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Lateline Business -

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(generated from captions) significant circuit breaker

for Labor. You saw today her

announcement they were

withdrawing the Government

advertisements for the mining

tax and the mining industry is withdrawing their

advertisements which is a

very good sign I think for a proper negotiation to take

place with the mining

industry. She has obviously

approached it with real good

faith so there are some very

good early signs there is a

significant sea change in the

way in which she is

approaching the Government

and I think that will be a

big thing for Labor going

forward and as I said before,

Tony Abbott does struggle in

dealing with women. We saw

the celebrated incident with

Nicola Roxon in the 2007

election campaign where he

was quite abusive towards her

and that did not do him very

much good. He has had some

instances in the past where

he has said he did not think

women werefies logically

capable of doing the same

sort of things that men did

and when he was asked by Liz

Jackson if he repudiated that

statement from 1979 he

didn't. So he has a way to

go. Michael as a political

professional as you were for

many years - you probably saw

the interviews Julia Gillard

did tonight t flag on one

side tvase of flowers on the

other, in a way two half of

us of her personality, both

of which she will take into

this campaign. It must be a

worry for the Liberal Party t

Coalition generally that you

face a more difficult contest

now. There has never been a

new leader who does not look

good on their first day. They

all look fantastic on day one

and things invariably go

sought there after. I think

what we are seeing now is a

very interesting points in

Australian politics. We have

two former students politicians, two very

well-known famous former

politicians at the head of

the political parties, who

people who the party has

loved longest and vice versa.

We had Rudd there for 5

minutes gone, Brendan Nelson

and Turnbull not nearly as

longer-term Liberals as Tony

Abbott so what we have is both parties reverting to

highly experienced party

members of extremely

long-standing and it will be

a tremendously competitive

battle between to people

whose politics who been their

life. If you look at those

people who failed at the top

of politics in many cases

they are people who have not

had a lifetime in it. It is a

profession like any other

profession. Those who come

into it late in life tend to

do much worse than those who

start when they are 18, 19,

20. So much the talk about,

so little time. Thank you

both. That is all for this

special edition of 'Lateline'. 'Lateline

Business' in a moments but if

you would like to look back

at our interviews or our

stories or transcripts visit

our web site and follow us on

Twitter and Facebook but now

here is 'Lateline Business'. Tonight taking

care ever business. Will

relations improve around tax

and climate change under the

new Prime Minister? They are

big issues going forward and

we will be looking for action

rather than just words. A

truce called over the mining

super profits tax with both

sides withdrawing their ad

campaigns. I think some of

the signals that have been

given today are very

positive. That together the

government and ourselves as a

industry can come to some

conclusive outcome. A deeper

shade of green. Optimism grow

thanks the environment will

get a higher priority.. good

thing is we now stand poised

to take advantage of the

green economy and how we

build a strategy to move

Australia into there. With a

flatd lead from overseas and

a momentous day here the

focus was domestic. Early

gains were lost with the All

Ordinaries down 5 points. The

ASX200 closed lower. In Japan

the Nikkei was up but just.

The Hang Seng lost ground and

in London the FTSE is down.

The leadership coup might

have been quick but the

business community says it

will take some time before it

can determine if the change

is for the better. Business

groups have congratulated Julia Gillard but want to see

more action on the big issues

that led to Kevin Rudd's down

fall. As Kevin Rudd found

out the hard way tangling

with the business community

is a tough game. While Julia

Gillard's parliamentary

colleagues have embraced her leadership the new Prime

Minister will have to earn

her stripes with business.

