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The political face-off on asylum policy continues - the Coalition unveils plans to house thousands in a tent city on Nauru. links to the Comancheros revealed to be one of two links to the revealed to be one of two men shot dead in Sydney overnight. Two Australian monks accused of sexually abusing pupils at one of Scotland's most prestigious Catholic schools. And, Christian Sprenger takes Australia's first gold at the Australian Swimming World Championships. You're watching ABC News 24, I'm Nick Grimm.

The Australian sharemarket down ahead of a key speech by RBA governor Glenn Stevens. We'll check figures later. First of all, Manus, now Nauru. The number of beds planned in Pacific nations for Australia's asylum seekers is rapidly expanding. The Coalition wants to increase capacity on Nauru by more than 2,000 places. Labor's been considering an increase of about that size, but is deeply critical of the way the Opposition's gone about it. Military tents are a temporary solution for offshore processing while centres are built, but the Opposition has more permanent plans. It wants to erect a tent city on Nauru to house more than 2,000 people. We would be prepared to rapidly ramp up the capacity of Nauru to 2,000 and beyond. Under a 5-year Coalition plan, the island could become home to a village for refugees. Frontbencher Scott Morrison made the announcement after touring the current centre which was severely damaged during riots earlier this month. I've been talking to locals over the last couple of days and they remain supportive of having the facility here. The boats keep coming and both sides of politics are looking at ways of expanding the offshore detention network. The Immigration Minister says he's already discussed expansion plans with Nauru and claims the Opposition's comments about the centre's size will help
people-smugglers. It's childish. You don't set a limit on capacity. The moment you do that, you give people-smugglers a target to fill. With an election looming, both sides of politics have made a series of border protection announcements in recent weeks. The Greens and human rights groups are again calling on major parties to stop trying to outdo one another. The military is currently helping expand the Manus Island detention centre and the first asylum seekers to be processed under Labor's Papua New Guinea deal are due to be sent there in the coming days. Labor insists the deal is a deterrent, but more than 1300 people have arrived by boat since it was first announced. Let's get more on that story. The Coalition's immigration spokesman Scott Morrison is on Nauru and says Opposition's plan. It's going he's had discussions about the to involve Opposition's plan. to involve Australia paying for extra detention and resettlement facilities as well as aid funding. haven't been specified. The Coalition as aid funding. The costs
haven't been specified. The Coalition frontbencher says any asylum seekers sent there wouldn't be guaranteed resettlement in Australia. Scott Morrison spoke to Lyndal Curtis by phone from Nauru. Welcome to ABC News 24, can you outline what your plan is and what the status of it is? Last week with Operation Sovereign Borders, we made it clear we would be looking to expand the offshore processing capacity for those who come illegally to Australia by boat. The Government has taken steps to expand that capacity on Manus Island and if that is achieved, that is welcome and we would continue to do that.
But we would go to our primary site for optional processing which is Nauru. Over the course of the last two days I've had the opportunity to look at those two sites that have been identified that could take additional capacity. Immediately there would be in the same way the Government is ramping up the accommodation on Manus Island, here on Nauru that could be done more simply for at least 2,000 sites. But in addition to that there is also the need to do the rebuild on the centre burnt down by the rioters. That work is under way now and also to bring the families together which is terribly overdue. This as I understand it is a 5-year plan, what would you expect the total increase is? Including the facilities that are still to be rebuilt and the Government was planning which was for 1500. On top immediate 2,000 tented accommodation that we've mentioned. accommodation mentioned. With post-assessment accommodation there's potential for around about another 2,000 there's potential about another 2,000 and there about another are other sites if additional capacity were required that are other sites if could similarly provide another number. That is a significant increase in capacity on what is currently here. Nauru has a population of only 10,000 people. This would be a very significant increase in that population, wouldn't it? Of course it would, as having offshore processing here in the past has also been a significant step. That brings issues with service that would have to be worked through as they have been with the establishment of the centre so far. There are also the security issues that arose with the riots most recently and we're talking to the Government about the sorts of things we would need to change. Both increasing the local response capacity as well as changing the way the centres are run where you can better avoid those outcomes. How would you ensure people who aren't resettled or aren't found to be refugees don't again become Australia's problem? Last time around we had... what I'm saying is we would seek those found