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(generated from captions) There's cloud along the Queensland coast due to a moist onshore air stream. also jet stream cloud There's still system over the Tasman bringing There's still a high-pressure

us fine and mostly stable weather through the south-east. Showers and strengthening winds are forecast for first of a series of cold fronts moves through from west. Around the Up top stories tonight - the NRL is in crisis over a cap scandal. NRL is in crisis over a salary

Storm has been stripped of its premierships and forced to pay $1.6 million salary cap. Government has defended salary cap. The Federal

decision to axe the home Government has defended its

insulation scheme after a damning report on rorting and faulty installation. And ABC News. Stay with us for 7.30 Report coming up can find the latest 24 hours a day at ABC can find the latest headlines

Thanks for your company. Closed Captions by CSI

An end for the Government's disastrous home

insulation scheme. The Prime

Minister who announced the

plan amid great fanfare last

year was nowhere to be seen

as it was scrapped today

instead allowing junior

minister Greg Combet to bring

the bad news. Part of the

stimulus package to keep the recession at bay the scheme

saw a rollout of $1.5 billion

in roof installations around Australia before the

Government was forced to call

a halt an it will cost up to another billion to clean up

the mess left. Tens of

thousands of homes need to be

checked for safety and

repaired if necessary. Blue

it is our responsibility as

we changed the policy.

Playing politic was our life

I get it in terms of the

burden it puts on you as a

business. Big time! I want

to go home and say "You guys

have a job". When the

ceiling insulation problem Government suspended its

Kevin Rudd came down from the

hills to hear of the hardship

of workers. Platinum

Insulation. We are from

Albury. We are determined

to fix this. Today the

program was axed. The

Government has determined not

to proceed with the proposed

insulation rebate under the

renewable energy bonus

scheme. I have not felt

this out of control of a

situation ever in

business. They are in the

insulation business and met

Kevin Rudd outside Parliament

House in February. The region

I'm here talking to you is to

decision as a Government say I get it, we have taken a

which directly affects your

businesses and your workers.

The region I'm here talking

tos you is to work out how we

transition from the old

scheme to the new scheme.

Will the - well the Prime

Minister seemed quite

receptive. He told us that he

got it. He said he would fix

it and after the meet link

the and then further on

inside it all seemed like everybody was generally interested and wanted to do

something to help us.

Definitely. Um, he said he

got it. He said that several

times "I get it, I get it, I

get it". He obviously does

not get it. He said it was

going to start again, he has

taken it away. The ceiling

insulation plan was part of

the $42 billion stimulus

program designed to keep the

economy from tanking during

the global financial crisis.

A fund of $2.5 billion was

set-up. Installers were paid

$1600 a job. It was managed

by the Federal environment

department. The billions on

offer super-charged the

industry. The number of

registered installers jump

from dozens to 10,000. In

November last year 180,00

installations were claimed

but the cash dragged shonky

dealers and untrained workers

into the industry. The

program claimed 4 lives, was

linked to 120 house fires,

saw 50,00 roofs electrified

and 150,000 other bad

installations so it was

suspended. The Government

announces today a series of

programs of the changes to the environmental

Government. The spotlight

soon revealed that the

Minister and his department

had been repeatedly warn bad

the risks of the program by industry groups and state

fair trading agencies. Under

sustained Premierure the

Prime Minister demoted Peter Garrett. Minister Garrett

and I had a long conversation

early this afternoon and I

indicated to him the course

of action I would take. He

accepted my decision. To thankless task of cleaning

the mess and restarting a

similar scheme was handed to

an already busy man. Greg

Combet will be appointed as

the Minister for energy

efficient say. Greg Combet

will have direct responsibility for the

oversight and the

implementation of the wind-up

of the household insulation

program and the rollout of

the household renewable

energy bonus scheme. Now

review by former Defence

Secretary has killed off any

chance of a new scheme rising

the Ashes of the old. He

concluded that - My job toys

wind up the home insulation

program and to rectify,

priorities the safety issues

which I'm doing. Dr

Hawks'report says the program -

There are still lots of

unanswered questions. Can

you tell us how much it cost

to the rollout the problem so

far and what lit cost to the

clean it up? I mention add

few specific figures earlier.

