Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Disclaimer: The Parliamentary Library does not warrant the accuracy of closed captions. These are derived automatically from the broadcaster's signal.
ABC News Breakfast -

View in ParlView

(generated from captions) The

former News International boss

Rebekah Brooks charged with

perverting the course of

justice. I have to question

today whether decision was made

on a proper impartial

assessment of the evidence. Greece heads back to

the polls as talks to form a new Government fail. It's a

good development that we'll

have a second round, to clarify

things and put in front of politicians the option they

have to form a Government. A

struggle to afford food and

heating the Salvation Army says

Australia's poorest are doing

it tougher than ever. And is

this the beginning of the end

for the xek book. 16% of the

money in Australia is in paper

form and that's declining sort

of year on year. Good morning.

Michael Rowland and I'm Karina It's Wednesday 16 May. I'm

Carvalho. The stop story on

sphuz - former News

International boss Rebekah

Brooks has been charged with

justice in relation to perverting the course of

Britain's phone hacking sandal.

Three of her staff, her husband

Charlie and News International

security Bos mark Hannah are

also charged with the offence.

They're all accused of of concealing documents from police. Rebekah Brooks say

she's baffled by the

charges. Whilst I have always

respected the criminal justice

system, I have to question

today whether decision was made

on a proper impartial

assessment of the evidence. I

understand, I know that there

needs to be a proper and

thorough investigation and I am

baffled by the decision to

charge me today. However, more

importantly, I cannot express

my anger enough that those

closest to me have been dragged

into this unfairly. One day,

the details of this case will

emerge and people will see

today as nothing more than an

expensive sideshow, a waste of

public money, as a result of an

injust and weak decision. I was

the editor of the 'News of the

World', I was the editor of the

'Sun' and chief executive, even

News International's harshest

critics can't wash to see today

people with no involvement of

the central issues being

treated like that and being

involved like. Former News International CEO Rebekah

Brooks there. For more on this

story we're joined by Lisa

Millar in London. Just take us

through the charges because

it's not just Rebekah Brooks

and her husband that have been

charged? No. Rebekah Brooks is

facing three charges, her

husband Charlie is facing two charges and then there are

other xarjs some of them just

one for a former personal

assistant, a former driver and

two security consultants

including the head of security

at News International at the

time and it's alleged that in

July last year at the height of

the phone hacking scandal,

Rebekah Brooks and others

conspired to remove seven boxes

from the archives at News

International, boxes of

documents and other materials

and also that they conspired to

hide documents and hide computers from police who were

investigating. It's significant

these charges not only because

of the position she held at

News International but because

these are the first charges to

be laid by police in this long investigation into phone

hacking? Yes. It's unusual I

guess even though so many

people have been arrested,

almost 50 to date and we've got

three police investigations

going on still that even this

when people were saying "what's

going to happen? When are

charging going to be laid?" It

still managed to send shock

waves. You could imagine even

the legal adviser to the DPP

delivered her decision live on

television at about 10am London

time and the news person that

she is become become managed to

scoop that announcement by

putting out a written statement

before that saying that they

were weak and unjust charges.

They then made those very angry comments, they could barely

contain their rage, you could

tell as they walked out of

their raur's offices, they meanwhile them some six or

search hours after the prick

prosecutor had announced

they're plans but still managed

to be an extraordinary day here

because you look at Charlie

Brooks, he went to school with

the British PM. These are

people who are counted the highest people in politics people who are counted some of

and society in the UK as their

friends and they are now

facing, well, the sentence if

you're found guilty could be

life time in prison not that

that is normally the case, it's

normally much less, somewhere

between and a year and four

years on average for those

found guilty, but these are

serious charges and they have

gone right to the top of the

tree with these first fun ones

that they've laid I wanted to

ask you about the relationship

with the PM, David Cameron, we

heard Rebekah Brooks at the

Leveson Inquiry last week Leveson Inquiry last week say

that when she resigned from her position at News International

that David Cameron in fact sent

her a text message saying "keep

your head up." What impact or

effect is this likely to have

on his standing? No sign of the

PM today. You can imagine, but

at the end of the day end of

that press conference - the end

of that statement from the

Brooks that lasted just two or

three minutes for the two of

them speaking to the media,

someone in the crowd yelled out

"have yougate a message for

David Cameron?" The fact is

that their relationship with

the PM will continue to dog him

and this of course is still

going on and unraveling before

you've got coming up Tony the Leveson Inquiry where

Blair, the former PM as well,

so they will watching wearly as

a court case started taking

place with Rebekah Brooks

because then before under oath

in a courtroom who knows what

kind of information may come

rest of the morning's out. Here's Michael with the

news. Thank you. Good morning.

Officials in Greece say efforts

to form a Government have

failed and the country is now

heading for new elections.

Greeks went to the polls only

last week of course but that

vote was inconclusive. It's

been followed by a series of

failed attempts to form a

Coalition. The main stumbling

block is whether to support

austerity plans demanded by the

EU in return for massive bail

outs. New French President

Francois Hollande has been

involved in a mid air emergency

as the plane he was flying in

was struck by lightening. Mr

'Holby City' was flying to Berlin for talks with Angela

Merkel when the plane was

forced to turn back to Paris.

