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ABC News Breakfast -

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Telstra shares dive as the

Federal Government forces a

restructure of the tele

communications giant. Australia

called to help poorer nations

deal with the impact of the

climate change. America's top

banker says it's likely the US

recession is over. And

Australia chasing a big total

for victory against England at

Trent Bridge. Good morning,

it's Wednesday 96 saup. The top

story on News Breakfast - Telstra shareholders have been hit hard by the Federal

Government's plans to force a

split of the tele

communications giant. The

decision stiped near $2 billion

from the chaep's shares

yesterday. The Government stays

move to separate Telstra's

retail and wholesale businesses

will lead to depraert competition. But the Opposition

has accused the Government of

holding a gun to the company's head. Federal Communications

Minister Stephen Conroy says

Telstra's in need of an

overhaul as the Government

prepares to roll out its $43

National Broadband

Network. There are few juries

dicks if any that have allowed

a company to become so

intergrated across so many

platform and what we've said is

that Australian consumers have

been getting slower broadband

and more expensive broadband

than almost anywhere else in

the world. So the competition

policy rule shas have been set

in place beginning back under

the Hawke-Keating Government

and moving through the Howard

Government have failed to

deliver for Australian

consumers. Communications

Minister Stephen Conroy there

on Lateline last night. Melissa

Clarke joins us now from

Canberra. As if there weren't

enough battlelines between the

Opposition and the Government,

Telstra appears to be a new

one? Itself it's going to be a

big battle but I think the

between the Government and biggest battle at all will be

Telstra. There'll be some very nasty negotiations going on

between now and the end of the

year because Telstra's going to

have to decide which path it

wants to go down. One choice is

functional separation where

they can still retain the

ownership outright of the cop

ever networks, the cable

networks, and part ownership of

fom tell but if that's the case

the Government has made it

clear lit refuse to give

Telstra anymore of the spectrum

space for broadband wireless

broadband and mobile services

so that's one option, the other

option is what the Government

really wants - a proper structural separation and that

would see the wholesale arm of

Telstra, those networks,

devolved from the retail arm

which would a-Lowe's assets to

be bought by the new National

Broadband Network and give the

Government and that new

National Broadband Network structure the infrastructure

that Telstra has had a

stranglehold over for the last

decade since its inception, so

it's a choice and it's a battle

but it's certainly being pushed

down one direction and that's

definitely the structural separation. What's been the

response so far from the

Opposition and also from the

other part of the Coalition and

that's the Nationals? The

Opposition has been saying that

there are big problems here in

terms of the effect that this

will have on people who own

Telstra shares. The Howard

Government went it decided to

privatise Telstra had the

option then of trying to split

up the telco and do that sort

of separation at the time but

of course you then lose a huge

value of the asset because of

course that monopoly of those

networks is a huge part of

Telstra's value. It so wouldn't

have got as much money in the

privatisation and not

necessarily have made the privatesation a viable opg or

as much of an option if they'd

done e. They didn't do it at

that time so the Opposition has

some concerns that if we do it

now when people have bought

shares on the basis that

Telstra has this monopoly and

has this great asset that it's

sort of trick them almost out

of ha they thought they were

investing in and the rules are being changed on them afterwards and the Nationals

have their own concerns

abwhatever the changes might

mean for regional and remote Australians who often get left

in the dark about tele

communications issues. As I

mentioned before, that's bound

to be another battleground as

if there respect enough

already. In fact the speaker of

the house yesterday had his own

comment toik many on that

because as predicted it appears

Question Time has desended into

even more of a rabble than it's

been in the past snmplts

yesterday on the program we saw

Tony Abbott say there are going

to be consequences for the

Government because they're so

frustrated with how Question

Time is opinion reacted a which

certainly saw the Opposition

try and to muscle in yesterday

and we've got some here of just

what unfollowed in Question Time yesterday afternoon. The

member for Warringah is being

very, very foolish if he thinks

that he's doing anything, a, to

change the way that this House

handles Question Time, or b,

that he's doing anything to

assist in the way that the

House as a totality is seen by

outside of this place. I looked

at the picture, Mr Speaker and

it's got in the women in the

Liberal Party section, one,

two, three... Actually, no

Julie you're in it. It's OK. I

know which photograph it

is. May just be plain stupidity

that make these Fels aer

ises. Not one of the greatest

moments for the House this

Question Time yesterday Question Time. And watching

afternoon as I do each day,

that brief sample doesn't even

do it in terms of how bad it

got. The taunting it's going on

by the Government of the

Opposition is interesting isn't

it because the Opposition seem

to be consistently biting? We

see Wayne Swan yesterday yet

again calling the Opposition

Treasury spokesman Joe Hockey

Sloply Joe. This is thing that

that Wayne Swan and even Kevin

Rudd have indulged in in

Question Time which they can't

do. But it just goes to show

how much Question Time is being

treated as a great political

opportunity to just have a dig

at each other and just to get

up Dr Eachor's nerves because

we're seeing that from the

Government having a go at Top.

