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(generated from captions) Malcolm Turnbull and the

Opposition on the ropes after

the ute-gate email revealed as

a fake. Iranian riot police use

tear gas on protesters after

they defied a ban to rally on

the streets of Tehran. The

French President denounces

burkas, saying they have no

place in France. Roger Federer

is on his way to making Grand

Slam history after a

first-round win at Wimbledon.

Live. This Program is Captioned

Good morning, it's Tuesday,

23rd June, I'm Barrie Cassidy.

I'm Virginia Trioli. The top

story on ABC News Breakfast,

the Prime Minister has turned

the spotlight back on Malcolm

Turnbull after the email at the

centre of the OzCar affair has

been confirmed to be a fake.

The forged email purportedly

shows Kevin Rudd's office

appealing to Treasury appealing to Treasury official

Goodwin Grech on behalf of the

PM's car dealer friend. Yesterday it was friend. Yesterday it was found

it was a fake, but Wayne Swan

has a lot to answer about

parliament. Kevin Rudd allegations he misled

parliament. Kevin Rudd says

it's the Opposition Leader in

the hot seat and has no choice

but to resign. The but to resign. The alternative

Prime Minister of Australia

making an accusation against

the serving Prime Minister of corruption based on this corruption based on

document which is a forgery,

and him and his staff using the

opportunity to convey the

contents of that document

around media outlets. It's

remarkable that the Liberal

Party can mount a campaign

against Mr Swan when frankly

the senior members, the elder

Statesman, Senator Min Chen,

Costello, Nelson, should cap Costello, Nelson, should

Malcolm Turnbull on the

shoulder saying, "Frankly you

don't have the quality of

temperament to occupy the

office of leadership of the

Opposition". Hayden Cooper

joins us from Canberra.

Extraordinary events yesterday,

what can we expect today. They

were extraordinary events, we

can expect the Government to go

after Malcolm Turnbull. He has

been severely shaken by this,

and he's very political

judgment, of course, has been

called into question. So the

Government will target that

with great vigour. Yesterday

was one of the days that is

fairly rare around here, it was

so highly charged that it was

the sort of approach which is

usually reserved to leadership

changes. That was the feeling

around here. Of course, that is

not such a threat for Malcolm

Turnbull, especially now Turnbull, especially now that

Peter Costello has moved on. He

will face a lot of heat in the

Chamber today. He, too was

Chamber today. He, too was on

7.30 Report last night

defending his position. Let's

have a look. Why would

have a look. Why would the

Leader of the Opposition resign

if an email has been concocted if an email has been

in the Treasury? Will Mr Rudd

if an email is concocted in my

office? This is absurd. If an

email has been concocted or

fabricated, it's been concocted fabricated, it's been

in the Treasury. I cannot be

held responsible for an email held responsible for an

that was concocted, if it was

concocted by somebody else. If

the email was concocted in the

Treasury, then Mr Swan should

be answering for it. The Treasury officials work for

him, not for me. Now, I

Government's approach today imagine, Hayden, the

will be that that's not really

the point, it's that he used

that email, he used what turned

out to be a fake email,

exploiting it with the

needia. That's right, it will

be Malcolm Turnbull's - be Malcolm Turnbull's - media.

That's right, it will That's right, it will be

Malcolm Turnbull's promotion of the email, most behind the

scenes, which will be the focus

today. It will be difficult if

not impossible for him to seize

back momentum, the revelation

from the Federal Police yesterday basically swamped the

Opposition's attempts to sink

the Treasurer in this as well.

So I'm sure they'll continue

their attempts to do so, but it

has really taken away any focus has really taken away any

that they were hoping to create

on the Treasurer. By the way,

overnight Mr Swan released

another bunch of emails which

he would suggest proves that a

couple of other car dealers

received the same for perhaps

more email attention as the

John Grant case did, so that

will be used in the Treasurer's

defence today. Despite that,

though, to use a well-worn

phrase, you are not suggesting

that Wayne Swan is out of the

woods yet. No, I wouldn't use

that phrase for a couple of

reasons, but no, he's not, and reasons, but no, he's not,

there will be more questions,

and the emails released overnight, they'll go part of

the way in his defence, but

they don't explain some of the

more personal touches that John

Grant received, like a phone

call between the Treasurer and

Mr Grant, the handing of Mr

Grant's mobile number to Ford

Credit, and also the faxes sent

to Wayne Swan's personal home

fax number. So they are some of

the questions which will

re-emerge today. Finally, what

is behind the Opposition's

backflip on the alcopops I

think it's the global financial

crisis has caused them to have

a rethink, basically. But they

have now been saying that

things have changed in the past

year since they first opposed

this, but it was still quite a

significant backflip yesterday

on any other day it would have

been a big story, but it was

taken over by other events,

obviously, but still when it

did go back into the did go back into the chamber,

it wasn't an easy one for the

Liberals, there was a public

split on this, a few of them

crossing the floor and opposed

the bill anyway despite the

Opposition's new position on

this, and the same thing may

well happen in the Senate. Hayden Cooper, thank

you. If you'd like to send us

your feedback on news stories today:

In other news - Iranian riot

police use tear gas to break up

a protest on the streets of

Tehran, this amateur video

purportedly shows hundreds of anti-government anti-government protesters

defying a ban, holding a defying a ban, holding a rally

in the capital. Restrictions on

foreign media made the filming of protests difficulty. Revolutionary Guard said it of protests difficulty. Iran's

would crush protests about the

disputed presidential election.

