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(generated from captions) in the 90s and the early noutys. They exaggerate their significance in that respect. You see a consistent there
anti-inflation bias, I know there is only one target, an inflation target, but doesn't it sit odd right now our Reserve Bank is still worried about whether that target is going to be breached on the up side and places like Japan and Europe and the US are trying to get inflation up to their target rather than down to their target? One more question, in your perfect world, shall we say, where all government duplication would be removed, have you done any analysis of the actual quantum involved in that in terms of savings? No, I haven't.It is
must be significant.I think it is very large and you won't know that until you have an independent assessment of that. That's why I suggest a Federal commitment. It has to be apolitical, outside government, well staffed, well resourced and empowered to put forward recommendations. Campbell worked because they did that. At the same time there was a massive and growing public debate, not just the finance sector more generally, about the benefits of financial sector deregulation. I remember the initial resistance for example of Treasury and the Reserve Bank to the proposal we have a Campbell Committee. I think I was part of the process of proposing it to Phillip Lynch first, never got up under Phillip. But the response from Treasury is "The last thing finance sectors can do is look at themselves". It was going to happen, we needed to get on the trend. Campbell by being Reserve
fiercely independent of the Reserve Bank, of the of the Government, was able to run a very detailed assessment, the best people and experience and expertise they could find to make a set of recommendations which couldn't be avoided. I remember sitting in Malcolm Fraser's office - I don't think I have told this story - on the day he received the Campbell Committee report plus accompanying documents. There was a note by advisers that advised if he realised he deregulated houses, it would go up by 3%. thrown in up by 3%. The volumes were
thrown in the bin. Some of said "Prime Minister, you can't said "Prime Minister, do that because there is said "Prime Minister, you expectation because you will do that because there have to fix it, it do that because there is a
expectation because you have to fix it, it does have to
be fixed, the global trend is that way". He came up with a taskforce of two Treasury people and two people, including myself, to break them up into bite-sized bits and feed them into cabinet. From that experience, it was difficult, the vested interests were huge. Treasury didn't want it, Reserve Bank didn't want it, the banks would it, the banks would say they wanted it as long as you deregulate us and don't introduce foreign banks, the non-banks said they liked it but worked around regulation to make their money. Conflicting vested interests. It exposed those. When you had to stand up, I remember the governor and the Treasury officials when they had to stand up and argue they didn't approve of financial sector deregulation reform, they couldn't. If you do the same with Government spending, state and federal, it won't be driven by a State Government or a Federal Government, it is a process that's going to probably transened several governments. It needs to be of a similar type of exhaustive analysis and exposure leading to a set of recommendations which if the public debate is right should give you the momentum to make change. I said in my remarks a crucial element will be to have a mature debate in this country about what can we realistically expect of government by way of services and support and how can that be funded. Until we have that sensible, mature debate we are working in a vacuum.We will quick a question from Michael Brissenden.Michael Brissenden, from ABC. I am one who can remember when Tony Abbott was stalking the press gallery as your press secretary some time Prime
ago, in a few months he may be Prime Minister, what do you think of his economic policy that he is presenting to the people, to the election, and what do you think in particular about some of them, I am thinking the maternity leave package? Well, look, the way I look at - I have made the point in my remarks I think this blinded political objective of achieving budget surplus at all costs as fast as possible is nonsensical in both sides of politics, particularly in circumstances where the economy is flattening out and we need a more sensible assessment of the short-term fiscal position. In terms of monetary policy, I think Tony or the other side don't say much about that. They interest
don't express views about interest rates. That's a weakness. Because you have handed that authority to the Reserve Bank and you are not prepared that to statement state a position. You don't see that in oh other countries. The paid parental leave scheme, you have to one or two initiatives in politics that capture the imagination that you are prepared to fight for and that's the context in which I look at that. I do think the paid parental leave is a good idea. I do think if you can do it at the recent salary of the individual's concerned, male or female, that makes sense. It is very expensive. You make a judgment as to how to fund it. Haven't got the capacity to fund it all out of governments, you have to find another way and I guess that's where the levy concept came. Having established a principal of a levy, I notice we can get a levy for DisabilityCare which raises questions about the tax structure going forward.Steve Lewis from News Limited, given Michael Brissenden has opened up the political questioning -You can't help yourselves.- with a dose of economic reform in there. You have raised concerns about things like Gonski and NBN and the cost, do you think it is inevitable that if the Coalition forms government, that Tony Abbott is going to have to wind back those particular schemes and, further to that, and talking about Tony Abbott, you mentioned before you would liked to have lead in the boxing gloves when you took on Paul Keating, what's your advice to Tony Abbott as he takes on Kevin Rudd, the Prime Minister who is more popular than he is and who is thus far proven pretty adept at tackling some of those troublesome issues for the Labor Government? What's your advice to Tony Abbott on what he has to do between now and whenever the election is actually held to win? It is not for me to give Tony advice. When he worked for me I used to give it to him and he never used to listen anyway.(Laughter).Having said that, I think obvious ly Rudd band wagon is rolling ahead. He is buzzing around like a blowfly in a bottle, a lot of colour and movement, a lot of activity one day to the next. Naturally I think through that period there is not much Tony can do and he is probably unwise to get dragged into it anyway, because in a sense he will be seen to responding to Rudd's agenda. He has to bide his time. Having said that, I
