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The tobacco evidence big companies will stop plain packaging of cigarettes.

cigarettes. Far from being

the innocent retail campaign

it pretends to be this is a masterminded and run to the campaign developed,

finest detail by the Phillip Morris company.

Morris company. Good evening, welcome to

'Lateline'. In a few weeks Parliament will resume for the first time since the the the first

election and we will get to

see how this new minority Government place out in

practice. Both sides of

politics are finalise in

their front benches which

will have to accommodate two

high-profile former leaders.

I'm sure Kevin Rudd will end

up with foreign affairs. That

was the deal that was struck

during the election campaign. Department will probably be

horrified but in some ways it

gives him a really solid

piece of turf to work on

where he is probably not going to be as disruptive as

he might be if he was in a

domestic portfolio. I would slot Malcolm Turnbull into

the shadow finance or

Treasury portfolio to send a

message the performance of

Joe Hockey and Andrew Robb

was not up to scratch. You

have Malcolm in the tent you

environment where a split of cannot have him in

climate change will emerge so

put him where his brand is

the strongest in the economy.

Joining me are Laura Tingle and George Megalogenis. That

discussion coming up but

first our headlines - A

burning issue. The on again

off again plan of a American

pastor to burn copies of the

Koran. Blazing inferno,

hundreds of homes in San Francisco destroyed by a fire

fuelled by a gas leak. wars. Having made peace with the environmentalists Gunns

has a new target in its

sights. Rob Oakeshott has rejected an offer to become a rejected an offer to

minister in Julia Gillard's

minority Government. He

described the proposal as

attractive but in a reference

to the barbs that have been

flying his way since he put

his support behind Labor he said the role would be better

served with someone with less

thorns on him than he has. position in the Gillard The promise of a ministerial

Government was a tempting

prospect for Rob Oakeshott

but ultimately not enticing

enough. For a number of

reasons I have declined that

offer. But certainly it was

an offer that was appreciated

and I will keep it short, not

17 minutes. It was a popular

decision among voters in his

seat. To take on something else means he has the police

rather out on something and I would

rather him look after us. I agree with everything he has country independent was done, I'm fine with it. The

offered the role of Minister

for regional Australia. He

would have been allowed the

sit in Cabinet while

maintaining voting rights on

the floor of the Parliament the

but says accepting the

position would have provided

ammunition to his critics

including his former

colleagues in the National

Party There are some

organisations still in

Parliament that may want to

bring the package down via me

and if I wanted to - if I am

genuine this package is important then I'm it is a judgment call again,

I'm hoping that it can be

bought home by someone with

potentially less thorns on

them at the moment than Independent Nick Xenophon me. South

says he has made the right

call. I have no doubt he

would have been a very cape

in and competent Cabinet

been Minister but would it have

been difficult with his

electorate. He needs to win

his electorate over as to his decision and being inside Cabinet would make it more

difficult. Rob Oakeshott says

the Coalition offered him a

but front bench position as well

had lobbied to become a

minister in the state Labor

Government during his time in

the NSW Parliament. If I wanted to be a minister I

would have stayed in the

National Party, I was a National Party, I was

shadow minister. I would have

hidden in the comfort of a

mythical party. That story

today is the currency of the

faceless men. Rob Oakeshott's

decision clears the way for

Julia Gillard to finalise her

front bench. A decision is

expected as early as tomorrow with Kevin

with Kevin Rudd widely tipped

to be offered foreign affairs but the Prime Minister has

and defence portfolios. vacancies the fill Ting

Defence is likely to be taken up by the current Foreign

Affairs Minister Stephen

Smith while Chris Bowen is

tipped to move into finance and there is expected and there is expected to be

changes to the climate change portfolio the allow Greg

Combet to be promoted into

Cabinet. In August 'Lateline' revealed the existence of a tobacco

against industry-funded campaign

against a looming ban on logos and branding on cigarette packets. From Sigmund will be sold in plain packages

We independently verified

time lines and crosschecked the content against known

event. We checked phone numbers, emails, bank

accounts and media interviews and rang all the companies mentioned. Only one would

talk to us t civic group a public relations firm

employed by Phillip Morris. involved in the campaign None of

would be interviewed. Peter

Lloyd reports on the tobacco

files. I do want to make it

clear the alliances in this for the long term. How deep

depends are the pockets? Again it

depends on how long the

campaign runs, however we do want to see the policy overturned. A month ago

Cheryl Moon was the public

face of the previously

unheard of Alliance of Australian Retailers complaining that plain thousands bad for its members,

thousands of ordinary

shopkeepers. It is harder

to see them. They are not

identified. They look similar. If I'm serving customers it is difficult to

find the right product for

the customer. Reluctantly she acknowledged the alliance was

getting help from tobacco

companies. How much have they emailed so far? Industry not

received any money via email.