The French President Nicolas

Sarkozy says burkas undermine

women's identity and are not

welcome in France. Nicolas

Sarkozy said the debate about

wearing the burninga was not a

religious issue, he was speak

engine a first address by the

French Head of State for both

houses of parliament in is00

years. years. The International

Whaling Commission tabled a

deal between Arch enemies

Australia and Japan. The Australia and Japan. The US-led

committee met in Portugal

asking countries to accept a

plan stopping Japan from

hunting in the Southern Ocean.

Allowing Japan to continue

scientific whaling in its own

waters won't guarantee fewer

whales will die. Health workers

in Western Australia will test

residents in a remote

Aboriginal community for swine

flu. A 26-year-old man from the community died after testing

positive for the virus. It was

Australia's first swine

flu-related death. flu-related death. The World

Health Organisation has

reported 5 2,000 swine flu

infections in is00 countries,

230 people died. The Federal

Government announce today that

all new cars must be fitted

with electronic stability

control. The Government says

the special safety feature

reduces accident fatalities by

25%. Transport Minister Anthony

Albanese says making the

control system compulsory will

save lives, all new cars must

have stability control by -

November 2011. Returning to

Iran now, where riot Iran now, where riot police

fired tear gas at hundreds of

demonstrators as they tried to

break up another Opposition

rally in Tehran, they fired

bullets in the air to stop

people protesting why the

disputed presidential election. BBC's Middle East editor Jeremy Bowen reports from

Tehran. Because of reporting

restrictions imposed by the

Iranian authorities most images

coming out of Iran have been

filmed by demonstrators, and

put on the interstate. This

amateur video purports to show

trouble on Sunday, mainly calm

in Tehran. This afternoon there

was more unrest here. That's

despite a warning by Iran's

strongest force, strongest force, the

Revolutionary Guard corp, that

demonstrators should expect a

confrontation if they continue

to protest. An Saturday this

young woman was caught up in

the demonstration. Her last moments have been flashed

around the world on the

Internet. Her fiancee told the BBC what BBC what happened.

TRANSLATION: She was near the

area, a few streets away from

where the main protests were

taking place, she was with her

music teacher, sitting in a

car, stuck in traffic. She was

feeling tired and hot. She got

out of the car, just for a few

minutes, that's when it

happened, that's when she was

shot dead. Today the Guardian

Council, which is supposed to regulate the election regulate the election said

there were irregularities in

the context. Crucially, they

said it would not have altered

the result. The Iranian

Government insists the

elections were fair. An

analysis by official results by

British academics back the

claims of Opposition that the

election was rigged in two

prove sinces is said there were

more votes than eligible

voters, four more show a 100%

turnout. And the most turnout. And the most Liberal

of the four candidate won

of the four candidate won 4.6%.

Vote in his home province

compared with 65% in 2005. More

images emerge of the past

week's violence. This video was

sent to the Paul Behne, we

can't verify the source but it

appears to show shooting from a

militia base. Iran's people are

divided over this election, and

so are its rulers. There's been

unrest on the streets before in

the 30-year history of the

Islamic Republic of Iran, this

time it's in parallel with a

fracture in the ruling elite,

making this unprecedented. To

matter racing and Formula 1 may

have days rather than weeks to

stave off a rival championship.

Preparation are for

Preparation are for a breakaway

series appear to be well

advanced with leaked documents

reportedly naming Adelaide as

the host of the Australian

circuit rather than Melbourne. Europe Europe correspondent Emma

Alberici joins us now from

London. Good morning, so tell

us about the draft calendar,

and also this breakaway

group. Well, first up on the

draft calendar, it's important

to note that this was reported

in the British press as having

been leaked to an Eastern

European journalist. The

calendar shows a detailed list

of 17 circuits, that's the same

number that Formula 1 currently

uses, but among that list of

potential racetracks for the

2010 season, it's as curious

for the tacks in there as much

as it is curious for those that

aren't. Albert Park, Melbourne

is not featured at all, and as mentioned in the introduction

Adelaide is listed as the host

for the November 8, being the

last on the calendar of races

for this rival championship. It

says the first race of the

season is the beginning of

March, and is to be hosted March, and is to be hosted in

Buenos Aires, this is

Buenos Aires, this is not

Formula 1, this is the rebel

championship. This is the

breakaway group of eight teams

that are currently in that are currently in the

Formula 1. There are 10 top

teams and, of course, this is

eight of those led by Ferrari,

McLaren, all the big names,

Brawn GP, Red Bull Brawn GP, Red Bull by Mark

Webber drives for, this is

Webber drives for, this is the

breakaway group saying they'll

set up a rival championship. Up

until now the FIA said this is

nothing more than threats and

posturing, but - soy guess in

some respects this leaked

calendar of how the rival

championship might shape up is

perhaps timed to say, "Well,

actually, it's not just a

threat, this is, indeed, as

threat, this is, indeed, as you

mentioned, into its - its

defined stages of coming to

fruition ", Why is this group

breaking away, tell us about

the role played by Max Mosley

in irritating some of these org

nations that are part of the

breakaway - org in additions

that are part of the breakaway

group. The whole reason behind

group. The whole reason behind

the breakaway group was the breakaway group was defined

over the weekend in Britain by

one the legends Formula 1,

Stirling Moss who said in his

day, in the '60s, Formula 1 was

about sport, these days it's

about business. There are two

main reasons behind the

frustration, if you like, of

the eight breakaway teams that,

is money and governance, on the

money side they are saying

money side they are saying that

- they are distinctly - they are distinctly unhappy

with Max Mosley the with Max Mosley the President

of the FIAs decision to impose

a ?40 million, $80 million cap

on what team's can spend. Rich

teams like Ferrari don't want a

bar of that. On the governance

issue, they are angry with Max

Mosley, his Antics, and on the

Mosley, his Antics, and on the

front pages of the newspapers

for the wrong reasons, they

want someone else who they

think they can get along get

better with, they don't like

his autocratic style. Emma

Alberici thanks for that

report. Now to the front report. Now to the front pages

of the major newspapers where

the so-called ute-gate scandal continues to continues to dominate. The Daily Telegraph - Malcolm

Turnbull has been wounded as

the email at the centre of the

row is revealed to be a

row is revealed to be a sake. The Courier Mail - Prime

Minister Kevin Rudd has turned

the stables on the the stables on the Opposition.

