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Tonight - the Federal Budget

breakdown, business pain while

families gain. This is a

battlers' Budget that only a Labor Government could

deliver. A surplus that is so

small it's almost invisible to

the naked eye, that's how small

it is and it's just a

forecast. Budget gloom for the

ACT with cuts to the public

service and the GST

revenue. The hour of reckoning

approaching for embattled MP

Craig Thomson. I do intend to

make a statement in the next

sitting week of Parliament. And

the litry world mourns the man

who created a children's

classic. He brings with him two

very powerful experiences, that

of the migrant and that of the

desolate child.

Good evening, and welcome to ABC News I'm Virginia

Haussegger. A battlers' Budget

or a cash splash? Wayne Swan's

5th Budget has boiled down to a

debate over payments to

families. The Opposition has

tried to block the $2 billion

school kids' bonus but failed.

That's given the Government an

early win in its campaign to

promote the Budget. But it

didn't get through the day

without a reminder in

Parliament of the trouble

facing former Labor MP Craig

Thomson. Chief political

correspondent Mark Simkin

begins our coverage. The Prime

Minister's finally got a

surplus to sell or at least the

promise of one. Her Budget is a

direct pitch to families

worried about the cost of

living. Now we can say to those

families we are spreading the benefits of the boom to

you. The question is are people

still listening. This is about

supporting families. He

certainly is. Listening but not

looking and definitely not

seeing eye to eye. Last night's

Budget was a thinly disguised

attempt to anaesthetise the

carbon tax pain. Labor's

increasing means tested family

payments giving some families

an extra $600 a year. That's on

top of the so-called school

kids' bonus and more income

support for the poor. Most of

the money comes from dumping a

1% cut in the company tax rate

saving nearly $5 billion across

the forward estimates. This is

a battlers' Budget that only a

Labor Government could deliver,

Mr Speaker. Tony Abbott says

the Coalition's likely to

support the family payments but oppose the school kids'

bonus. This school kids' bonus

doesn't have to be spent on

school. You can blow it on the

club and the pokies and things

like that. Which prompts a

question, how is it any

different to the Howard

Government's baby bow yus. Well

look, they just are. Well look,

they just are. The Shadow

Treasurer's take - There's a

vast difference. What? You have

to have a baby.

(Laughs) Apparently the Shadow

Treasurer doesn't know babies

grow into schoolchildren,

that's what happen, they grow

into schoolchildren. Despite

all the talk of a surplus

Australia's not back in the

black yet. It's actually deeper

in deficit. The surplus won't

come until next year and it's

likely to be tiny. So will the

$1.5 billion man make further

cuts if needed? Yes. Labor's

sales pitch is uf - off to a

solid start but that doesn't

mean the Government will get

the bounce it so desperately

needs. Even in the first post

Budget question time it didn't

take long for the topic to

switch from surplus to

sleaze. This member for Dobell

raked in $500,000 of HSU

members' money over a period of

time. The Member for Sturt! The

Coalition tried to force Craig

Thomson to explain himself. Key

cross-benchers looked likely to

back the motion prompting a

surprise intervention. I would

would be seeking to make a indicate to parliament that I

statement . But not until he's

gone through Fair Work

Australia's damning report into

the HSU. It's appropriate that

I have time to go through that

so I can make a comprehensive

statement to parliament which

is what I intend to do. The

long-awaited statement is now

expected in 2 weeks' time.

Despite the political

brawling, up to 1 million

families stand to get extra

payments from the Budget. But

as Greg Jenette reports the big

spending cuts the Treasurer

pulled off to get his surplus

has left some groups feeling

they're paying the price. The

Abrahams of Melbourne, two

children, one income. My role

as a stay at home mum is to

obviously bring up our children

with his support and support

him. But Bruce Abraham is paid

well above average, so what did

the Budget bring to him? I

think it was about 6 cents a

week, $3 a year. He's

philosophical about means

testing, almost resigned to

it. But it does seem that

regularly these Budgets tend to

work on the middle income

earners and perhaps those that

are a little bit higher up than

that miss out and that seems to

be the nature of the last few

years. But the Budget's cash

payment winners will include

families with 2 children in

primary and 2 in high school

earning a combined $140,000.

They stand to get an extra

$3,000 through family tax and

school bonus schemes, or a

couple with 2 teenagers on $t-

96,000 will be around $1,000 a

year better off. Passage of the

school kids' bonus means some

of the money is now in the bag.