There is... There must be an amount you about. The alliance has come

together the talk about the

policy not about the funding

policy not about the funding proposals. But the funding

had already gone well beyond

proposal stage. A week on the day the alliance was

set up it became the instant

beneficiary of millions of

dollar from the world's top cigarettes manufacturers.

Here is the first document to become public that shows precisely precisely how generous big

tobacco was. Imperial Tobacco

Australia gave a million.

British American Tobacco Australia chipped in $2.2

million. From PML Phillip Morris limited a slightly

smaller amount, $2.1 million. The campaign is

driven and directed by

Phillip Morris and clearly

being supported by Imperial

Tobacco and the funding looks

to be market share driven. Phillip Morris is one of the producers of cigarettes. In

Australia its corporate base

is in Melbourne. Back in May

before the birth of the

Alliance of Retailers its

core from affairs manager was

seeking advice from a

lobbying and public relations

firm called the Civic Group. The

The discussion was about managing a campaign to stop

plain packaging laws during the heat of the federal

election. Phillip Morris

gives hundreds of thousands

to the Coalition in political

dollars. The Civic Group is based in Melbourne's Collins Street, one of its founding

owners repd that the campaign owners repd that the campaign

to stop plain packaging of

cigarettes should be - And that

that it should - But Jason

Aldworth was worried about working for a working for a cigarettes company and the impact - company and the impact - Significantly the proposal

recommended using third parties groups to sell the message.

The Alliance of Australian Retailers was born. The alliance is

supported via three to be to

be companies. I again depends

on how long the campaign

goes. There is no single

number, it is about how long

the campaign is expected to

last. Cheryl Moon's unsteady performance prompted some goal seeking. The Australian

Retail Alliance has funding

support if the three cigarettes manufacturers in Australia. We are open about

that. It is not a secret. It

will be on all our web sites,

it will be on all the media that that is out there. The

Government plans to put all

cigarettes in plain packets..

This was rejected in the UK

and Canada. Two days later advertisements to stop

generic packaging from the airways.

airways. Plain packaging, it won't work, so why do it? At

the end of August Civic Group

sent this invoice Morris, top of the bill a handsome charge for one month's consulting of the off

camera I spoke to one of the

owners of the Civic Group. He did not deny were genuine and confirmed

that Phillip Morris is paying

his company $200,000 a month

as a retainer to help manage

the Retail Alliance. The man

from Phillip Morris has no official connection with the

Alliance but the wrote to him seeking approval

on how the phrase responses on messages received on the

Alines web site. Here he

seeks permission for the

Alliance to speak if a

reporter -

reporter - In another email Chris Argent expresses

frustration that the Alliance

failed to respond to an

interview by Glen Wheeler. I went to Phillip Morris

to try to speak to Chris

Argent by phone, emill and in

person but to no avail. It

seems according to his he is not even here.

he is not even here. One

medical expert recommended plain packaging laws. He believes the documents believes the documents are possibly the most devastating

tobacco industry leak ever seen in Australia. What this

tells us is that far from being the innocent retailer's

campaign it pretends to be

this is a campaign that has

been developed, masterminded

and run to the finest detail

by the Phillip Morris company. This is an

international company and it becomes so clear from the

documents it has been run by

the Phillip Morris company in

association with British American To be to be and

Imperial. The Alliance of

Australian Retailers exists

on the web but in the real

world there is little

evidence of its bone find

ysz. Until two days ago its

registered address was in

this building a residential

tower block in central Sydney

the owner none the owner none other than

Cheryl Moon. She stopped

speaking on behalf of the

Alliance a few days after

speaking on 'Lateline'. The

furore has overshadowed the

campaign yet Phillip Morris

is forming ahead. This is the

latest contract between the

company and the Civic Group.

