I want to deal with it [the Iraq issue] head on... -- PM Tony Blair, 28 Sep 2004. Last hurrah. While Mr Blair admits he was wrong about WMD and terrorism, he doesn't apologise for terrorising Iraq to remove its ruler. That's fine, sir... you can make your protests... -- PM Tony Blair, 28 Sep 2004. Mr Blair was happy to be interrupted by an anti-war protestor at the annual Labour conf. I'm ready to lead... he's ready to leave. -- Opp'n leader Mark Latham, 29 Sep 2004. Labor's still harping on the PM being 65 years old old old. ---------------------------------------- Tue, 28 Sep 2004. Oil price hits $US50/bbl Unrest in oil producing countries has unsettled traders. NY (AFP/Reuters). Crude oil futures hit $US50 in electronic after-hrs trade in New York, setting a new record as supply worries intensified. In regular trading the Nov benchmark contract for light sweet crude on the NY Mercantile Exchange rose 76 US c to $US49.64 a barrel, the highest closing price in the 21 y history of oil futures trading on the exchange. Traders cited unrest in Nigeria and Saudi Arabia, which spooked traders already nervous about a supply squeeze. In London the price of reference Brent N Sea crude oil for delivery in Nov climbed 50 c to close at $US45.93 after hitting a record peak of $US46.28, the highest level since the London market began trading oil in 1980. Global supplies have risen strongly this y but are still straining to meet the fastest demand growth in 24 y. The lack of a supply cushion has reinforced the view among some investors that oil at $50 is not overpriced, despite a 50% jump in crude prices since the start of the year. In Nigeria, rebels seeking political reforms in the impoverished oil-producing Niger Delta forced the closure by Royal Dutch/Shell of 30,000 bpd as a security precaution. The militants, threatening output from the country that pumps 2.5 mn bpd, said at the weekend they would seek to extend the uprising across the W African producer's entire S delta oil region. Separately, Nigeria already has been forced to cut back output from surge capacity to prevent long-term damage to its aging facilities, the 1st sign that efforts by OPEC countries to quell prices by squeezing out extra output may not be sustainable. Extra crude from OPEC, now pumping at a 25-y high, has failed to make any impact. Uncertainty over supplies from YUKOS, Russia's top exporter, also is supporting prices. YUKOS last wk trimmed deliveries to China. In Saudi Arabia, clashes between security forces and suspected Al Qaeda followers served as a reminder of the threat to stability in the world's biggest producer. Record oil prices hit US markets Oil prices have climbed to new levels overnight further undermining sentiment on American equity markets. NY. In NY trade the benchmark futures contract for crude has been as high as $US49.75/bbl, and $US50 in electronic trade. That has not been topped in the 21 y of oil being traded on the New York Mercantile Exchange. It surpasses the previous record high set on Aug 20. The market is being spooked by unrest in Nigeria and Saudi Arabia as well as the situation in Iraq, where US Secretary of State Colin Powell now concedes the insurgency is worsening. At the same time oil inventories in the US have been affected by a series of hurricanes. The White House says the Dept of Energy is still considering whether to release supplies form the Strategic Petroleum Reserve. On the NYSE the Dow average closed below 10,000 points. It has finished 59 points down at 9,989. The hi-tech Nasdaq market has lost 1% of its value, or 20 points, to close at 1,860. Earlier the UK sharemarket also gave up ground. London's FT-100 index has ended the session 37 points lower at 4,541. Yesterday the Aussie market edged lower. The All Ords slipped 3 points to 3,634. Telstra shares rose more than 1 per cent to $4.70 after the telecommunications carrier announced details of a $750 mn share buyback. Woodside Petroleum benefited from higher oil prices to hit $19.75 at the close. At 7.45 am the Aussie dollar was being quoted at 71.35 US cents. That is up almost 1/4 of a cent on yesterday's local close. On the cross rates it is at 0.58 Euros, 79.36 yen, 39.42 pence and against the NZ dollar it is at 1.07. The gold price is at $US408.65/oz. Oil and W Texas crude futures are now sitting at $US49.56/bbl. Parmalat founder released ahead of hearing Parma (Reuters). The founder of scandal-struck dairy group Parmalat, Calisto Tanzi, has been released from house arrest, a wk before prosecutors are expected to resume their push to put him on trial. Tanzi, 65, took a brief stroll in the garden of his house and waved to photographers and reporters but said nothing in his 1st appearance since he was released from jail into house arrest in Apr. He was detained on Dec 27 as one of the world's biggest financial scandals erupted at the Italian dairy and food group which had operations in 30 countries from Brazil to AUS. A Milan judge will begin considering next wk whether to order a trial of Tanzi and other former Parmalat executives, the company's auditors and some bankers plus 3 financial institutions on charges of market rigging and other offences. Judge Cesare Tacconi is scheduled to hold a preliminary hearing behind closed doors. Tanzi has a heart condition and has been taken to hospital several times since his arrest. Parmalat is now under Admin. It is planning to swap much of its $US24 bn in debt into equity and relist on the stock market next y. Parmalat employs about 1,400 people in AUS, mainly in Qld. James Hardie executives stand aside Peter Macdonald will continue to work for the company. SYdney. James Hardie's chief executive and chief financial officer have stood aside after the inquiry into the troubled building products company. James Hardie has announced the move in response to the NSW Special Commission of Inquiry into its under-funding of compensation foundation for victims of asbestos-related illnesses. The inquiry found at least $1.5 bn extra was need to continue compensating victims. "Effective immediately, Mr Peter Macdonald is standing aside as chief executive officer and Mr Peter Shafron is standing aside as chief financial officer," James Hardie said in a statement. "An acting CEO and acting CFO will be appointed. "The board expects to make announcements in respect of these appointments in due course." Both men will continue to work for James Hardie on what are termed "company projects". Mr Macdonald will run business operations from the US, where the bulk of James Hardie's profits are now derived. The statement acknowledged the company's moral obligation to make good a shortfall of at least $1.5 bn. "The Board has taken steps to address matters raised in the Commissioners report, while also ensuring the business continues to perform well in the interests of shareholders and all other stakeholders [including current and future asbestos claimants, employees, contractors and business partners] who are dependent on the continued financial strength of the company," the company said. * 'Pathetic' response Secretary of the Construction Mining Energy Union (CFMEU) Andrew Ferguson says it is not enough. "Well, we've joined the victims in rejecting the response of James Hardie, we regard it as pathetic," he said. "The CEO Peter Macdonald should either resign or he should be sacked rather than stay on the payroll of James Hardie whilst the victims are fighting for their lives and campaigning for compensation." Mr Ferguson says its boycott of James Hardie products will still go ahead. He says the issue is compensation for victims and many of its members in the building industry are already using different products. "They're exercising their social conscience," he said. We've been indundated with calls from self-employed workers, even builders, asking us about alternate products to James Hardie and we're hopeful that home renovators and ultimately govts across the country will implement a boycott on James Hardie unless this crisis in terms of compensation is resolved." * ASIC inquiry The Aussie Companies Securities and Investments Commission (ASIC) is investigating the circumstances of James Hardie's creation of the Medical Research And Compensation Foundation, prior to moving offshore, in Feb 2001 to compensate victims of asbestos-related illnesses. Mr Macdonald may face criminal charges for making misleading statements about the company fully funding the foundation, which owns James Hardie's former asbestos producing subsidiaries. The special inquiry also found the chief financial officer Peter Shafron may have breached his duties as a company officer in the way info was provided to incoming directors of the compensation foundation. A decision on charging the 2 men depends on the outcome of the ASIC inquiry. Jimmy Carter fears for fair Florida vote Washington (ABC, John Shovelan). Former US Pres Jimmy Carter says conditions for a fair election still do not exist in the state of Florida. In an article in the Washington Post, Mr Carter wrote Florida's electoral officials have proven to be highly partisan. He says Florida's Republican governor Jeb Bush, a strong supporter of his brother George W Bush, has taken no steps to correct this and "some basic internat'l requirements for a fair election are missing". He says it was obvious that in the election in 2000 that basic standards were not met and the disturbing fact is that a repetition of the problems seems likely. The 2000 vote was ultimately decided by the US Supreme Court, which stopped the recount of contested ballots. Mr Carter founded the Carter Centre in 1982, which monitors elections worldwide. Jordan's king doubts Iraqi elections possible Paris (Reuters). Iraq is far too unsafe to hold elections as scheduled in Jan and extremists would do well in the poll if Baghdad tried to hold it, Jordan's King Abdullah said in an interview. Excluding troubled areas from the nationwide poll would only isolate Iraq's Sunnis and create deeper divisions in the country, he told the Paris daily Le Figaro. The US and Iraq's interim govt insist the vote should go ahead as scheduled despite a worsening insurgency there. But The New York Times quoted US Secretary of State Colin Powell as saying "We've got a tough road ahead of us". "It seems impossible to me to organise indisputable elections in the chaos we see today," said the king, who was due to meet French Pres Jacques Chirac in Paris. "Only if the situation improved could an election be organised on schedule," he said. "If the elections take place in the current disorder, the best-organised faction will be that of the extremists and the result will reflect that advantage. "With such a scenario, there is no chance the situation will improve," he said. Asked if partial elections would isolate the Sunnis, he said "That's exactly our worry". King Abdullah said Iraq should re-hire many middle ranking officers from the old army disbanded by US authorities soon after the fall of Baghdad last y. He said the training of new Iraqi troops should also be longer. "The faster we reconstitute the old army, the better the new one will be," he said. Newspoll shows very close Aussie election: PM Canberra (AAP). The results of the latest Newspoll indicate it is going to be a close election, Prime John Howard says. The Newspoll, published in The Aussie newspaper, showed Labor in an election-winning position ahead of the coalition. The poll has Labor with 52% of the 2-party preferred vote and the coalition 48 per cent. "I think it will be a very close election," Mr Howard told SYD radio 2UE. Mr Howard said the polls were "contradictory", with the last big poll showing a different result. However, the Newspoll still shows Mr Howard leading Mark Latham as preferred PM, polling 48% to Mr Latham's 35%. The poll was taken before the coalition's campaign launch on Sun. Pinochet blames military for human rights abuses Santiago. Chilean prosecutors who last wk interrogated the country's former military dictator say he has denied any links with a campaign by South American govts in the 1970s to kill their opponents. Gen Augo Pinochet was questioned about the campaign known as "Operation Condor" by a judge at his home in Santiago. A prosecution statement said the Gen told the judge he thought the operation was handled by middle ranking officers. Lawyers say Gen Pinochet, 88, is due to undergo medical tests to check whether he is fit to face trial for alleged human rights abuses He has so far avoided trial on medical grounds, but last m the Supreme Court stripped him of his immunity from prosecution for a limited number of cases. Bird flu 'a permanent threat': UN 2 UN agencies have warned that bird flu is "a crisis of global importance". Vienna. A joint statement from the Food and Agriculture Organisation and the World Organisation for Animal Health says the virus represents "a permanent threat" to human and animal health. The statement comes as Thai officials confirmed that a woman who was feared to have contracted bird flu from her daughter had actually come into contact with dead chickens. The 2 UN agencies have released a new set of guidelines on combating outbreaks of bird flu and on ways to prevent outbreaks occurring. To accompany the guidelines they have issued an unusually stark warning. Based on recent outbreaks in Cambodia, China, Malaysia, Thailand and Vietnam, they say the virus will probably not be eradicated in the near future. The new guidelines stress the importance of surveillance and early detection, something which the agencies say govts in E Asia are not doing well enough. Hicks lawyer demands charge details David Hicks has pleaded not guilty to the charges. Washington (AFP). Defence lawyers have filed a motion demanding the US Govt back up war crimes charges against Aussie David Hicks with more detail on the allegations against him, according to documents made public. Hicks, a 29-yo convert to Islam from Adel, faces charges of conspiracy to commit war crimes, attempted murder by an unprivileged belligerent and aiding the enemy. The war crime charges are brought by the US Govt and not the UN war crimes tribunal. In a motion filed on Sep 20, Hicks's military lawyer said the Govt has refused to provide the particulars of his alleged crimes, such as who he was to murder and when and how he aided the enemy. "Consequently, since the charges lack any specificity, they do not adequately inform Mr Hicks of the nature of the charges against him with any precision to enable the defence to prepare for trial," said the motion filed with the military commission. Defence lawyer Maj Michael Mori, USMC, asked the commission to compel the Govt to provide a bill of particulars for each of the charges against Hicks, with specific conduct, their time and date and the identities of those he allegedly attempted to murder. Hicks was captured in Afghanistan where he allegedly fought alongside the ruling Taliban in a war against US-led forces that was prompted by attacks on the US on Sep 11, 2001. The commission's next sessions to hear motions are scheduled for early Nov, with trials likely to start in early Dec. Military appointed lawyers for another detainee, Ibrahim Ahmad Mahmoud al-Qosi, filed a separate motion with the military commission handling the cases demanding access to govt interrogators, linguists and other witnesses. Among the other issues facing the commission are challenges by defence lawyers demanding the removal of the presiding officer and 4 members of the panel for bias. The defence motions were the latest to strike at the fairness of war crimes trials of 4 detainees at Guantanamo Bay, Cuba. France says Iraq conference should study US withdrawal Paris (Channelnewsasia/AFP). Europe reacted with cautious support to a US proposal for an internat'l conference on Iraq, though France said it would need to address the issue of a US troop withdrawal and include representatives of the armed opp'n. The European Union's foreign policy chief Javier Solana said the idea was universally accepted "in the hope that it will be constructive and positive." In Berlin, which like France opposed last y's US-led invasion of Iraq, the German govt said it had long been in favour of an internat'l forum to prop up the process of democratisation. Brit's Foreign Office said simply that the idea had originated with the Iraqis themselves who would organise any meeting. In a shift of policy over the weekend, the US Admin said that it now supported what it insisted was an Iraqi idea for a conference to promote reconstruction and peacekeeping efforts. Secretary of State Colin Powell said it could take place in a Middle Eastern capital before the US presidential election on Nov 2. France -- which took the lead in opposing the US-led intervention in Iraq -- said that while it was not against the proposal, that any meeting should also discuss the withdrawal of US-led forces and include the armed opp'n. Describing the situation in Iraq as a "black hole," Foreign minister Michel Barnier hinted that France could make discussion of the withdrawal of foreign forces a condition for agreeing to the conference. "It is an issue which should be on the agenda of such a conference, if we want it to take place," he told France Inter radio. Barnier said that any conference should include "different communities and countries of the region as well as all [Iraqi] political groups, including those that have chosen the path of armed resistance." A rep for the French foreign ministry said later that a conference attended only by the Iraqi interim govt and neighbouring countries would not be seen as credible. "The situation in Iraq is one of chaos with general insecurity even in the Green Zone," he added, referring to the high-security enclave in Baghdad which contains the HQ of the interim govt and the US embassy. "This chaos runs the risk of destabilising, of drawing in the whole region. I have compared it to a black hole. We have to get out of this black hole, this spiral of violence, and launch negotiations and the political process," the minister said. "We are in a process set out by a UN resolution [1546], and we must stick to it," Barnier said. The essential stages were "democratic elections ... a new constitution with a referendum, and then the question of the internat'l forces will have to be asked," he said. Powell said Sun the conference could take place in a city such as Cairo or Amman, and should be attended by the G8 group of industrialised nations as well as Iraq's neighbours including Iran and Syria. Barnier said France would prefer a conference in NY, to reinforce the impression that is under the aegis of the United Nations. He said the timing was less important than "how to make it successful and useful." Later, Spain's For Min Miguel Angel Moratinos welcomed an announcement by Egypt that it would host an internat'l conference next m on the possibility of organising elections in Iraq. An Egyptian official said the Oct meeting would group Iraq's neighbours and the G8 countries but did not specify whether it would be the same conference planned by the United States. "We are satisfied with this announcement. It's good news," Moratinos said. "Spain will back the result of this conference." Danish For Min Per Stig Moeller voiced support for the US proposal, according to the Danish Ritzau news agency in NY. "If Iraq invites us we'll go," he said following a meeting with his Iraqi counterpart Hoshyar Zebari in the US city. There was no immediate reaction from Moscow, while in Warsaw, a govt source speaking anonymously said it was "very much affected" by the conference proposal as it has 2,500 Polish troops in Iraq. Car bombs kill 7 Iraqi guardsmen Baghdad (AP). 2 separate car bombs killed 7 Iraqi nat'l guardsmen and a rocket barrage hit a police academy, as insurgents kept up their offensive to subdue Iraq's beleaguered security forces. Meanwhile, US jets pounded suspected militant positions in a Baghdad slum. The day's violence began before dawn with a US attack in Baghdad's sprawling Sadr City neighbourhood. Dr Qassem Saddam of the Imam Ali hospital said the strikes killed at least 5 people and wounded 46 -- including 15 women and 9 children -- but the US military said the claim of such high casualties was "suspect." "Early indications are that injuries to a large group of people as a result of this engagement did not occur," the military said in a statement. However, the military said it was opening an internal investigation to determine what happened. Lt Col Jim Hutton, a US Army rep, said insurgents also fired 3 mortar rounds at a nearby US Army base, but the shells fell short and exploded in a civilian neighbourhood. It was not immediately clear if any of the casualties in Sadr City were from the insurgents' shells. Residents said explosions lit up the night sky for hrs, leaving a trail of mangled vehicles, damaged buildings and shards of glass. At least 2 children wrapped in bloodstained bandages could be seen lying in hospital beds and one man suffered burns from head to toe. US warplanes struck again late Mon, residents said. Loud explosions echoed through the neighbourhood, but there was no immediate word on casualties. The military has launched a sweeping crackdown recently against Shiite fighters loyal to renegade cleric Moqtada al-Sadr in the slum -- named after the cleric's late father -- in an effort to dismantle his militia before general elections slated for Jan. Al-Sadr aides announced that the influential cleric plans to release a new peace initiative soon to put an end to the fighting and help pave the way for promised elections to take place in Jan. However, al-Sadr has made similar promises before and no details of the latest initiative were provided. Shi'ites, who make up about 60% of Iraq's 25 mn people, are eager to hold elections as they expect to dominate whatever govt emerges. Iraq clears debt to IMF, opens way for aid Washington (Reuters). Iraq cleared around $81 mn in debt it owed the IMF late last wk, fund sources said on Mon, opening the way for the 1st aid to flow from the global lender to Iraq. The payment comes as the IMF's board of shareholder govts prepares to meet on Wed to discuss lending to Iraq, added the sources, who requested anonymity. The sources said the IMF's board was expected to approve around $800 mn in financing for Iraq under a program for countries beset by conflict. The assistance typically comes with less stringent economic policy conditions than regular IMF programs. The emergency assistance helps countries with urgent balance of payments financing needs and is designed to be disbursed quickly and supported by policy advice, and in many cases, technical assistance. Lending under emergency assistance has typically been limited to 25% of a member's quota in the IMF, although amounts of up to 50% of quota can be provided. The sources said approval of IMF lending for Iraq "will help" talks among the Paris Club of 19 industrial nations over cancellation of Iraq's estimated $120 bn in foreign debt. The Paris Club, which includes all Group of 7 rich nations, usually favors having an IMF-backed program in place before it agrees to cancel or reschedule a country's debt. The US and Canada are pushing for up to 90% forgiveness of Iraq's foreign debt. France, which opposed the US led war in Iraq together with Russia and Germany, insists a 50% debt write-off is the most that should be offered to a country so rich in oil. 'Year of Living Dangerously' airs in Indonesia Jakarta (AFP). The Oscar-winning movie The Year of Living Dangerously, set during the emergence of Indonesia's Suharto and banned by the former dictator, has been broadcast for what is believed to be the 1st time, in a sign the country may be coming to terms with its brutal past. But Indonesian viewers watching Sun's broadcast of The Year of Living Dangerously were spared one of the film's most graphic scenes, a gunpoint massacre during the murderous chaos surrounding Suharto's 1965-1966 rise to power. Hundreds of 1000s of alleged communists were slaughtered across Indonesia in the aftermath of what Suharto claimed was an attempted communist coup, almost 39 y ago, on Sep 30, 1965. The 1982 Peter Weir film tells the story of Guy Hamilton, played by Mel Gibson, an Aussie foreign correspondent trying to report on escalating political tensions under the country's 1st president, Sukarno. Despite Suharto's fall from power in 1998, the truth behind his rise to the top job remains a mystery and viewers would have learned little from watching The Year of Living Dangerously, much of which is a love story between Mr Hamilton and a Brit embassy officer played by Sigourney Weaver. The private Metro-TV promoted the film as being banned by Suharto, and its trailers briefly showed an excerpt in which several people were gunned down, although the full scene did not make it to air. Hani Tiara, a Metro-TV public relations officer, said the film was approved by the Film Censor Board and was also trimmed by Metro to fit its time slot. Mr Tiara said the massacre scene was removed in accordance with TV industry guidelines that forbid the broadcast of "certain actions, for example those that are too bloody, too violent". "It's not just for this film," he said. "That is governed by our behaviour guidelines agreed to by the Indonesian television association." The film played in a regular Metro-TV slot which is a showcase for award-winning films, Mr Tiara said. Linda Hunt won a 1984 Oscar for best actress in a supporting role for her portrayal of Hamilton's male cameraman Billy Kwan, who is tormented by the poverty he sees in Sukarno's Indonesia. Although the film, shot in the Philippines, has already been shown to limited Indonesian audiences at the 2000 Jakarta Internat'l Film Festival, local media greeted Sun night's broadcast with interest. The Media Indonesia daily mentioned that perhaps the Suharto regime had banned the film because the massacre scene "could stain the image of Indonesia". Titie Said, chairman of Indonesia's Film Censor Board, said she could not comment specifically, but the board was obliged by law to watch out for "ideological-political" themes containing propaganda. A Suharto-era law banning communism and Marxism-Leninism remains in effect, she said. Last m legislators approved the creation of a truth and reconciliation commission with a mandate partly to discover what really happened during Indonesia's 'year of living dangerously'. Asked whether Metro-TV had received any reaction from viewers of the film Mr Tiara said: "So far there is none." Pitcairn Is accused refuse 'restorative justice' option Wellington (Reuters). 7 men facing allegations of sex crimes on the remote Brit Pacific colony of Pitcairn Island, founded more than 200 y ago by mutineers, have refused a last minute bid to plead guilty and will now stand trial, Radio NZ has reported. The men, who face 96 separate charges under Brit's Sexual Offences Act, are due to face trial on Wed after the last members of their legal teams arrived on the island this wk. Radio New Zealand said the 7, whose names are suppressed on the island but have been published in Brit and NZ, were given a final opportunity to plead guilty and reduce their chances of long jail sentences. It said they were offered the option of restorative justice, a process that would have brought them face to face with victims and would have required them to make reparations. However, the 7 refused to plead guilty and are instead expected to mount a legal defence based on a challenge to Brit's authority over the island. Pitcairn, a 47 person community founded in 1790 by Fletcher Christian, leader of the infamous mutiny on the HMS Bounty, is a rocky, forest clad 5 square km island some 2,160 km SE of Tahiti and halfway between NZ and Panama. 