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(generated from captions) Conduct unbecoming - widespread condemnation over

Craig Thomson's misuse of

funds. The conduct is not

acceptable. The findings are extremely disappointing and

ugly. This Program is Captioned

Live. Surplus to requirements -

the Treasurer promises fairness

in tonight's Budget. Jitters on

global markets as Germany warns

France and Greece the EU

bailout is non-negotiable. A

grand Tour breakthrough for

Green Edge. Matt Goss wins

Stage 3 of the Giro D'Italia. Good morning. It's D'Italia. Good

Tuesday, 8th May. I'm Michael

Rowland. And I'm Karina

Carvalho. A major shake-up of

union regulations is on the

Work Australia's report into cards after the release of Fair

Health Services Union. The

report says former Labor MP and

HSU national secretary Craig

Thomson used un yob money for prostitutes. It says he also

spent $270,000 on his election

campaign. Mr Thomson denies any

wrongdoing. The Government is

promising to tighten financial

disclosure laws for unions and

boost Fair Work Australia's

powers but the Opposition says

the industrial watchdog has

lost its legitimacy. We

believe that Fair Work

Australia should no longer be

inquiring into registered

organisations, and we would

take this away from Fair Work

Australia which has had this

unprecedented delay in coming

out with this report. Well, for

more on this story, we're joined by our political

corporate Melissa Clarke who is

in Canberra. Good morning,

Melissa. It's Budget Day, but

the Government is doing all the Government is doing all it

can to limit the damage from

this report? And the damage

certainly looks like it will be

widespread because the findings

in this report do not paint a

good picture for those that 2 it implicates, including Craig

member Thomson, who is now a suspended

member of the Labor Party member of the Labor Party and sitting on the crossbenches in

the Parliament. He is denying

any wrongdoing,ite vow

vociferously, but nonetheless,

the findings of this report

don't paint a pretty picture. They took about enormous

amounts of money, hundreds of

thousands of dollars being

misspent on escort services, entertainment and apparently the election campaign for Craig

Thomson. The Government is

trying to limit the amount of

this damage, immediately moving

to say that it finds these

allegations disturbing, that it

is - that it does agree that

there needs to be greater

imposition on unions to

disclose where and how their

money is being spent and what

union officials are getting

paid, and Bill Shorten, who is

the Workplace Relations

Minister, really had no choice

yesterday than to come out and say that the Government will

make changes to legislation, to

toughen up laws on unions.

Let's hear briefly from him I

see no-no argument against

officials , officers the unions

reporting what they earn to the

members. Financial disclosure

and transparency is a must.

I've got also no doubt and I

know that the trade union

movement and the Government

unanimously have a view that

you've got to have appropriate

penalties for individuals who

are found to do the wrong thing

and that the penalties will

need be to lifted. Bill Shorten there, Workplace Relations

Minister, and it seems that any

legislation to that effect will

go through Parliament without

any trouble. Not only is the

ACTU giving in-principle

support to the idea, saying

they wouldn't push against it,

the, let's hear from Eric

matter should have been Abetz We believe this nah

referred to the police a lot

earlier. It has been referred

to the police and we welcome

that. Some 10 days ago Tony

Abbott anunsed a suite of

policy to indicate to the Australian people that if we were to be elected after the

next election, we would implement changes to increase

the penalty on union bosses who

so misuse and abuse the faith

that individual union members

place in them. That's Eric

Abetz speaking there on '7:30'

program. Now, Melissa, all you

have to do is take a front

pages of the major newspapers

around the country this morning

and it really has spoilt the

Treasurer's party on Budget

Day, hasn't it? It has. This is

the moment Labor has been

working to for some months now

T has been putting a lot of

energy and effort in getting

the Budget back to surplus, one

of the biggest fiscal

turnaround, one of

turnaround, one of the fastest

in history. Usually on the

morning of the Budget, you can

expect to get decent headlines

but that was all wiped out yesterday with the Senate

committee releasing that Fair

Work Australia report. But

nonetheless, the Budget rolls

on today and there will be

information in that. We are

expecting the Government will

announce a surplus for 2012/13

of $1.5 billion, and a surplus

the following financial year of

$2 billion, so again a very

narrow thing for very narrow

surplus in 2000 13/14 as well,

which shows how fine it is for

the Government to tip over that

line into positive territory.

We're expecting more savings

announcements in the Defence

budget and also the health

budget. The health sector is

concerned there will be more

cuts in their air, too, cuts in their air, too, but

also expect there to be more

payments in terms of cash

payments that will target lower income households as well.

later on tonight when the We'll have all the details

Treasurer gets on the floor of

the Parliament and delivers the

Budget address. Melissa Clarke

in Canberra, lots touk about

this morning. We'll come back

to you later on. We'll also be

joined by Craig Emerson to

discuss that Fair Work report

as well as the Opposition senator George Brandis, but

first here is the news with

Michael Rowland. Also making

new this morning, initial talks

to form a new Greek Government

have failed after the Conservative New Democracy

leader handed back the mandate

to the country's President. New Democracy was given the first chance to form a government

after winning the big est votes

over the weekend. Germany's

Chancellor Angela Merkel is

re-negotiating a deal. The

warning comes after the French President-elect Francois

Hollande announced he wanted to re-open debate on the pact.

Earlier Germany's Interior

Minister warned Greece to stick

with austerity measures if it's to continue to receive

financial aid from Berlin.

