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ABC News -

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Live.

Tonight - as Murdoch's BSkyB

ambitions crash and burn calls

for an inquiry here. I'm hugely

confident that there is confident that there is no

improper or unethical

behaviour. Green peace's dawn

raid on a GM wheat crop. It's not not safe. Our program in wheat is really focused around the

major global drivers of food security and food health. The

ACT's solar feed in scheme

closes to households again. And

Cadel Evans pins his Tour's

hope on his climbing skills. We'll wait until we get

out the truth there. to the mountains and we'll find

out the truth there. Good

evening, Craig Allen evening, Craig Allen with ABC

News. It was to have been the

jewel in his European crown but

from Rupert Murdoch has walked away

from his bid for outright

control of the highly lucrative

pay TV operator BSkyB. His hand

was forced by a furious

backlash to the phone hacking

scandal in the UK that's threatening the future of the

British Prime Minister has News Corporation brand. The

warned of a firestorm engulfing

politicians, police and the

media. Here's correspondent Philip

Williams. Just 10 days ago the

takeover of BSkyB seems a

formality. But the world has

changed and fast. In changed and fast. In the Parliament MPs made it clear

they didn't want a bar of

it. What has happened at this

company is disgraceful, it's

got to be addressed at every

level and they should stop thinking about mergers when

they've got to sort out the

mess they've created. And just

as the Parliament was about to debate a motion calling

News Corp to drop that's what they did. A

multibillion pound deal was

full control of BSkyB off. Rupert Murdoch's dream of

humiliatingly thwarted. This is

decent a victory for people, the good,

decent people of Britain

outraged by the betrayal of

trust by parts of our newspaper

industry. The news reached the

Prime Minister just as he was

talking to the family of murdered schoolgirl Milly

Dowler. It was the apparent

hacking of her phone that

started a chain of outrage that

culminated in that latest

drama. It also left David

Cameron open to attack over his

original decision to hire his

friend and u-Coulson who has been arrested over hacking

allegations. If it turned out

he lied, it won't be that he

shouldn't have been in government, he should be

prosecuted. Perhaps the most bruised the Rupert

Murdoch. This was a once in a

lifetime opportunity to acquire

100% of a business which has

extraordinarily good prospects,

which has a growth trajectory

which is well understood. Most of the 4,000 names have already been

retrieved by police haven't yet

been told they're on that list

and yet there are hundreds of thousands of more pages of

documents to be trawled

through. This is

with us for years to come. For

the first time the chairman and

CEO of News Limited in

Australia has spoken out about

the scandal that's engulfed the

Murdoch empire. John Hartigan

has told tonight's '7:30' he's

confident there's no improper

or unethical behaviour in here but that's not enough for Murdoch-controlled newsroom s

the Greens leader Bob Brown

who's called for an inquiry

who's called for an inquiry

into media ownership and regulation. News woes are are now truly

international and now the

chairman and CEO of News

Limited is reassuring

Australians they have nothing

to fear. I know the news to fear. I know the news rooms,

I know how cultures develops

and I'm hugely confident that

there is no improper or unethical behaviour in our news

rooms. But like many, the Prime

scandal Minister is reeling from the

scandal in the UK. Like I think most Australians, I've been pretty shocked and disgusted to

see the revelations that we've seen in the United Kingdom. And

she had this message to the Australian media. I think we

will have a long debate about

media ethics in this country

but if I could put it as

clearly as I can, I'd say to

you don't write crap. (Laughter) Can't be that hard. The Greens

hard. The Greens have called

for a full parliamentary

inquiry. Here in Australia

there's a sufficient there's a sufficient concern

about the potential unrolling

of similar events in this

country. The Prime Minister is open to that idea and News Corporation's woes in United States have also

intensified. A group of US intensified. A group of US institutional investors has

launched a lawsuit against the

company seeking hundreds of

millions of dollars in damages.

They've accused the directors of failing to investigate the

hacking claims and blatant

nepotism saying Rupert Murdoch has has treated the company like a

family candy jar. Police are investigating after protestors destroyed a field of investigating after Greenpeace

genetically modified wheat in

Canberra. The CSIRO site was

breached early in morning. The

activists went on to damage

around half a hectare of the

plants. The Government's

science agency says it's still

assessing how much the sabotage has set back their trials.

