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(generated from captions) This program is LIVE captioned. Oh, you're looking a bit sexy today. C'mon! I need some time off, guys. Oh, you poor thing. (coughs)

(laughs) Time out! Enough! Right across Australia

to wake up with friends. it's again time

This is Sunrise on Seven. here's Kochie and Mel. Now from Brekky Central, # Reach up for the Sunrise into the big sky...# # Put your hands Good morning.

It's Tuesday the 31st of May. They're at it again. another pay rise. Our pollies are pocketing $11,000, to nearly $289,000 a year. John Howard's salary will rise by The PM is using an old argument you need to pay more. to get the right people to the job So does he have a point? we're going to hear from one pollie After 8.00,

already. who reckons he's being paid enough But we want to hear from you. for the bloke running the joint? Is $289,000 the right amount

You look at executives at banks.

Who was that? The head of makqairy

bank? That is a bit much. I wonder

would more pay attract different

people or people wanting to be

pollies whatever the pay. You are

saying they are pay hungry anyhow.

I would probably agree with that.

The type of person that goes into

politics - Don't they make it in

the back end with the

superannuation. And a house and a

Butler, someone to mow their lawn.

And a car. And a wine cellar. or SMS us. Log onto our web site to email us, Also coming up, foundations of property prices. the report which shakes the is tipped to go, Find out how your area after 7 o'clock.

And later, Jemma's dropping in, pole dancing lessons. to tell us why women are paying for are climbing over each other Apparently girls to take it up as a fitness regime.

Don't you wish? Have we got a

demonstration, haven't we? Just for

you, boys. And you are sort of

decked out for a bit of pole

dancing, the fish net stockings and

leather skirt. the latest news with Simon Reeve. Right now though, it's time for Good morning, Simon. Good morning, everyone. in a home in Toowoomba Three men have been found dead this morning. in South-east Queensland were bashed and bludgeoned. It's believed the men by a woman. Police were called to the home

intercepted a van near Ipswich A short time later detectives

with five people inside. with their inquiries. They're helping police

And joining us for the latest,

Queensland Police Media. Brett Davis from

What can you tell us Brett?

Good morning. The police attended

an address on Hume street where

they located the three deceased

males and they also received

information regarding a vehicle

that was spotted a short time later

at Ipswich and that vehicle was

caught after a short pursuit and

they are'sing police with the

inquiry Are any of those people in

the vehicle known to the victims?

There is not much I can say in

regards to that. The investigation

is still continuing Brett, thanks

very much for your time this morning. Thank you. A Customs report has found largest airport workers at Australia's in drug-smuggling and baggage theft. have been involved The report claims have links to organised crime some staff at Sydney Airport pose a terrorism risk. and security breaches been investigating Sydney Airport Police and airline authorities have for the past month, a major cocaine syndicate since baggage handlers were linked to

to last September and finds but the Customs report goes back incidents of airport workers and stealing from passengers smuggling drugs are common.

It claims clearances are involved even workers with high-security to security screeners themselves. from baggage handlers, to air crew, obtained by The Australian, claims The report,

the rostering system makes it easy their mates working in the same gang. for dodgy baggage handlers to get their mates working in the same gang.

It believes they drop off drug imports along baggage tunnels in surveillance blackspots along baggage tunnels

onto domestic baggage carousels. and divert international packages

of Schapelle Corby But the report doesn't help the case between domestic airports. finding no signs of drug smuggling about the findings Customs staff are said to be furious but fears of a union backlash from taking further action. may have prevented them are asking Australians Schapelle Corby supporters international and domestic flights, to avoid using Qantas for to her arrest. concerned poor security contributed to coincide with her 28th birthday Mass protests are also being planned on 10 July, is warning Australians but the Government against abusing Indonesia. next week A team of negotiators heads to Bali a prisoner exchange program. to work on says Foreign Minister Alexander Downer rests with the Indonesians. a decision about Corby's future understands Our government for its part these are matters for the courts interference with the courts. not matters for political package is under fire, The Government's new drought relief it only goes half-way. the Opposition claims a $250 million scheme The Prime Minister's announced to help farmers cope. it's half what was expected Labor says and doesn't deliver cash grants. bigger subsidies The package gives farmers to allow claims for welfare payments. and relaxes asset tests

it will boost morale The Government says and keep viable farms operating. the Government's income tax cuts Labor's plans to block have backfired, according to the latest opinion poll. as preferred PM over Kim Beazley John Howard has increased his lead John Howard has increased his lead

since delivering the Budget. embarrassing immigration bungles, Despite the recent

to its election-winning lead. the Coalition has bounced back

the latest pay rise for MPs. Meantime, the PM is defending $4,000 a year Backbenchers will receive an extra taking their salary to $111,000. objections are cheap populism John Howard says Opposition and claims the salaries are needed to attract talent. The Government is arguing against a pay rise for low income workers, saying they're already receiving a $6 a week tax cut from the Budget.

There's been more suicide bombings in Iraq overnight with devastating consequences. In the worst attack, 27 former police commandos died when two bombers detonated their explosives in Hilla, south of Baghdad. More than a hundred others were injured. They had gathered outside government offices in the mostly Shiite town

to protest a decision to dismantle the local force. Australia's showbiz elite will gather in a small country theatre today to farewell Australia's king of television, Graham Kennedy. The non-religious funeral in the NSW Southern Highlands is intended as a celebration. 71-year-old Kennedy died in a nursing home last week. Channel Seven will broadcast the service live from 11 o'clock this morning, Eastern Australian time. To finance news. New York was closed for a public holiday.

So was London. Our region traded in positive territory.

Chasing cheese downhill might sound like strange business, but in the UK, they take the annual Coopers Hill cheese roll competition

very seriously. A 3kg wheel of double Gloucester cheese can top speeds of 130km/h. It left a customary trail of casualties in its wake.

The rules are simple the first person to make it to the bottom of the hill gets the cheese. To sports news now with Mark Beretta, and a brave move from West Coast. The Eagles will challenge a two-match suspension by the AFL's Match Review Panel. offered to Tyson Stenglein by the AFL's Match Review Panel.

