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Tonight, Professor Garnaut's

book of revelations - it's

urgent and it will cost.

Climate change is a diabolical

policy problem. World Youth

Day laws facing a legal

challenge. We are really

concerned that people are free

to protest in the city. Run out

of town - a paedophile sent

packing in Queensland. And it's

Williams against Williams in a

Wimbledon finals show-down.

Good evening, Juanita Phillips

with ABC News. It's diabolical

to deal with but even worse if

we don't. Professor Ross

Garnaut has delivered his plan

for tackling climate change,

warning of dire consequences if

there's not urgent action.

Professor Garnaut calls for a

broad Emissions Trading Scheme

including petrol. Starting in

2010t would be introduced

slowly, freezing the price of

carb frn the first two years.

He says billions would be

raised in revenue from permits,

with half of it to be used to

compensate households and if we

don't act, he says agricultural

production in the

Murray-Darling basin would be

severe ly affected and the Great Barrier Reef would be

dead by the middle of the

century. Political editor Chris

Uhlmann reports on what could

become the biggest plan for

economic transformation in Australia's history. It's hard

to over-State the challenge

posed by combatting global

warming. Climate change is a

diabolical policy problem. That's because only global action can slow the

Garnaut says Australia damage but Professor Ross

shouldn't wait for the world.

Our terms of trade will be

damaged more by the effects of

climate change than would those

of any other developed

country. He proposes the

Government sell greenhouse gas

perimates to companies and

allow them to be bought and

sold, applying a price to gases

like carbon is design ed to

force a change in the way the

nation does business, from high

carbon energy sources to low

emission technologies. Costs

will be passed to individuals

through higher electricity and

fuel prices. What this is all

about is encouraging people to

economise. In the first two

years the carbon price would be

fixed, after that market forces

kick in, reaping billions in

permit sales for the Government

to compensate the losers. 30%

should go back to households,

30% to protect energy intensive

trade exposed industries and

20% pour under to low emission

technology research and

development. We will put every

cent of money achieved through

the ETS into ensuring

Australian households and

businesses can adjust.

Professor Garnaut doesn't

believe electricity generators

should be compensated as the

price of their investments

falls and warns against being

too generous to exporters.

Almost every company in

Australia is trade exposed and

emissions intensive. He wants

petrol included in the trading

system and opposes the

Coalition's plan to lower fuel

excise as the price rises. It

would send a funny signal.

Anyone who does thinth a dollar

70 a litre is a price signal is

living on a different planet. The Government will

have to think long and hard

before accepting theed vice. It

has been careful not to say it

will accept every

recommendation ja. We will

consider carefully the advice.

I'm just one input into the

Prime Minister's thinking and

he's just one input into mine.

The next outputs will be the

Government's response later

this month. Credible but

Conservative, that's the

verdict from environmental

groups who say the Garnaut groups who say the Garnaut

report is a prescription for

action but fails on urgency.

Industry though says having a

transition period is a good

idea. Its view is that a carbon

economy is a long-term venture

and we need to get it right.

Environment reporter Sarah

Clarke. Professor Garnaut's

call for urgency won over environment groups but opting

for a 2-year transition is

considered too slow a start.

We'll need a much stronger

alternative policies to turn

the corner on still rising

pollution. Industry says a

2010 kick-off for a scream is

achievable, a 2012 launch is

more palatable. This isn't a

short-term reform, it is going

to last for the rest of the

century and I think a couple of

years at the beginning getting

it right will be time well

spent. Professor Ross Garnaut

is yet to declare any targets

but even with emissions cuts,

the report says the Great

Barrier Reef could disappear

and the Murray-Darling could be

reduced to barely a trickle.

If we want a really good chance

of handing on a healthy Great

Barrier Reef to our kids and

avoiding devastating droughts,

we need to go further and we

need to go much faster. Carbon

capture is listed as a viable

solution. The mining union says

the recommendation to spend $3

billion a year on low emission

technology will ease the

transition. For restoring an

industry and preparing us for a

clean energy future, is cheap

as chips. But the Australian

Greens say solar and wind power

are the losers in this report

and burying carbon is risky.

It's not available, it won't

bow for a long time, it's not

in the equation when it comes

for urgent action. Professor

Ross Garnaut says the international community is already too late and Australia

is lagging behind others.

