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Enormous pay rises,

questionable credit card

purchases and cronyism. A

damning report into a troubled

union. It's clear that there

have been real problems at the

Health Services Union. Daze

are dazed and confused. The

alleged Aurora gunman makes a bizarre first court

appearance. If the death

penalty is sought, that's a

very long process. Final

training for the games, but

there's another race issue

that's running. There has been

discrimination and it should be

looked into seriously because

we can't have that. What's the

matter with kids these days?

Well, they can't run, can't

throw.

Hello. Welcome to ABC News

across Australia. I'm Nicole

Chettle. The latest Eurozone

debt woes have sent local

stocks into the red. The All Ordinaries is off 8 points.

The Federal Opposition says

a scathing report into the

Health Services Union bolsters

its case for tougher rules for

trade unions. The fell bee

report has uncovered enormous

pay rises and dubious credit

card purchases in the union's

scandal plagued East Branch. It

also questions why the HSU paid

millions of dollars to

companies connected to the former General Secretary Michael Williamson and his family. The opposition wants

heavier penalties for union

bosses who do the wrong

thing. Here you have a

situation of a $20 million

rip-off of hard-working union

members' money and the maximum

penalty under the Green Labor

regime would be a $6,600 fine.

Clearly the penalty would not

match the crime. I would note

that the overwhelming bulk of

people who work in trade unions

representing their fellow

workers are decent people doing

a great and professional job. The report only briefly

mentions the former Labor MP

Craig Thomson, saying he was

seen as Michael Williamson's

protege. The leak of the HSU

report comes as the union's

National Secretary Kathy

Jackson challenges a Federal

Court decision that put the

troubled union into administration. Our reporter is

at the Federal Court in Sydney. What's Kathy Jackson hoping to

achieve today? She is trying to

get the original Federal Court

decision to place HSU East

under administration

overturned. Today was the

latest hearing in that process.

Remember Kathy jack effectively

lost her job once the HSU East was placed under

administration. So she's

bringing this appealed a

remember that the

administrators are only only in

charge of this branch of the

union for 12 #0e days. That

began a month ago. What happened today the Federal

Court ruled it would expedite

the appeal process. And Kathy

Jackson describes that as well,

a major victory. She says she

ran the risk today of the

entire appeal being thrown out

of court. But today she dropped

her push for a stay against the

administrators. What that means

is that they will effectively

keep running HSU East until

this appeal is heard, but

despite it being expedited, it

probably won't end up back in

the Federal Court, this appeal,

until some time in August. And

she's one of the main accusers

in the Temby Report. What's she

had to say about the

findings? There that's no doubt

she feels Kathy Jackson feels

vinld Kated to quite a large

extent by what's come out. She

says she's vindicated in how

outspoken she has been about

allegations of corruption in

the HSU and she also says it

vindicates her decision to take

those allegations to the

police, rather than the

executive of the union itself.

A move that has been criticised

heavily by other people within

the HSU. Now obviously because

she's one of the main accusers

in the Temby Report she's in the Temby Report she's not

surprised by the accusations

but she does say she is

surprised by the amount of

money that's been talked about

within the Temby Report. My

allegations were the

allegations that were acted on

and I hope that this brings

this sorry saga to an end. We need to get on with representing our mbs and doing

a good job for them hand not

having this fight in the

federal court or elsewhere federal court or elsewhere and

Temby totally vindicates my

position. The position that the

union had taken is to close

ranks with Michael Williamson

to protect him rather than

dealing with the problem. The Opposition Leader Tony

Abbott has given an unjet buy

se. Of the China Australia

relationship while meeting

Chinese Government heavywealths

in Beijing. Mr Abbott has held

talks with the Politburo member

Jai Chin Lyn at the Great Hall

of people. There are of course some differences between our

countries, but there are

enormous areas of common

interest, mutual cooperation

and expanding friendship. Mr Be

a bolt has also met China's vice Foreign Minister and

commerce minister and given a

speech describing the White

Australia policy as a deeply

embarrassing feature of

Australia's history. The Greens

have finally conceded the

Victorian seat of Melbourne

after Saturday's by-election.

The Greens Cathy Oke took to

Twitter to congratulate Labor

candidate and winner Jennifer

Kanis. Labor declared victory

on Sunday but the Greens waited

until the votes from Saturday's

poll were rechecked before

conceding. The Victorian Greens Leader Greg Barber says despite

the loss the party continues to

grow from strength to

strength. In the seat of

Melbourne for example t has

grown six-fold in about 12

years. It is inevitable that

that seat is going to come to

the Greens one day. This was

quite a unique by-election,

there were a lot of challenges

TAFE, thrown up but we focused on

TAFE, on jobs hand that's what

we'll continue to do with

Jennifer Kanis as the newest

Labor member of our team .

