Really just puts

out his left foot.

Porter. Simon. Matt Simon.

Miss judges the bounce of the

ball. It is actually - Not a

good tough - touch from Simon.

Head er, flecked on. They

have equalised. We are back on

level terms. Making the run.

And just flicks it on. Either

team to get a late goal. No,

there is not. It's a point a

piece and it is a hard-earned

point for the central coast

Mariners. Swimmer Marieke

Guerer missed selection for

Beijing last year but won a

bundle of cash and a World Cup

meet. Now she has qualified

for the world championships.

Geoff Huegill meanwhile is a

step closer to international

competition, qualifying for the

final of the 50m butterfly.

The trials in Sydney last

night. Pushing that world

record mark. It looks like she

will just fall short but Guerer

is the gu are you. And tricket

also gets inside the qualifying

time. To go out there and do

your fastest. I am not exactly sure what happened. But you

know... I got there in the end.

Huegill is in the mix. It is

going to be very tight.

Djokovic wins. Let's see where

fugue fugue finishes. -

Huegill fens. He has got

second. It was very close.

Definitely tipped it over the

40 mark at the moment. So it

is like having Glen Boss on my

back riding me the whole way.

Another couple of NRL players

have been busted in booze

resulted incidents, Jake Friend

has been busted. We have a

discipline committee dealing

with every case on its merit,

in Jake's case he was given a

$10,000 fine and he will be

doing some rehabilitation. We

don't really care what other

clubs do or so we are happy

with our disciplinary committee

the way it works at the moment.

What it does do is allows up to

keep consistency and hopefully behaviour improves alongt way.

We have had a strict alcohol

policy for a long time now

since I have been here they

don't drink on the day of a

game what they do the day

after. After we have our rehab and video is totally up to after. After we have our rehab

them. It is extremely

disappointing what Jake did.

He put a lot of people under pressure including himself.

The general public on the road

at the same time. His

team-mates, the club. Everyone

is very disappointed but he is

very remorseful and hopefully,

obviously we expect him to make

better judgment in the future.

We run our club the best we

can. Why should can. Why should you tell you?

Are you accountable to the

public? No, we are accountable

to the Roosters and to our

board and if we feel like we

are doing the right thing.

Yeah, he is talking about

consistency there. Brad

Fittler. And which I think is

fine to try and get consistency

at your club but speaking over

all in the NRL at the moment

there is no consistency. Brett Seymou ru, from Seymou ru, from the Sharks has

been kicked out of a nightclub

and it looks like he is facing

some sort of sanction as well

and Brett Stewart sent a letter

from his lawyers to David

Gallop which indicates that he

may be challenging that pour

match ban that - four match ban

that NRL handed him. So

waters there. Stewart seems to be testing the

waters there. And Jake Friend

was for a high range

drink-driving incident and this

comes at a time when the NRL is

trying to get extra funding

from the Federal Government.

He is meeting with them today.

So maybe the $300 million

taken in alcopops tax could go

to the NRL do you think? A

nice little round o-Robin here

of drinking and sport. It is

unfortunate and it indicates the role and rise in the the role and rise in the power

of individual managers, and PR

people as well with these

sporting figures. On their own

and with their families someone like Brett Stewart would think

fair cop but then the manager

and agent gets in the ear, no

mate, challenge it and off they

government In round one guys

are going out and getting

drunk, from a performance based view.

