PRESS DIGEST-Australian General News - June 15

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)

Workplace Relations Minister Julia Gillard is planning to water down industrial relations policing of the building sector. The changes propose to reverse the former government's procurement rules, thus, removing restrictions "on union promotional activities and endorse more generous union right-of-entry rules to building sites.' The proposed changes have angered business groups, which warning that construction costs will rise and billion of dollars of government-funded stimulus infrastructure projects could be lost. Page 1.

- - - -

The Business council of Australia (BCA) has proposed a plan to embrace radical tax reforms in order to discourage the use of debt and boost national savings. The BCA has urged the Henry tax review to cut company tax rate to 15 percent, in a bid to, accelerate economic growth and help the Australian budget achieve balance and pay off debt. "The abolition of inefficient state taxes such as stamp duties and the harmonisation of other imposts such as payroll tax,' the BCA says. Page 1.

- - - -

Major blue-chip companies in Australia are changing their funding strategies as local banks and traditional US and Europe lenders become more stringent. Australian companies like Telstra (TLS.AX)(TLS.NZ), Woolworths (WOW.AX), Woodside Petroleum (WPL.AX) and Foster's Group (FGL.AX) have sought more than A$2.5 billion in loans from Asian lending institutions. Credit Suisse analyst Michael Tierney stated US and European lenders had become less competitive than Asian lenders after global economic crisis and local companies seeking expand their funding base in Asia. Page 1.

- - - -

The Federal Government has helped launch Australia's bid to host the FIFAWorld Cup for 2018 or 2022. The Government believes holding an event like the World Cup would pump another A$5 billion in to the economy. Prime Minister Rudd, Football Federation Australia chairman Frank Lowy and Opposition Leader Malcolm Turnbull where present at the launch. "The great doubters, the great naysayers will say why, even if you have no passion for this game or sport at all, look simply at the economics of it,' Mr Rudd said. Page 2.