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Lateline Business -

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(generated from captions) examples of what is possible.

Now, with this proposal from

Forrest, we've now got the

opportunity to absolutely scale

this up. So my anxiety y, Tony is

these young guys in the meat

industry in Wonthaggi and so

on, these young guys are

prospective parents soon,

they're gonna have children.

They're gonna have scores of

children. And the best thing

for the prospect of those

children in the future is that

they know their father is a

worker. And has set a role

model for them of working in

the economy. Now, they're

working at the bottom end, at

the entry level end, the hard

end of the economy, but I... It

is only when we get that start

going that they can lay the

foundations for their children

to enter into the economy at a

higher level and that's the way

our people will start to climb.

You ask the question - will

your own people take up the

opportunity that's being - of

the 50,000 opportunities that

could be laid before them. For

your part, the indigenous

workers will have to commit to

work opportunity covenants.

What are they, exactly? How do

they work and how do they

connect with the welfare

system? We're in the throes of

implementing a pretty radical

welfare reforms in four

communities in Cape Yorke

Peninsula, including Aurukun,

these reforms will oblige our

young people to take up

available work. And they'll be

pressure on people to move off

CDEP, move off welfare and take

up available jobs. rnl

There'll be relocation

assistance for those who need

to travel it take up real jobs

elsewhere. What I imagine will

happen is that a facility needs

to be created by the Federal

Government for individuals out

in the wider Australian

community, indigenous

individuals who can opt in to

welfare reform of their own

choosing. See, in Hope veil and

Aurukun we've got location

based welfare reform. I imagine

that a kid in Blacktown, or a

kid in Cairns, or a kid out in

Mt Isa, or in Yirrkala, should

be able to put their hands up

to say I'm gonna opt into a

welfare reform arrangement, I'm

going to forego my standard

welfare entitlements and I'm

gonna sign up to a work

opportunity. And I want both

government and the private

sector to convenant with me

about that opportunity. I

think this cienl of reform is

gonna be a necessary

underpinning for the success of

this proposal. And it's gonna

require a spreading of welfare

reform across the country. Sg

one quick final question, Noel

- are you at all worried there

may be some kind of back lash

similar socio-economic in working class whites in

conditions who don't get

guaranteed jobs? Well, I think,

you know, eventually we've got

to move towards a situation

where this kind of opportunity

is available to all

disadvantaged peoples. I think

the welfare reforms we're

pursuing in indigenous

Australia are reforms that

should eventually be available

to disadvantaged non-Aboriginal

people across the country. But

you know, we're not gonna reach

the goal. There's two things

that have gotta join up here -

welfare reform plus work

opportunity. Tony, let me say

this, that in 1996 when Bill

Clinton introduced welfare

reform in the United States

they actually put the 2 pieces

legislation in the United of the jigsaw together. The

States was called the Personal

Responsibility and Work

Opportunity Reconciliation Act.

And we don't have this in this

country. We don't have welfare

reform in that same framework.

But... So I've been always

banging on about personal

responsibility. And what's been

missing from ni argument has

been the work opportunity part

of the jigsaw and Andrew

Forrest's proposal brings in

that missing part of the

jigsaw. Noel Pearson, so glad I

asked you that last question

because you encapsulate it had

so well. Thank you very much

once again for taking the time

to come and talk to us. Thanks,

Tony. Thanks, mate.

Glng Alexander Solzhenitsyn,

the literary giant who went

from Russian outcast to Russian

hero is dead. He was 89.

Solzhenitsyn opened the world'

eyes to Stalin's labour

camples. He spent decades in

forced exile then returned home

in triumph only to be

disillusioned by what he found.

His works about Stalinist rule

sent shivers down the spines of

readers and shock waves around

the worlds. The Nobel Prize for

Literature followed. Alexander

Solzhenitsyn had come through

the horrors of the second Ward

War defendsing his country only

to endure 8 years of

imprisonment for daring to

criticise Joseph Stalin. Like

so many others Solzhenitsyn

became just a number,

ironically he was a maths

teacher, but he turned to

writing. '1 Day in the Life of

Ivan Denisovitch' set inside a

Siberian labour camp was

published in the Soviet Union

on the authority of Stalin's

successor Nikita Khrushchev.

Later came 'The Gulag

Archipellago' which had to be

published abroad. Solzhenitsyn

was forced to leave the country

and for nearly 20 years lived

in the United States. He

laboured over a major work 'The

Red Wheel', but it was regarded

as turgid and moralistic.