view. It won't last long, Left

let alone the community expectations. ABC News

Breakfast can be watched

anywhere in the world. Here is

Vanessa O'Hanlon with the

weather. And some heavy falls

over Queensland. Falls up to

100 mm are possible over the

Coral Sea. This will cause showery showery conditions over eastern

Queensland and rain could be

heavy an and strong in the

coast. The low is expected to

develop into a cyclone. In the

meantime cyclone Eila is

sitting out to sea. It is not

causing any threat. A high

pressure system continues to

dominate the south. That will

keep the skies fairly clear

over the south with only a

little bit of cloud crossing

with a front over Tasmania, with a front over Tasmania,

Victoria an NSW. In Queensland

storms for the northern tropics

should be more isolated over

the central interior. Showers

over the east coast could be

heavy. In NSW the high pressure is bringing more

stable condition, it should be

a fine day apart from a few

isolated coastal showers around

the north. Victoria a few

slashes of light drizzle in the

south-west. Most of that will

northerlies will shift. be near the coast. Moderate

Tasmania isolated showers in

the west and far south they

could extend to this evening or

this afternoon. And in SA the

odd splash over the western and

south strat coast but nothing

too heavy. A moderate to warm

day in the south. Becoming hot

Mr the north. The west and

south coast of WA can expect a

few isolated shower, otherwise

day. you can expect a warm and clear

day. Isolated afternoon and

evening storms over the north

and western parts of the

Kimberley. In the Territory

the odd ostorm about the north

east coast otherwise fine and

sunny. Ahead to tomorrow -

hour. I will see you in half an

The top story on ABC News

Breakfast - the Austrian man

who locked his daughter in a

cellar and fathered 7 children

with her and changed his plea

to guilty on all charges

against him including murder.

Josef Fritzel had previously

only pleaded guilty to rape and

eincest but he admitted his

complete guilty after watching

footage of his daughter's

testimony. A psychiatrist told

the court that Fritzel was

likely to offend again. The likely to offend again. The

BBC's Richard Bilton reports

from San Poelten in Austria.

This is Josef Fritzel's lawyer arriving in court this morning.

He had no idea of what was

about to happen inside. Josef

Fritzel had spent yesterday

listening to the testimony of his eldest daughter Elisabeth.

In a pre-recorded interview

she had described 24 years of

horror and abuse at the hands horror and abuse at the hands

of her father. What Fritzel

saw on these screens made for a

dramatic start to today's

proceedings. The The judge

asked Fritzel how he felt after

watching the prerecorded testimony of his daughter.

Fritzel responded with just

three words. In a low voice he

told the court "I plead

guilty". He went on to say "I

was hoping the little one would

survive but I should have done

something. I don't know why I

didn't help. I'm sorry". So

Fritzel has now admitted

murder, rape, incest,

enslavement. Coercion and

false imprisonment. As a

dramatic morning in San Poelten

court ended I spoke to

Fritzel's lawyer. He said he

had changed because he had seen

first time the videos of

Elisabeth and he had seen the

first time how she had this -

how she had thought about this

thing and how was her feeling

about the facts. How was that

for you? To hear him talk like that? For the first time he

was accepting the horrors? Was

very surprised. Because a man

- his personality, he always

want to be powerful. I was

very surprised that it was

possible for him now to speak in for the whole public how

guilty he is. Why would he

plead not guilty initially then

if he is now just accepting he

did do it? I think it was not

possible for him to plead

guilty because it means he has

no power. You understand me.

That was the problem for him.

This trial has seen Fritzel's

attempts to control, covering

his face as he arrived in

from the psychiatrist who court. Today the jury heard

assessed his mental state.

What I told the court was that

Mr Fritzel has never been

mentally ill, and that he has

always been sane. In the legal

sense of the word. That he was

always able to discern between

right or wrong. And that he

always knew what he did was

wrong. Fritzel will spend

tonight in the prison attached

to the court. Under Austrian

law despite the confession a

jury will still assess the

charges. But tomorrow Josef

Fritzel will face justice for

what he did.

Remember you can always

contribute to ABC News

Breakfast. Any comments you

would like to make send an email to -

In other news this morning,

the Federal Government says its

legally obliged to return to

distil ers the $300 million

collected from its alcopops

tax. The government's tax hike

was defeated in the Senate

yesterday. After the Coalition

and Senator Fielding field

blocked the bill. The bill's

deit feet blows a $1.5 billion

hole in the budget over four

years. The chief executive of

the US insurance giant AIG has

admitted the bonuses paid to

some of his executives were

distasteful. Edward Liddy came

under fire from US politicians

after his company paid millions

of dollars in bonuses for

following a $180 billion US

dollar government bail-out. Mr

Liddy told a congressional

hearing the cold realities of

competition meant the executives contracts had had to

be honoured. The Navy says it

may have located 31 containers

of ammonium nitrate which fell

off a cargo ship off the

Queensland coast last week.

