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(generated from captions) One man's speed is a seed. It One man's speed is a seed.

is a seed when you do it but a

spin when shorten does it. We

have one question quick from

Daniel Noll. My question is for

mag da. One of the most

memorable roles was former

Victorian premier Joan Kirner.

How would you approach

impersonating Julia Gillard and

what role does millimetre cat

par row dy play in the

political debate. I have to say

on to say personally I was on to say personally I

like Joan Kirner, but there is

- I think satire is vital.

That sort of critique, that That sort of critique, that way with a humourrous way is often

a way you can really examine

thing. Comedy is about making

the familiar unfamiliar so it

has cut through. We hear and

examine things. I think comedy

is vital, satire is vital. If that answers your

question. We'll give the last

word this evening to Magda word this evening

Szubanski. We've run out of

time. Thanks to our

panel. APPLAUSE Next week on Q

and the minister for

agriculture Tony agriculture Tony Bourke,

Liberal Senator George Brandis

political commentator Annabel

Crabb former krem democrat and

Labor star Sher kel concern

nerand a refreshed Tony joins

who returns to this chair with

my complete support. We'll

complete with Polly

fillers. Behold your new

leader. Where are you Wayne

ee. Hang on Julia, I'll be with

you in a tick. APPLAUSE.

Tonight - former Prime

Minister Rudd on the outer,

until after the election. I

would be absolutely delighted

to see him serve as a senior

Cabinet minister in the team if

the Government is re-elected. This Program is Captioned

Live.

Good evening, welcome to

Lateline, I'm Leigh Sales. So

what exactly is the difference

between a Minister for

Population and a Minister for

Sustainable Population? The new Prime Minister Julia Gillard

today gave her Cabinet a slight reshuffle and one of the things

she did was change the name of

the population portfolio. To

find out why, and if the change

goes beyond cosmetics I'll be

joined tonight by the man

behind the job title, Tony

Burke. He'll be live with me

in the Sydney studio shortly,

but first our other headlines.

Western Australia's public

prosecutor says no-one will

face charges over the death of

an Aboriginal elder following a

trip in a prison van. Play it

again Sam - the treasure trove

of old Hollywood films

discovered in Wellington, New

Zealand. And on 'Lateline

Business', G20 leaders meeting

in Canada agree on the need to

cut sovereign debt.

The Prime Minister has left her

predecessor on the backbench,

but promised him a ministry

after the election. Julia

Gillard unveiled her Cabinet

today, making just a few

changes in response to last

week's dramatic events. But

there's no room for Kevin Rudd,

at least for now. The former

Prime Minister was interested

in a frontbench role, but he's

been overlooked and the new

leader is putting the Government on an election

footing, campaigning today at a

crowded shoppingm all.

Political reporter, Hayden

Cooper. Hello, how are

you? Lovely to meet you. That's

a really good hair colour. One

for the girls. Heavens, what

have we got here? It's a very

sweet strawberry. Australian

politics has been hit with a

game changer. Hi, I'm

Julia. And the new Prime

Minister's intentions have been

made abundantly clear - it's

straight into the shoppingm

alls. Good luck, Prime

Minister. Oh, thank you very

much. Voters in Queanbeyan were

lining up to wish her well. Oh,

you're wonderful. The only

hitch came from an angry local

to backianist. This Government has shut down family

businesses. Come on, follow

me, I'll show you. Come on,

follow. Election fever is in

the air. And the shape of the

Gillard Cabinet has now been

settled, it's only a minor

renovation. You need a steady

hand, hard work and methodical

work. Simon Crean has been

judged as the man with those

credentials. He takes on Julia

Gillard's old portfolios of

employment, education and

workplace relations. The

Foreign Affairs Minister picks

up trade, as well. It is best

to have as limited a reshuffle

as possible to keep the maximum

stability amongst the team and

to keep our focus on the work

that Australians need the

Government to be doing. Even

Lindsay Tanner stays where he

is, despite his retirement at

the election. There's nothing

new at all here. Tony Abbott's

targeting the economics. While

the Coalition has a plan to get

Labor's debt and deficit under control, Labor doesn't even

have a plan for a Finance

Minister. It's the same people

with the same policies

producing the same problems for

our country. At the Lodge, the

former Prime Minister is

considering his next move. For

him, there's no place in the

Cabinet, at least not before

the election. If the Government

is re-elected, I will be very

delighted to welcome Kevin Rudd

into the Cabinet in a senior

position.

