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Live.

Tonight - an economic

doomsday scenario earns a quick rebuke. Gross economic irresponsibility. Policy on the

run. Shooting from the lip.

Back to square one on the

whaling issue. A peace prize

for a President at

war. Compared to some of the

giants of history who've

received this prize, my

accomplishments are slight.

And the dancing mouse that's

winning new admirers.

Good evening. You're watching

ABC News. Barnaby Joyce's days

of provocative free-range

policy making appear to be

over. The outspoken coalition frontbencher has been told to

toe the line on economic policy

after a day when he ran the

risk of spooking financial

markets. Senator Joyce had

raised doubts about the

abilities of State Governments

to repay their loans. The Prime

Minister said it was

irresponsible. A Liberal State

Treasurer said it was

unhelpful. And Tony Abbott told

his finance spokesman to show

more discipline from now on.

From Canberra, here's political

correspondent Greg Jennett. The

hybrid mix of taxpayer dollars and foreign investment fuels the Australian car industry.

Still has ... A lifeline for manufacturing that neither side

of mainstream politics has ever

severed. My wife said to me

years ago, where can I buy an

Australian-made hybrid? But

where Chinese investment's

concerned, the opposition's new

finance spokesman is far less welcoming. We can't have

another government owning

Australia. Just as he

campaigned against chin co's

bit for Rio Tinto from the back

bench, Barnaby Joyce has called

for a rethink on Chinese state-owned investment in

Australia's minerals industry.

It didn't last past his first shadow Cabinet meeting. What

you've always got to do is to

apply a national interest test.

That's been our position in the

past. It is our position now.

And it will be our position in

the future. Barnaby Joyce's

warnings of financial calamity

are more enduring. He has

wondered out loud about the US Government defaulting on its

loans. What the Americans are

worried about is debt and the

levels of debt. And to cap it

off, suggested State

Governments could be at risk of

buckling under their debt, too.

states have the capacity to We have to ask whether the

repay that. I would say in some

instances they do not. He told

the 'Age'. To have the finance

spokesman of the alternative government of Australia saying

that one of our States could

default - this is gross economic irresponsibility,

policy on the run, shooting

from the lip. Coalition

colleagues were equally

unimpressed. Can States repay

their get? Yes. If States were

under stress in repaying their

debts the ratings agencies would reflect that in their

ratings. Barnaby Joyce has got

the message. Tony Abbott left

him in no doubt his days of

policy free-ranging ended when

he ended his first shadow

Cabinet meeting. Shadow Cabinet

solidarity starts now. It's

kind of convenient. Every time

I can get a difficult question,

I can say that's an issue for

shadow Cabinet. A cowboy with

less room to run. The arrival

of the 5 3rd boatload of asylum

seekers this year has pushed

the immigration detention centre on Christmas Island

beyond its capacity. The boat

was intercepted after sailing into waters just off Christmas

Island's port. It was the

second boat to arrive in two

days. Five large tents able to

hold up to 160 people have now

been put up until demountable

buildings are ready at the end

of the month. It's not a

perfect world. We just have to

deal with this as each

practical step along the

way. This is about a

government's colossal policy

failure. The answer is not to

put in more bunk beds and put

in tents. The answer is to stop

the boats. Almost 2,500 asylum

seekers have arrived so far

this year. A war of words has again broken out between

Australia and Japan over the

Japanese whaling program. It

was hoped Japan's new centre

left government would scale

back the whale hunt. Instead

it's defended the policy and

asked Australia to respect it.

The Prime Minister says it's

unacceptable and Australia will

push ahead with international

legal action if it can't resolve the dispute

diplomatically. The Japanese

whaling fleet is on its way to

Antarctic waters to begin its

annual hunt for minke and fin

whales. In hot pursuit is the

Sea Shepherd conservation

society. The Steve Irwin is

three days into its voyage. A

second boat, a high-speed

futuristic trimaran, finally

left Hobart today after being plagued by communication

Southern Ocean seems certain, problems. A showdown in the

with Japan's new Foreign

Minister saying there will be

no change to his country's

whaling policy. We do not think

there is a need for a policy

review at this time. And it

was food not science that the

Foreign Minister used to defend

the policy. We have a tradition

here in Japan where we have

been eating whale meat. It

would be a different story if

those species were endangered

speesh sees on the verge of

extinction. The argument

didn't go down well with the

Prime Minister. Our policy is

clear-cut. We don't accept

Japan's premise in terms of

so-called scientific whaling.