think his time. Having said think he has got continue - think he has continue - I think his strategy
since think he has got to then continue - since the beginning of has been to more Prime since the beginning Ministerial, has been to Ministerial, stay out of the negativity, rise Ministerial, stay out of negativity, rise above the negativity, day-to-day political debate, come in on the bigger issues, make the more refined comment and leave the hatchet work to his henchmen and women. He has to continue to do that but he has to come up with areas that capture the imagination of people. As I look at the election, it is Tony's to lose. I don't think personally Rudd can win. He starts several seats behind and I can't see which seats he is going to pull in sufficient volume after the Liberal National Party around Australia to get there. Never say never in politics, they might change. I wouldn't be surprised if the polls come back more than they have done this week and I know he is getting a lot of advice that he should go early rather than late. He is inclination will be to go late as possible, at least go to St Petersburg in early September and have the election after that. Tony has got to position himself in there. The one thing Gillard gave Tony was certainty. She gave him the election date, a lot of time. As a Leader of the Opposition, that's the big uncertainty. You don't know when it is going to be, how to schedule your diary, policy releases and so on, how to marshall your forces. Rudd has regained that initiative. If you are right from the conversation at lunch time, you expect it to be called for 31 August. He needs to go early in order to get there. That doesn't give Tony a lot of time. I need a source. As do you. What was the first question? I think we have covered it all. Mark Kenny.Mark Kenny Age' and 'Sydney Morning
Herald'. Kenny.Mark Kenny from 'The
Age' Herald'. I will probably go political and economic as well. On the political side, you Tony
mentioned that this election is Tony Abbott's to lose. That was the sort of logic or descriptions that were around back in 1993 when you lost the supposedly unlosable election. I wonder if you could take us into your head if you would in terms of the psychology of that. How bruising was that to get so close to the ultimate prize in Australian politics and then fall short? Is Tony Abbott facing that kind of dilemma if it does become close? Secondly, and quickly on an economic matter, there has been a fair bit of talk about the way China has financed its incredible property boom internally with fears that there hasn't been a lot of rigour in some of the loans that have gone out. I wonder is that something you are concerned about in terms of the implications for Australia in the medium term? Look, I have said many times I was one of the few people that didn't think I was going to win in '93 and I remember that evening I said to my colleagues "Look, I think we have done pretty well, we doubled the margin, we will just lose". That was my view through the campaign. I knew we had to win it. There were two sets of polls, one that was the relative standing of the parties and the other one was who do you think will win. The second one was always Hewson. That was a major disadvantage. You don't want to be thought to be that far out in front. In those days, Liberal Party had a limited capacity to win an effective marginal seat campaign. We were beaten on the health issues in key marginal seats particularly in Victoria where we didn't have capacity for rebuttal ads and so on. The GST evaporated to my mind about 10 days out. I knew that was going to be hard because when people get letter box drops, in those letter box drops and faxes and bullied on street corners to be told "Mother takes two kids to the doctors and cost $92" whatever it was, totally without foundation, it will have impact. People are effective fear campaign. On uncertain. Keating ran an night of effective fear campaign. night of the election, he
thought he night of thought he lost and told his staff. It was obviously a close call. I thought I'd had my run and was happy to move on, although circumstances convinced me to stay on for a while for transitional purposes. I think Tony is pretty steeled by that experience to be honest. He lives through that. He has seen it. I think he - he is the sort of guy who is never going to give up. The best example is one day we flew in to visit Uluru, we stayed at the sherton, got in late, asked the waiter how far is it to Uluru, about 8km. I said to the guys let's run out there because we had meetings with Aboriginal leaders and rangers and so on. Turned out to be 24km. Turned out to be the most painful experience of our lives because it is psychologically bad, you run towards the rock, you run away from it, you think "I should be getting close". Tony was there and Tony wasn't in those days much of an athlete but he was determined to make it. By the time he had got there, he had worn the crotch out of his shorts, absolutely knackered, but he was never going to give up. That's how I see the election campaign. I am very concerned about China. business in China over have done a fair bit business in China over the
years and had some business in China over years and had some painful
experiences in some of those businesses. We look at China through Western eyes. I will give you two examples. I was in China once in the middle of give you two examples. I was September, the month of September, and the Government announced a growth rate for the September quarter which we announced a growth rate couldn't do in this country until about the first week couldn't do December. I have always had my suspicions about numbers in China. They have got better than they were 15 years ago, 10 years ago, but not that much better. Secondly, we look at the conduct of their monetary policy for example through Western eyes. The Central Bank of China makes announcements about tightening reserve requirements or putting up interest rates and that doesn't translate to where the lending is done, to the regions, the local mayors leaning all over the local bank to increase the lending for this project and that project as they compete one town against the other. It is easy to see you can build up a fairly substantial volume of non-performing loans that under write things like property bubbles easily. I was at a Chinese industrial town on the east coast towards the end of last year to get an award, new convention centre, literally finished, paint was wet as we