It is not signed but phase 2 of the campaign. A new advertising blitz is

scheduled to begin this weekend built around the anticipated higher audiences switching onto television

coverage of the AFL and rugby

league finals matches. One

email talks of a budget of

$3.97 million. It looks to me as though this campaign

has only just started. That we

we have seen a spend of $5

million on the first phase

now there is another $4 million

phase. I think this shows us

how desperate the tobacco

industry is. They are willing

to throw millions an millions

as much as it takes into

opposing plain packaging. There is also

evidence that the US and

British parents companies of

each tobacco company are

paying close attention to

what happens in Australia. At

Phillip Morris last week

there was an international

phone hook-up, one of those

on the line was John Skruggs a vice

company. The return of the Gillard Government means

Labor MPs can expect to hear

from Phillip Morris. The

Civic Group's representative said -

Other lead ing lights of the Tobacco Control Lobby

will use tonight's revelation

to push the AC kr.d C to take

action the advertisements and shut down

the campaign to stop plain packaging F that happens

Phillip Morris will almost

certainly head to the High

Court to plead that it has

the right to protect its

brand. The statement the 'Lateline' British American

says it continue to proudly

support the Alliance of

campaign calling for

evidence-based regulation an

abandoning the proposal to

introduce plain packaging.

Phillip Morris says there is

nothing new about the nothing new about the fact

that Phillip Morris supports

the efforts of the Alliance

of Australian Retailers

urging the Government not to

proceed with the proposal for plain packaging. The

documents seem to have documents seem to have been obtained by illegitimate

means. Imperial Tobacco did not return 'Lateline'. Lawyers for the

Civic Group contacted the ABC

last night to express doubts

about the veracity of the documents but it should documents but it should be

pointed out that when Brett

Miller did not deny the documents authenticity. The full statements from the tobacco companies will be

posted on our web site. It

was on, off, now it is suspended. It seems a deal

may have been reached which could prevent a planned

protest over the burning of

the Koran by a pastor in an obscure parish in Florida.

But there is still some

confusion. His church boasts at most0 followers but the

world's media created a crowd as the attention remained

focused on Pastor Terry Jones

and his supporters and

detractors were not for Bible is not a good thing but

if it pisses him off I'm all

for it. Pastor Terry Jones

is not doing anything for

Christian values. He is doing

this for self promotion and people need people need to stand up and

let him know this is

unacceptable. But the more

often Pastor Terry Jones

spoke the media the more

confusing the saga became.

Initially he cancelled his

man to burn hundreds of

copies of the Koran believing

he had won a guarantee over

the sighting of a New York

mosque The Imam has agreed to move the mosque. We have

agreed to cancel our event on Saturday. But the Florida

Imam doing the negotiating said all

said all he promised was a meeting meeting with one of the organisers of the

development. What was offer

from New York is a commitment

for a meeting, a three-way meeting

meeting between myself,

Pastor Terry Jones and the

Imam to adress the mosque t so-called mosque at 'Ground

Zero'. I communicated this to Pastor Terry Jones the Imam and his staff are

willing to meet with us and

to consider his request to relocate the mosque. The

pastor seems to have

interpreted that as saying

the that the mosque will be

built? The organisers of the

mosz be in New York put out

statement saying they were

We are in a state of

limbo. The FBI arrived

unannounced at the church

keeping secret the reason for

their visit. There will been more global protests this

time in Pakistan and the

state development issued

travel warnings to US

citizens. All our em

convened emergency action

committee meetings to assess

the possible threat. The

President added weight to the concerns already raised by

his four-star general. I just want just want him to understand

that this stunt that he is

talking about pulling pchls this stunt could greatly

endanger our young men and

women in Iraq and Afghanistan. And the Secretary of State Robert Gates picked up the phone and asked Pastor Terry Jones not

to do it. He will get his 15

minute of fame as a pig not

no doubt. But the bigger

question is what is happen wing the relationship with American's Muslim population.

There have been 8

anniversaries of the

September 11 attacks and have

been approach would all the

solemnity they deserve but a

confluence of event has

ensured this anniversary will

be remembered for entirely different

to the uncertainty about the

pass for's plans thousands of

angry Muslims have taken to the streets across

Afghanistan with some

threatening the attack US

bases. One was shot dead and

several wounded outside a

German-run NATO base A

massive fire has burned

through suburb in San

Francisco killing 6 and

injuring dozens. Hurn drdz

ever homes have been damaged

near the airport many reduced

to smouldering krin years. have been caused by the

rupture of a large natural gas pipeline.

Having survived the

election and forming a minority government by the

thinnest of margins the next challenge Prime Minister

Julia Gillard faces is how

the make it work. To discuss

this and the unique week in

politics I'm joined by law

and from Melbourne by George

Megalogenis author and journalist with Australian enough.