REPORTER: Do you feel betrayed

by Julia Gillard? Mr Rudd's

response is diplomatic. He

says he requests the decision

and will now take a break with

his family. There is nothing

about this period of time that

is easy or happy for Kevin

Rudd. Julia Gillard's been

careful to avoid promoting her factional backers. Bill

Shorten was one of the axe men

who crept up on the Prime

Minister. He's explained his

role in the coup for the first

time. It is without a doubt I

suspect, for every one of those

caucus members, including

myself, the single hardest

decision that we've ever made

in politics. It wasn't done

lightly. I concede it was done

quickly and I reckon, and I can

understand a fair amount of

shock, but it wasn't done on

the basis of an opinion poll.

This was an act of political

bastard ery, bullying in the

playground par excellence. The

Government will take heart from

the public reaction to Julia

Gillard's sudden rise. Polling

has placed her out in front of

Tony Abbott, it only heightens

expectations of an election

sooner rather than later. One

of the new Prime Minister's

first priorities has been to

talk down the prospect of a

so-called 'Big Australia'.

Treasury has projected a

population of 36 million by the

year 2050 and Kevin Rudd as

Prime Minister said it was good

news the nation was growing.

But his successor says she

doesn't want to hurtle down

that path. There are concerns

in Labor ranks that immigration

has become a negative for it in

key outer urban seats. But

some experts say slowing growth

in Australia's capital cities

will be difficult, and a big

Australia may be inevitable.

John Stewart reports. Last

year, the Treasury forecast

Australia's population could

reach 36 million by 2050. It

was a forecast welcomed by the

former Prime Minister. I

actually believe in a big

Australia. I make no apology

for that. But yesterday, Prime

Minister Gillard was quick to

back away from talk of a big

Australia. I don't believe in a

big Australia. I don't believe

in simply hurtling down a track

to a 36 million or 40 million

population. Two weeks ago, the

NSW Liberal Party easily won a

by-election in the Sydney seat

of Penrith. The Liberals'

crushing victory in Sydney's

western suburbs rang alarm

bells within Federal Labor and

concerns about boat people,

immigration and jobs were

noticed in Canberra. And I

think if you talk to the people

of western Sydney of western

Melbourne or the Gold Coast

growth corridor in Queensland,

people would look at you and

say "Where will these people

go?" Most of Australia's

population growth is in capital

cities. Melbourne, Sydney,

South East Queensland and Perth

are among the fastest growing

parts of Australia, but there's

little sign of growth in many

rural areas. Overseas

migration levels have been on

the rise, reaching about

300,000 last year. Population

experts say if the Federal

Government wants to slow the

rate of Australia's growth, the

migration intake will have to

be cut. That can be contracted

sharply should we make the

regulations on movement of

temporary workers , students,

New Zealanders, working

holidaymakers tighter and

should we run the ruler over

the permanent resident

migration program. But some

population experts say that

slowing the pace of growth may

be difficult and a big

Australia is on the horizon. People will continue

to grow older thankfully,

because they're healthy and people will continue to have

children, so the options for an

Australian population target

really aren't fair. We will

grow naturally by 2050 to be

somewhere between 35 and 40

million people. Researchers say

that where people live and work

will be a crucial part of

creating sustainable cities.

In areas where transport is

already under strain. All

Australian cities have to play

catch-up, which is actually to build their residential communities around and nearer

the places where people

work. Today at a population conference in Sydney, the

Opposition called for the Prime

Minister to name specific

growth targets. What will be the population under Julia

Gillard's policies? What will

be the rate of net overseas

migration under Julia Gillard's

policies? Where will she make

the cuts to migration under her

policies? But the electorally

volatile questions of just how

big and how fast are the ones

the Government may struggle to

answer. One of the speakers at

a population summit tomorrow

will be the new Minister for

Sustainable Population, Tony

Burke, who's with me here

tonight in our Sydney studio.

