Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Disclaimer: The Parliamentary Library does not warrant the accuracy of closed captions. These are derived automatically from the broadcaster's signal.
Lateline Business -

View in ParlView

(generated from captions) lot longer than I have, to

get this done where the

politician s turned their

backs on it. What is the

issue, what is at stage, is

it just money that stops this

from hang, is it some

intransigence for some other

reason? Yes, thin case it

was intransigence for some

other reason there is no

doubt about that because the

fact is Gunns does not have

any future unless it can move

into this kind of area. It is

now in a position where a lot

of people do not want to

funds this company. They can

do what they like but there

are some responsible banks

that do not want to get

involved with a company like

this so they are going to

need to change and I think

now the shareholders and

hopefully the board can see

in whereas the previous

people particularly John Gay

just could not bring himself

to say "I was wrong, I have

to change". I have seen

people like that before and

the answer is well move on.

We are going to have to move

on as well. That is a perfect

book end for the interview in

2007. Very interesting to

hear, fascinating in fact to

hear the inside detail of all

this happened in recent

months. We thank you very

much for taking the time to

join us tonight. Pleasure.

More than 1500 Coalition and

Afghan soldiers have turned

out to farewell the two

Australian diggers killed on

Tuesday in Afghanistan A moving ceremony was held at

the Australian base at Tarin

Kwot before the bodies of the

two men began their long

journey home. The close-knit

unit of the 2 and combat

engineer regiment have lost

two of their own A roadside

bomb claimed the lives of

Sapper Darren Smith and

Sapper Jacob Moerland on

Monday. At their farewell

from Tarin Kwot their mates

were given a poignant

reminder from home A final letter from Sapper Darren

Smith's young son. It is a

picture which has "Lest we

forget. To my Daddy, Mason".

"Rest in peace". The two men

had been on a mission the had been on a mission the

find and destroy IEDses when

one went off. Sapper Darren

Smith's detection dog Herbie

was also killed. They were

exceptional soldiers and men, dedicated, courageous and

committed to their jobs, also

at the front leading the way. Those still fighting

the fight are pressing on..

we have always been close,

pretty tight. This has just

brought us together even

harder. We are preparing to

go back out and keep doing

the job we need to do to

honour the memory of both

Snowy and Smithy and Herbie.

This has been a tough few

days for the battle group but

they are rallying around each

other, we are looking after

each other and we have our

mind on the job. Another

honour guard received the two

Australian support base in fallen soldiers at the

the united Arab Emirates. There too the Defence

Minister and the chief of the

Defence Force paid their

Sappers Smith and Moerland respects. The bodies of

are due to arrive home in

Austin next few days. Cool

with showers in Adelaide,

Melbourne, Hobart. Morning

frost for Canberra. Dry and

sunny in the other capital

'Lateline Business' coming up cities. That is all from us.

but if you would like to look

back at the interview of

Geoffrey Cousins or view our

stories or transcripts visit

our web site and follow us on

Twitter or Facebook. Tonight

the big retailers give their

theory on why shoppers are

staying away. a little lot of

people start to really think

about what is important in

life. And equateing happiness

with things may be is not the

be all and end all. Shifting

up a gear. More part-time

workers going back to

full-time jobs . That is

starting to reverse and we

are starting to get more

hours worth. A slow death for

snail mail. Could traditional

post disappear. The

ubiquitous email is taking

responding over and we are just

responding to that. First to

the markets. Wall Street's

negative lead was

overshadowed by good jobs

numbers here. The All

Ordinaries closed 1% higher

with the resources sector

leading the way. The ASX200

was up too. In Japan the

Nikkei bounced back from a

6-month low. Hong Kong made

modest gains and in London

the FTSE is down slightly.

Australia's biggest retailers

believe the prospect of a

change of Government is one

reason sales are down. They

say as Labor's popularity

slides the uncertainty is

adding to other concerns like

the financial problems in

Europe. The cream of the

Australian retail world were

on the same stage in Sydney

to offer their views on the issues facing their industry.

It was just at day after the

latest consumer sentiment

figures showed the battle

over the resources super

profits tax starting to

register with shoppers but

Woolworths is adamant it is

not the reason growth in

retail sales remains subdued.

Also it is more to do with

uncertainty about the future.

Consumers are nervous. It is

not to do with the mining

profits tax at all. But the

damage the mining profits tax

has in flicked on the

government is concern the he

tailers coming on top of

other decisions which have

polls saying this year's

election could go either way.

