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Tonight - Papua New Governor-General declares his Tonight - Papua New Guinea

hand but the political deadlock

continues. A gunman kills four

then himself in a crowded

market in Belgium. An 18-month

jail sentence for the navy

officer who spanked a

sailor. Scientists get closer

to unlocking big secrets of the universe. People have been

waiting literally their entire

lives and careers for this so I

feel like I'm in a special

moment.

Good evening. Welcome to ABC News. I'm Virginia Haussegger.

Two Prime Ministers, two

separate governments, a Governor-General suspended and

a Speaker of Parliament

appointed in his place. That's

the state of politics in Papua

New Guinea tonight. The rival

trying to bolster their claims governments have spent the day

to legitimacy. Sir Michael Somare's ministry was at Government House while in

Parliament, MPs loyal to Peter

O'Neill passed legislation

enshrining him as Prime

Minister. The ABC's PNG correspondent Liam fox has been trying to follow developments

in Port Moresby. It has been another dramatic day in Port

Moresby. It began with the Governor-General swearing in 19

members of Sir Michael Somare's cabinet. Sir Michael himself

didn't take the oath of

office. No, he doesn't need to

be. The court has restored him

as at 2 August 2011, he was unlawfully removed and the court has restored him. But here at Parliament, Peter

O'Neill and his supporters are

still occupying government benches. They ordered the

Governor-General to appear in

Parliament and anoint Mr

O'Neill as the Prime Minister.

When he didn't appear, Mr

O'Neill announced his cabinet

had decided to suspend the Governor-General. We recommend the Parliament today, thank for

you. The Speaker says he becomes the acting Governor-General. It is unclear

what, if any, impact this

announcement will have as it is

likely the Somare camp will

ignore it. They can stay as

long as they like. We will make proper executive decisions,

advise the Speaker and constitution democracy will

prevail. Out on the streets,

many people are disappointed at the prospect of Sir Michael

returning to power. It is very

biased, the court, and I think

the people of the country don't

like it. If Sir Michael is

back, I am not happy with the

position. A long-time observer

says breaking the deadlock will

be difficult. Being in control

of government and the purse of

government gives you a huge

advantage. It is very hard for

either side to back down. Another political stalemate and there down. Another day into PNG's

is still no solution in sight. New figures suggest the

Reserve Bank fired a blank when

it cut deteriorates this month.

- interest rates this month.

Westpac says consumer confidence fell sharply despite

the rate relief. It is blaming

concerns abeaut Europe and the

global economy. The Treasurer

and Westpac agree. These lucky

shareholders still have a bank

in rude health but in rude health but Europe's

problems are never far from

their thoughts I am coming here

today to see what's going on in

the future. We have seen two

reductions of interest rates so

that is not reassuring. It was

a view highlighted by Westpac's Consumer Confidence Index which

fell sharply in December

despite a second straight cut

in interest rates. I think

people are cautious. They are Europe, they are very concerned seeing what's happening

about what that might mean. Westpac executives took the opportunity at their AGM to

highlight the banks' vulnerability to higher global

funding costs, signalling home

borrowers may not get the full

benefit of future interest rate

cuts. We are very mindful of

the impacts of interest rate

decisions on customers, but

what is economically these must be balanced with

responsible. Retiring chairman

Ted Evans, with one eye on the outcry before the last rate

cut, warned against governments must allow our meddling. Australian

institutions of strength, not

least the banking system, the

flexibility needed to adapt to

this changing world. Also out

and about was the RBA's retiring Deputy Governor who

says the global economy's fate rests on whether Europe's problems

problems are resolved through a credible plan or major

trauma. Some disruptive events

such as a change in the

composition of the Euro area

cannot be ruled out at this stage. He says Australia is

well placed to deal with most

outcomes helped by a dollar

that would fall to cushion

economic blows. He offered

another possible strategy for

the besieged Europeans. Move to

Julia Gillard's new-look Australia.

ministry has been sworn in with

one of its rising stars

confronted by a problem on day one. Industrial tensions are flaring again on the waterfront. Lockouts and

pickets are in place at two

ports in a stand-off over a pay dispute. The new Industrial Relations

Relations Minister Bill Shorten

had barely been sworn in when

he called for peace. Tonight

the Stevedoring company and maritime union agreed to get

back to the negotiating table. Here is Mark makeover can hit all sorts of

turbulence. I am even getting

us hit by your hair. I am turning

us both into Cousin It. These

are some of the faces Julia

Gillard's banking on to turn

around a very poor poll

position. It is my pleasure to present new ministers and new

port folio arrangements for the

third ministry of the Gillard

Government. One Minister is

leaving the cabinet, three are

joining it. I William Richard

Relations Minister is already Shorten. The new Industrial

facing his first challenge.

