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Live. Tonight - a summer of floods brings a floods brings a winter of economic discontent. Once again

we have been through one of the ultimate tests. Changing of the guard - a military's top brass. I'm very conscious that these changes in

command come at a very testing time for the Australian Defence Force. Businesses out in the

cold as the ACT government axes

the solar feed in tariff.The

ball boy balls up that stunned

the crowd at the French Open. Oh no. Oh my goodness. The

point has to be replayed. He is Astonished. Welcome to ABC News I'm Virginia Haussegger. The cost of living may be rising but the economy is shrinking,

buffeted by natural disasters

Australia's recorded its biggest fall in GDP since the

1990 recession we had to have.

The government's predicting a quick bounce the next figures come out in

three months but its optimistic

message was drowned out in

Canberra today by a male cat

call that triggered a brawl

about alleged sexism.

A Liberal senator tried to

turn the economic debate into a

cat fight. If I can finish now. Raw. Why don't you miaow

when a woman does that? The

blokes are allowed to yell but if I woman stands her ground

you want to make that sort of

comment. It is that sort of school yard politics. David Bushby soon apologised. Did you do it because she's a woman? As

I say, I've talk to Senator

Wong, we had a good discussion,

she as accepted by apology. The

Finance Minister was absolutely

right not to put up with the

rudeness and the sexism of Tony

Abbott's goons.

today - the economy went into

reverse at its fastest rate in

two decades. Once again we have been through one of ultimate tests. In the first

three months of the year GDP

the Queensland floods and shrank by 1.2% mostly because

Cyclone Yasi temporarily swamped the mining

industry. Why the government

hitting Australian households and businesses with the carbon

tax when we now know that a

mining boom cough can lead to economic pneumonia. Our has taken a short term hit, a significant

significant short term hit from

natural disasters but it has

been not knocked off it's long term path, Mr

Abbott urged the big miners to become political activists. I

do not see big polluters, I see

big employers, I see big exporters. Tony Abbott wants the miners to do to the carbon tax what they did to the

resources tax. There is no sign

of a multimillion-dollar

campaign like that just yet

although the industry has not

ruled one out. It will not a skin till la of difference to

helping global warming,

what it will nothing, zero, immeasurable but

export Australian jobs what it will do is it will

overseas. Putting their mouths

where their money is. Australia's military leadership is being shaken up.

Left General David Hurley is stepping in to replace Air

Chief Marshal Angus how on the

as - chief. He is retiring after 41

years in uniform. A new phalanx

at the frontline and a towering

changing of the guard in figure at the back. This is

defence top brass. They are big

jobs, they carry with them

heavy burdens and heavy responsibilities. The minister

took his time with these

appointments just four weeks

out from Angus Houston's

been promoted into his retirement David Hurley has

job. They will be a hard act

chief Mark for us to follow. The air force

deputy and there are three new leaders for each of the services. I have immense

confidence in this team. After

six years at the top Air Chief Marshal Houston has begun the long fair well. Thank long fair well. Thank you all -

not farewell. Thank you all and I'm

not gonna miss estimates. In

Canberra and in the theatres of

war he has advised three prime

ministers. Taken flak for

military misbehave your and

more often than not been there to tell of its dead and wounded. That's the low point, thank you. Defence rattled by this week's double losses in Afghanistan. It's been

been able to rule out enemy

fire as a cause of the

helicopter crash that killed lieutenant Marcus Case but the

rogue Afghan Army soldier who shot Lance Corporal Andrew

Joans is still at large. Until

he is caught and interlo gated

no one will know will whether

there is truth total ban claims

the killer was one of theirs. I

think it falls into the category of incoming defence chief says the

right up the chain of command. shootings have sent a message

Security checks on Afghan Army

he adds, recruits are being reviewed but

he adds, even with greater

vigilance further attacks of this sort will never be

stopped.

