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(generated from captions) This is low cloud over parts the south-east which is bringing flurries to the the dominant flurries to the mountains but

that's currently centred over South Australia. It will give frosty mornings to fine sunny conditions with

least the next three days. With 9 mm last night, plus 39 yesterday, that takes our monthly total to 57, the The price pod, I she smile and said "If I one of her flowering Daphne, all will be forgiven." So here it is, Di! Oh you little charmer! You little would've charmer! You little weasel! I That's ABC News. Stay with us pay! Weasel?! Thanks, Mark. pay! Weasel?! Thanks,

now for the 7.30 Report coming up next. Enjoy your evening. Goodnight. This Program is Captioned

program. I'm Tracey Bowden - Live. Welcome to the

. In the lead-up to an

election the Prime Minister

Julia Gillard is seeking to

promote her Government as

prudent and disciplined when

management and has pledged it comes to economic

the campaign will be lean

with no old-style

big-spending announcements. Addressing the National Press Club Julia Gillard renewed

her promise to give Kevin

Rudd a senior job in the

ministry if Labor is

re-elected but faced awkward questioning about her role

the night before he was deposed. As well she ruled

out a referendum on the

republic any time soon and

declared she was enjoying the

latest public tussle between

former Labor leaders Bob

Hawke and Paul Keating.

Please come in! It was Julia

Gillard's first appearance at

the National Press Club since

becoming Prime Minister.

There was a big build-up,

intense media attention and

high expectation from the

audience. Thing haves

changed, I do not have to

explain a string of to you. Please welcome Prime Minister

Julia Gillard. The Prime Minister

launched into a speech. I

believe prudent and

disciplined economic

management is the foundation

of good Government. That is

why I believe in strong

budget surpluses. The prudent

approach she stressed would

apply to the election

campaign as well. Any

commitments made in the

upcoming campaign will not

add a single cent, not a

cent.. To the budget bottom

line. It was a careful

Opposition claims this week attempt to counter repeated

the Government was about to

pork barrel big time in the

campaign. In the process

Julia Gillard singled out one

area the Government will be

focusing on.

Yes, the upcoming campaign

will have strong elements of

clean and green but it will

be very, very lean. And all

of our policies will be

submitted to Treasury and

finance for independent

costing under the charter of

budget honesty and I

challenge Mr Abbott to do the

same. Campaigning in the

marginal NSW seat of Page and

later in Brisbane this

afternoon Tony Abbott had

been awaiting news of the

speech and offered this response to Julia Gillard's

challenge. I have said time

and time again that every spending commitment that we

make will be fully costed and

fully funded. Back at the Press Club in Canberra as is

so often the case it was not

the speech but rather the

questions that followed it

that produced the surprises.

What about that fateful

meeting between Julia Gillard

and Kevin Rudd in the Prime

Minister's office the night

before he was deposed. Is it

true Mr Rudd told you that

night he was working toward

an October election because he newish use like climate

change needed to be sorted

out? Is it true that Mr Rudd

indicated to you that if

closer do the election

polling showed he was an

impediment to the re-election

of the Government and if

leading Labor figures sufficient as John Faulkner

agreed me was an impediment

they would then voluntarily

stand aside and hand over the

leadership to you before the

election? Is it also true

that you agreed that this

offer was sensible and

responsible? Is it true there

was then a brief break during

which Mr Rudd went outside

and brief add couple of

colleagues on what he thought

was a deal while you

contacted your backers and

that when the meeting resumed

you said you had changed your

mind, you had been informed

he did not have the numbers

in caucus and you were going

to challenge anyway? I have

made it very, very clear that

I will never be speaking

publically about my

discussions with Kevin Rudd

on that night. I think that

is an appropriate mark of

respect between colleagues so

it is not my intention to

canvass any of the matters

that were discussed in that

room. Plainly the Prime

Minister has a bit of

explaining to do about what

her exact role in the events

of that night were. Clearly

we are never going to get a

but house sting a Prime blow-by-blow public account

Minister in his first term of

office does posts own big set

of problems for Julia

Gillard. First the need to

convince the electorate she

has done the right thing and

secondly, how to deal with a

former leader who is

reportedly feeling very

bitter and is determined to

seize the Foreign Affairs

ministry if Labor wins the

next election. If the

Government is re-elected then

I would very much well come

Kevin Rudd playing a senior

leadership role, a senior

frontbench role in my team.

