AAP Internet Bulletin 1700 Monday Feb 1, 1999

AAP General News (Australia)
02-01-1999
AAP Internet Bulletin 1700 Monday Feb 1, 1999





[A][JOBS COSTELLO][FED]

Costello aims for 5% jobless

Unemployment would fall to possibly as low as four to five per cent under a GST and with
continued reform in the jobs market, Treasurer Peter Costello said today.

Australia recorded an unemployment rate of 7.5 per cent, seasonally adjusted, for December
1998.

"An employment rate of four to five per cent is the rate that you've seen in the United
States, and it's been done on a growing economy with a flexible labour market," Mr Costello
told reporters.

"The degree to which we keep our economy growing, and the degree to which we improve our
labour market, and the degree to which we get tax reform, and the degree to which we pass
welfare reform will be the degree to which we create more jobs.

"We've got to achieve these things to make progress, and the faster we achieve them the
faster the progress we'll make.

"Improving the tax system and enacting the government's tax package will create jobs."

Mr Costello said passage of the government's tax package through the Senate was vital for
faster economic growth, better investment and boosted employment.

"It's a bit like a race - the more hurdles you put in the way the longer it's going to take
to get to the finish line," he told the Seven Network.

"If you want to sit around and argue about tax reform for years and make slow or no
progress that's the degree to which you'll slow down economic growth and better employment
outcomes.

"The degree to which you want to nitpick, delay, obfuscate, obstruct - all of the things
that Labor is intent on doing -- is the degree to which you hold up progress."

But Labor is ready to provide evidence before the Senate that a GST would cause job losses,
not create employment opportunities, opposition treasury spokesman Simon Crean said today.

Mr Crean said Costello's jobless goal would not happen under the government's present tax
reform package which included the GST.

"We are going to be stopping the GST - we are working on the assumption that we can stop it
in the senate," Mr Crean told reporters.

Mr Crean said the Treasury last week in the senate inquiry admitted its taxation model was
on the assumption that there would be no increase in jobs.

"We will have evidence come before the senate that shows that there actually will be job
losses," Mr Crean said.

He said he welcomed Mr Costello's statement about a lower unemployment level being
achievable.

But he said the opposition would support bipartisan talks on unemployment only if the
government embarked on tax reform that encouraged jobs, taxation that provided incentive for
innovation, incentive for skill development and incentive for investment in infrastructure,
tax credits to encourage people off welfare into work.

"That's the tax reform that we will embrace and we will support and work with the
government to implement it," Mr Crean said.

"We now have got agreement to the five per cent (unemployed target), what we now need is
the policies that will get it."





[F][RATES RBA]

No rate cut yet: economists

The Reserve Bank of Australia would not cut official interest rates this quarter following
recent evidence the Australian economy was growing robustly, economists said.

The RBA holds its monthly board meeting tomorrow and most analysts said they did not expect
a cut in official rates until the second quarter of 1999.

If the central bank stuck to its inflation targeting regime it would likely cut the
official interest rate from its current level of 4.75 per cent, economists said.

However, the market consensus was that inflation below the RBA's target range of 2.0 per
cent to 3.0 per cent was not a concern and the central bank should adopt a wait and see policy
for the moment.

"If the Reserve Bank were to apply its inflation targeting regime strictly, it would cut
cash rates following Tuesday's Board meeting," NM Rothschild & Sons chief economist Ric Simes
said.

But he said the central bank was unlikely to do so.

"In part, this is because inflation will trend back into the RBA's target zone as the year
unfolds," he said.

"But more importantly, the Bank isn't - and shouldn't be - applying its inflation targeting
regime too mechanically."

Mr Simes said inflation had remained contained below the RBA's target range for around two
years due to an over-supply on world markets for goods and services and despite the fall in
the Australian dollar to its lowest post-float level.

The over-supply was the result of the shock to world growth "flowing from the crises in
emerging markets and Japan".

Deutsche Bank economist Richard Yetsenga said the level of inflation left the RBA with
"absolutely no reason to raise rates and a clear bias to reduce rates".

