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ABC News Breakfast -

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Live.

Services held to remember two

Australian soldiers killed in Afghanistan. Kevin Rudd heads to Western Australia for more

talks with mining bosses. Tiger

Woods returns to Melbourne but

are taxpayers prepared to foot

the bill? And Socceroo Tim

Cahill is in doubt for first

World Cup match against

Germany. Good morning. It's

Wednesday 9 June. I'm Michael Trioli. The top stories on ABC Rowland. And I'm Virginia

News Breakfast - a service will

be held at an air base in the

United Arab Emirates today for

two Australian soldiers killed

based combat engineers in Afghanistan. The Brisbane

26-year-old Sapper Darren Smith

and 21-year-old Jacob Moerland

were killed by a roadside Faulkner and Defence Force bomb. The Defence Minister John

Chief Angus Houston will attend

the service. The bodies are expected to be returned to Australia by the weekend. Australian journalist

Chris Masters was embedded with

the fallen soldiers' unit and

he knew the two men N spite of

tough conditions the men's

mates were back on patrol the

day after the deaths. I watched

one of the patrols go out this

morning. This was done

deliberately, the major said

the night before as he'd

assembled everybody that they

were only halfway through their

deployment and there was a lot

of work to do and they had to

get out there again. The CSM

took them out this morning and

we watched them going out the

gate and fortunately we watched

them all come in some time

disglaert have you been on the

Darren Smith and Jacob Moerland type of patrol that Sapper

were on when this incident

occurred? Well, yes. I mean,

obviously not exposed to nearly

the same danger, although we

have seen IEDs explode. It's

quite a battle front. I thought

I knew quite a lot about it

until I came here, but the

tempo of this particular

conflict seems to have picked

up, as these soldiers seem to

make ground with the hearts and

mind campaign it's a hell of a

struggle out there, sort of a

war of inches out there in the

fields where the locals pretty

much sit on the fence, are

persecuted by the Taliban. And

they're very frightened to show

support for the soldiers, but I

got a strong sense, it's

difficult I know but I did get

a strong sense that they would

like to support the soldiers.

It's equally frustrating for

the soldiers to recognise that

they're there to help people

who on certain occasions 11

turn against them in a vicious

way. ABC journalist Chris Masters speaking from

Afghanistan. To other news now

and the PM will hold crucial

talks in the mining tax today

when he heads to Western

Australia. Mr Rudd met BHP

Billiton chief executive Marius

Kloppers in Sydney yesterday and

and today in Perth will hold meeting with Fortescue Metals

boss Andrew Forrest. He's one

of the strongest krities of the

tax. The Health Minister Nicola

Roxon is also in Perth to try

to convince WA to sign up to

Golfer Tiger Woods the national health plan.

Golfer Tiger Woods will return

to Melbourne in November to

defend his Australian Masters

title. On his website woods say

he's looking forward to

playing. The 'Herald Sun' says Victorian taxpayers will again

chip in half of the $# million

bill. Woods has played just

four tournaments since take

five months after the game

after revelation of his martial

conservation society has cut infidelity. The Sea Shepherd

ties with anti-whaling activist

Peter Bethune. The New

Zealander was captain of the

'Ady Gil' when it sank in the

collision with a Japanese Southern Ocean after a

whaling boat. In a statement

the society said Peter Bethune's decision to bring a

bow and arrows on board was

unacceptable. Mr Bethune is on

trial in Japan charged with

illegally boarding a Japanese

boat. North Korean border

guards have shot dead three

Chinese citizens. China's

Foreign Ministry stays incident

happened last Friday. A fourth

person z was injured. The four

were side have snuck across the

boarder to engage in illegal

trade. China has lodged a

formal diplomatic protest. And

the US President Obama has

lashed out at BP's chief

executive over the oil spill in

the Gulf of Mexico. BP's CEO

Tony Hayward is under fire. In

an interview with NBC,

President Obama said if he had

any say, he'd sack Mr Tony

Hayward. As Michael just

mentioned the PM meets mining

industry leaders in Perth

planning to voice opposition today, some mining Maccates are

from the back of a truck.

Melissa Clarke good morning.

How the mining executives

planning to meet the Barack

Obama in Perth today? Well some

of them are apparently taking

part in a protest today. You

would think that multimillion

dollar advertising campaign

would mean their voices have

been heard pretty loud but they

megaphone to ensure that that might be getting behind a

message is getting through to

the Government. Kevin Rudd's

going to be giving a speech to

a business luncheon in Perth

today ahead of the Community

Cabinet, the meeting that's

going on in Perth tonight and

although he is meeting the

likes of Andrew Forrest,

personally, at some point today

and he did meet the chief

executive of BHP Billiton

Marius Kloppers yesterday, some

mining executives are still

saying they're not happy,

they're not being heard and are

taking part in a protest being

organised by a mining and

exploration group over in WA at

lunch time today. We also know

Western Australia of course that the Health Minister is in

because of the Community

Cabinet meeting, the entire Cabinet there but she's got a

still trying particular job to do? She's

still trying to get WA to sign

on to the health reforms. Even

though all the other State and

Territories have Territories have agreed even

Victoria came on board in the end, the Federal Government said it didn't give up hope

