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(generated from captions) That's right. How can that be.

Most people if you walked out

on the street if you said do

you agree with the principle

that men and women should be

paid the equal amount for work

of equal and comparable level,

most would say yes swre. A

problem from the lowest rung

right through to the most right through to the most high

rung of the labour market, a

problem around pay equity.

Women if you look an average,

women are paid 17% less than

men. If we look at full-time

ordinary earnings, weekly

earnings and if you put in

part-time work that actually

comes down to 34% less than men

for doing work of equal or

comparable value. So we do have

a significant pay a significant pay equity issue

in this country. How can that

be explained where a woman

comes in to do the same job as

a man and she is not paid the

same? Sometimes the difference

alshall differential is as

much as 50%. Some would suggest

that negotiating approaches are

different between men and women and whether women will and whether women will say I

know the company is going

through a tough time and I want

wants fair and a man might

negotiate differently. There is

a range of other things as

well. Women will trade off

money for family friendly work

condition, we know. That and

historically women's work seems

to be undervalued. You've now

been the Federal Sex

Discrimination Commissioner for

18 months. How did what you've

compare with learned during that time

compare with the expectation s

you brought to the job? It's

interesting because I've always

followed the zex discrimination

Act. I knew it has been in

place for almost 20 years now

and I suppose my expectation

was we had come further on

gender equality than I have

found out we have come. I think

we've stalled in relation to

gender equality. One of the

travel great things was to be able to

travel all around Australia on

my listening tour just to speak

to people who could put the

human face on a lot of the data

I was seeing, to talk to the

woman who was back in the job

two weeks after having her baby

mainly because of financial

need, or the woman who told me

in SA when we talked about

sexual harassment and what an

experience it was for many women, and

women, and she says if my uncle

does it I know it's not right,

but if it's my boss, then

that's just how the workplace

is - being a mum, that made me

realise no we haven't come as

far as we should have come.

Finished the untackled business

of gender equality in this

country is absolutely vital and

that's what I intend to do. Elizabeth Broderick, thank that's what I intend to

you for coming in. Thanks,


It's been revealed that celebrations for the forth

coming inauguration of South

Africa's new President Jacob

Zuma will cost more than $12

million. And as the euphoria of

last week's victory subsides, attention in South Africa is now turning to

now turning to just what a

Jacob Zuma presidency may

bring. His in the labour

movement have called on him to

- deliver his election promises

and there are questions about

his moral character. Africa

correspondent Andrew Geoghegan

looks at the rise of Jacob

Zuma. A victory dance from

South Africa's President-in-waiting.

President-in-waiting. All

power! It's been a remarkable

comeback for Jacob Zuma. Just

four years ago, his career was

in tatter s - sacked as deputy

President by his boss Thabo

Mbeki after being implicated in

a corruption scandal. In the

interest of the Government, It

would be best to release

honourable Jacob Zuma from his

responsibilities. He was honourable Jacob Zuma from his

eventually charged with

corruption, money laundering

and racketeering but those

charges were developed on a

technicality in the lead-up to

the election. He was also

charge and then e) acquitted

of rape. He admitted having sex

with his daughter's friends who

was HIV positive. Not

surprisingly Jacob Zuma's moral

character became a central character became a central

election issue. I would say

that it would be unconscionable

to have someone as a president

who had this cloud hanging over

him. I have said you generally

want to look up to one who is

your president and be able to look

look up with some pride. Zuma

and his spores claim he was the

victim of a political

conspiracy, hatched by Thabo

Mbeki. 18 months ago he got his

revenge, deposing Mbeki as lead

over the ANC. 67-year-old

Jacob Zuma comes from a peasant

background and received little

formal education. He's a Zulu


ra tradition ally and polygamy

and he has two pief wiefr. One

wife ended - marriage ended in

divorce and one wife killed

herself a few years ago. He is

a polygamist and we believe

that is problematic. We believe

polygamy is in contradiction to

the constitution that sets out

equal right between women equal right between women and

men as a centre piece. Zuma

most avid spores can be found

in rural areas and townships

where as many as one in two

people are un employed and

poverty is widespread. These

are problems he's promised to

solve. The new President of the

Republic will be a Republic will be a president

for all and he will work to

United States the country

around a program of action that

will see an improvement in the

delivery of services. Zuma's

ascendancy has been backed by

the South Africa Communist

Party and the trade unionists.