We saw a little bit there of

the housing Minister and

Minister for the studies of

women, Tanya Plibersek, have a

bit of a shake at the Liberals

for their treatment of women

saying they don't get enough

chance to ask questions in

Question Time and unfortunately

the Opposition responded by

using that moment to try and

call for her to no longer be

heard which really disrupts

Question Time but it backfired

on them because it meant the

Government could say that they

didn't let women ask or answer

questions. It really has turned

into quite an ugly

battleground. Thank you. In

other news this morning, a new

World Bank report says

developed countries must

financially support poorer

nations bearing the empact of

climate change. The bank calls for rich high carbon-emitting

countries like Australia to

fund research into clean energy

technology. It also calls for

an 80% cut in emissions by 20

50, Penny Wong his to the US

today to meet other politicians

to discuss options for a post

Kyoto agreement. The US Federal Reserve chairman Ben Bernanke

says the US recession is very

likely over. He warps that the

recovery will be slow and says

lit take time to create new

jobs. Mr Ben Bernanke says he's

- he sees encouraging signs of

tit in the US banking system as

banks wind down their

dependence on Federal emergency

support.. A UN investigation

into this year's Gaza conflict

has found thaefd both the

Israeli army and Palestinian

militants committed war crimes.

The probe found that Israel violated international humanitarian law during its

assault on the Gaza Strip, the

report also contend Palestinian

rocket attacks that spark the

Israeli offensive. Israel

labelled the investigation

one-sided. There's been a tack

in Baghdad's green zone zurg

during a surprise visit by the

US vice-president Joe Biden.

There are no report of

cashities ch it's Mr Biden's

third visit to Iraq this year.

He's expected to hold talk with

Iraqi political leaders and

meet American troops. And at

least 38 people have been

killed in flash floods in

Indonesia. Dozens of other

people are missing after

floodwaters swept through six

villages in the Madina District

of North Sumatra Province. The

water washed away trees and

swept through houses. An Iraqi

television reporter who threw a

pair of shoes at President

George Bush during a press conference has claimed that he

was tortured while in prison.

Muntadhar al-Zeidi has been released from jail after

serving nine months for the

offence. The BBC's Andrew North

reports. Freedom for the shoe

thrower. The moment his friend

and family got the news. And at

the Baghdad TV station where

Muntadhar al-Zeidi worked, he

was welcomed as a hero. By

hurling one, then two shoe s at

President Bush last year. This

little known journalist became

an instant celebrity around the

world. And created a new form

of protest. President Bush on

his fare well visit to Iraq

seemed to see the funny side.

Iraqi security guards dragged

Muntadhar al-Zeidi away and the

30-year-old journalist screams

could be heard outside as he

was beaten up. Speaking after

his release, he said the

mistreatment continued to the

next day.

TRANSLATION: I was subjected to

the most hideous kinds of torture including electric

shock. The next morning I was

taken out handcuffed in the

cold after being soaked in cold

water. People were watching

across the Arab world where

he's been Idolised for his

defiept message to the former

US President. Offers of

marriage, houses and car have

poured in but from are sceptics too.

TRANSLATION: I thought it was

completely wrong, because this

was a President and even if

he's done something wrong, we

cannot respond in this

way. This poster outside the

Baghdad TV station where

Muntadhar al-Zeidi worked talks

of him being a lion who

protected the country and its

woidos and orphans. Not

everyone in Iraq though sees

him as such a hero but Iraqi

Government now has to answer

questions over how it treated

him while he was in

custody. And surely American

can not be comfortable with the

fact that he was suffered

electric shocks and was beaten

with metal cables after that

happened.. It's an assertion

that's got to be tested. At

this statement it remain just

that. A convicted paedophile

who was run out of Queensland

is under pressure to leave his

home in NSW. 6 #-year-old

Dennis Ferguson has now been

caught selling children's toy

for a carty. Sydney residents

living near Ferguson are angry

and they're vowing to force him

out of their street. Prisoner

activist Brett cold yps arrived

at Dennis Ferguson apartment

with some new plants for his

garden but local residents

winds impressed by the gesture

and let fly. I can tell you

that this push to get rid of

him is just going to grow and

grow. I don't care what age he

S a 5-year-old child can't

defend himself. You don't even

live here. Why don't you put

yourself forward and say, "Hey

buddy come and live at my

place. " Dennis Ferguson moved

into the Sydney apartment two

weeks ago. The 62-year-old

served 14 years in a Queensland

jail for kidnapping and

molesting three children in the

169 80s. Last year, he was

driven out of several

Queensland towns by angry

mobs. Denis must go. Denis must

go We will runham out of here.

He's not going to be here The

State Government promised to

move Dennis Ferguson but the

housing Minister admitted the

Government had no legal grounds

to relocate him. Esaid we'd do

everything we possibly could do and we are doing everything

that we can do The Opposition

says the convicted paedophile

should not be been allowed to

move into NSW. And to have this

heinous criminal in my

electorate close to my schools

within walking distance of my

schools, I just find personally

reprehensible. But the prisoner

advocate Brett coldens says

he's continue to support Dennis Ferguson, regardless of

pressure from politicians. We

land at the feet of the

politicians for having been gut

lest in their prims and

supporting the right

entitlement to privacy and also

the police themselves should

not have confirmed that he was

actually in the area. Because

he's entitled to privacy as is

the remainder of the commune here. Zennis! Forensic

psychology os says pushing sex

offenders out of their homes is

not a solution. The more you

marginalise and the more that

you make it difficult for

offenders to reagain a normal

lifestyle and to be able to

engage properly with

institutions in society, the

more deflty will be for them

and the more likely they

reoffend. The State Government

says it's seeking legal advice

about the situation but for

now, Dennis Ferguson can

stay. There's no easy sim

listic options but obviously

further and further away from

family social security

better. Some local residents

are vowing to keep up their

campaign but say they're not a

vidge last nighty group and

won't resort to violence.