What the business is looking

for is the very big

challenging issues, whether

it be climate change, tax

reform, industrial relations,

whether it be skills handled

well by Government and they

are big issues going forward

and we will be looking for

action rather than just

words. That is a view shared

by the business council of Australia which represents

the big end of town. The B CA

has been highly critical of

Labor's handling ever issues

such as climate change and

tax reform under the

leadership of Kevin Rudd. I

believe Australians are

looking for a new style of

dialogue between their

political leaders and the

community, one that is more

in close l collusive and more

open and direct and honest

about the issues we face and

the limitations of what

Government can do the address

those issues. As the dramatic

and historic event were

unfolding in Canberra in

Sydney representatives of

companies involved in

renewable energy were meeting

to discuss the latest developments in their sector,

a gathering that turned in

the an expression of hope for

a better future under Julia

Gillard. More importantly

for a new Prime Minister will

be to confirm the Government's commitment that

global warming is real and

re-emphasise to the community

that there is a real threat

here. They would have been

heartened to hear this from

jum jewel in her first public

outing as Prime Minister. It

is my intention to harness

the wind t sun and the new

emerging technologies. I will

do this because I believe in

climate change. I believe

climate change. For the human beings contribute to

Australian head of

international technology

company Semens that must

result in a emissions trading

scheme being put firmly back

the plate call agenda. There

is no clarity in terms of

carbon price that comes with

it and I think the industry

and everyone is waiting for

guidance from the Government

in terms of what will be a

carbon price or whatever the

regulations might be. Mr Gollard says Julia Gillard

needs to go back to the

future the find the answers.

I think they should move

forward with what they said

before in the previous

election and saying they

really take global warming

seriously and stick to the

tar gets they have set then

build the framework around

it. The rest will be done by

the industry. Like all parts of the business communities

the financial service sector

was keeping a close eye on

the complaining at the top.

It is hoping that the reforms

the super profits tax is

funding are not wound back.

We want an early commitment

from this Government they

will continue with their

policy to increase the super

guarantee from 9% to 12%. While Julia Gillard is

dealing with difficult tax

issues John Brogadan had this

advice for her? We think it

was mistake for the

Government to specifically

exclude the GST. I do not

know how you cannot include

the GST without a

review. That is one piece of

vice the new Prime Minister

will ignore. Julia Gillard's

ascendancy has had an impact

over the mining tax. In

Melbourne tonight some miners expressed renewed faith in

negotiations and said they

were open is the mystic the

dispute could be resolved.

The miners certainly were not

mourning the sudden departure

of Kevin Rudd. Stocks jumped

and the mood was decidedly

buoyant at a mining club

forum in Melbourne. We very

much welcome and congratulate

the Prime Minister, the

Honourable Julia Gillard on her taking office and very much look forward to working

with her. Miners returned to

the new Prime Minister's

goodwill agreeing to suspend

their advertising campaign.

I think some of the signal

thanks have been given today

are very positive. That

together the Government and

ourselves as a industry can

come to some conclusive

outcome. Those gathered heard

more unfavourable assessments

of the tax as currently

proposed. We believe the tax

will not work in practice.

