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(generated from captions) are in your head with new materials You get to express the things that to do on the street.' that we would never have a chance of viewing this work, 'You want to create this experience as opposed to just having a shop. something especially for that space I like that idea of just making and especially that time period. you can't go and look at it again.' And then that's it, been working on a pretty major show For the last six months or so, we've at a rather big gallery. it's a big commercial gallery. It's a different audience, because thought about a show inside out It's the first time we've really it in a really meticulous way. and from start to finish and planned 'Little bit more pressure, maybe to work in.' but it's a really nice space some really big, some really small.' 'It's going to be about 100 drawings, 'Miso and I both have the same thing too commanding or directional of not wanting to be have to get out of this work. with what you aesthetically approachable Most of it is quite you can, kind of, take from it. so it leaves it open-ended in what using not our own names and things, And I think, you know, especially on the streets, and doing unsigned work you step away from all that. Most of the time appreciate an image for an image you'd rather people would just the Woman's Day story behind it. as opposed to, like, knowing I have these little pieces I kind of like that all over the earth. that just scatter that that's my job. It's pretty overwhelming to think done what I want to do with them, Even after I've enjoyed them and is that other people go off the second best bit as someone else's valued possession and then they start their life again to it, their own story behind it. and they have their own meaning where it might end up.' It's interesting to think how people react to your work 'It's really exciting to see have that on the street. because we never really is really exceptional like that A gallery show feedback about it. because we get pretty straight up that I'm not completely anonymous, And in some ways I really regret and Ghostpatrol as well, and they know what you look like. that people know who you are you, kind of, have this other life I think it's really empowering that that most people don't know about. to be back doing street work Right now, I'm more excited and it's been a while. than ever before I just have this big affection for it

I could really give up. that I don't think real and more kind of alive It just makes things feel a bit more this kind of life of its own.' as well, you know, that the work has

This program is not subtitled

Tonight - back to business Tonight - back to

as usual. The Member for Dixon

will leave the chamber, Member

for McCallum. Deputy Leader of for McCallum.

the Opposition will leave the

Chamber. Unruly scenes in Chamber. Unruly scenes

Question Time and a poisonous

attack on the PM. The guy is a

toxic bore in the

parliament. Mr Rudd, are you a

toxic bore. Can I say that anyone...

..anyone... dash you wrote

about this today, Matthew. Leave that where it is.

Live. This Program is Captioned

Good evening, welcome to

Lateline, I'm Tony Jones, back

in January Barnaby Joyce raised

a few eyebrows, as is his want

when he likened climate change

denier to Holocaust, and

refused to goose step around

his office, ranting and raving his office, ranting and

we are all as one, he said he

wouldn't bow to ecofan

attisism. Has he changed his

tune now Malcolm Turnbull is

promising larger cuts to carbon

emission and a bigger

target. We'll ask him. That's

coming up, first the headlines,

silent service $25 billion Ere

marked for 12 soibs, dewaits

for Government internet filters

to protect children from

pornography. A perfect storm

hits earnings for Suncorp-Metway. Federal

policitians have been making up for lost time

for lost time after cancelling

Question Time for a week as a

mark of respect to bushfire

victims, they are back at each

other's throats this week, five

MPs were thrown out of the

house, and appear to be trying

to outdo each other with

insults. The PM described as a

toxic bore, debate over

unemployment, the Government

announcing new measures to help

those facing the axe due to the those facing the axe due to

global re session. Kirrin

McKechnie reports. Two days

into the parliamentary into the parliamentary week,

Tony Abbott had a

revelation. He is probably the

worst parliamentarian since

since Billy Macmahon, he's a toxic bore in the parliament. Tony Abbott was

caught in the crossfire, the

Deputy Prime Minister had fun

with Christopher Pyne's blaze

in the Opposition front

position. The Leader of the

Opposition faced with a choice

of a Doberman and poodle went

for the poodle. Far from taking

offence at the Doberman

comparison build Abbott had

prays for Julia Gillard. It

was probably the highlight was probably the highlight of

what was a very dull day. Mr

Rudd are you a toxic bore. Can

I say that

I say that anyone...

..anyone you read about this

today. Leave that where it

is. As Mr Abbott criticised Mr

Rudd's style, his leader Rudd's style, his leader went

on the attack on substance,

hone in on the Prime Minister's

job creation credentials. Why

is the Prime Minister so

confident the $42 billion

package will support 90,000

jobs. We have a strategy, you

an excuse. The latest arm of

that strategy is a $300 million

training and support scheme. To

support those workers who

through no assault of their own

lose their jobs or at risk of losing their jobs because of

the global economic crisis. The

Government will bring forward

access to employment services

for redundant Australians and

create an extra 1,000 training

places. When the economy turns

down, people stop training,

when the economy then grows

everyone is crying out for

skilled labour, we want to do

everything possible through

these kinds of practical

measures to change that

cycle. But the Opposition will

take some convincing.