Pnchts We'll take a look at the

front pages of the major newspapers around the kufnl

many paper today featured a

tribute to Patrick Swayze who

died of pancreatic cancer

yesterday. The 'Australian' says the Rudd Government has

given Telstra an ultimatum to

split or be forced to sell key

assets and be locked out of new

broadband opportunities. The

Adelaide 'Advertiser' reports

that millions of phone and

interpret users can expect kra

mattic falls in prices under the plan to carve up

Telstra? The 'Age' says the

restructure is a move by the Rudd Government to break the

company's stranglehold on telecommunications. The market

ripped almost (200) 000-0000

out of Telstra after the Government revealed it would

force the telco to split in two

says the. The 'West Australian'

reports the PM said the Telstra

breakup would deliver consumers

greater choice. The 'Financial

Review' says Communications

Minister Stephen Conroy has

vowed to ban Telstra from

buying the wireless spectrum it

needs if it doesn't politic.

The 'Daily Telegraph' says

paedophile Dennis Ferguson at

one point was apparently

selling children's toys for a

charity in Sydney..

The 'Herald Sun' has a story on former footballer Wayne Carey

being quizzed by Federal police

about a major chemical importation. Queensland Premier

Anna Bligh is planning a

taxpayer-funded public

relations blitz says the 'Courier-Mail'. Travel plans

are in chaos with every flight

to Hobart from Melbourne fully

booked in week reports the

'Mercury'. And finally, the

Northern Territory news

features photographs of a

parking inspector's illegally

parked scooter which is near a

car booked for an infringement.

That comes after their other

car story from yesterday. If

you'd like to send us your

feedback on any of the stories we're covering today - The top stories on ABC News

Breakfast - the Federal

Government has defended its

pledge to have Telstra broken

up p the Government says the move to seperate Telstra's retail and wholesale businesses

will lead to greater competition. Shareholders have

been angered by the decision which wiped almost $2 billion

from the company's shares

yesterday. A world bank report

has called for rich nations

like Australia to help poorer

countries deal with the impact

of climate change. The Climate

Change Minister Penny Wong is

on her way to the US to meet

other world leaders to discuss

options for a climate deal. The US Federal Reserve chairman Ben

Bernanke has signaled that the

US economy is on the road to

recovery. He says the US

recession is very likely over,

but he's warned recovery will

be slow and lit take time to

create new jobs. Protectionism

is emerging as a real threat to

the global recovery, the United

States has just fired the

opening sal vo in a potential

trade wore and impose ed

tariffs on Chinese tyres.

China's already retaliated and

local trade experts are now

asking what empact this will

have on Australia. The growing

US trade deficit with China has

been a sore point in Washington

for a long time. And with

pletions under pressure from

voters who believe their jobs

are being lost to cheap

imports, the Obama

Administration has whacked a

35% tariff on Chinese-made

tyres. It is a particular safe

guard that is accepting by

China that once China is member

of WT O, the US has authority

to invoke this particular safe

guard to protect its own

producers. It might be legal

but it's proug an angry

response from the Chinese Government. Which is now

hinting at interestives on US

cars and chickens.

TRANSLATION: The policy the US

has adopted lacks concrete

evidence and it will influence

on the development of healthy

relations between China and the

US. In a statement on its

website, the the ministry of

commerce went further, saying

the Barack Obama Administration

has engaged in flagrant

protectionism -

When there's protectionism

countries tend to basically

hammer each other's mark and

you get low leaves of economic

growth. You often get high

employment so economic history

shows that having free trade

means less poverty in poorer countries and less unemployment

in richer countries. Thanks to

the global recession world

trade is down 10% this year.

But Tim Harcourt believes if

the latest China-US skirmish

does escalate Australia will

fair better than most. China's

stimulus investment, China's

investment and consumption in

its local economy means that

there's going to be big demand

for Australian exports for a

long time. I think China will

be a really important

juggernaut for us but naturally

we don't want conflict in the

world trading system because it

affects as a major

international export sphwler

leader of the group of 20

nations immediate in the next

week with free tried tried

high. Between them the G20

nations have imposed more than

100 protectionist measures

since the last summit inned

London in April and Fariborz

Moshirian think 50 problem's

tariff on tyre social security

pointless. There is no

particular - that this will create new Jonathan Browns in

the US simply because the US

tyre manufacturers are now

planning to shift the

production from the US to low

cost producing countries. Which

means the US could soon be

importing cheap tyres from

other countries such as Brazil

and Indonesia. Returning no uto

our story on Ben Bernanke, the

Federal Reserve chairperson is

as the worst depression is

probably over. Ben Bernanke z

has warned that the recoverly

will be slow and and lit will

take - it will take time. From

a technical percentage, the

recession is very likely over

at this point. It's still going

to feel like a very weak

economy for some time as many

people will still find that

their job security and their

employment status is not what

they wish it was. I see some

greet among the forecasting

community at this point that we

are in a recovery, that we will

see growth in the third quarter

continuing, and that growth

will continue into 2010. But

the general view of most

forecasters is that pace of

growth in 2010 will be

moderate, less than you might

expect given the depth of the recession. Very optimistic view

there. We'll have a look at the

markets now -

In a few minutes vam will be

here with a look at the

national weather. And also

we'll have a a review of some

of the newspapers. This morning it's the Associate Editor of the 'Australian', Cameron Stewart Here is Paul Kennedy