Vladimir Putin has begun an

historic third term as Russia's

President with police arrests

300 activists protesting

against his 12-year domination

of the country. The 59-year-old

former KGB spy has vowed to use

his third term in office to strengthen the country's

democracy. He wants to boost investment. Polling stations

have opened in Syria on the first multiparty elections in

five decades. But the Opposition has already

dismissed the vote as a sham

and say it is will boycott it.

The UN says President Bashar

al-Assad's troops have now

killed more than 9,000 people

during Syria's year-old uprising. And

uprising. And several

grandchildren of the renowned Australian artist Albert

Namatjira have reunited for the

first time in 20 years. A play

about the famous Aboriginal

artist's life opens in Adelaide

tomorrow. The production

portrays the life. Namatjira,

win of the country's great landscape painters.

Third-generation artists from

his home of Hermes bug in

Central Australia will create a

mural on stage as the actors

perform. To finance:

As we've just heard,

Vladimir Putin has been sworn

in as the President of usual

shah for the third time. Norman

Hermant has more. Forget the

cheering crowds, the streets

were virtually deserted as

Vladimir Putin made his way to

the Kremlin and his

inauguration. In a throne hall

built for the tsars, for the

third time he was sworn in as

Russia's President as the

country's elite and foreign

guests looked on. TRANSLATION: I consider it TRANSLATION: I consider it to

be the meaning of my whole life

and my obligation to serve my father land and our people. Mr

Putin also spoke about

strengthening Russia's

democratic freedoms. That would

have been news to the

Opposition demonstrators who

tried to protest against his

inauguration in small groups

throughout Moscow. Some were

arrested just for wearing the

white ribbon of the Opposition,

but the return President did

have his supporters, like this

group, headed to a

Kremlin-sponsored pro-Putin celebration.

TRANSLATION: Vladimir Putin is

the only permty that can

presently lead our great

country. He is a strong,

strong-willed man, so we stand

for Putin. But scenes of

inauguration protests are a

reminder that for Mr Putin the

political world has changed.

From 2000 to 2008 he ruled with

near absolute power. Many

analysts say the rise of

opposition activism means those

days are gone. Putin's era metaphorically speaking,

spiritually speaking is over.

His ideas are so clearly in the

past that I don't think he has

more than one temp. But

Vladimir Putin returns to the

Kremlin at just 59 years of

age. When this term ends in

2018 he will be eligible to run

again for a fourth term as

Russia's President. Let's take

you to gres now where the

leader of the right wing New

Democracy party has told the

President he can't form a

coalition government. Europe correspondent Philip Williams

joins us from London. Phil,

good morning. This is a tremendous blow for the

government's hopes of trying to

pull itself out of its deep

economic mire? "It" does. It is

a terrible blow for the

stability of the country

because New Dell is the largest

party with only 19% of the vote

and it was hoped that they

could cobble together a

coalition that would have some

semblance of stability, and now

just after a few hours of

negotiations, they said they

can't do it and. Antonis

Samaras from the New Democracy

party, the leader of that said

he had tried his best and that

it's been rejected. It's now up

to Syriza, a coalition of

anti-austerity parties to have

a go at forming government.

They are the second largest

party. Alexis Tsipras is their

leader. If he fails and it's

likely he will because there

simply aren't in uf on his side of the ledger to get across the

line, then it falls to PASOK

who are the Socialists which used to be the government a

document of years ago, to have

a go, too, so they're unlikely

to form that coalition, too.

Where do we go from there?

Possibly another election.

That's another 30 million

spent and possibly a similar sort of result, so instability

is the word. Of course,

instability in Greece is bad

news, not just for that country

but for Europe and the rest of

the world. Indeed it is, and at

the same time we're hearing

from the germ man Chancellor

Angela Merkel sending a very

strong warning to whoever wins

government in Greece, not to

loosen that austerity

pact. Absolutely,

non-negotiable. That's the

message from the i.e. C as

well. All the creditors are

saying this was a deal hammered

out. It was blood, sweat and

tears getting there. You

remember the months and months of torturous negotiations and

they're not going to re-examine

this deal and if a government

is formed that says the deal is

off or we really want to

negotiate or insist on it, then

they will simply withdraw their

money, no more money

forthcoming. That's the threat,

anyway. The re-alt may be something different. They may

decide it's better to

re-negotiate than to plunge

Europe back into a fresh crisis. Let's wait and see of

the thing about Greece is it's

always full of surprises and we

never quite know what's coming

around the corner and the next

24 hours will be crucial to see

if this left-of-centre

coalition can pull something

out of the bag, but I would say

that's highly un likely that

that will happen. And in France, Francois Hollande is

wasting little time in getting

down to business. He says he

definitely wants to re-open debate about that austerity

pact? Yes, he does. Of course,

what he wants to re-negotiate

in the fiscal pact which limits the amount that countries can

borrow. That again was another hard-fought campaign,

particularly from the German s.

