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ABC News Breakfast -

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(generated from captions) Back in the black - Wayne

Swan delivers a slim surplus

with the promise of more to

come. This Budget delivers a

surplus this coming year, on

time, as promise and surpluses each year after that,

strengthening over time. This Program is Captioned

Live.

The Opposition says the

Treasurer's cut s aren't deep

enough or clear enough. It's an incredibly confused Budget. Ice

got no clear message about the

economy, it's going to

disappoint a lote of people

when they see the details. Falls on global

markets as investors worry that

Greece is about to tear up its

bail-out deal with Europe. And

the author who brought wild

things alive, Maurice Sendak

dies at 83. I do not believe

that I have ever written a

children's book. I don't know

how to write a children's book.

How do you write that?

Good morning, it's Wednesday,

9 May I'm Michael Rowland And

I'm Karina Carvalho. Welcome this special Federal Budget I'm Karina Carvalho. Welcome to

program. Wayne Swan has got his cherished surplus but business

is counting the cost. The

Federal Treasurer has forecast

a surplus of 1.5 billion

dollars next financial year,

and slim surpluses for the next

three years. Mr Swan's ditched

the company tax cuts that were set to be blocked in Parliament

and he also says the funds will

be use ed to redistribute the

benefits of the bien mining

boom. He says the Budget is a

strong endorsement of the

Australian economy. This Budget

delivers a surplus this coming

year on time, as promised and

surpluses each year after that, strengthenling over time. It

funds new cost of living relief

for Australian families. It

helps business invest, compete

and adapt to an economy in

transition and it finances bold

new policies to help

Australians with a disability,

the aged and those who cannot

afford dental care. It does

these things for a core Labor

purpose - to share the tremendous benefits of tremendous benefits of the

mining boom with more

Australians. To create more

wealth, prosperity and jobs,

spread more opportunity and

millions of families and advance the living standards of

pensioners on modest incomes. Wayne Swan delivering

his Budget speech last night.

So, the big ticket items in

this Budget et include the $3.6 billion package that Wayne Swan

call spreading the benefits of

the boom, that is aim at lower

and middle income earners. We're joined now by our political correspondent Melissa

Clarke in Canberra. Melissa,

good morning. By hook or by

crook that surplus has been

achieved. And that promise has

been kept at the expense of a

number of other promises. The

Government was going to do

everything it could to make

sure it has surplus on the book

for 2012-13 and beyond. Now it

is only by a very small margin

for 1.5 billion dollars for

2012-13, only $2 billion after

that. Even in 2 forward estimates weir only talking a

bit over $5 billion and $7

billion for the two years after

that. So these are quite small

surpluses and can be impacted

economy. That is particularly by the vagueries of the

pertinent when you consider

that for the current financial

year that we're in the deficit

at the moment, and we haven't

got to the end of the financial

year, but the deficit is at $44

billion, that twice what the

Government had forecast at this

time last year. So if you were

to have a blow-out of this

magnitude just again next year

then that surplus is well and

truly gone. Not only that, to

get to that slim $1.5 billion

surplus, not only have they had

to cut a range of promises,

they have had to do meant yf y

of shuffling around as well, there's something like $1

billion of local payments that

were meant to be next year but

they've move ed to this year to

get the numbers into line.

They're cracking down on tax cheats with the hope that that

will bring in more money. So we

have Hockey Hong saying he's -

Joe Hockey saying she not

entirely convinced the

Government can make that

surplus, even though it's

forecast one for 2012-13. This

Government is relying on a $39

billion increase in revenue

this year. $39 billion. $34

billion of extra tax this

year. And they're claiming it's

a tough Budget. It's a handout

Budget. It's an incredibly

confused Budget. It's got no

clear message about the

economy. It's going to disappoint a lot of people when

they see the details. Joe

Hockey claiming the Budget is a

bit confused. I suppose the big theme running through theme running through the

Budget is the Government's

intention of soaking the rich

and big companies in particular

and handing money back to low

and middle income and middle income earners. This

is where we see a big

Government because one of the turnaround for the Federal

key part s almost the key to

this Budget is scrapping this

plan of having a 1% reduction in the company tax rate. You

might remember that was one of

the centre pieces of the Government's mineral resources

rent tax, the minerals resource

rent tax was to take profits

from the boom and help them to

help other parts of the economy

that are suffering under high a

dollar of the economy, like

increasing superannuation

across guarantee but this 1% tax cut

across the board for all

companies. Well, facing a bit

Federal Government has decided of gridlock in Parliament, the

not to go ahead with it but instead of giving it to

businesses in some other ways they've changed tack and are now giving it to lower income

earners through an increase in

payment in the family tax

benefit part A and also through

a supplementary allowance which

goes to anyone who is currently

getting any kind of income

welfare support, so it's a big

switch of we're talking

billions of dollars instead of going directly to companies is

now going to welfare and low

income households. Business is

likely to be not too impressed

with that. They're still

wanting to see some sort of

guarantee for this company tax

cut in the future but for Labor

it hasn't really satisfied the

welfare groups either because

they were looking for a permanent increase in the New

Start in, in the dole allowance

rather than a one-off cash

bonus handout. Labor is

struggling to win on that front

even though that is a key even though that is a key to

this Budget. And also about to

feel a fair bit of pain are the States and the

Territories. This is something

that is going to have an ongoing impact because when we

talk about the revenue

writedowns and you will have

heard plenty of Wayne Swan

talking about just how much

less tax they've been able to

gather because of the ongoing

effects of the global economic

slowdown, let's take a look at

what that really means for the

bottom line. Let's take 2012-13

for example. Next financial

year, the one we're getting

back into surplus. The Federal

Government is taking in less in

tax of $7.8 billion, however

it's also paying out less in

payments, more than $4 billion,

we're talking about $4.8

billion worth less so that is effectively GST payments that

the States aren't getting

because GST revenue is not

coming in. So the Federal Government is only worse off in

the order of $2 billion or $3

billion but collectively the

States and Territories are

mission out on almost $5

billion. Keep in mind a number

of States have just handed down

their own very tough Budgets.