Good to have you with us. G'day

Leigh. Why did your portfolio

need a name change? Well,

certainly there is a

significantly different view

that Julia Gillard has to what

Kevin Rudd's view was on the

concept of big Australia, and we're at the moment in the

beginnings of a new portfolio

which has never existed before

in going through the community

consultation. Now one of the

parts of consultation is people

want to know what your starting

point is. Julia Gillard's

starting point on these issues

is very different to what had

been said previously by Kevin

Rudd, and it was important to

make that difference absolutely

clear and I think the change in

title does part of that. I'll

come to the question of the

difference shortly, but you're

the minister, did the idea for

the change come from you? It's

something that I had spoken

about, but I'm not going to go through each private

conversation. And when did it

dawn upon you that perhaps a

different approach was needed?

Because as you said, you've

been consulting. When did it

become clear to you that

perhaps the approach Labor was

taking wasn't resonating out

there? Well, it is true to say

that in... whether it be... in

part you can see examples in

media interviews, but you'll

find a identical situation in

direct conversations whether

they be opinion leaders or

general community leaders,

there was a view that the

Government had a target of 36

million. There was a view that

the Government didn't

understand that there are many

parts of our cities in

particular that are absolutely

stretched in terms of current

infrastructure and where people

have been concerned about

whether or not urban sprawl has

any sort of limits. And when

you were hearing that view when

you've been out and about, how

pervasive is it? It has been a

very strong view, a very strong

view and I know - and it's been

quoted back to me in interviews

in the course of today - the

number of times I've said "No,

no, no, we don't have that

target". The truth is the

community believed we did and

it's also true that Julia

Gillard's view is very

different to Kevin's. Perhaps

when people are hearing

Minister for Population,

perhaps they were hearing

Minister for Sustainable

Population? That line was

specifically put to me in a

number of meetings. So you've

said a few times that you're

actually changing policy - that

this isn't just a rebranding, but Kevin Rudd was talking about sustainable population

growth, as well. Let me quote

him from 15 April. "The key

thing is to develop Australia's

first ever sustainable

population policy" - how is

that any different to what

Julia Gillard is suggesting? The strategy itself

is something that I was given a

12-month timeframe to put

together and that 12-month

timeframe remains unchanged.

Now the community consultation,

we'd set up the start of the

process of the three panels to

deal with that. A pro-growth

group headed by Heather Ridout,

a group focussed on the

sustainability issues headed by

Bob Carr and Graham Hugo

heading a group that deals with

urban design. Now that

consultation and that process

was under way, but they're

certainly in a direction from

Julia now is the work on sustainability is something

that she doesn't want in any

way sidelined and she wants a

very strong focus on those

issues. Sorry, does that mean

with those panels are you

putting aside the ones then

that are, say, headed by the

business community that wants

to see growth? And you would

have found Julia on the weekend

made specific reference to the

importance of skilled migration. But are you

disbanding that panel

then? Well, no, as I just said, Julia Gillard referred to the

specific importance of skilled

migration and the need for

those areas where employers are

crying out for workers, that we

need to be able to do that.

That's the work of that panel.

But the starting point for the

community engagement in terms

of big Australia versus

rejecting the concept of big

Australia and having

sustainability as a core focus,

is a different emphasis and

there's certainly some extra

work that no doubt we are going

to have to do in working

through some of those issues on

what urban sprawl means in

environmental terms. There's some interesting work, for

example, that they're doing in South East Queensland where as

new housing estates are put in,

work's being done to not only

limit impact on native habitat,

but also to have to do some

rehabilitation work. So

there's different jobs that are

happening in a patch work way

around the country. We want to

be able to bring some of that

together. Well, this different

emphasis as you put it, as I

mentioned a second ago the peak

business groups want growth

because they see it as a driver

towards prosperity. You've

already had one bruising battle

with business over the super

profits tax, are you ready to have another one over

population growth? I think you've mischaracterised

certainly what Julia's said.

The focus on skilled migration

is a very specific

acknowledgement of the fact

that for a number of reasons,

some because of rapid growth in

some sectors of the economy. Also, because of some

underinvestment for a long time

in training and investigation

we had some chronic skills

shortages. That requires a

skilled migration program to be

able to meet those needs of

business. But we have to also

take into account, do some

sections of Australia have,

with my agriculture hat on, get

referred to as a carrying

capacity. I think people

started to deal with this for

the first time when we hit some

serious water shortages during

the course of this drought that

not even part of Australia is

going to be able to have some

sort of unlimited, unconstrained growth and

certainly, that concept of

where do we have carrying

capacity? Where do you have to

draw lines on endless urban

sprawl? These are very big

priorities for Julia

Gillard. The Whitlam Government embraced decentralisation

famously through its Albury

Wadonga project, is that the

sort of thing you're thinking

of doing when you're talking

about trying to look at places

that could carry capacity?