The midfielder knocked Port Adelaide forward Ben Eckerm unconscious in the first quarter of Sunday's 117-point win. The club says it was a legitimate challenge.

The League leaders are already without ruckman Michael Gardner for three matches with a knee injury. Cronulla will contest Jason Stevens' knee lifting charge at the NRL Judiciary tomorrow. The prop was hit with a Grade One contrary contract charge following an incident which knocked out Parramatta hooker PJ Marsh. Sharks' coach Stuart Raper says his player has no case to answer. PJ Marsh got his head on the wrong side and copped a bad accident.

The Roosters still haven't decided if they'll challenge captain Luke Ricketson's striking charge. Australian cricket coach John Buchanan says July's Ashes series against England will be the toughest in years. The team begins preparation for the tour with a net session in Brisbane today. Buchanan says England will field a very different team to when the two sides last met. New captain, some good bowlers, probably a depth of side that they haven't had before. Australia has won the past eight Ashes series. Defending men's champion Gaston Gaudio is out of the French Open. Gaudio lost to Spain's David Ferrer in five sets. Australian Open champion Marat Safin lost to Tommy Robredo. while Rafael Nadal won his rain-interrupted match against Sebastien Grosjean Resuming at a set all, Nadal wasted no time in taking the third 6-0. He sealed the match 6-3 in the fourth. COMMENTATOR: And the teenage roll continues for Rafael Nadal.

That's win number 21 in a row. What a marvellous clay court season it has been. In the women's draw, 2003 champion Justine Henin-Hardenne beat Russia's Svetlana Kuznetsova in three sets. She'll play second-seed Maria Sharapova in the quarterfinals. And Australia's fastest man, Patrick Johnson,

has made the cut for August's World Athletics Championships in Helsinki, just in the nick of time. Johnson clocked 10.21 seconds for the 100m, and a 20.59 for the 200, during a meet in the US. There were just two days to go before qualifying closed.

Made it easy. Quick. That is good

on him. That is good time. Back in

time for the worlds. Looking good

for the summer coming up. Grant has been reunited with his Weather Wagon. Good morning.

The wind in the hair, the feel of

the open road, the white line fever

and the bugs in the teeth. Well,

well, folks we are in Bunbury. I am

covering the real Nat Barr. We are

standing in the concert hall where

she perform td as a tree. Over

there is the train station where

she waved goodbye to her first

boyfriend. It was a very emotional

experience T does anybody here know

Natalie Barr? Yeah! The truth comes

out. This is Sam who taught

Natalie's husband Andrew so we will

get to the bottom of the story and

get the real story on our golden

girl. Dry, north-easterly winds

We might have a look at the Dry, north-easterly winds Let's take a look at the weather. Dry, north-easterly winds will keep temperatures above average in WA again today. Meanwhile, there's a strong high in the Bight. It's pushing south-west winds and showers across south-east South Australia, southern Victoria and Tasmania. And onshore winds will generate scattered showers along the Queensland coast. The two day outlook - sunny and quite warm in Brisbane. Fine in Sydney and Canberra, but showers are possible tomorrow in Hobart. Melbourne and Adelaide can expect some rain tomorrow,

but it should clear by Thursday. Staying cloudy in Perth and hot in Darwin.

We will take another look at the

weather from the Barr train. If

that is not going to bring on the

baby, nothing will. Nat will

probably go into labor today.

On the way, a preview of today's farewell to the king of Television. We'll speak to Graham Kennedy's friend Tony Sattler after 7 o'clock. And next, is it safe to put ethanol in all our petrol supplies? We'll explore the issue after the break.

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SONG RESUMES # Thunderstruck! # Yeah, yeah, yeah, thunderstruck # Whoo! # VOICEOVER: The value-packed limited edition Storm ute. The ultimate ride.

For a saving of over $200, call 131 787 now. There's never been a better time to upgrade your home to Foxtel Digital. With installation in metro areas now only $67! Plus, you'll receive two months of Foxtel Digital's best channels absolutely free! So much to watch, so little to spend. To save $200, call 131 787 now. The Foxtel Gold Medal Deal. Call 131 787 today. We've all heard the pros and cons of ethanol in petrol, but now there's a push to make it law. A federal politician wants all fuel to contain at least 4% ethanol within four years. Independent MP Tony Windsor has proposed the legislation.

He joins us now. Why are you so keen on ethanol?

It go goes back to 2001 when the

government put in place legislation

for cleaner fuels and put in place

renewable energy targets. Those

targets have not been reached and

in my view will not be reached

unless we have some renewable

products What about critics saying

it ruins a car's engine. At one

stage car companies would make

their warranties null and void if

it had ethanal in it? That was a

scare tactic aided and abetted by

the Labor Party a few years ago. I

think most people have overcome

that particular circumstances.

There are a sum things that you

have to do. Pre-1993 vehicle

engines, all over the world the

same cars used in Australia are

using ethanal. Up to 10% ethanal

there is no need to change anything.

There are car nz the United States

and Brazil that are using 75% and

80% ethanal at the bow zer. I am

not proposing that. I am proposing

that we move in legislation from

nought to 10%. That would not only h

an impact on renewable energy and

the environment, there is a whole

range of reasons. It would help the

environment by investment

employment and sugar cane price.

They are increasing the ethanal

production at the rate of one sugar

cane a year. It is quite incredible

what is happening overseas. We are

lagging behind P we are about to

cast aside the sugar in discuss tri.

They will have to go somewhere or

find something else to do. There is

no need to do that. We could turn

the sugar industry to ethanal

production and all the benefits

that would improve. We will be

following the legislation closely.

Thank pz for joining us. A new report has some dire predictions for property prices but not everyone agrees with it. We'll get a city-by-city picture at 7.15. Across Australia you're watching Sunrise.

HEAVY METAL MUSIC

BIRDS CHIRP, RADIO PLAYS SOFTLY DING! LIVELY CARNIVAL MUSIC Moist personal toilet wipes. Sheffield in Tasmania's remote north. Out here, the silence is overwhelming and Mother Nature provides in abundance.

Wouldn't it be good if you could simply capture this moment? These Birds Eye Peas are picked at their peak and snap-frozen within four hours of harvesting.

