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(generated from captions) people who are turning out. But

Hillary's turn out has been

good also. We're expected in

Ohio tonight as many as 3

million people voting in a

Democratic primary, that's an

astonishing turn out. It may be

5 or 6 million state wide for

both sides. Records in Texas,

we really haven't had in

history a primary turn out like

the one we're having this year.

That suggests great interest in

the future of the country. The

country's had a very tough

eight or nine years. People are

quite ready for change, I

think, on both sides and

excitement about which there's great deal of

direction it goes. This is

topic A everywhere you go in in

country. Indeed it does point

to a high turn out, possibly

even in historical a high turn

out in the actual Perez den shl

elections. Is that going to

work against John McCain inevitably? I think it's a very

difficult year for the

Republicans no matter who they

put up, or who the Democrats

put up. All of the excitement,

all of the money, all of the

turnout margin is on the

Democratic side. The margins

are lopsided, it's at least

half again as much. Typically

that is not the case and we

have seen it increase as the

season has - as the calendar

has gone from January through

to March. There's no reason to

think that will stop. Don't

forget, we have a lull in the

summer but the final two months

of the race with the two

eventual nominees is just a

nonstop 60-day donnybrook and

by the end of that process I

think we will see another

record broken in terms of turn

out. Just going back to Hillary

Clinton, could she possibly

stay in the race, if she has

anything other than emphatic

victories in both of those

state? Absolutely. I fully

expect her to stay in tonight

no matter what happens. I think

the notion that there's going

to be a knockout blow and that

she wakes up tomorrow morning

and says that's it, I'm done,

boy, he really whooped me just

isn't likely. The Clintons are

not quitters. They don't have a

lot of speernings of writing

themselves out of the movies.

Her husband didn't wrap up the

nomination until June. She's

got plenty of money. You've

noticed watching that tape that

she seems energised and she

seems to be having some impact.

Unless he really stuns her

across all four contests, doi

not expect her to get out any

time soon and we're going right

through to April and maybe

after. Maybe after is obviously

the interesting thing. I mean

if it got to the convention and

they were pretty close, how do

you see it playing out? I mean

it's now starting to appear

like the last series of the

West Wing, for example? Well it

would be great if it turned out

to be the last series of the

West Wing, that would be really

interesting. I think what's

going to happen is after the

primaries have finished and

that happens essentially late

May, it's at that point that

all the super delegates, these

sort of extra players in the

movie will then come in and

make their choices. And I think that they will probably fall

behind the person with the most

votes or the most delegates and they will just simply confirm

what is a marginal victory. But

I don't expect this to go until

August or September. I think it

h will happen very quickly in

June, all the pieces will then

tumble into place. So if we get

to that point. It may be that

Obama rolls and cruises here

tonight and it becomes less,

less of a jump ball but my

guess is that she's not getting

out soon and we really won't

have a nominee until about

June. So you don't see it

coming to an amazing television

event, the rhetorical contest,

who does the best speech at the

convention and extraordinary

things going on with cigar

smoking characters behind the

scenes in No, that is the West

Wing scenario and I think it

only happens in

television. Let's imagine with

what little time we've got

left, let's imagine that this

phenomenon Barack Obama does

get through, he will be tested

because he's such a blue sky

candidate, he will be tested at

every inch through the

presidential campaign by a very

experienced, though very old,

Republican candidate in John

McCain, how do you see that

playing out if Obama got

through? Well, you put your

finger on the essential ark of

a fall contest, it's young and

old. There are two Westerners,

they're both in the Senate. One

is promising change in a whole

new way of doing business, the

other is a kind of hero in the

Republican party. But it's very

interesting, they share one

thing in common which makes the

possibility of a very different

kind of race, something to

consider. Both ran against the

party establishments. The

Republican party didn't love

John McCain, the Democratic

party really wasn't crazy about

Barack Obama first. Both ran

against their party

establishment, both would have

by then prevailed. Both are

maverick, both like to do

things differently, it's

possible they decide to run

different campaigns than we've

ever seen before. So I think

it's a little hard to predict.

But as you noted before, the

advantage, all the advantages

at this stage are with the

Democrats. Michael Duffy,

fascinating to talk to you.

