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(generated from captions) And next, beat the gypsy. Er, beat the gypsy.

who do with another man? How you call a man Yes. Homosexual?

You walk like homosexual. No. Like this. La. Yes. Yes. Yes. With a smile. Do you know Kazakh music? No. I'm not familiar with it. No. Do you know Corky Buchek? He is a number one star. The song 'Bing Bang'. Dang dang dang dang dang dang SINGS: # Bing bang (Clicks) # Dagga dang dang dang # Bing bang bang (Laughs) Good. # De da degga dada (Clicks) # # Di da di da ding. I do not know that. No. You know this? how to write country song? Please, Mr Wagoner, can you teach me that maybe would help you. I'll try. I'll tell you some tips about my first wife Oxanna. It is a story Before she die. # SINGS: # This is a song about my wife How did she die? Er, she die in a field. Erm... Oh, she... Shh, bullet from a hunter. An accident? Because... Oh, I see. ..Of her size, he think she a bear. much hair on body too. Because she have Alright. OK. Yeah. OK. Go ahead. Excuse me. My sister make my family very proud.

Sure. Should I write about her? Almaty Chamber of Commerce, Er, she was voted by as best sex in mouth. in country of Kazakhstan. She is number two or three prostitute Yes. That's wonderful. That's great. you know? Because that's a talent too, Alright everybody, let's start with in Tucson, Arizona. what we're doing here all the way from Kazakhstan, Please welcome Berote and his cowboy estana band. they are of hootin', hollerin' and applause. Give them a nice round APPLAUSE

(Speaks foreign language) This is song called... There is a Problem. It mean, 'In My Country, CHEERS There is problem SINGS: # In my country # And that problem is transport # It take very, very long # Because Kazakhstan is big # Throw transport down the well

# So my country can be free # We must make travel easy # Then we have a big party CROWD CLAPS IN TIME There is problem # In my country # And that problem is the Jew # They take everybody money # They never give it back # Throw the Jew down the well

# So my country can be free # So my country can be free # You must grab him by his horns

# Then we have a big party # If you see the Jew coming # You must be careful of his teeth # You must grab him by his money # And I tell you what to do # Everybody

# Throw the Jew down the well # Throw the Jew down the well # So my country can be free # So my country can be free # You must grab him by his horns # You must grab him by his horns # Then we'll have a big party # Then we have a big party # Throw the Jew down the well # Throw the Jew down the well # So my country can be free # So my country can be free # You must grab him by his horns # You must grab him by his horns # Then we have a big party. # CHEERS Thank you. THEME MUSIC Hang on a sec'. MOBILE PHONE RINGS

Hello. Who is dis? It's Harpo Colin. Harper Collins. Who is dis? Harpo or Colin? It's Colin. What, you wants to offer me money dat you is heard about me doin'? for da book How much? ?200,000? What? I won't chat about it to anyone else. Yo, listen, I needs to decide right now, does I? Alright. Give me one minute. I is just in da bath. Safe. Give you a ring back. Thank you. Does you know who dat was? Another book person. like that over the phone. Yeah, but they wouldn't do that

You heard it. You heard it. Well dem did it. Dem did it. They would send a written contract. Da camera. (Beatboxes) Check dis RAPS: # Yo, diggity Lookin' well old # Me maybe in a suit, Your talent # But homies if recognise # You can win da gold. # Safe. Aiight.

This program is not subtitled Tonight - homeless in Belgrade, now he's stateless in Sydney. ..as I feel that, um... I 'm absolutely gutted, um.... to return back to Serbia, you know. The minister wants, um. wants me by that. Obviously, you know, I'm shattered from Serbia on compassionate grounds They've brought him all the way seems to have gone out the window. and whatever compassion was there the former thief, Robert Jovicic, The Federal Government tells to apply for citizenship in Serbia, Australia home despite having called for most of his life. This program is captioned live. I'm Maxine McKew. Good evening welcome to Lateline, with the supreme leader Tonight - an exclusive interview Hamas. of the Islamic militant group in a moment We'll hear from Khaled Mashaal and we'll be crossing to Perth Carmen Lawrence to talk to former ALP president would prefer to forget. about the week that Labor