favours when he assumes Both will be looking for

favours when he assumes the

presidency. Now to the weather

- a few showers for Sydney,

some morning frost in Hobart,

cloudy in most of the southern

capital cities, fine in

Brisbane and Darwin. That's all from us. Lateline Business

coming up in a moment. If you would like to look back at

tonight's interview with

Broderick or review any of Lateline's stories or

transcripts, you can visit our

website: Now Lateline website: Now Lateline Business

with Ali Moore. Thanks.

Tonight, toxic debt, ANZ's

profit report shocks the

market. A number of businesses

have got through Christmas

period OK, and then they've

seen a very marked slowdown in

February which took a lot of

people un awares. And therefore

March there was quite a

significant hit and we're

talking about middle market

talking about middle market here. Payday for BrisConnection

but will shareholders make

their second instalment? Whilst

that action is current, in my

view and in the view of council

s, any unit holder has a

perfect defence or right of a

stay whilst that action is

still on foot. And Peters puts

more than 100 jobs on ice. That've

ice. That've e've lost a lot of

market share to the other companies and now they're

giving in.

To the markets and the ANZ's

disappointing earnings weighed

heavily on Australian shares.

The All Ords fell for a second

day trag ed down by the Banks.

If & the ASX 200 lost 13

points. In Japan the Nikkei was closed

closed for a holiday. And in

London the FTSE is more than 1%

higher. In breaking news the US

economy is shrinking much

faster than market forecast. In

the March quarter GDP slumped

to an annualised rate of 6.1%,

a large part of the fall is due

to business inventories which

have been cut back at record

pace. For more, I am joined now pace. For more, I am joined now

by the ABC's north North America correspondent Michael

Rowland. This is not a pretty

number, down more than 6% on an

annualised basis. And

especially when you consider

the market was expect ing a

fall of 5% over the quarter. A

very bleak set of figures just

re reloosd here by the commerce

department. It's the first time

the US economy has contracted

for three quarters since 1975. Looking down Looking down the various

sublets of vicious - figures

it's very bleer. Housing

investment down, ex ports down

30% of the quarter that's the

biggest drop for exports in 40

years, im ports down 34%,

Government spending down 4%,

that's the biggest drop in

public sector spend ing in and inventory down

inventory down a massive $1

million over the quaert.

Confirmation that the US

economy is still deep ly mired

in recession. That is

potentially good news about the inventories. We could be about

to get to the point where the

cycle turns. It is. It is

showing US businesses are

responding to the deep

contraction in the US

economies. Their stock piles have

have been reduced over the two

cycles and when the economy

does turn, whether it's this

year or in 2010, these

businesses will have to start

increasing their inventories

again and this this will

involve rafring up production

and hiring swoe, that will

auger well for the recovery.

But at this stage no-one is

willing to bet their future on

when that will happen. At the same time if

same time if we're talk of

glimers of hope, consumer

spending was also up. It seems

conm suemers are holding their

nerve. In consumer spending in

this quarter was up.2%. Whether

that is consumers buying things

to cope with the downturn like

alcohol or medications we are

not really sure about the

actual rediefls the figures but

it shows that the ever

resilient US consumer has not completely backed completely backed away from

going out and spending money.

That's very important because US consumer spending accounts

for a massive 70% of US

economic activity and economic

policy makers are hoping that

that figure holding up in successivequarters. I know

these numbers are only just

come out but they come on the

same day as President Obama

commemorates 100 days in

office. Has there been any official

official reaction? No official

reaction yet, although these

figure also come as something

of a blow for the Government. Barack Obama and the Treasury Secretary, Timothy Geithner,

have been talking a lot about

seeing glimmers of hope, about

seeing green shoots in the

economy. These figures show as

of the end of mar the US

economy was still in very, very

deep trouble. The US Government

is making the point, though,

that is US economy is yet to feel the

feel the full expects of that

huge stimulus package that the

US Congress pass add cup 068

months ago. The Government says

the tax refunds and the

infrastructure spending

involved there won't start to

flow through to the US economy

until this current quarter and certainly towards the end of

the year. They're hoping that

we've seen the pors worst in

terms of those big quarterly

falls for economic activity. We

also have in the morning your time inflation numbers that time inflation numbers that

have come out, and they're at

the lower of expectations? The

Fed ease consumer and spending

indepex shows inflation that

the Fed's preferred measure of

inflation rose by 1.5% over

three months to tend of March.