So I have said that

publically. That is my

commitment. It is one she

seems to be stuck with.

Despite some in her ministry

being horrified by the potential discomfort and division a Rudd return would

create in the Cabinet room.

Political wound can take a

long time to heal as so keenly demonstrated by the

latest bust-up between Bob

Hawke and Paul Keating. After

the launch on Monday of a

book by Bob Hawke's wife dock

menning the Bob Hawke-Keating

years. Any problem in a

sense I have, Paul, is that

he tends to be sort of

somewhat bitter about the

past and bitter about things,

not about me but that has

gone. Paul Keating's

bitterness toward Bob Hawke

has not disappeared. He is

furious about the book. In a

scathing let the other Bob

Hawke a few days ago and

obtained by the 'Australian'

newspaper he accuses his

former boss of wilfully

misrepresenting his role in

key Government decisions

during their time in office.

And going missing as leader

between 1984 and 1987 because

of an emotional malaise. Do

you envisage that at the

campaign launch Bob Hawke and

Paul Keating sitting next to

each other as they din 2007?

Well if I can make a comment

firstly about it is not the

centre of your question but

about Bob Keating - Bob Hawke

and Paul Keating! I will pay

for that in the Twitter verse

I can tell. That

Twitter-sphere! What I would

say is they are two great

Australians passionate about

their politics, passionate

about their politics to this

day, having a passionate

discussion and I would have

to say as someone with an

intense interest in politics

I'm enjoying it and I think

many in this room probably

are as well. Worth noting

though that she may be in for

the same long-running feud

herself with Kevin Rudd. For

now he is in the US meeting

the UN Secretary-General

after an American-Australian

leadership dialogue. Paul

Keating is also overseas and

not doing interviews. Since

coming to office Julia

Gillard has often promoted the Bob Hawke-Keating

Government's consultation and

consensus style as one she

want to adopt but what did

emerge today is that Paul

Keating's desire for a

republic is not on her

immediate agenda, damp. I do not sense in the Australian community today the same

degree of activism or engage

with the this issue that

there has been at some times

in the past. What is left to

deal with is climate policy and while Julia Gillard

managed to avoid protestors

outside the National Press

Club today it is a tricky

issue she is yet to make

announcements on. There will

be no election called until

after that happens. Political

editor Meather empbilities

wert. It has been described

as one of the biggest

scandals in Australian

sporting history and today

the Storm's salary cap rort

was said to be far worse than

originally thought. A report

commissioned by News Limited

shows the Storm made more

than $3 million in secret

payments to circumvent the

NRL's salary cap. News

Limited also announced today

it was sacking the club's independent directors who

plan to take legal action to

reverse a decision to strip

the club of two premierships

and all competition points

this season.would you please

congratulate the Premiers in

2009, the Melbourne Storm!

For the past decade Melbourne

Storm has been the Premier

team in the national rugby

league making four grand

finals and taking home the

trophy twice. But that

dominance was built on

deceit, lies and scams. Today

the full extent of the

cheating was revealed by the

club's major shareholder News

Limited. Our original

suspicion was that there was

an elaborate and well

orchestrated deception by

certain senior managers at

the club and that has been

confirmed by the Deloitte

report. Is it fraud? That is

something for the police to

investigate and we are

referring the findings to a

string of. The disclosures by

the Storm's owner this

morning were damning the in

the extreme. The Storm have

been in the last four grand

finals in a row, won two

premierships, been the

dominant team of the last

four or five years and now we

know why because they were massively rorting the salary

cap in such an even

competition one where the

salary cap rules are so

tightly enforced it made a

massive difference. The NRL

first revealed the massive

salary cap breaches in and

stripping the Storm of its

two premierships and all

competition points this

season. The independent

investigation commissioned by

News Limited in the aftermath

of that bombshell shows that

secret payments the star

players totalled more than

$3.1 million almost twice the

original NRL estimate. Those

payments were funneled to

players chiefly through to companies. Entertainment

promotion company McMahonies

and the charity the Unity

Foundation. Unity and

McManus companies would pay

the players but issue

invoicethe club and describe

the reason for the invoices

as things such as donations!