The workers adjustment

package is on approximately

$42 million. The industry

assistance package in respect

of which detailed guidelines

will be available soon is of

the order of $15 million.

However, the cost as I have indicated previously of the

inspection programs we will

implement will be met out of

the home insulation program

budget and all of the figures

for these account are being developed in the context of

the budget process. The final

bill could be enormous. There

is $1 billion left in the

says significantly more than budget and Dr Hawks'report

200,000 homes might require

inspection and remediation.

These demands may leave

little available funding for

the renewable energy bonus

scheme. The Government must

commit. The Prime Minister

must commit today to

inspecting every one of the

million homes under his

failed home insulation

program and the region is

simple - we know that there

are 240,000 dangerous or

dodgy roofs and unless every

one of the million homes is

inspected there is no

guarantee for pensioners, no

guarantee for mums and dads,

no guarantees for Australians

their roofs are safe. The

industry that was pumped up

by Government money has now

been let down. The Government

has kept us on a leash for

the last. The couple of

months. We need answers, we

need to know how we are going

to be compensated for this

mess, for this stock, the

rent, for the interest. And

we need to know urgently. We

cannot wait for a few months.

A lot of people have already

gone under. I do not want to

be one of those statistics.

We owe people money for stock

and stuff but we cannot pay

them until the Government pay

us. Which we cannot get any

information about getting

when we will get paid. This is bad influences for the

Government but it came

fortuitously on a very good

day. One of the biggest news

stories in Australian

sporting history broke around

it ensuring it would be

buried in bulletins and

tomorrow's papers and then

the Minister for sport and

early childhood education put

out a press statement of her

own announcing the release of

two childcare reports. Buried

in that is this sentence "The

Government has decided to to

proceed with additional

centres to the 38 centres

already in train". That

clearly breaks this pledge.

We want to assist in the

overall supply of childcare

places by constructing the

additional 260 centres across

the country. But the NRL

story ensures the disappearing childcare

centres will disappear. There have been questions

raise bad the timing of this

today and the fact it is such

a big story and it coincides

with some bad news announcements from the

Government including on your

own side with the childcare

announcements and you have

said you did not know. Can

you clarify the timing on

that for me? I assure the

media release I issued today

around the childcare

announcements and policy framework going forward was

put out before I had any

contact with the the NRL or

anyone else in regards to

this story. Kate Ellis's

press release on this was

designed to hide the story.

No-one made to it the press

conference because no-one

knew what she was going to be

talking about so there are no

pictures of what she had to

say. No doubt someone think

thanks this is good media

management. That would be a

mistake. Scandal, once again

has rocked Rugby League today. This time it is not

the players but some

officials at the Melbourne

Storm, a team wrapped in

success and adorned with many

of the biggest names in the

game. The team was hit by the code's administrators the NRL with a five-star creations

fine, forced the pay back

more than $1 million in prize

money and stripped of the

2007 and 2009 premierships

after it was revealed salary

caps had been breached the

the tune of $1 front 7

million across five years.

The salary cap is designed to

prevent big-spending clubs

gaining an unfair advantage

in the competition. News

Limited and a 50% owner of

the team has alleged fraud

and referred the affair to

police. This is undoubtedly

one of the biggest scandal in

Rugby League history, bigger

than the salary cap breaches

conducted by the Canterbury

Bulldogs eight years ago. To

analyse the impact on the

game I'm joined by veteran supports journalist and awe

thorn Ian Heads who co- wrote

the history of Rugby League

and was a judge on the panel who picked the team of the

century. Did this come out of

the blue and what was your

reaction? It came out of the

blue for me. It is one of

those day Rugby League fans

will remember where they were

when they heard the news it

is that big a story. I've

been around the game for a

few years and it is one of

the three or four biggest

stories in the 103 years that

the game has been played. How

does it compare with to the scandal of the Canterbury

Bulldogs? It is bigger

because of the historic fact

of the club having

premierships taken off it. That is what clubs play for,

to win the tight many.

