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(generated from captions) Prime Minister, John Anderson is, as Deputy and Transport Minister. Leader of the National Party top job, After six years in his party's colleagues this morning Mr Anderson told his National Party of this term as a backbencher. that he would serve the rest John Anderson's decided After six years as Deputy PM, it's time to slow down. Mr Anderson's resigning Citing health and family reasons, positions, from his ministerial and leadership until the next election. but will remain on the backbench of the National Party, But he's been an incredible leader he's been an incredible Deputy PM, together, he's bound the Coalition particularly our constituents, which gives Australia and our and he will be sadly missed. a voice in government, National Party leader - John Anderson is the most achieving and I've served under four of them the bush ever - with the budget allocations to It's a personal decision. a long and hard period as Deputy PM Certainly wish him well and he's had very difficult periods of drought. and led this party through some

John Anderson was elected of Gwdyir in 1989. to represent the NSW rural seat for Primary Industries He became Minister seven years later. when the Coalition won government elevated again to Deputy PM And in July 1999 he was after Tim Fischer's retirement. It's expected his deputy Mark Vaile the leadership vacancy. will step up to fill and works well with John Howard, experience John Anderson has tremendous

Mark Vaile. and that'll be the challenge for is less clear. But who'll become the new deputy contesting it, I would think they'd be people it's John Anderson's day today a great farewell and send-off. and we want to give him I think he would be a good deputy. I like Peter McGauran, the national water initiative His colleagues have nominated after the challenge from One Nation and reviving the party achievements. as Mr Anderson's greatest New senators coming in on 1 July victory for John Anderson will be seen as a great he's chosen to go. and perhaps that's the time that less a workload, be But the new leader will have no Another National Party MP will

t's not I╝White╛ t's I╝White╛

t's not known who'll take I╝White╛ t's not known who'll I╝White╛ t's not known I╝White╛

on his I╝White╛ on I╝White╛

╝I╝White╛Flush╛ on his transport portfolio. on his transport portfolio.I╝White╛ t's not known who'll take on his transport I╝White╛

╝Yellow╛Yes, indeed and John

Anderson is now on his feet in the

publHoic his decision. Let's here use of Representatives making

what he's saying. Joo*e on balance,

this is the right time for me to

make a change. I stepped down

feeling that I have made as great a

contribution as I've been able to

ensuring that Australia has a

world-class water policy framework

and the basis of a proper national

land transport plan. The national

water initiative and Auslink

respectively are now I believe,

and truly in the groove and can respectively are now I believe, well

advance from here. Both involved and truly in the groove and can only

critical and protracted negotiation

with the States, I'm pleased that

I've been able to work with my

counterpart ministers in the States

and Territories to achieve these

vital policy outcomes. The

water initiative which I believe is vital policy outcomes. The national

so terribly important to our

country's future, would ╝white╛I

never have happened if I hadn't

able to work constructively with never have happened if I hadn't been

relevant NSW and Victorian able to work constructively with the

in particular. I thank for them. relevant NSW and Victorian ministers

Similarly, Auslink would not have

been possible without our having

successfully negotiated as a vital

prerecognise sitd for a 60-year

lease over the interstate rail

for the RATC. Both outcomes were lease over the interstate rail track

worth the setbacks that bedevilled for the RATC. Both outcomes were

them, but both will serve

Australians very well in the future.

Mr Speaker, I do not share the

great personal passion for

that so many parliamentarians great personal passion for politics

demirably possess. Nevertheless,

has been a very great privilege to demirably possess. Nevertheless, it

have had the opportunity to serve

now some 13 years as a coalition

frontbencher. The first year or so

of it, as the parliamentary

secretary to the then shadow

spokesman for industrial relations.

He's the PM now. So there it is,

Ros. After 16 years in Parliament,

and 6 years as National Party

leader, John Anderson announcing

decision to retire from politics to leader, John Anderson announcing his

return to the farm. He will remain

as a backbencher for the duration

this term, but he will no longer be as a backbencher for the duration of

the Deputy PM, or National Party

leader. Jim, for now, thank you.

before the winter break, On the last day of Parliament the Opposition Leader is also moving to Labor's frontbench. to make changes caucus meeting this evening, Kim Beazley has called a special where he's expected to move

Laurie Ferguson his unpopular Immigration spokesman

some of the changes he wants The Opposition Leader outlined a short while ago. when he spoke to reporters later on this afternoon I'm calling a caucus meeting for addition of two positions, in which I'm going to ask for the by Annett Hurley, one of them to be filled ultimately in from South Australia, who's the new Senator coming considerable experience who comes in with an opportunity and the other to provide