Malcolm Turnbull's strategy

backfired reports The backfired reports The Mercury.

The Australian - the affair is

turning into a nightmare for

the Opposition. I think there's a familiar a familiar pattern, The

Financial Review says the saga

turned into a credibility crisis for Malcolm crisis for Malcolm Turnbull.

Adelaide Advertiser - calls the

controversy grand fake outo,

we've been keeping tabs

we've been keeping tabs on the

good car cliches and headlines,

that's one. The Sun says the

debate is turning into a car

wreck for the Opposition. Malcolm Turnbull

has been shaken by the fallout

from the issue reports from the issue reports the

Sydney Morning Herald. The West Australian says the Opposition

has been tripped up by the fake

email. Age - Prime email. Age - Prime Minister

Kevin Rudd calls for Malcolm

Turnbull's resignation, he's

been doing it for 24 been doing it for 24 hours. The Canberra Times

Canberra Times - Treasury

official Goodwin Grech caught

between the devil and the deep blue sea in the blue sea in the affair. The Northern Territory News has the

story of a man who saved his

mate's life offer a helicopter

crash and that was the story

that we reported to you

yesterday on the front page of the The Northern Territory News

it turned out to be a helluva

yarn. I think what happens is

the crocodile spun around - the helicopter turned around to

look at a crocodile, when they

did, they crashed into the

mudflats. He dragged his mate

some distance across the

mudflats to save him from the crocs. Top stories on ABC News Breakfast. The Prime Minister

called on Malcolm Turnbull to

resign after the email at the

centre of the OzCar affair was

confirmed to be a fake. confirmed to be a fake. The

Opposition Leader rejected the

call to go saying the call to go saying the Treasurer

Wayne Swan need to answer

allegations that he misled

parliament. Iranian riot police

use tear gas to break up a

protest on the streets of

Tehran, this amateur video

shows hundred of

anti-government protesters

defying a ban, holding a defying a ban, holding a rally

in the capital. Revolutionary

Guard threatened to crush

demonstrations about the

disputed elections. France's

President says burkas President says burkas undermine

women's identity and are not

welcome in French societiy. In

a landmark speech to France's parliament Nicolas Sarkozy said

the debate about the wearing of

the burka was not a religious


60 Australians are under

quarantine in the Chinese city

of Shanghai, this action by

Chinese authorities followed

the detection of four cases the detection of four cases of

swine flu on flight from

Australia or Australian

Airlines. Those under

quarantine accuse the

Australian consulate of not

doing enough to help them. Tom

Iggulden reports. Tom hand is

in quarantine for almost a week

and is not liking it. It's like

a jail, we are not allowed

outside the rooms, we hang

around in the same room. We go

insane a little He's not alone.

The hotel he's kept at two

hours drive from Shanghai's international airport is full. There's another two

Qantas flights, one from

America, one from Australia,

pulled up as well. There's

about nine floors and there's a

whole motel quarantined

yes. When Chinese authorities

find a passengers with raised

body temperature on an

international flight they

quarnt six adjacent rouse of

passengers, up to 60 people.

There's confusion about how

many Australians are under

quarantine in Shanghai, quarantine in Shanghai, the

Australian Government says 59.

The Chinese says 31. Some say

they've been served unpalatable

local food like this or cold

McDonald's or Pizza Hut twice a

day. Like fruit would have

been not too bad. The

Australian consulate could have

organised that, if they rang us

explain the situation instead up, we would have been able to

of trying to explain it to Chinese that don't understand

us. That hasn't happened the

consulate criticised for not

doing enough. They don't seem

to want to get involved at all,

to want to be able to criticise

the Chinese authorities. They are also

are also critical of the

Chinese authorities, sake

quarantine standard have been

lax. I saw the pizza delivery

man coming in from outside

walking into the foyer with no

mask, hanging around for ages. The Chinese Government

says Australia is among 70

countries whose airlines it's targetting at international

airports. To finance - London-based mining group Anglo

America rejected a merger bid

by rival company Xstrata. Anglo

America said the terms of the

proposed deal were

unacceptable. If the merger had

gone ahead it would have gone ahead it would

created one of the biggest

mining companies in the

world. Having missed out on the

last round of bank mergers the last round of bank mergers

National Australia Bank has now

set its sites on wealth

management, it's buying most of

the Australian operations of

the British operator Aviva. If

the deal gets regulatory the deal gets

approval until make the approval until make

National Australia Bank the

biggest player in the wealth business. Neal Woolrich

reports. Financial crisis,

what financial crisis? While

local banks continue to receive

Government guarantees, Government guarantees, the National Australia Bank has

still managed to find $825

million to buy the Australian

wealth management business of

the United Kingdom based Aviva.

