Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Disclaimer: The Parliamentary Library does not warrant the accuracy of closed captions. These are derived automatically from the broadcaster's signal.
Lateline -

View in ParlViewView other Segments

(generated from captions) the colouring of America. I guess I call it 40%...ethnic... America today is probably ..Chinese, Japanese, Arab, African-American. the Mayflower white majority. I mean, it's no longer

the sense of this mosaic of people. It's fast becoming coloured in the thinking of Americans. politics of America, it's changing Well, this is changing the With profound gratitude, and great humility, I accept your nomination. CROWD GOES WILD nomination of the Democratic Party, Seeing Barack Obama accept the threshold had been crossed. I knew that an historic

who just a few years ago Here's someone powerful office in America. a candidate for the most could never have been and the villages of Kenya, in the wheat fields of Kansas Yet here he is, a man with roots in the White House. who has ended up Crevecoeur's heart jump with joy. Now that, I think, would have made But then, I would think that. American immigrant myself You see, I'm an believe in the American future. and, without starry eyes, I do

Subtitles by Red Bee Media Ltd

Tonight -

parliament passes paid parental

leave. This really is an

historic day for Australian

families. These families have

waited decades for the

introduction of paid parental

leave into Australia and

finally it's here. One small

victory but the Prime Minister

says there may not be an

election this year. We have an

election due by whatever it is,

March or April next year we and

got to use the only have 3-year terms you've

got to use the time


This Program is Captioned


Good evening, welcome to

Lateline, I'm Tony Jones. On

the eve of the International

Whaling Commission meeting in

Morocco the British newspaper

the 'Sunday Times' published

explosive allegations that call into question the validity of

the whole process. The

newspaper claims Japan has been

bribing small nations for their

votes at the Commission.

Tonight one of Japan's longest

serving whaling negotiators has

called for a full investigation

into the claims. I think a

situation should be

investigated further and if

that is, you know, true I think

I obviously must conduct some

serious investigation for such

a conduct. Masayuki Komatsu is

best known as the Japanese

official who claimed nearly a decade ago that minke whales

are the cockroaches of the sea.

That interview coming up. First

our other headlines. A culture

of cover up, harsh findings by Queensland's Crime and

Misconduct Commission against

the State's Police Commissioner. Bloody Sunday's

bloody liars, British soldiers

could face perjury charges

after a court found they lied

about their involvement. And on

'Lateline Business' big change

is expected in the global oil

industry after BP's man made

dast ner the Gulf of motion

Koh. Well the Prime Minister

says he expects more damaging

opinion polls as he tries to

implement his super profits tax

on the mining industry. As both

sides continue their very

public campaigns the

Auditor-General today added to

the Government's problems by

attacking the new approach to

taxpayer-funded advertising and

although the Prime Minister had

a victory tonight with the

passage of his paid parental

leave legislation he's pointed

out that he still has until

next year to call an election. It was an election

promise 3 years ago, tonight

Kevin Rudd's paid parental

leave scheme became law. This

really is an historic day for

Australian families. It's a

moment the Government wants to

celebrate but it's being held

back by unfinished policy business else business else wrr. - elsewhere. This business of

reform is a tough business,

it's a hard business, it's

never some sort of even and

smooth trajectory. I expect

that we're going to continue to

take a whacking in the polls

for some little time to come

yet. Time is running out but

the Prime Minister appears in

no rush to go to the ballot

box. We have an election due by

whatever it is, March or April

winter ball next year. At last night's mid

winter ball Mr Rudd warns

miners he has a long memory.

Tonight he says it wasn't a threat. (Laughs) Well listen,

it's just a joke, Kerry, it's

just a joke. For goodness

sake. But there's no joking

about the ongoing ad war being

waged in prime time. That will

make mining more sustainable

for the long term. The Government's shifting approach

to taxpayer-funded

to taxpayer-funded ads has been

dragged back into the spotlight. I believe they had

been softened, the Minister,

Secretary of Finance take a

different view. Earlier this

year the Government took the

approval power for advertising

away from the Auditor-General.