not found to be refugees return home voluntarily - and that would require further discussion with Nauru in terms of their laws - but similarly that's what you'd expect to happen in Manus Island. The difference is that no-one walks away from the reality that in isolated cases that could occur and that's why people who are not found to be refugees wouldn't be entitled to those either. You say you've been working on these plans for some time. Presumably did Shadow Cabinet sign off on these some time ago just waiting for an announcement? Offshore processing has been Coalition policy for decades so, of course, that has that level of support for offshore processing. It's been the mainstay of our policy for a decade. Scott Morrison there speaking to Lyndal Curtis. Thousands of retired Defence Force members meanwhile look set to get a pension increase whoever wins the upcoming election. Labor is promising to lift indexation for 55,000 pensioners aged over 65. It's not as generous as Tony Abbott's pledge, but military retirees will be better off under either government. It's not a cheap measure and certainly I know it will be welcome as a means by which these pensioners can keep pace with the actual cost of living. We will put this policy into place in our first Budget and finally ensure that people on the DFRB and DFRDB get the indexation justice they deserve. The Government's pension promise would be worth $34 million over the next 4 years. The Australian Crime Commission says organised criminals are increasingly using social media to corrupt police and other officials. In its crime, its annual report on organised
crime, the commission also warns that the Internet has become a popular tool for criminals using to recruit public officials or bribe them to turn a blind eye. Justice to turn a blind eye. Minister Jason Clare released a report earlier today in Brisbane. This is a sobering report. It tells us that organised crime is now more powerful, more pervasive, more complex than ever before and there's one statistic in the report that stood out to me as I read it. Organised crime worldwide now makes more than $870 million a year. To get a grip on the size of that figure, that's more than the GDP of Indonesia. Another way of putting it, if organised crime was a country, it would be in the G20 and these big organised crime syndicates that target Australia are also targeting other countries. Last year, our law enforcement agencies met with the law enforcement agencies of the United States, the UK, Canada and New Zealand as a group and New Zealand as a group of
countries and for the first time shared their top 20 criminal targets list. And what that work showed is that we are all targeting the same criminals. Most of the big-time organised criminals that target Australia are based overseas and most of the criminals that are targeting Australia are also targeting the US, the UK, New Zealand and Canada. And there's a simple reason for that. We're a wealthy country. We've got a strong economy. Criminals can make big profits by targeting Australia, whether that's selling drugs or whether it's superannuation fraud or many other different types of fraud. Home Affairs Minister Jason Clare speaking earlier today. A teenager who survived being shot in the neck just two weeks ago is one of two men killed in separate shootings in Sydney overnight. Bassil Hijazi was gunned down in a public killed a few
carpark. Just minutes later a killed a few suburbs away. Johanna Hatcher has the details. Bassil Hijazi was shot here last night details. Bassil shot here last night in Bexley
in in Sydney's south in a carpark. He was in Sydney's south in He was shot several times and paramedics arrived on the scene and took him to St George Hospital where he was unfortunately declared dead on arrival. A local spoke to us earlier and described the scene where she was last night. I just saw Bassil on the floor. I've pulled into the street and he was just lying flat on his back and by the time the ambulance got here, he wasn't responding. Bassil Hijazi was shot just streets away two weeks ago in the neck. He was taken to hospital then in a stable condition and police say that was a targeted attack two weeks ago. There was another shooting that happened just a suburb away in Earlwood. There were reports of several gunshots fired around 9:30 last night. A 35-year-old was shot several times. He was taken to hospital and underwent surgery and unfortunately was declared dead earlier this morning. Now police say the investigations into these two incidents are early, but that the two incidents are not related. Two Australian monks have been accused of sexually abusing pupils at a Scottish Catholic boring school over a Australian spanning 30 years. One man has since died and a second man is living in Sydney. An investigation by the BBC uncovered evidence of decades of sexual and physical abuse at the now closed Fort Augustus Abbey School in the Highlands and in a feeder school. This Benedictine Abbey runs a school drawing pupils from over Scotland. It looks for all the world like an

Dillic childhood on the banks of Loch Ness. For decades devout Catholics entrusted their children to the Fort Augustus Abbey School. Only now 20 years after the school closed is it clear that some of those children were betrayed. Donald MacLeod was 13 when he was sent to the Abbey in 1961. His childhood was far from idyllic and he blames this monk - an Australian Aidan Duggan. He pulled my Australian Aidan Duggan. pulled my trousers down and it was quite horrible. Painful.