Carlos says no such thing as a

talented politician only greedy.

How funny, cut the pay and give

themselves a pay rise. I got one

from Shannon, how did a politicians

get a pay rise when the every day

worker gets a tax cut. Steve from

Queensland,you set what you pay for

however the good people prefer to

work in private industry because

the decisions they make will be

acted on. Why do pollies get a pay

rise at the dop of a hat but the

every pay people have to go through

more I have a question for mainly

the boys. Is it a macho thing not

to wear underpants? It is scary.

Speaking from experience. I don't

want to know about today.

Apparently Britain servicemen and

women have been ordered to remember

their underwear when they get

measured for new uniforms. They

don't normally do it? Yes, they

think it is macho. So the commandos

literally go commando Imagine being

a sailor on the seas. I had a

something about Mary nightmare and

you get it caught in the zipper. I

see underwear as a safety item I

have a similar treatment about

going to work nude. You have that

feeling that you walk out the door

with nothing wrong and I spend most

of the dream not being detected. I

am sure there are a lot of girls

having the same dream for having the same dream for you. Are

there any psychiatrists out there

who would like to give us an an

Alice why Beretts goes through this,

feelings of exposure? When I was a

kid, I would forget and go to

school in my pyjamas. Is there a

time when you should go commando?

Shower? When you are dressed. Like

a skirt and fish net stockings.

Call me old-fashioned but I am an

undies guy. Is there a time when

you go commando. Do you go commando.

Let us know why. Do you find it

liberating? If you are a bloke,

the boys just need a little bit of space. You brought the subject up. Politicians' pay packets are about to get a little fatter but how do they compare to company bosses? We'll get the facts and figures during Sunrise in Focus at 8.15.

Next, news, sport and weather together.

You're watching Sunrise across Australia.

LOUNGE MUSIC (People argue) HORNS BEEP

Geez mate, your bin's looking full. It's all my recycling. That's great mate, but you can't put that in there, or that. Why not? Causes problems at the recycling plant. And this could break down the machines. Just stick to the stuff that can go in your recycling bin.

So how do I know what I can and can't put in? Just get on the web, look at your recycling calendar or check out the sticker under your bin lid. Recycling, let's sort it out for our future.

Welcome to a new day. This is Sunrise. Still to come, the new research on whether gay men are made or born that way. We'll seek answers from the experts at 7.50. But now it's over to Simon for the 6.30 news. Good morning, everyone. Queensland police are investigating a gruesome triple murder. A woman called police to a home in Toowoomba early this morning. They found the bodies of three men, believed to have been bludgeoned and bashed. It is believed a teenage boy was also in the house and escaped. A short time later,

detectives stopped a van near Ipswich with five people inside. They're helping police with their inquiries. A Customs report has found workers at Australia's largest airport have been involved in drug smuggling and baggage theft. The Australian newspaper reports that an investigation into Sydney Airport staff uncovered evidence of links to organised crime. The classified report The classified report dates back to last September and also claims there's a terrorism risk. It alleges even workers with high-security clearance are involved in criminal activity. But the investigation doesn't help Schapelle Corby's case, finding no evidence of drug smuggling finding no evidence of drug smuggling between domestic airports. A team of Australian negotiators will head to Bali next week to discuss a prisoner exchange program. The deal may allow Schapelle Corby to serve her sentence in Queensland. For Schapelle Corby, the reality of 20 years behind bars is starting to sink in. The 27-year-old is lashing out at family and friends

asking to be left alone. But amid her despair, there's a little hope - a chance she could serve her sentence in Australia.

We've sent a draft to the Indonesians which covers all prisoners. It's not specific to any one particular prisoner.

A team of negotiators will arrive in Bali next week to thrash out the prisoner exchange deal.

The Government is also warning against a Bali boycott saying abusing Indonesia could harm Corby's cause but supporters are organising protest marches

for Corby's birthday on 10 July in every capital city. They also want Australians to avoid using Qantas, claiming baggage tampering led to Corby's arrest. Dollars and cents matter to them so hurt them in the hip pocket where it matters to them most, I suppose it would be most effective. Corby's Bali legal team told her of the protest plan yesterday.

But no sympathy from the chief judge. He's back at work and says Corby got what she deserved.

There are grave fears for the health of Douglas Wood the Australian hostage being held in Iraq. Australian Muslim leader, Sheikh Al Hilaly, is returning to Baghdad to help free the engineer. The mufti is still confident The mufti is still confident he'll be released but now believes the 63-year-old is in poor health. for ongoing medical problems. Mr Wood needs daily medication for ongoing medical problems. The sheikh has vowed to continue working toward a release. Melbourne's Luna Park will open today with two rides closed after a second malfunction in a week. A safety device on the Shock Drop failed to trigger during the latest incident.

Two children were left dangling four metres off the ground unsecured. Last week, six people were trapped for three hours after a roller-coaster car derailed. Worksafe engineers are investigating both incidents.

The final layer of make-up has been applied for the last-minute preparations ahead of today's Miss Universe tournament in Bangkok. 81 bikini-clad contestants

spent their final day practising the all-important stage walk

before running through their dance routines. You can check out who takes the crown from Australia's Jennifer Hawkins on Channel 7 tonight from 7.30.

Now to Mr Universe 1989, Mark Beretta. and lethal Leigh Matthews is furious with the AFL. The Brisbane coach is seething at the AFL's decision to scrap the Lions' retention allowance. The club was given extra room under the salary cap rules to attract players because it's not in an AFL stronghold but from next season that won't be the case. Matthews says the move shows the AFL doesn't care about the game outside Melbourne. To Soccer. West Ham is back in the English Premier League two seasons after being relegated. Striker Bobby Zamora's second-half goal was enough to secure a 1-0 win against Preston North End. Australian Open champion Marat Safin has lost to Tommy Robredo

in the fourth round at the French Open. Spaniard Rafael Nadal won his match

against local favourite Sebastien Grosjean in four sets. In the women's draw, Maria Sharapova will play Belgium's Justine Henin-Hardenne

in the quarterfinals

There is our daily Roger Federer

shot for Mel. He will play Victor shot for Mel. He will play Victor Henescu. Grant and the Weather Wagon have made their way to Bunbury. Hello again.

