PRESS DIGEST-Australian General News - May 26

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 Australian Securities and Investments Commission yesterday lifted its ban on the short selling of financial stocks but said it would continue to monitor the situation.

The ban was introduced in September and allowed finance companies to raise a combined A$45 billion in capital. Banking stocks suffered modest falls in yesterday's trading, with Macquarie Group posting the largest drop of 6.5 percent.

However, Credit Suisse analyst James Ellis said the full impact of the ban's lifting will play out "over the next few days.' Page 1.

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Australia's net debt is forecast to be A$75 billion in 2020, the lowest out of "all the major advanced economies,' according to Prime Minister Kevin Rudd.

Mr Rudd was yesterday forced into revealing the Treasury forecast after Opposition Leader Malcolm Turnbull questioned the Government's economic growth calculations. However, Stephen Halmarick, of Colonial First State, said he "was not sure anybody really has a strong idea what the surpluses will look like that far out.' Page 1.

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Federal Treasurer Wayne Swan has accepted responsibility for the mistakes made by the Government in its proposed crackdown on employee share schemes.

The Government's recent backdown came after concerted pressure from business and unions who opposed the mandatory upfront taxation of shares for employees earning above A$60,000 per year. Mr Swan has begun consultations with various groups to work out a new policy framework, describing it as a "commonsense thing to do.' Page 1.

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

Northern Territory Indigenous Affairs Minister Alison Anderson has called on the Tangentyere Council to accept a Federal Government offer of A$126 million to lease its town camps in Alice Springs.

"This is not about negotiation it's yes or no. This is for the wellbeing of men, women and children,' the minister said. Tangentyere was told on Sunday by Federal Indigenous Affairs Minister Jenny Macklin that the camps would be compulsorily acquired under the Northern Territory Emergency Response legislation after negotiations broke down. Page 2.

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Telecommunications company Telstra (TLS.AX) has announced it is prepared to re-enter talks with unions over new enterprise agreements, abandoning its previous strategy of a communications blackout.

Telstra indicated yesterday to the Communications, Electrical and Plumbing Union (CEPU) that it wanted to meet with union officials to discuss a "possible bargaining timetable.' However, CEPU national president Ed Husic described the gesture as "self-gratifying,' saying Telstra essentially meant "we can't be forced into anything we don't agree with.' Page 2.

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Aboriginal men have a life expectancy of 67.2 years and Aboriginal women can expect to live on average 72.9 years, according to the Australian Bureau of Statistics.

The new figures, which use a "direct' accounting method, put the life expectancy gap between indigenous and non-indigenous Australians at around 10 years, some seven years less than the figure used by the Rudd government to determine its policy. Despite the more accurate data, Indigenous Affairs Minister Jenny Macklin maintains that closing the life expectancy gap remained a "national priority.' Page 2.

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Australian director Warwick Thornton has won the coveted Camera d'Or at the Cannes International Film Festival for his indigenous love story Samson & Delilah.

Thornton is only the second Australian to win the prize for best first feature film.

"It's so incredibly emotional,' Thornton said yesterday after receiving the prize from French actress Isabelle Adjani. "Hopefully this award will help get the film out there more on an international level,' said producer Kath Shelper. Page 3.

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

Over one third of 100 of the biggest councils in New South Wales are going to have to raise rates by 80 percent to 300 percent to cover their maintenance costs, according to a survey by Review Today.

The report, which describes 37 of the councils as "financially unsustainable,' calls on the Rudd government to put the A$300 million it allocated for new local council projects to be spent on fixing the 7.8 percent of infrastructure that is currently in an unsatisfactory condition. Page 1.

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The Prince of Wales Hospital, in Sydney's Randwick, has ordered an inquiry into the death of a patient who was waiting for treatment in the emergency department, following claims by nurses that their pleas for extra help went ignored.

The New South Wales Nurses Association says that doctors attending an educational talk in the hospital refused to assist the nurses, despite the emergency department working beyond full capacity. The nurses also claim that the department head, Sally McCarthy, would not leave her office immediately to assist with the backlog of patients. Page 1.

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The Australian Institute of Criminology has found that 65 percent of Australians believed that the level of crime had risen, despite an actual decrease in the official crime rate.

The 2007 survey also found that over a third of Australians believed that a terrorist attack would happen on home soil last year. A report into the survey, by researchers Lynne Roberts and David Indermaur, says that the popular media was responsible for "the misperceptions,' with 80 percent describing the news media as a major influence on their views on crime. Page 2.

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Speculation is mounting that New South Wales Premier Nathan Rees is preparing to drop proposed legislation to approve adoption by same-sex couples in return for securing Christian Democratic Party founder Fred Nile's vote on other key issues.

Mr Rees met with Mr Nile two weeks ago, however, Mr Nile maintains "I don't know anything officially but we'd be very pleased if it's off the agenda.' However, Lee Rhiannon, of the Greens, says that the Premier "should respect the role of the Legislative Council' rather than do "backroom deals with [Mr] Nile.' Page 3.

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THE AGE (www.theage.com.au)

A Victorian policeman who assisted in the evacuation of hundreds of people from Marysville during the state's fatal Black Saturday bushfires has allegedly been called before a disciplinary committee.

Senior Constable Ken Dwight advised lawyers that his alleged breach related to the fact that he made his own submission to the Bushfires Royal Commission, using a Victoria Police letterhead. Deputy Commissioner Kieran Walshe said he was unaware of the allegation but maintained he had been told that police had "nothing to fear' from the commission. Page 2.

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Melbourne's Mill Park Secondary College yesterday told its students to stay home this week after a pupil was diagnosed with swine flu after playing football over the weekend.

In all, 13 people from Victoria have tested positive to the virus out of the 20 confirmed cases nationwide. The Royal Children's Hospital said that it had around 550 children come to the hospital with flu-like symptoms over the weekend, however, parents were being advised to seek advice from their local doctors before heading to emergency departments. Page 3.

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The Black Ice tour of Australian rock band AC/DC yesterday became Australia's fastest-selling tour with over half a million tickets sold nationwide. Melbourne fans bought 110,000 tickets for the 2010 concert in just 45 minutes, with the cheapest selling for A$100.

Due to the unexpected demand, the concert's promoters have put on a third Melbourne show at the Etihad Stadium on February 15. The band's last album, Black Ice, debuted at No. 1 in 29 countries in 2008. Page 3.

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The Nationals have declared that they will not support the Rudd government's proposed emissions trading scheme (ETS), with party leader Warren Truss describing it as a "job destroying rabid dog.'

The National Party opposition is in danger of splitting the Coalition, with Opposition Party Leader Malcolm Turnbull recently signalling that he would support the Government's proposed emissions reduction target of between 5 percent and 20 percent by 2020. The Government has said it would force a vote on its ETS legislation in June. Page 5.

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