There may need to be some more come cuts from the States and

Territories if they are term

determined to keep their triple

A ratings in the light of these

figures. There will be further Budget analysis throughout the

program this morning including

interviews after 7 o'clock with both the Treasurer, Wayne Swan,

and the Shadow Treasurer Joe

Hockey. Now here is Karina with some of the other news. Good

morning. World stock markets

have fallen as investors worry

about Greece's ability to form

a new government. The leader of Greece's left-wing Syriza bloc

says he will try to form a Coalition based on tearing up

the term s of #2e678d U bail-out deal. Tipp Alexis

Tsipras has three days to reach

a Coalition deal. At least two

security officials have been

killed in an attack on the

Office of Police Integrity of

the Libyan Prime Minister in Tripoli. The attackers are

believed to be former rebels

who fought to topple Colonel

Gaddafi last year. They were

demanding payouts promised

under a rewards scheme. The

Prime Minister is safe but his

whereabouts are unknown. Russia's leaders have completed

their job swap with the Parliament approving Dmitry

Medvedev as the country's new

Prime Minister. The appointment

comes a day after Vladimir Putin returned to the

presidency, the job swap has

angered opponents who say power

in Russia is held within a

fight circumstance. A protest

camp that sprung up overnight

in Moscow has now been broken

up by splis. The author of the

best selling children's book

'Where the Wild Things Are' has died, aged 83 Maurice Sendak

passed away in Connecticut

after suffering a stroke.

Sendak penned an illustrated

more and 50 books throughout a

60-year career, include ing the

Little Bear series. His books

have been read by millions and translated into dozens of languages. The Federal

Opposition MP Julie Bishop says

cross-bench MP Craig Thomson

should pay back union money he

is alleged to have spent on

getting a seat in Parliament.

The Fair Work alleges that Mr

Thomson spent almost $270,000

of union money to help win the

seat of Dobell. Mr Thomson denies the denies the allegations. Let's

take a closer look at how the

uncertainty in Greece is

impacting global markets.

We can bring you some

develop ing news now that will

be big news in Victoria and

also nationally given the

national implication of this

story. That is that Victoria

Police are telling us they will

formally ask the State's

coroner to hold an inquest

regarding the deaths of Terence

and Christine Hodson. These

were police witnesses who were murdered execution style in

their home in the Melbourne

suburb of queue back in 2004.

Lots of speculation has swirled

about this case in many years.

At one stage former police

officer Paul Dale was

implicated in that case but

that case against him collapsed

and we're awaiting news to

confirm that inquest into -

inquest into this unsolved

murder of this couple is about

to resume in Victoria. More

details later in the program.

More details are emerging about

that foiled al-Qaeda plot in

Yemen to blow up a plane using

an underwear bomb. US officials

won't say what happened to the

would-be bomber or whether

others are still at large. But

officials say the bomb was

seized in Egypt 10 days ago

after a tip-off from a spy who

had infiltrated the terror cell. The US Secretary of State, Hillary Clinton, says the plot shows al-Qaeda's determination. As the White

House said, the device did not

appear to pose a threat to the

public air service, but the

plot itself indicates that

these terrorists keep trying,

they keep trying to device more

and more perverse and terrible

ways to kill innocent people

and it's a reminder as to why

we have to remain vigilant at

home and abroad in protecting

our nation and in protect ing

friendly nations and peoples

like India and others. The US Secretary of State, Hillary

Clinton, there. Let's look at

the front pages of the major

newspapers around the country

which of course are dominated

by Federal Budget coverage. The

'Courier Mail' leads with Wayne

Swan delivering Labor's

cherished Budget surplus amid

growing storm clouds that

threaten the Government's future. 'The Daily Telegraph'

says the Treasurer has promised

a wafer thin surplus after a

savage round of cuts aimed at

the rich and big business. The

'Australian' reports Labor has #1cr57d its plan to cut

business taxes and will instead

pour $5 billion into its electoral heartland. The 'Financial Review' has the head

Lyne tricks, cuts and handouts

saying Labor has dumped company

taxes for so-called battler age cash. The 'Age' features a special wrap around that

reports on low and Liddell

income earners. The 'Herald

Sun' says battling family also

get a bribe of up to $600 to

mask the pain of Tim pending

carbon tax. The 'Advertiser'

reports more than $1.5 - 1.5

million families will get extra

money at the expense of tax cut

force businesses. The 'Canberra

Times' says thousand of public servants will lose their job bs

to get the economy back into

black. The mer I can points to

the high road, highlight ing

the State's battle against a

$515 million shortfall: The

'West Australian' says the

victim of a Perth sex predator

fears the man will strike again. The 'Northern Territory News' reports on a horror day

on the roads, that's left three

people dead. OK, over to you.