3 NZ District Court judges given Pitcairn Island warrants arrived last wk to hold 2 simultaneous trials in which the complainants are expected to give evidence over video link from New Zealand. The judges, counsel and 6 allowed reporters have more than doubled the island's population, leading to a detectable rise in tensions, according to the radio report. The 7 accused face a variety of allegations, some up to 40 y old, stemming from a complaint laid in 1999 by a Pitcairn woman which led to a Brit police investigation code named Operation Unique. Her action came after a 1997 book Serpent in Paradise by Brit journalist Dea Birkett who claimed to have uncovered the darker side of Pitcairn life, where islanders starved of choices "developed relationships considered unacceptable elsewhere". "Sisters share a husband. Teenage girls have affairs with older men. Women have children by more than one partner, often starting as young as 15," Ms Birkett claimed. Priests scuffle at Holy Sepulchre Jerusalem (ABC, Mark Willacy). Dozens of people have been injured in a fist fight between feuding priests at one of Christianity's holiest shrines. The fist fight between Greek Orthodox and Franciscan priests took place on the site where Jesus Christ is believed to have been crucified. It began when a Greek Orthodox procession passed a Roman Catholic chapel and the priests started arguing over whether a door to the chapel should be open or closed. Jerusalem police say 4 priests were detained after the brawl. Custody of the church of the Holy Sepulchre is shared by several Christian denominations and each jealously guards its territory. Music producer Spector indicted on murder charge LA (Reuters). Legendary "Wall of Sound" record producer Phil Spector has been indicted on a charge that he murdered actress Lana Clarkson, who was found shot to death at his home 19 m ago. Police found the 40-yo Clarkson, star of such B movies as The Barbarian Queen and Amazon Women on the Moon, shot dead in the foyer of Spector's home on Feb 3, 2003. Spector, 53, who produced songs for the Beatles and for Ike and Tina Turner, has claimed that Clarkson killed herself by putting a gun in her mouth and firing it. Police said that an extensive investigation showed that he had shot her. An autopsy report found that the tall, blonde actress had been killed by a single gunshot after the weapon was placed in her mouth. Spector, who is free on $1.4 mn bail, pleaded innocent to the charge during a court appearance in LA. Prosecutors said police found blood and gunshot residue on Spector as well as evidence that he had cleaned and moved the gun after the shooting. They say the reclusive music producer has a history of pointing guns at people. Spector claimed in a magazine interview that Clarkson killed herself. By asking a grand jury to indict Spector, prosecutors are able to avoid making public, until the trial, the evidence they have accumulated against him during a lengthy investigation. Prosecutors charged Spector with murder in Nov 2003 but did not ask a grand jury to hear the evidence until later. Clarkson and Spector met earlier on the night of her death at the House of Blues nightclub, where she worked as a hostess. Energex chairman Beattie's 'scapegoat' Brisbane. The Qld Opp'n says it is not surprised by the resignation of the chairman of the Qld-based energy utility Energex but wants answers from Prem Peter Beattie. It is understood Don Nissen quit last night, reportedly accusing the Govt of leaking info about an auditor-general's investigation into the former Energex chief executive Greg Maddock. Mr Maddock took his own life 11 days ago. Energex and the Prem have so far refused to comment, but Mr Beattie will make a statement to Parliament this morning. Opp'n leader Lawrence Springborg has accused the govt of a "vindictive approach" to Qld's electricity problems. "We see people like Don Nissen and others vilified and made the scapegoat," he said. "There's a lot of unanswered questions with regards to this and we're hoping that we're going to get some answers from Mr Beattie in Parliament today." Energex chair authorised unjustified payments Brisbane. Prem Peter Beattie has begun a long statement to Parliament about the resignation of Qld utility Energex's board chairman, Don Nissen. It follows an investigation into financial matters leading up to the the suicide of Energex chief executive Greg Maddock. Mr Beattie says the Crown Solicitor has advised the Govt that some expense claims made by Mr Maddock could not be justified. The Crown Solicitor has further advised that Mr Nissen should have rejected, or at least questioned the expenses. The advice says that Mr Nissen may have breached the Code of Conduct, by authorising the use of Energex funds for purposes which were not in the best interest of the company. Former Energex head not dishonest In breach: Mr Beattie says Mr Nissen should have rejected some claims. Brisbane. Prem Peter Beattie says the State Govt has been advised that some expense claims made by Qld utility Energex's former chief executive, Greg Maddock, totalling almost $100,000, could not be justified. It follows an investigation into financial matters leading up to the suicide of Mr Maddock 11 days ago. The advice suggests Mr Maddock was not acting dishonestly and evidently believed he was entitled to the expenses. Mr Beattie has reported that as chairman of the board of Energex, Don Nissen may have breached the power company's code of conduct by authorising Mr Maddock's claims. "The Crown solicitor said that even on the broadest basis some of the claims made by Mr Maddock could not be justified and even Mr Nissen should have rejected them or at least questioned them," he said. Former Energex chairman Don Nissen, who resigned last night, has declined to comment. The chairman of the Port of Bris Corporation, Ross Dunning, has been appointed the new chairman of Energex. A director of the board of Energex, Brian Kilmartin, has also resigned. The Qld State Opp'n has pursued the Energex issue during a subdued session of Question Time. In Parliament, Min for Energy John Mickel heavily criticised some media reports about former Energex chief executive Greg Maddock's death. "The explicit details of the tragedy have been flashed across media outlets with little respect for Mr Maddock's family," he said. The Opp'n has been relatively silent on the issue. Leader Lawrence Springborg explained why. "The Nat'ls have been torn between the sensitivity to the Maddock family and our obligations to Qld-ers to seek answers," he said. The Opp'n has asked a number of questions including whether the Prem's office last wk deliberately leaked sensitive info about Mr Maddock. Mr Beattie has denied the suggestion. "My Govt has acted appropriately and properly at all times," he said. James Hardie shares rally Sydney (AAP). Shares in James Hardie Industries NV rallied on news that 2 key executives will stand aside, rather than resign, over the company's underfunding of asbestos compensation. Investors appeared to be relieved that chief executive Peter Macdonald and chief financial officer Peter Shafron will stay within the company, pending an investigation by the corporate watchdog into the findings of a special inquiry into the company's asbestos liabilities. The inquiry found that Mr Macdonald and Mr Shafron had both engaged in misleading and deceptive conduct, and in Mr Macdonald's case, he may have broken the law. However the 2 men have also led the company through a period of successful growth in both sales and profits. By 1122 AEST, James Hardie shares were 9 cents or more than one% higher at $5.87 after earlier going as high as $5.95. "I guess there is a bit of relief that they are staying in some sort of guise," Ausbil Dexia director of equities Paul Xiradis said. Macquarie Equities associate director Lucinda Chan said it made sense for the 2 men to stand aside, rather than resign, until the Aussie Securities and Investments Commission completes its investigation. "They're standing down is really just saying [to ASIC]: go ahead and do what you have to do," Ms Chan said. "It's probably a good thing. It's a fair thing for stakeholders. "[James Hardie] are walking a very fine line and have got to be fair. They have got a lot of stakeholders both onshore and offshore." She said that by stepping aside, Mr Macdonald and Mr Shafron could ensure continuity of business in the event that they do eventually resign. Aussie economy grew in 2004: report Melbourne (AAP). The Aussie economy grew moderately during the first half of 2004, underpinned by ongoing strong private consumption and investment growth, a survey of economic trends says. The 3rd issue for 2004 of the Mercer -- MEL Institute Quarterly Bulletin of Economic Trends reported that year-end growth was 4.1% in the Jun quarter, up from 3.6% in the Mar Q 2004. However, it said that despite ongoing private consumption and investment, the external sector subtracted from growth. Underlying real Gross Domestic Product (GDP) growth is forecast to average just under 3.0% during fiscal y 2004/05, before edging higher to an average of 3.3% during the following year, it found. And private consumption growth should continue to underpin GDP growth throughout this period. Meanwhile, business investment is expected to be more moderate in the coming quarters and net exports should continue to be undermined by strong growth in imports and a forecast strengthening of the AUD. Strong growth in private consumption averaging around 4.7% in year-end terms [above the long-term average of 3.5%] will underpin GDP growth in the coming 2 y, the report found. And after slowing further through to the Jun quarter 2005, underlying business investment growth is forecast to stabilise at around 3% in year-end terms in 2005/06. The outlook for the labour market in the coming quarters is consistent with ongoing moderate economic growth, the report found. Employment growth is expected to ease in the next 4 Q before stabilising at around 1.9% per annum through to mid 2006. Meanwhile, the unemployment rate is forecast to edge marginally lower to 5.4%. Inflation is forecast to remain steady nr the low end of the Reserve Bank's target band of 2 to 3% during the forecast period. In this environment, official interest rates are expected to rise only slightly, with one increase of 25 basis points expected later this y, the report said. David Jones reports $65 mn profit Sydney. Shareholders of the dept store chain David Jones will receive an increased pay-out after a big turnaround in profit performance. Easing the memory of last y's $25.5 mn loss, David Jones has reported an after tax profit for the latest financial y of $65.3 mn. The company has described the results as the strongest since 1996, benefiting from the prevailing positive consumer sentiment. It is doubling its final dividend to shareholders to 6 c a share. Around 11.00 am David Jones shares were down 4 c to $1.91. SA regains AAA credit rating Adelaide. Ratings agency Standard and Poors has upgraded SA's credit rating to AAA for the 1st time since the State Bank collapse more than a decade ago. South AUS lost the rating in 1991 and Treasurer Kevin Foley has been aiming to regain the AAA rating since the Labor Govt was elected in 2002. Standard and Poors analyst Brendan Flynn says the strong economy in the State has led to the upgrade. "When this Govt came into power it made a conscious effort to improve ongoing financial performance," he said. "We saw them projecting that they were going to do it, and that was a good starting point, but we had to see them put some runs on the board, and in the last couple of y we really have seen Govt finances in SA be very strong." Coalition announces IR mediation service Melbourne (AAP). A new mediation service to cut the costs of small business fighting disputes at the Aussie Industrial Relations Commission (AIRC) would be set up if the coalition was re-elected, Workplace Relations Min Kevin Andrews said. Mr Andrews released the fed govt's industrial relations policy at Blackburn in MEL's east. He said the coalition would commit $2 mn to establish a pilot program to assess the viability of setting up the mediation service. "We will be introducing a new low-cost system of mediation for small business," Mr Andrews told reporters. "This is to deal with both disputes involving unions, disputes such as unfair dismissals which continue to be a major problem for small business in particular right throughout AUS." He said the mediation service would be provided under the auspices of the AIRC. Mr Andrews also announced the Fed Govt would commit $12 mn to simplify the processing of Aussie Workplace Agreements and would introduce an independent contractors act to give formal recognition and protection to independent contractors. Democrats deplore lack of Indigenous funding Canberra. The Aussie Democrats say the Coalition's spending spree in the last wk has not extended to the people who really need it. Sen Lyn Allison, who is visiting Darwin, says the PM is promising 100s of $mns in marginal seats. She says the Indigenous Affairs Min could find only $45 mn extra funding over 4 y for all the country's Indigenous people. "The Govt should be saying, 'well, what are our biggest problems?'," she said. "Let's work out how to solve those, and that's not what this Coalition Govt is doing. "Seems to me it's quite desperate to stay in office, and it thinks this is the way to do it. It probably doesn't think about Indigenous votes, quite frankly," she said. More Indigenous teachers needed: Democrats Canberra. The Aussie Democrats say employing more Indigenous teachers is the key to improving Aboriginal education. Democrat Sen Lyn Allison launched the party's Indigenous education policy in Darwin today. Sen Allison says improvements in Indigenous education have stalled. "My concern is that we'll start going backwards unless there is more effort put into Indigenous education," she said. "It is the way forward for many communities, to be more independent, for jobs to be made available to people." NT senator wants immigration centre sold off Darwin. Labor's N Territory Sen is calling for Darwin's temporary immigration processing centre, which has never been used, to be dismantled and sold. Trish Crossin says the centre was built at a cost of $7.4 mn and has never held anyone who has broken immigration law. She says it costs $70,000 a y to maintain. Sen Crossin says Alcan has expressed interest in the empty demountables. "It's not a centre that we're ever going to use, we'll never use it, and rather than waste the money we should sell off the assets or the demountables that are there to companies that may want them," she said. ALP wants RAAF worker compo now Brisbane. The Labor Party has slammed a decision to delay compensation to maintenance workers who are seriously ill after stripping the fuel tanks of F1-11 fighter planes. A study into the health of the RAAF workers will not be released until after the fed election. Paul King, the ALP candidate for Groom, in S Qld, says there are seriously ill workers in the electorate who need compensation now. He is calling on his Liberal counterpart, Ian Macfarlane, to apply some pressure to the Defence Dept and come up with the money. "Well, the report has been finalised. The decision to actually compensate people is what's been delayed," he said. "That's the worry. These people don't have a lot of time left. Some of them are very, very sick and we think they're going to be disadvantaged." Mr Macfarlane has declined to comment. However, the Defence Dept says the Govt is considering the study and it will be released by the end of the year. Rural doctors seek quarantined health funding Canberra. The Rural Doctors Association says the Commonwealth needs to take more responsibility to ensure rural hospitals receive adequate funding. The Association's president, Dr Sue Page, says the Commonwealth should quarantine funding for rural hospitals in its health care agreement with the states and territories to make sure the money ends up in the hands of country hospitals. Doctor Page says in the last 6 m the obstetric units at 3 rural hospitals have been closed. She says the funding issue is affecting the health of country Aussies. "If you're in a small town and your service has been downgraded, there are very few options for what you can do sometimes," she said. "If you're lucky, the next nearest unit will be 30 to 50 km, but I tell you what, there are lots of babies that don't wait around for an hour to be born." Govt dismisses nuclear waste dump site list Darwin. The Fed Govt has denied claims it is considering up to 22 different sites around AUS for a nuclear waste dump after abandoning plans for one at Woomera in SA. The SYD Morning Herald newspaper has reported that the Nat'l Store Advisory Committee has drawn up a list of sites for a low-level dump which includes 9 possible locations in NSW. A rep for the Science Min Peter McGauran says that list is now obsolete. The rep says the Fed Govt is considering what it calls a "co-location" facility to store Commonwealth waste but that all states and territories will now have to store their own waste. 4 potential sites were also identified in the N Territory, 3 in the ACT and 2 each in Qld, SA and Vic. Govt asked to explain nuclear waste dump plan The Fed Govt says the list is obsolete. Sydney. The NSW Govt is calling on the Fed Govt to come clean ahead of the election on its plans for storing nuclear waste, now that it has abandoned plans for Woomera in SA. Claims have resurfaced that the Fed Govt has a secret list of up to 22 sites for a nuclear waste dump. The list, including up to 9 possible locations in NSW for a low-level dump, was compiled last y by the Nat'l Store Advisory Committee. NSW Environment Min Bob Debus says voters deserve an explanation. "Do they mean to build a permanent nuclear waste storage facility at Lucas Heights, or in Jervis Bay?" he said. New S Wales Greens MP Ian Cohen says he will be introducing a private members bill to prohibit the storage and transport of nuclear waste in the State. 4 potential sites were also identified in the N Territory, 3 in the ACT and 2 each in Qld, SA and Vic. Fed Education, Science and Training Min Brendan Nelson told Sky News that the states would have to find their own sites to store waste and that the Fed Govt was still looking for a site. "None of the sites [on the list] are being considered at all," he said. Fed Science Min Peter McGauran says that the list is obsolete. "We've started all over again, we're only at the very earliest stage of looking for an entirely different kind of facility," he said. Govt still favours off-shore nuclear dump The list was compiled last y by the Nat'l Store Advisory Committee. Sydney. Fed Science Min Peter McGauran says the Commonwealth has not drawn up a list of possible sites for a nuclear waste dump and still favours an off-shore location. The SYD Morning Herald has reported that there is a list of up to 22 potential locations for storing low and intermediate level radioactive waste in mainland AUS. Mr McGauran the Govt is only at the early stages of searching for sites. "There is no list that the Govt is working from," he said. "2 y ago a committee of advisers and bureaucrats submitted identifiable sites to the Commonwealth for further examination. "They had a narrow criteria to work from. We never examined those sites because they were so patently absurd on environment, heritage and social grounds." The list was compiled last y by the Nat'l Store Advisory Committee. It names 9 sites in New S Wales, 4 in the Northern Territory, 3 in the ACT and 2 each in Qld, South AUS and Vic. Special IR unit for small business under Govt Special treatment: The Coalition would create a small business-specific unit. Canberra. The Coalition has released its industrial relations policy, promising to establish a separate unit for small business in the Aussie Industrial Relations Commission. The Prime Min, John Howard, has been promoting his Govt's industrial relations credentials while campaigning in Bris. Mr Howard has toured a furniture moving company in the marginal Liberal seat of Morton. All bar 3 of its workers are on individual contracts called 'Aussie Workplace Agreements' (AWA). Admins manager Peggy Tonkin told Mr Howard the company recently signed up AUS's 500,000th AWA. "With the AWA it certainly has helped us because we've been able to build a career path for our boys," Ms Tonkin said. Mr Howard says AWAs would stay if the Coalition is re-elected. "Obviously a company like that would be very unhappy if the Labor Party won and abolished AWAs, which they will," Mr Howard said. Workplace Relations Min Kevin Andrews says the Coalition would also try to reduce the cost of industrial disputes for small business by setting up a pilot program of mediators dedicated to small business. "What we want is a simple, low-cost system which will actually help business," he said. "Not have a system which is hugely costly to business and therefore is a cost to their overall production." Mr Howard describes industrial relations as a big choice issue for voters in the campaign. He says it is an area where there is a sharp divide between Labor and the Coalition. PM clarifies nanny issue Melbourne. Prime Min John Howard denies he has been forced to back down on part of the Coalition's childcare policy. The bn dollar plan unveiled at the Coalition's weekend campaign launch offers a 30% rebate on approved childcare costs for those eligible for the childcare benefit. That led some to complain nannies would be included. Mr Howard has told S Cross radio that is not the case. "We simply made it plain that the 30% tax rebate is not available to nannies because obviously that would result in people who have very high incomes and spend a lot of money on them getting a very large tax break," he said. "The whole idea of this is to create a tax break for people who use formal child care." Latham, Howard spar over Molloy issue Melbourne. PM John Howard has called on the Labor leader to dump a Qld candidate after a newspaper published a photograph of the candidate holding a firearm with what are claimed to be Islamic separatists in the Philippines in the early 1980s. Ivan Molloy who is running for Labor in the seat of Fairfax says the article wrongly portrays him as a terrorist sympathiser. Dr Molloy who is an internat'ly renowned expert on terrorism says they were in fact govt troops. It is the 2nd time Dr Molloy has come to prominence in the campaign after he was forced to back away from comments made by his wife, blaming Liberal MPs for the Bali attack. Mr Howard has told S Cross radio it is time Dr Molloy was removed. "Mr Latham should have the backbone to get rid of him," he said. "This fellow is an embarrassment to his own party, what he said about me and my colleagues was offensive and on that issue alone he should have been sacked." Mr Latham says he has not seen the newspaper report about Ivan Molloy's alleged association with terrorists. "The point of principle I'm making is I expect Labor candidates to be tough and very strong in their determination to fight terrorism, there's no doubt about that," he said. "It's our party policy and we expect our candidates to be part of that policy approach and make sure we do everything we can to make our country safe and secure for the future." Latham challenges Govt on alleged energy tax Canberra. The fed Labor leader has challenged the Govt to come clean on whether it has a plan to introduce a new energy tax. Labor says the plan was suggested during a meeting with energy industry representatives in May to raise $1.5 bn towards alternative energy research. Mark Latham says the Govt should reveal whether it intends to introduce the tax or not. "I understand the Industry Min Ian Macfarlane was putting forward on the table a $1.5 bn tax on power users," he said. "$30 a year, so I think you have to take it seriously when the fed minister has it on the table at the ministerial meeting that was held and it's a simple matter of the Howard Govt saying it's not going to happen and release all the documents and give us a guarantee that they haven't got a secret plan for a $1.5 bn power tax." Mr Macfarlane has denied Labor claims of a secret plan to introduce a new energy tax. "We have said that a Coalition Govt will offer a $500 mn low emissions technology fund that industry can step forward and be part of lower emissions technology and that we will fund that technology $1 for every $2 they invest in technology," he said. "That is no secret plan, that was announced in Jun." Labor promises $100 mn for mental health services Mark Latham... making mental health a priority. Adelaide. The fed Labor leader is promising to set up dedicated youth health centres to help 12- to 20-yos struggling with mental illness and substance abuse. The plan is part of a $100 mn plan to boost mental health services, unveiled by Mark Latham at an Adel hospital today. Mr Latham spoke to some new mums at the Modbury Hospital before announcing his new mental health plan, which includes $12 mn for programs to address post-natal depression. "One of the hidden issues in the health system, the fact that one in 7 new mums can suffer post-natal depression," Mr Latham said. "That's something that needs to be more fully resourced." Mr Latham is also promising $25 mn for dedicated youth health centres. There is also $12 mn for the Beyond Blue group to work with young children with mental illness and their parents. Labor would also set up a PM's council on mental health, helping to make the issue a priority if Labor is elected. Beware Latham's Liverpool accounting: Govt Canberra. The Fed Govt has stepped up its attack on the Opp'n Leader's credibility as an economic manager, with a release today of a 'dossier' on Mark Latham's record as mayor of Liverpool Council in the early 90s. The Govt has been applying pressure to the Opp'n over the fact its tax and family package still has not been presented to Treasury for an assessment of the costings. Finance Min Nick Minchin says the document released today shows Mr Latham drove big-spending capital projects at the Liverpool Council, but failed to deliver the savings he had identified to pay for the programs. Sen Minchin says he believes there is a parallel with Mr Latham's election promises. "It's what I call the mad Mark's Liverpool Council accounting approach," he said. "The approach is to spend up big and tell the voters that it'll all be covered by savings, unfortunately which in the case of Liverpool Council did not eventuate and was the cause of its troubles." Fog disrupts flights at MEL Airport Melbourne. Thick fog is disrupting operations at MEL Airport this morning, causing the diversion of a number of flights. At least 3 internat'l flights have been diverted to either SYD or Adel and domestic operations are also likely to be affected. Airport duty manager George Roberts says the disruption is also likely to impact on departures later in the day. "Some of those will be affected, for instance the internat'l arriving flights that have been diverted, that will affect departures later in the morning," he said. Pan Pharmaceuticals founder fronts court Sydney. The founder of Pan Pharmaceuticals, Jim Selim, has appeared briefly in a SYD court charged with knowingly misleading the company's board. The company collapsed in Apr of last y after the country's largest recall of medical products. Mr Selim is facing 4 charges brought by the Aussie Securities and Investments Commission. Prosecutors are alleging Mr Selim failed to inform the board of concerns the Therapeutic Goods Admin had with Pan operations. The matter will next be heard in the Downing Centre Local Court in Dec. Man suffers burns in mystery Queanbeyan blast QB. A 24-yo man has been taken to CBR hospital with burns to 90 per cent of his body after an explosion at a block of flats in Queanbeyan. About 20 residents are gathered in Donald Road watching emergency services attend the explosion. Wreckage is hanging from the roof of the apartment which has had its front blown out. The cause of the explosion is not yet known. Fears for Queanbeyan blast victim QB. Ambulance officers say they hold grave fears for a 22-yo man who sustained 3rd degree burns in an explosion in Queanbeyan on the New South Wales-ACT border this morning. The man sustained burns to 100% of his body. Ambulance officers say he will be flown to a SYD burns unit. The man was found under debris after an explosion at a block of flats on Donald Road. Police have sealed off the area and the bomb squad are conducting forensic tests at the scene. The cause of the blast is not yet known. Inspector Neil Grey from Queanbeyan Police says the explosion was unlike anything he has seen in the town before. "It's a terrible mess, it's a block of 12 units, the front of those units has been destroyed, it's obviously an explosion of some impact," he said. Prosecution opens case against accused backpacker killer Bundy. The prosecution has opened its case against a man accused of murdering Brit backpacker Caroline Stuttle in the SE Qld city of Bundaberg. Ian Douglas Previte, 32, has pleaded not guilty to robbing and murdering 19-yo Caroline Stuttle, whose body was found under Bundaberg's Burnett Traffic bridge in Apr 2002. Crown prosecutor Peter Feeney opened his case saying Previte was doing a "bag snatch" because he wanted money to buy drugs. Mr Feeney said Previte hoisted Ms Stuttle up and forced her over the bridge railing to plummet to her death. The prosecutor told the court in a recorded conversation with a prisoner at the Rockhampton jail, Previte said he would "use it as an accident, and that would drop [the charge] down to manslaughter". More than 80 witnesses will be called over the next 3 wk. Husband seeks to drop O'Shane assault charges Sydney. The lawyers for magistrate Pat O'Shane have told a SYD court her husband wants to withdraw an assault charge and an interim apprehended violence order against her. Ms O'Shane is due to face a hearing in Nov over allegations she assaulted her husband, Allan James Coles, earlier this m. An application by media organisations to gain access to court documents about the matter is being heard in the Downing Centre Local Court today. Outside the court Ms O'Shane's lawyer Stephen Stanton said his client is seeking to have the media application adjourned until Fri, and has tendered a letter to that effect. "She'd also like the court to note, as has been communicated to her, that her husband has sought the withdrawal of both the AVO and the assault charges," he said. CDs continue to dwarf digital downloads LA (Reuters). The compact disc has at least another 5 y as the most popular music format before online downloads chip away at its dominance, a new study said. Technology consultancy Jupiter Research said the venerable CD, not the download, will remain the best selling format throughout the remainder of the decade as the installed base of CD players continue to dwarf that of MP3 players and other digital music devices. "Digital music distribution will be an important alternative revenue channel for the music industry, but it is not about to replace the CD," they added. As in the US, Europe's online music market is dominated by Apple Computer's iTunes music store. The recent launches of Napster and Sony Connect, plus dozens of retailers who resell tracks from Loudeye's OD2 have created a brutally competitive market in Europe. They are battling for share of a digital music market which is expected to grow 4-fold this y to $79.7 mn. Brit, the world's 3rd largest music market, will be the top online music market in Europe accounting for 30% or $427 mn of online music sales in 2009. Over the next 5 y the biggest catalyst for growth will be the sale of digital music players such as Apple's iPod and Sony's new hard disc Walkman. A maze of incompatible playback and digital rights technologies could depress growth during that period, Jupiter said. {{ 1 am Gaza Strip. A leading Pal militant has been injured in what's believed to be missile attack from an Israeli chopper. Oil has risen sharply, and is nudging $50/bbl. As a mark of respect for a group of children killed on the way to the Athens Paralympics, organisers have cancelled some parts of the closing ceremonies. The French FM says a conf called to discuss Iraq should incl consideration of a US pull-out. An Iranian diplomat kidnapped 2 m ago in Iraq has been set free. 10 am The Dow has closed down .5% on oil price fears. The Nasdaq ended down 1%. In London, the FTSE lost 40 pts. Oil hit $US50/bbl on futures in late trading in NY and looks like staying there. China has also doubled its imports over the past 3 y. It's the 5th largest oil producer, but its biggest fields are running dry and its new fields are small. China is presently consuming about 2.4 mn bpd. The United States' corporate regulator, the Securities and Exchange Commission, may launch its own investigation in James Hardie's handling of its asbestos liabilities. The Aussie Securities and Investment Commission (ASIC) has begun investigating the conduct of James Hardie directors and executives over the separation of the company from its Aussie asbestos liabilities. A special inquiry into James Hardie's arrangements for its asbestos liabilities in AUS has found executives breached corporations law. 11.30 am The first casualties of the NSW asbestos inquiry have been declared. The CEO and CFO of James Hardie have stepped down [later reports clarified to "aside"], effective immediately. It's the first response from the company at the findings of the inquiry. CEO Peter Macdonald could also face criminal charges. In a statement, he said he took the decision to end speculation about the company. He admitted the fund he'd overseen was insufficient to pay out even present victims, and apologised for the shortfall. He said he would vigorously defend himself against a range of accusations by the Commissioner of the inquiry. Dirs are also reportedly under investigation for criminal culpability. The ACTU says Macdonald has stood aside but not gone -- and continues to operate the business in the US. The company does 80% of its business in the US. Analysts say there is "a great deal of sympathy" for Macdonald on the JH board, otherwise they could have ordered him to quit. The board has also moved to sooth investor fears because the CEO is highly though of as a business mgr. Former health products king Jim Selim has faced a SYD court, charged with knowingly misleading his company and the public. He was freed on bail. Qld Prem Beattie has confirmed the Qld power boss had been under investigation for expense claims of $200,000 when he committed suicide 2 wks ago. Mr Beattie said the investigation had found the expense claims were fully justified because of a verbal agreement with the chairman of the board. The chairman resigned last night. A CNN producer has been abducted in Gaza. Gunmen reportedly surrounded his car and called him out by name. He's an Arab-Israeli. Analysts are not sure why he was seized. There's been another suicide bombing in Baghdad. First reports say there was an initial blast, which was followed by a bigger explosion as rescue workers moved in to help the wounded. 2.5 mn homes in Fla are still without power after Jean visited. With manpower stretched to the limit after the 4th storm this season, authorities warn it could be wks before power is restored in some places. Midday. The All Ords has been up and down in early treading. It opened down on oil fears, but it up 4 pts at present. Woodside is up 17 c to $A19.92 -- a new high. James Hardie is up 12 c to $A5.90 after the CEO explained he's still managing the business from Cal. News Corp is down 3 c after super funds rejected plans to move the company's HQ to Delaware, USA. In Japan, the Nikkei is down 1%. The AUD is trading around 71.45 US c. In HK, the Hang Seng has just opened, but is down 106 pts. Gold is up $1.10 at $US409.45/oz. Oil is up .81 at $US49.64/bbl. PM Howard is again promising to keep the budget in surplus after committed $6 bn in electoral bribes. But analysts are reminding all that after the 2001 election -- when he the PM promised the same -- the budget went $1 bn into the red because of election spending. A new Newspoll should the govt has maintained its lead. The Coal'n is at 43% (even), and Labor is down 1 at 32% in first pref terms. 11 people have died in the latest Iraq violence. There has been a car bomb attack in Mosul. A US security company report says attacks have jumped 50% to 70 per day. According to Pentagon 250 Iraqis and 29 US soldiers have been killed in the last 2 wks. It's predicting the going will get tougher before it gets better. Some observers say elections might be delayed. Us officials deny that. US warplanes hit Sadr City o'night. Doctors say innocent women and children were caught in the crossfire. That's been denied by US officials. Top US military officials are meeting their counterparts in Damascus to discuss "porous borders". The Coal'n has unveiled plans to bypass state IR laws. There will be a mediation services for small business and more powers will be passed to the fed IRC. Mr Howard has called for Mark Latham to "show some spine", and sack a Qld Labor candidate. A Qld newspaper showed a photo of the candidate bearing a machine gun, with a group the paper claimed were "Islamic terrorists". It's the 2nd time Dr Molloy has been targeted during the fed election. He prev has supported comments made by his wife that the Coal'n govt was "responsible" for the Bali bombing and attacks on Aussies elsewhere. Today, Dr Molloy said the photo was taken 20 y ago when he was in the Philippines, researching terrorist groups. He says the men he was photographed with were actually supporters of then-Pres Marcos, and not insurgents. 