with sport. Thank you. They're

playing the fifth one-day

international between Australia

and England at Trent Bridge

this morning. Australia is

chasing 300 for victory. And is

currently four for 209. Michael

Clarke just went out making a

half-century and Ricky Ponting

has just bought up his century,

here are some highlights.

COMMENTATOR: Just wide. Brings

up another boundary. Close,

very close and gone. That will

be four because the fine leg is

up inside the circle. Catch is

the cry and catch it is the

result. That's aerial and is

going to be caught rather

easily. Edged and gone. He's

swinging like a mad axeman.

That was not far away. That's

the rub of the green, isn't it?

Which for once seems to be

goinging's way. Slower ball hid

to mid wicket gone. He gets

this away quickly Ponting,

where's the bat,or, well short.

Did well. Got it in the gap.

And that's going to be four

more. He's got this fine.

That's going to be four more.

Talking about power hitters...

Out. Yes, out. Looks in very

good touch. It must be said.

Should be out. Up in the lights

and he makes no mistake. Well

it was a very hard chance, it

was firmly struck. And even

with the richochet, almost

raced away to the boundary. So

just recapping Ricky Ponting

has just made a century and

we'll show you some highlights

of that. Australia needs about

a run a ball over the last 15

overs with search wickets in

happened so looking good for

our fifth straight victory

there. I love the commentary

there saying that he was

swinging like an axe man. The

tennis - let's talk about that

and Juan Martin del Potro beat

Roger Federer. This time Tim

yesterday Federer looked like

the winner all the way. I think

I was predicting as such He got

to a a stage where he was two

points from the match in the

fourth set and del Potro

surprised everyone by just

showing so much grit. It wasn't

all great news to come out of

the game though. I think it

puts the Serena Williams

tantrum earlier in the week a

little bit in context. Roger

Federer was upset that del

Potro was carrying on a bit and

there he is smashing his

racquet by nobody sort of

battered an eye lid at. That there was another incident

where Federer serves an Ace and

del Potro claims that he wasn't

ready and he said that somebody

dropped a cup somewhere and

they actually replayed the point after-Federer seemed

angry for the rest of the

match. Because the referee at

that statement was saying you

were ready, let's get going,

del Potro kept arguing the

point and they eventually

replayed it. Decide for

yourself whether he looks ready

or not. There goes the ball.

No, he's saying he's not ready. There was not incident

as well that I saw where there

was a serve Federer and he

heard a fault call and it was

someone many in the crowd

yelling it out. You just want

to get the crowd there and

throttle them. But then the

umpire was indecisive on what

he was going to do with that

and the commentators were

saying that it was crazy. There

was obviously a fair bit of frustration with the umpiring

as well. The thing is that the

players almost run show and

that the referees are there to

do their job but when it gets

into an slanging match, the

player seems to come out on top

except for Venus Williams who

issued several

threats. Serena Swalz.

Sorry. Not to take anything

away. That sort of ex-planes

why fedded if was upset but

Federer as he has alz been

showed good sportsmanship and

said the better man one and del

Potro seem to be a player on

the rise. A 20-year-old and

he'll take some beating in

other tournaments if he plays

like that. Through the morning

be nice to hear from you a bit

more about his background but I

don't think I agree with you

about Federer being terribly

dwrashs in defeat. Immediately

after the match when he was

sitting there with that 1,000

mile stare on his face and the

first comments he mad as loser,

the sentence went sting like,

"he's had a great town t, I've

had a really fantastic

tournament too, but yeah the

better map won." There wasn't

even a breath in in between

those two part of the sentence. And he did go down

in the last set, too. Australia

needs 74 off 66 to win and

we'll keep you updated. Thank

you Paul. News Breakfast can be

watched live on the web from

anywhere. Or really from a computer.

Here with Vanessa O'Hanlon

with the weather. Good morning.

It's been pretty cool for

spring in pert, most days have

been 3 degrees below average.

Due to a series of cold fronts,

the current front is moving

further east with a low and

trough we take a look at the

satellite we also have some cloud rests over Western Australia's south-east coast

and South Australia. Patchy

cloud also over north-east NSW,

that's in a weakening trough

and it's cause just is odd

shower. The front from Western

Australia is moving east

bringing 5 to 10mm of rape to

all areas of South Australia exceptor if the north-east

pocket. The same pocket will

cost NSW, Victoria and Tasmania

tomorrow ahead of the front

above average day time

temperatures showers and

thunderstorms. A high over the

east will keep most of the

inland areas dry and send warm

to hot easterly winds over the

Top ep, the next front is

expected to approach Western Australia tomorrow night.