You've seen the Budget. You've

seen the various details - the

god good and the bad. What do

you like about the budge? Do

you think the handouts are a

good thing and do you think

they will help to ease the pain

of the cost of living as a

result of the carbon tax and do

you believe this surplus will

be snbl the face of still very

strong head winds. Lots of doubts as to whether that

target will be achieved come

this time next year. And whether in fact you think it's something the Government should

have been aiming for in the

first place and interestingly

lots of the little details

about this Budget are the

things that people have picked

up on and are making jokes

about, inl including the pig

slaughter y is which is going

up. The bacon tax. And on

twitter cash tag bacon tax has

gone a little bit crazy. We

will get to some of the more

obscure stuff later in the

program like the decrease in

the amount of duty free

cigarettes you can bring into

the country and the tax axe Og

after range of alternative

medicines from health insurance

coverage. We would like to hear

from you? We would like to hear your views.

Let's take a quick look at the weather around the country.

The top stories on ABC News

Breakfast this morning - the Federal Treasurer has forecast

a surplus of $1.5 billion next

financial year and splim surpluses for the next three

years. Mr Swan's ditched the

company tax cuts that were said to be blocked in Parliament and

says the funds will now be used

to redistribute the benefits of

the mining boom. The Opposition

says the Budget isn't tough

enough. World stock markets

have fallen as investors worry

about Greece's ability to form

a new government. The leader of

Greece's left-wing Syriza bloc

says he will try to form a

Coalition based on tearing up

the terms of the EU bail-out

deal. And the author of the

best selling children's book 'Where the Wild Things Are' has

died, aged 83. Maurice Sendak passed away in a Connecticut

home after suffering a stroke.

He wrote and illustrated more

than 50 books including the

acclaimed Little Bear series. Let's look at the markets

now. The dhow last 76 points

despite a late recovery.

Let's take a closer look

now at what's in the Budget for

business. First, the 1% cut in

company tax haw has now been officially dumped. The

Government blames the Greens

and the the Opposition for

blocking it. Next year the

business s will be able to

access the loss carry-back

scheme which let s's them scheme which let s's them claim

a deduction against last tax

deductions. And they will have

instant asset write-off up to

$6500. A small business

commissioner will act as one

stop shop for service and information. Rod North is the investor director of Bourse Communications he joins news

the communications. Good

morning, how are you Tell us,

that company tax cut that's now

been scrapped. What kind of an

impact will that have? That has

come as a bit of a surprise to

business because effectively

small business represents

something like 2.7 million businesses around Australia and

that is the 80% of Australia

that is part of the two-speed

economy that probably isn't f

benefitting. One of the things

that is disappointing is the

Henry review on tax made it

pretty clear that over the

median term the company tax

rate should come down to 25%

and it's currently 30. So the

fact that that is not going to

occur sends a few sig mal nals

to small business that perhaps

it's going to be tough for the

next six to 12 months. I am

still looking at this Budget

trying to key where it will

create job over the next six to

the 12 months, that is one of

the key things where we need to

be concerned. We have seen the employment rate around the 5.2%

rate which is not too bad but

unless we're giving incentives

particularly to that part of

the economy, that 80% of the

economy, that 2-speed part of the economy that submissioning

out it will create some

problems moving ahead. When

you're dealing with a wafer

thin surplus of $1.5 billion -

it's interesting that even in

the current period up to 30

June this year the Budget

blow-out for the deficit has

blown out from $20 million to

$44 billion. So where are we

going to be this time next year

heading to June 2013 trying to

see a surplus of $1.5

billion? I just think it's

going to be a difficult ask,

against a backdrop of more

trouble potentially in the

Eurozone and some signs are a

bit concerning in the US,

particularly last Friday on the

jobs numbers. So we have a few

trip wrier wires ahead of the next

next six months. So you think

that is something of a he row

yk forecast? I think it's

pretty heroic. Given the Budget

deficit for this year was $20

billion and it's blown out to

$44 billion I find it

incredible to think that we can

get a surplus in 2012-13 of

$1.5 billion. That is a pretty

wafer thin position with the

fact that we've got Eurozone

issues unresolved, now we have

a new Government government

Greece. We have a change in France. The whole focus on

Eurozone comes back. The dent

issues haven't been resolved

there and we've also got the US

still trying to effect recover

y but it's still shaky. It puts

our economy in a vulnerable

position I would have thought.

One of the key things is to

create jobs and the fact that

that 1% company tax rate being

dropped hasn't happen and that

will create a bit of problem

for us. The Government has been

trumping up the loss carryback

scheme as a way of helping sml businesses that are in

trouble. I think creates a bit

of incentive for some

businesses, those that perhaps

have losses knew now that can

offset against profits in

reffous years. Of course that

doesn't help the successful

businesses at the moment. It's

a bit of take with one hand and give back with the other but

props it's not an even give

back in my view. How do you

think market also react? I

think markets will react a bit

softer. I expect the Australian share

share market will drop 50

points or so. Largely off the

back of the sort of overall

world position but I think that

the view is going to be we need

to sow see how this will work

and whether it can be achieved

or not in terms of that

surplus. Rod North, thank

you. Thanks very much. The

whole morning is not going to

be dominated - oor not going to

be wholly devoted to the

Budget., is it, Michael? I am

glad you said that. But we have

some news coming out of the United States that the

acclaimed children's author

Maurice Sendak has died at the

age of 83 after complication s

from a stroke that he suffered

a little while ago. Now,

Maurice Sendak, the author of

'Where the Wild Things Are', an

absolute children's absolute children's graifrt favourite although he says he didn't write children's