Uncertainty is not good for

retail because consumers want

to be confident about the

future and seeing governments

make the decisions around

insulation and the schools

has not been grade. Gerry

Harvey shares that view but

chose more forthright

language. I'm not gains at

mining tax because it probably makes sense but the

way they present it, their

timing and you just think

these Blacks are bloody

amateurs. Also weighing on

the retail sector is a

changing attitude towards

debt in the aftermath of the

global financial crisis with

consumers becoming more

frugal, a points noted

yesterday by the Reserve Bank

Governor F Woolworths say it

is a big challenge for

retailers Many Australians have recalibrated their

values and I think it needs a

big shock similar the one we

had in the last 12 month and

you go back to the Great War

thanks we had where a lot of

people start to really think

about what is important in

life and equateing happiness

with things maybe is not the

be all and end all. Woolworths is

Australia's largest employer

and unlike many other

companies has given strong

sport the $26 wage rise

awarded to Australia's lowest

paid workers. It is argued

there are two sides to that

coin.. my personal view is

that there was a reasonable

wage given in the basic wage

announcement and I think from

us it is a positive sign we

are going to have a lot of

men and women out there that will actually be able to

spend a bit more with us. For

the Coles boss Ian McLeod the

$26 a week pay rise rings

alarm bells. If costs rise

faster than sales then that

will put a squeeze on and the

knock-on effect on jobs has

potential. I think we have to

be mindful of that and

hopefully the unions will

recognise that and act with a

degree of responsibility when

it comes the negotiations.

While no-one doubts the

challenge facing the retail

sector Harvey Norman's Gerry

Harvey I'm plofred his

audience to look on the

bright side. This is a

boom. We have more money than

ever and we are talking about

how crooking thes are. Hot a

joke. Gerry Harvey's

assessment has been supported

by Access Economics which in

a detailed study of the

retail sector notes

Australia's high employment

should support strong growth

in sales in the next few

years. Jobs growth was stronger than expected over

the past month with the

creation of more than 36,030

full-time positions. The

unemployment rate fell to its

equal lowest level in 16

months but there are still

signs of economic volatility

with a key survey showing a

record fall in confidence among

among small business owners.

Despite the hint of a

compromise on the mining

profits tax, mining

executives are standing by

their pessimistic warning boss job prospects for the

industry. There was no bluff,

no fear calm pafnlt I have a

very real concern for the

future of our company and the

30,000 workers which

understand this tax we cannot

now employ. But figures show

unemployment is down and has

reached its equal lowest

level in 16 month. The

jobless rate fell in May to

5.2%. Over the same period

more than 36,00 full-time

positions were created offset

by the loss of nearly 9000

part-time jobs. That change

suggests more part-timers are

going back to full-time work.

The hours saved by employers

through the downturn last

year, one of the reasons our

unemployment rate did not go

up as many overseas maybe

that is starting to reverse

and we are starting to get

more hours worked. Stephen

Roberts says the figures

suggest the softness has

dissipated and employment is

back than a strong growth

trend but a private survey of

small business has revealed a

weak employment outlook on

the back of a record fall in business confidence over the

past 3 months. What we saw

was the latest fall in SME

confidence in a single

quarter that we have measured

in the his triof the report

which has been going since

1993 so this surpasses the

falls during the global

financial crisis. The fall in

the confidence was atrick

bulted to a drop in sales and

profitability and global

economic jitters and a

reference did the mining

profits tax Rights in Western Australia we are

seeing a large level of

confidence impacted by that

and even though these are not

basic businesses they will

say in the regions it will

impact them in the local

community. Stephen Roberts

says while the Australian

economy is in recovery road

there will be mixed messages

and describes the data as

erratic. The good news that

is the Reserve Bank will look

at the to-ing and fro-ing

through the data and we will

see little reason why it should move off the fence

with interest rates for a few

months. But u is only a

matter of time with most economists predicting another

2 rate hikes before the end

of the calendar year.

Charlie thank you for your

time. Nice to be on on a

positive day for once. It

looks like good unemployment

numbers set the the tone. How

do those numbers play out?

We have had no good news.

Finally today the employment

numbers focused on investors,

we saw 27,00 new full-time

jobs, a 5.2 unemployment rate

that is good news. You may

see this rally continue. You

saw the market up 50 cents t

Aussie dollar is up and it

might be a catalyst for him

to do better. Can you

identify the sectors?

Yes, at the moment the data

came out, anything to do with

a household did better, when

you think about it 5.2%

unemployment means anyone who

wants a job has a job in

Australia, amazing, versus

the rest of the work where

you have 10%. Anything


consumer-related and property-relatehood a good

day. We heard about the

leaking of positive Chinese

data. What was going on

there? The markets has a

theory the Chinese will

release better-than-expected

commodity consumption data.