The Federal Government is still

hoping to resolve the matter

diplomatically but if it can't

... We will use the resources

of the Australian Government to

deploy an international legal

according to the action. Empty threats

opposition. They must set a

deadline for Japan to cease

whaling or carry through their

promise. Greenpeace wants the

government to deploy another observer ship to the Southern

Ocean to keep an eye on the

hunt. Japan is calling for calm

and less emotion.

The gloves are off for the

United Nations climate talks in

Copenhagen. China is blaming

countries like the US for

causing climate change, and

America's taken a swing at

Beijing for being the world's

biggest carbon polluter. This

was always going to be

something of an international

swap shop. Each country

jockeying for advantage. But

the tough exchanges between the

world's two largest emitters have surprised. With the

Americans demanding the Chinese make binding commitments to

cutting carbon emissions. The

country whose emissions are

going up dramatically, really

dramatically is China. And

that's the reason that we can't

have an agreement that doesn't

have a real commitment by

China. The Chinese had some

frank advice of their own,

accusing the Americans of

failing to meet previous

commitments to help developing

countries cut their greenhouse

gases. In this regard, what

they need to do is deep soul

searching. Also soul searching

Indigenous Bolivians who

performed a special ceremony in

support of a proposal for a a

declaration of rights for

mother earth. It's time for us

to decide whether we want to

continue our system of

capitalism that destroys our

mother earth, or whether we

should change the model of

capitalism to defend life. But

it's the rough trade in carbon

politics that's drawn centre

stage. Far more vigorous and

divisive than expected. What

we're trying to do the world

has never done before. We've

never brought rich and poor

nations together in the way we

have to do if we are going to

get the agreement that we

need. With world leaders

gathering here next week, it's

hoped the carbon buck will no

longer be passed around. Most

here believe all this is too

big to fail. But so too are the

divisions, and failure remains

a possibility.

Britain has singled out wind

energy as one of its key

weapons in the fight against

climate change. It's hoped by

2020, every household in the

country will be using wind

powered electricity. But some

critics say wind power isn't as

green as it's made out to be.

Last year, Britain overtook

Denmark to become the world

leader in offshore wind power.

New rules will give operators

the right to by-pass planning

laws in an effort to get more

of these turbines spinning

energy onto the National Grid.

It's part of the government's

ambitious plans for a

low-carbon future. We need to

significantly increase the rate of progress to meet our

objective of 30% of our electricity coming from

renewables by 2020. The UK's

energy industry has been blown

away by Britain's targets,

which include an 80% reduction

in greenhouse gas emissions by

2050, compared to 1990

levels. Just by the UK's

geographical position it's got

some of the better wind speeds

than some of the continental

Europe. But even in windy

Britain there are calm days

when the turbines don't turn.

So very little energy is being

produced. Experts question the

British Government's wind

policy because on average, they

say a wind farm is only working

25% of the time. So every time

you build a wind farm, more or

less, you have to build another

power station to back it up.

Wind energy is now powering 2.3

million homes across the UK.

But there are enough projects

under construction like this

one so that by 2020, the

British Government is hopeful

that all households will be

getting their electricity from

wind farms. But for the

government to deliver on its

promise, up to 12,000 turbines

will need to be built in the

North Sea and around the UK's

coastline.

To some it's the ultimate

contradiction receiving a Nobel

Peace Prize while still waging

war but that's exactly what the US President Barack Obama has

done, and he used his

acceptance speech to make a case

case for fighting, saying force

is sometimes not only necessary

but also morally justified.

Barack Obama's shock selection

in October caused controversy,

and this presentation of the prestigious prize was expected

to attract even more. Compared

to some of the giants of

history who've received this

prize, switser and King,

Marshall, and Mandela, my

accomplishments are slight. American Presidents have been

honoured before him, but none

after serving so little time in

office. Barack Obama

acknowledged the anomaly of sending troops into battle

while accepting a peace prize

but then he devoted almost half

of his speech to justifying

war. There will be times when

nations acting individually or

in concert will find the use of

force not only necessary but

morally justified. But he won

applause when he said the US

would remain a standard bearer

in its conduct. Clear eyed, we

can understand that there will

be war and still strive for

peace. The newest Nobel

laureate was cheered by

thousands in the centre of Oslo

although some believe he should

never have been honoured. But

there was only praise for the

President at the formal banquet

held later in his honour. An

Australian scientist was among

a record number of women to

receive a Nobel Prize today.

