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a plot to blow up planes mid flight. Arrests in Britain as police foil Tonight -

three MPs cross the floor. Defying the Prime Minister - the city gets its own war memorial. Canberra remembers, as The Wallabies come to town,

next Tri-Nations clash. preparing for their

Virginia Haussegger with ABC News. Good evening. Police in Britain say a major terrorist plot they've thwarted

flying between the UK and the US. to blow up planes have been arrested It's believed 18 British nationals in a series of raids around London. British airports to a stand-still. The terror scare has brought highest security alert And the nation is now on its in the United States. since the September-11 attacks the ABC's Stephanie Kennedy reports. From London, operation, Within hours of the police at Heathrow airport, a British Airways flight lands but following the overnight arrests, were severely disrupted. flights into and out of the UK It's been alleged to detonate explosive devices a terrorist group planned smuggled in hand luggage. British authorities say several aircraft in midflight, the plot was designed to bring down a massive loss of life. and would have caused counter-terrorism operation I've carried out a major

major threat to the United Kingdom to disrupt, what we believe to be a and internatioonal partners. a major security crackdown The arrests have triggered at British airports. to go about their business as usual Travellers have urged travellers delays on most flights but warned there would be major for several days. board aircraft flying out of the UK Hand luggage has been banned on

and computer laptops. including mobile phones inside airport terminals Within hours there was chaos around the country.

to these travellers By mid-morning it was obvious in a hurry. they weren't going anywhere all UK airports Earlier this morning,

out of the United Kingdom and all airlines operating into and level of security. were asked to implement a heightened maximum security on all flights This step has been taken to ensure travel arrangements. so people can go ahead with their MI5, raised the terrorist alert Britain's intelligence service, from severe to critical. We are doing everything possible terrorist activity. to disrupt any further face severe delays Passengers have been warned they'll indefinately. of at least several hours London. Stephanie Kennedy, ABC News, has issued updated travel advice The Foreign Affairs Department for Australians in the UK. attention to their security It urges people to pay close and monitor the media affect their safety. for information that might are advising passengers Qantas and other regional carriers

restrictions on hand luggage to comply with new security on all flights from the UK. says at this stage The Federal Government for flights leaving Australia. there are no changes to security any immediate delays to flights Airports here are not expecting arriving in Australia, could have flow-on effects but the delays in Britain

over the weekend. has defied the Prime Minister A small band of liberal dissidents

seeker legislation. to vote against his tough asylum a casualty - The Government has also suffered abstained from the vote the Nationals whip, John Forrest, and then resigned from the post. a body-contact sport, Politics is not normally but this morning, Beazley nearly came to blows. 'Ironbar' Tuckey and 'Bomber' Oh, here's Kim. the border protection Kim, why are you opposing for all the people? and get inside. Take your tablets, mate, Oh, don't you insult me. asylum seeker legislation John Howard's hardline and aroused passions has frayed tempers and across the Party divide. both within the Coalition worthless, self in there Why don't you take your weak, worthless legislation. with the weak, weak and worthless Don't you call me you big, fat so-and-so.

the crucial vote ticked away, As the minutes to Government rebels intensified. the sniping at the less respect They would probably expect vote with the Labor Party. if they decide to ring the bells. SPEAKER: Division required, having arrived, Her moment of reckoning around the chamber Judi Moylan made the long trek to the Opposition benches to vote against the Government. and Russell Broadbent Fellow dissidents Petro Georgiou

made it the power of three, but Bruce Baird merely abstained. stunning his colleagues, So did National MP John Forrest, of Party Whip. and he's now given up the office Ayes - 78, Noes - 62. for the dissidents. It was not all bad blood with Judi Moylan, Warren Entsch may have disagreed but he consoled her nonetheless. Of course, I'm disappointed. of Government disunity It's also the biggest display more than a decade ago. since John Howard came to power