We are waiting for the Bunbury

express to steam through the

majestic train station in Nat's hometown. I think

hometown. I think the last one that

went through was 23 years ago when

that joke was written. There was a

certain love train that steamed

through a young local lady's heart.

That was the summer of 1969 I think.

One man who can tell us more is Sam.

He runs the current sweet shop called

called Taffy's. Sam was also

Natalie's current husband former

school teacher. So, Sam, can you

shed some light for us? Andrew was

a fantastic tennis player but once

he met Natalie he couldn't get the

ball over the net. Figure of

speech? He lost focus. He was quite

an academic you were telling me. He

was a great student. I warned him

about worldly women and what can I

say? They were in different schools.

He was in the government school and

she was in the Catholic school. How

did the love blossom It was across

town. He was on one side of the

track and she the other? Yes, he

turned out to be an editor so he

could edit out the bad parts. Did

you always know they would be

together? It was written in the

cards. You couldn't change it. It

is a beautiful love story. They

still tell it at the visitor's

centre which used to be the

station.

The end result as they say the

proof is in the pudding. They is

getting ready to. It is good that

Andrew is an editor because he will

be able to hit the eject button. Hi,

Nat, I hope you are enjoying the

show as we dump it all on you I am

hoping she is still asleep. If you

are not, probably you should be.

Should be No baby yet by the way.

Still hanging on. A few more weeks

to go. Politicians are in line for a pay rise but not all of them want it. After 8 o'clock we'll hear from the MP who says he's paid too much already. Next we'll cross to the place where money talks. Nelson Aspen joins us from Hollywood after the break. Sheffield in Tasmania's remote north. Out here, the silence is overwhelming and Mother Nature provides in abundance. Wouldn't it be good if you could simply capture this moment? These Birds Eye Peas are picked at their peak and snap-frozen within four hours of harvesting.

Welcome back to Sunrise. Let's check the newspapers Let's check the newspapers from around the country. The Herald Sun is covering Derryn Hinch's apology over his comments about Graham Kennedy. Last week the Melbourne radio host claimed the entertainer died of AIDS. Yesterday he stood by his claims but said he was sorry if he offended Kennedy's fans. Hinch's colleague, Neil Mitchell, says the apology is pathetic. The Australian has fresh claims

Haven't we seen the blood tests?

Yes, he didn't have it. I don't

know why he is saying it. The Australian has fresh claims about airport staff smuggling drugs through Sydney airport. The paper cites a classified Customs report which apparently concludes workers, including baggage handlers, have been involved in smuggling and stealing from passengers.

The Sydney Morning Herald wants you to meet some of the children

in immigration detention centres across the country.

The paper has photos and bar codes of the seven kids born in detention. The Australian Medical Association has now called on the government to release children from the centres. The movie career of Sylvester Stallone has been slowing in the last couple of years. But now it's possible to buy the action hero online. To tell us more we are joined by Nelson Apsen in Hollywood. Good morning, Nelson, what's for sale?

You know he wants to do Rambo 4 and

rocky 6. That bronzeed sculpture of

him that we remember from the Rocky

movies is on sale on eBay with a

minimum bid of a million dollars.

There is an organisation in

Pennsylvania that is hoping to

raise $3 million to create a sport

centre and a sport library. There

are no bids for the statue. I don't

know if that is a clear sign that

no-one is interested in having a

10 foot tall replica. Nelson, I

love the Griswalds. I love all the

National Lampoon movies. It looks

like they are going to hit the

tourist trail again. They may go to

Martin Place.

Martin Place. Chevy is in

negotiations to do a Vacation Down

Under. Monty 's idol has changed.

Chevy is talking about doing an

Australian version that would

include a cameo by Paul Hogan. I

say give a cameo by Kochie and Mel.

We will catch you later in the

program. This is the competition

that you love. You would have killed for this one as a boy. Here's a competition Kochie would have killed to win as a boy. We're looking for children and teenagers to become official Wallaby ball boys and girls. It gets better. You'll be used at one of the upcoming Tests against France, New Zealand and South Africa. Imagine the thrill of running onto the field, imagine the patriotic passion, imagine showing off to all your mates.

You'll get to meet George Gregan. It's all thanks to GIO's Ballboys to the Wallabies initiative. So nominations are now open. If you know someone aged between seven and 15 who you think deserves this, drop us a line. We're looking for young Australians who've done something selfless

like donating their piggy bank savings to charity.

Just head to our web site and follow the instructions. Shortly on the show, another safety scare at a popular Melbourne attraction.

We'll speak to the mum who witnessed it.

The report which shakes the foundations of property prices.

Find out how your area is tipped to go. This is Sunrise on Seven. home.. # Thunder! SONG RESUMES SONG PLAYS IN DISTANCE # Thunder! VOICEOVER: The value-packed limited edition Storm ute. The ultimate ride.

Buy a toy from June 4 and a

donation will automatically be made

to the Smith family learning for

life program. Buy a toy and help us

raise $150,000 to help

disadvantaged kids. The Kids Day

appeal until June 4.

I am going to look at every single

one of you out there from today.

The number of people that go

commando is staggering us. This

follow the report out of Britain

where they are advising all of

their staff that they must wear

undies when they get fitted for

uniforms because they find too many

that drop their daks They don't

wear them. Brad says go commando

less laundry. Brett says I haven't

worn a pair for about 10 year worn a pair for about 10 year worn a pair for about 10 year it's.

Another Greg says you cannot wear

them when wearing a kilt and you

are inspect pd by mirror. What is

that on a cold day? Where is it? My

husband doesn't even own jocks. He

goes commandos all the time. I work

for the Australian Defence Forces

commando all the time especially in

hot climate it gives the boy for

room and no chaffing I had no idea.

Jenna says my husband never wears

jocks and he is a big studies . You

get peel back. Isn't there a

hygiene issue? It is amazing how

many people are owning up to us.

