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Prime Minister to face Khans Live. The party's over, Italy's

for paying for an underaged prostitute. It implies that

there is an overwhelming evidence but none necessarily

that he's guilty.

Flights cancelled and record Flights cancelled

rain in Darwin as the Top End prepares for a cyclone. Prime

Minister Julia Gillard to make

history hen - when addresses New Zealand history hen - when she

parliament this morning and the Spanish Federation clears

cyclist Alberto Contador of a

doping charge. Good morning, you're watching ABC News 24, I'm Virginia Trioli. A judge in

the Italian city of Milan has

ordered that the Prime Minister, Silvio Minister, Silvio Berlusconi, stand trial on charges of having sex with an underaged

position by trying to cover it

up. The date for the hearing

has been set down for April.

All 3 of the judges who will preside over the women. Europe correspondent

Italian Prime Minister arrived Emma Alberici reports. As the

in Sicily for an

meeting about the flood of Tunisian refugees landing on

his shores, a personal crisis

was erupting in Milan. The

74-year-old sent to trial for

extortion and sex with a minor. Meanwhile the girl in question,

known by her stage name

the heart stealer, is cashing

in on her new found appearing in this marketing

campaign for a self-help

book. Prosecutors say she was

17 when she met Mr Berlusconi

at one of his sex parties. Both she and the Prime Minister having sex but he does admit she and the Prime Minister deny

giving her a car, a diamond neck lace neck lace and $9,500 in cash. Once the trial

which is April 6, once which is April 6, once you

start hearing the positions of

the testimony of the various

witnesses and the girls were in the wire tapping and witnesses and the girls who

the conversation on the phone

wire tapping then if you start to hear something which is

really embarrassing and

difficult to handle, I think that that of Berlusconi and his that that could hurt the image positioning as prime minister. Three female judges will also hear evidence about Mr Berlusconi's decision to

telephone a police station to

have Ruby released from custody

on an unrelated on an unrelated theft charge.

The PM denies he abused his

position. He says it was all misunderstanding, that he position. He says it was all a

granddaughter of the e Egyptian believes she was the

save from President whom he wanted to

embarrassment. Berlusconi is a

fighter, he has not given up in

the past, even when he lost

elections. He is unlikely to

resign because that would be some sort of some sort of admission of his

guilt. He is going to fight in

the courts and he's going to

fight in the squares, he's

going to try and demonstrate,

Hee - he is going to use all

of his media. Notice of the trial was served just days

after up to 1 million people after up to 1 million

took to the streets calling for

he's found guilty he faces 15 Mr Berlusconi's resignation. If

you to New Zealand where years in jail. Now we can take

Prime Minister Julia Gillard is you to New Zealand where our

about to address the parliament there,

there, the debating chamber in parliament. We can have at some pictures now where

she's just entered the

parliament and to a bit of ovation. Parliament is parliament and to a bit of an

sitting at the ovation. Parliament is not

sitting at the moment and that

was a bit of a controversy about whether she would be allowed to address Parliament. She's going to speak She's going to speak now, we'll

have a listen. Prime Minister, cabinet, Leader of the Mr Speaker, and members of the

Opposition and party leader,

honourable members one and all,

it's truly a great privilege to be the first be the first Australian prime minister, indeed the first foreign head of government, to address members of address members of the

Parliament of New Zealand. I

accept your welcome to this

historic chamber as a profound tribute to the friendship

between our nations and our

people. I also acknowledge it has been some time since a full

bilateral visit by an Australian Prime Minister and

I'm glad to be here and to be

able to put that right. But

more than that, I don't more than that, I don't want familiarity to slide forgetfulness. I therefore familiarity to slide into

announce that there Key and I have agreed to

restore the pattern prime ministerial exchanges

that we have had in the that we have had in the past. I

look forward to hosting next year and I look forward to

coming back to New Zealand coming back to New

myself in 2013. members of the Parliament and it's a great honour to address

through it the people you represent. Yours

through it the people you oldest continuous represent. Yours is one of the

oldest continuous democratic

legislatures in the world, the

first to recognise the right of women to vote, a reconciliation with its first challenge of putting a price on carbon. New

Zealand may be a small nation

but one with a bold vision of

its place in the world. Australia, New Zealand is the natural partner in

natural partner in all that we believe in and all believe in and all that we hope for. As I look historic house, the plaques and wreaths commemorating battles from the Boer War lasting snapshots of the shared and

nations. Our ties were indellibly forged in and indellibly forged in hardship

the Somme, to Tobruk, Korea beyond. Our soldiers, as has

been said, come from the utter most ends of the wherever Australian most ends of the Earth and