Solzhenitsyn went home in 1994,

but soon became disillusioned

with what hadt had become. He

even refused to accept Russia's

highest award offered by

President Boris Yeltsin. I can

not accept an award from the

supreme authority which has led

Russia to its presents ruinous

state. Later, Solzhenitsyn

accepted an award for

humanitarian achievements by

President Vladimir Putin. His

son, Ignat, an acclaimed

concert pianist, paid tribute

to his Dad in Sydney 7 years

ago. What he stands for is very

meaningful to me. Alexander

Solzhenitsyn died after a

stroke in Moscow. He was 89.

It's time for a quick look at

the weather. Showers for

Adelaide, Melbourne, Canberra

and Sydney. Main fine in

Brisbane and Hobart. Fine in

Perth. Windy in Darwin.

Lateline business is coming up.

If you'd like to look back at

tonight ace interview with Noel

Pearson or review stories or

transcripts visit our web site.

Here is 'Lateline Business'

with Phil Lasker. Tonight -

missed opportunity, could the

Reserve Bank have lost its

chance to rescue the economy? I

don't think there is any way of

avoiding a recession. Private

equity show it is hasn't been

crushed by the credit crisis

with a $2.9 billion bid for

Asciano. Private equity never

went away, the deals have been

smaller, they've been less

public. And no escape from the

bad times - Lend Lease

forecasts profit to fall by a

half. It was a bit of a

surprise. Especially with the

extent of the profit downgrade.

And it does highlight the

problem that is are there in

the UK residential housing

market.

First to the markets - Lend

Lease's surprise profit

warning. Together with a fall

in mining stocks saw Australian

shares begin the week in

negative territory.

The credit cries sigs has put

the brakes on last year's wave of private equity takeovers,

but they're back. Two

international private equity

players, TPG Capital and Global

Infrastructure Partners have

offered nearly $3 billion for

infrastructure company Asciano.

Asciano rejected the $4.40 a

share bid saying it under

values the company. Investors

however signaled their approval

pushing the takeover target's

share price 16% higher. Even

in a credit crunch, top

infrastructure assets are still

desirable, Asciano, the port

and rail company named after a

tiny town in Tuscany, was

created out of Toll holdsings

takeover of Patricks. We have a

market leading position in both

port and rail, essential

infrastructure in Australia,

and very difficult to replicate

those assets. Today US private

equity groups TPG Capital and

Global Infrastructure Partners

have put an unsolicited

takeover bid on the table. The

$2.9 billion cash offer is

through a scheme of arrangement

for 100% of the company, at

$4.40 a share. After the market

shut, Asciano's management said

it had considered the proposal

and believes it under-values

the business and have decided

not to agree to due diligence.

Asciano, headed up by CEO Mark

Rose thorn has disappointed

investors who have watched the share price of the condition

slide from its listing price of

arounds $10 to as low as $3

last month. There has been a

lot of media speculation on the

company regarding a potential

market capitalisation debt

convenant which the company

numerous times have said

doesn't exist. There has also

been speculation about Mark

Rosethorn having his

shareholding leveraged through

a margin loan, the company's

says that is untrue. There is

consistent speculation about

what it says it will do about

its capital structure. The

market believes it to be too

highly geared. Debt level sat

at around $4.8 billion which it

says is in full compliance with

its banking covenants and are

supported by its asset base and

strong cash flow profile. While

TPG and Global Infrastructure

Partners considers their

response to Asciano's rejection

they're near $3 billion deal is

a significant indication that

while credit remains expensive,

private equity firms are still

interested in doing deals.

Private equity never went

away. The deals have been

smaller, they've been less

public, they've been generally

private to private deals, in

what we term the mid-market

which would be anything from

about $50 million up to about

$500 million. Katherine

Woodhope, CEO of AVCAL says

private equity firms can add

value to companies. What

private equity can do very well

is work with the company on its

underlying business strategy to

ensure it can pay off not only

that debt but any leverage that

is included in the deal and

grow the company's underlying

value through improving the

business itself. While analysts

say Asciano could use some

improvement its management

holds a 10% controlling stake

which could block any hostile

takeover. It highlights the

strategic value of their assets

and perhaps the market's been

overfocused on the short-term

issues of both earnings and

debt levels and those debt

levels need to be addressed but

this bid highlights the value

of the assets. Ash iano was not

available to speak with

'Lateline Business' but will

report its full-year profit

numbers on Wednesday. European

markets are now over halfway

through their trading day. A

short time ago I spoke to Tom

Vosa the head of Market

Economics UK at NAB Capital in

London. I asked him whether

there has been any more gloomy

news from the banking

sector. Yes, there has. HSBC

has announce add 30% fall in

profits, that was in line with

expectations, the real story

going on here is the larger the

bank certainly the moment the

less they're losing as a

proportion of revenue, the

UK-focused banks managed to

lose more money, falling

profitability by around 17%.