Aussie male soldiers do the

same.Ful says I free ball whenever

possible, it's all about comfort. I

got bun from Bob. For a long day's

work and of course within the

confines of home I love to go

commando. The only danger is when

the dog Less watching, I thought

there would be more washing. One

pair. You have to wash them more

often. And you have to make sure

you shake well because that is a

really embarrassing situation and

that often is a...Look at the time.

Good morning to you. If you are

just joining us for breakfast, I am

really sorry. Karen from Queensland

has sent in the Thought of the Day.

We need Nat back for a little de

core um. We will move on. Time now for the Thought of the Day and it was emailed in by Karen from Queensland. "There are two theories about how to win an argument with a woman, "neither one works."

Joke of the Day a woman - a

retired gentleman goes to

Centrelink office. The lady behind

the counter asks for his driver's

licence to verify his age. He

looked in his pocket and realised

he left his wallet at home. He said

he would have to go home. She said

don't worry unbutton your shirt. He

unveils a massive silver hair. Your

silver hair on your chest is proof

enough for me. She stamps the

application. He tells his wife, I

forgot my driver's licence. The

lady was so nice she just said open

your shirt and she said if you you

look the right age. The wife said

if you dropped your duds you might

have got the disability pension We are deteriorating this morning. The critics love Coldplay's new album but is it the apple of Molly's eye? Find out next hour when he rates the new releases. Straight ahead, we've picked an Armada of news, sport and weather for you. You're waking up with Sunrise.

If your house was built before 1988, some of the materials it's built from might contain asbestos. And that's fine if they're in good condition and if they're not disturbed during renovations or repairs.

But it is important to know where asbestos might be in your home who might handle it, and to make sure that anyone

like tradesmen, tenants or potential purchasers, knows too. For more information, see this booklet or the asbestos website.

You're starting the day You're starting the day with friends. Now back to the Sunrise team.

Coming up, the safety scares taking the fun out of Melbourne's Luna Park. The predictions of a roller-coaster The predictions of a roller-coaster ride for property prices and we'll preview the farewell for Graham Kennedy. Later, how much is too much when it comes to politicians' pay? Now here's Simon with the 7 o'clock update. Good morning, everyone. Three men have been found dead in a home in Toowoomba in South-east Queensland this morning. It's believed the men were bashed and bludgeoned. A teenage boy is also believed to have escaped the attack. Police were called to the home by a woman. A short time later detectives intercepted a van near Ipswich with five people inside. They're helping police with their inquiries. Joining us for the latest is Seven News reporter David Salmon.

A Customs report has found workers at Australia's largest airport have been involved in drug smuggling and baggage theft. The report claims some staff at Sydney Airport have links to organised crime and security breaches pose a terrorism risk. Police and airline authorities have been investigating Sydney Airport for the past month, since baggage handlers were linked to a major cocaine syndicate. But the Customs report goes back to last September and finds incidents of airport workers smuggling drugs and stealing from passengers are common. It claims even workers with high-security clearances are involved from baggage handlers, to air crew, to security screeners themselves. The report, obtained by The Australian, claims the rostering system makes it easy for dodgy baggage handlers to get their mates working in the same gang. It believes they drop off drug imports in surveillance blackspots along baggage tunnels and divert international packages onto domestic baggage carousels. But the report doesn't help the case of Schapelle Corby finding no signs of drug smuggling between domestic airports. Customs staff are said to be furious Customs staff are said to be furious about the findings but fears of a union backlash may have prevented them from taking further action. Schapelle Corby supporters are asking Australians international and domestic flights, to avoid using Qantas for international and domestic flights, concerned poor security contributed to her arrest. Mass protests are also being planned to coincide with her 28th birthday on 10 July, but the Government is warning Australians against abusing Indonesia. A team of negotiators heads to Bali next week to work on a prisoner exchange program. Foreign Minister Alexander Downer says a decision about Corby's future rests with the Indonesians. Our government, for its part, understands these are matters for the courts not matters for political interference with the courts. Independent Federal MP Tony Windsor the phasing in of ethanol in petrol. is introducing a law for the phasing in of ethanol in petrol. He's has told Sunrise the move would boost regional economies and be better for the environment. That would not only have an impact on renewable energy, our health, the environment, there's a whole range of reasons but it would have a massive affect on our regional communities by way of investment, employment and underwrite the grain price. The Coalition party room will be split today when MPs debate a plan to overhaul mandatory detention.

Victorian backbencher Petro Georgiou is introducing two private member's bills calling for the release of all children and long-term detainees. Four other backbenchers have spoken out in support of the proposed changes. Prime Minister John Howard says

the issue of detention won't be decided by a conscience vote. Australia's showbiz elite will gather in a small country theatre today to farewell Australia's king of television, Graham Kennedy. The non-religious funeral

The non-religious funeral in the NSW Southern Highlands is intended as a celebration of his life. 71-year-old Kennedy died in a nursing home last week. Channel Seven will broadcast the service live from 11 o'clock this morning, Eastern Australian time. Checking the finance markets.

New York was closed for a public holiday, so was London. Our region traded in postive territory. have dominated this year's APRA awards picking up two gongs each. Some of Australia's leading musicians rocked up for the red carpet event, which recognises the industry's best songwriters and composers. 21-year-old Higgins took out Song of the Year with her No.1 single Scar

and was also named Breakthrough Artist. Wow, this is such a great honour, thank you, guys, so much,

it means so much to me. Fellow Melburnians Jet were awarded Songwriter of the Year and recognised for the most performed work overseas for Are You Gonna Be My Girl. Checking sports news now with Mark Beretta and West Coast takes a big gamble. The Eagles will challenge a two-match suspension offered to Tyson Stenglein offered to Tyson Stenglein by the AFL's Match Review Panel. The midfielder knocked Port Adelaide forward Ben Eckerman unconscious in the first quarter of Sunday's 117-point win. The club says it was a legitimate challenge. The League leaders are already without ruckman Michael Gardner for three matches with a knee injury. Cronulla will contest Jason Stevens' knee lifting charge at the NRL Judiciary tomorrow. The prop was hit with a Grade One The prop was hit with a Grade One contrary contract charge following an incident which knocked out Parramatta hooker PJ Marsh. Sharks' coach Stuart Raper says his player has no case to answer. PJ Marsh got his head on the wrong side and copped a bad accident. The Roosters still haven't decided if they'll challenge captain Luke Ricketson's striking charge. Australian cricket coach John Buchanan says July's Ashes series against England will be the toughest in years. The team begins preparation for the tour

