PRESS DIGEST-Australian General News - Nov 14

Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.

THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

Prime Minister, John Howard, has defended the Coalition's election promises, saying the Government can keep a budget surplus well above 1 percent of gross domestic product even after honouring its spending commitments. "People have overlooked that the projected surplus in future fiscal years is likely to be higher than what is projected,' Mr Howard said. An analysis of Coalition promises shows the Government has already accounted for almost A$12 billion of budget surpluses projected to average A$15 billion over the next four years. Page 1.

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BHP Billiton (BHP.AX)(BLT.L) chief executive, Marius Kloppers, will travel to Shanghai next week in a bid to convince Chinese steel mills that the miner's proposed merger with Rio Tinto will be beneficial for them. While in London on Monday, Mr Kloppers said that iron-ore supply would be increased if the deal was successful, but a Chinese mill insider raised concerns that it would give BHP greater control over supply. Analysts estimate the merged entity would account for almost 40 percent of China's total iron-ore imports. Page 1.

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Telstra (TLS.AX) has launched legal action in the High Court to challenge the Australian Competition and Consumer Commission's (ACCC) power to regulate the amount it can charge rivals to use its broadband network. It argues the ACCC's setting of prices from A$3.20 a month – so competitors can re-sell phone or broadband services to their own customers – is too low for it to make a commercial return. Access to Telstra's network allows competitors to provide more than half a million services per year. Page 3.

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Employee shareholders from five aviation unions and retail investors may question the board of Qantas Airways (QAN.AX) about plans to spin-off parts of the group, such as freight joint ventures and frequent-flyer programs. At today's annual meeting, the Transport Workers Union will demand that no jobs be lost under any future company break-up, while the Australian Services Union will raise concerns that further staff cuts will compromise service standards. The Qantas board is also expected to be questioned about a failed A$11 billion private-equity takeover bid. Page 3.