Now, the focus shifts to the Senate, could sink the bill. where one Coalition defection Senator Judith Troeth, That vote could come from the dissidents' act of defiance. who made a point of observing Petro Georgiou and Russell Broadbent I thought the speeches by both were outstanding. With the numbers so tight, Family First Senator Steve Fielding the PM was trying to win over wrestled with his conscience. even as Barnaby Joyce If it was the time of Herod, turned up in Australia, and Jesus, Mary and Joseph what would we do? of biblical proportions. Almost a struggle Jim Middleton, ABC News, Canberra. to a 30-year low of just 4.8%. Unemployment has fallen from the Bureau of Statistics The Government seized on the result its WorkChoice changes. to attack Labor for fighting no connection between the two. But the Opposition says there's

Craig McMurtrie reports. Political editor With his Party brawling, it was a gift. (Laughs) A record monthly unemployment result,

over 50,000 new jobs, and across the country, the unemployment rate was down nearly everywhere. It's a wonderful thing. For a Government struggling to sell its new industrial relations system, it was simply irresistible. Since WorkChoices was introduced in March, 159,000 new jobs have been created in Australia. There's absolutely no linkage between these employment figures and the Government's extreme industrial relations legislation. But with the jobs result stronger than market predictions,

analysts immediately warned of increased pressure on interest rates. John Howard says his workplace changes can help contain wage pressures. In a tight labour market, a less regulated system is more likely to contain unreasonable increases in wages. The Opposition wasn't about to forget the petrol pump, wanting to know if John Howard would accept Labor's plans to lower fuel prices, including tariff-free hybrid cars and rebates for LPG conversions.

Does the PM still maintain that nothing can be done about these crippling fuel prices? The Government has decided at this time not to accept them. BP and Caltex aren't waiting - moving in unison to discount ethanol blends, promising prices $0.03 a litre cheaper than for regular unleaded fuel. And at the end of the sitting week, a final mention for the flap over a toy chicken, the Treasurer and an ejected Labor frontbencher. The best the Labor Party can do is play around with a toy chicken.

I don't think it's a bit funny. Not amused. Craig McMurtrie, ABC News, Canberra. To the Middle East, and Israel has decided to push harder and deeper into southern Lebanon, in spite of mounting troop losses. Another 15 soldiers were killed in today's fighting with Hezbollah,

taking the total of Israelis killed to 116. Estimates put the toll on Lebanon's side of the border, at just over 1,000. But those numbers are almost certain to rise dramatically as hezbollah threatens a bloodbath to stop Israel's expanded ground offensive. Israel already has about 10,000 troops in southern Lebanon fighting on a 6km-wide strip along the border. It now plans to treble that force as it tries to establish a 30km-wide buffer zone between the border and the Litani River. From jerusalem, the abc's david hardaker reports. ÷≈tape item≈≈ One by one the members of Israel's Security Cabinet arrived. For six hours, they met behind closed doors. Finally the decision -

Ehud Olmert's Government was given the authority to send thousands more troops into southern Lebanon. The Prime Minister is the one who led this resolution and he's very adamant to make it achievable if there will be no diplomatic solution. GUNFIRE The aim of the operation

is to carve out a security zone some 30km up to the Litani River to destroy Hezbollah's ability to fire short-range rockets into northern Israel. And just hours after Israel's announcement, Hezbollah leader Sheik Hassan Nasrallah vowed to turn south Lebanon into a graveyard for Israeli troops. He also warned Israeli Arabs to get out of the port city of Haifa in a clear sign the rocket attacks may intensify.

The decision was the toughest that Israel's Prime Minister, Ehud Olmert, has had to make. The Prime Minister had feared that widening the ground assault

might mean hundreds of soldiers being killed.