When we put it in that

context the HSBC results were

fairly good. Key problems for

them still the United States

where again home owners, house

prices are still falling, home

owners are giving become their

properties, consumer lend

something still losing money.

Sop perhaps some credit in

payment in United Kingdom.

their Asian operations still

look very strong. How has that

affected the stock

market? Markets didn't react

very much. As we speak,

European boreses are a -

bourses are a little bit lower.

Wall Street futures are lower.

Again the US is expected to

open down. It's all a bit

listless it's a the moment.

There are still some concern

the credit crunch is going to

leap, 1 year old now, will feed

through into the wider economy

meaning slightly weaker

earnings for a whole raft of

companies going forward. You're

expecting a few shocks down the

track, are you? I think we are.

The global economic picture

hasn't really changed very

much. If anything latest US,

GDP data confirmed the economy

had contracted in the fourth

quarter of 2007. I think the US

is certainly on the verge if

not actually in recession we'll

be told helpfully by the

National bureau of economy

economic research in September.

We believe growth in the UK

will be weak, maybe 3 years of

blow-trends growth, certainly

other weakest growth

performance in 3 years. In

Europe everyone difficult to

see much of a recovery. It's

an important week for monetary

policy. What do you think is

going to happen at both

meetings? I think within the US

the Fed will sit on its hands.

We have seen some speculation

that they could start to

policy, after all interest aggressively tighten monetary

rates in the US are at 2%,

inflation is running it's a

around 4%, we think for the

time being they will sit on

their hands and maybe wait until this time next year

before they even have to start

considering raising interest

rates. The European dimension

is perhaps I think a little bit

more tricky. I'm sure there

will be some in Frankfurt who

would be voting for rate

increases months, still very

concerned about the level of

European inflation, still very

concerned wage pressures build

as a lot of wages in Europe are

still indexed to inflation.

However, there are signs now

outside Germany the economies

are all slowing down, Spain and

Ireland do look particularly

soft, perhaps being joined with

Italy. I think that again means

all toe there will be pressure

for our interest rates they

won't actually deliver. Tom,

thanks for your time. No

problem. Back home, Just Group

shares surged over 10% today

after its board threw in the

towel and backed the hostile

takeover offer from Solomon

Lew. Although the board

believes the $774 million bid

under-values the clothing

retailer, it's recommending the

offer as long as it receives at

least 50% investor support. The

Solomon Lew-backed Premier

Investments says it's stitched

up nearly 47%. Inf that number

rises the offer will be

sweetened by 15 c a share. To

some of the other major movers

on our market today - Rio Tinto

led a retreat by miners,

worries about the US economy

and softer commodity prices saw

it fall nearly 3%. Following

Friday's profit warning Suncorp

Metway shed another 1%. On the

plus side - a broker upgrade

saw Aristocrat Leisure climb

over 3% and News Babcock and

Brown infrastructure may sell

some assets to reduce debt saw

it rise by a similar a mount.

New figures show the property

market remains weak. Capital

city house prices fell 0.3%

during the June quarter, the

first fall in 3 years. Perth

had the steepest decline of

2.4%, Hobart wasn't far behind,

the falls weren't across the

board with Darwin up nearly 2%

and more modest increases in

Sydney, Adelaide and Brisbane.

Weakness was also reflected in

the jobs market with the ANZ

job ad survey showing a 0.3%

fall in ads during July. The

fifth decline in 6 months. The

numberings won't surprise

academic Steve Keen who holds a

dire view of the world,

associate Professor Keen has

been a long time critic of the

Reserve Bank, the Bank's board

meets tomorrow to consider

interest rates and some

analysts say the weaker economy

puts interest rate cuts on the

agenda. Steve Keen says it's

too late, brace yourselves for

the recession we can't avoid. I

spoke to him a short time ago.