He'd taken office in a simple

ceremony in Paris only hours

earlier. The staff member who

has made accusations against

Peter Slipper has filed a

formal statement of claim in

the Federal Court. The

documents detail James documents detail James Ashby's

claim that the House of

Representatives Speaker sex you

willy harassed him. - sexually

harassed him. Mr Slipper who

stepped aside as Speaker to

defend himself denies any wrong

doing. The Salvation Army says

an annual survey of its clients

paints a pick of declining

quality of life for Australia's poorest. The organisation helps

around 1 million Australians,

its survey of 17,000 people

found half had regularly gone

without a meal and just under

half were selling possessions

to make ends meet. One in four

had taken on new debt and a

third couldn't afford proper

heating. And organisers of an Aboriginal tent embassy in

Brisbane say they expect police

to move in and shut them down

tomorrow morning. The group has

been in muz grave Park

promoting indigenous rights

since 14 March. Brisbane City

Council wants to move them to a nearby section of the park

because a Greek festival is

being held this weekend. But

embassy leaders say it's sacred Aboriginal land and they should

not have to move. Let's take a

quick look at the markets now - P?

Back to the political crisis

in Greece and the country is

returning to the polls after

political leaders failed to

reach agreement on forming a

new Government. An economics

Professor at the university of

Greece says while it's a time

of great uncertainty for the

country, he's optimistic it

will remain in the Eurozone. I

insist that a good

possibilities for keeping the

Greece within Europe are much

larger, but we have to see

where we stand. I can't see new

moneying can in Greece, since

the whole project is now at

risk and I can't see how they

will get, maybe they'll get $1

billion but I'm not sure even

for that, therefore we'll wait

for the new developments in the

political level and the

political field, so we have to wait and wait and they will wait to see

what we can do. Of course we

are in a more difficult

situation than we were

before. Back home now and that

staff member who has made accusations against Peter

Slipper has now failed a formal

statement of claim in the

Federal Court. Melissa Clarke

joins us now from Canberra.

We're getting further details

of what James Ashby is planning

to pursue in the Federal Court? The documents set out

more detail not only about what's alleged to what's alleged to have happened

but also about what impact that

had on James Ashby, the young

staff member of Peter Slipper

who is making these claims of

sexual harassment that Peter

Slipper has denied. He outlined

that some of the circumstances

under which he felt harassed,

that he had been felt he'd been pressured and also

discriminated against as a

result of these circumstances

and in the statement of claim

to court he mentioned how it

makes him feel, this is James

Ashby, and the statement says

that James Ashby begins to feel

offended, humiliated, that he

was caused distress and anxiety

and suffered significant stress

to the point where he began to

have physical symptoms so this

will form part of the case,

that James Ashby is making not

only against Peter Slipper but

also against the Commonwealth. He's saying the Commonwealth

had an obligation to provide

him with a safe workplace. One

of the most noted parts of this

statement of claim is that it

actually doesn't include some

of the earlier allegations that

he had made relateling to

misuse of taxi vouchers. A

statement from Mr Ashmore

Reef's spokesperson has said

that made it clear that the

reason they're not continuing

to make those claims in this

process is that now there's an

AFP investigation into these criminal elements of the

allegations that have been

made, that they didn't want to

risk any delay in the civil

matter going forward and that

they hope to get more

information as this case goes

forward anyway so that they're

trying to separate the two

cases out for now but we can

expect to hear more when this

returns to the Federal Court at

the end of the week for another

directs hearing. It's also day

two of the ACTU Congress in

Sydney and the focus today will

be on improving the governance

of all trade unions? This is

something that the ACTU has

been promising for some time

now realising that the scandal

that's been engulfing the

Health Services Union and Craig

Thomson has tannished the image

of unions and the union

movement as a whole so we have

had the hierarchy of the ACTU

promise that there will be

stronger governance and

transparency arrangements put

in place but to this point they

haven't said what precisely

that would involve, how they

would go about improving

transparency and accountability

for unions and the money that

they spend, we are expecting

some propositions to be put

before the ACTU Congress today

which should have some more

specific details about how they

might do that so that will be

keenly awaited to see if

whatever is proposed might try

to prevent a situation like

what we've seep in some branchs

of the HSU from arising

again. To the front pages of

the major newspapers around the

country, the 'Canberra Times' reports

reports the former News

International boss Rebekah

Brooks has been charged over

Britain's phone hacking scandal. The 'Australian' says

employer groups are arguing against significant increases

to the minimum wage because of

the Government's $2 billion

handout to families. The

'Financial Review' is reporting the ACTU wants to create a

multimillion dollar campaign to

fight the Coalition and business groups

business groups in the lead-up

to the next Federal election. The 'Sydney Morning Herald'

leads on PM Julia Gillard urging the union movement to

get behind her as she battles

to improve her position in the opinion polls. The 'Age'

reports on a spate of suicide

attempts by aslyum seekers who

have been branded security

threats by ASIO. The 'Herald

Sun' says a Federal Labor MP

has revealed national security

agencies believe Melbourne's

northern suburbs are a hotspot

for potential home-grown

terrorists. The 'Daily

Telegraph' reports NSW staurmg star

star Brett Stewart feared going

to jail over sexual assault

charges. The 'Courier-Mail'

