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(generated from captions) Peace envoy Kofi Annan quits over failure to stop the

violence in Syria. When the

Syrian people desperately need

finger poictd and name calling action, there continues to be

in the Security Council. This Program is Captioned

Live.

Australia wins silver in

kayaking and bronze in

cycling. What to do about Josh

Booth - the Australian rower

who smashed windows after

losing his race. Once we have

the results of the

investigation then Nick Green,

the Chef de Mission, will

determine what discipline, if

any, needs to be applied to

Josh. And firefighters battle a large factory blaze in

Melbourne's west. Good morning, it's Friday, 3

August. I'm Michael Rowland And

I'm Karina Carvalho. The top

story - Kofi Annan has had

enough. Frustrated by the

worsening civil war, he's given

up on diplomacy and will resign

at the end of the month. Mr

Annan has blamed finger poict

and name calling in the UN

Security Council. He says the

failure to agree on sanctions

against President Assad has

undermined his ability to do

his job. Meanwhile, there's

been no let-up in the battle

for control of Aleppo. The

Syrian Army is also trying to

drive out armed rebels from

Damascus where activists say

dozens of people have been

America correspondent Jane executed. For more, our North

Cowan joins us from Washington.

What explanation has Kofi Annan

given for why he is stepping down? Ka Rina, he is blaming

not just intransigence on the

part of the Syrian regime but

also this clear lack of unity

on the Security Council and

disunity in the broader

international community: He is

saying at a time when the

Syrian people desperately need

action, what they are getting

is finger pointing and name calling on the Security

Council. And his mission

clearly has been plagued by

deep divisions on how to best

approach the situation in Syria

as the violence continue s.

There was the abject failure of

his cease-fire plan in April

that never took hold. There

have been these three blocked

attempts, blocked by Russia and

China, these attempts by West

everyone and Arab nationings to

- Western and Arab nations that

would have ratcheted up

pressure on Syria and Kofi

Annan says he can't want peace

more than the protagonists that

control the outcome. Is Without

serious purpose frl and united

international pressure,

including from the powers of

the region, it is impossible

for me or anyone to compel the

Syrian government in Syrian government in the first

place and also the opposition

to take the steps necessarily

to begin a political

process. So what's been the

reaction to Kofi Annan's

decision? The UN chief Ban

Ki-moon has responded to this

through his spokesman, who is

really praising Kofi Annan's

efforts which he describes as

determined and courageous. He has expressed profound

admiration for what he says is

a most difficult and thankless

task. The White House, however,

is saying that Kofi Annan's

departure really underlines the

failure of the Assad regime to

abide by the peace plan and

also is pointing the finger

more now at Russia and China,

saying this underscores too the

failure of those countries to

hold the Assad regime

accountable. But it has to be

said that the US for some time

now has been shifting its focus

away from the diplomacy at the

Security Council, which is seen

as dead locked since the failure of that last

resolution, and is instead said

to be looking more at backing

the rebels and the US President

Barack Obama is said to have

signed a secret order that

authorises the CIA and other

American agencies to help the

rebels in ways short of

providing arms, as another way

of getting President Bashar

Al-Assad out. But when you look

at the other side, the Russian President Vladimir Putin is

saying that he regrets Kofi Annan's departure and he is

calling the situation in Syria

a tragedy. Let's have a listen

to what the Russian Ambassador

to the UN has had to say. We

regret that he chose to do so,

we have supported very strongly

Kofi Annan's efforts. He has a

month to go and I lope this

month is going to be used as

effectively as possible under

these very difficult

circumstances in order to keep

pursuing the goal of a

political settlement in Syria

and stopping the bloodshed in

that country. I am very

encouraged that the Secretary

General is already working on

finding a successor for Kofi

Annan who would be able to pick

up this daunting task of

putting an end to the crisis in Syria. That is the Russian

amentd - Ambassador to the UN.

This doesn't bode well for the

chances of a diplomatic

solution in Syria, does it? No.

And the UN chief Ban Ki-moon

spokesman was pressed on this by journalists in New York

saying, you know, the problems

experienced by Kofi Annan

aren't just his alone, that

anyone who succeeds him won't

they face exactly the same

problems? And the response to

that from Ban Ki-moon's

spokesman is the office of this

international peace envoy

remain, it will continue to do

its job and he is saying that

the hand that was extended to

Syria, to both sides there, was

Kofi Annan's hand it also was

the hand of the Security

Council and the 6-point peace

plan still remains the best

option and that that will

continue. But interestingly,

Karina, the French, who that retoting presidency on the Security Council, are saying

that the difference s there

reconcilable and they will be amongst the member s are ir

shifting their focus now to

getting members to agree on the

less controversial aspect of

getting some kind of

humanitarian relief to the

people affected by the

fighting. To the rest of the news, here is Michael

Rowland. Good morning.

Australia has won more medals

at the Olympics on day 6 of the

competition. Jessica Fox won

silver in the kayaking K1

event. The 18-year-old finished

second. Australia's also taken

a bronss tblons the cycling

team sprint. Australian Olympic rower Josh Booth may face charges over an alcohol-fuelled

incident in an English village.

Booth allege edsly damaged

three shop fronts of his team

finished last in the men's 8

final in Eaton Dorney: He his

head and was taken to police.