Tanner back to the frontbench. to bring Lindsay is a heavy hitter, Lindsay, as you know recommendation to caucus and I'm going to be making that at that point in time. But I repeat, are going to be relying on us. the Australian people on the ALP, They're going to be relying in Australian politics because there will be no other force arrogant Government to account capable of holding this from the moment in time on 1 July absolute power in the Senate. when this Government asssumes Jim Middleton Chief political correspondent in Canberra. has been watching events unfold

Let's leader. Jim, for now, thank leader. Jim, for now, thank you. resignation of John Anderson. Jim, let's start with the Let's talk leader. Jim, for now, Let's talk about leader. Jim, for Let's talk about the leader. Jim, for now, thank you. ╝Flush╛

changes leader. Jim, for now, thank you. ╝Flush╛afoot in the Labor

Party, how significant are they?

This is still very much a work in

progress. As we just heard, the

Opposition Leader has announced

Opposition Leader has announced that there will be changes, but he

there will be changes, but he hasn't said exactly what they are, apart

from saying that Wayne Swan will

definitely remain as Shadow

Treasurer. As I understand it, and

I would stress this is a work in

progress and we may not know the

final decisions until later on,

final decisions until later on, that among the changes being mooted are

for Kevin Rudd, the Shadow Foreign

Minister will pick up the position

of trade as well, to become shadow

Minister for Foreign Affairs and

trade, which means that Simon Crean

will no longer have that. One of

the other big changes is that

the other big changes is that Laurie Ferguson reluctantly, albeit, will

be dumped I understand it as

Immigration spokesman after a less

than wonderful reign in that job

over the past few months. Also,

over the past few months. Also, the move bringing Lindsay Tanner onto

the deprch. There's a couple of

possibilities there. He either

might pick up the Immigration job

from Laurie Ferguson, or finance is

another possibility. There's also

one other significant change that's

definitely the case. Stephen Smith

who was given by Mark Latham this

mega portfolio of industry,

infrastructure and industrial

relations which is just too much

relations which is just too much for

relations which is just too much for any one person, the Labor Party

any one person, the Labor Party will go back to a more traditional

structure of having a designated

transport spokesman, which is a

position or a job that Stephen

position or a job that Stephen Smith has had amongst all the rest of it.

So those are the things that I

understand are under way at the

moment. But the details are still

being worked out and there could be

changes. And, of course, we've just

seen John Anderson announce his

resignation to Parliament,

resignation to Parliament, resigning from the post of Deputy PM and

leader of the National Party. How

expected was that? The timing was

not expected, but the decision

definitely was. John Anderson

thought about resigning during the

last term of Parliament. In fact,

told his then deputy, the man who

will replace him Mark Vaile that he

was going and then at the last

minute changed his mind which minute changed his mind which caused significant aggrevation between the

two of them. But he has been

thinking about it for some time.

Decided he wanted to see through

Decided he wanted to see through the national water initiative and

Auslink the big roads program

through to the last election. Now

he has decided to go. So the exact

timing was a surprise. But the

decision is not. And, of course,

John Anderson's resignation means a

reshuffle of the frontbench. What

are you expecting? Well, there's

are you expecting? Well, there's two things that are certain to occur.

One is that there'll be a new

deputy. That's not determined yet.

I understand that there's quite a

significant field of people who

would like to be the new deputy.

Peter McGauran is one of them, John

Cobb, currently a backbencher from

NSW is another front runner also

Warren Truss the Agriculture

Minister has throne his hat into

Minister has throne his hat into the ring. But there are others, too.

Ian Causley, De-Anne Kellie, for

example. That's one of the reasons

that the National Party is meeting

again this evening, or later on

today to determine that position.

But there's also a question of who

will go on to the ministry as a

result of John Anderson's decision

to return to the backbench. Bruce

Scott who was a minister up until

the 1998 election might well think

that he has some dibs there. But

also it could be possibly John Cobb

coming onto the frontbench. At

coming onto the frontbench. At this stage a bit of a work in progress,

too. Busy times. Jim Middleton in Canberra, thank you. Counter-terrorism officers have tried to head-off what they say is a suspected plot to attack city landmarks in Australia. The Stock Exchange building in Melbourne and Spencer Street Station are believed to be among sites thought to have been targetted. Officers from ASIO and the Federal Police raided this house in Melbourne's northern suburbs yesterday. It's one of four homes searched this week after a 10 month investigation dubbed "Operation Pandanus". Any charges will be determined after we look at the evidence that's a result of the search warrant and as a result of the interviews that have taken place. Attorney-General Philip Ruddock

is expected to reveal further details this afternoon.