The 'Pacific Adventurer' lost

the containers and more than

200,000 litre of oil during

rough seas brought on by

Cyclone Hamish. The Navy

believes it has found the

containers in waters east off

Cape Moreton. A man who spent

27 years in prison for a murder

he didn't commit has been

cleared by the British Court of

Appeal. Sean Hodgson was freed

after tests proved DNA taken

from the scene was not his.

Hodgson was convicted in 1982

of strangling a 22-year-old

woman. His case is one of

Britain's longest serves

miscarriage s of justice. And

still in the UK, a huge blaze

has broken out in the building

housing the immigration court.

Feel ing - filling the London

skyline with black smoke T is

home to Britain's asylum and home to Britain's asylum and

immigration tribunal. They say

12 engines and 60 firefighters

have been sent to the blaze.

NSW authorities are secretly

combing the records of more

than 90,000 people a year. The

figures have come to light in

the Attorney-General's report

on telecommunications

interceptions and Charlotte Glennie reports civil

libertarians are among the

critics demanding to know why

so much snooping is going on.

If you think you can make

phone calls that no-one knows b

stop and think again. Police

and other agencies are looking

at who you are calling. Of the

183,000 telecommunications

report s accessed nationally last year Federal Government

authorities looked at 12%. But

NSW authorities, including

police, the police integrity commission, the Crime

Commission and the independent

commission against corruption

accessed more than half the

records. In Victoria

authorities looked at close to

48,000. Queensland 10,000, SA

just under 8,000, with the

Northern Territory and WA

trailing well behind. We don't

know why NSW law enforcement

agencies are using this type of

information more than any other

state. Is there an abuse going

on? We will never know.

Police and other agencies are

also monitoring who people send

text messages to. And what

sites they visit on the

Internet. Michael Fraser is a

lawyer specialising in

communications who says he is

concerned about the possible

abuse of power. Law enforcement

can authorise it themselves.

And we need to have some checks

and balances in place.

Somebody independent such as a

judge should be authorising

those and looking into whether

they are really warranted or

not. Government organisations

also listened in to more than

3,000 phone conversations last

year, almost half of them

authorised in NSW. No one

from the NSW police or State

Government was available to

discuss this issue on camera

but they all said tracking

phone calls and tapping

conversations gets results. A

spokesman for the Police

Minister said these methods

have helped secure conviction s

in a range of cases. From

child pornography to bribery

and drug offences. NSW police

already have more powers than

anywhere else in the country,

to search the homes of people

suspected of crimes without

them knowing about it. The them knowing about it. The

council of civil liberties say

s previoussy is being

sacrificed by a government

bents on getting populist

delivered to the police votes. The NSW government has

whatever powers the police have

asked for when they have asked

for them and has not subject

the police to enough scrutiny

about the way they exercise

their powers. We need some

balance. We need to work out

how to protect our privacy

while at the same time keeping

our community safe. Last week

this murder was masterminding

drug traffics using a mobile

phone in a NSW maximum security

jail. He made 19,000 calls in

six weeks. Hiding the phone

from prison guards, by passing

it to other inmates under his

cell door using dental floss.

His mobile fop was eventually

sized. Despite the success of

authorities in this case only a

fraction of criminal calls ever

come under scrutiny. Charlotte

Glennie with that report.

Pakistan has been hit hard by terrorism and the global

economic crisis. As a result thousands of Pakistani children

are being pulled out of school

and sent to work to help their

struggling families. With

literacy levels at a historic

low there is growing concern a

new generation with little

prospectses could be vulnerable

to hate. Sally Sara reports from Lahore.