The acquisition includes the

Norwich union brand, Aviva's

life insurance operation and

investment platform

Navigator. I think it's an opportunistic acquisition

opportunistic acquisition by

National Australia Bank, they expanded their wealth

management position at the

bottom of the cycle. Their

product offering, it looks to

be well priced. Investors

welcomed the deal welcomed the deal pushing

National Australia Bank share

price up 1.8% on a mixed day

for other financial socks, it's

spected to make NAB the biggest wealth provider ahead of wealth provider ahead of the

Commonwealth Bank bank

Colonial First State Commonwealth Bank bank and

operations There's scale

leveraged having the IT network

running and functioning

properly, if you look at other

offerings where it's about the

quality of the advice, scale is

not as important. Analysts say

integration risks could have

the biggest bearing on the

value of this transaction to

nab. The Competition Commission

needs to give its approval,

there's industry wide

uncertainy over fee

structures. There's a lot of

inquiries in the industry, we

don't know where it will end

up. We know we have capability

helping advisors, practices,

transition away from commission

to fees, we'll work with those

that want to do that, its

advisor's choice at the end of

the day. Steve Tucker says

despite rallies in despite rallies in equities

markets it's a tough markets it's a tough time. It's

starting to feel better. Sol

clients are poking their heads

up thinking about investing,

getting to value that may be

around, it's early to call it,

we have volatile times ahead of we have volatile times ahead

us as the economy works

through. Even in volatile

times, NAB spects the

acquisition will add to

earnings within a year. To the

finance figures: the markets

finished down as the World Bank cut forecasts: acquisition will add to cut forecasts: expects the

finished down as the World Bank finance figures: the markets earnings within a year. To the

cut forecasts: With

Now in a few minutes Vanessa

O'Hanlon will be here with a

look at the weather, and ahead

a review of some. Newspapers,

but this morning we'll

but this morning we'll be

joined by Radio Australia Phil

Kafcaloudes. Now all the sport

with Paul Kennedy. Day 1 of

Wimbledon saw few problems for

the top seeds Roger Federer

beating Yen-Hsun Lu from

Chinese Taipei, have a look at

this shot. The final score 7-5,

6-3, 6-2, the upset was James

Blake knocked out by Andreas

Seppi and in the women's Seppi and in the women's side

of the draw Maria Sharapova won

through, Serena Williams won

6-1, 7-5. In the NRL a rampant

Cronulla beat Brisbane, Cronulla beat Brisbane, Broncos

with six players missing

because of Origin duties, 46-12

the time score. Let's look at the tries. the tries. Finish

Can you count one, two and

three. For Blake Ferguson.

-28 in this game, they are -34

for the season.

Luke cavel gets a gold-plated

gift. The never-ending golf

tournament in New York finished

the new US Open champion is the new US Open champion

Lucas Glover, world number 71

shot a 73 on the final round

and at times looked a bit

shaky, he held off late challengers from Phil

Mickelson, and David Duval, to

win by two strokes, his playing

partner Ricky Barnes bombed

badly making five bogeys in

seven holes at one stage to

finish equal second. After an

early exit from the Twenty20

competition Australia's

cricketers are busy preparing

for the Ashes, Europe

correspondent Philip Williams

joined them in Hove. If

enthusiasm counts, this is the

team to beat. After an early

exit from the Twenty20

competition the extra days have

been put to good use - hard

physical drills have got the

team in top shape rare tog go.

I'd love to hold the urn up at

the oval after the fifth test,

that'd be the No.1,

that'd be the No.1, followed by

100 at Lords would be special. Sharing the dream a

host of younger players, four host of younger players,

of the 2005 team still on duty,

mentoring the newer arrivals is

more important. So we have a

nice mix. The mix in South

Africa has been replicated

here, we are seeing that, if we

get that right it goes a long

way to our success. With the

first game ahead of the first handling the Test starting Wednesday

handling the pressure is a

challenge for some, for others.

What pressure? No, I wouldn't

say pressure, no. I think it's

exciting. I think obviously

growing up as an Australian to

come over here and play against

England is the ultimate. I'm

excited by that prospect rather

than daunted by it. With the

confidence built by a

successful tour of South Africa

captain Ricky Ponting says the

blend of youth and experience

is working well and at the

personal level this is probably

his last chance to win the

Ashes in England. I probably

will be in a wheelchair by the

time the next one comes around

over here. Look, I haven't

thought about it. I'm enjoying

the game right now as much as I

ever have. The way I have

trained and the way I feel

about things at the moment is

as good as I can remember in my career. Watching practice career. Watching

English fans uncertain which

way the series will go. Backing England to win, I am not England to win, I am not going

to put money on it, the Ashes being the Ashes it will be tough. Physically the

Australians could hard by be in

better shape, mental resolve

untested on these shores, the

young team a mystery to many

here. The real Test begins with

the first Test on 8 July in

Cardiff. Then we'll see if the

blend of old and new really

works. They are looking OK,

it's easy to forget with the

pathetic performance in the Twenty20, that the last Test

series Australia played was one

of its finest in many years

against South Africa, the great

win over there. We'll have

another look at the pictures

from Wimbledon. If only to look

at the white uniforms that they

wear at Wimbledon, I think it's

one of the special traditions

that they have kept. Maria Sharapova grunted her way

through the game. What are the

new restrictions on grunting. There's no restrictions but there was a

report that the organisers had

a quiet word to a couple of ladies. They should ladies. They should have

grunted at them. They probably

did. It hasn't really did. It hasn't really worked.