books. , no he wrote books that

he felt were just adult books

that appealed to children. He was the

was the awe sthor of other

hugely popular books over the

years like In 2 Night, Little

Bear, his books very read in

White House events by various

President and I have to say

both as child and as a parent

read ing those books to my

children I think this is a huge

loss. He was a fantastic

author. Sometimes disturbing, we're seeing a picture of that

at the moment, the wild rumpus beginning in 'Where the Wild

Things Are', that story that captivated generation of

children and at the same time

scared their parents! The book

was made two a film which was

directed by Spike Jones in

2009. I also sold more than 19

million copies worldwide which

is just extraordinary. Maurice

Sendak was born in 1928, he was raised in Brooklyn by

Jewish-Polish immigrant

parents. He was obviously born

during the Great Depression and

sad ly much of his extended

family in Europe died in the

Holocaust. I just have to do it

a couple of times - the opening

line in 'Where the Wild Things

Are' has always been a classic.

The night Max wore his wolf

suit and made miss chief of one

thing or another, - You have

lucky kids. You have a great

voice to do that. Wait till I

get to my monster voice.

Somebody with a monster voice

is Andrew Arthur: I have heard

you growl. I don't know that I do! Bernard Tomic was certainly

growling at an unfortunate loss

overnight. He would have overnight. He would have been

disappointed with this

one. Absolutely. He did come

off a tournament this week.

Bernard Tomic lost his first

round nach the Madrid open. He

was playing Radek Stepanek, and

he lost 6-2, 7-5. More on that match later in the program. We

will to rugby league and

Brisbane Broncos forward Petero

Civoniceva is hopeful of laying

in one last origin series

before he retire s. The

36-year-old has played nearly

300 games most with the Broncos

and the rest with the Penrith Panthers. Civoniceva said he made the decision to quait

because the time is right for

him to make way for young,

talented players. He says he's

put his hand up for one last

run with the Maroons You would

like to think you could keep

going on forever but I think

the time is right for me to

step into the next stage of my

life. I think it's more so

timing wise. I don't want to

overstay my welcome. I think

I've been very fortunate with

the career I've had. I've been

very lucky with the amount of

NRL games I've been able to

play, the rep career I've had

and it's about making a small

decision about moving on and

we're very fortunate in our

game we have so many good young

forwards coming through it's

now their time. I have had my

time. My focus now is just

continuing to play the best

football possible for the

Broncos and into latter stages

of the season. I have put my

hand up for it. Again, all I

can do is concentrate on my own

form and let origin selection

with be the job of the

selectors. It is not a real

concern to me at the moment.

For me, the focus is playing

the best football possible for

the Broncos. The Melbourne hearth's new coach John Aloisi

has decleared le want s to win

the A-League title in his fir

years. Aloisi was all smiles after his appointment. He's had

one year as an assistant coach

but he says he's learned from some of the best in the business. Aloisi has 3-year

contract. With the coaches that we've already got there we're

confident that with any talent

thrown at us we have enough experience to be able to deal with. I know that everyone

talks about young coaches

coming in, the AFL do it well,

coaches in Europe continental

Europe do it well. And Tony

acontinue yu, he just won the

Lille league with Juventus in

his first season. I am not

saying that is going to happen

here. That is our goal. We want

to be successful. And I believe we will be successful. So the

inexperience is not going to be

a problem. Cycling Matt Goss

says Australia's GreenEDGE team

is well placed to win more

stages on the Tour d'Italia. The 25-year-old Tasmanian

sprinter secured the team's first grand tour win in the

last stage, Goss says the steam

focussed on finding another win

and they could do it in

Italy. Ice rel Really nice b

being close to about a week and

two weeks now that we're

definitely nice to get the

first win for GreenEDGE in a

grand tour. Nice day. You've

had a couple of grand tour wins

but it is the first for the

team. What does that mean for

the team? I guess it's a bit of

a realisation of the goals we

set out at the start of the

year. They included to be

successful in the classics with

Simon Gerrans achieved that and

to try to win stages in the

grand tours. We've managed to

pick up a grand tour stage win

on just the second road stage.

So it's really great for myself

and for the team. It seems like success is coming almost too

easy for the team. Think next

year could be scary. We had all

the success this year. It will

be hard to back up and go

better. It's been a dream come

true, the start to the season

has been fantastic and we're

not even half way yet.

Hopefully the run of success

continues. What is the plan for

the rest of the tour for the

team? I guess the same thing as

hen we come into the race, we

still want stage wince. We have

a couple to pick out and

target. There's a lot more

sprint days and undulating day

s will be good for the team. We

will chip away at trying to do

what we can and that is to have

success in the stages: It is

nice to have one stage behind

us to take some stress off. But

we're definitely looking

forward to the next stage

now. That is all the sport for now. See you next hour. Now ABC

News Breakfast can be watched

live on the web. Just visit the

main ABC News website and you

will find a link to News 24

which is streamed live every

day. For a look at how your

wealth ser shaping up today,

here is Vanessa O'Hanlon. Good

morning. Pretty simple equation

today. The country is being

dominate bade high pressure

system. And it's pretty clear

on the satellite image. There's

very little cloud in the North

we have some, this is

associated with a low and

increasing rain about the

Northern Territory's coast

Lyne. At the moment, the high

pressure system that is centred

over inland NSW is the dominant

feature and although a thereof

and cold front are pushing

isolated showers into parts of

SA, Victoria and Tasmania, that

high is keeping the fronts well

down to the south. A cold front

has already dropped the

temperature in SA, we will have

a similar front early tomorrow morning and then on Friday

we've got the big one with that

weakened high, a strong cold front will cross over the south-east. And then associated