He's since been released. A

large fire has ripped through a

factory in Melbourne's west

overnight, it's estimated the

blaze at a Laverton North

factory caused about $2 million damage. Firefighters are still

investigating the

cause. Opposition Leader Tony Abbott will today unveil the

Coalition's plans for a tougher

foreign investment policy. They

include new hurdles for

overseas companies seeking to buy Australian properties and

widening the membership of the Foreign Investment Review

Board. The plan s will be

released as a discussion paper

setting the scene for further

debate with the Nationals who

have been pushing for much

tougher action. Spanish police

believe they've foil add

possible terror attack in

Europe. Three suspected

al-Qaeda members have been

arrested - one in southern

Spain and the other in a French

border. The Turk and two Chechens had enough equipment

to blow up a bus. Looking at finance -

Australian officials say they will wait until British police finish their investigation before deciding

whether to discipline Josh

Booth. The Olympic rower was detained by police after allegedly damaging three shop

fronts after earlier losing his event. At the moment an

investigation is under way. He

hasn't been charged or arrested

formally under the British

legal system. So we're just

waiting the investigation to be

carried out by British police

until we hear any further news.

Once we have the results of the

investigation, then Nick Green,

the Chef de Mission, will

determine what discipline, if

any, needs to be applied to

Josh. He has finished competing

in the Olympic Games now:

Clearly it is a very serious

incident or very serious allegations but we will wait

until the results of that

investigation. Until we

determine what to do next. That

is the deputy Chef de Mission, Kitty Chiller speaking from

London. Let's look at some of

the results that have come

through overnight and just a

short time ago Michael Phelps,

making history again. He's won his first individual gold medal

of the Games in the 200m

individual medley. He's also

won that gold medal for the

third consecutive time. First

time any male swimmer has done

that, takes his medal tally at

these Olympics to 20 all up. 16

gold medals, that man is well

and truly a freak. And as we

mentioned, we don't want to say

too much because Amanda Shalala

is joining us from London

shortly. Just recapping that

tremendous news about the

bronze in the cycling. Anna

Meares and Kaarle McCulloch

doing really well in a controversy-charged event. More

on that from Amanda shortly.

Also a magnificent achievement

in the kayaking. Absolute ly

unbelievable. Just 18 years

old. Both of her parents

- Jessica Fox. Jessica Fox's parents are

Yaccas. The woman who won the

gold medal, the Czech opponent,

stood on the podium with Fox's

mum in Atlanta 16 years

ago. Both her mum and dad are

former olimpiance and Jessica

was saying she's done one

better than her mum, who only

got a bronze. Let's move to

other news now. A 22-year-old

man has been sentenced to life

in prison for murdering Queensland school boy Trinity

Bates. Slater was due to face a Supreme Court next week but

until he made a last-minute

plea of guilty. Francene Norton

reports. Their daughter's

killer is behind bars but it

brings little comfort to the

parents of Trinity Bates. This

is not solved for them. This is

not over for them. This is just

a legal conclusion. It's

certainly not a conclusion in

what is a human tragedy. It was

a senseless crime that shocked

a community: An 8-year-old girl

taken from her bed room in the

middle of the night. Trinity

Bates was choke and left to

drown in a nearby drain. Family friend Allyn John Slater had

been prepared ing to face a

murder trial when at the 11th

hour he pleaded guilty. The

police officers who worked on

the inquiry for two years it's

been a long journey for a lot

of those officers. Supreme

Court Justice Duncan McMeakin

told Slater no other sentence

could be given except life

imprisonment. He said -

Slater remained slump over

as details of the girl's horrific injuries were read out

but it was too much for Trinity

Bates's parents. They left the

courtroom in tears. Slater will

be eligible for parole in 2025.

But the motivation for his crime may never be known. Let's look at the front

pages of the Friday morning

newspapers now. And the 'Australian' speaks to a former

union official about a scandal at the Australian workers

Union, that datings back 17 years. Tony Abbott is proposing

tougher restrictions for

foreign buyers trying to

purchase Australian farmland.

That niece the 'Age'. The

'Canberra Times' reports retail

sales were up again last month

but it was all too late for

Darrell Lea. The 'Financial Review' says business groups

have dismissed the first review

of the Government's industrial relations system. The 'Courier

Mail' says a fully staffed new

hospital has been left idle for

two months while the Queensland

Government sacks thousands of

public servants. The front page of 'The Daily Telegraph'

reveals young offenders could

be given cautions instead of

jail time under changes being

considered in NSW. The 'West

Australian' says one of the

State's worst child sex

offenders has been released

just two years after a judge

declared him a risk to the

community. 'The Mercury' report

s a paramedic is facing serious

drugs charges over the alleged

theft of close to 70 viles of

morphine from Ambulance

Tasmania. The 'Advertiser' says

there will be a push to boost

tourism in browsa after a shorp

fall in visitors in the last 10

years. The 'Herald Sun' says an

air race over Melbourne is in

the sights of Victorian major eventses chiefs. The front page front page the 'Sydney Morning Herald' details the