The Germans particularly

resistant to any change on that

front. In fact, Angela Merkel

saying, "No, we will simply not

revisit that." That's a very

clear message to the new

President-elect, even though as

soon as he says as soon as he

is elected he will be going to

Berlin to present his case, but

on the present evidence, Angela

Merkel has trouble not just

with France, but of course with

Greece also and she is standing

her ground and saying, "No, we

have done this deal. It may

have been done by a previous

government, but you have to

honour it." Philip Williams,

in London, undoubtedly we will

be hearing more from you in the

day as head. Thank for the

update To the front update To the front pages of the newspapers around the

country, the 'Financial Review'

reports an investigation of the

HSU found 156 legal and rule breaches by Federal MP Craig

Thomson. The report found Mr

Thomson repeatedly provided

false and misleading information to that investigation - that take is in

the 'The Age'. 'The Australian' says Craig Thomson grossly

exploited his position with the

union at the expense of poorly

paid members. The 'Canberra

Times' says according to the

report, Mr Thomson improperly

spent $500,000 of union

money. Fair Work Australia

found the former HSU official

used more than $70,000 on

lavish meals and air travel for

his wife - that report is in

the 'Advertiser'. It is Budget

Day, right? The 'West

Australian' reports the

suspended Labor MP used union

funds to pay for

prostitutes You wouldn't really

know it, Michael. A possible

vote of no confidence in Speaker Peter Slipper threatens

to overshadow today's Federal

Budget. That report is in the 'Courier-Mail'. I knew it was.

The 'Sydney Morning Herald'

reports the Federal Budget will

promise a slender surplus of

$1.5 billion for next financial

year. Frlt Treasurer Wayne Swan

says the reward for the Budget

surplus could be another drop

in interest rates reports the

'Herald Sun'. The 'Daily

Telegraph' reports New South

Wales is to be offered $200

million in today's budget to

make Sydney's road projects a

reality The 'Mercury' says a coroner has found a teenager

would not have drowned on a

school excursion if planning

and supervision had been

better. The 'Northern Territory

News' says an out-of-control

driver crashed into a preschool

yesterday afternoon. Thankfully

no injuries there Well, it's

Budget Day and it seems to be

somewhat overshadowed by the

HSU report from Fair Work

Australia and those findings and allegations leveled against

Craig Thomson, but we want to

know what you are expecting

from tonight's Budget, how will

it affect you and your family,

and what are you looking for?

The Government is saying it's

its toughest budget yet. If

would you like to join the conversation:

Let's take a quick look at

the weather around the country:

These are the top stories on

ABC News Breakfast - the

Government is promising to

tighten financial union

disclosure laws after the

release of Fair Work

Australia's report into the Health Services Union. The

report says the former union

official Craig Thomson used

union money to purchase escort

services. Mr Thomson denies any

wrongdoing. The Federal

Treasurer Wayne Swan is

expected to announce tonight a

surplus of about $1.5 billion

for the next financial year. Mr

Swan say it is will be a

fair-go budget, aimed at

families and low-income earners. Germany's Chancellor

Angela Merkel has ruled out

re-negotiating the EU's deal to

bail out faltering Eurozone

economies. The warning comes

after French President-elect

Francois Hollande announced he

wants to re-open the debate on

the pact. Syrians are voting in

the first multiparty elections

there in decades. But

Opposition groups are calling the

the poll a sham and violence has continued throughout the country. Middle East correspondent Anne Barker reports. It looked peaceful

enough - Syrians young and old

waiting in line to vote in the

country's first multiparty

elections in nearly 50 years

and many were hopeful this

election might prove to be the

circuit-breaker Syria needs.

TRANSLATION: Everybody should

vote in Syria so we can deliver

our voice. We have to vote for

the people who we want to be in

Parliament so they can deliver our voice to the Government. I

wish this country the best.

TRANSLATION: We hope the new

Parliament comes up with new

job opportunities, new chances for everybody and providing

employment for the youth. But

as polling booths opened in

some areas, elsewhere the

violence continued unabated. In

eastern province, several

people were kaled in a dawn

raid by government troops.

Human rights monitors reported

gunfire and explosions in

northern Idlib province, while

new clashes broke out in Hama

between rebels and soldiers,

and video foft ed posted on the

Internet showed many boycotting

the election altogether. In one

video, voters are shown casting

mock ballots with the names of

people killed in the bloodshed. Elections were due last

September, about you were put

off when President Assad

promised a series of reforms,

including the new multiparty constitution. But Opposition groups say the election is a

sham, designed only to prolong

the Assad regime.

TRANSLATION: In troubled areas,

turnout is very low, but in

calm areas the situation is better-than-average. Whatever

the election result, it's

unlikely to stop the 14 months

of bloodshed which the UN says

has now cost around 10,000

lives. UN monitors in Syria continue to report widespread

violations of a ceasefire

agreed to nearly a month ago.

FaceBook CEO Mark Zuckerberg

has been spruiking the

company's $10 billion public

launch, feeding questions about

FaceBook's slowing revenue

growth. Hundreds of investors

attended the presentation at

New York's Sheraton Hotel which

was closed to the media The

27-year-old also defended the billion dollar purchase of the

app Instagram. Share notice

world's social network have

been priced around $30, Val

ruing the company at a cool $85

billion. Chump change Yes,

nothing for people like Mark Zuckerberg. I think that float

should come online around 18th

May, so I'm sure investor also

be watching that and financial

watchers will be watching that

very, very closely. Australian

retailers meanwhile have

welcomed a surprise lift in

spending. Consumers have driven

an 11-month high in sales after

a year of below-trend growth.

While the Bureau of Statistics

figures show a revival,

analysts say it's too early to

suggest retail spending is on

the mend. Meanwhile, the construction industry has hit a

6-month low. While house building picked up, the

construction of flats slumped. The Australian Industry Group

survey was taken before last

week's interest rate cut. To

the markets:

Time for the sport headlines

and we're joined by Paul

Kennedy. Good morning to

you. Good morning How about

Matt Goss? Yes, and how about

Mark Cavendish in that crash.

Matt Goss has broken through

for Green Edge, the First World

stage win, a dramatic sprint.