says four Queensland sisers

have made a plea to their

father to abandon his battle to

take them back to Italy. The

'Advertiser' reports an anti-corruption investigation into a district court judge

will continue despite his

resignation over allegations he

used sex workers. The 'West

Australian' is reporting on a Salvation Army study that's found thousands of Australians

are going without meals and are

struggling to pay household

bills. The 'Mercury' says

welfare groups have called on

Tasmania's Government to look

after the most needy in

tomorrow's studge. And the

'Northern Territory News' says

has a bizarre story about a

nappy found insad crocodile. Oh

my gosh. That would be good

easy if there was a nappy

thrown into the Daly river or

something like that as long as

there wasn't a baby

attached? No, we don't want

that. A full load could have

been a rather different

story. Move on. I'm not eeven

going to address this.

Resident's take a quick look at

the the weather. there was a nappy thrown into the Daly river or something like that as long as there wasn't a baby attached? No, we

don't want that. A full load could have been a rather different story. Move on. I'm not eeven going to address this. Resident's take a quick look at the the weather.

These are the top stories on

ABC News - the former head of News International Rebekah Brooks has lashed out after

being charged with conspiring

to pervert the course of

justice saying she's baffled.

She and five others are accused of concealing evidence from police investigating phone

hacking. The officials in

Greece say efforts to form a Government have Fianna Fail ed

and the country is heading for

new elections. Greeks went to

the polls only last week but

that vote of course was inconclusive and was followed

by a series of faille attempts

to put together a Coalition.

The Salvation Army says an

annual survey of its compliants

paints a picture of a declining

quality of life for Australia's

poorest. More than half of

Australia's most disadvantaged

go without a meal on a regular

basis and a third can't afford

heating. The humble cheque

could soon be signed off for for good thanks to the rapid

rise of electronic payments.

More than three-quarterses of

Australians no longer own a

cheque book and with mobile

gnome improve theing soon there

they be need to carry a wallet

at all. Some can't live without

them. The cheque account, yes,

I think it's important,

especially for elderly people

who aren't into all this news

fangled technology But many

Australian have never eseen

signed one. Don't even being

taught how to use them at

school. Never used a

cheque. Ease yes for me to do

stuff online. A report by the

Australian payments clearing

association found that only one

in four Australians use cheques

and only 5% rely on them to make payments. Most of those

are older or people in remote

communities. The payment

industry says cheques aren't

about to disappear tomorrow

because but with the rise of

electronic payments it's days

are clearly numbers. And even

cash may soon be on the way out. The great bulk of Australian currency is in

electronic form, not in

physical form so only about is

6% of the money in Australia is

in paper form and that's declining sort of year on

year. It's not just banks involved with electronic transfers. Technology giants

Google and Apple are muscling

into the market with

cyberpayment systems. They

emerge as a virtual way to pay

and as they get bigger and more successful they'll translate

back into the physical world to

PayPal has already done

that. This new world will

provide a lot of proliferation

and complexity that consumers

have to deal with so we have to

make it very easy to use these

new methods. So easy that

mobile phones could soon

replace wallets and retailers

will only need a mobile phone

to make a sale. These

technologies well applied and well integraterd actually a

great hope for the Australian

retailers. So the sound of

mobiles will soon be ringing

the death-knell for cash. Ever

had a cheque book? I have had a

cheque book in the past but not

for a very long time. Me too. I

can't tell you the last time I

wrote a cheque to anybody.

Would have been a good 10 or 15

years ago as that story

underlined. When I opened a

bank account in London they

gave me the cheque books. I'm

not sure I ever used them In

London and certainly living in

the United States, cheques are

still by far the dominant form

of payment. I was shocked and

amazed not having written a

cheque for so long living in America and finding everything

was cheque based you literally

still got a pay cheque, you can

pay a cheque at the local

department store to buy

grocery, everything was cheque

based whereas here, as that

story showed it's been losing

popularity fast so that much so

that 75% of no longer hold or

need one. We haven't caught up

with the rest of the world in the technology and making

payments using your mobile

phone. You'd be surprised.

America is pretty slu on that

uptake as well. Interesting

cheques are still popular among

certain demographics, older

Australian, people living in

the bush, we'd like to hear

from you, when was the last

time you wrote a check. Do you

still rely on cheques and do

you believe it's a good thing

that cheques are being

eradicated and that we may not

need a wallet anymore which is

good because I keep losing

wallets if we don't need them

I'm laughing then again I'd

lose my phone so I'd be back to

scare one. You can let us know

your thoughts by sending emails to - One of Australia's preeminent

economists Dr Ken Henry has

given a rather frank assessment

of Europe's financial

problem.. The former head,

Reserve Bank board member and

now executive at the institute

of public policy says the Euro

was compromised from the

beginning. Personally, I've

never seen how the Euro would

work. I've never seen how it

could be expected to work

without a genuine fiscal union.

People in Australia understand

that without our system of

horizontal fiscal equalisation, without fiscal transfers from

one state to another, this

federation would not hang

together. There's no way it

would have hung together in the

way that it has without that

system of fiscal transfers

amongst jurisdictions. People

understand that. People in Europe have not understood that

and they need to understand it.