It then bypassed the guidelines

to launch its mining campaign.

Ian McPhee has expressed his

unease with the first change. Never intended that

they be softened? I never

suggested they should be

softened. I would not want my

role associated with guidelines

that give the impression of

integrity and strength but in

reality don't have it. He's in

direct conflict with the

special minister of

state. Grown men can differ in

their views on things and we

differ in our views on

this. You disagree with him

that the guidelines have been

weakened? We have different

views on it. And the Minister's

defence of the move to bypass

the guidelines for the mining

campaign sent some senators in

meltout down. You are not

serious! This was a fix, the

fix was on from 10 May and it was delivered - was delivered - it's only

now. Senator Ronaldson, there's

a point of order. Tactics on

both sides are under scrutiny.

The Minerals Council is using a survey company to lure

supporters. It's offering cash

prizes for people who view the

anti-tax advertisements. An

Australian soldier killed in Afghanistan last week has been

laid to rest in his home town

of Gayndah in country

Queensland. Sap a Jacob

Moerland was killed by a

roadside bomb while on patrol

in the Oruzgan province. Today

hundreds of mourn ers joined

the army and political leaders

to farewell the 21-year-old

soldier known to his mate as Snowy. He was remembered by

colleagues as a dedicate ed

soldier and by his father as a

loving son. I'm going to miss

you, mate. And I couldn't be

any prouder than the day I

brought you home and you

entered my life. We are proud

of you, the nation stands in

awe of you, and I salute

you. Local war veterans formed

a guard of honour. Sapper Moerland's coffin was led

through the town to the war

memorial. A teenager has been

charged with the stabbing

murder of Indian murder of Indian student Nitin

Garg. The 21-year-old's death

in January is one of a string

of attacks in Indian in

Melbourne and Sydney. It was

met by wide spread condemnation

in innia. Police if Victoria

still insist the murder wasn't

racially motivated. Nitin Garg

was described as fun, outgoing

and talented. The 21-year-old

Indian national had graduated

with an accounting degree and

loved living in Australia but

his life met a violent end as

he walked through a park in

Melbourne's west on his way to

work at Hungry Jack's on 3

January. More than 6 months

later a 15-year-old boy has

been charged. Police took the

unusual step of addressing the

media to make this point. We

don't believe it was racially

don't believe it was racially

motivated. Nitin Garg's death

Triggered outrage in India over

the safety of students in

Australia. Today's developments

again made headlines. A teenage

boy has been arrested over

Indian accountiancy gradge

wated Nitin Garg. Mr Garg's

family has told the ABC they're

greatly relieved. We are

satisfied with the Australian police and Australian

Government, the initiative they

have taken, we appreciate that.

We are satisfied with their

efforts. We're extremely

pleased for Nitin Garg's family

and the community here in

Australia and all the Indian

students. The accused schoolboy

sat in the dock gazing at his

parents. His mother wept

uncontrollably. The teenager

was not able to apply for bail

today but is likely to do so

when he faces court again next

month. He'll spend his 16th

birthday in jail this weekend.

Detectives haven't ruled out

laying charges against others.

The Queensland Government and

the police force have been

rocked by the State's most

damning anti-corruption report

since the Fitzgerald inquiry. Today's Crime and Misconduct

Commission report examined how

Queensland police handled the

investigation into the death in

custody of Cameron Doomadgee on

Palm Island 6 years ago. The commission found the

investigation was seriously

flawed and unacceptable and

that the Police Commissioner

presided over a culture of

cover up. From Brisbane

Charlotte Glennie reports. Queensland's top corruption fighter has

delivered an ultimatum to the

head of the State's police

force. The Commissioner must be

held accountable and must take

responsibility for the service

of the self-protecting culture

that has been allowed to grow

and flourish. The The initial

police investigation and the

internal police review were

seriously flawed. They are characterised characterised by double

standards and an unwillingness to publicly acknowledge failings on the part of the police. The Police Commissioner