While the hunt continues for the rogue Afghan soldier the

Afghan Army has gone into

damage control condemning the

killing and moving quickly to

track down the killer. A senior

Afghan commander working with

Australian forces has told around BC he hopes the incident

- ABC he hopes the incident

won't undermine ties between his soldiers and their

Australian colleagues. It is

the incident Australian troops

hoped would never happen - a

Afghan counterparts. Lance digger killed by one of his

Corporal Andrew Jones was shot

dead by an Afghan soldier at Patrol Base Marshal. A senior Afghan commander working with

Australian forces in the believes the killer was an insurgent. TRANSLATION: Our research and investigation are

in progress. The kuning enemies of Afghanistan want to get inside the ranks of inside the ranks of the Afghan

National Army and police so I

think he was one of these

enemies inside our ranks that

carried out this action. The Afghan National Army described the incident as harmful and

very sad. Coalition and Afghan

drops are now hunting the

alleged killer ifeed as Shafid

Ullah. They are hopeful the

shooting won't undermine their the killing is still unclear but Australian defence

officials were encouraged by

how quickly and forcefully the Afghan National Army Afghan National Army responded immediately after the incident. Defence sources say

it may take a while to rebuild

trust between Australian and

Afghan soldiers but that this

incident won't change the way

diggers operate in Uruzgan

province. The relationship between coalition forces and the Afghan government is under

strain in Kabul for different reasons. President Hamid Karzai

says Afghans will no longer

tolerate civilian casualties

after 14 people were killed in a US air strike a US air strike on

Saturday. Afghanistan has

of ways of stopping it but we

don't want to go there, we want

NATO to stop raids on its own. He is warning his

government will take unilateral action if coalition troops

become an occupying force.

The ACT Government

the solar feed in tariff scheme to do Megsic customers. The

scheme pays householders for producing solar energy and producing solar energy and has

resulted in a big increase in

the number of panels on roofs

across the capital. The sudden announcement has angered some

who say the industry needs more

time to adjust to the change.

It's no secret the scheme was

close to capacity with

customers and installation companies eager to take

advantage of the Luke krative

deal but just how quickly

capacity was reached has left many surprised. If you have a cap it means when you get to that cap the scheme changes.

That's what's happened. It has happened quicker than we anticipated. The scheme

encouraged households green by paying them a premium

for the solar power they

produce. It was never going to be

be permanent with the

Government imposing a 15

megawatt cap on the scheme.

That has now been reached, up

to two years earlier than expected. These are difficult

things to predict. We have seen significant changes in Federal

Government policy and we have

had to respond to that because application. These are factors

beyond the ACT Government's control. The government has

made it clear those who have already signed up won't miss

out. Anyone who put their money

on the table, anyone who signed

a contract, those arrangements

will be honoured and people

will be able to access the

scheme under the terms that

existed up until midnight last

night. The Greens say it is the

industry that's been cut off at

the knees. Many of the industry

installers have six or eight

weeks of work, at the end of

that their work will run out,

redundancies will be created.

This is the problem that has policy decision overnight. Just

this morning Phillip May

received more than $200,000

worth of home solar panels. Another delivery is on its way.

He says three months work is

now in limbo and he is facing an uncertain future. The sudden announcement was totally

unexpected considering it was

only a couple of months ago

that we were told it was 18

months before the close. The Government says it will now focus on larger scale generation schemes. Mobile phones may cause

cancer. of the world health organisation after reviewing

all of the scientific evidence.

It is a possible link, not a proven one, but it is the first

time WHO's cancer experts have

made the connection between

requireless device and cancer.

Mobile phones are everywhere

but how safe are they and can

they cause cancer? Those were

the questions caused by a group days of meetings they reached a decision. What this working

group has found is there is a

possible risk of cancer in

association with the use of mobile mobile phones or cell

phones. The panel said some

evidence suggested a link

between long-term mobile phone

use and an increased risk of a type of brain cancer called

glioma The danger of mobile

phones has not been

definitively proven but it cannot be ignored. Some tumours were the head as used for phoning.