reaction to James Magnussen's

silver medal in the 1 lunm freestyle final. And the

Northern Territory News reveals

just how much beer was drunk in

the Top End last year, but it

says it's on the way down. If

we go back to the 'Sydney

Morning Herald', Richard Hynes,

the chief sports comium for the 'Sydney Morning Herald' has

written one of the best pieces

that puts into perspective this

entire debate about if you

don't win gold you're not a

good enough athlete. We saw

James Magnussen's reaction. We

saw Sally Pearson's - Emily

Pearson's taers. He points out

that Nathan Adrian who piped

James Magnussen at the swim

said at the press conference,

asked how he would feel if he

got silver, he said, 'I could

still know what honour it is to

have a silver medal, it's the

Olympics after all.' We're

seeing really different

reactions. Sally Pearson has

our 100m hurdles chance has

come out overnight and says I'm

no James Magnussen. As to to

say she will not be feeling the

pressure the way James

Magnussen did in this first week of the Olympics. So we're

seeing different reactions from athletes as to the pressure

they're under and how they're

likely to perform. We will be

joined later in the program by

a sports academic Martin

Doulton who has written a very

well-aimed piece at least about

this misaimed pressure on

athletes, particularly the

swimmers and Howath leets are

make to feel second rate by

themselves, their koenks their

sponsors but us in the media

and the public if they don't

get that chien eye gold medal.

Over to you, we will finish the

week as we began but already

there's been so much debate

over the course of the few days

that it's worth going back to -

is too much pressure being

placed on our athletes?

A quick look at the weather around the country.

These are the top story on

ABC News Breakfast - Syria's

peace envoy Kofi Annan is

quitting out of frustration. Mr Annan says the Security

Council's failure to agree on

sanctions against Syria has

undermined his job. He will

leave at the end of the

month. Australia has won

another two medals at the Olympics. Jessica Fox won

silver in the kayaking and we

got a bronze in the cycling. Australian officials

are yet to decide whether they

will discipline Olympic rower

Josh Booth. British police are

investigating Booth after he

allegedly damaged three shop

fronts after the night he lost

his event. Lots of very big

finance news happen ing overnight. The head of the European central bank says measures to support the

struggling Eurozone will be

announced in coming weeks. European markets fell after

that announcement. Spain and

Italy's markets dropped more

than 4%. Investors had been

hoping for immediate action but

the bank's President, Mario

Draghi, says he does haven't

any specific measures in

mind. There wasn't any specific

instance that led us to have

the discussion we had today.

There was just the sense of

worsening of the crisis. And of

the worsening consequences of

the financial markets

fragmentation in the euro area. Not quite the reaction from Mario Draghi markets had

been seeking. They expected him

to say, yes, the ECB will buy

these troubled Spanish and

Italian bonds to stop those

countries eventually going the way of Portugal, Ireland and

Greece. The fact hi didn't see

that and he was the Spanish markets fall sharply and their

bond yields go through the

roof, which has raised even

more concerns about whether the

countries are going. This comes after the Federal Reserve

denied decided not to put more

stimulus into the American

economy. So it's been a big

week on markets around the

world, or at least in the

United States and Europe. We

will look at the markets now.

Let's go back to sport now. Lisa Maksimovic joins

us. Good morning. Let's get

more news from London on that

medal hau. A bronze an the

silver for Australians. We will

go straight to check out more

of the action overnight at the Olympic Games joined by Amanda

Shalala. At Olympic Park.

First, before we talk about our

medal s in the swimming, in the

pool lots of action again this

morning. Melanie Schlanger,

Amanda, unfortunately fantastic

performance but not quite

enough for a medal

placing. Schlanger was hoping

to get another medal at these

Games. She was instrumental in

helping Australia of the

women's 4 by 100m freestyle

gold. Still Australia's only

gold of these Games. She put in

an incredible race but was just

over over powered by some more

experienced competitors in the

ends. She came in fourth

position. One of the stories

from the pool tonight is

Michael Phelps., the American

Wonder swimmer. He is

absolutely amazing. He has now

won his 20th Olympic medal

overall, 16 of them gold. He

took out the men's 200m individual medley. He has now

become the first male swimmer

to win gold in the same event

at three Olympic Games. He

edged out his com patriot Ryan

Lochte for that. The Americans

came away with three golds

overall in the pool tonight so

that bumps them up to 18 golds

overall, now in equal first

with China. China just ahead

because they have more sill

verse. Half an hour after that

record breaking swim he then

went on to win his semifinal in

the 100m butterfly, also just

extraordinary that he had that

energy left in the task. To the

50m freestyle event and we had

James Magnussen and Eamonn

Sullivan competing but just

Eamonn Sullivan has gone

through to the final. Eamonn

Sullivan has made it through to

the final. He will be hoping to

maybe sneak in and get a medal. James Magnussen never fancied

his chances of getting through

to the final let alone winning

a medal. He was hoping to get

in there to have some

redemption for missing out on

the gold in the 100 froo. But

he will still have the 4 by 100

medley to look forward

to. Plenty of drama on day one

at the velodrome. Tell us what happens with China and Great

Britain. This was quite

extraordinary. An amazing way

to open up the day one of track

cycling at the Olympics. Victoria Pendleton and Jess

Varish from Team GB had

qualified fastest and made it

through to the gold medal race

but then they were dis

qualified because of a passing

violation. So then it was

Germany and China in the gold

medal race and then China was

dis qualified for a similar

infringement, so Germany

efrnded up taking out the gold

medal. Australia raced off with

Ukraine for the bronze, and Kaarle McCulloch and Anna

Meares took out that bronze

medal. They were absolutely

delighted with that effort. But

Kaarle McCulloch, who is at her

first Olympic Games, says she

is now looking for gold in

Rio. I think my coach is probably going to kill me

because tomorrow I will wake up

and go, what can I do better to

do better next time. I actually

just wrote a message to Anna

saying let's lock this up for

Rio. We want a gold medal together and hopefully we can

do that in Rio. And in the

men's team's pursuit, how did

they go, Amanda? The Australian

men's in the team pursuit has

qualified second fastest behind

Great Britain who broke the world wrorlds record. So this

is set up for an epic showdown,

as we vex pected to see in the

velodrome, GB versus Australia,

this is going to be one of the

marquee event of the track

cycling so everyone has to

watch out for. That it should

be Australia versus Great

Britain going head to head for

gold. One of the great story

force Australia overnight is

Jessica Fox just 18 years old

and now a silver medal to her

name. She is the taught

daulther of two olimpiance.

