PRESS DIGEST-Australian General News - March 17

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)

--Further foreign investment in the Australian resources sector may be at risk due to confusion over investment regulation, according to industry experts. The Foreign Investment Review Board's continuing deliberation on Chinese company Chinalco's proposed A$30 billion investment in mining company Rio Tinto has brought pressure on the Rudd government to provide better governance and clearer disclosure. A proposed Senate inquiry into the power and influence of sovereign wealth funds is expected to be approved soon. Page 1.

--Australian business groups have called for a simplification of payroll tax, arguing it would save jobs by reducing the costs incurred to comply with the current state-based regime. The Business Coalition for Tax Reform proposed yesterday that payroll tax be centralised and administered by the Australian Taxation Office under a uniform national system. "The various state taxes, the different rates, the myriad of forms that have to be completed -- it just adds to the complexity and cost," the business coalition's chairman John Stanhope said. Page 1.

--A fall in the volume of container traffic at Australian ports due to the global economic downturn is pressuring logistics companies and port operators to reduce their workforce, according to analysts. In January freight volumes at Australia's four largest ports dropped 14 percent, with a further reduction of between five percent and 10 percent forecast for the first half of the year. "The trend is definitely down," says Macquarie Group analyst Ian Myles. Page 1.

--The Federal Government's decision to cut Australia's migrant intake by 18,500 skilled workers would impact on proposed infrastructure projects, according to business groups. The Government decision was taken in response to rising unemployment. However, the Australian Industry Group says that the two-year lag between migrant applications and arrivals threatens to cut the number of skilled workers at a crucial time, with chief executive Heather Ridout warning that shortages remain critical in a number of skilled trades. Page 3.

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

--The new editor of the West Australian newspaper has given himself 12 months to make "positive changes" at the beleaguered tabloid paper. Brett McCarthy, who starts his new role on Monday, said yesterday that three magazines and inserts -- Viva, Habitat and Style -- would be cut immediately. Senior journalist Gary Adshead described Mr McCarthy, who was a former editor of the Sunday Times, as a "more even minded and thoughtful editor than the one [Paul Armstrong] this newspaper had for five or six years." Page 2.

--Pauline Hanson, the founder of the One Nation political party, has denied she is the subject of a series of nude photographs published in the media over the weekend. Ms Hanson conceded yesterday that "there is a resemblance," but was adamant the photographs, taken around 30 years ago, were not of her. Retired soldier John "Jack" Johnson claims he took the photographs of a girl named Pauline between 1975 and 1977, but left open the possibility that he was mistaken, claiming "the story has been blown up on, but I didn't lie." Page 3.

--The Coalition has voted against the Rudd government's proposed bailout fund for the commercial property sector, calling it lunacy. The A$30 billion Australian Business Investment Partnership was proposed by the Government following a warning by the Property Council of Australia that dozens of foreign banks are set to withdraw their loans to local companies investing in the commercial property sector due to the global financial crisis. The Government now needs the support of minor parties in the Senate to get the plan approved. Page 4.

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

--The New South Wales Government's proposed safety rating system for pubs and clubs has been criticised for a lack of transparency by drugs and alcohol bodies. The star based ratings system would be judged by a panel picked by the hotel industry. The Alcohol Education Research Foundation's Scott Wilson said yesterday that the proposed scheme allows the industry to regulate itself, and "appears to be a strategy of appeasement by the Government." Page 2.

--The New South Wales Government (NSW) has signalled that it will recommend a second airport within the Sydney basin, despite last year saying it preferred the Williamstown RAF base in Newcastle. The Government maintains that building a high speed train link to an airport built outside the Sydney basin would cost too much, with the Tourism and Transport Forum saying the RAAF base at Richmond now "remains top billing." NSW Government spokesman Alex Cramb says that ultimately, the decision is made by the Federal Government. Page 3.

--Australian universities are to be promoted overseas over the next nine months in a A$3.5 million campaign to attract foreign students into local higher education institutions. Students from countries including China, South Korea and India will be targeted by the campaign which aims to assist education agents in bringing international students to Australian institutions. Federal Minister for Education Julia Gillard said yesterday that she wants Australia to be seen by international students as a welcoming place to study. Page 5.

--A decision to use executive staff to move over 100 prisoners from the Cessnock jail, in New South Wales, has drawn criticism from the prison officers association, calling it evasive and secretive. The Department of Corrective Services, which is downsizing the number of inmates at the prison ahead of its privatisation, says it was forced to relocate the prisoners on Sunday night to avoid disruptions to prison visitor plans. However, Matt Bindley, of the Public Service Associations, says "they've been very evasive and secretive to date." Page 6.

THE AGE (www.theage.com.au)