As well, there's the risk that widening the assault might alienate international support as the UN sits down to try to hammer out a resolution

aimed at ending hostilities. A million Israelis right now in shelters. It's the duty of the nation, it's the duty of its army, to make sure that they will not be in shelters. Underlining the dangers ahead, more Israeli soldiers were killed and many more wounded today - the result of harsh fighting with Hezbollah. And another pointer to tough times ahead - Israeli tanks heading towards the border with Lebanon, while the residents of the northern town of Kiryat Shmona were being brought out the other way to complete a full evacuation. David Hardaker, ABC News, Jerusalem.

Telstra has delivered its worst profit since listing on the Stock Exchange a decade ago. The full year return of a little over $3 billion is down by 26% on the previous year. It's not good news for the Federal Government as it agonises over whether to sell its remaining share in Telstra.

Telstra's boss says don't be fooled by his company's profit slump. It's no great mystery and it's no great issue at this stage. It's part of a plan. A plan to push 3G technology enabling customers to access emails, videos and the Internet on mobile phones, and a plan to restructure that's so far cost more than $1 billion.

In the meantime, Telstra has sacrificed profits to boost income from the competitive internet and mobile phone markets. All this while, revenue from the traditional fixed-line business is shrinking. After tax profit for the year to June was almost $3.2 billion - down 26%. Telstra's 1.6 million shareholders will receive a final dividend of 14 cents a share. But Telstra's board would not guarantee an extension of its generous dividend policy. They're comfortable with the dividend as we have declared it for this period and they will deal with the next dividend declaration at the appropriate point in time.

It was another opportunity to attack the ACCC. Sol Trujillo said Telstra's dividend policy was, in large part, hostage to the competition regulator's future decisions. And the uncertainty over dividends will not help the Government's attempts to sell the rest of Telstra. Well I think T3's very difficult till you get some sort of certainty as to where the company's going to be in three, five years' time. By then, Sol Truillo promises, today's changes will deliver growing, not shrinking, profits. Phillip Lasker, ABC News. growing, not shrinking, profits.

Act Police have released pictures of five people believed to have been witnesses to a fatal stabbing outside the Cube nightclub in Civic. Nato Seuala died after three weeks on life support.

32-year-old Maurizio Rao has been charged with murder after allegedly stabbing the victim during a brawl. Police say they are hoping

the people on the surveillance tapes will come forward. I want to state very, very clearly that none of these people are believed to be involved

in the stabbing incident or the assaults but they may have witnessed something in passing by the Cube nightclub around about the time of the incident. Maurizio Rao is being held on remand

but is expected to lodge a second bail application tomorrow. A 31-year-old Dunlop man has pleaded guilty in the ACT Magistrate's Court to three counts of illegally providing health services. David John Cantello has admitted he performed medical procedures at Calvary Hospital's emergency department in December last year. He inserted needles used to administer intravenous medication, and treated minor wounds. His defence counsel argued

Cantello had authorisation to be in the area, and questioned the hospital's procedures. He's also pleaded guilty to possessing ammunition and an Australian Federal Police badge. And still to come on ABC News - The ACT Opposition promises to unwind the Government's cuts to tourism. The war in Iraq

has firmed as the leading electoral issue in the United States after the pre-selection defeat of a prominent pro-war Democrat. Joe Lieberman, who was his party's nominee for vice-president in 2000, has lost pre-selection for his Connecticut senate seat. The development has sent shock-waves through Democrat and Republican ranks. Washington correspondent Michael Rowland reports.

He's a man his party once wanted to be a heartbeat away from the presidency. Now he's a political outcast. Joe Lieberman's enthusiastic embrace of the war in Iraq has cost him Democrat endorsement for the Senate seat he's held for 18 years. An obscure businessman rode a wave of anti-war sentiment to clinch a victory

that will have ramifications far beyond liberal Connecticut.