Or con shuttleing fees. There

are a range of other payments

that were used to make back

door payments to players.

Most much these involved payments of small amounts

over a long period so that

the a little themselves would

not arouse suspicion. Then

there were the extra

benefits. These included free

flights, gift vouchers, the

use of fully maintained cars

and so on. Investigators found the club sent side letters to three of the

game's best players Greg

Inglis, Cameron Smith and

Billy Slater detailing the

footballers would receive an

amount far in excess of their

signed contracts lodge would the National Rugby League.

The report said this was no

evidence these players or their managers knew the

payments detailed in these letters would consequence out

the a salary cap breach.

Regrettably not one of the

current players agreed to

cooperate with the investigation. Any

situation where you are asked

to sign to contracts

effectively must be a

situation where your alarm

bells are ringing and this

should be a reminder to

everyone in the competition.

News Limited executives came

in for some heavy questioning

today but how as owners they

could also be unaware of such

questionable accounting..

this club losing $6 million a

year, you think the owners of

the club would look closely

at the books to see where the

money is being spent. In any

company where there is

collusion between the senior

executives it gets extremely

difficult for auditors or

anybody to identify there is

something going on. There

is no doubt that the club's

owner will be reviewing the

way they oversaw the club's

business practices but it is

important to make the points

that where people are out to

hide something it is very

difficult to catch. As the

club battles to cement its

foot hold in AFL-dominated

Melbourne a bitter internal

battle between News Limited

and the four independent

directors on the storp's

board continue to rage.

Citing their failure to

cooperate with investigators

and their coning legal action

fighting the NRL's decision

to strip a string of of their

premierships John Hartigan

today aksed a string of by

email. As of this morning

the four independent

directors have been removed

by the board by our subsidy

company the principal steak

holder of the club. The

removed directors are Rob

moody and co. Late today the

directors hit back calling for the News Limited-appointed directors

to also stand down and

accusing the company of

disenfranchising the fans. I

do not see how you can have a

future without having an

independent Football Club in

the state. News Limited

opposed the directors move to

have the Storm penalties overturn from the begin in

and the sackings are likely

to halt that legal action. We

know hat we would love to see

happen. Had that is possible

that is something we would

have to take legal advice

before we can comment. The

decision to sack the

independent directors is

definitely intended to put an end to the court case to

ensure this matter does not

go to court and it remains to

be seen the independent directors have suggested they

will continue to fight but

you know on behalf of who or

what for it is hard to see

what their motivation would

be in continuing this court

case. Either say the Storm

face another huge challenge

to field a competitive side

in next year's competition

and this once gate side may

even have to field amateurs.

Despite a deck ate of

gangland murders and

allegations of links to

police Victoria repeatedly

resisted following the lead

of other states in setting up a state anti-corruption

commission. Last month the

Brumby Government did a

backflip of sorts promising it would eventually establish

its own version of a state

corruption watchdog sometime

in the next few years. But

the model says critics falls

far short of other successful

bodies across the country.

For more than 2 decades

corruption watch dogs have

been frog marching police,

public servants, even

Premiers into the witness

box. Firstly I do not know

of any corruption in the

police force. It was a

landmark Fitzgerald Inquiry

in Queensland that first set

the bench mark exposing

corruption that went all the

way to the top. Guilty on all

counts of corruption.

Corrupt conduct is generally

speaking conduct engaged in

by consenting adults behind

closed doors. Mr C ripps

spent five years as the

Commissioner of the NSW independent commission

against corruption a job he

says would have been

virtually impossible without

the formidable powers to

compel witness and dig deep

into people's private lives.

It is very interesting to

observe the major big inquiries Independent Commission Against Corruption

entered into when I was the

commissioner. What emerged

would never have hit the

light of day if it had not

been for Independent

Commission Against

Corruption. In the 21st

century a strong body like

this is representative of a

mod about earn day democracy.