Labor leads by 772 votes on a

two-party-preferred basis, with

the final count expected later

this evening. To the London

Games now, and the athletics

team captain and gold medallist

Steven Hooker has confirmed

team-mate John Steffensen was

racially abused at the Beijing

Olympics but says it's time for

the runner to concentrate on

what's ahead. The race row

threatens to over shadow what

could be one of the athletics

team's greatest moments with

predictions of a medal bonanza.

All smiles for the team photo

but outsboken sprinter John

Steffensen was nowhere to be

seen. He came in late last

night. He's a little built

under the weather. So we're

just keeping him away and

letting him rest up. But the

Athens silver medallist

recovered in time for training.

And was staying quiet about

this latest episode. John

Steffensen launched a tirade

after a selection dispute,

claiming discrimination in the

lead-up to these Olympics, and

vilification during the Beijing

games. Athletics Captain Hook

Hooker 's confirmed his then

room mate was treated

poorly. If there has been

discrimination it should be

looked into seriously. Eric

Hollingsworth won't coaching

the squad in Beijing and says

it's nothing to do with him but he's confident there's no

racism now. This isn't a suntan

that I've got, ladies and

gentlemen. I'm very sure of

that. Despite the row over

racism the head coach says this

is the best athletics team to

ever be sent abroad. Their goal

is six medals. They haven't top

that since 1968. Few doubt

hurdler Sally Pearson will

deliver gold, despite a recent

rare loss. If I can run a bad

race and they can only just

beat me like that, then when

I'm on a good race, they're not

gonna stand a chance. And

discus thrower Dani Samuels is

looking for a top medal

too. Start with making it through qualifying rounds

making the top 8 and then

unleash and see what happens. If they needed any

more inspiration, they can look

to their uniforms. Lined with

the names of every Australian gold medal winner.

The Commonwealth Director of

Public Prosecutions has dropped a case against former

Guantanamo Bay inmate David

Hicks. The DPP had argueed the

profits of his memoir are the

proceeds of crime. The Supreme

Court in Sydney has been told

the case has now been dropped.

The 24-year-old man accused of

killing 12 people and injuring

58 others when he opened fire

on a packed movie theatre has

made a strange first court

appearance. James Holmes sat in

shackles looking dais and

appeared not to follow what appeared not to follow what was

happening. It's an unsettling

glimpse of someone many here

consider a monster. He's

likened himself to a comic book

villain and his hair was dyed

red like the Joker. But with

head bobbing and eyes rolling,

the man accused of one of the

worst mass shootings in US

history mostly looked daised.

At times, the once brilliant

neuroscience student appeared

to be falling asleep. Is he on

medication or something? We

would have no information about

that. That is not something

that would be shared with us.

The hearing found probable

cause to keep holding James

Holmes on suspicion of first

degree murder. But there's a

long way to go. There are

different ways that someone can

commit first degree murder. One

of those ways for example is after deliberation. But after deliberation. But another

way is extreme indifference. I

would say there's no such thing

as a slam dunk case. Defence

lawyers secured permission to

inspect the cinema which is

still a crime scene and to look

at Holmes's apartment. The

district attorney wouldn't

Sehwag whether she's

anticipating a sin sanity

defence. A decision on whether

or not to seek the death penalty mightn'ting made for

months there won't be any kind of closure here

of closure here for a long

time. Iraq has suffered its

bloodiest day in two years.

More than 100 people have been

killed and 200 wounded in a

wave of coordinated bombings.

The main targets of the attacks

spanning nearly 20 cities were Shi'ite Muslim districts and

security forces sites.

Officials suspect a local Sunni Officials suspect a local Sunni

affiliate of al-Qaeda was

behind the vile licence which

comes just days before the

beginning of the holy Muslim

month of Ramadan. It will stoke

tensions in Iraq's shakely

sectarian divide, likely to be

further tested if there is a

major influx of refugees from

the conflict in neighbouring

Syria. Syria's admission of a chemical and biological weapons

stockpile has triggered

international alarm. The Assad

regime has stressed they'd only

be use against a foreign attack

prompting US President Barack

Obama to warn Damascus it will

be held to account for any such

deployment. Government troops

appear to have the upper hand

in the latest fighting in the

capital but in surrounding

areas it's a different story.