has been given 14 days to take

disciplinary action against 6

officers who investigated the

death. I have always acknowledged the initial investigation into the death of

Cameron Doomadgee could have

been handled better. Bob Atkinson responded to the

report first on the Internet

side YouTube. He faced the

media later and the inevitable

question would he resign? I

feel very honoured and

privileged and fortunate to be

able to do this job. I would

like to be able to continue

on. CMC officers personally

took their findings to the

island community. Not what we

expected but finally might get

some closure for us to see that

something's been done. Last

week the Queensland Premier

told Parliament the CMC head

had approved the reappointment

of the Police Commissioner when his contract expires in

October. No. I was told of the

appointment shortly before it

was announced and said I had no

comment. The Opposition now

wants an investigation into

whether Anna Bligh deliberately

misled parliament. Israel has

announced it will ease the land

blockade of the Gaza Strip and

allow more civilian goods to

enter the Palestinian

territory. However the naval

blockade will remain in place.

The decision to increase the

number of products allowed into

Gaza comes amid growing

international pressure to end

the embargo. Under the new deal building materials like cement

and steel and more food items

will be allowed into Gaza. The

Government of Israel took a

series of decisions this

morning. Firstly, to liberalise

the system under which civilian

goods reach the Gaza Strip.

Two, to expand the flow of

materials for civilian projects

inside the Gaza Strip that have

international auspices. And

thirdly, of course, we must

nevertheless maintain the security procedures that

prevent weapons and war prevent weapons and war materials from reaching

Hamas. Hamas has responded by

calling for the blockade to be

lifted completely. Last month

an Israeli commando raid on an

aid flotilla attempting to

break the blockade was widely


Well next week the

International Whaling

Commission seriously gets under

way in Morocco where Japanese

officials will push for an end

to the 24-year moratorium on

commercial whaling. For years

there have been rumours that

Japan has effectively bought

votes through aid for poor

countries to support their

whaling activities. Now there

appears to be some further

evidence. The 'Sunday Times' in

London has run a sting

operation to attempt to unravel

links of the Japanese and some

of the poorer countries to open

up efforts for whaling. A

billionaire conservationist was

willing to in effect buy the

votes of those countries to

change from pro to

anti-whaling. Philip Williams

spoke to one of the reporters

involved Jonathan Calvert who

request ed his face not be

shown on television. The the

sting was simple, approach

officials from 6 poor countries

who receive aid from Japan and

then vote wem them at the IWC

and then pretend to negotiate

to change that vote and in the

process try to reveal how the

Japanese operate. It make

asmockery of the process

because it's not about whaling,

it's entirely about different

countries getting benefit out

of voting for Japan and

whaling. This is the national

director of fisheries for the

Republic of Guinea. He was the

person who was telling us that

IWC meetings, all his

delegation get paid for the

hotels, their trips, but on top

of that they get $300 a day

spending money. Now the

Minister, because he's much

more important and makes

decisions, gets $1,000 in

spending money which, as I was

saying earlier, is the same as

the average wage for a year in

the Republic of Guinea.

So they don't want it to

seem like they're corrupting

the minister? This next clip

shows the deputy director of

the Kiribati ministry of

fisheries Michael Booty. Do

they just give you some money?

So when you arrive they just

give you cash, is that what Japan normally does?

Presumably they do that for

other countries as well?

And what about this lady

here, what can you tell here, what can you tell

us? This is Doreen Debrun who

was the fisheries policy

adviser to the Marshal Islands.

