PRESS DIGEST-Australian General News - Oct 24

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)

Mortgage funds under pressure after the sector was excluded from the Federal Government's deposit guarantee plan yesterday froze A$5.5 billion of investor funds. The move by Perpetual Investment Management, Axa Asia Pacific and Australian Unity came as Prime Minister Kevin Rudd and Treasurer Wayne Swan discussed the deposit guarantee with chief executives of the four major domestic banks. Late last night Mr Swan ruled out extending the guarantee to market linked investments such as Perpetual. Page 1.

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Australia and New Zealand Banking Group (ANZ) (ANZ.AX) yesterday posted a fall in its annual profit growth for the first time in a decade, with net profit declining 21 percent to A$3.32 billion. Chief executive Mike Smith predicted that the worst of the credit crunch would begin to ease by the end of the year, although its aftermath could stretch over the next few years. He flagged the bank's continued expansion into the fast-growing Asia-Pacific region. ANZ shares dropped 5.21 percent to close at A$18.01 in a plummeting market. Page 1.

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Groupe Danone is believed to have informed two prospective buyers of its Frucor Beverages business that it has entered into exclusive negotiations with Japanese beverages group Suntory. The A$1.2 billion offer for Frucor, which makes the V energy drink and a range of fruit juices and bottled water, moves Suntory ahead of rival Japanese bidders Asahi and Kirin. The acquisition would give Suntory a major presence in the non-alcoholic beverage sector in Australia and New Zealand, in which Coca-Cola Amatil (CCL.AX) is the dominant player. Page 1.

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The possible collapse of embattled childcare centre operator ABC Learning Centres ABS.AX has led the Federal and Queensland governments to plan for the eventuality. "We are working on contingency plans but I do not want to raise any alarm about this matter," Deputy Prime Minister Julia Gillard said yesterday. ABC Learning runs 1,200 childcare centres for about 110,000 children, accounting for 25 percent of all day care places in Australia. The company, which has a high debt burden, has this year suffered margin calls and write-downs. Page 3.

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

The Australian Federal Police's (AFP) submission to the Clarke inquiry into the case of former Gold Coast doctor Mohamed Haneef, who was cleared of links to a bungled overseas terror plot, has been published on the Internet. The submission reveals that the AFP found "jihadist" literature from a proscribed organisation and a preacher linked to al-Qaeda during a search of Dr Haneef's apartment shortly after his arrest. Dr Haneef's lawyers yesterday queried why the materials had not been revealed during their client's questioning. Page 1.

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A Supreme Court jury yesterday acquitted 35-year-old former Melbourne taxi-driver Joseph Terrence Thomas of a terrorism charge. The prosecution had charged that Mr Thomas, who trained with the Taliban in Afghanistan, had taken cash and an airline ticket from a senior al-Qaeda figure in January 2003. However, the Muslim convert, who has worked as a milkman in the lead up to the retrial, faces up to two years in prison after being found guilty of the lesser charge of falsifying his passport. Page 1.

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A seven-member expert panel investigating the social impact of drought has recommended that a mutual responsibility policy be applied to the Federal Government's drought assistance to farmers, which so far is offered with no strings attached. In its report, released yesterday, the panel proposes the aid be conditional on farmers' putting in place an appropriate plan before dryness gets to a point or a trigger point that could be described as beyond their control. While welcoming the report, the Government ruled out the proposed changes. Page 1.

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Federal Labor has deflected calls to lift stringent controls over the use of welfare payments by Aborigines in Northern Territory communities. The Government announced yesterday that besides retaining income management, it will also leave in place bans on pornography and alcohol in the 73 indigenous communities, initiated last year under the controversial Northern Territory intervention. Indigenous Affairs Minister Jenny Macklin extended the measures for another year. Page 1.

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

New South Wales (NSW) Treasurer Eric Roozendaal revealed yesterday that the state's budget was A$163 million in deficit two months into the financial year -- the first budget deficit in eight years. In a further indication of NSW's fragile financial state, Mr Roozendaal said the surplus for the previous year was just A$73 million, far less than the June forecast of A$700 million. Premier Nathan Rees told Parliament that measures being considered to address the budget hole included axing the Manly Jetcat ferry service. Page 1.

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The New South Wales Government's two main rail agencies -- Transport Infrastructure Development Corporation and RailCorp -- are at loggerheads over projects including the A$2.3 billion Epping to Chatswood rail tunnel, which is under a cloud because of excessive train noise. According to a secret internal review, disagreements between the two agencies were partly to blame for billions of dollars of projects overshooting budgets by between 30 and 50 percent. The Government said it was addressing the shortcomings. Page 1.

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Members of a House of Representatives committee that investigated the behaviour of Federal Member of Parliament (MP) Belinda Neal have complained of being inappropriately approached by the controversial politician in the lead up to the report's release. While the committee found that Ms Neal had not misled Parliament over a row with pregnant Liberal MP Sophie Mirabella, during which Ms Neal declared Mrs Mirabella's child would be born "a demon," it found Ms Neal's behaviour fell short of acceptable standards. Page 1.

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Former Australian Guantanamo Bay detainee Mamdouh Habib has claimed that an agent of the Australian Security Intelligence Organisation stood by as a United States marine threatened Mr Habib with rape. In his new book My Story, to be published next week, Mr Habib also describes his torture at the hands of Pakistani and Egyptian security agencies after his arrest in Afghanistan in October 2001. Mr Habib, whom Australian security agencies allege trained with al-Qaeda, was released from Guantanamo Bay in January 2005. Page 1.

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THE AGE (www.theage.com.au) Former Australian wicketkeeper Adam Gilchrist has questioned Indian cricket star Sachin Tendulkar's honesty and accused him of being a sore loser. Gilchrist's new autobiography goes on to describe Tendulkar's evidence, in last summer's tribunal into alleged racial slurs by Indian player Harbhajan Singh against Australian team member Andrew Symonds, as "a joke." Gilchrist maintains Harbhajan was guilty of calling Symonds "a monkey" and describes India's subsequent threat to abandon the tour as "a disgraceful act." Page 1.

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A review has been ordered into the workings of the Australian Crime Commission (ACC) by Home Affairs Minister Bob Debus. The investigation has been prompted by revelations that a file on Mr Debus had been created by ACC general manger Chris Enright after he had dinner with the minister and his wife. The file, which made reference to the amount of alcohol the minister consumed during the meal, was later leaked to the press. Mr Debus said he wanted to ensure that their [ACC] internal processes are working effectively. Page 2.

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One in four of the nation's youth is suffering from depression or other related mental illnesses, according to a new report by the Australian Bureau of Statistics. Anxiety problems were the most common ailment afflicting people aged 16 to 24, followed by alcohol and drug dependency issues. The increase in the breakdown of family structures was a major part of the problem, according to health experts. "This is a national emergency -… but I'm not sure the sense of urgency from Governments is as great as the need," a mental health expert said. Page 3.

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The Australian National Academy of Music has had its annual A$2.64 million federal funding cut for 2009. The Federal Government said the Melbourne music institution, which runs advanced courses for 55 students, no longer represents the most efficient way of delivering support for elite classical training. Academy director Brett Dean described the sudden decision by Arts Minister Peter Garrett as "heartbreaking" and vowed he would fight the decision. Page 3.

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