PRESS DIGEST-Australian General News - April 1

Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.

THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

--The first quarter of 2008 was the worst since 1987, with the S&P/ASX200 Index losing 15.5 percent over the period. Just 35 companies in the index finished with higher shareprices than they started. Among the hardest hit companies were Allco Finance Group, early childcare chain ABC Learning Centres ABS.AX and the Rubicon property trusts. However, market analysts said the widespread re-rating of stocks was positive in the long term, as it would provide a more realistic gauge for investors. Page 1.

--The Australan Securities and Investments Commission is investigating allegations of fraud against Laurie Emini, chief executive of collapsed stockbroking firm Opes Prime. The Federal Court heard yesterday that, beginning in December last year, Mr Emini had told staff to alter share trading accounts so that favoured clients would not be subject to margin calls. Accounting firm Deloitte, appointed to act as receivers, said that by February clients owed Opes Prime as much as A$200 million. Pg 1.

--The Australian Taxation Office is set to double the number of audits of wealthy individuals in the new financial year after raising A$115.9 million so far in 2007-08 by targeting taxpayers with assets in excess of A$30 million. Yesterday, tax commissioner Michael D'Ascenzo issued 1200 wealthy taxpayers with letters warning them that ignorance of their advisors' activity was no longer an excuse. However, some tax experts countered that tax laws were often too complex for a layperson to fully understand. Page 1.

--Australia's car makers should continue to produce large cars for both the domestic and overseas markets, according to discussion papers released yesterday by the Federal Government review of the industry. Inquiry chairman Steve Bracks reminded yesterday's press conference that the industry worked on 20-year investment spans. Therefore, countries already producing small cars would remain far more competitive in that market. "There is potential to look at large cars having low emissions and having more sustainability as a result," he said. Page 1.

THE AUSTRALIAN (www.theaustralian.news.com.au)

--The office of Prime Minister Kevin Rudd is trying to organise a one-off summit meeting with Japanese Prime Minister Yasuo Fukuda before the G8 summit in July. Mr Rudd, currently on a 17-day world tour, has been criticised for spending four days in China but not visiting Japan during his trip. Japanese media sources have suggested Mr Rudd, who spent years in China as a diplomat and speaks Mandarin, is favouring that country while snubbing Japan. Australian officials said yesterday that many new ministers had visited Japan since taking office last year. Page 1.

--Aboriginal leader Tracker Tilmouth has called for urgent action on indigenous education after a new report revealed that only one in five students in remote indigenous communities met national literacy and numeracy benchmarks. Mr Tilmouth said various governments had to shed the notion that Aboriginal people should, or even could, continue to live traditional lives. 'We want economic independence; you can't do that unless we have a very good basis of education,' he said. Page 1.

--Indigenous Affairs Minister Jenny Macklin has ignored calls from Social Justice Commissioner Tom Calma to 'unpack' the federal intervention into Aboriginal communities in the Northern Territory. Mr Calma yesterday released a 10-point plan to restore what he said were basic human rights that had been restricted by the intervention legislation and to support Aborigines working to improve their lives 'in the face of government bureaucracy.' However, Ms Macklin said 'shocking' examples of child sexual abuse in some communities justified the terms of the intervention. Page 1.

--Swimmer Nick D'Arcy has been charged with assault occasioning grievous bodily harm after an altercation in a Sydney bar early on Sunday morning, just hours after he had been named in the Australian Olympic team. He allegedly assaulted former Commonwealth Games swimmer Simon Cowley, who is nursing a broken nose and jaw. D'Arcy will appear on April 21 in the Downing Centre Local Court to answer the charge. D'Arcy now appears likely to lose his Olympic spot for bringing the team into disrepute. Page 3. --

THE SYDNEY MORNING HERALD (www.smh.com.au)

--Virgin Blue VBA.AX will make Sydney the hub for its international operations, after New South Wales Premier Morris Iemma offered payroll concessions and training incentives to the airline. Virgin's V Australia will begin flights to North America from December, with fares 16 percent cheaper than Qantas. It also has plans to launch services to Asia. Virgin's headquarters will remain in Brisbane, but the Sydney hub will be the home of at least 1000 new jobs. Even more will be created if, as expected, Sydney also becomes the hub for Virgin's regional services. Page 1.

--New South Wales Liberal Party politician Ray Williams has been accused of verbally abusing a 60-year-old branch president and challenging him to a fight. John Higman, treasurer of the branch at Rouse Hill, claimed in a letter to State Opposition leader Barry O'Farrell that Mr Williams told branch president Bernie Moriarty that he would fight him, and Mr Moriarty could 'bring as many friends as he likes.' Mr Williams has denied threatening to start a fight, but confirmed there was a 'verbal altercation.' Page 1.

--Prime Minister Kevin Rudd has sought support from United States Vice-President Dick Cheney and Secretary of State Condoleezza Rice to back Australia as the site of what will be the world's largest telescope. Mr Rudd said the Square Kilometre Array telescope, worth a potential A$2.6 billion in investment, would 'turbo-charge science in Australia.' South Africa is the only other contender in the race. Almost 20 nations are part of the consortium to build the telescope, which will consist of 150 clusters of antennas spread out over 3000 kilometres and with a surface area of one square kilometre. Page 1.

--The Australian Crime Commission has arrested an international pilot on suspicion of involvement in a multimillion-dollar drug running and money laundering operation. Senior Vietnam Airlines pilot Quoc Viet Lai has been charged with 40 counts of money laundering. Lai allegedly collected proceeds from drug sales 17 times in 2005 and 2006 in Melbourne and Sydney, smuggling close to A$4 million of drug money out of Australia. The commission estimates it has stopped the sale of $1 billion in drugs and tracked A$93 million in funds leaving Australia since 2005. Page 3.

THE AGE (www.theage.com.au)

--The driver of a car that slammed into a group of teenagers, killing six of them, was yesterday sentenced to 10 years' jail. On February 18, 2006, Thomas Towle, now 36, drove around a bend in a local street near Mildura at a speed "in excess of 100 kilometres an hour." He lost control, killing six and seriously injuring four. While sentencing Towle in the Victorian Supreme Court yesterday, Justice Philip Cummins said his actions fell into the worst category of dangerous driving. Towle will serve at least seven years before he is eligible for parole. Page 1.

--The Commonwealth Science and Industrial Research Organisation (CSIRO) has attracted criticism for continuing to promote the best-selling book CSIRO Total Wellbeing Diet amid claims it increases the risk of bowel cancer. The book recommends that protein should make up 30 percent of one's daily diet and heavily features red meat, which is high in protein. However, since it was published, two major international studies, one published by scientists who work at the CSIRO, have concluded that kind of diet increases bowel cancer risk. Page 3.

--A Victorian water authority is considering joining a class action against broker Lehman Brothers Australia, alleging it was misled into investing in collateralised debt obligations, an asset class linked to the subprime crisis in the United States. First Mildura Irrigation Trust says the A$2 million it originally borrowed from the Victorian Government and invested has since fallen in value by A$750,000. Chairman Jim Belbin said the trust's board had intended that the money be invested with Australian banks. Page 4.

--Environmental groups have called for a permanent reduction in the number of lights left on in central business districts after Saturday's Earth Hour event saw a drop in power usage of 10 percent in Australian capital cities. According to Sustainability Victoria, 65 percent of an average office tenant's direct energy consumption comes from lighting. The government authority has introduced ResourceSmart, a program that aims to make commercial buildings more energy-efficient. Page 7. --