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Live. Water torture continues

for thousands across two

states. Some records may be

broken as far back as 1886 for

heavy falls over a prolonged

period. Syria claims rebels

have fled a key stronghold.

Those left behind collect water

from snow. And land ho at last

for passengers on a nightmare

cruise. Everything was off - no

light, no airconditioning,

nothing. No toilet. I mean,

that was horrible, a bedlam

situation. Hello and welcome to

ABC News across Australia. I'm

Ros Childs. The local share

market is around half a percent

higher, getting a lift from

some better economic news out

of the States:

More finance and Alan Kohler

later in the bulletin. First to

northern New South Wales where

there has been a double

shooting. It happened in

Tamworth and a policeman in

dead. Police say the highway

patrol officer was shot several

times outside a block of flats

at Coledale in Tamworth this

morning. The 41-year-old died

soon after. A second man was

also shot, he is under police

guard, undergoing emergency

treatment. Police launched a

search for another man who was

seen leaving the area

immediately after the incident.

He was arrested a short time

later. He was taken to Tamworth

Police Station. A critical

incident investigation team has

been form ed, with the Homicide

Squad and the West region

detectives to examine the

circumstances surrounding the

shooting. Heavy rain is

continuing to fall across large

parts of south-east Australia.

Nearly 1700 people have been

evacuated across New South

Wales and parts of north-east

Victoria have received their

monthly average rainfall in

just one day. In Victoria,

homes have been flooded around

Yarrawonga, Tallygaroopna,

Numurkah and Shepparton. Flood

warnings are current for the

Murray River upsteam of Lake

Hume and the Mitta Mitta River.

Rainfall of up to 100mm are

forecast for the weekend. Dan

my Morgan has the latest from

Congupna just north of

Shepparton While there has been

very little rain here in the

Goulburn Valley over the past

24 hours, there is still plenty

of water around. The water did

rise slightly overnight here.

There are about half a dozen

homes here that have water

through them and many around

the town have water around. The

one I'm standing in front of

now, the owners say they're

within an inch or so of water

coming into the house. They are

working hard to sandbag, as are

many people throughout the

region. In a town north of

here, Tallygaroopna, pretty

much the same, towns further

north newing Numurkah. Further

east in Yarrawonga, floodwaters

presenting problems there and

across the north-east, many

roads have been blocked. One of

them, Mount Buffalo Road, a

landslip put quite large

boulder as cross the road and a

group of about 30 people spent

the night up on Mount Buffalo

unable to get through those

boulders,. I think recently

they have been rescued but it

is a sign that these waters are

causing many problems around

the region. More to come. More

rain forecast for tomorrow.

Perhaps up to 50mm here in the

Goulburn Valley, even more on

the ranges, up to 100mm. There

is a lot of work going on

sandbagging homes to prepare

for more rainfall tomorrow. Now

to New South Wales and

evacuation orders are still in

place for four towns - Cooma,

Bega, ghoul Bourne and Cowra.

There is also concern about

flooding at Bathurst and Kanaan

dra in the State's central

West. Here is Deputy

Commissioner Dieter Gescke.

Dieter, it looks like this

event still has some way to go.

What areas are you most worried

about? You just mentioned

Bathurst and that's an area of

great concern for us at the

moment. We understand that the

Great Western Highway just east

of Bathurst will probably close

around about 1 o'clock today

and we have already asked

schoolchildren who don't live

in the town to return to homes

so that they can actually get

home for the weekend and not be

stuck inside Bathurst. That's

the advice for people who are

under the threat of floods -

stay home in case the worst

happens? Pretty much. At this

stage most people know that

they're going to be liable for

flooding. They know the areas

that they live in. This is a

huge area of New South Wales

that we have warnings under at the moment. Other areas of

concern, of course, are for us

in the Hawkesbury-Nepean area

where war GAM da Dam is likely

to - Warragamba Dam is likely

to start controlled releases in

about 24 hours. We've made

great plans in terms of warning

people. Have you had to deal

with many rescues? Yes, there

have been unfortunately a

number of rescues. Again the

total for this event is over 35

and last night around about 22.