Continuing to challenge the

Government to deliver the

goods. Where are these 330,000

jobs you say will be created

and supported. They seem to

delight in the economic pain of

others. They take comfort in

unemployment. On that side of

the House. On this side of the

House - on this side of the

House we are investing in

infrastructure, and jobs. As

the debate raged on, tensions

flared. Order. And the Speaker

took a hardline. I now issue a

general warning. Now, people,

people will understand this is

the first time I have used this

device. Then the evictions

started. Member for Dixon will

leave the chamber. In total

five Opposition MPs were asked

to leave the house, among them

the Deputy Leader. The

Government is increasingly frustrated with the

Opposition's attack on its jobs

record, emissions trading is as

challenging the Nationals wade

in set to oppose the Government

scheme. Virtually everyone in

the National Party has serious reservation s about reservation s about Labor's

Emissions Trading Scheme. Most

will want to vote against will want to vote against it,

it is fundamentally unsound,

costing jobs. Sounding the

alarm with the catchcry of the

moment. Australia is set to

embark on its biggest ever

defence project, more than defence project, more than $25

billion will be allocated to

build a fleet of soibs to

replace the Collins class

submarine, they'll be quieter,

hidden for longer. The Budget

may be sinking, but the Prime

Minister's vision for a new era

in naval power prevails. in naval power prevails. The

Defence White Paper will set up

the navy for expansion over the

next decade blowing next decade blowing the Joint

Strike Fighter out of its place

as Australia's biggest military

purchase. The ABC understands

the project to replace the project to replace the

Collins class submarine soibs

in 15 years will top $25

billion, possibly running to

$35 billion over the life of

the project, allowing the

current fleet of current fleet of six Collins

class submarine boats to be

doubled. Former soib commander

Clarke says the expanded fleet

putts Australia in the race in

a region investing heavily in

submarines from China to

India. Bringing the numbers to

10 or 12 means you can cope

with more patrolled areas and

have submarine forces left for

your own protection closer to

home. So it's not as simple as

saying 12 is twice as good as

six. 12 is many, many times

better than six because of the greater flexibility that it

gives you. Defence is about to

start delicate negotiations

with the US Navy and

conventional submarine builders

in Europe. The Minister appointed Rear Admiral Rowan

Moffitt to ensure sonar, combat

and design secrets make it to

Adelaide, where American

technology and European hulls

will be combined at will be combined at the

Australian Submarine

Corporation shipyard. The

submarines appear to have

survive as costs are cut and

the Budget shrunk, what won't

be clear until the white paper

is released is what ships or

other equipment are being

sacrifice ed to pay for

them. The navy needs to

overcome a shortage of overcome a shortage of crew If

we are short with future

submarines, they'll have a

smaller crew than the Collins,

navy started to manage

submarine crews better than it

used to be. The first will not

be in service until 2025. There

are growing consense in the

international community international community that

North Korea may be about to

test fire a long range missile.

Pyongyang announce ing it's

preparing to launch a satellite

into orbit, it's feared it may

be a cover for launching a

Taepodong-2 missile, capable of

carrying a nuclear warhead with

a range of almost a range of almost 7,000km. No,

we are closely watching the

situation in North Korea. I

hope they don't test fire a

long range missile. It will

undermine stability and

security in the region. North

Korea's first attempt to launch

a Taepodong-2 ended in failure,

when the missile exploded shortly after take-off.

Now to this evening's guess, Senator Barnaby Joyce leader of

the Nationals in the Senate.

He's in the Parliament House studio. Do you agree studio. Do you agree with

Malcolm Turnbull that the

Government's target for cutting

carbon emissions is too low, it

should be higher. Well, I agree

with the process that Malcolm

laid out in his four pillars,

that we have to do this in that we have to do this in a

way that doesn't put people out

of their jobs, out on to the

street, out of work. street, out of work. That's

what the Labor Party designed

and obviously that cannot be

tolerated because our job in

the middle of a recession is to

keep people in work, not toss

them out. What them out. What the Emissions

Trading Scheme will do. The

Government has a 5% target

growing perhaps to 15% by growing perhaps to 15% by 2020,

Malcolm Turnbull wants Malcolm Turnbull wants the

Opposition to adopt a bigger

target as policy. Now, you

accept that in principal, do

you. What I see is something

that looks like the Magna

Carta, the old testament and

War and peace wrapped up in a

piece of policy called piece of policy called the

White Paper. It will cost about

50,000 miningons in Queensland.