You're watching News Breakfast. The Climate Change

Minister Penny Wong is on her

way to the United States this

morning to meet world leaders

to discuss the need to reduce

carbon emissions. Her visit coincides with the release of a

new report from the World Bank

and that calls for rich high

carbon-emitting countries like

Australia to fund research into

lean energy income. It also

call for an 80% cut in

emissions by 20 50 but Penny

Wong says there's still much

work to be done if the

international community is to

sign on to a post Kyoto

agreement at Copenhagen in

December. We've lost the

opportunity to stop any climate

change, we do have a window of

opportunity now to lessen its

risk, to lessen its severity

and we mustment walk away from

that. One thing that Australia

needs to do much more work on

is what the nature of the

agreement, who is the legal

nature of the agreement, that

we could look at in Copenhagen

so there's a lot of technical

work, fundamentally, if there

were political will this

agreement we could do this

agreement, what we need is the

political will. We need it not

just in Australia but in all

countries. We're very pleased

that we've seen the US

Administration take such steps

so quickly in President Obama's

presidency and we need to see

more developed countries as

well as major developing

economies take similar step,

many are moving and we need to

encourage the political will to

move further so we can get the

agreement, all of us need. That

was piping speaking on AM this

morning. For more on the need

for a global action plan to cut

carbon emig, Rosina Bierbaum is

the lead author of today's

world bank report and she joins

us now from Washington. Good

morning are good morning. Good morning. First of all and

briefly there are still people

in Australia who don't believe

in human induced climate

change. Does the World Bank

believe that the science is

irrefutable? Yes, we do. And we

have taken the strong position

that unless the world seeks to

control emissions such that

temperatures do not climb above

2 degrees cent grade that there

will be very difficult

responses and 80% of the

impacts will be borne by the developing countries, further

hampering development You make

that 80% call on developing

countries bearing the cost, how

did you come to that

figure? Well we looked at a

number of studies and we did do

some of our on analysees, the

cups that depend most on their

natural resources have the most

to lose as climate change

proceeds and so many of the

developing countries depend on

agriculture and we expect that

by the year 20 50 some 55% of

agricultural productivity in

many of the poorest countries

will crop will and that drives

a lot of expense, the 80%

expense from climate change. So

you say developed countries

should be subsidising

developing countries to a large

degree. What form should that

aid take, financial and

technological? It should, yes

take public, private,

financial, technological and

there many rp, the totally cost

of controlling temperature

increases are greatly reduced

if you include both emission

reductions in developing and

developed countries yet

development must proceed there

is still 1.6 billion people on

the planet with no access to

electricity and 3 billion with

not enough access to

sanitation, so the costs for

everybody will be reduced if we

reduce emissions wherever and

whenever they're most cost

effective. In develop

developing countries where a

lot of infrastructure is yet to

be built and there are a lot of

possibilities of preserving the

tropical rain forest which

store carbon we can reduce

emissions very rapidly if we

provide technological and

financial assistance. But we

must also do it in the hike

income countries as well How do

you work out what is a really

in terms of the amount of

aid? We have calculated very

crudely again, looking at the

other estimates out there, of

what that need might be. In

terms of mitigation, the cost

could be several hundred

billion dollars a year,

starting in the year 2030, in

terms of adaptation costs,

responding to the increasing

climate shocks, that should be

in the order of $70 billion a

year. And in terms of the developing the next generation

of technologies to greatly

reduce greenhouse gas

emissions, the world is barely

spending $15 billion a year on

energy research and

development, and even with the

private sector, it ads up to

about $70 billion a year, all

of that about a half a percent

of revenue, must less than you

would see in something like the

pharmaceutical industry or the

electronics industry in term of

investment in research and

development so that is also woefully underfunded You do

believe that developed cups do

have the financial where with

all to provide this sort of aid

to developing country, $700

billion a year? It is a

tremendous amount but if you

look at it as a percent of GDP

it would be coming in at sliepg

like 0.h to 0.7 spers of GDP,

less than 1% and the world does

spent 3% on insurance so we are

quite comfortable in spending

money to scrauf set risk and

the risks from climate change

especially as temperatures go

above 2 degrees and they're

headed to 5 if the world does

not act, soon, suggest that

less than a percentage point of

GDP might in fact be warranted Some scientists

believe this whole dash carbon

capture and storage concept is

a bit of a farce. Do you

believe Australia can stake a

claim to genuine action on

climate change by investing in

billions in that

research? Well, we've already

seen that the international

green stimulus packages have

put quite a bit of money into

carbon capture sequestration

and yes as you look across the

variety of energy models, those

that can get to a world of 2

degrees centigrade need carbon

capture and sequestration as

one of for or five key almosts

and you can can note succeed.