But first our other headlines. Ports in a storm, an Arab take-over of key US docks, American congressmen block while Donald Rumsfeld asks and Afghanistan. for more money for the wars in Iraq Throwing away the key, at the notorious Abu Ghraib Prison the US Udecommissions its role and counting the cost of division - to fall back into line. Kim Beazley urges his troops Robert Jovicic Joy has turned to despair for after returning home yesterday. granted Australian residency. Today he found out he won't be his access to welfare benefits Instead, the Government has cut off for Serbian citizenship. and is pressuring him to apply in 2004 Jovicic was deported to Serbia because of his criminal record. His face said it all - returning to the country he's called home since the age of two, greeted by his sister, Robert Jovicic was overcome with emotion after finally landing on Australian soil. I have always maintained that I should never have been removed from Australia. But today, a trip to the Immigration Department in Sydney - and a reality check. The Government might have brought him home, but apparently he's still not welcome. I'm absolutely gutted as I feel the minister wants me to return back to Serbia. Obviously, I'm shattered by that. Mr Jovicic has been given a temporary visa for four weeks with strict conditions attached - including keeping the Department of Immigration advised of where he's living and being required to report to Immigration and police officers. And despite on-going health problems, the visa also cuts off his access to Medicare - a decision that seems at odds with Immigration Minister Amanda Vanstone's comments as recently as last week. He will come back on a special purpose visa and may, at the expiration of seven days, be given another visa which would entitle him to Medicare. I mean, they've taken his Medicare entitlements away. I mean, he's got what seems like absolutely no assistance. You know, they've brought him all the way from Serbia on compassionate grounds and whatever compassion was there seems to have gone out the window. Mr Jovicic, a former heroin addict with more than 150 burglary and theft convictions against his name, was deported to Serbia, his parents' birthplace, despite never having lived there. In a letter handed to Mr Jovicic today, the Immigration Department stepped up pressure on him to have him take out Serbian citizenship, saying: The minister cannot require anyone to apply for nationality, including Australian nationality, so I think that's why it's been termed or couched in such terminology that Robert should act in good faith. They want him to apply for Serbian citizenship. Why? Why would he want to do that? He's an Australian. And Mr Jovicic, his family and lawyers are accusing the Government of duplicity. At that meeting I took the minutes of what was said and I have looked back at my notes on many occasions and there was no 'maybe' about anything. We were led to believe that the resident return visa was what they were considering to give Robert. Set up, that's how we feel. Mr Jovicic is taking legal action against the Federal Government for compensation over his deportation. Tom Iggulden, Lateline.

The supreme leader of the Islamic militant group Hamas has told the ABC that the new Palestinian Government will accept financial aid from Iran. In an exclusive interview with Lateline in Damascus, Khaled Mashaal confirmed for the first time it will take up the offer even if it angers the United States and Israel. In January, Hamas swept to power in the Palestinian parliamentary elections, defeating the once-dominant Fatah Party formed by the late Yasser Arafat. But Hamas now faces a predicament - if it does not renounce violence and recognise Israel

its new government could be isolated and bankrupted. Khaled Meshaal has also warned

that the cease-fire involving Hamas and other Palestinian militant groups is under threat from Israeli aggression. Middle East correspondent Mark Willacy reports. From child refugee to political exile, to the supreme leader of Hamas. Khaled Meshaal is often described as an ideological hardliner, a brilliant orator and the architect of a suicide bombing campaign which has claimed hundreds of Israeli lives. And while the new Hamas-led Palestinian Government will be based in the West Bank and Gaza, most of the decisions will be made here in Mr Meshaal damascus headquarters. REPORTER: Khaled Meshaal, thank you for talking to Lateline. Is Hamas still committed to the destruction of the state of Israel? TRANSLATION: We say when Israel actually decides to withdraw from Palestinian land back to the 1967 borders, pulls down the wall, dismantles the settlements, leaves East Jerusalem, acknowledges the right of return for the Palestinian refugees and releases all the prisoners, then we in Hamas will take serious steps to make real peace.