Diplomacy and money are central

to his plan for global action

but he says it's not too late

for Australia to be part of an

international climate deal when

Kyoto winds up in 2012. And

tonight's Lateline will have an

extensive interview with the Climate Change Minister Penny

Wong. As the Garnaut report was

being handed down, NSW took a

step towards embracing the

concept of clean coal. The

State's launched a pilot plant

to capture carbon dioxide at

the giant Munmorah power

station on the Central Coast.

On a day when anything rosy

seemed illusory, there was a

rush to be seen to do something about climate change and

something else about the

planned sell-off of power

stations. Stop the sell-off!

Officially this day was billed

as a good news story about the

commissioning of a system to

reduce the by-product of all

coal-burning power stations

while looking at ways of

burying it. This is an

important and historical

project that will be part of the technological solutions. Using ammonia gas,

this set of pipes and fans is

designed to absorb some of the

CO2 before it can go up the

stacks and so the trial began,

or so it seemed. Even if this

pilot is successful and leads

to the capture of 3,000 tons of

CO2 every year and even if they

can find some way to store it

and even if it's picked up by other power stations around the

State, it's still only a drop

in the bucket. This one power

station alone produces 1.5

million tons of CO2 every year.

That figure comes from the

Delta Energy website. It seems

it's a bit understated. About

2 million tons per annum.

Moments after the Minister

switched it on, the CEO

switched it off. We've temporarily halted the commissioning process. It

seems there's a bit of work to

do. We should in fact be

investing in renewables and

energy efficiency. We don't

need any more of these symbolic

time-wasting events. Even the

most optimistic projection will

see 95% of CO2 always escaping

into thin air. The tough new

laws brought in to stop people

annoying Catholic pilgrim s

have so annoyed civil

libertarians, they're planning

to challenge them in court. The

State Government is also be

rebuffed on another move to secure the World Youth Day

celebrations. The SES and Rural

Fire Service have turned down

an offer to help police the event, saying they don't

consider it a job for

volunteers. The police have

already been in touch with many

potential protesters. Pope

Alice has been a regular

fixture at mardi gras and along

with Lucifer Fox, they're

planning a trip to World Youth

Day. We want them to realise

love and freedom is under

threat and one way to do this

is kiss. Artist Luke Roberts

says he's received a call from

police asking about his protest

action for the Pope's visit.

It does make you feel under

scrutiny and a little

vulnerable. And it seems the

police have been in touch with

most potential protesters.

There was issues with

flamboyant costumes, there was

issues with banners. We are

really concerned that people

are free to protest in this city. The Council for Civil Liberties says the tough

regulations which will be

enforced for the next month

undermine public confidence in

the law. We're looking at a

legal challenge to the laws to

see if they're valid. These are

regulations which are

wide-ranging and so indeterminant. The Catholic

church says it's all an over

reaction. We've never asked a

a church or as World Youth Day

officials for any special, new

or unusual powers for the

police. We don't think that's

necessary. We respect the right

of people to peaceful protest.

Volunteers from the State

Emergency Service and rural

fire service have been given

increased powers to work

alongside police and control

conduct during World Youth Day

events but both services say

they're uneasy about that and

they've told the Government

they don't consider it to be a

job for volunteers. Instead,

they say they're more

comfortable with traffic

management and bag searches.

Convicted paedophile Dennis

Ferguson has been hounded out

of town again. Last night,

local protesters forced

Ferguson to leave his latest

home in Miles in southern

Queensland after media reports

revealed his where about. It's

not the first time he's been

forced to move on and now there

are calls for new laws to stop

the media telling the public

where sex offenders are living.

News of Dennis Ferguson's

decision to flee Miles

overnight spread quickly. The

kids can go back to living the

way they should, free and

happy. We don't need rubbish

like that in town. Late

yesterday, a group of angry

locals protested outside

Ferguson's home, demanding he

leave town. Our community is

quite close knit, where our

children can run the streets

and play. Now do do we have to

lock them up? It wasn't long

before they got their wish. He

was removed from the region at

the request of the people and

the people where he was

staying. He is not a prisoner,

he is as free as you and I are

in the community and has every

right to go from one place to

another. The 60-year-old

convicted paedophile moved to

the remote property earlier

this week after a judge threw

out fresh child sex charges.