We'll hopefully be able to do

that again during the course of

the campaign. It's great to see

you and thank you very

much. Thanks, Tony.

China is considering whether

to appoint the most

controversial figure in Tibet

to high office, the Panchen

Lama is the second highest

ranking lama in Tibetan

Buddhism but the young man who

officially holds that position

in Beijing's eyes is seen as a

fraud by Tibetance. Now

the China correspondent Stephen

McDonnell reports. The

monastery is spectacular Tashilhunpo

monastery is the seat of the

Panchen Lama who's second only

to the Dalai lama is Tibetan

Buddhism. When the previous

Panchen Lama died here in 1989

two boys were chose ton replace

him. One by the Dalai lama, one

by the Chinese Government. The

Dalai lama's choice disappeared

and the Beijing-anointed

Panchen Lama has struggled to

be taken seriously ever

since. As a religious leader he

has zero credibility. He was

chosen by non-Buddhists who

officially don't believe in re

in-Cannesation and are

officially atheistic and so the

idea that somebody who was not

a Buddhist who doesn't believe

in reincarnation has any

authority to choose a recar

Nate lama is. Panchen Lama

Gyaencaen Norbu turned 18. He

met the chairman ot national

people's Congress. Way anz

enthusiastic news report.

TRANSLATION: The Panchen Lama

said he'd resolutely support

the communist party's

leadership and that he'd uphold

the national unity of China.

TRANSLATION: I always say to

people pray more, do more good

things and listen to the

Chinese communist party to

create a happy life . Gyaencaen

Norbu's name is floating around

this week's National People's

Congress as rumours fly that

he's being groomed for a

political position. He was too

young to make the cut off for

this year's list of delegates

but he's already being

mentioned as a possible MPC

vice chairman in the future.

TRANSLATION: He's developing

his prestige among most

Tibetans, we think he'll play

an important role promoting the

religious cause of Tibet. I

think that it's something that

the authorities can use to

trumpet the idea that they're

giving Tibet ants authority,

that they're giving this particular Tibetan a position

of some authority and so I

think that they're going to use

it in that Guan Wei but I don't

think it's going to convince

many Tibetans. By appointing

the Beijing-approved Panchen

Lama to political office, the

Government is taking something

of a risk. The move could grant

him some new found

respectability but it could

also make him seen like more of

a puppet and that would even

further undermine his standing

in Tibet. The Tibetan s won't

accept Beijing's Panchen Lama

is seen as an indication they

won't accept being part of

China. The Chinese Government

would dearly like to turn both

these things around. Cameras

today caught a Lufthansa

airline pilot fighting to save

all those on board when his

plane encountered high winds.

The 131 passengers on board the

Lufthansa air bus landed on a

wing and a prayer and only

just. The plane was caught in

violent cross winds as it tried

to touch down in the German

city of Hamburg. The wing tip

touched the runway at one point

before the pilot regained

control and took off again.

After circling the airport it

landed safely on its second

attempt. There were no

injuries. The plane is already

back in service.

That's all from us, 'Lateline

Business' coming up in just a

moment but if you would like to

look back at tonight's

interviews or review any

stories or transcript yous can

visit our website. Now here's

'Lateline Business' with Ali

Moore. Thanks, Tony. Tonight

bitter pill, business forced to swallow more pain by the

Reserve Bank. The Reserve Bank

has a significant inflation

problem to deal with it and

likely to get worse before it

gets better. As the commodities

boom adds to that heat. Whether

we're talking about

agriculture, commodities or the

resources comody,or whether

we're talking about mineral,

metals or energy, demand is

strong. And shoppers feel the

strain. The interest rate rises

engineered by the Reserve Bank

last year and the market driven

ones by the subprime crisis as

well as rising petrol prices

may be starting to have some

negative impact on consumers.