Queensland's former chief magistrate may have to be reinstated after the High Court this morning quashed her conviction for retaliating against a witness. Di Fingleton spent six months in jail in 2003 after being found guilty

of threatening to demote another magistrate. She was not present at the Brisbane sitting of the court, but her lawyer said she she was relieved and would be considering her options. She has, as you all know, always maintained her innocence and is very relieved to have this judgement to that effect. The decision was unanimous by all six High Court judges who reviewed the case.

They found that the chief magistrate was protected by Section 51 of the Magistrates Act which provides immunity for administrative acts performed by judicial officers. Today's decision opens the way for Di Fingleton to seek compensation for her wrongful imprisonment and the loss of her $200,000 a year job. Kofi Annan may have hailed an international conference

on rebuilding Iraq as a turning point, but that's had little bearing on the daily toll of violence there. Both the US and Europe made declarations of support, but what's urgently needed is more security to allow reconstruction projects to go ahead unhindered. They came together from more than 80 countries to talk about the future of one. This was a show of support

to the new Iraqi Government in need. Many Iraqis are enduring terrible trials and torments. And we can only admire their courage and resilience as they seek to rebuild their country. SIREN WAILS But as the politicians were talking in Brussels, the bombs continued in Iraq.

This one aimed at a local politician in the northern town of Kirkuk. Five others have gone off in Baghdad tonight. It will be hard to get international aid workers back, when they fear that they, too, could be targeted.

And without security, so much else falls apart.

It's class time in Sadr City. No-one here has a job. Mass unemployment one of the by-products of the conflict. At this new government-run training centre, the subject today is computers. But there's a problem. They're not running, because the electricity as so often, is off. Iraq's infrastructure is in desperate need of repair. Sabotage to this pipeline has cut off water to a large part of Baghdad for days and many pipes are so old anyway that clean water has been contaminated with sewage. That's why in what could be one of the richest countries in the world, children still die of diarrhoea.

Remember images like this are the sanctions and Saddam, malnourished children were almost all the regime wanted the outside world to see, but this girl is 6 months old and she has been ill for four of them. There is, of course, another side to Iraq. Children despite it all, still being kids, families out having fun. And the lesson from Iraq to the Brussels conference is this - that Iraqis are just like anyone else. They want to lead normal lives. They don't want to fear for their lives. They think the outside world can do more to help them.

An American U2 spy plane has crashed as it attempted to land at a base in the United Arab Emirates. The plane came down at a US air base near Abu Dhabi, killing the pilot. It had been on a mission over Afghanistan. There's been heavy fighting in the south of the country over the past few days. The U2, with its long narrow wings,

is acknowledged as one of the most difficult aircraft to fly. But its ability to reach altitudes of 21,000 metres

has seen it in continuous service for 50 years. Torrential rains are doing more damage in Southern China. Storms have swollen river levels to dangerous heights, destroying more than 20,000 houses in the Guangxi region. At least 24 people have died and a similar number are missing. Some rivers were more than eight metres above danger levels and there's more rain to come. America is deeply suspicious over Iran's nuclear ambitions and is letting everyone know about it. The US tirade has grown so loud that Teheran decided to go public on its highly secretive nuclear programme. It allowed journalists access to its newly constructed reactor, no doubt hoping to dispel some of those more sinister US claims. This is a site normally shrouded in secrecy, but today unprecedented access for ABC News and other journalists. The Bushehr nuclear power plant is surrounded by early warning radar and anti-aircraft batteries. We were taken inside reactor number one. We saw that very little work remains to be done.

The plant is designed and built by Russia. Some of the Russian engineers supervising construction

told us it is similar to some American reactors. The nuclear fuel for the plant has already been made and prepared in Russia and is ready for delivery. Iranian officials say it will arrive here and be placed in this cylinder probably before the end of the year. Iran has agreed to send all used nuclear fuel back to Russia. That would eliminate the possibility of reprocessing the fuel to make nuclear weapons.