Judge Hugh Botting didn't think

Ferguson would get a fair trial

because of his notoriety. He

has been run out of several

Queensland towns over the

years. Civil libertarian Terry O'Gorman blames some sections

of the media. We're calling on

the Premier to change the law

to make it an offence for the

media to reveal where the

released paedophile is

libbing. I think we've shifted

the issue to another community. I would prefer to

know he's here and I can keep

my children away. If I didn't

know he was here I would be

very upset. Miles residents

said they'd find out anyway.

It is a small town and everyone

knows everybody else. Police

won't say where Ferguson has

been moved to. No matter where

Dennis Ferguson is living, the

Opposition says the Government

must guarantee the community's

safety by ensuring there are

enough police to watch him

around the clock. The

Attorney-General's appeal against Judge Hugh Botting's

decision to release Ferguson

will go before the courts this

month. Police are still

searching for a man whose young

son was found floating in the

Tweed River yesterday

afternoon. The unconscious boy

was revived by an off duty

nurse. Today the police found

the boat the 5-year-old was

last seen in with his father.

Earlier they'd been spotted by

a fisherman who is told the man

the young boy should have been

wearing a life jacket. I think

he was going to take the kiddy

for a ride and not fish but we were worried because of the age

of the kid without a life

jacket. The 5-year-old is still

in hospital but has regained

consciousness and is talking.

Hundred of Zimbabweans have

sought refuge in the US embassy

in Harare. More than 300 people

turned up in the grounds of the

embassy, many carrying their meagre possessions and saying

they fear for their safety,

including mother, children and

some people who said their

homes had been destroyed. Many

had come after a raid on the

headquarters of the Opposition

MDC. The embassy is trying to

find alternative accommodation

for the refugees. Animal rights

protesters have gate-crashed a major Australian wool industry

event in Paris. The protesters

disrpteded a fashion show

calling for Australian wool

products to be boycotted. The

reason is the pract offence

mulesing which they say is

cruel. Just eight PETA

protesters to keep the pressure

on the Australian wool industry

over mulesing. This is

Australia's shame. We want

people in the fashion industry

to understand the cruelty involved. People didn't come

to see that. Tonight was about

a celebration of a new

beginning and a celebration of

the qualities of Australian

merino wool. Those qualities

on show in a collection from 10

emerging designers vying for

the inaugeral Australian marina

wool prize. Very high quality,

very creative. It's a $400,000

promotion by Australian wool

innovation to help a new era of

designers in wool. I think

they're very diverse, very interesting. I think they

represent a spectrum of design

floo. For the global fashion

media, the winner, a

30-year-old thinies designer,

is the big stories, not Peta's

campaign. Has that had any

traction in the fashion media? The Pe te, a campaign

may not be working with the

fashion media here in Paris but

it's having an impact at home.

AWI's chairman has publicly

threatened to censure any

directors who speak out without

approval. Tonight's top story - a draft report on climate

change calls for urgent action.

And still to come, high honours

for Australia's diminutive diva.

diva. The Federal Government is

toughening its approach to

foreign investment in resource

companies. In comments clearly

aimed at the Chinese, Treasurer

Wayne Swan warned he'll be

taking a much closer look at

some deals where the investors

are also major customers.

Treasurer Wayne Swan has warned cashed-up foreign investors

that it won't be open season on

Australia's resource

companies. I've made it very clear that

clear that we will look very

closely at those situations

where the buyers of our

resources seek to control the

resources companies. It so

happens he made it clear at an

Australian Australia-China

business council events.

Chinese resource buyers have

already become significant

players in Australia's mining

industry, taking major stakes

in companies like Rio Tinto,

Mid West Mining and

Murray-Darling. The Treasurer

says Chinese investment is

welcome but it's important

Australians gate fair return.