To the markets and Australian

shares continue their run of

losses and finish lower for the

fourth day in a row. The All

Ords rose in early trade but

closed 0.5% down. The ASX 200

lost 26 points. The benchmark

index has now fallen 15% since

the start of the year. In Japan

the Nikkei closed flat. Hong

Kong's Hang Seng gave up

earlier gains to close 2%

weaker and after a positive

start in London, the FTSE has

also lost ground. As we heard

on 'Lateline', the Reserve Bank

has continued to tighten the

screws on the Australian

economy, delivering its 12th

interest rate rise since

2002. The increase is a double

blow for business, increasing

the cost of finance on one hand

and cutting revenue on the

other. But economists say the

RBA has more work to do despite

softening its hawkish rhetoric.

Courier operators say their

industry is a barometer for the

broader economy and the signs

in 2008 appear ominous. We

think that our clients are

going to reduce the demand for

courier services in order to reduce their discretionary

spending. We're usually at the

forefront of these sorts of

things and so we think it's

going to be fairly

tough. Marcel Smit said Z

couriers has revised down its

sales targets after a slower

than expected February and

today's interest rate rise will

only add to the pain of higher

petrol prices. Z Couriers is

trimming outlays wherever it

can and might replace some

full-time workers with

part-timers. Our overdraft is

substantial and interest rates

kick in and they become a

larger proportion of our

expenses and there's nothing we

can do about it except to try

and keep our debtors down but

what we're finding is that our

debtors are also starting to

drag their heels just a little

bit and going forward we're

expecting them to be dragging

quite a lot. The rate rise will

also be keenly felt in the

manufacturing industry, which

is battling against cheaper

imports. Anything related to

consumer, anything competing

with imports or trying to

export into global markets it's

really struggling, the higher

currency, just the intensity of

competition in our market is

really making life very tough

and higher interest rates of

course only intensify those impacts. While today's rate

increase was expected, the

Reserve Bank's softer tone

surprised the market. That

might mean that they wanted to

get 50 points out of the way

and they've actually achieved

that but it might also mean

that they're also seeing what

we're seeing which is the fact

that their earlier rate rises

and those of the banks an the

general uncertainty that's

emerging in the world economy

is starting to have some

traction with consumers.

Those words helped send the

Australian dollar to its lowest

level in a week. Despite how

the market and some analysts

may have taken today's

statement, it was still a

hawkish statement. The Reserve

Bank has a significant

inflation problem to deal with

it and likely to get worse

before it actually gets better. Josh Williamson expects

the RBA to lift interest rates

again in May but that could be

the top of the tightening

cycle, especially if the banks

pass on their own higher cost

of funding. If the banks

actually do decide to increase

interest rates by more than the

official amount today, it's

going to be a very politically

charged atmosphere, more so

than it is already but I think

given the fact that costs of

funding in the wholesale market

continue to increase, the banks

will be likely to probably try

to pass through between 5 and

10 basis points of extra

tightening through on top of

what the Reserve Bank's

delivered. But the Reserve Bank

will be guided by next month's

inflation data and the TD

Securities unofficial inflation

gauge is already pointing to a

reading well above the RBA's

comfort zone. The Reserve Bank

cited the commodities boom as

one of the reasons behind its

decision to raise rates and

there are no signs of a slow

down. Today's Australian

agricultural forecaster said

earnings from commodity exports

will rise to record levels in

2008. It's been dubbed a

two-speed economy, but with the

breaking of the drought the

resources sector is now firing

on all cylinders. Whether we're

talking about agriculture,

commodities or the resources

commodity, whether we're

talking about minerals, metals

or we're talking about energy,

demand is strong. ABARE is

forecasting commodity expors to

rise 30% to $189 billion, total

farm exports are tipped to

increase by 18%, most of that

will come from higher wheat

sales. While exports of hard

comotities led by iron ore will

jump by a third. But the

numbers should be even better

with demand easily outstripping

our ability to produce. It's a

global problem. You can see

there's overcrowding on roads,

railway, ports everywhere you

look where there's critical transport infrastructure in the first and second world, there