165,000 - mining jobs in

Queensland. 165,000 other

associated workers. I can't

accept that. Munn bull is

putting a process of trying to

- Malcolm Turnbull putting a

process of trying not to throw

these people into the

streets. The Emissions Trading

Scheme is still likely to be

part of his scheme. Well, we

have to see the details of that

when it arrives, the thing I

have to worry about is I don't

have to vote on Malcolm

Turnbull's program, I have to

vote on Mr Rudd's, it's the

only one going before the

Parliament. You said that

before. You could be in

Government within two years. I

hope we are. You could be, and

then this will be policy then this will be policy which

you have to implement. You

could find yourself having to

imply wment the policy of a

higher cut - implement the

policy of a higher cut,

policy of a higher cut, biggest

target and you may have target and you may have an

Emissions Trading Scheme. If

I'm in the Senate, god willing

I am, we'll look at that piece

of legislation as it comes

before the senate. The piece of

legislation - we don't have any

yet, we have a white paper - if

that's reflected in the

legislation, we have something

that it going to put

Australians out of work in the

middle of a recession, I can't

work out for the life of me

work out for the life of me how

Mr Rudd can bang on about

saving jobs yet put forward a

piece of legislation with huge

ramifications of tossing people

out of jobs, make the

agricultural sector unviable.

Lumbering costs to every South

Australian that can least

afford it. Let's talk afford it. Let's talk about

your own Coalition policy. To

support a largest missions

target than the Government you

have to accept that global

karming is a serious karming is a serious threat,

wouldn't you. -- warming is a

serious threat. There's no

argument if - that global

warming is a threat. There's

debate and conjecture. There's

no debate at all that what

Australia is proposing will do

nothing, nothing to reduce

global warming, that is a fact.

5% of 1.5" is 0.0075%,

three-fifth's, five-eighths of nothing, for that statement we'll toss Australians on to

the street, out of work, with

the same rettor rick that

somehow we'll support jobs on

one hand and tossing them out

in grand form on the other. Why

is it that the National Party

has to go into bat for the

jobs, for the AWU workers in

Queensland. Why isn't the Labor

Party standing up for their own

members. Your leader Malcolm

Turnbull, environment

spokesman, Shadow Treasurer, a

range of front benches believe

that climate change is a real

and present danger, they are

trying to design a policy with

larger cuts to emissions than

the Government has. As I

understand it you are a climate

change sceptic, can you go

along with their policy, if you genuinely are sceptical about

the basis for it? No, I'm a

person with an open mind. I

think that's extremely

important in the Senate.

Tonight I received a letter

from an Amer it ist professor

that wants the debate to stay

open, so we don't turn it into a religious Federal Reserve

ours and fan attisism, we say

hope to a brief of examining

all the facts before us, and

implicitly being honest in what

are we proposing, what will it

do, and what are the effects to

the Australian working family

who will be tossed out on the

street because of Mr Rudd's

policy. Earlier this year you

did use the term, "Eco-Phan

attisism", what you mean by

that. This debate to coral

people. What happened.5, as you

know, it's a thing that if you

dare doubt you are a heritic, a

denyer, all this emotive

language foisted on people so

they don't step out of they don't step out of line,

they are coralled without

reason. I find that dangerous

irreg artless of the subject.

That there should be an

expression of an ability to

debate, this is an issue on

climate change that should be

open to debate, it's not something that should be in the

same vestage as a religious

debate, it's a debate about

science, effect, and Government

policy. Let's make sure that it

stays at that level, put some

Laurel on it that doesn't

belong there. You made the

an-Al-Qaeda gi that it's like

being labelled a Holocaust deny

brer - analogy, that it's like

being a Holocaust denier.

Across the chamber is yelled

out denier, Professor Garnaut

used that word. There's an association of the word denier

to Holocaust, I find that

aSIMly repugnant. Something

that is disgusting in human

history, such as the Holocaust,

be cunningly used as a device

to implicate the motives to implicate the motives of people in the climate change

debate. Therefore I try to step

that out. That itself is a mechanism... You are doing the

same thing yourself, accusing

the Greens of eco-Phan attisism

and the Labor Party for that

matter and you argue you won't

be the one goose stepping

around your room singing in

tune to everyone else. I want

the debate to remaybe open. I'm

making a simple point. - to

remain open. I'm making a

point . Around you doing the

same thing. I'm accusing them

as a form of ecototalarianism

as a mechanism to remove my

right to voice an opinion

expressed by the Australian

people. If I can't prosper in

the debate and prosecute my

cause, I lose, that's the cause, I lose, that's the point

of the debate, I won't be silenced neither should

others. Will you take this

debate into your own party

room I think we take it into

the party room all the time,

that's the great thing about

party room. We can have that

debate. Do you make that point

though because, you know,

amongst the eco total airians

and fanatics are members of

your front bench. The The point

about conservative politics is

we can have our own views.