walked out on to the stage. Surrounding that were buildings residential, retail, empty for as far as I could see. I think that causes me to worry. I can't say they don't have the capacity to manage it. When they listed some of their banks who had very large volumes of non-performing loans, they wrote them off against their international reserves and gave them a relatively clean balance sheet. There has to be a limit to how much of that you can do, particularly in an environment where there is a very significant emerging gap between the rich and the poor. It is coming to a level where it is going to be a problem. I remember a plant we built, buses and coaches, the CEO package, there was a Western CEO package and the factory floor workers were getting an Australian dollar a day. I said that can't last. It can't last for the plant and it won't last for the country. A number of factors come together to say China could have a bumpy road. I see the announcement this morning by one of the Chinese leaders if the growth rate looks like falling, we will step in and make sure it doesn't. Are you going to give new statistics or do something substantive? It is very difficult when they have large exposures in regional areas around the country to what I think are essentially non-performing loans.Dr Hewson, Peter Phillips, welcome back to the Press Club, good to see you back after 10 years, doesn't feel like that somehow but the context and the looming circumstances are but the context and circumstances are not
unfamiliar. but the context and the looming circumstances unfamiliar. I want to take you over and above the categories, the four subject groupings which you addressed and take you beyond that to two and take you beyond that to others and wonder if you'd like to offer some thoughts on these two others. One is population, 12th 13th largest economy in the world operating off a population base of 23 million. How sustainable is it for Australia to keep its position of a population base at only natural increase? Beyond that, foreign investment. One of the keys traditionally to Australia's capacity to sustain growth, where needs it go into the near term and medium term future? I believe natural increase in population won't be enough. I believe we can exist with a significantly bigger population if we get the infrastructure right. That's environmentally sound infrastructure development. You look at the experience of countries like the US which have a similar land mass and similar problems with some of the mixture of that land mass and being able to support what is it 300 million people, 250 million, 300 million people. There is a long way for us to go. If we continue to do what we do, which take a place like Sydney which is the bane of my existence in a transport sense on a in and out on the M5, if we don't plan the infrastructure base of the cities going forward and continue to resettle most people in cities, we will have significant problems. The limit is the infrastructure and the capacity to deal with it. If Sydney had a mass transit system, fast rail Sydney to Melbourne, Brisbane whatever, substantial differences can be achieved in a short space of time. Having said that, I think immigration is a plus. We have had a very good impolice station program over the - immigration programs over the years and have been able to bring on balance successful migrant groups to the country. I am a strong defender of that. Somebody asked me what's the greatest national asset of this country since the Second World War? I said it is the fact we have been able to build a multiracial, multicultural, multireligious society as successful as we have. Fundamental to that process has been immigration. Economic benefits are easy to argue and I do think I get disappointed in the asylum seeker debate where we have gone as hard line as we can from both sides of politics to make the life of these people as miserable as come here. The fact is we are probably giving up significant resources in doing that. On population I think we can live with the bigger population if we get the infrastructure right and I think an essential part of that is going to be immigration. On foreign investment, we obviously need it. It is our lifeline. I use the example of my infrastructure bond, I think that's another form attracting money to this country. There is a very difficult layer there underneath which you governments can't afford to get wrong. In the Fraser government I did in the Treasurer's office look at a lot of foreign investment proposals. In those days it was a big issue. On one occasion, there was a fair area of swamp land that Joh Bjelke-Petersen had been able to flog to a Japanese man. Everyone thought that was terrific. What a dud he must have been to pay good money for this piece of swamp land. The mood was very supportive of that level of foreign investment. It wasn't all that long later when they found out Mr Usaki wanted to build a Japanese enclave, exclusive golf course, no access to the general community et cetera that there were firebombings and major disruption, people chained themselves to trees and bulldozers and everything else. You can change the nature of the public perception and support for immigration just like that - in foreign investment just like that, you can do it for immigration too. That's where we have to be mature about our attitudes to these things. They have to be well managed. Whoever has been in power has approved the foreign investment proposals, there haven't been that many there haven't been that knocked back simply because we can't afford to.Tony Melville, I have an economic question and politics one. You talked about Campbell but not much about the Henry report. The GST has played so much of a part in our politics and most of the debate is whether it goes up. What about the idea in the Henry report about a business cash flow tax? Is that one of the big ideas that one of the political parties could grab hold to get rid of the hated BAS. You have had a hugely successful post plitical career, if have you got any advice for Prime Minister Gillard? Maybe you think you ducked a bullet in 1993, you have done pretty well.Look, I think Ken Henry's report was very important and he didn't in any sense come up with an integrated sense of recommendations as he openly says. He was asked to set pathways and identify areas where you could work. It was seriously constrained because he wasn't allowed to look at GST. My only answer is you do need to have something like my Federation Financing Committee that looks at these things objectively and makes open recommendations. All options have to be on the able, whether it is business cash flow tax or GST or whatever and they have to be looked at. There will be hard decisions but we have to take hard decisions. Once we know what level of services we want from government and who we want them to go to, we will have to agree as a community how they will be funded. The best way is an open and public debate about it over time, not driven by people at the political level, at least initially, but getting expert opinion, getting community opinion and working through the detail. I think Henry was a very important he was particularly shattered
