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Bight. The extensive trough system is generating afternoon thunderstorms over most of the continent
most of the continent except for the southern showers all along the showers all along the coast but
they will only be light. You can't beat a hi drainia You can't beat a hi drainia in the surn
garden. It looks lovely. Before we go a brief recap of our top ACT Liberal front bencher Richard
Mulcahy has continue vowed to continue vowed to continue in politics despite his expulsion from the
parliamentary party parliamentary party today. Stay with us now for the 7:30 rr coming up next.
We'll rr coming up next. We'll leave you with storm damage in Sydney's west.

Closed Captions by CSI

The hard yards The hard yards start now. We've got to follow words with action.

Tonight on the 7.30 Report - the road to Bali, how will the Rudd Government's plans to cut
greenhouse pollution affect Australia's power industry?

It will cost, and the cost is not yet known.

And lights, camera, ballet - the high-tech broadcast taking the the arts to the bush.

I feel excited.

For that to be on a live feed from the Opera House is just extraordinary. CC

Rudd warms up for Bali climate talks

ALI MOORE: The Prime Minister Kevin Rudd travels to the Bali climate conference tomorrow to tell
the world he's serious about global warming. Australia and other developed nations will be under
pressure to accept deep cuts in greenhouse gas emissions by 2020.

Today, Mr Rudd again ruled out making any such commitment, saying he would wait for the findings of
his expert panel led by economist, Ross Garnaut. But any significant cuts to Australia's greenhouse
gas emissions will have a major impact on the nation's coal-based power industry.

While the industry wants to see achievable targets sooner rather than later to provide investment
certainty, householders are left to ponder what it means for household energy bills.

Kerry Brewster reports.

KERRY BREWSTER: Applause for Australia's dramatic entry to the global negotiating table.

KEVIN RUDD, AUSTRALIAN PRIME MINISTER: I would not have taken the decision to proceed with the
ratification of Kyoto unless, as Prime Minister of Australia, I was determined that Australia show
leadership in this area.

DON HENRY, AUSTRALIAN CONSERVATION FOUNDATION: The hard yards start now. We've got to be fair
dinkum, we've got to follow words with action.

KERRY BREWSTER: But what does the Government's election commitment to cut domestic emissions by 60
per cent in less than 50 years actually mean for everyone back home? Australia's energy sector is
bracing for a radical shake up.

JOHN BOSHIER, NATIONAL GENERATORS FORUM: It's 80 per cent below business as usual, that is an
extremely challenging target.

KERRY BREWSTER: Any action will cost. Already the Opposition is raising the spectre that all
Australian households will suffer if the Government goes for any deep short-term cuts.

BRENDAN NELSON, FEDERAL OPPOSITION LEADER: It would have a serious consequence for electricity
bills and many other burdens borne by working families in day to day life, and pensioners.

KERRY BREWSTER: Business, however, wants targets and timetables.

GRANT KING, CHIEF EXECUTIVE, ORIGIN ENERGY: And there's not too high a price to save the world, if
this is the challenge that it is, it has to be met successfully. But it will cost, and the cost is
not yet known.

KERRY BREWSTER: Australia's economy is built on coal. It generates the cheapest electricity in the
world. The boom states will need much more of it, and soon. Investors say multi-billion dollar
decisions need to be made now, if not, the lights will be going off in under 10 years.

GREG HOUSTON, ENERGY ECONOMIST, NERA: That simply is not enough electricity to meet the demands of
everyone in New South Wales or in Queensland at that time. So, we're running the risk of blackouts
or brownouts at peak days in six or seven years time from now.

KERRY BREWSTER: In the scramble for cleaner energy, coal is no longer king, according to Nera's
Greg Houston.

GREG HOUSTON: Gas is certainly the new king. That is going to be the main source of energy for
meeting the expanded needs in the electricity network or electricity generation over the next 10 to
15 years.

KERRY BREWSTER: The head of the National Generators Forum, agrees.