Wimbledon is one of the best

sporting tournaments of the year. Australia had

year. Australia had one

successful player overnight. I

should have mentioned that,

Jamilla growth won her first

round match, she's through to round match, she's through

Round 2. These a real

prospect. She's young and came

to Australia marrying Sam

Groth, the men's player, I

mentioned yesterday Lleyton

Hewitt played last night, I

made a mistake, he's playing made a mistake, he's

tonight and so is Samantha Stosur. ABC News Breakfast can

be watched live on the web from

anywhere. Now Vanessa O'Hanlon

joins us for all the national

weather. There's been some

heavy falls over the coast of

south-east Queensland, 53.8mm for

for Coolangatta, 40.4 at Cape

Moreton. Showers easing today

as a trough moves offshore,

there's cloud around NSW?

South-west Queensland coast.

Most of the showers are

offshore, clouds offshore, clouds increasing

over the West Coast causing

falls over Gascoyne and falls over Gascoyne and the

Central West districts, cloud

causing showers in South

Australia and Victoria. As a

low and trough weaken low and trough weaken showers

spread across the south-east.

Easterly winds triggering rain

falls over the coast and these

winds will become drier

westerlies causing rain to

clear later in the day. The

West is in for a wet and windy

week, a front and low edging

towards the coast. This will

cause some heavy rain

particularly tomorrow and

Saturday, and the winds

increasing over that region. As

we look ahead today at the

States and Queensland a flood

warning is current for coastal

streams between Merry Boro and

Coolangatta, widespread fog and

isolated showers to the isolated showers to the east.

Flood warnings in the north of

NSW, isolated showers clearing from the North Coast from the North Coast increasing

over the south-west, and for

Victoria it will be fine over

Gippsland. Showers and

thunderstorms in the west.

Expected to increase over the

northern inland throughout the

afternoon, 18 degrees in

Melbourne. Tasmania - fog until

late morning, showers for King

Island the chance of drizzle

for the lower east and south-east coast. South

Australia - strong winds about

the southern and western coast,

wet about the south from Ceduna

to Victoria border, in Western

Australia gusty cool southerly

change sweeping through the

south-west, widespread showers

and storms near the West,

increasing to adjacent inland.

Fine for the north-west. Apart

from isolated showers about the

Territory's north coast and fog

patches about the top end. It

will be a sunny day. Looking

ahead to tomorrow:

See you in half an hour.

And the top story on ABC News

Breakfast - furious allegations

continue to fly between

Australia's political leaders

about the OzCar affair after

the email at the centre of the

row was confirmed a row was confirmed a fake.

Opposition Leader Turnbull is

repeating his claim that Wayne

Swan lied over the affair. Swan lied over the affair. The

Prime Minister said Prime Minister said the Opposition Leader should resign

following proof that the email

to Treasury official Goodwin

Grech was forged. Verbal blows

continued last night let's have

a listen. To Malcolm Turnbull

as the alternative Prime

Minister, and as a person

trained as a lawyer, not to

administer any basic due

diligence to this document,

this forged email and to mount

a capital case against a capital case against the

Prime Minister of the day

calling for him to resign,

accusing him of being corrupt

shows a lack of judgment on his

part that he is no longer fit

to occupy the to occupy the office of Leader

of the Opposition . Why would the Leader of the Opposition

resign if an email has been

concocted in the Treasury? Will

Mr Rudd resign if an email is

concocted in my office? This is

absurd. If an email has been

concocted, or fabricated, it's

been concocted in the been concocted in the Treasury,

Mr Rudd has been making the

allegation recklessly, without

any basis that somehow or other

the Opposition had a hand in

it. Malcolm it. Malcolm Turnbull speaking

on the 7.30 Report last night.

The OzCar email scandal is the

latest in an inglorious history

of fakes and hoaxes in

Australian politics. History

shows it's the party seeking

political capital from the hoax

that gets burnt. David Marks

reports. It turns out Goodwin

Grech, the public servant at

the centre of the OzCar scandal

was right - there was an

email. My recollection may well

be totally false, faulty, but

my recollection, and that's a

big qualification, but my

recollection is that there was

a short email from the PMO. But

it didn't come from the Prime

Minister's office and it was a

fake. Not the first fraud in

Australian politics. Over the

last decade or more these sorts

of scams, if you like, have

appeared in Australian politics

a number of times. Last month

the South Australian Opposition Leader Martin Hamilton-Smith

was forced to apologise when he used fake documents to used fake documents to attack

the ALP. In the week before the

2007 Federal election the

Government was sent into damage

control, thanks to a fake

pamphlet distributed by the

husband of former MP Jackie

Kelly, and former member of the NSW Liberal State executive. What we have learnt regrettably from those that laugh so loudly at this laugh so loudly at this point

is the Liberal Party on the

question of question of deceptive information has historical

form. This is the Liberal Party

that gave us 'Children

Overboard', it is the Liberal

Party that was so active in the

field in the Lindsay electorate

on the eve of the last

election, and movement recently

in South Australia. It's not only Conservative policitians

that have been taken for a

ride. This brown envelope which

came into my office... In the

dying days of the Keating

Government the then Government the then Treasurer

Ralph Wills fell for a fake

letter supposedly from the

former Victorian Premier Jeff

Kennett in a last ditch attempt

to scare voters to Labor. At

the time there was inadequate

verification of the tier, it

was poor staff work, -

material, it was poor staff

work, the Minister had egg his

face, it didn't go down well

with his party or his

colleagues, and it certainly

didn't go down well with the

public. The person who tries to

make the political capital make the political capital out

of it and fails because the

document or documents that they

are relying on turn out to be

fake really the political

disaster, if you like visits

upon them. If the risks are so

great, why do it. Desperation,

I mean there's an old political

say that the best day in

Opposition is still far worse than the worst day in

Government. Fear and a

glittering political prize can

cloud judgment. This is where

politicians need to be more

accountable to the public, accountable to the public, if

they are going no parliament

raising these issues, there has

to be a fair degree of

satisfaction that they have

established the voracity of the

material they are using. The

moral of the story - check your

facts. David Mark reporting,

yes, it's a moral we can all

learn from. You can send your

observations on the news observations on the news that

we are covering today to:

In other news - an Iranian riot police use tear gas riot police use tear gas to

break up a protest on the

streets of Tehran, this amateur

video shows hundreds of anti-government protesters

defying a ban to hold a defying a ban to hold a rally

in the capital. Restrictions

placed on foreign media made

filming the process difficult.