Under cover of darkness Greenpeace protestors broke into this CSIRO experimental

farm. Part of Australia's first outdoor trials the grain has

been modified to lower the

glycaemic index and increase

the fibre content but

Greenpeace is questioning the

secrecy of the experiment and

its safety. CSIRO haven't been

forthcoming to this point with

any information about their

corporate links to GM companies

like Monsanto or the health and

before testing risky GM wheat on humans. The peak science

agency has applied to conduct the first trials on the

if they are successful modified

bread could be on our shelves

by 2015. GM wheat has been

rejected by Russia, the EU,

even North meshl because it

contaminate our food isn't safe and it will

supply. Our program in wheat is

global drivers of food security really focused around the

and food health . The CSIRO

blow but say it's too early to admits today's sabotage

admits today's sabotage is a tell just blow but say

tell just how much of a setback

it is. Until we actually know

what the assessment comes out

at it's hard to say but, you know, if it sets it know, if it sets it back by a year then there's, you know,

significant amount of effort by

people who have been

involved. It's the tirs time

Greenpeace has destroyed GM

crops in Australia. The Ange -

action has angered some scientists and scientists and now politicians

have joined the debate. We

don't support criminal activity

but I think this point shows

GM crops. When we're looking at

the issues of food security, a

global food task going to

increase by 2050, when we're

looking at health issues we

need to make sure the research

is there and is there and that's what was being done and it was a

reprehensible act by these

people. Police and the national gene technology regulator are

are investigating the incident.

The Prime Minister has laid

bare her emotions during a

national address on the carbon

tax. Julia Gillard says

Australians want to know what

kind of person she is and she's tried

she holds back her feelings and

she understands why people

might see her as a woman of

steely determination. Chief political correspondent Mark

Simkin. Julia Gillard wants to

clear the air with a tax and

about herself. She told the

press Club Australians want to

know what kind of person she

is. I don't forget where I came

from, why I'm here or what I've

learned along the way. I don't

forget Unley High where I saw the kids at the back of the

room. The Prime Minister tried

to show the real, real

Julia. It doesn't come easy to

me to express the feelings I

have as I make those decisions.

I was the shy girl who studied,

who worked hard. Julia Gillard

says things like this don't

come easily. Her instinct is to

hold back and hang tough. If

that means people's image of me today is one of steely

determination I understand that

and I understand Minister returned to Canberra

after a tough 24 hours on the

carbon campaign trail. Why did

you lie to us? From that to

this at a community forum. How

can anyone trust you with this record because I don't think I

can anymore. And with the

resume that boasts failure

after failure Australians have

lost confidence in you and your

government. When is it OK for a

person holding high office to

lie? What I said before the

election, which has been the

subject of so much commentary understandably, what I before the election I can't understandably, what I said before the election I can't

unsay now. And that's the problem. Even some Labor MPs acknowledge Julia Gillard's

credibility's been damaged. As

one told the ABC, when one told the ABC, when it comes

to Julia people just aren't rational. Today's speech

suggests the m pr PM - Prime

Minister's well aware of the

public perseption. The ACT Government has shut its solar

feed in tariff scheme again

after a rush of sign ups. The

scheme reopened to smaller

generators this week but the

cap was reached within 2 days.

Kathleen Dyett reports the

decision has cast a shadow over

many solar plans. In a city

with as much sunlight as

Canberra there's no lack Canberra there's no lack of

bright ideas. Our set of

townhouse s has been looking at

a proposal for solar

electricity on the roof of one

of our shared car ports. Peter

Campbell set his sights on the

ACT solar feed in tariff. We've

put in an application as a just

in case to hopefully have our foot in

has slammed shut with the cap

already reached, the scheme has

closed. The new scheme kicked

in on Monday and we saw significant applications coming

forward, probably activity that we

we expected to come in over 6

to 12 months actually came in

in a couple of weeks. Those who

have recently applied or done

deals with solar installers may

be left out in the

cold. Potentially those people

will not be able to access the

feed in scheme. There is a net

scheme offered by ACTEW AGL and

that's still there for people.