For these rebels, this is the

only way in to Syria. The

regime's fighting for its life.

It's managed to close every

other smuggler's crossing from

Lebanon. So these men undertake

the back-breaking trek over the

mountains. They don't have

much. Just a determination to

fight. But that might decide

the outcome of this war. We're

heading for Zabadani. It's ring

ed by Syrian tanks. They fire

at will. People say the shelling has got much worse

over the past few days. They

accuse the government of taking

revenge for the rebel assault

in Damascus last week. People

here also say there are far

fewer government troops around.

It's claim they're being

withdrawn from places like this

to defend the capital. These

men are Islamists fighting as

much for God as for democracy.

They believe they're getting

closer than ever to getting rid

of President Assad. Before

Damascus, the regime could

crack down where it wanted, he

says. Now they're weak. Their

soldiers are mercenaries. They

fight only from a distance. We

are fighting for a cause, he

says. They are not. That's the

difference. Government heavy weapons fire

at the rebels, hiding in the

orchards on the fringes of

Zabadani. It may look like

stalemate, but the rebels say

their offensive is not over.

They too are moving to the capital. It is there they

believe that the uprising will

succeed or failing. One ever

Australia's biggest gamblers

has vowed to take a

multimillion-dollar tax battle

to the High Court if necessary.

The Australian taxation office

is alleging the owner of

Hobart's museum of old and new

art David Walsh has an interest

in a punters club which is

claims is a business. It's

seeking more than $37 million

plus interest for a revised tax

assessment for the years 2003

to 2006. Mr Walsh told the

ABC's 'Lateline' program he

disputes the claim saying he

was only he had to pay tax in

20 10 Am prepared to pay tax

from the point they told me I

was taxable but it seems a

little bit disingenuous to then

backdate it a many in of years. The Tax Office is

believed to have frozen Mr

Walsh's betting accounts in

Australia. Its case against the

art philanthropist will go

before the Federal Court next

month. A rationalisation of the

Australian wine industry means

175 jobs will be lost in South Australia. Accolade Wines, which includes Hardys, Banrock

Station and Leasingham, has

reached a bottling and

packaging deal with Treasury

Wine Estates whose brands

include Wolf Blass and Penfolds

A bottling plant south of

Adelaide will be closed with operations moved to Wolf Blass

in the Hunter Valley. Well,

here we go again. Europe has

plunged back into stock market

turmoil. Shares fell across the

Eurozone and on Wall Street

after Spain's long-term

borrowing costs reached a

record high. The interest rate

has gone to a level widely seen

as sustainable. The BBC's Gavin

Hewitt is in Madrid. It's a

very difficult and serious

situation. Borrowing costs at

7.5%. Certainly unsustainable.

All of that leading to fears

that this country will lead a

full-blown general bail-out

sooner or later although the

government denies that. Just a

few weeks ago we were here for

a bail-out for the Spanish

banking sector and everybody

hoped that that would calm the

markets. Didn't work out that

way. Why? The absence of

growth. No growth this year and

now probably not next year. The

country will stay in recession.

And then there are the powerful

regions here in Spain. And

they're beginning to put up

their hands and say they need

help and they'll turn to Madrid

for extra funding. All of this,

I think, is disturbing the

markets. The Spanish crisis is

having an immediate impact on

Italy. Its borrowing costs have

gone up to the point that they

are probably too unsustainable.

And Italy also has got problems And Italy also has got problems

in its cities and some of its

towns and also some of its

regions. We were hearing that Sicily might need some

financial help. Why does all

this matter? Because even

before all these years over the

Eurozone crisis, there is still

not a big enough bail-out fund

to help Spain and Italy if they

really get into trouble. It's

not just the usual suspects

feeling the heat. The ratings

agency Moody's has taken the

first step towards stripping

Germany of its coveted triple A

credit rating. Moody's has

lowered Germany's outlook from

stable to negative and

announced similar moves for the

triple A rated Netherlands and

Luxembourg. In Athens,

thousands of protesters have

taken to the streets in support

of steel workers who've just

been forced to end a nine-month

strike. The former US President

Bill Clinton on a visit to

Greece has criticised Greek

leaders for focusing on

austerity rather than economic

recovery. The Prime Minister

told him that Greece is in a Great Depression similar to the

one in the 1930s. Time now for

a check of the markets with

Michael McCarthy from CMC

Markets. The markets rallied

slightly on opening but it

doesn't last for long? That's

right. We had a surprise on the

open deg spite the negative

leads from overseas share

markets and commodity markets.