Iran's powerful Revolutionary Guard said it would crush

further protests about the

disputed presidential election.

The French President Nicolas

Sarkozy says burkas undermine

women's identity and are not

welcome in France. Nicolas

Sarkozy also said the debate

about wearing the burka was not

a religious issue, he was

speaking in the first address

by a French Head of by a French Head of State

before both Houses of

parliament in 100 years. parliament in 100 years. The International Whaling

Commission tabled a compromise

deal between arch

deal between arch whaling

enemies Australia and Japan.

The US-led commission met in

Portugal overnight. It asked

countries to accept a plan

stopping Japan hunting in

stopping Japan hunting in the

Southern Ocean, anti-whaling

nations say allowing Japan to

continue scientific whaling in

its waters won't guarantee

fewer whales will die. 22

people have been killed and 75

others injured in a series of

bombings across Iraq. The

deadliest was caused by a

suicide bomber near Baghdad

where seven died. The attacks happened as US soldiers

prepared to pull out of Iraq's

towns and cities. Health workers

workers in Western Australia

will today test resents in in a

remote Aboriginal community remote Aboriginal community for

swine flu. A 26-year-old man

died last week after testing

positive for the virus, it was

Australia's first swine flu-related death. flu-related death. The World

Health Organisation has

reported 52,000 swine flu

infections in 100 countries, 230 people have 230 people have died. Italy's

Prime Minister is facing more

lurid allegations about his

private life. Silvio Berlusconi has already had to fend has already had to fend off

claims he had an claims he had an improper

relationship with an

18-year-old model. Now it's

alleged that show girls and

escorts were paid to attend his

parties. Silvio Berlusconi says

it's garbage and is accusing

the media of a smear campaign

as the BBC's Duncan Kennedy reports. The allegations reports. The allegations facing

Silvio Berlusconi are filling

every newspaper here. They

centre on a number of women,

including Barbara Montereale,

and others who claim they were

paid to attend paid to attend parties.

Gabriela Montero in an

interview said she went to

interview said she went to a

number of events denying that

she was an escort she was an escort girl.

TRANSLATION: We chatted and

dined it was a peaceful

friendly occasion, we dined,

joked, sang, laughed. Sang with

who. He sings. Did he give you

presents. Free gifts, free

gifts like necklaces or

bracelets. Nice things for

young girls in other

words. Silvio Berlusconi says

the allegations that he

knowingly held parties with

escort girls at his private

homes are rubbish. This is

burl's home in Rome where some

of these -- Silvio Berlusconi's

home in Rome where some parties

are said to have taken place,

one woman claiming to have been

paid ?800. Silvio Berlusconi's

people insist they didn't know

any woman received any woman received money.