that it would still be able to

convince Western Australia to

get on board. It's released the breakdown of the money Western

Australia would get more than

$350 million if it does agree

to these reforms in an effort to try and convince Western

Australia that it twoub best

course of action but I think

she'll shrugle a bit because we

understand neither quarnt nor

the Health Minister in WA has

time to meet Nicola Roxon while

she's over there, so she might

be talking to an empty

room. Which will just make that

negotiation even harder. We understand also that John

Howard's going to be out and

about speak today so some attention paid to him? If

you're in Sydney you won't be

able to move without running

over by a speech by John Howard

bhauz he's giving a speech for

the launch of the legacy torch

appeal at lunch time. Also in Sydney at lunch time Lindsay

Tanner is giving an address as

well and we also have Glenn

Stevens the Governor of the

Reserve Bank who is speaking to

a business grouping in western

Sydney as well, so there's plenty of talk about the

Government's tax plans, the

state of the Australian economy

going on around the country but

of course the one that we all

our vies on is that one over in

Perth. Thank you. To Japan now

and the country's new PM is

vowing to tackle national

debt. Need need Naoto Kan who

has been sworn in as the

country's fourth leader in five

years, says building ties with Washington will be a priority.

The resolving door of the

Japanese leadership has its

newest master and Naoto Kan

says it's his job to

rehabilitate the country. TRANSLATION: It is impertive

that we restore Japan economic fiscal and social security

health. A former niens Minister

himself, Mr Kan says the most

urgent problem is national

debt. It's the largest in the industrialised world and stands

at twice Japan's economic output. TRANSLATION: The reason for Japan's fiscal situation being

this bad is simple enough, for

the past 20 years we wouldn't

race taxes we relied on

debt Most of the Minister debt Most of the Minister under Yukio Hatoyama's old Administration has retained

their seats in the new Cabinet. The

The new PM nuns announced that

11 of the previous 17 minute

also remain one one of the key

changes sees Yoshihiko Noda

promoted to Finance Minister.

He's renowned for his skill as

an oretor. There is a certain

distancing as well from the previous Administration.

Clearly, one of the key issues

is regaining the public's trust

and support. Mr Kan says he

wants to improve the country's relationship

relationship with the US. The friendship has been strained by

the row over the American air

basot Okinawa, that ultimately

cost Mr Hatoyama his job.

TRANSLATION: We have a US-Japan

agreement and we need to

proceed along these guidelines

but at the same time we need to

look seriously at way of

lightening the burden on

Okinawa. But Mr Kan insis the

security alliance is the

cornerstone of Tokyo's

diplomacy. Now we'll take a

look at the front pages of the

major fups around the country.

The Australian is saying that former Hawke Government

Minister Peter Walsh has accused Kevin Rudd of accused Kevin Rudd of poor policy development in abattack on the propodz Super Profits

Tax. The 'Age' says mining

tycoon Andrew Forrest has

called on Bob Hawke himself to

negotiate a compromise on the tax. The 'Financial Review'

says Kevin Rudd will condition sult full Cabinet over key

policy decisions as Labor tries to remake itself before the election. The bodice of

soldiers Darren Smith and Jacob

Moerland who died in

Afghanistan will begin their

journey home today reports the 'Courier-Mail'..

The 'Canberra Times' says 13

Australians have now been

killed in Afghanistan while on

duty. The 'Daily Telegraph'

reeds with a picture of

killeded soier Darren Smith

with his 2-year-old son Mason.

The 'West Australian' says the

Australian military has

suffered its bloodiest day

since the Vietnam war with two

young diggers killed by a

Taliban bomb . The 'Advertiser' says Taliban insurgents

dedzinated the bomb by remote

control when the saz approached the improvised explosive device. Tiger Woods will turn to Melbourne as we've been reporting this morning in order

to defend his Mastest title,

that's on the front page of the 'Herald Sun' Kristina

Keneally's Government as

delivered a small target Budget

with a modest surplus reports

the 'Sydney Morning Herald'.

The 'Mercury' says the Bartlett

Government has backed away from

its pre-election pledge to cap

power prices and finally the

'Northern Territory News' says

a 3m crocodile was spotted at

Dar win's most popular beach

just a metre away from a

swimmer. Now we're talking

about a lot of issues today, of

course the after math of the

deaths of those two Australian

soldiers when we were mentioning yesterday that it

was 10 member of NATO forces

killed yesterday in a terribly bloody day and then heard at

the end of the morning there was an announcement pending

from the against force all

hearts sank on the news or the

suggestion that Australians

then possibly were involved in

those attacks yesterday and it

turns out that we were. Your

feedback on our involvement in

Afghanistan is welcome but also

the news about foods. I don't

know about you but thing is an

outrage, the fact that

Victorian tarngs I just want

fout it out that, that Victorian taxpayers are going

to foot $1.5 million to bring

the disgraced a I should say

out of form more importantly

golfer back to Melbourne in November. Just the before you

get your say, what's your

problem with this? We shouldn't

be playing for an adulter or

Australians should be paying

for someone out of form. I

think in terms of the Masters,

the fact that Tiger Woods has

been clearly out of form, the

fact he's missed a large slab

of the golf tour since the revelation came

revelation came out that should

be front and centre I should

thought behind the Victorian

Government's decision not to

fork out this money. Well

there's sting you take up. Do

we only pay for in form players

which I think is a rather extraordinary suggestion to make but anyway let's see what you think of it. The the top