The US based biologist

Elizabeth Blackburn and two

colleagues won the medicine

award for discovering how

chromosomes protect themselves

as they divide. She was

presented with her prize by the

Swedish monarch King Carl XVI

Gustaf. The research has

inspired experimental cancer

treatments, the trio will share

$1.5 million in prize money.

Police have lost their bid

to ban the convicted paedophile

Dennis Ferguson from public

places where children are

present. They sought an interim

order after Ferguson was

evicted from a swimming pool in

the centre of Sydney last

month. A magistrate described

Ferguson's past behaviour as

vile but she found his recent

behaviour did not present a

threat to children. The police

should've been able to work out

from the evidence that they had

that there was no immediate

risk. Ferguson wasn't at

court, but a supporter says

he's relieved by the decision.

Police will seek a permanent

order when the case returns to court next year.

Sydney looks set to have another extraordinary building

to show off to the world and

attract tourists. The visionary

Canadian architect Frank Gehry

is developing a design for the

old Dairy Farmers site in inner

Sydney's Ultimo. Move over

Opera House S this going to be

Australia's next icon? The old

industrial site beside the

sights of architect Gair Gair Powerhouse Museum is in the

Gair, who's famous for the awe

inspiring Burgenheim museum in

Bilbao. It doesn't cost more to

do all that stuff. You just

need site space. There we had

the room and the zoning to

allow us to do that. It's a

coup for Sydney's University of Technology. It's hired Mr Gehry

to come up with a concept for

its new faculty of business.

UTS believes his work showed he's the right person to

represent the university's on

fusion of creativity and

technology and the Canadian

architect is no stranger to campus buildings. The Massachusetts Institute of

Technology was one of his

designs. But reaching out to the community in this small

just playing around to see space will be challenging. I'm

and where's the front door of where we make those connections

this thing? Bringing on board

with someone with such a high

profile has been given the tick

by local architects. Frank

Gehry is an architect of a

particular style. That's

something we haven't seen in

Sydney before. That will open

up the debate about public

architecture. That's very

healthy. Hopefully it will be a

good investment, too. Famous cons in themselves. That can buildings do become tourist Ike

I tract more people and more only stimulate the economy and

interest in Sydney. The concept

should be ready next year. Then

if UTS decides it fits the

brief and it can fund the

buildinging it will up to the

City of Sydney to give the final approval.

There will be an extended

interview with Frank Gehry on

the 7.30 Report after this

bulletin. Now from grand

designs to the opposite end of

the market. A humble inner city

property will be up for auction tomorrow and it's certain to create interest. The building

is worth little and it will

probably be bulldozed under new

residential zoning, but it's what the building was that's

interesting. For the best part

of a century, it was home to

the Leichhardt Flying Club. Not

aeroplanes but racing pigeons.

Geoff Sims reports on the end

of an era. It's all under lock

and key. But it houses little

more than memories. Cummings is

gone. Davis is gone.

FitzSimons, he's gone. Farmer

is gone. Maish is gone. Doran

is dead. They're all dead. Not

quite. Jock Grey is kicking,

trustee in charge of the sale

of a club whose members the

Flyers have flown. The amount

of Flyers is passing away all

the time. For many decades the

Leichhardt Flying Club

flourished, back when clubs

were clubs and the members were

under the watchful gaze of

royalty. Her name in this case

was not Betty but Mabel. In its

heyday it was great. We had

great fun. Not the Sport of

Kings, so much as the sport of

wings. The birds weren't released

here and they didn't return

here. Though this is where they

were sold by auction. The club

was for members. A breed of

their own. Once you get bitten,

you won't leave. Only way

you'll leave is in a box. It

was a lifestyle obsession of

its time. Tied to wartime acts

of bravery by the carrier

pigeon. That pigeon couldn't

carry the king! To the

uninitiated or people who

simply don't know, these birds

might be described as rats with

wings. But try saying that to a

pigeon fancyier. A rat with

wings? I've heard that before

and I'm very angry with that! They're thoroughbreds! The

sport lives on, mostly further

out of town. But tomorrow, the

Leichhardt Flying Club will be

sold as residential. Chapter

closed. Yep.

Leaving Jock Grey an empty

nester. The Australian Privacy

Commissioner has launched a

formal investigation into the Depression Services web site.