when out of he was when out of his 130-odd recommendations, just a couple got picked. Then they got neutered in their application. When you get the capacity, when you can attract the capacity and experience of Ken Henry and then waste it the way it has been wasted I think is a tragedy. It will stand the test of time in terms of its contribution if there is a proper full-blown review of the Julia
tax system going forward. As to Julia Gillard, I don't know what to tell her. I wouldn't pretend to know what to tell her. You have to make these judgments yourself. I think it is a very personal thing as to what you think you want to do with your life. If politics is an end in itself, she is going to have a lot of trouble. Relevance deprivation syndrome as someone said can be an issue. On the other hand, I think she is a capable person, a breadth of interest and she will do that. She wasn't a great leader of a government and strategically let herself down more times than the rest of us have had Breakfast, that doesn't say she won't make a substantial contribution in areas that matter to her, things like education but I can't give her for advice. For now, keep your head down. She won the preselection, that's about as far as you can go.Ken Randall. Dr Hewson. It is said one of your problems in '93 was the policy you put out was so detailed and so specific that it went over most people's head and the debate on policy seems to have gone down steadily since then and we are a long calling
way from the debate you were calling for today. We seem to be more engaged in the popularity contest. Why do you think that's happened and how can it be cured? Part of is just the point you made, nobody wants to be like Hewson.(Laughter).Let's not make the same mistake twice. If you look back at Howard's campaign in '96, Keating had beaten himself in a sense. I remember the movement in the announced
polls the weekend after they announced they couldn't deliver the LAW tax cuts without a GST. His polls collapsed and it was about the same margin by which Howard won with a blip in the middle from Downer's rise and fall. I think against that background people have been saying you don't want to go to that sort of detail, you don't want to lay it out, leave yourself open, run a small target rather than a big target so Howard got in in 96 without having to say too much apart from broad aspirational objectives and that's been the case ever since . Howard tried to win community in 1998 to win back the business community in 1998 by announcing
the community in 1998 the GST. He almost people I the GST. He people I know around the place think it think it came too close, he should not have done that. Bob Hawke still tells me my biggest mistake is I didn't put the GST in the bottom drawer and pull it out after the election. You need to take the community with you when making major change. It has got worse. The focus on winning the media in a 24-hour cycle within a 24-hour period and moving from one day to the next one issue to the next, one location to the next and so on, you haven't got an environment where you will see serious policy put forward. As much as Abbott was criticised for his dot point policy on 'Stop the boats', it is what the Government wanted to do, stop the boats, without any consideration as to how that sits in the context of our responsibilities under the Refugees' Convention or under a whole host of considerations on human rights, whether it will actually be deliverable in a medium-term tense in PNG, none of those questions will be seriously asked, we will have a policy but we have had a series of them. We had Nauru and Pacific Solution, and that the East Timor Solution, the Malaysia Solution, now the PNG Solution, I simply ask what's next. It is a race to the bottom in that particular policy area and getting pretty close to it I would hope.James Cant from Canberra Press Cant from the University of
Canberra Press Club. In 2010, you described Tony Abbott as not a you described Tony Abbott not a policy-driven person. On this basis do you think Tony Abbott is the best person suited to the role of Prime Minister at this time? In reference to some of your earlier comments, is there a Goldilocks zone for policy debate that's in between stop the boats but doesn't quite go as far as describing the GST in effect on a birthday cake? That was a question where I should have just told to piss off. We had a strategy at the time to make sure we answered questions in detail and unfortunately a birthday cake depending on the type of cake was very difficult to answer. I have looked back and have had it played for me on many occasions. That answer was 100% correct. As I said, I should have just told Willessee to piss off.SCATTERED APPLAUSE.I don't think a Abbott - you don't have to be a policy guru or fanatic or absorbed in policy detail to be a good Prime Minister. I would suggest, for example, the boast model for Tony to follow is something like Hawke where he came in and recognised he didn't have much capacity to perform in Parliament and he was just over time it was a business he was going to learn and so he sat back as chairman of the board, appointed the best ministerial team he could, gave them their head, he made mistakes, he could pull them into line, surround yourself with good people, I think that's toens Tony's best prescription. Get a good group of people around him prepared to argue the merits on both sides, that would make a difference. That I suggest is the model who would work for Tony. If you are a Rudd type it
control freak into everything, it is only a matter of time before you get destroyed.

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Live. Hello, you're watching ABC News 24. I'm Joe O'Brien. Three people have died overnight in another asylum seeker boot tragedy off Indonesia. It is feared up to 200 people were on board the boat. Early reports say 160 survivors were picked up. I spoke earlier with Indonesia correspondent George Roberts.About 160 people on board. 160 survivors. This is the latest information we are getting. Possibly more than 160
survivors.