was quite horrible. Painful. Father Duggan died before the crimes here came to light. The BBC has spoken to more than 50 former pupils of 47th Air Defence Brigade and its prep school. More than a third describe physical violence, six allege sexual abuse. Before he abused me, he closed the curtains so no-one would see, used to cry at night. We were saying our prayers at night and then I used to cry, cry. Well, I'm very sorry, very sorry about any abuse that may have been committed at 47th Air Defence Brigade, any abuse that may have been committed at any Benedictine school or anywhere for that matter. What happened here at 47th Air Defence Brigade leaves many questions for the Catholic Church. How much was known, what was done to stop it and what's being done now to investigate? The police have now begun an inquiry, but for the boys who were abused here, it comes decades too late. And a second monk named in that BBC investigation is Father Denis Alexander Chrysostom, who lives in Sydney. He refused to answer when the allegations were put to him. The Catholic Church says he no longer performance priestly duties. It's confirmed that he's being investigated by police. The FBI in the United States meanwhile has carried out its largest ever operation against child sex trafficking arresting 150 people in the US over the past 3 days. More than 105 children were rescued from truck stops, motels and as prostitutes. The FBI says where they were forced to work the youngest was just 9 years old. the youngest was just 9 old. Sex trafficking among children remains one of the most prevalent, violent and unconscionable crimes in this country. The sting was carried out in 76 cities. The FBI described the suspects as pimps and charged them withholding children against their will for prostitution. The Egyptian army has warned supporters of ousted president Mohamed Morsi to stay clear of military areas during protests planned for later today. Morsi supporters say they want a million people to turn out against what they say is a military-backed coup. Philip Williams reports from Cairo. In the oppressive summer heat, supporters of ousted Mohamed Morsi stand their ground. The police are hooligans they chant, everyone here is preparing for an expected assault. TRANSLATION: We will stay here until the legitimate president returns. We will not leave unless our president is free and all of his rights are restored. bomb us to make us leave. Troops stationed in the capital and beyond are awaiting their orders, everyone watching for the next move. The tension building on both sides. EU foreign affairs chief Catherine Ashton met the interim president and the Foreign Minister in Cairo trying to calm a volatile situation, but a spokesman for the president made it clear this is an Egyptian problem to be solved internally. Away from the protest, the city looks normal, but the tranquillity of the Nile belies a nation in turmoil. The Muslim Brotherhood has called for a massive show of force later today. They want a million people in the streets and time is running out for a country short on tolerance and democracy. Everyone's hoping with this brief respite that some lasting peace could be negotiated, but given the gulf between the two sides, that's probably wishful thinking. The Syrian Government says that a key district in the city of Hom s, considered the heart of the country's uprising, has now fallen under their control. The rebel fighters claim they've only withdrawn to prepare for another assault. Since Monday, Syrian State Television has been beaming live pictures of its reporters from Hom s. This, they say is a big victory for them. Homs has been a key background in the war. At one point it was claimed that rebels controlled the entire city. But now Assad forces have managed to enter and are taking control of this strategic area in the centre of the city which disrupts the rebel's ability to communicate and travel between rebel-held areas. TRANSLATION: Thanks to Allah we have added another victory on the terrorists and starting from this morning, our armed forces with the help of the national Defence Forces have totally cleared the district. The rebels refute the claim saying they're retreating in preparation for further battle. Homs further battle. Speaking from
Homs as shells rain down around him, one activist journalist said... TRANSLATION: The use of heavy ar tillity alongside violent clashes has resulted in a tactical withdrawal. The regime army controls 85% of the district. The fighting has been ongoing for a month now. Today the clashes and shelling are really heavy. Most of this area has been pounded into rebel. Any buildings that the rebels could use to hide in have been destroyed. The city's seen as a symbol in the uprising against Bashar al-Assad and links Damascus to the crucial coastline. The battle for the city is symbolic as well as tactical with both sides wanting and willing to shed more blood for victory and control. Pope Francis says it's not his place to judge homosexuals and that gay people should be integrated into society. He's also reaching out to women saying they should be given a bigger role in the church. The Pope made the comments in a frank and open discussion with journalists as he flew back to Rome from Brazil. When the Pope left Rio, 2 million turned out to see him off with an extraordinary combination of charisma and humility, Pope Francis won the hearts of this sea of humanity. At 30,000 feet, a more intimate conversation. The 76-year-old Pope stood for almost an hour and a half answering every question put to him by journalists. Asked about a
homosexual lobby in journalists. Asked about homosexual lobby in the Vatican, Pope Francis said that although lobbying was bad, a person should not be judged on their person should not their sexual orientation. If a person is gay and seeks God, person is gay and seeks God, he said, and has goodwill, who am I to judge him? The Pope did say active homosexuality was sinful, but this was a markedly more conciliatory tone than his predecessor's and one that's delighted gay Catholics. I think it's a step in the right direction. I don't think it's quite enough. Because the Catholic Church is seen quite negatively externally and internally, Catholics, gay Catholics choose either to leave the Catholic Church entirely or to move to another denomination which may be more accepting and liberal. Pope Francis is simple and direct manner has touched a chord among Roman Catholics. He's refused to live in the papal apartment and has shunned robes and is ferried around in a Ford Focus. He washed the feed of two women, including a Muslim at a young offender's centre. It's not the role of the Pope to construct church law on the spur of the moment and everything Pope Francis has said falls well short of changing official Catholic doctrine. But in the way he interprets the teaching of the church, the Pope has enormous power, and clearly the radical change of style under Pope Francis has captured the imagination of Catholics in Britain just as it has in Brazil. The Pope's position is very powerful, because he's so prominent he can be easily seen and the way he leads the church is by very personal example. Back home this evening, Pope Francis placed a momento of his trip on the altar of the church in Rome. He understands the power of gesture and is ready to use it. Looking at Australia's place on the global stage is part of our preelection policy discussions. Michael Wesley from the says