She personally hated whaling

and said her country didn't want to vote for commercial

whaling but she said quite

plainly that the reason that

they did was because of the

huge amounts of aid that they

get from Japan. How does Japan

link the aid to the vote on


But while offers of millions

in aid may imply a pressure on

nations, delivery of cash in

envelopes to officials, and all

expenses paid trips to Japan

are a far more personal way of cultivating

cultivating influence. This is

Jeffly Naniaro who . He went on

to tell us about how Japan,

once yoor on their side, kept you on their side by taking you

on trips to Japan where you

would go to 5-star hotels, you

would be given first-class

flights and you would also have

prostitutes provided at your

hotel for you. He of course

said he didn't partake in this

himself? Yes, he said he didn't

do this himself but he had been

offered it.

The Japanese foreign ministry

has absolutely categorically

denied all of these

accusations. I think it's very

much up to the member countries

of the IWC now to take it up

with the - at the main meeting

next week and raise these

issues because they're quite

serious that if Japan is buying

the votes of other countries

how can this organisation

continue to exist. And yet I

suppose Japan may say look,

that's just aid, we give aid to

lots of countries, it's not

tied aid, it's up to those countries who they countries who they support. It's also cash and

brown paper envelopes as

well. And earlier we were

joined by Masayuki Komatsu, the

former chief of the Japanese

Fisheries Agency who's in the

past for many years represented

Japan in IWC

negotiations. Masayuki Komatsu,

thanks for joining us. Thank

you very much for inviting

me. What do you believe will

happen at the International

Whaling Commission meeting in Whaling Commission meeting in Morocco next week? I don't

think anything happens because,

you know, there are wider gaps

among member nations. The

British newspaper the 'Sunday

Times' has published its

investigation of vote buying at the International Whaling

Commission. It alleges that

Japan has been engaged in

paying money directly to

delegates from small nations,

what do you say to that? I

think that it was made by the

person who disguised himself to

ask, you know, member nations

if it's probably conducted. I

think a situation should be

investigated further and if

that is, you know, true, I that is, you know, true, I

think IWC must conduct some

serious investigation for such

a conduct. Not only are being

conducted of so-called

allegations of bribery but

should be taken back before a

moratorium. There are plenty of

rumour at that time of vote buying by the anti-whaling

nation has been conducted led

by, you know, NGOs and the US

and other anti-, you know,

whaling nations that

significantly influenced the

adoption of the moratorium. I

think all of those should be

investigated fully. Were you

aware of vote buying or did you

help buy the votes of delegates

when you represented Japan at

the IWC? No, as far as I know

that there is no bribery

conducted or vote buying has

been conducted. One delegate,

the head of fisheries in Guinea

told the newspaper that Japan

pays millions in aid to his

country but it also pays the

bills for the delegation's

travel, for their hotels, for

their meals and it gives each

delegate $300 a day in spending

money. I think that sort of,

you know, comment and any

conduct being, you know,

conducted by the, you know,

sort of interview should be investigated and perhaps, you

know, IWC must exercise

investigation of any conduct of

the, you know, conduct being conducted currently and in the

past. I think it's a good

current for IWC to normalise

those kind of things. If Japan

is doing this, if it's making these payments, would you

regard that as corrupt? I think

before there should be

investigation because newspaper

says that, you know, that obtainment of the information

is, you know, made by the kind

of pseudo or pretending, you

know, guys try to contact with

the representative of a

particular countries. So I

think that should be

investigated first. Let's move

on. Do you still say that minke

whales are the cockroaches of

the sea? I think what I mean by

- what I meant by saying so is

that, you know, cockroach is

plenty in its number and also

reproduction is very rapid and

big that's why I, you know,

imitated to the minke whales,

related to the minke whales. I believe that there are still,

you know, plenty of minke whale

in the Southern Ocean which

no-one's territory, which

should be utilised and

investigated for the scientific

reason and for the benefit of

the all human being,

particularly for the sake of

the peace. Japan wants the

Commission to lift the ban on

commercial whaling, including

in the Southern Ocean around

Antarctica, if that happens

will that bring an end to your

so-called scientific whaling? I

don't think so. I don't think

Commission could make

Commission could make such, you

know, activity. If that should

be done I think, you know, it

should be investigated and

carefully, you know, levied

whether it's scientifically and

conventionally appropriate. I

don't think that should be

collective decisions if such

action should be taken. In 2009

Japan set out to kill as many

as 935 whales in Antarctic waut

ners the Southern Ocean but

according to your figures it

only killed 506, why is that? I

think it's because of the, you

know, sabotage or

terrorist-like activity by the

Sea Shepherd. It's really

disturbed activity of research

whaling in the Southern Oceans.

