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(generated from captions) This Program Is Captioned Live. Today, retaliation Live. Today, retaliation in Afghanistan likely. More photos

of US troops posing with the

remains of Taliban It's terrible behaviour. remains of Taliban fighters.

It's terrible behaviour. It doesn't reflect the values and the virtues of the International Security Assistance Force. The Prime Minister steps up pressure Minister steps up pressure on

the Reserve Bank for an

interest rate cut next

month. Hundreds of calls for

help in Sydney and NSW as the

rain keeps coming down. And

shelling continues in Syria despite the presence of despite the presence of UN

ceasefire monitors. Good

morning.

News 24. I'm Joe O'Brien.

Taking a quick look at the

markets now, health care energy stocks continue markets now, health care and energy stocks continue to lead the market higher.

New photos have been published that show American soldiers posing with the bodies

and in some cases body parts of unidentified bombers. The LA Times printed unidentified Afghan suicide

the pictures, the US Defence

Secretary Leon Panetta has

apologised and warned the

images could trigger attacks

against foreign soldiers in

Afghanistan. The US military's

promising a full investigation

and a warning this report from

north America correspondent

Craig McMurtrie contains some

of those images. They were

taken in 2010, a US soldier

poses with the hand of a poses with the hand of a dead

insurgent on his shoulder. In

another, a US serviceman and

Afghan police pose with the remains of a suicide bomber.

This is not who we are and certainly not who we

represent. 18 images were

given to the LA Times by a

soldier from the 82nd Airborne

who was concerned about a breakdown in discipline. It's

the latest in a series of

highly damaging incidents for

the US military following video

of marines urinating on dead

Taliban fighters, the

accidental burning of copies of

the Koran and a US soldier

accused of a shooting rampage

last month where 17 civilians

died. The Pentagon has another

investigation on its hands.

Wherever those facts lead, we

will take the appropriate action. The White House calls the conduct reprehensible, Coalition allies have also been

quick to condemn the It is a setback and quick to condemn the images.

It is a setback and it's regrettable but it's also

contemptible and deserving of the condemnation it's got. The

Pentagon appealed to the LA

Times not to publish the

pictures. The US Defence Secretary expressing his disappointment. Those kinds of

photos are used by the enemy photos are used by the enemy to

incite violence. US officials

are anxious to try and contain any reaction in Afghanistan ahead oaf next month's Chicago

summit to decide when Afghan

security forces with take the security forces with take

lead on combat operations. Ahead of that gathering, the White House is

also pushing back at reports

that Australian troops are

exiting early. A spokesperson says Prime Minister Gillard's

troop withdrawal timetable is completely in line with Coalition commitments and Australia will continue to provide economic, political and

military support. In its quest

for a surplus, the Government

is fine tuning plans to cut its

spending a head of next month's

Budget. Now the Prime Minister

is stepping up to a media conference in Perth with Jenny

Macklin. They're at a childcare

centre in the suburb of Warwick

in Perth. Let's go there live

now.

It's great to be in It's great to be in Perth.

I'm joined by Minister Jenny Macklin and would like to say a

big thank you to everyone in

Jellybeans. You can see Jellybeans all around us on the

doors and paintings, at this

great centre. We've had the

opportunity whilst we've been here this morning tog talk to

some families and meet some

wonderful children. This is a

centre that is working to make

a difference for children with

autism and I'm very pleased that under our Better Start

package, our early intervention with children with with children with autism,

we've been able to support this

centre and we've been able to support families around the country to get some help to make a difference for make a difference for their

child' life. Amongst the things

that I've heard said this

morning - and I do want to morning - and I do want to say

this in front of people who

work so hard in this centre -

is that they can see the

improvement for their child from coming here and being

involved in these programs and

really you couldn't get better compliment than that, really you couldn't get a

that what is happening sheer really working to make a

difference for that child. So

congratulations to you. That package, working with package, working with children