with a net session in Brisbane today. Buchanan says England will field a very different team to when the two sides last met. New captain, some good bowlers, I think probably a depth of side that they haven't had before. Australia has won the past eight Ashes series. Defending men's champion Defending men's champion Gaston Gaudio

is out of the French Open. Gaudio lost to Spain's David Ferrer in five sets. Australian Open champion Marat Safin lost to Tommy Robredo while Rafael Nadal won his rain-interrupted match

against Sebastien Grosjean Resuming at a set all, Nadal wasted no time in taking the third 6-0. He sealed the match 6-3 in the fourth. continues for Rafael Nadal. COMMENTATOR: And the teenage roll continues for Rafael Nadal. That's win number 21 in a row. What a marvellous clay court

What a marvellous clay court season it has been. In the women's draw, 2003 champion Justine Henin-Hardenne beat Russia's Svetlana Kuznetsova in three sets. She'll play second seed Maria Sharapova in the quarterfinals.

Of course it is the big day for the

Miss universe tournament. How come

Miss universe is in sport? It is

the tournament. It is in sport Who

are you tipping? Miss Canada. Miss

Australia is in there with a good

chance. You couldn't have back to

back Aussies. You could. It would

be exciting. Aren't these things

rigged? No. We will look into that.

We will look into that at 7.30

Jennifer won because she was the

most gorgeous one there. They

wouldn't pick her again. Grant has made it to Nat's hometown of Bunbury. Hello again.

We certainly are here, David. You

wait until we bring out Miss

Bunbury. We will unveil her a

little later on. As we sit here

desperate for breaking news on

Nat's impending baby I think we

need to take a step back and

remember the love affair that

started between her and Andrew.

This elephant made out of two tree

trunks is symbolic of their love,

strength, endurance and considering

the next few hours or days, of

course they have a big tusk ahead,

I like it. Fire, I am on it. Dry, north-easterly winds will keep temperatures above average in WA again today. Meanwhile, there's a strong high in the Bight. It's pushing south-west winds and showers across south-east South Australia, southern Victoria and Tasmania. And onshore winds will generate scattered showers along the Queensland coast. The two day outlook - sunny and quite warm in Brisbane. Fine in Sydney and Canberra, but showers are possible tomorrow in Hobart. Melbourne and Adelaide can expect some rain tomorrow, but it should clear by Thursday. Staying cloudy in Perth and hot in Darwin.

We will see su soon from Barr town.

New research has bad news for homeowners but possibly good news for buyers. The report predicts a significant fall in house prices for most cities.

In some cases, tens of thousands of dollars. BIS Shrapnel has released the report and spokesman Angie Zigomanis joins us now. Good morning. So why are property prices going to fall?

Our view is that property prices

have hit affordability roll. We

have seen prices ease back across

most of the capital cities. Sydney

and Melbourne were the first. We

have seen most of the capital

cities follow and that was after

that interest rate rise at the

beginning of 2003 How do you pick

that affordability wall? Why does

it come up to this level? We track

affordability in terms of mortgage

repayments versus income and these

are actually the highest or least

affordable levels since the 1980s.

Prices have gone up significant

amounts adjusting for low interest

rates and lowest since the 1980s

And of course in the early 1990s

immediately after that period 1980s

we went into that property slump.

So maybe history repeating itself

do you think? Yes, in that

environment we saw strong economic

growth come through and that just

put a further strain on

affordability and we saw a few

false sales and prices easing back

further Do you think we will see a

property market slump similar to

the early 1990s. We have seen

prices slump in Sydney and

Melbourne and we will see other

cities follow in 2006. We may not

necessarily see the sharpest but a

nominal decline but in real terms

we will see a greater decline Let's

take a look at what you are

predicted for the major cities.

Sydney is going to be the biggest

karpblt followed by Melbourne and

Adelaide and Canberra. Brisbane,

Perth and Darwin go up. What is the difference between Darwin and

Sydney? When we do our forecast we

count demand and supply. In

particular Darwin, Perth and

Brisbane we are see sing strong

demands coming through . It has to

do with migrants moving into those

cities A lot of your economists

have shot you down in flames say

sing you are too pessimistic. I

think Craig James said if we got 9%

home rates as you are predicting

then we will have the mother of all

recessions? It won't be driven by

the housing sectors. It will be

driven by business investments and

they are not as sensitive to

interest rate rises. It will take

more to hit inflation on the head

Do hu think it will lead to the

mother of all recessions? Probably

not. I don't think the economy will

be as stretched as it was in the

mid to late 1980s about we will see

significant slow down in 2007 and

2008 Let's take a look at your

advice as a result of this for

buyers and sellers. On the basis of

this depending on the capital

cities, you would have to be

delaying your purchase because

there are more falls to come? From

a financial perspective, if you are

renting, your rent is about 3 to 4%

where if you are borrowing you are

borrowing at 7%. So it is better to

get into the mark tet in 2007 at

its lowest If you are a renter and

you want to get in, wait a couple

years. What if you are a seller, it

looks like you have to be more

realistic on your price? Yes, you

have to be to meet the market. You

are probably sitting on a healthy

capital gain so you get reinvest

elsewhere for the potential of

making money What did the

difference between investment

property and owner occupyer. The

biggest falls that is dragging all

the figure it's down in the

investment market? Yes, a lot of

investors came into the market when

it wasn't doing so well. They are

relying on renters to come in and

many supplement the mortgage.

Particularly in the inner city

areas there has been a lot of

pressure on rentals and the terms

that they can get and it has

affected prices So if people are

looking for investment properties

the inner city market in Sydney and

Melbourne is the best place to buy?