Silvio Berlusconi has a

reputation for overcoming

scandal some believe the latest

claims hinting at prostitution

is a different nature. Now is a different nature. Now if

there's a question of money,

corruption, sex, possibly

drugs, and the fact that

politics is involved, it's not

any more a problem of the

private life of a Prime

Minister, it's a problem of the

image of the Prime

Minister. Carlo Rossella, a

close friend of Prime Minister

for 20 years says the

allegations are stirred up

allegations are stirred up by

political enemies. These

allegation are invention, are

rubbish, are all these sort of

things, I don't think Silvio

Berlusconi will leave the power

for this allegation, if

somebody wish in Italy and

outside Italy. It's been an

interesting few weeks

interesting few weeks for

Silvio Berlusconi, his comment

that President Barack Obama had

a nice tan, to claims he had relations with an

relations with an 18-year-old

woman, he denied that, these

latest accusations of paid

escorts are the most

controversial issues yet. And

all the way to NSW politics

now, a Newspoll out shows voter

support for the Premier Nathan

Rees falls to a new low, it

won't make for pleasant reading

for Nathan Rees who held the

top job for 10 top job for 10 months, Rachel

Mealey joins us from State

Parliament in Sydney, good

morning, take us through the

figures. As you suggest Nathan

Rees would probably like to

stay in bed to escape the cold

wind blowing down Macquarie

street, the latest Newspoll is

bad news, his satisfaction

rating is down 4% to 30%, but

notably his dissatisfaction

rating has increased to 49%,

half the electorate is

dissatisfied with his

performance, overall the Labor

Party comes in at 45%

satisfaction rating and the

Coalition at 55. This means if

an election were held the

Coalition would walk away with

an easy victory. The preferred

Premier has Nathan Rees Premier has Nathan Rees just in

front of Barry O'Farrell. If

the Liberals had a more

convincing leader themselves, the Government would certainly

be headed for a train

wreck. That's right. Barry

O'Farrell as premier is largely

unchange on a 34% satisfaction

rating. At this stage out from

an election, the election is

not due until March 2011. At

this stage out from the

election, it's probably not the case that the Liberal Party

would be pushing panic buttons

at this stage, it still has

time to role out a few

policies, and get Barry

O'Farrell known to the electorate, and hopefully

they'd be hoping that over time

that stags rating might tick up

- station rating might tick up

as the - satisfaction rating

might tick up as the months

race before the election. I

understand it's a caucus

meeting before spring, there's

no question that there'll be a

pressing of panic buttons. No,

there's been leadership

speculation in the past couple

of weeks, notably the former

Lord Mayor of Sydney, Frank

Sartor named as a possible successor, it was suggested

today would be the day a few

weeks back, this is the last caucus meeting before the

Parliament rises, and it was

suggested that it needs to get

out of the way so that when

they come back for the spring

session of parliament all of

this leadership speculation is

behind them. As it stands

today, it seems unlikely today, it seems unlikely that

there was going to be a change

challenge for the leadership

for Nathan Rees, and with the

results out today, with the

primary vote for Labor our in

the doldrums, there's no human

living breathing human out

there that could turn it around

for Labor,s once the

dissatisfaction rating of a

leader is low, historicly

elections around Australia, we

have seen, it's difficult for

any leader to turn those

dissatisfaction ratings dissatisfaction ratings into anything positive. Rachel

Mealey, thank you for

that. They have a few more

leaders or members of the

parliamentary team they can

cycle through haven't they

before getting to an

election. Frank Sartor's name

came up. I don't think there's

anything immediately in the wind. Barry O'Farrell waiting

for it to come to him. You are

watching ABC News Breakfast,

let's look at the top stories -

the Prime Minister called the Prime Minister called on

Malcolm Turnbull to resign

after the email at the after the email at the centre

of the OzCar affair was

confirmed a fake. confirmed a fake. The Opposition Leader rejected the

call to go and said call to go and said Treasurer Wayne Swan need to Wayne Swan need to answer

allegations that he mislead

parliament. Iranianry at police

used tear gas to break up a

protest on the streets of

Tehran, this video showing anti-government protesters

defying a ban to hold the defying a ban to hold the rally

in the capital, in the capital, the

Revolutionary Guard were said

to crush protesters. France's

President says burkas ind mine

womens identity and were not welcome in France's welcome in France's society.

Nicolas Sarkozy said in a

speech to parliament that the

debate about wearing the burka

was not a religious issue.

Now we'll look at the

national papers, and we are

joined by Radio Australia broadcaster Phil broadcaster Phil Kafcaloudes.

Good morning. Good morning to

both of you, no surprises today about what's on the about what's on the front pages

of the paper. Before I go

what's on today's papers, I

want to take us to Saturday.

It's interesting, about the

OzCar affair. If we start with

Saturday's age we see here,

"Rudd in car dealer crisis", on

Saturday the crisis was Saturday the crisis was about

Kevin Rudd. Let's move to

yesterday's papers, and The yesterday's papers, and The Age

yesterday says, "Heat turns on

to Swan", it's moved from to Swan", it's moved from the

Prime Minister to Mr Swan.

Let's go from there to today's

papers, which goes from the

Government to the Opposition,

"Fake email trips Turnbull".

Of course, that is the news,

there is Malcolm Turnbull there is Malcolm Turnbull on

the front page there, looking

like he's going to strongle

somebody, I wonder who he's

going to strongle. It's come

back on him. Tomorrow. Who

could it be. What's the old

saying an ill body blows nobody

any good. Absolutely. Everyone

is going stir crazy, I'll take us to the Herald sxun, us to the Herald sxun, and

there is a spread in there is a spread in the middle

of the Herald sxun here, and

this is terrific, "The unusual

suspects". There you have suspects". There you have Dr

Andrew Charlton on the Andrew Charlton on the left,

Malcolm Turnbull, who is

smiling, but Goodwin Grech in the

the middle, where did they get

that photograph, that is just

priceless, Wayne Swan and Kevin

Rudd. Kevin Rudd is depicted

there as the bloke who turns

out to be Kaiser in the Usual Suspects. I don't know what that is implying. Absolutely. Devil. It

was interesting that Kevin Rudd

did the three Fs, there was fake, forgery and

fake, forgery and fraud. And he

said there's so many times in

the media, everywhere, he kept

pushing it. Like before the

election when he kept saying

winning this election will be

like climbing Mt Everest or

running a marathon, the line

was pushed again and again.

When he made those statements

you had to think he knew you had to think he knew that

there was a fake - if he was

wrong, if it was proved this email existed his

email existed his position, you

would argue could be untenable

as Prime Minister. He had to go

to one staff member, Andrew

Charlton, once he had an

assurance that he had no

recollection - more than that,

he was quite adamant there was

no email under his name He had

to be believing what he said.

That's the interesting thing,

if he'd been lied to in that

case, he's putting his Prime

Ministership at

Ministership at risk. Sure. But

Malcolm Turnbull has done the

same thing, a case of trust.

Don't believe everything in the

media. There was a purported

media in the media. He read it

and believed it. The source of

the email is dangerous for us

to speculate on, how it

happened, but The Age I notice

has said that Goodwin Grech,

they understood had been told

me was the source of the me was the source of the leak to the Opposition, and he

to the Opposition, and he was

the source of the leak to Steve Lewis from News Limited,

they've gone that far, that's

as far as anyone is prepared to

go. Except for The Australian saying Goodwin Grech did work for Joe Hockey at one for Joe Hockey at one point.