There is unrest on the water front. Stevedoring front. Stevedoring company

POAGS is locking out workers.

Its response to union work

bans. This dispute will get

worse before it gets better if

POAGS don't negotiate. The log

of claims lodged against us

would increase our costs

about $25 million a year and

clearly our company can't

afford that. In NSW, the

company used this helicopter to

get non-union workers across

the picket line. To use a B-grade stunt like choppers

coming in like some B-grood

Hollywood movie didn't impress

anyone. The Government is

calling for calm. Indefinite strikes by workers or lock-outs

by companies are at the less

desirable end of industrial

negotiation. I would be pleased

if parties with take a step

back and conciliate. Labor's

Fair Work Act will be reviewed

in the new year but IR won't be

the only sensitive issue the

Government has to deal with. Do

you like Kevin Rudd? He didn't

give a direct answer. Do you

like him? Kevin and I working well together. The

reason I am hesitating is

because I don't like the sort

of pop psychology of it all. No

cabinet that includes both

Julia Gillard and Kevin Rudd

can function effectively. As he likes

A military court martial has

described the actions of a navy officer who spanked a female

sailor as a gross abuse of

authority. The court martial sentenced 58-year-old Lieutenant Commander John Alan

Jones to 18 months imprisonment

with the prospect of release

after 12 months. Jones was told

he had been jailed because of

his high moral culpability and

the deleterious effect on the

victim. Jones has also had his

rank reduced, will be dismissed

from the navy and must pay a

fine of $2,000. Five people

have died and dozens have been

injured in a shooting and

grenade attack in Belgium. The

attack happened in the city of

Liege in the country's east.

The gunman reportedly shot

himself. Three of the victims

were children including a

1-year-old girl. There was no warning, suddenly a gunman

opened fire on crowds near the courthouse. Police say grenades

were thrown amidst the chaos, people ran for their lives. It

was terrible. I am a little bit

choked, still choked. I saw

just one man shooting people,

you know, and some explosion,

two or three, and all the

people running from there to

here and some people going to

the shopping centre. Police say

they already knew the gunman. The 33-year-old suspect had

served time in prison and had

been called in by police for an

interview over weapons and

drugs charges. Police say he

took his own life, his body lay

in the Square. What he left behind

of Christmas shoppers were

targeted in such a brutal and

in discriminate way. I saw all

the people lying down bleeding

between the glass. I stopped my

car, see if I could help some

people. Everybody, all the

people must go inside. And

there is still no certainty as

to why he unleashed such extreme extreme violence. TRANSLATION:

As for the motivation of the

perpetrator, he is well known

to the police and the law. He

was convicted. He is known for

weapons, for buying and selling

stolen goods, for drugs, for

behavioural issues but he is

not in any way known for

terrorist activity. The King

and Queen were quickly in the

city offering what comfort they

could, but they couldn't undo

the mayhem, the carnage or fear created in those few

moments. An ABC investigation has revealed more than 35

violent deaths are linked to

men who went to the same

notorious boys' home in NSW.

The Tamworth Institution for

Boys operated between 1947 and 1989. It was known as Endeavour

House in the later years. Its a

lum nigh included Arthur Neddy

Smith, James Finch who killed

15 people in the firebombing of

Whisky Aug-go-go. Former staff boys

boys were regularly starved, tortured and degraded. The

attitude kill or be killed.

Everyone come out the same.

That's why there is so many

bloody murders. The full story

can be seen on '7:30' tonight.

in the ACT has been a hot topic

but across the border a great

problem has been revealed. A

new report says 140 children

who died in NSW last year who died in NSW last year were

known to the Department of

Community Services. But the

Minister, Pru Goward, says continual improvement in protection is needed, not crisis management. The figures

are sobering, presented to a seminar in Sydney today, the

report shows 139 deaths last

year were the subject of a report

report to the community

services or in care at the

time. Unfortunately no

government can stop the death

of every child or young person.