6.30 pm Oil has surged as Asian markets talked the price up. In Chile, Gen Pinochet says he doesn't remember Operation Condor. The conspiracy was allegedly agreed among S American dictators to hunt down and dispose of opponents in each others' countries. A judge took Pinochet's testimony today. The ALP says the Coal'n govt has a secret list of 2 dozen sites where a nuclear waste dump would be established. It's being kept quiet until after election, said a party rep. About 9 of the sites are in NSW. Prem Carr has called on the Fed Govt to come clean so NSW could prepare a response. The Fed Env Min says it's just an opp'n scare tactic in the lead-up to a fed'l election, and the Fed Govt plans to store nuclear waster off-shore. Tasmania has asked for clarification. The All Ords has closed up 5 pts. Telstra was up 2 c (.43%). Hardie ended up 1.2%. Woodside closed up .41%. In Japan, the Nikkei lost 44 pts after record oil prices triggered a US sell-off. The Dow earlier fell below 10,000 for the first time since Aug 17. 7 pm An LA jury has ordered Phil Spector stand trial for murder. Spector referred to the Hitler-like DA, and said his civil rights had been violated. He called on Gov Schwarzenegger to pardon him and avoid a "miscarriage of justice". CNN is trying to negotiate the release of a producer kidnapped from a taxi in Gaza. QB. There's been a large blast in an apt block nr CBR. A 22 yo man is recovering from 75% burns to his body. His condition is described by doctors as "critical". The damage to the building is "overwhelming". The explosion happened at 10 mins to 9 am. The loud blast startled residents. An AFP bomb squad was called in to investigate. It was a "standard response", say police. 4 people were treated for shock. Late today, police confirmed the blast was caused by a gas leak. They're not sure how it ignited. The block has now been declared unsafe. Oil is at $US50.35/bbl -- up 52% since Jan 1. The price rose sharply after reports Nigerian rebels have warned companies to shut down prod'n or they'd call an all-out war. Morgan Stanley predict the price could now climb to $61/bbl. Copper is up 1.5%. Silver is up 2%. The AUD is trading around 71.53 US c. 10 pm Tonight, 2 Brit soldiers have been killed in Basra, Iraq. It was a "rare flare-up", say reports. An RPG struck the soldiers' Landrover which was travelling in a small patrol, SW of Basra. The timing is said to be "unfortunate" for Tony Blair. It came just hrs before he was to address the Labour Conf in Brighton. The PM had hoped to shift the focus to domestic issues. The US military says there were 2 suicide bombings on a US base W of Baghdad over the weekend. One of the attacks was filmed by militants. Pix have just appeared on a website. Sadr City was pounded by the USAF o'night, along with the rebel stronghold of Fallujah. 46 Iraqis were injured and 5 were killed in Sadr City, according to doctors. There's been some progress on the Iraqi hostage front. An Iranian diplomat was freed after 55 days of captivity. 2 of 6 Egyptian telco workers were also released by kidnappers. Pres Arafat has ordered security forces help secure the release of a CNN producer held in Gaza. No-one has claimed resp for the kidnap. Hamas has denied involvement. Today is the 4th anniversary of the intefada. It was marked by acts of violence across the occupied territories. The kidnap comes as one of Hamas' leading figures was buried in Damascus after what's believed to have been an Israeli assassination. Feelings are high. Israel has upped security at its o/s missions after Hamas threatened to hit back. 8 Palestinians have been killed across the territories. Among the fatalities was a hard-liner killed in a S Gaza Israeli missile attack. Another was shot while trying to plant a bomb, say Army reps. Pals say a mentally ill man was shot by Israeli soldiers as he stood in a school yard. [Later reports say he was hit in the leg, and then fell from a roof to his death]. Indonesian police say they've found only a single suicide bomber was responsible for the AUS embassy attack in Jakarta. The bomb killed 9 and injured 170 others outside the embassy. 6 Ache rebels have been killed by Indon troops. 27 have been killed in Ache since Sat. Troops have been battling Free Ache militants since last May. Human Rights Watch has accused Indon of torturing confessions from suspects. Thailand has confirmed a 10th death from bird flu. It may also be the first human-to-human case [later, apparently, confirmed]. A 26 yo woman is under observation after her 11 yo daughter died from suspected bird flu. It's suspect the virus has now mutated to a human-to-human flu. Tensions remain high in Haiti after 1,300 died from floods caused by hurricane Jean. Police and hungry civilians have clashed in Gonaives. The sit'n is described as "critical". It's been over 1 wk since Jean hit. Bodies are still being unearthed. Among the survivors, chaos has set in. Street gangs with metal bars have attacked food convoys. S Am troops have arrived to bolster numbers of the 600 UN troops. Some supplies are being distributed in an orderly fashion, but there are no-where near enough supplies to go around. Fla is starting the biggest clean-up in history. 26 of 67 counties have been decl disaster areas. 2.5 mn residents are still without electricity. }} ---------------------------------------- Wed, 29 Sep 2004. Oil closes at new high Oil prices have surged 55% so far this y. NY (Reuters). Oil prices raced to new record highs above $US50 despite a pledge by OPEC producer Saudi Arabia to increase production as rebel threats against Nigerian oil facilities threatened to inflict further strain on global supplies. US light crude touched a high of $US50.47/bbl before closing at $US49.64, up 26 c on the day. London's Brent crude set a new peak at $US46.80/bbl and ended at $US46.45, up 52 cents. Oil has grabbed the financial market spotlight this y, surging 55 per cent as rising consumption and the fallout from y of under investment in supply infrastructure tempts heavy buying from big money funds. Producers are pumping at nr full capacity to feed demand as China's economic expansion powers the fastest output growth in 24 y. Worries about supply security in Saudi Arabia, Iraq and Russia have magnified the price surge. OPEC, which controls more than half of global crude exports, is producing at its fastest rate since the late 1970s in an effort to control prices, but much of the extra crude is not of the quality best suited for transportation fuels. Prices hit new highs after rebels fighting for self determination in Nigeria warned oil companies to shut production in the Niger Delta before they declare an all out war. European Union Energy Commissioner Loyola de Palacio said the pressure on prices would ease after the US presidential election in Nov. A string of hurricanes in the oil producing Gulf of Mexico have accelerated the price rise by delaying shipments and disrupting offshore production and refinery operations. Nigerian rebels threaten attacks on oil workers Abuja. Foreign oil companies have increased security precautions amid fears of attacks by rebels in Nigeria's Niger Delta region. A group known as the Niger Delta People's Volunteer Force says it will attack foreign oil workers. It accuses internat'l companies of neglecting impoverished communities in the oil fields. The Nigerian Army is warning it will use force if the rebels attempt to carry out their threats. Shell and several other companies have increased security. The Niger Delta produces up to 2.3 mn bpd. The region has been the site of ongoing tension between the oil companies and local activists. US markets make gains The price of crude oil has hit fresh highs overnight but US markets took the news in its stride. NY/Sydney. On the NYSE the heavy equipment maker Caterpillar has helped push share prices higher. The company says strength in global sales of machines and engines are giving a bigger than expected boost to this y's sales. Energy stocks have also moved higher. The Dow Jones industrial average has closed back above 10,000 points. It has finished 89 points ahead at 10,077. The high-tech Nasdaq market has made more modest gains. The Nasdaq composite index has added 10 points to 1,870. On the economic front the main US consumer confidence measure has dipped lower for a 2nd consecutive m amid ongoing concerns about the outlook for job creation. The benchmark crude traded in NY has been to $US50.47/bbl. The situation in Nigeria continues to be a focus with the possibility of rebel strikes against Nigerian oil infrastructure. That is on top of supply concerns in Saudi Arabia, Iraq and Russia, hurricane-induced shortages in the US and the energy appetite of China. A growing number of analysts are starting to speak of crude going to $US60/bbl. In the meantime OPEC leading producer Saudi Arabia has announced it will lift its official production by half a mn barrels a day. In NY the key contract has fallen back to $US49.76. The UK sharemarket has registered a moderate advance. London's FT-100 index has ended the session 26 points higher at 4,567. Yesterday the Aussie market moved a little ahead. Resource stocks benefited from the climbing price of crude oil. BHP Billiton also announced new iron ore contracts with China, propelling its shares 17 c higher to $13.93. Shares in building products company James Hardie rose 7 c to $5.85 after its chief executive and chief financial officer stood aside. The All Ords rose 5 points to 3,638. On foreign exchange markets, the Aussie dollar continues to make headway. At 7.15 am it was being quoted at 71.76 US cents. That is up more than one 3rd of a cent on yesterday's local close. On the cross rates, it is at 0.5821 euros, 79.89 yen, 39.57 pence and against the NZ dollar it is at 1.07. The gold price has jumped to $US412.25/oz. Aussie stocks hit record high Sydney. The Aussie share market has moved back into record territory, following a strong night on Wall Street, pushed higher by resource stocks. The All Ordinaries index gained 0.4% this morning to 3,657. Shares in BHP added over 3% to a new high of $14.39, extending Tue's 1.4% rise, Rio Tinto added 2.1% to $38.18. Oil stocks were higher after oil surged above $50/bbl. Santos and Caltex both benefited. Woodside slipped slightly after hitting a record price on Tue. Aussie Leisure and Hospitality (ALH) is also stronger after a second bidder trumped a Woolworths-led takeover offer for the hotel owner. ALH is up more than 7% to $3.12, with Woolworths losing 17 cents to $13.37. Media giant News Corp gained 0.4% to $11.41. The big 4 banks, which constituted a 5th of the index, were all up about 0.2%. US military reserves baulk at Iraq, Afghanistan recall Washington (Reuters). 30% of former US soldiers who have been called back to duty involuntarily to serve in Iraq and Afghanistan have failed to report on time, and 8 have been declared AWOL, the US Army said. The Army's problem with mobilising soldiers from the Individual Ready Reserve (IRR), a seldom tapped personnel pool, is another sign of the difficulty the Pentagon is encountering in maintaining troop levels in Iraq and Afghanistan. So far the Army has mobilised 3,664 people from the IRR to active duty, but 1,085 have not reported on time to the Army post to which they were assigned, said Julia Collins, a rep for the Army Human Resources Command. The Individual Ready Reserve is made up of 111,000 people who have completed their voluntary Army service commitments and have returned to civilian life but remain eligible to be mobilised in a nat'l emergency. Many have been out of the active military duty for years. 8 of those recently ordered back to active duty have been listed as absent without leave, or AWOL and could face military criminal charges as deserters, Ms Collins said. In addition, their names will be entered into a nat'l criminal investigation database and they could be arrested if, for example, they are stopped by a police officer for a routine traffic violation, Ms Collins said. About 85% of those who did not show up on time have formally requested that the Army exempt them from duty due to health issues or some other hardship, she said. Most of the others have requested a delay in their reporting date. Most exemption requests are likely to be rejected, Ms Collins said. This marks the 1st large scale mobilisation from the IRR since the Gulf War of 1991. The Army, stretched thin as the US fights wars in Iraq and Afghanistan, has struggled to maintain force levels in those war zones. It has relied heavily on part-time soldiers from the Nat'l Guard and Reserve, and last spring kept 1000s of soldiers in Iraq ms longer than they had been promised. It also has issued "stop-loss" orders preventing tens of 1000s of soldiers designated to serve in Iraq and Afghanistan from leaving the military if their volunteer service commitment ends during their deployment. Iraq unsafe for poll -- King of Jordan Jordan's King Abdullah is concerned that violence in Iraq will prevent Jan elections there. Baghdad (CNN). Jordan's King Abdullah says only extremists will gain if Iraqi elections go ahead as planned in Jan. In a text distributed in advance of an interview with the French daily newspaper Le Figaro, the king said "it appears to me impossible to organize indisputable elections in the chaos currently reigning in Iraq." The king also expressed concern that partial elections which excluded cities such as Falluja could isolate Sunni Muslims, saying that could create even deeper divisions in the country. Abdullah, who is due to meet French Pres Jacques Chirac in Paris on Tue, has been a strong Middle E ally of the United States in its war on terror. Both US and Iraqi leaders have said polls will go ahead, but last week US Def Sec Donald Rumsfeld raised the possibility that elections could be excluded from dangerous parts of the country. In a bid to crack down on these dangerous areas, US Secretary of State Colin Powell has said the American military will move into insurgent-heavy "no-go zones" in Iraq to clear the way for legitimate elections. Abdullah has also urged Iraqi authorities to reconstitute elements of the old Iraqi army to help train security forces as insurgent attacks wrack the nation. American forces have been conducting almost daily strikes in the Sunni stronghold of Falluja, targeting Abu Musab al-Zarqawi and his followers in a bid to tackle those spearheading the attacks. Over the last 18 m authorities believe al-Zarqawi has led foreign fighters inside Iraq, with the US saying it believes the leader appealed to al Qaeda to help start a civil war inside the nation. He is believed to have masterminded the beheading of American Nicholas Berg, as well as attacks on the UN and the Red Cross. Falluja police said on Tue US airstrikes targeting an al-Zarqawi terrorist site killed at least 3 people and wounded nine others overnight. The US military says the strikes were targeted at a site where insurgents were planning suicide bombings against Iraqi citizens and security forces. * 2 Brit soldiers killed 2 Brit soldiers have been killed in an ambush on a Brit military convoy in the S Iraqi city of Basra, Brit's defense ministry said Tue. 2 Brit armored Land Rovers and a logistics vehicle were traveling in a convoy in the SW of the city when they were attacked, a defense rep told CNN. On Mon, insurgents killed at least 8 Iraqi nat'l guard members in attacks in Mosul and nr the cities of Baquba and Falluja, US and Iraqi officials said. Iraq's nat'l guard plays an important role in the US strategy to have Iraq take over nat'l security duties following the elections. Along with the nat'l guard, Iraqi police have been targeted by insurgents working to destabilize the current Iraqi interim govt. In a bid to crack down on insurgents, American military aircraft struck the Baghdad neighborhood of Sadr City on Mon, killing 5 people and wounding 46 others, including 9 children and 15 women, the director of a local hospital said. But the US military has said the reported number of casualties in Sadr City is "suspect," saying there has been "no precedent" for that type of collateral damage during the unit's 6-m tour in Baghdad. US forces have been battling militia loyal to rebel Shiite Muslim cleric Muqtada al-Sadr. Meanwhile, in a bid to secure the Iraqi-Syrian border, a high-level US military delegation arrived in Damascus for rare face-to-face talks with Syrian officials. Mon's talks follow a meeting last wk in which Pentagon and State Dept officials raised their concerns about former Iraqi regime officials operating in Damascus in support of insurgents in Iraq. A snr Pentagon official told CNN the talks are an effort to gauge whether Syria is committed to eliminating former regime elements operating in their country and whether they can help to stabilize the security situation in Iraq. "I think they are beginning to understand that it is in their interest to not see their border as a porous feature that can be used for terrorists to get into Iraq," US Secretary of State Colin Powell said Sun on CNN's "Late Edition." - - - The Airborne Corps on Mon referred Pfc. Lynndie England to trial by general court-martial, the corps announced. England faces 19 charges, including conspiracy and assault, in connection with the mistreatment of prisoners at the Abu Ghraib prison on the outskirts of Baghdad. An Iranian diplomat who was kidnapped more than 7 wk ago in Iraq was released Mon, an official at the Iranian Embassy said. Fereydoun Jahani was kidnapped Aug 7 while traveling from Najaf to Karbala, where he was to open a consulate. The Brit Embassy in Baghdad released an Arabic language radio appeal to win the release of Brit hostage Kenneth Bigley, who was taken captive from his quarters along with 2 Americans on Sep 16. Jordan's King Abdullah II said in an interview published Mon he believed 2 Italian women kidnapped in Iraq 3 wk ago were still alive and Jordan was trying to obtain their freedom. Blair urges Labor to unite after split on Iraq Brighton (Bloomberg). PM Blair apologises for taking Brit to war in false info Tony Blair, apologizing for "wrong" intel used to justify the invasion of Iraq, urged his Labour Party to set aside differences over the war as it prepares to campaign for an unprecedented 3rd term. He pledged to focus on tax relief for working families and improving schools and hospitals in the campaign for an election that must be held by mid-2006 and which Blair may call next y. He stopped short of apologizing for his decision to help US Pres George W Bush topple Iraqi Pres Saddam Hussein. "I can apologize for the info that turned out to be wrong," Blair said in a speech at Labour's annual conference in Brighton, England. "But I can't, sincerely at least, apologize for removing Saddam." Blair's support has dropped during the past y amid questions over his handling of the war in Iraq. The plight of Kenneth Bigley, a Brit hostage being held by a terrorist group in Iraq, and the death of 2 UK soldiers in the region overshadowed Blair's effort to focus on the domestic agenda at the conference this wk. Labour's backing by voters fell to 36% in Sep from 42% at the time of the last election in 2001, according to YouGov Ltd polls published today in the Daily Telegraph. Conservatives had support from 34% and Liberal Democrats 21%. YouGov based its findings on 2 surveys, with a margin of error of 3%age points. The first was conducted between Sep 17 and Sep 20 with 2,168 adults. The 2nd was between Sep 21 and Sep 23 and had 2,033 responses. * Flawed Intel Blair also apologized Sun in an interviews with the Observer newspaper and the Brit Broadcasting Corp for the flawed intel that Iraq had banned weapons. His comments today expanded on his thoughts about the matter. Former Cabinet members including Robin Cook and Claire Short had pressed him to apologize for the war. "The war on Iraq has hurt our support," Cook, who quit Blair's Cabinet in 2003 to protest the govt's stand on the war, said in an interview. "It's important for the prime minister to make clear we won't do it again." In calling for party unity and attempting to shift focus away from Iraq, most of Blair's speech focused on Labour's successes during its 7 y in office and the agenda for the next term. * 'Boom-and-bust' "There are people who a decade ago could tell you about interest rates double what they are today, of homes repossessed, of families who didn't know from one wk to the next where the mortgage payments were going to come from. But who talks about boom-and-bust economics today?" UK Chancellor of the Exchequer Gordon Brown, who spoke at the conference Mon, estimated the Brit economy will grow by between 3% and 3.5% in 2005, above the 2.6% pace forecast by economists surveyed by the Treasury. This year, the economy probably will expand 3.3%, according to the economists surveyed. "No one talks of mass unemployment now," Blair also said. "When 2 wk ago it fell to its lowest level for 30 y, it passed without notice." "Brit is working," Blair said. "The longest period of economic growth since records began, an economy now bigger than that of Italy and France. The lowest unemployment and highest employment rate of any of our competitors for the first time since the 1950s." * Applause from delegates Blair's 58-minute speech was interrupted 58 times by applause, even though a 3rd of Labour's 411 members of parliament voted against military action in Mar 2003. The speech was interrupted twice by hecklers who were removed from the conference hall. A lone protester objecting to the Iraq war was the 1st demonstrator, followed by a group supporting hunting rights. During Blair's speech, about 8,000 protesters also gathered outside the conference hall to express anger about Labour's decision to back a ban on fox hunting, a traditional sport of aristocrats and residents from the countryside, outside the cities where most Labour backers live. Blair's speech "was poor," said Andrew Cooper, a pollster at Populus Ltd "He was nowhere nr his best, and he seemed unsettled by the hecklers." Journalists for evening papers that went to press before the speech began were told Blair would say he was "genuinely sorry" about the divisions caused by Iraq. The words were removed from the final speech. "Words change all the time when a speech is being prepared," Labour Head of Communications David Hill said. "The sentiment was in there. The sentiment was exactly the same." * "Entirely Understand' Blair said in the speech, "I know this issue has divided the country. I entirely understand why many disagree. I know, too, that as people see me struggling with it, they think he's stopped caring about us -- or worse, he's just pandering to George Bush." He said people could take 2 views of the terrorist attacks on the US in 2001, either that they're "isolated acts" and "in time they will wither" without further provocation, or the attacks were a "perversion" of extremists. "The only path to take is to confront this terrorism, remove it root and branch, and at all costs stop them acquiring the weapons to kill on a massive scale," Blair said. "These terrorists would not hesitate to use them." * Opp'n Parties He ridiculed the opp'n Liberal Democrats, which opposed the war, as a party he "can't take seriously." The Conservatives, he said, were responsible for 2 recessions, interest rates at 10% and unemployment of 3 mn under Margaret Thatcher and John Major. "Tony Blair is very much out of touch if he thinks the only reason people don't trust him is Iraq," said Liam Fox, co-chairman of the Conservatives. "The real reason is because he said taxes wouldn't rise and they have. He said no tuition fees for students and now there are." Liberal Democrat Leader Charles Kennedy said Blair broke a promise by raising tuition fees for university students, and he lost the public's trust by fighting the Iraq war. "Has he already forgotten that he broke his promise at the last election not to introduce tuition fees?" Kennedy said Thu at his party's conference in Bournemouth, England. "The reality is that he's squandered public trust on this. And he's squandered it over his misguided war in Iraq." * Cabinet Mins Cabinet ministers including Paul Boateng and Geoff Hoon said Blair's speech would energize supporters ahead of the next election. "He took on the difficult arguments about Iraq and the argument for the war," said Hoon, the defense secretary. "He's a man, a leader who is prepared to take difficult decisions but stand by them." Unions, which founded the Labour Party in 1900 and still fund half its annual budget, praised the speech and said it would help heal divisions within the party. "The PM today dealt with the key issues facing the party head on," said David Prentis, general secretary of Unison, the nation's biggest union. "Saying he was wrong over the WMD, he showed he was a strong leader." Reminding voters why they chose Labour in 1997 after 18 y of Conservative rule, Blair said the govt has created 1.8 mn jobs, the lowest interest rates in 2 generations and an economy now bigger than the ones in Italy and France and trailing only Germany in the rest of Europe. "Brit is working," Blair said. "This isn't a country in decline. We are winning. I want us to win a 3rd term not so that we can go into the history books but so that we can consign Brit's failings to the history books." US polls show Bush in lead Washington. The latest polls in the US election are putting Pres George W Bush 7 points ahead of his Democrat rival John Kerry, a decisive lead. A poll taken by the Washington Post newspaper and the American ABC network finds 51% of people planning to vote for Bush, with just 44% supporting Kerry. It confirms other recent polls showing the Pres with a significant lead. Voters say they are not sure what Sen Kerry stands for and think Bush offers stronger leadership. Sen Kerry has a critical chance to connect with voters later this week when he and the Pres face each other in a debate for the first time. Hackers hit Qaeda-linked Iraq group's website Dubai (Reuters). Hackers on Tue attacked a website of an al Qaeda-linked group that beheaded 2 US hostages in Iraq, rerouting visitors to a page showing a penguin toting a machine-gun and warning against hosting such sites. The site of the Tawhid and Jihad Group of al Qaeda ally Abu Musab al-Zarqawi, set up on a site providing free web hosting, last wk carried a tape of Brit hostage Kenneth Bigley appealing for his life as well as videos of the decapitation of the 2 US hostages. "Host them and your next!" was the message left on the site by the hackers, calling themselves TeAmZ USA, who have already attacked several Islamist and pro-al Qaeda Web sites. Zarqawi's group has threatened to kill Bigley next if women prisoners in Iraq are not released, but has not set a deadline. Al Qaeda and other militant groups have widely used the internet to spread their message, often using sites providing free web hosting and frequently moving after their sites have been taken down. Second bomb threat for Greek airline NY. A Greek Olympic Airlines plane heading to NY from Athens has made an emergency landing in SW Ireland after a bomb alert, the 2nd such incident in 3 days. A rep for the airline says there was a call to a local newspaper saying a bomb on the plane would explode within an hr. The plane was carrying 295 passengers and 12 crew, who have all now left the plane. Argentine teen shoots dead 4 classmates BA (AFP). A 15-yo youth opened fire on classmates at his school in southern Argentina, killing 4 students and injuring 5 others, authorities said. The shooting happened at the Islas Malvinas school in the town of Carmen de Patagones, some 800 km S of Buenos Aires, police said. The boy, said to have been an introvert, took his father's 9 millimetre handgun into the class after a daily ceremony for the raising of the nat'l flag, police said. He began shooting as students waited for a teacher to arrive, police and witnesses said. The boy's father had the weapon as a member of Argentina's border and river police. 3 of the 5 wounded students were hospitalised in serious condition, while the other 2 were released, officials said. AUS, India urged to co-operate at sea Joint patrols: The report says co-operation is needed to fight terrorism. Canberra. A report from an Aussie defence think tank says the navies of India and AUS should join forces in the Indian Ocean. The assessment says the strategic horizons of AUS and India are converging in the eastern Indian Ocean and terrorism provides a common concern. The study was released by the Aussie Strategic Policy Institute. India and AUS resumed defence contacts in 2000, after a 2-year break caused by India's nuclear bomb tests. The report says the unseemly public squabble between CBR and New Delhi over the tests forced both sides to evaluate their nat'l interests. The study says it is time to build a more substantial and predictable security relationship. It calls for annual meetings between the leaders of the 2 countries, noting that it is 18 y since an Indian PM came to AUS. The study suggests joint naval operations by AUS and India in the eastern Indian Ocean, preferably with South-East Asian navies, to deal with piracy, terrorism at sea and people trafficking. Aid workers freed 2 kidnapped Italian aid workers were freed Tue after 3 wk of captivity in Iraq, and 6 other hostages in the country were also released. Baghdad (AAP). US forces bombed a suspected militant hide-out in Fallujah and the military said its frequent strikes have taken a toll on the network of Jordanian-born terror leader Abu Musab al-Zarqawi. But in a sign of continuing insurgent strength, dozens of militants -- some waving banners of al-Zarqawi's Tawhid and Jihad group -- drove freely through the streets of another central Iraqi city, Samarra, where US and Iraqi cmdrs had claimed success wk ago in suppressing the insurgency. The gunmen waved automatic rifles and RPG launchers, stopping cars and taking music tapes from passengers -- giving them tapes with Koranic recitations in exchange. Jordan's King Abdullah II warned in an interview published Tue that extremists -- "the best organized faction" in Iraq -- would emerge the victors if elections are held on schedule in Jan amid the current chaos. The release of Italians Simona Pari and Simona Torretta brought a sense of relief to their home country -- which has seen 2 Italian hostages killed since Apr and feared the 2 women had met the same fate after claims of their death were posted on the Web last week. While the Italians were being held, other kidnappers beheaded 2 US hostages. "Finally a moment of joy," Italian PM Silvio Berlusconi said, announcing to the Parliament in Rome that the 2 Italians and 2 Iraqis kidnapped with them were handed over to the Red Cross in Baghdad. "The 2 girls are well and will be able to return to their loved ones tonight," he said, to cheers from legislators. Ms. Pari and Ms. Torretta were kidnapped on Sep 7 along with their Iraqi colleagues from the Baghdad office of their aid agency Un Ponte Per ... (A Bridge To...). 