If there were no such, you

know, terrorist-like activity

or sabotage, I'm sure that

Japan had accomplished entire

missions. But I've read a

recent interview that you did

in Japan where you say the

catch was lowered because of

the sluggish sales of whale

meat. They

meat. They reduce the catch to

keep the prices high, isn't

that what you said? I think

that is also true because of

the stag nation of the sales of

whale meat. Some government

officer tried to think that if

reduction of the, you know,

supply would be down that may

lead to a bit higher price of,

you know, the whale

meat. That's just supply and

demand, isn't it, that's got

nothing to do with science? I

think yes, it sort of, you

know, responsing supply and

demand but I must say that, you

know, article 8 of the

convention stipulate the

conduct of, you know,

scientific research activity

but article 8, paragraph 2,

clearly mentions that, you

know, by-product should be sold

at the market of appropriate

countries, in this case in

Japan. As you know the

Australian Government is

planning to take legal action

against Japan in the

international court of Justice to stop this to stop this so-called

scientific whaling. What will

Japan do if Australia wins that

case? Main reason to take, you

know, research activity to the

ICJ, International Court of

Justice is to say that, you

know, Japanese whaling is a

commercial activity thereby

it's contrary to the moratorium

which Australia believes are

still, you know, in effect. I

don't think that argument

constitute any good reasons.

Firstly, Japan's activity is

fully recognised and permitted

under article 8 of the

convention which is relating to

the scientific whaling.

Secondly, I think a moratorium

is not valid anymore under the

situation where we have seen

plenty of minke whales,

humpbacks and fin whale in

Southern Ocean as well as any

other ocean over the world.

Thereby I don't think

moratorium is anymore effective so

so that reason Australia and

the litigation is not anymore

valid. But the Australians will

argue in the court that you

don't need to kill whales in

order to study them. I keep

saying to Australian Government

and New Zealand Government you are leisure are leisure activity is

inefficient to obtain the

appropriate level of the

sampling. In particular you

have no biopsy sampling for the

minke whales and the fin whales

such as, you know, fin whale

types of the whales which my

grate - my greats swiftly. So

conduct does not constitute any

scientific ground to e lus date

the whale science in the

Southern Ocean. Will this case hurt relations between

Australia and Japan? I think it

depends and if Australia fully

understands what Japan is doing

in terms of a scientific, you know,

know, research sincerely and

after you fully understand what

we are doing I don't think it's

really hurt bilateral

relations. But what we need is

sincere, open discussions. I am

lucky enough that even though I

was sort of opponent of was sort of opponent of

Australia I really welcomed by

many of the Australian people

because I believe that I am a

bit frank to you. Masayuki

Komatsu, we'll have you leave

you there. We thank you very

much for taking the time to

join us. Thank you so much,

thank you for, you know, giving me opportunity.

Foreign aid deliveries are

trickling in for what the

United Nations says is about

400,000 people, mostly women,

children and the eldererlyly

displaced by the ethnic clashes

in Kyrgyzstan. Neighbouring

Uzbekistan says it has taken in

more than 100,000 refugees from

five day of fighting between

Uzbeks and Kyrgyz. Tens of

thousands more people are

camped on the Kyrgyz side of

the border as uck bez Stan -

Uzbekistan government has

allowed food in. These non-food

item such as tents, jerry cans,

plstic sheets and kitchen

set. There are about 48 refugee

camps on the territory around

the border with Kyrgyzstan.