Steve Keen s a recession a

certainty? I believe so. We

have been through the longest

debt finance boom in our

history, it's now time to pay

the bill. That's what's driving

retail sales down at the

moment. I don't think there is

any way of avoiding a recession. What is it in

particular that makes you feel

recession is a certainty? Is it

simply those retail sales

figures? No, they're the first

swallow of a depression,

virtually that I saw coming

some time ago. Because we've

been spending so much borrowed

money for so long, that the

momentum of borrowed money has

prosperity in the economy. Last been driving the apparent

year, if you look at the amount

that was consumed last year and

spent on assets as well, about

20% of total spending in the

economy was financed by

increasing debt. You simply

can't keep on doing that

forever. We seem to be finally

reaching the point where people

are slowing down the level of

bore oiing, it's dropped from

as much as $30 billion extra

debt in 1 month down to $5

billion in the last lot of

figures. As that starts to

happen it's just like you stop

drawing only the credit card

when you go shopping suddenly

you're not the guy everybody

wants to see walking through

the shop any more. This is in

the middle of the biggest

resources boom we've had in

decades, in the middle of tax

cuts that we've just

received? The tax cuts are

interesting comparison because

the tax cuts might add about 4

or $5 billion to spending, last

year the increase in debt added

$250 billion to spending. We're

take ing - talking 50 times the

scale of what the Government

did to try and boost it's

economy along somewhat or win

an election. What about the

resources boom? The resources

boom is a major factor but as

Gerrard Minack makes the points

- it only employs about 3% of

the population, it difsist

gives us an enormous amounts

ever largesse, but it is not

enough to prevents the turp

around of 1 quarter of a

trillion dollars in

spending. The Government is

sitting on huge surplus that is

it can deploy twhen it needs

to. There will be

infrastructure projects under

way to increase capacity. It

comes down to a question of

numbers. If you look it's a the

scale of what the Government

can do t ran a surplus of $20

billion last year n this

financial year a way of trying

to slow the economy down. The

a-Mount the private sector

borrowed was $250 billion,

virtually 13 times the scale.

What are the assets worth?

What are the assets backing

this debt worth? They're worth

what people will pay for them

when they expect someone to

borrow even more money to buy

them off them.

A large part of those asset

valuations are due to people

borrowing huge amounts of money

and buying expecting the price

to continue rising. hold the

asset, make no money out ever

it, sell it for a profit

because somebody will borrow

more money to buy it off you.

Those days are over. I can't

see them coming back. Some

analysts will say we don't have

the supply of homes here in

Australia like in the United

States so we're in the going to

see that crash in property

prices that we saw in the

United States. That's the old

supply and demand argument, the

favourite harbinger of every

economist except me. To me

where the demand comes from is

people's willingness to borrow

money to buy an asset. When

they no longer expect the price

to rise the debt finance demand

for housing will evaporate and

the price will fall with T

certainly the comparative

absence of supply will make the

fall less tumultuous than in

the States. The fact we have a

much more cumbersome way of

liquidate ing housing assets

will also mean it's slower but

it will still happen. Something

of the orders of 40% of prices

is simply financed by people's

expectations that the prices

will keep on rising. When this

expectation goes ultimately goodbye 40% of the current

price of houses. So a

recession's inevitable or

almost inevitable? The Reserve

Bank should cut rates quick

smart, tomorrow? And by a

lot? I'm - I've been

criticising the Reserve Bank

for pushing rates up fight

inflation when I saw debt as

the main problem. I would be

rather churlish to say they

should change their tune and

instantly turn around with the

first retail figures that

confirm my figures rather than

years so I wouldn't be again

them waiting to see further

results. But I think they will

be driving rates down far more

rapidly than they drove them up

and the economy will not

respond as they hope it will,

it will keep going down. Aren't

you suggesting the Reserve Bank

has 240 choice but for - no

choice but to cut rates

immediately? You have is to win

a philosophical argument to

convince that perspective. I

have been arging that the

conventional economic theory is

the wrong way to analyse how a

market economy functions. I

can't win that argument

overnight just on one set of

figures t does take time. It

will take time for them to be

persuaded, I think ultimately

as happened in America, the

weight of the downturn that

forced their hand and the same

will happen here. Then I hope

that Reserve Banks around the

world reconsider the economic

philosophy they've been

following because it's clearly

failed. What are we going to see in the near future that

would suggest you're correct?