2 different groups said they were behind the abductions, demanding the withdrawal of Italian troops from the country or the release of Iraqi female prisoners. The same 2 groups later put out Web statements saying the 2 Italians had been killed, but the Italian govt cast doubt on the authenticity of those statements. News of the release came after a Muslim leader from Italy met with a local Muslim association in Baghdad on Tue to press for their freedom, though it was not immediately known if there was a connection. The 2 women, both 29, had been working on school and water projects in Iraq. Also freed were Raad Ali Aziz and Mahnaz Bassam, 2 Iraqis abducted with the Italians. Meanwhile, 4 Egyptian telecommunications workers abducted last week were also released, their parent company, Orascom, announced. It said it was trying to win the freedom of 2 other Egyptian employees kidnapped at the same time. An Orascom rep would not comment on whether a ransom had been paid. The Egyptian charge d'affaires in Baghdad, Farouq Mabrouk, said the kidnapping "was motivated by financial reasons." More than 140 foreigners have been kidnapped in Iraq since the fall of Saddam Hussein's dictatorship last y. Some kidnapping groups seek to extort ransom, others pursue the political motives of trying to force foreign forces or companies to quit Iraq. Many hostages have been killed. Meanwhile, the violence that has been escalating in Iraq continued. In the S city of Basra, insurgents attacked a Brit military convoy, killing 2 Brit soldiers, the Ministry of Defence in London said. US warplanes struck in Fallujah about 4 a.m, and there was no word on casualties. Early reports showed that no civilians were in the area when the blast went off, the military said. Intel reports indicated that the militants targeted in the strike were "rising" associates of Mr al-Zarqawi and "planning attacks using foreign suicide bombers in vehicles rigged with explosives," the military said. The military said wk of air strikes in rebel-held Fallujah have exacted a heavy toll on his network and intel indicates the al-Qaeda-linked group has been forced to reorganize its leadership. Mr al-Zarqawi's group has said it was behind scores of suicide attacks and kidnappings across the country. US forces have not patrolled in Fallujah since ending a 3-wk siege of the city in Apr that left 100s dead. Since then, insurgents have strengthened their grip on the city, and military cmdrs say an assault may be inevitable to restore authority there ahead of nationwide elections slated for Jan. Iraqi interim PM Ayad Allawi warned that a "decisive military solution" may soon be carries out in Fallujahif a political one is not found. "I think we waited more than enough for Fallujah," the Iraqi leader said in an interview aired late Mon on the Arab television network Al-Arabiya. He indicated that Iraqi security forces would be used in any operation against the city. Another possible target of an offensive is Samarra, where US troops entered briefly on Sep 9 under a peace deal brokered with tribal leaders aimed at breaking the insurgents' hold over the city. Mr Allawi and US cmdrs hailed the move into Samarra as a success in the fight against militants. Since then, however, attacks in the city have increased, and for the first time gunmen on Tue made a bold public showing with their 2-hr drive through the streets. 2 of the vehicles they drove were police pick-up trucks, apparently stolen by the insurgents. Samarra has been under insurgent control and a virtual "no-go" area for US troops since May 30. Freed Italian aid workers arrive home Free: Earlier reports had said the pair had been killed. Rome (AFP). 2 female Italian aid workers arrived back in Rome late yesterday after being released from a 3-wk hostage ordeal in Iraq, sparking scenes of joy at their homes and relief among world leaders. Simona Torretta and Simona Pari, both 29, arrived at Rome's Ciampino military airport to be showered with hugs and flowers by their families and colleagues from their aid agency, A Bridge to Baghdad. Their relatives and Prime Min Silvio Berlusconi boarded the Italian air force plane to welcome them, and a host of leading politicians turned out to greet them. The women, who were seized by armed men on Sep 7 at their Baghdad offices, stepped off the plane smiling broadly and wearing light-coloured long tunics. They crossed the tarmac holding hands and looking relaxed. "We're fine," they told waiting reporters. They did not comment on their 3 wk in captivity, simply telling their family and friends "we were always well-treated". Simona Torretta fell into her mother's arms, apologising for having made her suffer. "Mum, I'm sorry I made you suffer," she said. After spending a short time with their families, the 2 Simonas were taken for questioning by the Rome magistrates investigating their kidnapping. Mr Berlusconi, who backed the US-led war to oust Saddam Hussein and who has sent some 3,000 Italian troops and police to serve in the US-led coalition in Iraq, described the women's release as a "moment of joy". "After so many days, so many nights, so many paths trodden and 16 negotiations launched keeping us all in suspense, the story ends," he told an impromptu news conference in Rome shortly after the women's release was announced earlier yesterday. Pope John Paul II also expressed his "great joy" at their release, while France's PM, Germany's For Min and a White House rep all welcomed the news of their liberation. Italian Pres Carlo Azeglio Ciampi said Italy shared the families' joy but tempered his words, recalling the execution of other hostages. "In this moment of great joy, there is still pain for all those who were killed in a barbaric way," he said. "We remain anxious about the other hostages still in the hands of their kidnappers and we renew our appeal: free them." Italy had been shocked by the murder in Aug of Italian journalist Enzo Baldoni in Iraq, who was executed by his abductors after Mr Berlusconi refused to bow to demands to pull his troops out of the war-torn country. An Italian security guard was kidnapped in Iraq and killed in Apr, also after Rome refused to give in to demands to withdraw its troops. Although the Italian Govt has declined to confirm it, a Kuwaiti newspaper which had announced at the weekend the women's impending release said a ransom had been paid and the paper's publisher reiterated the statement on yesterday evening. "The sum, as we had written, was one mn dollars," said Ali al-Roz, publisher of Kuwaiti newspaper Al-Rai al-Aam. "A well-informed source in Baghdad told us." An Interior Ministry official, Under-Secretary Alfredo Mantovan, declined to confirm or deny the report. But he added: "We didn't give in to any blackmail." It was never quite clear which group detained Ms Pari, Ms Torretta and their 2 Iraqi colleagues. Their abduction was claimed by 2 organisations, while several statements posted on websites on their fate were dismissed by the Italian authorities. The 2 Simonas, both committed pacifists, had been working on humanitarian projects for Iraqi children. 2 French journalists, apparently captured by the same group that said it had kidnapped the aid workers, were still being held yesterday evening and there was still no news of a Brit hostage, Kenneth Bigley. UN warns of Iraqi malnutrition UN (Reuters). One in 4 Iraqis are dependent on food rations to survive and many of them have to sell what little food they have for basic necessities like medicine and clothes, the UN World Food Program (WFP) said. In a grim report underscoring troubles in Iraq, the Rome based WFP said support from the state run Public Distribution System was grossly insufficient to prevent chronic malnourishment. "The political environment before the war made it impossible to analyse the level of poverty and hunger in the country," said Torben Due, the director of the WFP's program in Iraq. "For the 1st time, we are getting an accurate picture of people's access to food," he said in a statement. Squarely blaming the situation on y of internat'l sanctions and war, the WFP said that some 6.5 mn Iraqis, or about 25% of the population, were "highly dependent on food rations and therefore vulnerable". Of those 6.5 mn, 2.6 mn resell part of their rations to buy other items, like medicine. The survey on food security, which took place last y and covered 28,500 households in Iraq, also showed that 27% of all children up to the age of 5 are chronically malnourished. "Despite receiving food rations from Iraq's Public Distribution System, these people are still struggling to cope," Mr Due said. "Once [Iraq] stabilises politically and economically it can take care of this portion of the population. But until that happens, external assistance will be required," he added. The WFP receives most of its funding from the US. The group said it had launched a one y emergency operation that will cost $84 mn and reach 220,000 malnourished children and 350,000 pregnant and lactating women. The report comes at a time of increased scrutiny into the former UN oil-for-food program, the $94 bn humanitarian aid plan that operated from 1996 and was shut down last y. It allowed Iraq to sell oil to buy civilian goods to ease the impact of 1991 Gulf War sanctions on ordinary Iraqis. After the fall of Saddam Hussein documents surfaced that appeared to show the program had been rife with bribery and kickbacks, prompting UN Sec-Gen Kofi Annan to order an investigation. Palestinian uprising marks 4th year Jerusalem (AP). The Palestinian uprising marked its 4th anniversary with signs that the violent Hamas group is preparing a formidable political challenge to Yasser Arafat, despite a series of devastating blows from Israel. Reflecting on 4 y of Palestinian-Israeli violence, the Palestinian premier said both sides should reassess their positions. Hamas published newspaper ads urging supporters to vote in upcoming municipal elections, saying "it's time for change." A top Hamas leader also indicated that the group may challenge Arafat in presidential elections, which have not yet been scheduled. About 30 Israeli tanks have moved into N Gaza, witnesses said. Military sources said the purpose was to try to stop Palestinian militants from firing rockets at nearby Israeli towns. Palestinians said a 22-yo Hamas militant was killed in an exchange of fire with Israeli forces near the Jebaliya refugee camp. Gunmen took up positions to resist the Israelis, they said. Also, Palestinian militants released an Arab-Israeli television producer, a day after his abduction in the Gaza Strip. It remained unclear why Riad Ali, a reporter for CNN, was taken hostage. The kidnapping, coupled with Hamas' electoral challenge, were apt reflections of the state of affairs in the W Bank and Gaza Strip after 4 years of fighting with Israel. The violence has left Arafat's Palestinian Authority severely weakened, leading to widespread chaos and boosting Hamas' popularity. "We need an evaluation of these 4 y," said Palestinian PM Ahmed Qureia. "Where have we been right and where have we been wrong. What did we achieve and what didn't we achieve?" Qureia also called on Israel to reassess its policies. The uprising erupted on Sep 28, 2000, after Ariel Sharon, then Israel's opp'n leader, visited a sensitive Jerusalem hilltop revered by Jews and Muslims. Palestinian riots broke out, and 5 m later Sharon defeated Ehud Barak in a special election for PM. The fighting has taken a heavy toll on both sides, killing more than 3,000 Palestinians and nearly 1,000 Israelis. But Israel appears to have gained the upper hand. It has confined Arafat to his W Bank HQ for 3 y and killed 100s of leading militants. The Palestinian economy is in tatters. Gaza restrictions affecting food supplies: UN UN. The United Nations Relief and Works Agency says Israeli restrictions at entry points into the Gaza Strip are severely affecting its ability to provide food and other aid. A rep in Geneva, Matthias Burkhart, says many staff are required to cross checkpoints on foot, something which he says is prohibited under current UN security rules. Mr Burkhart says the organisation is most worried by the blocking of food supplies. "We usually have to bring 25 containers per day, but due to security restrictions, we are only able to bring in about 10 to 12 and we have a backlog of containers leaving which again has many implications financially," she said. Alleged Israeli agents released from NZ jail Wellington (AFP). 2 alleged Israeli secret agents were released from jail after serving terms for fraudulently trying to obtain a NZ passport and being part of an organised crime gang. Israelis Uriel Zoshe Kelman and Eli Cara left Mount Eden prison in 2 cars shortly after 5.00 am, according to the domestic NZPA news agency. They were believed to flying out of the country shortly after midday. PM Helen Clark refused to comment on the pair whose arrest caused a diplomatic furore. Ms Clark said when they were jailed that she had "no doubt" the 2 were agents and suspended high-level contacts with Israel, including an Aug visit by Israeli Pres Moshe Katsav. Kelman and Cara pleaded guilty in Jun in the Auckland High Court and were sentenced to 6 m in jail and ordered to pay $46,000 each to the Cerebral Palsy Society for using the name of a disabled man to try to obtain a false passport. They had their sentences cut for time served in remand and for good behaviour, but the money has yet to be paid to the society pending a legal appeal. Israel pushes into Gaza strip Gaza. Israeli troops are reported to have killed a member of the Palestinian radical group, Hamas, during a push into the N Gaza Strip. The Israeli raid is the 3rd large-scale operation of its kind in recent ms. Palestinian security sources say that as many as 30 tanks have gathered on the edge of a town called Beit Lahiya. A 2nd Israeli armoured column has advanced into an area further east. There are helicopters in the sky and several times the sound of tank fire has boomed across the strip. Israeli military sources say the aim is to try to stop Palestinian militants launching rockets at Israeli settlements in Gaza and at targets across the boundary fence in Israel itself. Timor Sea talks target Christmas agreement Darwin. Officials from AUS and E Timor are in Darwin today for talks to resolve the dispute over oil and gas reserves in the Timor Sea. Both sides say they had productive discussions in CBR last wk and are still aiming for a final agreement by Christmas. A deal could involve E Timor giving up its boundary claims in return for more revenue, the details of which are still to be worked out. The talks are scheduled to last 2 days and coincide with a new television advertising campaign in Darwin, funded by a Perth businessman, promoting a better deal for E Timor. The advertisements have been launched in key marginal seats around AUS. Indonesia arrests terror suspect: report Jkarta (AP). Indonesian police have arrested a key associate of alleged Southeast Asian terror mastermind Hambali on an island in the country's far NE, Koran Tempo newspaper said. Adrian Ali, alias Amin, was arrested on Tinakareng, N Sulawesi province, after police found equipment used to make identity papers in his house, the paper quoted local police Col Johnny Hotma Hutauruk as saying. 2 other suspects were arrested with Ali, the report said. The report did not say when the arrests took place, nor what the men would be charged with. Police were not immediately available for comment. Tinakareng lies just S of the Philippine's Mindanao island, where Jemaah Islamiah, al-Qaeda's Southeast Asian ally, is reported to run terrorist training camps. Hutauruk said Ali was a key associate of Hambali and accompanied him on trips to Afghanistan, Pakistan and the S Philippines before Hambali was arrested in Thailand last y. Hambali was allegedly the operations chief of Jemaah Islamiah, which has been blamed for the 2002 nightclub bombings on Bali island, an attack last y on the JW Marriott Hotel in Jakarta and this m's blast at the Aussie Embassy. Hambali, an Indonesian citizen, is being held by the US at an undisclosed location. Tinakareng, which is part of the Sangihe archipelago, lies about 2,160 km NE of Jakarta. Paralympians' parade set for Oct 13 Sydney (AAP). Streamers will fly when AUS congratulates its victorious Paralympic team with a welcome home parade through SYD streets on Oct 13. PM John Howard announced interstate Paralympians would be flown in from around the country for the event. NSW Prem Bob Carr said the team had done AUS proud with its haul of 5 gold, 7 silver and 4 bronze medals on day 10 of the games. "The effort of the Paralympians has been outstanding," Mr Carr said in a statement. "We'd like to invite all SYDsiders to come out and show their support for these world class athletes who are an inspiration to us all." AUS climbed to 5th place on the medal tally and finished 1st overall in track cycling, second in athletics and 10th in swimming. China leads the standings, with 61 gold, followed by Great Brit, Canada and the US. The parade will start at noon (AEST) on Wed, Oct 13, when athletes will march from the Museum of Contemporary Art to the Town Hall. The premier and City of SYD Lord Mayor Clover Moore will then officially welcome home the group in a formal reception. Girl recants allegations in Sierra Leone sexual abuse case Freetown (ABC, Sally Sara). A teenage girl has dismissed allegations that she was sexually abused by an Aussie police officer in Sierra Leone. The girl denied that she was sexually abused by former Vicn Police Superintendent Peter Halloran. The 13-yo told the Sierra Leone High Court that fellow witness, Mr Halloran's Aussie colleague and housemate Mandy Cordwell, encouraged her to tell police that she was having an affair with Mr Halloran. She says she never slept with the former homicide chief. Peter Halloran has rejected the charges against him. The 56-yo was working as a war crimes investigator with the UN backed special court for Sierra Leone. An internal investigation found there was not enough evidence to support the allegations against him. Pitcairn prosecution dismisses 'judicial bias' claim Pitcairn Is, C Pacific. An eleventh hr attempt has been made to get an adjournment of the trials of 7 Pitcairn men facing a total of 55 sex abuse charges. The trials are due to start on Thu, but in the Pitcairn Supreme Court the defence made an application claiming apparent judicial bias. The defence claims that a meeting in Dec 2000, between the Chief Justice and the Brit minister responsible for overseas territories was improper. The prosecution told the court there was nothing wrong with holding such a meeting and described the defence application as fanciful. Alcoa apologises for caustic soda spill Perth. Aluminium company Alcoa has made a public apology following a spill at its Kwinana refinery S of Perth at the weekend. About 4 kilolitres of caustic soda leaked from a pipeline at the alumina refinery on Sun night coating nearby vegetation with slurry. The leak has sparked a Dept of Environment investigation into Alcoa's environmental performance and whether the company should be forced to comply with a stricter licence. In a written statement, the refinery's manager Simon Butterworth has apologised for the spills and says the company is taking steps to make sure it does not happen again. He says it has started a $multi-mn upgrade of pipes and believes this will improve the refinery's environmental performance. Racing identities launch Spring Carnival Melbourne. This year's Spring Racing Carnival officially got underway this morning, with racing identities turning out in MEL's Federation Square for a launch ceremony. Claire Hawkes, the daughter of female jockey Linda Jones, has been named the Carnival's Ambassador. The Carnival runs for more than a m and ends with the Ballarat Cup on Nov 17. The main event is the Nov 2 running of the MEL Cup, which last y was attended by more than 375,000 fans. McDonald's boss back in hospital for cancer treatment Sydney (AFP). McDonald's chief executive Charlie Bell is back in hospital this wk to deal with complications arising from cancer surgery earlier this year, according to a notice released by the company. In a voicemail that he left for employees, Mr Bell said that he was working with his doctors to clear up a blockage and to continue chemotherapy treatments for his colorectal cancer. The 43-yo from SYD underwent surgery for the cancer earlier this year, less than a m after being nominated to the top job at the fast food giant following the sudden death of his predecessor, Jim Cantalupo. Mr Cantalupo, a trim 60-yo, died of a heart attack in Orlando, Florida where he was attending a conference of worldwide McDonald's franchisees. Mr Bell said he remained "optimistic," in spite of the complications, in a transcript of the voicemail provided by the company. Another resignation hits Energex Greg Maddock took his own life almost 2 wk ago. Brisbane. Another director of the Qld electricity and gas utility Energex has quit. It is understood Sally Pitkin handed in her resignation late yesterday. Qld Prem Peter Beattie is expected to make a statement on the issue in Parliament this morning. Another director Brian Kilmartin and the former Energex chairman Don Nissan also resigned this wk. A report tabled in Parliament yesterday found it is arguable Mr Nissan breached the company's code of conduct when he approved tens of 1000s of dollars in expenses for the former Energex CEO Greg Maddock. Mr Maddock took his own life almost 2 wk ago. WA warned of fuel price rises There is concern rising fuel prices will have a catastrophic impact on the transport industry. Perth. Perth motorists are being warned they could be paying $1.15 a litre for petrol in the coming wk as a result of record global prices of $US50/bbl for crude oil. Fuel prices in regional and remote areas are expected to climb even higher. Western AUS's Motor Trade Association (MTA) is warning Perth motorists to expect a big jump in the price of fuel. FuelWatch has been playing down claims of increased prices, but the MTA says the cost could go as high as $1.15 a litre if world oil prices continue to rise. MTA executive officer Peter Fitzpatrick says it will take several weeks before Perth is likely to see prices soar to that level, he says motorists can expect fuel to go up several c/L by the weekend. "A price of a $1.15 by the end of the wk ... I don't believe that would be justified," he said. "I think you're likely to see prices around about $1.05 maybe a $1.08 a litre maximum," Mr Fitzpatrick said. The Transport Workers Union says the rising cost of petrol is the single greatest impost facing the industry. The union's Glenn Sterle says an increase of one cent a litre costs some fleet operators tens of $1000s pm. "It has the ability to tip them over mate, tip them over the edge and out of the industry, and unfortunately the consumer will have to pay," he said. "The consumer is the end payer and the transport operators can not carry this cost." Activists don't understand Middle E trade: exporters Ignorant: Exporters say the city protesters do not understand rural industries. Darwin. Live animal exporters in the N Territory have slammed a letter placed in a nat'l newspaper today calling for an end to trade into the Middle East. Dame Elisabeth Murdoch and actor Hugo Weaving are part of the 58 prominent Aussies that have signed the letter, along with the Greens leader Bob Brown. Steve Ellison, from the NT Live Exporters Association, says such a ban is not warranted and would be be disastrous for the whole industry. "Whilst I can appreciate those 58 people's rise to prominence, they've obviously had no experience other than city life basically," he said. "They turn the tap on and water comes out, you turn the light switch and the light comes on. "It doesn't work like that out here." Exports recovery fails to meet expectations Disappointing: Exports have not picked up as quickly as expected. Canberra. A recovery in Aussie exports is still failing to establish itself to the extent widely hoped for, despite the trade deficit falling below $2 bn. The deficit on trade in goods and services for Aug has come in at a seasonally adjusted $1.9 bn. That is down from the $2.7 bn shortfall run up in Jul, which was the 2nd biggest on record. But the turnaround is entirely due to an easing in the flow of imports into AUS. There has been a 5% drop in the nation's imports bill, which is the 1st decline in 6 m. But exports have been fractionally weaker. Although there have been significant increases in receipts for coal and metal ores, rural exports have slumped 9%, stripping $220 mn from offshore earnings. Cereal grains, wool and meat are the main contributors to the fall. Grandparents feel child care squeeze Canberra. An advocacy group says many grandparents feel their adult children are taking advantage of them over the provision of free child care. Grandparents AUS says the high cost and lack of child care places are forcing some families to rely on elderly relatives to look after their children. Director Anne Mcleish says while only a small number of respondents said they faced abusive behaviour if they did not become babysitters, most felt they had to look after their grandchildren out of necessity. "Many grandparents are providing occasional child care," she said. "In some instances it is the case that quite elderly grandparents are looking after quite young children because their families can not afford the child care or can not find a place at all." Motorola to axe 120 staff in Adel Adelaide. Staff at Motorola in Adel are coming to terms today with news that 120 jobs will go from the local operation over the next 12 m, under a global restructure. Another 23 employees who work in electronic design automation will be offered work at the new Adel semiconductor design centre. Motorola's global software group employs about 340 people in Adel. Managing director John Gherghetta says Adel will still have an important role in the company's internat'l operations. "It'll be one of our few chip design centres globally and it will be our global headquarter's centre of excellence for public safety security solutions," he said. "There's approximately 150 people in the chip design program and there'll be another 55 people right now on the public safety security." The Association of Professional Engineers, Scientists and Managers, which represents some of the Motorola staff says it will seek more info on the fate of the workers. Industrial officer Edward Grue says he will write to the company this week. "We need to know the actual locations and the numbers of employees that are going to be affected," he said. "We need to discuss with the company exactly what sort of severance packages they will be offering. This is a disappointment that this is happening." PM expects matching contribution for SA water scheme [The rest of the money apparently is coming from the state's GST revenue]. Adfelaide. PM John Howard has announced a program to recycle water from the Glenelg Waste Treatment Plant nr Adel. He says it is part of a $200 mn commitment over the next 5 years for water recycling projects, which he will announce later today. Mr Howard says the program will be funded through the Nat'l Water Trust and rely on a matching contribution from the SA Govt. "I know that it is a project which the SA Govt has talked about in the past," he said. "We therefore would imagine that the SA Govt would match what we're going to put in because it's so very important, it's a very specific part of the water improving Adel approach that we have." However state Environment Min John Hill has accused the Fed Govt of deception over the water recycling project. Mr Hill says the Waterproofing Adel project was previously developed by the State Govt and now appears has been adopted by the Fed Govt. But Mr Hill says what he finds more insulting is that the $200 mn 5-y project will be funded by money previously allocated to the states under the Competition Payments Program. "The Commonwealth gives us money for competition policy, they're now stopping that program and that money they were giving us, our money, they're going to direct towards this water initiative but at the same time we have to provide matching funds to that other source of money so we'll be paying twice for a program which we developed for which he will now try and take credit," he said. Call for Migration Act changes to protect children Sydney. An academic and retired Family Court judge says AUS's Migration Act is a fortress that prevents child welfare authorities from intervening in the nation's detention centres. Professor Richard Chisholm from the University of SYD was addressing a nat'l law conference on Qld's Gold Coast. Delegates were told nearly 100 children are in immigration detention and most of them are kept under lock and key. Professor Chisholm says the Migration Act must be amended so state and territory authorities can ensure the wellbeing of children in such centres. "It seems to me that the issues about whether AUS will provide a kind of legal protection which would seem to be mandated by internat'l conventions -- I do see that as an urgent question," he said. Democrats to keep up pressure over asylum seekers Canberra. The Aussie Democrats will maintain their pressure on the next fed govt over AUS's treatment of asylum seekers, if the party can retain its strength in the Senate. The Democrats have launched their refugee policy in Adel, pledging to scrap mandatory indefinite detention and temporary protection visas and to review the Migration Act. Leader Sen Andrew Bartlett says the Democrats will not let the issue of detention be forgotten during the election campaign. "3 y ago these people were the centre of a firestorm in the middle of an election campaign," he said. "3 y on both of the major parties are happy to talk about anything else but refugees, but the refugees themselves, the asylum seekers are still suffering. "The Democrats' simple goal is for that suffering to end." Phone blamed for SYD Airport scare Sydney. A mobile phone accidentally left turned on in luggage is being blamed for a security scare at SYD Airport last night which left tens of passengers from a Virgin Blue flight stranded. The MEL-bound plane was due to take off shortly before 10 pm, but news of the phone forces its immediate evacuation while baggage handlers scoured the cargo hold to find it. "Nobody's given us an answer, all they did was turn around and said was there was a mobile phone stuck in the cargo hold, and everybody had to get off," said passenger Peter Chronakis. "Twenty-four hours later we're still stuck at the airport." Tensions grew in the terminal as the phone eluded searchers. "It's just been disastrous, kids crying, people pushing and shoving to get put on buses, it was horrible," recalled passenger Sandra Megarry. Businessman Bobby Amin said: "It's an absolute joke, complete waste of time, I was meant to be in MEL last night, it's now 7.30 am in the morning, I've got appointments all day today, so I'm very, very put out." The baggage handlers union said the incident highlighted the lack of security coordination at Virgin, amid claims untrained staff were sent to retrieve a bag from a Singapore Airlines flight on Mon after a passenger said there was a bomb in his baggage. "There has been no training, there's no coordinating authority of what to do, how to do it, what processes to follow to make sure this is dealt with by the appropriate authorities," said Tony Sheldon from the Transport Workers Union. He's called for govt intervention. "It's like sending canaries down a mineshaft, [but] in this case it's real people." Flu probe delves into nursing home deaths Sydney. Investigations are continuing into outbreaks of influenza in 4 Hunter Valley nursing homes, with 5 more deaths in as many days. Hunter Health says cases of influenza A have been confirmed in 3 of the 4 privately operated aged care facilities -- several residents at the 4th home are suffering flu-like symptoms and 5 have died this wk. At this stage, the deaths have not been conclusively linked to influenza A, although further testing is underway. The same illness was responsible for the deaths of 10 elderly residents at the Bethel nursing home in the Newcastle suburb of Waratah earlier this m. Currently 80 people are suffering from flu-like symptoms at the 4 facilities. HEMP party preferences up in smoke Nimbin, NSW. The Help End Marijuana Prohibition party (HEMP) says it has mixed up its voting preferences for the election. Candidate Michael Balderstone from Nimbin in N NSW says votes "above the line" on the Senate ballot paper could lead to preferences being given to parties that do not support HEMP. He says it is an embarrassing mistake. "Our preference man certainly wasn't stoned at the time and perhaps we think it might have been better if he was," he said. "Anyway he wasn't and I think there was this mad frenzy of trading that happened and he was trying to do the best thing by us and some people make deals that they don't really honour then when everyone's preferences get faxed in. "We're encouraging people to vote below the line if they can be bothered and that way you get to make a protest vote on the cannabis laws and then vote for the party of your choice," he said. Govt plays down Opp'n pension claims Canberra. The Fed Govt has denied it has a secret agenda to cut pensions, including the disability and single parent payments. The Opp'n has released govt documents it says reveal a plan to roll the working age pensions into a single payment all linked to price rises rather than wage rises as is currently the case. Labor's families rep Wayne Swan says the move would save the Govt more than a bn dollars over 4 y and could affect up to a mn people. Family and Community Services Min Kay Patterson says it was the Govt itself that 1st linked the pensions to average male weekly earnings and there is no plan to change the situation. "The Govt gets lots of suggestions, lots of options put to it," she said. "This is a document that Mr Swan trots out twice a year, he does it now to cover up for the inadequacies of his tax and family policy, which he won't subject to Treasury and Finance until the last minute because he knows it's riddled with holes." I'm ready to lead: Latham Canberra. The Labor Party faithful has given leader Mark Latham a rousing reception at the official launch of the party's election campaign. Mr Latham used his speech to tie together the key themes of the campaign, focusing on older Aussies and families. "I see a real urgency in this campaign -- the urgent need to change now, the urgent need for an Aussie Labor govt," Mr Latham said. The theme of Mr Latham's launch is "taking the pressure off families" but there is no spending spree. Mr Latham promises that his govt would be economically responsible. Mr Latham has unveiled a $2.9 bn plan called 'Medicare Gold' to pay for health care in public and private hospitals for all Aussies aged 75 and over. Labor would provide 2.4 mn specialist treatments free of charge. Mr Latham says that will mean older Aussies will not need private health insurance and that will lead to a fall in private hospital cover for all Aussies. "It's a gold-plated Medicare system," he said. "It's Medicare gold and only a Labor govt will deliver it." He says the election is a referendum on Medicare and that the Govt's goal is the destruction of Medicare. "Unless we change now it'll be too late to save Medicare," he said. "Labor's top priority is public health, investing in public hospitals." Mr Latham also pledged to give the 3.5 mn pensioners quarterly increases instead of half yearly rises -- the 1st increase will give pensioners an extra $5 a fortnight for singles and $8 for couples. There is also a new grandparenting allowance of $20 a wk for each child in their care. "They're the unsung heroes in our society, there's no doubt about that," he said. * 'Ready to lead' He also highlights his commitment to serve as PM for the long-term. "AUS needs a PM fully committed to the long haul," Mr Latham said. "We've got a great public plan for the future, John Howard's got a private plan for retirement. I'm ready to lead, he's ready to leave." Mr Latham says his goal is simple. "To give AUS a govt as good as the Aussie people themselves," he said. "To bring new drive and ideas to the leadership of the nation." The Labor leader was introduced by his wife, Janine Lacy. "What you see is what you get," she said. "He's a man of strong beliefs and passion in life, he's a straight talker who isn't afraid to stand up for what he believes in." The ALP faithful hope today's launch will springboard Mr Latham into the final 10 days of the campaign. Primate disavows stance on Labor's schools policy Catholic and Anglican archbishops have criticised Labor policy. Perth. The Primate of the Anglican Church in AUS, Dr Peter Carnely, has distanced himself from what he describes as personal criticism of fed Labor's education policy by Anglican and Catholic archbishops. 