What the significance of that

is. That's irrelevant. It was

10 weeks ago, he had two 10 weeks ago, he had two weeks,

it was on trial almost, it

didn't work out. They are

trying to add to the litany

trying to add to the litany of

misery and woe Malcolm Turnbull

had to deal with and how had to deal with and how it

turned tout be an own goal. It

comes to inexperience. Hold up

Page 1 of the Herald sxun,

we've been noting the

automotive headlines, and that

one there from The Sun is

the... What a car

wreck. Complete car wreck. Yes,

but as I said, Malcolm

Turnbull, you know he's not

that experienced as a

politician, he should know

better than to believe

everything that he reads in the

papers. I remember back in the

late 1990s when Bob Carr was

first elected we had the

Opposition coming out saying

this is a scandal about - you

don't remember what it is. I

do remember that they would

hold up The Daily Telegraph, or

the Sydney Morning Herald, and

say it's in here. We'd ask the

question, "Do you know any more about this,

about this, have you done more

research?", and they go, "But, it's in the The Daily

Telegraph", then they are in Opposition. That's the problem

he faces now. He's obviously

been wounded by this, whenever

a scandal arises into the

future, is it going to have the

same sting coming from Malcolm

Turnbull. It's the boy who

cried wolf. It's not going cried wolf. It's not going to

work out much for him. Let's work out much for him. Let's go

to the Australian front page.

We have - on the front page there's the same there's the same story, of

course, as you'd expect,

Turnbull's fake email

nightmare, if we go to the

bottom of the front page, we

have voting faults found in 50

Iranian districts. Koourious story The Guardian Council

would admit there were irregularities is an unusual

thing for Iran. They have done

it. 50 out of 366, they haven't

said what the irregularities are. What's been established

from overseas papers is more

than 100% of the known vote was

counted. Known to be let's say

4,000 people voting, 4,050

votes were count, exceeding the

100% level. It throws the

protesters a bone. Perhaps,

although they don't want to although they don't want to do

that too much, especially with

the footage of the young woman

shot and then the footage

everywhere on YouTube, very

good for YouTube that they are

- they have a block to that,

you have to sign up and say

that you are a certain age to

see that footage, Critically

they make the point

irregularities wouldn't change

the result That's what they

say, absolutely. How many irregularities there really

were, we don't know, it's

interesting they made

admission, it's not like them

to do that. They've been pushed

to it. Another story running

around, I talked about NSW

parliament a while ago. We

have the polls for Nathan Rees,

got to remember four year terms

in NSW nearly two years to in NSW nearly two years to run,

Nathan Rees - he's not doing

too well as far as party go

goes, because he's on #45rks

the Opposition on 55%, if you

look at him as preferred

Premier, he's 33 to O'Farrell's

3 2 he's slightly

ahead. Barely. Barely, do you

get rid of someone. It's not like it's

like it's 14%, he's doing

alright. Satisfaction and Barry

O'Farrell's he's 30%, the

Premier, Barry's 34%. The

Opposition is not offering

anything Barry O'Farrell is a

fine man, he's not offering a

lot of choice against the

Premier, who do you go to. As

you said before, everybody in

the party has been tried. It

must be a frustration they must be a frustration

don't have a gun don't have a gun candidate.

That's the missing link, if

they did, it would be

over. They have a couple of

people who think they are a gun candidate. NSW politics indeed.

That is absolutely true, but

10% with a year - nearly two

years to go is not something

they can't make up, but they've

been in office for how long, 14

years, so it will be 16

years. Election in years. Election in Tasmania,

South Australia, Victoria next

year, we have to get through

those before NSW. Potentially those before NSW.

it will all turn around the

wall to wall labour map, which wall to wall labour map,

isn't so wall to wall now. It isn't so wall to wall now.

doesn't look happy for

him. Phil, good to have you on

board. A reminder you can watch

all of ABC News Breakfast

streamed live every morning:

Now here is Paul Kennedy

again with the sports headlines

. Australian Jamilla Grothe won

her first match at Wimbledon.

The 22-year-old beat Lucy

Safarova from the Czech

Republic 6-3, 3-6, 6-3. To Republic 6-3, 3-6, 6-3. To NRL.

State of Origin to be played,

Brisbane fielded a

below-strength side, Cronulla

taking advantage bin winning

46-12, the Sharks winning 46-12, the Sharks winning four

in a row. In Motorsport a draft

blueprint from the blueprint from the rebel

Formula 1 team asugs has been

leakeded naming Adelaide as a leakeded naming Adelaide as

main track, with no mention of

championship will start Melbourne. The rebel

championship will start in

Buenos Aires, ending in

November in Adelaide. Eight of

the 10 Formula 1 teams have

signed up. Just on that

breakaway group, tell us more

about what you understand, it's

not in competition with Formula

1, it's in addition to. It

wants to set up a different

competition altogether. It is

in competition. As well

as. Formula 1, the traditional

model would have to ask where

it goes if all its teams leave

and set up a rebel

championship. There's another

story in The Guardian on the

weekend saying they may turn

around and stay where they are

if Max motorcyclery moves and

Bernie Eccleston bows to their wishes, which is basically

centred around money. It's as

well as, if it went ahead as it

looks, you would have two teams

in Melbourne about four cars on

the grid and eight teams in Adelaide. With that sort of

arrangement for how long would

the Victorian Government

sponsor it, they couldn't throe

taxpayers money at it it will

be the end of the Grand Prix in

Melbourne. There's talk of fees

that have to be paid by the that have to be paid by

slen use to F1. I am not sure -

venues to F1. Melbourne, if

it's paying massive it's paying massive fees as

well as fudging the numbers on

spectator numbers every year,

it's a long-running battle it's a long-running battle

here. Is this finally at least

in part an attempt to take on

the power and the authority of

the Bernie ekle son. I think

so. I think it's essentially

trying to get some power trying to get some power back

to the teams and maybe some

money back to the teams, there

was talk also that they want to