We have 132,000 of our bravest troops stuck in the middle of a bloody civil war in Iraq and I'd say it's high time we bring them home to a hero's welcome. Senator Lieberman has declared he'll now run as an Independent, saying the primary result confirms

his party has been hijacked by extremists. It will send a message across our state and our country that the Democratic Party has been taken over by people who are not from the mainstream of America. But the result will also send a worrying message to every other politician who supports an increasingly unpopular war. Being seen as too close to President Bush could prove to be a kiss of death. Some Republicans are already starting to distance themselves from Mr Bush, but the White House has its own spin on Joe Lieberman's loss. It's a defining moment for the Democratic Party whose national leaders who have made it clear that if you disagree with the extreme left in their country, they're going to come after you. Democrats who also supported the war, like presidential aspirant Hillary Clinton, are beginning to harden their stance against the conflict to keep on side with their party and an increasingly war-weary public. Michael Rowland, ABC News, Washington.

To finance now and the Australian dollar has soared today following the strong growth in employment last month. With the details here's Alan Kohler. The dollar has surged to more than US$0.77 for the first time in three months as speculators started to bet on another rate rise when they saw the 4.8% unemployment rate. And at 64.1, the trade weighted index is equivalent to an 8-month high.

The share market fell as a result - resource stocks followed offshore markets, the Commonwealth Bank fell again after yesterday's profit result and it looks like those who sold CBA bought ANZ. The biggest fall in the ASX 200 was Coca-Cola Amatil, which announced a lowered profit forecast and a decision to start selling beer as well as Coke, and Telstra closed steady because investors have no idea what's happening with the dividend. Here's how the All Ordinaries has fared by comparison with the MSCI world share index. The bottom line is the local index is up 4.5%, the MSCI 5.4%.

World share prices have done nothing for five months, with some big ups and downs in between. In the past month, the All Ordinaries has been jumping up and down by about 1% a day without actually going anywhere at all. US shares fell again last night

because, having digested this week's non-rate rise, traders are now worrying about the next one. On commodity markets, oil fell slightly but stayed above $81 while gold edged higher.

Finally, investment bank UBS has put out some interesting research on relative purchasing power around the world, and they've done it by calculating the number of minutes of work

at average wages to earn enough to buy a Big Mac, since those burgers are always the same. In Australia it's 14 minutes. That's a lot better than the world average of 39 minutes, but worse then the place with the best purchasing power - which is Tokyo, surprisingly. Nairobi is last with 86 minutes.

And that's finance. The ACT Opposition has vowed to reinstate an independent tourism body if it wins Government. The promise has already been welcomed by the industry. But less welcome will be the news that the underpayment of staff in some of Canberra's restaurants is more widespread than first thought. Australian Capital Tourism has overseen major campaigns to attract visitors to the national capital, but the group was hit hard by the tough ACT budget, when it's funding was cut and it lost its independent status. Mr Smyth must answer the question. Mr Smyth, where is the money going to come from, what are you going to cut when you provide additional funds over and above what we've allocated for tourism?

In the 2002-03 financial year, the Government got $107 million worth of indirect taxation

back into the ACT economy for an expenditure of just over $20 million. That's a good return. The tourism industry believes it will be hindered by the Government's new arrangements. When the decision makers are bureaucrats, no matter how skilled they are, they are not from within the industry. The influence on the decision making is not coming from the industry has not got that commercial focus. The restaurant sector is facing a second set back, after last year's claims of underpayment for Filipino workers. A further audit has been done and what have we found, in the restaurant and catering trade,

is that Australian workers are being underpaid. The Filipino workers came to us and asked us for help they were prepared to stand up for themselves. Unfortunately, Australian workers are so scared by some of their employers that they fear for their well being, they fear for their job.

An investigation has found 164 workers have been underpaid by 48 Canberra restaurants. The business community is expecting more prosecutions over underpayment. Elizabeth Byrne, ABC News, Canberra. It seems even the smallest country town has one, but Canberra has never built a tribute to the local men and women who've gone off to war. That changed today with the unveiling of the ACT's first war memorial. For a city of war memorials, Canberra has never had a monument dedicated to its own war heroes, but about 3,000 local men and women have served in wartime and peacekeeping missions.