That Australia remains a

reliable supplier in the future

to all current and potential

trading partners. The

Treasurer denied slowing down

Chinese investment approvals or making conditions more

restrictive but a specialist in

foreign investment says today's

comments won't help Australia

gain access to China, nor will

it ease Chinese concerns about

Australia's foreign investment

policy. That kind of policy is

restrictive to the Chinese investment in Australia, especially in the resource

sector. There are some

different issues to consider

but I don't think there is any

deviation at all from

Australia's open policy to

foreign investment. It remains to be seen whether doors will

be closed to Australians in

Beijing as a result. On to fOns

now and the local share market

bounced back today, ending 5

straight sessions of losses. Here's Alan Kohler. The share

market was due for a rise, in

fact if investors hadn't gone

back in today, after five days

of falls, they never would

have. The All Ordinaries went

up 1.5% and pretty well all the

leaders rose. Retailers, banks

and mining companies. Origin

Energy fell after announcing a

new power station and Fosters

went down 3 .5%. The market

still looks pretty weak but at

least something is up, dividend

yield is the highest since 1991

because prices have fallen and

dividends so far have not. But

remember that in 1990 yields

were unusually high, not

because share prices were too

low but because there was a lag

between the economy turning

down and companies cutting

their dividends. US shares went

up last night by as much as

0.7% on the Dow Jones despite

another rise in the oil price

to another record. In fact it

was the energy stocks that led

the rises on Wall Street. There

was an interesting difference evident last night between

Europe and America. In the US,

more gloom in the labour market

with another fall in job

numbers. In Europe, a hike in

the official interest rates as

the European Central Bank

confirmed its reputation as the

toughest Central Bank in the

world, although the governor

said he no longer had a bias

towards raising them again.

Speaking of rates, St George

Bank had to put up its mortgage

interest rates today because

its cost of funds is going up

because it gets lot of money on

the international market still.

Finally the Australian dollar

fell a bit today but it's still

well above 96 US cents. I'm

back Sunday at 10 with 'Inside Business' and a special program

on emissions trading with Professor Ross Garnaut and

Warwick McKibbin. 'Til then,

that's finance. The head of the

NSW Health Department says

there's a culture of bullying

one the Ambulance Service. A

State parliamentary inquiry has

received more than 150

submissions and the Opposition

says most accuse management of

bullying and harassment. The Health Department director-general says the

managers at the Ambulance

Service are decent honourable

people but problems do exist.

I do believe that there are

pockets of bullying and

harassment in that organisation

and I believe that we have to

work diligently to stamp that

out. The committee also heard

claims that an ambulance

officer committed suicide in

2004 after being bullied by

management. The Williams

sisters have hit out at critics

ahead of their meeting in the

women's final at Wimbledon. German Rainer Schuettler is the

last player into the men's

semifinals after a marathon

match against Arnaud Clement.

Venus and Serena Williams won

in straight sets before giving

a serve to those who suggest

their match won't be a genuine

contest. Russia's Elena

Dementieva did damage with her

passing shots against Venus

Williams but more with her

passing comments. After the

American's win, the 26-year-old

insinuated the outcome of

matches between the Williams

sisters could be rearranged. I

cannot imagine playing someone

from my family. It's really

hard and for sure it's going to

be a family decision. The

fifth seed later retract ed the

comments but the air was laden

with contempt. The main thing

is that I find the question

pretty offensive because I'm

extremely professional in

everything I do on and off the

court so any mention of that is extremely disrespectful for who

I am, what I stand for and my

family. After physically

dominating a tighter than

expected semifinal against

Chinese wild card Zheng Jie who

forced a second set tie

breaker, Serena Williams also

took offence. I think that

you're stating opinions. I have

had a very classic final for

instance against her in the

Australian Open. It was three

extremely tough sets. This is

the finals of Wimbledon. Who

doesn't want it?? Selecting

Australia's 18-man football

squad from a cast over 50 has

been a juggling act. Harry

Kewell was the starkest

omission, having announced a

3-year deal with Turkish club

Galatasaray. In the last 24

hours he couldn't really commit

100% to coming. Kewell knows

how deep the passion burns with

his new club, having been sent

off against them during a

turbulent UEFA club two years

ago after two fans wurp stabbed

to death in istapble. Jade

North, David Carney and Archie

Thompson were the three

over-aged players selected from

12 possibles. With overaged

players without FIFA power it

makes it difficult. Yit yit was

omitted from a sign expecting

benefits from its Asian

conditioning. It's going to be

an advantage for us and I think

some of the teams going there

won't know what's hit them. It

is touted as the strongest women's basketball team

Australia has picked for an

Olympics. The Opals squad for

Beijing includes six Olympians

and most of the players who won

gold at the 2006 world championships. We have been up

there for a number of Olympics

now and we're going to try to

get the gold. Silver medallists

in Athens, the Opalses warm up

with two home games against

Brazil. Australia has been

forced to reshuffle its pack

for the second rugby test

against France in Brisbane. A

groin injury to Nathan Sharpe

opened the door for Dean Mumm.