4 archbishops from SYD and MEL, including Anglican Archbishop of SYD, Peter Jensen and SYD's Catholic Archbishop, George Pell released a joint statement saying Labor's plan to redirect funds from 67 wealthy private schools to more needy Catholic and independent schools is regrettable and divisive. In Perth, Dr Carnely says the statement reflects only personal views. "Well, I think the only nat'l position we can articulate at the moment is that those positions are in fact personal positions and they are not a nat'l position," he said. The archbishops' rep Brother Kelvin Canavan said yesterday that they are concerned the shift in funding could drive a wedge between Catholic and Anglican schools. The Prime Min has seized on the criticism of Labor's schools policy. John Howard has told Adel Radio 5DN he agrees with the MEL and SYD archbishops. "But they are right, the Labor Party schools policy is divisive," he said. "What the Labor Party policy has done is re-awaken divisions most Aussie's thought they had put behind themselves perhaps a generation ago." Labor's education rep Jenny Macklin rejects the criticism and insists Labor has had considerable support from the Nat'l Catholic Education Commission and from state Catholic education directors. She says Labor's policy returns most schools to the same level of funding they received in 2001, which she says has been welcomed by a number of state Catholic education directors. "Labor is going to fund all schools according to their needs." she said. "We've set a nat'l school resource standard, and we want to lift all of those schools, whether they're Catholic schools, Anglican schools, Jewish schools, we want to lift all of those schools up to the nat'l standard. "There's just no justification for continuing the Howard Govt's unfair school funding policy," she said. She says while the church leaders in SYD and MEL are entitled to their view the people who are running Catholic education have welcomed Labor's approach. "John Howard has given massive funding increases to some of the wealthiest schools in AUS and that just doesn't fit with Labor's view which is that schools funding should be based on need. "What Labor wants to do is continue the same level of funding overall to non-govt schools but redistribute money to the most needy non-govt schools whether they're Catholic, Anglican or any other faith, we want to make sure that those schools that have the highest needs are the ones that get the funding increases." Uncle Sam sticker adds to Molloy woes Brisbane. The Fed Govt has found another reason to attack a Qld Labor election candidate. Ivan Molloy is standing in the Sunshine Coast seat of Fairfax. A sticker on the vehicle towing his campaign caravan shows the United States symbol "Uncle Sam" with the words "Join the Army, travel to exotic distant lands, meet exciting and unusual people.. and kill them". Local fed Liberal MP Peter Slipper says it is an inappropriate statement against the US. "This is just a bizarre situation that's a bizarre sticker to be on Dr Molloy's car," he said. "The fact that Dr Molloy is not adequately distancing himself from his prior statements to outrageous comments made by both Kate Molloy and her husband with respect to terror and the Liberal Party. "Is the ALP serious about the war on terror and if the ALP leaves Dr Molloy as a candidate for Fairfax then I think Mr Latham brings his own credentials into very grave doubt." A newspaper yesterday published a photograph of Dr Molloy holding a gun with what were claimed to be Philippine separatists. Dr Molloy says the people in the picture were not extremists but govt troops. Family First gives preferences to Trish Worth Adelaide. The church-based [Assemblies of God] Family First Party has further boosted the re-election chances of the Howard Govt by confirming that South AUS's most marginal MP, Trish Worth, will now be part of the preference deal with the Liberals. Liberal Trish Worth has been critical of the gay marriage ban and supportive of stem cell research, issues crucial to Family First. Family First's Fed Secretary Matt Burnet says Ms Worth is the best candidate in Adel, but he will not say if she has signed an agreement, which the party is demanding of some Liberals. "We feel just to maintain the integrity of those candidates, we feel it would be best if we didn't disclose that," he said. Ms Worth says she has not been asked to make any commitments and she will not be signing anything. This comes as the Family First Party denies reports that it is spending $1 mn on its 1st nat'l election campaign. The party's fed secretary, Matt Burnet, says the mn dollar figure is a fund raising goal which Family First is yet to reach. "Well, I can clarify that the mn dollars does remain in fact a target and that at this point in time we have not received that amount and we are still working towards that target," he said. Queanbeyan blast victim undergoes surgery QB. The 24-yo man severely burnt in yesterday's explosion at Queanbeyan is now in a critical but stable condition in SYD's Royal North Shore Hospital. Allan Degraf received burns to 75 per cent of his body when an apartment block in Donald road exploded after a gas leak. He received emergency surgery last night and is now being treated in the hospital's intensive care unit. Hurricanes cause record insurance claims Miami (AP). Insurance claims arising from the 4 hurricanes that hit Florida may lead to America's costliest hurricane season on record, officials say. More than one in every 5 Florida homes has been damaged. The number of insurance claims this season is expected to hit 2 mn, far surpassing the 700,000 claims filed after Hurricane Andrew 12 ya. Insured damage is approaching the $US22 bn [$A30.67 bn] record, in today's dollars, set in 1992 by Andrew and Hurricane Iniki in Hawaii for the most expensive US hurricane season on record, according to the Insurance Info Institute, and Standard & Poor's Ratings Services. All of these developments raised the spectre of higher rates. Bob Hartwig, chief economist for the Insurance Info Institute, estimates the 4 storms cost $US21.7 bn. Standard & Poor's credit analyst Thomas Upton put the loss "in the low $US20 bn." Those estimates beat the $20 bn inflation-adjusted toll from Andrew, the world's costliest natural disaster at the time at $15.5 bn in 1992. Assessments of Jeanne's damage to the state are still under way. "There's going to be pressure on rates in Florida," Hartwig said. "The industry's resources need to be bolstered." Not so quick, said Tom Gallagher, the state's top insurance regulator, who served as Florida's insurance commissioner during Andrew and now is the state's chief financial officer. "Storms themselves are not justification for rate increases," he said. "Rates gone up just for rates' sake because of storms? That is not going to happen." The damage figures don't include losses covered by the fed flood insurance program, and Gallagher expects Jeanne's flood losses to be sizeable. Hartwig suspects flood losses from the 4 storms will cost several bn dollars. Some consumers are confused and frustrated with the insurance process so far. Some people with claims from Frances had not seen an adjuster before Jeanne compounded their losses. Adjusters will also have to make the call between flood and wind damage, which are covered by different policies. Tropical storm batters S Japan Tokyo (AP). A powerful tropical storm has soaked S Japan, disrupting train and air services and knocking out power to homes. It prompted authorities to warn of heavy rain, high waves and strong gusts. The storm, which had been downgraded from typhoon status, had sustained winds of up to 108 kph when it struck Kyushu, the southernmost main island, the Meteorological Agency said. The agency said it expected as much as 300 mm of rain. Public broadcaster NHK said more than 110 flights had been cancelled and train and ferry services around the S islands had been suspended. Authorities said about 1,000 homes were without power across Kyushu. About 1,000 homes had been evacuated in Kagoshima, Kumamoto, Miyazaki, Oita, Saga and Fukuoka prefectures, officials said. On Sun, the storm -- a typhoon dubbed Meari, meaning "echo" in Korean -- swept past Okinawa, about 1,600 km SW of Tokyo, where an 88-yo man died after being blown over by strong winds. A 73-yo man also broke his elbow and a 64-yo woman's leg was broken when she was knocked over by gusts, according to Okinawa prefectural [state] police. Japan has been buffeted by a record 7 typhoons this y, exceeding the past record of 6 in 1990. Earlier this m, Typhoon Songda killed at least 32 people and injured more than 900 as it travelled along Japan's W coast. Scientists use skin and dung to track ivory poachers Seattle (Reuters). Using elephant dung and skin samples, researchers said they were able to make a map of elephant DNA that could help track down ivory poachers. They are already using their new method to track smuggled ivory seized in Singapore in 2002, the researchers, in the US and Tanzania, said. "We are able to monitor where the ivory is coming from," said Samuel Wasser of the University of Washington in Seattle, who led the study. "With that, coupled with monitoring the movement of ivory through ivory markets, we will be able to tell where poaching is most heavily concentrated and improve law enforcement." Writing in this week's issue of the Proceedings of the Nat'l Academy of Sciences, Mr Wasser and colleagues said the key was the ability to sample elephant scat. "We used a combination of faeces and tissue to create the map. "But the most important breakthrough is the ability to get it (DNA) from faeces because we can sample many countries very quickly now," Mr Wasser said in a telephone interview. For instance, the Singapore seizure was tracked to Zambia, and the team hopes to pinpoint precisely where in Zambia the elephants were poached. "Because we can get DNA from faeces, the Zambian Govt stepped forward and were able to sample the whole country in 3 wk," Mr Wasser said. The African elephant population was more than halved by poachers between 1979 and 1987, from 1.3 mn to 600,000 animals. The Convention on Internat'l Trade in Endangered Species or CITES banned the ivory trade in 1989. Mr Wasser said poaching may have stepped up. Save the Elephants, an internat'l charity, said 50 tons of ivory destined for China were seized between 1998 and 2002. The 2002 Singapore seizure yielded 6.5 metric tons of ivory, including 532 whole tusks, many more than 2 metres long, and 41,000 small carved ivory cylinders worth an estimated $US6 mn. "By being able to monitor how the distribution of ivory comes through markets ... we can actually see the consequences of trade decisions for 1st time ever," Mr Wasser said. "We also can use this to monitor the main stockpiles that are being held. "Burundi has 80 tons (of ivory) and a lot of people think it is not the same 80 tons -- that ivory is being sold and the stockpiles being replenished." Mr Wasser and colleagues extracted and analysed DNA from elephant droppings and skin samples collected from 16 African countries. They used a new statistical method to make a "map" of elephant genetic variation, so that a new sample taken from a piece of ivory can quickly be traced to its origin. This is especially important as forests are opened for logging and the forest elephants, a subspecies separate from savanna elephants, fall prey to poachers for the 1st time, Mr Wasser said. "My colleagues working in the forests are saying, 'There are no elephants left here'," he said. {{ 1.30 am As oil exceeds $US50/bbl for the first time, Saudi Arabia has announced it will incr pumping. Oil reps say the kingdom will increase prod'n from 9.5 to 11 mn bpd. Analysts say Hurricane Ivan has cut US oil prod'n by 11 mn bpd. World demand is at 82 mn bpd. Brighton. PM Blair says he could apologise for giving out wrong WMD info before GWII, but he is not apologise for removing the Iraqi dictator. He says the world is a better place with Saddam in prison. Mr Blair's speech was twice interrupted by demonstrators. On the day 2 more Brit soldiers were killed in Iraq, Mr Blair sympathised with the families. Outside, 100s of pro-hunt demonstrators rallied in the streets. Some others, inside, were bundled out of the Labour conf when they heckled Mr Blair. Dead animals, incl a dead horse, were duped in Brighton streets by pro-hunt protesters. Blair said he was all about doing what you think is right and sticking to it. [AKA refusing to listen to anyone else]. Israeli restrictions are affected UNWAR's ability to give out aid in the occupied territories, says the UN. Aid workers are required to cross the border on foot, a move prohibited under current UN security rules. Argentina. A teen has shut and killed 4 students. 6 were wounded. The shooting happened 1000 km S of BA. The 15 yo reportedly began to shoot in his classroom with a 9 mm pistol. He is said to have been quiet boy who didn't mix well with others. He had no history of violent behaviour. The WHO is looking into the first possible h-to-h bird flu case in Thailand. 1.45 am An unconfirmed report on Al-Jazeera says 2 Italian aid workers in Iraq have been freed. There are no other details at present. 2 am DW radio. Al-Jazeera says 2 aid workers snatched 2 wks ago have been handed over to Italian officials in Baghdad. 3 telecom workers have also been freed, says the TV. A producer for CNN snatched in Gaza has also been released. He was turned into Pal police by his kidnappers 24 hrs after he was snatched in C Gaza City. Germany is to provide 30 combat vehicles to Iraq. The special vehicles are designed to detect nuclear or bio-chem threats. But questions being asked. Under German law, nat'l companies are not allowed to provided arms or weapons to areas considered to be in conflict. In past this has sometimes been done behind the name of other countries, or simply done if the money was right. According to the UN, 5,000 residents have fled villages in Darfur as militia attacks continue. At least 5 villages have been attacked over the last few days, according to local church groups. A German aid group says militias are using automatic weapons made in Iraq, under license from a German maker. Militias in S Nigeria have threatened to capture the oil wealth from the govt. They say they will declare open war from Oct 1. Shell is advising its workers to leave the country. Unions have also threatened a nat'l strike over a govt decision to hike fuel prices. In Kathmandu, Maoist rebels are reportedly loosing their latest tussle with the govt. 9 militants have been shot dead by police in clashes today. A bomb blast on the outskirts of the capital shattered windows and damaged a bank. A man had reportedly taken an abandoned bag, and thrown it into a nearby street, where it exploded. Locals say many businesses are not observing a call by Maoists to close down. The govt says the series of attacks was meant to scare residents into obeying a general strike. But even more traffic has been seen than during past shut-downs. Maoists are losing momentum for their Communist Republic. Govt soldiers are patrolling streets and standing guard at govt buildings. The fighting has claimed 10,000 lives since 1996. 9 am A 2nd Olympic airliner has been targeted by a bomb threat. The aircraft landed under strict security after it was diverted from NY following a bomb threat was phoned to an Athens newspaper. 2 Italian aid workers have been welcomed home by Silvio Berlusconi after they were released by Iraqi kidnappers o'night. The "2 Simones" were welcomed at Rome airport after their 3 wks of captivity. It's still unclear who snatched the pair, or what their demands were, if any. Question marks also hang over why the pair were released. Berlusconi has denied any ransom was paid, and thanked aid agencies and go-betweens for their help in obtaining the release. "The Iconoclast" -- the local paper in Crawford, TX -- has come out against resident Pres Bush. The editorial has criticised Bush's Iraq policy and record deficits. Meanwhile, 2 new opinion polls put Mr Bush from 5 to 8 pts ahead of his Dem rival. Observers say Kerry is known as a "strong closer", but with 5 wks to go and a median 5 pts behind Mr Bush, the senator has few remaining opportunities to connect with American voters. Polls show many Americans still don't know what Kerry stands for, and prefer the strong if wrong-headed leadership of Mr Bush. 4 of Australia's most snr churchmen have criticised Labor's school funding policy as "divisive". However the state and nat'l Catholic education commissions have supported the policy, saying money must be directed to where it's most needed and criticising the statement from the Anglican and Catholic archbishops of SYD and MEL as "unbalanced". The Anglican School Network say the statement was a personal view and not the considered opinion of the churches. 10 am SYD Lord Mayor Clover Moore, Fed Greens leader Bob Brown and the Democrats leader Andrew Bartlett are among a group of 58 prominent people to sign a petition to end the live animal export trade. A recovery in Aussie exports is still failing to establish itself to the extent widely hoped for, despite the trade deficit falling below $2 bn. The Dow has closed up 85 pts despite oil prices building offshore. The Nasdaq added 10 pts. In AUS, the All Ords is up 18 pts higher to a new record after a feeding frenzy from the bell. BHP announced o'night it had signed a new iron ore contract with China. Oil is just below $US50/bbl after hitting $US50.47 o'night. Spot gold is at $US412.80/oz. The AUD is at 71.66 US c. 2 alleged Israeli spies have been released from prison in NZ after serving terms for belonging to a criminal organisation and attempting to fraudulently obtain NZ passports. The pair left Mt Eden prison in separate cars. [One was shown on TV wearing a ski mask]. They're expected to fly out of the country later today. Helen Clarke has refused to comment on the pair. 10.30 am Centre-bet says one punter has waged $200,000 on Mr Howard to win a 4th term. Police are remembering their fallen colleagues in marches around the country today. Around 250 police have died in the line of duty in the past 100 y. A 22 yo man remains in critical condition in CBR after an explosion in a QB block of flats yesterday. Australia has finished the Paralympics with 26 gold, 38 silver and 36 bronze medals. It was 5th on the list for golds, but 2nd on the total medals list -- behind China. The team was much smaller and younger than the one at the SYD games. Organisers are now calling for "adequate amount of money" and warn otherwise of a poorer showing in Beijing. Athletes will be given welcome home parade in SYD on Oct 13. The closing ceremony saw 1 min of silence for 7 children killed in a bus crash. There will be no trad'l closing ceremony. Women on Pitcairn island have spoken out about the tiny island's sex assault trials. 7 men are facing 55 [some reports say 96] charges of sex assault. The women say there has been under-aged sex, but no rape. One woman told reporters she'd been badgered to "make up" evidence because Brit officials could not make a case against the accused men. She had then refused further co-operation. 2 women have withdrawn their charges. It's taken 4 y to bring the cases to trial. A last minute appeal for an adjournment was lodged by the defence. It claims 1 of 3 judges is biased because he met with the Brit Min for Pitcairn just before he flew out to the trial. 5 elderly residents of a nursing home in the Hunter Valley have died from a mystery respiratory illness during the past wk. The deaths have triggered fears of a killer flu epidemic. Target in the US has announced it will ban bell-ringing Santa's outside its stores this Xmas. The announcement hasn't gone un-noticed by the Salvos. Last y Santas collected $US9 mn for the Salvos -- the 2nd-largest segment of its annual donations. An Iraqi newspaper says $1 mn was paid in ransom to free 2 Italian aid workers. Meanwhile, it's been a flurry of releases -- 9 in all. There are also reports 2 French hostages could soon be freed. But there is no word on Brit Ken Bigley. Midday. In 30 mins time Mark Latham is to launch Labor's election campaign in Bris. Observers expect announcements on education and health, but not the same level of spending proposed by the Coal'n govt. Elsewhere, PM Howard has denied claims a Howard govt plans to cut pensions for unemployed and disabled Aussies. The Aussie trade deficit remains high. The latest figures show a $1.9 bn deficit. That's down $734 mn on Jul. Exports were steady, despite falling rural output. Imports were down 5%. Oil prices are still high even after the Saudi prod'n increase announcement. Saudi oil officials said their comfort zone was $22 to $28/bbl. There have been persistent worries about the state of US refining indy. It's seen years of neglect. US crude stocks are also well down ahead of winter. Big investors are moving into bonds on fears the US economy will stall. The demand for bonds has put downward pressure on fixed rate loans in AUS. Observers say there's effectively no change at James Hardie. The CEO will still remain in charge of business. The NSW Special Commission found he had breached his duties under company laws, and mislead investors and the Commission over the level of funding for future asbestos claims. The All Ords is up 17 pts at 3,655. It's headed into new record territory with miners leading the way on the back of higher base metals. Demand for Al is expected to grow. AUS has sold 600,000 t this y. Higher oil has led some producers higher, but others are lower. Computershare is up 5%. In London, the FTSE added 26 pts, ignoring oil fears. In Japan, the Nikkei is presently up 11 pts. The Hang Seng is down 71 after closing down 1/2% yesterday. The AUD is at 71.72 US c. The greenback is generally lower. Gold is up $2.10 at $US412.69/oz. Oil has added .26 to $US49.90/bbl. Starbucks has signed an agreement in Mexico to give growers a better price. The deal also help guarantee future supplies. A rep for the company said Starbucks would be paying the highest price of any buyer in the world. Fair Trade campaigners remain skeptical growers will get the money. 5 pm The All Ords has closed up 30 pts. BHP Billiton was up .6%. Telstra was down. There were new record oil prices. The Nikkei lost 29 pts -- making it 9 days losses in a row. The AUD is at 71.68. A rally stalled when exports failed to get off the ground. 6.30 pm The ALP has officially launched its campaign with an appeal to elderly voters. Mr Latham has offered free hospital care for any Aussie 75 y and older. The policy will guarantee private hospital care with the Commonwealth footing the bill. Mr Howard says the policy speech lacked any plan to manage the economy and keep interest rates low. Mr Latham says the ALP is the only party making Budget savings during the campaign, which will keep int rates low. The ALP leader announced 3 policies. The smallest -- a grand-parenting allowance. A Labour govt would also index pension 4 times a y, instead of twice. The biggest commitment came with Medicare Gold -- at $2.9 bn. Mr Latham says the idea will reduce private health costs for the young, too -- because the elderly will no longer need to belong to health funds. Older members account for about 5% of the numbers, but 25% of the outlay. The election now enters its final 10 days. Health funds have called the ALP idea a "visionary policy". The AMA also has welcomed the plan -- cautiously -- saying it has "many pluses". Mr Howard was in Adel today. He briskly dismissed claims the Coal'n has a secret plan to cut pensions to pay for its expensive election promises. He warned elderly Aussies not to trust Labor with health insurance. They will cut or otherwise get rid of the tax rebates, the PM warned. There's been friction within the churches over a decision by Archbishops from MEL and SYD to comment on the ALP education policy. The Anglican Primate in Perth says the views of the snr churchmen aren't necessarily shared by other Anglican officials. The Bris RC Archbishop has called on the churches to take an even and fair policy. Ever ready for a good wedging, the PM says the ALP "money where it's most needed" policy has opened divisions that Aussies thought they put behind them ys ago. The Italian govt is now refusing to say whether a ransom was paid for the 2 aid workers freed in Iraq. Earlier, PM Berlusconi appeared to deny Iraqi reports $1 mn had been paid to the kidnappers. The "2 Semonas" say they were treated well. The death toll in Haiti has reached 2,500 from Hurricane Jean. But the toll could rise by 100s more if a report is right. An official says 700 deaths in Gonaives were mistakenly left out of the toll. Charges have been laid against Energy Resources AUS over pollution at the Ranger uranium mine. Uranium had polluted water supplies at the mine. 28 workers fell ill after drinking from the mine's water supply. The case will be heard at a Darwin magistrate's court under the Mining Management Act. 9.30 pm Ken Bigley's brother has told a Brit TV stn Iraqi kidnappers have posted an internet message they may be prepared to free the Brit hostage. 