We actually starteded on the

front foot today. But as the

morning wore on we've seen

selling hit the market. We're

currently down around 15

points. However commitment is

low. At this stage we have only

traded about $1.1 billion worth

of stock. That's about half of

what we would expect on an

average day. How's the

Billabong share price responded

to a takeover offer? Billabong

is one of the few bright spots

remaining on the market at the

moment. Its shares are up by

more than 20% today after highly conditional and

non-binding offer was received

from PFG. This is the second

time PPG have bid for the

company A number of

institutional shareholders have

indicateed a conditional

acceptance of the offer but all

eyes are on Gordon Merchant the

founder and largest shareholder

to see how he will respond to

this offer. What might give investors some new direction

this afternoon? Traders are

very much focused on the

release of data out of China

today. In the past few months

this has indicated that the

Chinese economy is contracting.

If we see a similar reading

that will be bad news. But if

we see the reading flip back

over 50 the resources and

energy sector in particular

could well get a boost from the

markets. Thank you for that.

Wall Street was mired in red

from the opening bell.

Into a new study has found

less than half of

schoolchildren in New South

Wales get the recommend the 60

minutes of exercise per day,

and the vast majority of young

children haven't mastered basic

physical skills like jumping,

sprinting and throwing and

catching a ball. The author of

the report is Louise Hardy from the New South Wales Physical Acitvity, Nutrition, Obesity Research Group at the

University of Sydney. She's

told my colleague Ros Childs

that this lack of basic ability

means kids are less likely to

participate in sport as they

get older, compounding the

problem. Ai. It's just really

gone off our radar. What we

should be doing is investing in

the pre-school years. And

making sure that encouraging

parents to actually play with

their children, encourage them

to play outside. If it is

daylight hours, don't put them

in front of the screen. If you

do have a backyard, encourage

them to go out there or take

them down to the local park.

And it's actually playing some

games with them, kicking a ball

around, throwing a ball around

with them. Boys did better than

girls in your report when it

came to these physical skills. They still weren't great but

they were a pit better. What

did you read into that? In

terms of the actual skills, the

way we measure the skills isn't

how fast a child can run or how

far they can can throw, it's

about whether they can do it

correctly. Because there is a

sex difference, they are having

a better opportunity in terms

of doing the running around:

are the boys grabbing some of

the balls and the bats to

increase their skill in those

areas? Yeah, not too sure.

Potentially one solution might

be and schools need to look at

this at an international level

as to maybe girls need a bit of

their own space and their own

equipment, but also, parents

need to encourage their

daughters. To move. This isn't

just about sport, it's about

moving. This isn't all about

having the skills, being good

at running an jumping, it's

more about keeping moving and

not sitting down for too

long? Yes and if you don't have

these skills, for anyone that

wasn't sporty at school, I'm

sure they remember that hideous

lining up and having peers pick

them for teams and if you

weren't sporty or able to run,

throw, catch, you weren't

picked. And that was pretty

humiliating for a lot of

children. These are just core

skills. As adults we even need

it. What happens if you need to

throw the car keys to someone

and you can't throw and they

can't catch? Thank you for

that Pleasure. A shopping

centre in Sydney's south-east

has been evacuated after part

of the car park roof collapsed.

It happened at the Westfield Eastgardens Shopping Centre at

about 7 this morning. A beam

supporting the car park has

broken causing the roof to

collapse. Engineers are

assessing the damage. Lucky it

happened earlier rather than if

it happened at 10 o'clock. Then

it would've been a

tragedy. No-one was injured.

The centre will remain closed

for the day. The British

Government has long said it

wants as much as of a spin-off value for the London Olympics

as possible and many businesses

are gearing up for a unique

opportunity. That hey mice to a

London auction house which is

staging an Olympic memorabilia

sale with a very special item

that came from Australia as

Philip Williams reports. There

are more than 500 lots covering

every single Olympic Games.

Medals, posters and flags. But

this small gold medal is one of

the more valuable lots awarded to a player in the victorious

Australian rugby team in 1908.

The first time London hosted

the Olympic Games. Extremely

rare item. We're expecting

between ?8,000 and ?12,000. In

the inscription on the side

confirms it was for rugby, but

no-one knows who it was

presented to. Not even the

owner Warren Marks who lives in

Sydney and is waiting to area

the auction result. I just felt

it was appropriate time now.