The question is whether it's

too late. Ken Henry speaking to Chris Uhlmann on 7.30 last night. Financial markets might

be volatile at the moment but that's not stopping some

investors from risking jail

time through what's known as

insider trader. The corporate

regulator ASIC a says there

have been more breaches of insider trading in the past

three years than in the entire

decade before. ASIC says it get

200 alerts each and every day

warning that some market

players are trading with privileged information and the

regulator hasn't ruled out the

use of telephone taps to trap corporate crooks. To corporate crooks. To the

markets -

Over the course of the program we'll be monitoring

that very important meeting

between Angela Merkel and the new French President Francois

Hollande about what to do with

Greece, where the general

Eurozone is going, because it

will have a big impact on those financial markets certainly

Asian markets today depending

on what comes out of that

meeting. The breaking down of

talks had an immediate impact

in Europe with the Euro losing value and Greek shares dropping

in value as well. Let's move

on, in Queensland struggling

film industry will be given a

much needed boost with the

production of a new Australian war movie on the Gold

Coast. 34th battalion is the

brain child of a Brisbane based

father and son who are hoping

the epic not only makes money

but also honours Australia's

Anzacs. It took two decades but

Ian Sparks desire to win

support for his film never dimmed. Raising the money has

been a family affair and now they're trying to catch a

star.. We can tell you that

we're negotiating with some very fine Australian actors and

these are very good Australian

actors that have worked

internationally They operate a costing design business in Brisbane and specialise in army

uniforms. They say 34th

battalion is pitched towards

war buffs. We're seeing our

first big attack. I was

scared It's a group of guys

goes all the way from 1916,

1918 and the every day life

they had to live and the

battles that faced. Film will

be hot son the Gold Coast and

in northern NSW. We will be

concentrating on getting it

right and that doesn't only

mean, we feel a great

responsible to get it right for

the Anzacs but it's also

Australian film industry The getting it right for the

film's pub sition and movie industry spokeswoman says the

projects is well timed. It's

just going to create massive

jobs which is what we all need

in the film industry because

they've been really struggle

disgllg the producers say the

film goes into preproduction in

July. The 12 week shoot begins

in September and if it all goes

to plan the move should be

released some time next

year. To sport, we're joined by

Paul. Let's kick off with some

soccer this morning? Yes, and

put out of their misery I guess

the Central Coast Mariners,

anyway I goa has denied themity a Vancement beyond the group stage of the Asian Champions

League with a 3-nil win in

Japan last night. The Mariners

needed a win to advance to the

knockout stages but of course

it fell short after a Japanese

international and another were

able to score in the first

half. This one's the second of

those and then in the second

half, the late sealer put the

result beyond doubt so that's

it for the Central Coast

Adelaide Reds are Australia's Mariners, of course the

League, they've already hope in the Asian Champions

qualified for the next stage.

To boxing news that came about

yesterday. And one of

Australia's top female boxers

will miss the London Olympics

after recording a positive drug

Elmir won the national test. Canberra boxer Bianca

flyweight title in February but

a urine sample taken at the

time allegely the contained banned

banned substances. She was sent

home from China at weekend

after boxing Australia withdrew

her from the titlings. The

substances aren't performance enhancings and they're planning

to appeal but say that won't

happen in time to allow her to

qualify for the Olympics The State of Origin is now counting

down with the Maroons landing

in Melbourne yesterday for that

first match of the series and

thought I'd play to you just

some thoughts from cream who of

course was replaced by reccy

Stuart as the Blues coach after

Bellamy had a tough time

beating the Maroons but he seem

to be hopeful that the bluls

can do well this year. Our

reporter asked him whether he

thought the tide was turning?

Like to think so. The Blues

were very close last year and

like I say, Rick's - they were

very close Rast year and and

some of those guys in that team

have probably surprised a few

people but I know he's got a

plan in place and he's picked

the guys that he thinks can

employ that plan well and I

think they'll go well. Craig

Bellamy there. He knows what

it's all about. Had a tough

time in State of Origin after

coming off successful time with

the Storm. He looks much more

relaxed and probably help happy

to be watching this series

letting reccy Stuart go and try

and do what they haven't been

able to do. I hope it's

competitive, I hope the Blues put in a good performance but

Greg Inglis's form of late, is

ominous I think for the Blues,

not just him but I think

they're up for it. They don't

have suffer any complacency the couple of veterans there, Maroons particular which a

Petero Civoniceva, going out

again but if Lockyer's absence

creates some sort of ripple effect then maybe the Blues

might have a chance. I've got

some cricket news by the way,

the five players who have been

competing in and around the IPL

have been suspended after a

sting involving no-balls.