A lot of those were the result

of rapidly rising creeks and it

is a real problem for us when people underestimate just how

much rain is going to fall in

their area and then the water

rapidly rises and they get

stuck in their houses. Our volunteer rescue technicians

have been doing a great job and

have saved a lot of person. One

person we had grave concerns

for in the Tumut area was a

trout farmer and we were very

happy to find him safe and well

this morning. Dieter, can you

give us the scale of this

operation, how does this event

compare with previous events you've had to deal with New

South Wales SES? It is a very

big veept. It's always odious

convenients because they have to make comparison s between

their own personalities, so to

speak. This event is hard on

the heels of major flooding in

the south-west, still downing

into the Darling River and huge

areas under threat. Estimates

place about 75% of the

State. Dieter Gescke, thank

you. You're welcome. As Dieter

mentioned, local residents and

the SES are standing by for the

moment when Sydney's Warragamba

Dam overflows for the first

time in 14 years. Reporter

Jason Om is in Richmond on the

Banks of the Hawkesbury River

downstream from the dam Dz

Ros, the latest news on Warragamba Dam is it's about

97% full. Exactly when it will

overflow is uncertain because

the timing has been pushed

back. It is expected to

overflow either later today or

at some stage tomorrow and it

rally depends on how much rain

falls over the next 24

hours. You're in Richmond, one

of the places that will be directly affected by what

happens at the dam. What precautions are people taking

there? Yes, well, I'm down by

the Hawkesbury River and the

Richmond Bridge is just behind

me. The river is getting quite

swollen. We've soon a lot of

debris come downstream and a

lot of the residents are taking

precautions. They are being

told either to change their

travel plans or reconsider

going to school or to work, and

a lot of those residents have

been heeding those warnings. So

if people are nervously

watching the level of the

river, here is what a few had

to say a little earlier. I

don't want to take the risk of going over the bridge

going over the bridge this

morning hence the reason I

might not be able to get back.

I've had the day off. Rumours

have it that it could affect us

three or four days which means

- I'm in the Reserve which

means I won't be able to do

Reserve work tomorrow for the

air force and he won't be able

to go to school. The shops

will empty out pretty

quick. REPORTER: What do you

think a lot of people will be planning for

planning for this weekend

Watching the flood. It's the

unknown, you can't predict

anything, just watch and

wait. Some residents of

Richmond there. Jason, what happens when the dam reaches

full capacity. What process

kicks?? Well, once the water reaches a certain trigger

point, the flood gates automatically open and that

water spills over the spillway,

goes down the Nepean River and flows out to

flows out to sea eventually. I

should know that that flow is a

controlled release, it's not as

if it will be gushing

uncontrollably. That will be

controlled going downstream

without that much strength, but

it will - it is expected to

cause certain flooding in certain areas

downstream. Thanks, Jason Pleasure. Staying with

the big wet, the Todd River is flowing

flowing in Alice Springs for

the first time this year. The

rain is expected to ease today

as a trough of low pressure

moves to the east. The stew relevant Highway has re-opened

after flooding closed the road

120km north of Alice Springs

last night. 250mm of rain has

fallen in some areas in the

past week. Indonesian officials

will reveal today whether an

Australian man allegedly caught

smuggling amphetamines into Bali

Bali could face the death

penalty. Bali police say a

54-year-old Victorian man named

as Edward Norman Myatt arouse

ed suspicion and was detained

at the airport on Monday.

Medical examination allegedly

revealed dozens of capsules containing amphetamines in his

stomach. Importing more than a

kilogram of amphetamines can be

punished with the death penalty. More than

penalty. More than a thousand

passengers and crew have

reached dry land after spending

more than three days on a

stricken cruise ship. The

'Costa Allegra' had to be towed

to the Seychelles after a fire

crippled its engine. People say

the luxury liner became more

like a refugee camp with no

working toilets and the cabins

dark, and uninhabitable. Philip

Williams reports. The cruise of a lifetime

a lifetime - that was the expectation and it will be

remembered forever, but for all

the wrong reasons. At last dry

lands and the comforts of a

hotel ahead, that after days

with no power, backed-up

toilets and cold food There was

no power at all, which means no airconditioning anywhere, no

hot food, the loos backed up,

so they were just blocked and

filling up and smelling more

and more. There was no light.

and more. There was no light.

Those that are cap bins with a

porthole weren't so bad. The

others, it was just pitch dark

everywhere. People slept on the

open deck. With no

airconditioning, the cabins

below were too hot to sleep in.