Australian National University says Australia needs more than a temporary seat on the UN Refugee Convention Security Council to become a respected nation in the international community. It's not seats, it's not positions that get you a reputation as an active and imaginative player on the world stage. It is the way you comport yourself, it is the policy that you try to advance, it is the problems you try and resolve. Problems that go beyond your immediate domestic interest, that go to the stability and peace of the region and, in fact, the world. Back in the 1980s, there was an ongoing war in Cambodia. It had Vietnamese troops in Cambodia opposed by guerrilla fighters, opposed by China and a range of South-East Asian countries. It was a real impasse and Australia even though it had no direct interest in the dispute realised that this was a problem for regional stability, this was a problem for regional prosperity and we got involved and played a pivotal role in bringing about a solution there. Big parallels to what's going on in the South China Sea at the moment. This is a real impasse. We've got some countries in South-East Asia bitterly opposed to China. There have been military clashes over this. The Americans have got involved very much in support of some of its South-East Asian allies. The Association of South-East Asian Nations is split over this issue. While Australia doesn't have a direct interest, we have to remember that 54% of our trade sails through the South China Sea and this is a problem that could very well blow up into larger scale hostilities. This is a problem that affects the peace and stability of the region and I think Australia should be a lot more imaginative and a lot more active in trying to bring about some sort of progress on the South China some sort of South China Sea dispute. That was South China Sea dispute. was Professor Michael Wesley
from South China Sea dispute. That
was from the Australian National University. Now we have all the sport news, and more the on the the sport news, and on the ASADA investigation into Cronulla? Former Cronulla player Isaac Luke is pursuing legal action against the club revealing he was told by the Sharks' doctor he might have died as a result of the substance he was given at the club. Gordon is seeking compensation after suffering a mysterious blood-thinning disorder that left him with severe bruising from the ankle to the groin of one leg. Now the 26-year-old was informed by then club doctor David giveny in 2011 his blood was so thin he could have died if he received a knock to the head. Former Sharks' CEO Bruno Cullen says he doesn't agree with the decision made by the current board. Cullen resigned on the same day the Sharks reversed their decision over four sacked staff ers in the wake of the ASADA investigation. The directors made their decision without consulting him. He spoke to Jennifer Browning on the phone a short time ago. We're going to move on. Essendon assistant coach Mark Thompson has defended coach James Hird. He insists there's been misinformation surrounding the Bombers' drug information. Thompson told Fox Sports if players are found to have cheated then the coaching staff will also be shown the door. It's hard to talk about Mark, but from what I know... and I probably know more than a lot of people. I've read a lot of stuff and I know it's not true. I think the club's made mistakes, we'll admit that when the time comes, but as far as drug cheat, we certainly didn't deliberately go out to do any of that and why would we? Why would I start doing it now? would Dr Reid after 40 years start doing would Dr start doing it now? It's crap to think that start doing it now? It's to think that we would be part of that. In the end, the truth is going to be told about everything that's happened in this saga, the truth is going to come out, because this is too big now to go back. Meantime, the tribunal won't sit tonight after all the players charged during Round 18 submitted early guilty pleas. Geelong will be without James Podsiadly for Friday night's clash against North after he accepted a 1-match ban for striking while five Fremantle players were fined for instigating the pre-match scrap against Adelaide. Scott Thompson and Burnie Vince from the Crows copped $1200 fines for getting involved in the melee. Elsewhere, Hawthorn coach Alastair Clarkson has apologised to two Port Melbourne players that he had a verbal altercation with further the quarter-time break in games at the weekend. Both players have accepted his apology. The club has replied to a letter from AFL Victoria taking responsibility for the incident and expressing Clarkson's regret. Australia's Christian Sprenger has gained revenge for his defeat in the last year's Olympic Games final there by winning the men's 100m breaststroke gold at the Swimming World Championships. South Africa's Olympic champion Cameron van derberg came second this time round. Sprenger clocked 58.79 seconds. Australian cricket coach Darren Lehmann won't confirm whether David Warner will be recalled to the Test team for Old Trafford. The Australians drew their 3-day tour match. Warner scored 100 while playing for Australia A last week, but Lehmann is refusing to drop any selection hints. He's not a certainty, no. He got 193 and played well and did exactly what he wanted him to. We want blokes to make 100s and he's ticked that box. That's a good thing. Speaking of cricket, the details of the 2015 cricket World Cup have been unveiled in Melbourne this morning. The MCG will host the final. The event is being jointly hosted by Australia and New Zealand and was one of the most viewed international sports events in the world. About a million people are expected to watch the event which will see 49 matches played over 44 days in February and March. That's the latest in sport. I notice that final's going to be two weeks after the Melbourne Grand Prix and the Victorian Government is hoping people will stick around for both. It's Melbourne, Melbourne, Melbourne. They're winning the tug of war, if there is one. Let's check tomorrow's weather now with Paul Higgins. A pressure trough over NSW into A southern Queensland is going A pressure trough over NSW southern Queensland is going to
trigger more unseasonably thundery showers this afternoon and a cold front bringing clearing showers to Victoria and Tasmania, and Tasmania, plus this colder south-westerly wind. Onshore winds for Queensland's East Coast, so showers are possible through the afternoon. A front and trough are going to brush by the south-west and bring a few coastal showers to WA. Tomorrow, drier air means showers along the Queensland coast will clear, but there will be showers for the NSW north coast and once again in the south-west. Today a shower or two for Perth.