Sounds familiar? It's a bit

like the Pakistani situation

but television station in India

has apparently caught them on

tape so they've been suspended

and four of the five have been

involved in the IPL, so they're

talking about no-balls and the

same sort of stuff but just

another reason to not really

take the IPL too seriously in

any book. It's the last thing

cricket authorities need having

just got over the packy

situation. You'd hate to think

that it's common place but we

got to live with that

reality. Thank you very much Paul. ABC News Breakfast can be

watched live on the web.. Just

visit the main ABC News website

at... Time for the weather now

and it's still pretty cold in

the south-east? The nip of jack

frost is being felt as high up

as the southern part of

Queensland where it's minus 2

in the Roma. Mostly dry for the

rest of the week over the

interior and east. Apart from

these showers we can see here

along the east coast from on

shore winds. A low pressure

trough is causing showers from

Western Australia's Gascoyne to the

the Eucla. It will move over the western partses of South

Australia, tomorrow and Friday

it will move over towards

Tasmania and will be followed

by a weakening cold front late

in the day, that will affect

western Tasmania and south-west

Victoria. Around the states for today You're watching ABC News

Breakfast and a very good

morning. We'll be speaking to

the Salvation Army about a

disturbing new study showing

Australia's poorest are doing

it much tougher than ever. And

also ahead, we'll have a review

of some of the newspapers, to

help us do that this morning

we're joined by Thom Woodroofe,

an associate fellow at the Asia

society. Leading the news this morning, former News International boss Rebekah

Brooks has been charged with

percerting the course of justice over Britain's phone

hacking scandal. Three of her

staff, her husband and the News

International security head war

also charged. They're accused of concealing do you means and computers from computers from police.

Officials in Greece say efforts

to form a Government to form a Government have

failed and the country's

heading for new elections.

Greeks went to the polls only

last week but the vote was inconclusive. Police in

Sydney's west have arrested two

people and seized more than a

$1.5 million of ice heroin and

ecstasy. Officers carried out

overnight raids, a 28-year-old

man and 28-year-old woman have

been charged and will face

court later this morning. The

Salvation Army says an annual

survey of its clients paints a

picture of a decleaning quality

of life for Australia's poorest

. The organisation helps around

1 million Australians, its

survey of 1700 people found

half had regularly gone without

a meal and a third couldn't

afford heating. The cheque book

could soon become a thing of

the past a report by the Australian payments clearing

association found only one in

four Australians use cheques

and only 5% rely on them to

make payments. The husband of

the former head of News International has blasted prosecutors accusing

prosecutors accusing them of a

witch hunt for charging Rebekah

Brooks with percert verting the

course of justice and she's

baffled she's been charged and

also says the development will

soon be seen as nothing more

than an expensive side

show. From high profile media

executive to suspect. Rebekah

Brooks fronted a London police

station to be formally charged,

chased by the kind of

photographers she once

employed. Hours later she and her husband could barely cape

their anger at this latest

development. People will see

today as nothing more than an

expensive side show, a waste of

public money, as a result of

injust and weak decision Her

husband went further? I feel

today is an assessment to use

me and others as scapegoats,

the fefkt of which will be to

ratchet up the pressure on my

wife who I also believe is the

subject of a wix hunt. I

understand, I need, anyhow that

there needs to be a proper and

thorough investigation and I am

baffled by the decision to

charge me today. It was last

July during the peak of the

phone hacking scandal that prosecutors alleged the

43-year-old conspired to hide

documents and computers and to

move seven boxes from the

archives at News International.

Her husband, personal

assistant, driver and two

security consultants have also

been charged. I have concluded

that in relation to all

suspects except the 7th there

is sufficient evidence for

there to be a realistic

prospect of conviction. All six

othose charged will face court

on June 13. The maximum penalty

is life in prison although in

reality the average sentence

serveside much less than that. For Rebekah Brooks and Charlie

the damage is already done to

their reputations and powerful

friendships. Greece's is going

back to the polls in a

development that will surprise

absolutely nobody. It's just a

week since the country's last

elections but of course that

vote was inconclusive and party

leaders have been unable to

form a Coalition

Government. Philip Williams has

just been in Greece and says

the next election could see an

anti-austerity party take

office. We have an election, 17

June, there'll be the

campaigning going on and the

polls tell us that the far left

Syriza party, the

anti-austerity party, is

probably going to emerge the

top dog in that competition.

That of course lfrl create

enormous tension between Greece

and the rest of Europe, that

doesn't want them to leave the

Eurozone of course but

certainly doesn't want them to

renegotiate any of the renegotiate any of the bailout

and that's been really the

constant message especially

coming from Germany that if you're contemplating keeping the bailout but not sticking to austerity think again because

we're just not going to play

that game. How will it work

because Syriza is likely to

garner even more support in the

next round of elections due

next month. They want to

renegotiate the bailout package

but they also want to stay with

the Euro? Exactly and how do

you balance those two things ?

Really the threat, the gun at

the head of Greece really is to

say that if you effectively if

you decide to go down this

route and say you want to

renegotiate, you're going to

have to leave the Eurozone and

the polls tell us that most

Greeks want to stay within the

Eurozone, they just are sick

and tired of living with

austerity and of course when

you're there in Greece you can readily understand what people

reason about. It's taken a

great toll on just about

everyone, but the pay masters,

the IMF, the EU and

particularly Germany have set a

really hard line, no, we won't

renegotiate this and if you attempt to do this then there

are going to be severe

repercussions, you'll be out of

the club And Greece has in fact

dominated the first talks

between the new French

President Francois Hollande and the Germany chancellor Angela

Merkel in Berlin? Yes, what an

amazing day today with what is

happening in Athens and what's

happening in France and

Germany. Francois Hollande has

been invested as the President.