Despite the zis comfort, some

passengers were stoic about the

experience? We thought oh, no,

not again, physical of all. But

they had the fire under control

fairly quickly and from then on it was

it was an inconvenience rather

than a panic and an emergency. After disembarking,

some took up the offer from

Costa Cruises for a flight home

to Europe. Others opted for a holiday in the Seychelles on

the company T has been an

uncomfortable and at times

frightening journey, but at

least no-one suffered injury or

worse. I think the passengers

will feel a sense of relief for

being able to come ashore, go

being able to come ashore, go

to a hotel, have a shower,

relax, have something hot to

the eat and basically get over

this ordeal. Passengers praised

the actions of captain and

crew, that in stark contrast to

the sister ship 'Costa

Concordia''s disaster. That

ship's captain, Francesco

Schettino faces a pre-trial

hearing in Italy this Saturday.

hearing in Italy this Saturday. Administrators for the only

company licensed to sell anzac

biscuits say its future looks

bright. Unibic was put into administration earlier this

week, owing millions of dollars

to employees and other

creditors. Workers at the Broadmeadows plant in

Melbourne's north have been

sent home on full pla.

Administrators say a new buyer has already been

found. Definitely has a future, yes, it's

yes, it's our intention that

the new business will take over

next week and commence

operations and that will be

also offering full employment

to all of the existing

employees. Proceeds from the

sale of anzac biscuits help

fund RSL clubs around

Australia. In Tasmania,

Burnie's historic pulp and

paper mill site has just been

put up for sale. The move comes

as artists attempt

as artists attempt to

immortalise the former

industrial hub which has sat empty for almost two

years. Known to locals as The

Pulp, this paper mill has

always loomed large over

Burnie. It opened in the late

1930s and at its peak employed

more than 3,000 people. In the

early '90s, there were picket

lines, six weeks of strikes and

400 workers confronting police.

Now the empty

Now the empty asbestos-filled

site is abandoned. Parts of it

have already been pulled down,

but some memories are being

preserved. Two artists have

been scouring the site before

it's demolished. Cast around

the pipe. Oh, yeah. They have

been creating art out of what

work is left behind Remnants of

activity, sheets of paper kind

of lying around. Ear plugs left in

in the corners and traces of

people, really. It's culminated

in an exhibition which captures

some of the mill's rich

history. Drawings map the

shrinking workforce and

operations. The amount of paper

being produced over the years,

the amount of people employed.

The life of the East mill, the

West mill, the lives of the

various paper machines when

they came on, when they came

off. Miniature water colours depict

depict the 1992 industrial

dispute. Richard was heavily

involved in the action. He

worked at the mill in 30 years

in the room where the artists

collected much of their

material. A pipe would burst

and of course everything was

under pressure, so,... away it goes. We're interrupts that

report to go straight to Canberra where the Prime

Minister is announcing her new

ministerial line-up. Strongest possible team to do

possible team to do what the

nation needs to make us the

nation we want to be in the

future - a stronger and fairer

country. First, Bob Carr will

join the Senate and will take

on the role of Minister of

Foreign Affairs until he is

able to be sworn in, in the

Senate, Craig Emerson will

continue to act as Minister for

Foreign Affairs. Dr Emerson

will take on an expanded role as Minister for Trade

as Minister for Trade and

competitiveness. I want Dr

Emerson to play a role, making

sure that our nation seizes all

of the opportunities it can

from the spectacular growth in

our region in what I have

dubbed the Asian Century.

Brendan O'Connor will move into

Cabinet and take the position

of Minister for Small Business,

as well as Minister for housing

and homelessness. Small businesses are

businesses are absolutely central to the Australian

economy. It is the aspiration

of many working people to

create their own small business

and for that to be their

future, and I believe that

small business should be

represented at the Cabinet table. Attorney-General Nicola

Roxon will take the additional

portfolio of emergency

management which I have made

clear should be a Cabinet-level appointment. Tony Burke will take

take on the additional role of

Vice President of the Executive

Council. For ministerial

changes I have determined to

make the following appointments. Kate Lundy is

being promoted to the ministry

as Minister for Sport and

Ministerster for multicultural

affairs as well as Minister

assisting for industry and

innovation. David Bradbury is

being promoted to the ministry

as Assistant Treasurer, and in

as Assistant Treasurer, and in

the newly created position of

Minister assisting for

deregulation, that is working

with Senator Penny Wong on that

very important seamless economy

work. Jason Claire will take on

the additional portfolio of

Minister for Defence materiel.

Kim Carr will more to portfolio of

of human services. Minister

Greg Combet will continue to be

responsible for manufacturing

at the Cabinet table. I want to

thank Robert McClelland for his

many years of service in the ministry. Robert will be taking

up a position as a backbencher.

I'm now also announcing changes

to the parliamentary secretary

ranks. Jan McLucas will, in

addition to her current

responsibilities, become my Parliamentary

Parliamentary Secretary,

Parliamentary Secretary to the

Prime Minister. Richard Marles

will assume wider responsibilities, working with

Bob Carr. His title will be parliamentary secretary for

Foreign Affairs, as well as his current responsibilities.