Local authorities say almost 200 people 200 people have been killed in

the fighting in the region's

worst ethnic violence in

decades. Well the public face

of BP's response to the Gulf

oil catastrophe is just hours

away from a US congressional

grilling. BP's chief executive

Tony Heyward is to explain the

events leading up to the rig explosion and what has been

done to clean up the mess. He

was part of a BP management

team that agreed to compensation demands made by

the US President Barack

Obama. This $20 billion will

provide substantial assurance

that the claims people and

businesses have will be

honoured. It's also important

to emphasise this is not a cap.

The people of the Gulf have my

commitment that BP will meet

its obligations to them. The

4-hour Oval Office meeting was

attended by Carl Henrik

Svanberg. He gave a apologigy

for this remark that about the

oil spill. He is frustrateds

because he cares about the

small people and we care about

the small people. I hear

comments sometimes that large

oil companies are greedy

companies who don't care but

that is not the case in BP. We

care about the small people. The BP chairman has

since apologised saying he used

clumsy words. BP also announced

it was suspending its quarterly

dividend as part of its

commitment to the claims

process. Prosecutors in Northern Ireland and England

are considering legal action

against British soldiers for

purgery after the Saville

report found they had lied

about their involvement in the

Bloody Sunday killings. The families of the dead

acknowledge that prosecuting

the soldiers risks reigniting

sectarian tensions in a city

still battle scarred from 4

decades of fighting. For 38

years the people of Londonderry

have waited for the truth to

come out. In Lord Saville's

words the killings of 14 men

and boys on Bloody Sunday was

unjustified and unjustifiable. Tony Doherty

was just 9 years old when his

father died here. You're one of

6. One of 6 children. I'm the

third oldest. Patrick Doherty

was a civil rights campaigner.

On that day in January 1972 he

was marching against internment, imprisonment

without trial. The Saville

report found that he was shot

dead by British army officers

as he tried to crawl away. The

person who killed my father not

200 yards from this spot has

never spent a day in prison for

what he's done. As a matter of

fact he probably feels

glorified and has been made to feel glorified by what he's

done and, you know, that's a difficult thing for me to

accept. Many of the families

say they can't get on with

their lives knowing the killers

are still free. But

prosecuting the soldiers who

fired at innocent men threatens

to unlock the hatred that some

have been working hard to keep

hidden for 4 hidden for 4 decades. Ronny

Crawford is an Ulster unionist

politician in Northern Ireland.

His brother Maynard a sergeant

in the army reserves was shot

and killed by the Irish

Republican Army, the IRA, two

weeks before Bloody Sunday. He

doesn't accept Lord Saville's

findings. He said that all

those who were shot were innocent people yet one of

them, at least one of them was carrying nail bombs. carrying nail bombs. You don't

carry nail bombs if you're

going to a peaceful

assembly. Some of the family

members say the real path to closure would be a

prosecution. I find that very

difficult to accept given what

has happened with the peace

process. Take Bernard McGinn,

frips. He was a border sniper.