Tell us about her

event. Jessica Fox comes from

some incredible pedigree. She

qualified for the final and

that was a surprise enough in

itself. Then she was the third

kayaker out. So she had to wait

for all these other women, all

these world champion, world

number ones to come after her

and one by one they couldn't

match their tie. Emily Fare

eventually bettered Jessica Fox

time but she was still in the silver medal position. Her

mother Myrium is her coach and

won a bronze in Atlanta. Her

father competed for Britain in

kayaking but he hasn't won her

medal. So she's bettered bhoelt

her parents by winning a

silver. She was absolutely

ecstatic with taking out an

Olympic medal. It's too hard

to wipe the smile off my face.

I am sitting on a cloud and not

coming down. What was the race

like for you? To be honest, I

can't remember much of it. I

just I remember sitting on the

start and just feeling pretty

happy to be there, relax and

just ready to go. Then I just remember looking at the

scoreboard and seeing my time and thinking that was pretty

good. We will see and I just

had to wait and it was such a

nervous wait. But in the end it

held up and silver is just

amazing. So much more than I

expected. It took Great Britain

five days to win a gold medal

but they seem to have had

somewhat of a gold rush

now. There were two gold medals

for Team GB yesterday, another

three have been added today There was Peter Wilson in

the men's double trap. There

was the men's slalom team and

the men's team sprint in the

cycling picking up gold. That

team included Sir Chris Hoy one

of the greatest psych cyclists

of all time. That was his fifth

gold medal, equally Sir Steve Redgrave in that

respect. Yesterday, we saw

Bradley Wiggins pick up gold in

the men's time trial. And he

got a little overexcited. Maybe

he posted on Twitter that he

got out and had a few beverages

shall we say and got a little

bit overexcited about it. Some

people have been criticising

for him going out and getting

drunk and advertising that. But

Team GB officials were not

concerned by it. A number of

people have commented wrongly

this morning he wasn't entitled

to go out and enjoy himself

yesterday evening. I am of the

group who says he's absolutely

thoroughly entitled to have a fantastic party and celebrate. And nobody deserves

it more. You get a bit

dehydrated but therefore that

vodka and tonic might have had

more of an effect than it would

have under normal circumstances

but I remember well coming off

a rowing race in much the same

mind set once when we won the

world championships heavily

dehydrate and celebrated all

night. To be fair he did have

fish and chips as well. I

definitely did. I agree with

Connor, he is entitled to

celebrate. It's extraordinary

what he's done. I think every

person in the country would

want to buy him a drink. Sally

Pearson, no-one can accuse her

of lacking confidence but what

is she saying about her chances

in the 100m hurdles? A lot of

focus has now turned to Sally

Pearson to win gold. The focus

pre-Games was mainly on Sally

Pearson and James Magnussen as

two of Australia's greatest

hopes at these Games. Magnussen

has still won a silver medal

but Sally is talking all about

the gold. That is all she

wants. She isn't concerned that

Magnussen didn't manage to

achieve his goal of winning

gold. She says I am here, I am

ready to do this and I am going

to take it out. Everyone is

chasing me and I'm the hunted

really. But at the same time it

keeps me on my toes and I to go

out there and race. I love competition. That's what I

drive thrive on. If it all goes

to plan, I should be winning

and especially with my personal

best is so much faster than everyone necessarily the race that they have a lot of

catching up to do if they're

running at their best. We

will speak to you later on. She's confident and that

is important. So was Magnussen.

But she also does make the

point that she has been around the block many more times than

Magnussen. She knows how to

deal with Olympian pressure. A

bit unfair to be compare ing

the two athletes. What they're

saying is here is failure, are

you going to succeed? Exactly.

And that's been some of the

criticism leveled at Magnussen

is that he talked the talk a

bit too much and therefore bit too much and therefore when he didn't in his eyes and in

the eyings of some part of the

media didn't succeed, he

becomes target number one for

the Australian public. Which is

so wrong on so many levels. It

is wrong. Let's hope Sally

Pearson can get what she wants

and we all know that is a gold

medal. Quickly, the cycling

drama, total drama, not only

did the Great Britain s they

were the favourites, but they

were in front of a home crowd

and not just a home crowd but Kate Middleton and Prince

William. Talk about

pressure! And when they were

dis qualified it took some

minutes for it to filter

through. They didn't realise

what was going on. There was

nothing coming up on the board.