$1 billion leaves this group

feeling better off. The

commitment that the Government have announced last night is

really a big step forward and

really will have an impact. The

disability insurance scheme has

been funded to reach 10,000

people, State money could top

it up but the Budget generally

hasn't gone down well with the

premiers. That cartoon says it

all, that's what this

Government has done. This Labor

Government's Federal Budget is

a Budget for the east coast to

be paid for by the west coast.

Simple as that. A projected $11

billion fall off in GST revenue

has added to their fiscal

fright. What I'm disappointed

about is that NSW doesn't get

its fair share of funding for

infrastructure projects, it

doesn't get its fair share of

revenue. Nor do those involved

in foreign aid think that's

getting a fair share either.

The almost $3 billion in

savings there has some aid

groups counting a cost in

will cost something like lives. We estimate that this

200,000 lives in aeria. - a

year. The world can pass

judgment when it votes on

Australia's UN Security Council

bid. For the ACT it was a case

of the morning after blues. The

Chief Minister says the

Territory has received more

than its fair share of the cuts

and it will take a toll on the

Territory's bottom line. Katy

gal Gallagher is wanting a

meeting with the Prime Minister

to voice her concerns. It's not

as bad as the Howard era of

slash and burn but no-one's

denying the public service cuts

will run deep. I think

Canberra's been asked to take

more than our fair share of the

cut. It's going to impact on

our retail sector, particularly

on our restaurant sector, it could also likely affect

housing prices. More than 4,000

Commonwealth jobs will be axed

across the country next

financial year. 1,400 of those

in Canberra. But how many more

will go in the following years

is still not clear. I can't say

that this shouldn't be

occurring, it had to occur at

some point or other. The

difference is we always said it

had to occur, Labor pretend ed

it didn't have to occur. We're

applying very measured cuts

over a period of time that

represent a small proportion of

the overall work force. And

according to Kate Lundy there

will be voluntary cuts. Pouring

salt on to the wound though,

the ACT is also losing $177

million in GST funding over

four years, forcing it to stay

in the red for longer than

expected. It's sensible to go

back to the original Budget

plan which is looking for a

surplus in that 15,16-year. To

cushion some of the blow the

ACT will adjust its own Budget

due next month and cabinet will

call on the expertise of

business to help plan a

recovery. Probably only 3 or 4

external people but I think it

will really provide us just

with that outsiders' view of

decisions that we might need to

take. I think we've got the

best opportunity of trying to

solve some of our problems.

It's not going to be easy but I

think by working together we

can get a better outcome. There

was a reprieve for some

Canberra icons. Cash-strapped

cultural intuitions are getting

$40 million but that's cold

comfort for a city undoubtedly

heading into a winter of

discontent. Now the Budget's

delivered it's a case of

getting down to business and

business is one group feeling

short-changed. Promised company

tax cuts didn't materialise at

a time when the mining and

carbon taxes are about to add

to corporate on costs. Here's

finance correspondent Philip

Laskar. A Budget the Government

described as Labor to the boot

straps was seen as putting the

boot into business. The

corporate sector's role in

wealth creation is ignored and

it seems to be regarded pretty

much as a source of funds for

wealth redistribution. There's

anger that business has been

lumbered with the carbon and

mining taxes without the

benefit of a 1% cut in the

corporate tax rate. The sense

of frustration is deepening

because business people are

realising that the Government's

commitment to spread the

benefits of the mining boom to

weaker and more vulnerable

parts of the economy is not

being delivered. Even those

riding the resources boom like Queensland-based mining

services company Chauvel

Industrial Services are not

happy. The Budget hasn't eased

the pressure on their

customers. If they get smashed

with these new taxes it's going to impact how much they're

going to spend. Although some

businesses can look forward to

their customers having more to

spend within weeks courtesy of

a near $2 billion in government

spending disguised as education

assistance and carbon tax

compensation. What is

effectively a substantial

stimulus package being proposed

will make all the difference

for the retail sector when it

starts hitting bank accounts in

the next month or so. The

Treasurer blamed the Opposition

for tor Pead o - torpedo ing

it Hence our original

commitment to cutting the

company tax rate, that not

being possible we determined

that we would spread the

benefits of the boom out to low

and middle income families

under financial pressure. But

business says the tax cuts

should have been bundled with

the mining tax. It chose to

separate the issues, it chose

to split its legislative

strategy and it left the

business community exposed. And

feeling betrayed. International

mediator Kofi Annan has warned

the UN Security Council of a

full-scale civil war in Syria.