stories on ABC News Breakfast -

two Australian soldiers killed

in Afghanistan will be

remembered in overseas services

today. The Brisbane based

combat engineers 26-year-old

Sapper Darren Smith and

21-year-old Jacob Moerland were

killed by a roadside bomb. The

PM's in pert today to discuss

the resources Super Profits Tax

with the mining industry. Kevin Rudd's going meet Fortescue

Metals boss Andrew Forrest, one

of the most vocal critics of

that new tax And golfer twudz

will be back to defend his

Australian Masters title in

Melbourne this November. The

Victorian Government is again

expected to pay half his

appearance fee which is thought

to be around $3 million. European Finance Ministers

have been meeting to discuss

ways to tackle staggering

levels of Government debt. An

agreed bailout fund for the

Eurozone cluns come into effect

at the end of the month but

Germany and Spain have already

announced drastic spending cuts to keep their own debt levels

in check. The pain in Spain

falls mainly on workers like

this, 2.5 million public sector

employees from this week will

find 5% less in their pay

packets. Automatic pension adjustments foirn inflation are

ending as is the Spanish

version of the baby bonus. But

despite the noise and the

passion, the nation wide strike

is unlikely to depth the

Government's determination to

shave $16 billion you're gro

the budget in year. The PM

slashed his own salary by 15%

as he tries to cut a deafit now

running at 11% of GDP down to 3

by 201 #. In Germany the

Coalition Government has

approved the biggest pang of

cuts and tax rises for decades. Thousands of Federal Government

jobs have are to go, welfare payments cut. The Defence

Ministerry is considering

slashing the armed forces by up

to 40,000. The Germany chorl

Angela Merkel says the aim is

to get the deficit down to 3% by 2014.

TRANSLATION: We're in difficult

times, we can't afford

everything we wish for if we

want to shape the future.

That's what the whole budget is based on for the coming

years. More broadly European

nation have been meting with

the IMF to agree on the te

Dales of a massive $750 billion

Euro bail out fund to prevent

oot Greek style collapse in the

zone's weaker economies. It's

not just the money but the

regulation at issue, a

determination the countries

will stick to strict deficit

limits of no more than 3% of

GDP. To use the traffic light

image, and to know you only got

fined when drive driving

through the red hielts of the

3%, from now on you could also be in

be in trouble when crossing the

orange light. Britain isn't a

member of the Eurozone but the

cuts here are likely to be

among the big es, some

estimates 60 billion pounds

over the next year alone, the

PM David Cameron is warning

they are as unavoidable z they

are painful. The decisions we

make will affect every single

person in this country. And the

effects of those decisions will

stay with us for years. Perhaps

even decades to come. David

Cameron says if nothing's done

about it in five years, the

country's indebtedness will be

the quiflent of nearly 40,000

dollars for eve woman and child

in Britain and as the great

cuts caravan move from one

European economy so another it

ushes in the era of awe starty.

What isn't clear yaet is what

effect it will have on

growth. The Queensland and NSW

Governments have handed down

their budgets both with heavy

spending on infrastructure. In

NSW the Kristina Keneally

Government also brought forward

payroll tax cut and both States

have attempted to boost their

housing sectors. The NSW

Government faces an election in

nine months, so it was no

surprise the Budget contained

as much good news as possible.

Starting with a surplus this

year of $101 million, a billion

dollar turn around on the

previous forecast. Today's budget builds on the

foundations we laid a year

ago. The State is publiced to continue recovering from the

impact of the global financial

crisis with economic growth increasing, unemployment

falling and inflation under

control. The budget also has

handouts for business, such as

fast tracking of payroll tax

deductions, which will lowter

rate to 5.45% from January next year. Business community will

welcome this Budget. Because it

month on tax, it moves on housing affordability which

will become increasingly a big

business issue in the years

ahead and it also continues the investments in infrastructure

and transport. On the housing front the Kristina Keneally

Government is abolishing stamp

duty on new dwellings up to

$600,000 in value. Over 65s

will get a stamp duty discount

if they move to a new home and

that there are benefit of up to

$30,000 for first home

buyers. These are measures that

we hope would stimulate new

home building activity and also

equally importantly perhaps

inen gender some greater

confidence in the outlook for

new home building in the

sit Whale the NSW Government

has returned its budget to

surplus in Queensland it's a

different story. The Bligh

Government's budget remains in

the red estimated to be $28 #

million this year. But thanks to a large infrastructure

program designed to create

jobs, next year that deficit is

tipped to blow out to $1.7

billion. Like NSW, the Queensland Government is

forecasting an economy making a

rapid recovery from the global

financial crisis, predicted

economic growth will peak at

4.5% in 2012 but economists Dr Betty Con Walker believes the

budget forecasts are not credible. Dr Betty Con Walker points to the massive turn

around from the mid year

economic review last December

with predicted a deficit this

year of $2.4 billion nmplt six

months I don't think they

undertook too many changes to

their spending. If anything,

there was an increase in

revenues which belied the

forecasts of the previous

budget. Dr Betty Con Walker

believes the Queensland

Government is deliberately understating the strength of

its financial position to help

bolster the case for major

asset sales such as the

privatisation of the Queensland

rail network. It was a better night on financial markets

overnielt -

Disglus President Obama has

slammed the head of BP over his

response to the Gulf of Mexico

oil spill. In a talk show

interview on US TV President

Obama also responded angrily to criticism that his own response

to the disaster hasn't been

tough enough. Sit around just

talking to experts because this

is a college seminar, we talked

to these folks because they

potentially had the best

answers so I know who arse to

kick, right? So this is not

theatre. President Obama not

mincing words there. For more

on the President's comments the

North America correspond ig

Craig McMurtrie joins us from

Washington and do you think these comments were script

ordinary were they genuinely

off the top of his head? Well

of course I don't know but he

was clearly very tetchy. It was

breakfast television. The White

House's is feeling the

pressure. A Washington post

poll came out yesterday shows

that 69% of the Americans

surveyed have a negative view about how the Federal

Government is handling the oil

spill crisis. That's in line

with other polls. And Barack Obama is getting very, very frustrated, so he was just playing tetchy in that