Resources went well this

afternoon but if the market

want to believe the rumour

everything from BHP Billiton,

Fortescue Metals, Rio Tinto,

Oil Search up 1.2% today and

there is a theory on the resource stocks the Federal

Government might be close to

doing a backflip on the

mining profits tax but let's

see about that. You mentioned

the property trust doing well

today. Was that purely because of the good jobs

numbers? I think there is

also a theory that Australian

property looks relatively

safe and I agree. Residential

property price are holding

and commercial property price

are improving and we are

starting to see foreign

investor flow into the

property Tuesdayt on the

basis that Australia looks

like a safe haven. That is

the second day in a row we

have seen good strong price

gains from the property trust

sector and I think it might

continue. Safe haven we have

not heard that for awhile. We

have heard about sovereign

risk because of the resources

debate. Kingsgate

Consolidated had a good day.

They operate a gold mine in

Thailand, there has been

genuine political unrest in

Thailand. The market was

concerned they would not be

grant add mining lease

extension. That extension was

granted today and Kingsgate

shares went up 10% a classic

by the fact event in a

genuine sovereign risk event.

The resources super tax issue

is not going away but at

least dat we had good

positive news about

employment. Qantas fell 2% on

fears the airline will lose

passengers to its budget spin-off Jetstar when it

starts flights to Singapore.

Lleyton slipped despite

announcing a new three-year contract in Western

Australia. Challenger

financial services was down.

The oil majors were up with

Oil Search putting on 3.5%.

The the positive jobs figures

boosted the dollar, it is up

against all the major

currencies buying 84US cents.

New Zealand's first interest

rate rise in three years did

little to lift the Kiwi

dollar. Gold is lower and in

New York oil is steady

trading at 74 US a barrel. An

Australian hedge fund is

suing Goldman Sachs over

investments the banking giant

recommend ld but which later

caused the fund to collapse.

Basis put $78 million into

Goldman Sachs. They turned

out to be full of sub-prime

mortgages. Basis has filed

claims in New York for the

$56 million US it lost plus a

billion in damages. They

launched the case after US

Senate hearings revealed

while the Goldman Sachs desk

was pushing them they thought

they would go bad Take the worst securities off their

books and put the risk of on

somebody else. It was done at

a time when Goldman Sachs's

internal emails showed they

had zero confidence in the

market and they knew would it fail t only question was

when. In and the US

regulators charged Goldman

Sachs with civil fraud over

the sale of another set of

debt securities that cost investors more than $1

billion. The World Bank has

released its latest global

economic prospects and it

does not rule out a return to

recession. The double-dip

recession is the most damaging outcome should

Europe fail to address its

mounting debt problems. In

the meantime the bank says

developing countries could

grow by between 5.7% and 6.2%

during the next 2 years, that

is nearly double the forecast

for global growth which comes

in at 3.3%. Joining me from

Washington to discuss the

report is co-author Mick

Reardon. That global growth

forecast, it is seriously

threatened isn't it? Does it

factor in the intensifying or

an intensifying threat from

the European debt crisis? To

an extent yes it does. But it

assumes the base case

forecast that the bold step

thanks the European Union, the International Monetary

Fund tECB and others have

taken recently and

particularly in the last few

days the solidfy case of the

stability agreement with the

back-up funds from member

countries that these actions

would be sufficient to

forestall any further major

de tear raise in the system

that bank lending might

continue and that we might be

in the best of all possible

worlds. There is a downside.

There are down sides

however. So where does the

double-dip recession come in

and how broad would that

be? The double-dip recession

may affect a certain

countries in Western Europe,

individual countries. There

is a distinct possibility

that even given developments

to date that some countries

in the central Europe in

developing Europe may be

affected by various goes on

in Western Europe and find

themselves back in recession.

It is not a generalised

double-dip recession at the

global level, it does not

include developing markets

but we will be more

country-specific in these

circumstances. To what extent

do you think the European

debt crisis represents a

threat the global economy?

It is a threat. There is no

doubt about it. It is a

serious situation. One can

look at what if scenarios and

possible why it worse

outcomes than we have seen to

did it and clearly this would

have negative effects on the

global economy through a few

channel. The softest is the

trade channel. Countries will import less which affects

developing countries in

emerging markets and secondly

more importantly is the

financial channel t financial

contagen to Government banks

in Europe to developments to

countries in which those banks have large operations

so there is that potential

yes. You also take about in

your report the developing

countries are going to lead

the recovery from recession.