People in the Labor Party People in the Labor Party would

beat me for sceptise. . They

are not allowed to voice their

opinion, whilst they don't,

their workers, union members

are flushed down the toilet.

It's about to happen soon if if

goes forward. What will they do

to protect members, or should

their members pay their membership to the National

Party in Queensland. Were Party in Queensland. Were you

uncomfortable going along with

the Greens to form an inquiry

into the Emissions Trading

Scheme in the senate. That

hasn't been before the hasn't been before the Senate.

I have no problems with an

inquiry or a debate. That's the

issue, I am not scared of the

debate. I look forward to it.

Let's - I find it peculiar that

we have one as a senate

standing committee. I don't

know why we need two. People

should read the Hansard of what

is said in that inquiry, that

might make interesting reading

and put a bit of balance into

the conjecture surrounding

these issues. Your own front

bench is back ing this other

inquiry, that's the point, they

made a deal with the greens to

have an inquiry and talk about

it canvassing other alternatives to alternatives to an Emissions

Trading Scheme, including a

carbon tax. Which the idea is

which now has been talked about

by Malcolm Turnbull, by Andrew

Robb, talking about how many

places in the world considering

carbon tax, would you consider

ever voting for a carbon tax. I

would look at everything, Tony,

Malcolm came up with good

ideas, the idea of soil carbon

points to one issue, the tact

that if 2% of Australian soils

increased carbon fact by 1%

we'd cover the carbon emissions

requirements. This is precluded

because of the signing of because of the signing of the

Kyoto Protocol that doesn't

acknowledge soil carbon. It

acknowledges emissions not sequestrations, these are flaws

to be fleshed out. Let's cut to be fleshed out. Let's cut it

to the table, what will it mean

for the Australian working

family. That's the point. If it

means a new tax, you know what your own former Prime your own former Prime Minister

John Howard said about that, he

said he would never consider a

carbon tax, he'd consider a

carbon trading scheme. He moved

towards building one, but

wouldn't embrace a tax on

industry, a specific tax which

he said would cost jobs. That

is my problem with the is my problem with the current Emissions Trading Scheme, we'll

have people out of work not

because of global warming, not

because of the global financial

crisis but a Government

inspired policy that brings

dest tuition to Australian

working families, it's game,

set match. Lay down misere, if

we are going to walk down this

path... You are prepared to

discuss a carbon tax, are you? Examination of the facts

surrounding it. I'm in the Senate. Bring the facts

forward, let's have a look, I

have no problems with the

debate, but have a problem

putting Australian working

families out on the street as the Labor Party are going to

do. What do the Liberals have

to do to put an end to the

factional squab links that dominated the media last dominated the media last week

is this Well, you know, I'm -

it's like turning up, as I said

into a household where the

husband and wife are having a

blue, the last thing you want

to do is offer advice and pick

sides, you are always on the

wrong side. You are in the

team. You are part of team. You are part of this,

they are the Coalition, your

brothers. And sister. This

thing and, you know, what is

news last week is fish and

chips paper wrapping today. I

don't think - I think we have

moved on. Things will bed

themselves down, that's the

dynamics of a political party,

show me a party where there's

not blues from time to time.

It's life. Will it end It's life. Will it end until

Peter Costello declares his

hand? Well, you know- I cannot

read minds. That's a call for

Peter. He is a person of

immense talent, and, you know,

it's his calm. I am not his

friend, guidance or

philosopher. I saw him at a

restaurant. He seemed to be

enjoying himself, he'll make

his call in due course. The

crucial thing is whether he

renominates for Higgins. As

everybody knows, that'll be the

kicker as to what is going

on. Should he be on the front

bench If he's hanging around

absolutely he should. You can't

have a main player sitting on

the back bench. The call for

Peter is he going to

renominate. If he is, then I

think - I have said even though

Peter and I had major

disagreements, in fact he wrote

a few pages about me in his

book which probably wasn't in

glowing reference to me, but I

don't deny this, the man has

talent, and I have said that we

are heading towards a major

economic crisis, I said that on

your show ages before your show ages before the

ramifications were made aware,

and whether I like him or not.

I don't pick a team on the

people I like, I pick a team

that wins, he'd be a that wins, he'd be a great

person on the front bench. What

about leading the party? That's

- luckily that is not a call

for me. I won't get a vote for

that. We are about to see that. We are about to see a

State Election in Queensland,

not long before the poll,

voters will get large cash

payouts from the Federal

Government, will that influence

the election. Of course it

will. This is a dirty grubby

Labor deal where they are

trying to buy votes in

Queensland, and , look, the

Queensland Government is one of

the most incompetent, 74

billion in debt. How will they

pay that back, what a

Government Federally, heading

to $200 billion in debt. They

won't be able to bail them won't be able to bail them out.

