PRESS DIGEST-Australian General News - May 12

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

THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

The protection of jobs will be a core component of tonight's federal budget, according to Prime Minister Kevin Rudd. The latest economic forecasts are believed to project 8.5 percent unemployment by June 2010, an increase of about 200,000 jobs from the February estimate of a 7 percent jobless rate. "Tomorrow's budget will support the jobs of today by investing in the infrastructure we need for tomorrow," Mr Rudd told a jobs forum yesterday. Page 1.

--

The dual stimulus of low interest rates and government handouts appears to have bolstered business conditions and turned the Australian economy around, according to a survey by the National Australia Bank (NAB). The latest survey's employment index surged by 11 percent and its business confidence rating rebounded seven points compared with the prior month. "I think it is a temporary plateau because we think that growth is still going backwards, [but] at least there are now signs that the falls in demand may be easing," NAB chief economist Alan Oster said yesterday. Page 3.

--

The West Australian regional royalties fund will be cut by 4 percent in the state budget on Thursday, Treasurer Troy Buswell confirmed yesterday. The reduction will translate into a drop of about A$110 million from Premier Colin Barnett's original commitment to the fund made after his election last year. The fund underpins the power-sharing alliance between the Liberal and National parties, but Mr Buswell said the Nationals had agreed to make the cutback to keep it in line with other government savings measures. Page 4.

--

The Victorian Government intends to provide greater apprenticeship training opportunities by leveraging off its four-year A$20 billion infrastructure projects spending program, according to Premier John Brumby. "We will be talking to the big construction companies and builders to maximise the uptake of apprentices and training," Mr Brumby told a parliamentary Public Accounts and Estimates Committee hearing in Melbourne yesterday. Page 4.