JOHN BOSHIER: This is a critical time gap between basically now and 2020, and that will be filled
by gas. Gas is the transition fuel. And natural gas-fired powered stations are the most likely
thing to be now built.

KERRY BREWSTER: Gas emits half the greenhouse gases of coal and companies like Origin Energy are in
a great place for a carbon constrained future.

In Queensland's Darling Downs, it's begun construction of a large gas-fired power station.

GRANT KING: That substitution of gas for coal is really about the only lever we've got to pull to
pull out really substantial reductions in a price range. The other lever is by setting renewable

KEVIN RUDD (October 30, 2007): Australia needs a real, robust renewable energy target. If Labor is
elected to form the next government of Australia, the renewable energy target for Australia will be
lifted to 20 per cent by the year 2020.

KERRY BREWSTER: Labor's commitment to a compulsory target of 20 per cent renewable energy means an
explosion of wind farms.

JOHN BOSHIER: The 20 per cent target by 2020 of renewable energy is going to mean 6,000 new, large,
wind turbines. The most windy states in Australia are Victoria, South Australia, southern NSW,
Tasmania. So that's where the states are going to have wind farms.

KERRY BREWSTER: This is where wind farms are likely to go. Even if the industry can overcome local
opposition, can it deliver?

ANDREW RICHARDS, PACIFIC HYDRO: Absolutely. We, as a company, we currently have about $3 billion of
investment ready to go in the wind industry alone, there's between $12 and $15 billion. That's half
of what's required under the target.

KERRY BREWSTER: For a country addicted to cheap energy, the challenge is to decarbonise the economy
as it grows.

GREG HOUSTON: You can't escape through a commitment to cutting greenhouse gases. You can't escape
higher priced energy and that's exactly what is needed to reduce people's appetite for energy. One
has to follow the other.

NICK ROWLEY, DIRECTOR, KINESIS: There are going to be greater costs imposed, and it's the extent to
which people and indeed the broader economy are able to, in fact, pay those costs and are willing
to pay those costs. That's very hard politics, that's very challenging policy.

KERRY BREWSTER: There'll be winners and losers, says Nick Rowley, climate change adviser to
Britain's former Prime Minister Tony Blair. But the notion that it's all pain and no gain, he says,
is wrong.

NICK ROWLEY: If you look at the evidence of the UK economy, there's a pretty robust economy indeed
the strongest economy in Europe, that has experienced a level of growth over a period of time that
has been unprecedented since the early days of the industrial revolution, and that is with, in my
view, a pretty robust principled approach to tackling the climate problem.

DON HENRY: In fact, Stern, who did the Stern review, the former World Bank economist, he said it's
actually better to act and act early for the economy. It's less expensive, rather than if you

KERRY BREWSTER: But uncertainty over a price on carbon continues. The rules of an emissions trading
scheme that will drive development of solar, clean coal and geothermal won't be known for at least
eight months.

NICK ROWLEY: Just saying, "We're going to have an emissions trading scheme," is a bit like saying,
"I'm going can to get married." Well, that's good news, but who is he or who is she? What do they
do? When are you going to get married? Except, there are a whole lot of questions you ask, and if
the answer is "I don't know", you start wondering whether or not it's really serious.

KERRY BREWSTER: For it to work, a carbon trade needs a 2020 reduction target. The UN wants
Australia to commit to deep cuts, between 25 per cent and 40 per cent. The Australian coal
industry, which is investing $1 billion to develop so called "clean coal technology" to bury CO2
emissions, doesn't wish to say publicly what target it wants.

GREG HOUSTON: It's a very serious matter, with implications for every Australian. Their well being,
economic well being but, of course, also their longer-term well being in a climate change context.
Serious matter, you don't pull numbers out of the air.

DON HENRY: As the Australian Conservation Foundation we say 30 per cent by 2020. That's the same
target the European Union's suggesting and the UK has adopted into law now, a target of a 20 per
cent cut by 2020.

KERRY BREWSTER: The uncertainty means more investment delay.

