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CC Tonight, the bad oil -

will passion change policies if

Labor wins power? Peter

Garrett has let the cat out of

the bag. Rivalries on hold as a

fallen digger is farewelled.

Guilty as charged. The fatal

mistake by London police. And

cocaine shock. It's game, set

match for the Swiss Miss. Good

evening, Juanita Phillips with

ABC News. Once we get in we'll

just change it all. With those

words, Peter Garrett has thrown

the Labor Party's election

campaign into turmoil. The

Government says it proves that

Labor's me too campaign is a

fraud designed to hoodwink

voters. Mr Garrett says he was

only joking. Intractably behind

in the polls with three weeks

to go, John Howard certainly

needs a break. Today he finally

got it. Vote in an old rock star at your own

peril. Courtesy of loose

remarks to Sydney radio presenter Steve Price from

Peter Garrett. He said, "Don't

worry about that. Once we get

in we'll change that." Peter

Garrett does not deny using the

words. I had a brief jocular

conversation with Steve Price.

He wasn't laughing. It wasn't a

joke. It was a direct response

to a direct question. There was

a third person in the

conversation, television

personality Richard will knds.

He agrees with Mr Garrett.

Peter had an off-the-cuff

numerous response. If Labor

gets elected, they're gonna

change what they promised on

tax, on pensioners, on

Kyoto. Kevin Rudd was in Perth

as the storm erupted but

refused to comment before

flying off to campaign in

Darwin. I don't think he

believes in anything. It's the

second time this week Mr

Garrett has embarrassed the

Opposition Leader. On Monday he

implied a Rudd Government would

agree to mandatory targets for cutting greenhouse gases

without similar commitments

from developing countries.

Today's Nielsen poll shows

Labor retaining an

election-winning lead and the Coalition languishing. Kevin

Rudd remains preferred Prime

Minister. I'm not going to

respond in any way to polls. I

have a plan not only for the future of Australia but a plan

and a strategy for this campaign. This is a marathon.

It will be really

tight. Probably even tighter

now. The episode reveals the

perils of political

inexperience and Kevin Rudd's

refusal to comment on Garrett

gaff version 2 does not look

good. Richard Wilkins has

muddied the waters but it is a

break John Howard desperately

needs. Was there a conspiracy

by the authorities to keep

Mohammed Haneef locked up? New

emails throw open that

possibility even though the

Immigration Minister and

Federal Police deny it. The

documents were obtained under

freedom of information laws and

reveal a see-called contingency

plan to keep Dr Haneef in jail

regardless of the criminal case

against him or what the

Government was saying publicly.

Mohammed Haneef's lawyers are

hoping these documents might help him win back his

Australian work visa. The

documents reveal a conversation

between Federal Police agents.

An officer writes:

A magistrate did give Dr

Haneef bail and then a few

hours later, the Immigration

Minister Kevin Andrews revoked

the Indian's work visa,

ensuring he'd stay locked up.

The Minister has always claimed

no link between the two events.

These documents claim

jigsaw of information out otherwise. That is part of the

there. It is obvious from the

emails that the AFP are

communicating amongst

themselves and then with the

apartment. there is now a list

a mile long of unanswered

questions in the Haneef case

and they go to important

national security issues - the

competence of the AFP and Director of Public

Prosecutions, the role of

politics in these terrorism

cases and the effectiveness of

Australia's counterterrorism

laws. Today the Coalition

wasn't commenting, Labor was.

Our demand is there be a full

judicial inquiry. Mohammed

Haneef's visa appeal will be

heard in Brisbane in a

fortnight. In an unrelated

case, a Supreme Court judge has

ruled police interviews

inadmissible in the trial of a

former Sydney medical student

accused of training with a

terrorist organisation. Izhar

ul-Haque pleaded not guilty to

receiving combat and weapons training from Lashkar-e-Toibar

in Pakistan in 2003. Late this

afternoon, the judge ruled

because of the conduct of ASIO

and Federal Police, the

interviews are in admissible.

The judge won't disclose his

reasons until it's clear

whether the trial will proceed.

The London police force has

been found guilty over a series of errors which resulted in

them shooting dead the wrong

man. The city's Metropolitan

Police were on trial for

killing a Brazilian man they

thought was a suicide bomber.