What happens when we lose the

basic infrastructure services,

the lack of capacity to pay for health, educationing rail.

Queensland Labor Government is

trying to work out how to pay

the debts and mused about death

duties, the article in the 'The

Australian', McNicol had a

column. They are trying to bury

the idea about probate and

placate the Greens, saying

they'll ban regrowth clearing. Briefly on this, you

called it a dirty deal that called it a dirty deal that is

the cash payouts. Of course the cash payouts. Of course the

Federal Government didn't know

at the time that the State

Government was going to an

early election. Come on,

Tony. You know, this is sort of political naivety in the

extreme. I don't for one moment

think advisors weren't running

backwards and forth into Ms

Bligh's office saying this is

where the money turns up,

that's where we should go to

the election, giving you a

chance to buy a vote, $900 chance to buy a vote, $900 for

a vote. We should call it a vote. We should call it what

it is, this is the money

Hocking Australia into such a

position as to pores up

interest rates for every family

that has a mortgage, delivering

no voracity the outcome, no voracity the outcome, none

in the second, I don't know how

we'll pay the debt back, first

time we had to sell time we had to sell Telstra,

Commonwealth Bank, Medibank

Private. What will we sell,

what is left to sell when we

are leftway Labor debt, do we

live in a world where we print

money, and game, set, match,

it's all over. The interview is

all over as well I'm sorry to

say, we've run out of say, we've run out of time

Barnaby Joyce, thank you for

joining us on Lateline. Always

a pleasure. A new poll shows

that most Australians believe

that parents rather than the

Government should be

responsible for protecting

children using the children using the Internet.

The poll was commissioned by

the activist group Getup,

campaigning against moves by

the Federal Government to

create an Internet future. Last

week Communications week Communications Minister

Stephen Conroy announced the

first in a series of Internet

filtered trials will go ahead. Most of the Most of the Australia's

Internet Industry is opposed to

an online filter, some experts

say it won't work. John Stewart

reports. Bronwen Hannah has

three children and like many

parents is worried about

parents is worried about what

they might see on the Internet.

Images of violence Images of violence and

pornography are her main

concern. It's a gamble as to

what can come up. That some of

the images that can freely pop

up on the Internet without

protection are exploitive, you

know, there may be

non-consensual sex. Bronwen

Hannah has little time for

those that argue that the

Internet should not be

sensored, saying protecting

chin is more important than

arguments about free

speech When we go to the

library we don't expect harmful

images harmful to children

lying around. Last night lying around. Last night the Communications Communications Minister Stephen

Conroy was forced to defend the

Government's push for Internet

felter trials. What we said is

what our filtering is aimed at,

and only ever aimed at is material under material under the Broadcast

Servicing Act classification,

censorship board

classification, it's clear the

material that we are referring

to... The online activist group

Getup is often in line Getup is often in line with

Labor Party policy, this time

they side with the majority of the Australian Internet

Industry, firmly opposed to any

ISP level filter. It's clear

on this issue the Federal

Government are swimming away

from the tide, against public

opinion. A galaxy phone opinion. A galaxy phone poll

commissioned by Getup surveyed

1100. When asked who should

have primary responsibility for

ensuring children don't view

inappropriate content 86% of

respondents said parents, 5%

said Internet service

providers, and 4%'s the Government. Christian lobby groups point out other polls

say parents are concerned about

children using the Internet.

There's white spread support

for a filtered Internet feed. Certainly Australian

Institute study done through

Newspoll shows 93% of parents

of children 12-17 would want to

see automatic filtering of the

Internet. It's the consequences

of filtering the Internet which has Getup and the Internet

Industry concerned. One thing

we know about the Rudd

Government's plan, a draft plan

at this stage is it will

drastically slow down the

Internet or overblock a Internet or overblock a large

number of sites. Either number of sites. Either way,

that's bad for business. The

internet industry has horror

stories about Government

filters around the world. One

was in relation to Wikipedia,

where an entry on Wikipedia, a

single entry resulted in the

entire Wikipedia being

blocked. There's criticism from

the Internet Industry that the Internet Industry that most

of the service providers taking

part in the Government trials

are too small. It makes the

technology trial a tractable

problem, something small enough

to be able to get results it

doesn't demonstrate scaling,

that is the fundamental problem

here. Australia's biggest ISP,

Telstra, is not taking part in

the trials. Optus is prepared

to take part, but is concerned

about the potential impact on

Internet performance. We are

absolutely committed to

criminal activity being

stopped. Guess what we want to

understand is what cost does

that come, how do you affect

the network and how do you set

the systems up to make it work effectively. The Communications Minister Stephen Conroy is