with autism, joining with our

other early intervention

packages, joining with the 200

million we're investing in schools for students with disabilities, is all making a

difference, but I'm here with Jenny Macklin to talk difference, but I'm here today

about the next stage and that's

a national disability insurance

scheme. Each of us, I think,

has had some insight into the

lives of families who have a

person that they care for with

a disability. Through the adopt

a Polly program that operates

here, some of our Western

Australian politicians have had

a very direct insight but we

know that looking around know that looking around the country for families who care

for someone with a disability for someone with a

that at the moment it can be a

whether or not pretty cruel lottery as to

whether or not you get the help

you need, whether or not you get the help you need can depend on the circumstances in

which a person got their which a person got

disability, whether they got it disability, whether they

at work or whether they were

born with it. We want to make a

difference to that through a national disability insurance scheme, a great Labor reform, a

something like great Labor reform as big as

Medicare, something that would make a difference for all make a difference for all time

about how we assisted people

with a disability. Like

Medicare was a big thing to

build, a national disability

insurance scheme is a big thing

to build and it's going to take

some time. We've made that

clear. But we do want to get on

with the job which is why we

are determined to build the

first stage by the middle of

next year, 12 months earlier than the landmark productivity commission report recommended

because we want to get on with

this big job of building a national disability insurance

scheme and making a difference

for families around the

country. As a Labor Government,

we always want to run the

economy in the interests economy in the interests of working people and we always

want to be working with

families to get them the help

and supports they need so

whether it's the national disability insurance scheme,

whether it's our paid parental

leave scheme, our record investments in childcare, our health reforms and new money

into hospitals, our key

investments into investments into reforming

schools, we are working to

support families and the

services they need. So I am

very concerned to see overnight

that Mr Hockey on behalf of Mr

Abbot and the Liberal team Abbot and the Liberal team has give an speech which threatens

all of that. Overnight, he has been talking been talking internationally

about their plans for Australia and their plans for Australian

families and it makes pretty

grim reading. What Mr Hockey

has said overnight is that the

Liberal Party is committed to

widespread cutbacks to the

supports and services that Australian families have today,

supports and services that Australian families rely on.

Our message to Australian

families is we want the economy

to work for you and we want to

be working with you to get the services

services that you need.

Unfortunately, Mr Hockey and Unfortunately, Mr Hockey and Mr Abbott's message to those

families is you're in for

cutbacks and if you can't cope,

well, just try fending for

yourself and if you can't fend for yourself well, unfortunately that's too bad.

The Liberal Party has said

overnight through Mr Hockey

that they are prepared to

abandon Australian families and

take away the very vital services they need. I'll turn

now to Jenny Macklin for

comments on the NDIS and then

questions. Prime Minister, if

I can thank you very, very much

for coming here to Jellybeans

today. I've been here before

and had the wonderful pleasure of meeting with the staff and

the parents and children here

at Jellybeans and if I at Jellybeans and if I could

add to your thanks to everybody

here at Jellybeans but also here at Jellybeans but also to

the Autism Association of WA.

When you talk to your When you talk to your parents here today, the way in which

this service has made such a

difference to the lives of

children, to the lives of

families, we know that we've done the right thing. When done the right thing. When we

decided to put the money decided to put the money into these six centres around

Australia, it was a very, very

new way of doing things and if I

I can say to everyone who's been involved - Curtin

University, the Autism

Association, everyone here at Jellybeans, thank you very,

very much for joining with us to make a difference to the

lives of those children. It lives of those children. It has

made a difference. You've shown

that and we're so pleased to that and we're so pleased to be

able to continue to work in

partnership with you to make

sure that the children as they come along and then of come along and then of course go on to school, that they

learn and grow in the way that

we all hope they will. Of

course that's what the national

disability insurance chemois

all about. It's all about

making sure that we no longer

have a system of providing support to people with

disability, their families and

their carers that really ends

always in tears for so many

people. People who miss out on

the care and support that they

need because the system is

broken. We want to fix it and

we're determined to do so we're determined to do so and with our Prime Minister's