interview as you heard he said

that it isn't theatre, that

he's too businessy to simply

form for the cable shows. He vigorously defended his

Administration's performance

through the crisis saying that they

they were on to it from the

beginning and saying he's been

to Louisiana three times, but

you're right, he also teenage a

real swing am Tony Hayward the

BP chief executive, there are

increasing calls here for Mr

Tony Hayward to lose his job,

now the President was asked

about what he thought of Mr

Tony Hayward's comment when

Tony Hayward said that he would

like his life back. At the time

he was actually in the process

of apologising, to gulf coast

residents for the accident and

was trying to say, "Look he

wants it resolved as much as

they do because he want z life

back" but of course the dement

were not well received, nor

among the families of the 11

oil rig workers who lost their

lives in the accident. When he

was asked about it President

Obama said he, means Tony

Hayward, wouldn't be working

for me after any of those

statements so he was really

loading on. I guess we can say

that it was calibrated to the

extent that he's very well a

ware of the criticism of his

performance, that she's now

showing enough emotion not

being angry enough but he

certainly used some pretty

strong language in that

interview. Beyond strong

language what more can the

Government do to prod BP to

fast pace those clean up

efforts in the gulf. Well, the

latest point of friction

between the two is over claims

processors,ed that Alan the

Federal official in charge of

the clean-up operation says

that there are going to be a

series of meetings to try and

sort out the claim

processings. It's been alleged

that there's a cap on those of

$5 thoux BP says that's not

rite. They're just trying to

get as much money out thrt in

amounts they can dealwell to

try and get people who are

worst affected by in spill over

the worst of the crisis at this

point. They're saying it's a

legitimate claim, they will pay

it but there's real friction

over claims, Mr Allen is also calling for more skimmers because the feeling is that the

oil is spreading as we

discussed yesterday across the

gulf, Federal scientists today

have confirmed that will are

substantial plumes, subsea

plumes which BP has also denied

though the scientists are saying that they are very low

concentrations and the other

piece of good news today is

that the amount of oil their

siphoning off the floor of the Gulf of Mexico has risen to

15,000 barrels a day, which

means they have to bring in a

second ship so there is some

good news, but clearly the political

political fallout if anything is intensifying. Craig McMurtrie in Washington, keep

us posted. OK. And BP,

Virginia, has just announced

that it will donate net

revenues from the oil recovered

from the stricken Gulf of

Mexico to help restore wildlife

habitats, very much damaged,

across the Gulf of Mexico. The

company trying to go some way

to restoring the public

regulations damage struck to BP

care of that disaster. But

that's just net revenuings from

the oil that's recovered from

that spill. Or recovered from

that well Just reading from the statement recovered from the

well which I assume they can

then try to sell again, just a question

question of how effective that

oil would be? Doesn't make it

that generous an offer then

does it. Here we tipped all

this oil on the coastline or

this oil spilled on to the

costline and now we'll sell it

and return the money to

you Inevitably there'll have to

be a scalp and that scalp

increasingly looks like being

that of besieged head of BP,

Tony Hayward. And also tearing

that Barack Obama at this very

late stage kicking up a gear in

terms of his demeanour, his

rhetoric, his language when

he's been criticised right

across the States for frankly

just being too unemotional in

the face of these and other

disasters. Mrs Doud wrote a

common on this in this 'Washington Post' where she

smackid him around for smackid him around for being

the country's chief. He's been

accused of being too above this

fray and remote and he's now

using strong language and that

may just do his poll numbers

the world of good. Now to port

sheer is Paul Kennedy. Thank

you. The news out of Africa

this morning is not that great

for the Socceroos. Tim Cahill

has not been able to complete a

full training session and he

still hasn't trained properly

since last weekend's game against the United States. So

he must be in doubt for that

Germany match. He says he's

fine but there must be some

doubt there. Brett Emerton

trained fully and Harry Kewell

trained fully. That's the only

other news. There only Tim

Cahill but he's a very

important person in that

team. Good news for Jarryd

Hayne and the NSW Blues ahead

of the State of Origin two.

Hayne was cleared of a headbutting charge last night

and everyone will be pleased by

this. The administrators and

the crowd and both teams

because he is one of the best

players in the sport. This is

what he had to say

afterwards. Yeah, just very,

very very happy, you know, just

pretty much rattled me and you

know I'm just so excited to be

a part of the squad now. Was

the first feeling relief. What

did you think? It happened to

fast, I feel like I'd been in

will for a whole game but it

happened so quick. I'm just

really really excited and I

just cannot wait to see the

boys and, yeah, I'm just happy

. Are you surprised? I just

didn't want to think about it.