Bernie Ripple will become a Parliamentary Secretary. He

will work to the Treasurer.

Sharon Bird will also become a

Parliamentary Secretary and she will play a

will play a role, working with

Chris Evans in higher education

and skills. Jacinta Collins

will become manager of

Government business in the

Senate, Mohling Mark Arbib's

retirement, including from that

role. I want to thank all of the ministers who have served

the Government so well in their

portfolios and capacities. I

will be delighted to recommend

this new ministry to the

this new ministry to the

Governor-General on Monday 5th

March. I will now hand over to

Bob Carr who will say a few

words and then we will be happy

to take your questions. One of

my proudest days was the day

after the open Opening Ceremony

of the Olympic Games around the

Opera House and around

Bennelong Point. Australians

were gathered and in that

beautiful spring weather they

were full of pride of what

were full of pride of what

their country had done the

night before and at what laid

in prospect. They were full of

pride in a country that is

sweet, happy, brave. I was

offered the opportunity of

signing on for more public

service and I couldn't say no.

You don't choose the moment.

Very often the moment chooses

you. I did not expect the head of Government of Government that put on the

most praised Olympics of the

modern era, but when the moment

came, I had to speak up for

that project in many of its

venues, tried to define what

Australia stood for as this new

millennium opened up. Today I

think of Australia with its

legend tri-economic success,

with its social

progressiveness, with its

openness to the world and of openness to the world and of

course as a public servant

habituated to public service I

said yes. I want to praise the

achievements of Kevin Rudd in

foreign policy. The

establishment and consolidation

of Australia's membership at

the G20, his G20 advocacy was

outstanding. The single

regional institution for Asia,

the US membership of the East

Asia summit, the leadership on Libya

Libya and Somalia, Australia

becoming under his leadership

the 7th largest aid donor in

the world, and I admire the way

Kevin Rudd saw a window of

opportunity in Burma. Of I want

to build on these and I want to

seek his advice and his views.

When the Prime Minister asked

me, I said, "I'm enlisted. It is an honour

is an honour to serve. I look

forward to talking to you about

some foreign policy challenges.

The Security Council question,

Australia's member at the Security Council and what I

see, if you're interested, as

some of the major agenda items

in Australian foreign policy.

Thank you. Thank you very

much. I've promised Bob that I

will keep you our happy

dysfunctional family in some

sort of order, so I will. sort of order, so I will. We

will go Phil Hudson, Phil

course ri and Latika andal take

another tranche of questions.

REPORTER: Prime Minister, could

you please outline exactly what

happened this week because both

of you said no offer was made

and yet Mr Bob Carr is standing

here as Foreign Minister. Could

you explain what happened, why

we were told there was no offer

and why he is now here? Well, he

he is now here because I made

an offer to Bob Carr yesterday

to serve as my Foreign

Minister. I made that offer

having had a range of

discussions during the week

including speaking to Bob Carr. I made that offer because I

thought he should be a member

of the strongest possible team

to deliver the Government's

agenda and I was delighted when

he accepted my offer yesterday.

Phil? REPORTER: In extension to

that, is it accurate to say

that there was initial discussion discussion about Mr Carr

earlier in the week and then

that came to nothing and then

it was renewed again

yesterday? Phil, I am not going

to go through the many

conversations I've had this

week in putting together a

reshuffle. Of course you would

have many conversations at a conversation, indeed, more than

one conversation with Bob. I

finalised my thinking yesterday

on the shape of the reshuffle.

I spoke to Bob yesterday and made him an offer and I am

delighted he accepted it. Latika? Prime Minister Julia

Gillard there answering

questions about the surprise

appoint ment of Bob Carr,

former Premier of New South

Wales, who is now her new

Minister of Foreign Affairs,

getting Kevin Rudd's old

job. Stand by for another round

of will they, or won't they -

next dus the Reserve Bank meets

to consider cutting interest

rates. To the surprise of economists

economists they were left on

hold last month, so what's in

store this time around. Alan

Kohler is the host of 'Inside

Business' They won't cut rates

again and this time it won't

surprise economists. The

overwhelming consensus is that

rates will stay on hold next

week on 4.25% because the news

has been relatively good out of

Europe, no problem with

inflation here that they need

to think about, no real problem with the

with the economy here, so I

think that the consensus is

almost certainly right that the

rates here will stay on hold.