The London Olympics which is

where it was born basically. I felt it was time to do

something. It's not the only

item with an Australian connection. This poster is from

the 1956 Melbourne Games.

Quarantine laws meant horses

couldn't be imported for the

equestrian events so that part

of the games was held in

Sweden. We've got a member of

the British team there. There

are uniforms from the 56 Games

and something more contemporary

A flag from the Sydney Olympics

with many of our athletes'

signatures but undoubted ly the

star of the show from an

Australian perspective a small

15 carat gold medal, one of the

first of many to follow.

Australian rugby fullback

Kurtley Beale has appeared in a

Brisbane court charged with

saurting a hotel bouncer.

Police allege the 23-year-old

Wallabies star struck the

Victory Hotel employee last

month. Beale's lawyer says he's

hoping to setle the matter

through mediation. The parties

have agreed to have the matter

resolved by justice mediation

which is a process here through the Queensland Government. And unfortunately given we're in

that process as of today,

there's not much more we can

say. Beale's case is due back

in court late next month. After

a gruelling three weeks racing

around France many of the

world's top road cyclists are

now on their way to London. The

Brits stole the show across the

channel, while it was a tour of

near misses and disappointments

for Australian cyclists. But as

James Bennett reports, there's

reason to believe the future is

bright. The Tour de France

over, Greenedge and former

Australian cycling teach Shane

Bannon is looking to

London. Sort of one-all. We had

a good performance in Athens in

2004 and Great Britain were

just amazing in 2008. So

London's the decider. When

multimillionaire Jerry Ryan

first decided to bankroll the

Greenedge cycling project he

had one goal in mind. I said to

Shane, what do you need to try

and win some of the gold back from the English? The

professional road cycling team

that's just completed its first

Tour de France is only part of

the answer to that question.

The remainder includes the

Greenedge AIS women's team and

maintaining close links to

Cycling Australia and the

national program. It's a similar structure to Bradley

Wiggins' tour-winning Team Sky,

also closely aligned to Great

Britain's cycling

foundation. The Brits copied us

really. This will be Mick

Rogers' fourth Olympics for

Australia plus he is a key

member of Sky's tour winning

team. Green edge still hasn't

created their own identity.

That will come next year. Shane

Bannon agrees when it comes to

Olympic golds he's quietly

confident . They're excited.

They're going to London

expecting to do some very good

performances. The men's road

race is one of the very first

gold medal events this Saturday.

America's first female

astronaut Sally Ride has died

from pancreatic cancer. She was

61. Ride made history in 1983

when she climbed aboard the

space shuttle 'Challenger'. At

32 she was also the youngest

American to blast off into

space. It's a real experience

and the experience of a

lifetime to be able to fly in

space and fly aboard the space

shuttle. I have toad mitt I'm

more excited about that

opportunity than I am about

being a footnote in history. She was an

accomplished physicist and

engineer who helped develop a

robotic arm for the space

shuttle. She was also part of the team that investigated the

1986 'Challenger' disaster. The

US President said she was a national hero and a powerful

role model who taught girls to

reach for the stars. To the

weather now. And the shat light

shows thick cloud crossing from the west into South Australia

with a cold front, with cloud spreading into Victoria ahead

of it. And low cloud being

directed onto the east quote in

moist southerly winds A front

should bring a cold change.

Showers and the odd storm to

South Australia, western New

South Wales and Victoria.

South-westerlys in the wake of this front should trigger

showers across southern W A and

South Australia and south

easterlies should cause showers

on the Queensland and northern

New South Wales coastline.

Around the capitals now: Back to the Stock Exchange now for a final check of the

markets.

That's the news for now.

There's continuous news on ABC

News 24 and there's also news

on-line. Our next full bulletin

on ABC1 is at 7 o'clock this

evening. I'm Nicole Chettle.

We'll leave you now with a look

at people heading to the

Olympic Stadium in London for

the Games opener rehearsals. Have a good afternoon. Closed Captions by CSI

This Program is Captioned Live.

APPLAUSE

Good evening and welcome to

'Q&A'. I'm Tony Jones and

answering your questions

tonight - the vice chancellor

of Sydney University,

Attorney-General Nicola Roxon

who stepped in at the last

minute to replace Julie Colins

who has gone down with the flu.

The national director Simon

Sheikh who has returned to TV

three weeks after his live

dramatic TV collapse. And the

author of what makes a good

school - Jane Caro. And the

Shadow Education Minister

Christopher Pyne. Please give an especially warm welcome to

our panel tonight.

'Q&A' is live from 9:35

eastern standard time and