refusing media interviews about

the Internet filter, which will

cost taxpayers $40 million. The

Opposition says the filter

won't work and is an expensive

grab for votes. I think this

was a promise which Labor was a promise which Labor made

in the campaign simply to

attempt to sort of outmanoeuvre

us for the conservative

vote. Some Internet service

providers, like the Adelaide based Webshield believe based Webshield believe a

mandatory Government filter

will work. If things are

engineered correctly, the right

technology is applied, there's

no reason why there should be

deg rad igs to performance. The

majority of the Internet

Industry want parents to filter

the Internet at home. Parents like Bronwen Hannah are

sceptical about the ability of

families to manage home

computers without bigger filters provided by the

Internet service providers, and

believes Senator Stephen Conroy

has it right Plenty of people

don't have filters, many of my

friends don't have filters, not

because they are slack and

don't care about their

children, it's just that they

are busy, may not know about

the technology, haven't got

around to it. There are months

of Internet filter trials ahead. The Federal Government

will rely on evidence from the

trials to decide whether

parents or Internet service

providers will be responsible

for protecting children

online. Another former online. Another former teacher

of the prestigious Knox Grammar

School has been charged with

sex offence, police say they

may arrest a fourth person.

59-year-old Adrian Nisbett

faces four charges involving

three former students. The

alleged offences took place in

1976, 1986 and in 19990

Obviously we are investigating

the possibility of further

offences and offenders,

obviously at the school. At

this stage the investigation is

ongoing. Last week a former

teacher and a serving teacher

at Knox were charged with

separate child sex separate child sex offences,

Adrian Nisbett was released on

bail and will be back in court

in April. Victoria's bushfire

emergency eased for now, a

emergency eased for now, a cool

change swept through the State

after an outbreak of blazers

saw five firefighters injured

yesterday. Tonight they battle

seven fires, the worst near

Daylesford, small towns on

alert. The task is to get the

upper hand before dangerous

conditions return Friday. Gary

Magnussen reports. From Magnussen reports. From the

tourist town of Dales, the

threat was clear, what started

as a small fire on the side of

the road quickly became a

dangerous blaze. Two

firefighters were injured when flames swept across their

tanker yesterday. So far

property damage has been

limited to cars, sheds and

livestock. It is important to

note because of the

wind... Hundreds fled to relief

camps grabbing what theyed with

could prompted by the events of

two weeks ago. I don't want to

go through what I saw others go

through. Melbourne's outskirts

were being menaced, the were being menaced, the blaze

in the Dandenong Ranges

threatening 300 houses, three firefighters were hurt

containing it, people returned

this morning to find homes

still standing. You always know

the risks, but I still wouldn't move. Nervousness continues

across Victoria. Seven across Victoria. Seven major

fires are still on the go.

Strong winds and high

temperatures are forecast to

return Friday. It's important

that people understand that the

events of Black Saturday are

not over. Away from the fire

fight an announcement of

simultaneous concerts for

bushfire victims held at the

MCG and SCG on 14 March. The

bill is unprecedented, never before, never

again. International acts

Coldplay and Kings of Leon will

join landmark Australian bands.

The show stopper could be a

reformed Midnight Oil fronted

by the Environment

Minister. The boys are ready to

do it. I figure I'll take the

opportunity, it's a privilege

to be involved. First Victoria

needs to see off a new bushfire

threat. A quick look at the

weather:

That's all from us, 'Lateline

Business' coming up in a

moment. If you'd look to look

back at the interview back at the interview with

Barnaby Joyce, or-review

stories or triments, visit the website.

Abc.net.au/lateline. Here Abc.net.au/lateline. Here is

'Lateline Business' with Ali

Moore. Tonight - a run from the

bank, Suncorp-Metway looking

for new management team after

posting a one-third drop in

profit. We don't hide from the

fact that shareholders will find the headline financial

results disappointing. Market

jitters as a US Government runs

the ruler over a number of

major banks. There's fear that

if the Government nationalises,

intervenes, wants to run Citi,

it may do the same with Bank of

America, and any other name

that comes into this spotlight

as being in trouble. And hard

landing, soft landing, when

will the Australian will the Australian economy

turn around. Well, I'm afraid

that we'll see a fall in

investment that will continue

to affect the economy for some

years yet. To the market, and

Australian shares did pretty

well given the big drop on Wall

Street overnight. A late rally

limited losses on the All Ords

to 19 point, the ASX 200 ending

at a five year low, dragged

down by falls in banks and

property property trosts.

The news across Asia was

worth, the Nikkei slipping

1.5%. Hang Seng plunged 3% and

the FT-100 is down. the FT-100 is down. To Suncorp-Metway in To Suncorp-Metway in minute.