The fatal mistake happened in

2005 just after the London

bombings. Individual police

weren't convicted but the force

has been ordered to pay almost

$1.3 million in fines and

costs. It was a tragic case of

mistaken identity. A day after terrorists failed to detonate

several bombs on July 21,

police were tracking one of the

suspected suicide bombers. In a

series of blunders, they

wrongly identified 27-year-old Jean Charles de Menezes as

their suspect. The officer who

should have corrected the

mistake was distracted and

didn't clearly see the

Brazilian leave his flat.

Another policeman who could

have stopped him was told to

hold off, leaving it for armed

police. Those officers weren't

there, they rushed to the scene

after Mr De Menezes passed

through the ticket barrier and

got on a train, storming his

carriage and shooting him seven

times as passengers looked on.

After an unprecedented and

controversial trial, the jury

found the Metropolitan Police

guilty of breaking health and

safety laws and endangering the

public. I have spoken to men

Jean Charles de Menezes's

mother, Maria. She said nothing

can bring Jean back but she is

pleased the jury have found the

Metropolitan Police guilty of

the charge. The guilty verdict

has triggered calls for the

UK's top police chief to stand

down. The difficulty shown in

this trial were those of an

organisation struggling on a

single day to get to grips with

a simply extraordinary

situation. Its greatest

operational challenge in a generation. During the trial,

the judge described July 2005

as a dark month in the history

of London, just two weeks

before the failed bombings, 52

people were killed in a 7/7

terrorist attack. It was a

month when the capital was on

its highest state of alert. SAS soldier Matthew Locke has been

farewelled at a private funeral

in Perth, just over a week

after he was shot dead by

after he was shot dead by Taleban fighters in

Afghanistan. The nation's top

brass joined political leaders

and mourners to pay tribute to

Sergeant Locke. The funeral

progression for Sergeant Locke

was greeted at Karrakatta

cemetery by about a thousand

mourners. Friends and family

were joirn by SAS colleagues,

the top military brass and

Governor-General and

politicians. Sergeant Locke was

on patrol in Afghanistan's

Oruzgan province when shot in

the chest by Taleban

extremists. In an emotional

tribute during today's service,

Sergeant Locke's wife Leigh

recite adpoem written by their

young son for a school

assignment early this year,

titled Hero, it was all about

the forkt he looked up to.

After joining the army in 1991,

Sergeant Locke spent 10 years

with the SAS and was award the

prestigious medal for gallantry

for outstanding leadership and

bravery under fire in Afghanistan. Before today's

service, the Prime Minister and Opposition Leader paid tribute

to Sergeant Locke, the second

Australian soldier to be killed

in Afghanistan in a month. I

think about it a lot because

I'm the person in the end who

sends some men and women into

battle. His loss is a huge

loss to his family and it is a

loss to his regiment and it is

a loss to the nation. Sergeant

Locke is survived by his wife

Leigh and son Keegan. Sydneysiders have been assured

the city's water supply is

safe, despite claims it

threatened by an outbreak of

blue green algae. The bloom is

now 12m deep and stretches 13km

across the Warragamba Dam. The

Opposition says documents show that as a result the water

supply is at its lowest level

ever. The blue green algal

bloom that developed in

Warragamba Dam in August is

effectively knocking out one

half of the water currently in

Warragamba Dam, that's some 500

billion litres. But the

Government says the bloom only

affects a fraction of the dam's

capacity. The algal bloom

affects 3% to 4% of the total

storage of the lake behind the

Warragamba Dam. It in no way

threatens our capacity to

continue to supply Sydney with high quality drinking

water. The Minister says water

is being drawn from nearly 50m

below the surface, well away

from thealgy. Massive blitz or

PR stunt? The Iemma Government

has launched its annual crack

down on alcohol-fuelled crime.