You can see their reaction

there, there's China celebrating. Briefly. Lap of

honour before they realise

- It's yet another twist. Let's

not forget there's been this

intense rivalry between Anna

Meares, there you see her and

Victoria Pendleton for so many

years. She's got the upper

hand now. Psychologically at

least in the next week or

so. That will be good for Anna

Meares. That velodrome is going

to be some interesting watching

over the next few days. And the audience will be hoping that

Great Britain has a little bit

more luck. Thanks, Lisa. ABC

News Breakfast of course can be

watched live on the web. Just

visit the main ABC News

website, there you will also

find the ABC's live Olympics

blog, which brings you the latest results as they happen. Paul Higgins joins nous

with the weather. Good morning.

It's another clear day across

the nation's north and not all

that much happening in the

south. We had this weakening

cold front crossing Victoria

and Tasmania bringing just a

little bit of rain. Another is

clearing the south-west of WA,

it's going to deliver showers

to the south-east tonight and

tomorrow morning. In Queensland

today - brsh You're watching ABC News

Breakfast, it's great to have

your company this thorning.

Still to come, Chip LeGrand

from the 'Australian' newspaper

will be here on the couch to

look at the Friday morning

nurs. We will find out about a

new breakthrough in the search

for the crur to the deadly

Hendra virus. And will Ford

stay or go? We will be speaking

to a former government to a former government policy

adviser who believest it is not

too late to stave struggling

car maker. First, the latest

news with Karina. Leading the

news this morn - Syria's peace

envoy Kofi Annan has given up

on diplomacy and will resign at

the end of the month. Mr Annan

has blamed finger poict and

name calling in the UN Security

Council. He says the failure to

agree on sanctions against

President Assad has undermined

his ability to do his

job. Australia has won more

medals at the Olympics on day 6

of competition. 18-year-olds

Jessica Fox won silver in the

kayaking K1 event and Anna Meares and Kaarle McCulloch

have taken a bronze in the

cycling team sprint. Australian

Olympic rower Josh Booth may

face charges over an

alcohol-fuelled incident in an

English village. Booth

allegedly damaged three shop

fronts after his team finished

last in the men's 8 final at

Eaton Dorney. Police are

continuing to investigate. A

large fire has ripped through a

metal factory in Melbourne

overnight. It's estimated the

blaze in Laverton caused about

$2 million damage. No-one was hurt. Opposition Leader Tony

Abbott will today unveil the

Coalition's plans for a tougher

foreign investment policy. They

include new hurdles for overseas companies seeking to

buy Australian properties and

widening the membership of the

Foreign Investment Review

Board. The plan s will be

released as a discussion paper setting the scene for further

debate with the National s who

have been pushing for stronger

action. Let's get more on our

top story now and the US's

peace envoy Kofi Annan has

announced he's stepping down at

the end of the movement he says

the Syrian people desperately

need action but all they're getting from the Security

Council is finger pointing and

name calling. Without serious

purposeful and united

international pressure,

including from the powers of

the region, it is impossible

for me or anyone to compel the

Syrian government in the first

place and also the Opposition

to take the steps necessary to

begin the political process. At

a time when we need, when the

Syrian people desperately need

action, there continues to be

finger pointing and name

calling in the Security

Council. I have, therefore, informed the Secretary General

of the UN and the Secretary

General of the Arab League

today that I do not intend to

continue my mission when my

mandate expires at the end of

August. Kofi Annan and speaking

before the announcement

Britain's foreign secretary

willial Hague again points ed

the finger at Russia and

China. It is very depraiting

that Russia and China again

secretoed the resolution which

put forward, which was on the

19th of July. We will keep working with them. But in the

meantime, we will step up our

practical support for the

Opposition. We call on other countries to implement sanctions, particular to

others. We will document human

rights abuses that are taking place, and do everything else

that we possibly can and legally can legally can to increase the pressure on the Assad regime. And Russian President

Vladimir Putin and British

Prime Minister David Cameron have discussed Syria during

talks in London. Mr Cameron

failed in his bid to persuade

Russia to take a tougher Russia to take a tougher line

against the regime. Of course there have been some

differences in the positions that we have taken over the

Syrian conflict We both want

to An end to that to An end to that conflict and

a stable Syria and we will

continue to discuss with our

Foreign Ministers how we can

take this agenda forward. Now,

you may have recalled earlier

in the week the Treasurer Wayne

Swan took - launched a very stinging attack on New Jersey

and invoking Bruce Springsteen

as one of New Jersey's

favourite son, essentially

saying unless the Australian economy made changes to

productivity in the like it

would end up as the antipodean

version of New Jersey. Not

surprisingly this has not gone

down well at all in that

State. What has New Jersey come

back with? Lots of criticism.

We can maybe bring you some

vision of their favourite son,

I don't know whose favourite son Wayne Swan is but there he

is. We had a range of people, a

spokesman for the governor of New Jersey said give me a

break, I would like to know if

he has any knowledge of New

Jersey beyond what he heard in

a Bruce Springsteen song: And

this - this was a desert

f-sized disto New Jersey. Don't

let Australia become New Jersey

where the people and skills are

no longer in demand: Was was

this a blunder from down under? Tom Keen, a top

Republican says apparently the

electoral silly season is not a uniquely American phenomenon. There you go. New

Jersey 1, Wayne Swan 1. We will

see where the contest develops.