Like Queensland and NSW before a string of Western Australia went through the

pain of a royal commission

before setting up its own

watch dog 6 years ago t

Corruption and Crime

Commission. In its short

history the CCC has already

named a number of high-profile careers

including Government

ministers and senior

bureaucrats. The CCC thought

it would make its reputation

by claiming my scalp. The

recent collapse of the CCC's

five-year inquiry into former

Premier turned lobbyist Brian

Burke has prompted fresh

controversy over its

extraordinary powers. And the

lack of natural justice for

the accused. It does tend

to strike terror into young

and old asked to go down

there. As a lawyer used to

going to court and

representing men where you

are afforded due process and

natural justice you are about

as much use to your client as

an old aunty holding their

hand at the

dentist. Anti-corruption

activists say howls of

protest come with the

territory when you take on

the powerful but while the Western Australian Government

is currently reviewing the

powers of the CCC there is a

general consensus even among

criminal lawyers it is better

to have some kind of

corruption watch dog than

none at all. I this CCC in

Western Australia has been

successful, it stopped those

lobbyists in their tracks on

the corrosive effect they

were having on due process in Government in my view but it

is not just confined to the

lobbyists. We have had a

whole raft of police

officers, public servants who

have been bought to task. Former Western

Australian Attorney-General

says in all 700 people have

been prosecuted by the CCC so

far but the real measure of

its success has been the

wholesale changes in the way

business is now conducted.

It is about changing a

culture which toll rates

corruption. A former member

of the National Crime

Authority says the scandal

now engulfing the Victorian

Brumby Government is perhaps

the starkest demonstration of

all about what can happen in

the absence of an

anti-corruption body.

Despite a decade-long

gangland war the Brumby

Government has repeatedly

refused to call a royal

commission but with at least

four out of 37 murders linked

to police the garden state it

seems is now more famous for

its cartoon gangsters and

crooked cops. In many ways

Victoria, there seems to be a

time warp, they seem to have

remained in the '70s. Some of

its police members may be

involved in began land

murders. I mean it does not

get more series than that.

There seems to be this few

that Victoria really does not

have a problem. If that is

not a problem, what is a

problem! Critics of the

Brumby Government say rather

than taking any serious

measures to deal with police

corruption it has instead

appealed to Victorians vanity

assuring voters that while Victoria might have some

problems they still are not

nearly as bad as the other

states. Blue Victoria has been saying for years it is

the cleanest state, the one

with the most integrity.

Victorians think they are a

little bit more ethical,

genteel, there is an element

of that but it takes something like a royal

commission to show that

really it is not factual at

all. It was the same mantra

invoked yet again last month

when the Brumby Government

announced it planed to set up

anti-corruption commission its own version of an

following a review by former

senior Kennett bur kralt

Elizabeth Proust but there

was no pressing urgency. We

think this is a unique

opportunity to create an

integrity and anti-corruption

body without that major

scandal looming in the

background. Impossible for

me to understand how Proust

could say that. Victoria is

now an extremely corrupt

state simply because nobody

has ever done anything about corruption for many decades. Anti-corruption

advocates say the Proust model falls so far short of

what is needed it largely defeats the purpose of a

corruption watchdog.

Especially extraordinary

proposal to conduct most inquiries other than police

behind closed doors. One of

the least attractive aspects

of some other jurisdiction is

the public circus and

reputational damage for a

very small percentage of

people who end up going

through the court and being

charged. In points of fact

just about every public

inquiry engaged in seriously

damaged the reputation of

someone but that was

justified because that

someone I believed had

engaged in corrupt conduct. Victoria should get credit

for trying to move forward to

have an organisation that

deals with corruption. My

problem is I do not think it

is really going to work. It

is now 35 years since the Victorian Beach inquiry into

police crux, an inquiry with

limited powers and

underwhelming results. a

number of police were charged

but that was the good old

days. You could hardly get

evidence against a string of

and they were all acquitted.

Corruption has built up and

become systemic and by that I

mean if you are a police officer you know if you

behave Krupinskily no one

will ever be looking at you

and they become careless and

dangerous. With an election

due in November Premier John

Brumby is now at least

talking about the need to do

something. It is my view,

our Government's view, that

the time is right for the

next wave of reforms to drive

integrity in our state. While

other states have been steadily recase sting

themselves as models of good

governmenters nans Victoria

it seems is stuck in

Underbelly mode. It is not

perfect. Those organisations

are not perfect but it is a

heck of a lot better than

having no real body to go to

or having this facade without

a string of we would be in a

really perilous situation. really perilous situation.