leadership, we will deliver a

national disability insurance

scheme. It's a very exciting

time for people with

disabilities but also for disabilities but also for their

families and carers and can I

say how important it is that we

develop this national disability insurance scheme together to make a difference

for people's lives. That's what

it's all about. it's all about. Thank you. Thanks, Jenny. Happy to take

take questions. You've criticised Joe Hockey for flagging cuts. It's been

reported today you're also

flagging means testing some

aged care subsidies or

payments. I flagged in the

election campaign that we would be reforming aged care in this

term of Government. This is a

system which is showing many,

many signs of stresses and

strain. It's a system that in

the past has served Australia

well but it's not meeting the

needs now of older Australians

to have the options and choices

they want and it won't meet our

needs into the future as our

society ages so we've said we'd

have something to say about

aged care reform and when I'm

in a position to say it I

will. You'll be announcing

something tomorrow? I'll allow

you to speculate about it and

we'll talk today about the

national disability insurance scheme. Will scheme. Will there be cuts

to- I'll deal with the aged

care reform package when I

announce it. Why de-S it you say the Reserve Bank has

freedom to move on rates?

Thank you for that question.

The Reserve Bank of Australia

is independent of is independent of Government

and that's of course the

appropriate thing, that the

Reserve Bank must exercise its

best independent judgment about

where interest rates should be

but the point I will be making

later today in a speech in WA is that it is is that it is important at this

time in our economy to return

the Budget to surplus. We came

out of the global financial crisis strong, we protected

jobs, the IMF confirmed

yesterday that our economy is

leading in the world leading in the world compared

with other major advanced economies. That means it's economies. That means it's the

right time to be returning the

Budget to surplus. That will

give us a buffer in case the international economy takes a

turn for the worst and we need

to protect jobs. It also means

that it gives the Reserve Bank

more room to move shad should

it choose to do so, but of

course the decision to act lies

in the hands of the independent

Reserve Bank. Are you going too far by suggest ing (Inaudible) I've always said and always will say the Reserve

Bank exercises its best judgment and acts independently

of Government. What we can do

as a Government is to have the

right Budget set frtion the economy today and that is to bring the Budget to surplus.

Mr Hockey's comments said there

was a sense of entitlement for Western societies. Would you

acknowledge there is in some parts of the community a sense of entitlement and could you

rule out cuts to welfare in the

upcoming Budget? Mr Hockey overnight was overnight was speaking overseas

but he was speaking directly

about their plans as a Liberal

Party under Mr Abbott's

leadership for Australia and Australian families. Mr Hockey was saying to was saying to Australian families that if you families that if you feel entitled to your family

payments f you feel entitled to

your childcare support, if you

feel entitled to things like

Medicare, well,, you shouldn't

because Mr Hockey believes there there should be widespread

cutbacks to those very services

and supports that families rely

on. You couldn't get a sharper

difference from our approach. We believe that you should We believe that you should run the economy in the interests the economy in the interests of

working people and be working people and be working in partnership with families pl. Hockey believes pl. Hockey believes in widespread cutbacks to Australian families, Australian families, leaving

them abandoned without

Government support left to fend

for themselves. We won't is a

see any cutbacks in the

Budget? We've made it clear

we'll be bringing the Budget to

surplus and that does demand

some tough choices but as we

make those choices we will be working to protect working to protect front-line

services. We will be working to

protect the front-line services

that Australian families rely

on. What Mr Hockey is on. What Mr Hockey is talking

about is huge widespread cuts

to the supports to the supports that families need, whether it's childcare,

family payments, the pension, carers' benefits, the supports

that many families rely on to

get by day to day. On poker machines, Clubs ACT

(Inaudible)? We're very please

would the way in which we've

been able to work with clubs in

the ACT and I appreciate their

in principle support for a trial of mandatory precommitment in the ACT.

also are very determined to bring into the Federal

Parliament the first ever

national legislation that

addresses problem gambling and

I call on all members of the

House of Representatives to

support that legislation when we bring it

we bring it in. It is the first

time we'll see such legislation

in the Federal Parliament because we do understand that problem gambling is an issue

that needs to be that needs to be addressed.