As a result of the review the

World Health Organization panel

recommends limiting mobile

use. There are approaches you

can use to use Tex leing or use

hands free systems to reduce or limit your exposure whilst we

are in this period of

uncertainty. Australian experts say the findings are

important I don't think the

public should be alarmed but I think they certainly should be

well informed. Industry groups

say mobile phones are designed

to operate within international and national exposure limits. It is premature to be

advising people to limit use

however we do recognise that some

some people may be concerned by

this debate. With the up-I take

of mobile phones and devices still increasing scientists admit they don't

know for sure what effects they may have in the long term. The telecommunications industry has

been warned to change or face strict regulation. The Australian Communications and

Media Authority has released

the findings of a year enquiry prompted by a massive rise in consumer complaints.

It's demanding changes to

pricing information in ads so customers will prohibit the use of the

terms capped, free, unlimited,

no exclusions because there are always exclusions. Each year

140,000 new complaints are made

about mobile plans and services. Former prime minister, Paul Keating, says the Native Title Act is failing Indigenous land Indigenous land claimants

because there is too much

emphasis on proving continuous occupation. Mr Keating says

only a fraction of claims have

been settled despite taxpayers' spending almost $1 billion to determine land rights. Former

prime minister Paul Keating

says efforts to address a

brutal disposition have been

slow and at times unfair. One

reason for that, he says, is

the onerous burden of proof to

prove continuous occupation of

land. Native title should not be viewed as some

strain of law which snap frozen

requires defrosting around an

throw po logical principles,

documentary records that rarely

exist, if they ever

existed. Now one of the country's most senior Indigenous leaders, Lowitja O'Donoghue would also like to see change. It is very

difficult for those urban

people more than the people in remote areas and so on who

continued to remain on their land and practise the traditions and so on. According

to Mr Keating in the first 15

years of the Act, 1,300 claims

were lodged but only 121 cases

were determined covering 10% of

Australia. The cost to

taxpayers was $900 million. The

amount of resources that go into this process is alarming. The federal

government says 157 claims government says 157 claims have

been resolved and changes to

Federal Court powers are

speeding up the process. We are

reluctant to do anything that

is going to reenliven new legal issues that may prolong rather

than reduce the time spent in litigating these matters. The attorney-general says he is hoping that hoping that the bulk of outstanding claims will be

resolved in the next two years.

The former Bosnian Serb army leader, Ratko Mladic has been extradited from Serbia to The

Hague to face genocide charges.

Acourt in Belgrade rejected

Mladic's appeal against the

extradition that was made on grounds of ill health.

The high security convoy made

one secret stop on the way to

the airport, Ratko Mladic

visited a suburban cemetery

where he left a lone candle for

his daughter Ana who killed

herself during Bosnia's ethnic

war. At The Hague a special tribunal for the former

Yugoslavia wants to prosecute

Mladic for atrocities committed

by his Serb troops during that

war which began in 1992 and

ended with the massacre of

8,000 Muslim men and boys in

Srebrenica in 1995. Ratko

Mladic has been extradited

during this afternoon to The

Hague tribunal. His wife and

son paid a final visit to the

prison, possibly the last they'd see - they'll see him

on Serbian soil. Lawyers

representing the 69-year-old argued against extradition on the grounds that their client

was too ill but it was rejected and he was whisked onto a

flight almost immediately bound

for The Hague. A copy of the

indictment will be given to

him. He will undergo medical examination and he will be put

into an isolated cell for the

first few days of his inabout tans of the detention

unit. Former Bosnian Serb already on trial at The Hague but the European Union is

unlikely to admit Serbia to its club until the last fugitive, Goran, Hadic is found. Moss of

delays, NBN has announced the

companies that will build the National Broadband

National Broadband Network.

Construction company Silcar

will build the fibre-optic

network in New South Wales,

Queensland and the ACT. Two

moss ago NBN suspended the tender process claiming the

bids were too high but it says

budget. It is a good deal, a

good deal on good terms, a fair price and the ability to get

the job done. The NBN has also signed a $1.1 billion contract with Ericsson to supply fixed

wireless services to areas that

can't be reached by fibre. To

finance now and the local share market closed flat today after early falls when the GDP

figures came out. As Allan Koehler reports the Australian

dollar was up. Let's have a bit

of a after today's national

accounts. First quarterly GDP

itself. You can see that since

the last recession in the

the last recession in the early

1990s there has only ever been one negative quarter at a time, each one due to special circumstances. This time will