10.30 pm Annual growth in the UK has been revised down. Economists believe the economy may have peaked. }} ---------------------------------------- Thu, 30 Sep 2004. Oil prices threaten global recovery Washington (AAP). The recent jump in world oil prices has cast a cloud over the global economic recovery, the IMF says. The Washington-based watchdog said world growth was expected to be the strongest in nearly 30 years in 2004 after a good start to the year, but the risks for the future were now tilted to the downside. In its twice-yearly economic scorecard, the IMF upgraded its forecasts for global growth in 2004 to 5.0% -- from 4.6% forecast in Apr -- and said it would be the strongest growth since the late 1970s. However, a slowing in momentum in major economies as well as the spike in oil prices meant the forecast for growth next y was trimmed back to 4.3%, from 4.4%. "Growth momentum has slowed from the 2nd quarter of 2004, notably in the US, Japan and China, while oil prices have risen sharply," the IMF said. "Looking forward, the global expansion -- while still solid -- will therefore likely be somewhat weaker than earlier expected. "The balance of risks has shifted to the downside with further oil price volatility a particular concern." Crude oil jumped to a new record high of $US50.47/bbl overnight, and is about 75% higher than the same time last y, meaning higher petrol prices at the bowser and higher costs for businesses. The IMF said the higher prices had helped put the brakes on the recovery and would continue to do so for several more quarters, although consumer confidence was holding up well. It said threats of terrorist attacks in oil-producing countries and record low spare capacity meant prices would probably stay volatile, and average US$8/bbl higher in 2005 than in 2003. The IMF repeated warnings about the impact of a possible housing market cooldown in AUS, and said higher interest rates could be necessary given the generally good outlook. The IMF lifted its forecast for Aussie growth in 2004 to 3.6%, from 3.5% in Apr, but growth next y was expected to be lower at 3.4%. It also upgraded its inflation forecast to 2.8 per cent this y, at the top end of the Reserve Bank's target band, from 2.6% but left the forecast for 2005 unchanged at 2.5%. "Growth is expected to remain robust in 2004, underpinned by strong exports and commodity prices and buoyant domestic demand," the IMF said on AUS and NZ. "While core inflation appears subdued ... further interest rate rises are likely to be necessary, especially in NZ, given favourable near-term growth prospects, low unemployment rates and high rates of capacity utilisation." IMF warns of rate hikes as growth soars Economic growth is at a 30-y high. Washington (AFP). The world economy, powered in part by China, is set to grow this y at its most brisk pace in almost 3 decades, 5%, before losing steam in 2005 in the face of higher oil prices the IMF said. In its latest World Economic Outlook report the IMF also warned that global imbalances, notably gaping deficits in the US, still pose a key risk and said controlling resurgent inflation was the main short-term challenge for US and other industrial country policymakers. "After falling to unusually low levels in mid-2003, inflation across the world has turned up, with earlier concerns about deflation replaced by fears that inflation is making a comeback," the IMF said. As a result, according to the Fund, "monetary policies will generally need to be tightened somewhat faster than earlier expected". It stressed that the risks of a pronounced pickup in inflation appeared "moderate". The report said that in advanced industrial economies consumer prices were set to increase 2.1% in 2004 and 2005 after a rise of 1.8% in 2003. The IMF said a key task for policymakers is to determine whether the recent uptick in inflation is an exception, reflecting rising commodity prices, or risks feeding through to wages and becoming more entrenched. It maintained that despite the vigour evident in the world economy this year, spare production capacity in most industrial countries remains significant and should serve as a buffer against excessive inflation. "Even so," the report said, "central banks will need to be vigilant to ensure that 2nd round effects of higher headline inflation are well contained". The surge in oil prices has already pared economic growth in much of the world and is likely to restrain activity in the coming ms, the report added. The IMF report was prepared in early Sep after crude oil futures had peaked at $US44.71/bbl. Since then, prices have topped $US50 and some analysts predict further rises. The IMF said each $US5 increase in crude oil could lop 0.3 pts from global economic growth. Oil prices ease on positive news from US, Nigeria NY (AFP). Oil prices closed lower in NY trading on Wed for the first time in 2 wk, down 39 US cents at $US49.51/bbl, as concerns about Nigerian crude output eased and US oil inventories rose. Easing supply concerns, new data showed US crude oil inventories posting a surprise increase, a wk after tumbling to their lowest levels since Feb. The US Dept of Energy said crude oil reserves rose 3.4 mn bbl in the wk to Sep 24 to 272.9 mn barrels, a week after a spectacular drop of 9.1 mn barrels due to Hurricane Ivan. Commerzbank analyst David Thomas said the data was "good news in terms of re-stocking ahead of the winter". Worries about Nigeria also eased as the head of the armed rebel movement began talks with govt officials in the capital Abuja, according to Info Min Chukwuemeka Chikelu. US crude reserves calm markets Traders welcomed the US oil reserve data. NY/Sydney. The price of crude oil has held below $US50/bbl overnight helping lift the mood again on Wall Street. Concerns are abating on oil markets after the earlier jitters caused by the threat of attacks on oil facilities in Nigeria. The head of the armed rebel movement has now started talks with govt officials in the capital Abuja. At the same time, weekly figures on US stocks of crude have indicated an encouraging increase. The Dept of Energy says reserves rose 3.4 mn barrels last week after the prev wk's big drop of 9.1 mn barrels because of the impact of Hurricane Ivan. West Texas crude is trading at around $US49.53/bbl. Investor sentiment has also been boosted by a stronger than expected reading on US economic growth. The Commerce Dept has revised up its preliminary estimate for the Jun quarter from 2.8 to 3.3%. On the New York Stock Exchange, the Dow Jones industrial average closed 59 points higher at 10,136. The hi-tech Nasdaq market has made solid gains. The Nasdaq composite index has added 24 points to 1,894, a 1.3% advance. The UK share market has also posted more gains. London's FT-100 index has ended the session 21 points ahead at 4,588. Yesterday the Aussie market rose strongly back into record territory. BHP Billiton was again the pace setter after this wk's $3 bn China deal on iron ore. The company's shares surged more than 4% in value to $14.50, with Rio Tinto and WMC Resources both up around 3%. QBE Insurance moved 2% higher after reassuring the market that its exposure to the 4 hurricanes in the US was within allowances. The All Ords jumped 29 points to 3,667. On foreign exchange markets the Aussie dollar is a touch firmer. At 7.15 am it was being quoted at 71.71 US cents, which is one tenth of a cent above where it finished the local trading session yesterday. On the cross rates it is at 0.5812 Euros, 79.47 yen, 39.84 pence and against the NZ dollar it is at 1.069. The gold price is at $US413.05/oz. James Hardie trust 'to sue company' Sydney (AAP). The trust James Hardie Industries set up for asbestos disease victims plans to sue the company under US anti-racketeering laws enacted to fight the mafia, it was reported. The Australian newspaper described the laws as a legal "neutron bomb" that could triple damages payouts. The move follows the release last wk of a report which found the company knowingly underfunded the trust, the Medical Research and Compensation Foundation, by up to $2 bn. The trust has contacted US lawyers to develop a case alleging that Hardie engaged in a pattern of fraudulent behaviour to deny compensation to future sufferers of its asbestos products. Lawyer Nancy Milne told the paper the suit could be filed under the US Racketeer Influenced and Corrupt Organisation Act, passed by the US Congress in 1970 to destroy the mafia. Prosecutors have successfully used it against organised crime figures, including Gambino family don John Gotti. In recent y the so-called RICO act has been taken up by plaintiff lawyers, as it provides for a trebling of damages if a civil damages suit is won and racketeering proved. Hardie derives about 75% of its revenue from the US and is subject to US law because it is listed on the NYSE. UN urges quick start for Darfur monitoring force The UN says a monitoring force needs to be sent to Darfur as soon as possible. UN (Reuters). The UN special envoy to Sudan has urged African states to speed up moves to send a large force to Darfur and called on the W to back their efforts with generous logistical support. Jan Pronk said he feared that a monitoring force to be sent by the African Union (AU) in the W Sudanese region where fighting has killed up to 50,000 people and forced 1.5 mn more to flee, might arrive too late and with too few resources. "That has to be changed into a quick process, broader mandate and bigger force," Mr Pronk told reporters after talks in Brussels with European Union foreign policy chief Javier Solana. "My request is, please understand we need a big force," he said, calling for a start to operations in Oct if possible. The United Nations has described the situation in Darfur as the world's worst humanitarian crisis. The AU is mandated by the UN Sec Council to send a force and is due to decide early next m if it can gather the necessary 3,000-5,000 troops. Mr Pronk, who will present the Sec Council with an update on the Darfur crisis for discussion next wk, said the EU and NATO could help by providing much needed support to the force. "The Africans are able to do the job," he said. "What we need is planes, fuel, cars, all types of logistical support that is available in Europe and NATO." NATO has sent a delegation to the United Nations to see what contribution it could make in the event of an AU deployment. In addition to logistical support, the EU has said it could provide a small police force if compatible with the AU's mandate. The UN Security Council adopted this m a resolution threatening Sudan with oil sanctions if it did not stop atrocities in the Darfur region where Arab militias are terrorising African villagers. Rebels began an uprising in Darfur in Feb 2003 after y of skirmishes between mainly African farmers and Arab nomads over land and water. The govt admits arming some militias to fight the rebels, but denies any links to the Janjaweed Arab militias. Allies 'planned' Iraq war despite denials London (AFP). The US, AUS and Brit started to plan the invasion of Iraq m before the conflict, according to a report Wed quoting a leaked Pentagon document. Senior Brit and US cmdrs met at a war-planning session in Jun 2002 and orders to prepare actual military operations were given on Oct 7, 2002, more than a m before a UN resolution giving a final warning to Iraqi leader Saddam Hussein, the London Evening Standard reported. Full battle plans were issued on Oct 31, 2002, 8 days before UN Resolution 1441 called for the resumption of arms inspections in Iraq and warned Saddam of "serious consequences" if he were still seeking WMD, the paper said. The document quoted in the report is a Pentagon chronology used by US Secretary of Defense Donald Rumsfeld in an Aug 2003 presentation on the "strategic lessons learned from Operation Iraqi Freedom". The chronology lists a "UK and AUS planning conference" on Jun 28, 2002. 3 wk later, on Jul 16, the PM Tony Blair rejected the notion that Brit was gearing up for an invasion. When asked by a lawmaker whether Brit was "preparing for possible military action in Iraq", Mr Blair responded, according to the paper: "No, there are no decisions which have been taken about military action". The newspaper report was written by defense and security journalist Andrew Gilligan, the former BBC radio reporter whose claim that Mr Blair had "sexed up" his pre-war dossier with a claim about Iraqi weapons capability led to his ouster and a showdown between the Brit Govt and public broadcaster. Brit's defense ministry refused to confirm or deny the report, Mr Gilligan wrote. "The latest disclosures sit uneasily with Mr Blair's denials that the Govt was following a course toward war," he said. Mr Rumsfeld's document, the article charges, "frequently contradicts" public statements by officials in Brit in the run-up to the war. Mr Blair has been dogged by persistent doubts over the war, and Tue admitted that his decision to join the US-led invasion had made the public lose trust in the Govt. He also told the annual conference of his ruling Labour Party that the claim that Saddam possessed stockpiles of banned weapons had "turned out to be wrong". According to the Evening Standard article, a Brit defense official was quoted in Jul 2002 -- 2 wk after Brit's 1st war-planning huddle with the United States -- as saying: "We don't have current plans for an invasion or attack on Iraq in any form". Even after Washington began actively preparing its offensive in Aug 2002, Brit Home Secretary David Blunkett derided war talk as "hype", Mr Gilligan wrote. Mr Gilligan's controversial report for the BBC back in May 2003 used a Govt weapons expert, David Kelly, as a confidential source who was later outed in public. Mr Kelly committed suicide in Jul of that year, triggering a major public inquiry into the causes of his death. Its conclusions, written by judge Brian Hutton, absolved Mr Blair of wrongdoing but made a scathing attack on the BBC, which in turn led to the resignations of Mr Gilligan as well as the BBC's chief executive Greg Dyke and chairman Gavyn Davies. AUS in early war planning: UK London (AFP). Brit has confirmed AUS was invited to take part in planning for war shortly after Brit and US military officials started preparations 9 m before Iraq was invaded. A report in London newspaper the Evening Standard claimed, according to a leaked Pentagon document, senior Brit and US cmdrs met at a "UK and AUS planning conference" in Jun 2002 in Florida. Brit's Ministry of Defence could not confirm whether AUS was involved in those talks, but said it was no secret the US and Brit began initial plans in the N summer of 2002. "It's no secret contingency discussions were taking place," a ministry rep said. "The limited discussions that took place in summer 2002 were between Brit and US military personnel on contingency planning for possible military attack. "As for Aussie involvement, we have no info on that." But the rep confirmed AUS was included in planning in Jun or Jul, 2002, a fact which was already on the public record. Iraq was invaded on Mar 19, 2003. "The decision was taken at around that time to bring AUS into the planning discussions as well," the rep said. AUS was mentioned in a House of Commons Defence Select Committee Report published in Mar this y as being involved in early planning. "The UK Nat'l Contingent Cmdr, Air Marshal Brian Burridge, told us that the planning began in Jun or Jul 2002, when the Brit were invited to participate by the US, in advance of other nations such as AUS and Canada," the report said. The report also quoted Lt Gen John Reith, the Chief of Joint Operations, saying: "Clearly, there was a decision, I think in Jun of last y [2002], by the Americans to bring the UK and AUS in on their planning cycle". The document used by the Evening Standard is a Pentagon chronology used by US Secretary of Defence Donald Rumsfeld in an Aug 2003 presentation on the "strategic lessons learned from Operation Iraqi Freedom". The chronology lists a "UK and AUS planning conference" on Jun 28, 2002, at US Central Command [Centcom] HQ in Tampa, Florida. The report highlights Brit PM Tony Blair's denial on Jul 16 that Brit was preparing for an invasion. Blair looks to poll after Iraq apology Brighton (Reuters). Iraq will not be the decisive factor for Britons in the next election, Tony Blair has said, as the Labour Party digested a conditional apology from the PM over the war. Labour's leadership tried to shift the focus from Iraq to domestic policy on the penultimate day of its annual conference but the fate of Brit hostage Kenneth Bigley, being held in Iraq, rose to the fore again with the release of a new video. Bigley, a 62-yo engineer, appealed on camera to Blair to save his life. He appeared caged and in chains. The appeal was the latest reminder that Blair's future remains inextricably bound to events in Iraq, where 2 more Brit soldiers died on Tue. Blair, asked earlier on Wed whether Iraq could cost him a third term in power, said: "I believe actually, when you come to an election, people will vote on other issues. "They will vote on strength of the economy, record numbers of jobs, huge investment going into health and education," he told GMTV TV. These are the policies Blair hopes will see off his Conservative Party opponents at an election expected in May and ministers showcased plans on crime and health on Wed. Labour faces a local electoral test on Thu when voters in the NE town of Hartlepool choose a new member of parliament following the departure of Blair ally Peter Mandelson to an EU commissioner job in Brussels. Iraq has ravaged Blair's public trust ratings and split Labour. Polls show the party is on track to win re-election but its huge parliamentary majority could be slashed. * ANOTHER UNITY PLEA Irish rock star Bono also urged conference on Wed to put divisions aside and unite -- around fighting poverty. "I know many people, and I include myself, were very unhappy about the war in Iraq. Still are. But ending extreme poverty, disease and despair -- this is one thing everybody can agree on," said U2's frontman, wearing dark glasses. Debt relief, aid and fairer trade are key themes for grassroots Labour voters, many of whom were angered by the war. In a bid to heal divisions, Blair offered a partial apology to his party on Tue. He admitted intel on Iraq's banned weapons that he used to justify war had been wrong. But he refused to say sorry for toppling Saddam Hussein, leaving some Labour members won over, others not. Several hundred anti-war campaigners staged a protest outside conference on Wed. One protester walked on stilts wearing a Blair mask and a T-shirt saying "Bliar." Blair was also reminded of voter unrest over domestic issues when a group of protesters stripped virtually naked on the beach in this southern resort town to protest the loss of their pensions and urge action on a looming pensions crisis. Iraq will dog Blair again on Thu when conference debates and possibly votes on a motion relating to the war. Blair continued to defend the action he took. "The time to trust the politician most is actually when they're courting popularity least," Blair told BBC radio. "Because then they're doing something that, whatever the political price they're going to pay for it, they actually believe in." Blair admitted the word "sorry" was in an earlier draft of his keynote speech but only in reference to Iraq dividing nat'l opinion, not the war itself. The key word was removed at the last minute. US friendly fire report 'insidious cover-up' Boston (AFP). The Pentagon has covered up major flaws in the US Army's Patriot missile system that prompted a battery to shoot down a Brit Tornado during the Iraq war last y, a top US scientist says. Theodore Postol, professor of science, technology and nat'l security policy at the Massachusetts Institute of Technology (MIT), says "every one" of the claims made by a Pentagon probe into the shoot down was false. Postol led an MIT research group to analyse the success of the Patriot systems in the 1st Gulf war. After that conflict, the US Army claimed the Patriots had intercepted 96% of the Scuds they had engaged. "The real intercept rate was almost certainly zero. Now we have discovered a similar but far more insidious cover-up following Operation Iraqi Freedom," says Professor Postol, in a commentary published in the next of New Scientist. The Royal Air Force (RAF) ground-attack Tornado, Yahoo 76, was shot down by a Patriot air and missile defence unit over Kuwait on Mar 22, 2003 as it descended with another Tornado along a pre-planned "safe" corridor towards its home base W of Kuwait city. Both airmen were killed. In its much-delayed investigation into the Tornado incident, the US Dept of Defence concluded the mistake was caused "in major part" by incorrect setting of the plane's Identification Friend or Foe (IFF) system. The IFF is an electronic system that tells defence crews and other aircraft that the plane is friendly, not hostile. The Pentagon also said the Patriot battery detected what appeared to be a hostile Iraq missile heading directly towards it. The "missile", though, turned out to be the Tornado. However, according to the report, the allied integrated defence system did not work correctly and failed to identify it. "We believe that every one of these claims is false," Professor Postol says. By sifting through the data in the appendix in the report, Professor Postol says he discovered that the "missile" signal received by the Patriot unit was a "ghost", an illusory signal that was probably generated by electronic inference from other Patriot units nearby. Far from the assertion that the "missile" was heading towards the unit, this false target was in fact heading towards a troop encampment 15 km to the north. Had it been heading towards the unit, the battery's weapons control computer would have classified it as a Category 1 Air Threat. Instead, it was tagged as Category 9, a threat level so low that the computer did not even mark it for engagement, says Professor Postol. Still, believing they were under attack, the Patriot crew fired an interceptor missile at the false target, which by this stage had "moved" in the area of the 2 Tornados. Lacking any other target, the missile's radar homed in on one of the planes and blew it up. In addition to the false signal problem, the Patriot battery did not have high-speed data links that would have enabled it to "talk" to the rest of the air defence system. "Unbelievably, the communications module needed for the data links had not been shipped with the rest of the equipment," says Postol. "This was a crucial error. Had the links been working, the Patriot battery would have known from other units that the target it was tracking was a ghost and that Yahoo 76 was friendly and flying down a safe approach corridor," he says. 11 days after the Tornado was shot down another Patriot crew fired at another false target, destroying a US Navy F-18, killing its pilot. The US Army has yet to release its report into this incident. Norwegian pilots land plane after axe attack Oslo (AFP). A passenger has used an axe to attack 2 pilots aboard a Norwegian passenger plane, but the craft was later able to land, police said. "The 2 pilots were able to land the plane after the attack. They were hospitalised and their life is not in danger," Bodoe police officer Margrete Torseter told AFP, adding that the attacker had been arrested. According to Norwegian public radio station NRK, 2 of the 7 passengers onboard the Kato Airline plane linking the N towns of Narvik and Bodoe were also injured in the attack. Police said they were not yet aware of how the man had managed to bring an axe on board the plane. Photos and fingerprints now needed for US visits Washington (AFP). Aussies, who are allowed to travel to the US without a visa, will from today have to give fingerprints and have a photo taken when they arrive at US airports and ports. Up to now citizens of 27 countries -- including 15 of the European Union countries, AUS, NZ and Japan -- were exempt from the security controls imposed on other visitors since the start of the year. About 13 mn people enter the US needing no visa, using just a passport. The new entry rules "add minimal time to the process -- an average of 15 seconds in most case," according to the US Dept of Homeland Security. Immigration agents will take digital imprints of both index fingers on an inkless scanner, and a digital photograph. The data will be checked with the passport info and cross-referenced against existing "no-fly" lists and crime databases. The biometric identifiers also protect the visitors, according to a Homeland Security statement, "by making it virtually impossible for anyone else to claim their identity should their biometrically-enhanced travel documents [such as a visa] be stolen or duplicated". The info will help authorities cross-check the visitors with a list of wanted criminals. US border controls tightened considerably after the Sep 11, 2001 attacks, when terrorists hijacked and crashed 4 passenger airplanes, killing nearly 3,000 people. Since the new US security measures were introduced in early Jan at 115 airports and 14 seaports "more than 8.5 mn foreign visitors have been processed without adversely impacting wait time," according to Homeland Security. Since the new measures have been in place authorities have discovered of more than 280 suspected criminals and people travelling with false documents, officials said. Starting Dec 31 the new measures will be extended to 50 US border crossings, and will be in place at all border crossings by the end of 2005. Iraq captors wanted $5 mn ransom, editor says Kuwait (Reuters). The Kuwaiti daily which predicted the release of 2 Italian hostages in Iraq said on Wed that the captors had originally demanded a $5 mn ransom but settled for $1 mn in the end. "A cleric mediated to get the amount of the ransom lowered," said Ali el-Roz, managing editor of leading daily al-Rai al-Aam. "When they asked for the $5 mn, the cleric who is mediating told the captors that they can't set conditions but rather that they have to accept conditions imposed on them." Roz also said in an interview that the clerics mediating for the Italians' release had strongly urged the captors against killing Italian charity workers Simona Pari and Simona Torretta. "One of the clerics drew up for the kidnappers this image of how negatively killing women would reflect on Arabs and Muslims," Roz told Reuters. He said he believed the captors belonged to a Jihadist movement set up shortly after the Apr 2003 fall of Baghdad in the US-led war which toppled Saddam Hussein. "It is a big faction which includes many members and is concentrated in the Sunni Triangle of Falluja, Baquba and Ramadi and in Baghdad," Roz said. The 2 Simonas, both aged 29, were snatched from their Baghdad office on Sep 7, and were not heard of until their release on Tue. Unlike other kidnappers, the group holding the women had not released any pictures or footage showing them. Italy's For Min Franco Frattini tried to quash talk about a ransom cash payment, saying Italy just capitalized on y of good deeds in the Arab world to secure their release. But most newspapers and a leading figure in the ruling coalition spoke openly of a ransom of $1 mn or more. The issue caused little controversy in Italy, which has a long history of paying money to home-grown kidnap gangs. Group holding Iraq hostages pays "tribute" to French stand on Iraq Dubai (AFP). The Islamic Army in Iraq, holding 2 French hostages, praised France's stand after it called for a US-proposed conference to address the issue of a US troop withdrawal, in a statement Wed on the Internet. "The Islamic Army in Iraq pays tribute to the French govt for its positive initiative towards the Iraqi people despite its deplorable history," said a statement posted on the group's website. "We hope this heralds a new era of comprehension of our causes and respect for our priciples," added the statement posted on the website (http://www.koolpages.com/992ali/index.htm). The statement, however, made no reference to hostages Georges Malbrunot and Christian Chesnot, held by the group since Aug 20. A French nat'l who claims he has secured a deal for the captives' release said Wed that he was waiting for US authorisation to extract the pair by air. "I have met the 2 hostages ... The release is a done deal, without any ambiguity. There have been no negotiations, and no compensation," Philippe Brett, who was in Iraq, told AFP by telephone. The French foreign ministry has so far denied any knowledge of an agreement to free the Frenchmen. France, which took the lead in opposing the US-led intervention in Iraq, said Mon that while it was not against the US proposal for an internat'l conference, any meeting should also discuss the withdrawal of US-led forces and include the armed opp'n. UK Iraq hostage renews appeal to Blair Dubai (Reuters). Brit hostage Kenneth Bigley has appeared in a video tape, pleading with Prime Min Tony Blair to meet the demands of his captors to release women prisoners in Iraq. Al Jazeera TV broadcast the tape, which showed Mr Bigley squatting down in an iron cage and dressed in an orange jumpsuit of the sort worn by Muslims detained at Guantanamo Bay. "Kenneth Bigley accused Tony Blair of lying and said Blair was not conducting any negotiations to free him," the Arab news network said. "He urged the PM to work to release Iraqi women prisoners to save his life. "Bigley said his captors did not wish to kill him." Mr Bigley, whose comments were not audible, was kidnapped in Baghdad nearly 2 wk ago. The video tape showed him with a metal chain wrapped around his neck and binding his hands and feet. He appeared haggard and distraught. A black banner bearing the name of his captors, the Tawhid and Jihad Group, was posted above the cage. The group, which is led by Al Qaeda ally Abu Musab al-Zarqawi, has already beheaded 2 American hostages who were seized along with the Brit engineer and said Mr Bigley would be next if its demands are not met. They have not set a deadline. Mr Bigley last appeared in a video tape on Sep 22 pleading with Blair to save his life. Blair ready to talk with hostage takers Ken Bigley appears in a new video released by his captors. London (Reuters). Brit PM Tony Blair said he was ready to open up contact with captors of a Brit hostage in Iraq, shown on video begging Mr Blair to save his life. Kenneth Bigley, 62, was shown on the tape chained and squatting in a cage, pleading to the PM for help while accusing him of lying over the hostage crisis. "They've made no attempt to have any contact with us at all. If they did make contact, it would be something we would immediately respond to," Mr Blair told reporters. "I don't think we can take any hope from anything until we know exactly what the intentions of these people are," he said. "They're not in contact with us, it's impossible for us to make contact with them." Italy rejoiced at the release of 2 women aid workers after paying a ransom and France was also gripped by a hostage drama when a freelance negotiator, disowned by Paris officials, said 2 French journalists held for 6 wk could be free in days. The French mediator said a condition for the journalists' release was for US forces to provide safe passage between the rebel towns of Fallujah and Ramadi, where Iraq's defence minister said US and Iraqi troops were about to launch offensives to re-establish their control. Kidnapping has flourished in the lawlessness that has engulfed parts of Iraq since the fall of Saddam Hussein but the US has said it will restore order in the next few m so that planned elections can go ahead in Jan. Al Jazeera TV broadcast the tape showing a haggard and distraught Mr Bigley dressed in an orange jumpsuit of the kind associated with Muslims held by US troops at Guantanamo Bay. "Tony Blair is a liar. He doesn't care about me. I'm just one person," Mr Bigley said in barely audible comments. The tape was aired a day after the 2 Italian women and 4 Egyptian engineers were freed. Mr Bigley's 2 American colleagues, seized with him from their house in Baghdad 2 wk ago, have already been beheaded on video by a group led by Jordanian Al Qaeda ally Abu Musab al-Zarqawi. Guerrillas in Iraq are holding 2 other W hostages, French journalists Christian Chesnot and Georges Malbrunot. Paris rejected the kidnappers' demands that France scrap a law banning girls from wearing the traditional Muslim headscarf in state schools. US artillery kills 3 in Iraq Baghdad (AP). US forces fired a howitzer, a rarely used heavy weapon in Baghdad, to kill at least 3 mortar crewmen who had unleashed a barrage against one of their camps in an eastern neighbourhood of the capital, a US soldier at the scene said. The 155-mm artillery piece fired a single round which struck a vehicle the insurgents had used as a platform for their mortar, said Sgt Maj Fernando Rodriguez. Following a trail of blood from the vehicle, soldiers found 3 bodies of the attackers and other body parts were strewn around the area. Rodriguez said it was believed that a total of 6 insurgents were killed. The US fire came after 21 mortar rounds landed in or around War Eagle, a base of the 1st Cavalry Division on the edge of Sadr City, a vast slum and insurgent stronghold which has seen daily clashes between US troops and rebels. No US or Iraqi civilian casualties were reported. The American soldier said the mortar was fired from a main road on the N side of Sadr City. A US warplane struck a rocket launcher mounted on the back of a vehicle in the slum, destroying the vehicle but igniting several secondary explosions, the US military said. "The vehicle was fired on and destroyed in an open area away from buildings and other people," said Captain Brian O'Malley of the Army's 1st Brigade Combat Team. Maithem Mahmoud of the al-Sadr General Hospital said one man was killed and a woman injured in the strike. Sadr City is a stronghold of radical Shi'ite Muslim cleric Moqtada al-Sadr, whose Al-Mahdi army also fought battle with US troops in the S city of Najaf last m. The fighting ended after a peace pact was brokered but the US command says al-Sadr's militia continues its hostilities in the Baghdad slum. Resistance to US in Iraq called widespread Iraq rebels atttack 2,300 times in a m Baghdad (IHT). Over the past m, more than 2,300 attacks have been directed against civilians and military targets in Iraq, in a pattern that sprawls over nearly every major population center outside the Kurdish north, according to comprehensive data compiled by a private security company with access to military intel reports and its own network of Iraqi informants. The sweeping geographical reach of the attacks, from Nineveh and Salahuddin provinces in the NW to Babylon and Diyala in the center and Basra in the south, suggest a more widespread resistance than the isolated pockets of insurgency described by Iraqi govt officials. The type of attacks ran the gamut: car bombs, time bombs, rocket-propelled grenades, hand grenades, small-arms fire, mortar attacks and land mines. "If you look at incident data and you put incident data on the map, it's not a few provinces, " said Adam Collins, a security expert and the chief intel official in Iraq for Special Operations Consulting -- Security Management Group Inc, which compiles and analyzes the data as a regular part of its operations in the country. The number of attacks has risen and fallen over the ms. Collins said the highest numbers were in Apr, when there was major fighting in Falluja, with attacks averaging 120 a day. In contrast, the average is now about 80 a day. But it is a measure of both the fog of war and the fact that different analysts can look at the same numbers and come to opposite conclusions, that others see a nation in which most people are perfectly safe and elections can be held with clear legitimacy. "I have every reason to believe that the Iraqi people are going to be able to hold elections," said Lt Col William Nichols of the air force, a rep for the US-led coalition forces here. Indeed, no raw compilation of statistics on numbers of attacks can measure what is perhaps the most important political equation facing PM Ayad Allawi and the US military: how much of Iraq is under the firm control of the interim govt. That will determine the likelihood -- and quality -- of elections in Jan. For example, the number of attacks is not an accurate measure of control in Falluja. Attacks have recently dropped there, but the town is controlled by insurgents and is a "no go" zone for the US military and Iraqi security forces. It is a place where elections could not be held without dramatic political or military intervention. The statistics show that there have been just under 1,000 attacks in Baghdad over the past m; in fact, a US military rep said this wk that since Apr, insurgents have fired nearly 3,000 mortar rounds alone in Baghdad. But those figures do not necessarily preclude having elections in the Iraqi capital. Pentagon officials and military officers like to point to a separate list of statistics to counter the tally of attacks, including the number of schools and of clinics opened. They cite statistics indicating a growing number of Iraqi security forces are trained and fully equipped, and they note that applicants continue to line up despite bombings at recruiting stations. But most of all, military officers argue that despite the rise in bloody attacks over the past 30 days, the insurgents have yet to win a single battle. "We have had zero tactical losses; we have lost no battles," said one snr US military officer. "The insurgency has had zero tactical victories. But that is not what this is about. "We are at a very critical time. The only way we can lose this battle is if the American people decide we don't want to fight anymore." US govt officials explain that optimistic assessments about Iraq from Pres George W Bush and Allawi can be interpreted as a declaration of a strategic goal: that, despite the attacks, elections will be held. The comments are meant as a balance to the insurgents' strategy of roadside bombings and mortar attacks and gruesome beheadings, all meant to declare to Iraq and the world that the country is in chaos, and that mayhem will prevent the country from ever reaching democratic elections. "The question is not whether there are attacks," said one Pentagon official. "Of course there are. But what are the proper measurements for progress?" US soldiers and 2 Iraqis were wounded in a car bombing in the N city of Mosul, security officials said Wed, Agence France-Presse reported. The car bomb exploded late Tue as a US convoy drove nr the University of Mosul, wounding 6 soldiers, said American the American military rep, Lt Col Paul Hastings. 