Today, 105 years after the first local man died at war, they were all recognised.

(Plays 'Last Post') Among those paying their respects was a Canberra woman whose ancestors, between them, served in Australia's major theatres of war. Her grandfather saw action at Gallipoli, and her three uncles served in New Guinea, Europe and Asia. One was taken prisoner of war at Changi and all three died. Well, it's awfully emotional for me. I'm very happy that Canberra has got a memorial now and I'm sure many other families grieve the loss of their loved ones and I'm just really overcome by it all today.

The sculpture is a modernistic take on the eternal flame and the wings of a dove - a salutation to peace.

We now have, as a community, a capacity to recognise in a very special place, in a significant way, 182 Canberrans that have given their lives for Australia and for their community. From Boer War soldiers to UN peacekeepers in East Timor, they're all finally honoured here

and for many, that redresses a long neglect. Siobhan Heanue, ABC News, Canberra.

Lay off George Gregan - that's the message from the Australian rugby play-maker Stephen Larkham. The Wallabies are in camp in Canberra this week and Larkham has spoken out in support of his long-time team mate. There's no better judge of George Gregan's form than Stephen Larkham. They've been playing side by side for most of their careers, and Larkham says the partnership should continue towards next year's world cup. I've got a very good understanding with George. I've played with him for more over 10 years now

and I've always said

I wouldn't have any other half-back playing inside me, and that holds true today. I think George's still playing some of the best football of his career. Larkham also offered some hope for a fallen Wallaby. He says Wendell Sailor could still play for Australia after he completes his drugs suspension. He's a tremendous athlete, has been for a number of years now, and knows how to be professional about what he does. I've got no doubt that if he wanted to come back in two years he certainly could. The Raiders received mixed news today. A knee problem to Tom Learoyd-Lahrs is more serious than initially thought and he's likely to miss the rest of the regular season, but Michael Hodgson will play against the Wests Tigers on Sunday just a week after dislocating his shoulder. He'll do some contact work this afternoon but he hasn't missed any training this week. Freak of nature, I guess, springs to mind. The Raiders today re-signed Terry Campese for two years after he knocked back approaches from rugby union, for now. I played union all me life, growing up. So it's like, League and Union are on par as my favourite sports, so, definitely, I'd think about going back to Union in the near future. A win against the Tigers on Sunday would secure Canberra's place in the finals. Chris Kimball, ABC News, Canberra. The increased stature of Australian soccer is forcing the Football Federation to rethink it's strategy on the A-League.

An expansion to 10 teams has been mooted for as soon as next season, which will be the third year of the new league.

The push comes

despite the 5-year licences awarded to the existing eight teams.

Here's Peter Wilkins. soccer While Kuwait were unhinging jet lag in Sydney and showing great respect for an Australian side

made up of A-League stars... It is still Australia.

..the signs of an early expansion of the A-League were getting stronger. We had planned to keep it to eight teams for the first five years, but there's every possibility to go to 10, perhaps, at a time before that. Townsville was declared a leading light for a berth, with strong interest from Wollongong and Canberra. Top 20 team Paraguay will play Australia in Brisbane in early October. Football is a national sport. We wanna take the big games all around Australia. Lleyton Hewitt's US Open preparations have suffered a setback.

Not chasing the ball down. The former world number one retired with the reccurrence of a knee injury during the second set of his match against Sweden's Thomas Johansson at the Toronto Masters. The second-round withdrawal continues a mixed run which has seen Hewitt make a quarterfinal last week but suffer a first-round loss in Los Angeles a fortnight ago. The US Open starts in less than three weeks. Bring on the bouncers. That's the message from Justin Langer ahead of this summer's Ashes series. The opening batsman's had his share of hard knocks in recent years but is welcoming a barrage of short-pitched bowling from England's pace attack.