But before that, we will not deal with hypotheticals. So if Israel ends the occupation, would you accept a two-state solution based on the 1967 borders? That is not peace, that is an declaration of war on the Palestinian people. They are still on a large area of Palestinian land. With the wall and the settlements, with the refusal to leave East Jerusalem,

Olmert is repeating the mistakes of Ariel Sharon by announcing war. But for now, the war between Israel and Hamas is being fought largely on the diplomatic battlefield. The Middle East Quartet of the United Nations, the US, the European Union, and Russia has warned that unless the new Hamas-led government renounces violence and recognises Israel, it will be starved of international funds. Instead of buckling to this pressure, Khaled Meshaal has been leading efforts by Hamas to find money elsewhere,

travelling from Tehran to Moscow in search of support. Will you accept money from Iran? We will accept financial support for the Palestinian people from any country in the world. This is our right, but we will never accept any conditional support. However, the Arab and Muslim countries are not putting any conditions on funding. Israel fears that any Iranian aid will be channeled into Hamas's military wing

and the result of that will be more suicide bombs on Israeli streets. But Khaled Meshaal argues that in recent weeks, it's been Israel doing most of the killing. And the Hamas leader warns that continued Israeli aggression could destroy the year-old cease-fire agreed to by most Palestinian militant groups.

TRANSLATION: What we can we do? We calmed the situation down, we are the weaker party, we don't have tanks or fighter planes, we are defending ourselves with very simple weapons. The international community should re-direct its pressure

onto the occupier. Israel's aggression is discouraging us from renewing the cease-fire. This week, Israel's Defence Minister Shaul Mofaz warned that no Hamas leader, however senior, is immune from assassination. Khaled Meshaal knows what it's like to be the target of an Israeli hit squad. Nine years ago, two Mossad agents injected him with poison on a street in Amman. They were caught, and in exchange for their freedom, Israel handed over the antidote in time to save Meshaal's life. We are not afraid of death and I saw death in 1997. This is the picture of Sheikh Ahmed Yassin and Doctor Rantissi and these are more pictures of the martyrs Israel has killed. Israel's killing of these people gets us closer to our victory and will not make Israel closer to theirs. But for now, both Hamas and Israel seem unwilling or unable to move any closer towards peace. If Hamas doesn't renounce violence and recognise Israel, it faces the very real prospect of international isolation and financial crisis. But if it does bow to these conditions, it runs the risk of betraying the very principles

which it won so much widespread Palestinian support in the first place. From here in Damascus, Khaled Meshaal has to find a way out of a very predicament. Mark Willacy, Lateline. Defence officials in Washington have confirmed that Iraq's notorious Abu Ghraib jail will no longer hold its military prisoners. Iraqi detainees in US custody will be moved to new facilities now being built. The US military says it will then be up to the Iraqi Government to decide whether to close the prison completely.

Abu Graib became the focus of world attention in 2004 with the publication of photos showing US gurds physically abusing inmates. The huge cost of maintaining a military presence in Iraq and Afghanistan is becoming apparent, with the Bush Administration asking congress to approve an extra $65 billion in emergency funding. Facing a Senate Appropriations Committee, Defence Secretary Donald Rumsfeld and Secretary of State Condoleezza Rice faced tough questions about the already massive spending in Iraq,

about the possibility of civil war and when they can expect a timetable for the withdrawal of US troops. This comes as the state-owned Arab company Dubai Ports World has transferred ownership of major US ports to an American company. The move ends a revolt by Republican congressmen who threatened to block the extra war funding if the deal went ahead. But, as Stephen McDonell reports, it's a setback for President Bush, who'd strongly backed the Arab company to run the ports. President Bush's most senior cabinet members, along with two generals, went to Congress asking for a lot of money to fight a war that's going badly. And the senators from the Appropriations Committee had a lot of questions they wanted answered. Assuming this supplemental request is approved, total funding for the war in Iraq alone will reach an astounding $320 billion. Secretary Rumsfeld, what is the plan if Iraq descends into civil war? Would our troops hunker down and wait out the violence? If not, whose side would our troops be ordered to take in a civil war? Fortunately, the Iraqi government leaders and leaders in the country of a non-governmental nature have almost, to a person, stepped forward and urged calm, and argued against retaliation thus far. And that has been a calming effect. Hostility also came from the public gallery. Therefore necessary... PROTESTOR: How many of you have children

How many of you have children in this illegal and immoral war?