But Governments certainly have

a responsibility to reform, to improve services, to

continually improve and seek to

lower the risks. For 66 of the

children who died, there had

been a report of abuse or neglect. 4% died in suspicious circumstances.

circumstances. While illness or

disease accounts for most delt

deaths, the second biggest

factor is premature births.

Several of those were linked to

the mother being assaulted during

during pretcy or engaging in substance substance abuse. The seminar

heard in many instances case

workers don't know that a

stepfather has moved into a

household. One of the key

messages from community

services review work over the

past year has been the critical

importance of including any new

household member or partner of

a parent in the risk

assessment. A visiting expert

said attempts in Britain to

meet public expectations of protecting all children had

actually been a

hindrance. Trying to achieve an unachievable goal has been part of what's twisted the system

away from the true focus on children. What Community

Services has to become is organisation of continuous improvement where it looks critically at itself, isn't

afraid of its mistakes, fesses

up to them and gets on with change. The Minister says

transparency is the only way

that will happen. The Liberal-led Governments

in NSW and Victoria have a warning shot at the Federal

Government. They have signed a joint

joint venture to boost economic

growth and do more business.

The two States insist they are

not competing the Council of Australian Governments but they

did highlight major problems

with COAG. Brigid Glanville reports. Putting aside

interstate rivalries, the two

Premiers are on the same

page. What we are announcing

today is an interstate reform partnership between NSW and

Victoria, to progress the goal of

of growing the economy, to

progress the goal of making it easier to do business between

the two States. The memorandum

number of areas including

reform in energy efficiency

schemes, apprenticeships and

tax changes. The Premiers say

this is not designed to replace

COAG but they do admit the current arrangement does have

limitations. If we look at the

health reform agreement,

don't always get the best

results out of COAG. Both

Premiers say the partnership is

not an exclusive arrangement.

They welcome ideas from the private sector and are

encouraging Premiers from other

States to join their pact. But

not everyone is on board. WA's

Premier says he will stick with

COAG and the Labor States don't want

want it. What we have heard

today with Victoria and NSW announcement is essentially the

establishment of an Eastern

States club, putting their

interests ahead of everyone

else's interests. I can

understand why NSW and Victoria

are worried and teaming up to

try and get a

action but I am very confident

that what's happening here in,

in WA, not only drive the

national economy but make us

the two growth states of the

country. NSW and Victoria say

they represent more than 50% of

the population and speeding up reform will benefit everyone.

Troubled actor Matthew Newton will face court next month for

allegedly assaulting a Sydney

taxi driver. Police allege Newton Newton punched the 66-year-old

in the head at Crows Nest last

month. The administrators

called in to salvage Fletcher

Jones have announced plans to

shut 15 stores around Australia

and lay off dozens of staff.

The 93-year-old company went

into voluntary administration

last week. Now the

administrators say they will

close stores based on their trading performance trading performance and make 61 staff redundant to prepare the

business for sale. Two business for sale. Two stores in Canberra will also in Canberra will also be closed. The decision wasn't

taken easy. These stores have

been closed down on a review of trading over a significant

period and it was essential

that we took this decision in

order to have an attractive

trading network which is attractive to buyers out

there. The company's remaining

stores will continue to trade

as normal. To finance now and

the local share market closed

flat today with small declines

on most global markets. The

Australian dollar dipped below

parity but is holding just

above. The Deputy Governor of

the Reserve Bank Ric Battelino

made a speech today about

Australia's exposure to the

problems in Europe. He said

there will be a spillover

effect on the economy but this

table in the speech was reassuring.

our banks is $87 billion in

loans to Europe, 2.7% of their

assets but almost all is with France, Germany and the Netherlands, not the PIGS,

which is just as well because

this chart shows what's

happened to the market values

of loans to Greece. They have

fallen. The effect is shown by

this chart. The Euro versus the Australian dollar since the

start of the crisis in 2007.