2 Iraqi security guards were also wounded, said the university's security chief, Lt Col Zulfikar Omar Salah. Israelis, Palestinians killed in clashes Jerusalem (Reuters). Palestinian militants, eluding an army crackdown, killed 2 Israeli children in a rocket attack from Gaza and Israeli troops have killed 7 Palestinians in raids in the coastal strip and the W Bank. The renewed rocket fire, in spite of an Israeli incursion aimed at snuffing out such attacks, was a blow to Israel as it seeks to prevent militants portraying its planned pullout of settlers from Gaza next year as a victory. 2 makeshift Qassam rockets hit a residential block in the town of Sderot close to Israel's fenced border with Gaza, killing a girl aged 2 and a boy aged 4. 13 other residents were injured in the town that has borne the brunt of Qassam attacks, emergency services said. PM Ariel Sharon threatened that Israel "would respond with severity and use all measures to respond and stop the firing of Qassam," an aide said. A rocket killed 2 Israelis in the town 3 m ago, but 100s of missile volleys from the Gaza Strip have done more to spread terror than inflict casualties during the past 4 y of conflict. Earlier Israeli forces shot dead a Palestinian gunman as well as 2 youths aged 17 and 14 in a crowd of stone throwers. A 13-yo boy was killed in another incident in Gaza. In the W Bank, Israeli troops also killed 2 Palestinians militants in raids. Shortly after the Sderot attack, Israeli helicopters fired missiles at targets in Gaza's Jabalya refugee camp, a militant stronghold. One Palestinian was killed and at least 3 others wounded. * Spiralling violence Israeli security sources said the military would step up operations in northern Gaza following the latest rocket attack. "The army knows what to do and will deepen its efforts, more forces will have to be deployed," a snr source said. Violence has spiralled since Mr Sharon announced his plan to evacuate 8,000 Jewish settlers to "disengage" from conflict with the Palestinians. Rocket attacks have been seized on by right-wing opponents of Mr Sharon's plan, who say Israel can not afford to leave the Gaza Strip because it will only embolden militants. "We should stop the disengagement process and seize all positions opposite Sderot," said Ehud Yatom, an opponent of Mr Sharon's plan within his Likud party. Islamic groups like Hamas vow to keep fighting until Israelis had evacuated "all of Palestine". "We begin the 5th y of the Intifada (uprising) and we will keep firing rockets and mortars, we will continue our jihad until all of Palestine is returned," said Nizar Rayan, a Jabalya Hamas leader. Critics of the raids into Gaza say Israel risks getting sucked back into fighting just as it is preparing to withdraw. US Secretary of State Colin Powell said Palestinians should end their revolt as it was spreading "terrorism" and hindering creation of an independent Palestinian state. "It is time to end the uprising. We want a Palestinian state. The [US] Pres wants the establishment of a Palestinian state for the Palestinian people which exists side by side with Israel," Mr Powell told Arab satellite TV Al Jazeera. Aussie to fill snr PNG legal post Pt Moresby (ABC, Shane McLeod). Moves are under way to appoint an Aussie to one of Papua New Guinea's key legal posts. The job of Solicitor-General will be filled by AUS under a new $bn aid package, the Enhanced Co-operation Program. In the PNG legal system, the post of S-G holds significant power as the Govt's chief legal counsel. It has also been a position open to abuse, with solicitors-general able to authorise out-of-court legal settlements -- and that has led to $multi-mn payouts, sometimes under questionable circumstances. Under the new aid program, the position will be filled by AUS. Info sessions will be held in SYD, MEL and CBR next wk about the role. A newspaper advertisement says the post will be taken up by a senior lawyer with significant experience representing govt clients. Names revealed in Pitcairn Island sex abuse trials Wellington (ABC, Gillian Bradford). A special sitting of Pitcairn Island's court has lifted the order suppressing the names of the 7 accused facing sexual abuse charges. The island's mayor Steve Christian and his son Randy are among the accused. Also facing charges are Len brown, his son Dave, Jay Warren, Terry Young and Dennis Christian. There are only 47 permanent residents on Pitcairn, so nearly everybody is related to one of the accused. The men are facing charges including indecent assault, gross indecency and rape. Many of the alleged victims will give their evidence in NZ via a video link. The trials will start tomorrow. Sexual abuse trials underway on Pitcairn Pitcairn Is. Pitcairn Island's sex trials have started this morning with Mayor Steve Christian the 1st to face the court. The prosecution has told the court Mr Christian committed offences against 4 women between 1964 and 1975. All of the alleged victims will soon begin giving their evidence in Auckland via a video link. It is understood several of the other men are also facing charges that date back to the 1960s and 70s. To hear the cases against all 7 men on Pitcairn the 3 judges have decided to split the hearings between 2 courts. The trials are expected to run for at least 6 wk. Martha Stewart to serve sentence at 'Camp Cupcake' NY (Reters). Homemaking icon Martha Stewart will serve her 5 m jail sentence at a minimum security prison in W Virginia, for lying about a stock sale. The fed judge who sentenced Stewart had recommended she serve her jail term at either Danbury, Connecticut, or Coleman, Florida. The US Bureau of Prisons has instead decided that Stewart will serve the prison sentence at a minimum security facility in Alderson, West Virginia, known locally as "Camp Cupcake". "While I had hoped to be designated to a facility closer to my family and more accessible to my appellate attorneys, I am pleased that the Bureau of Prisons has designated me so quickly to FPC Alderson, the first fed prison camp for women in the US," Stewart said. "I look forward to getting this behind me and to vigorously pursuing my appeal," she added. She is due to report to prison on Oct 8. Nauru Parliament to vote on minister's suspension Nauru. The Nauru Parliament will meet this afternoon to vote on whether the suspension of the Health Min Dr Kieren Keke should be lifted. Yesterday's session was adjourned by the Speaker Russell Kun amidst rowdy scenes with some Govt members accusing him of not acting impartially. Chief Justice Barry Connell offered an opinion that Dr Keke remains a member of Parliament. He refused to give an opinion on the suspension saying that was a matter of parliamentary process. Mr Kun says the Parliament voted to suspend Dr Keke and it will take another vote for that suspension to be lifted. He says he will not allow Dr Keke to take his seat until that happens. "We'll go in and try to clean that up 1st and if there are not enough numbers there, then I'll cast the vote." Without Dr Keke the numbers are even, 8 all, and Mr Kun has the casting vote. Sea change haven not so idyllic Noosa, Qld. A group set up in Noosa, on Qld's Sunshine Coast, as part of a pilot program hopes to reduce the level of domestic violence in the area. The Building Safer Communities Action Team will try and establish programs in the shire to help decrease the number of domestic violence cases which, in turn, will allow police to spend more time fighting other crime. Rep Ian Wallbank says most police work in Noosa currently involves officers responding to domestic violence situations. "We've learnt that in any particular day 30 to 70% of the crime in Noosa, the police's time in Noosa, is spent on domestic violence and so we chose that for obvious reasons to reduce it and we've 1st of all worked up about 5 action strategy plans to tackle domestic violence," he said. Fresh ALH bid pushes market to new record Sydney. A bidding war for AUS's biggest hotel owner has helped push the Aussie share market into record territory yet again. A Woolworths-led group has upped the ante in the takeover battle for Aussie Leisure and Hospitality Group (ALH). Woolworth's-led joint venture Bruandwo 1st launched a share market raid on the hotel and gaming group in Jul but was trumped by US company Newbridge Capital earlier this wk. Today it has come back with an even higher cash offer of $3.15 per share. ALH stocks have gained another 3%, with Woolworths shares up almost 1%. That has combined with strength in the banking sector and a strong lead from overseas markets to help push the Aussie share market to yet another intraday high with the All Ordinaries climbing above 3,683 points in morning trade. Energy AUS boss resigns Sydney. The chairman of Energy AUS has announced the resignation of its managing director Paul Broad after 7 y in the job. Mr Broad is expected to leave at the end of Nov and will take up the position of chief executive at telecommunications company PowerTel. Energy AUS's chairman John Conde said he was disappointed at the news but promised the existing staff would continue to build on the company's success. Mr Conde reiterated his commitment to invest more than $2 bn in the electricity network over the next 5 years. Retail figures baffle economists There has been another surprisingly weak measure of retail activity in AUS. Canberra. Economists are struggling to explain where the Fed Govt's budget handouts are going. In raw figures $15.8 bn passed across the counter in the nations retailing outlets during Aug. When seasonally adjusted that is a rise of just 0.2%. After the surprise drop in Jul of 1%, analysts had expected a much bigger turnaround in the latest m. But there have been falls in turnover in NSW, SA and Tas. Sectors showing declines include household goods, recreational goods and hospitality. After the relatively modest boost to the Jun figures, economists are wondering how the Govt's family payments and income tax cuts are being spent. Other figures released by the Bureau of Statistics show a sizeable drop in job vacancies. In the 3 m to Aug, the number of positions vacant has fallen a seasonally adjusted 11%, to just under 118,000. Govt to fund local terrorism response training The Govt will brief local mayors on terrorism risks. Sydney. The Fed Coalition will today unveil plans to get local govt and volunteer emergency services organisations more involved in disaster management and tackling terrorism. A-G Philip Ruddock will outline the 4-year, $50 mn plan in SYD today. The Govt says there are more than 500,000 volunteers involved in groups such as the State Emergency Service, the Bushfire Brigade and the Rural Fire Service. If re-elected, the Coalition would spend $16 mn on a volunteer support fund to boost training to volunteer organisations, so members could be directly involved in responding to disasters, such as a terrorist attack. There would also be a $30 mn local govt grants program, to help councils upgrade security at critical infrastructure, and mayors would be given briefings by the intel agency ASIO on emerging security issues affecting their area. Water contamination charges against ERA Darwin (AAP). Charges have been laid against mining giant Energy Resources of AUS (ERA) after drinking water at its controversial Ranger Mine in the N Territory became contaminated with uranium. 28 workers fell ill after the water supply at the site in Kakadu Nat'l Park became contaminated with uranium in Mar. An investigation by the Office of Supervising Scientist, Arthur Johnston, in Aug found the mine's radiation clearance measures and water systems were inadequate, with leaky pipes and broken valves common around the mill. An NT govt report in May recommended ERA be prosecuted over the incident. Dept of Business, Industry and Resource Development (DBIRD) chief executive Mike Burgess said charges had now been filed in the Darwin Magistrates Court against ERA. "The charges have been laid under sections s39 and s23(5) of the Mining Management Act," Mr Burgess said in a statement. "Section 39 carries a maximum penalty for a corporation of $137,500 and section 23(5) a penalty of $27,500." Mr Burgess said the incident was serious, and the findings of the deptal inspectors and those of the OSS showed that it was appropriate to bring the matter before the court. DBIRD's inspectors worked closely with the OSS inspectors throughout the investigation, and the findings of both reports were substantially in agreement with one other, he said. Mr Burgess said his dept had also been in touch with the Commonwealth Dept of Environment and Heritage over the issue, and both agencies were cooperating. Now that charges had been laid and the matter was in the hands of the court, Mr Burgess said no further comment would be made by the dept until a decision was reached by the magistrate hearing the case. ERA later said it had been notified that it would be prosecuted by the N Territory's Dept of Business. "The charges relate to the incident concerning the connection of the drinking and process water systems at the Ranger uranium processing plant in Mar 2004," ERA said in a statement. Ranger Mine warned before contamination Darwin. It has been revealed the operators of the Ranger Uranium Mine in the Northern Territory were issued with a Govt safety warning 1 m before a water contamination incident earlier this y. The ongoing concerns were detailed in a Territory Govt report on the incident where workers drank water containing uranium. Northern Territory mining authorities have now laid charges against Energy Resources of AUS (ERA) over the water contamination in Mar. ERA has refused to comment but has issued a statement to the stock exchange acknowledging the charges. They are expected to be heard by a magistrate in Nov. The Dept of Resource Development's own report says that 1 m prior to the incident it had warned ERA Ranger could be closed if safety was not improved. The report says the dept had reached a level of frustration with safety issues, including ore spillage and other housekeeping problems. A Territory Govt rep says ERA had started addressing the safety concerns by the time of the contamination incident a m later. Mike Burgess from the Dept of Resource Development says it is hard to judge whether his dept could have better regulated the facility. "That's difficult to say simply because of the established practices at the time," he said. "What we've identified coming out of the incident is a need to improve in some areas and that's what we're going to do." Govt gives NT nuclear dump assurance Canberra. The Fed Govt has officially ruled out locating a nat'l nuclear waste dump in the N Territory. Fed Environment Min Ian Campbell says the Commonwealth is only pursuing an offshore site to store its radioactive waste. Sen Campbell believes Territorians are being scared by a misleading Labor media campaign on the issue but he says they have nothing to fear. "Our preferred option and the only options that we're pursuing are on offshore islands," he said. "I think the reality of this is that there is no one on the mainland who particularly wants a nuclear waste dump in their backyard and that is why we're pursuing the practical option of going to an offshore island. "So that N Territorians can take that as an absolute categorical assurance," he said. Environment groups welcome Labor's forest policy Canberra. Environmental groups believe comments yesterday by the Fed Opp'n leader Mark Latham signal a positive approach to Tas's forests. In his campaign launch speech, Mr Latham said he would soon be announcing Labor's plan to save what he called the mighty Tasn forests, conserving them for future generations. The Wilderness Society and Aussie Conservation Foundation say it is Labor's strongest statement yet on the need to protect high conservation value and old growth forests in the State. The groups say they look forward to seeing the detailed policies of both the Opp'n Leader and the PM over the next few days. Downer exits debate under tight security Adelaide (AAP). Security guards have ushered Alexander Downer through a side exit after the foreign minister was heckled during a foreign policy debate with his political opponents in Adel. Mr Downer was forced to pause several times as he was drowned out by jeers and heckles from the audience throughout the debate with Labor's foreign affairs rep Kevin Rudd, Aussie Democrats' foreign affairs rep Natasha Stott Despoja and Aussie Greens' Senate candidate Brian Noone. About 600 people attended the debate, organised by Oxfam Community Aid Abroad, which spilt over into open hostility against Mr Downer. Midway through the debate, moderator Andrew Hewett, Oxfam's executive director, appealed for calm from the audience as the crowd repeatedly booed Mr Downer. Many jeered Mr Downer when he defended the govt's close alliance with the US. "We don't walk away from the fact that the role of the Americans in helping in the war against terrorism is absolutely fundamental," Mr Downer said. "We don't walk away from our solid commitment to the American alliance. "We are proud to work with the Americans in this war against terrorism, we need their resources, we need their energy, we need their strength to help us in South-East Asia as well as in other parts of the world. "This is a big issue for the election ... we don't run away from our allies and we're not ashamed of our allies." After the 90-minute debate at the Adel Convention Centre, security whisked Mr Downer and his family through a side exit as the minister was protected by police. Hecklers jeer Downer at foreign affairs debate Adelaide. AUS's Foreign Min Alexander Downer has been jeered and heckled during a debate with his opp'n counterpart Kevin Rudd in Adel. The 600 strong crowd at the Oxfam debate in Adel began jeering when Mr Downer put forward the Govt's case on Iraq and the US alliance. "We pull our weight internat'ly, and we don't seek to shirk our responsibilities," he said. Mr Rudd tried to capitalise on the anti-Govt feeling in the crowd. "Can you trust this mob into the future, I say not, it's time for a change," he said. Mr Downer did not back down. "I don't want to be the foreign minister of this country who gives terrorists any victories," he said. Mr Rudd says there are clear reasons against a pre-emptive strike policy. "You say to our friends in Indonesia after the bombing occurs, whoops we got that one wrong," he said. "Pre-emption is a military strike on a foreign country, sometimes that results in a counter strike, and a counter strike sometimes becomes something called a war, we don't think that's entirely wise." Medicare Gold is fully funded: Latham Latham talks up his grey vote policies. Canberra. The fed Labor leader has hit the airwaves this morning to sell his plan to provide free hospital care for every Aussie over the age of 75. Under a Mark Latham Labor govt older Aussies would have free access to a private or public hospital bed. "Public and private beds can be opened up and over 75s can get their treatment, book in, no delays, no waiting lists," he said. "This is the 'Medicare Gold' treatment we want for them, this is the great extension of the principles, the universal principles of Medicare." Mr Latham says the policy is fully funded. "It's been funded by health experts, it's got indexation growth money, also money to clear the backlog, that's why all the benefits will flow from the middle of 2006 and our figures are accurate," he said. He says the plan will reduce the 30% rebate cost of private health insurance for the Commonwealth and it will also cut health insurance premiums for all Aussies by 12%. "The fact that we're taking all the over-75s into the Commonwealth responsibility for funding their hospital care and effectively eliminating their waiting lists means that it takes the pressure off the rest of the hospital system, the waiting lists come down across the board, and for the under-75s the added benefit of reduced private insurance premiums for health," he said. He says young people will not get pushed to the back of the queue. "This is extra capacity, extra resources, extra funding into the health system so that the over-75s don't have to wait. "There'll be extra resources for public hospitals in the agreements we'll be signing with the states, also extra funding for nurses -- we'll have 1,800 nurses coming into the hospital system and extra resources for participating private hospitals so that we can use their surplus capacity." Mr Latham however was unable to say exactly when there would be no waiting lists. "I'd expect that as soon as the public hospitals are spending their extra money and the participating private hospitals are participating and using their extra resources there'll be no waiting lists," he said. Mr Latham says the net cost of the policy is less than $1 bn. He says 'Medicare Gold' will also rely on the private hospital system and he will be announcing details of an agreement between Labor and the private sector later today. Labor leaders praise Latham's vision Melbourne. Mark Latham's vision for the future, laid out at today's Labor Party launch in Bris, has won support from state Labor leaders and Greens leader Bob Brown. Mr Latham's speech included the announcement of $2.9 bn for health services for older Aussies, changes to pensions and a promise to sign the Kyoto protocol. Vicn Prem Steve Bracks says Mr Latham will offer solutions to AUS's problems. "Finally we've got a leader in this country who will not just identify the problem but have a solution," Mr Bracks said. "I can tell you now, every state govt in this country will welcome what has been delivered today." South AUS's Health Min, Lea Stevens, says the 'Medicare Gold' plan, will make a big difference to the public hospital system in the state. "Absolutely, this is the best thing since sliced bread for South AUS, it will enable us to spend more of our dollars and our resources on the people under 75," she said. Greens leader Bob Brown says there is a freshness about Mr Latham's package, which will win points with the electorate. "I think on issues the Opp'n has taken up the Govt has ignored," he said. "Issues like giving grandparents who are caring for kids a bit of cash in the pocket much deserved, like ratifying the Kyoto protocol and bringing the troops home from Iraq. "These have all got traction with Liberal voters as well as Labor voters." But PM John Howard says the Labor leader has demonstrated his inexperience for office by launching his campaign without an economic plan. "There's nothing in this speech that suggest for a moment that he has a plan to keep the Aussie economy running strongly and growing further and keeping interest rates down," Mr Howard said. "He takes that as just a given -- it is not a given unless the right policies are followed." Latham talks up Medicare Gold Opp'n Leader Mark Latham with his wife and mother. Sydney. Fed Labor leader Mark Latham will this morning begin selling his plan to provide free hospital care for all Aussies aged 75 and over. Mr Latham unveiled the policy at Labor's campaign launch yesterday. The Labor leader staked his claim for the Lodge with some big ticket promises for older Aussies. "It's Medicare Gold and only a Labor govt will deliver it," he said. Mr Latham has promised to pay for the hospital costs of all Aussies aged 75 and over. They will have free access to a public or private hospital bed and Mr Latham has vowed there will be no more waiting lists for older Aussies. "This is an important extension of the universal coverage of Medicare," he said. There is also a pledge to increase the pension 4 times a year instead of 2, and grandparents caring for children will receive $20 a wk per child. PM John Howard is analysing Labor's initiatives, but he says the fatal flaw in Mr Latham's speech is the absence of a plan for the economy. "He doesn't have a plan for the future, he doesn't have a plan for the most important issue and that is to keep the economy strong and to keep interest rates low," he said. "You can make all the promises in the world but unless you run a strong economy and keep interest rates low you can't deliver and his speech is quite devoid of any plan to keep the Aussie economy strong and that is the biggest single weakness." Mr Howard insists the election is a referendum on the economy not on Medicare. * Mixed reaction Mr Latham's plan for older Aussies has received a mixed reaction from interest groups. With more than a mn Aussies over the age of 75, Mukesh Haikerwal from the Aussie Medical Association says Labor's guarantee of free hospital care and no waiting lists could not occur immediately. "Although there is a guarantee that they'll get access to services, there is going to be some delay," he said. And with an ageing population he is worried about sustainability of the policy. So is Yvonne Zardani from the Pensioners and Superannuants League. She also thinks Labor's planned $20 per child payment to carer grandparents is not enough. "$20 a wk isn't going to help them," she said. The Aussie Council of Social Service has largely welcomed Labor's platform but says it could have gone further. "It will make a difference and it is recognition that grandparents do play a pivotal role," he said. The nation's biggest provider of hospital services, Catholic Health AUS, says it is delighted with the plan. * Out and about The PM will begin the day campaigning in MEL. Mr Latham will be in Bris selling his policy for older Aussies. Nat'ls leader John Anderson will be in Bourke in NSW where he will take part in a street walk before heading to Coffs Harbour. Latham's grey vote pitch draws mixed response Sydney. Labor leader Mark Latham's plans for older Aussies has received a mixed reaction from interest groups. At Labor's campaign launch yesterday, he promised to pay for the hospital costs of all Aussies aged 75 and over, including free access to public or private hospital beds and that there would be no waiting lists. Dubbed Medicare Gold, the plan would cost $2.9 bn in its first 2 years. The Aussie Health Insurance Association has warned Labor's promise may put greater strain on the hospital system. The association's chief executive, Russell Schneider, says while the policy appears attractive Labor would have to ensure more beds are made available. "There are lots of people under 75 who have quite urgent needs for hospitalisation," he said. "At the moment, the private hospital sector is coping quite well with overall demand, but it's pretty heavily utilised. "So it's a question as to whether more beds would be able to be made available in the private sector and if so, whether that would create access problems down the line," he said. With more than a mn Aussies over the age of 75, Mukesh Haikerwal from the Aussie Medical Association says Labor's guarantee of free hospital care and no waiting lists could not occur immediately. "Although there is a guarantee that they'll get access to services, there is going to be some delay," he said. There is also a pledge to increase the pension 4 times a year instead of 2, and grandparents caring for children will receive $20 a wk per child. Yvonne Zardani from the Pensioners and Superannuants League is worried about sustainability of the policy. She also thinks Labor's planned $20 per child payment to carer grandparents is not enough. "20 dollars a wk isn't going to help them," she said. Andrew McCallum from the Aussie Council of Social Service has largely welcomed Labor's platform but says it could have gone further. "It will make a difference and it is recognition that grandparents do play a pivotal role," he said. The nation's biggest provider of hospital services, Catholic Health AUS, says it is delighted with the plan. Prime Min John Howard is analysing Labor's initiatives, but he says the fatal flaw in Mr Latham's speech is the absence of a plan for the economy. ALP to blow out waiting lists: Howard Sydney (AAP). Labor's Medicare Gold plan was a hoax and would spark a blow out in hospital waiting lists for people aged under 75, PM John Howard said. Under Labor's $2.9 bn plan, the fed govt would pick up the tab for hospital patients aged 75 and over. Labor argues its plan will enable elderly patients access to a private or public hospital bed whenever they need one and clear the backlog of people on waiting lists. But Mr Howard said Labor's plan would result in longer hospital waiting lists for people aged under 75. "It sounds very good on the surface, but once you dig beneath the surface doubts arise," Mr Howard told Sky News. "The 1st and most important one is if you're going to cut waiting lists for the over 75s that must lengthen the waiting lists for the under 75s -- because there's nothing that is going to produce the extra beds and the extra doctors to accommodate the cutting the waiting lists." Mr Howard said it would take y for the extra doctors Labor had promised to come on stream and there was no guarantee from state govts to produce additional hospital beds. "So what you will be doing is shifting the problem to people under 75 and in that way it is something of a hoax," he said. "You'll have a bigger waiting list for the under 75s as the price of providing no waiting list for the over 75." Mr Howard said there were not the doctors available. "You have a given number of doctors to provide a given number of operations and if you give priority to one age group, the logical consequence is that other age groups will suffer," Mr Howard said. "Their waiting times will increase. "On top of that, the executive director of the Private Hospitals Association is saying there is very little capacity in private hospitals. "This idea that there is enormous, unutilised capacityin private hospitals -- that is a myth." Mr Howard strongly counselled anybody over 75 or approaching 75 against getting rid of their private health insurance. PM