Even so, he said his house believed the RBA would not decide to cut rates at this meeting,
instead prefering to wait on developments in the global economy and concrete signs of slowing
in the domestic economy.

Commonwealth Bank of Australia (CBA) currency strategist Michael Workman said the CBA did
not expect a rate cut in Australia until April or May.

"We believe that clearer signs of slower domestic growth are required and should emerge by
then," he said.

Salomon Smith Barney economist Paul Brennan agreed the RBA would wait for further evidence
of a growth slowdown here and added that the central bank would likely want a cut in the US
before acting.

Bankers Trust chief economist Chris Caton said it was more likely the RBA would leave
policy unchanged at its Tuesday Board meeting than cut the cash rate.

"With last week's good news on inflation, the door clearly remains open for a cut, but
evidence that the economy is still growing at a very strong rate suggests that the Bank should
be in no rush to stimulate growth further," Mr Caton said.

Economists also noted concerns about weakness in the Australian dollar as an issue for the
RBA.





[I][YUGO KOSOVO]

KLA to oppose Kosovo talks

Ethnic Albanian rebels are indicating opposition to international peace talks in France
this week, saying that negotiations "organised in a rush" cannot resolve the Kosovo conflict.

Meanwhile, violence erupted again yesterday, despite international demands to halt the
fighting. Police sources, speaking on condition of anonymity, said three Serb policeman were
wounded last night when ethnic Albanian rebels fired a grenade at their van in the village of
Istinic, 70 kilometres southwest of Kosovo's capital, Pristina.

The victims were returning from the funeral of another officer killed last Friday during an
attack on the village of Rogovo in which 23 ethnic Albanians also died.

The Serb Media Centre also reported three ethnic Albanians were wounded yesterday when
armed gunmen broke into their home in a village near Stimlje, 30 kilometres southwest of
Pristina.

Neither Yugoslav President Slobodan Milosevic nor the Kosovo Liberation Army has announced
whether they will accept the demand by the United States and five European powers to attend a
conference this week in France to end the 11-month conflict and establish self-rule in this
Serbian province.

Both Milosevic and KLA political representative Adem Demaci told British Foreign Secretary
Robin Cook they would reply to the demand within a few days.

In the rebels' first public statement since the demand was issued last week, a senior KLA
official, Jakup Krasniqi, was quoted by Albanian state television yesterday as saying
"negotiations organised in a rush do not guarantee success for the solving of the Kosovo
problem."

Krasniqi, who met last week in Kosovo with US envoy Christopher Hill and European Union
representative Wolfgang Petritsch, was quoted by the rebel news agency Kosova Press as saying
the guerrillas "remain open to negotiations with relevant international actors."

Kosovo's leading moderate ethnic Albanian politician, Ibrahim Rugova, accepted the offer at
a meeting with Cook on Saturday in the Macedonian capital, Skopje.

It is widely believed, however, that the participation of the rebels is essential to the
success of any agreement. Under a US formula worked out by the Contact Group - the United
States, Russia, Britain, France, Germany and Italy - the talks would produce an "interim
agreement" granting substantial self-rule to the majority Albanian province.





[T][FREEMAN]

Freeman back on the track

Cathy Freeman will make her long awaited return to the national athletics stage this
weekend when she takes on in-form sprinter Tania Van Heer in a grand prix series meeting in
Canberra.

Freeman, the reigning world 400 metre champion, will compete in the 200 metres in her first
major meeting since a foot injury, sustained last July, caused her to miss the Commonwealth
Games.

In her absence Van Heer became the new golden girl of Australian athletics, taking gold in
both the 4x100m relay and the 4x400m relay while also collecting bronze in an all-star 100m
final in Kuala Lumpur.

The Sri Lankan-born South Australian has been in blistering form on the Australian circuit,
running a lightning 11.13s to win the 100m in Perth before easily winning the 100 and 200m
double in front of her home crowd in Adelaide last week.