survivors. Three dead at getting. Possibly more than survivors. Three dead at this
stage. That getting. Possibly more than 160
survivors.

survivors. Three dead stage. That is the stage. That is the latest numbers but that could stage. That is numbers but that could change.
The origin stage. That is the latest numbers but that The origin of the The origin of the people are from Afghanistan, from Afghanistan, Somalia, Iraq, Iran and Sri Lankan.Not Somalian, Sri Lankan - sorry this information is just coming through as we speak. Afghanistan, Iran, Iraq and Sri Lankan people on board.Is that coming from Indonesian authorities or fishermen who were part of the rescue effort? That is coming from authorities in the area as far as I am aware. Contacts of ours who are part of the search and rescue authorities in that area. Information is trickling through slowly. This stuff always changes. Bare with us, numbers could change.As far as leaving the coast goes, given the proximity of this boat to the main land, it is fair to assume that if it left North jav why from a port from Jakarta, it would have been in the past 24/48 hours - Java. If it left a place closer to Christmas Island perhaps, in the Sunda Strait in West Java or on the south-west Java coast, you would expect it to have left in the past 12 hours. You would expect that it probably left last night given its proximity to the coast.Would you assume this is a boat that was headed for Christmas Island or have you heard that it was? That seems to be all the indications at this stage. Obviously it is really early days. It is still early hours. I am issuing a caution that any of these numbers could change, this information could change. The local search and rescue people are saying up to 200 people on board. In the past couple of hours that has changed from 100 people on board down to 60 people, down to 20 people on board and then we think that the text message of 20 people on board was missing a zero. We have just spoken to the head of search and rescue and he is saying up to 200 people. Anything could come in the next hour to clarify that.George Roberts from West Java.The Opposition Leader says the latest incident is another tragedy that been avoided if the PM Kevin Rudd had not Government's Pacific dismantled the Howard solution.This is a tragic reminder of what happens when policy change in Australia puts the people smugglers back into business. I am not crass enough to directly blame anyone in this country for tragedies at sea, the people smugglers bear this the prime responsibility for this. But Mr Rudd should be man enough to admit that he got it wrong. He should be man enough to admit that it was a terrible tragic mistake that his Government made back in 2008 when they reversed the policies that worked that had been put in place by the Howard jvt. The only way to end the tragedies is to stop the boats and the only way, I submit, to stop the boats is to change the Government. The Government which started the problem is not going to solve the problem.Opposition Leader Tony Government. Abbott speaking there on Gold Coast just in the last couple of hours. Allegations of abuse amongst asylum seekers on Manus Island haven't shaken the Government's resolve to send more people there. A former security manager at the Manus processing centre says there were cases of male rape and immigration authorities didn't deal with it. The Government is promising to investigate the claims, the Immigration Minister is heading to Manus island for his first inspection of the camp. Narda Gilmore reports.Manus Island is meant to be part of a solution.It has just become a dark and dirty secret.Rod St George worked there as a security manager. He quit his post in April and has turned whistleblower. He has told SBS's 'Dateline' program, the island's detention centre is plagued by abuse, torture and rape and immigration officials are doing nothing about it.There was nothing that could be done for these young men who were considered vulnerable, which in many cases is just a euphemism for men who were being raped.He says conditions there are worse than a prison. Attempts at self harm happen daily and weapons are being stock piled as tensions build.The detainees are open that there will come a time when whether they will break out and people will be killed.The Immigration Minister's called the claims horrific and has promised to investigate and make sure conditions are improved. But the Government has no intention of abandoning the Manus Island option.Even the whistleblower himself wasn't saying shut it down. He was saying it can be fixed and these are the things that can be done to fix it. That is what I intend to work through.We will work with their authorities to ensure the safety and security of those who are assessed in Papua New if
Guinea and furthermore, those, if they are determined to be bona fide refugees, those who will be settled in Papua New Guinea.The Immigration Minister will visit Manus Island and the detention in Nauru this week. The latest family has been revealed to member of the British family has been revealed to the
public. family has been revealed to public. The proud parents William and Kate public. The proud William and Kate say they are
still working on a name. Mary Gearin reports from London.A royal revealed and about 1,000 waiting well wishers were jubilant. At just over a day old, the latest heir to the house of Windsor made his First public appearance.The future King seemed oblivious to the attention but his father said he is already making himself heard.He has a good pair of lungs on him that is for sure. He is a big boy, he is heavy. We are still working on a name. We will have that as soon as we can. It is the first time we have seen him really, having a proper chance to catch up.These royalties whose pap later is seen as the monarchy's future spoke of experiences common to many.It is very emotional. It is such a special time for any parent, they would know what this feeling feels like.It is very special. He has her looks thankfully.No, I am not sure about that.Then they were asked about the baby's hair.He has way more than me thank God. Thanks a lot.For the people who waited hours and even days to see the couple it was a pivotal moment.It was fantastic. I have never experienced anything like it.No, so pleased to see Kate and the baby and William too.Fantastic. A great moment. I was in tears and I was whistling and hip, hip hooray for them.Earlier in the day, both sets of grandparents paid visits.He is absolutely beautiful. They are both doing really well. We are so thrilled.How