Block The top stories on ABC News - the Federal Government

The Opposition has announced plans to build a tent city for up to 2,000 asylum seekers on the Pacific island if it wins office. Under the 5-year plan the island could also host a village for people granted refugee status. Police are appealing for public information after two fatal shootings in Sydney overnight. Bassil Hijazi died minutes after he was shot multiple times in a carpark at Bexley in the city's south. A 35-year-old man was shot dead in the neighbouring suburb of Earlwood a short time later. A retired Sydney priest has been stripped of his right to carry out any priestly activities amid allegations he sexually abused a boy at one of Scotland's most prestigious Catholic boarding schools. A BBC investigation into the Fort Augustus Abbey School outlines the allegation student who says he was abused student who says he by Father Denis Alexander Chrysostom in 1977. The Middle East peace process has resumed for the first time in 3 years. Israel's chief negotiator sat next to her Palestinian counterpart in dinner at Washington as they broke the traditional Muslim Ramadan day of fasting. US Secretary of State also attended the dinner. Papua New Guinea Prime Minister Peter O'Neill says Australia will pick up the full cost of processing and resettling asylum seekers in his country. Earlier, the Attorney-General Mark Dreyfus had said those costs were being negotiated. Work is getting under way to expand the detention centre on Manus Island. It will eventually cater for up to 3,000 asylum seekers. The first group is scheduled to arrive there by the end of the week. The surge in asylum seeker boats has triggered lively debate about economic migrants, but while these groups are from developing countries, other migrants seeking a better life have been turning up in greater numbers and their arrival has attracted much less scrutiny. Tom Mackowicz is exploring his new home city of Melbourne. I'm settling down in Australia quite nicely. I really enjoy how laidback everybody is. 8 months ago, the office worker arrived from the United Kingdom, with his partner seeking work, and there's a good chance he'll befriend a few compatriots. Australia is a very favoured destination at present for international migrants. The Australian Bureau of Statistics tracks movements of visitors planning to stay for more than a year. Last year, citizens from China, the United Kingdom, New Zealand, India and Ireland topped the list supplying about 266,000 arrivals between them. Between 2009 and 2012 around 22,000 more New Zealanders crossed the ditch, and there were big increases from Ireland and the nuke. The UK is trying to climb back from a recession, so it's not really all that surprising and also it's sunny and British people obviously like the sun, because they don't get it much. The pathway to permanent residence now is not applying somewhere offshore and coming to Australia, it's coming to Australia first on a temporary visa, working in Australia, linking with an employer and then getting your permanent residence. But elsewhere, enthusiasm is waning. In the 3 years to 2012 there was a drop-off of more than 5,000 arrivals from China. The decline's much sharper for India. The high Australian dollar has bumped up student fees and changes to the criteria for the Skilled Migration Program have also proven a turn-off. That gateway to permanent residence in Australia was shut in February 2010 and that's why the Indian movement has dropped off quite considerably. Australian citizens are playing their part in attracting new residents in overseas. About 45,000 people obtained visas as spouses and fiances in the 2011-12 financial year. Peace talks between Israel and the Palestinians are under way in Washington for the first time in three years. The US President has welcomed the new round of negotiations, but warns there's hard work and hard choices ahead. Lisa Millar reports. Three years after the last attempt ground to a halt, another bid for peace. I know negotiations are going to be tough, but I also know the consequences of not trying could be worse. This time, Australian-educated Martin Indyk will take the lead. He understands that Israeli-Palestinian peace will not come easily and not happen overnight, but he also understands there is now a path forward and we must follow that path with urgency. It is a daunting and humbling challenge, but one I can't desist from. He's been given a timeline of 9 months with most of the meetings expected to take place in the region. Israel's agreement to release more than 100 Palestinian prisoners helped get the talks this far, but on the ground there's little hope they'll go much further. TRANSLATION: Since 1967 till now we had too many talks that reached to no point. We reached a point that we begged the Jews to go to pray. It's about time we have these talks. Unfortunately, I don't believe anything good will come out of it. President Obama has welcomed the fact the talks are under way, but cautioned that hard work and hard choices lie ahead. No-one's under any illusions. They've all witnessed the disappointments of the past. The US team, though, is convinced it is possible with two States side-by-side existing in peace. The Woolworths they could face court action The ACCC has warned Coles and court action over their Woolworths they could court action over their petrol shopper dockets. The consumer watchdog says the ever-increasing petrol discounts being offered could be harming competition. Following an 18-month investigation into the scheme, chairman Rod Sims says hebs over time the discounts could actually cause price hikes. I think if people want to offer discounts they should offer them in their own field of endeavour. What we're about is protecting competitive processes. If these shopper dockets continue at these levels it's going to be very hard for other players to compete and we may end up with just two companies in the country selling petrol which is not in your interest. It's also the fact that if... potentially it could be the case that if you're getting shopper dockets out there, that's where the price conscious people will go and it may have an effect on base level of petrol prices as well. It may not be as much gain as you think. REPORTER: How does it effect base level fuel prices? At the moment, if you didn't have shopper dockets, companies would have to compete on price. When you do have shopper dockets that's where the price conscious people go. For other consumers they might not compete as much on price. That's something we have to look at. Is there an appropriate level of discounts that supermarkets could offer? We're in the middle of the investigation, I'm not getting into what the precise level is. Suffice to say, when the shopper dockets went to 8 cents over 5 months, that's when it was clear that that sort of behaviour for that length of time is going to make it very hard for companies that aren't getting their fuel sales subsidised by supermarkets are going to struggle to compete. We might take a look at business news now, Alicia Barry joins us and the Australian dollar is falling after a speech by RBA governor Glenn Stevens. The Reserve Bank governor Glenn Stevens says the bank has room to cut interest rates next week after benign inflation figures cleared the way. Speaking in Sydney in the last hour, Glenn Stevens said it would be no surprise to see the Australian dollar fall further. He pointed out the mining boom has come to an end and the downward slide or fall could be quite big. Financial markets pricing in an 85% pricing in an 85% chance of an interest rate cut next Tuesday, pricing in an 85% chance of an up from around interest rate cut next up from around the 70% chance up from they up from around the 70% they had priced in this morning. As a result of the comments, the Australian dollar has slipped more than 1% against the greenback. It was against the greenback. It under pressure because of weak building approvals.