Zealand blood has been shed remains sacred ground. remains sacred ground. Sacred because when our sent to far shores they went not for wealth or gain but to treasured way of defend common values and a

and to write, and to write, the freedom to elect leaders and stand safe under the rule of law, the

freedom to succeed freedom to succeed that drew men like Peter Fraser and men like Peter Fraser and Keith Holyoke from the most mod est

background to the highest

means. A story of courage and conviction told and retold in

homes and in schools, in the pubs and clubs, throughout length and breadth of both formality that makes

Australians and New so different from anyone but so much like each other. The Anzac legend is not

confined to records or to

books, it is a living story, a story that lives in story that lives in the courage of Willy Apiarta, Mark Donaldson and Roberts-Smith. will receive a practical

expression from next month when

our personnel join together in

the new ready response headquarters to provide a robust capability to

meet contingencies include ing region we love so much. And of course the Anzac spirit lives

on in the most strategically times, Afghanistan. Again a conflict against terrorists, who threaten our

cherished way of life and against whom we

Today I stand before this Parliament and pay tribute to the men and women of our

the price can be very high.

Just two days ago the funeral of Corporal Richard soldier to Afghanistan. I embraced his family and felt deeply their

immeasurable grief. New Zealand has not has not been spared this

anguish. Not in the #35st with

the death of Lieutenant Tim to fall in today with the terrible news today with the terrible news of

another sad loss of Zealand life, the death of Private Meilor. We we grieve for our own. Because the Anzac story speaks for both never be replaced our but they shall never be forgotten. forgotten. Mr Speaker n the

1890s there was a possibility

that New Zealand and Australia might formally have joined their destinies to each

A relic of that aspiration even

remains in our constitution to

this day. But, Mr

was never necessary. Our founders could not founders could not have imagined the imagined the extraordinary events that would bring events that would bring our nations far closer than

in meeting rooms by old in meeting rooms by old men wearing suits but by young men

in trenches wearing and lemon squeezes. That's why I say Australia has around the world, economic and kind. But New Zealand alone kind. But New Zealand alone is

family. When those 29 men family. When those 29 men never came home mine, we didn't just mourn for the loss of the 2 Australians, we mourn ed for them all. Family, we

New Zealand didn't have to ask Australia to send help, we just did and when natural did and when natural disasters

hit Australia this hit Australia this summer New Zealand didn't need to be asked

to lend a hand, you just did. And our gratitude to this in our time of hardship is

predecessor, Sir John Hall, said said that there were 1,200 reasons that reasons that separated Australia and New 1,200 miles of the Tasman Sea. The Australia/New The Australia/New Zealand memorial in Canberra tells memorial in Canberra tells a very different story. It's a sculpture unlike any of the

other memorials that enshrine my nation's capital. It is a simple, graceful curve of bronze representing the of a basket used traditionally to collect flak to collect flak seed. It embodies we each hold one handle of the basket, shared effort, shared memory, shared sacrifice. Underneath that memorial

etched a poem by the New Zealand poet Jenny Bornholt. it she describes

as a barrier but as a bridge, bridge of faith, a faith anchored but also a but also a faith directed resolutely towards the Mr Speaker, it is true that we have done Mr Speaker, it is true have done great have done great things in the past, have done great things in the past, remarkable things, not

just in war but in peace as well. We well. We took sheltered insular economies and opened them up economies and opened them up to the world through the remarkable reforms of the 1980s opened our economies to each other creating a degree other creating a degree of integration that is unparalleled bilateral trade agreement of

its kind anywhere in the world. It remains the gold standard not an easy decision as not an easy decision as Robert Muldoon grappled with the real tis of a fast-changing world but the served us well. There agreement was achieved and has served us another author served us well. There was

great New Zealand diplomat and politician Hugh Templeton. It will be my very special honour

this afternoon to invest him

with an honourary order of

Australia for his pivotal role in establishing CER. Hugh Templeton's career of modern New Zealand. He went

to London as a junior diplomat

in 1954 representing a nation

that, like Australia, relied on primary production, sheltered

behind tariff walls and called

Great Britain home. But in the '70s and '80s as they unfolded, Hugh and his fellow leaders on both sides of the Tasman and

both sides of politics knew it was time for change. Britain

had joined with economic miracle was economic miracle was unfolding,

we could not have afford to be left behind and we were not. Our leaders found Our leaders found the courage

to change and those changes

were hard. Perhaps even harder

on New Zealand than on

Australia. But those decisions

were right then and they remain

right now. CER has been an enduring foundation for new

ventures such as the

arrangement and the single economic market economic market initiative.

Thanks to these agreements our

nations are closer than before. Goods

freely, our in - insolvency and copy right laws have been

harmonised along with competition and financial

services policy. Our citizens

can work in their chosen profession in each country

thanks to mutual recognition.