It follows allegations of a

serious privacy breach. This

week, the ABC revealed that

private conversations and

transcripts of on-line

counselling could be accessed

through a simple Internet

search. The transcripts

included confidential details

of relationship breakdowns and anti-depressant medications.

The site, which is also known

as depressioNet, is founded by

the federal Department of

Health and Age ing. The

managers uncovered a design

flaw which may have allowed wider access to the information. They've shut down

the on-line peer support and

counselling rooms and called in

an independent security expert

to investigate. The Australian

Privacy Commissioner Karen Curtis says ... The

The investigation is expected to take several

months.

The local share market

bounced back today after a rise

on Wall Street and some strong

economic data from China.

The Chinese statisticians

report their monthly economic

data as annualised figures so

it can be a bit of a shock to

see monthly gains of 20 and

30%. But it's annualised not

just month to month. But even

annualised moves like these

show the Chinese recovery from

its export slump is now complete. Industrial production

is back to the pre-crisis rate

of growth, retail sales have been growing at double digit

pace for five years and still

are. Urban fixed asset

investment is up up an

astonishing 32% thanks to

government stimulus spending.

Imports are up powerfully as a

result of that. They still

either need exports to bounce

back or domestic consumption to

take over. The big hope there

is cars. Car sales in China

have doubled over the past 12

months and at a million and

40,000 for the past year are now more than Australia's

950,000. But I guess

considering there is 1.3

billion people there and just

22 million here, that's not

saying much. If China had the

same per capita car sales as

Australia, there'd be 60

million of them sold per year

and you'd need a lot of steel

for that. Therefore, iron ore

and coking comb. Guess who can

help them out with that stuff?

But resources didn't lead the

way on the share market today

despite the Chinese economic

story. It was retailers and

media companies like Fairfax

and News Corp, Harvey Norman

and Wesfarmers. Among the

banks, Westpac continued to

slip on its banana skin. Down

1%. US shares also went up last

night after a European Union

official ruled out a Greek bankruptcy which has been

hanging over the markets since

the Dubai embarrassment last

week. And finally, the

Australian dollar crept higher

again as the US dollar's little

rally ran out of puff. That's finance.

After a year of preparation,

shipwreck hunters expect to

head out in the next 24 hours

in search of the sunken ship

the 'Centaur'. A Japanese

submarine sunk the Australian

World War II hospital ship off

the coast of south-east

Queensland in 1943. The

'Centaur' was lost at night,

torpedoed without warning, and

268 Australians lost their

lives. People who were serving

equipment has been brought in our country. Specialised sonar

from the US for the expedition

which is scheduled to take up

to 35 days. There are some

significant challenges, I've

talked about them in the past.

Namely, the currents. And the

roughness of the seabed. Which

makes it not a certainty that

we're gonna find the 'Centaur'

but we do believe we're searching in the right

location. The search will cost $65,000 a day.

Some of Australia's best

golfers are talking the leader

after the second round of the

Australian PGA on the Sunshine

Coast. But it's one of this

country's lower profile players

who sits at the top of the

leaderboard. 26-year-old

Victorian Matthew Griffin is 7

under. First round leader Han

Min Kyun couldn't hold his

form. Yesterday he shot a

record round of 62. Today, it

was a 75. From one long shot to

another, meet Matthew Griffin,

part-time accountant, full-time

golfer, who snared the outright

lead late in his second round.

Five shots behind at the start

of the day, jostling for the

leadership might've seemed an

unlikely prospect for Stuart

Appleby. He's well placed. And

nearly his last shot of the

day. The spotlight burned on Korean Han Min Kyun and his

game deteriorated. One day, 9

under par, significantly over

the next. There was nothing shy

about Robert Allenby, even

though the shot wasn't as bold.

He's in the mix at 4 under par,

after a 3 under round. A wave

of talent is in striking

distance. Adam Scott's also on

4 under par. While Geoff Ogilvy

turned around some indifferent

play to storm home with a 66.

