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Tonight - Greek debt fears.

France and Germany move to calm jittery European marks. We all

know that Greece is going to

default. Hundreds dead and

thousands homeless in flood

of Melbourne underworld figure devastated Pakistan. Explosive

Carl Williams. And keeping

Torres Strait. alive the rich culture of the

Good evening. Craig Allen

with ABC News. There are row nud fears that Greece is

careering towards a chaotic

debt default as Europe

struggles to contain its crippling financial crisis.

Germany and France have pledged

their full support for Greece.

The comments were aimed at calming world stock markets that have seen turbulent

fears about Greece's finances.

Once again, Greece is the word

and the worry. The French President Nicolas Sarkozy

joined a telephone hook-up with

German Chancellor Merkel mesh

and the Greek Prime Minister

George Papandreou. At issue,

default or no default. The

verdict - the French and German leaders agreed Greece should

stay in the Eurozone, but must

stick to its harsh austerity

program. In the European

Parliament, a gloomy session

was told time and again just how serious how serious the crisis has

become. We are confronted with

the most serious challenge of a generation. It's a fight for what Europe what Europe represents in the

world. This is a fight for

European integration itself. The commission

President urged the Eurozone

members to issue joint bonds

allowing collective borrowing.

But for some euro sceptics it's

all too late. The European

people don't believe in what

you're saying. I don't really

think even you now believe in what you're saying. Because we

all know that Greece is going

to default. Certainly, the

markets have been preparing for

just that scenario. Two French banks had their credit ratings

downgraded over their exposure

to Greek debt, the discussion

now is whether a so-called

orderly default could stop the

rot. But calming very nervous

world markets over the euro requires deft rather than daft political leadership, and so

far, that hasn't been

inspiring. If Germany does not

bail Greece out, we need a back-up plan horribly wrong. And I don't get

a sense at all we have any

back-up plan. And even if

Greece can be stabilised, the

end question remains, is this the

end of the crisis? Not many

think it will be.

its Italy is moving ahead with

its own austerity program

the streets. Hundreds of despite fierce opposition on

demonstrators clashed with police outside Parliament as

MPs approved a package of tax

hikes and spending cuts.

unfairly target the poor, but

supporters insist it's the only

way Italy can meet its obligations. Silvio

the package will reduce Italy's Berlusconi's government hopes

deficit by more than $70 deficit by

billion over the next three

years. More than 200 people

have died in flooding across

southern Pakistan. The floods have swamped Sindh province.

Shops and houses are submerged

Authorities in Sindh say the a full 5m below water.

scale of the disaster in their

province is even worse than

last year's devastating

floods. We were still coping

with last year that's flood.

The army has rescued 13,000

people by boats so far. Aid

agencies say urgent help is

needed to provide relief

supplies for more than 5

million people affected by the flooding. The ABC understands

that an Army Reserve soldier has been killed The Sydney-based member of the International Stabilisation

Force was involved in a serious accident involving accident involving an

Australian military truck. East

fee more's President Jose Ramos

Horta says he is saddened by

the death. The Australian

Defence Force is yet to comment. The Community Services

are Minister and her directorate

tonight after yesterday's are under increasing pressure

revelation that five children

were placed in out-of-home care

in breach of the law.

ordered after the children were

placed with a welfare group

that wasn't accredited to house

them. Joy Burch says she only

learned about the possible breach late last week, but it's

now been revealed that her bureaucrats knew all along.

Yesterday the minister was seeking answers from her directorate. There appears to

be that all the processes are

there could've been a question

over one of the final approvals. That's what I'm

seeking clarity on. And today,

the picture seems clearer. They were residential care. But some

staff in the directorate knew

that all along and had arranged

for a larger organisation to

supervise the placement. This was was an emergency placement, and

first and foremost was the need

to respond to the needs and care of these children. So we

put in place in these quite extreme circumstances arrangements

arrangements that we could. It

was a bending of the rules in

desperate times but according

to the minister, done without her knowledge. I'm just

disappointed that a number of

pieces of information didn't

come my way, but having said

that, it's a large complex

directorate. They are acting on directorate. directorate. It is her

her behalf. I will not accept

the arguments of plausible deniability from this minister. A few weeks after

taking in the children the

organisation handed them back

dispute over to the directorate because of a

dispute over payment for the

cost of the care and it seems the issue of tardy reimbursements and invoice disputes with the government is not an isolated incident. I