They've been really gunning for

this one. They want Goss to win

these events, win these stage

wins and do the same in the

Tour de France. It came at a

spectacular time. There was a

crash behind. I will let you

watch and then we'll have a

discussion. Out of the saddle

they go and Matt Goss is in the

centre. Mark Cavendish has gone

down. A massive crash. Huge

crash. Goss gets the win. I

think Alunde gets second, but a

huge crash. Taylor Phinney on

the floor, along with Sasha and

Cavendish is up. He is up, but

a lot of road rash on the

left-hand shoulder and

everybody held up. He knows he

has to get to the line. Matthew

Goss gets the win and you have

to say that he looked in the

better position all the way

along. Now Cavendish sees that

people are getting out of the

saddle and going - away he

goes. Cavendish. Ferrari.

Roberto Ferrari. Taylor Phinney

went down. Oh, that was Roberto

Ferrari. We will give you Mark

Cavendish's reaction on Twitter

in just a few moments, but

before we do, that let's go to

the NRL match from last night

and a rampaging fullback Greg

Inglis that sent New South

Wales an ominous warning with

three tries as South Sydney

snapped Cronulla's winning game

streak with a 28-14 win.

Cronulla skipper Paul Gallen

the latest New South Welshman

to fall victim to injury. He

hobbled off at one stage. He

has a knee complaint. He is

hoping it's not too serious,

but it just might be enough to

hamper him in his preparation

for State of Origin. Let's take

a look at the action from last

night. COMMENTATOR: You can't

stop him! Under pressure

here Here is Carney getting

away. Farrell he will go in.

Throwing an intercept to

Merritt with nobody in front of

him. It looked as though Gallen

was going to create something

for the Sharks. Instead it is

the Rabbitohs who go 60m

through Nathan Merritt.

Gives it to Inglis on the

wrap-around. Inglis is in

again! Numbers for the Sharks.

Robson sees a hole. Got the

ball down. This will be a

4-pointer.

The pass is OK. And Mills

will score for the Sharks.

Coming off the field.

Well, there was a question

mark over his fitness coming

here tonight and I think it was

a thigh, but it doesn't look to

be a thigh. I thought it may

have been a calf. Inglis came down with it. It is a

hat-trick. A sad Sydney winning

34-28. An easy 58-48 victory over over the sooun Steele last

night and the Melbourne Vixens

stayed on top after beating the

can't brie Tactix 55-4 is.

Tegan Caldwell became the fifth

player in the history of the

comp to record a perfect game

with a 29-game haul. She joins

the others in notching a 100%

shooting return and the Vixens

defence did not suffer from

leaving injured captain Bianca

chat field out. They did a

terrific job there. Let's hear

now. We really wanted to come

out strong and put good

pressure on the scoreboard

which I think we were happy

with today. I think Julie and y really stepped up. Happy to get

the win. I thought the second quarter was pretty impressive,

probably the best we played all

year, so that was good. The

last quarter we let slide, but

found our rhythm again and

sometimes it takes a little

while to settle in, but the

kids off the bench did a

terrific job. Michael and

Carina, what about that crash,

one year exactly after develop ta va Len died on that tour. They were remembering him and that careless riding right at

the finish. If we can just

watch the finish again. You can

see that the Green Edge team

had a terrific position, no

doubting that, but Roberto

Ferrari that cut across. We've

got some tweets from Mark

Cavendish and his reaction.

Cavendish and his reaction. He

firstly tweeted, "Ouch,

crashing at 75km/h. Wasn't

happy." Then he targeted Roberto Ferrari saying

apparently when he said to

journos about the incident,

can't see what happened behind

him and doesn't care That's

nice. And followed up with that

of a couple of others.

"Others have been sent home

for much less." And talking

about cutting Cavendish off. It

did look very, very careless It

did. On a positive note, really

pleased with Matt Goss.

Congratulations, dude. Proper

decent bloke." A proper wrap

from the world's best sprinter.

Thanks, Paul. ABC News

Breakfast can be watched live

on the web. Just go to

abc.net.au/news and you will find a link to ABC News 24

which is streamed live every day. Good morning to Vanessa O'Hanlon with the

weather. Something bright and

happy and possibly the perfect

double rainbow. This photo was

taken in Victoria's north-east.

The perfect double rainbow.

Looking at another photo, Jake

took this one last night in

Perth where the wild weather

has been hitting the

south-west. Grit shots of light

thing through the trees there.

This morning still a severe

warning for damaging high tides. Overnight wind gusts tides. Overnight wind gusts of

104km/h were recorded at Cape

Leeuwin in Western Australia. A

vigorous cold front is making its way over the area with

showers and storms, and

although we have a weak trough that's triggering isolated showers from New South Wales

southern areas down towards

Tasmania, a high pressure

system is bringing a little

autumn treat of warmer weather

to the east. But enjoy it while

it lasts because on Friday

we'll have a cold front that

will sweep over the south-east

and that will push us right

back into winter territory.

Mother's Day looking very cold.

The tropical storm storm under

this cloud hit Indonesia yet

and will hit our forecast. We

can see it starting to increase over the Northern Territory,

but it really will hit the

Kimberley coast, expecting

around 200mm.