He was just a couple of hours

at that process and then on to

a plane, the plane is struck by

lightening, he returns changes

planes, ba to Berlin a little bit latary has had discussions

with Angela Merkel. The real

tension between those two is

the approach on how to combat

this whole economic crisis.

Her's is to austerity and keep

spending limited and make sure

that countries don't exceed

that spending. 'Holby City' has

said this hasn't worked, this

is really contributed to the

problems of these countries,

what we need is a bit of

spending to stimulate some

growth, so how they unwind that

is going to be very interesting. At the moment,

they basically said, "Yes we

have disagreements but we're

going to talk and we're going

to look at where we can

agree." How important is a close relationship between

these two leaders? It's really

vital. It's been the lynch pin

of Europe and the Eurozone over

the last few years. Particularly the relationship

between Nicolas Sarkozy, the

outgoing French President and

America 'Mercury'. That really

was a very kros relationship

and they cooperated very, very

closly. That's why this change

in personnel is quite

fundamental really and almost

the chemistry between these two

will tell us a bit about the

direction of the relationship

in the broadest context, not

just between these countries

but in Europe as well because what Francois Hollande really

represents is a change. It's a

change in tact, it's a change

Iing that we can't go on this way because it's not working we

have to change, change the way

we approach this recession.

Angela Merkel for her part has

said that this is a must, we

must have this tight financial

reins because if we don't then

people will run away with people will run away with their

spending again and we'llvale

another Greece somewhere else

somewhere along the line so how

those two issues manage to

mingle and come out with some sort of agreement yet to be

seen, but they've taken the

first step, they're all smiles,

little awkward at first but

no-one seemed to know where to

stand but these things happen,

but surely they will come to

some agreement because

basically they have to. They're

too big to be really split on

the issue, they are the leaders

of Europe. That was the fast moving Europe correspondent Philip Williams, in Athens

yesterday, in London today,

where will he be tomorrow. On

the've of their annual Red

Shield appeal the Salvation

Army has polled 1700 Australians about where they're

struggling financial. The

survey found increasing costs

are make it tough for for

people to cover even basic

utility bills. We're joined by the Salvation Army's Major

Andrew Craib. Good morning.

More than 50% of people have

gone without meals, necessities

and have turned to family or

friends for financial help. How

concern is that? I think it is

quite concerning. For the Salvation Army there was

probably not a great deal of

surprise in the way that people

responded to this survey apart

from the fact that maybe some

of those basics to life and we

were talking about bread and

milk, you know, going out for

coffees with friends, were some

of the things that people were

doing out, are doing without to

make ends meet Has this got

noticeably worse? We know that the

the second speed of the two

speed economy has been slowing

down quite marketedly. Has this

come up in the surveys you do?