If I was the England bowlers, I'd be bowling short to me, if I was the England bowlers. Look out, shouldn't have said that, knew I shouldn't have said that! Stop attacking cycling says former Australian Olympic gold medallist Michael Turtur

as pressure mounts on the sport in the wake of the Tour de France. Dick Pound, get off our back. We're doing our best for the sport of cycling and maybe you should start looking at other sports a bit closer? As Floyd Landis continues his PR campaign, he's been attacked by the head of World Cycling, Pat McQuaid, who dismissed claims that the testing procedure in his positive drugs case was flawed. I completely reject that. His sample was anonymous in the laboratory, it was anonymous. His own expert was in for the testing of B sample and sat through the whole two days of the testing of the sample Australian Graham Brown attacked at the right time on the final stage of the Tour of Germany to win his second stage of the tour won by Jens Voight, the popular home favourite. And now with a look at today's weather here's John Ringwood. Thanks, Virginia. Good evening. It was another fine and sunny day here in the national capital. Winds were fresh southerlies at first, gusting to more than 40km/h before easing and tending more south-westerly. The maximum temperature was 3 degrees less than yesterday but still above average - 14.1 at 2:50 this afternoon. In Canberra now: It was fine and generally sunny on the coast today after some isolated showers in the south this morning.

Wollongong and Nowra - 16 degrees. Winds were fresh southerly closer to home - Goulburn - 12, Yass - 14, while it was fine and sunny to the west - Hay - 16, Griffith - 15, Cootamundra - 14. Around the capital cities today - Sydney - mostly sunny and 17, Melbourne and Hobart - cloudy, Darwin - mostly sunny, sunny in the other capitals. The satellite picture shows cloud-free skies over most of the continent. There's some high cloud over southern WA and some cloud along the NSW and Victorian coasts brought by onshore winds. A high-pressure system should move steadily eastward

to be over NSW tomorrow. This should maintain fine, generally sunny weather for the next few days.

There are cold fronts south of the mainland. Not much on the projected rainfall map - isolated showers over Tasmania and coastal Victoria, a possible shower in the far south-west and north-eastern NT.

Of the capitals tomorrow - Perth - a fine day with evening showers,

Hobart - morning showers, Melbourne - mostly fine, Sydney - fine and mostly sunny, fine in the other capitals. For the region tomorrow -

Nowra and Wollongong - fine and mostly sunny, Batemans Bay down to Merimbula - partly cloudy. Goulburn - early frost then fine, Cooma - partly cloudy, Wagga - some early fog then fine and mostly sunny. The forecast for Canberra and the ACT -

fine tonight with light to moderate west to south-west winds. Early frost and some local fog patches tomorrow, clearing to a fine and sunny day. Winds should be light to moderate west to north-westerlies and temperatures -2 to 14. The outlook is for a fine weekend, partly cloudy on Sunday then a change on Monday with the passage of a cold front. There could be a shower with that change but more fine weather after that. In the mountains - a fine, mostly sunny day ahead

with a temperature range of -6 to 4. The probability of snow - 5% tonight and tomorrow. Virginia. Before we go, a brief recap of our top stories tonight. British police say they've foiled a major terrorist plot to blow up planes mid-flight between the UK and the US. 18 British nationals have been arrested and airport security tightened.

And the Federal Government is waiting to see if its asylum laws will pass the Senate after three Lower House Liberals defied the Prime Minister and crossed the floor. And that's ABC News. Stay with us now for the '7:30 Report', coming up next.

We'll leave you tonight with a Melbourne milestone - 100 years since the first regular electric tram service. Enjoy your evening. Goodnight. Closed Captions provided by Captioning and Subtitling International Pty Ltd

The police, acting with the security service M15,

are investigating an alleged plot to bring down a number of aircraft through mid-flight explosions, causing a considerable loss of life.

Tonight - red alert on both sides of the Atlantic after British authorities round up a score of suspects in a home-grown terrorist attack. We are doing everything possible to disrupt any further terrorist activity. This program is captioned live. Welcome to the program.