Who will verify that the spent fuel that's sent to Russia...? The IAEA the UN'S nuclear watchdog has visited here several times and plans to install cameras to help make sure Iran is not using the plant for a weapons program. Today, however, officials here said Iran maintains the right to make its own nuclear fuel. Iran insists the plant is purely for civilian use and that the country needs the power that will be generated by Bushehr's massive turbines. Still, Iran is aware some nations are not convinced. Disgraced executive Rodney Adler is facing new charges for allegedly conducting business activities while in jail. The NSW Department of Corrective Services says it's charging him with correctional centre offences. The decision follows weekend media reports about Mr Adler's activities while at the Kirkconnell Correctional Centre near Lithgow

in the State's central west. Adler is serving a two and a half year sentence for his part in the collapse of insurance company HIH. Adler is banned from managing a company for 20 years, but the Australian Securities and Investments Commission says it won't be taking any action over the allegations. The Australian film industry is littered with failed projects that have left investors with burnt fingers. Now filmmakers have come up with a new way to get the money they need, if the Government will come on board. It can be a glamour industry, full of stars and something many dream of being part of. But investing in film is a gamble.

You can either buy a lotto ticket, or you can invest in a movie. Nick, give him your wallet.

What for? He's got a knife. That's not a knife. That's a knife. It's a cut-throat industry. Only 11 of the 200 films partially financed by the Government-run Film Finance Corporation last year made a profit. Some broke even, many lost money. It's a scenario few investors are willing to wade into.

You need to be able to offer the investor a realistic prospect of at least getting his money back. If you can do that, they're very keen to invest in films. Part of the problem is current taxation legislation for film can be complicated, with tax breaks not assured. But that could be about to change. What we need in the industry is greater private investment in more commercial films. The film industry wants to encourage private investors and businesses

to put money into big budget movies, with wide international appeal. To do that it's proposing investors with be taxed on just 50 cents of every dollar that a film earns overseas. Geoff Brown says if the Government doesn't agree to the changes, the future for the Australian film industry is grim.

Just hit a lemon.

10 years from now, 90% of the money going into Australian film and television must be from the private sector. If it's not, we haven't got an industry.

He's lobbying the Government and hoping for changes that could be in place in a year's time. Anita Savage, ABC News. The owner of the European aircraft maker, Airbus, has settled on a factory site in the US in an effort to win new Pentagon contracts. The European aerospace and defence group is hoping to build refuelling tankers based on its a 330 Airbus. Rival plane maker Boeing lost the tanker deal last year. I guess, actually, the cat's out of the bag.

Mobile, Alabama. Mobile, excuse me, is, in fact, the location which we determined after avery exhaustive review process. The company hopes to get a big portion of the expected $11 billion the US is planning to spend on new military tanker planes. Just yesterday farmers in northern Tasmania took to the streets to protest about the loss of potato contracts to New Zealand. Now farmers in Europe are up in arms over a plan to reform the region's heavily subsidised sugar market. The proposed subsidy cuts come after repeated complaints from Australia, Brazil and Thailand. Sugar beet growing in a field in East Anglia, four months away from harvest, but if the latest price-cutting plans are implemented, can it continue in future years? Tom Matthews, whose family has been growing the crop here since the 1920s, is doubtful. It will be serious for our income, because at the moment we're seriously looking at

what is worth growing and what isn't, and at the moment sugar beet is worth growing. If it isn't, we won't grow it. SHRILL WHISTLE BLASTS Some European sugar farmers took to the streets to protest. For years they've been used to guaranteed prices and protected markets. But the international trade watchdog the WTO, said that was illegal, so the European Commission decided prices and production levels must fall. Of course I'm not doing this for fun, I'm doing it because it's necessary. When I look at the figures, when I look at the possibilities for the future, I had to make this proposal. But in the short term at least, some poorer sugar producing countries will actually lose out. Some have benefited from artificially high European prices because they have been allowed to sell limited amounts of sugar in the EU. If these prices fall, there are warnings of serious economic consequences. Devastating collateral damage, harm that is going to take years to recover from

and a betrayal which is unbelievable. The winners will be the big sugar producers, like Australia and Brazil,

as lower prices shake out those farmers who simply can't compete in the free market. To see how the stock market's performing today

I'm joined by Andrew Robertson. And Andrew, the market having a better day today.

Well Ros after three days of losses

the stock market is gaining ground

today. The All Ordinaries Index up

0.25% or 10 points to 4,242. The

ASX200 also up 10 to 4,280. What's

happening today is that investors

are moving towards defensive stocks

are moving towards defensive stocks such as banks and away from

resources stocks as doubts remain

about their sustainability at their

current high levels. The Financial

Index is by far the highest on the

market and by itself today has

market and by itself today has added 10 points to the ASX200. The big

four, plus St George and

Suncorp-Metway have had solid rises

with Westpac up 0.75% to $19.66.