Could we see the Gillard

Government look at a policy

like that? I'm wary of it being

seen as a city-country divide.

You've had very serious skills

shortages in places like Perth, so it's not a simple

city-country divide, but

certainly there are many

regional areas that are

desperate for growth. Now some

of this might be possible - and

this is some of the work we

want to be able to model - to date we've always worked on the

basis that you have to live

near where you work. As

broadband goes out throughout

the nation, for some

occupations that's going to

change, and exactly what that

means in terms of when you only

have to attend the central

workplace once a fortnight or

something like that for some

jobs, what that means for urban

design, what that means for

where people live and how they

preserve a new style of a way

of life is something that we

want to be able to work through

in the strategy. When you're

looking at those questions of

urban design and associated issues, water and infrastructure transport, all

the rest of it , don't you need

some sort of target that you

think is a sustainable

population for Australia? Don't

you need an actual number? That

might be the case, but the answer will differ for different parts of Australia. But you still add

them all up together and get an

overall population for the

country? That may well be the

case. There may well be some

areas where there's a need for

more people, but the

infrastructure needs to be

fixed before you'd look at it.

There are some sensitive calls

there. Is that what you're

working towards with your policy? With the strategy, we

want to be able to work through

what we can measure and what

policy levers we can use to be

able to affect those outcomes.

Now the one thing that I really

- Sorry to cut you off, I want

to say before you move on, but

doesn't all of that depend on

what you say the number

actually is? How do you know

what levers to pull or use if

you don't have a rough idea of

how many people you're talking

about? This is exactly what I

was about to go to. What

matters is the numbers on a

regional basis. The starting

point for debate whether it was

the intergenerational report or

how these issues have been

spoken about in Australia by

politicians, not by local

communities, but by politicians

for years, has always been

"Let's look at the big national

number" , now that has

massively different

implications for people in the

Pilbara to what it has for

people in Penrith, and the

starting point for all of this

has to be how can we get this

down to a regional level? Now

if that ends up with a

situation where you can add it

up for a national number... I'm

not saying you'd never do the

addition, but the important

thing is that it's actually

targeted for the needs of local

communities. We had a whole

group of mayors in Canberra a

couple of weeks ago and I met

with 40 to 50 of them and the

fascinating thing was just how

different the views on

population policy and strategy

were in those different parts

of the country. Won't you -

that 36 million figure is a

Treasury projection, it's not a

target, it's a projection as

you've said many times before.

If under Julia Gillard you

don't want to be hurtling

towards fulfilling that

projection, aren't you going to

have to take some steps such as

pruning ip gration? I know you

said you'd protect skilled

migration, but there are other

areas you could trim, isn't

that something you'll have to

look at? These are issues

that'll end up being worked

through. People talk about

natural growth and we have to

remember as the intro story

referred to, we've got natural

growth in Australia no matter

what and it's largely driven by

ageing population, so that's

there. That's fixed. So certainly immigration is going

to be one of the issues dealt

also talking about with in the strategy, but we're

environmental footprint. We're

also talking about urban

design, about infrastructure.

It's a much broader pallet in

front of us. Let's turn to the

events about last week. What

were you hearing in your

electorate about Kevin Rudd? It

was... two things that were

coming through very strongly.

One was people were questioning

where we were at, what we were

doing and secondly, I was

increasingly receiving comments

saying, " But we think the

deputy might be better" , and the question that I think you

have to ask - and I notice, I

saw it batting away on 'A&A' --

'A&A' when I was outside. The

question you have to ask is,

would we be a better

government? I took the view

that the best government we

could be would involve Julia Gillard as Prime Minister. Was

that purely - you said people weren't sure what you were

doing, do you mean the

substance of what you were

doing, because that presumably

won't change that much. You've

got basically the same

frontbench, or was it simply a

problem of messaging I suppose

under Kevin Rudd? When people

tell you they don't know, they

don't necessarily analyse why

it is that they don't know, but

I, the most important thing for

me was that simple question of,

would we be a better

government? And I believed we

were a good government, I

believed that we would be a

better government and in those situations the responsible

thing to do is to put the best

possible government to the

Australian people. Former prime

ministers often play pretty big

roles in election campaigns,

particularly at campaign

launches, how is Labor going to use Kevin Rudd in its election

campaign? I've got to say, I

think the media release that

Kevin put out today made clear

that Kevin is obviously

disappointed about how things

have transpired, but is

absolutely wanting to help in

whatever way he is able

to. Should he be front and

centre in your campaign? I

don't think I should be making

calls on his behalf. Would you

be happy to have him come down

to your seat and do

doorknocking and campaigning

alongside you? One of the

problems in my seat is mixing

with being in the frontbench

for agriculture. Sadly before

I can invite other people to be

in my seat with me during the

course of my campaign, I'll be

struggling to be there as much

as I would want to myself.

