PRESS DIGEST-Australian General News - June 25

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)

Prime Minister Julia Gillard yesterday pledged to revive federal Labor, saying the Government had "lost its way" under Kevin Rudd. In a bid to revive Labor's political fortunes, Ms Gillard outlined policy shifts in three major areas. Ms Gillard acknowledged public anxiety about border protection, promised a revival of the emissions trading scheme, and said she would take a more conciliatory approach to negotiations with mining companies over the resources super profits tax. Page 1.

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Federal Opposition Leader Tony Abbott yesterday suggested his new opponent, Prime Minister Julia Gillard, was beholden to factional bosses and lacked a mandate from the Australian people. Mr Abbott said that Ms Gillard and her new deputy, Treasurer Wayne Swan, shared responsibility for many of the failed policies of the Rudd government. "They've changed the salesman but they haven't changed the product," he said. Page 3.

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Federal Finance Minister Lindsay Tanner surprised many in his own caucus when he announced his resignation yesterday. Mr Tanner, regarded by many as Labor's best economic communicator, said he would not recontest his seat at the forthcoming election because he wanted to spend more time with his family. Junior economic minister Craig Emerson is tipped to take up the cabinet position vacated by Mr Tanner. Page 3.

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Prime Minister Julia Gillard last night said she would discuss her options for a cabinet reshuffle with colleagues over the weekend. Ms Gillard insisted that she had made no deals with factional leaders to garner their support for her tilt at the leadership. However, some Labor parliamentarians yesterday expressed concern about the elevation of power broker's Mark Arbib and Bill Shorten to senior positions. Both men had engineered the leadership change. Page 5.

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

The mining industry has accepted Prime Minister Julia Gillard's offer of a truce and new negotiations for the proposed resource super profits tax by pulling it's A$100 million advertising campaign. Minerals Council of Australia chairman Ian Smith yesterday indicated that a compromise was possible, saying "it's very possible that together the government and ourselves can come to some conclusive outcome." Page 1.

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The chief executive of Fortescue Metals Group, Andrew Forrest (FMG.AX), yesterday said Kevin Rudd had been the victim of "very bad advice" from Treasury secretary Ken Henry over the resources super profits tax (RSPT). Dr Henry, who proposed the 40 percent levy in his taxation review, had "blood on his hands," Mr Forrest said. Mr Forrest welcomed Julia Gillard as the new Prime Minister of Australia, although he warned that she had been a "passionate advocate" of the RSPT only a few weeks ago. Page 2.

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Prime Minister Julia Gillard yesterday said Australia needed a price on carbon, but only after a "community consensus" for action was established. In her first press conference as Prime Minister, Ms Gillard admitted her role in the decision to delay the Carbon Pollution Reduction Scheme. "I came to that decision because I fundamentally believe that if you are going to restructure our economy so that we can deal with a carbon price, then you need community consensus to do so," she said. Page 2.

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Kevin Rudd's decision to re-contest his Brisbane seat of Griffith and stay on in Parliament defies modern political tradition, analysts say. In his departing speech yesterday, Mr Rudd dedicated himself to the re-election of the government that had brutally dumped him just hours earlier. "It is a good government with a good program, and it deserves re-election, "Mr Rudd said. The former diplomat is tipped to be offered the foreign affairs portfolio in Ms Gillard's cabinet reshuffle. Page 5.

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

Mining and business industry groups have cautiously welcomed the ascension of Julia Gillard to the position of Prime Minister. The Association of Mining and Exploration Companies yesterday pulled its advertisements against the resources super profits tax (RSPT), warning it would reintroduce them if negotiations were not genuine. The Business Council of Australia said the change of leadership allowed a rethink on the RSPT. Page 7.

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Punters are strongly backing Julia Gillard to lead Labor to victory in the forthcoming election, bookmakers say. Until this week, about 95 percent of political punters were putting their money on the Coalition, with bets as high as A$15,000 for Tony Abbott to win the election. But Julia Gillard's rise had seen the tide of cash turn just as strongly in the other direction, said Bill Richmond, from Sportingbet. The latest election odds from Centrebet have Labor at A$1.35 and the Coalition stretching out to A$3.10. Page 7.

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The first BioBanking site in New South Wales (NSW) risks being degraded by a BHP Billiton (BHP.AX) coal mine that could cause the ground to loses its biodiversity value. The site, near Douglas Park, about 20 kilometres south of Campbelltown, was set aside by the NSW government to be conserved so the equivalent grasslands in western Sydney could be developed for housing. Page 11.

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The police investigation into rumours about the former New South Wales police minister, David Campbell, will be scrutinised by the Police Integrity Commission. In 1996 Mr Campbell was linked to an illegal pyramid investment scheme being investigated by the Office of Fair Trading. Although Mr Campbell was never charged over the matter, the Police Commissioner, Andrew Scipione, tried to refer the allegation to the Independent Commission against Corruption. The Commission declined to investigate. Page 12.

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THE AGE (www.theage.com.au) Prime Minister Julia Gillard has reaffirmed Australia's commitment to the war in Afghanistan, praising Kevin Rudd's decision to commit extra forces to fight the Taliban. In a bid to dispel fears she would be beholden to the Left of the Labor Party, Ms Gillard also championed Australia's alliance with the United States, saying the country continued to be "so important to our nation." Page 5.

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Refugee advocacy groups yesterday urged Julia Gillard to resist taking a hardline on asylum seeker issues, saying the Government should return to a policy based on compassion. However, Ms Gillard said she empathised with Australians who were worried by the number of unauthorised boats reaching Australia. "This country is our home, so we've got a responsibility to manage our borders," she said.

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A report by Victoria's Office of Police Integrity has found that inadequate staffing at police stations with 24-hour jail cells has breached the Charter of Human Rights and Responsibility Act. The report, tabled in the state's parliament yesterday, said there had been little change since the office first revealed problems with the supervision of prisoners in a 2006 report. Page 12.

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A raid by Victoria Police's ethical standards department on the Brighton criminal investigation unit has found that evidence in a rape case against Australian Football League player Stephen Milne from 2004 had gone missing. On Monday, former detective senior constable Scott Gladman claimed that he was pressured to not pursue evidence against the St Kilda footballer. Page 12.

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