Melbourne won two and they

have lost those two. That has

never happened in the past so

in one way that is a very

historic thing. I commend the

NRL on the hard-nosed nature

of what they did. They had to

make the point strongly. It

appears to be a severe breach

and they certainly came down

heavily. How does it impact

on the game? Rugby League has

had its ups and downs in the

last 10, 15 years. Storm have

taken a long time, they have

been very successful very

early in their 12 years in

the game but it has taken

them a long time to build any

fan base in Melbourne. Yes,

it has been a real battle.

This will not do it any good.

Is a shattering thing for the

game really because it is

about trust, fair dinkumness

and the club doing the wrong

thing completely, not just at

club but a club with three of

the five best players in the

game in their ranks. A club

that has been the champions a

claim for the way they play

game so that has to hurt any

game obviously. Rugby League

will get through because it

is Ken Arthur said it was a

tough old boot and it is but

today is a shattering day for

the game. You have to ask the

question of how it will

impact the club itself

because players will be asked

to turn up week after week

for the rest of the season,

they have lost all their

point so far there, not

accrue points even if they

win so what is the

incentive? I noticed David

Gallop suggested he hopes

they play for pride. That may

or may not be but these are

professional sportsmen and I

really do not know what the

outcome of that will be. It

is not an attractive

proposition for the fans of

the Melbourne Storm. They may

vote with their feet by

staying away I don't

know. Possibly even a bigger

issue if the players find

some incentive if - and there

is another question I

suppose, those players who

have been receiving money

that they should not have

been getting under the cap

presumably will not get that money now so they will be

playing for less but the fans

will be asked to turn up for

the pleasure of watching them

play for nothing. Exactly. I

think the fans of a lot of

clubs feel cheated. Melbourne have been terrific club, they

have beaten a lot of clubs on

the way the their titles t

people who follow those clubs

will think we got beaten by a

team that has cheated which

is damaging for the game. You

have no doubt the club will

survive this nonetheless but

it must be an enormous

setback for them.. it is a

huge setback. I do not know

the future of Rugby League in

Melbourne, it has been a

really solid effort to try to

get a toe hold, it is not

easy. Rugby League has been

trying to do that since 1914

and has not succeeded the a

great degree but it seemed as

if there was something moving

with this team but this is a

setback of an enormous

nature. How hard is something

like this to hard? They

talked about two sets of books. I heard somebody comment this afternoon this

has been a BBQ conversation

for a number of years t storm

have had so many of these

big-name glamour players who

do not come cheap that

something must have been

going on? There have been

rumours around, the salary

cap was introduced in 1990

and it was regarded then as

act very difficult thing to

police which it certainly is.

In fact the team that won the

premiership that year was

fined subsequently, Canberra

for salary cap breaches so

what happened today is not a

news story it is bigger than

anything that has happened

before but the rumours as you suggest circulate about this

club and that and money paid

under the table and you know

very hard thing to pin down

which is why this appears to

be black and white, it makes

it unique too. The players

themselves, there is not

going to be any penalty

against players themselves

who might have been receiving more money than they were

supposed to understand the

cap but wouldn't they and/or

their agents know if they

were being paid money under

the lap on top of what was in

their official contract?

They would certainly know

that. If they were paid a

certainam and did not know

the total picture I suppose

they could argue "We knew

nothing about it" and some

clubs have worked on that

basis over the years t great

St George team that won 11 straight premierships, they

always said they did not know

what the man next to them was

getting that was private

business. Whether that applies I don't know but

there will be a lot of

questions asked and a lot of

contracts looked at. To see

sieve news limited who owns

50% ever storm are Storm. He

used the words "Fraud" at the press conference and news limitsed are bringing police