Union s are settling in for a

long campaign against the

Queensland Government's job cuts. Industrial action will start next week and there will

be a state-wide day of action

next month. Unions are not

mifnsing their words. The -

mincing their words. The public

service at the moment is in the most fearful State it's ever been in the history of Queensland. A rolling campaign

against thousands of public

sector job cuts start s next

week. There will be combined

statewide action on the day of

the Budget in September. But

the Premier says the public

appreciates the need to save

money: Yes, we're getting the

ork straited campaign from the

union operatives. But people

came up to me all weekend and

said, 'We know you're making

the tough decision. Thank you,

keep going.' Union leaders say

he is not meeting the right

people. She clearly not listening. The Council of

Unions med met in Brisbane. The

delegates flfrd us they had had enough of this

Government. Campbell Newman

told ABC Radio he doesn't want

people to lose their jobs. This

is not fun for me. I don't get

off and neither do my Ministers

get off, it's it's about sheer

financial necessity. Unions may

say they've had enough of the

Newman Government after four

months but with 78 MPs the LNP

can survive even a major

industrial campaign. The QCU knows

knows that. I don't believe at

all that at the moment Campbell

Newman would lose office. But they're in for the long

haul. There is a thousand days he's been elected for. We're

one tenth of the way into that.

It will be a staged campaign

and a long, long drawn-out

campaign. Threats by the

unions for industrial mayhem go

no way to helping fix the

problem. The Treasurer says he

doesn't have figures yet for

redundancy pay.s. The Federal Employment Minister Bill

Shorten has tried to dispel

growing doubts about the future

of the Australian car

industry. Mr Shorten says it's

not inevitable that Ford's

production line also inevitably

shut down but as Geoff Water s

reports more analysts beg to

differ and they're calling for

an inds to city form of

industry support. Ford's first

Australian cars were locally

ace Asem bled from parts made

in Canada. The first ute was

designed here. And now our star

- In the '60s came a locally

made Falcon. Do you realise

that Ford and AWA have combined

to develop three out standing

transiter s powered

radios? Past glories are no

guarantee of what's to come.

Indeed for days now speculation

has turned to the company's

future and to the wider auto

industry. After all, Mitsubishi

only closed four years ago. Who

will go next? I think they're

probably fight Right to say

Ford. Ford are producing cars

that quite frankly buyers do

not want. According to many

observers across business and

academia it will get worse from there. Our domestic car

industry can't compete. The

latest job losses are at the APV components makiner

Melbourne where all up more

than 100 people are affected.

That brings this year's

nation-wide total to more than

1300 but the government insists

Ford's and the industry's

demise is not inevitable. I do

recognise that the automobile

industry is under pressure. I

do know the Government has

supported keeping Ford here and we've managed to keep Ford Ford here longer than others would

have done if they had been in power. Around unions say

there's more to having an

automotive industry than making

cars. The car industry is the

absolute hub in manufacturing

of innovation, of skills development, of new

technologies. But at what

price? . Holden received

around $90 million of

government support last year. Holden reported a profit

of E90 million. And Professor

King says that money ended up

in Detroit. And we will be

discussing the whole issue of

industry assistance to car

makers in about 25 minutes here

on ABC News Breakfast. The

National Portrait Gallery in

Canberra has worked s that a

centuries are old but the

newest art prizes focuses on

the cutting edge The award is

open to young artist s with an

interest in digital

technology. The ritual of the school photo is something

everyone goes through. But it

probably didn't turn out quite

like this. I wanted to do

something that was real, that

felt real, that I felt I was

being honest and not

compromising. That's why I

decided to go all the way with

it. For hours and hours on end,

25-year-old Laura Moore stat in

front of the camera lets the

memories well up and the tears

fall down. The Sydney artist

meditated on her more miserable

experiences at school and

turned into it a self- portrait

that is easy to identify.

With It's a very emotional time

and I guess maybe we forget

more about the intensity of

those feelings and what this

digital portrait does is it

reminds us very strongly about

how emotional that time can

be. An honest portrait can be

hard to paint. Peeling away the

layers to get to the person

inside. The ID digital portraiture prize en courages

young artists to use

screen-based media to paint

that picture. Each explore identity from different point

of view. Some of them also in

corporate an investigation of

the self, others in corporate

how you could act out the

persona of someone else many

artists used humour to disguise

and expose personality. While

some works toy with the idea

that there's no such thing as a

single face for any person. For

the winner, the prize could

help fave way to greater recognition. When you have

really put a lot of yourself

into something to then see it

on a gallery wall and know that

people are going to look at it

is, it's probably the most enkouvernling thing I've ever

had happen. In a world

bombarded by digital

decoration, it's nice to know

that even the most high-tech of

schools can still paint an

honest picture. As week

one of the Olympics draw to a

close, we're going to go back to essentially where we started

in the week, and that those are

the continuing questions about

whether too much pressure is

being placed on Australian

athletes to win gold and

nothing but gold and as a result too much pressure result too much pressure placed

on them to feel as losers if

they come second or third, it's

an issue that's dog sod many

athlete, particularly the

swimmers, over the last few

days You will see pretty much

all the front pages of the

numpts which have 2cm

measurement with which is

between gold and silver where

James Magnussen same second

yesterday. We can see the front

page of the 'Sun-Herald'. We've

had Sally Pearson saying she is

a much more experienced athlete

talking up her chancings of

winning gold in the 100 m hurdles. Because she going into

the Olympics along with James

Magnussen two of the big gold

medal hopes in events for

Australia. So we're asking you

this morning is too much pressure being placed on

or@let'ses an do they show not

enough grace and humility when

they pick up a second or third?