Freeman's manager Nick Bideau said today that Freeman had fully recovered from a slight
quad injury that kept her out of the Adelaide meet but admitted she faced a tough task
first-up against Van Heer.

"Van Heer is running as well as she ever has and with Cathy being a bit underdone she
should be able to beat her," Bideau said.

"If she can't beat her in this race she is going to be in big trouble later on when Cathy
gets fitter."

Former Australian hockey gold medallist turned sprinter, Nova Peris-Kneebone may also take
part in the race depending on whether she can overcome a hamstring injury.

Bideau said Freeman had been running the hills at Black Rock to recapture her fitness and
had improved steadily since she resumed training in November.

"But normally she would have seven or eight races under her belt by this stage of the
season but she's only had two so far so this year," he said.





[A][BUSHFIRES VIC]

Bushfire returning into SA

Pastoral land in South Australia's south-east could be threatened later today by a bushfire
which has been burning out of control for nearly a week.

With winds forecast to change from south-easterly to north-easterly, firefighters are
preparing to protect pastoral land on the southern and south-western borders of the Ngarkat
Conservation Park.

The blaze, which was started by lightning last Wednesday and moved across the Victorian
border into the Big Desert National Park on Friday, has destroyed about 100,000 hectares of
mallee scrub, 80 per cent of it in SA.

It is the largest fire since the Ash Wednesday fires which burnt out vast portions of the
two states and killed a total of 75 people in February 1983.

The firefighting effort is being coordinated from a command post at Bordertown in SA, with
about 270 fire and national parks crews and six water bombers involved in the attack today.

But the fire is burning in inaccessible land and the crews have been restricted to building
fire breaks.

SA Country Fire Service spokeswoman Helen Pereira said the fire was now burning on a 50km
front and was already on the border of the Ngarkat park in some small areas.

"Today we are watching the south-west and western flanks because there are north-easterly
winds today," Ms Pereira said.

"We know that pastoral land could be under threat with this north-easterly change."

Ms Pereira said the winds were forecast to blow at up to 30 kilometres per hour by 6pm,
with the temperature in the region forecast to be 36 degrees.





[A][HEAT][QLD]

Woman dies in Outback ordeal

A young woman who died in "stinking" heat in Queensland's remote northwest after trying to
walk 36km for help when her car broke down, was apparently unaware there was a creek full of
water nearby, police said.

Julia Creek acting police Sergeant John Llewellyn said 20-year-old Maria Ann Soper's body
was found on Old Normanton Road, about 20km from Dalgonally Station where she had worked for
three weeks as a gardener.

She had left her car without water or a hat, and wearing old thongs.

"Her car broke down and she's tried to walk 36km to the station," Sgt Llewellyn said.

"She was inexperienced. She didn't know much about the bush. She didn't take any water or
wear a hat. She was wearing old thongs.

"It was stinking hot. The temperature here is probably around 42 degrees on average but out
in the sun it gets hotter, and of course, when you're walking and you're a bit overweight ...
No water. No hat. It just adds up.

"It looks like she's succumbed to the heat."

Sgt Llewellyn said the woman was less than 2km away from Julia Creek which would have been
full of water after rain the day before.

"The whole nearly 16km she walked, she's walked parallel with a main creek here," he said.

"You could see the line of the eucalypt trees where Julia Creek runs down and it's full of
water."





[A][HEROIN AGE][NSW]

Salvos want drug counselling

Needle exchange program workers should be trained to provide counselling to drug addicts,
not just a clean syringe, the Salvation Army said today.

Chairman of the Prime Minister's Australian National Council on Drugs Major Brian Watters
said needle exchanges were an important front-line opportunity for health workers to offer
counselling.

"I believe that an increased awareness by the staff of needle exchange programs that
they've got a responsibility towards the people coming to them, whether younger or older to do
something constructive and long-term about their problem," Maj Watters told a media
conference.

Maj Watters said while needle exchange programs had their "place in the whole scheme of
things," a number of other measures should be employed to combat drug addiction.

"It is meeting people at their point of need and perhaps reducing the harm that they could
do to themselves by sharing syringes," he said.