The blood is on your hands and you cannot wash it away! In Iraq, a surge of violence continues to sweep through most provinces, especially Baghdad.

In the last 24 hours, gunmen attacked a police convoy, injuring four police and setting one of their cars on fire. As the injured were taken for treatment, a bomb went off outside the hospital, killing two civilians and wounding nine. Another blast struck an Iraqi army patrol. Nine people - all civilians walking past - were killed. Meanwhile, the Bush Administration is facing political pressure on another front. Two weeks ago, President Bush strongly defended an Arab company, Dubai Ports World, taking over six major US ports. I think it sends a terrible signal to friends around the world that it's okay for a company from one country to manage the port, but not a country that plays by the rules and has got a good track record from another part of the world, can't manage the port. Democrat and Republican congressmen claimed this posed a security threat and said they'd block extra military funding if an Arab company was allowed into US ports. The pressure worked - Dubai Ports World has now pulled out. I'm very dismayed by the emotional responses that some people have put on the table here in the United States. That really comes down to Arab and Muslim bashing that was totally unnecessary. It's seen a loss for a president whose popularity is already on the slide. Stephen McDonell, Lateline.

The driver of a bus that crashed in Egypt - killing six Australians - has been sentenced to three years jail and fined $385. The accident happened in January

when the bus overturned on a wet highway north of Cairo. Five people from Victoria and one from Queensland were killed in the crash. 26 others were injured. The group had been participating in a cultural exchange with Egypt. The driver has paid the fine, but is appealing against the prison sentence. The Opposition Leader Kim Beazley has acknowledged that Labor is paying a political price as a result of the bitter public brawling that's engulfed the party this week.

Preselection battles in Victoria have now cost three sitting members their seats, leaving the Labor caucus divided. Mr Beazley says it's now time to focus on the main game, but he has signalled that he's sympathetic to one of Julia Gillard's suggestions

for altering the balance of Labor's factions. From Canberra, Narda Gilmore reports. Kim Beazley is the first to admit it hasn't been a good week. He says Labor's infighting has taken the focus away from blunders by the Government. This shows you the penalty for what happens when you engage in navel gazing, looking at yourselves, worried about yourselves all the time. Look at the opportunities missed. The cause of the unrest - a bitter round of preselection battles in Victoria - were finalised last night. In the end, three out of the six sitting members under threat lost their seats - frontbenchers Gavan O'Connor and Bob Sercombe along with ann Corcoran. While Simon Crean won his battle convincingly earlier in the week. Harry Jenkins and Alan Griffin only just survived - in Mr Griffin's case by one vote.

There'll be a bit of ill feeling around that's totally understandable from a number of people involved. Harry Jenkins says there are lessons to be learned. Kim's out there he's pushing policy. he's sort of berated people for what he see's as navel gazing to do with party matters, but I really think that he should realise that we can do both and that we must ensure that the way in which the party projects itself is positive . Kim Beazley has agreed to Simon Crean's demand for a face-to-face meeting next week. Mr Crean wants factional heavyweight Stephen Conroy dumped as Labor's deputy leader in the Senate. Mr Beazley says he's happy to talk.

We need in the party, we need civil relationships. There's no doubt about that. He has signalled some support for an idea pushed by leadership aspirant Julia Gillard this week that Labor's four parliamentary leaders should remove themselves from the factions. That is something certainly worth a chat. I actually have a slightly different view on that. I take the view that perhaps what they ought to be doing is attending all group meetings, that you are actually keeping in touch with everybody. Mr Beazley is less receptive to Julia Gillard's other proposals aimed at defactionalising the party. He says it's normal for any organisation to have different groups within it and while he's happy to listen to constructive suggestions it's time Labor dealt with its internal issues privately. Narda Gilmore, Lateline. With Labor seemingly in the grip of a death wish, those who want the party to actually take the fight up to the Government can only shake their heads. It should have been a winning week for the Opposition. On top of the continuing AWB scandal, there was Finance Minister Nick Minchin's exceptional candour about the need for even more dramatic change to the nation's industrial laws. There's no shortage of issues for Labor to run for, hence the anger of many voters, who actually want a viable democratic alternative. And it's observable as you read the letters pages of the nation's broadsheets - like this comment in today's 'Australian': "There is no influential political party "for the rational Liberal in Australia." Well, one senior Labor figure who has some sympathy with that view is former party president and member for Fremantle, Dr Carmen Lawrence. As far back as Labor's defeat in the 2001 campaign, she's been arguing that the Labor Party won't win elections until it completely re-thinks its organizational structures and policy mix. It's a position she maintains to this day, which is why she's agreed to talk about Labor's problems tonight. She joins me from our studios in Perth.