That is an Olympic silver medal

and an Olympic bronze medal, so

much belter than so many

hundreds, thousands, if not

millions of athletes around the

world. Richard - seemingly it's

it's about winning gold not

about having done your best.

They are set up to feel a failure when they don't come

first. Shannon - I'm fine with

them not winning as & as long

as they give it air all. But

their tantrums after the event

is just plain

embarrassing. Kathy has

responded to your question

about whether they need to show more grace when they win. She

has a simple response -

yes. There was a commentator on the host broadcaster this

morning, a bit of debate over

how to pronounce Melanie

Schlanger's name. I don't think

there should be any controversy

about this. But he said in

effect I don't care how he we

news on it as long as she wins

gold. There therein lies the

problem. There's send us your

comments. You're dwaching

ABC News Breakfast - Syria's

peace envoy Kofi Annan is

quitting out of frustration. Mr

Annan says the Security

Council's failure to agree on

sanctions against Syria has

undermined his job. He will

leave at the end of the

month. Australia has won

another two medals at the

Olympics. Jessica Fox won

silver in the kayaking. Anna

Meares and Kaarle McCulloch

took bronze in the cycling team sprint. Australian officials

are yet to decide whether they

will discipline Olympic rower

Josh Booth. British police are

investigating Booth for

allegedly damaging three shop

fronts after his team came

last. For a look at the

national newspapers this

morning we're joined by the

'Australian's Chip LeGrand.

Good morning. Good

morning. Going to start with

the exclusive on the front page

of your newspaper. We will get

Away from 2 pool for a little

while. This is a very

intriguing story, it's long

running story. This goes back

17 years and it's a scandal

involving the Australian

workers Union and the alleged

misappropriation of funds. The

reason it's still being talked

about now is that the central

figure in that was Bruce

Wilson, who was then the State

secretary of the union. His

partner at the time was Julia

Gillard, who was also coing

legal work for the union when

she was part of Slater and

Gordon. Who has happened today

is that Ralph Blewitt, the

other union official who was accused of being involved in

the allegid fraud, funds from

the union has for the first

time spoken publicly about this. What he has told our

reporter is that he wants this

thing to be put to bed, he

doesn't want to be haunted by it

it his whole life and he is

prepared to tell what he nose

and what his involvement was to

police, provided he's given

indemnity from criminal prosecution. What is the

connection here with Julia

Gillard other than the fact she

at one stage went out with this

former union official? So she

was his partner at the time,

but also more importantly

perhaps she was partner with

Slater and Gordon. So in effect

she was the lawyer working with

the AWU and part of that legal

work for instance was the

establishment of this AWU

workplace re forms agenda,

which was a bit of a sham body, it'ses no being discovered,

that was set up and used,

police suspect, to

misappropriate funds from the

union. So Ms Gillard has said

over many years and several

times that she wasn't involved

in any wrong doing and she

didn't know of any

misappropriation of funds by Mr

Wilson or anyone else at the

time. But she was actually in

the middle of this, albeit

perhaps without her

knowledge. But her office has pointed the 'Australian' back

to those original denials as

her response to questions about

this story? Sure. And to be

fair, Ms Gillard hasn't got

anything more to say on this

you would think until we hear

what Ralph Blewitt does have to

say about what happened. The next step would be whether or not police are willing to sut

Kut a deal with Ralph Blewitt.

I must be said there's been

police investigations run for a

really long time, there's been

a 3-year police investigation

in Victoria and WA. They never

got to hear from Ralph bluit.

So if they knew can they may

well raise fresh questions

about this that the Prime

Minister needs to respond to. Let's go to the 'Sydney Morning Herald' which reports

on Tony Abbott's latest venture

into the foreign policy. There's ban lot of

tension in the Coalition on

this. You have the National

Party and rural Liberals want

to tighten up the restrictions

on foreign ownership,

particular agribusinesses and

land. So what you might call

traditional Liberals are not so

sure. But what the Coalition

will release today is a paper

on these issues and in it it

advocates dramatically reducing

the threshold by which the

Foreign Investment Review Board

would get involved in vetting

foreign investments. So at the

moment the threshold - it's a

bit complicated, it sits at 244

million in some instances that

threshold will be reduced as

low as $15 million when it

comes to foreign purchase of

farmland. And that part at

least has pleased the

Nationals? Barnaby Joyce is

arguing that $200-muss figure

is too high. Barnaby Joyce will

be happy with thifrmt's

interesting that as part of the

working paper they've developed

there was a cross-party, Tony

Abbott was involved in it and

Julie Bishop and Warren Truss.

They're all involved trying to

sort out what their positions are going to be. Another

interesting part of this is any

company that invests over that threshold and prompts the

interest of FIRB would also

have to declare any influence

direct or indirect from a foreign government. Clearly

that is aimed at state-owned

Chinese company that are buying

up large parts of

Queensland. Tony Abbott copped

a lot of criticism on this on

his recent trip to China when

he was talking about foreign

investment in Australia? He

did. And it was suggested that

he was slamming their door on

foreign investment. Or

certainly making it harder by

his comments there. But from

this we will get a greater sense of where the Coalition

wants to take this. What is the

biggest amount of time you

spent weight online at a call

centre? A while. I don't flow

if I will ever get to 15 hours,

40 minutes and I think one second. This Australian

businessman Andrew McCann held

on and he started on the Wednesday and went right

through the night to

mid-Thursday morning. There he

was reading book, writing a

thesis while he was waiting for

someone from Qantas to speak to

him. There tend he didn't get

to talk to anyone. He stayed on

the line because he was promise

ed that someone would be with

him shortly and he wanted to

find out how long short ly

would be. And he could have

flown to New York in that

time. Qantas says it has no

record of the call though And

they point out their average is

17 minutes to respond. Which

still seems like a long time.