The area that promotes it being

worse is the fact that where we

would not have touched the

middle class rung of people

before, those at theer lower

rung of that middle class are

coming to us for that

assistance as well. We're

talking here with people with

sometimes two incomes in a

household and still not being

able to cover what are basic necessities? The predominance

of people were those on

benefits at this point. But it is the fact that

is the fact that the creeping

in are those who have got

employment. Often they might

have been affected by reduction

of hours, that they're working

but people just not being able

to get by on what they do

have. Is it more acute in

certain parts of the

country. Our survey was actually - would have been

conducted right across

Australia and I think the thing

that we would pick up from that

is that what we might see in a capital city is

capital city is the same in a

rural setting except that it's

maybe enhanced by the fact that

the possibility of being able

to improve by getting

employment or further training etc might have been exacerbated

for those people. Some findings

that struck me the hardest and

will cut through to a lot of

people are the finding that a

lot of people can't go out or

they're afraid to go out

because of costs involved. They

can't afford to buy presents

for their kids to pay for

for their kids to pay for

school excursion and stuff liar

like that. For you and I if we

have to get together, that

translates in going and having

a coffee with one another, so people getting embarrassed of

the fact that it might be their

turn to have a shout or the

fact that they just can't afford that or that they're

always asking for a glass of

water and hoping that that's

not going cost them something

or the fact that their children come home

come home from school with an

excitement on their face about being invited to a birthday and

I don't know about you but for

me that often translates in

having nice clothes to go to

that party but you also take a

gift. They don't want to be

bursed about the fact that

their child will turn up

without a gift Is the Salvation

Army upset with the PM's demens

last week that people in the

north shore are

north shore are kosetted? The

disappointment for us out of

last week's Budget is that along with many other agencies

that are dealing with the most

marginalised and disadvantaged

within the community, we've

been calling upon the

Government to have a rellook at

what the Newstart allowance

actually means because those

who are already on Newstart are

actually livinging below the

poverty line and then when we

again to see

again to see the possible

possibility of sole parentses

and their children getting to 8

years old and then being forced

on to Newstart says we're

actually disadvantaging these

people. People who have

responsibility for children and

we're not taking into consideration that there may

not be the employment

opportunities there for

them. The Salvation Army every

year try to ease some of this

burden. The Red dp shield door

knock that many people won

aware of takes place this

weekend, 19 and 20 May so we're

urging people f they have got a

couple of spare hours to help

out in collecting in their

street, in their community,

that would be helpful but

certainly when somebody

representing the Salvation Army

comes to their door, that they

might dig deep and think about

their fellow Australians doing

tough at this point of

time. Major Andrew Craib, thank tough at this point of

you very much. A Victorian

police are defending their use

of dozen of people as human

shields to stop a speeding

driver in a spolen car

following a failed pursuit at

the weekend. One of the people

ordered to block the vook on a

major freeway has described his

fear as he watched the car

speed towards him and his young

children. A Saturday morning

shopping trip could have turned

out very badly for David

Rendina, his girlfriend and his

two children. I pretty much

knew I was a sitting duck,

there's no other way for this

speeding driver to go. Police

had stopped traffic on the Hume

freeway in outer Melbourne to

catch a speeding motorist whom

they'd been trying to intercept

for almost 200 kilometre. On a

number of occasions there were

a number of near misses with

owner vehicle and the air wing

called it that this bloke was pretty dangerous in terms of

his driving and said he needs

to be stopped. Dozen of cars

were told to stop across the

Hume's south bound lanes

including in the emergency area

where where police had David Rendina. I remember where where police had directed

viecialising that and seeing

him speeding towards me and

going there's nothing I can do

here When the stolen car got to the road block the driver

slowed down but still tried to

crash through. He's tried to

squeeze in between the gap

between me and lane one and

he's hit me, hit the car next

to me. Come back, hit the car

in front of me and hit the car

into the back of the car in

front of that before coming to

a stop. Police are now being

asked to explain why drivers

were put in harm's way. Is it

worth it to chase a stolen car

when you put innocent

bystanders lives at risk The

matter is being reviewed and

police say the use of the road

block was a snap decision. I do

act oknowledge that on this

occasion there were risks

involved in the practice

adopted by the members

concerned a with do need to

look at that, because as I said

these are difficult scenarios

for us all Last week an intrnl

police review found it was

unacceptable that death from

police pursuits accounted for

1% of Victoria's road toll.

Social researchers say this ranches poorly compared to

other States. Victoria is now

becoming entrenched in its

present policy in contrast to

States like Tasmania and

Queensland that have called on

police pursuits in almost every

situation. The 19-year-old

learner driver of the car has

been remanded to appear in

court in August. The top

News Breakfast this morning - stories we're follow on ABC

the former head of News International Rebekah Brooks has lashed out after being

charged with conspiring to

pervert the course of justice

saying she's baffled. She and

five others are accused of

concealing evidence from police investigating phone hacking.

Officials in Greece say efforts

to form a Government have failed and the country is

heading for new elections.

Greeks went to the polls only

last week but the vote was inconclusive and was followed

by a series of failed attempt

to put together a Coalition.

And the Salvation Army says an

annual survey of its compliants

pains a pick of a decleaning

quality of life for Australia's

poorest. More than half of the

disadvantaged go without a meal

on a regular basis and a third

can't afford heating. For a

look at the newspapers this

morning we're joined by Thom

the Asia society. Good Woodroofe a associatefallo at

morning. Good morning. Let's

start with an online peace that

you want to take a look at and

it's an opinion piece from the

Newsweek? I think it's from the 'Washington Post' but it's

relates to the News week cover

of President Obama's stance on

gay marriage which is really getting some interesting and diverse perspectives on all

different angles in terms of

himming can out but

particularly what impact it

will have on the election

campaign and Newsweek, not sure

the cover they went with but

they provoke tiffly in some

ways had this cover that called

Obama the first gay President

which was at least one that

went across the cutting room

floor. A picture of even a

cartoon of Obama with a rein

bow coloured hallow over his

head . He was called the first

gay President. This is a great

opinion piece I think that

comes from that, that basically

says that in reality he's not

the first gay President es,

he's the first female President

if you take that kind of line

of saying who he's of saying who he's most is so p advocating for. President Obama

is so p commonly said to have

an issue with women which is a

say bit of a falsy and you could

say that Mitt Romney ha has an

issue with men. It does point

out the extend to which he's

really trying to woo the female

vote. This is incredibly sort

of crude analysis but he's been

four times which is on the View TV show I think

unprecedented and that's where

he originally wanted to be able

to broadcast his change of

stance until Biden sort of

ousted him with it. He gave a

commencement address at a

female liberal arts school the

other day, he's been making incredible amount of jokes

about how the constitution

would have been better if it

was written by women and all

sorts of stuff Let's not forget the person most responsible for

his rise in NRMA prominence was

Oprah Winfrey, he appeared her

on female centric program

scores of types? Back in the

2008 election it didn't have

much impact in terms of how

the end but it will be many female voters he got in

interesting to see whether

those numbers are refliblingtive of what happens

this year particularly against

Mitt Romney but it's an

interesting, it shows the ab

surd ity of showing that

President Obama has a problem

with females. Any reference to

with females. Any reference to

his wife Michelle? No but I

think that she polls enormously

better than Obama, alz has in

pretty much every poll in term

of favourability and I think

she's a huge factor. I'm not

sure how much, so sort of

solidarity Mitt Romney's wife

will particularly get after

sort of recent controversies

about her role. I think mish

sell a great pull for President

Obama. To another Michelle now

and Michelle backman? So she

isment broiled in controversy.