Dean Mumm still holds a New

Zealand passport but after

shifting across the Tasman with

his family as a toddler, the

24-year-old says there's no

doubting his allegiance to

Australia. I'm basically

Australian, I just still run on

a Kiwi passport. That and the

family are my only connections

back there. Mumm was called to

the side after sharp sharp

sharp broke down at training

and has been given the job of

calling the Wallabies

line-outs. It is a great

responsibility to call the

line-outs and it's a great

chance for me. After losing

last week's opening Test by 21

points, France has made seven

changes to its starting line-up

and the Wallabies are bracing

for an all out assault from a

new look French pack. They're

going to throw everything they

can at us, anywhere that is on

the field. They will have a

real go and it will be a

passionate French side. It

will be a battle of wills

before a battle of wits

probably. It's the Wallabies

final hit-out before their

Tri-Nations opener against the

Springboks in Perth in a

fortnight. The Sydney Swans say

they haven't made an offer to

Carlton star Brendan Fevola.

There's been talk the Blues

forward would sign a 4-year

deal with Sydney worth $3

million when his current

contract expires but the Swans

say they haven't spoken to

Fevola and expect him to sign a

new deal with Carlton. If that

was to change, we'd sit down

and talk as a footy club as to

whether we believed that

Brendan would fit into the

club. Fevola is second on the

AFL goal-kicking ladder this

season. It's a long way from

Ramsay Street to Buckingham

Palace but Kylie Minogue has

made the journey and been given

one of Britain's highest

honours. The Australian singer

was made an officer of the

Order of the British Empire

today. The Prince of Wales

meets the princess of pop. Ms

Kylie Minogue for services to

music. It's not the first time

the celebrity songstress has

had an audience with the prince

but it was the first time she

had been to Buckingham Palace.

She described the award as the

highlight of her career. I

actually just said to my sister

before - I said, "We're in

Buckingham Palace." I said,

"We're not in Melbourne

anymore, totow." It's a great

honour and I'm really

thrilled. It was her singing

career that brought the star to the international stage.

# I'm spinning around

# Move out of my way... She

notched up a string of number

one hits and in the process she

reinvented her music and

herself, making the transition

from pop princess to sultedry

diva. After surviving breast

cancer three years ago, Kylie

Minogue made an emotional

comeback with her homecoming

Showgirl tour. The Australian

entertainer was just 1 of about

100 people to be honoured at

Buckingham Palace today and

Kylie Minogue says it was a very humbling experience to

receive her honour in the

company of people from all

walks of life. I think this symbolises my communication

with my audience and people

around the world and that's

incredible. I think that's an

honour and this symbolises

it. She's now one of the

biggest celebrities in the

world and her presence at

Buckingham Palace thrilled

these tiny fans. Then the pop

princess swept out of the

palace to spend the evening in

a low-key celebration with her

family. Time to check the

weather now and how's it look

for the school holfr holiday

s? Plenty of cloud and a bit

of rain to start the holidays,

although conditions in Sydney will improve on today.

A strong high moved to the

east and that's why we saw

strong showers today.

We had light snowfall

recorded on the high ground of

the alpine areas. 40

A change in wind direction

along the NSW coast allowed the

cloud to build through the day.

Isolated storms off the north

coast and southeast Queensland.

It's cloud in WA in association

with a front will strengthen as

it moves into the bight by the

end of the weekend, combining

with moisture being drawn over

the State from onshore winds in

the Tasman Sea with rain

developing in the rest of the

State later sand. Tomorrow, any

showers should be on the coast

and north of Sydney.

Thanks, Graham. Tonight's top

story - the Government's much-anticipated report on

climate change has called for an Emissions Trading Scheme

without delay. That is ABC News

for this Friday. Stay with us

now for Stateline with Nick

Grimm. Goodnight. Closed Captions by CSI

CC This week, the small southern highland shooting

range which might become a

large 7 day a week complex if

Frank Sartor allows it. To me, Frank Sartor's front garden

would be a better site than

this one for a shooting

range. Also cold Schnapps. How

to make the Snowy Mountains

economy less reliant on snow.

And Iguana-gate the musical.

# There is nothing like a dame #

Good evening, welcome to Stateline. I'm Nick Grimm

sitting in for Quentin

Dempster. So how sharp is the

Shooters'Party when it comes to

using its political influence?

Events over the past week in

NSW have demonstrated you don't

need a gun to commit acts of