You're watching ABC News

Breakfast. It's great you could join us this morning. Still to

come, we'll be speaking to

Cassandra Goldie from the Australian Council of Social

Services about her expectations

of tonight's Budget. She is very perturbed to cut the

welfare benefits of single

mothers once their kids reach

the age of 8. And also ahead

we'll have a review of some of

the newspapers. This morning

we'll be joined by Dr Gael

Jennings from media training

company media dock. Now here is

the news with Karina. The

report says former Labor MP and

HSU National Secretary Craig

Thomson used union money to pay

for prostitutes. Mr Thomson denies all the allegations. Federal allegations. Federal Treasurer

Wayne Swan is expected to

announce tonight a surplus of

about $1.5 billion next mention

year. He says the fifth budget

will be a fair-go budget, establishing a National

Disability Insurance Scheme and

aged care changes but big cuts

to government spending are

expected. Initial talks to form

a new Greek government have

failed after the Conservative New Democracy leader handed back the mandate to the

country's President. The Left

coalition will now try to form an administration. Germany's

Chancellor Ange will Merkel has

ruled out re-depogting the EU's

deal to bailout faltering

Eurozone economies. The warning

comes as Francois Hollande

announced he wants to re-open

debate on the pact. Germany has

also told Greece to stick with

austerity measures. Vladimir

Putin has began an historic

third term as Russian President

with police arresting 300

activists protesting against

his 12-year domination of

Russia. The 59-year-old has

vowed to use his third term in

office to strengthen the

country's democracy. Returning

to our top story now and Fair

Work Australia's scathing

report on the Health Services

Union. Workplace Relations

Minister Bill Shorten says the

Government will toughen up the

laws governing unions. Well,

the legislation and whilst I'm

not seeking to divert from the

issue, the legislation which the current government and the

general manager of Fair Work

operates under was actually

passed in Parliament by the

then Minister for industrial

relations in 2002 who, for the

people who don't follow it, that was actually Tony

Abbott. It's Tony Abbott's

fault? No, but it's Tony

Abbott's law. Fair Work

Australia is your beast But the Fair Work Australia organisations Act is not and we

are going to improve it and

we've also said today at the

press conference that the recommendations that the

general manager is making, we

will implement. She has also

said that and we've already

said this, that the report has

taken too long. Where is

Bernadette O'Neill getting her

legal advice from because what organisation in the

Commonwealth can't deal with

the police? They can in fact be

compelled to deal with the

police, can't they? We've said

today that there should be no

ambiguity, no confusion, that the Fair Work Australia general manager... Sounds like aen an excuse, sounding like a

facade. Sorry, Chris, I hadn't

finished. You said it's silly

the regulator can't talk to the

police. We agree. That's why we

want to remove any uncertainty so that it can't happen

again. We believe this matter

should have been referred to

the police a lot earlier. It

has been lever referred to the

police and we welcome that.

Some 10 days ago Tony Abbott

announced a suite of policy to

indicate to the Australian

people that if we were to be elected after the next

election, we would implement

changes to increase the penalty

on union bosses who so misuse

and abuse the faith that

individual union mens place in

them. We believe that Fair Work

Australia should no longer be inquiring into registered

organisations and we would set

up a separate registered

organisations commission as

part of Fair Work Ombudsman and

as a result take this away from

Fair Work Australia which has

had this unpress depthed delay

in coming out with this

report. Eric Abetz there. Now,

if you are just catching up

with this story, the actual

report, the full report was

only dumped at about 5:30 or so

last night. Lit's just run

through some of the allegations

made in the report about what

Craig Thomson was said to have

used his credit card on. Now,

Fair Work Australia says he

spent $6,000 on escort services, including on

high-priced Sydney brothels,

Tiffany's and A Touch of Class.

$74,000 on dining and entertainment expenses and a

massive $271,000 on his

campaign for his seat of

Dobell. We have to remember

that Craig Thomson maintains

his innocence. Of he says that

he will prove his innocence and

that all the allegations

against him are false.

Interestingly, that $271,000,

that last figure, the $71,000

on that directly on his campaign, another $200,000

engaging people to work on his

campaign and activities surrounding his election

campaign. Which is more or less

the same thing. Terry nas yos

from Fair Work Australia says

in that report says, this is

one of the seminal quotes from

the report:

And we'll have a lot more on

that story. We'll be joined by Trade Minister Craig Emerson a

little bit later in the

program, as well as the

Opposition senator George

Brandis. That report was released under parliamentary

privilege last night by that

Senate committee that had been

wanting to make the Fair Work

Australia report public, and we

want to know your thoughts as

well because this story has now

become the headline story on

what would otherwise be the day that the Treasurer Wayne Swan

would be out selling his budget

and some of the sweeteners that

they've talked about in the lead-up to lead-up to tonight's announcement. We would normally

see on a morning like this the

newspapers with big pictures of

Wayne Swan sitting with the

Budget papers in his office and

big leaks, further leaks, happy

leaks into what it may contain,

but not the case this morning.

Most papers have the Craig

Thomson affair in a much more

dominant position on the

headlines, including there you see 'The Australian', very

strong coverage of the Fair

Work Australia report into what

Craig Thomson is said to have

done, and the 'Financial

Review' has gone very big on it

as well. It dominates the first

6 to 8 pages of its book this

morning on Craig Thomson, as

opposed to the budget. You would think the 'Financial Review', being the financial

paper on record, would spend

more time on the Budget, and of

all papers, it actually devotes

half a page to profiling the

two Sydney brothels that Craig

Thomson allegedly used his

credit card at. So that's an indication of how big this

story has become and how it's potentially overshadowing what

the Government hopes will be a

red-letter day when it releases

its budget and forecasts that

budget for the next financial

year. So the big question is

should the Government still

accept Craig Thomson's voting?