Dr Lawrence, thanks for joining us

tonight. What it is. Is it you are

saying to people like our letter

write tore the awn I just quoted

there, people who are wondering

there, people who are wondering when it is Labor will start looking

viable. I agree with the letter

write they're political parties,

including the ALP, are public

organisations. And they should be

accountable and open to the public

so they can see how they operate.

And it guzn't just apply to Labor.

It applies to the Liberal Party as

well. Both parties are in decline,

their membership is shrinking and

ageing and they need renewal. My

arguments apply to both politicals.

Look round every State you will see

the symptoms in the Liberal Party

and the Oppositions there. In terms

of your own camp, how do you see

of your own camp, how do you see Kim Beazley's position after a week

Beazley's position after a week such as this? He's had no end of advice?

He has. People do need to cool down He has. People do need to cool down

and have a proper analysis of

and have a proper analysis of what's going on. In the context of the

state of political parties in

Australia, the state of

parliamentary reform or the lack of

it, and to put forward an agenda

that I think will be embraced by

that I think will be embraced by the Australian people, political

Australian people, political parties should be public organisations,

should be public organisations, they should be open, they should have

bigger memberships after all, they

select the candidates, they frame

public policy and form governments.

Nigh need to be democratic and

this's be been my argument about

this's be been my argument about the Labor Party. We can't talk about

Labor Party. We can't talk about the virtues of democracy if our own

party is not democratic. Neither

party is not democratic. Neither can the lils. Both parties are

the lils. Both parties are culpaable on this. What about some of Julia

Gillard's suggestion, firstor the

leader to look beyond factional

allegiance in the appointment of

allegiance in the appointment of the frontbench? Well, I think that's

tinkering a frankly. I think that

the problems are much more deep

seated than that. That would be in

seated than that. That would be in a sense the last thing to address in

my mind. I think you have to loose

wren the hold of the factions at

wren the hold of the factions at the grass roots lev, which means you

have to have one vote one value, a

true democracy. You scrnt a handful

of people controlling the party. In

some senses it's their play thing

and both parties have become

political corporations rather than

parties. They run elections but

don't have proper members anymore.

There are a handful of MPs and

There are a handful of MPs and their staff and officials who run the

political parties in Australia and

political parties in Australia and I don't think that is healthy for the

democracy. It's notd healthy for

democracy. It's notd healthy for the ALP because we were found on the

idea of a depkssy representing

working people. How viable is it to

call for an end to the block vote,

the affiliated vote that the trade

unions have? Well, it is quite

radical but I would rather see

radical but I would rather see trade union members sign up as

union members sign up as individuals rather than have someone control

their vote. A lot of people in the

union movement don't know they're

affiliated with the ALP, don't know

there's a union official voting for

them. It's not democratic, it's not

something we tolerate in our

political system, why should we

tolerate it in our political

parties? The Liberal Party have

another set of proebs. Their

another set of proebs. Their members when they vote on policy are

when they vote on policy are ignored all together. At least our members

have an expectation they will be

listened, to although that doesn't

happen as often as it should. Root

and branch reform is required, but

we need to look very broadly at

that. How are political parties

connecting with the wider community.

That's why they enjoy a privileged

position. These problems are not

restricted to Australia. They take

this issue seriously and so we.

You say there's a need for root and

branch reform but you know the

history of your party. You have to

go back to the days of Gough

go back to the days of Gough Whitlam and Bill Hayden to find wleersd are

prepared to up-end the status quo.

One would say say it's not the

Beazley style, is it? It may not be.