are the parents doing? Fabulously.Meanwhile Britain put on a typical show Britain put on a of pageantry.Two separate gun salutes heralded the Prince's arrival and the bells of thrilled.How are Westminster Abbey rang for more than three hours.Best wishes continued to arrive from all corners, including William's work mates.As the nation celebrates this both public and private milestone.So starts a life of intense scrutiny for this newest royal. For now though the family will retreat for some privacy.After a first time attempt at a car seat, the family was off to Kensington Palace.One media appearance down, so many to go. down, so many to go.The head of the Victorian Sentencing down, Advisory Council admits the communication between victims and the Victorian Parole Board need to be examined. His comments come after a scathing attack on the Parole Board by the husband of Melbourne murder victim Jill Meagher. Tom Meagher has gone public with emails he sent to the board demanding answers as to why his wife's killer was free, despite breaching parole conditions. Professor Arie Freiberg says while it is not common practice for the board to meet victims, in this case it should have been done as a matter of courtesy.Education Minister Bill Shorten says his optimism level is 6 out of 10 on the prospects of reaching a deal with Victoria on school funding. Mr Shorten spoke to political editor Lyndal Curtis a short time ago.The PM held talks with the Victorian Premier Denis Napthine. Have Premier Denis you also been talking to Victorian Government officials
about the education deal? Yes, the Labor Government in Canberra is very committed to providing a great deal for children in Victorian Government schools. I attended with the PM a meeting with Premier Napthine yesterday and I have had other discussions with him and his senior representatives since being appointed minister for education. We want to see children in Government schools get the same deal that children in Government schools in NSW and SA are getting and indeed Catholic and Independent schools in Victoria. The deal we want to give children and their parents in Victorian Government schools is extra resources at every school so that every individual child can get the individual attention they need to do as well as they possibly can whilst they are at school.Why then has Victoria not signed up? What are the sticking points? What are the things Victoria is still unsure about? We did have constructive discussions yesterday. The Victorian Government said that money that is got a different view about money that resources. They have a resources. They have a view about preserving the Independents of the about Independents of the Victorian
education system. about preserving the education system. For us this is education is all about the children. do we make sure that kids who are falling behind in literacy and numeracy get that additional support to keep up? How do we make sure those kids who are who are creative and imaginative and excelling at school get their personal school horizons broadened? How do we make sure that children with special needs get that support in both the nongovernment and government sector? We believe our money offers a very good offer. There is no traffic jam of the Federal Government and the Federal Coalition trying to help provide more resources for schools -Yes, but you say -The Coalition is not offering what we are and so hopefully we can convince the Victorian Government of the merits of what we're doing.Is your argument then to Victoria, take the money that we are offering because if the Coalition wins Government, you will get a worse deal? That is one of the propositions we are advancing. Only Federal Labor has a good deal for children in schools to have better schools and better outcomes for kids when they grow up.When Victoria - when you say Victoria has questions about the money, is it the quantum of funding or the way it is distributed? I think that - I don't want to necessarily telegraph each position in a negotiation. They have a view. We have a view. The trick is can we get on the same page? I believe that Premier Napthine is committed to a better deal for Victorian school children. We are the only game in town when it comes to a better deal for school children. Of course, the Victorians run their schools so we want to make sure that they continue to run their schools. We just want to make sure that children get a funded according to need. If Premier O'Farrell in NSW, a Liberal Premier thinks this is a good idea, clearly politics shouldn't be a thing which holds up Victoria embracing the deal. If parents who send their children to nongovernment schools in Victoria, and yesterday we confirmed that 200,000 in the Catholic system in Victoria at 483 schools will be getting a better deal Victoria at 483 schools will getting a better deal and
certainly the Victoria at 483 schools will be certainly the Catholic education office thinks so. We want to make sure that parents who want to make who send their children to Government schools in Victoria also get the same deal Government schools in also get the same deal that NSW also get the same is getting and the nongovernment sector is getting in Victoria.Where are you on the optimism spectrum in Victoria.Where the optimism spectrum about getting the deal done with Victoria? Are you more optimistic than you have been or less? I am about a 6 out of 10 on the optimism scale. It means that the preconditions are there to do a deal. Victoria does run its own schools. The Commonwealth government doesn't run schools. This is Commonwealth taxpayer money. Labor has just made a political choice and that is what you get when you get a Federal Labor Government. We will prioritise the funding of better schools so individual children get a better deal.Bill Shorten talking to Lyndal Curtis.For all the latest election news and analysis, take a look at the ABC's Australia Votes web site. There is a good run down of the parties' policies and video content as well. There is analysis, blogs and opinion. It features Antony Greene' election guide. As we get closer to the announcement of the date for the Federal election, it will be the go to site. Book mark it.Let's look at business news with Elysse Morgan. How are the markets going today? We have come off highs, as has the dollar since we had a disappointing production of manufacturing index report out of China. It did pick up following the inflation print on Australia that we had and taking a look at those. The official figures show consumer pricing aren't rising as much as expected.