is genuine bottle necks. It's

believed that up to $23

trillion has to be spent over

the next 10 years to debottle

neck those problems

globally. Soaking rains have

provided relief to many in

rural Australia. But today's

interest rate rise adds to the

burden for heavily indebted

farmers who now must borrow

more to get a crop in the

ground. It's a double whammy

for us, not only does it

increase our cost of borrowing

but it puts a bit of an

explosive impact on the

Australian dollar and is

predominantly export focused

industries, as we are in agriculture. But while record

prices are providing a wind

fall for exporter, it's failing

to make an impression on our

overall trade position. In the

December quarter the trade gap

blew out to a record $19.3

billion. The fact that imports

are growing faster than ex

ports is another sign of strong

domestic demand which the

Reserve Bank has been trying to

slow for the past six years. It

would probably be quite happy

to see stronger export volumes

but at the same time demand in

the economy, for example,

consumer spending and perhaps business investment,

unfortunately, slowing down. So

basically the Reserve Bank is

looking for, I guess, a change

in the mix of growth. The big

trade blow-out is expected to

cut 1% from December's economic

growth figures, which will be

released tomorrow. The slow

down in household demand noted

by the central bank appears to

have shown up in the latest

retail sales figures. Sales

were flat in January after a

strong 2007, but that hasn't

stopped upmarket retailer David

Jones predicting it will

continue to grow profits even

if the economy turns down. Up

until the release of the latest

retail sales numbers, consumers

had proved resilient in the

face of rising interest

rates. What they might be as a

first hint that the interest

rate rises engineered by the

Reserve Bank last year and the

market drin ones by the

subprime crisis as well as rising petrol prices may be

starting to have some negative

impact on consumers. In

seasonally adjusted terms,

Australians spent $20.1 billion

at the shops in January, the

same as December, but

importantly 7% higher than a

year ago. For the Commonwealth

Bank's John Peters at least

three consecutive months of

weaker sales will be needed

before it can be claimed

consumers really are tightening

the purse strings. It has

dropped from 8% in December to

7% but we'd need to see that

annual rate dropping back

towards 4% or 5% to be really

sure that retail sales are

coming off in a sustained

way. But investors weren't

willing to wait deciding to

discretionary spending will be

cut back. Electrical goods

retailer Harvey Norman shed

8.5% in today's trading. JB hi

fie was flated. NoniB lost

1.5%, Just Group was up 5% amid

rumors of an impending takeover

office. However John Peters

believe there's are many

indicators pointing to retail

sales remaining strong. You've

got continuing strong

employment growth, reports of

job and skills shortages. So

consumers are very confident

that if they lose their jobs

today they will pick up a job

pretty quickly tomorrow and

that empowers them to keep

spending. The highlight of the

January retail sales figures

was the continued strength in

department store spending which

was up 2% for an annual growth

rate of 10.4. And that's

prompted up market retailer

David Jones to predict it can

lift after tax profits by 5 to

10% a year for the next four

years even if the economy turns

down. David Jones strategy will

be built around cutting costs,

opening up to eight new stores

an refurbishing 11 to 14

existing ones. We've got $350

million in growth initiatives

with no additional debt

funding, we've got a whole new

business starting with our

credit card business, whole new

earnings stream with no capital

commitment from our

shareholders. And investors

bought the DJ story marking the

stock up more than 3%,

confident it will deliver in

the next four years just as it

did in the last. For a look at

today's trade on the market I spoke

spoke to stock broker Marcus Padley. Down for a fourth

session in a row today, but we

did finish off the lows. Yes,

not too bad. We were down 58 at

one point, we ended up down, I

think, 26 and that follows

three of the worst days in the

market for a long time. We

dropd about 7% in three days

and that has been largely due

to the financial sector banks

in particular. Today the banks

were a bit mixed. A couple of

them were up and the rest were

down and resources were up

today. So a bit of a mixed day

but a bit of relief after

166-point fall yesterday that

we haven't seen another

disaster today. In the wake of

the profit results there's a

number of broker reports out

and they seem to be pushing

quite a few shares around? Yep

n the absence of a tidal wave

of information where we're sort

of focussing in on anything we

can get our teeth into at the

moment, for instance, today we

saw Centro Properties down 14%

on the JP Morgan downgrade. We

also saw Wesfarmers up on - and

Coles stocks up on a UBS coal

price upgrade. Merit lynch

downgranged long year to a sell

and that fell about 8%.