GREG HOUSTON: There's a lot of uncertainty. There's a lot of money needs to be committed and people
are just holding back.

KERRY BREWSTER: Watch this space. The design of our emissions trading scheme will determine the mix
of our energy future.

Once the price of carbon is reached, finance hard heads will decide whether old, less economic coal
fired power stations will

shut, or will serve out the terms of their natural lives.

ALI MOORE: That report from Kerry Brewster.

No quick fix to climate change: Garnaut

ALI MOORE: The Rudd Government has committed to cutting carbon emissions to 60 per cent of 2000
levels by 2050, but the questions of how we get there and what it will cost are the big dilemmas in
the climate change debate.

As we've just heard at the United Nations' conference in Bali, the first draft of the negotiating
mandate for a post Kyoto Agreement wants developed countries to cut emissions by between 25 and 40
per cent below 1990 levels by 2020.

It's a commitment the Australian Government won't embrace, saying its interim targets will be set
through its review of climate change issues by Professor Ross Garnaut. A review which is due to
report in the middle of next year. Professor Garnaut, who describes climate change mitigation as a
"diabolical policy problem", will join the Australian delegation in Bali tomorrow.

Right now, though, he joins me from Brisbane.

Professor Garnaut, let's start with Bali. As I just said, the aim is to agree on a framework for
negotiating a post-Kyoto Agreement, and the draft negotiating mandate that we have seen sets a
target for developed countries of cutting between 25 and 40 per cent by 2020. Is that a good place
to start negotiations?

ROSS GARNAUT: The 25 to 40 has been put on the table by some people who've looked at things from a
particular perspective. Australia is just now focusing on the immediacy of the issue. We've only
been a full member of the international process in recent times since our indication that we're
going to ratify the Kyoto commitment.

It's going to take some time for us to work through the implications of that for Australia, the
implications are very large, and the Rudd Government's made it clear that they're going to put in
the time to get it right.

ALI MOORE: But in terms of it just being a negotiating range, I mean the head of the UN climate
change negotiating team, he says that it is an agreed range. Can we take it as a good starting

ROSS GARNAUT: Well, it's a starting point for some discussions, but that's exactly what it is. So
over the next two years we're going to have real negotiations. What Bali will decide is on a
timetable, a path forward for those negotiations. It's too early to give any concrete indication of
what will come out of that.

Australia has made it clear under the new government that's it's going to be an active participant
in the process. Australia recognises that this is a serious problem. We've got to play a serious
part in the solution. We'll do that. But now, just a week after the formation of the new
government, just part of the way into the process involving my review that the Government said
would play a role in the Government setting targets is not the time to be definitive with numbers.

ALI MOORE: You say "not the time to be definitive with numbers" but you go to Bali tomorrow and the
aim is to get this roadmap, if you like. How specific does this roadmap need to be to actually
serve its purpose? Does it need to have some sort of a range in there, or can it be totally open
and still be effective?

ROSS GARNAUT: I think the most important thing is to start discussing some concepts, some ideas on
Wednesday afternoon in Bali, I'll be meeting with Nick Stern, with the key adviser to Chancellor
Merkel, to others who've been prominent in the development of ideas. Australia hasn't been much
part of that process, not having ratified Kyoto. We're now back in there, but there's a lot of
discussions to be had. We've got thoughts on the good ways of dealing with the international
problem. We've got thoughts on the sort of contribution Australia can make and we'll talk all of
that through and make sure that we're a full participant in the process.

ALI MOORE: But is discussing key ideas enough to get this framework up? And if we're not prepared
to talk about a specific range at this early stage, do we risk being seen as still on the outer?

ROSS GARNAUT: No, I don't think so. I think the international community recognises something big
happened in Australia a couple of weeks ago. Australia now has a government that's firmly committed
to a target by 2050. It's a big target. It's in the ballpark of commitments by other developed

That is respected and taken seriously. I don't think that serious participant in the international
process will expect the new Australian Government just a week after being signed in to go further
than the Rudd Government's prepared to go.