The annual rate is 2.4%, down from the previous quarter and rely within the Reserve Bank's target range. The measure that the RBA looks at in conjunction with others rose to 2.6% and that has changed the market bets on whether there will be a rate cut next month. For more I am joined by Bill Evans from Westpac.This inflation print was build as the last piece of data that would confirm a rate cut next month from the RBA. Do you still see it that way? It is in no man's land. It wasn't weak enough to make Bank forced to cut on of deflation concern but Bank forced to cut on the basis wasn't so strong that of deflation concern couldn't cut if they felt of deflation concern but it
wasn't so strong wanted to because of other wasn't so strong that they couldn't cut if they factors and I believe the other factors are compelling, particularly around the soggy growth environment that we have and the fact that it is likely we will see a downward revision in the Reserve Bank's growth forecast for next year, below the trend the trend story, a Central Bank that is forecasting growth to be below trend and doesn't have an inflation constraint should be providing further stimulus.You think that at next month's meeting the RBA still has the ability to focus on growth, employment and the other factors which they need to look at, not just inflation? Absolutely. The inflation number today, as you pointed out, the Corinne flation measure remains steady - Corinne flation - there is the trim mean and weighted median. That was up at 2.6 but the mean was only 2.2. My view is that is a richer measure of the Corinne flation and that gets slightly more weighting when the Reserve Bank looks at these. That low trim mean is quite significant.Just before we go into the details of the inflation print. Looking at the headline rate slowing to 2.4% is that an indication that the economy is slowing? there is plenty of other indications that economy is slowing? I think
there indications that the economy is slowing but certainly low inflation is consistent with that particular story.What were the most significant moves during the month do you think? Over the quarter we saw some evidence that some of the discretionary components were stronger than expected, for instance car prices that were down 0.9 of a% in the March quarter only down by 0.2%. We saw a sharp jump in clothing and text tiles, but that followed a 3.6% fall in the previous quarter. Household items were up 1%. They fell in the previous quarter. If you really wanted to make a case against a rate cut, you would say that some of these discretionary items were stronger than expected. Another one was rent, that was up 1.1 compared to 0.8. Some of those components were stronger. Food was only up 0.1 and overall, the housing component, the largest component in the index was up 0.7% which is down from the 1.7% we had in the previous quarter but the 1.7 was heavily influenced by a sharp jump in Victoria that we think was a one-off.We will have to leave it there but thanks for your time.Thank you. To the details of the Chinese data we have had out today, a key measure of activity in the country's manufacturing sector as fallen to an 11-month low raising concerns about growth in the country. It focuses on small and medium size factories dropped to a level of 47.7 in July. It is the latest sign of a slow down in the economy of Australia's biggest trading partner. It sent the Australian dollar tul bling and put a squeeze on the resources stocks. The market responded well to the inflation data that we saw before the Chinese data came out. - tumbling. We are having difficulty with our graphics but I will quickly run you through it. The dollar sharply reacted to that Chinese data. It has tumbled to 92.5 US cents. The share market came off its highs and it was sitting around 0.4%. Asian markets suffering under that Chinese PMI report as well. Overnight in the US it was a lacklustre finish to trade. That has provided very little direction for the market.The operator of Japan's direction for Fukushima Nuclear Plant has admitted for the first time that radioactive ground water has leaked into the Pacific Ocean. It is a problem that scientists have suspected but the plant's operator insists be
the environmental impact will the be minimal.It is a problem the operator of the Fukushima Nuclear Plant, TEPCO, has been battles for months. How to stop ground water from leaking into the complex and becoming contaminated. Now the company has admitted that radioactive water from the site has leaked into the sea. A spokesman insists the impact on the ocean will be limited.TRANSLATION: High readings of radiation from detected from the ground of the turbine building. We are very sorry for causing concerns to people and we deeply apologise to the people of Fukushima.The Japanese Government says it is taking the issue very seriously.TRANSLATION: We were informed of Fukushima Nuclear Plant's possibility of leaking contaminated water into the sea. The ministry of trade, economy and industry was instructed to act promptly to prevent contaminated water from leaking to the ocean.TEPCO had previously denied that contaminated water was reaching the sea. That was despite samples of ground water and sea water at the plant showing spikes in radiation levels. Japan's nuclear watchdog suspected two weeks ago and ordered TEPCO to investigate. TEPCO's comments this week come after the PM Shinzo Abe's Liberal democratic party scored a decisive victory in the upper house elections at the weekend. The win cements the pro nuclear leader's grip on power. But Mr Abe faces a tough task rebuilding public confidence in nuclear power. Time for sport with Amy Hetzel.They were great shots of the Liverpool training session yesterday with so many fans there turning up.A huge night ahead for soccer fans. Melbourne is a sea of red today as fans and players prepare for tonight's match between Liverpool and the Melbourne Victory at the MCG. A crowd of 95,000 is expected at