At an age when most

Australian children are

enjoying primary school,

days are already over. 11-year-old Nawaz Khan's school

Trance trance my name is -

TRANSLATION: My name is Nawaz

Khan. I work in a mechanics

shop. I studied until grade 4.

My father is a poor man. He

picked me up from the school

and sent me to the mechanics

shop. Thousands of boys in

Lahore are living a similar

out of school story. They have been pulled

out of school and put to work.

They it earn 40 cents a day

from an 11 hour shift.

TRANSLATION: When I see the

boys walking past the shop into

their uniforms I want to go to

school like them. Nawaz Khan's

father has 8 children to

support. He earns $4 a day as

a rickshaw driver. And says he

can't afford to send his son to school.

school. TRANSLATION: All the

people in the neighbourhood are

leading similar kinds of hard

lives. The majority of us are

either rickshaw drivers or

vegetable sellers. It is

difficult to make ends meet for

all of us. Mof most of the

people in this neighbourhood

are from north-western

Pakistan, near the border of Afghanistan. They came to Lahore to escape the violence

but now the insurgency has

spread across many part s of

the country and government has

declared itself in a state of

war against Islamic

where is safe anymore. strementists. It seems no

TRANSLATION: I pray to God for

the welfare of Pakistan. This

situation is very unstable. I

am even afraid of my passengers. Nothing is written

on their faces as to who they

are. But this this classroom

there is hope. An aid group

called the Care cap foundation

has taken over the management

of more than 170 government

schools in Lahore. There is

still a long way to go. We

need another 12,000 schools in

Lahore. It is roughly about Lahore. It is roughly about

40% of the children are not in

school. Care brings its own

staff to work with government

teachers. The group is now

educating more than 125,000

children across Punjab

province, its founder believes Pakistan can't afford the

social cost of a generation

unable to read. My God, the

cost is... it is huge. It cost is... it is huge. It is

devastating. Look in the world

of today, if you are illiterate

tell me what are you going to

do with your life? What jobs

does the world have to offer to

the illiterate? 90% of the children who start primary

school in Punjab don't make it

to high school. They are

expected to share the burden of

poverty. As political poverty. As political

enstability increases in

Pakistan, its young people who

will have to live with its

long-term consequences.

Children already make up more

than half of Pakistan's

population. Without education,

they are vulnerable. There are

fears that poor uneducated

youth could easily be drawn

into fundamentalism. Some have

already been recruited into the

ranks of Islamic militants. Similarly Pakistani youth Similarly Pakistani youth who

were frustrated, jobless, they

are also in a large number

joined them and I think there

is going to be no early end to

it. If these conditions

prevail, most certainly the

Pakistani youth is going to be

the worst hit. Successful

governments have been so busy

fighting for their own survival

long-term planning for

education has been neglected.

Educational spending has

dropped to only 275% of GDP. -

2.5%. Look at the federal

budget. Look at the enrolment

issue. Particularly the

females. This is embarrassing.

One feels embarrassed

mentioning that. Pakistan's literacy rates have fallen

behind other nations in the

region including Bangladesh.

The school system has been The school system

under funded and poorly

managed. There are schools

without teachers and schools without buildings and

unfortunately there are schools

only on papers. And that kind

of conditions, if this is the

kind of situation that we are

going to face, I think the

youth is going to be totally

devastated. Nawaz Khan

Frightened he practices his reading.

Frightened he Faye forget what

he - he may forget what he

learned in a few short years at

school. He still hangs on to

emdroos of becoming a - he

still hangs on to dreams of

becoming a doctor.

education I can become a TRANSLATION: When I get an

doctor. I want to work with

some senior doctors and get

trained. I just need some

schooling.

The dreams of millions of

Pakistani children are on hold. Pakistani children are on hold.

As the country wrestles with terrorism, political upheaval

and poverty. This young nation

is struggling to provide for

its young people. Sally Sara reporting there.