How that is going to happen

given that their customers

perhaps or their donors are

struggling the pay down huge

debt bills? It is a good

question. We have had a

recovery underway for several

quarters now particularly in

East Asia with the Chinese

stimulus package and the

spill-overs of that to

countries like Australia,

Japan, Korea, others in the

region. We are looking at

goat in developing of East

Asia of about 8.5% this year

which is very strong and you

also find other emerging

market regions like Latin

America, particularly Brazil,

India growing at rapid rates.

Finally you have surprisingly

Japan finding its recovery

morsel of sustaining and that

in the US so Europe had been

a points of weakness in the

entire picture and the

fragile both there has become

more fragile if you will but

we think under these

circumstances recovery can continue. You mentioned

earlier your forecasts factor

in not a major failure by the

European nations, factor in a

successful addressing of the

debt problems by Europe but

how confident are you that

your hope can successfully

address its problems? Are you

impressed by what you have

seen so far? The steps taken

have been impressive I think

and much of what you see now

in terms of fiscal austerity

being imposed across

countries such as Germany,

UK, France, Germany, Italy,

Spain, should solidify market

projections the countries are

serious. Markets will react

in a volatile fashion as

things change every day. The situation is fluid it is

changing every day which

makes it difficult to put a

handle on the number but

there clearly is a risk that

developments in Europe turn

for the worse although we

think that is an outside

risk, a tail risk as

economists like to call it,

that potential exists. What

about the disagreements

within the European community

between Germany and some of

the other nations?

Yes. These would as they came

to the, put the package

together with the

International Monetary Fund

and the stabilisation pact

some of these differences

will have to be narrowed,

indifferences across the

Atlantic with respect to

wornts one package fits all

in terms of imposition of

fiscal austerity also has to

be resolved so there is much

work ahead to do but we are hopeful market conditions

will continue to improve as

the effects of the initial

package comes online. To

what extent do you think what

is happening in Europe could

be a dress rehearsal

be a dress rehearsal for the

US? That is a good question.

A committee was set up by

Congress to see more stimulus

turned into a committee to

see how we could cut the

budget deficit back but I

think there are two elements

going on. One this is the US

administration is keen to

have some goat-friendly

aspect of fiscal expenditure

going including safety nets

vulnerable and at the same to protect the most

time the International

Monetary Fund has said

earlier that not one size

fits all for these austerity

packages that, if you are in

better shape then please keep

some growth-friendly elements

in these packages. Mick

Reardon thank you. Thank you

for having me. Extreme

weather event and equipment

failure at Olympic Dam have

put a dent in Australia's

energy an mineral production.

The bureau of agriculture and resource economics figures

show earnings from the export

of uranium and coal fell but

higher prices offset the

losses. Shrapnell expects a

3% loss. The proposed mining

super profits tax will not

have an impact on demand and

the sector will pick up

quickly in 2011-12. The era

when email takes over from

old-fashioned mail delivers

is approaching faster than

expected in New Zealand at

least. Their postal profits

have slumped and big cuts in

deliveries are being for

shadowed. We report from

being warned to prepare to Auckland. New Zealanders are

see a lot less of their

postie. Currently there are

deliveries 6 days a week, unlike Australia New Zealand

gets their mail on a Saturday

but that is about to change.. ubiquitous email is taking

over in many ways and we are

just responding to that. In

the 6 months to December last

year there were 30 million

fewer items of mail sent and

profits of more than halved.

Form yeah Conservative Prime

Minister Jim Bolger a

renowned fiscal hardliner has

been tasked with keeping New

Zealand post out of the red

No matter where you are in

the world this is the

issue. New Zealand post

proposes to cut mail

deliveries to every 2 day or

make people pick up their

mail themselves. The

country's grey power move.

Says many older New

Zealanders still prefer

old-fashioned mail. Direct

mail companies, auction

houses and postal workers are

also set the fight the move.

Up until now they have been

adamant there will be a 6-day

delivery so we are surprised

to hear this being spoken

about in this manner by the

Chairman. 'Daily Mail' is a

thing we have had for over

100 years and should not be

tampered with. New Zealand's Communications Minister

acknowledges any changes will be controversial If the

public is supportive and it

makes good sense overall in

terms of not just New Zealand

post but in the country sense

you would look at it but as I

say there is a fair bit of

work to go on. A decision is

expected by the end of the year but already one

newspaper editorial is

warning New Zealand post not

to alienate its customers.