While the Premier was talking

up the show of force, police

revealed there will be fewer of

them patrolling Sydney's

streets this summer. The

Premier, his Police Minister,

the head of police and his

assistant put on a show of

force to launch the blitz on

bad behaviour. The message is

simple. If you want to care a

on like a drunken lout or hoon,

the police are going to lock

you up. Anti-social behaviour

will not boo tolerated. Four

separate operations, the first

starting tomorrow, will target

beachicide suburbs from

Cronulla to Bondi. Pubs and

clubs in the city will attract

extra police attention, as will Melbourne Cup revellers on Tuesday but the Opposition says

it's about getting headlines, not combatting crime. I thinks

there no doubt this is becoming

the generic lead up to

Christmas generic publicity

stunt. Figures from the bureau

of crime statistics show last

summer was the worst in three

years for assault, so will

there be more police on the

beat? It would actually be

slightly less in numbers. the

Premier doesn't think that's an

issue. It ought not to be

undervalued by a statistical

compare an is 12 months ago or

two years ago. The police say

more officers will be called in if necessary. The Government

came under pressure over the

parliamentary inquiry into

Royal North Shore Hospital. The

Opposition fears it will be a

white wash with only three

public hearing dates

scheduled. It looks like political interests rather than patient interests are driving

this committee. But the head

of the inquiry says if he needs

more hearing dates he'll ask

for them. Japanese war ships

have been ordered back to port

of the Government cancelled

refuelling operations for

US-led forces in Afghanistan.

Prime Minister Fukuda announced

the withdrawal after Opposition

parties refused to approve an

extension of the mission. It's

a major defeat for Mr Fukuda

who took office only weeks ago.

Japan is America's top Asian

ally. It's been refuelling

Coalition war ships in the

Indian Ocean since 2001. A team

of American experts has arrived

in North Korea to start work on

dismantling the country's main

nuke facility. Under an

agreement, yoning dwraning says

it will abandon its nuclear

ambitions in exchange for the

equivalent of 1 million tons of

oil. In Mexico, hundreds of

thousands of people are

homeless after flooding. Authorities say crops have been

wiped out and aid is only now

trickling in. Three-quarters of

this low-lying State has been

swamp by days of torrential

rain. Paul Tibbetts once said

that even Dante would have been

scared if he'd been with him on

the faithful flight in 1945.

The American pilot who dropped

the first atomic bomb on

Hiroshima has died. The inferno

he triggered killed tens of

thousands of people but dib dib

insisted he slept soundly at

night. It's the plane that

ushered in the nuclear age.

Paul Tibbetts new the enormity

of the mission over Hiroshima

and wanted his own mark on the

bomber. I wanted to put my

mother's name on the plane. On

6 August 1945, the then air

force colonel was preparing for a flight that would change the

world. A 5-ton atomic bomb was

loaded on to the plane. The

crew of 14 flew six hours to

Hiroshima and dropped the

deadly cargo. Where there had

been a distinct city below us,

there was nothing down the but

what, in my vernacular, was a

black boiling mess and that

cloud up above it was tumbling

and rolling. The blast killed

140,000 people and injured

countless others. Japan surrend

ered days later. Paul Tibbetts

insist heed had no regrets as

the bombing helped end World

War II. Wars are hell. People

get killed in wars. That is too

bad but there's no morality in

warfare and I have never tried

to equate it to morality. Mr

Tibbetts canned for no funeral

or a head stone. He feared both

would attract protesters.

Tonight's top story - Labor's

in damage control over its me

too policies after Peter

Garrett said, "Once we get in,

we'll change it all." Still to

come, Cate Blanchett defends

her new role. Cardboard king

Richard Pratt and his company

Visy industries have been hit

with a record fine for their

involvement in a price fixing

scandal. Visy will have to fork

out $36 million. Regulators now

argue jail would have been a

better deterrent. Richard Pratt

wasn't in Melbourne today to

hear the damn ing descriptions

of the cartel he approved.

