PRESS DIGEST-Australian General News - Nov 5

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)

At its annual meeting in Sydney yesterday, Telstra's (TLS.AX: Quote, Profile, Research) board pledged to scrap unpopular billing fees and apologised for the company's poor customer service. The telecommunications company's chairperson, Catherine Livingstone, insisted that the current Telstra board were just as tough as their predecessors in negotiations with the Rudd government on a deal to assist construction of the A$43 billion national broadband network. The board was taking a professional but firm approach to the negotiations, she said. Page 1.

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Queensland Premier Anna Bligh has resisted moves by the Rudd government to maintain a long-term role in the A$1.7 billion Gold Coast rapid transit system. The Federal Government, which has contributed A$365 million to the scheme, wants to be involved for the life of the project and possibly earn an income stream from its investment. However, the Bligh government argues that the commonwealth funding should simply be considered a one-off grant. Page 1.

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Supermarket companies Woolworths (WOW.AX: Quote, Profile, Research) and Coles (WES.AX: Quote, Profile, Research) have set up in-house property teams to buy and develop retail sites, a result of developers having exited the market during the downturn. Funding constraints mean retail developers have been unable to obtain finance to initiate new projects, leaving the companies to run their own developments. Woolworths has been involved in developing half of the eight new supermarkets it will open by the end of the year. Page 1.

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Former federal treasurer Peter Costello has been recruited as managing director of new investment bank BKK Partners. Speaking at its launch yesterday, Mr Costello said he would be providing high-level strategic advice to companies but ruled out lobbying. Mr Costello retired from politics three weeks ago and has since been appointed to the board of the Federal Government's A$64 billion Future Fund. BKK founder Alastair Walton denied that Mr Costello faced any potential conflicts between his two positions. Page 3.