back to the department and said know of

we will not take any more of your clients unless you start

paying us properly. I think

this is a big issue,

particularly for organisations that that don't have a Big Sur plus

to fall back on. They have to

pay their staff. Those children

do need shelter. It seems the

shortage of funding is as bad as the shortage of carers.

Monsignor David Cappo has

announced he will not take up

the position of chair of the federal Health Commission. It comes

after independent senator Nick

Xenophon used parliamentary

privilege on Tuesday to name an Adelaide Catholic priest over

alleged sexual abuse claims.

Senator Xenophon has criticised

Monsignor Cappo's handling of the

the allegations. I think it's important that the Federal

Government look into these

allegations as to whether the processes adopted by Monsignor

Cappo, by David Cappo were

adequate or not. In a statement, Monsignor Cappo says suggestion he didn't handle the

abuse claim with due diligence.

But the matter could distract

from his work with the commission. Tony commission. Tony Abbott's given his strongest indication yet he

won't help the Prime Minister

return to offshore process of

asylum seekers. The government

needs the coalition's support

to change migration laws, after

the High Court cast offshore

processing into limbo. But Mr

Abbott is signalling he will

insist on sending asylum

seekers to Nauru, seekers to Nauru, not

Malaysia. If he wants us to

support a policy, she'd better get her policy to-to-resemble what what we think is in the

national interest. When those boats start arriving, Tony

Abbott will be responsible

because he will not allow the

government to have the powers

needed to deal with the High

Court decision which turned the law on its head. Government

officials will brief Mr Abbott

on amendments tomorrow. The man accused of teenager could be back in

Australia within days. Paul

Peters has dropped his challenge to extradition

proceedings in the United

States. The 50 year eld

appeared in the courthouse where he agreed to

waive his right to an

extradition hearing. He wants

to get back there and rather

through all these procedure al

hurdles, he elected to waive those rights. New South Wales

debt tiffs will travel to Kentucky shortly Peters back. He faces charges

extortion, break and enter and kidnapping.

kidnapping. The Carl Williams murder trial has heard

explosive allegations that he set up a double murder on

behalf of a former Drug Squad detective. detective. In written

statements to police tendered

at the trial, Williams says

former detective Paul Dale paid

him a six-figure sum to arrange

the murder of Terence Hodson

seven years ago. He says he subsequently hired a killed Hodson and his wife.

For the first time the

alleged links between slain

underworld figure Carl Williams

and former Drug Squad detective

Paul Dale can be revealed. Statements made by Carl

Williams have been read out

during the trial of the man who

killed him. It all relates to a

separate killing, that of police informer Terence Hodson

whoa along with his wife

Christine were murdered in

their Kew home in their Kew home in 2004. Carl Williams told police he'd meet

with Paul Dale while wading

around swimming pools or

walking the streets to avoid

surveillance. He alleges during

one of those meetings one of those meetings the former detective asked him to

organise Hodson's killing

before Mr Hodson gave evidence

against Mr Dale in a burglary


The drug boss told police he

knew a fairly ruthless man was willing to kill, and the

hit was organised for $150,000.

Speaking to police, Carl

Williams appeared to have a cavalier attitude towards the


He said the murder of He said the murder of Chris

theen Hodson was not part of

the contract. The policeman

handling Carl Williams told the

court the statements were

crucial to solving the double

murder. Without the drug boss,

there was no case. Police told

the court at first the

convicted killer had been

reluctant to help, telling them they were dreaming of the maths through Johnson is accused of

murdering Carl Williams at

Barwon Prison last year. The

prosecution argues it was over

this information. Johnson is pleading self-defence.