If Kim were to sit down and talk

with people, he would understand

there's a deep disconsent among

members. There's lots of evidence

and wider reasons for being

concerned. If political parties are

not connecting to the Australian

community with policy making and

candidate selection, we have is to

do it in other ways as they are in

some countries by expanding the

parps of ordinary citizens in dks

si. I don't think we can sit by and

have an elected autocracy, vote

every three years and otherwise

every three years and otherwise shut up. That's not what Australians

want, or they shouldn't in my view.

Is there not a counter argument,

though, that that the system you

have can't be that broke because

have can't be that broke because the same factional arrangements are in

fact delivering success at the

fact delivering success at the State level? There are only two parties

level? There are only two parties in Australia and it has to be onetor

other. It happens to be that most

other. It happens to be that most of the State - all the State and

Territory Governments are Labor and

the national Government is

the national Government is coalition and next time round we will

and next time round we will probably see everyone change places. Does

that mean we have a healthy

democracy? I don't think it does. I

think our political parties are

failing Australians generally.

They're not involved as they should

be and I think it's one of the

reasons as the letter writer that

you quoted earlier said that people

are so disill utioned with politics.

It's not something you can sweep

under the carpet. It's something

that should be in the public. If

someone audited us in the same way

organisations in the non-Government

sector are required to be audited I

think they would be deeply shocked.

Say, for instance at the South

Australian election next week

weekend, it looks like Mike Rann

weekend, it looks like Mike Rann may be able to increase his majority

because he's gone out of his way to

find non-traditional candidates to

stand in winnable seats. Is the

difference there you have a benign

form of authoritarianism that can

produce a good outcome for the

produce a good outcome for the party - I am not suggesting it's

particularly democratic, but at the

Federal leader you have a lead

Federal leader you have a lead whore is prepared not to exercise much

authority at all? I don't know it's

a question of authority. Kim has

a question of authority. Kim has had a benign view of the way the party

operates, and I guess I don't share

that optimism. If you look at Mike

Rann and Peter Beattie, they've run

good political corporations but I'm

not sure you could claim that these

are particularly democratic

organisations and yet we give a lot

of money as taxpayers to political

parties, and we expect them to

parties, and we expect them to frame policies. But they're doing it with

only a handful of people having any

input. That's my argument. Not that

we are going to achieve these

changes overnight but let's have an

open public debate, not about the

mashination of 2 Labor Party, which

is symptomatic of the parties, if

is symptomatic of the parties, if we want political corporations running

our elections then we have to find

other ways of engaging people. It

shouldn't just be that people are

elected and then actually have

control of everything that goes on.

I for one don't find that very

satisfying. If I can, you have been

really saying much the same thing

really saying much the same thing as I said in my introduction - since

2001, five years ago, what hope do

you hold that there is going to be

much change? Well, I think you have

to keep the argument going. You

to keep the argument going. You have to try to persuade people that it's

not just a temporary aberration and

maybe I'm wrong in my analysis. But

there are global problems that a

there are global problems that a lot of other democracies have pointed

of other democracies have pointed to and they're starting to take action,

very significant naks some case.

We're alone if we think it's going

to go away. So I'm going to keep

making the argument for as long as

people will listen to me, but I

people will listen to me, but I hope some of what we've seen in the last

few weeks in the Labor Party show

just how desperately change is

needed. They don't show to me you

have to sweep it under the carpet.

They show that change is needed.

Isn't it precisely what we will see,

an attempt to smooth things over

an attempt to smooth things over and assume that thing also settle down?

