PRESS DIGEST-Australian General News - Aug 6
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 central bank has indicated a cut in official interest rates in the near future, following a 1 percent slump in retail sales during June. Reserve Bank of Australia (RBA) governor Glenn Stevens said yesterday the RBA board was moving towards a 'less restrictive stance of monetary policy' to offset a slide in demand. Financial markets are betting on an interest rate hike at next month's board meeting. Page 1. --
Decisions at Australia and New Zealand Banking Group's (ANZ.AX) (ANZ) institutional division are not being conveyed fully to the board, according to an operational review commissioned by chief executive Mike Smith. Mr Smith ordered the review after the bank was caught up in the collapse of Opes Prime, with the bank's exposure to the stock-lender said to have shocked directors. ANZ warned last week its debt provision would rise by A$1.2 billion in the second half. Page 1.
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The competition watchdog has flagged mandatory unit pricing for Australian supermarkets and an overhaul of planning laws to encourage new entrants in the sector. In a six-month inquiry into grocery prices, the Australian Competition and Consumer Commission found that Coles (WES.AX) and (WOW.AX) Woolworths had a combined 70 percent share of the market, and, together with listed wholesaler Metcash, controlled the 'balance' of supply and pricing. Unit pricing requires retailers to display the price of goods per unit of measure. Page 1.
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The car industry has questioned the Federal Government's forecast revenue from the luxury car tax increase, following a sharp drop in sales of expensive cars after customers bought in June to beat the rise. Figures from the Federal Chamber of Automotive Industries show sales of vehicles above the threshold of A$57,123 dropped by approximately one-third from June to last month. The fall came amid a smaller overall car sales drop of 2.7 per cent, compared to July 2007. Page 3.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Sources within the Liberal Party say former treasurer Peter Costello will not directly challenge Opposition Leader Brendan Nelson, but will take the role if Dr Nelson steps aside. Mr Costello would also stand if anyone else challenged Dr Nelson. On the eve of a 10-day overseas trip, Dr Nelson last night refused to confirm if he had spoken to Mr Costello since the latter's return from a holiday last week, but said he would not be stepping aside. Page 1.
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Australia's baby bonus scheme and other family payments produce only a small increase in the birth rate and may even produce negative side effects, according to the Productivity Commission. A report by the commission found that the economy, job availability, and a trend towards older first-time births were all far more important factors in the birth rate. Family welfare payments cut the long-term cost of having children by between 3 and 4 percent. Page 2.
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In the wake of public pressure, the Australian Federal Police (AFP) will make public an uncensored version of its submission to the Clarke inquiry into last year's botched investigation of Indian doctor Mohamed Haneef for terrorism links. A spokesman for the inquiry said the AFP was attempting to comply with the request from inquiry chairman John Clarke. The AFP has been repeatedly criticised for ignoring advice from the Australian Security Intelligence Organisation that Dr Haneef was not a threat. Page 3.
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Tasmanian Government minister Paula Wriedt is in hospital after trying to commit suicide on Monday night. Ms Wriedt, the Minister for Economic Development and Tourism, reportedly became desperate after being confronted by allegations made by her former driver, who was reportedly also her lover. Yesterday she blamed the pressures of public life and the breakdown of her marriage for the suicide attempt. Premier David Bartlett last night confirmed he had spoken with Ms Wriedt about 'certain untested claims' on July 31. Page 3.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
The Blake Prize for Religious Art, Australia's most famous religious art prize, has again attracted controversy after Sydney academic Christopher Allen resigned from the judging panel in protest against the inclusion of a work by artist Adam Cullen. The work, a triptych depicting an almost-cartoonish Christ on the cross, carries the inscription 'only woman bleed,' inspired by a song by shock-rocker Alice Cooper. Mr Cullen yesterday said he was perplexed by Dr Allen's objections to the work. Page 1.
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A Sydney man has spoken of his shock and fear at being charged with 11 rape offences over the weekend after he was wrongly identified as a suspect in security footage that was broadcast on television. Joey de Mesa said he went into a police station to inform officers that he was the man in the footage, whereupon he was arrested and charged despite having an alibi. Police later admitted that Mr de Mesa was not the rapist, but said 'compelling evidence' had led them to charge him. Page 2.
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Just five police officers have been assigned to a New South Wales family violence unit despite the State Government promising 18 months ago that the unit would be staffed with 35 officers. Acting Police Minister Kristina Kenneally said the promise was only that the unit would have 35 officers by the end of the Government's current term in 2011. Yesterday, Opposition Leader Barry O'Farrell said it was 'another example of where [Premier] Morris Iemma's rhetoric and promises have not been matched with action.' Page 2.
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The New South Wales Government stands to gain approximately A$100 million a year by lifting the amount of office space to be built at Sydney's East Darling Harbour project. Premier Morris Iemma yesterday rejected comments by the architects who won the 2006 design competition that increasing building heights to approximately 30 storeys would give the area the feel of a privatised business park. An extra ferry terminal is also set to be included in the plans. Page 3.
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THE AGE (www.theage.com.au)
Consumer protection groups have criticised banks for continuing to offer 100 percent home loans, as falling property prices increase the risk of 'negative equity,' where mortgagees owe more to the banks than their home is worth. All four of the major banks will still lend the full amount, minus mortgage insurance, to approved borrowers. St George Bank will lend 100 percent at a higher interest rate. Consumer groups fear a similar situation to Britain, where one in seven borrowers are in danger of slipping into negative equity. Page 1.
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The Victorian Government has announced an 'executive contract' program for principals that will see the state's best principals offered lucrative salary packages in return for improving the performance of some of the state's worst schools. Mount Waverley Secondary College principal Glenn Proctor, the first principal to sign up to the program, will receive an extra A$20,000 a year for moving to the socially disadvantaged Hume Central Secondary College in Melbourne's north. Page 3.
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The Victorian Government has paid out more than A$17 million to teachers and principals subjected to stress, abuse and violence in the last three years. More than 600 teachers were forced to take stress leave between 2004 and June 2007, almost half of them for workplace stress. However, there were also more than 160 cases of harassment, 40 cases of workplace violence and 26 cases of assault by either parents or students. The Australian Education Union said teachers and principals needed more support to improve working conditions. Page 3.
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The International Olympic Committee was last night investigating a breach of filming rules inside a Beijing Olympic venue by Channel Nine reporters. The network has apologised for the 'inadvertent mistake' after it was caught filming inside the Water Cube aquatic centre, and assured the IOC the footage would not go to air. Rival Seven Network paid A$100 million for the rights to exclusive Olympics coverage. IOC member John Coates said he hoped the issue would be resolved quickly. Page 4.
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