There is a new push to provide acute care to patients

in their homes. A report has

found treating patients with infections

in hospital cuts costs by more

than 30% and while patients are

happier, hospital care in the

home also frees up beds and reduces waiting lists. Life is

as normal as it can be for Ian

and Sue McKay, despite the

59-year-old business analyst

needing daily acute care. I

can't see why I should be

taking a bed up in a hospital

when I can be at home in my own

bed. Diagnosed with an

infection in his McKay spent 10 days in

hospital. He was then given the option of staying there for six weeks to have a court of antiobiotics, or being treated

at home. We're getting all those services that gotten in a hospital anyway.

We're getting them at home.

And getting them for a third of the cost according to a new

report. We know it's not only

safe but the patients are

happier being treated at home

and now we know it's cheaper

too. It's a win, win, win. The

research compared the costs of

providing hospital and home

care for patients with six

In all cases the public hospital care costs were higher. The potential savings

are substantially. Certainly

it's an area which deserves further attention. But the

take-up of the program has limited except in Victoria. And

that's partly blamed on poor Medicare

Medicare rebates for doctors.

The Federal Government is now

being urged to make changes to

the Medicare benefits schedule

to increase the involvement of

GPs and specialists in the

service, taking the pressure

off hospitals. But the

government says it's a State responsibility. Ian McKay prepare fog go back to work,

and he's glad it's not straight

out of hospital. Definitely, I

would've been a different frame

of mind. I'm itching to go back

to work now. That could be in

less nan two weeks. The

cautious consumer has proved a

significant headwind for

department store Myer. Falling

sales saw profits for the year

to July down 3.5% to nearly

$163 million. Chief

been stagnant since July but

it's shaping up as another

tough year. The consumer is

still saving an enormous amount of money. They still obviously

have the opportunity to travel

overseas and buy product

overseas. There is a lot of

head winds working against us

from a consumer point of view.

Myer shares have dived 42% this

year but finished higher today.

In finance, one of Europe's

biggest banks has been hit by a

multibillion dollar trading

scandal. Switzerland's UBS bank

reported a rogue trader has

racked up some $2 billion

losses through unauthorised

trades in its investment banking operations. It means

the bank may post a loss in the third quarter. Back home, shareholders

some gains today as fears about

the European debt crisis eased

a little. Here's Alan Kohler. Yesterday global markets

reacted badly to the

announcement from Moody's that

it was downgrading two French banks.

banks. Today the markets turned

around and went higher because

it seemed that the world didn't come

come to an end because of the

opinion agency which it must be said

has some way to go to recover lost credibility. Tonight's the difference between what

happened in 2008 and what's

happening now. This one shows

the difference in the interbank lending rates for three months

and one day and it's basically

an indicator of liquidity stress. That is, the

willingness of banks to lend to

each other. It means that the

2008 crisis was all about liquidity. The banking system shut down because they couldn't get any cash and on that

measure it's not as

time. This one is an indicator

of solvency stress. It's of solvency stress. It's the cost of insuring against the

default of European banks. The

price of so-called credit default default swaps. The line rises

when investors are worried

about banks actually being

insolvent. This time the line

is much higher than it was in

2008. It means this crisis is

all about solvency not liquidity. In other words there

is plenty of cash about but the

banks might be broke. That's

finance. The good news is the

number of drownings

Australia's coast is well down.

The bad news is they're hugely overrepresented. 61 people

drowned in coastal waters over

the past year, down from 89 the

year before. 85% of those who

died were male. They think they're bulletproof. They take

a lot of risks that they

probably shouldn't take. They

tend not to like to swim at a

beach, sometimes they think

it's crowded, so they'll swim

away from where they know they will deaths were attributed to swimming but just less than

that to boating while one in 10

deaths happened while rock

fishing. When it fishing. When it comes to city living, it's not for the birds.

A new study looked at the

species that some consider a

perennial pest, the white ibis

and discovered those living in the city

the city are turning into a toxic breed and that's raising

questions about the im impacts

of urban life on wildlife. In

can't escape seeing one of

these. While many consider them

a pest, the native white ibis

is a good barometer of a city's health. It's health. It's for that reason a

team of scientists tested the

pollution levels in eggs found

in 11 city sites across the

east coast. And compare them to

those found in the natural environment

environment further inland.