Great lawyers and great people

behind me and really

represented me very well. It

showed in there. A bit like a

post match press conference

there just critiquing the

lawyer's performance let's move

on to Israel Folau and he's

going to play in that match as

well, surprise surprise. The

emotion set aside after his

decision to defect to AFL has

passed and they've decided to

allow him to play in State of

Origin two, the Maroons. Let's

hear now from his coach and

from Israel Folau. Been a lot

of emotion surrounding the

whole week leading up to

selection yesterday about and

Israel's decision to go

elsewhere, so in the end I

think sanity prevailed. We're

bigger than that, to hold

grudges against people and he's

been part of the team for the

last dwleers a and he's in

terrific form for his club at

the moment and he deserves his

spot in the team To be honest I wasn't really thinking wasn't really thinking about

it. I just wanted to get myself

prepared for my club footy and

make sure I was playing well

and, you know, if I didn't get

picked I wouldn't be worried

but I would have been just

carrying on with my footy for

the rest of the year for the

club but I've got given the

opportunity to play again by

Mal Meninga and the whole

Queensland board ands there senior players show their full

support, I'm pretty grateful

for that Israel Folau there.

Let's look at some pictures

last night from the bar bearians versus England bearians versus England rugby

match in Perth. And this was a

great spectacle for the Perth

crowd and in particular one

man, shone, that was James

O'Connor, the 19-year-old and

you can see there, his terrific

food work and then his strength

to score his first try and then

he went on to score two more

tries. He scored 25 points out

it was the 28 and the patchwise

a draw, England was able to

score some points when O'Connor

went off for a rest in the

second half so that's great

news for the Australians and he

will be pushing to replace

Kurtley Beale at some stage as

fullback of the Wallabies team,

the young teenager and looking

forward to that test between

the Wallabies and England on

the weekend. Interesting first

of all, Israel Folau will play

and I thought that would be the

case, they came out afterwards,

the Queensland administrators

said if he's going to AFL,

stuff him we're not going to

let him play in game two but if

you're going to keep someone

out on principle it has to be

some broader reason for it. Rather just

peevishness. That's right.

There's no great deterrent

because no-one else has been

offered millions of dloors go

to AFL. And he's by far their

best player. And they need him

for the contest and Hayne is

playinged a well and you're

outraged that Tiger Woods I'm outraged. What do you think

about it? I think he shouldn't

be paid as much money from the

State Government as he was last

time because I think the last

time the whole build-up was

that he hadn't been here for

many many years and it was this

great one off and I think that

was why the money was being

paid originally, so I'm not

sure that he's worth that much

from the State cofferses, but

Governments waste money all the time and spend it on... That's

no justification. Be like the

Government's stumping up $1.5

to bring the world's 30th

seeded tennis player out based

on his current form He's not

quite the 30th seeded. He's a

drawcard. Yes, he's off his

form, but it's not as if he's fallen away and is in tend of

his career. He's going pull the crowds. He would still be the

best player by that stage if -

well, he'sing can council down

he will be the best player in

field so I don't think he's

gone or anything like that with

his form, but you are right in

some sense because he has had a

roller-coaster the last couple

of months so there really is no

certainty that he's even going

to be playing then, as you said

before earlier, he's had a

little bit of a stretch tonight

the sidelines because he played

badly if one tournament so

there's unpredictability about

him whereas there was just

certainty last time that he

would come and would come and dominate Peter has just emailed us saying

"Currently out of form but

still number one in the world.

He made huge profits for State

Government's investment last

year" so that's somebody if

favour of twodz coming out

again. Just one. We'll see if there's anymore of you out

there. You can always remail us

right throughout the

morning. ABC News Breakfast can

be watched live from anywhere. Vanessa O'Hanlon

joins us with the weather now. Good morning and first off

let's take a look at the satellite

satellite image. We have a cold

front that is rapidly moving

over the south-east. Cloud is

widespread and so is the cold

weather. Expect snow, rain and

showers for today. A mostly dry

day for WA and the interior

despite this jet stream of

cloud that is moving across the

interior this morning. In

Queensland isolated showers

about the east coast and about

the wide bay and south-east coast.

You're watching ABC News

Breakfast. We'll speak to Neil

James from the Australian

Defence Association about the

deaths of two soldiers in

Afghanistan. Those deaths have

triggered renewed debate about Australia's mission in Afghanistan, whether we've got enough troops in. There and

also ahead we'll have a review of some of the newspapers and

this morning we'll be joined by Tim Wilson from the Institute of Public Affairs. I leading

the news this morning, a service will be held at an air

base in the United Arab

Emirates today for two

Australian soldiers killed in

Afghanistan. The Brisbane based

combat engineers, 26-year-old

Sapper Darren Smith and

21-year-old Jacob Moerland were

killed by a roadside bomb. The Defence Minister John Faulkner

and Defence Force Chief Angus

Houston will attend the service. The PM will hold crucial talks on the mining tax

today when he heads to Western

Australia. Mr Rudd met BHP

Billiton chief Marius Kloppers

in Sydney yesterday and today

in Perth he'll meet Fortescue Metals Andrew Forrest. Mr

Forest is one of the strongest

krit yoirftion the tax. Golfer

Tiger Woods will return to Melbourne in November to defend

his Australian Masters title.

On his website woods says he's

looking forward to playing. The

'Herald Sun' reports today that Victorian taxpayers will have

to pay half of the $3 million

bill. British PM David Cameron

has met Margaret catcher at 10

Downing Streettor a private

might. Lady Thatcher visited

Tony Blair and Gordon Brown shortly after their elevation

to the country's leadership,

back in 1997 and 2007. Lady

Thatcher was the Tory PM

between 1979 and 1990. And

North Korean blgds have shot

dead three cheese citizens.