Fortescue is down on City Group

starting research coverage with

a sale recommendation. The

price is currently $7.63 and we

also saw Fosters today upgraded

by one broker. I have to say

it's a perennial underperformer

it's the most exciting

recommendation stock to buy is

Fosters is a pretty sorry state

the market is in. What about

the wash up after the proposed

merger of oxian a and Zinifex.

Both of those stocks are down

9% today and yes on the whole

it's been a pretty positive

reaction? Yes, very upbeat

reaction. Terrible performance

from both stocks today which

would confuse most people and

you have to delve deep to find

a reason why they've fallen.

The research is generally

positive. Most broke verse

upgraded both stocks to a buy

and the merged entity is

described very much as a

midtier long-term buy with

decent growth potential. But I

think what's gone wrong with a

stock is Owen hegarty who is

also known as Owen stronger

forever hegarity which has had

a massive retail client base

following him and successfully

following him at the helm of

Oxiana and I think they're all

disappointed and a little sad

that he is taking a

non-executive role, won't be

leading the combined

group. That said, Andrew

Mitchell Moore is no newcomer.

He ran WMC before he went off

to Russia. He's well known to

the market. Yes, very capable

man but I think there were a

lot of criticisms of Western

Mining when he was running it,

not least the level of

disclosure that they had, a lot

of analysts really struggled to

know what was going on in the

company and the company didn't

really tell them whereas Oxiana

has been quite the opposite

under Owen hegarty, their

disclosure had has been

fabulous and I think people are

a little concerned that maybe

Andrew will again sort of make

the company more opaque. I

don't think it's a big factor.

I do think the resource sector

is a little bit like an oil

tanker at the moment going

downstream and I'm sure Andrew

mittle Moore or Owen Hegarty

steering it will have little

impact. It's got a life of its

own at the moment. Thanks for

talking to us. To the other

major movers on our market

today.Renewed debt worries saw

City Pacific shares lose half

their value before the property

group request add two-day trading halt.

In the lead up to the Federal

Budget with questions about the

promised tax cuts and whether

they will add to the country's

inflation problem, there's an

increasing focus on

superannuation as a potential

alternative. But if there is a

move to increase superannuation

contributions, some of the

country's biggest funds say it

must come with reform of the

super system. The industry

super network's David Whiteley

represents some 40 of the

largest industry super funds

with close to $150 billion

under management. He joined me

from our Melbourne studio early

this evening. David Whiteley,

welcome to Lateline

Business. Good evening. Why

does the super industry need

fundamental reform? What's

wrong with it? Well there's a

number of issues. The first of

which is that around about 90%

of working Australians an

members of super funds don't

choose their own fund. What

they tend to do is when they

start at a new job in a

workplace they join the default

fund their employer has and

what's occurring is there is

very little regulation or

criteria set around what fund

an employer chooses. So you're

saying that that introduction

of choice of fund has

failed? Well in fact what

happened when choice was

introduced two or three year

ago was there was an comppg

around about 50% of people

would choose their fund. What

we've found in fact is that

less than 10% choose and the

most recent numbers are around

about 3.5% of people are

actively choosing their fund

and by and large they're people

who change jobs. How do you

counter that. Obviously those

people who change jobs that

don't choose go into the

default fund. How do you make

it so that they don't do that

and indeed, what is wrong with

that? Well, the first issue is,

I mean the one thing we can

certainly do is we can try and

educate people more that they

have the opportunity to choose

their own fund. We can try and

exhort people to choose their

own fund. But what's broadly

happening is and what our

argument now is and what we're

urging the Government to do is

to introduce a system to

protect the people that aren't

choosing and as you say, is

there anything wrong with them

not choosing? That's fine, just

as long as the system itself is protecting their interests. And

so what we're proposing the

Government do is introduce what

we're calling a superannuation

safety net which will ensure

that the default fund that at

their workplace meet certain

criteria and explicitly that is

acting exclusively in the

interests of the members. But I

mean most superannuation funds

would argue that that's what

they do, that's - that is in

their mandate? Well, if you

have a lock at the criteria

that we're proposing I think

you can see what in fackts it

will be is an enhancement to

the current system. What we're

suggesting, for example, is

that a default fund should not

pay a commission to a financial adviser. Sphrex, there's no product being sold to the