Look at Victoria, Rick

Large. Time for John Clarke

and Bryan Dawe with their

take on the Tour de France

minus the Lycra. Good

evening, thank you for your

time. Very good to be

talking to you. Where are you

at the moment? We are in an

area called (speaks

French". A town or a region?

The French call a department,

a French word meaning

department t regions are

divided up into departments. It looks

beautiful. It is gorgeous

but the weather can change

and there is a category 1

hill climb that really sorts

people out. What is it

called? Immigration. Starts

the Valley and it is

relentless. This is where

Howard fell? Yes, he

misjudged a corner on the

decent section. This is a few years ago?

Yes, a shocking result. I

mess. remember that, his bike was a

Yes, lost his seat. Terrible.

A team-mate I think broke a

collarbone. Andrews, Kevin

Andrews Yes. He was in all

sorts of trouble. He would

not see a doctor for some reason Bad

mistake. Shocking. Isn't that

where Beazley came to

grief. He said somebody

tamper would his drink

Option didn't he tamper with

it. It is difficult to see

who is doing what but that is

his gone. How is Swan going

in A few minutes down Not

riding for the Treasury team

any more? No he is with

Surplus Revision this year

and they are going through a rebuilding period, probably

not their year, maybe another

three years or something. three years or something.

What about Evans, young Chris

Evans. That a disaster t boy

from Perth going so well

What about Abbott? He is a

sprinter. He is hanging on at

the back of the peleton, he

is lucky to be here. He says

he is a sprinter. I notice he

sprinting points. Who is has not picked up any

picking a string of up? The

boys from Slick Step Shorten

and Ahbib. How is Gillard

going? She will be pleased

we are out of the mountains I

can tell you that for nothing! How bad is the

bruising? She is in a bit of

pain, there is some damage down Of how many times did

she come down? There were 6

falls, not all her fault..

two were. You cannot turn

around in the front of the

peleton and go in the other

direction without causing

confusion. Are you still in

the mountains? It is not as

steep as it was and there are

a couple of days on the flat

to come.. but the Pyrenees to

come. Yes plenty more of This

then up the Champs E lysees.

She has not announced the

date yesterday. Sir Charles

Mackerras held the

distinction of conducting all

the world's great symphony

orchestras and opera

companies has died in London

aged 84. A authority on

Gilbert and Sullivan Sir Mozart and the works of

Charles Mackerras began his

career as an oh bow player

with the Sydney symphony

orchestra in the 40s before

becoming its chief conductor.

There were many highlights

bet at home and abroad during

his brilliant 60-year career

including the official

opening concert at the Sydney

Opera House in 1973. This

surely must be one of the

Sydney Harbour ever. most spectacular moments on

It was very important to have an Australian, all

the audience and the music

goers a new occasion a new

flowering of culture in

Australia. blue chance lorp,

I have great pleasure

pretending to you as Doctor

of Music, Sir Charles Mackerras. Sir Charles

Mackerras has had a huge

impact in so many different

areas. What I love about Sir

Charles Mackerras's

music-making is he has never

confined himself to a pigeon

hole, he has cover add huge

range of repertoire. Sir

Charles Mackerras, he is in a

differ league to - I think

most musicians on this earth

that is the thing. Not just

conducting. He is an amazing

conductor but just musically

I do not know anyone quite as

musical as him I really

don't. I'm not just saying

that because he is my uncle.

Certainly as a young

musician it was great to see

there was an Australian who

had, um, conducted all this

amazing music and to watch

and hear what he did in the

pit was certainly a key part

of my formative years. It

was a beautiful tempo for the

piano but you are now too

slow. From it is bore to

nurture young people because

classical music is a great

thing to serve you know.

Unfortunately it is being - I

find in many countries

downgraded. One of the

greatest opera conductors who

has ever lived and I think

the greatest musician

Australia has ever produced

and I do not think there will

be one like him ever. My

wife says he is only happy

standing in front of a

orchestra. Thank you very

much indeed! That is the

program for tonight. Don't

forget 'Stateline' tomorrow

and the '7.30 Report' will be

back on Monday. Until next

time, goodnight.

Closed captions by CSI

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