17 minutes to hang around to

confirm flight details. The

last time I was on hold to

Qantas it was 23 minutes. We

have all been there, not for

quite so long. Let's finish up

'The Daily Telegraph'. This is

an interesting story. You have

the Attorney-General of NSW

Greg Smith who is now

considering a submission by the

State's juvenile Justice

department that would basically

keep a lot of young offenders

out of jail. There is already a

young offendsers Act which was greated to try to spare young

people going to jail for fair

ly minor offences an instead

they would be let off with

cautions. What this submission

suggests is to expand the role

of this to include pretty much

any crimes that would normally

be dealt with by the Children's

Court. What is in and out of

that is where the debate will

be. When it comes to down to

things like armed robbery that

is an area where the

Attorney-General has ruled out

that - he wants young people to

be dealt with more seriously

for those kind of matters but

it is an interesting debate,

particularly Conservative

Government there who they ran

in part on a tough on crime

agenda, but now they're showing

they have a bit of a soft they have a bit of a soft heart

when it comes to trying to keep

some kids out of jail for

things like breaking AVOs and

robberies that don't include

violence and these sort of

crimes. Chip LeGrand, thank

you. Thanks. Let's go to lis ra

with sport. Good morning again.

There's been Med medals and a

bit of controversy at the Games

overnight. Plenty of controversy involving the host

nation but we will get to that

Michael. Firstly a decision

will be made shortly on whether

to send Australian rower Josh

Booth home following his arrest

in London. The member of the

men's 8 was detained by police

for damaging a shop front after

a drinking session. Australia's

Chef de Mission, Nick Green,

says Booth was taken to

hospital after fainting while

he was in custody. They've

taken him to hospital for precautions. That's all we

know. He was released in

hospital this morning. So I

don't know the details. I

assume if they've released him

they have cleared him of any

medical issues. The Boomers

have found form with an easy

win in their third group match,

defeating China 81-61. The

Australian s are fighting for

the last play-off spot in group

B and a like logical

quarterfinal date with the US.

The Boomers are now in a position to scaur play-off with

a victory over Britain on

Saturday. Boomers coach Brett

Brown spoke with Amanda Shalala

about how they turned things

around. We came over very

desperate. We were well aware

of where we're ut@and what the

situation is. I think the body

of work that our guys have put

in slowly pays dividends. You

hope that that we buy enough

time where you can really see

it and I saw it tonight, I feel

like we left the game a little

bit better than we did against

Spain and Brazil. It was a good

way for us to leave today and

get raid Ready to go and play

Great Britain. What were you

tiebl take out of the opening

two losses to turn it around

today? Just how close we are. I

think the Games tell the story

of really how close this group

is to being something special. It's hard to be special and

it's just those small few plays

that get away from you, we

started the third period, the

Brazil game, terribly and it's

caped us. We just couldn't make

some shots against Spain, we

only had five turnovers and we

sort of succumbed to their

talent level which we have

greater amount of respect for

their talent level. Today your

learn that your defence

generates offence. Patty was a

track star. We sped the game up and we ran through our

commitment to defending. You've

worked with patty at the

Spurrs. What were you two

working on in that time in the

leadsup to the Olympics? It was

a combination of just talking. Sharing different

dreams you may have about how

far you can go, the excitement

of it all, the excitement that

everybody is going to make, the

importance of coming in with a

world-class fitness base,

getting short shots. That this

is your play, this is your

defence. It was very holistic.

All-en compassing and talked on many different level and I was

able to get closer to him and

know him better. I feel I can

coach him better for that

experience. Still a way to go

until you can get to the

quarterfinals. Is there till

still the belief in this team

that you can make it that far

and even further? Absolutely. We recognise how difficult

that. Is but there is no second

guessing. There is no

self-inflicted wounds. We are

who we are and we understand

who we are. We're a physical

team, we're a defensive team

trying to find way s to score.

It is hard with the level of

talent here and, you know,

there's going to be no backdown

in this grou. I haven't seen it

since I've coached them and I don't believer it's going to

reveal its head now. I this I

the group is who they are and

I'm proud of what they are. You

have Great Britain and then

Russia next. What do you need

to get out of those games and

what do you need improvement

Dos you need to see from your

team? It always gets down to

execution. Mostly on offence.

What do you do on a half court

game. We have proven we can get

out and run, ite an open court

game that favours up and

patty's spees I think Patty

drove into a lot of timber

today, a lot of tall people

today and we da k make some better decisions there. But

it's half court offence,

getting guys the ball in certain spots making sure

you're on the same page with

defensive schemes but it's the

basic little things that add up

as you get deeper into the tournament. The Boomers coach

with Amanda Shalala. We will

bring you more Olympics news

after 7. Paul is here with the

weather now. Good morning. In

Queensland today it's another

chilly morning inland but fine

apart from a shower or two on

the north-east tropical coast.

Coming up, we will have

more on day 6 of the Olympics.

So stay with us on ABC News

Breakfast.

Peace envoy Kofi Annan

quits over failure to stop the

violence in Syria. When the