We run the risk of we miss to

keep part of this boom because our tax infrastructure is not up to

it. Organisers directed

questions away from the day's

politics but the audience had

other ideas. Prime Minister

Gillard said we are move

fringe consultation to

negotiation. From a Rio Tinto

position where do you think that negotiation might

start? We don't know and we

look forward to having some

real meaningful consultation. Do you accept

that negotiations will now

proceed from a points of

agreement on both sides that

the industry can and should

pay more tax and what kind of

concessions is the industry

prepared to make? We have

said right at the start of

these discussions that to

arrangement between royalties

and taxation can do with a

good spring clean and behind

closed doors I'm sure with

the Government we can start a

true negotiation but I'm

afraid I will not be doing it

with 'Lateline'. Industry heavyweights dismissed

concerns they would be

negotiating with the same

ministers as they had under

Kevin Rudd.. there is strong

respect very high level

respect for both the

Treasurer and now Deputy

Prime Minister and Martin

Ferguson and I'm very

confident that there - I'm

optimistic is a better word,

I'm optimistic that the

reasons that have been stated

for a change in the Prime

Minister of this country were

policy and process. And it

was policy and process that

bee developed us blue so

let's all cross our fingers

and hope for a positive

outcome in what is hoped to

be engaged in a second round

of consultation. But the venom is still in the

system. I have seldom seen

an assault on a industry with

such vig job, rigor and miss

rep sent is the as we have

witnessed. Hopefully we will

turn the corner and people

will seriously engage on what

real reform looks like rather

than using us as a punching

bag for a tax grab. The new

Prime Minister might have

invited to miners back to the

table but no door remains

open indefinitely. The two

big miners Rio Tinto and BHP

Billiton did not want to

comment on camera today about

the leadership change. Not so

shy was the arch critic of

the resources super profit tax billionaire Andrew

Forrest of Fortescue Metals. We heard you, new Prime

Minister, very clearly you

are going to negotiate. We

welcome that but we do say to

you that every day the RSP

goes on our ability to

recover our projects further

damages our economies. We ask

you to step up. Take the tax

off the table or put it into

a position where it can

really grow Australia's

economy which I know think

dead in the original format

this tax does not do. Another

voice from the mining side is

far from convinced a new face

at the top will fix the

damage that the tax is doing

the industry. Simon Benison

is based in Perth. I spoke to

him earlier. A new Prime

Minister Gillard kept say

gang the Government needs to

do morn consult with the

mining industry to negotiate

but also that the starting

points that is the mining

industry agrees it should pay

more tax. It does not seem to

be much give and take there.

No. I think until we are very

clear of what is on the table

for negotiation there will be

still a fair amount of

cynicism from the industry as

to how much room we have to

move with regard to these negotiations. What difference

will a Prime Minister Julia

Gillard make to the current stand-off? Good question.

But the ball is in her court.

She can actually make a

serious difference if the

will is there to do so. As a

gesture incoming to the table

and being able to start fresh

negotiation was a clean slate

the various industry

organisations to my little

have agreed to put a halt to

the campaigns until we get

some clarity around just

exactly what is up for

negotiation and how we can take the situation

forward. Julia Gillard says

she will genuinely negotiate

and yet it is the same two ministers Wayne Swan and

Ferguson doing the

negotiating and last week

Wayne Swan claimed some of

the big miners were using

strong-arm tactics.

Yes, look, that is a little

open to interpretation that

description. And I'm not too

sure exactly how it applies.

If it infers that some of

those larger companies are

using strong arm tactics with

any of the other companies

junior end of town I can

categorically say from our

perspective we have not seen

nor heard of such tactics

being applied and to the best

of my knowledge the industry

is still very unified in its

approach to resolving this

issue. Would it have been helpful to have different

ministers in charge of

negotiations? We cannot pick

and choose obviously in a

situation like this. We just

want everyone to act

responsibly and resolve this

matter as soon as possible.

We just can not afford for

this to be dragged out in

longer. The confidence for

investment in Australia has

been severely dented. The

whole thing is turning into

unfortunately a very

ridiculous situation and

particularly with our

membership and our junior and

end of time with companies

tying to raise equity finance

they are still finding it extremely difficult even

though some people are

commentating on the rebound

in the capital value of some

stocks there is still some

serious issues out there for

the junior explorers in

particular to raise

finance. If the government

does come to strike a deal

the mining industry find acceptable do you think the

budget forecast of anything

like the $12 billion in tax

will be realised? Look, I

think there are more ways to

really look at resolving the budgetary issues and I guess

that is where the cynicism

has come out of industry to

say is this really a

financial solution they are

looking for or was there

actually another agenda

behind going down this path?

I guess that is a no? Well

that is right. You know, we

have seen, you know, the

social or the class warfare

if you like develop in this

whole context of using a

two-speed economy as an

excuse to pit the Australian

community as a whole against

each other in the context of

what we see mainly as a

political agenda. Other than

tax negotiations how else might the Prime Minister

restore damaged confidence in

the mining and minerals

exploration sector? We have

to resolve the issue as soon

as possible, simple as that.