She's been a Swiss dual citizen

for 53 days and I can't quite understand this story but I

think it seems that her husband

was enentitled to dual

citizenship because his parp were Swiss but they never took

it up until a couple of months

ago when she dieded to take it

up and then it became a

controversial thing for her to

do. The Americans don't have

the system we have here where

you can't be in parliament or

in Congress or even President

for example or PM if you have

dual citizenship, that's fine

but it always causes

controversy. Emmanuel had a lot

of issues, being an Israeli

citizen when he ran for

Congress. She's anyhow

Congress. She's anyhow

renounced the citizenship which

the Swiss actually doesn't have

a procedure to be able do that

apparently so she continues to

make headlines with her

status Have the Swiss been

polled about the fact that she

is one of them? The first

question she got was are you

going to run for parliament in

Switzerland which I think every

Swiss person then collective

sort of gasped at the pros

picture. I don't this think

they've done a poll on it

yet Bob Carr is in China? It's

an interesting trip. It's really interesting that the

China people have basically

called Australia's pursuit of

our with the United States is

one that issar la Cold War. For

Bob Carr to reit rail that

publicly is quite a strange thing to

thing to do. It's interesting

though his views on Darwin, and

the troop rotation through Darwin haven't sort of flown

into the media coverage of this

as they were at the time of his appointment. He obviously criticised the rotational

presence quite a lot. He

criticised the imagery of the

Obama visit this year but this

hasn't been brought up or in

the questions asked of him in

press conferences in China. To

the final item, the BBC has a

rather intriguing piece on

autocrats on their

website? Like all foreign

affairs analyst do, I go to the

Premier of the dictator today

the BBC have a series article

on why do autocrats do strange

things which obviously aligns

with Sasha baron Cohen's take

on this. It's a fun but

horrible read. Kim Jong-il has a fascination with lobster and

is scared of flying. Another

was famously reported to have

kept his inmy froze enin

fridges and often would joke to dinner guests that he'd like to

put their heart in the fridge.

It's an interesting read but a

horrible read as well at the

same time when you think about

what these people do You'd be

trying desperately not to laugh

at the 'Diktstator' when you

see it. Given all the off jokes

in that film. What do you make

of all his performance as he

gone around the world promoting

this film? Incredible. Did you

guys have him on? Probably not.

You should have have. A

commercial network would

have? I don't know. I think

he's just great at hooking on

to stories when they seem to be

in the media and he obviously

has a lot of good advance

people who brief him on in the individual country. His

bodyguard is not bad but that's

one thing. Let's look at the

sport headlines and we're

joined by film buff Paul

condition ki. Got a desire to

see the 'dictator'. Probably

not. I didn't like the last

one. I've never been a great

fan of his stuff. I think he

can be funny but Borat can't do

it more for me. More of a

sketch comedy. It can be quite

crude at time, too crude for

me.. You pay your much and get

sort of three quarters the way

through and think... Why have I

done this? Let's go to the

soccer and Nagoya denied

Central Coast advancement from the group

the group stage of the

Champions League. A Japanese

enters Keiji Tamada and Jungo

Fujimoto netted in the first half, before Marius

TuloiTanaka's late sealer and

that one came in the sect half

so that's it for Central Coast

and now the Australian hopes in

the Asian Champions League have

been pinned on Adelaide Reds.

To cycling and Rodriguez has

taken the overall lead of the

Giro d'Italia after the

Spaniard won the 186 kilometre

stage 11. Rodriguez was the

winner oit was race in April

and he showed again his

explosive climbing abilities.

He left his surge until late on

the narrow streets of Asisi and

it's the first time the 33-year-old has won the pink

jersey. He leads by 17 seconds

and one of Australia's top

female boxers will miss the

London Olympic after recording

a positive drugs test. Bianca Elmir won the national Elmir won the

flyweight title in February but

a urine sample taken at the

time allegedly contained banned

substances. Boxing Australia

withdrew her from the world

titles. Bianca Elmir manager

maintained a coach in Ireland

gave her a bill to treat a

swollen ankle. They're planning

an appeal but that won't happen

in time to allow her to qualify

for the Olympics. And I've been

tweeting this morning on

different stories including the

India, involving the cricket Giro d'Italia, that story from

players and I'll keep that up

this morning. Vanessa O'Hanlon

joins us with the weather

now. We have a strong high pressure system that's moving

north-east to mostly dry for

the rest of the week over the

interior and also across the

eastern State, apart from the

east coast where we've got on shore winds and may see a few showers. A low pressure trough

is causing shurs from Western

Australia's Gascoyne down to

Eucla. Tomorrow it will move over the western parts of South

Australia and Tasmania on

Friday, followed by a weakening

cold front. Queensland -

cold front. Queensland - P?

Lots ahead on ABC News

Breakfast including a chat to

Glen Karl a CIA officer who has

spoken out about tort you and

rendition in the wake of the

September 11 attacks. He's put

out a book, he's here for the

Sydney Writers Festival. It's a

fascinating and