China's Foreign Ministry says

the incident happened last Friday A fourth person was

injured. The four were said to

have snuck across the border to

engage in illegal trade. China has lodged a formal diplomatic

protest. The bodies of the two

Australian soldiers killed in

Afghanistan have begun their

journey home. Their deaths have

put the spotlight on the military strategy in

Afghanistan but Kevin Rudd says

Australia is committed to

fighting the Taliban. It was

Jacob Moerland's first overseas

deployment. He was 21 and

engaged to be married. Darren

Smith leaves behind a wife and

young son in Brisbane, this was

his first deployment two. The

26-year-old was a handler for

an emplosives detection dog who

also died. Smith featured in

the ABC story. They may be

working dogs be uthey get

looked after better than looked after better than a lot

of house dog I've seen The

soldiers were on a routine foot

patrol in Al Minhad, it was

just before lunch time when an

proerz detonated. One of the

soldiers was killed at the time

of the explosion, the other soldier received emergency

first aid from his patrol

mates, and was subsequently

evacuated to a nearby ISAF

hospital. Sadly the soldier

died from his wounds. The

deaths take to 13 the number of

Australian soldiers killed in

Afghanistan. This is an

enormous loss for their

families, and their loved ones.

On behalf of the Government and

the people of Australia, I

extend to them our deepest condolences, our deepest

sympathies. With more soldiers

dying PM was facing questions.

Was this war winnable? Conspicuously Kevin Rudd spoke

today only of progress? This is

a very tough, difficult,

continuing military campaign,

and we are up against a

determined and dangerous enemy. Look it's very hard for

the PM under these

circumstances to say that it's

not winnable. But I don't think

there's any evidence that we're

making serious progress. Hugh

White was a senior figure in

the defence establishment a

Government adviser now a Professor strategic studies at

the ANU. He's openly

pessimistic about the prospects

for any sort of victory in

Afghanistan. I think the scale of the insurgency remains

large, and the scale of the Western effort, the Coalition

effort, to combat the

insurgency and more importantly

to build a kind of to build a kind of effective

Government in Afghanistan that

can resist the Taliban's

pressure once the Coalition

forces leave, that progress is

way too slow for to us have any

confidence. So why are we there? Kevin there? Kevin Rudd like John

Howard were him says countering terrorism. Our mission is

important. To ensure that

Afghanistan does not return to

become an operating base for

terrorists around the world.

Terrorists who in the last

decade have killed more than

100 Australians. But the reality on the ground

undermines the logic of the Government strategy. The Taliban's top leaders and

al-Qa'ida linked terrorists have long ago established

operating bases across the

border in Pakistan. Hugh White

argues the Australian presence

is about something else. Ever

since the end of the Cold War

in aidsa way back the end of

Vietnam war, Australia has

demonstrated its support for

the United States as an ally by

making small, quick, cheem

contributions to the various

wars that America's fought in

and around the Persian Gulf and

I think our contribution to

Afghanistan and for that matter

our contribution in Iraq before

that in 2003 were very much

part of that pattern. The problem for Australia is that

these wars turned out not to be

small quick and cheap but slow,

hard and ultimately I think sun

unsuccessful. When it began the

mission in Afghanistan was

justified by John Howard as a

nation building project.

Provincial reconstruction. Now

under Rudd Labor the emphasis

is on building up the

capability of Afghan soldiers

and police. Either way, the US

want morse Australian boots on

the ground and some senior military thinkers here

agree. If we aligned our

strategy with our campaign,

with our tactic, I think

Australia or someone has got to

put in at least about 3500

troops. But Kevin Rudd says

we're doing enough. We have

never extended a blank cheque

when it comes to our troop

commitment. Time is running

out. With the US planning to

begin a phased withdrawal next

year, Australian soldiers won't

be far behind and then Afghanistan will be on its own.

The United Nations Security

Council has agreed a draft

resolution with the aim of

imposing a new round of

sanctions on Iran over its

nuclear program. The US

Secretary of State Hillary

Clinton says they're the most

significant that Iran's ever

had to face. The Iranian

President Mahmoud Ahmadinejad

says he'll reject talked to

resolve the nuclear impasse if

new sanctions are

enforced. Russian leaders have

angered Iran by voicing

qualified support for sanctions.

TRANSLATION: We will have an

opportunity to discuss these

problems if my Iranian colleague has such a

need. Moscow has often cautioned against getting tough

in the past but this time it's

backing the current UN draft. Iran's President suspect

impressed and he's issued

Moscow with a veiled threat. TRANSLATION: We are neighbours

with Russia and nationally we

should be partners and friends. There are no problems between

us, there is only a warning.

They must be careful not to

side with the enemies of the

Iranian people. It is up to Russian diplomats now. President Mahmoud

Ahmadinejad is in Turkey for an

Asian security summit and he's

urging western powers not to

dismiss a nuclear fuel swap

deal represently brokered by

Turkey and Brazil.

TRANSLATION: The Tehran deal

has provided the US and its

allies with a new opportunity

and woe heap they will use the

opportunity in the best way

possible The un-Security

Council's five permanent

members believe they have the

votes to push through a sangs

package, but Iran sinists such

a vote would beelly

unjustifiable. What would be a

fourth round of sangs would

tighten financial on Iran as

well as expaepding an arms

embargo. I said in my report

that Iranian nuclear issue is a

special one, because with Iran,

we have the issues with

possible military dimension

which need to be qualified but which is not which is not qualified

yet Western dp mys expect 12

countries to vote for the measure on Wednesday. Returning

home now where for the first

time scientists have filmed

life under water in a deep sea canyon off Western

Australia. Ten batd cameras

were used to capture00 of hour

of footage that researchers

hope will be used as a

benchmark for future

studies. These remarkable

images reveal aquatic life more

than 400m beloi the surface.