You are watching ABC News

Breakfast. Let's take a look

at the top stories today - the

Austrian man who locked his

daughter in a cellar and

fathered 7 children with her

has changed his plea to guilty

on all charges, including

murder. Josef Fritzel changed

his plea after watching footage

of his daughter's testimony.

He is due to be sentenced

tomorrow and faces life in

prison. The Federal Government

says its legally obliged to

return $300 million collected

from its alcopops tax to

distillers after its plan was

defeated in the Senate. The

bill's defeat blows a $1.5

billion hole in the budget over

four years. The head of four years. The head of US

insurance giant AIG blames the cold realities of competition

for forcing him to pay millions

of dollars in bonuses to his

executives. Lid London lid was

e - Edward Liddy was speaking

before a US conaggressional

hearing and they want to know

how the firm can justify paying

bonuses after receiving $180

billion in government handouts.

For a look at the national

papers today we are joined by

the 'Plain English' editor

Andrew Pegler. Good morning.

Good morning. Our top story I

think is the one you are

focusing on immediately as

well. Yeah. The Fritzel case.

He has come out as you have

covered, and dramatically

changed his plea to one of

guilty to a variety of crimes

which frankly eguess most of us

are kind of lost for words in

terms of trying to deal with

this sort of thing. I was

doing some read being him

recently and I gather a little

of his psychic profile. He

grew up with his mother - his

mother raised him and

apparently beat him regularly.

He was charged with exposure at

some point in his 20s and there was some

was some link with a rape case

as well. So I guess the seeds

were there for this...

inexplicable series of events

that I don't think we need to

go into the finer details of it

because it is sort of - it's

beyond taste. But yeah. I

notice the daughter who was

kept in the cellar for 20

quleers or whatever it - years

or whatever it was her identity

has been kept a secret

has been kept a secret but one

media outlet reported she

actually was in the court when

he started giving evidence as

well. And that must have been

so empowering for her to

actually hear him then pleading

guilty and finally admitting to

everything that he had done. I

didn't know that. But I

imagine that would be a

tremendously cathartic

experience for her. The

suffering would be - it is -

suffering would be - it is - inexplicable and you can

imagine you know there will be

plenty to talk about as we get

through this. And learn to

talk about it more and more.

But at this stage I think I am

still in shock that even

happened. But it has and there

are learnings and hopefully we

will benefit in some way from

it. Closer to home of course -

there has been a great deal of

focus on the shenanigans in the

Senate. Which is becoming a

Senate. Which is becoming a

most fractious house at the

moment. You guys have covered

the basics but they essentially

need to pay back $290 million

to the distiliers, and Senator

Fielding joins the Coalition to

quash the tax. And he said

something to the expect of the

government has missed the

opportunity to break the link

between alcohol and sport. But

for me the interesting story is

for me the interesting story is

this meeting in the stairwell

that took place that kept

Nationals deputy leader Nigel

Scullion away from it. Now I

am trying to work out how Mel's

going off - and you need to be

- bells going off and you need

to be in the Senate to on a

crucial piece of legislation.

So curious to see what was going on in the stairwell.

going on in the stairwell. I

think that's the big story. We

can find that out and get back

to you we will. It was there a

remarkable situation. And I -

to I don't want to make life

too easy for these politicians,

but it is possible that they

can get stuck from time to

time. And that they do get

distracted by various goings on

when the bells are ringing and

when the bells are ringing and

outside. So without wanting to

be unkind about their role I

think they can have a hard

time. Sometimes they

deliberately miss the bell. It

is rackable how frequently it

does happen. In federal and

state parliament. It is

remarkable it happened in this

case and this was - every one

it was going to go on.

Stairwell gate. That's the

next thing we should look at. I

don't think it earns a "gate".

U just yet. The world bank has

cut China as growth forecasts

down to 6.5%, which is down a

per cent what it expected a

month ago. There is a little

bit of good news for Australia

in that the mainly raw

materials which Australia's

others supply were down in

February but not as sharply as

they were expected. So that's

good news. I do - I did hear

yesterday that housing starts

in the US were up 22% as well.