Investors are digesting that speech from RBA governor Glenn Stevens, but it hasn't moved the market too much.

An unexpected drop in the number of homes approved for construction in June. The Bureau of Statistics says the number of dwellings approved has fallen for the second month in a row, this time by 6.9% on a seasonally adjusted basis. Economists had expected a rise of 2%. The biggest drop was in Victoria. The total value of new home approvals shrank by nearly 11% in the month. To company news now, and Woolworths has seen a rise in its full-year sales, but says fuel discounting has hurt earnings. Revenue from fuel sales dropped 2.3% for the year compared to the year before. Yesterday, the competition watchdog announced an investigation into fuel promotions by Coles and Woolworths. Across all businesses including food, liquor, hotels and discount department stores, Woolworths says sales were up 4.8% year. To the market reaction, and shares in Woolworths initially fell 3% and initially fell 3% on that news, now down around initially fell 3% on that now down around 2%. Wesfarmers, the owner of Coles, isn't down as much, just 1.3%. MetCash, which looks after IGA supermarkets has dropped about 4%.

A new report has found mining companies could reduce cost cutting and shedding workers if they focussed on lifting productivity. Newport Consulting interviewed 60 mining leaders and found they're now focusing on reducing costs and shedding jobs as well as cancelling new projects to offset the fall in commodity prices. The report says almost all coal mines on the East Coast of Australia are losing money. But it says the miners can improve their outlook by lifting productivity and innovation. Turning overseas, and conditions at an Apple supplier are back in the spotlight. China labour watch claims employees at three factories run by Pegatron Corporation averaged more than 65 hours a week. Many of them were under 18. It also alleges there's been safety and environmental violations. Apple says it's committed to providing safe and fair working conditions and has conducted 15 audits at Pegatron Corporation facilities since 2007. And that is the latest from the business desk for now, but we'll keep listening to Glenn Stevens question and answer session and see what that does to the market and dollar. Italy's worst road accident for decades has now claimed 39 lives. A holiday coach carrying 50 carrying 50 passengers
including many children plunged off a via duct east of Naples into a ravine. Initial reports suggest it was travelling at speed when it hit several cars. Way up there on the edge of the highway, the passengers will have felt their bus launch into mid-air. It crashed down through the trees and pounded into the earth 100 feet below. In the mangled mess of metal, reminders of those on board. Among them, families with children. The safety barrier on the highway's edge had failed to keep them safe. TRANSLATION: I would think the barriers on the bridges and the via ducts should prevent this kind of accident, the kind of accident, but it seems

the barrier gave way. the impact was so strong even the barrier gave way. The bus had been badly out of control. It didn't had been badly out It didn't break as it approached It approached slow-moving traffic and rammed through a and rammed through cars before it careered cars before it careered off the road. TRANSLATION: All of road. sudden we heard road. TRANSLATION: All sudden we from behind us. Then we were crashed into and we didn't even see the coach at all. Rescue crews worked through the night searching for survivors, tending to the injured and gathering up the many dead. TRANSLATION: We live very close to the crash site. We heard a huge boom and we ran. We took the children out. All you could hear was children shouting. We called the police and waited for them. Since the guard rail was hanging and we were afraid it would fall on us. In a make-shift mortgage in a nearby town, relatives have been coming to try to identify the dead and as the day drew to a close, they prayed for those who they had lost. There is shock and grief here, but questions are also being asked. What caused this carnage? Was there a failure of the bus's brakes perhaps, or was the driver to blame? He was among those who died in the wreckage and the actions he took in the last moments of his life will be closely scrutinised in an investigation that's only just begun. Rescue workers at the site of a train crash in Switzerland have found the body of one of the drivers. At least 40 people were injured, five seriously when two trains collided about 50 kilometres south-west of the capital. It's the third crash in Europe in less than a week. 79 people died after a train derailed in Spain while 38 were killed when their bus plunged off that floiover in Italy. Egypt's political divisions are by now well documented with supporters of deposed president Mohamed Morsi on one side and those backing the army on the other. But what about those who in the middle? This report from Alzheimer's looks at the plight in the middle? This report of Egyptians struggling -- of Egyptians Al-Jazeera looks at the plight of Egyptians struggling to have voices heard. One face stares down from almost tent wall or lamp post. To all appearances, this is Muslim Brotherhood territory and Mohamed Morsi is their man. But appearances can be deceptive. By no means is everyone here a Brotherhood supporter. These two men insist they're just Egyptian Muslims who want the army out of politics. We are their real foundation that justice will rule this country. If there is a foundation that justice will rule this country, lots of people like me who are not Muslim Brotherhood and not seculars we are Egyptians and after building and putting foundation for justice. I'm a normal person living outside Egypt for a long time and I have seen the democracy how it works. I've seen the good life how it works and I feel very bad about my people that they live in such a mess. The two men may not be Morsi