The United Nations Arab League envoy said the level of

violence in Syria is still

unacceptable. A truce at ending

the bloodshed has failed. There

is a profound concern that the

country could otherwise descend

into full civil war and

implications of that are quite

frightening. We cannot allow

that to happen. He's warned

there might have to be changes

to his current 6-point peace

plan. Burma is poised to become

Asia's next boom economy as

international companies clamor

to invest in the previously

shuttered economy. But while

the country is resource risk

it's expected to be some time

before the Burmese people see

any economic benefits. From

Rangoon, South East Asia

correspondent Zoe Daniel

reports. All of a sudden Burma

is on the move. Rapid political

reform is bringing with it

economic change and this nation

ran ragged by repression is

finally full of possibilities.

Industries previously flattened

by trade restrictions are

preparing for an economic

revival. We are trying to

create the job opportunity for

them, the Government also, our

industry also to bring them

back. Already Australia and the

United States have eased

sanctions and the EU has

suspended all but the arms

embargo for a year. There are

visible changes on the streets

of Rangoon, new cars on the

road, new goods in the shops

and a sense of surprise among

the Burmese people, rich and

poor. I never expected that

something like this would

happen in my lifetime, I'm 60

years old now. U Moe Myint is

one of Burma's top businessman.

His oil and gas exploration

company operates one of the

country's most productive oil

fields and he finally see

aschance to truly explore the

potential of its place and

people with care. From

Australia, Woodside Petroleum,

you have BHP. I would very much

like to see countries like that

to come in and help grow our

middle class. Ordinary people

have yet to see much

improvement in their daily

lives in an economic sense.

Certainly they're freer to

speak and act than before but

they're still fundamentally

limited by poverty. With a

population of 60 to 80 million

there are predictions that

Burma could be a new Asian

tiger if reforms continue. The

party trying to form a

government in Greece has sent shockwaves through financial

markets by rejecting the country's austerity

commitments. The leader of the

left-wing zir za party Alexis

Tsipras has four days to form a

coalition. But he says he will

tear up a bailout agreement

signed last year. Another long

day of uncertainty ending, they

headed home. Still with no

government, still clear this

election had delivered a

resounding message. I think

that the right thing to do is

not pay the debts,. Not to pay

the debts at all? Yes. And this

man may be taking Greece in

that direction. Alexis Tsipras, anti-bailout leader of the

lest, was asked by the

President to form a coalition

government. He probably won't

manage but his challenge to the

European Union is clear.

TRANSLATION: The people have

voted to tear up the bailout.

Our national debt should be

internationally audited, we

should hold off paying it back,

we demand a fair solution. In

Paris the man many Greeks pin

their hopes on commemorated the

fallen of World War II

alongside his defeated rival.

French President elect Francois

Hollande has vowed to take Europe in a different

direction, fewer of the public

cuts that Greece is so weary

of, more growth. That won't

help Athens in meeting the

immediate terms of its bailout.

Some suggest that leaderless,

there's a risk that Greece

could sleep walk out of the

euro. It is more likely now

that some type of an accident

is going to happen not having

the political leadership to

keep Greece within the

Eurozone, however you have to

remember the big picture and

the big picture is that the

great majority of the people

and the great majority of the

political powers, political

parties they're very firmly

pro-European and pro-Europe. Perhaps that will

be enough but in Greece power

shifts slowly and they have

only weeks to form a government

before their next bailout

reforms have to be implemented. Canberra barrister Bernadette

Boss has been appointed the

ACT's newest magistrate. Dr

Boss is a familiar face in the

ACT courts as a barrister concentrating on criminal

cases. She's also a Colonel in

the Army Reserve and recently

returned to work in the

military. She will now be

viewing things from the other

side of the bench although she

admitted a little reluctance. I

did pause but it's something

that I really have aspired to.