I think part of the problem is the

way these things are constructed in

the media and I can understand why

the media and I can understand why a leader would want to shut everybody

up. But unfortunately when things

have gone as badly wrong as they

have that is not likely to succeed

and you need a much more general

look at what's going on and a

look at what's going on and a better analysis so you can come unwith

solutions that really do satisfy

more people than the winners and

losers in the current fight. We're

halfway through the election cycle

as well, what can he reasonably do

if you like to really change the

structures of the party so that it

won't also take over all the other

things he needs to do to win the

next election? I think it's a long

haul. I don't think you try to do

haul. I don't think you try to do it overnight. You don't try and do it

all in one rules conversation. You

set yourself some objectives and

set yourself some objectives and try to move forward them. I think if

to move forward them. I think if the Labor Party led by Kim and the

various State Premiers were to

various State Premiers were to reach out to the Australian community and

say we've got a problem, after 100

years as a political party we want

to reform. We know the Liberals

should be doing it too but we're

taking the initiative here and we

want to hear from the community,

want to hear from the community, not in terms of the Haq Wranry view of

that kind but making ourselves open

to per situation around getting

people not necessarily Kim every

day, and definitely not Kim in fact,

but to go out there and bring

forward suggestions for improving

our democracy. That's what it's

about ultimately. It's selfish we

want the Labor Party to succeed and

I do because the values are the

I do because the values are the ones that I endorse. But for the

democracy, the political parties

should be succeeding and I think

should be succeeding and I think Kim would get a lot of kudos if he went

out there and embraced the

Australian community in that way.

In the interim, what of particular

individuals and the extent to which

they can now be positive

contributors? Senator Stephen

contributors? Senator Stephen conray has copped the brunt of attacks

has copped the brunt of attacks this week. Is he a lone operators?

Snow, no he's not. There are plenty

of neem the party who could point

the fingers at one another and

this's what happens when you have a

tiny organisation. Are you

suggesting there there's a Stephen

conray or someone like him in all

the States? Worse in some cases.

What do you mean? In some States

What do you mean? In some States the branches are so small that a

branches are so small that a handful of union officials or factional

leaders control them entirely. At

least they do have a significant

grass roots vote in Victoria. Have

grass roots vote in Victoria. Have a look at WA and see how much

look at WA and see how much emphasis the local members have here. It's

pretty much Vero. How do you feel

pretty much Vero. How do you feel in your own seat of Fremantle? Are the

Brian Burke forces working against

you, for instance? No, they're not.

I have no suggestion that I would

I have no suggestion that I would be challenged. I have no suggestion at

all of that. But that wouldn't

all of that. But that wouldn't worry me. The worrying thing is not that

you're challenged but the methods

you're challenged but the methods by which it might be done are unsave i

and dishonest as we've seen in

Victoria. Simon Crean looked like a

dead duck this week and this week

dead duck this week and this week he looks like the comeback kid. How is

he likely to use his reviefd

political fortune? I hope

positively. He said he wanted to

continue to make a contribution and

I expect he will. I don't think any

of the people who have come out of

this will gain anything by

retribution and revenge. Thing's

retribution and revenge. Thing's the last thing that any of the players

should indulge in. Do you think he

still nurses an ambition about

regaining the leadership? Not

they've seen. What about Julia

Gillard? Did you interpret

her'Australian Story' appearance as

a flag flyer as a leadership in the

future? Have I have to say I was at

the 346s and didn't see it. I think

Julia was trying to raise her

profile. There's nothing

unreasonable about that but it's

important for people on the

frontbench, particularly to pull in

behind the leader and they are not

making comments that are critical

making comments that are critical of him or undermining policy. If you

want to do otherwise, then you

should move to the backbench.

What of her subsequent comment that

she would support Kim Beazley until

the next election? I think you guys

make too much of those timing

questions. Howard answers that

question every three or four months

as far as I can see never gives you

a straight answer. You can never

a straight answer. You can never get the right answer to that question.

Julia is ambitious and she's made

Julia is ambitious and she's made no secret of that and I'm sure she

would put her name forward. In any

future leadership contest, could

future leadership contest, could you ever see the left uniting and

backing Julia Gillard for the

leadership? I would hope by the

leadership? I would hope by the time we get to that stage, if we ever do,

that there won't be such a thing as

the left uniteling behind a

particular candidate but a ballot

based on merit. I hope that is the

future of the Labor Party. So I'm

very much against block votes.

We mightn't live to see that day.

Just - We might not. It's all

speculation. Just one other

speculation. Just one other question on this Australian Story interview,

it was remarkable in that Julia

Gillard did use it to point to a

Gillard did use it to point to a lot of deficiencies as she sees them.