Further falls in retail

sales,, more collapses of

companies which focus upon the

highed in the retail chain n

that sense in its own strange

way, Starbucks was an obvious candidate. Nobody want to buy

that - the caramel flavoured

lattes any more so the high end

retail Roosters likely tock

it's first one to suffer and

anyone of course who has any

financial fragility behind them

will go because a major part of

this downturn isn't just people

stopping spending its banks no

longer renewing loans. They

will cease rolling over loans

of fragile companies and they

will be the ones that explode.

Mainly I expect high end

retailers to start to suffer

and suffer badly. I hope air

wrong. Thanks for joining

us. Thank you. Another day,

another profit downgrade, this

time from Lend Lease. The

company's expecting profits to

drop by almost half in its late

est full year result because of

big write-downs on its property

portfolio. That started the 200

# reporting - 2008 reporting

season on a sour note with

earnings expected to come under

increasing pressure. As lend

lease staff put the finishing

touches on the Melbourne

recycle centre the company has

been reworking its profit

forecasts, those changes will

hardly be music to the ears of

investors. Lend lease expects

operating profit to come in at

$447 million. It's unveiled

$180 million in write-downs,

pushing its bottom line result

47% lower than last year. Its

warning next year's operating

profit could be down by

10-15%. It was a bit of a

surprise, especially with the

extent of the profit downgrade,

it does highlight the problem

that is are there in the UK

residential housing market,

that are probably likely to

continue to the next 2-3

years. The company blames

global economic and credit

conditions which are putting

pressure on residential sales

prices and volumes the UK.

Managing director Greg Clarke

says Lend Lease has $800

million in cash leaving it well

placed to capitalise when the

market picks up. Our role now

is not to be daunted by the

commercial environment, it's to

place long-term bets that will

make this business a stronger

business come the

recovery. Before that recovery

analysts are expecting more

pain across the market during

the current reporting season.

Not so much in the short-term,

but looking for financial year

09 and 10 is going to abdif

difficult period for some

companies. I think they will

take a conservative attitude in

terms of guidance going

forward. Arg ow Investments has

reported a 71% increase in net

profit when gains on the sale

of long-term investments are

taken into account. Rob

Patterson says the result has

been bolstered bay steady

stream of income. We'll be

monitoring the global credit

crisis as that unfolds and try

and get to the bottom of that.

to give us the confidence to

invest some of the $228 million

that we've got available for

investment. And he sees mining

and agricultural stocks as the

best bets in the current

environment. One sector that's

expected to struggle is the

media. With advertising often

an early cost saving during

Anna downturn. We think there

is downward risks on the media

sector because of the rate of deacceleration in the economy

in the last couple of months.

And potentially what the

outlook statements for each of

the companies are going to be.