There's no objection, but I

don't want to create an

anticipation where I'll be

trying to work out how often

I'll be able to be there in my

own seat. Tony Burke, thank you

very much. Good to be here. A

defence inquiry has found

Australian soldiers were too

quick to shoot when they gunned

down two Afghan policemen last

August. But it says no action

should be taken against them.

One policeman was killed and

the other injured as their

motorbike approached a

checkpoint set up by Australian

soldiers. The inquiry found

that under NATO military

procedures, a warning flare

should have been fired before

soldiers involved in the lethal force was used. The

shooting were equipped with pen

and tactical circumstances to flares and both had the time

use them. But the Australian

soldiers claimed they weren't

told the rules when they

arrived in Afghanistan. The

instructions have been issued inquiry report says new

to ensure Australian troops

Australia's Director of Public comply with the rules. Western

Prosecutions says no-one will

face criminal charges over the

death of an Aboriginal elder

after a trip in a prison van

two years ago. The man, known

as Dr Ward, Mr Ward sorry, died

of heat stroke after being

transported hundreds of

kilometres across the

Goldfields in extreme

conditions. The decision has

sparked an angry reaction from

his family and the community.

Alisha O'Flaherty reports.

Ever since Mr Ward's death on a

searing hot day more than two

years ago, his family has been

Director of Public Prosecutions demanding action, but the

has now decided that criminal

charges will not be laid. The

death was outrageous. It was

avoidable, it was wrong. My

role is simply to determine whether criminal charges could

be brought. Mr Ward died of

heat stroke after being driven

360 kilometres in the back of a

prison van without

airconditioning or adequate

food or water. For cultural

reasons, the ABC can't show Mr

Ward's face or use his first

name. Last year, the State

coroner handed down a scathing

report which found two prisoner

transport officers, their

employer and the transport of Corrective Services contributed

to his death. It can't be said

there is a prima facie case

that any one person committed a

criminal offence. Mr Ward's

family is outraged. It's

really, really, really horrible

what they've done and so

shocking for us now to find out

that the two person aren't

charged. Why are they doing

this to us? It just seems that

Australia has this long history

of having Aboriginal people die

in custody and, you know,

no-one's held accountable. The

West Australian Government has

made a $200,000 interim ex

gratia payment to Mr Ward's

family. The Attorney-General

says their disappointment will

be taken into account when

considering the final amount.

The G20 grouping of the world's

biggest economies has ended its

summit in Toronto promising to

cut national deficits by half

within the next three years.

The deal comes despite American

concerns that cutting stimulus

spending too quickly could

stall the recovery of the

global economy. Now countries

are trying to find a balance

between stimulus plans and

growing deficits. Every economy

is unique and every country

will chart its own unique

course, but make no mistake, we

are moving in the same direction. Australia's on track

to be well ahead of the deal,

as it's still outperforming the

other advanced economies at the

table. In the same year that

G20 advanced economies have

agreed to halve their deficits,

Australia will be on back in

the black. Wayne Swan scored a sideline chat with the US

President, but received no word

on when Barack Obama will

reschedule his twice postponed

trip to Australia. The Bank

for International Settlements

is warning of the risk of a new global credit crash. Its

annual report released a short

while ago in Switzerland says

banks are still fragile and may

not be able to refinance their

debt. Joining me with more

details is economics

correspondent Stephen Long.