He's 6 under, 1 from the lead. The meeting between the bosses

of the NRL and the FFA might

not have yielded concrete

decisions on any future World

Cup bid, but both men are

confident they can reach a

compromise. We can relocate

matches to appropriate venues,

we can look at rescheduling of

certain matches to avoid a

conflict. David Gallop says he

will continue to support the

bid as long as NRL clubs aren't

placed in jeopardy. The No. 1

concern is simply the

disruption to the cash flow of

our business. Our clubs rely on

people coming regularly to

footy. The West Indies players

have a spring in their steps

after a much improved effort in

Adelaide. Spinner Suliemann

Benn has knee soreness after

bowling 80 overs but is

expected to be fit for next week's third Test. The tourists

believe they can adjust to the

pacy WACA strip. Australia's at

home, they're used to the

bouncy pitches but we will play

at 100%. Alicia Molik isn't

looking for an easy ride back

into Grand Slam tennis. The

former world No. 18 is a good

chance of receiving a wildcard

for next month's Australian

Open but would rather gain a

berth by winning next week's

play-off tournament in

Melbourne. One more week to

prove myself. No point giving

away spots to the Australian

Open. I think everyone really

needs prove themselves, and

earn their position. The

heavyweight s have yet to

appear at Pipeline, which

delivered a knock-out blow to

several competitors in the

early rounds of the year's

final event. On a day of rising

swell, the final heat produced

the best surfing. Mickey Picon

from France registered a near

perfect wave score and just

ousted charging Australian Josh

Kerr. World title combatants

Mick Fanning and Joel Parkinson

won't appear until Round 3. New

South Wales has made a solid

start to its Sheffield Shield

game against Queensland in

Brisbane. The Blues finished

Day 1 on 5/299. Four batsmen

made half centuries. It started

as a popular children's story

about a dancing mouse. Since then, Angelina Ballerina has

also become one of the most

successful new ballets of

recent times. Little girls around the world have been

caught up in its magic and now the English National Ballet is

touring Australia with its show

about dancing mice.

It mightn't be the part that

will make her face famous but

for Emma Finlay scoring the

lead role of Angelina in the

English National Ballet was a

huge break. It's every little

girl's dream to be a ballerina.

She is such an iconic figure within ballet. It's an honour

to be dancing the role. The

Glasgow dancer first put on her

ballet shoes at just 2. Now 21,

she's barely out of them.

There's nothing like it. I get

a bit jittery if I don't dance

for a while. I just knew from

the minute I started dancing

that's what I would do.

The ballet is based on the

Angelina books and it's been a

worldwide hit. Laura Hussey

plays Miss Lily the ballet

mistress and in a case of life

imitating art, she's

responsible for all the young

dancers as they tour the

world. I was very lucky in my

younger days to tour the world

with ballet companies. So it's

really nice to bring the young

ones here myself and be able to

pass on any knowledge I've got.

This is one ballet where

audience participation is

welcome and at every concert

there is a bevy of little girls

on their toes dreaming that one

day they too will be behind the

footlights. The show will tour around Australia.

A look at the weather now.

Last night's change seems to

have had quite an impact on

today's weather? It certainly

did but it wasn't temperatures,

rather, the humidity that was

plunging. This time last night,

it was sitting around 70%, but

it fell to the mid teens by

this afternoon. Temperatures

have been similar to yesterday,

with tops today of around 27 to

31 degrees across Sydney.

These storms are with a

tropical low that could develop

into a cyclone and a cyclone

watch has been issued from

Wyndham to Mitchell plateau in

the Kimberley. The weather in

New South Wales is being

dominated by a slow moving high

with a mostly dry day tomorrow.

But as the high moves east

onshore winds will develop

about the coast on Sunday. And

the trough in Queensland will trigger some isolated falls

about the far north east of New South Wales tomorrow, but at

this stage, there will be no

worthwhile totals.

Let's recap tonight's top

stories now. Tony Abbott has

been forced to rein in his new

finance spokesman. Barnaby

Joyce had raised doubts about

the abilities of State

Governments to repay their

loans. And a Japanese fleet is

on its way to Antarctic waters.

Kevin Rudd is threatening legal

action over the hunt. That's

ABC News for now. For the

latest news 24 hours a day,

don't forget ABC Radio and ABC

News on-line. For now,

goodnight. Closed Captions by CSI

Tonight on the 7.30 Report -

the man behind one of the great

buildings of the 20th century and the Australian landmark

that inspired him. When you

first laid eyes on it, what

were your impressions? Holy ...

(laughs) Frank Gehry down-under for his first

Australian project.

What must I do? The ring must

be destroyed. And from Lord of

the Rings to a bizarre murder

mystery. I was 14 years old

when I was murdered. On

December 6th, 1973. Peter

Jackson's surprise new

direction. I just follow my

instincts, and do what I - I

make the movies that kind of

get me interested and excited

at any given time and the one

thing that I don't like is

repetition.