Welcome. Laura Tingle has Rob

Oakeshott made the right

decision in deciding not to

join Julia Gillard's

ministry? I think he has made the right decision. I think

Labor would have absolutely

eaten him up and spat him out

before the next election if

he had joined the ministry. That Regional Development

portfolio is going to be a

political nightmare whoever

takes it on an I'm sure would

it have been the hay were's advantage to have an everything that went wrong

could be blamed on him. But

in the meantime would it have

effectively given them an

extra number locked in extra number locked in no matter what to arrangements

were about him remaining an

independent would it not have worked in practice. George Megalogenis what do you think of that? Do you think it makes Julia Gillard's choices

for her front bench easier or harder to make? Harder

because she has one more

person the accommodate Rob Oakeshott set himself up as a rural independent and

voice of country Australia

sitting in the Cabinet would

have cooperated him to the Government. He would have been part of too many secret

sir yell processes to be able

to be the Member for Lyne

wanted to be so I think it is a

a food call. The other thing

is this arrangement will eat

into everybody's time as it

is and taking the extra

responsibility of a super

portfolio like this one but

pretty much has the choose who to write a cheque

to first is a bit too much to

ask for someone who has been

in the Parliament only 18 months. How optimistic are you or otherwise about the workability

workability of this

Parliament, George

Megalogenis? This Parliament

is divided in a way I have

never seen before. And I have

been through all alegs. We

have the mining states bring

a super majority for Tony Abbott and they almost kicked

the Government out in its own

rights. Victoria has a

majority a comfortable

majority in NSW and add the

two rural independent and

they are looking good in NSW. The majority in South Australia and four out of

five seats in Tasmania so you

have the southern v,z mineing

state vibe in the Parliament

which if you think it through Tony Abbott is almost compelled the say no as

Opposition Leader on behalf of his constituents which is essentially the mining states

on the resource rent tax and climate change. Consider Julia of the reasons the Labor

primary vote collapsed was

the lack of belief on the

issue of climate change so to

look after her base in the

left, her metropolitan base in the southern states, Melbourne and Sydney in

particular, she needs to move

forward to borrow a phrase on

this very issue. I'm

declaring a moratorium on

that phrase ever being that phrase ever being

uttered again on on this program. The thrill of the last few month will never just because the last two

independent have align would

Labor. Of the split that

nearly brought down Kevin Rudd and the Labor Party has been of the house and it will be a very interesting time. Laura

Tingle what do you think of

all of that? I do not think

we know a lot about how it

will work but I think the

constant themes have been

that as George says Tony

Abbott has no choice but to prosecute been running since the

election about legitimacy

which we have seen this week. We have Chris pine talking

about creating mayhem in the House of Representatives so

you will have that going on.

and Labor going to the areas

that were talked about but

creating an atmosphere about

who will vote this way and who will vote that way. I

think the independents in general have equipped

themselves well. Probably Rob

Oakeshott damaged his

Oakeshott damaged his

standing this week but we

will have to wait and see.

The other question is what

legislative agenda are we

going to see teen now and the

change of the Senate in July.

There is not a lot of

pressing legislation but the

Coalition has indicated it will

will create havoc with

private members bills and

effectively to create a lot

of any and sense of chaos.

One of the crucial things for

everybody and particularly

the media is go to be trying

to differentiate between what

is going on underneath in all

of this noise and the sort of

sense of static that people

are not used to. We will

have over the next few days

decision boss who is going to

be on the front bench for

each side and there are to high-profile

high-profile leaders that

need to be accommodated Kevin The Laura Tingle Kevin Rudd

is expected to take on

foreign affairs or defence.

How that is going to work

given the event of the past

few months? I'm sure Kevin Rudd will Rudd will end up with foreign affairs. That was the deal

that was struck during the

election campaign probably. I think it is probably

something that can work well

if Kevin Rudd chooses to be

good the, if we can put it

that way. I think his area of

expertise a bit like Hillary Clinton he can go off and run

the world stages as he would

like, run his own agenda. The

Foreign Affairs Department will probably be horrified

but in some ways it but in some ways it gives him

a really solid piece of turf

to work on where le is

probably not going to to be

as disruptive as he might be

if he was in a domestic portfolio. George George let me ask you George Megalogenis let me ask you about Malcolm

Turnbull. How can Tony Abbott

make effective use of Malcolm

Turnbull protecting his own turf being aware of Malcolm

Turnbull's ambition? This is tarnished by the trickiness of the costings not

submitting to the charter of

budget being found with a $10

billion funding hole after

the Treasury got submitted. I

would slot Malcolm Turnbull

into the shadow Treasury or shadow finance portfolio to send a mess that Tony rob and

Joe Hockey were not up to scratch. You want malt come

in the tent you obviously

cannot have him in the environment where the split on climate change will Rio

Tinto emergency so put him

where his brand is the strongest on the strongest on the economy.