Of course, these findings are

allegations. There are no criminal proceedings against

Craig Thomson as yet. Fair Work

Australia says they will look

into civil action against Craig

Thomson. He maintains his

innocence, but in the meantime,

should Federal Labor continue

to accept his vote? We want to

know your vougts and you can

join the conversation at: Socialist leader Francois

Hollande formally takes over

saying austerity is no longer

the only option for France.

This report from the BBC. The President-elect arriving at

Socialist headquarters this

morning to begin the transition

to power. The work has begun to

form a new government and time

is short.

TRANSLATION: I have to prepare.

I told you we were ready. Now I

have to prove it. It is a new

style of leadership, more

accessible, humble, but

suddenly Mr Hollande is a torch bearer for a new path in

Europe. The headlines are

growth and employment. It makes

the financial markets nervous,

but not the French. In Paris,

broadly speaking, there is a

renewed sense of optimism I

wish to say wait and see, but I

think he has raised a lot of

hopes, yes. France will be

together with Francois Hollande

and for the crisis, I think it

should be alright. I think I'm

going to leave France and maybe

go to London because the

Socialist program is not what I really expect for

France. Francois Hollande put young French people at the

heart of his campaign, and last

night in the Bastille, they

turned up in their thousands.

They have ejected austerity and

this result will be seen as a

challenge to German leadership

of Europe.

TRANSLATION: It is a result

that gives hope to other people

throughout Europe. This change,

that we are starting. But there

is fear on the financial

markets that this election

could persuade other European

governments to deviate from

cuts and reform. Overnight the

euro slumped to its lowest ebb

in four months. The German

Chancellor was swift to react.

"it is a matter of court that

Mr Hollande will be welcomed

with open arms in Germany and

we are looking forward to

essential cooperation. It

should begin very soon," she

said. The official handover of

power will be Tuesday, 15th

May, and soon after will follow

that first keenly anticipated

meeting with the German

Chancellor. Outwardly, the

language is positive, but Mr

Hollande's strategy for a new

kind of Europe will no go down

well in Berlin. After all t

implies that Angela Merkel has

failed. The leader of the right wing New Democracy party in

Greece has told the President

he can't form a Coalition

Government. There are now fears

the country won't be able to

meet the conditions of the EU's

bailout deal. The BBC's Matthew

Price reports. There was no

sense of victory in this weary

nation today. The national

stock market plunged as the

news sank in that Greece had

voted against the bailout that

is keeping this country afloat.

The winners here, those who

say no more, those who want to tear up the bailout tear up the bailout agreement with the European Union. More

sinister, the protest vote for

the neo-Nazi party. 7% chose

them as unemployment and

poverty soar. Immigration out.

Out of my country! Out of my

home! Here, many argue this was

Brussels' doing. The austerity

imposed in return for emergency

loans simply pushed people too

far. For two years now the

people of this country have

lived with a government that

has imposed austerity on them.

Now with almost revolutionary

fervour they've said that they

will no longer accept cuts.

There is now a big challenge

coming from this country

directly to Brussels. Will the

leadership of the European

Union decide enough is enough

and change tack? The big

losers, the two parties who

dominated Greek politics for

decades pt they signed up to

the bailout and were punished

for it. Still, one of them, the

conservatives, led by Antonis

Samaras, just clung on to first

place. Today he was asked by

the President to put together a

coalition government. Business

leaders say the politicians need to act quickly. Whether

they belong to the left

spectrum, the centre spectrum

or the right spectrum, they

have to find a solution and

they have to find it fast,

otherwise we will be facing

exit from the euro. There isn't

much time. Next month Greece

needs to find billions more in

government savings. If it can't, its emergency funding

could be with held. The BBC's

Matthew Price reporting there.

We are receiving reports coming

in by the CIA thwarting a new

al-Qaeda plot to bomb an

airline flying into America. Thankfully it didn't get yopd the planning stages but

according to the Associated

Press, the plot involved an

upgrade of the underwear bomb

that failed to detonate over

Detroit in Christmas 2009. Very

early days but something that

deeply worries the C electoral

intelligence agency in the

States. It was a sophisticated

new design and meant to go off

around the first anniversary of

the killing of Osama bin Laden.

And that's an ambitious plot

that the CIA is calling from

al-Qaeda's affiliate in

Yemen. When more details of

that come to hand, we'll bring

them straight to you, but in the meantime, the Australian Defence Force is looking to

Canada as it prepares to allow

women into combat roles. Canada

opened front line positions to

women more than 20 years. The

delegation is in Australia to

share their experiences and Lyndal Curtis spoke to the Chief of the Defence Force General David Hurley about the

visit. No, look, I think the

issues are the same, but the

stresses they put on some of

them are quite interesting, and

they were particularly strong

only the role of strong

leadership, direct leadership,

that says to everybody in a

unit, "We support this fully

and we support the women that

come into the unit fully," and

now again intuitively we knew

leadership was an important

thing, but the biggest lesson,

they said if it's not

leadership from the top down in

the unit t won't work. And what

do you think are some of the

potential pitfalls that the ADF

will face in opening up combat

roles to women? Well, I think

they are some of the myths that

surround this, that women being

killing ed - women being

killed, we won't tolerate.

Women killing - are they up to

pulling the trigger. Motherhood

and services in and infantry

armed type unit. Those sorts of

views out there but hardly any

truths, I think. So listening

to the experiences of these

women, in particular, I think it will help people understand,

look, it's possible. I'm

confident we will be able to

get the right policies into

place and we will create an environment for women to environment for women to be successful if they wish to move

into combat arms. What I don't

promise is that all of a sudden

we'll have 50, 60, 70, 80 women

who are in infantry battalions.