He and his gang have murdered

more than were murdered in Bloody Sunday. They were

sentenced to a total of 600

years imprisonment and they

were freed after 18 months. So

if people like that can have

their crimes overlooked what do

we say to soldiers who were

brought in a position - they didn't sit down and say we're

going to kill these people,

they didn't sit down and meditate on how they would do

it. They were simply thrown

into a situation of a violent

conflict which got out of hand

and I think if the soldiers

were to be prosecuted now it

would have grave consequences

for the peace process. In what

way? We have let that go in the

cause of peace. I've shook

hands with Martin McGuinness

but if the soldiers are going

to be brought to account all

this length of time afterwards

and using evidence, you know,

after all these years, I think

you may find that the unions

may say there's no point going

on with this peace process,

let's ditch the assembly. At

the national assembly in

Belfast the deputy first

minister is Martin McGinn niss

of Sinn Fein, the political

wing of the IRA. Lord Saville

says he was probably carrying a

machine gun on the Bloody

Sunday march which he may have

fired. It's something Martin

McGuinness denies. Nlts I was

not armed with a machine gun on

that stage. Lord Saville used words like probable and

possible. All of that was based

on very suspect sources. A

condition of the Good Friday

peace agreement was that

unionists and Republicans would

rule together. Under the terms

of the agreement many crimes of

the troubles would be forgiven

with jail sentences cut to as

little as 2 years. One of the

most damning conclusions of

Lord Saville's report refers to

the legacy of Bloody Sunday. He

says the events of that day

were a tragedy for the bereaved

and the wounded but that Bloody

Sunday was a catastrophe for

the people of Northern Ireland

because it fueled anger and

violence towards the British

army. On behalf of the

government, indeed on behalf of

our country I am deeply sorry.

The euphoria following the

Prime Minister's apology this

week is enough for some. The

public prosecution service is now considering whether charges

should be laid on the basis of

the Saville report or whether

instead it might be better to

draw a line under that painful

day once and for all.

That's all from us. Lateline

biz rr coming up in a moment.

If you would like to like back

at our interview with Masayuki

Komatsu or review any stories

or transcripts you can look at

our website. Here's 'Lateline

Business' with Ticky Fullerton.

Thanks Tony. Tonight the Gulf

of Mexico oil of Mexico oil spill disaster

set to change oil exploration

worldwide. One would imagine

this is going to spread

internationally. It's going to

become more difficult for

companies all over the world to

operate. Missing in action,

questions raised as to why Australian fn companies are

staying out of Asia. We do not

compete with Australian

companies however because they

are not there. Indeed I'm

reminded of the infamous tourism

tourism Australia catch cry. Where the bloody hell are

you? Trading places, what

happens when employees buy the

company. Employee owned

companies have management

structures just like other

companies. First companies. First to the markets

and doubts about the strength

of the US recover y sapd

confidence. The All Ords was

down 0.5% while the ASX 200

lost 31 points on light

volumes. Japan's Nikkei dropped

below the 10,000 mark. The Hang

Seng up a little and the FTSE

is also in positive

territory. BP has bowed to

pressure from pressure from the Obama

Administration and established

a $23 billion fund to cover the

cost of both the clean up and

compensation for the huge oil

spill in the Gulf of Mexico.

It's an environmental disaster

which will have ramifications

for the oil industry all over

the world including Australia.

Andrew Robertson reports. As

the oil washes up on the shores

of the Gulf of Mexico the wash

up for the oil industry is that

its world has changed forever. President Obama has banned

drillDrilling in the Gulf of

Mexico for 6 months but for

long time resources analyst

Gavin Wendt the other worry is

other parts of the world will be off limits

permanently. Alaska is one of

the more high profile sensitive

areas in the United States and

wund would imagine this is going to spread

internationally. It's going to

become more difficult for companies all over companies all over the world to operate. One of those companies

is Australia's BHP Billiton

which has been pushing hard

into the Gulf of Mexico as it

searches for new sources of

oil. It's going to be a delay

in terms of the amount of

activity that's going to be

going on and that has to impact

in terms of companies like BHP

quickly, how aggressively they

can drill, how quickly they can

bring new fields on stream and

that's going to have a long-term impact on long-term impact on the oil

price. Oil explorers won't be

able to wait for the Gulf of

Mexico to reopen though and

they're already looking Els

where. Dr Mark Tingay from the

school of pe trom Yull at the

University of Adelaide say two

other locations are become becoming increasingly popular.