The The Government's yet to

detail the latest sign ups

the rush is due to its school

solar programs. The Liberals

and Greens gave households the

chance to access the tariff at

a lower rate. The a lower rate. The Government says the result is chaos. We

had a number of aim, one of

them was to bring down the cost

of the scheme and we've succeeded in doing that. There

is some small positives for the

industry in so far as while it

only took two days orders it will take a lot only took two days to do the

longer than that for the

industry to actually do the

work. The Government says it will still honour contracts

signed before the scheme's first closure in June. India is

on high alert after 3 bomb

blasts ripped through the

financial capital Mumbai. At

least 17 people have died and

100 others have been injured.

No-one has claimed responsibility for the coordinated attacks. ABC correspondent

reports. As thousands of office

workers were heading home in

the evening rush hour, 3 bombs

shook Mumbai in 15 minutes. The first struck the famed jewellery market place Savry

Bazaar, then one tore through

the Opera House district and then a

then a third bomb went off in

the crowded Dadar neighbourhood

in central Mumbai. All the

injured have been evacuated to hospitals. The within minutes of each

other. Therefore we infer that

this was a coordinated attack

by terrorists. Police say

bombs appear to have been home

made. The most powerful blast

was near the Opera House in an

area known as a hub for diamond

traders. Witnesses said many of

the injured were missing

limbs. The entire city of

Mumbai has been put on high

alert. I would appeal to the

people of Mumbai and people

over the country to remain calm

and maintain peace. It's been

nearly 3 years since Mumbai was

under siege for days when gunmen attacked hotels and a train station killing 166

people. Despite all the

increase in security since then, terrorists have once

again been able to strike at

the heart of India's financial

capital. In the past India has

blamed Pakistan for failing to

crackdown on terrorists

involved in previous attacks.

Pakistan's Government immediately condemned these latest bombings and Government cautioned the

country not to speculate as to who's responsible this

time. But the meticulous

planning of these blasts has

left residents angry that authorities authorities haven't done enough

to protect them from this

terror. And to a developing

story now, the area around the

Australian Consulate in Bali

has been sealed off after a

suspicious package was found at

the front gate. Indonesian

police have been called in and the package

the package has been taken away for of Foreign Affairs and Trade

says it's still waiting to hear

what's inside the parcel. Two

Australian activists have just

a few hours to permission to stay in Israel

before they're deported. The

women were detained at Tel Aviv

airport after they revealed

plans to visit Gaza for a peace

event. They were released after winning a precedent-setting

court battle but now they've

got until tonight to get their paperwork in order. Middle East

correspondent Anne Barker reports from Tel Aviv. reports from Tel Aviv. Vivienne Porzsolt and Sylvia Hale were

on a protest mission to the

Palestinian territories but 4

hours after they arrived in

Israel they were arrested and thrown into thrown into detention. All we

asked is to visit Palestine and

we end up in detention for

almost 2 days. The pair were

among dozens of pro-Palestinian

activists who had originally

planned to sale a flotilla of

protest ships to try to break

the Israeli naval blockade in Gaza refused them permission Gaza but when

leave port they decided to fly

to Israel instead. How can two 69-year-old women whose

belongings have been searched, we've been searched, nothing -

we've had nothing that was

remotely offensive on us, what threat do we pose to Israel?

Both women appeared in a Tel

Aviv court to fight a deportation order. Israeli

authorities had previously

warned activists like them

would be banned from entering

the country. In the end the

judge gave the women 24 hours

to stay in Israel or West Bank but if Israel refuses

they will be deported. Their

lawyer says it's a major precedent. For the first time an Israeli court accepted our

claim that people can come to

the border police and say

explicitly without lying we

come to visit the West Bank and Palestine. Outside the court

the women were clearly relieved

of the decision espernlly as

scores of activists have

deported. Come tomorrow they

may well be deported anyway.

The ACT Government has

increased a pay offer to the

Territory's nurses and midwives

but it may not be enough to

avert industrial action. Today

the Government boosted its pay

off of public sector nurses and

midwives to 3.5% per year

saying it showed how much they

valued their work but the union

says that barely keeps pace

with inflation and includes unacceptable conditions It is

something we will take to

members but it has significant

conditions attach and those conditions, particularly in relation to allowance, our membership has

made it very clear that that is

not acceptable. There is no

money tree and we do have to

work within the work within the limits that

we've set so I hope that they

see the genuineness of the

Government's revised offer and

consider it and hopefully we'll

be able to avoid industrial

action. Avoiding that action

appears unlikely after the union applied to Fair Work

Australia for permission to

vote on protected action. An

urgent meeting between the health directorate and the

union will be afternoon to try to resolve the dispute. Bosses at department

store David Jones have blamed the Federal Government for

sharpest fall in sales in living

living memory. The company has been forced to slash its profit

forecast and claims the carbon

tax is a major factor scaring

customers off. David Jones has

been doing its best to tempt us

but by its own admission

failing dismally. An unpres

dents - unpres debited slump

in sales during clearance means likely to be as

much as 12% down on last

year. People are keeping money

in their pockets at the moment.