When the big crunch hit in

2008, the Euro soared to be

worth more than two Aussie dollars

dollars but since then it has

been a slippery slide all the

way, so that European holidays

are now all the rage for

Aussies. Not much happened on

the markets today. Local shares

were flat. ANZ was the only

standout. In Europe, markets

continued to weaken as the

feeling grew that summits notwithstanding, there are no easy answers there. That infected Wall Street and Asia

where markets drifted lower as

well. The crude oil price

dropped but others were weaker.

The Australian dollar is

sitting just above parity

having fallen to 99.8 at breakfast time and lunchtime.

Finally, a chart showing the

effect on rents of the housing

shortage. There is demand for

about 250,000 more houses each

year than are being built. In

the past two years, rents have

risen much faster than the CPI

as a result. That's finance.

Police have warned Australia's

top sporting codes they're a

growing target for organised

crime. They say the explosion

of sports betting has exposed

them to corruption and them to corruption and they

need to look to their need to look to their defences.

Law enforcement agencies and

more than a dozen sporting

bodies came together at a

conference in Melbourne today.

Its sponsorship, advertising,

it's everywhere. As the

relationship between sport and

gambling grows closer, a threat of corruption. Certainly prominent

overseas and that's why we are

trying to get on top of the

threat early and rather than

being responsive. At a conference, representatives

from 13 codes joined police,

the Crime Commission and international experts. Authorities warned the sporting

bodies to be more aware of the

risks. Improve self-regulation

is the best defence. We have

seen good examples in Australia from agencies like the

AFL. Aussie rules has had its

share of controversies with

exotic betting opening the game

up to abuse. Cricket is also

high risk. Just last month,

three Pakistani cricketers and

an agent were jailed over a betting scandal. Cricket

Australia says its players and

officials subscribe to a code

of conduct and are monitored

closely. Cricket Australia we

believe cricket is clean within

our country and we are putting

in proactive sure it is maintained. But gambling researcher Dr Charles

Livingstone says it is naive to

suggest corruption hasn't

already got a foot hold in

Australian sport. If they think

by getting close association with gambling organisations,

they will get help in the future, they are deluded. The

global superstars are mobbed

everywhere they go in their own

country but it was low key when

the Indian cricket team began

its Australian tour with a

practice in session. The

Indians, will play in the

Chairmans XI tomorrow. They will

will play in Canberra again

next week as they prepare for

the First Test on Boxing

Day. Over a billion people know

his name, today at Manuka Oval,

the Little Master went straight to the nets for practice ahead of the Australian

Australian summer. The Indians

know a good result in the

Canberra match could set them

up for the tour. You don't want

to lag too much behind from the

very start. I think going with a good start is crucial. The

Indian captain is wary of

underrating the Australian side despite their recent

New Zealand. To see the

youngsters and think it can be

Glenn McGrath or Shane Warne in

the making because they made

their debut and everyone needs to start from scratch. The

Chairmans XI players are hoping

they too could be on the they too could be on the road

to something special. If we can

put on a good display with a

bat, make sure they are toiling

in the hot sun, that can

in the hot sun, that can only

benefit the Test team in a

couple of weeks. Others are

hoping to throw themselves into

the Test spotlight. Any time we

are on the pitch as professional

professional cricketers, we

have the opportunity to perform and potentially impress selectors. The Australian