Our business diary -

Telstra's Chief Financial

Officer addresses the

Trans-Tasman business circle

A private survey of consumer sentiment for June including

a state-by-state breakdown.

US retail figures for May and

Chinese economic data

including inflation and

industrial production. A look

at news in the business

sections of our newspapers

tomorrow - the 'Herald Sun'

describes the job figures as

stellar boosting the dollar

and lifting the market. The

Australian says Santos is in

talk with China about selling

a steak in its Queensland LNG

project. The 'Australian

Financial Review' says banks

tooked 7.6 billion in fees

from business customers last

year up 13% in a year and the

'Sydney Morning Herald' says

Westfield plans to create an

online shopping centre. That

is although for tonight as I

leave you the FTSE situation

up 30 points and the Dow

Jones industrial average is

up 94 points. That is all for

tonight. Thank you for


Closed captions by CSI

THEME MUSIC I live outside Houston, Texas, about 30 miles north of Houston, in Harris County, that was settled by my Mom's family in the middle 1800s and where I live now is on a piece of ground that's been in my family since that time. Mom is my next door neighbour and my uncle is my other next door neighbour

and I've always lived around my family and extended family. It's always been important to me. Before we were on Heavenly we were on Rob's Records and coming from that indie spirit where we were encouraged to do our thing and no one was breathing down our neck. We've been fortunate like that, never forced to work with certain people We've been allowed that space to be who we are. And no one gets the chance to be shit anymore before you get good. Where we did. We used to go to a lot of improvisation music things in London. Instant music meeting in a pub in Deptford and all these incredible bands - Morgan from Does It Offend You. It really felt, like a beautiful - four or five years ago it felt like there was an organic music scene in London. We took full advantage of that because we wanted to learn our craft and play.

I grew up in the Lutheran Church and singing was a big part of that. I went to a parochial school where we sang devotion everyday and music was a normal part of everyday life to me and I always enjoyed getting to sing. I'd listen to my parents' record collection after school and I'd listen to Nat King Cole and Ray Charles and their Merle Haggard records and I always enjoyed as a child thinking about, There are so many songs, how do people write songs? I was always interested in the idea of figuring out what made a song a song. Check 1, 2. Nice lookin' at you. I think a sense of place in songs just represents life. My hope is that if I write about a place it translates to someone else's experience in a different place and if I'm writing about Indiana then someone who's never been to Indiana but been somewhere else might be able to identify with that idea.

? Up in Indiana where the tall corn grows ? I do a little thinking 'bout a girl named Rose ? Hair blonde as hay and long as a rope

? Up in Indiana where the tall corn grows ? I do a little thinking 'bout a girl named Rose ? Hell don't care but heaven knows ? I'm up in Indiana where the tall corn grows ? Mama say a prayer for your only son ? God, forgive him, all the wrong he's done

? All he ever wanted is to have some fun ? But now he's up in Indiana till his time is done ? Up in Indiana where the tall corn grows ? I do a little thinking 'bout a girl named Rose ? Hair blonde as hay and long as a rope ? Up in Indiana where the tall corn grows ? Do a little thing 'bout a girl named Rose ? Hell don't care but heaven knows ? I'm up in Indiana where the tall corn grows ? She looked over 22 ? A man could drown in eyes so blue ? And now I've got some time to kill ? In a little town called Henryville

? Up in Indiana where the tall corn grows ? I do a little thinking 'bout a girl named Rose ? Hair blonde as hay and long as a rope ? Up in Indiana where the tall corn grows ? I do a little thinking 'bout a girl named Rose ? Hell don't care but heaven knows ? I'm up in Indiana where the tall corn grows

? Working on the line ain't the life I know ? Wish I was floatin' on the river out in Idaho ? Laying on the bank with a fishing bow ? Instead of cutting this corn and losing my soul ? Up in Indiana where the tall corn grows ? I do a little thinking 'bout a girl named Rose ? Hair blonde as hay and long as a rope ? Up in Indian where the tall corn grows ? I do a little thing 'bout a girl named Rose ? Hell don't care but heaven knows ? I'm up in Indiana where the tall corn grows

? Miles and miles as they march back ? They lift their ears up to the sky ? Standing tall and satisfied ? Like to try to run but I just might die ? I'm up in Indiana where the tall corn grows ? I do a little thing 'bout a girl named Rose ? Hell don't care but heaven knows ? I'm up in Indiana ? Up in Indiana where the tall corn grows ? Up in Indiana where the tall corn ? Grows ? We try and wipe the slate clean and start again with songwriting. Try something new, keep it exciting, for us. It's easy to get into pattern with things that work.