PRESS DIGEST-Australian General News - Aug 12

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)

Commonwealth Bank of Australia (CBA) (CBA.AX) chief executive Ralph Norris says he is unapologetic about his handling of the financial crisis, pointing out that CBA has managed to avoid the toxic debt instruments that hit many of its rivals. Although the collapse of Storm Financial earlier this year raised questions about the bank's lending practices, Mr Norris rejected his critics, saying he would "rather be respected than popular.' CBA is expected to report a strong cash profit of more than A$4 billion today. Page 1.

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Business groups have rejected Opposition Leader Malcolm Turnbull's new emissions trading proposal, warning that it would force a "substantial economic restructure' and impose higher costs on industry. The Business Council of Australia and the Australian Industry Group have both questioned Mr Turnbull's unilateral 10 percent reduction target, saying it places "extremely difficult demands on industry.' Prime Minister Kevin Rudd yesterday intensified his attack on the Coalition for failing to produce a unified policy on climate change. Page 1.

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Treasurer Wayne Swan yesterday warned that the path to economic recovery would be "long and tough,' adding that the economy could still contract in future quarters. Despite rising business confidence and improved sales figures, Mr Swan said lower commodity prices were undermining investment and employment. "There is still some way to go before we can say confidently that a sustainable recovery has taken hold,' Mr Swan told parliament yesterday. Page 1.

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The chief executive of Australia's largest private medical services group, Primary Health Care (PRY.AX), has warned that federal funding cuts will increase patient costs in a range of service areas. Ed Bateman said Primary had started reducing bulk billing at some of its medical centres because of funding cuts to pathology and to private health insurance. "We've now got to the point where the lemon's been squeezed dry,' Mr Bateman said yesterday, warning that the fee-increases were only "the first of many.' Page 1.

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

Department of Defence (DoD) Secretary Nick Warner has been appointed as the new head of the Australian Secret Intelligence Service (ASIS). Mr Warner's DoD work contract expires in December, but he could move sooner as former head, David Irvine, has joined Australia Security Intelligence Organisation as Director-General. The Rudd government is recruiting Warner's replacement, and candidates include Finance Department head Ian Watt, Defence chief audit executive David Yarra, and Victorian Department of Treasury head Grant Hehir. Page 1.

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Arnhem Land Leader Galarrwuy Yunupingu has voiced discontent about the Federal Government's intervention into remote Aboriginal communities, calling it a "form of apartheid.' Mr Yunupingu supported the move in 2007 but said he was disappointed by repeated delays. Senior Yirrkala man Djuwalpi Marika says Yolngu leaders have created their own Arnhem Land authority called "Yolngu parliament.' The dissatisfaction has disappointed Indigenous Affairs Minister Jenny Macklin, who has requested a review of the program. Page 1.

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Nine Australians on an Airlines PNG plane bound for the Papua New Guinea (PNG) town of Kokoda went missing yesterday. Foreign Minister Stephen Smith says the families of the missing seven Victorian and two Queensland passengers were notified that the aircraft, operated by Melbourne-based tour group No Roads Expeditions, had an accident. The Australian army, navy, airforce, HMAS Success, and Sea King helicopter, were deployed after a phone call between Prime Minister Kevin Rudd and PNG leader Sir Michael Somare. Page 1.

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The Chinese Government is expected to officially arrest Australian Rio Tinto Executive Stern Hu today. According to Giant & Goal Senior Lawyer Hao Jinsong, Chinese law requires the Public Security Bureau or police to officially arrest or release suspected detainees within 37 days, which has lapsed. Allens Arthur Robinson is Rio Tinto's main law firm, but the mining company does not appear to have engaged any Chinese lawyers. High-profile Beijing lawyer Mo Shaoping has offered to take on the case. Page 2.

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

The New South Wales (NSW) Police Association and victims' advocates have expressed concern about the widespread abuse of the plea bargaining system. Victims' advocates have questioned the exclusion of victims and their families from discussions on sentence reductions, prompting the NSW Government to announce a review of its charter of victims rights. Robyn Jones, the director of victims' support service VOCAL, welcomed the move, saying the charter needed wholesale review. Page 1.

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The number of Australians visiting Papua New Guinea to walk the Kokoda Track has doubled each year over the past decade, new figures show. Last year almost 6000 Australians completed the 96-kilometre trek east of Port Moresby. More than 60 tour groups operate on the track, most based in Australia. Tour operators say that, despite the recent deaths of three Australians on the trek, visitor numbers continue to increase. Page 2.

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New South Wales Opposition Leader Barry O'Farrell is being pressured by members of the Liberal Party to replace a number of his backbenchers before the election. Mr O'Farrell, who is frequently accused by Premier Nathan Rees of failing to bring more talented members of his team into cabinet, is considering replacing his deputy leader, Jillian Skinner, who is 65. However, one senior Liberal source said Mr O'Farrell needed the older members as they were his biggest supporters. Page 3.

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The New South Wales (NSW) Government has announced plans to sell a heritage-listed North Sydney park despite a Commonwealth offer to buy the site. Graythwaite Estate, a former convalescent home for war veterans, has been held in trust by the State Government since 1915. A spokesperson for Friends of Graythwaite Estate, Tim Hughes, said the NSW Government was "being totally bloody minded about its future and ignoring the heritage value of the site.' Page 3.

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THE AGE (www.theage.com.au)

The two principals at the centre of Australia's biggest Ponzi scheme, the A$50 million Chartwell Enterprises debacle, were yesterday charged with criminal offences by the Australian Securities and Investment Commission. Chartwell's founding director, Graeme Ronald, is facing more than 220 criminal counts of obtaining financial advantage by deception, while his colleague Ian Stuart Rau faces 19 charges related to dishonest conduct. Chartwell, which accepted more than A$70 million of funds from clients, collapsed 16 month ago. Page 1.

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Geelong's most senior priest, Father Kevin Dillon, has called for a review of the Melbourne Catholic Church's handling of more than 450 church sexual abuse cases over 13 years. Father Dillon's call for a review comes just a day after his boss, Archbishop Denis Hart, dismissed a similar demand from a victims' collective. Father Dillon yesterday said the church had handled too many cases without public scrutiny and was "too self-protecting for its own good.' Page 3.

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A new study has revealed that young women do not like to buy their make-up from better looking women. The research, conducted by Bianca Price from the University of South Australia, found that the women surveyed felt intimidated by more attractive sales staff, resulting in "reduced purchasing intentions.' The research defies the widely held belief among retailers and advertisers that beautiful models translate into higher sales due to their desirability. Page 3.

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Victoria Police Assistant Commissioner Stephen Fontana yesterday called for Australia's .05 blood-alcohol limit to be re-examined, saying he was not opposed to it being lowered to 02. Speaking at a binge-drinking forum in Melbourne, Mr Fontana said that alcohol was linked to a third of car accidents in Victoria and that the 0.05 limit "might need a rethink.' Although most Western countries have blood-alcohol limits between .05 and .08, a small number of Scandinavian nations such as Sweden and Norway have introduced a .02 limit. Page 3. --