cricket team announced today

those already in the spotlight

will take part in an intensive

batting camp ahead of the

Boxing Day Test. There are guys

playing in the Chairmans XI and

there are four guys there that are in

are in the mix and then there is another group of

will be involved going down do

Melbourne. It caught the

players off-guard. That's news

to me. That's great. You haven't

haven't heard? No. When does

that start? The Australian top

order are clearly an unsettled

group, while at Manuka Oval,

Tendulkar at least looked

totally at ease. The world's

best golfer had his first round

at Victoria golf club today

ahead of the Australian Masters

which starts tomorrow. Bun like

two years ago when thousands

lined the fairways to see Tiger

Woods practice, only a few dozen fans bothered to watch

the current world No.1. Fans

weren't exactly craning to get

a look at if world's best

golfers yet Luke Donald has won

$13 million in prize money

alone in 2011. He is the first

player to win the US and European money lists European money lists in the

same season and just been named

the US tour's player of the

year. It is not easy playing

both tours and travelling as

much as I have done but

certainly it is worthwhile when

you can come out and win both

money lists and see the

accomplishments and certainly

it has been a great year for me. This afternoon, the fine

arts graduate and budding course architect got his virs

look at Victoria. It is great,

really good. Love it. I would

love to get further into golf

architecture, I think this is a

great place to start looking at

some of the best courses in the

world. I am excited to be

schedule, Donald says he is not

fatigued and expects a strong showing this week. Another

Englishman would like to win

the gold jacket for the gold jacket for different reasons. It would go fantastic

in my closet. The flam boipt

Ian Poulter is Ian Poulter is planning his

Sunday best. Not sure if it

will clash with the tartans. I

Friday and Saturday. Stuart might have to wear them on

Appleby remains in doubt with a

back injury to defend his gold

jacket. But book makers say

Luke Donald is the one to

watch.

It is the biggest question in

physics - how did the universe

laboratory in Switzerland say begin? Scientists at a

they may be close to an answer.

They believe they have found evidence of an subatomic particle, called the

Higgs boson or God's Particle. In a laboratory near

Geneva, the largest experiment

is honing in on one of the greatest mysteries of the

universe. Firing particles

through a tunnel, scientists

are closer to understanding the basic building blocks of matter by causing collisions that

reveal what's inside. This afternoon, a long-awaited announcement. We are here today

to hear the latest research on

the search. Some of the light

bright egs minds in physics gathered in one room, comparing

findings of experiments that

point to the existence of a particle hidden until now. We

still need many more collisions

next year in order to get a

Shakespeare question question definite answer on the

on the Higgs - to be or not to

be. First there is the with electrons orbiting around.

That's been known about for

more than a century. Inside the

nucleus, are protons and

neutrons. They are small.

Inside them are other mie nut particles. What gives them substance or mass? The theory is the smallest particles

travel through a force called

the Higgs field and get slowed

down by it. This is how the

Higgs boson works. You can't

see it but you can see how it gives particles substance. The

creation of matter. That's why

these first hints are so

momentous. The results are

being studied by physicists all

over the world. Here at

imperial college in London, the

students watch the events

unfold. It has not given us a

definitive answer, that may

come next year, but these

detectives have revealed vital

clues about how the universe

got started. Mark Carmody is

thrilled to hear that story. Here he is with the weather. Certainly will be the

pillow talk tonight, but thanks

Virginia and good evening. It

wasn't the sunniest or warmest

day but it was pleasant working

outside as it was partly cloudy

temperature was 21 across the with sunny breaks. The top

Territory. I never thought I

would say it - it didn't rain

and shouldn't tonight although there were showers late afternoon. A rain-free afternoon. A rain-free evening

will please a crowd at

Commonwealth Park belting out Christmas carols.

There is a band of cloud

moving through the centre,

hence Alice's wet day. It will

continue this way while down

the Eastern seaboard it is

mostly clear. A trough is

developing over Queensland and

a high in the Bight will feed

moist winds into it resulting

in rain down there but in the

South East the high will keep

State capitals tomorrow: it mostly rain-free. In the

for Virginia, rain's not so good

for doing the clothes washing

but flowers like this Gardenia love plenty of moisture. Thanks

Mark. The rain is not so good

for outdoor parties either.

Never minds. That's the news

for now. Stay with us for '7:30' with Chris Uhlmann and

we will leave you with a trio

of dare devils flying high over

Sydney. From me for now, goodnight. Closed Captions by CSI This Program is Captioned

Live. Welcome to 7:30, I'm

Chris Uhlmann. Tonight -

Australia's school for killers.

The finishing school for some

of the country's most notorious criminalings. Tamworth boys

home was known as the toughest

institution in the whole of

Australia. Kill or be killed,

everyone came out there

same. And one year on, the

legacy of the Christmas Island tragedy that shocked the

nation. A lot of people on the island who say Christmas Island lost its island who say that day

innocence.

TRANSLATION: However much you

want to live in another country

it's not worth it to lose

somebody. The first test for Australia's new workplace

Minister arrived before he was

sworn into the job. Bill Shorten spent today working the phones to try to solve an phones

industrial brawl on the wharves