For the Prime Minister on the

same issue, Andrew Wilkie has

threatened to withdraw threatened to withdraw support for the legislation by close for the legislation by close of

business tomorrow. He's been in discussions with Jenny so

she'll take the question. Will you (Inaudible)? We had a good discussion earlier in the week.

We're still going through We're still going through the

issues that he's raised. From

the Government's point of view,

we've had legal advice that our

legislation does do exactly

what Mr Wilkie is asking for but we're still

but we're still talking, we're still working through the

issues and I hope we'll find issues and I hope we'll find a resolution. Ms Gillard,

overnight we've seen photos of

you - we've seen photos of US soldiers posing with the bodies

of suicide bombers and have you

been briefed that Australian troops haven't been involved in this? There's certainly no evidence in relation to

Australian troops. What's been revealed overnight is some

conduct by US troops and the

pictures are truly shocking and

grotesque so this is a very disturbing incident, a disturbing incident, a very shocking shocking and grotesque incident. It's very important,

I think, that the people

involved are held to account

for their conduct here but we

shouldn't make the mistake of

thinking that the conduct of a limited

limited number of US

speaks to us about the conduct

of soldiers generally in

Afghanistan. Our troops are

there, US troops are there, US troops are there, troops from other nations

working hard to train the

Afghan national security forces to make sure Afghanistan never

again becomes a safe haven for

terrorists and in doing that they are working alongside the

Afghan people so we can't

generalise from one very

disturbing incident to the conduct overall conduct overall of troops in Afghanistan. Will the Federal Government still be in a position to increase foreign

aid by 2015? I saw today that

we've seen some Budget speculation break out again.

I'm not surprised, it's Budget

speculation season speculation season and you won't be surprised when I won't be surprised when I say

I'm not commenting on it. (Inaudible) do you (Inaudible) do you thing that's

the case and that the Fair Work

Act should have gone broader? I

I don't think it will be

surprising to you that I've

never seen eye to eye with Mr Corrigan on industrial relations matters. I didn't see

eye to eye with him and the

Howard Government when they chucked hard working

Australians off the waterfront

and brought in dogs and and brought in dogs and men wearing balaclavas to get them

off the waterfrontism was despicable conduct by the

Howard Government. Says everything about what the

Liberal Party believes in in

workplace relations. We take a

different view about making

sure working people get protections and

protections and support at work

and they work in decent and they work in decent and

fair work places. Arthur and

Andrew Roberts said on your decision for the Reserve Bank

to cut interest rates, it's a

con. Is it a con? Usual wall

of negativity from Tony Abbott's Opposition. We

wouldn't expect anything else. Tony Abbott and his spokes

people need to address two

things today. First, they have

the man who would be Treasurer

in an Abbott Government talking

about widespread cuts to

working families' benefits.

Well, who's going to get the

cut? What is going to be cut? What can working families

expect from Mr Abbott if he's

ever Prime Minister? Is it their childcare money that will

be gone, their families payments

payments money, their carers'

benefits? What are these cuts

going to mean for working people? That's the question

for Mr Abbott and his team

today and I also note today and I also note that they're out talking about

interest rates. They might,

whilst they're talking about

interest rates, want to explain

why for a family on a $3 why for a family on a $3 00,000 mortgage they're paying $3,000