It could be twos and threes,

but the door is open to them,

that's what I promise to

them. David Hurley speaking to

political editor Lyndal Curtis.

These are our top story this

morning - the Government is

promising to tighten financial disclosure laws after the Fair

Work Australia's report into

Health Services Union. The

report says Craig Thomson used

union money to purchase escort

services. Mr Thomson denies any

wrongdoing. The Federal

Treasurer Wayne Swan is

expected to announce tonight a

surplus of about $1.5 billion next financial year. Mr Swan

says it will be a fair-go

budget aimed at families and

low-income earners. Germany's

Chancellor Angela Merkel is

ruling out re-negotiating the

EU aet deal to bailout

faltering Eurozone economies.

The warning comes after France's President-elect

Francois Hollande announces he

wants to re-open debate on that

pact. For a look at the national newspapers we're

joined this morning by Dr Gael Jennings, the Executive

Director of media training

company, Mediadoc. Gale, nowhere else to start but on

the front pages and the fact

that it's Budget Day and the

story that's story that's dominating the

front pages is the Fair Work

Australia report.

That's right, every single

paper, actually, bar one, I

think a cross the nation is

saying that the surplus which

is very interesting and great news for the Government, hoping

to make a lynch pin of its

federal re-election campaign

next year and then all of them are offset by this absolutely

scathing Fair Work report that

of course embroils them

straightaway because it's their

suspended Federal MP Craig

Thomson is in the firing line

there. We have the thooid

'Advertiser'. If we go back to

the Adelaide 'Advertiser', we

will show that - the 'Canberra

Times', the HSU report. The

'Advertiser', and look at the relative placings of stories

there. Yes, in fact only the

'Sydney Morning Herald' which

has them the other way around,

but all the others, 'Financial Review', 'The Age', 'The Australian', 'Courier-Mail',

all of them really have the

greatest emphasis on this one. Even this particular

newspaper, which of all papers

should be having the Budget,

what's expected in it, that

surplus should be splashed over

its front page, but there you

see the Budget coverage in the

far right column, the rest dominated by the Craig Thomson affair.

And what's interesting is

that the HSU scandal broke last

night because the report was

released at 6 o'clock and it

was all over everything, well

discussed. So interesting that it's given it such high

coverage this morning. A

significant turn in at fair.

Craig Thomson continues to

strenuously deny that he has

done anything wrong, but on

face value, though allegations

about what he is said to have

done with his credit card are pretty damning And this

investigation, four years, I

think people by now really

wanted to see this report and

wanted to know the details of

it. Yes, they did. Looking at

it, the breaches being referred

to the Federal Court, but only

the civil proceedings, not

criminal, which means even if

they're found guilty, he can

still sit in Parliament, which

is quite useful for... And

civil breaches you're fined, relatively. That's right,

fined but not prevented from

sitting in Parliament. Apart

from PR wise t won't have a catastrophic effect - although,

by the time it's all done, who knows who will be in government. Speaking of

somebody with more than a

passing knowledge of pment R

and how to sell a story, this

is really bad news for the

Government as it tries to get a bounce from the Budget? Yes,

although, apart from the fact

that, yes t dominates every paper, but the coverage

actually on the surplus is actually on the surplus is very

good, on the proposed surplus

is very good. All of the papers

are saying that he is

delivering on his promise. This

is Wayne Swan the Treasurer's

fifth budget, the first since

the GFC where they've been able

to get it back into a surplus,

even though a thin surplus T

will be concentrating on

working families and welfare

recipients and places where

people really need it. There is

a small complaint, I think it's

reported in reported in the 'Financial

Review', that the business is

upset because they might lose

some of their proposed tiny tax

cut, but then a lot of the

papers are profiling the chief

of the Westpac Bank Gail Kelly

saying, "Look, guy, hands off

the Prime Minister. She is

working really constructively

with business." A very significant intervention by Gail Kelly, I would have

thought Very. Because the

Government has copped a smack

around the ears about.. Yes,

but she is quoted as but she is quoted as saying

that she has found that the

Prime Minister will is enand

she'll work constructively and she thinks that business should

do that and particularly

singling out the mining

companies as really giving

Prime Minister Gillard a very

hard time. Let's leave Budget

and HSU coverage there for a

moment, much to the relief of a

lot of people and go to the

front page of 'The Age' Which

is even more grim. A sexual

abuse of children case, it's

horrible. After all the

horrible stuff that we've been

hearing about the Catholic

Church and what's been

happening with children there,

there is a hearing in the Melbourne Magistrates Court

against a former security guard from

from a leading Jewish school

who is on 53 charges of

offences against children,

including rape. Horrible

charges, and this man was not

just a security guard, he was

also a trusted member of the

community, he would take the

kids to the local sort of baths

but they were to do with the

school, on youth camps and so

on, and - this is between 1980

- the alleged charges are

between 1982 and 1991, and when

the parents of these little

children went to the director

of the school, a leading

Australian rabbi he said,

"There is no problem. The kids

are under 8. They won't need

any kind of counselling because

they were so young." And

another time he was alleged to

have said, "Oh, I thought we

had cured him of that." So

really disturbing and horrible,

and the committal hear something proceeding in

Melbourne, and it will be

interesting to see what comes

out of that. If I may end on a

good note. Yes, please. Sure!