Investment bank Babcock and Brown

having a great day up to $13.24.

having a great day up to $13.24. By contrast BHP Billiton is down 0.5%

today to $18.01. Rio Tinto losing

ground but speculation of a

ground but speculation of a takeover is continuing to drive the price of

Zircon Illuka resources. It's up 1.

Zircon Illuka resources. It's up 1.5% to $7.08. What's the prkt at

Just Group? They operate the Just

Jeans chain of stores such as Jay

Jays, port Mance and Peter

Alexander. Yesterday billionaire

investor Solomon Lew bought 9% of

Just Group whose shares have lost

more than a third of their value

this year. However the market

hasn't been impressed. Shares down

4% today to $2.04. The whole of the

retail sector having a tough day?

Not helped by the revelation by

Brazin that its footwear division

struggled in June. Its shares have

taken a pounding, down 14% to $1.65.

Woolworths, Coles Myer, David

Jones, Harvey Norman, Foodland and

rebel sport lost ground today.

rebel sport lost ground today. Bill Miller's retail up 1.5% after

suggesting it may sell discount


A check now of the domestic market's other top movers in the ASX 100. Timber company Gunns and constructor Leighton Holdings up a couple of percent. Ten Network and Oxiana leading the losers. Thanks Andrew. To Wall Street.

The Dow lost 11 points. The Nasdaq virtually unchanged. The FTSE hit a 3-year high bolstered by talk of lower European interest rates. In Japan, the Nikkei finding a little support. Hong Kong making solid gains yesterday. New Zealand losing ground. In currencies: In commodities: Beijing's state-run oil firm, CNOOC is attempting the biggest foreign takeover by a Chinese company. It's bid more than $25 billion for US oil operator, Unocal topping a bid from Chevron. US authorities have threatened to block the deal because of the company's links to the Chinese government. Australia's Mark Philippoussis believes his best tennis is still to come, despite being knocked out in the second round of Wimbledon. On a mixed Day 3 for Australia, Lleyton Hewitt comfortably advanced, while Philippoussis was again hampered by injury in a straight sets loss to big hitting Russian, Marat Safin. There was a sense of deja vu about Mark Philippoussis on centre court.

Another comeback, moments of brilliance and another injury. A persistent ankle problem dogged him throughout a tight second round battle with Marat Safin. The Australian had his chance in the first set...

COMMENTATOR: There's a big return. But Safin's consistency won out in the break. Both both players pounding down serves at more than 200km/h, something had to give, and it was the net. Oh, the net's fallen down. That's pretty funny. It took another tie break to separate them in the second set, and again, Safin prevailed.

Yeah, the serve was just a little bit short. The Australian Open champion lifted the tempo in the third and finally broke serve... Oh, yes! ..before sealing the match with another ace. And he does it in style, the Russian. I know my best tennis is ahead of me. It's as simple as that. I know I've proven it to myself here. My eagerness is back. It was a relatively smooth ride for Lleyton Hewitt against Czech player Jan Hernych. The former champion found himself down 5-2 in the second set, but shifted gears, reeling off five straight games to take control of the match. Yes, that's great play. Hernych surprised the Australian with some solid hitting from the baseline to take the third set 6-3. But Hewitt steadied to book a spot in the third round against American Justin Gimelstob. Mark Douglass, ABC News. To the weather now, and residents of Katoomba in the Blue Mountains west of Sydney, are rugging up after a a blast of winter. Snow flurries greeted those venturing out in the town's main street this morning. Temperatures got down minus 1 overnight, as winter makes a late appearance across NSW. The cold snap's expected to last for most of the day. Those snow falls coming from parts of thick cloud just over NSW and Victoria. Jet stream cloud has just about cleared from Queensland. There's a mass of cloud over Western Australia. A low off the NSW South Coast continues to bring wet, cold and windy conditions to Victoria, NSW and Tasmania. A moist southerly air stream is generating showers in South Australia, a strong cold front is causing storms and strong winds in WA. Rain in south-east NSW extending north. Later today, with snow in alpine areas, rain and showers in eastern parts of Victoria. And a final check of the midday markets. That's the news for now. There'll be more at 7 o'clock. Captions by Captioning and Subtitling International.