Yes, in Sydney. We are see sing

vacancy rates to. Over the next 18

months so or so we are going to see

a supply crunch and that will lead

to strong rental growth which gives

people a buying opportunity in the

next 12 months, two year snooze

some good advice for people. If you

are going to be a buyer maybe wait

a little longer and financially it

is better to rent. If you are a

seller, take care and be realistic

on your price P thank you. Now here's Mel. Thanks, Kochie. Shifting focus now, and the king of Television, Graham Kennedy, will be farewelled today in the New South Wales Southern Highlands but it won't be your typical funeral. The ceremony will feature performances and tributes from some of the biggest names in showbiz. Tony Sattler, Close friend and funeral organiser, Tony Sattler, joins us now from Mittagong, where the service is being held. Good morning. The ceremony's being held in a small theatre.

I understand it is being held in a

small theatre which will be packed

to the rafters We thought it was

reasonably apt because Graham

started his career as a walk on

extra in what was called the Little

jo theatre. So we thought it apt to

finish his career in a little

theatre. Because we are in a

theatre we are going to do a show,

not a funeral. Graham didn't want

anything religious and he wanted

friends. He had millions of them

Who will we see, who will be

speaking and singing at today's

funeral? Stuart Wagstaff will be

hosting it. John Paul Young will

cover what is in the air in that

theatre and that is a lot of love

and he will be singing Love is in

the Air. Tony Lamon who was

featured on the first IMT in 1957

will be singing unone of Graham's

favourite song. We got John Mangos

and my wife, David William son who

wrote three of Graham's films. Jack

Thompson. There are lots and lots

of people And his favourite

football team will be involved? I

rang the St Kilda coach on Saturday

morning and I said Graham was a

long time supporter of St Kilda do

you reckon you guys could supply

some honorary pallbearers and he

thought about it for about 30 seconds and said of course they

will do it because they love Graham.

They are sending the club president,

the club coach, the team captain

and three tf their star players. As

we speak, they are in fact in the

air. Lindsay Fox the transport

millionaire has supplied his

whizzbang helicopter to fly them

directly from Melbourne to here.

They are travelling as we speak. It

is going to be a terrific thing. We

are setting up a big screen outside

St theatre so the general public

can share in this and of course

there is the television. I think

the lovely thing I am getting from

talking to you, I know we are

talking about the passing of

somebody which is extremely sad and

we are talking about a funeral but

you used words such as terrific and

fantastic. You are seeing this as a

celebration of a man who was loved

by many. It is not so much a sad

occasion but more like saying good

on you, farewell Graham will be

with us but if Graham could be

commenting on what is getting on he

will say yes, yes, it is wonderful.

More songs. Let's get it over with

so we can have a drink. It is that

sort of party. I was going to say

su talk about friends a lot. Tell

me about family. Will we be seeing

many of Graham's family? Graham

didn't have any family. He had a

couple of old aunts that died a

few years ago and basically Noelene

and I became his family. He was a

part of our family and we were his.

That is about it as far as family.

That is why it is just friends. I

think all of us around Graham, the

close people like Stuart and John

Mangos and Noelene all we can do is

per son fie and express the love

that millions and millions had for

him which has really hit at the

dreadful Hinch for saying such vial

things and that millions of

Australians are outraged because

they loved him so much I was going

to ask you about that and quite

prepared that you would not want

to comment on it. Why do you think

someone would say something like

that and what does it do for his

memory when it is wrong. It was a

lie for a start. What it does for

Graham's memory, it strengthens it.

People were so outraged is the

only word and disgusted that this

man can stoop so low in a grab

forehead lines or ratings or

whatever and has sort - his apology

yesterday was very wishy washy. He

apologised only to his fans. He

didn't apologise to Graham Kennedy.

The 3AW management saying that they

are satisfy wd with that would seem

to me to indicate they are out of

touch with the community as well.

Tony, thank you for joining us this

morning. I wish you all the best.

It is going to be an incredible day.

You with going to say farewell in a spectacular fashion. Channel Seven will have live coverage of Graham Kennedy's funeral. That's from 10.30 this morning eastern standard time. Incredible as it sounds, some federal politicians want to turn down a pay rise. Next hour we'll ask one why they're taking this stand. This is Sunrise across Australia. (Dog barks) MICROWA E BEEP (Dog barks) (All shout) VOICEOVER: Nachos with smooth, creamy Kraft cheese spread. Any excuse'll do. Hi. Think someone needs a hug. Come on. Nescafe Blend 43 will help you become a morning person too. No, mate.

Welcome to a new day.

This is Sunrise.

We mentioned earlier the front page

of the Herald Sun radio war is St

headline and it is talking about

the comments that derrin Hinch made.

He said that Graham died from an

AIDS related illness. It this was

contra dibgted by a report saying

he tested negative for AIDS and

derrin Hinch came out and said

sorry. Not to give further

publicity but Tony Sattler brought

it up. I want to know what you

think. Am I the only one to think

it is disgusting? It is so cas. We

are all in the media and we all

make about big mistakes. When you

you make a mistake that is blatantly wrong the quickest thing

you come out and do is apologise.

You have a huge influence over

other people's lives. While people

say "Graham Kennedy is dead" there

are people who are very horrified

by this. The bloke is just a

boofhead. Derrin has to apologise

and say "Sorry, I got it wrong" be

man enough and do it Drop us an

email or SMS this morning. Which music stars were winners at the APRA awards last night? Molly Meldrum has all the details Molly Meldrum has all the details in just a few minutes. Now it's over to Simon Reeve for the 7.30 news. Good morning, everyone. Queensland Police are investigating a gruesome triple murder in Toowoomba. Joining us for the latest is Seven News reporter David Salmon. Good morning, David. What's the latest?

Good morning, Simon. Police here in

Toowomba received a triple 0 call.

They went to Hume street and found

three males. We believe a

16-year-old boy was bashed in the

same house S he was able to leave

the house and make it to a

neighbour's home. That 16-year-old

is now recovery in Toowomba

hospital and the police are

speaking to him. Not long after speaking to him. Not long after

that triple 0 call they got a

location of the car. They were able

to locate the car. It is believed

three men and a woman are speaking

to police at Ipswich and more

details will be released later this

morning Is there any indication

those people are known to the

victims? That is not known. There

will be a press conference in half

an hour. SES volunteers came in the

area looking for clues to help in

the investigation. Hopefully more

details will come to light in an half an hour. A secret Customs report has detailed more startling allegations against workers at Sydney Airport. According to The Australian newspaper drug smuggling and baggage theft. are linked to organised crime, drug smuggling and baggage theft. The classified report The classified report dates back to last September and also claim's there's a terrorism risk. Customs staff are said to be furious about the findings.