4.25%, but it will be

interesting to see what the

banks do. As we know, the banks

have disconnected with the

Reserve Bank now, they're not

following them and it's not

clear whether there might be

another little bit of a rate

rise by the banks notwithstanding that the

Reserve Bank doesn't Reserve Bank doesn't

move. Let's look back at one of

the big corporate stories then

of this week, that's the one

that James Murdoch stepped down

as Executive chairman of News

International, he is off to the

States to look after TV operations. This leaves open

now the question of who will

take over the reins of News

Corporation? Well, look, the

company is trying to present it

as being basically what they

said would happen, that James

would eventually move to New

York and become deputy CEO or

something. Look, to be honest,

this really is a disruption of

the succession plan at News

Corp. The whole idea was that

James would eventually take

over from his father, even

though he is a bit young, but

really he has now lost so much

scandals that credibility as a result of the

scandals that have been going

on in the UK, that he is -

there is no way he is going to

take over the company. In fact,

all the signals are that the

job he has got in New York is a

non-job. He is just kind of not

really in any position of

power, and probably won't be

able to be rehabilitated. So,

you know, with Rupert kind of

turning 81 and really turning 81 and really getting

on now, it looks like the

Murdochs will not be continuing

to control as a family control

the company after Rupert goes.

Very interesting. Finally,

Alan, what do we have to look

forward to on 'Inside Business'

this Sunday? Well, our

interview is with the new CEO

of Woolworths Grant O'Brien and

we've got lots of discussion

with our panel on that and

thank you Thank you. Let's other issues. Alan Kohler,

thank you Thank you. Let's take

a check of the markets with Sue

Lannin. Sue, a positive end to

the week? Yes, Ros, good

economic data from the US and a delayed reaction to the

European Central Bank pumping

half a trillion euros into

European banks, so investors

are happier today after a good

night on overseas market. The

local market up about a third

of a percent. Eased back a

Ordinaries little this morning. The All

Ordinaries is at 4360 and the

ASX200 up, too, at 4269. And

resources stocks have done well today? That's because there has

been higher commodity prices.

We saw gold rise overnight,

also oil increased on supply

concerns and good data I

mentioned from the US. We're

seeing glold explorer Castle

after Minerals surged nearly 40%

after another miner increased

its stake. Rio Tinto says it

has approval to build a new

rail network to the Hope Downs

4 iron ore mine. And bairpt

BHP Billiton is higher today,

too. How about the other

sectors The big banks have

ANZ still up. pulled back from earlier gains.

ANZ still up. The National

Australia Bank has lost ground

on an investment downgrade by a

big stockbroker. We're also

seeing the health sector doing

well. Of course, people always

need health care. Son nick

health care up 2%. Let's take a

check of the other big movers

in the ASX top 100:

Thank you, Sue. To a rise on

Wall Street. Traders welcomed

that second big cash injection

into the European banking

system, while American dole

claims held at a 4-year low:

Let's have Let's have a quick look at

other stories making news

around the world., Hong Kong's

chief executive Donald Young

has apologised for accepting

favours from friendly tie

cons. And Jennettic research favours from friendly tie

has revealed more information

about the so-called ice man,

the 5,300 frozen corpse found

in the alps more than 20 years

ago. Scientists believe he

probably had brown eyes and was

lactose intolerant. He also had

more in common with the people

of Corsica and Sardinia than

the area where he was found. A the area where he was found. A

slow moving trough, low cloud

pushing over Tasmania in the

wake of a low and cloud over

the Nullarbor is forming ahead

of an upper-level trough. A

slow-moving low pressure trough

should continue to generate

heavy rain in New South Wales, Victoria, South Australia and

the Northern Territory. A

trough off the Queensland coast

should trigger isolated showers

in the east, a high should keep

much of WA mostly dry. A low should bring showers should bring showers and rain

to Tasmania. And around the

capitals:

Let's go back to the Stock

Exchange for a final check of

the markets and as Sue Lannin

was saying, it's pretty upbeat

out there:

And that's the news for now

on a day when Julia Gillard said former New South Wales

Premier Bob Carr would be her

new Foreign Affairs Minister

after all. And apologies we had

to drop the latest report about

Syria because of the Prime

Minister's news conference.

There is continuous news on ABC

News 24 and there is also news

online. Our next full bulletin

on ABC1 is at 7 o'clock this

evening. I'm Ros Childs. Have a

great afternoon and a lovely

weekend. I will see you on

Monday.

Closed Captions by CSI.

to substitute the rule of the mob What we've got is an attempt for the rule of law. Come on! No way! Listen... No way! is reminiscent of a police state. The intimidation and the brutality over rule of the mob. The rule of law must prevail

Out, out, out! Maggie, Maggie, Maggie!