It's one of those things, I

suppose, that is the pinnacle

of a legal career is to sit on

the bench. She's an experienced

criminal lawyer and military

lawyer with over a decade's

experience at the private

bar. Dr Boss will replace

Magistrate Grant Lawler who is

due to retire shortly. She will

take up her post in

June. They're among Australia's

best known cultural figures, b

now an exhibition in Canberra

is exploring a lesser known

link between the pair. The show

centres around a portrait by

artist Brett Whiteley rr

depicting writer Patrick White

at his home in Sydney. Several

practice sketches are are also

on display. The final piece

caused a rift between the pair

after White discovered the

artist had included private

information about the author in

the artwork. White focused his

disappointment in the younger

man on a list of love and hates

that Whiteley had asked White

to provide him with as

background to the portrait but

Whitely rr ended up sticking it

in the portrait himself. The

ex-Briggs runs until mid

July. A giant of children's literature Maurice Sendak has died in the United States. He

created 'Where the Wild Things

Are' and he's credited with

giving voice to the

psychological intensity of

growing up. His imagination

captured generations of young

minds and won fans in high

places. His mother called him

wild thing, and Max said, "I'll

eat you up." The fantastic tale

of a naughty boy called Max who

dreams up a world inhabited by

wild creatures is one Barack

Obama loves to read. And show

their terrible claws, where are

your terrible claws? Oh, that's

a good one. Driven by a

childhood filled with

anxieties, Maurice Sendak

refused to sugar coat what it

felt like to be a kid. It

seemed to me what childhood was

like, it was just a mess. To

not show the little tattered

edges of what life was like but

I remember what life was like

and I didn't know what else to

write about. I think he's

unbelievably important in the

whole history of children's

literature. He brings with him

two very powerful experiences -

that of the migrant and that of

the desolate child. Maurice

Sendak also had a compelling

personal story. In his later

years he came out as a gay man

and for all the lack of

sentimentality in his writing

he grew especially reflective

after the loss of his partner

of 50 years. There are so many

beautiful things in the world

which I will have to leave when

I die but I'm ready, I'm ready,

I'm ready. Maurice Sendak died

of complications from a stroke.

He was 83. To finance now and

the Australian dollar and the

share market both took a hit

today, partly because of the

political turmoil in Greece and

the change of Government in

France. As Alan Kohler reports,

the dollar is now hovering just

above parity. The dollar is now

less than a cent above parity

and looks set to break below it

in the next few days unless

there's a sudden swing back to

the right in European politics,

hardly likely. 7 months ago markets were certain that

Greece was heading for

bankruptcy and as a result the

Australian dollar fell to 95 US

cents at the start of October.

The latest sell off is more

about uncertainty than the

certainty of default in Greece

but things could firm up on

that score in the days ahead.

Nevertheless the Australian

share market has broken below

the trend line that's taken its

steadily higher since the days

of crisis in late September

last year. At the start of May

the All Ords had gone up 14%

since the start of October.

Against the 20% rise by the

global index. So far the old

rhyme sell in May and go away

is held holding true. The index

is down 3.7% this month. The

All Ords closed down 1% today

with the biggest losses

suffered by resources stocks

led by Iluka which also cuts

zircon production and was

smashed for its trouble.

Woodside and Newcrest took a

tumble today because both gold

and oil fell again overnight.

Oil in New York is down to $97

a barrel, its lowest price

since February. Here's hour how

European markets and Wall

Street finished last night. And

finally a quick look at what

Wayne Swan is up against trying

to bring home a surplus next

year. The Australian economic

surprises index is well down

into nasty surprises territory.

Treasury and the Reserve Bank have been about the most

surprised of all by the

weakness of the Australian

economy but they're sticking

with the forecast of a return

to trend growth. They will be

hoping last week's rate cut

gets this line pointing up

again. And that's finance. More

point-to-point cameras are to

be erected in Canberra's south.

From later this year drivers on Athllon Drive will have their

average speed calculated

between Drake ford Drive and

Beasley Street. The stretch was

chosen due to the high number

of accident there's in the past

few years. Lit be the second

set of cameras in the ACT.

They've been in operation on Hindmarsh Drive for several

months. Zblt the key to a

trimmer waste line could be increasing the price of junk

food. The number of Australians

with type 2 diabetes is

growing. They've suggested

drastic measures like putting a

tax on fatty foods are needed

to fight obesity. A junk food

tax has been adopted in

countries such as Hungary where

special levies are put on food

high in fat, salt and sugar.