low will deepen down near

southern Tasmania and this will

bring a very cold south-westerly change. In Queensland - You're watching a

special Federal Budget edition

of ABC News Breakfast. We will

be speaking to both the

Treasurer Wayne Swan and the

Shadow Treasurer Joe Hockey in

the next hour. Shortly we will

be joined by the CEO of World Vision Australia Tim Costello

to discuss the cuts to foreign

aid. But first the

news. Thanks. Leading the news this morning the this morning the Federal Treasurer has forecast a

surplus of $1.5 billion next financial year and slim

surpluses for the next three

years. Mr Swan's ditched

proposed company tax cuts an

will use those benefits to

spread the mining boom. That

include. The Opposition says

it's a handout Budget and far

too reliant on the assumption

that tax revenue will

increase. The Shadow Treasurer

Joe Hockey says overall the

savings aren't the tough love

that Wayne Swan promised and hi

should have gone much harder.

Now businesses are hit out at

the decision to abandon the

promised cut to company tax

rates that is worth nearly $5

billion over four years an

employers say the Government

has skewed the Budget towards

social rather than business

needs. To other news an

Victoria Police will formally a

Ask the coroner to hold an

inquest into the deaths of

police informer Terence Hodson

and his wife Christine. -

Christine. The couple before

murdered in their home in 2004

fort shortly before he was to

give evidence at a police

corruption trial. World stock

markets have fallen as

investors worry about Greece's

ability to form a new

government. The leader of

Greece's left-wing Syriza bloc

says he will try to form a

coalition based on tearing up

the terms of te. The v the EU

bail-out deal. Let's deet Get

more detail on how the Budget

affects Australia's foreign aid

commitments. The Government

pledged to double foreign aid

by 2015 to 2016. But that's

been deferred by one year. Now

that is likely to save the Government 2.9 billion dollars

over four years. The aid Budget

is predict ed to go from 4.8

billion dollars in 2011-12 to

$7.7 billion in four years time. The Reverend Tim

Costello is the CEO of World

Vision Australia and the chair

of the Community Council for

Australia and he joins news the

studio this morning. Good

morning. Good morning. It is early. Great to be with

you. These aid cuts have been

fore shadow and were very much

upsetting the charity and foreign aid community. How

disappointed you that the Government followed through on

this? We're disappointed. We

know from early leaks it could

have been much worse ft. So there's a I think the to be

wait grateful it's only thing.

We decided to achieve the millennium development goals

with 190 other nation. When we

signed up for 2015 we rich

nations were to give 70 cents

in every $100. With this aid

cut we're just give ing 35

cents. Compared to the British,

now here is leadership, they

have double dip have double dip recession

they're at 0.5 already. They

have legislated to be at 0.7 by

2013. And a Conservative leader said we won't balance the books

on the backs of the poor. Now

that is what the world expected

of Australia. And they're going

to raise an eyebrow that we

reneged. That is disappointing. We haven't officially reneged wefrmt will

get to the target but take a bit longer to get there. Sadly

it was bipartisan. When

Australians are grumpy about

polar ised adversarial politics

it was good news that aid was

above politics. Now break ing

the bipartisanship and I suss

sadly the Opposition will join

is is a spiralling

douvernlt Whilst we're happy

that at least some dollars rin

creetion we know this literally

saves lives. That's why we made

our promise to the world, to

the United Nations, to the

poor, and that's why so many young people campaigned on

this. But they actually said

this is what aution stands

for. But the bipartisanship

hasn't been broken because the

Opposition has come out and

said that it in fact supports

these cut s? It's a

bipartisanship going totally

against their promises and why bipartisanship was important

was it allowed you to increase,

it's bipartisan in Britain, so

a Conservative Government slash

and burned everything because

of double dip recession but

they said we're ring fencing

aid and because it was

bipartisan the Brits, who are

hurting, said that is right. We

know we still are bless and the

poor are really hurting. In

does cost lives. We will break

it down in tax. What do you see

is going to be the cost of

delaying our commitments here

in those communities we try to

help? We estimate that this

will cost something like

$200,000 - 200,000 lives a

year. Because the mill yam

development goal's focus, the

number of children dying each

day was 30,000 two years ago.

It's down to 20,000 because

we've had the millennium

development goal because the

world has agree and countries like Britain until now Australia have been keeping

their promises. Its impact on

those who are drying to live on

$1.25 is very significant because just try to do it.

because just try to do it. You

don't have clean water or

enough food. That is why churches and young people

particularly campaign for this.

This was huge achievement this

bipartisan promise of 0.5. By

the way we conceded say ing are

not going to make 0.7 which is

what your proumis is. 0.5 that

is good. For it to be rush

pushed out again it's like how

can Australia that escaped the

global financial crisis justify

it? That will be the question

in international ranks. Where

does this leave Australia in

terms of those rankings in OECD countries and the contribution that it's making? We're ranked

at 13th now so it's 35 cents

when we promised 70 cents. The Scandinavian countries are at

70%, the Brit s will be at 7

ocents in $100 by 2013. So

we're about 13th. If it keeps

increasing, we will goe up that

table, maybe up to sixth

position which is really

important not just because of

saving lives but most of the

world's poor are in our region.