That is at the lower end of the

Fed's expectations an shows

that inflation is not really a

problem, which will feed into

today's meeting of today's meeting of the Federal

Reserve. Again they're deciding

what action to take. Of course

they can't do much with

conventional measures Giffin

the Federal funds rate is

already near diseer yoe. Expect

to see in about five years

confirmation they are going to

take further efforts in

unconventional ways like buying

bonds, effectively printing

money to ease those credit markets and markets and boost economic

activity and for first time in successive meetings there's a

great deal of interest in what the wording of the Fed

statement is going to involve.

It will be very interesting to

see whether Ben Bernanke and

his colleagues at the Fed share

that muted optimism at about possible recoveries in various

parts of the knee. Thanks for

talking us to. Pleasure. Back home, shares in

home, shares in the ANZ bank

have been sold down more than

7% after unveil ing a hefty

fall in first half earnings

because of a big increase in

provisions for bad debts. While

the headline profit of $1.5

billion is another indicator of

the relatively good health of

Australia's banks the higher

provisions and the forecast of

more to come have led some

analyst to question what lies

ahead. Andrew Robertson reports. ANZ is reports. ANZ is the second of

the big four to report in 24

hours and, like Cameron Clyne at National Australia Bank,

Mike Smith was putting on a

brave face. Given the global

economic environment and the

problems facing the financial

system around the world, this

is a very credible result. Net

profit after tax was down 28%

to $1.4 billion, but when

one-offs were stripped one-offs were stripped out,

underlying profit was up 4% to

$1.9 billion on an increase in

revenue of 18% to $7

billion. A disappointing

result really because the

statutory profit was bolstered

by some unusual items which are

un like to be repeated of the

order f od 460 million. But

banks normally direct investors

to what they call

to what they call cash profit

which for ANZ was down 43% in

the half to $954 million and

buried on page 15 of the results. Underlying profit is

an interesting measure.

Statutory profit is a more

interesting one. In response

to the economy's slide into

recession, ANZ doubled its

provision for bad provision for bad and doubtful

debts to $1.4 billion. However,

this didn't match the $1.6

billion increase in impaired

loans to $2.4 billion and

that's what worries analysts

such as Brett Le Mesurier. How

that could infold is ANZ may

need to bolster its provisions

at a time when impaired assets

are getting larger and larger

which is greater pressure which is greater pressure onphyture profit. ANZ boss Mike

Smith conceded the risk of loan

defaults in the current

environment will get worse

before it gets better an he

hasn't ruled out a capital

raising. The capital when you

need it you have to raise it or when the opportunity comes to

raise it you should do. For now

to preserve capital Mike Smith

has confirm add 26% dividend cut

cut t. The ANZ result has highlighted how trading

conditions are favouring the

big four bank. With a guarantee

guarantee to protect them,

densits grew 16% in the half

and net margin was also up. I

would say the fact of the

margin increased at all would reflect reduced

competition. Which is one

reason why business customer s have not seen much of have not seen much of the

Reserve Bank's dramatic cuts to

interest rates. We will speak

with ANZ chief executive Mike

Smith later in the program. The

position of unit holders in

BrisConnection remains under a

cloud tonight after the second

instalment of $1 fell due. Why

Macquarie Group has offered to

relieve some sof their units, it appear

it appear s about 150

shareholders will not be reed.