Now it's being considered in

Australia. We estimated that

would drop everybody's wailingt

by a little bit and when we did

that we found we wuld prevent

by the year 2025 that we would

have nearly 40,000 fewer people

with diabetes. Health experts

say Australia needs a more proactive approach to prevent

patients getting type 2 diabetes. Researchers from the

Baker IDI Institute looked at

what was most effective. Intensive health coaching for

people at high risk of diabetes

or gastric banding surgery for

the obese. The report suggested

we could easily prevent 220,000

cases of type 2 diabetes if we

had a national high-risk

prevention program. Brad Oakes

was diagnosed with type 2

diabetes. Through diet and

exercise he lost 45 kg and

reversed the condition. I'm at

a stage where diabetes is not

showing up in me and it's

likely that because of the

weight I've lost, you know, and

the fact that I'm living a much


lifestyle. Researchers found

combining a junk food tax,

prevention programs and gastric

banding would prevent more than

250,000 cases of the condition

by 2025. If current trends

continue, more than 2 million

Australians will have type 2

diabetes by then. The

Australian Institute of Sport

is taking sports science to the Olympics Olympics in an effort to improve athletic performance. The AIS's Canberra recovery centre will be replicated in an East London school just outside the athletes' village during the Games. The facility aims to improve recovery and performance and give Australian athletes their best chance for success. While we see it works acutely, it's long-term as lead the team to Australia's most successful Olympic campaign. It's a time worn phrase in boxing circles, it's not the size of the dog in the fight, it's the size of the fight in the dog and it's a philosophy that sums up Tasmanian boxer Luke Jackson. Weighing in at just 60 kg, Jackson competes in the light weight division. At 27 he's off to his first Olympics and he's had to fight all the way to get there. It's been crazy the amount of work that I've done. Trained twice today, six days a week for the last four years or six years because I missed out on Beijing. Jackson grew up in Hobart's northern suburbs and admits he's come a long way from the troubled teenager who dropped out of school in Grade 9. Never even thought I would do boxing but things happen for a reason and I'm glad I took the sport up. Jackson captained

the national team at the

Commonwealth Games in Delhi and

he's been elected to reprise

the role in London. Hopefully I

can show people that boxing's a

good sport and it makes you be

a good person . It's been 24

years since Australia last won

an Olympic boxing medal but

many believe the drought will

be broken this year. Australia

has qualified fighters in all

10 weight divisions and Jackson

is quietly optimistic about is quietly optimistic about his

own chances. He's decided his

Olympic debut will also be his

swan song. My plans are to

retire from boxing after London

Olympics. Hopefully with a

medal, and focus on coaching

young kids and getting my

business up and going. But for

now his business is preparing

for the biggest fight of his

career. Electricity workers got a shock a shock when they investigated

the cause for power outage

south of Darwin. But their

shock was nothing compared to

the one the snake got. A repair

crew was checking lines along

the Arnhem highway when this

dangling reptile went up in

snock. Snakes are to blame for

about 10 outages a year in the

Northern Territory as the

reptiles climb power lines in

search of bird nests. To the search of bird nests. To the

weather now and a rather lovely autumn day in Canberra with a

higher than expected top

temperature of 22. Warmer than

forecast right around our


The satellite image is

showing a cloud band passing over South over South Australia, Victoria,

Tasmania and southern NSW. This

is due to a front and trough

triggering patchy rain and

storms. According to the

synoptic chart a high pressure system will keep eastern

Australia mostly clear and dry.

Mostly sunny right around the

nation tomorrow except Darwin:

And that's the news for now.

You've been watching the ABC's

Canberra news bulletin on ABC

1. I'm Virginia Haussegger, thanks for thanks for joining me. Stay

with us now for '7:30' with

Chris Uhlmann and we'll leave

you tonight with the military

parade on Moscow's Red Square

to mark the anverse - anvirsary

of the allied victory over Nazi

Germany. From me for now, goodnight. Closed Captions by


Welcome to 730. Tonight,

will it work? Can the

Government's battler budget win

back Labor's base. We had to

make a decision in this Budget

to get the Budget to surplus.

That's right thing to do for

our economy and it required

some tough choices. This is a

private one. Online and on tap, the pornography the pornography explosion. Once

you head down that pornographic

highway you're on a nonstop

journey. Excess viewing does

become a problem. This

Program is Captioned Live.

These are truly tumultuous

times in Federal politics. The

past few weeks have seen the

Government convulsed by scandal

surrounding Craig Thomson, the

Health Services Union, and the speaker, Peter Slipper. speaker, Peter Slipper. That renewed speculation over Julia

Gillard's leadership. As we'll

see shortly, therefore r there