Just get around the table,

agree on the main parameters

that can be entertained in

the context of tax reform and

do this within the next

couple of weeks max and that

is the most simple way to

take this forward and find

some resolution to it. Prime

Minister Gillard says an

election is coming up in the

next few months. Would you

rather a deal was done before

this and does an election

give the mining industry

leverage? If this ran to an

election so be it but I think

genuinely people want this

resolved. It is the industry

that is hurting. Do not see

any winners coming out of

this process and to drag it

out no matter when the

election is, is not going to

be in the interest of

particularly the exploration

end of town which is looking

for equity finance at the

moment and obviously the

uncertainty for even the mid

tiers in the process of

raising finance or looking at

what they do with projects

on-shore in Australia with further development. Thank

you for joining us. Thank

you. One of the priorities

that the new Prime Minister

stressed in her acceptance

speech today was action on climate change. Julia Gillard is a believer in climate

change. She want to do more

for alternative energy and

pledged to reprosecute the

case for a carbon price. By

chance the business think tank Environment Business

Australia held its own

conference around new market,

new industries and new jobs

in the sustainable space. I

spoke with Fiona Wayne. Were

you surprised how high up the

list that alternative energy

and a carbon price was in

Prime Minister Gillard's

acceptance speech today? Not

at all. I think the backlash

that has been felt since this was deferred we have heard

from companies, investors and

consumers domestic lip and

overseas and I'm sure the Government has been hearing

that as well. The good thing

is we now stand poised to

take advantage of the green

economy and how we build the

strategy to move Australia

into that really taking

advantage of our vast

endowments of renewable

energy and contradictory as

Australian soils because they it may seem our very worn

can act as a good carbon sink

drawing legacy CO2 from the atmosphere which is a huge

part of the issue going

forward. Good news for the

EBA but Julia Gillard talked

about the need for community

consensus on climate change. I'm sure former Prime

Minister Kevin Rudd thought

he had that before the last

election. Is that the a cop-out? I don't think it

is. Because now there is a

opportunity for Prime

Minister Gillard to go back

the community and say "We

kind of heard you but we did

not act on what we heard so

how about we seek a refreshed

mandate and take another look

at targets for 2020, for cuts

in greenhouse gas emissions?

How high should we go?" The

feedback I'm getting from the

business and community is

more than 5% and a number of

companies are keen to get on

with that task at scale and

at speed but they need the

right policy framework to

support them going forward.

So they need confy densz and

they need encouragement from

Government. When it comes to

trade off between a trading

scheme and a carbon tax do

you think everything is on

the table now? I would still

favour an emissions trading

scheme because it is far more

flexible and lit help to

bring through emerging

technologies and probably

does far more action in a

emissions trading scheme is short space of time but if an

not in the offing in the

immediate term then let's go

with the carbon tax. That

would be our No 2 believe

market instruments that can rentional. There are other

be brought in alongside. Last

night we saw the renewable

energy target pass through

Senate which is fantastically

good news but we do not have

to rely on one market

mechanism. We can phase in

and phase out others that do

a short, sharp job A gross

feed-in tariff which has help

add lot of European companies

get renewable energy scaled

up. Where do you sit on the

resource its super profits

tax? We have to be pricing everything neglective and

positive. There is nothing

cheap about fossil fuels if

they are still creating

collateral damage. So you

would support a 40% tax? Yes,

absolutely as long as that

money is used to do things

that will take those

companies forward. Putting it

into consolidated revenue

without defining and

designing a strategy to use

that funding is pretty

meaningless so we need to

know there is a strategy that

will drive new technology,

dry new infrastructure and

help the existing sectors of the economy righter value-add

to what they do or make a

transition to something

else. You are optimistic that

Prime Minister Gillard is

going down that track now?

She has a brilliant mind. She

is very unflappable, thee thinks strategically, I'm

full of hope. Cautious

optimism but yes, I'm optimistic. The other major

movers on the market.

Macquarie Group shares sank

the an 11-month low after an

admission market conditions

were hurting some of its businesses.