They found a dirty diagnosis. The pollutant levels

in urban sites are much higher than those found in the than those found in the inland

sites. Seven to nine times

higher and not only that but

the eggs were smaller in size,

weight, even the eggshell was thinner. That too could have

problems for the problems for the birds'

fertility. Potentially lower reproductive success in urban versus inland areas. That may

be music to the ears of those who don't like this who don't like this unusual

looking bird but it's not just the ibis that could control. Other animals feed on

those, particularly things like

sea eagles. The higher up in

the food chain, the more the

concentration of these

pollutants. It's a worrying sign for the future of some

native species that like to

call the city home but it's a

bigger problem concern fts problem spreads inland and

country dwelling birds are

struck with a similar


After a long and troubled

voyage, a Catalina flying boat has landed

job now is to explain the whole

Qantas pilots played during

World War II and exposed the

rare and secret order of the

double sunrise missions. It's

taken two years, millions of

dollars and a dedicated team to get to this get to this moment. OK, coming

up. One of only six flying in

the world this 70-year-old aircraft suffered engine

failure and fuel shortages on

the journey from Spain to Australia. There were times when we thought it would never arrive. It will now become a

tribute to Qantas pilots who

operateed in World War II.

Between 1943 and 1945, Catalina

flying boats couriered pail and

VIPs from Western Australia to

Sri Lanka, through enemy

territory. Their role was

crucial to keeping links to

Australia's allies open. More

than 50 years later, retired

Qantas captain Rex climbs back into the cockpit. Nice to have you on

board. The 91-year-old is the

sole surviving pilot of the top

secret and dangerous

missions. We wore civilian

clothes at all times except when we were in actual operation. I had

operation. I had the pleasure

of receiving a white envelope

and being told to go and join

up. Qantas A-380 captain Ross Kelly says wartime pilots were working

hard on the 32 hour nonstop

flights. You don't really fly t

you wrestle it. The museum now

plans to restore the Catalina to

to its wartime colours. James O'Connor will return to Australia's starting

Australia's starting XV for Saturday's World Cup match

against Ireland. He replaces

injured winger Digby Ioane and

will assume the kicking duties

from Quade Cooper. Cooper has

been under fire over the last

24 hours for 24 hours for comments made

towards All Blacks skipper

Ritchie McCaw. James O'Connor's redemption is complete. Stoked. Can't wait to play against Ireland. He will join the

run-on side for Saturday's

clash against Ireland as the

Wallabies' lead goalkicker. No

surprise given his form against Italy last weekend. Inside

ball, James O'Connor, try time!

Has the 21-year-old learned

his lesson about sleep in? He is less likely to take

that jersey for granted in the

future. The bench will be

bolstered by the return from injury of winger Drew

Mitchell. I would prefer to be

lacing up the boots than the tie. Off-field, Quade Cooper

continues to draw publicity.

Apparently for all the wrong

reasons. New Zealanders haven't

forgiven him for his run-in

with All Blacks captain Ritchie

McCaw during the Tri-Nations.

Even former Wallabies captain

Nick Farr-Jones says lacks respect. No doubt it

could come back and bite you.

It won't be just him though. It will be the whole scad that

will be impacted by it. Someone

should tell boofheads like that

to pull their head to pull their head in. I don't

have any thoughts on the

matter. It's great to have

Quaid with us. He's totally

committed to the best interests

of the team. As for the boofhead tag

boofhead tag ... Just have a

look at him. (Laughter) But

Cooper insists he's feeling the

love. I rather look at the

positives and

make the final. But before

then, it's Ireland this

Saturday. Lleyton Hewitt and Roger

Federer will renew their

rivalry tomorrow on Day 1 of the Davis Cup World Group

play-off in Sydney.