Also on the front page of the

'Canberra Times' is a really

cheery report that the Federal

Budget might include further

funding for maths and science

teachers in Australia and

they've got Australia's latest

Nobel Prize winner, physicist

Brian Smid in Canberra girls

High which is putting in a new

science wing. This is

incredibly important because we

have a luge decline in

enrolment and performance in

maths and science in Australia

from where we used to be really

good, to now we're not good, and computers,

telecommunications, all our

competitiveness in the future f

we have to get away from the

mines a bit has to be in this,

so this is a fantastic outcome. Yes. Gale, thank you

very much. Pleasure More

information on the breaking

news story and that's the CIA

has foiled or thwarted a new

al-Qaeda bomb plot,

Michael. That's right. They

have stopped the planning

stages of this bomb by

suspected al-Qaeda operatives,

or those linked to al-Qaeda in

Yemen, that being a hot bed of

terrorist activity of this

group, al-Shabaab, an offshoot

of al-Qaeda which has been

operating in Yemen. It was a

bomb along the lines of the

underwear bomb that was - the

underwear bomb plot which was

foiled on a plane over Des

troit in 2009. The big fears is

that there are no metal

compartments in this planned

bomb which would have made it

much easier to get through the

security gates. The FUI is

seeing whether it could have

passed through airport security

and brought down a plane. As

you say, they said it doesn't

contain metal and it wasn't

clear whether the new body

scanners which are used in many

airports would have detected it

eight. The CIA has stepped in,

eased the - they've seized the

bomb and it isn't immediately

clear what happened to the alleged bomber either. More details on

details on that, soon. Let's

change gears and good morning to Paul with the sport

headlines Good

morning. Jubilant Matt Goss

this morning Yes, the Green

Edge team has won the third

stage of the Giro D'Italia and

graen edge's maiden Grand Tour

stage win. Taylor Phinney, the

pink jersey wearer and Mark

Cavendish also you can see,

there he was caught up in that

and he has been very, very

upset by what happened. There

it is. Roberto Ferrari taking

him out. Let's look at the

rugby league from last night.

Greg Inglis had a terrific

night. He had three tries as

the Bunnies won 34-28, and

Cronulla has its problems now

with Paul Gallen limping off

injured here. We will wait to

see today how his knee it. Of course this has implications

for the State of Origin. Inglis

in great form and Gallen the

leader from the Blues not

looking good. There he goes N

the netball, Adelaide remain in second spot with a win 58-48

over the stooun. Sooun Steele. This is the Melbourne Vixens

winning easily over the

Canterbury tax tiks in Christchurch. Tactix. In

Christchurch. Back in half an

hour for an extra look at the

cycling. Thanks, Paul. Vanessa

O'Hanlon joins us with the

weather. A vigorous cold front is passing over Western Australia's south-west bringing

showers and storms, also strong

winds and it will weaken as it

heads east. The next cold front

will clip the south-west on

Wednesday, and by the time it

reaches the south-east t will

strengthen and bring a cold

change from the Southern Ocean.

In the meantime f you are in

the east, enjoy the colder

temperatures under the skies.

Up in the north, and a cyclone

that is over the Indonesian

area at the moment move down

towards our north coast and it

will become a low increasing

rain, especially over the

Kimberley's north coast. In

Queensland today:

Thanks very much, Vanessa.

Still ahead on ABC News

Breakfast we'll be talking

about tonight's Budget with

Trade Minister Craig Emerson,

and later on Innes Willox, the

chief executive of the

Australian Industry Group. When

we speak to Craig Emerson, we

will be putting the findings to him from the Fair Work report

into the HSU And also more

details on the CIA foiling a

plot over the United States

based on the underwear

technology. Back after this very short Conduct unbecoming - widespread condemnation over

findings of Craig Thomson's

misuse of union funds. The

conduct is not acceptable. The findings are extremely

disappointing and ugly, and we

are acting to fix up

governance. This Program is Captioned

Live.

Pain or gain - the Treasurer promises fairness in tonight's

Budget. The CIA foils an

al-Qaeda plot to blow up a

US-bound passenger plane. And a

Grand Tour breakthrough for

Green Edge - Matt Goss wins Stage 3 of the Giro D'Italia.

Good morning. You're watching

ABC News Breakfast on Tuesday,

8th May. I'm Karina Carvalho.

Coming up on the program, we'll be speaking to the Trade

Minister Craig Emerson about

the Fair Work Australia report

into the HSU, as well as what

we can expect from tonight's

Federal Budget. And women on

the front line. When I joined the military t never even

crossed my mind that people

would look at me as, you know,

as the weak link, so never. It

changed a bit once you see the

reaction of others, so after a

while I realised there was a perception out there that -

well, is she strong

enough? Canada has had women in

combat roles since 1989. A

delegation from there is

visiting Australia to share

their experiences with our

armed forces. We will hear from

two female officers later in

the program, but first here is

the news with Michael

Rowland Thanks, Karina. Good

morning. Let's begin with that

news story just reaching us

about an attempted al-Qaeda

terrorist attack. The CIA terrorist attack. The CIA has

foiled an attack by Iemma. US

officials say the plot involved

an upgraded version of the

underwear bomb that failed to

detonate on a jet liner back in

Christmas 2009. They say the

CIA picked up the would-be

suicide bomber before he picked

a target or bought plane

tickets. We'll have more

details on that story this hour. The Government is

planning to tighten financial

disclosure laws for unions and

boost Fair Work Australia's

powers. The report says the

for