They're not spending it. The

company's share price dropped 16% after the profit warning.

The CEO blamed the Government's

flood levy and the planned

carbon tax . It's impacting

consumer sentiment. I think

it's important to think about

the taxes they target our core

customer and that's impacting

their spending. He said Internet sales and interest

rate rises also contributed to

the poor outlook. It's not DJs that's facing tougher

times. Myer has confirmed its

profit forecast of 5% below

last year's result. And the problems are are expected to spread further. It wouldn't

surprise me to see other parts

of affected car, jewellery and

perhaps even real estate, those bigger types of purchases. The

frustration for retailers is

lack of money isn't a problem,

we're actually saving more than

we have done for

it's the intange intangible but essential feeling of confidence is missing. Until that changes

the worry is the outlook will

continue to get gloomier. continue to get gloomier. To

finance now and the retail

sector's woes dragged the local

share market down again today

even though Wall Street looked

up a bit overnight. The All

today Ords index finish 0.5% lower

today and all the attention was

on the retailers. David Jones came out with its shocking

profit downgrade and investors

dumped the lot of them. Out they they went. Everything must go.

DJs finished 18% lower, Myer reaffirmed its profit guidance

but that meant it fell 6.5%. JB

hi fie, 5%, narvey Norman 4.5%.

Even though David Jones copped

it today it has done less bad than Myers since Myer was

floated in late 2009. The All

Ords index has been exactly

flat since then as the graph

shows but the two department

stores have been anything but.

Myer down 25%, David Jones 17. contrast to New York where stocks rose as they did in

Europe although the Greek share

market had a bit of a tumble

and Asian markets well as and Asian markets well as fell

- fell as well this

afternoon. Moody's warned that

if the politicians don't agree

on an increase in the debt ceiling the nation's credit

rating would be at risk. So, a

statement of the obvious, from one of the great culprits of

the credit crisis. Ben Bernanke gave some testimony to

economist speak. On Congress. I was classic

hand he said it's possible the

recent economic weakness proves

persistent and they might have

to fight deflation again with

money printing. On the other

hand the economy could go OK

and require tighter money

policy. Translation - we don't

know what's going on, absolutely no idea. Currency

traders aren't surprisingly

were confused as well. At first

the US dollar went up because

of the prospect of more

stimulus and then it went down

because it might be needed. A

Aussie ended a full cent against the greenback. Mark gz

anyier has announced he will walk away from rugby league at

the end of this year. He

revealed he desighed on his

despite having future before the season began

his contract. Carrying the despite having 3 years left on

Gasnier name there was only to

be ever only one club for this

local junior. But he has

announced he will hang up his

boots The mange thing is I hope

we do well this year. It's been

a good year for me, I've

enjoyed

would have been as committed

next year. He's an extraordinary rugby league

player and person. Gasnier says he's physically strong enough to go on but to go on but wants the club to

spend his portion of the salary

cap elsewhere. It's going to

suit the club better, it suits

me better, it suits everyone involved

involved that they move on and

as I say, nurture talent. At

the end of 2008 Gasnier

switched codes playing rugby

union in France. He returned to Kogarah last season. A bit of a fairytale and I couldn't have

written it any better. Gasnier

has played 166 games for the

Dragons, 15 Tests

in 12 State of Origin matches.

The local junior #345ed his NRL

debut in 2000 against Newcastle and Monday night's local derby

against Cronulla will be the

final time in his career that

he runs out here at Kogarah

oval. Gasnier isn't sure what's

next but he says there won't be

a return to rugby and for the

moment he has no interest in coaching. the coaching ranks late today

when the Bulldogs' Kevin Moore

announced he will quit the club after being told his services

wouldn't be required The United States will play wouldn't be required next year.