While construction continues

on Brisbane's $4.8 billion

airport link toll road, behind

the scenes there's plenty of

activity in sorting out the

financial future of Australia's

biggest infrastructure project. Today, investors in

BrisConnection were due to pay

the second of three $1 instalments

instalments on each unit they

hold. But the project has been

mired in controversy and court

action because of the large

number of investors who

unwittingly came liable for00s

of thousands or millions of

dollars. I think a lot of the

problems come through the

failure of other infrastructure

projects such as the cross-city

tin el in Sydney, the Lane Cove tunnel

tunnel and the Eastlink in

Melbourne that the traffic

figures haven't lived up to

expectation s and people are

automatically assuming that

will be the case with

BrisConnection. Last week,

Macquarie Group offered to

relieve small unit holders of

their investments and the attached instalment obligation.

The offer applied to those who

owned 50,000 or fewer units

which Macquarie says accounts

for 80% of BrisConnection for 80% of BrisConnection share

register. But it's believed

more than 150 investors fall

outside Macquarie's terms.

Investor Jim burns is the lead

applicant in a class action

against BrisConnection and

while he paid the instaultment

yoed on his, he argues that

other s need not. While that

action is current in my view

and in the view of and in the view of count any

unit holder has a perfect

defence or right of a stay

whilst that action is still on

foot. Mr Burns also represents

a US hedge fund which owns 15%

of BrisConnection. He says the

company is seriously

considering its position on

whether to pay the instalments. We're waiting to

see what happens in the court

next week. We will wait to see next week. We will wait to see whether or not the proceedings

are successful. In the lead-up

to today's deadline,

BrisConnection maintained a

consistent line. We have a

contractual obligation under

the under writing agreements

that's the under writing

agreements with Macquarie Group

and Deutsche bank who have

underwritten the next two

installments that when that

next installment is due on 2 29 April we April we as BrisConnection just

use our best endeavours to

collect these funds from those

installment holders that don't

pay their instalment. But it

remains to be seen how

aggressively the company will

pursue those investors who

cannot or will not pay. Every

time I speak to awe nit holder

I get a different story and we

get a different slant on what

the people believe when they the people believe when they read the product disclosure

statement. We would love to

hear from current and past unit

holders and talk to them first

hand about what they believe when they bought their

units. Last week, the high pro

file investor bolt bolt bolt

transferred units to a namely

trend in a transaction a

Supreme Court judge had

previously described as a

shame. But the d

shame. But the d sham. The ASX

allowed the trans transferral

to go through. And Mr Williams

has a problem and there's a

problem for BrisConnection.

Macquarie Group and Deutsche y

bank will have to make up any

of the shortfall. Babcock and

Brown Wind has completed Brown Wind has completed its

separation from its parent

company Babcock and Brown. At an extraordinary general

meeting shareholders athief f

ploed a name change. The group

will now be called Infigen

Energy. New incentive plans

were also approved for

executives. To the major movers

- Fortescue Metals shed over 4%

after they slashed their annual

sales forecast.

Returning now to ANZ's disappointing earnings report

as we heard profit came in

below forecast, the bank cut

its dividend and there's some

concern that future bad debs concern that future bad debs

may come in above current

provisions. I spoke with Mike

Smith late this

afternoon. Welcome to Lateline

Business. Hi. You say you're

not as pessimistic as the IMF

about Australia but is it fair

to say that you're not

expecting to see any turnaround

before the backend of 2010? No,

I wouldn't say it was the

backend of 2010. I think we

should see a turn should see a turn round halfway

through 2010. I do expect that

the first half of 2010 will be

tough. And it will be affecting

the SME and consumer sector but

it will depends very much on

how unemployment racks up

during this period. And when

you say tough, how tough? How

bad will things get before they get

get better? Um, these economic

downturns come in - normally

come in three part tanced first

is the high profile collapses

that we've seen already. That's

generally the top end of town.

Whereas business models that

don't necessarily work anymore

and you see the effect of that

and we have seen that already,

we're into the second part of

that cycle now where I would say

say the middle market,

corporate commercial, small

pizs are beginning to feel the

effects. And the third phase

will be when you will see it in

the SME market, the mum and

pop-type businesses and in the

consumer side. As I say, that

will be affected by the unemployment which is created

by the first two parts of the by the first two parts of the cycle. But you obviously have

your own forecast about how bad

things are going to get. If you

look at charges for bad debts

they were up 98% on the year to

$1.4 billion and you are

expecting those bad debts to

continue to rise for at least

the next two halves, so how

much worse? Well, I mean, I

think - say ing it's an

increase of 98% year on year is increase of 98% year on year is

a little bit confusing. If you

look at the trend half on half,

we're up 5% ob the last half.