How sombre is this assessment

by the Central Bank for central

banks? They paint it black,

Leigh. They say that the financial disruptions that

we've seen so far this year

highlight the fragility of the

financial system and that

basically any shock will see a

replay, or could see a replay

of the events of late 2008,

2009, ie the global credit

crash, only this time we had no

room to manoeuvre, with central

banks setting interest rates at

zero and with their balance

sheets bloated, plus the fiscal

positions of advanced governments already

unsustainable. So we would be

in a vastly worse position than

we were three years ago with

not much we could do if we had

another emergency. So what are

they saying we should do

then? What they're saying we

should do - which might sound

paradoxical - is pretty much

what the G20 was saying we

should do and that's fiscal

consolidation, governments

cutting back on debt. And they

say that central banks should

be lifting interest rates, so

that we have some kind of

cushion if worse comes to worse

and that keeping rates at zero

is very dangerous. They point

out that it actually was one of

the precursors to that global financial crash and the

recession that we had and they

really put the heat on central banks to do something about

it. Would that lifting of interest rates affect

Australia, given that our rates

are already higher than many economies around the world? Well, it shows that we

are in a far better position,

because we are in a position to cut rates if worse comes to

worse. What they do say,

though, is that global banks

and European banks are in a bad

position and that there is a

lot of undisclosed debt and

also with so much debt that

they actually have to refinance

in the next three years 60% of their long-term debt, they're

going to be competing with

governments and they raise serious doubts about whether

they can do it. Thank goodness

we're in Australia. If these

measures by this Central Bank

are adopted, what would be the

short-term effects of that? The

short-term effects clearly

would be a hit to growth and already Europe is looking like

it's going to fall back into

recession and so this is a case

of damned if you do, damned if

you don't but you've got to do something, because there will be short-term pain if governments cut stimulus and central banks put up interest

rates as the BIS suggests. Stephen Long, thank

you. See you on Friday. Look forward to it. More charges have been laid

over deaths associated with the

Federal Government's Home

Insulation Scheme. The

Queensland Justice Department

has charged a Rockhampton

company over the electrocution

of a 16-year-old insulation

worker last November. Arrow Property Maintenance has been

charged with breaching the

Electrical Safety Act by

failing to run its business

safely. It's also been charged

with failing to ensure its

workers were protected from

high falls. Earlier this year,

a separate company QHI

Installations, was charged over

the death of insulation

installer Matthew Fuller in

Brisbane last October.

Wellington is New Zealand's

capital, culture centre and

home to a burgeoning

international film industry

thanks to Peter Jackson. But

what's surprised the world is

the treasure trove of old

Hollywood films thought to be

lost forever that have been

found in relatively pristine

condition in the city's film archive. The ABC's Philippa

McDonald reports from

Wellington, where Lateline got

a glimpse of films almost 100

years old and now destined to

return to the big screen. It's

one of the southern-most cities

in the world and home to just

500,000 New Zealanders, yet

when it comes to the film

industry, Wellington punches

above its weight and after a

chance visit by a Hollywood

film preservationist, New

Zealand is now famous for its

old films, as well as its

new. Just to see them sort of

unwind before your eyes on

film, who knows the last time

someone had looked at them,

it's a magical thing. On a

street corner in the city you

could almost walk past the New

Zealand Film Archive without

noticing its significance. But

it's now considered one of the

world's most important archives

for old Hollywood films. Many

of the films that we ended up

finding are to our knowledge,

completely lost except for the

copies that were in Wellington.

The most notable film that has garnered attention is

'Upstream' an early silent

feature by John Ford who later

went on to have success and notoriety in the talking

pictures, but most all of his

silent films do not survive.

So finding a film of his from

1927, this sort of backstage

love melodrama called

'Upstream' was a huge find. 75

mainly silent films, including

comedies and western s have

been uncovered. One of them

'The Sergeant' has been restored. It's a

straightforward romance with a

chap in uniform and a flirt

ashs woman that he's interested

in, but who leads him on

somewhat. That's set in what

is now Yosem ite National Park.

It was shot so early it wasn't

actually a National Park at the time. The films should have

been sent back to America or

destroyed. The projectionists,

ushers, who knows at the time,

couldn't bring themselves to

carry out that order, so they

took them out the back door,

one assumes and from then on

they may have passed from hand

to hand through families, other

film buffs. Literally some of

them might have been sitting in

garages for years? In their

early life, very likely, very

likely. The fact that they're

still in good shape is thanks

to conservators like Kurt

Otzen. We ensure their

longevity as best we can by

winding through every film we

own, every nitrate film we own

every two years and that's

4,000 items we have to actually

wind through each one, open the

cans, take them out, wind

through. That releases any

gases. We can inspect them

then and basically keep an eye

on them. This is where the New

Zealand Film Archive keeps its

precious films. A vault where

the temperature is 5 degrees.