Authorities have been probing into operations at Australia's largest airport for the past month since baggage handlers were linked to a major cocaine syndicate.

There are grave fears this morning for the health of Douglas Wood, the Australian hostage being held in Iraq. Australian Muslim Leader, Sheikh Al Hilaly, is returning to Baghdad to try and help free the engineer. The mufti is still confident The mufti is still confident he'll be released, but now believes the 63-year-old is in poor health. Mr Wood needs daily medication for ongoing medical problems. The sheikh has vowed to continue working toward a release.

The Government's new drought relief package is under fire. The Opposition claims it only goes half-way. The Prime Minister's announced a $250 million scheme to help farmers cope. Labor says it's half what was expected and doesn't deliver cash grants. The package gives farmers bigger subsidies and relaxes asset tests to allow claims for welfare payments. The Government says it will boost morale and keep viable farms operating. Labor's plans to block the Government's income tax cuts have backfired, according to the latest opinion poll. as preferred PM over Kim Beazley John Howard has increased his lead as preferred PM over Kim Beazley since delivering the Budget. Despite the recent embarrassing immigration bungles, the Coalition has bounced back to its election-winning lead. The Government's proposed industrial relations reforms may hit a hurdle

when the legislation is debated in the Senate. The Coalition will hold an Upper House majority next month but Queensland Senator-elect Barnaby Joyce says he'll cross the floor if the reforms violate States' rights. Your job in the Senate is to represent your State

above and beyond any other allegiances to other forms. Queensland's Opposition Leader Lawrence Springborg has called the reforms stupid.

Chasing cheese downhill is a bizarre Chasing cheese downhill is a bizarre way to spend a spring afternoon but in the UK, they take the Coopers Hill annual cheese roll competition very seriously. A 3kg wheel of double Gloucester cheese can top speeds of 130km/h. It left a customary trail of casualties in its wake. The rules are simple the first person to make it to the bottom of the hill gets the cheese.

Checking sports news now with Mark Beretta and Leigh Matthews fires a shot at the AFL. The Brisbane coach is seething at the AFL's decision

What about the poor bloke at the

bottom catching the guys coming down. The Brisbane coach is seething at the AFL's decision to scrap the Lions' retention allowance. The club was given extra room under the salary cap rules to attract players because it's not in an AFL stronghold but from next season that won't be the case. Matthews says the move shows the AFL doesn't care about the game outside Melbourne. To Rugby League, former Queensland State of Origin great Shane Webcke says Cronulla forward Danny Nutley should replace Steve Price in the Maroons side for game two of the series. Price will be out for 12 weeks after he injured his knee against the Tigers at the weekend. Australian Open champion Marat Safin has lost to Tommy Robredo

in the fourth round at the French Open. Spaniard Rafael Nadal won his match against local favourite Sebastien Grosjean in four sets. In the women's draw, Maria Sharapova will play Belgium's Justine Henin-Hardenne in the quarterfinals. The Miss Universe tournament is on in Bangkok tonight. Sporting Bet has Miss Canada the favourite at $6.00.

while Miss Australia, Michelle Guy from Perth, has firmed to $26. For a bit of roughie, Miss Bulgaria is at $151. You can check out who takes the crown from Australia's Jennifer Hawkins on Channel 7 tonight from 7.30.

How do they come up with the odds?

They study the market. It takes

many men many hours. By the sound

of it, Miss Bulgaria is out of it She is an outsider.

Let's check in with Grant and the Weather Wagon crew.

They are in Brr-town, Bunbury.

Amazing to be here at this

particular time as we wait so

desperately for news on Nat's baby.

There is a message here from

Bunbury. All the best. You kobt

hope for a better bunch of people

to turn out this morning. We

thought we would kickoff if you are

watching at home or in hospital,

this little bub is William Hammond.

He sleeps like there is no tomorrow.

That is all he does. He doesn't

wake up. Miss mum thinks it is just

fantastic. You have the dream child

that Nat wants. What is he like? He

just sleeps. How do you wake him

up? We have to poke him. His name

is William Hammond. That is a blues

player Yes, and he is going to make

mum rich. I would like to introduce

you to Kath. She has some dirt. Was

she a focused student or a talker?

A big talker. Parents teacher night,

they would say she would do much

bet per if she stopped talking She

was a good student. About Nat's

final day at high school when she

crashed a car and Kath was there

that day and can you tell us the

truth because her driving has

improve pd but back then she drove

into another car It was the last

day of year 12 and we were all very

excited and perhaps Nat was a bit

more excited than others and

wasn't watching where she was going

and crashed with another car. Grant,

that is not the story that she

tells us. She tells us that a group

of nuns from the school crashed

into her, not the other way around.

The truth has hit the tabloids. The

fault has been put on Nat entirely.

She is telling the nun story. Can

you believe the nun story? No, no

nuns involved. So stalk ming in

car parks and no truth. I am

shocked. There might have been two

crashes that day for Nat. Yes,

there could have been.

We dropped a bombshell. Kath has let

the cat out of the bag. The truth

train has rolled into Bunbury and

the thoughts are with Nat on this

day. We are going to dig deep. The

truth has to come out. I am shocked.

This is a famous story that the

four nuns who were teachers smashed

into Nat on that final day. She is

squirming around She is up and down

screaming at the television No nuns

and she crashed into the other car.

We should try to get her on the

phone. I don't think Nat would tell

an untruth about nuns. I am with

Nat. Maybe the trauma of the moment

she reconstructed it differently A

nun is a nun. We will have to check

with her. In Nat's absence...I can

smell a scandal in the air. I think

there might have been two crashes

that day. We will find out the

truth for you.

Ahead on Sunrise, does homosexuality come from nature or nurture? We'll examine ne