member, there's no advice,

financial advice being provided

to the members so there's

really no justification for the

commission. We're suggesting

that fees be capped. We're

suggesting that the default

fund would provide some form of

clearing house facility for the

employer to ensure the ease of

admrges and we're importantly suggestions that just because

someone changes jobs they don't

get shifted out of the default

fund into a more expensive

retail fund which is common

practice amongst some of the

larger institutions. This issue

of fees is a very big one, not

just for you but I I guess

across the board. You actually

talk about structural

corruption within the system,

what do you mean? Well the

problem we've got at the moment

is that over 1, 3, 5 and 7

years up to 31 December and

according to rating agencies

super ratings, the top 10

performing balance funds where

70 plus per cent of people have

got their money are all not for

profit funds and the majority

of those are industry funds and

yet none of the top 30 largest

financial planning dealer

groups recommend any of these

products so. The best

performing products over 1,3, 5

and 7 years are not recommended

by the major financial planning

groups. And you argue that's

because you don't pay

commissions? Well, there is no other reason. I mean it's not

down to performance. That said,

many industry funds also

provide financial advice on a

sort of fee for service basis,

no trading commission, no

commissions per se and if you

do go to a financial planner

who charges commissions, they

have to be up front. There is

the choice out there that you

can be informed about what your

options are? That's absolutely

right but that's also assume

when someone seeks advice from

a financial planner, they fully

understand the process into

which they're entering. Again

let's understand that the

financial planner is in effect

selling a product. They may be

providing some advice too but

they're selling a product. The

very nature of a sales process

is they're convince, they've

got great communication skills

so people as they seek advice,

they may assume that it's

impartial when in fact what's

happening is they're being sold

a particular superannuation

product. The whole idea of

greater disclosure of fees

you're saying is not changed

the game? People still don't

know or understand the

commissions they're paid? Well

there's a large proportion of people that don't particularly

understand percentages. So, for

example, an adviser may say to

their client look, we will

charge you a percentage rate of

0.5%. Well to many people that

doesn't sound a great deal and

yet our research shows and this

is research again done by

independent agencies, our

research shows that 0.5% over a

40-year period can be up to

$100,000 difference when you

retire. So what you're calling

for really goes far beyond just

superannuation funds and how

the Government should treat

default funds. You're really

talking about changing the game

for all financial

planners? Well I think that's

how we have to address the

system. The interaction between

super and financial advice is

twofold. Firstly, as people are

ageing and as people are

building up their assets within

super they do need a level of

advice. Secondly, the retail

funds, these are products owned

by the major insphutions are

sold through financial advice,

financial planners so therefore

if you go to visit a financial

planner to seek advice, you're

going to be sold a particular

product. If I can broaden the

conversation to cover other

issues and another topic of the

day which is stock lending,

super funds pay a fee to

custodians to hold their shares

an some of that fee can be

offset by agreeing to lend

those shares out. I want to ask

you, you can make a bit on the

side as a super fund but if you

as a fund are say longer stock

and yet someone who's borrowed

your stock goes short you're

basically cancelling yourself

out, aren't you? How does that

work in the interests of the

super fund clients? I think the

first thing to say is that

industry funds and most super

funds would be investing with

hedge funds and these are the

kind of funds we're talking

about here. They would typically invest between where

between 0% and 3% of their

total asset allocation. I'm

talking about super funds

themselves lending their stock

out to others. Well it's a

practice though, as I said,

which is in a very small

proportion of the total assets

they would be investing in

equities per se. Now the

argument or the point you're

making of course is that - is

that if your long stock at one

time and short the same stock

they cancel each other out.