"However it's not an either/or. We need a whole spectrum of approaches including treatment
and when people are ready for treatment it should be available."

Maj Watters said the current guidelines for staff state that they are not allowed to
initiate counselling for fear that the drug addict may not come back to the needle exchange.

"I think that's a fairly negative approach," he said.

"It's a matter of establishing relationships and trust. The message I get from people
coming to us is that it is very, very rare for anyone to make that sort of approach to them.

"The ideal thing would be do establish that trust and bring in the families if they are
available and if they are appropriate, and some are not, and bringing in some sort of
counselling."

Maj Watters said while drug addicts may not respond to initial contact from health workers,
over a period of time the message of rehabilitation may get through.





[A][CENTRELINK][FED]

Union opposes Centrelink plan

The Community and Public Sector Union today joined the attack on the government's plan to
contract out Centrelink services which also would involve job losses.

ABC radio today reported 500 jobs would be lost through the government's move to contract
out information technology services as part of its plan but said Community Services Minister
Warren Truss had not confirmed this figure.

The government's announcement last week that it would expand Centrelink services into rural
Australia, using credit unions, post offices, business centres and some individuals but the
plan to use agents to deliver services has been attacked by Labor.

Today CPSU spokesman Mark Gepp added his concerns on the IT move.

"What we currently have in Centrelink is a database for 6.2 million Australians with the
most sensitive and intimate details imaginable and we would have grave concerns about what
that information would be used for," Mr Gepp told ABC radio.

Yesterday opposition community services spokesman Wayne Swan demanded the privacy
commissioner urgently investigate the contracting moves because of the sensitive personal
information handled by Centrelink.

But Mr Truss denounced the call, saying it was an insult to the integrity of the agents.

ABC radio reported the government planned to issue a tender for Centrelink IT services in
May, at the same time as it offered tenders for IT services in other departments.

These included family and community services, workplace relations and small business, and
education, training and youth affairs.





[A][GAS TERMS]

Unions fail in gas probe bid

Victoria's unions have failed in their bid to have the state government and its agencies
included in the Longford royal commission's terms of reference.

The move, which also was supported by Esso, the state opposition and the families of two
workers killed in the September 25 disaster, was rejected this morning by Commission chairman
Sir Daryl Dawson.

It had been opposed by the government-owned gas entities and the WorkCover Authority which
said the royal commission was not charged with the duty to investigate the government, its
agencies and departments.

The terms of reference were a matter for Government and the framing of them formed no part
of the Commission's function, Sir Daryl said in a short statement read when the Commission
resumed its hearing this morning.

"Even to recommend to the Government that (the Terms of Reference) should be amended would
be an unusual course for this Commission to take," Sir Daryl said.

"Had the Government intended that this Commission concern itself with the width of its
terms of reference it could have so provided."

Sir Daryl said he was of the opinion the terms do extend to the commission making
recommendations of changes concerning the regulatory environment at Longford that were
"necessary or desirable to prevent a repetition of the explosion or fire or failure of the gas
supply".

"It may be that even in the absence of such a provision it would be appropriate for a Royal
Commission to recommend that the terms of reference be extended but that could only be in
exceptional circumstances, for example a commission found that its terms of reference were too
narrow to carry out the task which it was given," he said.

"That is not this case and we are unable to conclude that there are any exceptional
circumstances here which would justify adopting the course."

The Victorian Trades Hall Council and the ALP had argued deregulation of industrial safety
and the breakup of the government-run gas industry contributed to the disaster and should be
scrutinised.





[F][AUST STOCKS]

Shares surge to record high

The Australian sharemarket surged to close at an all time high today as investors poured
money into telecommunications and bank stocks, buoyed by strong economic fundamentals.

The all ordinaries index closed up 29.9 points to 2923.7 points, smashing its previous high
of 2897.3 set on January 7 this year.

Strength in key international markets on Friday sparked confidence in Australia.

Wall Street closed on Friday 77.5 points higher to 9358.83 as surging growth in the US
economy spurred confidence in the corporate profit outlook.