But the old American films are

made of cellous nitrate and so

prone to combustion they have

to be kept in an ammunition bunker two hours from

here. Nitrate film will burn

fiercely at a high temperature

in a way that can't be

extinguished, it has to purn

out. It is chemically akin to

knit ro glycerin so it burns at an explosive rate. Kurt Otzen

is handling the old films with

care and he's been

painstakingly conserving films

like 'Upstream'. It took me 21

working days to prepare and

repair it and that's like seven

reels of film, that meant over

400 perforation damaged areas

replaced and over 60 slices had

to be opened and redone. But

all in all it's in very good

condition. 'Upstream' is now

in the hands of Park Road Post

Production, owned by director

Peter Jackson. While these

high-security studios are

renowned for digital wizardery,

they're still passionate about

old-fashioned film making and

film preservation. We preserve

the images themselves so that

we take the images off nitrate

originals and make negatives

from those, negatives which

will be around according to

Kodak probably in around 500

years' time if stored in

correct conditions. The New

Zealand Film Archive says it

would like to see many of its

old films afforded such star

treatment.

That's all from us, Lateline

Business coming up in a moment.

If you'd like to look back at tonight's interview with Tony

Burke or review Lateline's

stories or interviews you can

visit our website or follow us

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Tonight - uncertain times,

business waits the Gillard

Government's next move on

climate change control. They're

not going to announce a carbon

tax for, I would say, at least

a year or two. It will create

further uncertainty. Heading

off a double dip recession,

Australia in good shape. In the

same year that G20 advanced

economies have agreed to halve

their deficits, Australia will

be back in the black. And eyes

wide shut - the dangers of

buying a business without doing

enough homework . The problem

with most first time franchisees is they've

previously been employed and

this is probably the first time

they've entered business so

they don't have a lot of

business skills or acumen.

First to the markets and with

a weak overseas lead and the

G20 to digest, the All Ords

lost more than 0.5% in a

cautious day's trade. The

ASX200 down 28 points. In

Japan the Nikkei slipped a

little on slim trading volumes.

Hong Kong's Hang Seng closed a

fraction higher and in London

the FTSE is down, just. It may

look like consensus, but the

G20 communique papered over the

divisions on how to approach

the post- financial crisis

world. At the height of the

GFC the G20 members were united

in their efforts to prevent a

depression, but now, not all

members share a similar fate,

nor do they agree on the way

forward. Here's finance

correspondent, Phillip Lasker.

It wasn't difficult getting all

these leaders to spend as the

world financial system went

close to collapse, threatening

a global depression. But times

have changed and the G20

nations no longer have a cause

that is as common. The US,

which is still trying to

trigger a sustainable recovery,

isn't prepared to take a hard

line on debt just yet. We can't

all rush to the exits at the

same time, so countries that

have surpluses should think

about how can they spur

growth. Take note China and

much of Asia. Europe on the other hand shaken by its

debt-laden community is Keener to reduce debt than the United

States. The result was a

commitment to cut debt in half

over three years, with each

member given room to move at

their own pace - not what you'd

call tough action. I'm

confident that all countries

that have made these

commitments will fulfil them

and will need to fulfil them,

because there will be market

pressure, not just peer

pressure, there will be market

pressure to fulfil them. That

market pressure will come if

there's a loss of

credibility? Expectations about

future spending and computer

tax revenues is as important as

the current spending and

outlays. It's really the

expectations of those future

flows from credible policy

announcements matter, and if

these announcements are not

credible, that is going to have

its own destabilising

effect. There is also a

reluctance to take a united

tough approach to the banks. A

global bank tax to pay for

bailouts favoured by Germany

and its EU partners was

abandoned with each country

free to pursue its own

approach. It was a victory for

countries like Canada and

Australia, which opposed the

tax on the basis that saddling

its more responsible banks with

an extra burden was

unfair. Well, I think actually

having a fund there indicates

that you are going to bail out

banks whether they be big or

small and I think this sets up

the wrong signals. It's a

moral hazard problem. The G20

also let deadline s slip.