For the first time, researchers

at the university of Western

Australia have filmed the Perth

can von bs it's as deep as the

grand canyon and lying just off

the coast of Perth.. You just

can't believe the behaviours,

the shape, the weird forms and

the activities of those

animals, it's really

special. Researchers used ten

baited cameras and captured

more than 200 hours of footage.

They found pinch snapper at

greater depths than ever

recorded. Giant squid spearing

past the camera leaving a trail

of ink and sting rays making a leisurely progress along the

sea bed. Our research is really

focussed on establishing a

benchmark so we know exactly

what species are there, how

many there are, ou big they

are. The information will be

used to monitor any changes in

fish stocks. The importance

research work that's going on

here at the UWA oceans

institute is providing vital

information to the Government

at a time when it is putting in

place a comprehensive marine

conservation plan. Researchers are hoping that plan includes

marine protection for the Perth

canyon. It's small and grey and

already it's an international ambassador for the world's

owings. But this dolphin

doesn't even have name yet. The

baby was born last Monday but

marine park staff still doesn't

know if it's male or female? We're waiting for this

baby to roll over and show its

belly. Very difficult to tell

the difference, you're looking

at an y is about 4 to 5

centimetre so it's tough to

see. They do know its mother is

47 and its father is 57. They

are old, the average age at

death for dolphins in the wild

has been many many studies done

is about 12.5 disglaers this

theme parks they commonly reach

35 and this youngster is likely

to take on a role in the park's

breedling program. Three

quarter of Sea World's dolphins

are cap tifr breed. In honour

of world oceans day it's been

chosen to be an ambassador for

for its the inshore Pacific bottle

bottle nose dolphin. A i

wouldn't want to get close to

the dolphin either.. Not with a

snappy mum like that The top story this morning, two

Australian soldiers killed in

Afghanistan will be remembered

in overseas services today. The

Brisbane based combat engineers 26-year-old Sapper Darren Smith

and 21-year-old Jacob Moerland

were killed by a roadside

bomb. The PM's in Perth today to discuss the resources Super

Profits Tax with the mining

industry. Kevin Rudd will meet

Fortescue Metals boss Andrew

Forrest, one of the most vocal

critics of that tax And golfer

twudz will be back to defend

his Australian Masters title in

Melbourne this November. The

Victorian Government is again

expected to pay half his

appearance fee which is thought

to be around $3 million.

We'll take a look now at the

Wednesday papers and we're

joined by Tim Wilson from the

Institute of Public Affairs.

What does it matter, between

friend. What are you looking at

todaysome Today's State budgets

you can't go past what is going

on in Queensland and NSW. Love

the picture on the front page,

don't know if we can get it up

of the 'Sydney Morning Herald'

with Kristina Keneally in her

sort of cowboy or cow girlish

outfit. I think it's hysterical

but the State Government has

decided to put its election

platform on allowing stamp duty

cuts for new properties Is that

a bookies bag she's carrying..

It's stuffed full of money and

she's got around her her fallen

MP and ministers of late. I

think it's a really cute little

cartoon She looks a bit like

Annie Oakly? It's a bit "Annie

get your gun." They've pitched

their re-election platform on

cutting stamp duty for new

homes. Some have argued it's

about economic stimulus,

housing forget. It was far

better to most people than what

the Queensland Government's

been criticised for which is

going to give a tax cut of 45

cents a day to most

Queenslanders. But it's - I just think the whole relationship between taxpayers

and the budget these days is completely askew because everybody thinks that they

deserve to get something from

Budgets. Last time I check checked the role of Government

was to take care of more

vulnerable in society. Anyhow

everybody expects to take their

piece. I think that's a legacy

of the Howard Government disgh

that's what budget became. Every voter gets a prize. That's right.

But... Think of the word

Budget. I remember when my

parents would sit around the

kitchen table doing the family budget it was about the bad new, what committee can't afford, what was being cut

back, what was being saved,

what was being paid off, it

wasn't about lollies for the

kids There was this two quotes

from the Treasurer, we have to

read off notes but this budget

builds for the future and this

budget is a path to prosperity

which is the NSW Treasurer. Do

we hear that every year? It

doesn't matter which Government

is in power they're always

about building for the future.

I become quite dismissive of a

lot of rhetoric these days. But

any amount of money save this Government from electoral

oblifon? NSW, yes. Both the

Budgets have this focus on the

fact they're not going mass

yifrl into deficit so they've turned their budget positions

around Look at the front page of the 'Courier-Mail', Anna

Bligh is in Var curious

position there in Queensland.