Japan in the final of the

women's World Cup after both recorded semifinal wins

overnight. Japan came from 1

goal down to beat Sweden 3-1

and advanced to their first

ever final in the tournament.

Sweden had been favoured to

qualify for its first decider

last 1 Min - 11 minutes helped

the USA move through. The World

Cup final will be played Monday

morning Australian time. British sprinter Mark

Cavendish has won the 18th Tour

de France stage of his career.

The 24-year-old held off Andre

Greipel overnight to take

victory. Australian team-mate

Mark Renshaw led out Cavendish

before the sprint finished. In

the process Cavendish secured

the Green sprinter's jersey. My most dangerous point most dangerous point is my then most dangerous point is acceleration and if I do that

then I get a gap and hold it and that's what I made sure I

did today. It came a day after

in a Cavendish was beaten by Greipel

in a photo finish. Australia's Cadel Evans heads into

tonight's 11th stage in third

place overall. He trails race

leader Thomas Voeckler of

France by 2 minutes 22 seconds.

Tour now heads into the As James Bennett reports, the

Pyrenees on Bastille Day. It

may be 14 July but it's

unlikely a Frenchman will take

a stage win on the country's national holiday because the national holiday a stage win on the country's tonight's stage is the first of

the high mountain finishes. The

peleton first goes over the

2,115 metre kol Du tourm lay.

Cadel Evans says he's happy to

have arrived at the first big

mountain stage in good health

ahead of tonight. Wait until we

hit the mountains, we will for

sure find out the truth there

and I just make my own race and

see how the others go and be see how the others go and be competitive. While focus has been on

focus has been on defending

champion Alberto Contador Andy Schleck is also a big favourite. He's only 12 seconds

from Cadel Evans and is likely

to pose a big threat tonight.

Canberra's 2 newest residents,

a pair of ring-tailed lemurs

have been showing off have been showing off to

visitors at the national zoo

and aquarium. Indray, the 2-year-old male came from Perth

female came from congress Hong Zoo but Lilly the 7-year-old

Kong and she's takening a while

to adapt to the schily chilly weather. The keepers are delighted how well they're getting along. They're like old friends. They ran

together and the two of them

hugged each other and ran their

tails over each other and

licked and kissed. It was a

special moment. Although lemurs

are facing the destruction of

their natural habitat in the

wild they're known for thriving and breeding well in

captivity. There are so many

lines there, I'll avoid all of

them. Welcome. Yes, thank

Craig, and I will too. Good

evening. Today's weather was

synonymous with two L words,

lousy and lovely. It was lousy this morning. combined with minus 3 and 4

resulted in frost and patches

of black ice. It was also foggy

and cold. From about lunch time

onwards though lovely, clear

and sunny, light winds and a

top of 11. Right now it's clear, cold and almost calm.

Locally today it was a very

similar story. Cold

early, clearing to a fine,

sunny day and some centres were

cold.

S S That big massive cloud has been moving across

Australia during the week has now narrowed

now narrowed and is over

southern Queensland. It's still

generating patchy showers and

the rest of Australia is mostly

clear. That's because a high

pressure system centred in Bass

Strait is extending a ridge

over the continent but watch

out for a cold front east of WA. Bringing showers and storms

to Perth tomorrow and we'll get

something from it by about Sunday afternoon, Monday.

Nationally tomorrow: There

At for Canberra tomorrow it

will be lovely again. Although

it are will start out very

cold with frost and fogs, minus

4, it may go lower. Then lit be sunny with light south-east erly winds.

Crig, it might be cold and

frosty for those lemurs but

flowers like this Banksia

spinulosa are all the show at

our botanic gardens right now.

Pop along and see them. I might

do that, thanks, Mark. Before

we go a look at our top

stories. Head of Rupert Murdoch's operations in

Australia has told the

confident there's no improper or unethical behaviour in News Limited newsrooms in Australia Bob Brown called for an Bob

independent inquiry into Australian media. And

Greenpeace protestors have

broken into a CSIRO trial site

destroying a crop of genetically modified wheat.

Police are investigating the

breach which happened early

this morning. And that's the

news for now. But coming up is

it paranoia or justified? 7:30-the Government bereaves the country's

newspaper group is forging it

out of office. Thanks for your company goodnight. Closed Captions by CSI