PRESS DIGEST-Australian General News - July 29

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)

National Australia Bank (NAB) (NAB.AX) and stockbroking firm Goldman Sachs JBWere (GSJBW) are expected to soon announce a joint-venture. The deal will mark the return of Australia's major banks to the full-service broking business, which NAB was last involved in more than 18 years ago through broking firm AC Goode. NAB and GSJBW are believed to have been in discussions for the past six months, and NAB is expected to emerge with a stake of up to 80 percent. Page 1.

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Glenn Stevens, the governor of the Reserve Bank of Australia, yesterday said "the downturn we are having may turn out not to be one of the more serious ones of the postwar era." Mr Stevens raised concerns about a possible housing bubble driven by Federal Government incentives and low interest rates. Finance Minister Lindsay Tanner said the Government had taken this into consideration when deciding to remove the boosted first home-owners grant by the end of this year. Page 6

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The Federal Government has reached a deal with union leaders which will see federal government agencies forced to take issues such as social and environmental factors into account when awarding contracts. The deal will also see the Industry Capability Network receive A$8.5 million in additional funding over the next four years to help companies bid for contracts both within Australia and overeseas. The Australian Industry Group has given its backing to the new policy. Page 3.

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Environmental group Do Something is today launching its "PaperLessAlliance," seeking to reduce the amount of commercial mail sent within Australa each year. The group's fouder, Jon Dee, says "With Australia Post looking to increase its postal charges, now is a good time for business to review why they're putting so much money in the Australia Post bottom line instead of their own." Mr Dee also described telecommunications group Telstra (TLS.AX) as a "good role model" for business by charging A$2.20 for sending paper bills. Page 3.

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

-- A reporter attacked in Sydney last weekend has rejected claims in the Indian media that she was targeted due to racism. The reporter, a long-time resident of Australia, was attacked after working undercover to expose corruption within the international student and migration sectors. The reporter denied that the attack was racially motivated, saying "My attacker looked like an Indian person and I was threatened in Hindi." In recent months, sections of the media in India have labelled Australia and Prime Minister Kevin Rudd as racist. Page 1.

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The global economic crisis has wiped out A$191 million of investment income at the University of Melbourne, causing it to axe 220 staff positions and forcing some to take early retirement. Vice-chancellor Glyn Davis has expressed his "sadness" and said there was no alternative to an "economic response program." However, Ted Clark, from the National Tertiary Education Union, yesterday argued that "the global economic crisis and the downturn in the stock-market returns isn't part of how the university staff are paid." Page 1.

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Shane Kent, a Melbourne Muslim convert who was due to stand trial in the Victorian Supreme Court yesterday, has pleaded guilty to two counts of terrorism charges in what seemed to be a last-minute deal with the prosecution. Mr Kent pleaded guilty to "intentionally belonging to a terrorist organisation" and "recklessly making a document connected with preparing a terrorist act." A more serious accusation of intentionally giving support to al-Qaida was dropped. Page 3.

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The future of the Northern Territory (NT) Labor government may be under threat unless the performance of a A$700 million indigenous housing program is improved. NT Indigenous Affairs Minister Alison Anderson last week warned Chief Minister Paul Henderson that she would bring down the government after being told that the program would create only 300 houses. However, Ms Anderson yesterday said she had received assurances that 750 houses would be built through the Strategic Indigenous Housing and Infrastructure Program. Page 3.

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

-- This year the private health insurance rebate will cost the Federal Government nearly A$4 billion. The National Health and Hospitals Reform Commission yesterday said that the rebate appears to be creating an "unbalanced" health system that disadvantages those without private health insurance. Treasury Secretary Ken Henry is currently running a broad review of taxation, which is likely to place the rebate under strong scrutiny, given it has long been disliked by Treasury. Page 1.

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A 15-year-old Australian girl, Brenda Lin, whose family were murdered earlier this month, has decided to reopen the family's newsagency this week before selling the business. Ms Lin's deceased brothers, Henry and Terry, have been remembered by staff and classmates from their schools, with Epping Boys High School observing a minute's silence for Henry. Detectives are continuing to review evidence from the crime scene and autopsies but have not publicly commented on details. Page 1.

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On June 25 truck driver Bob Knight was killed as he drove his truck through Milperra by a stray bullet from a car-park shoot-out. Yesterday police arrested two teenagers, charging a 16-year-old with concealing a serious offence, and a 17-year-old with affray relating to an altercation. Detectives are now investigating links between the shooting and an earlier incident at the North Terrace shopping centre in Bankstown involving around six young men. Page 3.

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Australian researchers have developed the first ever malaria vaccine to use the whole parasite. Analysts report that the live vaccine has been genetically altered, making it incapable of entering the blood stream. Alan Cowman from the Walter and Eliza Hall Institute state that "the vaccine will give people a live parasite which can't cause malaria," allowing individuals to develop antibodies and gain immunity from the disease. The vaccine will be tested on American volunteers early next year. Page 3.

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THE AGE (www.theage.com.au)

-- Australia's next fire season could start in November and burn with greater intensity. A leaked Department of Sustainability and Environment report by fire management officer Peter Brockhoff says fire prediction will be less accurate and underestimate any danger. Chief fire officer Ewan Waller yesterday confirmed the report and efforts to warn affected areas. The Victorian State Government will receive the Royal Commission into the Black Saturday fires' interim report by 17 August. Page 1.

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Australian Deputy Prime Minister Julia Gillard has won the political battle over changes to building industry regulations, with the Australian Council of Trade Unions (ACTU) telling a Senate inquiry it would support the passge of the laws, with amendments. The ACTU says it remains opposed to the inclusion of coercive powers in the legislation, but would support amendments which would see those powers only enabled when there is a strong public interest reason. Page 1.

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Kangaroo meat producers met in Brisbane yesterday to discuss developing new products and new markets following a Russian decision to suspend buying kangaroo meat. Russia buys 70 percent of Australia's kangaroo meat and is blacklisting meat imports from 30 countries due to quarantine issues. Barbara Wilson, chief executive of Safe Food Queensland, admitted that the Australian kangaroo meat industry did "depend substantially on exporting manufactured meat for processing in Russia." Page 3.

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The Australian Competition and Consumer Commission (ACCC) has told the Federal Court that the rates claimed in an advertisement for Boost pre-paid cards would require a card user to make a continuous 31-hour phone call. The ACCC has asked the court to pronounce the claims illegal, order Boost to run corrective advertisements and notify its 20 largest competitors of the ruling. Boost is a partner of the Optus-owned Prepaid Services. Page 3. - -