Does this undermine the

stability? It might. This

will be diabolical for both side. Once the Parliament is

hung and you have to former

leaders wanting to serve in the next term with

longer-term ambitions they

have to be accommodated. The

numbers on the floor from too

tight to be putting people off at

off at in stage. Laura Tingle Julia Gillard told Julia Gillard told her partyroom this week Labor

needs the renew its purpose and articulate what

it stands for. How do you do

that when any sort of agenda

it promotes is now basically

held hostage by Greens and

Independents? I think what

you try to do is a few

things. What you have to do - yes they

yes they do have to address

this question of what they

stand for but I think what

they also have to do is look

at the issue of competence in

the sense that the Government

is in control of things which

is going to be hard in among this noise. when you have the Greens on

one side of you and the

Coalition on the other? I

think what you try to do is

do what Julia Gillard does on her good days which is run

the consensus argument but

try to make sure you try to make sure you are running the agenda rather

than other parties. I would

give you an example of that.

The mining tax issue early in

the week where there was a suggestion there were disputes with with the independents about what had

been agreed about the Henry

Tax Review. What the

Government is saying is we will will be continuing to work on

what we were working on which

is getting the legislation

for the mining tax up. We

will discuss it with you more

than we previously would have

been before Parliament but we

will not say "We give up and

will you tell us what to do

on the mining tax please Bob Brown". George Megalogenis

you have written this week politicians politicians are placing

greater emphasis on polling

advice than policy advice. Do

you envisage that changing

soon? If one poll shows up

and the other down maybe not

but I expect to make this minority Government work for

Labor and it does work for

Labor it is because they are

pushing new ideas. For the Coalition to differentiate

they will have to come up

with something other than no so I think

so I think the policy advice

might start to reassert

itself. This election picked none of none of the above. It gave

Labor a decent kick in the

backside but the punters also

said that Tony Abbott was not

ready to govern so if one

side is not governing

and the other is not ready to

take over you would think

both have a problem on poll

civil obviously they did not pick this result between them

because they aimed for a disengaged centre that does

not ex-ist. There is not a of

enough people in a enough people in a redneck, outer suburban mortgage belt.

That voter does large enough numbers to carry

one or other over the line.

They will have to go back to

first principles have a good

look at their base and start

to look at issues

people so I expected we will

end up in a happier place

than the first firm, not so

stable but happier in terms

of the ideas contest. Laura

Tingle you wrote the Labor

minority Government is trying

to figure out to respond to

the ferocious and campaign against its

legitimacy by News Limited.

Elaborate on that for us. I

think there has been a long history of tension particularly

particularly with the Australian, with Kevin Rudd,

and it was always seen as

annish u ewe with the Australian rather than news limited. The News Limited tabloids have seemed to have

escalated their aggression towards the Labor Party

during the election campaign but it has been the

the attacks on the yesability of minority Government as an idea, the attacks on the independents and the which have made people think

this is not going to go away.

We are not quite sure why

this is hacking but we have

to decide whether we confront

this or whether we just let

it go through to keeper. I

suppose the interesting thing is I think there are

interesting issues for news limited and the Government

because there are

the government will have to take which have a take which have a direct

impact on news and it the is

a very big elephant room and I think we do not

really know how that is going to play out.

We have Bob We have Bob Brown talking

about the way News Limited is

operating and he will not cop

it any more. You are a news

journalist do you have

thinking to say in response

to Laura Tingle's

to Laura Tingle's remarks? This was Kevin Rudd. Kevin

Rudd let not just the Australian get but everyone. He had a

falling-out with our newspaper, his department head, his Cabinet, backbench

and eventually all of Queensland and most of the Australian electorates so

this idea of a stoush between the newspaper and a Prime

Minister a lot more was in the former Prime Minister's

head than it might have been in News Limited's head. It

was a pretty willing election

campaign and I think what our

paper did and I would start

by the judgement call we made

it was a pretty ordinary

campaign from the do leaders and I think we pushed it hard

on policy. We got a pretty good follow around the

country. The thing that

concerns Labor ministers from

what I'm told is not what is

in our paper but the fact the

ABC will take a cut-and-paste and broadcast our line across

the country. These debates

are very interesting for some

but they are not on topic. Yuill jewel has lot more

important things to important things to worry

about than what our editorial

says. We are are owl of time

law an George Thank you for joining us. Thank you Leigh. What sort of economic

outlook does this new minority Government face?

