PRESS DIGEST-Australian General News - Aug 11

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)

Doubts have emerged about whether Labor's fiscal stimulus spending spurred growth as fast as initially planned. Federal auditors have confirmed that Treasury revised its growth forecasts last year in the light of delays to the stimulus, raising questions about the government's claim that its spending program added 2.75 percentage points to economic growth in 2009-10. The government assumed that the cash would be spent by the deadlines set in February 2009; but the payments were made much later than scheduled. Page 1.

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Rising food prices, particularly higher wheat, barley and corn prices, will come into effect over the next few months as food producers pass on rising costs. A drought in Russia, one of the world's biggest wheat exporters, has spread fear of production shortages and pushed the wheat price up 60 per cent since July. David Farley, managing director of Australia's biggest cattle producer, Australian Agricultural Company, said "[Higher prices] are going to flow through to your load of bread and your husband's bottle of beer." Page 3.

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A monthly business survey released yesterday by National Australia Bank (NAB.AX) reveals that labour costs increased by a record 2.2 percent last month. The mining boom has fuelled demand for labour and pushed the unemployment rate down to 5.1 percent, its lowest level since January 2009. Data to be released by the Australian Bureau of Statistics tomorrow is expected to show the jobless rate held steady in July for the third successive month. Page 4

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Australia's A$1.5 billion apple industry is under threat after the World Trade Organisation (WTO) ruled that its 90-year-old ban on New Zealand apples may have breached international trade agreements. The WTO on Monday said Australia's ban was not backed by adequate scientific evidence, but Australian officials say letting in New Zealand apple's risks introducing fire blight, European canker and apple leaf curling midge into Australian crops. Both Labor and the Coalition have pledged to fight the WTO decision. Page 5

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

The taskforce formed to investigate the A$16.2 billion Building the Education Revolution (BER) program released its interim report last week. Figures submitted to the taskforce show that the New South Wales Government has budgeted to pay almost double what Catholic schools were charged for the same buildings under the Federal Government's schools stimulus program. Page 1.

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Prime Minister Julia Gillard said yesterday a re-elected Labor Government would purchase additional water allocations to save the Murray-Darling Basin. This would cost more than A$1 billion above the A$3.1 billion already allocated for Australia's largest river system. Executive director of the National Farmers Federation, Ben Farghar, welcomed the news. "Today's announcement is certainly a good one and reduces the level of uncertainty for irrigators," Mr Farghar said. Page 1.

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Labor risks losing up to 16 seats in marginal electorates in New South Wales (NSW) and Queensland, while any gains in South Australia and Victoria are likely to be offset by a hostile Western Australia. The latest figures from Newspoll reveal major differences in voter support between NSW and Queensland. It is possible that Labor could win the most votes nationally, but lose enough seats to be out of office. Page 1.

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United States commander Colonel Jim Creighton has warned of more Australian casualties in the Oruzgan province given the possibility of Taliban insurgents moving there from more violent areas of Afghanistan. Colonel Creighton was asked if he expected the Australian death toll in Afghanistan to rise, and responded: "Yes, I think it's likely but I don't know how big that rise will be." Seventeen Australian soldiers have died in Afghanistan. Six of those were killed this year, and 45 were injured. Page 2.

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

Prime Minister Julia Gillard will make the biggest single funding announcement of her campaign today and pledge A$2.1 billion to build a long-awaited A$2.6 billion 14 kilometre rail link in Sydney's West. Federal Transport Minister Anthony Albanese said the Parramatta to Epping rail link would not fix all congestion problems in the west, but it would be an important step. "You can't solve all of Sydney's transport needs in one step," Mr Albanese said. Page 1.

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The Supreme Court heard yesterday that Keli Lane, 35, may have killed her newborn daughter at the Sydney Olympic site because she did not want her water polo ambitions derailed by having to bring up a child. Ms Lane's family and friends were not aware that she was pregnant. On September 12, 1996, she had the birth induced, then discharged herself from hospital on September 14, and allegedly murdered Tegan in the three hours after leaving hospital. Ms Lane later attended a friend's wedding that night. The trial continues. Page 3.

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New South Wales Police yesterday released their secret safe driving policy, but only one of the nine reasons as to why they may terminate a pursuit was disclosed. Police refused to release any part of the policy in January this year, after a toddler was killed in a pursuit. However new laws require the release of information unless there is an "overriding public interest against disclosure." The only reason disclosed for terminating a pursuit is if there is reason to believe the information received from police involved is incorrect, or inaccurate. Page 3.

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Investigations by the Police Integrity Commission (PIC) have uncovered under-reporting of "improper associations" by New South Wales (NSW) police, and some members of the force have been forced to resign. In a submission to a NSW parliamentary inquiry into improper associations of members of the police force yesterday, the PIC revealed that "very few police officers with a known improper association made a written declaration regarding the association." The NSW Ombudsman said: "The low level of compliance … is disturbing." Page 5.

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THE AGE (www.theage.com.au) St Kilda Australian Football League player Andrew Lovett yesterday faced a committal hearing at the Melbourne Magistrates Court on two counts of rape. A woman claimed that Lovett raped her at former St Kilda player Jason Gram's apartment on Christmas Eve last year. The woman told Gram that she had thought she was having sex with him, and that she had "no interest…whatsoever" in Lovett. Page 1.

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Right-wing talk radio station MTR has completed its first full ratings period to emerge as Melbourne's worst-performing station. The station, which launched in April, attracted an average audience of just 8000 people, around 1.3 percent of available listeners. The station's breakfast host and program director, Steve Price, yesterday said "we all knew it would be hard, so we're not looking over our shoulder." Page 2.

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Victorian Police Minister Bob Cameron yesterday apologised for causing a car accident that put a 34-year old woman in hospital. The accident occurred when Mr Cameron pulled out in front of an oncoming car in foggy conditions on the Old Calder Highway yesterday. Mr Cameron, who will be fined A$239 for failing to give way, said he would send flowers to the woman, who has since been discharged from hospital. Page 3.

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Federal Environment Minister Peter Garrett yesterday said that the Government, if re-elected, would accept an offer to incorporate 1228 hectares of land into Kakadu National Park from the land's Aboriginal traditional owner, Jeffrey Lee. Mr Lee, who earns A$1000 a fortnight as a ranger in the national park, could have become one of Australia's richest men if he had allowed uranium mining on his land. Page 5. --