Everyone in Canberra knew” headlines The Oz,
before going on to provide a pretty convincing explanation of just how many
government officials knew about the corruption in the “oil-for-food” program five
years ago, when a diplomatic cable was circulated through the higher echelons
of government.

The Iemma government faces an interesting
, reports The SMH – to dump a scheme that sees hundreds of public servants being paid
full salary for doing nothing. And another elderly couple has been found dead in their Sydney apartment.

Sydney commuters are left stranded by the roadside for hours because
the State Government has bungled private bus reforms, reports The Daily Tele.

Unsurprisingly, the PM denies that evidence given to the Cole inquiry yesterday means
that government officials knew of kickbacks paid by AWB to Saddam
Hussein’s former regime, reports The Age. And a joke made by Premier Bracks while touring a prison goes “a bit pear-shaped.”

An emergency summit into aged care was called
last night after a man was charged with the assault of four residents at a Mt Eliza nursing home, reportsThe Herald Sun.

Those trigger-happy Queenslanders – despite bans on certain guns, and a successful
amnesty and buy-back scheme, there are more firearms in Queensland now than ever before, reportsThe Courier-Mail.

And The Canberra Times reports that plans by the National Gallery to loan out its
collection of European Masters has prompted fears that Canberra will lose one of its biggest drawcards.

A global carbon trading treaty could be in place by 2012 –
but only if the White House and the
Australian Federal Government shift their position, reports The Advertiser.

Up to 1,000 people may have been hit with food
poisoning before alfalfa sprouts found to be contaminated with salmonella
bacteria were recalled, reportsThe West Australian.

A coroner is investigating the death of a Tasmanian twin baby after
understaffing and over-crowding at the Royal Hobart Hospital forced the
babies’ transfer to SA, reportsThe Mercury.

And the NT News leads with the story of the “Phantom Flasher”
– a supposedly (and surprisingly) well-endowed fatigues-wearing serial
offender who’s making a habit of calling sales assistants into his
dressing room and asking them if his underwear fits.