PRESS DIGEST-Australian General News - Apr 21

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) --Administrators have questioned the validity of a charge over Opes Prime's assets taken out by United States investment bank Merrill Lynch. The charge, giving Merrill Lynch first rights as creditor, was registered a day after receivers were appointed to Opes Prime late last month. The Melbourne brokerage, a prominent margin lender, collapsed on March 27 after a A$200 million deficit was discovered in its accounts. Australia and New Zealand Banking Group (ANZ.AX: Quote, Profile, Research) is the other major creditor. Page 1. -- Prime Minister Kevin Rudd has endorsed a proposal by Westpac Banking Corp (WBC.AX: Quote, Profile, Research) chief executive David Morgan to create a "seamless" national economy, including a special commission to oversee federal-state reforms. Mr Rudd received a standing ovation at yesterday's conclusion of the Australia 2020 Summit, which comprised 10 working groups including one chaired by Mr Morgan. The Prime Minister agreed that the cost of doing business between the states was too high at present. Page 1. -- Trade Minister Simon Crean believes it would be in Australia's best interests to relax rules on investment from China. Mr Crean said a more "comprehensive and ambitious" free trade agreement would also remove restrictions for Australian companies in China. Under the proposed changes, Chinese companies would be able to invest almost A$1 billion at a time without seeking approval from the Foreign Investment Review Board, similar to an existing arrangement between Australia and the United States. Page 1. -- Ken Talbot, the founder of Macarthur Coal (MCC.AX: Quote, Profile, Research) , has held talks with Xstrata and others interested in his A$670 million stake in the miner. Mr Talbot is at the centre of a corruption inquiry involving a A$300,000 loan he made to former Queensland health minister Gordon Nuttall. Sources say Mr Talbot was motivated by the Queensland Crime and Misconduct Commission inquiry to sell his investment, a move expected to trigger a A$3 billion-plus takeover of Macarthur Coal. Page 1. THE SYDNEY MORNING HERALD (www.smh.com.au)

-- Prime Minister Kevin Rudd said yesterday a push at the 2020 Summit for Australia to become a republic was a big step forward, but advised against moving too quickly. The issue was given fresh impetus at the ideas summit in Canberra over the weekend, with climate change and economic reform also strongly debated. Citing the 1999 republic referendum, Mr Rudd said: "We don't want to lose the next one, so we'll be building this one up very carefully." Page 1. -- The International Olympic Committee (IOC) advised Beijing Games organisers against running a global torch relay on security concerns, it has emerged. The IOC's concerns were raised after a review of the 2004 torch relay for the Athens Games. The 2008 Olympic torch relay has attracted pro-Tibetan demonstrators in London, Paris, San Francisco and Asian capitals. Australian Foreign Minister Stephen Smith has asked protestors to keep their demonstrations peaceful when the torch arrives in Canberra mid-week. Page 1. -- Australian Competition and Consumer Commission chairman Graeme Samuel has warned consumers not to expect a universal drop in petrol prices under the Government's FuelWatch scheme. 'The really important saving for motorists is the power it gives them to know when prices are going to be lifted and when prices are going to be reduced,' Mr Samuel said. The price-monitoring scheme would force greater discipline on petrol outlets, he said. Page 2. -- The Opposition has rejected claims by Federal Labor that the previous Coalition government failed to plan funding for the Aboriginal intervention in the Northern Territory beyond this year. Opposition finance spokesman Peter Dutton said the cost of the intervention was not in the forward estimates, but it was included in the budget's reserve for contingencies. Mr Dutton said indigenous funding would have been reviewed in the May 2008 budget "had the Coalition been re-elected." Page 2.

THE SYDNEY MORNING HERALD (www.smh.com.au) -- Former navy servicemen have produced a photograph disputing official findings that they were not close enough to a British nuclear bomb test in 1952 to receive health care assistance. A royal commission in 2006 found that crew members of HMAS Murchison could not qualify for assistance because the ship was over 100 kilometres from the blast. However, the previously unpublished photograph taken from the deck of the Murchison clearly shows the bomb's mushroom cloud, which has put the finding in doubt. Page 2. -- World Youth Day, the Catholic gathering to be held in Sydney in July, is set to cost New South Wales taxpayers at least A$86 million. The largest costs will be for extra transport and traffic management, security and health services. The cost does not include a A$42 million compensation payout to the Australian Jockey Club for the use of Randwick Racecourse for the overnight vigil and a Mass to be celebrated by Pope Benedict XVI. Estimates of the economic benefit to the state range from A$150 million to A$230 million. Page 3. -- Opponents of the planned A$150 million Victoria Road upgrade in Sydney have revealed a major bungle in the proposal. The Roads and Traffic Authority's plan shows eight lanes of traffic east of the major Darling Street intersection, but there are currently only six lanes and a turning lane. There is no room to build another lane without narrowing the footpath, which the government has promised it would not do. It is the latest in a string of blunders, including the release of a report which found the upgrade would save motorists less than a minute's travel time. Page 3. -- Central Coast maternity services are in crisis after a series of suspensions, injury and retirements reduced the number of qualified obstetricians to zero at both Gosford Hospital and Wyong Hospital. Gosford has since hired 74-year-old semi-retired locum, Bali Kahyap, to fill the gap left after two doctors retired, a third was injured and a fourth suspended. The Royal Australian College of Obstetricians and Gynaecologists has given Gosford Hospital four weeks to fix the problem or lose accreditation. Page 4. THE AGE (www.theage.com.au) --The Victorian Government is considering aligning Catholic schools with the state education system, a move that could radically alter the delivery of education to hundreds of thousands of children. Education Minister Bronwyn Pike said the state was looking at forging stronger partnerships to help solve the problems of many Catholic schools struggling with a lack of funding and resources. The plan mirrors systems in place in New Zealand, Britain and Canada. Page 1. -- A group of serving and former soldiers has accused the Australian Defence Force (ADF) of turning a blind eye to soldiers with mental health problems. The soldiers, who have served in the Middle East, Africa and East Timor, said they had been denied adequate treatment and were ostracised for seeking help for their mental health issues. The family of another soldier who sought help at Townsville's Lavarack barracks claimed their complaints about the "appalling' treatment he received were ignored by the ADF. Page 1. -- Federal Opposition Leader Brendan Nelson has claimed he is very focused on holding the government to account, despite continuing speculation about his leadership. A recent opinion poll found Dr Nelson's approval rating had dropped to single figures. Detractors in the Liberal Party have reportedly given him until mid-year to improve his public standing or face a leadership challenge. Deputy Opposition Leader Julie Bishop yesterday threw her support behind Dr Nelson, saying he was doing a good job. Page 2.