Wrapping a up a

two-day meeting that left

interest rates at record lows

the Federal Reserve this

noted the recovery was

fragile and could be blown

off course by event in Europe

so how healthy is the world's

biggest economy. We are

joined by the chief economist

as IHS. You have just given a

presentation on this very

issue of a double-dip recession. What is the risk

now? What did you conclude

and why? Well we actually

think that risk has risen a

little bit but it is still

fairly low. We think it is

still only about a 20%

probability of a double-dip

but it has risen mostly

because of what you were just

saying in terms of the

fragility of the recovery in particular housing but also

because of concerns about two

external shocks the the US,

one from Europe in terms of

the euro crisis and the

second the potential for a

hard landing in China as the

Government there tries to

deflate the real estate

bubble so there is increasing

worries a little bit about

this external vulnerability

to the US economy. We have

terrible housing numbers some

of the worst since the '60s

and bad jobless numbers as

well. This is hardly an economy on the mend. That is

correct. It is important to

look underneath the headline

numbers. Parts of the US

economy are doing nicely,

consumer spending is growing.

Capital spending on equipment

is growing, exports are doing

still okay even though the

dollar is strengthened but as

you say housing is in

terrible shape still. It is

bouncing along the bottom is

the way to describe it. Up

one month down the next kind

of thing. Then there are

other parts of the economy

for example none residential

real estate not doing well

and the spending by the state and local governments

contracting so you have some

parts doing well and other

parts that are not doing so well. You put that together

and the US economy is growing

around 3% which is not bad

but it is not great either so

it is that sort of lukewarm

situation we seem to be in

now. There is talk of another

stimulus. Is that far-fetched

and could the US afford it

anyway? You have the under

the economics and the

politics of. This the

economic are they are not

going to be able to do much

because they cannot afford to

because of the huge deficit

so the effect will be small.

The politic are that you are

coming up on a mid-term

congressional election and

the Democrats are worried

about losing their majorities

in both houses so from that perspective you may see

something purely with the

politics in mind. Looking

aheed to the G8 and G20

meetings does this Heene the

pressure we have now on some

European governments that

have introduced austerity

programs is going to grow?

That they should not be doing

anything that could

jeopardise growth? That is

the big debate and argument

right now. It has to do with

the fact that the US is

essentially saying look

fiscal austerity is good but

don't do it just now because

of the fragility of the

recovery whereas European are

saying the fiscal austerity and tightness is more

important than worrying about

growth in the near term which

is true of the German whose

do not need to tighten their

budget situation is not bad

but they are tightening

nevertheless so the largest

economy in the eurozone,

Germany, could jeopardise the

European recovery so that is

the argument t tension that

is going on now. I know you

think Central Banks would act

quickly to any further crisis

or threat of a double dip but

what are the tools they have

left to them? The deficit are

incredibly heavy and many of

the rates are very low learn

these countries? You are

absolutely right about that.

The good news for many

Central Banks especially in

the developed world in Europe

and the US is inflation is

very low, it is not a

problem, so on that score

they have a lot of room to

manoeuvre but if they had to

do something let's say in a

crisis they would go back to

the unorthodox measures they

used in 2008, 20 09 which was

referred to as quantitative

easing, they may buy

Government bonds or private

sector. Tom situation is like

this in Europe. They are in

crisis mode with their awareness heightened and they

are ready to move. When they

met yesterday were you

surprised by them being

pessimistic? No, we are

looking at the same data and

we are worried about growth

toward the end of this year

and into next year. We are

not changing our growth

forecast this year but

lowering it to 2.5% next year

so there are some downside

risks getting into next year.

Our business diary. Graeme

Samuel will speak the institute of company directors in Adelaide.