The number of about 1.4 to 1.5

billion per half for the four

halves is probably whey'm

calling at the moment. So this

is the sort of number we can

expect until the second half of

2010 when we should see 2010 when we should see the bad

debt charge begin to fall

off. Any chance you've

underprovision s There's always

a Rick of that. In my bones I

feel we've got it right. If the

economy goes into a situation

which is much worse than we

presently think, then obviously

bad debts may get higher. But that is not what I believe at the moment. I think

the moment. I think we're in

the right ball park. In your

words you got a rude shock in

March when bad debts spiked.

Why didn't you see that coming

and what's happened since? Um,

I think it was really a

reaction that a number of

businesses had got through the

Christmas period OK, and then

they'd seen a very marked

slowdown in February, which slowdown in February, which

took a lot of people un awares.

Therefore March, there was

quite a significant hit. We're

talking about middle market

here. That has not continued in

April. April has actually been

OK. So maybe we're over egging

it a little bit. But amerring

on the side of caution at the

moment in terms of plo projection. Why no mention today of cash earns? today of cash earns? This's a

prede par tur from recent

results presentations? , no we

have put cash earns in. What we

have done is put underlying

earnings, cash earnings and

strategy earnings. There were

no cash earnings to released in

the press release. You had to

go to page 29 of the

presentation. Basically what we

focus on there is underlying

earn together with earn together with statutory

earnings. Basically most

international banks are now

Moing to an underlying earnings

bases because the various

accounting rules an regulation

s around things like hedging

instruments and derive tifrs

are creating huge imbalances on

the other side of the balance

sheet. So the cash earning

doesn't really represent what

the true state of the the true state of the company

is. I felt that underlying

earnings felt far more and that

was the feedback we were receiving from the

shareholders. Give yoeb u've

called ate credible result and

how you believe you're

positioned, are you surprised

by the market's reaction? Your

share s funnished down in a

steady market. All the banks

were off. We got lit a little

bit more. There was a lot of bit more. There was a lot of

confusion about the collective

provision from a number of

ablingists. And I don't really

understand why. I think it's a

fairly easy concept. If you

look at our own provision

numbers terms of a%age against

risk weighted assets, 1.6% is a

good coverage ratio. The fact

that you move one between collective provision collective provision and

individual provision when you

actually know about certain

impaired assets is in the

normal course of banking and

you can't keep both. If we can

look at Asia, now 15% of Professors heading durds your

target. You have no doubt about the Asia growth

story. None. And a China, has

China turned? Yeah, I China turned? Yeah, I think. I've always been an

optimist as you know on China.

I've always called it a little

bit ahead of the rest of the

market in that I felt that the

turnaround in China has lapped

some time ago and everything

that I - happened some time ago

and everything that I'm

beginning to hear now is that

really is the case. Things are moving

moving very positively again. I

think everybody had managed to

focus on ex ports. Ex ports sct

kth for 17% of the economy.