It's been anything but smooth sailing for the Australian Davis Cup recent years. And it won't get easier with Roger

easier with Roger Federer making a rare appearance in Sydney to steer the Swiss ship. I give ourselves a really

good chance. It will be good chance. It will be a very

tough tie. They've got two

very, very good players. But so

have we. The Federer/Hewitt

match-up triggered memories of

the Australian's famous

fightback in the 2003 Davis Cup

semifinal. One of my greatest

wins ever. I still believe it

was one of the toughest losses

I've ever had as a player.

People might think Djokovic was

rough. That was nothing

compared to the Lleyton loss.

The Swiss ace has beaten Hewitt in the 15 of the 16 matches

they've played since. You never

get sick of wearing this jacket, that's for sure.

Standing on a court tomorrow

listening to the national

anthem will give you goosebumps. The laidback

Bernard Tomic gives the

impression he has never had a

goosebump in his life. I am

bursting inside will open the tie against

Stanislas Warwinka. He is great

player. I think he will be

really good and he will be

tough tomorrow. Especially on

grass. Australian tennis is on

a high after Sam Stosur's win at the US Open at the US Open and if Pat

Rafter's men can overcome the

Swiss and return to the world

group, it would cap off a

watershed week.

Through the ages, art has

been used to preserve and save cultures. In the National Museum

Museum in Canberra is continuing that tradition with

a new exhibition. It captures a

way of life that's fast disappearing,

music and art of the islands

that stretch between Cape York

and PNG. It's a way of life

that's almost been lost. So keeping stories alive has become a matter of urgency. The

people that thank you see

represented in this exhibition

around you come from very

strong cultural backgrounds.

They're grounded within culture. They live within their

communities. They're informed

by the experiences of their

ancestors. The importance of

passing on these

thousand-year-old traditions is

highlighted through pieces capturing a history. People telling stories

from the Torres Strait is an

exhibition on the theme of

change and memory. For the Torres Strait Islanders who are featured in the exhibition it's about pivotal moments in their

lives. Music and art to a proud

maritime tradition T all tales

a tell of the rich culture of Australia's northern frontier. The exhibition

allows me to walk my life's

journey again. To actually also

have a reflection of where I

come from. To where I am today.

And where tomorrow. We're very modern

people. We're contemporary

people. And we're Australian

citizens to. Our stories are actually your stories. They're

part of what we are as Australians. This focus on the

contemporary is portrayed

through portraiture, with the

photographs accompanied by

personal recollections. It was

about keeping history and the

opportunity to actually get

their stories down, which is a

common theme through most Indigenous communities at the

moment. Past, present and future, lives on.

Now with a look at today's weather, here's Mark

Carmody. Thanks, Craig. Good evening. The ranges were alive

to the sound of music today and

the song they were singing was

all about what a nice day it

was and that there's more of the same on the way.

Cloud is streaming across

south west WA and is generating

widespread showers. Patchy

cloud over Tasmania is only

producing the odd spot here and there. With most of Australia

under the influence of a high-pressure system, to put smiles on most people's faces. Although

faces. Although a series of

cold fronts crossing WA and

Tasmania will be a sour note

for them. Craig, talking singing -

choirs and high notes - this weekend, the Austrian choir is

celebrating their 30 year

anniversary at their club with

a concert on Sunday and after previously, they were named

after this flower, you sing the

song, Eidelweiss. Thanks Mark.

Our top story tonight - there

are warnings the future of the

European Union is at stake as

Greece teeters on

bankruptcy. France and Germany

moved to calm nervous stock

markets by pledging their full

support for Greece. That's the

news for now. We'll leave you with the discovery of a new species of dolphin in

Melbourne's Port Phillip Bay.

Thanks for your company. Goodnight. Closed Captions by CSI

This Program Is Captioned Live. Welcome to 7:30, I'm

Leigh Sales. Tonight, how the

digital revolution is drastically changing the

media. The old view of

broadcast, television, radio

and print are no

relevant. Dorothy. Oh,

basil. And Judy Davis on the

challenge of bringing one of

Patrick White's greatest novels

to the Crean and what annoys

her about politicians. I just wish wish that the politicians would

have the courage to say what

they believed was right. & if

necessary walk away, just walk away from all the glory of

office. Those stories shortly but Opposition appearset to deny