in. This must be embarrassing

for News Limited. I think so.s they have been such a

big player. As John H ardigan

said it is not the way they

want to do business and it is

a painful exercise

particularly such a fragile

time when they are looking at

stepping away with some grace

and the game being

controllinged by an independent commission. This

has muddied the waters

considerably I would

think. Although they have

been stripped of the

premiership for those two

years the to clubs who were

the other grand finalists t

Parramatta Eels and the manly

Sea Eagles are not going to

get the premiership and on

the one hand I suppose you

would say that is fair but

they are entitled to feel

robbed aren't they? I

suppose. It is a hollow

feeling to say because of the

rules we did win that comp

but they will not get

anything for it. That is

right. That is the way it

should be. They probably

would not want it that

way. Rugby League is not the

only code or sports where the

salary cap applies. I wonder

how this might impact on

other sports. I think all

sports are having a look at

how they operate the cap. Its

motivation is good I think,

to create an evenness in the

competition the stop clubs

becoming their own worst

enemies by spending too much

money so motivation for it

was good but it has been a

dreadfully hard thing to

police. Iran has opened

itself up to the foreign

media for the first time

since last year's bloody

election when journalists

were blamed by the regime for

inciting violence and told to

leave in some cases after

being arrested and beaten up.

The occasion this time was a nuclear disarmament

conference hosted by Iran

hoping to expose what it

calls the double standards of

the nations that want to put

new sanctions on the regime while they themselves hold

nuclear weapons but as

journalists arrived they

found that anything - sorry,

that reporting on anything

else was forbidden. Our

Middle East cordon Ben Knight

was one of the journalists

who returned to Iran. He

filed this report. This

feels strange. I honestly

thought I would never see

Tehran again. When we left

last June it was in the dead

of knight through streets

crawling with armed police

having been threatened with

arrest if we left our hotel

to film. How different it

looks now. Mind you the

traffic is just the same.

TRANSLATION: Tehran is like

a parking lot. For people

like this driver who make

around $600 a month the

Government subsidies on full

and electricity are crucial but President Mahmoud

Ahmadinejad is gradually

trying to wean the economy

off them. TRANSLATION: I

have a good life, I live in

an apartment but I'm single.

You could not do it if you

were married. Sanctions and

subsidies have combined to

create huge problems with

inflation. It is currently

running at 10% but peaked at

30% last year carrying cash

is not easy. Thank you very

much. This is 20,000 rias

which is worth $2. The

problem being an Australian

with sanctions I can not

access money from a bank or

use my visa card so I have to

carry the cache round. This

is about $300 worth and I

cannot get my wallet closed.

The streets are busy but

calm. Dissent has been

completely crushed here. It

has been months since the

last. The major protest and

there is no sign there will

be another one. The last.

The time we were Lear in the

days leading up to the

election we were relatively

free to roam the city and

talk to people even though

many of the people we spoke

to were wary of putting their

thoughts on camera but that

stopped the day after the vote and since then nothing

has changed. If anything the

regime is even more fimplly

in charge than before. We

have been given press cards

and instructions, we can film

in public but we are not allowed the talk to any

member of the public on

camera. I did Smith a lifts

names of people I wanted to

interview and I was bluntly

told that most were in jail.

As we moved around the city

difficult speak to some

people off camera. They had

only one desire, to Levi ran.

They were young and well

educated. I asked them if the

Government was worried about

losing its best and

brightest. The. "They don't

care. We are the ones that

took the streets and

protested. We only cause them

trouble. They are glad to see

us go". They detest the way

the President President Mahmoud Ahmadinejad is isolating the country

internationally. They were

disgusted at the nuclear

conference we were here to

cover and they see his

podium-pounding as a

disruption from the country's

domestic problems. How is it

that Iran can talk about

nuclear disarmament when it

has such a poor record on

human rights especially after

the last. The election? People are still in jail and

have been executed for

protesting. TRANSLATION: If

a few thousand people start

to do wrong in your country,

set cars on fire, damages

public property, how would

the police react? Would they

invite them to come to the

streets every week or arrest

them and treat them severely?

In all countries security is

the most important thing. Why

is it while we are in this

country we are not allowed to speak to any member of the public, not allowed to put

them on camera or speak the

people outside this

conference building?. If you

get the chance from you are

allowed to. But we both knew

that was not true. This

conference was a PR exercise

for Iran but in reality it

has done nothing to stop the push for sanctions in the

west. The only thing standing

between Iran and a new round

of sanctions is China with

its veto vote on the UN

Security Council. Part of

the region for China's

support can be found here.