"A firmer lead in the US set the tone for a very strong day on our market with
telecommunications and bank shares continuing to rally building on last week's strong
performances with many stocks reaching record highs during the day," said Simon Reed, client
adviser from Morgan Stockbroking.

However, he said the market in both the banking and telecommunications sector was getting a
"little stretched in the shorter term and some correction could present itself".

Preliminary turnover was a healthy $1.07 billion with 392.93 million shares changing hands
with 668 rises, 626 falls and 425 stocks steady.

The all industrials index closed up 69.5 points at 5319.8 points however the all resources
index missed the rise falling 6.8 points to 946.3 points.

Telecommunications giant Telstra starred again today adding 51 cents, or 5.90 per cent to
close at a record high of $9.15. It earlier hit a high of $9.20.

Global media group News Corp also added weight to the domestic market on the back of gains
by its American depository receipts in US trade.

News Corp ordinary shares closed up 35 cents, or 3.04 per cent, to $11.87 while its
preferred shares gained 27 cents, or 2.50 per cent, to $11.08.





[A][BIG WA]

Marilyn Manson spits dummy

Shock rocker Marilyn Manson's sudden exit from the stage after being pelted with missiles
at yesterday's Big Day Out concert in Perth would not affect future tours of Australia, his
record company said today.

Universal Records spokeswoman Marlene Misfud said the controversial musician had become
angry after bottles and other projectiles had been thrown at the stage during his set.

"He had just had enough of it and was really pissed off," she said.

"There comes a point where enough is enough and that's what happened, but I'm sure he'll be
back."

A Marilyn Manson guitar technician required hospital treatment for lacerations to the head
after being struck by a missile, an ambulance spokesman said.

Concert-goer Jo Metcalf, 28, said Manson shouted abuse at the crowd before walking off
stage about half way into his hour-long set.

She said plastic water bottles and other debris had been thrown at bands onstage throughout
the afternoon.

"In general the behaviour of the crowd was really good, but there seemed to be a few
individuals in the mosh pit intent on abusing the main acts," she said.

A St John Ambulance spokesman said 400 people had been treated for injuries.

"It was mostly minor stuff related to being out in the sun, but there were a few spinal
injuries from crowd surfing," he said.





[I][MARREE UK]

Marree Man mystery goes on

The creators of the mysterious Marree Man today said it was designed as a tribute to
Aboriginal athleticism in the leadup to the Sydney Olympics and as a lasting benefit for South
Australia.

In the first detailed clue as to why the 4km long Aboriginal hunter was etched into the
desert in the north of the state, its anonymous masterminds also said it was drawn with the
involvement of South Australians, but not with surveyors or army personnel.

The third clue to the Marree Man was left near another large human drawing - the Long Man
of Wilmington in East Sussex, southern England - and dug up today by a hotelier in the area.

Coming in the wake of protests by Aborigines in the area of the Marree Man, the clue
insisted the desert artists had drawn what they like to call 'the Maala Hunt' to honour
Australia's indigenous people, not to offend them.

"The Maala Hunt and the concept of a large scale mystery were created for two reasons
only," the clue said.

"As a potentially permanent benefit to the state of South Australia through increased
tourism and international profile, and also to honour the proud way of life and inherently
athletic pursuits of the indigenous people for the Sydney Olympiad."

The clue fitted with an inscription buried near the nose of the Marree Man which said: "In
honour of the world they once knew. His attainments in these pursuits are extraordinary; a
constant source of wonderment and admiration."

It also followed a backlash from the Arabunna tribe which claims ownership of the land on
which Marree Man is drawn.

Tribal elder Dorothy Bremmart had called the work "totally disgusting" and degrading to the
tribe's religious beliefs, and had called for it to be "blown up".

The Wilmington clue, written on three pieces of paper which were buried in a cannister some
800 metres from the Long Man, was found by David Stott, who dug for it following instructions
faxed to his Crossways Hotel at Wilmington.