Fortescue Metals signed a half

a billion deal with China's

Hunan steel mill. Fortescue

raised $558 million in new

capital, selling shares at

$2.48 compared to the last

frayeded price of $2.83. In a

separate agreement the state

owned Hunan brought 275 million

Fortescue shares. The deal is

worth $1 billion, giving Hunan

a 16.5% stake should it get

Government approval.

Suncorp-Metway is facing the

perfect storm in basic

insurance and wealth

management, first-half earnings

at the regional bank and group

slumped by a third, there may

be worse to come. Bad debts

rising at a faster rate than

those for the big four, Suncorp

is rudderless with a search on

for a new Chief Executive and

chief financial officer. Desley

Coleman reports. Bad weather in

Queensland. Bushfires in

Victoria. And a global economy

in reverse. Have all combined

to put a dent in

Suncorp-Metway's first-half

profit. We don't hide from the

fact that our shareholders will

find the headline financial

results disappointing, from my

perspective results continue in

familiar and frustrating theme,

we have strong underlying

performance in each line of

business impacted by multiple

external events. Those external

events saw first half profit

down a third to 258 million.

Bad debts in the banking

division soared 20 fold, the

insurance business received

more than 20,000 claims due to

the recent floods and fires,

but that was largely offset by

a 6% increase in new premiums,

and a 50% drop in the share

market had a predictable market had a predictable effect

on wealth management. Managing

the company in the short term

falls to CFO Chris Skilton,

replacing John Mulchahy, whose

departure was announced this

month. It's business as usual,

I have done this role before,

I'm experienced. The world can

throw up all sorts of

challenges, I'll take those on

as required. Really it is

keeping the momentum

going. Chris Skilton says he'll

stay until a new CEO and CFO

are found. The lack of

succession planning and the

broader company strategy has

analysts now gunning for scalps

at board level. There's a clear

strategic clean-up with the

model. It's not working model. It's not working nowhere

else in the world has it

worked. The board persisted far

too long with this alliance

model, looking at cross-sell opportunities between banking

and insurance, it's not

happening, it's fundamentally

different businesses. Butting

a bank and general insurance

and life insurance company

together, hoping it will have a

major market position is a pipe

dream. With the loan book in

run off and the bank business

losing customers, investors

sold down shares 5% by the

close, analysts say the share

price at these low levels is

inflated by market expectations

of the bank division sale. The

board has rejected one approach

when the ANZ came knocking last

October with a 3.4 billion

offer. In the event of

approaches that represent

superior value for

shareholders, then the board

would, in accordance with its

normal duties and obligations

consider those approaches. That

would be the case whether it

was during the interim period

or after the interim

period. Analysts like Martin

North are concerned what a sale

would mean for competition.

Suncorp-Metway is the last of

the regionals standing on its

own, in some difficulty,

clearly if they were picked up

for a song, if would further

diminish competition. Bad news

for a market where the level of

competition is at its lowest in

the last 20 years, the big four

now controlling 90% of the home

loan market. The problems at

Suncorp pale compared to the

nag ni attitude of the issues

faced by the US banks, American

stocks diving to a 12-year low, uncertainy surrounding

Citigroup and Bank of America.

Federal authorities are not

limited in concerns to those

two and will check the majors

have enough capital, while have enough capital, while the

US Government is reluctant to

buy any bank outright buy any bank outright fears

arising that nationalisation of

some banks may be the only

option left. Neal Woolrich

reports. It may look like

business as usual at America's

biggest bank, but inside city

Group it's a different story,

speculation mounts that the

Government will buy up to 40%

of Citigroup. The shareholders

up until this could have had up until this could have had an

opportunity to see if Citi

could have made the way out of

the hole it was in, there was a

plan to do that by shedding assets, and assets, and shareholder

wouldn't have been diluted at

all. It's the shareholders that

are going to feel the brunt of

the pain. Citigroup shares rose

overnight on hopes that its

survival seemed more assured.