be no different. Next quarter,

which still has a month to go ,

will be positive. That means

this period of expansion will

almost certainly extend to an

unheard of 20 years. That's not to say everything is wonderful,

it is patchy. There are at least four fundamentals moment. First productivity is

in decline. This graph shows

GDP per hours worked and after

peaking at 3% annual peaking at 3% annual growth 7

years ago productivity is now

going backwards. Savings are up

strongly which means people are not spending so much and that is bad for retailers and house

prices but debt is being paid

down which is good more

generally. Of course we are

going threw our first big

export boom. There was wheat in

1925, wool in 1950 and iron ore, coal and gas in previous terms of trade booms were brief spikes but all the

indications are that this time it will be high for longer. The

fourth factor, of course, is

the currency, stuck well the currency, stuck well above

parity. Today it jumped 0.5 of

a cent at 11:30am when the

national accounts came out. The underlying trend of economic

growth remains strong so no one

really thinks it will change what happens to interest rates.

Share market finished Share market finished flat. BHP went up less than you might have expected after the company

beat the Tax Office in court to

the tune of $580 million by

goes straight to the bottom line. How sweet it is.

Otherwise the moves were fairly

small. Fortescue went up after Andrew Forrest asceneded from

CEO to chairman. That is

finance. Wine makers are facing

the toughest conditions for 20

years. It seems things are

going from bad to worse. There

is a surplus of wine and bargains aplenty. The latest sales figures show consumers

are as tempted by tipple as they once were. Tough times call call for straight talking and

the wine makers' federation

isn't holding back. These are

probably the generally the

worst times in a generation for

the Australian wine industry.

We can't remember a time when

it has been as bad as this. In

the three months to March

domestic sales slumped 6% on the previous year. The Australian wine industry immune to the downturn in consumer spending that is

happening across all the retail channels. It is getting harder to make a buck at the liquor store, even with some wines selling for the same price as

15 years ago it is a constant battle to woo shoppers. At the

moment we see people with their

hands in their pocket and

counting every dollar which means they

means they chase specials and if they are chasing specials

and expecting that price it

reduces the profit we can put through our till. Some outlets

have been selling wine for as

little as $2 a bottle and that

is putting enormous pressure is putting enormous pressure on

producers and independent retailers. This man can't compete with the likes of Coles

and Woolworths on price as

customers become accustomed to

a bargain. Things will a bargain. Things will be tough. We reduce our staff and open longer. I couldn't even

pay for the grapes that I buy

from my growers around here

surrounding the winery and sell

a bottle of wine for $2. Ken

Helm is taking a different tact targeting the premium end of the market. Demand in that

niche is so strong he can't

keep up with the orders. The key to success in these tough times is that you specialise. We have most of our customers

on allocation because we are

literally run out of wine. With

the global oversupply and the market awash with cheap imports

consumers are the winners as the wine industry says drink up

. Sepp Blatter is set to be

re-elected as Fifa President

for a fourth time despite attempts by some football initials

initials to delay tonight's

vote. As Fifa opens its 61st association has called for the

vote to be postponed because of the latest corruption scandals.

I think it is important that

somebody stood up and made a

statement. I think there is a matter of some principles

involved here and I think if

nobody else was doing it the FA

take a lead in this. The build up to the presidential ballot

has been marred by a series of claims about vote buying by the Fifa chief has strongly denied there is a crisis in the sport's governing body. Former championship, Roger

Federer will face Novak

Djokovic for a place in the cruised into the semis. In the

women's draw defending

championship, Francesca Schiavone survived a tight

quarter final battle and will

now play Marion now play Marion Bartoli.

Federer was all class in

disbatching - dispatching

crowd favourite Gael Monfils.

