PRESS DIGEST-Australian General News - July 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 governor of the Reserve Bank of Australia (RBA), Glenn Stevens, yesterday indicated that the board would be prepared to raise interest rates during the federal election campaign in order to tame inflation. "The board will meet, consider all the issues for the economy and do its job," Mr Stevens said. RBA board minutes released yesterday warned that a high inflation reading for the June quarter could lead to rate rise on August 3. Page 1.

--QR National chief executive Lance Hockridge has called on the Queensland government to end the confusion over the sale of the state's freight tracks. Speculation is mounting that the Bligh government may reject the A$4.85 billion bid, made by coalminers BHP Billiton (BHP.AX)(BLT.L), Rio Tinto (RIO.AX)(RIO.L) and Xstrata (XTA.L), for the tracks. Mr Hockridge yesterday said a final decision was needed to provide "clarity around going forward." Page 3.

--Film festival organisers are increasingly embracing social media to capture new audiences, reflected in strong box office sales. The Sydney Film Festival attracted record crowds in June, with box office takings up 20 percent on last year. The Revelation Perth International Film Festival also recorded attendance figures up 40 percent on last year. Hopes are high for a record turnout for the Melbourne International Film Festival, which begins tomorrow. Page 3.

--Qantas Airways (QAN.AX) has introduced new check-in procedures designed to reduce boarding time for business class passengers at its domestic airports. Smart cards will be issued to Qantas frequent flyer members, to be used for check-in, baggage handling, and boarding. Qantas executive Matt Lee said workers would be retrained under the new system, which will be trialled in Perth Airport from Wednesday. Page 5.

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

--Business leaders have called for an objective discussion about population growth, warning that paranoia over asylum seekers has been allowed to influence the debate. Prime Minister Julia Gillard yesterday said that Australia needed to reassess its migration policies in favour of sustainable population growth. "Can we really ask western Sydney to keep absorbing hundreds and hundreds of thousands of people without regard for the key issue of quality of life?" Ms Gillard said. Page 1.

--The federal election campaign focused on economic management yesterday, with both parties pledging spending cuts. Opposition Leader Tony Abbott announced a further A$1.2bn in cuts to government programs, lifting the Coalition's total savings tally to A$45.8bn. Prime Minister Julia Gillard promised that the Labor Party would not spend an extra cent of new money. Mr Abbott said the Coalition would scrap Government measures such as the mining tax and the National Broadband Network. Pg 1.

--Australia's top health standards body has controversially redrawn its official dietary guidelines, recommending caps on meat and fish intake on environmental grounds. The National Health and Medical Research Council released its new "Food Modelling System" earlier this year. The system - which recommends an "environmentally sustainable" diet with limits on meat, fish and dairy - has been criticised by health and science bodies who say it compromises on health outcomes. Page 1.

--The West Australian Water Corporation has announced the discovery of seven new drinking water bores in the remote Kimberley town of Halls Creek. Shire of Halls Creek chief executive Warren Olsen said the viable water sources should allow for new business and housing development over the coming years. "This should allow a great land supply," Mr Olsen said yesterday. Page 2.

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

--The New South Wales Ambulance Service has been accused of deliberately undermining an investigation into the murder-suicide of one of its paramedics. Trent Speering, an ambulance officer, shot his mother and then killed himself at his Sydney home in June 2008. The service engaged its internal body, the Professional Standards and Conduct Unit, to interview his colleagues before then allegedly sending "summarised statements" to police on their behalf. Page 2.

--Teachers in New South Wales (NSW) public schools are struggling to deal with the increased number of students with disabilities or special learning needs, an inquiry has heard. A NSW parliamentary inquiry has heard how teachers are failing to meet the educational needs of all their pupils because of the unmet demands of integrated special needs students. Up to 15,000 students with disabilities and 50,000 students with special learning needs are being taught mainly in mainstream classes across the state. Page 3.

--The City of Sydney Council has announced plans to recycle rainwater and wastewater for irrigation purposes. Sydney Lord Mayor Clover Moore yesterday said the city needed to improve its capacity to use recycled water and make better use of rainfall. The council has called for tenders for a "decentralised water master plan" that aims to produce more than 10 percent of the inner city's water supply from local sources. Page 3.

THE AGE (www.theage.com.au)

--For the first time in seven years, the Australian censorship body has banned a film from screening at the Melbourne International Film Festival. Film Classification Board director Donald McDonald yesterday sent a letter to Festival director Richard Moore, saying that the film - "L.A Zombie," directed by Canadian provocateur Bruce LaBruce and described as "gay zombie porn" - would be refused classification due to its graphic content and could not be screened. Page 1.

--A prominent Melbourne art dealer has criticised the art industry for failing to deal with serious incidents of fraud. Art dealer and lawyer Stephen Nall said that the industry and government "could become a laughing stock" if they failed to investigate the latest case of art fraud, involving the A$1.1 million painting "Orange Lavender bay," attributed to the late Australian artist Brett Whiteley but believed to be a fake. Authorities recently said the case was unlikely to be investigated as a complaint about the forgery had been withdrawn. Page 3.

--The Australian inventor of the black box flight recorder died in a Melbourne nursing home yesterday, aged 85. David Warren, who was originally told by Australian authorities that his invention would be useless, sold his 1957 prototype to a British company. In 1976 the International Civil Aviation Organisation made the black box device, which records cockpit conversations and instrument data, a standard piece of equipment for use by all commercial aircraft. Page 3.

--Victorian Premier John Brumby yesterday announced that the Bushfire Royal Commission would release its final report on the Black Saturday bushfires to the public on Saturday, July 31. However, Mr Brumby said that the government's response to the report would not be released for at least another month. Community consultations would be held over a number of weeks before the government made its response to the report, Mr Brumby said. Page 3.