ALI MOORE: Let's look at the cost of this. If we look at that 25 to 40 per cent target, just in
terms of a quantum, we have an Opposition leader Brendan Nelson who says that will have a
devastating impact on Australia's economic development. And then we have a report from Price
Waterhouse Coopers that saying in fact we could cut to 30 per cent by 2020 with absolutely
negligible impact. Who's right?

ROSS GARNAUT: Well, there's a lot of work being done on all of that. There are some things we can
do to substantially reduce emissions at relatively low cost. There are others where we need to do
more work before we know the cost. What we have to put in place is the Rudd framework of support
for research and development, support for the transmission grids and facilities that will be
necessary to make good use of new technologies. A carbon price that's high enough to provide the
incentives to make the switches on the demand and supply side, and getting that right will give us
the path that will minimise the cost.

Australia will be making large reductions in emissions. It will be pulling its full weight in the
international effort. The policy framework will have a big effect on how that affects Australia and
we're still working through all of the factors that will affect the cost of that.

ALI MOORE: I guess what households want to know right now is whether it's going to cost them money.
I note in a recent speech you did say that the price of emission permit social security likely to
be passed onto households, certainly in the early stages. Are we going to end up hurting in the hip

ROSS GARNAUT: There will be increased cost to households. As I said in a public lecture at the
Australian National University a week ago, good policy would collect a lot of the value of those
permits for the Government and then pass that back to affected households. There's no need for
households to pay the full carbon price, to the extent that energy producers are simply passing
onto households, especially lower income households, the costs of the permits, then Government
collection of the revenue can make that available to households without reducing the incentives to
economist on electricity and energy use.

ALI MOORE: Does that imply there has to be some pain, because you still need that incentive?

ROSS GARNAUT: Yes, overall for the economy as a whole, for the society as a whole, there will be
pain. If we are wise in policy, we will put in place mechanisms that minimise the adjustment cost
to low income households. That will make the politics of transition more palatable, but above all,
it will make the introduction of the system more equitable. Getting those things right is part of
putting in place a wise approach to reductions in emissions.

ALI MOORE: Professor Garnaut, is there a timing issue with what Australia is doing. Your report is
due in the middle of next year and the Rudd Government is committed to putting out a detailed
design of an emissions trading scheme by the end of next year. That's a full year before the 2009
target for global talks. Will we be operating in a vacuum, if you like? We won't have a defined
view of what the global picture will be?

ROSS GARNAUT: No. The process that we're engaged in, preparation of our review will be iterative
one and naturally I'll be talking to key figures in Government along the way. But having a complete
report with recommendations, albeit in draft form by June and then a final report taking into
account public comments by September, will provide a large base of information and advice to
Government in time, for Australia to take that into account in finalising its positions in the
international negotiations.

ALI MOORE: So, finally and briefly, now you're going to have the full weight of Treasury behind you
following the election of the Rudd Government, would you perhaps bring your report down earlier? Do
we have to wait till June?

ROSS GARNAUT: There's a lot of work to be done a lot of factors to be considered. Amongst those, is
a lot of discussions with other players in the international community.

ALI MOORE: So, is that a no?

ROSS GARNAUT: The draft report will be ready in June. Some aspects of the report can be discussed
both publicly through our public forums, and we have one in Brisbane today, and with the Government
before then. But it's going to take till June to do all the work for the full report.

ALI MOORE: Professor Garnaut, many thanks for talking to us.

ROSS GARNAUT: Thanks, Ali.


Professor Garnaut, many thanks for talking to

Broadcast brings ballet to the bush

ALI MOORE: The Australian Ballet's performed to audiences around Australia and the world, but never
before has the troupe danced for 6,000 people in 10 different locations, all at the same time.

With the help of the latest broadcasting technology, the company has beamed its production of The
Nutcracker live to appreciative regional audiences.

With a cast, crew and set that was simply too big to take on the road, fans outside capital cities
would normally miss seeing the show. In collaboration with the Australian Film Commission, The
Nutcracker has been showing on cinema screens around the country.