There has been little fanfare

ah Federer's form but the third

seed is no longer flying under

the radar. It is always nice to

be in the semifinals of the

Grand Slam. It is where the and the matches are the toughest. On his least

preferred surface Federer is

still to drop a set. The former world number 1 looked world number 1 looked back to his best in dismantling Gael

Monfils. He is Monfils. He is playing extremely well. Federer will

probably need to improve further to get past Novak Djokovic in the semis. We will

see how it goes and the

beginning might be really key

to the match but we both have plenty of time to prepare. A little French followly threw Viktor Troicki off his game against ball boy's over zealous

entrance cost Troicki a certain point during the battle and

Murray finally pro-veiled to

book a place in the quarter

final. Marion Bartoli kept

French hopes alive defeating Svetlana Kuznetsova to set up

semifinals clash with Francesca Schiavone. There is no such

thing as a friendly between Australia and New Zealand. The

out new breed of Socceroos will be

out to impress in Adelaide on

Sunday. I think we beat them

and I think we've got a bit to prove after doing so well in

the World Cup as well. It's

gonna be a good test for

everyone. Former Sydney striker Alex Brosque is hoping to push

for a permanent place in the Socceroos squad. Miami superstar duo combined to give the Heat the upper hand in the

finals. LeBron games and Dwayne

wade scored well.As Miami

defeated Dallas 92-84 in the

opening game of the best of 7

series. Alberto Contador will be free to defend his Tour de France crown in July after his

drugs case was postponed. He is still celebrating his Giro

d'Italia victory and will face

a hearing in August after

testing positive to substance Clenbuterol. The New testing positive to the banned

South Wales cricket team will

play two matches each year at

Manuka Oval for the next three

years. In a deal announced by

sports minister Andrew Barr

today the Blues will play one

Sheffield Shield match and one

50 over match. It is the art world's This year Australia's hopes at

the Venice dy ennial, rests

with a Sydney artist who turns the everyday into the extraordinary. It is the

world's older and most

prestigious art show. This year

we have sent an Egyptian born

artist. He has a large fan

club. His new sculptures in the show, made of polyurethane and metal. It is an amazing opportunity to be given carte

blanche to make the work I want to make and have so many great

people to work with who have

trusted me and allowed me to

realise this exhibition. Every

two years the city of canal s

from around the globe. On the is invaded by visual artists

edge of the city is this pavilion. There is always tough competitions around the countries but the Australian one is past It was designed in the 80s and one is past its used by date.

was meant to be temporary. 30

years on and there is finally a

trajectory to have a look at plan to replace it. We are on a

what it would take to build

here and to see what kind of

private sector support there is

to rebuild the pavilion and

bring it up to date and have it

be a new kind of space for

Australian artists to show. The

money will come from private

donors headed up by Sydney

family pledged $1 million of businessman Simon Mordant. His

the $6 million target if the project goes ahead. Australia

first sent Sydney Nolan to

Venice in 1954 and has been represented by some of our

greatest artists ever since.

The show runs from June to

November. Now with a look at

today's weather here is Mark Carmody.

Good Evening. It was an

overcast but mostly dry for the

first day of winter in

Canberra. I said mostly dry

because light mys le the northern suburbs and

Belconnen around lunchtime but

didn't deliver anything.

Overnight the temperature

stayed in positive but there was a big difference between the airport and

Tuggeranong, 5 degrees. Talking

hot, the maximums today weren't

exactly hot, not even warm, 15

in the valley and Belconnen, 16

at the airport. Currently it is

overcast, the humidity is up and it's 10 degrees. Cloud is breaking u across

the New South Wales coast.

There is cloud move over

Adelaide and south-west WA the.

The cloud over WA is associated

with a low that will keep moving eastwards other the next

couple of days resulting in

rain in Adelaide, closer to the

weekend.In the state capitals

tomorrow:

The garden needs the rain, especially camellias, camellias stay dry the developing buds fall off.

Thankfully this one has

flowered. That is the news for now. Stay with us for Goodnight. Closed Captions by CSI.

Is the strength of the Aussie dollar going to hit Australia's

most productive food bowl.

Locals are worried about job

losses and big cuts to fruit

processing. Also tonight on

'7.30' - as the economy suffers its biggest quarterly fall in

20 years, we're face to face

with Wayne Swan, the federal

Treasurer. And are we doing enough to enough to help smokers who

can't kick the habit? There is

more to quitting smoking than

just saying don't do it

anymore.

Welcome to the program. The strong dollar Australia's fruit industry and damaging regions like