We need to invest. The world's

only store is about 4 million

tonnes of carbon dioxide right

now and that would need to rise

over this coming decade to

something more in the order of

a billion tonnes W ge best get

on with the demonstrationor

pilot plants Rosina Bierbaum,

how will this report figure in

the Copenhagen talks? The

intent of the report is to

bring strongly to the fore how

development is going to be

limited as climate change

proceeds and to talk about the

inequity in the atmospheric

commons, if you l the $6 5% of the emissions that sit up in

the atmosphere, from the

richest countries versus the 35

from the developing countries

let alone the 2% from the 40 million poorest countries so

we're hoping to highlight the

inek te that currently exists

but the incredible possibilities to reduce e-National Health and Hospital

Reform Commission s if we act

now f we act together and if we act differently than we have

historically because the window

to tackle climate change is

closing quickly quickly. What's

the danger if the developed

countries don't come up with this multibillion dollar aid

for developing countries? Well,

if you look at how fast we

would need to develop and

deploy the technologies we now

that are low greenhouse gas

emitting and then develop and

deploy the ones that are still

under development such as carbon capture and

sequestration, the pace at

which those have to be rolling

off the assembly line if you

will suggest that we will

preclude the capability of

stopping a 2 degrees if the

entire world is not acting in

the next decade so it's very

clear that the countries that

created the problem and have

the financial and technological

capabilities have to take the

lead and if they do not take the lead then the problem can't

be solved. Do you believe

Australia is taking the lead at

the moment? I think there have

been a number of very promising

developments in Australia in

recent years. So I'm looking

forward to seeing both what

you're doing on the

technological side but as your

country and my country knows,

it requires political will as

well as economic and

technological capability. Rosina Bierbaum in Washington, thank you for

talking to us this

morning. Thank you very much. Our stop story is that

yesterday the Government issued

Telstra an ultimatum - either

split itself into wholesale and

retail divisions or force

losing access to a new wireless

spectrum. But separation of any

kind risks destroying value for

share holders. Many of whom

bought the stock from the

Government that at the time

turned a blind eye to Telstra's

monopoly profits. In 1997 the

$14 billion Telstra share offer

known as T 1 was sold as a great opportunity for

Australian investors. And it

was at least initially. With

shares surging 40% on listing

day. At one point 9 MP an

capitals who sought shares that

they have invested in a sol ed

company and I wish themally

where well But long-term

shareholders are also long

sufferering. In 1999 Telstra

shares were trading above $9,

the stock is now trading at

just one third of that

level. It is a very, very

concricket - constricking

announcement and policy, which

restrains Telstra from pursuing

its growth activities and at

the same time opening the door

for all of its competitors to

come straight into that

space. But the Government's

move has been welcomed by

consumer groups and some

analysts say the sector may now

finally see real

competition. What it's basically cog is halfway. On

one side it sets the parameters

so we all know what the outer parameters are but Telstra has

a choice. Does it want to be a

media company, does it want to

be a telco. Does it want to go

into mobile or have a bit of

everything. There are options,

you can't have them all. You

can't be dominating everything Telstra will have

toik Ma a decision about

separating its fixed line

assets from its retail business

or be restricted from expanding

its mobile network. Last month

Telstra chief David Thodey said functional separation could

cost between $500 million and

$is.2 billion. Analyst Mrs Rose

says separation will also mean

an end to the monopoly profits

it currently enjoys. On some

fixed line product Telstra has

profit margin in in excess of

50%, it's my view that it's

going to be hard for Telstra to

maintain that level of margin

in the future. How much will

they lose, it's virtually

impossible to say The move by

the Government is designed to

force Telstra to come to the

table on fast broadband which

according to the. In BN

chairman will be up and running

within eight years. I believe

there's an opportunity to come

to a win-win outcome for the

notion the industry. But major

shareholder the Government's

future fund, wasn't prepared to

hold out for any potential

upside. Last month it off

loaded a third of its holding

in Telstra for $2.3 billion. I

think the future fund is

managed at arm's length. I

don't think they had a

particular sort of inside as to

what was going to happen. As I

said, the regulatory

announcement was well flagged

and well expected by the market. I think the future fund

like any fund manager has taken

a view as to where they saw the

value of their

holdings. Another to time his

play in the secialt to

perfection, is Kerry Stokes,

last month he built a 20% stake

in James Packer's consolidated

media which owns a quarter of

Foxtel. A stake that could rise

if Telstra is forced to sell

out of pay TV. In other news

this morning, the US Federal

Reserve chairman Ben Bernanke

says the US recession is very

likely over. He warns recovery

will be slow and says lit take

time to create new jobs. Mr Ben

Bernanke says he sees

encouraging signs of activity

in the US banking system as

banks wiped down their dependence on Federal mrnl

support and he forecasts

moderate growth next year. A UN investigation into this year's

Gaza conflict found evidence

both the Israeli army and

Palestinian militants committed

war crimes. The report found

Israel violated international

humanitarian law during its assault on the Gaza Strip. The

UN also condemned Palestinian

rocket attacks that parked the

Israeli offensive. Israel labelled the investigation

one-sided. The Iraqi journalist

who threw his shoes at former

US President George Bush says

he was tortured in jail.

Muntadhar al-Zeidi was released

yesterday afternine months in

prison. He says Iraqi security forces tortured him with

beatings and electric shocks.

Iraqi officials told the BBC

his claims should be

investigated. There's been an

attack in Baghdad's green zone

during a surprise visit by US

vice-president Joe Biden.