Let's talk says Prime

Minister. The headline in the

Sun as change at the top

brings a truce on the mining

tax. The Australian says the

Gillard coup lifts miners. The 'Australian Financial

Review' has Gillard vows to

find a new way and the

'Sydney Morning Herald' says

the mining tycoons have claimed much of the credit

for Kevin Rudd's down fall

that is all for tonight. As I

leave you the Dow is yet to

come on. The FTSE is down 24

points or 0.48%. Thank you

for watching. Goodnight. Closed captions by CSI

AMPLIFIER FEEDBACK THEME MUSIC (Laughs) That's terrible! You know, I think that spirituality is very important to me, it's something that keeps me alive. I think most people would agree that there's another dimension to life. So I don't want to ever neglect that side, of who I am or of life. There's that feeling of - you could gain the world and lose who you are, and there's so much happening all the time, you just need a bit of peace every now and again, you know. (Sings soulfully) SPANISH MUSIC PLAYS

You know, as a kid, people would say to me, "Oh, comics are just junk," the truth is, sometimes they're junk

and sometimes they've got a bit of a message. The main thing is, they're comics, and they're a really good laugh and they're good fun to read, and they're gripping and they do what it says on the tin, you know, You want a bit of adventure? Cool, look at that! And Maiden's the same, we don't have any, you know, pretentious to make great moral stances on anything but every now and again, it creeps into the songs, of course it does. But it's not what we're for - what we're for is getting out there and just delivering, like, this huge punch to your head, live, and it's like, "Whoa!". (Sings deep note) 'Unwritten' is a song that was written for my younger brother, and when I sung it, I had to take out all the frilly stuff. You know, as a singer, it's very tempting to start going and doing lots of riffs. In that song, I stepped back, and was like, "No, I want to keep it simple," 'cause I'm saying this to my brother. And beyond that, it kind of seems to relate to other people, which was really good. But for me, it was like, "I want to sing this from a true place". Here we go! MUSIC BEGINS (Sings)

# I am unwritten, Can't read my mind,

# I'm undefined # I'm just beginning, The pen's in my hand # Ending unplanned # Staring at the blank page Before you # Open up the dirty window # Let the sun illuminate the words That you could not find # Reaching for something In the distance # So close you can almost taste it # Release your inhibitions # Feel the rain on your skin # No-one else can feel it for you # Only you can let it in # No-one else, no-one else # Can speak the words on your lips # Drench yourself in words unspoken # Live your life with arms wide-open # Today is where your book begins # The rest is still unwritten # Oh oh # Yeah, yeah # Staring at the blank page Before you # Open up the dirty window # Let the sun illuminate the words That you could not find # Reaching for something In the distance # So close you can almost taste it # Release your inhibitions # Feel the rain on your skin # No-one else can feel it for you

# Only you can let it in # No-one else, no-one else # Can speak the words on your lips # Drench yourself in words unspoken # Live your life with arms wide-open

# Today is where your book begins # Whoa, oh, oh # Oh, oh, oh # Whoa, oh, oh # Oh, oh, oh, oh

# Whoa, oh, oh Yeah, yeah # The rest is still unwritten. # MUSIC FADES (Sings) # If only I can # Get through this

# Gotta help me get through this # Gotta help me...# (Laughs) I think there is a soul element I probably would have picked up, like a lot of singers,

like the 'Aretha Franklin' kind of camp of people, um, came from that background. I could probably explain some of that some of the soul that is in my music from that, but also because I like listening to any music that's got life or meaning to it. Coldplay - I mean I would call them soul, Jeff Buckley - that's soul, that's someone singing right from their heart, Bjork is soul. Cheers. I'm 25 now, and I feel like... ..like when you're first beginning and anything's possible, and it's very idealistic... This is my version of the moonwalk! This is called the 'dorkwalk'. ..And there's definitely a place for that, but also, there's another side of, you know, I have to be honest

there are things that you get disappointed about in life, and you don't always win, you know,

the prize at the end of the day. GUITAR STRUMS

(Sings) # Incompatible, It don't matter though # 'Cause someone's bound To hear my cry # Speak out if you do # You're not easy to find

# Is it possible Mr Loveable # Is already in my life