Plans for global accounting

rules for next year are in

doubt, because there's no agreement on the important

issue of when banks should

price assets at the going rate,

or at cost. The previous

pledge to increase bank capital

requirements by 2012 has been

watered down to allow a more

open-ended phase-in which takes

into account each country's

circumstances. I think the fear

is in the US if they cut back

on I think already overblown stimulus while at the same time

the banks have to massively

increase their capitalisation,

they're in a very weak position at the moment, then this will

further hamper the growth of

the US economy. But Andy

Stoeckel says the G20 hasn't

got around to addressing the

most important issue. Sooner or

later, the leaders of these

economies are going to have to

focus on microeconomic productivity measures. It's

productivity that leads to

prosperity, not just sorting out your debt-to-GDP or

whatever. But sorting out debt

seems more than enough for now.

The board of paint maker Wattyl

has recommended a takeover

offer by US giant Valspar. The

company's shares soared 28%

after coming out of a trading

halt. Valspar's all cash bid

values Wattyl at $142 million.

Valspar is one of the world's

biggest paint companies, with

sales of nearly $3.5 billion a

year. Painting a pretty

picture of the deal, Wattyl's

board says the offer is well

over double what the share

price was when the deal was

first mooted in late May. Now

for a look at the other trading

on the local market, earlier I

spoke to Marcus Padley at

Patersons Securities. Marcus

Padley, it's the last week of

the financial year, was today a

day for window dressing? If it

was, the window dressers aren't

doing a very good job. The

market was down today and we

were expecting a flat day and

the volumes are quite low. Not

a lot of news around. We've

had two weeks bereft of news

and we have seen the market

down over 200 points in the

last four days, so no, no

window dress ers at the

moment. A teeny bit of excitement, though, a

spectacular glitch? A bit of a

laugh, that one. We had the

ASX200 index went up from 4425

up to 5012 in a split second.

That was up 13.4% and rather

than being due to some cocked

up trade or trading error, the

flash dash let's call it that,

came eabout simply because of a

ASX data feed wrong number came

through on the index. So not

really going to disturb the score I don't think at the end

of the day. No fat finger in

the midst? No fat fingers this

time. How did local banks fare

after G20 decided to how more

time for bank rules on capital

and liquidity? Not terribly

well actually. Bank sector

since top of the market on 15

April has been down 17% against

the market down 12%. Some of

the banks down 22%. Macquarie

which had a mild profits

warning last week is down 23%.

So the banks aren't faring very

well at the moment. The G20

was actually reasonably good

because as you say they've sort

of delayed imposing some sort

of bank levy to cover against

bailouts and sort of allowed

countries to go their own way

on coming together on stability

measures for the banks. Having

said that, there was a major

broker last week who had

downgrades on all the major

banks and another one who

declared the sector to be

ex-growth, and also warned us

about the number of capital

raisings that will continue to

hit us from the major banks,

and it's glass half full stuff.

There was other research around

today saying we should be

shorting banks and you can

start piling on stuff about

loan growth margins.

Everyone's got it in for the

banks. On my charts, all four

major banks triggered sell

signals today. So first day of

going from up trend to down

trend. Slater and Gordon is to

raise $40 million in equity

towards the $57 million

purchase of Queensland's

trillby miso lawyers, how have

investors reacted? Pretty well.

They've said it's going to be

earnings enhancing straight

away. It's a big acquisition

for them. They're raising $40

million. The price is $140.

They'll be issuing shares at

$1.54. It did go up. The

track record of lawyers in the global financial crisis, Slater

and Gordon itself is pretty

good. Quite a defensive stock.

It's going sideways. People

liked and announcement.

They've got a reasonable

history of absorbing

acquisitions. All pretty good, really. Marcus Padley, thanks

for talking to Lateline

Business. My pleasure. To the

other major movers on our

market now, and there was

little appetite for retailers

today.

Franchising is a growing

sector, and if you believe the

glossy brochures owning a

franchise is a way for small

business people to get the

income and the lifestyle

they've always wanted. But a significant proportion of

franchise owners are finding

that that's far from the case.

In the first of two special

reports on this booming sector,

Andrew Robertson looks at the

reasons why the franchise dream

can turn sour. Can I help you

there? Trevor Banks operates

the Wendy's Ice Cream franchise at Mount Druitt in Sydney's

west. It hasn't turned out as

he hoped. We're not getting

that national leverage that

we're promised when we purchase

stores. We're not getting that

price advantage... Trevor Banks believes the high price of the

materials he's forced to source