PRESS DIGEST-Australian General News - Sept 1

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)

--Surging exports have triggered the biggest reduction in Australia's account discrepancy in almost 50 years. The mining boom has boosted growth in the local economy and supported the federal Treasury's view that business investment by the mining industry will ensure strong growth for the next 12 months. Gross domestic product figures are expected to be released today and are predicted to show an increase of 0.9 percent in the June quarter. Page 1.

--The Asbestos Injury Compensation Fund established by fibre cement building material manufacturer James Hardie (JHX.AX) could be A$240 million in debt by 2015. Under a 2004 agreement between James Hardie and the New South Wales Government, the manufacturer agreed to pay 35 percent of its net operating cash flow into the fund. However, reduced payments into the fund may force the company to draw down on a loan from the government, it was yesterday revealed. Page 1.

--The independent MPs who will decide who will form government will not be offered any promises that weaken the budget bottom line, Prime Minister Julia Gillard said yesterday. The major parties are facing demands for spending promises from the independents, who have issued wish-lists before deciding who they will support. Ms Gillard said that any promises made will be publicly revealed. "Any commitment we make during this time will be offset, exactly as we did during the election campaign," Ms Gillard said. Page 1.

--Almost a third of over 1,000 companies due to report annual and interim profits results yesterday faced automatic suspension because their accounts risked being late. By 5pm yesterday almost 150 companies were still outstanding. Matt Riordan from investment firm Paradice Investment Management said that companies reporting on the last day are "the ones that do have issues." "The market is quite efficient and does make a judgment [based on results] but, typically, coming out on the last day is frowned upon and not ideal," he added. Page 1.

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

--Australian actor Paul Hogan yesterday vowed to take his five-year battle with the Tax Office to the end after being placed under a Departure Prohibition Order. Mr Hogan said he was an "ideal scalp" for the tax office and insisted he was not guilty of evading A$150 million in tax. He said he could not pay a tenth of that figure, adding that he would rather go bankrupt than pay money he does not owe. "It's just so un-Australian," Mr Hogan said. "Whatever happened to this country? Whatever happened to a fair go?" Page 1.

--Prime Minister Julia Gillard yesterday blamed the leadership and mismanagement of former prime minister Kevin Rudd for Labor's first term failure. Ms Gillard said the Rudd Government was overwhelmed with aims and challenges that proved too difficult to tackle within one term. The Government's "process of explaining our priorities and what we were doing simply broke down," Ms Gillard added, as she appealed for a second term to provide "stable and effective government." Pg 1.

--The chief executive of Weld Range Metals, Michael Naylor, yesterday said he was "embarrassed" by his past conviction for stealing more than A$8,000 whilst working at a bank. Mr Naylor, who is trying to raise A$600 million to build Australia's first stainless steel refinery, said he had never denied the 1994 conviction. He said it would be a shame if investor perceptions of the planned refinery were coloured by revelations of his criminal conviction. Page 2.

--Female graduates earn A$7,200 less than their male counterparts, according to a report released yesterday by Graduate Careers Australia (CGA), the leading authority on local graduate issues. In the three years to last year, the wage gap between male and female graduates widened to 9.5 percent. GCA senior research associate David Carroll said the findings came as a surprise. "It definitely shows that there remains some form of labour market discrimination in terms of earnings on average for women," Mr Carroll said. Page 2.

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

--Luxury retailer David Jones (DJS.AX) was close to settling a sexual harassment claim days prior to a A$37 million damages suit filed by former employee Kristy Fraser-Kirk in the Federal Court, it has been revealed. During mediation days before the claim, Ms Fraser-Kirk's lawyers, Harmers Workplace sought damages of A$8 million while the retailer had offered A$250,000 instead. Harmers reduced the amount to $850,000, a figure that the retailer agreed to, but with strings attached. Ms Fraser-Kirk then rejected the offer and proceeded with the court claim. Page 1.

--An investigation has uncovered secret favours offered to government officials by a Sydney family in exchange for multimillion dollar waterfront building leases. The latest acquisition by the Kazal family was an exclusive property at The Rocks, in which taxpayers were charged an estimated A$6 million to turn the heritage building into a nightclub. It has been revealed that the Sydney Harbour Foreshore Authority awarded an agreement for the lease without having to compete at a public tender. Page 1.

--An Australian study of young people reveals those who get by on very little sleep are more likely to develop mental illnesses. The study of 20,000 people between the ages of 17 and 24 found those who slept less than five hours a night were more likely to become psychologically distressed. Professor Nicholas Glozier from the University of Sydney, who researches in sleep medicine and psychiatry, yesterday said: "Sleep disturbance and in particular insomnia is a predictor of later development of depression and possibly anxiety." Page 3.

THE AGE (www.theage.com.au) --Victorian Premier John Brumby yesterday said a controversial new rail line through Melbourne's west will be built "come hell or high water." Mr Brumby has been accused of treating affected residents - some of whom could have their homes bulldozed for the construction - with "contemptuous disregard." Mr Brumby said the project "needs to happen," despite opposition from residents, the Coalition, and the Greens. Page 1.

--Criminals caught breaking into homes when occupants are present could face higher sentences. Victoria's Director of Public Prosecutions Jeremy Rapke QC, has directed prosecutors to call for harsher penalties for aggravated burglary offences. A woman was yesterday sentenced to just two years over what a judge called a "cruel, degrading, terrifying ordeal." The woman bound and gagged a burns victim before dousing him in kerosene and forcing him to eat dog food. Page 2.

--A new proposal has been submitted for a new A$400 million casino and convention centre complex in the Victorian city of Mildura. The Victorian Government has established an interdepartmental committee to consider developing the second casino, following the lapse of Crown Casino (CWN.AX)'s exclusivity deal. Victorian Gaming Minister Tony Robinson yesterday told the Australian Broadcasting Corporation Radio that a second casino would benefit the state if it met certain requirements. Page 3.

--Department of Transport data suggests the Victorian Government's Victorian Transport Plan is likely to cost A$6.6 million. An advertising campaign to publicise public transport improvements had incurred A$5.5 million in costs by the end of June, with a further A$1.1 million in expenses to come in this financial year. Page 5. --