Students in each country pay

only domestic fees for their education. Reforms

unprecedented in their scope

and ambition, reforms that are hard but reforms that

worked. Two-way goods trade between our

grown at 8% a year since CER.

Trans-Tasman trade is Trans-Tasman trade is worth

around $21 billion Australian

or $27 billion New Zealand a year. More Australian

businesses ex port

Zealand than to any country and New Zealand's top

export market is Australia. Now

it's time to write the next chapter as we journey towards

single economic market. During

my visit I've been pleased to discuss with Prime Minister discuss with Prime Minister Key the excellent progress being

achieved on the Smart achieved on the Smart Gate

project to create borderless travel between our two countries. A joint study countries. A joint study will

commence this month to examine how we can create a experience. In addition, Mr Speaker, Prime Minister Speaker, Prime Minister Key and I will today I will today sign the investment protocol to CER, investment protocol to CER, a significant significant milestone for our two countries. The protocol

will make investment simpler and cheaper, creating employment and opportunity on

both sides of the Tasman. For New Zealand, this agreement

provides the most liberalised

access to the Australian investment market. Australia, it makes CER our

most liberal most liberal and comprehensive

trade agreement. But as family

that is how it should be. But that is how it should

friends, the bridge of faith

extends not just to the past,

not just to today, but into the

future. Today the world changes in a decade more than it used to change

to change in a century. And we

must deepen our resolve to

of change. We need to embrace reform and

the the transformative

possibilities that we create the high possibilities that we will

tech economies of the future.

These possibilities are before us, possibilities that can be

opened up by high-speed

broadband, clean energy, smart manufacturing, creative industries, world-class skills

and training, all underpinned by constant structural reform by rigorous fiscal discipline,

unswerving commitment constant structural reform and

unswerving commitment to free

trade. In that context let me the verdict of the global be clear that Australia accepts

umpire and will implement the World Trade Organisation rulings on the importation of New Zealand apples into

Australia.

free trade just as we embrace We accept the obligations

the possibilities of free trade. Mr Speaker, for

Australia these possibilities

are keenly sharpened in the

context of the unprecedented

change unfolding in the Asia Pacific. China's rise, India's

growth and the emergence of Indonesia are changing the

strategic contours of the

region. As the global balance

of power shifts to the Asia

Pacific, it will throw up real collectively managed. Challenges associated with the inevitable strategic flux brought by the changes unfolding in the Asia Pacific

and broader challenges brought

by globalisation such as climate change, food natural disasters, people smuggling and pandemics. But it

will also create tremendous opportunities for those brave

enough to seize them. We should not fear this future, we embrace it. Together we have enduring sources of strength,

the strength we find in the strength we find in each other and the strength other and the strength we find in our people and in our people and our history

and our values. If we don't shape the future we want, we

may well face a future not of

our choosing. And Australia

New Zealand have never been our choosing. And Australia and

ones to sit on the sidelines history. We are both stable, progressive, well governed countries respected for our

pragmatism and our ideas. We

have highly mobile and educated populations. We have

competitive and resilient competitive and

economies and we have economies and we have highly

capable and effective armed forces. Harnessing partnership, forces. Harnessing

difficulties and grasp these will allow us to confront

two nations must remain opportunities. That's why our

two nations must remain active

and engaged, reforming our own across the Tasman, and across the Tasman, and reaching out together to the world beyond. Before us we have the

prospect of a partnership. Perhaps the greatest economic opportunity for our two nations since CER. I'm proud to say that New

Zealand has led the way of the Zealand has led the way as one

partnership founding partners of the trans-Pacific since 2005. I was proud to

stand with Prime Minister Key, partners in President Obama and 7 other

pledging to make the partners in November last year

partnership a reality by the pledging to make the expanded partnership

time of time of APEC this year. The partnership could be a stepping

stone to an Asia Pacific free

trade area. If we achieve trade area. If we achieve that

we will create a free trade

community as significant as the

EU or NAFTA. A zone of trade, investment and

the Pacific itself. To do this

we will need not just our own efforts but the energy of many others, foremost our great friend and ally the

United States. An active, engaged America is a

international system fundamental feature of the

underpins our international system that

Australia, like New security and prosperity.