Which is kind of... another

strange bit of good news in

this bombard ment of doom and

gloom. The figures in relation

to that, the Australian exports

to China, they were down 43% in

January and only 23% in

February. So it is still not a

great figure. They are still

appalling figures, not as poor

as Peter Costello would say "a

beautiful set of numbers".

They are an unbeautiful set of

numbers. That was Keating but

anyway. My apologise. He

would call the program and

claim it as his own otherwise.

Pauline Hanson is still in the

pages. How can we possibly let

her alone? I always have a

Pauline Hanson story. There

has been a lie detector cast

over the guy who took the shots

who claims a young girl called

Pauline came to the studio and

he took photos of her. The

similars arerar - the slaughter

s - the

s - the similarities

remarkable. He took a lie

de-Territory Governmenter -

lie detector test and it

failed. He would have done OK

out of it and I guess that's

the media landscape we live in.

And another chapter in the

life of Pauline. And it never

stops. She might do well out

stops. She might do well out of

it as the legal suits come

through. It looks like the

media outfits she is suing

don't have a leg to stand

on, It is interesting to see

the result of her bid for that

seat of bow desert in this

weekend's election. Think it

will help her. As long as they

spell the name right, as they

say. Good to see you. A

reminder you can watch all of

ABC News Breakfast streamed live every morning. Good

morning, announcement of the

Australian cricket team to

place South Africa in the third

test at Newlands tonight has

been delayed. Marcus North,

who would certainly be in the

team to bat at number 6 did not

attend the final training

session because of gastro. It

makes Bryce McGain's day bu

more likely but

more likely but it North is OK

the final spot will be McGain

or McDonald. The Mariners

played their first away game

for the Corptition, Casarir

scored and Simon outsmart ed

his opponent to make it 2 of 1

but Jan Jin scored.

but Jan Jin scored. The

Socceroos squad has been

announced to play Uzbekistan to

April. And in form Harry

Kewell is the big inclusion.

Craig Moore and Vince Grella

will miss through injury. It

means there will be no A-League

players but don't ask Pim

Verbeek what he thinks about

that. Because he might just

tell you the truth. I don't

want to hear it. Tiger Woods,

can we mention this quickly.

It looks like he is going to

play in Melbourne

play in Melbourne last this

year and a $3 million

appearance fee is 10 times more

than what the winner will get.

Really? So the debate will be

around whether he is worth that

would like to see Tiger Woods much money. I think he is. I

here. The suggestion is some

of that will be tax money from?

Half of it. So $1.5 million

from the taxpayers to see Tiger

Woods here. That's the debate.

get the What do we generally pay to

get the really big stars here

for events like that? Nowhere

near that. I think it will

make news if someone got paid

more than the winners cheque.

So - This is a highly unusual

situation. We saw Lance

Armstrong go to Adelaide. That

was more because he needed the

practice ahead of his Tour de

France comeback. You think

it's worth it but how do

it's worth it but how do you

justify the payments of tax

dollars? I think there is a

whole debate to be had around

how many people it brings into

the state and what sort of

revenue it raises. It is the Grand Prix argument in

taxpayers money going into Victoria. A whole lot of

that. Is it worth it or not?

The figures seem to be lost in

mists. And the Grand Prix

loses money every year and I

don't think the Grand Prix even this

this year will have as much

interest around it as Tiger

Woods playing in Australia and

playing in Melbourne at the

height of his powers perhaps.

He has just come back from a

knee injury. He might have a

couple more grand slams under

his belt before then. I think

it is worth it but that's just

my personal opinion and I think the Federal Government's

pouring $44 million into trying

to attract the soccer World Cup

that I don't think it will

view. every get near. That's my

view. Thanks a lot Paul. A

view that's very treasured.

Here is Vanessa O'Hanlon with a

look at the national wl. We

have high seas warning at the

moment surrounding cyclone

Eisla it is moving away from

the coast. So not posing a

threat. A developing low in

the Coral Sea is what we are keeping our eye on o. The