That is who we trade. With

that's why it's such an

important signal that we keep

our promises. Tim Costello,

thank you for your time this

morning: It's a pleasure. Now

let's stay with the Budget and

take a closer look at the Federal Treasurer's economic forecasts. Wayne

forecasts. Wayne Swan has

unveiled a Budget surplus of

$1.5 billion for theer fo the

next financial year. That will

increase to $2 billion the

following year and $5.3 billion

the year after. Economic growth

is forecast at 3.25% for the

next year, falling to 3% in the

year after. Unemployment of

5.5% is forecast for the next

financial year and inflation is

to hit 3.25%, dropping to 2.5%

the year after. For more, Melissa Clarke

Melissa Clarke our political

correspondent joins us now from

Canberra. Good morning. You

were no doubt looking through

all the details of this well

into the night last night. And

the Treasurer has confirmed

that promise of a Budget surplus? In fact they have gone

all out to make sure they keep

that promise of surplus to the

point of Jetsoning a number of

other prom itses in order to

get that Budget back to that $1.5 billion surplus they

forekasz for 2012-13, and very

small and modest surpluses for

the following years after that

as well. It's taken quite a bit

to get to that point, in the

order of $33 billion worth of

savings. It's worth savings. It's worth just looking at some of the measures

it's taken to get to $33

billion worth of savings. At

the top of the list is clearly

defence. We're talking more

thabt $5 billion worth of

savings from defence, there's

also 4.8 billion dollars from

scrapping the planned company

tax cut which has been a big turnaround

turnaround in promise, $2.9 billion from deferring that promised increase in foreign

aid that we just heard Tim

Costello say is going to have a

very big impact. And also more

than $2 billion by dumping a

plomis for stand standard tax

deductss, so this is the tick

and flick tax return you were

meant to be able to post and

there's $1.4 billion by deferring tax breaks for

superannuation contributions by

older Australians. So there are

a numb of key promises there

that have been scrapped or

deferred in order that the

Federal Government can meet

this one over arching promise of returning to surplusful and

it shows how much of an

imperative the Federal

Government feels it is to reach

that surplus. The questions

then becomes whether you

believe the Federal Government

nait's an economic imperative

to get there or you believe it

you believe the Opposition. The

deficit for this financial deficit for this financial year

has doubled on initial forecast

and will be at $44

billion. That's right. When

we're talking a year ago they

were say ing it could be in a

deficit with a $20 million. Sml

when we had the mid-year Budget

they said Said it was would be

a deficit of $37 billion and

now it's $44 billion for this

year. So you can see how much

can change in the space of 12

month and the last 12 months

were not the most turbulent we

have had in the last few years.

It is very minor in terms of

the amount of gap that that it

would take for suddenly for

that $1.5 billion surplus to

disappear. And that is what certainly makes it difficult for the Federal Government to

be sure that it can actually

get to that point. So it

becomes curious that they becomes curious that they are willing to sacrifice some of

those other promises. The

company tax in particular I

think is worth worth pointing

out that this is one that the

Government had prom itsed would

help turnaround the negative

impacts of the mining boom it would help spread the benefits

of the mining boom to other

businesses in the economy, by

giving them all a tax break.

Instead that money is now going directly to households through

an increase in the family tax

benefit AI amounts and supplementary payments for

income welfare recipients

too. So that is a very big

change in agenda as much as a

change in a promise, now

despite this, and despite the

difficulties that the

Government is having getting

some of these changes through

Parliament, that is the reason

given for dropping that company

tax cut in the first place, the

likes of the independent likes of the independent MP Rob Oakeshott have made it clear

that they're fair ly certain

that most of this Budget will

get through the Parliament

without too much grand without too much grand bargain

having to go on from the

Coalition and the cross

benches. Let's hear briefly

from Rob Oakeshott. There's There's a

few things in there that I

would disagree with and you

would prioritise differently.

But in the end this is a tight

Parliament, a tight Budget, and

if you're asking me will this

pass on first blush, personally

I think it will pass without

too much interference from

Coalition Green taskforce cross benches. Independent MP Rob Oakeshott. Melissa Clarke we

will come back to you later in

the morning.

Let's move away from the

Budget for a moment and to a

story about driverless cars

which could soon be speeding

along the freeways of America

and perhaps here. The State of

Nevada in the US is

A-lowing Google's self-

driving car to travel along

public roads. The vehicle uses

Intel swrent driving software,

proximity sensors an GPS data

to figure out how to get one fr from one point to the other.

The only catch is two people

must be present in the vehicle.

One behind in the wheel and one

in the passengers seat. So what

is the point if do you just sit

there like that, drive on. Have

a few drink, let the car drive

you home - of coffee! It has

been trialed in I along Las

Vegas's famous strip. We're

also told that trial car has

covered about 225,000km with no

accident s other than a bump at

traffic lights from a car behind. There are other

benefits to be had here, road

rage would be out. Or minimised

anyway, the driver is still

behind the wheel. If we get to the eventual stage of having no

drivers at all, there will no

more talktive taxi drivers, you

can hop in a car talk to a

xiefrt and it can take you home. I think the capabilities

are enormous here. You probably

almost wouldn't need taxis then

wouldn't you. No, you wouldn't.