[T][OLY BRIBES AUST]

Coles shocked at FBI probe

Australia's International Olympic member Phil Coles today said he felt he had been hit by a
truck when his name was released as being on a list for investigation for bribery allegations
surrounding the Salt Lake City Olympic bid.

Coles, who has been placed on an FBI list for investigation along with compatriot and IOC
executive board member Kevan Gosper, today denied any improprieties occurred during his visit
to Salt Lake City.

The FBI is examining links between 60 past and present IOC members and students at the
University of Utah to discover whether any scholarships were given in return for votes and is
understood to be checking delegates and their families against student lists.

Any scholarship inducements have been denied by both Gosper and Coles, who today said he
was upset he had been caught up in the investigation.

"It is very distressing," he told ABC radio.

"The truth of the matter is there were 60 odd people that visited Salt Lake City and all 60
plus, I think it is nearly up to 100, these names have been presented to three universities in
Salt Lake City to track the trail of scholarships for names of people who might be related to
any one of us.

"And that's a fair line of investigation, I don't have a problem with that.

"But I do have the problem where somebody in the United States has seen fit to publish or
release the names and that is extremely damaging to me and my family, it's disgusting.

"I feel as though I have been hit by a runaway truck," Coles said.





[T][GRIDIRON SUPER]

Super Bowl fans tear gassed

Police used tear gas today to disperse crowds downtown after Denver Broncos fans spilled
into the streets to celebrate a second straight Super Bowl victory.

In Lower Downtown Denver, bars emptied as the game ended and fans started bonfires and set
off firecrackers in Larimer Square. When the crowds would not break up, police threw tear gas
canisters and marched down Larimer Street in riot gear, pounding their shields with their
clubs.

Elsewhere, officers on horseback kept crowds in check.

At several spots downtown, people waved special editions of the Denver Rocky Mountain News
and The Denver Post, climbed poles and waved pennants.

As the game ended, police blocked access into downtown from Interstate 25, which runs
through the city.

Downtown bars were havens of orange and blue today as the Broncos took on the Atlanta
Falcons. After Denver's 34-19 win, many brought their drinks and celebrations outdoors.

Last year, about 30,000 people gathered downtown after the Broncos beat the Green Bay
Packers in the Super Bowl. There were more than 25 arrests and 50 people were overcome by tear
gas after violence broke out in Larimer Square.

Police deployed tear gas after people smashed shop windows, overturned cars and set fires.

This year, police had promised a swift response, including tear gas.

Officials have said they believe a relatively small number of people were responsible for
last year's problems.

Police had a chance to test their postgame security plans after the Broncos won the AFC
championship two weeks ago.

Governor Bill Owens, in Miami for the game, said he will return for a parade and rally on
Monday afternoon.





[X][UK AIR]
Plane brawl tourists dumped

In the US, a dozen people became so unruly on a charter jet from London to Jamaica that the
captain made an unscheduled stop and left them stranded at a Virginia airport.

"About 12 passengers consumed quite a fair amount of alcohol and became somewhat unruly,"
said Norfolk International Airport manager Wayne Shank.

None of the travellers on the Airtours charter jet - six English and Irish couples - face
any charges.

The trouble apparently began with shouting and a drink thrown by one passenger on another
traveller.

"The chief flight attendant attempted to settle them down with no success, so the captain
decided to divert the aircraft to Norfolk," Shank told The Virginian-Pilot.

The passengers who were left behind were questioned by airport police and FBI agents.

"After thorough investigation, it was determined that there had been no direct interference
with the flight crew and the local US attorney declined to prosecute," Shank said. Interfering
with a flight crew is a federal charge, he said.

Patty Schlosser, an FBI spokeswoman in Norfolk, said the passengers made their own
arrangements to leave.

Shank said the group had calmed down by the time the plane landed.

"I think the fact that the pilot put the airplane on the ground and allowed local police
aboard was in and of itself a sobering experience," he said.

KEYWORD: NETNEWS 1700

1999 AAP Information Services Pty Limited (AAP) or its Licensors.