Several rockets landed near the

US Paul Bassat. It's Mr Bide

yep's thirst visit to - and at

least 38 people have been

killed in flash floods in Indonesia. Dozens of other

people are missing after

floodwaters swaept through six

of North Sumatra Province. The villages in the Madina District

water what washed a way tray

treeses and swept through

houses. The British PM Gordon

Brown concedes he will have to

cut spending in order to tackle

his country's soaring debt. But

he's promised voters that vital

frontline service also no be

affected. Europe correspondent

Philip Williams reports. For

labour it's been a four letter

world but finally at a trun

conference Gordon Brown was

using it repeatedly. Labour

will cut costs, cut

inefficiencies, cut unnecessary

programs and cut lower priert

budgets and then our plans are

published in the coming months

people will see that labour

will not support cuts in the

vital frontline services upon

which people depend. Talk of

cuts to Government spending

hasn't till now been

Conservative Party territory,

now all the major parties are

talking spending down though

not all here appreciated the PM

joining the cuts club. But

Gordon Brown says unlike the

conservative, his won't choke

the anemic economic recovery.

The choice is between labour

who will not put the recovery

at risk, who will protect and

improve our public services on

the front-line first, as

against a conservative party

who would reduce public

services now and immediately at

the very time they are needed

most. The recovery built on

debt is just like an economic

boom built on debt. It is

living on borrowed time. The

only party so far to announce

exactly where it will cut is

the Liberal Democrats. I don't

think there can be special wing

fenced areas which won't be

looked at ul all the public

sector has to justify its exist

tones the taxpayer and there'll

will have to be economies

everywhere With bren it'sing a

$300 plus deficit this year

alone, the question when to cut

and by how much is a hot

topic.. If there was an

immediate large cut today, then

that would obviously impose a

sort of downward impetus to

spending in the short run, but

now we're starting to see signs

of growth coming back into the

economy, it's reasonable to ask

what is the right pace at which

some of the very large fiscal

deficit should be reduced In a

timely reminder of just how

fragile the British recovery is

BAE systems announced a further

1,100 jobs would got. No doubt,

the next election will be all

about the economy. You are

watching News Breakfast and now

we'll take a look at national

papers, we're joined by the Associate Editor of the

'Australian', Cameron Stewart.

Cameron, good morning. You

can't avoid Telstra. I know

you'd like to but you can't? It's extraordinary and the Government must be very,

very happy with the could

havage this morning, because

it's overwhelmingly positive in

every paper. It's been

described as a stunning piece

of national policy, Stephen

Conroy has been described in

the 'Financial Review' in the

Napoleonic terms as a general.

It's quite extraordinary. The

positive nature of the coverage

and I think the politics of

this will be particularly

interesting as they play out,

quite apart from the very

technical aspects of breaking

up Telstra, will they and won't

they? I think the question

today will be real interesting

to see wh what the general

reaction is from the punters

out there because in the

short-term the share price has

fallen but, they'll be anoid,

in the long-term, a lot of

analysts are saying ultimately

you'll get cheaper products so

it will be fascinating to see

how it unfolds The sentiment

seems to be generally that this

is long overdue and as you say

you've got this divide between

shareholders who - this has

been coming for some time. We

have heard that this was a

possible so shareholders to a

certain extent may be should

have or could have been aware

that this was on the cards. But

then you've got this other

group of people, probably a

larger group, who will be very

happy that they're going to be

getting these cheaper

products? With Telstra, it's

like a running joke, because

people so often are critical of

Telstra. You don't go out there

in voterland and hear nice

things ab-Telstra. They get

annoyed about the monopoly

service, so you can't help

think a lot of people will be

quietly thinking to themselves,

this is great, this is a great

thing to have happen and we'll

be backing the Government all

the way except of course some

of the Telstra shareholders

which is a lot of people

because most mums and dads have

Telstra shares or a loaf them

anyway but it might well be

that the falling in shares is a

short-term things, if there's

improvements in competitive

situation down the track it

could improve As you read it,

overwhelmingly positive for the

news announcement, does it mask

continued doubts though about

the reality of whether the Government's broadband network

really will be successfully

rolled out? I think ut does but

I think the Government needs

Telstra. The way it was playing

out was they were both sulking

and the sort of anger and

frustration between Telstra and

the Government when Sol was

running the Government caused

eenergious damage. It's been

but the a gun to Telstra's head

and it would be destroys if

Telstra doesn't accept the new

legislation but I think the

longer term aspect will be

positive and that's certainly

what the papers are reflect

today The Telstra response was

reasonably muted saying it was

disappointing but it certainly

wasn't attacking the Government

dramatically. They have to work

with the Government to sit

there and make the

choice. Let's turn to your own

paper, the Australian, a very

interesting story on the front

page? One of the key al-Qa'ida

strategists, who is in

detention in Iran has written

an edikts suggesting that the

Taliban start changing the

course of their behaviour in

Afghanistan and take foreign

civilians as hostages in

including Australians. This is

interesting because we have not seen this happen in

Afghanistan, we saw this happen

in Iraq to an extent, remember,

but we haven't seen it much in

Afghanistan, they're urging

Australians, other foreigners

be taken hostage and be used as

Paraguayaining chips to try to

get Taliban prisoners. This guy

is in jail. How in this

situation where you've got

Afghanistan in the situation

it's in, do you have terrorist

leaders in jail sending out

messages to their people? It's

extraordinary b sthint this guy

has access to Internet. He has

access to lots of documents and

can disseminate them. We see

that to an extent in prisons in

Bali when the Bali bombers were

in prison. We got a lot of

coverage. It's a concern I

think because it they can get

their toxic ideology out there

and this of course can be very

effective in theory because if

hostages are taken, we saw it

happen in Somalia many years

ago when this happened, it can

be quite effective in changing

the attitudes There's some unUN

Australian link as well? This

man was married to Hutchinson

the Sydney lady under spetion

for terrorist activities, there was an interesting Australian

connection. She was married to

him in 2001.