Very good poivenlt I think for

me it would be great because I

am Knott a very good driver! If

someone else can do that for

me. Take me home James and off

you go. You're an early

adapter. Yes: I will get one of

those when they come! Now the

creator of the best selling children's book 'Where the Wild

Things Are', Maurice Sendak,

has died aged 83. A while ago

he spoke to Britain's Tate muex

and touched on his life as an

author. Artists have to take a

dive and either you hit your

head on a rock and you split

your skull and you die, or that

blow to the head is so

inspiring that you come back up

and do the best work you ever

did. But you have to take the

dive. And you do not know what

the result will be. I do not

believe that I have ever

written a children's book. I don't know how to write a

children's book. How do you

write about it? How do you set

out to write a children's

book? The lie, I don't believe

in the words, I don't believe

in these clubs, so I am much

luckier than Herman Melville

ever was or William Blake ever

was, but I still suffer from

one thing they suffered from.

My books are really books that

are impressed and loved with

the memory of comics and how

important they were to me as a

child. I did live across the

street from a Baptistry, I

didn't live near any famous

person. I just lived in

Brooklyn where everything was

ordinary and yet enticing and

exciting and be wildering. The

magic of childhood is the strange

strange different childhood,

the uniqueness that makes us

see things that other people don't see. Maurice Sendak,

dead at the age of 83.

Certainly he formed a very big

part of my life both as a child

reading his books and as a

parent reading his books to my

children and a big part in many

of your lives as well. We would like to hear from your views

about Maurice Sendak. Please

drop us a line. But let drop us a line. But let the

wild Budget rumpus begin now. You're watching ABC News Breakfast. These are our top

storiesd Treasurer Wayne Swan has forecast a surplus of $1.5

billion next financial year and

splim surplus force the next

three years. Mr Swan has

ditched the company tax to

spread the benefits of the mining boom. The Opposition

says the Budget is not tough

enough. Victoria Police are the

to ask the coroner to hold an n

quest into the deaths of former

police informant Terence Hodson

and his wife Christian. The

couple were murdered in their

home in 2004 Shortly before

Hodson was to give evidence in

a major police corruption

trial. And as we mentioned the

author of the best selling children children's book 'Where

the Wild Things Are' has died

aged 8 3. Maurice Sendak passed

away in Connecticut after

suffering a stroke. He wrote

and illustrated more than 50

books including the acclaimed

Little Bear series. Now for a look at the national

newspapers this morning we're joined by the chief executive

of Inside PR Mike Smith. Good

morning. Good morning, Karina.

Good morning Michael. Sew weir

going to sport today? It's

Budget day, it the big set

piece for the papers. They've

played to role as well, both

broad sheets an tabloids. I think there is a clear

distinction between the

tabloids and the broad

sheets. I think the Government

won't be un happy with the

newspaper coverage this morning. Nobody is saying morning. Nobody is saying the Budget is economically

reckless. And the Budget is

clearly aimed at the rusted on Labor heartland plus the

million or so other voters who

have dropped off Labor have dropped off Labor since the last election. The papers

that talk to those two groups

are the Murdoch tabloids around

if country. And if you look at the front pages of those papers

they're the biggest selling papers in the country it's got

a lot of the Government's key

messages. The 'Herald Sun' cash

for votes, big emphasis on

money for families. In Sydney, 'The Daily Telegraph', very

clever head Lyne - Black Swan

in cash splash, that is a

lovely image. And over in Adelaide another example of

these Murdoch tabloids - family

first, they're all good

positive messages from the

Government's point of view. Not

so happy inside for the

Government but even the main

commentator for those papers,

Terry McCrann, who appears in

all the Murdoch tabloids across

the country, he has a total

readership of probably and 3

billion Australians he is in

all those papers saying it's all those papers saying it's a Robin Hood Budget. Labor

Treasurer Treasurers don't mind

being likened to Robin Hood.

Terry has some criticism toofs Budget too including the

assumptions and the figures and

taking from the future to pay

for the present. But on balance

he says no major harm done. And

for McCrann that is faint praise but it's significant

praise, given his track record on government economic

policy. Indeed and the

Government should be happy if

readers were happy about the

various cash handouts and put aside for a moment their disgruntle ment with the

Government on a number of other

fronts and where that tabloid

coverage is aimed at achieving

that? It is and you can never underestimate the power of

those nish messages on the

friefblings the tabloids.

Inside they get a bit nasty for

the Government. The news

psychle is so compressed now.

It used to be one or two weeks

an now it's gone within 72 hours: Those messages are

important. The broad sheets are

of course not as kind to the

Government. They are playing to

a their audience. The national papers in particular. The

'Australian' is very strong

front page head Lyne - smash

the rich, save the base. It's a

very strong head Lyne but again it's probably something given

Labor's predicament at Labor's predicament at the

moment I don't mind that

message going out there because

part of the Government's

political strategy is to at

least stave base. They're down

to 30%. If they go

significantly under that, if

they start to lose those

people, they're looking at Queensland. So that is their

first priority to stave

base. It the portrayal of

commissar Wayne Swan on the

front page. Very rugged. It is.

But even in the 'Australian' there is some begrudging

respect in their editorial.