less a year on that mortgage

under this Government than when

Mr Abbott and his colleagues were in Government. What one

of the major projects for us in

the West on the horizon is a

new football stadium. It will

be about $700 million. Have you

had any discussions with the

State Government here and would

you be prepared to front up

Federal cash? I Federal cash? I haven't had

any direct discussions with the

State Government here. State Government here. If there's a proposition the State

Government puts forward then

we'll certainly look at it but

I would make this point on infrastructure

infrastructure generally, WA's a growing State and a growing State and it's hungry for infrastructure and we certainly understand that which

is why per head in WA we are

investing $261 per year in

infrastructure compared with $155 per year which was invested by the Howard Government. We've responded. We

are investing more in

infrastructure in WA. You

haven't seen eye to eye haven't seen eye to eye in the

past with Andrew Forest. He's

stepped up his rhetoric around

the mining tax and the

revolution of that and says you

had a deal in train with the

miners well a head of the time

when the actual deal was

settled. How do you respond to

that? I responded to some of

Mr Forest's claims yesterday by

saying this was rehashed nonsense. It was nonsense

yesterday, it's nonsense

today. What will the first stage of the NDIS stage of the NDIS entail We're already working now on

technical and important policy

matters. We're Bourking towards laying

laying the foundations by mid 2013a

2013a year earlier than 2013a year earlier than the Productivity Commission talked

about. I'll get Jenny to speak

in some detail about what that

means. We're working with the

states and Territories on a range

range of different technical

pieces of work so the development, for example, of development, for example, of a common assessment tool, the

development of decent quality

assurance framework to make

sure that parents and people

with disability are able to

know that they're getting

high-quality services. We're working of course on the

costings of the scheme. We've had the Commonwealth actuary work with the Commonwealth and

State and Territory State and Territory treasuries

on the details of the costings.

Some of the work was done by the Productivity Commission but

given the cost of had scheme

that's been projected, of

course we are taking a very

careful look at all of those

detailed costings. We know that

it will be important to get all

this right. There's an enormous

amount of work to be done. At the moment we wouldn't be

starting from one place, given

we've got eight different disability systems in this country, so there's an enormous

amount yet for us to do. (Inaudible). On the Budget, you

have to wait until Budget

night. Sorry about that. There

would be kids here that want to get their birthday presents early early too. Doesn't work like that. What about restraints that. What about restraints to the budgetary environment?

We'll have to just wait and see

some matters in the Budget some matters in the Budget and

how we generally work but I

would make this point, Budgets

ultimately are about making the

appropriate choices. This is a

Government that has funded new

spending from saves since spending from saves since mid 2009. We've shown the ability

to get big things done whilst managing the Budget prudently. Should the State Government

exempt increases to the pension from public housing from public housing rents?

I'd better let Jenny answer

that or I'll get killed in that or I'll get killed in the crush. They certainly should.

We'll be providing additional

assistance to pensioners

starting in the middle of May

so for a single pensioner so for a single pensioner we'll be providing in annual terms

around $338. The Prime Minister

has Britain to all the Premiers - the Prime Minister has

written to all the Premiers, I

have written to all the

Premiers. The Premier of this

State has yet to respond so I

would call on Mr Barnett to reassure pensioners who live in

public housing here in WA that

they will be able to keep all

of the money that the

Commonwealth is giving them in

extra pension payments. This

money is for pensioners. It is

not for State Governments to

gobble up in public housing

rents. Prime Minister, on rents. Prime Minister, on the

aged care reform generally, do you recognise the attachment a

lot of people have to their

homes? What assurances can you

give around that? I certainly

do recognise the attachment that

that people have to their homes

on aged care reform, when we

announce it we'll announce it. Thank you very much. It was suggested this morning (Inaudible) was a (Inaudible) was a deliberate

attack on him. Have the last

couple of days with the Premier

damaged your relationship?