Australia, like New Zealand,

remains deeply committed to the will work with key emerging players, not least China and

India, to ensure that it

continues to deliver the benefits both benefits both of our peoples have enjoyed for so long. Mr

Speaker, we know we can Speaker, we know we can meet the challenges of tomorrow because we've done great things

before. But in the last century

the conflicts and the issues

that defined the world were fought out in another decided here. This is the Asia Pacific century and we are at

its heart. Here under

its heart. Here under the

Southern Cross emblazen ed on

both our flags we have created two of the most successful

societies in the world two advanced multiculture societies in the contemporary

democracies tied to the old world but anchored democracies tied with affection

firmly in the new. This is our time, a time for optimism

because our best days lie ahead. That's why I've come

here on this journey of hope to

celebrate all that is best in us and to bring closer the

future that awaits our grasp, drawing together, drawing together, reforming, reaching out to the world and achieving more together than we

ever could alone. Thank you for the privilege of addressing you

today, you honour me and you honour my country. honour

APPLAUSE

The Prime Minister addressing the New Zealand

there to discuss the speech there to discuss the speech Kim Landers joins us from Kim, good morning, that's a Landers joins us from Canberra.

very interesting observation

she made there, a big declaration to finish this speech, this is the speech, this is the Asia

its heart. I thought that was a Pacific century and we are at

very interesting observation from the Prime

talked about how it was crucial remains an active and player in the region remains an active and key

thinks player in the region but she Zealand is well

playing our role in what calling the Asia Pacific playing our role in what she's

economic ties that she's century. So it's not only

speaking about, she's been economic ties that she's been

talking about defence ties as well, she began the New Zealand Parliament the New Zealand Parliament by remarking about

spirit and also raising the

point that Australia Zealand are serving together in course, we've of 22 members of our defence force, New Zealand today has learnt that another learnt that another member of his defence force has fallen and so that's been another thing that the Prime Minister is trying to Australia and New Zealand. She she did and she spoke about how the country's - the countries have been so willing to help each other through time of crisis.

moment through that speech that got a

deal of applause and deal of applause and it was a subject you discussing earlier. It is and one of came when she was talking New Zealand apples, how

Australia was going to allow New Zealand Apples to be imported into Australia and abide by abide by a World Trade

Organisation ruling. I think

line that she this 20-minute speech. And it clearly has been a very, very

and a sense of relief that they're able to import or at

least export those apples least export those apples to

us. Well look, it was the usual measured performance from Julia Gillard, to expect from her now in her public

a Prime Minister, is it? If you can't

can't go to New Zealand and

give a give a decent speech and get a good reception good reception as the Australian prime think something's think something's probably pretty wrong. She'd had pretty wrong. She'd had some meetings business leaders, talking about that

that economic relationship

between Australia and New Zealand. Zealand. The key point for Australia, of course, is

to take over, we don't want to dominate them. She comments on radio New Zealand this this morning talking about that fact that she wasn't there

try to take over, that she didn't have any

example, for a single currency yet between Australia and New Zealand but she these ties between Australia and New Zealand moving and New Zealand moving towards borderless travel, between borderless travel, between the

two countries, things like that. that. It's obvious,, as I said,

she talks about New Zealand as

being family and that

it remains strong. Alright, well she's got a bit more on her plate today though apart

from addressing the parliament. What else is What else is she planning to do? There was a welcome. She lay aswreath welcome. She lay aswreath at the national war memorial. She has some bilated ral talks has some bilated ral talks with the New John Key and then she John Key and then she will wrap up her a

then when she does head back to afternoon, I understand. back to Canberra and some of those issues that she those issues that she might talk about to the New Zealand Prime Minister for Prime Minister for example. As we've been speaking morning, some of those ties, she talked about the point during her trip to New Zealand that part of the Anzac spirit is sharing and Australia Australia and New Zealand is

going to have to share some of our defence assets. Of Australia in the position of these ships, not being available New Zealand offering the use of

one of theirs if

about having that sort about having that sort of defence cooperation

Brisbane to help with issues

like humanitarian aid missions and well today? That's right. The parliamentary get under way very shortly hearing evidence officials and a whole range of people about that $1.8

next week to allow debate on that legislation to possibly Tuesday next week. Kim Landers, thanks joining us. Pleasure. And the other news today is also the Federal Government full details, full details, the full costings of just how of just how expensive it was to ship who were victims of the asylum seeker boat crash late last That's it from us. And That's it from us. And thanks

for your company, we'll see for your company, we'll see you on ABC News Breakfast tomorrow morning at morning at 6:00am. Closed Captions by CSI

This Program is Captioned Good morning, welcome Good morning, welcome to Business Today Network, I'm Sue Lannin. Coming

up on the program - record

result, BHP Billiton delivers a

half year profit of over half year profit of over $10 billion. Price billion. Price pressure,

China's stubborn inflation rate likely to prompt more likely to prompt more rate

hikes. And stock exchange operators step up merger negotiations. Those stories

coming up, first let's take coming up, first let's take a

quick look at the markets.