It's not as certain as is it

Tim that she's facing the kind

of electoral oblifon that you

say everyone suggests will be

the case for Labor in NSW. No,

not at all but their election

time frame is not longer than

NSW. And between that and the

Liberal National Party just

seems to be constantly stuffing

up, in fact on the front page of the 'Australian' England it

is, tone Tony Abbott been

beating up on Liberal National

Party in Queensland saying get

your house in order. They've

had to constantly keep sacking

candidates so it's absolutely not If 'Financial Review' has a story essentially saying Kevin

Rudd can no longer stand the

political heat so he's getting

out of the kitchen. He's had

this strategic committee to

deal with various different policy and that includes him and Lindsay Tanner and Julia

Gillard and Wayne Swan and they

been making all the big

decisions whether it be

Emissions Trading Scheme and

dumping that and now they're

bringing it all back to the

Cabinet process because I think

their Cabinet colleagues have

sick and tired of having to

explain why decisions have been

made that they didn't make It's a very good and intriguing

story. It was known as the

kitchen cabinet hence your very

clever joke there Michael which

has clearly been irritating a

number of member of full

Cabinet ab also there's been

some unfortunate political

fallout from that just

recently. Most notably I guess

Penny Wong saying Newcastle

Senate estimates committee

recently, talking about who

actually decided about the abandonment of the Emissions

Trading Scheme, was the itself

the full can Cabinet. And Peter

Garrett was also in that

position. He reported on the

weekend. It doesn't bode well

when you've got four people

basically making decisions for

ten tire country and according

to the AFR, this budget

committee was making decisions

putting on the Cabinet table

and it was just suppose to be

accepted as read so I think for democracy, for operations of

Government, I think a lot of

people will be relieved to see

that Cabinet is taking full

responsibility again On the

other hand though, I think ever

since John Howard, haven't we

really had single person top-down Governments anyway?

The stories about everything

having to go through John

Howard's office for example are

legendary and some seats, on

boards of various public

institutes, being vacant for

years because John Howard

hadn't got around to signing

off it on personally. We've now

got entrenched this kind of

top-down single person

Government There's always

tweention between decisions made by the PM and tulle executive. No matter what

criticism of Howard he did go through the full Cabinet

process even if it meant policies being torn down or

appointments being torn down

wrz that just doesn't seem to

have operate for a long time..

That's right. So it's a welcome

change. The Melbourne 'Age' has

splashed with a lot of what papers have splashed with this morning, that of course is St

deaths of the two soldiers in

Afghanistan? Yes,, of course

very sad and tragic but the

thing that caught my eye in the

'Age' was this term sappers

which I know you've repeated a

couple of times. The only time

I've heard that term before is

during Khe Sap, I did the

medical engineer as a saerp and

it seemed to be this bizarre

word that not many people have

heard so I thought it was worth

highlights for those of us who

have always scratched their

heads. It's a sad and tragic

situation, it was also their

dog that died. I don't know if

anybody noticed that but on the

front page of the 'Age' there's

the Pimmage of the dog as well.

A very tragic circumstance

reminds about the casualty of

war. The 'Australian', the

front page you're looking at

today as well? Yes, there's the

on jog challenge of the

resource rent tax and this is

one that I think will concern people whether they're Green,

Labor or Liberal, the last

night there was as the prok

raised that the Government was

going to have to cover the

liability for up to 40% of any

environmental disasters. I

don't think think we'll have a

situation like Woolworths in

the Gulf of Mexico which is

what the story is actually

about but I'm sure this is

going to scare the be-Jesus out

of quite a few people that this

is where this tax is going. I

suspect the Greens are going to

call for some review now to

assess whether the Government

should be covering those sort

of liabilities. It's an

interesting argument in the 'Australian' because it's just

attacking the proposed tax from

every single angle. The

newspaper does not like the tax

and has made that extremely

clear and if you go and

introduce any tax like that

there's got to be compensation

and softening for the industry,

here's a compensation, we don't

like that one either? Doesn't

think the admission by the Treasury officials that it

could go that far does scare

people. The whole idea of the

tax system, balance f a off the

tax to mitigate the risk fof

mining industry to go about

prospecting but I don't think

people would necessarily be comfortability about covering the liability for environmental

Daniel, particularly extremely expensive environmental

damage Certainly if we get a

Gulf of Mexico-type oil

spill $10 billion. They're

going to scoop up the oil, flog

off the oil on some sort of

resale mark, then they're going

to send the profits earned back

to clean up the mess. Then we

all wake up from the dream. A

lot of sea life in the meantime. Need to be careful Have you paid any

attention to the Government

advertising on that Super

Profits Tax, have you soon any

on TV? I noticed for the first

time one of the ads lants What

was it like? It seemed to beet?

A university lecture hall. Very

Al Gorishment More like a uni

hall to me and all these people sitting there while the

lecturer extolled the virtues

of this new tax which made me

think it doesn't look like very

independent education to

me. Where the education sill

bus has been set which the

Government The ads in the print

media seem to be dry and boring

and sort of reminiscen of the a

bit of the GST. We need tax

reform this the is why we need

to it but I get a paragraph in

and turn the page. I'm not sure

that they're very

effective. Tim Wilson, good to

see you. To sport now and

there's some doubt about Tim

Cahill's eligibility for the

World Cup. Thank you. Not

according to Tim Cahill. He

says he'll be fine but he still

hasn't been able to complete a

training session since that

match against the USA last

weekend. In which you can see

him there, he scored but he's a

very important part of the team

and for him not to complete

training must be a worry for

Pim Verbeek and Brett Emerton

and Harry Kewell did get

through the latest training

session. Back home and with the

State of Origin build up for next week Jarryd Hayne and

Israel Folau were in doubt but

Hayne has got off his

headbutting charge so he's no

worries, he'll line up for the

Blues and Israel Folau the man

heading to the AFL, he's going

to play in State of Origin two.

His team-mates have really

pushed for him to be included

despite the earlier comments from the administrators. And now to Perth last night, there

was a rugby match between the

barbarians and England which is

warmling up for match against

Australia this weekend and was all good news for the

Australian players really,

Berrick Barnes played quite

well as co-captain and Jaime