This was the worst cartel to

come before the courts in

30-plus years. Anyone who has

in the past bought a chocolate

bar or piece of fruit back

packed in a box made by Visy or

Amcor has probably been ripped

off. Welcoming the penalty, the

ACCC has renewed calls for the

Federal Government to introduce

criminal sanctions for

executives who engage in price

fixing. Financial penalties

aren our analysis and many

jurisdictions throughout the

world, a light touch compared

to the prospect of a jail

sentence. It is anomalous that

Australia does not have

criminal penalties for cartel

conduct given they can impose

such substantial economic harm

on so many consumers. More than

17,000 customers of Visy and

Amcor will now launch a class

action. If it's agree cartels

are a cancer on society, that

can't be cure by merely hitting

the cartels with a big fine t

can only be cure by the

disgorgement of the ill gotten

gains back to customers. The

judge rejected the argument

that the Visy executives had a

poor comprehension of the Trade Practices Act. He also found if

the cartel hadn't been

discovered, it would probably

still be flourishing. The

credit crisis has returned to

haunt Wall Street. American

equity markets tumbled, only a

day after the US forever cut

interest rates again. The

euphoria on Wall Street

triggered by the US interest

rate cut vanished in an instant

over night, partly because

America's central bank is worried about the impact of

rising oil prices on inflation

and that makes investors

nervous about future interest

rate cuts. There may be more

cuts coming but there may not

be as fast or as many as you'd

expect. Bad news out of Citigroup today with an analyst

at a competing firm warning the

whole spectre of

One analyst said Citigroup

will be forced to sell assets,

raise capital or cut its

dividend to shore up its

capital base. The bank of

America suffered an earnings

down grade and analysts expects

more subprime tremors ahead.

I'll see it as an enduring

problem over the next 12 months

but not necessarily an

increasing problem. A report by

accounting firm dloits on the

mortgage industry says

Australians are more

comfortable with higher debt

levels and home borrowers won't

be deterred. The underlying

Australian mortgage market has

been resilient in the face of

global turmoil. The turmoil is

making money more expensive for

the banks. Guess who will have

to pay? I think a normal

economic response to increased

cost of funding is try to

maintain margins and pass it on

to your borrower community. The Reserve Bank is expected to

deliver higher interest rates

as soon as next week. The share market here and those else

where in the world took fright

at the Wall Street sell-off.

Alan Kohler has the details.

The local market closed 1.9%

lower after a rocky day's

trading during which the All

Ordinaries got as high as 2705.

It started with reports on

Citigroup which sent its shares

tumbling 2%, leaving the Dow

Jones average 2.6% lower. The

last two times it fell like

that in the morning, it bounced

in the afternoon. Last night,

no bounce. The selling began in

Europe with the British and

French markets falling 2% and

continued in Asia today. The

Taiwan market dropped 2.8%. In

Australia, the resources stocks

were hammered, BHP Billiton

down 4%, Rio Tinto 3.5 and

downer EDI cop ad13% slap after

coming out with a profit

downfraid. Macquarie Bank fell

more than 3%, Westpac down 2%

but manage said to stay above

ANZ. The one stock that defied

the trend was Telstra, up 8

cents after yesterday's investors presentation and

profit upgrade. This graph

plots the Chinese, Australian

and US share markets after the

bottom of the correction. It

puts today's action in context

and shows the local share

market is no longer shadowing

Wall Street, it's snuggling up to Shanghai.

I'm back on Sunday at 10:00am

with 'Inside Business' with the

chairman of ACCC and Kerry

Harmanis, chairman of jubilee

mines. It's hoped equine

influenza can be wiped out in

NSW by April next year. Too old

the State Government declared

the worst of the outbreak is

over. We have over 5,000

properties infected but the

rate of the spread of the

disease has almost

concluded. The Minister has

reclassified a large part of

the State from high to low

risk. She was named after one

of the greatest tennis players

of all but unlike her namesake,

Martina Hingis's career has

ended in tears, nots triumph.

The player dubbed the Swiss

Miss has retired from tennis

after revealing she tested

positive for cocaine at

Wimbledon this year. The

teenage star of the '90s,

Martina Hingis, became a somewhat tormented figure in

her 20s. Today, she vehemently

denied taking drugs despite a

positive test for cocaine use

at Wimbledon.