It's that sknings of precipitous falls in share

price with a mixed outlook that

means the reporting season is

pretty dangerous. The Seven

Network reports tomorrow, West

Australian newspapers

Wednesday, it's print media is

expected to bear the brunt of

trouble this is reporting

season. ANZ says the number of

job advertise ams placed in

newspapers has dropped 20%

since April. And media analysts

say the number of automotive

and real estate ads are also

declining. Rio Tinto says a

crisis facing its $6 billion

West African iron ore project

won't cripple its defence

against BHP Billiton's $170

million takeover bid. The

Guinean Government has

rescinded Rio's mining

consensee - concessions in the

Gilles Simon region - Simandou

region. The boss says the

company is confused by the

Guinean Government's

action. Under all the

obligations we believe we've

met them and we're legally entitled to the deposits and

you can bet your life that

ourselves and the IFC will take

this very seriously and will

fight for our rights. Rio Tinto

has already spent $300 million

exploring the region and says

it will use all legal options

to have the concessions

restored. Meantime, the gloves

are off in the feud over access

to rail lines in Western

Australia's iron rich pill

brasmt Rio Tinto and Fortescue

Metals Group traded jibes as

the issue took centre stage at

the annual Diggers and Dealers

conference in Kalgoorlie. Rio

Tinto iron ore boss Sam Walsh

wasn't pulling punches during a

key note address to the

conference - his message if

iron ore juniors was clear,

they won't be getting their ore

on Rio's lines and they should

be looking to Andrew

Forrest. There is an open

access railway in the Pilbara,

that's FMG's railway. To Mr

Forrest, it was a serve he

wasn't steak ing - taking

sitting down. Almost 400

million US dollars of import

revenue, drengt injection into

the Australian economy wouldn't

have happened without third

Party access. FMG's been

fighting long and hard for

access to Rio and BHP

Billiton's rail lines. FMG's

built its own rail and signed

an agreement with the State to

allow other juniors on its

tracks. Today Mr Forrest was

playing up the difficult

is. The port has been very

challenging to ramp up, it's

been very successful and until

we're sure of that capacity we

aren't going to rush into the

ability to also treat other

people's ore. That left iron

ore juniors wonder being their

rights and whether FMG is

getting cold feet about rail access. The Governments would

like to see collaboration and

outcome that is benefit all of

Australia. And the sooner the

better. Rio, BHP Billiton and

FMG met with the Treasurer

Wayne Swan last month, he's

expected to make a vital

decision over whether rail axes

in the Pilbara should be opened

up before the end of the year. The Federal Government

will this week respond to the

ACCC's report into supermarket

prices, 6 months in the making

the competition watch dog's

review heard from people in

cities and towns across the

country. These shoppers are not

waiting for the report into

grocery prices to tell them

what they know already. The

weekly shop is becoming more

expensive. Gone back to no name

brands. Just depends on what's

on special at the time and

what's not on special. With

growing family it's hard these

days to comprehend how hard

they have gone up. My wife was

always complaining about the

prices going up, no inflation

practically but the prices are

going up 10, 20%. The discount

grocer Franklins says the price

of some consumer staples like

rice, pasta and canned fish has

doubled in the last 12

months. With the substantial

increases coming through

particularly on commodity-based

products we've had sto to start

passing on price increases to

customers. The head of the ACCC Graeme Samuel won't comment

before the Government has

reviewed his report. But his

predecessor Alan Fels says the

market's dominated by the two

bigger supermarket chains and

town planning laws should be

changed to allow new players

near existing stores. I think

it was about time someone shone

a light on the retailers. If we

get more competitors in retail

we'll get better prices and

service for consumers. The

consumers association is

calling for a pricing overhaul.

It says a set cost per 100

grams would make it easier to

compare products of different

sizes and help consumers better

judge value for money. This

alone could put more than $800

million back in the consumers'

pockets and not in the consumer

s pockets. The big supermarkets are preparing to

introduce the system which is

already in place in the

discount retailer Aldi. A look

at tomorrow's business diary -

as we heard earlier in the

program. The Reserve Bank board

meets tomorrow. The Diggers and

Dealers mining conference

continues apace in Kalgoorlie.

On the corporate front network

Seven releases full year

earnings. Financial services

group AXA Asia Pacific releases

its interim profit report.

Overseas - all eyes will be on

it's meeting. Federal Reserve's

interest rate committee, the

current target lending rate of

2% is expected to remain

unchanged. Before we go, a look

at what's making news in the

business sections of tomorrow's

newspapers. 'The Age' examines

today's profit warning from

lend lease. 'The Australian'

looks it's a Texas Pacific

group's bid for eashiano. 'The

Australian Financial Review'

leads on the same sdory, the

'Sydney Morning Herald' says

today's bank holiday in New

South Wales may be all that's

preventing Solomon Lew gaining

50% of Just Group. That's all

for tonight, as live you the

FTSE is up 11 points. On Wall

Street the Dow is in negative

territory opening down 14

points. I'm Philip Lasker.

Goodnight.

Closed Captions by CSI

(Sings in Gwich'in Athabascan) than there is in all of Texas. There's more oil in ANWR (Bird chirps) if we opened up ANWR. It'd be helpful

I think it's a mistake not to. that...that basically mandate I also don't want us to take actions you've gotta use less. that in America The problem is impact. to drill surgically There's just no way the natural environment. without destroying And they know that. Once the oil is gone, companies are gone, and once all the oil after that? what's gonna happen so go the people. So go the wild animals, for our country The long-term solution of oil. is to be independent It's flat, it's unattractive. It's not pristine. This is what it looks like. Don't be...misinformed. DRUM BEATS SUSPENSEFUL MUSIC RELAXING MUSIC Above the Arctic Circle, of the United States the northern edge stretches for hundreds of miles. teem with wildlife. Its sea, land and skies BIRDS SQUAWK are polar bears, grizzlies, Hidden within the winter snows year-round residents. muskox, wolverine and many other

But hidden beneath the coastal plain our economy, our health, lies a substance that affects and our way of life - our national security oil. on this north coast of Alaska The Arctic National Wildlife Refuge of a fateful controversy - is at the centre to drill, or not to drill?