labels Medicare Gold a hoax Howard urges older Aussies not to give up private health insurance. Sydney. PM John Howard has described Labor's $3 bn plan for free hospital care for people over-75 as a hoax which would not be equivalent to what private health insurance delivers now. Labor says with savings the policy would cost less than $1 bn, which includes the reduced cost to the Commonwealth of the 30% rebate when older Aussies no longer need private health insurance. He told Sky News older Aussies should not give up their private health insurance. "It will take years, even according to Labor, for the extra doctors they've announced to come on stream," he said. "There's no guarantee that the states will produce extra beds. "In fact the criticism of state govts is that they have cut the number of beds in state hospitals. "So what you will be doing is shifting the problem to people the under 75s and in that way it really is something of a hoax," he said. Opp'n Leader Mark Latham says his plan will reduce health insurance premiums for all Aussies by 12% and that the policy is fully funded. "The fact that we're taking all the over-75s into the Commonwealth responsibility for funding their hospital care and effectively eliminating their waiting lists means that it takes the pressure off the rest of the hospital system, the waiting lists come down across the board, and for the under-75s the added benefit of reduced private insurance premiums for health," he said. He says young people will not get pushed to the back of the queue. "This is extra capacity, extra resources, extra funding into the health system so that the over-75s don't have to wait. "There'll be extra resources for public hospitals in the agreements we'll be signing with the states, also extra funding for nurses -- we'll have 1,800 nurses coming into the hospital system -- and extra resources for participating private hospitals so that we can use their surplus capacity." Mr Latham however was unable to say exactly when there would be no waiting lists. "I'd expect that as soon as the public hospitals are spending their extra money and the participating private hospitals are participating and using their extra resources there'll be no waiting lists," he said. Mr Latham will be announcing details of an agreement between Labor and the private sector later today. Medicare Gold policy needs examination: Democrats Canberra. The Democrats have welcomed fed Labor's Medicare Gold policy. But leader Andrew Bartlett says his party would look closely at the detail if the plan reaches the Senate to make sure it delivers benefits to the public rather than the private health insurance industry. "It is a significant policy, it's a dramatic policy, it's an ambitious policy," he said. "That means it's something that should be praised as an attempt to address a real problem, but it's also something that needs to be examined closely to make sure it will actually work in the way Labor promises it will be. "It's one thing to pledge all this magnificent thing (sic) on the eve of an election, it's another to make it work in the detail after the election's out of the way," he said. Abbott unconvinced by Labor's Medicare 'mirage' Sydney. The Fed Health Min Tony Abbott says he does not think older people will buy Labor's $3 bn plan for free hospital treatment for those over 75. Labor leader Mark Latham says the policy has been fully costed and is affordable and would cost less than a bn dollars after savings, including those from the reduced cost to the Commonwealth of the 30% health insurance premium. Mr Abbott says the health insurance industry has already pointed out the total hospitalisation cost for people over 75 is nearly $4 bn. He says it is a nice idea but there are not the doctors, the hospital beds or the funds to deliver it and older people will not be taken in by the plan. "I think older people aren't easily conned," he said. "I think older people are just as sceptical about pie in the sky promises as the rest of us and this really is a pie in the sky promise. "It is a Medicare mirage," he said. Police bust nationwide child porn ring Police have seized child pornography. Canberra. There have been raids across the country by police investigating child pornography on the Internet. The ABC has been told that Aussie Fed Police (AFP) and officers from all states and territories have been involved in the operation. Several hundred homes have been searched. It is believed that computers, which contained images of children being abused, have been seized by police. Charges have already been laid against some people over the possession of the material. They have faced courts in some states. The AFP has refused to confirm the details about the investigation except to say that an operation is continuing. It is expected to make a statement later today. Academic expects child pornography arrests to increase Aldelaide. An academic who specialises in child protection says police raids on 400 properties across AUS targeting Internet child pornography are just the start. Emeritus Professor Freda Briggs of the University of SA expects the operation to grow much larger and trap more people. Professor Briggs says the investigators are on the right track because research shows a 100% correlation between those who collect child pornography and those who abuse children. "Because they are obviously interested in getting some sort of sexual satisfaction from looking at it, and you usually find that when there is a police raid, people have 100s and 100s of images that they've collected," she said. Police, teachers charged in child porn bust Fed police says it is the largest ever crack down on Internet child pornography. Canberra. One-hundred-and-fifty people, including police officers and teachers, have been arrested in what the Fed Police (AFP) describe as AUS's biggest Internet child pornography bust. Police have seized computers containing images of children being sexually abused and claim to have uncovered studios making child pornography, hidden in suburban houses. Those arrested have been charged with offences including child sex tourism, abuse, and downloading or distributing pornographic images of children. The AFP say 100s of people across the country will be prosecuted after several hundred homes were raided across AUS. Acting director of the ACT's Hi-tech Crime Centre Mike Phelan says a number of people who have regular professional contact with children have be caught. "Also discovered in this investigation is the widespread profile of those involved in this particular crime site," he said. "It is promoted across all spectres of society and has involved particularly high risk professions and those involved with contact with children, including healthcare professionals, education dept officials and those working within the education environment." West Aussie police have arrested 21 people and laid 37 charges, including possessing and supplying child pornography. Some of those charged include 2 teachers, current and past employees of state MPs and a serving WA police officer, who has since been stood down. 55 people were arrested in Qld, 42 in NSW, 26 in Vic, 9 in the N Territory, 7 in South AUS and one in Tas. The NSW Police Commissioner Ken Maroney says 2 police officers were arrested in his state. "There have been a number of charges preferred and will be preferred against a number of other persons and these include the most heinous and vile, despicable crimes against the children not only of this state but the children displayed in those images," he said. The ABC has been told that Aussie Fed Police (AFP) and officers from all states and territories were involved in the operation. The AFP says that an operation is continuing. Trial of Bond Corp executive aborted Perth (AAP). The trial of former Bond Corp executive Tony Oates has been aborted and the jury discharged after 2 m of evidence. Oates, 61, has been remanded in custody pending a bail application on Fri and now faces a lengthy wait for retrial on charges related to AUS's largest corporate fraud. The trial in the WA Supreme Court was aborted after a submission from Oates' lawyer that the prosecution introduced new evidence during Oates' cross-examination. Oates had been on trial for conspiring to defraud Bell Resources and failing to act honestly in his position as director of Bell Resources and Freefold. The crown had alleged Oates, a former executive director of Bond Corporation, was involved in siphoning $1.2 bn from Bell Resources to prop up Bond's ailing empire. Before discharging the jury, Justice Len Roberts Smith said the "effect of the evidence is damning". Outside court, Oates' lawyer Liz Fullerton SC refused to be drawn on the reasons for the application. "I made the application on my client's behalf and in his interests," she said. Comment was being sought from the Commonwealth Director of Public Prosecutions. A statement from the WA Supreme Court said the application to abort the trial was made on the basis that the state had not offered all the proof in its case and therefore had split its case. The High Court has ruled that this is impermissible, the statement said. Oates has denied one charge of conspiring to defraud Bell Resources, and 7 charges of failing to act honestly in his position as director of Bell Resources and Freefold. He also faces 7 alternate charges of making improper use of his position of director at Bell Resources and Freefold. Oates was extradited from Poland to AUS in Jun 2003 to face the charges and, by the time the trial began on Aug 4, he had spent almost 2 years in maximum security prisons in both AUS and Poland. He took the stand earlier this wk, denying any knowledge of the complex back-to-back loans at the heart of the allegations. NT roadhouse lashed by violent storm Kulgera, C AUS. A wild storm that locals are describing as a tornado has hit the Kulgera roadhouse nr the border between the N Territory and SA. Witnesses describe storm clouds gathering early last night as forming a funnel that lashed winds and hail onto the tiny settlement with a permanent population of fewer than 20. A German tourist received a gash to his head and a woman has sustained an arm injury from flying hailstones. Kulgera roadhouse manager Tony Braithwaite says residents went through 10 horrifying minutes. "Well, we've been watching those ones in Florida, and we thought we were in it," he said. "We actually thought the bloody pub was going to up-lift and go and long term residents in the pub at the time have never ever seen anything like it or anything close to it." SpaceShipOne makes successful flight SpaceShipOne will make its next flight on Mon. LA (AFP). A private manned rocketship blasted through the Earth's atmosphere into space after a hair raising corkscrew ascent on a flight aimed at capturing a $14 mn prize. SpaceShipOne, piloted by 62-yo S African born Michael Melvill, reached an altitude of some 100 km, organisers said, putting it halfway towards winning the prize put up by a private foundation seeking to boost space travel. The rocketship reached an altitude of 101,250 meters, officials said. To win the $14 mn Ansari X Prize, a manned, reusable spacecraft must be sent into space twice in 2 wk. A 2nd flight is expected on Mon. The official Ansari X Prize judging committee said the figure remained subject to verification from equipment at nearby Edwards Air Force Base, but the initial data showed SpaceShipOne had surpassed the 98,400 m considered the edge of space. Dressed in a black jumpsuit and standing on top of the stubby rocket plane after a smooth landing at the former US military air base in the California desert, Melvill declared it a "near-perfect flight". "Now that was fun," he said. "I really feel like I nailed it." "I was very, very pleased with how the vehicle behaved," he said, playing down the corkscrew rolls performed nr the top of the ascent. "A victory roll at the top is important to a pilot," he quipped. SpaceShipOne designer Burt Rutan said technicians would examine the roll before going ahead with Mon's flight. "We will be analysing why we got the roll," he said. "Will it delay the flight on Mon? We don't know that yet." Melvill said he did not expect to be at the controls for the next flight. "I'm too old to be doing this," he said. SpaceShipOne ignited its rocket engines after being dropped from a specially adapted jet called White Knight at an altitude of 15 km and blasted off towards space, attaining speeds of up to Mach 3.5. Rutan and his company Scaled Composites joined with Microsoft founder Paul Allen and his firm Vulcan to form the Mojave Aerospace Ventures team behind SpaceShipOne, which carried out a successful test flight on Jun 21 with Melvill at the controls. The Ansari foundation put up the $14 mn prize 8 y ago to give the same impetus to space travel that the Orteig prize did to inspire Charles Lindbergh's 1st transatlantic flight in 1927. The winning vessel must carry the pilot and the equivalent weight of 2 passengers. There are 26 vehicles in contention for the Ansari prize, but SpaceShipOne is the most advanced. Rutan expects that SpaceShipOne will attract a lot of investment to the sector and that in a few y people will be able to buy tickets for sub-orbital flights. The flight is taking place just 2 days after Rutan and Brit tycoon Richard Branson announced a bid to start a "galactic" airline aimed at eventual commercial space travel. The project will use technology based on SpaceShipOne, and Branson has predicted the 1st flights could take off in 3 y. Dig finds more dinosaur bones Winton, C Qld. One of the most successful dinosaur digs nr Winton, in central west Qld, has finished. The dig is the 5th since 2001, after Winton grazier David Elliot discovered the thigh bone of AUS's largest dinosaur, also named Elliot. Mr Elliot says some 30 bones were found this time, mostly from juvenile dinosaurs, making the total bone collection for the year about 50. He says the Qld Museum is expected to release some exciting news at the end of the year, once it has identified the bones. "It's very hard to say exactly what we've got. Some are obvious, like a rib, but we do have other bones here that we've discovered and coated with ironstone that we're fairly confident that they're going to turn out to be quite exciting," he said. "[There]...seems to be quite a few pelvic elements and things, like there's never been any pelvic elements really discovered in an Aussie sauropod." New technology provides 'back-seat driver' assistance Drivers may soon have no excuse for ignoring road signs. Canberra (Reuters). Aussie scientists have invented an electronic driver's assistant system, similar to the back-seat driver who forever points out road signs and warns against speeding. "The Aussie invention is part of a global effort to make drivers more aware of road signs, especially those concerned with safety," New Scientist magazine said. The new driver's assistance system (DAS) developed by Nat'l Info and Communications Technology AUS (NICTA) in CBR detects road signs and warns drivers to slow down. "DAS uses 3 cameras: one to scan the road ahead and a pair to monitor where the driver is looking," the magazine said. A computer system fitted behind the dashboard collates the info with data on the speed the car is going. If it appears the driver has not seen a sign or has not slowed down, a warning is issued. In preliminary tests, DAS performed "pretty well" even at high speeds, according to its developers. They plan to test it in full scale road trials with many types of road signs soon. GPS, satellite phones on illegal fishing boats Canberra. The Fed Govt says it is concerned that boats caught fishing illegally in N Aussie waters are increasingly being found with advanced technology on board. 3 boats were recently caught off the N Territory coast, all of them had satellite phones and global positioning systems. Fed Fisheries Min Ian MacDonald says it shows the situation is becoming more serious. "It's fairly clear that there is an increased level in sophistication from these pirate boats but we are aware of it, we have increased our surveillance and our ability to apprehend them," he said. {{ Midnight. In the past hr, a video of kidnapped Brit Ken Bigley has been shown on Arab-language TV Al-Jazeera. He was shown in a small cage, with hands shackled to his feet. In a wider shot, there were 2 empty cages next to his. He said Tony Blair was lying about not negotiating to free him. His captors want US-held female prisoners released. His brother says the good news is Ken's still alive. Something has to be done very quickly, he added. 1 am A Yemeni court sentenced 2 men to death for their part in the attack on a US warship USS Cole 4 y ago. The ship had been in Aden harbour when it was rammed by a rubber boat packed with explosives. The attack killed 17 US seamen. At least 40 were injured. Only 1 of the main suspects was in court today. The other key suspect was tried in absentia. He was arrested in the Emirates in 2002 and then extradited to the US where he's being "held at undisclosed location". 4 other suspects rec'd 5 to 10 y jail for assisting in forging documents and handling funds for the attack. The IMF says the world economy is likely to grow at its greatest rate for 3 decades. It says there are risks with oil price volatility, but predict global growth of 5%. The IMF thinks the rate will fall in coming ys. In some countries -- incl the US -- growth has been revised downward. A US-based company has paid $US2 bn for a holding in Russia's 2nd-largest oil company. Lukoil is now completely priv owned after the Russian govt sold its 7% stake. The company has a report 20 bn bbl in oil reserves -- the 2nd biggest amt in the world. Putin gave the deal the nod over the summer. 44 asylum seekers have entered the Canadian embassy in Beijing. They are believed to be N Korean. The group climbed over the fence. China treats NK's as illegal immigrants and repatriates them. 100s have entered foreign embassies and been allowed to move on. As many as 2,000 illegal NK immigrants are believed to be in the country. Today, some disguised as construction workers broke into the Canadian embassy. Men, women and children used ladders to scale the compound walls. It's the largest group to break into any Beijing embassy. Snr Nigerian officials are denying they invited a rebel leader to meet with the Pres. The rebel cmdr says he was taken to the Nigerian capital for talks with the Pres. That's been denied by the govt. Reps say they are not taking seriously rebel threats to disrupt oil prod'n in the S delta region. It's the 50th anniversary of CERN -- the biggest nuclear physics lab in the world. It's been unlocking the basic secrets of matter since after WWII. 1.30 am The released Italian and Egyptian hostages say they were treated well and with respect by their kidnappers. 2 am A typhoon has killed 3 people in Japan. 14 people are still missing. It was the 8th storm to hit Japan this y. 180,000 were told to evac from low-lying areas, where officials expect flooding and high tides. 100s of train and aviation services were suspended during the storm. Thailand has ordered the pop'n to eradicate bird flu by the end of the y. The govt has ordered prov'l governors to conduct chicken a census of every household, to find birds that have died from flu, and cull where necessary. A group of internat'l diplomats have written an open letter to Russian Pres Putin, warning against moves to centralise govt control. Israeli forces has killed 3 Pal incl 2 teens after storming into N Gaza for 3rd time in as many m. At least 15 -- incl school children in uniform -- were taken to hospital during the incursion. Israeli soldiers have also shot a 13 yo and wounded other stone throwers that approached the entrance of a temple, according to doctors. A man in Norway has attacked the pilots and stewards of a flight with an axe. The attack occurred on a domestic flight. 7 passengers were on board, flying to N Norway. The man was immediately arrested on arrival at the destination. [Later reports say that attack is believed to be connected with the man's failed asylum application]. China has accused Taiwan of "war provoking behaviour" after the Taiwan Pres said Taipei could attack Shanghai if China attacked Taiwan. 2.30 am Indian and Pak are to discuss the withdraw of troops from a key glacier in Kashmir, known as the world's highest battlefield. China has announced a series of measures to reduce the growing gap between rich and poor. The measures incl loans to small business. 3 Afghan soldiers have been killed and 3 wounded in S Afghan. 4 militants were also killed in clashes. Militants also launched 2 raids on US convoys. Pres Karzai has said the nat'l vote will take place on schedule. 1 Philippines soldier has been killed in a gun-fight with Abu Sayaff rebels in the S Philippines. 5 rebels were also captured in the operation. 3 battalions of Army soldiers have been searching the region for an Abu Sayaff leader with alleged direct links to al-Qaeda. Finance officials meeting in Washing for the annual IMF meeting will notice changes. Concrete barriers have been erected because it's believed the building has been scoped out by al-Qaeda for a possible attack. World Bank chair John Wolfenson says $900 bn world-wide has been spent on security this y. That's a Hell of a lot of money, Wolfenson told reporters. The WB only has $30 bn USD in capital. Scuttlebutt inside the beltway is saying that Wolfenson may soon be moving on from the job, and the Bush Admin is set to appoint Colin Powell. Wolfenson told DW radio he understands Powell has "no interest whatever" in the bank job. Germany already has the most expensive electricity in the EU. The system was liberalised in 1998, but the cost has gone up 8% since then. Now, companies have announced more hikes. 5-13% from Oct. Jaded consumers suspect the companies are trying to get ahead of new leg'n that will regulate the market from Jan. Ind'y groups say businesses could save 11 bn euros if the market were better regulated. The Electricity Assoc blames the hikes on taxes and govt charges. But analysts say the cost of electricity seems to have gone up, just as the cost of production has gone down. The German Cabinet has proposed new laws. Mins say there isn't enough competition. The laws will enable the regulatory body to regulate prices retrospectively, if price hikes have been "abusive". Schroeder has called energy bosses in for a talk over the newly-announced price rises, although no specific date has been set for the meeting. The Greens say the market is signalling Germany has reached the end of the old wasteful way of using energy, and new ways must be found. 3 am Sderot. A missile attack by Pal militants has killed 2 Israeli children say medical workers in the town bordering the Gaza Strip. 10 others have been wounded. The attack came after the Israeli army shot dead 3 Pal during an incursion into N Gaza. Hamas has claimed responsibility for the rocket attack. The Israeli incursion came just before sunset. It was aimed at stopping rocket attacks. A private space plane has soared to 100 km above the surface of the Earth in a bid to win the X Prize. Space Ship One reached Mach 3 above Cal before descending and landing successfully. A 2nd flight must now occur within 14 days to win the $US10 mn prize. The ship was piloted by the 62 yo S African who flew earlier this y. The craft unexpectedly rolled 40 times during the trip. It was "no big deal -- I was still pointed in the right direction", said the pilot. The next flight is planned for Mon, US time. To win the prize, 2 flights must carry a pilot and at least the dead weight of 2 passengers. For SS1, the dead weight consists of mementos from the team who created the space ship. 3.30 am Oil has unexpected fallen. NYMEX crude is down 1.30 at $US48.60/bbl after being over $50. Govt data has showed US stocks have unexpectedly risen for the m. In London, the FTSE is up .5% at 4,588. The Dow is also up 59 (2%) at 10,093. The Nasdaq is up 24 pts. On the LME Nickel is up 5%, with zinc and copper up 3%. 10 am For the first time in 2 wks NY oil has closed lower. It ended down .39 at $US49.51/bbl as US stocks rose and concerns over Nigeria eased. Tony Blair says the terrorist group that's kidnapped Ken Bigley has made no attempt to contact his govt. If they did, my govt would immediately respond, said Blair. The French govt says it's "proceeding cautiously" after an indep negotiator says they have arranged the release of French hostages in Iraq sometime this wk. It's the 41st day of their captivity. The UN head of security says aid distribution has been slowed down by a complete breakdown of security in Haiti. The All Ords is up 12 pts at 3,679. The Nikkei is up 80 pts. The AUD is trading at 71.60 US c. Gold is at $US412.60/oz. The Vic Cancer Council is to re-launch its "Sun Smart" campaign today. Skin cancer is on the rise, despite ys of "Sun Smart" campaigns. The biggest porn ring in Aussie history has reportedly been smashed. The AFP have confirmed it's targeting child porn and raided 100s of homes. Many suspects have appeared in court in several states after state and federal police raided around 400 homes in the past few days. Snr defence dept, churchmen, teachers, and govt officials are among those charged. 10.30 am The All Ords has hit a new record high. Mobile phone seller "Crazy John" has threatened the ALP with a lawsuit after they used the name in ads to refer to the PM. All Aussies entering the US must be fingerprinted from today. 11.30 am In the last few mins the AFP has announced details of "operation OXEN". The operation -- targeting people buying child porn -- has been going on since Mar. It only peaked in the last wk. 150 people have so far been arrested on 2,000 charges. 100s more are to face court. Police say they've seized an incredible amount of material. About 2 mn photos have been seized. 1 library alone contained 250,000 images, say police. The material appears to have been collected over decades. Pix show victims aged from 2 to 16. Police say they've found home studios. No names of suspects have been released. But those arrested include health-care workers, teachers, and police. 55 men were arrested in Qld, 42 in NSW, 26 in Vic, 21 in WA, 7 in SA, and 1 in Tas. Catholic Health -- which controls 30% of the market -- says it's been pushing for a scheme like Medicare Gold for ages. Speaking favourably of the ALP policy, reps say there is plenty of capacity in the private system for the scheme to work. Mr Latham says Medicare Gold should make premiums for other policy-holders 12% cheaper, and he has a way to make that happen. The Howard govt says the scheme could cripple the health system. Health Min Tony "who is that Archbishop" Abbott called it "Medicare Nirvana". Mr Howard later said it could "destroy the system as we know it". It would only be implemented at a cost to others, said the PM. Indicating there is no way to manage the health systems, Mr Howard said the waiting list for under 75s would grow if the waiting lists for over 75s was reduced. Midday. The All Ords continues pushing into new territory. In Japan, the Nikkei is up 98 pt (1%). BHP Billiton was at new highs from the opening. It's down now. Oil Search is up 2%. But Caltex is down 2%. In London, the FTSE ended up 21 pt at 4,588. The Hang Seng is up 142 pts. The AUD is higher at 71.66 US c. Gold is up 1.40 at $US412.75/oz. Oil is lower at $US49.51/bbl. Scientists warn Mt St Helens in Washington state could be about to blow. The last major eruption claimed 50 lives in 1980. 200 homes were destroyed. The eruption was preceded by the biggest landslide in history, say US officials. According to the ABS, retail spending in AUS rose .2% in Aug after a .1% fall in Jul. 6.30 pm 2 Israelis and a Pal have been killed in clashes in N Gaza. Earlier, 6 Pal were killed in Jabaliya refugee camp in an Israeli attack. Medical staff say 20 were wounded. Israel says it's escalating operations in the area to halt rocket attacks. In an earlier attack, doctors say 2 children aged 3 and 5 were killed as they played outside. 13 people were wounded. Israel has vowed to take whatever measures are necessary to defend its citizens. Parts of Gaza City were plunged into darkness as Israel targeted empty contains that military cmdrs say were offices of an Islamic charity. There was a brief hostage crisis in Peru o'night. 17 tourists were seized at an Inca site. Cocoa farmers were protesting at the US-backed eradication campaign. Peruvian security forces moved in and released the hostages. The Aussie school in Jakarta calling for $800,000 from the AUS govt to upgrade visible security. Reps say the US is tipping in $2 mn for its own school in the Indon capital. It makes more sense to upgrade school security than beef up the Darwin hospital to treat casualties, said the rep. The All Ords has closed up 8 pts. The Nikkei added 37 pts, snapping a 9-day losing streak. The Hang Seng closed up 169 pts. The AUD is at 71.51 US c -- losing ground after weak retail sales. Oil is lower at $US49.23/bbl. Typhoon Mary continues to lash N Japan after killing 17 in the S. 8 people are missing. The Fed Govt has categorically ruled out a nuclear waste dump on the AUS mainland. The announcement was made on Darwin radio, where the ALP candidate -- Jim Davidson -- was about to launch his campaign, running on anti-nuclear issues. The candidate went on to question the sincerity of the promise. 8 pm About 30 people are reported killed after 2 car bombings in Baghdad. Both attacks targeted a US convoy. As soldiers moved to help the injured from the first bomb, a 2nd bomb went off. 10 pm In Japan, Meari ["echo"] is weakening -- heading north after lashing the region with 100 kph winds, 2 days of floods and landslides. Kyoto looks set to become reality, with the Russian Cabinet passing it tonight. The move puts pressure on AUS and the US to follow. The measure will now go to the state Duma. Critics say the move is part of a Russian bid to join the WTO. Africa's debt must be written off to meet UN goals on poverty. A UN conf on trade and devel says developing countries continue to hand over more in payments than they are receiving in loans and aid. An AIDS group in S Af is the taking the govt to court. It was only 6 m ago the govt agreed to distribute antiretroviral drugs. Until then, govt mins had claimed traditional medicines -- incl eating onions and garlic -- were sufficient to beat the disease. Some even questioned the link between AIDS and HIV. 1/3 of the adult pop'n is HIV+. The IMF has approved a $600 mn loan to Iraq, hoping it will encourage other debtors and donors. 11.30 pm Hospital officials in Iraq are reporting the latest Baghdad attack involved 3 rapid bomb attacks. 37 have been killed, most of them children. The bombings occurred in the SW of the capital, nr a US convoy. One of the bombings occurred as residents celebrated the opening of a nearby water treatment plant. US soldiers and Iraqi police are among those killed. Another blast to the W of Baghdad happened earlier in the morning. A suicide car bomber drove a car into a checkpoint nr Abu Ghraib prison. 3 died -- incl 1 US soldier and 2 Iraqi police. A woman and children were among the injured. The US Air Force has continued bombing Fallujah o'night. The US military says it bombed a house used by al-Zaqawri. But local medical officials say 2 women and 1 child were among those killed. The Israeli incursion into N Gaza continues. There's been heavy fighting between Pal militants and soldiers. Tanks have moved into the centre of Jabaliya refugee camp. There's been mixed reaction in HK after China said it would take more control of the territory. 400 suspected illegal immigrants have landed on an island S of Italy. Elsewhere, EU Immig Mins have been meeting in the Netherlands over the past 2 days. They're discussing whether applications for asylum can be decided outside the EU. They're planning to process then at centres in N Af. At the Brighton Labour Conf there's been a motion to set a withdraw timetable from Iraq. But it was defeated by more than 4 to 1. Jack Straw said it was up to Iraq to decide when Brits will withdraw. It was their call -- if they say "leave" then we leave, said Straw. Delegates wondered whether Brit troops were helping or creating more trouble in Iraq. There was also concern at the continued alliance with the "heavy handed" Americans and their possible future targeting of Iran were they would drag allies into more danger. }}