She was critical of the forest

Ripollsy, of the 2004 campaign, of

Kim Beazley's rhetoric and his

approach, also of Kevin Rudd's

approach in the prosecution of the

AWB case. Did you find this

AWB case. Did you find this somewhat curious for someone who in fact has

a leadership position mers the

House? As I say, it was a bit

uncomfortable for everyone and my

recommendation to Julia and anyone

else in that position is these

criticisms are ones that you really

can't make from the position she

occupies and the same is true of

others who might seek to do it.

That's why people resign to go to

the backbench. If they do find

themselves out of sorts with the

leadership or the policies - and I

think that's an area where you can

expect loyalty and discipline. If

you're on the frontbench, that's a

privileged position. And she would

be well to keep it in mind. Well,

along with all the others. Dr

Lawrence, for your time tonight,

thank you so much indeed. Pleasure.

To the markets now - the All Ordinaries were down after a weak lead from Wall Street. Rio Tinto lost ground. The banks were mainly lower. Energy stocks improved and Woolworths slid despite positive results across most of the retail sector. In the region, the Hang Seng has risen while the Nikkei has fallen. In London, the FTSE is lower. On the commodities markets - gold is weaker while oil is stronger

and the Australian dollar is buying US$0.7358. Now, to the weather. Darwin - a few showers. Perth - early showers clearing. But it should be fine to begin the weekend in the other capital cities. And that's all for this evening.

If you'd like to look back at tonight's interview or review any of Lateline's stories or transcripts, you can visit our website at: 'abc.net.au/lateline'. Tony Jones will be back on Monday night, so please join him then. Goodnight. Closed Captions produced by Captioning and Subtitling International Pty Ltd

This program is not subtitled ANNOUNCER: Ahead in the Glass House... After intensive testing for rat poison, Sizzler re-opens its salad bars. It's beautiful. LAUGHTER THEME MUSIC APPLAUSE AND CHEERING G'day folks, welcome to The Glass House, the program that asks the question - does International Women's Day mean Warnie doesn't just go for the blonde chicks? LAUGHTER More news than mirrors on the glass ceiling this week. The Prime Minister celebrated 10 years in the job with some contained, serious and sober parties around the country. John Howard has made the Australian electorate his bitch. LAUGHTER That's why it feels like 70 in dog years. The PM declared he was humbled and a little surprised to have held the job for so long. He also said he was humbled by his surprise, and surprised by his own humility. In fact, he's so humbled and surprised, he's realised he's been deeply in love with himself for years... ..but never had the courage to admit it. Howard was later seen having a few drinks with himself, catching a cab with himself and checking himself into a nearby hotel. LAUGHTER According to Peter Costello, Australia should become the most female-friendly place on Earth. It's part of his "Look at me, look at me, I have opinions too!" program. Costello can even see a time when we have a female Prime Minister. In fact, he's already started preparing for the operation. LAUGHTER APPLAUSE Kim Beazley called Nationals leader Mark Vaile

"The biggest problem for Australian farmers "since the arrival of the rabbit." Apparently Vaile has been breeding profusely, and destroying valuable farmland with his furious burrowing. LAUGHTER And just the other day, a bloke west of Goulburn woke up to find a couple of Vailes going at it on his porch. A new study found more Americans can name all five Simpsons than all five freedoms guaranteed by their Constitution. Well, maybe if the Constitution

was shown four hours a day for 15 years, they'd learn it. LAUGHTER When asked if she was able to name all five Simpsons,

Jessica Simpson said, "My left boob, my right boob... "..my front bum... LAUGHTER "..and I give up" twice. LAUGHTER And in Washington DC, Secretary of State Condoleezza Rice

demonstrated her exercise regime on TV. Promoting American foreign policy requires real fitness -

It involves a lot of pushing shit uphill. LAUGHTER But no matter how good that butt looks, she's still embarrassed by that Bush. GROANS AND LAUGHTER

Corinne Grant! CHEERING AND APPLAUSE Terror news, Wil-Laden. Documents captured by US forces in Afghanistan and Iraq

have revealed that al-Qaeda recruits actually sign employment contracts for carrying out jihad. And you thought Australian Workplace Agreements were tough. LAUGHTER On the plus side, it's only a 12-month contract. After that expires, so do you! After two years, a married recruit and his family qualify for round-trip tickets to their country of origin. And not only will al-Qaeda book your flight,

they'll pack your bags. LAUGHTER