Pretty good. We had the

Reserve Bank say after its

monetary policy decision that

growth is about trend, that

the inflation is in the

target band and the uncertainty overseas is

certainly staying its hand

terms of rates rises plus the

unemployment rate 5.1% we had

a very impressive3,000 46 plus plus full-time jobs added on the official estimate on the

ABS in the month of August

that is 11 of the past 12

month we have added full-time

jobs to the economy looking

good but offshore there are

enormous risks a beyond would

have to say it is looking

pretty shaky offshore sh. At

pretty shaky offshore sh. At are the requires being and growth which has been

rebounding. The competition

has been weak. The Reserve Bank

Bank acknowledged that this

week, is set to weaken because the Australia herty

measures will weaken. The US

growth has been looking shaky

and week. The composition has

been very weak with inventories, building up of

strongly driving at weak consumption, lending is still constrained so we have the possibility of growth

stagnating and the two major

economic blocks outside of

Asia which is fine. Then there is the

banking system. There is

still enormous problems in

does closed in the banking dclosed i does closed in the banking dclosed the banking system. The piece by the 'Wall Street

Journal' was good but not

surprising because the

stressed tests done on the European banks were not seen

as credible by many people in

the markets and people who

have actually looked at the detail which is what detail which is what the 'Wall Street Journal' did

have found it is under

stating exposure to sovereign

debt by tens of billions

possibly more so that is one

problem but the other problem that is the rules on reporting reporting were deliberately

relaxed for banks in Europe

and the US and in Europe in particular there is an

unknown quantum of exposure to debt in the private sector. Now pretty much any

risk or shock could bring this undone innings time. See

this undone so it will be innings time. See you next week. See you. Gunns

Limited admits it has lost

the fight on logging native forests with most Australians supporting the environmental

lobby and says it intend to become a plantation-only

business but the company has

made new enemies announcing it will slash the price it

pays sawmills. Gunns says the

demand of woodchips is the changes. Angry sawmillers

are planning to withdraw

their support. A new chief at

the top and a new direction

for one of us's biggest companies, guns limiteded

chief shocked a industry

conference in Melbourne

saying they had lost the

debate on old growth logging.

His company went in the

retreat earlier in the week

when it pulled out of the F

Tasmanian association a lobby

group it largely fund. time had come to get out of woodchiping native for

rests.. this may mean

transitioning to plantations

but move we must for but move we must for the

conflict must end for too many people have been

financially and emotionally

injured in the Australian

forest wars. At the

conference the head of guns

limiteded behind ever hinted

at the cuts to come blaming a reduced demand Forwood

chips. The outcome of the

changes has seen the natural

forest industry seriously

and influence in the end markets. He says guns

limitnow needs to sell to

non-Japanese markets at a

lower price and that cut has

to be passed on. As he gave

his address the company

sawmill customers in Tasmania

received this letter. It offers

offers reduced price for

residue woodchips from $71 a

ton to $50 and if they do not

step the offer they have been

told the make alternative arrangements from arrangements from next

month.. all the sawmillers

have support Gunns right through and now guns

limit #1rd moved away from

the support inform the

sawmills. This family

business will take a 30% hit

to its gross income and 16 jobs may have to goes I

have been here for 60ers and I'm very sick about it. In

the south one man predicts

the same saying sawmillers have come to rely on the residue of the woodchips and

the decision to

puts the future of his

50-year-old mill in doubt.. I was wrong they had a monopoly

on the industry

find is a fact of life and

they have sort of left us out

there with no support, no

notion. We try to make value

out of the lowest off cuts

but we need to be able to do

that profitably. If we that profitably. If we can't then the mills will be

unprofitable. The company's

move to native forests its to plantations is squeezing out

other players. Big

and environment making decisions

decisions that will have

ramifications for all the

small sawmillers thin state.

The outcome will be the loss of hundreds of

of hundreds of jobs. The State Government was not

commenting on Gunns Limited

decision but it is confident

the Federal Government's $20 million assistance package with help sawmillers. The Federal forest minister Tony

Burke says a meeting to work

out the detail of the offer

will happen next

month. Partly cloudy with

morning showers in Melbourne.

Late showers for Perth. Fine

and mostly sunny in the other

capitals. That is although.

If you would like to look

back the discussion with

Laura Tingle and George

Megalogenis or review our

stories or transcripts visit

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on Monday day. Enjoy your weekend. Goodnight.