The Gulf of Mexico, places of

offshore Brazil and offshow

West Africa they are the main

air glas the world where that

sort of drilling is sort of drilling is being conducted. The catastrophe is

almost certain to lead to a tough regulatory response from

the Obama Administration,

something that will be watched

closely by governments around

the world. At the moment in the

United States oil exploration

is dominated by

self-regulation, something Mark

Tingay believes contributed to

the cause of the BP

accident. In the case of deep water drilling in particular

where we're looking at costs that can be a

that can be a million dollars a

day, a matter of hours saving a

few hours here and there aends

adds up to a lot of money and

there's po ten fshl companies

to cut corners. It will add to

the cost of drilling for well

which willed a to the pressure

of deeper drilling. It's only

become commercially viable with

the high oil price so. If the

oil price isn't high and - or

if prices to drill these wells

are - if prices to drill these wells increases then drilling

those well might not be

commercial. While Australia

doesn't have the intensity of

oil drilling that's seen in the

United States, Gavin Wendt says

there are lessons for the Australian Government,

particularly around how it will

respond to a major oil spill

here. The key thing that's come

out of the BP spill is that

whilst BP is directly

responsible, basically after

the first week there was

certainly local authorities and

probably federal authorities

could have moved much faster in

terms of implementing a clean

up procedure. The Federal

Government will find out how it

fares in that department

tomorrow when the report of the

Commission of Inquiry into one

of Australia's worst oil leaks is released. Oil spilled is released. Oil spilled for

more than 2 months last year

from the Montara well head off

the northern coast of Western

Australia causing a slick 14

kilometres long and major

damage to marine ecosystems.

The damage spread to East Timor

which is threatening to sue

both Canberra and the Thai

owners of the Montara well. Now

for a look at local markets I

spoke with Juliette Saly from spoke with Juliette Saly from

Commsec. The market was sagging

across most sectors tooz, was it time for a

breather? Consolidation was

really the name of game today.

We had both major indices

recording losses in the wake of those solid gains yesterday and

also a pretty lacklustre

offshore lead. The ex-spiry of

the share price index futures

contract also weighed on

volumes so we saw the first

significant fall on our share

market in 7 days and it really

was those key player, the

energy, mining and financial

stocks drag ck us lower. BHP

was off more than 1% and the

NAB was the worst out of the

big 4 today. On a more positive

note construction giant

Leighton Holdings has announced

that it's secured $1.5 billion

worth of new contracts. That

kicked the share price up, did

it? It certainly did. Leighton

announced this early today and

it really saw a vote of

confidence from shareholders,

the fact that Leighton has won

two significant contracts in

Australia and Indonesia, one is

a 6-year extension of an

original contract so it's

certainly showing there is

going to be value in growth

coming out of these deals.

Leighton was the front run er

from the outset on the market

and it closed higher by more

than 2% today or 70 cents at

$33.01, so certainly one of the

most stocks which were outperforming the overall

market. Another one was the

troubled Sigma Pharmaceuticals

which shot up today, a day

after naming a new chief

executive and ahead of Monday's

AGM, what's going on

there? Well investors seemed to

have a vote of confidence in this announcement yesterday

that the former finance chief

Mark Cooper is coming in as

incoming chief executive. Sigma

has been under quite a lot of

pressure of recent times. There

is speculation of takeover

talks and the AGM is certainly

going to outline a number of

these concerns that

shareholders have really been

grappling with. But I think the

announcement or the formal

announcement of the new chief

executive was really a vote of

confidence in the company and

shareholders appeared to like

this move. Yesterday Sigma was

up by 3%. Today up another 9%

to 54 cents and the health care

sector overall the best

performer on the share

market. And among other sectors

gold stocks have been stand out

performers, why's that? We saw

the price of gold actually rise

in Asian trade so a bit of safe

haven gold - buying in the gold

price going on there. The gold

price rallying by around US $5

during the Asian session. So we

saw good movement coming

through from our key players.

Newcrest Mining was up by about

1.5% and Lihir gold up by 1%. I

think also the reason these

stocks have been doing well is

it's pretty much a done dell

Newcrest mine willing take over

Lihir gold. There's no other players on the scene there so

we're seeing quite a bit of

confidence coming through on

that as well. Thanks for

talking to Lateline Business.

To the other major movers on

our market now. Weak US housing

figures weighed on building

materials companies. James

Hardie was down nearly 4%.

Boral down 1.7%. QBE lost 9