And we've had a few more boats

caught in the northern water of

Australia in the last couple of

weeks. Yes we have. We've had a

lot more coming in but

yesterday the politics of this

are interesting. The Australian

Government is boasting about

the fact that Indonesian

authorities have stopped more

than 1,000 would be asylum

seekers from coming here this

year and they're saying this is

a seen of better cooperation

with Australian authorities. It

comes at a time when the

Government clearly knows it has

to step up its rhetoric and

defend its border protection

policy because the Opposition

are getting stuck into

them. They best back off on that Balibo investigation,

hadn't they f they want to mane

taken good

investigations. That's exactly

what I thought. A rather

strange time to be be saying

we're having wonderful

cooperation, by the way we're investigating this 35-year-old

series of murders You could see

if Indonesians decision to

release such information as

being a very powerful chip in

that poker game? Cow could Look

what we've done. Would you like

a put more of this? We

certainly need them in the boat

people debate. There's been a

lot of coverage of our Patrick

Swayze today? In every paper,

he rivals Telstra today. He's

Mr Interesting in Telstra. The

interesting thing about Patrick

Swayze is I think he only did

two movies of any real note but

they were big movies and he's

changed the face of pottery

ever sense. They replayed that

scene I don't know how they got

away with a general rating for

that particular scene. A are

really sweet man and a

beautiful dancer. Moved like a

cat. Yes. Nice to see you again

Cameron. Thank you so much. You

can watch all of News Breakfast

streamed live every morning.

With sport here is Paul

Kennedy. Good morning. The

fifth one-dayer is being played

at Trent Bridge this morning.

Australia is chasing 300 for

voikt. It's a tight finish.

Australia needs about 35 after

the same amount of balls with

about four welcomet Ms Hand.

Ricky Ponting has just gone out

but he did make a century. This

is how he brought it up.

COMMENTATOR: Hose gone for the

being one, has he got enough of

it? Oh yes he has. And that's

an even better shot because

he's got inside this time and

that's six more. And there it

is. Fantastic century by Ricky

Ponting. Again, doing it all

for his team. Stuart broad has

taken a couple of key wickets

but he immediated to make up

for some his fielding teams.

Got some pictures here of how

England has been trying to help

Australia win this game. He's

running on there and over he

goes. Someone said he slipped

on a worm. That happened to a

British fieldter other day as

well. That was through the

legs, sit? But they still could

win this game, it's coming

right down to the wire and

there's some overthrows there.

There's nowhere to hide. The

best you can do is bounce back.

We'll show you some pictures of

the tour of Spain overnight.

They'll finish up in Madrid on Sunday. Alejandro Valverde

still in the leaders jersey,

that's a nasty crash there with

England's Roger Hannant went

down and they'll be some

injuries out of that one, no

doubt about that. Seem to be

that a spectator got in the

way, as happens occasionally.

So gripel won that statement in

a group finish. Cadel Evans is

fifth, 1:51 still behind. I can't believe they're still

going. It will feel good when

they finish. Thank you Paul. Here's Vanessa O'Hanlon with a

look at the weather. Thank you.

From the satellite we have

cloud that's over Western Australiaer south-east coast

and South Australia as a front

trough and low combined and

move further east. Patchy cloud

also over north-east NSW in a

weakening trough, that's

causing the odd shower. With

that front moving east from

Western Australia, 5 to 10mm of

rain for all areas of South

Australia except for the

north-east corner. The same

front will cross, NSW, Victoria

and Tasmania tomorrow ahead of

the front, above arm day time temperatures, showers and

thunderstorms. A high over the

east will keep most of the

inland dry and send warm to hot

easterly winds over the Top End

and the next front is expected

to approach Western Australia

tomorrow night.

Much more ahead on News

Breakfast - we're going to find

out just what the Opposition

thinks about the planned to

break up Telstra. Opposition communications spokesman Nick

Minchin will join you. Stay

with us, we'll be back shortly.

This Program is Captioned

Live.

Telstra shares dive as the

Federal Government forces a

restructure of the tele

communications xwient.

Australia is called to help

poorer naes deal with the

impact of the climate change. America's top banker

says it's likely that the US

recession is over. And

Australia chasing a big total

for victory against England at

Trent Bridge but it's looking

good. Good morning. It's

Wednesday 16 September. I'm

Virginia Trioli. And I'm Joe

O'Brien. The top story on News Breakfast - Telstra

shareholders have been hit hard

by the Federal Government's

plans to force a split of the

tele communications giant. The

decision stripped nearly $2

shares yesterday. The billion from the company's

Government says the move to

separate Telstra's retail and

wholesale businesses will lead

to greater competition. But the Opposition has accused the

Government of holding a gun to

the company's head. Federal

Communications Minister Stephen

Conroy says Telstra's in need

of an overhaul as the

Government prepares to roll out

its National Broadband

Network. There are few

jurisdictions if if any