I'll take this as the last

question. I've worked

productively and well with Premier Barnett

Premier Barnett on things that really matter to Western

Australians. We struck together a health reform a health reform agreement that

has got more money into the

hospitals in this State so people aren't waiting in

emergency departments as long,

they're not going to wait on

elective waiting surgery

waiting lists as long. I struck

with him last Friday a skills

agreement for this State which

means that some people who are currently locked out of a job

and locked out of hope for the

future can go and get the

skills they need to get a

better job and to be better job and to be more

employable and that people who

do have qualifications but are

looking to upgrade can get the

same deal for upper same deal for upper level

qualifications as university

students currently do so you

can study now and pay late sore

I've worked well with Premier

Barnett on things important to

this State. My point over the

last few days has been the

resources boom in this State is a fantastic thing, it's a fantastic thing fantastic thing bringing

wealth, bringing jobs, bringing

opportunities to many in WA but

not to everyone and when we

look at the economy of this

State we've got to make sure that we're helping those

families who today think, "What

boom? It's not my boom. boom? It's not my boom. I'm not in the resources boom.

What's it getting for me?" I

want to make sure those families get something from this

this resources boom. That a difference between Premier

Barnett and me. Thank you. That was Prime Minister Julia

Gillard live from a childcare centre in Perth along with Jenny Macklin. She was talk

about the national disability

insurance scheme, saying the

Government would build the

first stage by the middle of

next year, also responding to the Joe Hockey speech overnight called the end called the end of the age of

entitlement. He says welfare is

an enormous cost burden. Julia

Gillard says that indicates a Coalition would make Coalition would make widespread

cutbacks to services. On those

pictures of US soldiers with the remains of Taliban fighters, fighters, sheer says the

pictures are shocking and grotesque and the people

involved should be held involved should be held to

account. Time now for a bit of

sport with Meredith Sheehan.

What's the latest on Michael

Lynagh's condition? Queensland

rugby union has confirmed the

former Wallabies captain

suffered a suffered a stroke. The

48-year-old is in a stable condition after being rushed to

a Brisbane hospital on Monday

night complaining of headaches

and blurred vision. He played

72 tests for Australia and 100

matches for the Queensland

Reds. The second cricket test between West Indies in Australia in Trinidad appears

to be heading for a draw. Rain

brought an early tend to the

fourth day's play with the

tourists 3/73 in their second

innings with an overall lead of

127 runs. Ricky 127 runs. Ricky Ponting is unbeaten on 32 and Michael

Clarke is on 3. Kemar Roach

took all three wickets for the home side. The Australian rugby

league team will train at Eden

park in Auckland this afternoon

ahead of tomorrow night's trans-Tasman Test against New Zealand. Zealand. Former New Zealand

half Stacey Jones has half Stacey Jones has warned rookie Sean Johnson to rookie Sean Johnson to be ready

for a brutal welcome to

international rugby league. Jones says Johnson has all the qualities to be a great qualities to be a great Test player and Kangaroo forward

Lewis agrees. Marshall and Johnson

Johnson are superSARS. We have

to not give them too much to not give them too much time

and create some stuff out there

we're not really expecting. If we worry about them too and

don't worry about the rest of

the side, they can tear us apart theres wale. Former

Hawthorn star Dermot Brereton says

says greater winter Sydney's

star recruit Israel Folau will

succeed in the game.

succeed in the game. The rugby

league convert has been heavily

criticised since line soo

signing a lucrative contract. Brereton says although Folou

had a quiet start had his

career, he will get better.

The best train ogyou can get is

trial and air thar & that

happens on the ground. I hope

Israel Folau turns into something quite

extraordinary. And that's the

latest in sport. Thank you. Now

just before we go to News Line

with Jim Middleton I'll with Jim Middleton I'll mention the Prime Minister going to be addressing a function in Perth

in a couple of hours time where she's going to make some

announcements in relation to

the surplus and room to move

for the Reserve Bank for the Reserve Bank in relation to interest rates. We

plan to bring you that live plan to bring you that live so

that's in a couple of hours'

time. Stand-by now for News

line with Jim Middleton.