Kirstin Murray reports.

BALLET TEACHER: And one, and two.

KIRSTIN MURRAY: These young ballet students have already been dancing for half their lives, but
their dreams extend way beyond their school hall in Hervey Bay, Queensland.

BALLET TEACHER: And out, and in.

KIRSTIN MURRAY: More than 1,000 kilometres away in Sydney's Opera House, are the dancers those
girls aspire to be. These performers from the Australian Ballet are preparing for a production
unlike any other staged before, a show which for one night will connect these two very different

EBONY SMITH, RURAL BALLET STUDENT: I feel excited, and I really want to see it. I just want to fast
forward all the other days and skip to that day.

KIRSTIN MURRAY: For the past year, 500 staff have been working behind the scenes to take their
lavish production of The Nutcracker to audiences who would normally miss out.

DAVID MCALLISTER, ARTISTIC DIRECTOR, AUSTRALIAN BALLET: It is the most expensive production we've
ever done. We keep saying that, but we seem to keep topping it.

KIRSTIN MURRAY: Using cutting edge technology, this 19th century story will be broadcast live via
satellite to cinemas in eight regional towns, stretching from Albany in the west, north to
Katherine and down to Devonport.

DAVID MCALLISTER: In this day of digital networking and technology, it's wonderful to be able to
use that not just for, you know, phoning and emailing each other, but actually to broadcast live

KIRSTIN MURRAY: Lucinda Dunn's danced on stages around the world. But with few theatres in this
country able to accommodate grand productions, many fans would otherwise miss seeing her perform
one of the star roles.

LUCINDA DUNN, PRINCIPAL DANCER, AUSTRALIAN BALLET: The size of the sets and the scenery is mammoth
for the theatres that it's been built for. So anything smaller would be difficult to actually fit
it in.

KIRSTIN MURRAY: Making ballet accessible to smaller communities also provides an opportunity to
encourage aspiring dancers.

DAVID MCALLISTER: We sort of have this saying around the ballet that there's usually a bank, a
Chinese restaurant and a ballet school in most rural communities and so it's really important that
those teachers that are doing such amazing work out

there, teaching these young kids to dance have the opportunity to get their students to see a
production like this.

JENNY ANDREWS, BALLET TEACHER: So for that to be on a live feed from the Opera House is just
extraordinary. They'll get that sense of being at the Opera House, and seeing these dancers.
Because these dancers don't get to Hervey Bay.

KIRSTIN MURRAY: The big night's finally arrived and in a few hours the dancers will take to the

LUCINDA DUNN: I never lose my nerves, even after so many years of being on stage. I suppose it's
the expectation of wanting to get it right and knowing that it can, you know, look not perfect if
something falters. I won't say too much, because my mum gets nervous if I tell her I get nervous.

KIRSTIN MURRAY: If there are any last minute nerves here, the cast is hiding it well. Tonight
cameras are given backstage passes for a rare glimpse behind the scenes.

DAVID MCALLISTER: We've made sure that the performance isn't the only thing we're broadcasting.
There's a lead up to it, so that everyone in the sort of satellite areas get a sense of what's
going on at the Opera House.

In some ways for the audience that are actually sitting in the theatre, the people outside will get
a much more intimate view.

KIRSTIN MURRAY: For young fans, it's a chance to see techniques they're taught put into practice.

CARISSA WRIGHT, RURAL BALLET STUDENT: It's a bit, scary, because you have to remember to smile,
have your bottom and your tummy tucked in.

KIRSTIN MURRAY: You know, they'll be watching for that on the night?

LUCINDA DUNN: (laughs) It'll be covered in lots of pink sparkles.

KIRSTIN MURRAY: Pop corn and pirouettes don't normally go hand in hand, but on this night the big
screen plays perfect host to the big stage.

DEREK STRUIK, HERVEY BAY CINEMA: It's about having a bit of fun, seeing something different. It's
an event and that's what we're trying to make it.