Investors punished other

banking stocks as anxiety crew

over the health. Industry. over the health. Industry. The

US Government confirmed US Government confirmed it

House of Lords assess the

capital needs of America's main

institutions, however it says

nationalisation is not part of

the plan. The problem with

nationalisation is we are nationalisation is we are not

sure where we come out if the

US went into nationalisation,

there's legal uncertainy and

market uncertainy. The CEO of Citigroup, Vikram Pandit may

say, if he's required to

nationalise the firm or if it's

forced upon him, " See you in

court", There's fear in the

Government nationalises,

intervenes, and wants to run

Citi, it may wish to do the

same with Bank of America, and

any other name that comes into

the spotlight as being

trouble. Bank of America says

it remains healthy and does not

expect to enter talks to secure

funding. While shares rose it

was not enough to stem heavy

losses. Major indicies dropping

12% to hit 12-year

lows. Investors are looking

beyond the nationalisation of

banks, thinking the economy banks, thinking the economy is

weak are than people are

willing to admit and that the

programs initiated by the new

flags are not likely to bear

fruit - any time soon. During

normal times every dollar

inyected into the banking

system by the US - injected

into the banking system

produces $5 credit for

consumers and businesses, that

process has stopped Instead of

the liquidity flowing into the

banking system into the banking system into the economy

in the creation of credit, it's

welling up. Banks are keeping

money in the accounts at the

Fed and in that sense, this is

happening in the United

Kingdom, in that sense the

banking system is badly banking system is badly broken

in the US. So far Australia's

banking system avoided the

worst of the international

trouble. The major banks here

remain highly leveraged,

vulnerable to a further local

downturn. We saw it come

through in the corporate

figures, a lot of higher bad

debts from the big name

corporate explosion such as Allco and ABC Allco and ABC Learning, Babcock

& Brown, what we are concerned

about now into the next 12-18

months is a downturn in the

consumer side of things. Which

means Australian banks may get

to prove how resilient they

really are. For a look at the

picture from the picture from the markets

perspective I spoke to stockbroker Marcus

Padley. Marcus Padley, Tokyo

near 27-year lows, Wall Street

at 12-year lows, and at 12-year lows, and Australia

at a five-month closing low -

where to next? Well, you have

to say you have to believe the

trend, the trend is your friend

- in this case not your friend,

everything is breaking into new

territory on the downside, we

have a base formed in November

last year, and the Dow Jones is

300 points below that. If we

have - even a 3-point fall on

the S&P 500, it will be below

that, we are 100 points away.

You'd have to say that the

momentum at the moment is

looking like we are breaking

into new ground on the downside. Does anything look

good. What about gold. Yes, in

this market if participation is

90% of the game won in a bull

market. Then in a bear market

clearly non-participation is

90% of the game won, a lot of

colleagues, you'll hear, my

colleagues, will say this a

traders market. You have to

pick on specific stocks for

specific themes, and trade them

rather than just sitting the

market taking a pummelling. So

as you look for specific

themes, they tend to be short

term. Earlier this year we had

a great run in iron ore a great run in iron ore stocks,

BHP Biliton and Rio up 65% from

November lows, but Gold is November lows, but Gold is one

of the themes remaining since

October last year, it's up from

$700 to $1,000, and people are

now hoping that momentum

continues. That's the one game

at the moment I'm sure next

week there'll be another one,

but you have to stick to

specific themes. You talk about

specific themes, the big specific themes, the big focus

at least in theory over recent

weeks has been profit results,

but it seems it's less about

earnings, more about debt and

cash. Yes, I think the most

concerned people in stocks are

the people holding them for the

longer term, in a portfolio or

something, and they really are

trying to decide whether to

keep holding, so the dame at

the moment is guess whether the moment is guess whether a

stock is about to have disser

of some sort rather than

looking at a recovery, earnings

this results season, forecasts

are too optimistic, they'll

have to be downgraded, it's

something that people expect at

the moment. What people have to

look out for, they are looking

out for is companies with

finance issues, and those are

the stocks that are highlighted

this results season. We saw a

terishly fall in BlueScope

Steel since results, down 8%,

those issues are now the main

concern, and really the

earnings growth isn't going to

come back in the next six

months, maybe next year, the

focus is trying to avoid

disaster and not to lose

capital. Marcus Padley, thanks

for joining us. To the other

major movers on the market.

Disappointing first half

earnings saw Sonic Healthcare

fall 7%, financial stocks out

of favour, Macquarie Group

dropping 4.5%. Woodside

Petroleum climbed 2.5% after

announcing a gas discovery off WA. WA.

Lihir Gold bucked the trend

too, adding 1% by the close.

Now for a quick look at

today's other profit reports,

poker machine maker Aristocrat

Leisure says the global

downturn is behind a 59% fall

in annual earnings, higher oil

prices helping oil double its

full-year profit to 361 million, Flight Centre

disappointed investors with

sluggish sales and one-off charges, halving interim

results. Shares dropping 9%. As

investors digest the latest

profit news and gloom, and

continuing uncertainy out of

the United States, one of the

longer term prospects for the

Australian economy. Not

everyone agrees with last

week's safety from

week's safety from the Reserve

Bank Governor Glenn Stevens who

gave an upbeat outlook to a

parliamentary inquiry. There

are reasonable ground to think

that the Australian economy

will come through the difficult

episode not unscathed but well

placed to benefit from a

renewed expansion. Things will

be difficult over the next

year. But as I have said

before, the long-run prospects

for Australia have not

deteriorated by as much as we

may be feeling, just now. But

if this year is going to be

difficult, 2010 - is that

looking better. Those think looking better. Those think the