supporters, but they are sympathic to political Islam. That's not true of all who are opposed to military rule here, though. The third square is a small but growing protest movement. At their rallies they chant against what they call religious Fascism, the army and remnants of the mu bar ek era regime. This activist and blogger holds similar views. I hate Morsi. I hate what he's doing, his organisation and what they're trying to do to the country, but the arm y also, we tried them after January, it resulted in a lot of massacres and military tribunals, so we're between a rock and a hard place. The Egyptian street can seem totally polarised at the moment. Either pro-Mohamed Morsi or against. But the truth is there are many people with views in the middle and they want their voices heard, too. The Chinese army is continuing a public relations drive to counterclaims of secrecy. During its annual military open day, foreign media was given access to an air defence brigade in a military region that includes the province of Xinjiang. Convoy after convoy of trucks rolled into the city. Behind them antiaircraft artillery, home-grown technology proudly on display. time, the People's Liberation Army has opened its 47th Air Brigade to foreign media. Brigade to foreign media. It operates in a military region that includes the province of Xinjiang. Ept to give the foreign media a chance to visit us in an open, transparent way so the world can have a better understanding of the People's Liberation Army. The young Chinese soldiers have been practicing for a year. In times of war they are responsible for air defence in north-western China. TRANSLATION: This is locally made and we're looking forward to having more modern equipment, but if there's war it's not just about your weapons, it also depends on the integration between soldiers and their weapons. China's military is modernising rapidly, but this is a military that hasn't been tested in decades and the P LA has consistently played down worries about its budget and increasing assertiveness. The man in charge of this brigade stressed that China seeks nothing but peace. TRANSLATION: China does have territorial dispute with neighbouring countries, but both the government and military are quite restrained in dealing with such disputes. China's keen to show its military is open. This media exercise comes just a few months after it released details of its military structure for the first time in a defence white paper. Social networking site Twitter has responded to calls demanding it take action abuse. It started when a woman campaigning abuse. It started when a campaigning to get Jane Austen featured on bank campaigning to get Jane featured on bank notes received featured dozens of threatening tweets. Twitter says dozens of Twitter says it's looking at introducing a button for reporting such abuse. The BBC's Reeta Chakrabarti reports. How far should a social network police its users when those users post offensive
and perhaps criminal content? That's the question now facing Twitter after a wave of threats and misogyny hit two high-profile women. Caroline in the red dress, campaigned to get Jane Austen on the newly-designed £10 note. She was subject to 50 abusive tweets an hour for 12 hours. A man was yesterday arrested in connection with the threats. Now the abuse has found a new focus, MP Stella Creasy who supported Ms Peres and has been on the receiving end of threats threatening to rape her outside her home this evening. Unfortunately, I have been threatened in this same way in the last 24 hours again by a number of similar characters. They set up different accounts so we've been reporting that to the police, as well. She wants Twitter to review systems for reporting abuse and today the company responded. Twitter says individual tweets can be reported for abuse on its latest iPhone app using a button here, but the feature doesn't yet exist on other platforms. It also says it will suspend accounts that once reported are found to be in breach of rules. But clamping down on offensive material is hard. It's extremely hard to regulate or police the Internet in general, because many platforms we're dealing with now are based outside the UK in the US. It's hard to say which law will apply. A campaign that started with Jane Austen has resulted in a storm about the limits of free expression. Twitter faces a day's boycott next month if it fails to take further action. A parliamentary inquiry has confirmed what many have long suspected. Local shoppers are being slugged more for tech products. The committee has spent the last year investigating what's become known as the Australia tax. Technology correspondent Jake Sturmer reports. When AC/DC released songs on Isatu Yokie tunes a matter of months ago, the music was finally available digitally to fans everywhere. It helped keep Apple and music publishers in the back, but consumer group 'Choice' says Australian movie lovers were in the red paying more for the songs than US fans and that's not music to the ears of the Federal House communications Committee. I'm a big fan of the album. We want to make sure that people can get fair, Australian consumers just get a fair go. The report revealed explosive differences. Adobe charges Australian consumers an average 42% more for products than in the US. Microsoft products are 66% more expensive, Apple hardware is closer to the US, but there's still a 67% mark-up on Isatu Yokie tunes downloads. -- i Tunes downloads. It's a tricky issue extent, if I'm a company in tricky issue there. To some extent, if I'm a company in say
the United States extent, if I'm a company the United States and I want to
price extent, if I'm a company in say