KIRSTIN MURRAY: Thousands have filled the Opera House forecourt and just as many will watch in
cinemas as they receive a live broadcast.

The satellite's lined up, the curtain's set to rise, it's time for the show to begin.

And for a fairytale about the magic of Christmas to be shared.

DAVID MCALLISTER: It's really a growing up story. It's about a young girl growing up and finding
love, but still in that sort of childhood sort of way.

KIRSTIN MURRAY: If any ballet's going to translate to the big screen, it's this one.

DAVID MCALLISTER: The detail in every one of these costumes is quite extraordinary. We had a woman
who was doing the hand beading and she was there for six months every day for eight hours a day
hand beading the costumes.

KIRSTIN MURRAY: But all the efforts paid off. For a few hours the tyranny of distance is bridged.
The dancers and their audience spread from one end of the country to other are united.

LUCINDA DUNN: It is a really warm feeling, having the applause at the end. I can only imagine that
I'll hear the crowd roar way out west and up north.

CARISSA WRIGHT: She's a good dancer.

EBONY SMITH: It'd take a lot of hard work.

KIRSTIN MURRAY: The fairytale's over for another year, but will the magic of The Nutcracker linger

DAVID MCALLISTER: I'm sure that in 20 years' time, there'll be someone performing the Clara or the
Sugar Plum Fairy, who

was there watching this performance on, when they were a young child. That's the thing that's so
exciting about these sorts

of things. Because you do have the opportunity of inspiring the next generation of stars.

ALI MOORE: Kirstin Murray reporting there.

Kirstin Murray reporting there. For extended interviews with artistic director David McAllister or
principal dancer Lucinda Dunn, Lucinda Dunn, go to our website. That's the program for tonight.
We'll be back at the same time tomorrow, but for now, goodnight.

Closed Captions by CSI

G'day, welcome to Star Portraits, the unique contest where we get three professional artists to
come together to paint a celebrity. The celebrity won't see the paintings until the end of the
program, when they get to choose a favourite to keep. We're at Bray on the River Thames near
Windsor. It's a beautiful part of the country that means a lot to our celebrity, as does the
cricket club at the heart of the village. Our sitter is mad about the sport. In fact, he's
President of the club, but that's not why you would have heard of him. He is one of our favourite
personalities, with a career spanning 40 years on television. THEME MUSIC Our sitter today is a
Yorkshireman who's met and interviewed some of the most famous people in the world. He's had a long
and successful career as a TV journalist. He is Michael Parkinson. Hello, Michael.

Hi, Rolf. How are you, mate?

I'm good, yeah. What sort of portrait are you expecting today?

I don't really know. I'm open to offers, actually.


I'm intrigued to see myself as somebody else sees me. I think that's the important thing about
being painted - how do people see you?

Any features of yours that you'd rather they didn't paint?

Er, I'm interested to see what they make of my eyes. I'm most described as baggy-eyed Mike
Parkinson. It'll be interesting to see what they make of that.

Michael won't see the portraits until they're finished, and then he'll choose one to keep. To paint
Michael, I've selected three very different artists. Sherree Valentine-Daines lives in Surrey. She
comes from a family of artists. Her father was a sculptor and her husband's a painter. Sherree
studied fine art at Epsom, and she's been painting professionally for over 20 years. Robin Elvin is
a self-taught artist who lives in King's Lynn in Norfolk. Robin gave up boxing to pursue his art,
and he's won over a dozen awards for his work. He even has a couple of paintings in the Royal
Collection. Amanda Danicic lives in Hackney and teaches painting, drawing and photography at the
University of East London. Amanda studied at St Martin's, and was commended recently for the
prestigious BP Award at the National Portrait Gallery. Three artists with very different styles,
and none of them knows who it is they're going to paint. Well, here we are in the cricket club,
it's a great day out there. Sherree, Robin, Amanda, are you at all nervous about who you might be

Quite excited, yeah, really.


It's something new.


Not at all.

Not at all?