TRANSLATION: I find this

accusation so horrendous, so

monstrous, I have decided to

confront it head on. Hingis won

the Australian, Wimbledon and

US Open crowns. She retired in

2003 and came back in late 2005

but it's been brief and at 27,,

this retirement is giving her

deep concerns. I would think

it would be impossible for

anyone to maintain the coordination required to play

top class tennis while under

the influence of drugs. Also

pleading innocence, Russian

Nikolay Davydenko has been

warned for not trying hard

enough. The world number four

was sluggish in a 6-2, 6-2

third round defeat against

Marcus Baghdatis in the Paris

Masters. You serve like

me. Davydenko was fined last

week for not trying during a

surprise defeat in Saint

Petersberg and has been under a

cloud of suspicion over betting

irregularities in a match in

Poland in August. Cricket

Australia has moved against the

growing threat of illicit drugs

by introducing a policy which

will see a second office result

in a suspension and fine. A

third offence will result in a

12-month ban. Cricket Australia recognises the

position our players are in in

terms of having the capacity to

ins fluence members of the

public. 88% of the nation's

players survey ed in the

formulation of the policy

endorsed its implement ation.

The playersment to protect the

reputation of cricket and

continue to foster a drug-free

culture. Players can be tested

anywhere, anytime. And the Sri Lankans might be heading back

to the drawing board after

struggling to 210 on the first

day of their tour match against

Queensland. It wasn't Test man

John Johnson doing the damage

but another inform Bulls

paceman Ashley Noffke who took

5/36. Former Wallaby coach Alan

Jones has applied for the

current position, nearly 20

years since he last coached the

side. I am being asked to

stand as an agent of change. I

have an obligation to offer

myself. It's for others to

determine wlO that's

acceptable. Jones is one of

more than 90 applicants for the

job, with the ARU to begin

interviews next week. Off with

his head - that was Blanchett's

tongue in cheek response to

scathing criticism from Colin

Moody. He said winning an Oscar

didn't qualify her to be the

artistic director of the Sydney

Theatre Company. Cate Blanchett

responded to the criticism of

her in true Elizabethan style,

calling for the critic's head. Blanchett and her husband

Andrew Upton are about to take

over the Sydney Theatre

Company. That prompted actor

Colin Moody to quit last week, saying they weren't qualified

to replace director Robyn

Nevin. Today, Blanchett said

art had flourished under

Elizabeth and she wanted her

rein to be the same. I can

only hope under our tenure at

Australian writing flourishes the Sydney Theatre Company that

in the same way. 'Elizabeth

the Golden Age' has come under

attack from Vatican-backed

historian Franco Cardini who

described the film as a

distorted anti-papal travesty.

It's not anti-Catholic. It's

very deeply nonanti-Catholic.

It is anti-extreme forms of re

ligion. It's been 10 years

since the first Elizabeth.

Geoffery Rush says it's unusual

for Hollywood have support a

period drama sequel. I can

only think of 'Godfather'

trilogy where you get a group

of actors back later. Shekhar

Kapur always saw the films as

trilogy but that depends on

whether this sequel strikes

gold at the box office. Time

for the weather now and it's

looking like a wet weekend, Graham? Something I've been

talking about all week and the

heavens are finally primed to

open up. If all goes to plan,

by Monday, most of the State

will have had a good drenching.

Cloud extends from NSW back

into the Northern Territory and

although there have been some

gaps in that cloud and they

continue at the moment, they

will fill in overnight and

tomorrow. That's as an inland

low pressure system forms. That

low will track along the NSW

and Victorian border, support

by an upper level low that sits

back in SA. Basically, all that

means is the atmosphere over

most of the State will be ripe

for showers, rain and thunderstorms and the moist

warm north westerly wind will

feed widespread falls. The rainfall prediction shows

widespread falls overnight with

moderate to heavy totals over

the eastern half of the State.

For the western half, we will

see the activity more showery

rather than theer widespread

rain. Flood watches are current

for eastern Victoria, although

the heavy falls look as though

they'll miss Melbourne.

That's looking good. Thank

you. That's ABC News for this

Friday. Stay with us now for

Stateline with Quentin Dempster. Goodnight.

Closed Captions by CSI

This week, James Packer's

dinner. One of the encounters

I had with Mr Packer was at his

request and Mr Richardson was present. Whatever happened to

the proposed code of practice

on influence peddling. Also,

photographs from the struggle

for Indigenous rights. It's a powerful walk through our history. And campaign Friday

looks at the events of today

and the week. He thought I was

all boobs. CC Welcome to

Stateline NSW. I'm Quentin

Dempster. Mate. The mates are

back, it seems. On one still

unspecified night soon after he

became Premier in 2005, Morris

Iemma was taken to dinner. Mr

Iemma gave up an evening of