the game and the Reds were acquainted with a strong showing from their fan base at training last night. Victory coach and long time Liverpool supporter Ange Postecoglou says he is hoping for a strong fight from his side but realises it will be a huge test.Cowboys co-captain Johnathan Thurston has vented frustration at the Australian Sports Anti-Doping has Agency on social media following an early morning drug test. Thurston wrote on Instagram following a 6 a.m. visit, thanking ASADA for bash k down the front door and waking his young daughter. The blood and urine tests aren't connected to the ongoing ASADA investigation into the NRL.17-time grand slam champion Roger Federer will, for the first time, begin his Australian Open preparations at the Brisbane International. The world No.5 was today unveiled as a starter at the December event after a long series of negotiations with tournament director Cameron Pearson.Roger transcend sport. He is certainly not only a global superstar on the court but also off the court with his humanitarian work. It will be a tremendous boom not only for the event and for the fans of tennis, but also for tourism here in Queensland.Federer won his last grand slam at Wimbledon in 2012 and claimed the most recent of his four Australian Open crowns in 2010. It will be the first time he has been in Queensland since he was on holiday as a 14-year-old.To cricket now and batsman Usman Khawaja says Australia has the capable Australia has the players England leads the series 2-0 England leads and Australia's hopes took another hit when fast bowler James Pattinson was ruled out of the final three Tests with of the final three Tests with a back injury. But cha-cha says all is not lost for the tourists.We have a very good team and if we can perform the way we know we can perform and do it right, there is no reason why we can't beat England.Grandstand cricket commentator Jim Maxwell is not as optimistic. He slammed commentator Cricket Australia for prioritising Twenty20s over Tests.What are they doing to invest in Test cricket? Why don't we give up Test cricket after this and play Twenty20 all the time? That is what the people are thinking when they look at the way the game is promoted, the players are paid, the rewards, the whole lot. It is all skewed.Now to a big story in the US. Mill walky outfielder Ryan Broun has fallen for a drugs investigation. He has been suspended for 65 matches. He has previously been trialled for doping and here is what he said last year after successfully appealing charges.The truth is always relevant and at the end of relevant and at the end of the day, the truth prevailed. I am a victim day, a victim of a process that completely broke down and failed in the way that it was applied to me in this case.Braun was the 2011 national league MVP and unsurprisingly many current players are ask asking for him to hand back the award. Braun is on a $145 million contract with the Brewers that runs until 2020. A year ago London was gearing up for the start of the Olympics. Exactly a year from today, Glasgow will host the Commonwealth Games. The the Commonwealth Scottish city will play host to 4,500 athletes competing across 17 sports.Saddling up for Scotland's biggest sporting spectacle. A new generation of track cyclists are being trained at the Sir Chris Hoy velodrome. Built for the 2014 Games, the venue is proving almost as popular as the man himself.He has won so many gold medals. It is amazing.What would you like to say to him? You're a very good cyclist and I wish I was like you.He may not be competing next year, but as a Games ambassador, he is determined that Glasgow 2014 will be just as successful as London 2012.A generation of young people who see people succeeding and winning medals and they believe they can do the same when they grow up. It is inspiring when you see an event up close.The host will be Glasgow.CHEERING AND APPLAUSEIt has been six years since Glasgow won the bid, in that time, three new venues have been built. The bill for hosting the event will add up to over half a billion pounds but organisers say it will be well spent.We have already got all of the permanent sportsent events up and running, they are being used by the public and for competition. There is a legacy happening right now.Tickets go on sale in just a few weeks time and the whole idea behind this party atmosphere is to try and get people to pay for those seats.That will be the real test, as to whether the public has engaged with these Games.Speaking of has Commonwealth Games, Sharelle McMahon, Australia's former netball captain. She won two Commonwealth Games titles but today she has announced her retirement. A fantastic player and ambassador for the game.Here's Paul Higgins with the weather.Cloud-free skies over much of Australia at the moment. An upper level trough is bringing cloud to Queensland. A trough and pool of cold air off NSW is bringing coastal showers there and a cold front that stormed through the south-west of WA has brought welcome rain at last. 20-40 mm around Perth and Bunbury. It is heading east but it is weakening as it does. The rainfall amounts will drop off. Another front is due in the south-west late on Thursday, showers south-west late on Friday. Late on Thursday, Tasmania.

Tasmania.

Thanks Paul. Stick with us on ABC News 24 as we bring you the very latest on the day's top stories right throughout your day.

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The world's first glimpse of William and Kate's newborn prince.AlHe is a big boy, quite heavy, but we're still working on a name, so we'll have that as soon as we can. It's the first time we've seen him, really, so a proper chance to catch up.Claims vulnerable detainees have been sexual assaulted on Manus Island.Fukushima's operators admit radioactive ground water has leaked into the Pacific Ocean.And more than 95,000 fans expected to pack the medge when - to pack the MCG when Melbourne Victory takes on Liverpool tonight.The new