They say that Swan deserves

praise for bring ing the Budget

back into surplus. Of course

they have a lot of criticism

too. Of course the

'Financial Review' is focusing

on its own constituency -

business - be with lots of

headlines about how business is

being smashed. Business left on

the side Lynes and other

similar head Lynes along those

lines. I think the 'Fin Review'

has done a good job. They have

a terrific supplement, it's

well designed, probably more

economic and business analysis

in there than any of the

papers. It and it's their first

Budget outing for their role

tiff Uli new editor? The 'Fin

Review' is showing some really

good science of revival of

quite a few years being

down. What do you make of the

labelling of it as sharing the

benefits of the boom pack age

I, which is that $5 billion

that is going to families? That

is one of the few new things

that we didn't know about.

Newspaper coverage of Budgets

hasn't changed much but Budgets

themselves have. No Budget - I

can't think of a Budget since

198 owhen Laurie Oakes got the

lot two days in advance. Where

more of the Budget has been

leaked but that extra $5

billion that sick kicks in next

year is one of the very few new

things we didn't know about

last night. There's some

disturbing imagery in both

cartoon form and photographic form in the 'Financial

Review'? My favourite cartoon

is David Rowe in the 'Fin Review'. He has Wayne Swan

getting ready to do the hair of Australia's most favourite Australia's most favourite red

head. If you look at some of

those secondary images she has

a rat on her head tabled HSU and there's Peter Slipper at

the door in a black coat and

it's a driver asking to hail a

cab. So many subtexts in the

the one cartoon. And. And Swan is saying Black might really

suit you. Let's get on the what

I think is the really

disturbing image in the

'Financial Review'. One of the

features of the 'Fin Review' is

to run full length photographs

of people featured in each

story. This is a very curious

picture of Joe Hockey carrying

a stock whip. What was he thinking? Land that come back

to haunt him?. I am thinking

fish hets and Alexander

Downer. It's probably not quite

on that level. I see what

they're trying to get across.

Joe Hockey has criticised the

Budget and we will talk about

it with him and he wants to

crack the whip. But there's a

jump between saying that and

holding a bull whip. Keep that

one in the bottom drawer. You

brought up the Rowe cartoon

from the 'Financial Review'

which had the HSU elements and

the Peter Slipper elements. The

Government will be happy if anything that the Budget has been talked about on the front

pages and not those two

issues I think they will be very happy with the coverage.

But as we've said, the news

cycle keeps getting shorter and

shorter and there's plenty of

gas left in both those stories

- Craig Thomson and Peter Slipper. I am sure they will be

back on the front pages soon. And the way it works is

it will be very soon. There's the traditional post Budget address to the Press Club by

the Treasurer today. We have

Tony Abbott's Budget re Tony Abbott's Budget re reply on Thursday and then back to

the grubby business of

politics. Back to the issues

that have been consume ing the

Government for nearly a year

now. Mike Smith, thank

you. Thank you. Time to touch

base with all that's making

news in the world of sport.

Good morning to Andrew

Arthur. Let's start with

tennis. Bernard Tomic has lost

his first round match in the

Madrid Open. He lost to Czech

veteran Radek Stepanek 6-2,

7-5. We will bring more of that match later in the program.

Federal's Greg Broughton has been cleared by the AFL

tribunal of a rough conduct

charge. Broughton was cited by

the match review panel for

sliding into the legislation of

David Swallow on Saturday

night. He risk add week's

suspension by contesting the

charge. The doct doctors

successfully argued Broughton

wasn't sliding into the contest

and that intalo actually made contact with him. Petero

Civoniceva is hopeful of

playing in one last Origin

season before he retires. The

36-year-old has played nearly

300 becames, most with the

Brisbane Broncos. A few with

the Penrith Panthers.

Civoniceva says he made the

decision to retire because the

time is right for him to make

way for youngtalened

players. And cyclist Matt Goss says Australia's GreenEDGE team

is well placed to win more the

'Age's on the Tour dit Allah.

The 25-year-old Tasmanian

sprinter stured the first - d

Italia. The team is focussed on

finding another one. We still

want stage wince. We will have

a couple to target and there's

there's a lot mover sprint days

an undulating day s will be

good for the team. We will keep

chipping away at trying to do

what we came here to do and

that is to have success in the stages. There's probably and four or five good sprint days

an a couple of undulating winch

once. The sprint daysly be up

there trying and I the

undulating ones probably suit

me a bit better. So they're the

ones I target. That is all the sport

sport for now. See you soon. Soon. Thank you for braik

breaking up the Budget coverage

with that sporting oasis

calm. I might try to find some

related stories later: Now for

the weather. Thick cloud in the

tropics this is associated with

a low pressure cell, a

secondary low will develop on Thursday and the lowliness

crease rain over the coming

days. We see patchy cloud that

is moving over SA, Victoria and

Tasmania a series of gold

fronts. But skies are clear

elsewhere under a dominant high

pressure system. This will weak

en by Friday and allow a strong

cold front pass. Then we will

have an associated low

developing near Tasmania Friday

night. So very cold and wet weather across the weekend.

Especially in Tasmania. For Queensland today -

Lots ahead in our special Budget ae decision Budget ae decision of ABC News Breakfast. After 7 o'clock we

will speak to the Federal

Treasurer Wayne Swan and the

Shadow Treasurer Joe Hockey about their respective about their respective views of

the Budget as well as getting

the views of the various

interest groups afbtd by what

Wayne Swan announced We will

speak to business, unions and to superannuation bring stris. Stay with us on ABC News Breakfast.

Back in the black - Wayne Swan delivers a slim surplus with

with a promise of more to

come. This Budget delivers a

surplus this coming year on

time, as promised, and surplus

each year after tha