PRESS DIGEST-Australian General News - Oct 21

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 Federal Government has rejected calls to revamp its A$110 billion bank funding guarantee, and decided to wait for banks to wind back the scheme. Treasury is still watching the program, and ministers have not dismissed the chance that minor amendments might be made. By comparison, the Reserve Bank of Australia has supported a guarantee roll-back. Bank of Queensland (BOQ.AX) chief executive David Liddy says the guarantee has cost his bank A$10 million in lost profits. Page 1.

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The Reserve Bank of Australia appears to be contemplating an interest rate rise above emergency levels, and the market forecasts show that an official cash rate of 3.75 percent is likely by Christmas. United States Federal Reserve chairman Ben Bernanke warns that rolling back support for economic activity would require careful consideration. Macquarie Securities analysts say that China's predicted growth for 2010 would be 10.3 percent – up from 8.9 percent. Benchmark S&P / ASX 200 was up 53.4 points. Page 1.

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Taxation inspector-general Ali Noroozi is reviewing 60 alleged "U-turns' undertaken by the Australian Taxation Office (ATO), where the authority seemed to change longstanding views of tax law. ATO dismisses claims that it had "backdated any changes.' Mr Noroozi has downplayed business sector requests for a new ATO advisory board to be formed by private sector representatives. Meanwhile, Assistant Treasurer Nick Sherry has released updated data on Project Wickenby's investigations into offshore tax avoidance. Page 3.

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The Rudd government is preparing to give up to A$2 million in funding and management skills, in order to boost innovation among enterprises. Industry Minister Kim Carr says the global downturn has had a "profound impact' on the ability of companies to source finance and expertise. Innovators will have access to early-stage commercialisation grants, under the Government's A$190 million Commercialisation Australia program, ranging up to A$2 million. The amount would need to be repaid upon successful project completion. Page 5.

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

The Royal Australian Navy-owned Collins-class submarines face significant operational limitations, after "crippling' mechanical and maintenance problems. There are claims among some senior engineering experts that Swedish-supplied Hedemora diesel engines may need to be replaced, and the Defence Materiel Organisation has placed Collins boats at the top of its agenda for "projects of concern.' Senior Defence staff are also worried about the productivity of government-owned builder ASC. Page 1.

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Prime Minister Kevin Rudd and his Indonesian counterpart, Susilo Bambang Yudhoyono, have held high-level discussions about how to curb the influx of asylum boats to Australia. The move comes in light of Australia's move to rescue some 78 Sri Lankan asylum-seekers, who are currently staying aboard Australian Customs vessel Oceanic Viking. Indonesian Foreign Ministry spokesman Teuku Faizasyah warns against reports that a deal had been made to take the asylum-seekers. Page 1.

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Deputy Prime Minister, and Workplace Relations Minister, Julia Gillard has amended regulations for assessing workplace agreements on publicly funded building projects. According to documents obtained by The Australian, the Construction Forestry Mining and Energy Union noticed the rule changes weeks before employers were informed by the Deputy Prime Minister's department. The Master Builders Association has written to Ms Gillard, demanding that the change be reversed. Page 1.

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Student visas are being used to smuggle people into Australia via a network of "unscrupulous migration and education agents, landlords and employers. IDP Education Australia chief executive Tony Pollock says there is a "highly integrated chain' of misrepresentative and exploitative education and migration advice, with access to "dodgy' colleges, part-time work, and accommodation. An Indian migration agent says it is "common practice' for agents to recruit students, and provide "hefty high-interest loans.' Page 2.

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

Poker machine players will be forced to limit the amount of cash they risk when gambling. The Productivity Commission's draft report will highlight the social expense and questionable economic value of Australians spending A$18 billion annually on gambling. Monash University health social science senior lecturer Charles Livingstone says there are technological means to restrict problem gambling; for instance, the Norwegian Government has implemented smart cards that only let gamblers lose 60 Euros (A$97) per day. Page 1.

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Australian Industry chief executive Heather Ridout blames "shrill politics' surrounding asylum seekers for causing the "worst possible outcome.' "Kevin Rudd has softened the (asylum seeker) policy but he's trying to play a hard line,' Ms Ridout says. Australian Workers Union national secretary Paul Howes has called on the Prime Minister to set an example by being more compassionate. Opposition Leader Malcolm Turnbull continues to blame the Government's decision to scrap the Pacific solution and temporary visas. Page 2.

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Landlords who have swimming pools, including those on waterfront properties, will be required to fence them off. The move comes after the Victorian Government undertook its first major review of the 17-year-old Swimming Pools Act. The legislation gives local government the authority to enter a property if an owner does not repair a faulty fence. Local Government Minister Barbara Perry says the Government is still considering ways to introduce mandatory childproof barriers around pools built before 1990. Page 3.

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Higher School Certificate (HSC) students were asked yesterday to respond to the global recession, and contemplate strategies for reducing the number of work hours that business managers offer staff. Blakehurst High School business studies teacher Peter Slater says that enrolments in business classes have almost doubled for 2010 to more than 60 students, compared with this year's 32 students. Students Evy Kefalas and Kelly Nikolaou found the first day of HSC exams most difficult. Page 3.

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THE AGE (www.theage.com.au)

A Victorian couple face potential deportation to China after admitting to beating their 11-year-old son with tree branches. The Melbourne Magistrates Court yesterday heard that the boy, whose identity has been suppressed, had had his hands and feet bound and socks stuffed into his mouth after misbehaving at a school open day for prospective students. The parents, who are seeking permanent residency and cannot speak English, told police that they were "unaware they could not do what they did in Australia.' Page 3.

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The Federal Opposition has claimed that the Royal Australian Navy had known that a sex competition run by three crewman was false and that nothing was done to set the record straight. According to Opposition defence spokesman David Johnson, the "shoddy' treatment by the navy may have irreparably damaged the sailors' careers. Senator Johnson also said the claim that the three sailors had run a competition to see how many female sailors they could sleep with had been fabricated by an aggrieved shipmate. Page 3.

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A panel of educators and policy leaders have endorsed McDonald's involvement in school, despite exposing children to brand advertising. A conference in Melbourne heard yesterday that the role of governments in education was limited, and the use of corporations could help to boost the education system. Former dean at Melbourne University Brian Caldwell said this type association was "a small price to pay' if it helped children. The panel highlighted the work done by McDonald's with its online maths tuition program. Page 3.

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WorkSafe Victoria general manager Eric Windholz was forced to apologise, after making an "offensive speech' in which he wore a blonde wig and made comments regarding the need for women's policy. Mr Windholz is believed to have worn the wig while addressing the farewell of one of his employees Jill McCabe, who was departing to take up a position with State Government's Office of Women's Policy. Several attendees at the farewell complained that Mr Windholz comments were inappropriate and demeaning to Ms McCabe. Page 3. --