There is of course an extent to which this is occurring but at

the same time what we'd expect

is that the market would work

its way through so that in the

event at the end of the day the

super anwaition fund members

would benefit. How can you be

so sure. You may well lose on

the transa or are you working

on the basis that the market

will always eventually come

back in? You assume the market

will always come back in. Do we

need greater disclosure though

of just who's lending and

what? I think - well that's a

sprit issue but an important

one. I think there are

certainly not a great amount of

transparency around this. I

mean for example a super fund

doesn't necessarily know who is

borrowing the stock and one

issue which is very contemporary at the moment is

that there is a view that some

hedge funds might be

independently or even in

concert going short on a

particular stock to deliberately reduce its price

and reduce its value. Well

that's something which we

believe the regulator should be

having a good look at and

taking action if they can find

evidence of it. So would you

like to see greater

disclosure? I think it's

important that we have, yes,

greater disclosure and greater

transparency. Many thanks for

talking us to. Thank you.

ABC Learning has extended its

suspension from trade for

another day as founder Eddy

Groves seek asbuyer for its US

assets. The company says the

voluntary suspension is

expected to last until

Thursday. Last week Mr Groves

and three other directors were

forced to off-load millions of

shares as the stock price

plunged and their margin loans

were called in. Now a look at tomorrow's business diary. The

latest GDP figures are

released. RBA assistance

governor Malcolm Eade will be

talking on the evolving

economic out look. Continuing

the theme of central bank

commentary, US Federal Reserve

chairman Ben Bernanke will

deliver a speech on mortgage

foreclose yurs. Before we go a

look at what's making new ms

the business secs of tomorrow's

papers. 'The Age' rr says banks may defy the Government and

lift rates by more than today's

0.25% official rise. The

Australian leads on the same

story. While the 'Australian

Financial Review' says a

Reserve Bank will now pause for

breath. And the 'Sydney Morning

Herald' covers a catastrophic

day for City Pacific. That's

all for tonight. As I leave you

the FTSE is down 49 points and

the Dow futures are down 91. If

you'd like to contact us about

any of the stories on the

program, our email address rmt #4:

I'm Ali Moore. Goodnight. Closed Captions by CSI

THEME MUSIC

Over the years Four Corners has travelled to Bethany many times. While the visits have not always been friendly, we have been received with courtesy and hospitality. I've often told the media,

I said, "You write or print what you like, "it doesn't matter down here. "Because even if I do try to tell you the story, you misrepresent it."

I have been speaking about life as the wife of the Premier, some of the places that I've been to. How are you, Lady Flo? Alright, thank you. How are you going yourself? Not too bad. I'm Chris. Thank you, Chris. That's nice to see you. That's very nice. And now we're back because questions still loom large. For example, if Sir Joh Bjelke-Petersen was corrupt, why did he die in such poor financial circumstance? And that's why, you know, I couldn't imagine why the people would've thought

that Joh was a rogue, that Joh was corrupt, which it was proved he wasn't. I am innocent and these people in here couldn't prove otherwise. Didn't I tell you I was innocent?

Looking back now, do you consider that Sir Joh Bjelke-Petersen was corrupt? Yes. Yes, I do.

And if his government was so corrupt, why do people continue to claim it was Queensland's best? I myself, have not seen a leader like Sir Joh. If he wanted something done, he went ahead and did it. We had no poker machines, we had hospitals, we had schools. That's three things I can think of,

and things were running pretty good in Queensland when Joh was in. 20 years on - after 20 years as premier the 20-20 view of Sir Joh Bjelke-Petersen and his legacy. We provided entertainment - bread and circuses, really - had a lovely time till Mr Fitzgerald came along. The wheels fell off.

Is there any chance of Joh ever losing? No. Not if you support me. Hello, Bob, hello, Bob. Bye-bye, Joh. Bye. The story of Joh Bjelke-Petersen essentially begins and ends at Bethany. The account of the polio-stricken son of a Danish Lutheran pastor leaving school at 13, living for 15 years in a cow bail, battling to build his own fortune and leading his State from the wilderness is part of Queensland legend. You had to know him. He had to trust you.

But once that trust and that knowledge of him was in place

he was more or less like a Dutch uncle. He was a charming man in day-to-day operations. He was a gentleman. The same stamina born of the farm was applied to his political career.

Elected in 1947, he worked at gaining favours from colleagues who voted him their new leader when Premier Jack Pizzey died in office in 1968. He had a motto and it was a simple one, it was, "Say what you think then do what you say".

Well, general information for the public generally. This again disgusts me very greatly from time to time in the context in which it is levelled at these people.