the United States price at a certain level in my home market and home market and a different level in Australia and I own the goods, they're my goods, I can do it so that's not against the law. Trying to break through the restrictions on on-line stores is a legal grey area. The inquiry wants consumers taught how to get around those geo-blocks, a recommendation the Government is considering. People dying of melanoma are being offered new hope. The drugs will be available on the Pharmaceutical Benefits Scheme from today. Obviously we rolled the wrong vision there. Continuing with that report on the new melanoma drug, its inclusion on the Pharmaceutical Benefits Scheme follows a long campaign by sufferers. More than 12,000 Australians are diagnosed with melanoma each year. For me personally, it's the possibility of adding time to my life. I'm due to have my fourth dose today which is the last in the cycle, so most important to me is to have time with my family. Yeah, happy days from here on up, with my family. Yeah, days from here on up, I hope. I live in an amazing community with amazing friends and family. I live in an amazing community family. They rallied together and got the job done within just shy of four weeks. They had it all organised, a huge fundraiser and they raised the money and it was an amazing money. It's between 14-18 weeks to start working. That's about October for me and if the scan shows up that the drug is working, I believe I just will be monitored then to see when it gets worse again and I can have a repeat four doses again at $36.10. I'm feeling good, tired and lethargic, but if that's as bad as it gets I can deal with it. Melanoma patient speaking there. Returning to thaer ostory we touched on briefly one of the UK's major supermarket chains are threatening to stop selling lads magazines featuring topless and bikini-clad women. The cooperative group says unless the magazines are supplied in clear opaque bags they'll take them off the shelf. The heat is on and the publishers of lads mags are making the most of it. Adult titles like these are available only on the top shelf but the co-operative group says they'll be removed from their 4,000 stores completely if the publishers don't cover them up in sealed modesty bags. Our members and customers have raised concerns that when they go into our stores there are don't
certain type of covers that I don't think are appropriate to be on display where children are. Not all customers agree the measure is necessary. We're going live to Chatswood now in Sydney's north where Shadow Treasurer Joe Hockey is speaking to the media. Shadow from the salary packaging association. Here is a business that has been directly affected by Kevin Rudd's on the run policy announcement in relation to changes to fringe benefits tax. The fact of the matter is that if the Government can get one single decisions wrong, one of the few decisions it's actually made in the last few weeks, imagine what it's going to come out with in its economic statement over the next few days. There will be policy on the run. There is no consultation if people affected by the policies that are going to be announced over the next few days. Otherwise I'm sure we would have heard about it. The Government is trying to use the cover of ICAC to get out an economic statement which shows yet again their economic incompetence and the fact they can't be believed when it comes to their numbers. As each day passes, the impact of the FBT decision is becoming more significant and I'm going to ask Ian to say a bit about how the decision is affected. I'm going to ask Lee to talk about the meeting they had with the Government today. very simple MRI in the last week or so we've lost about 100 fleet orders. We generally retail about 140 fleet orders a month, so it's quite significant the loss to our business. We met the assistant Treasurer assistant Treasurer with a delegation from the bodies. The meeting delegation from cordial, it was to engage cordial, it was to engage with him and his office him and his office about the plight of the industry today. We reiterated our position that the industry remains in crisis. There are job losses occurring across the wider automotive industry sector. We engage with Chris Bowen on this matter and we are deeply concerned about the long-term wider macroeconomic impact this will have on the industry at So as you can see that's the
same old Labor, whether it is policy or whether it's Kevin Rudd, it is the same old Labor. And it's the same old Labor that is behind the corruption inquiry that has occurred in NSW omp the last few months. You see, Labor is rotten to the core and when they are rotten to the core they can't make policies that are in the national interest, Labor only ever makes policies in their own interest. Everything is about political spin from Labor, and so much of what we've heard at ICAC over the last few months is a reflection on the whole of Labor. Don't forget, it was the NSW Labor Party machine that put Kevin Rudd into the prime ministership and it was the NSW Labor Party machine that brought him down and it was NSW Labor that put him back in. So Kevin Rudd is a NSW Labor through and through and we look forward to hearing what ICAC has to say about the real facts behind the state of Labor. Questions?

Of course. As the Governor of the Reserve Bank said today, business confidence is affected by ad hoc decision making and unpredictable decisions. And unquestionably the fact that the instability coming out of Canberra is having a real impact on the Australian economy shouldn't surprise anyone. It's so obvious. Despite the fact that the Reserve Bank has interest rates at record lows, there is a general lack of confidence in Australia about the future and unless Kevin Rudd actually calls the election and unless there's a change of Government it's not going to change. There will continue to be this same sort of incompetent ad hoc decision making which undermines business and consumer confidence. Lit continue. We're standing in a business that lost 100 car sales in the last week alone simply because of a Government decision from Kevin Rudd. Now, these are the things, this is where the rubber hits the road, out here on the ground it affect people's lives, their job, their job security, it affects confidence, so please