This is the Grand Bazaar

which is said the make-up

around a quarter of all

business activity in Tehran.

You can buy a $200,000

Persian carpet here but

mostly it is cheap household

goods and textiles and all

made by Iran's only strong

friend in the world. This

is made in China?

Yes. All in China?

Yes. It is good? No good.

Very, very bad. China and

Iran have a very strong

relationship and it works

both ways. The people in Iran

need access to the cheap

Chinese goods because of the

state of the economy and

China is a very heavy investor in the Chinese

energy sector. It is a

relationship that works well internationally when Iran

needs help from a powerful

friend on things like sanctions but Iran is a very

proud nation and the idea of

being stow dependent on one

particular country is

something that really sticks

in the Iranian craw. On

sunny afternoons the people

of Tehran Flook to the city's

beautiful parks. In a city

where much of the social life

takes place behind closed

doors sometimes with black

market alcohol and forbidden

music this is where the

people can relax outside.

Young men cruise in groups in Western-style close t young

women push the strict dress

code by letting scarfs slide

back on their heads. You can

see people having BBQs,

picnics playing games, really

no different to any similar

kind of park in Australia you

might think but there are some very important

differences. For a start a

lot of women here would

dearly love to rip their

scarfs off. A lot of the

other people here might have

taken part in a protest or

known some one who has who

may be in prison or has even

been killed but you cannot

protests every day especially

when the authorities have

things locked down so tightly. Tonight, this

evening, they are just out

trying to have life. Ben

Knight reporting from Tehran.

Time now for John Clarke and

Brian Dawe with the week in

politics. Kevin Rudd thank

you for your time Very good

to be with you Brian . Now

you have to deal with the

health plan? Yes, a big week

an pleased. It was a success

Yes, there will be de trails

to iron out over time but we

are pleased. It was a big

meeting Huge this one and

can I say a tribute to

everybody involved. These are

very, very big issues, very

important issues and these

are tectonic shifts we are

masterminding here. In the

health system? Well yes,

Brian, by inference yes they

will have some effect on

health yes. What actually

happened? Can I say a lot of work was done in advance of

that meeting. But you had a lot of problems this week

didn't you? We did Brian,

yes. We had a lot of

problems, you saw the

eruption. Yes, footage

online That issite Do we

know what caused it? I have

heard various theories but we

had to deal with it on the

ground. Mount Brumby had gone

off. Yes spewing ash in to

the atmosphere. Mount Brumby

had been ruck bling for a

time. We had some

warning. Where is Mount

Brumby on the map ? Here.

This is Mount Brumby. Under

all the ash. This is the

satellite image, under that

murky crap there. When do you

think it might clear? We

don't know Brian. From it got

a hell of a lot worse on

Tuesday. Mount Barnett went

off? Could I have a worse

problem, could you get the

hurdles any higher. This is

going to cost a hell of a lot

of money. Where is Mount

Barnett? To the West, out

here. Further. How bad is it there? Terrible out there.

You could not see anything

out there. How is the

visibility? You know, not

bad for my age. Mount

Barnett? A person down there

could not see anything. I do

not think they can see

anything. I repeatedly pointed out they could not

see anything. Haven't they

got a GPS? Yes but they won't

give it back. We just want

30% back but they will not

part witness that is the

problem. Mr Rudd are you

getting reports? Yes we get

reports all the time. What do

you do with them? Put them

with the other reports, we

have a lot of reports. From

who? Colin? No we won't be

accepting that. Who is that?

A mate of mine called Colin.

God, you give them $5 billion

and they ring you collect. A

bit of a bloody cheek. I'm

not accepting. That bugger

him. He can wait. John

Clarke and Brian Dawe with a

bit of a visibility problem. That is the program for

tonight and the week. Don't

forget 'Stateline' tomorrow

and we will be back with 'The

7.30 Report' on Monday but for now goodnight. Closed captions by CSI

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