There San awful lot more going

on in China than just ex

ports. Against that background

and how you see the future

after toff region, how

important is it that you get

your hands on the Asian assets

of the Royal Bank of

Scotland? Well, as you know we Scotland? Well, as you know we

are one of many parties looking

at those assets . But I can't

really comment further on

that. If we can fin British we

started - you say that we are

likely to see a turnaround

around the middle of 2010. When

recovery does come, will it be

swift or will it be gradual

sning I think it's more likely

to be swift and I think that we to be swift and I think that we

will actual ly start to see

particularly off the back of

the growth in Asia some real

opportunities. I suspect it

will actually start to kick up

quite fast. What about the

broader economy? Yeah, I think

it will have an effect across

the whole economy. I am quite

optimistic that once it starts

to move it will start to move it will start to move

fairly quickly. Thank you for talking to Lateline

Business. Ali, thank you very

mump. The head of Coca-Cola

Amatil has questioned the

financial logic behind Kirrin's

3.3 billion dollar bid for Lion

Nathan. A) luncheon in Sydney

today, Terry Davis said the Japanese company might be

paying too much for the shares it doesn't

it doesn't already own: They

paid an awful high premium,

there's a lot more capital

employed this their businesses

now and they will have to make

a return on, that they will

have to find ways of making a

return. Mr Davis says the

Japanese could be re-create ing

the 1980 scenario where they

paid too much for land they

were looking to gop on the gold

koef and in Hawaii. Up to 140 koef and in Hawaii. Up to 140

workers will lose their job at

the Peters ice cream factory in

Perth. The company has been

weighing down group earnings. Employees at

Fonterra's dairy and ice cream

factory were called to a miting

with management this afternoon.

Less than aven hour later they

emerged with the bad news It

makes you sick. I've worked here 11 years here 11 years and we seen it

come ing. Disappointing,

believe me. The company is

selling its Australian ice

cream brands - Peters

Connoisseur and Cadbury. Up to

140 workers will be made

redundant. I think it was a

very sombre food as we've

explain tauld way through this

we're going to make sure we do the right the right thing by our

employees . Peters ice cream

has been produced in waution

since 1929. Fonterra brought

the brand several years ago.

The union has accused the

company of not fighting hard

enough to keep the ice cream

business alive. They've lost a

lot of market share and now

they're giving in. I think it

50 it's a load of bollocks we 50 it's a load of bollocks we

have invested. There's been a

whole range of new products. Mr

Tedesco says the ice cream

industry had become sick and it

had to be sold off to save the

Brown's milk business. Today's

announcement does not affect

the daily milk business but the

company is reviewing some of

its milk operation and won't be

ruling out the possibility it

will be sold. We're reviewing

all our options as you do from

time to time in any

business. New owners necessary

- Nestle and Buller plan to

manufacture all three brands in


Before we go a look at what's

making news in the business

section of tomorrow's papers.

The 'Herald Sun' says Chinese

companies are eyeing big

investments in Victoria's electricity sector. The

'Australian' leads on ANZ's

weaker than expected

weaker than expected profit.

The 'Australian Financial

Review' examines the same

story. And the 'Sydney Morning

Herald' looks at Lachlan Murdoch's

first major media investment in

Australia. That's all for

tonight. As I Lee you the GDP

numbers out of the US

notwithstanding the Dow has

opened up 70 points. The FTSE

sup 52 points or 1.2%. I am Ali

Moore. Goodnight. Closed Captions by CSI

PHONE RINGS ANSWERPHONE: 'This is Vincent. Please leave a message. If you want Cathy, she doesn't live here any more.' 'Vincent, it's Cathy. Again.

I need to collect the rest of my things. Would you rather I did this when you were in or out? I'm not being funny, I'm just asking. Call me.' I don't want you to come round at all.

ENTRYPHONE BUZZES Yeah? It's Beth. I'll be a couple of minutes. I hope you've got a handbag that matches my shoes. Nearly.

Hi. You coming up? No. I'm going to wait down here.

Leave it open. Cathy comes home. Cathy collects her things. You didn't call me back. I'm a busy man. We need to talk, Vincent.

PHONE RINGS Gary? 'She's in the shower.' OK? How many people take a shower at home before going swimming? I don't know. How many? Nobody does, because she's not going swimming, is she? 'We don't know that.' Gary, I know it's difficult, but... Try not to think about it. I feel sick. You'll know something in about an hour. Or so. 60 minutes. It's brown. It's the new black. Come on. Let's get a move on. She's in the shower. Is everything OK? Yeah.

I love matrimonials.

They make me feel well-adjusted. I saw Cathy going up. If you want, I'll do this on my own. No, I'd rather work than talk to the old Bill.

Besides, I want to know what becomes of the broken-hearted. Come on. I won't be too late. Got my key, just in case. You're only going swimming. 'Yeah. And for a drink afterwards. I told you. I did.' I told you. Don't get angry. See you later. Be careful.

Here she comes.

Here we go. Vincent. She's changed. She's going nowhere near a pool.