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(generated from captions) because it was really THE most

unbelievable amazing thing. It

was beyond my wild est

dreams. While this approach is

still in its in fancy, doctors

believe it will be widely used

in the future. A quick look at

the weather now - rain easing

in Brisbane, Melbourne and Hobart. Showers in Sydney,

Perth and Canberra. But fine in

Adelaide and Darwin. That's ail

from us. Blirz coming up in

just a moment. If you would

like to look back at tonight's interview with Steve Fielding

or view any of Lateline's

stories or transcripts, you can

visit our website. Now here is

Lateline Business with Ali

Moore. Thank, Tony. Tonight -

good luck or good management?

Either way, the Government

warns against

complacency. There's a fair

chance that we could still have

further negative growth at some

point during the course of this

year. That is slirn a prospect

we don't rule out. Sell ing the

recovery story - the nation's

biggest retailers are out in

force. There is no doubt that

we can actual ly come out in my

personal belief a little bit quicker and stronger than

perhaps we thought a week

ago. And a rally with legs -

the Australian market finishes

above 4,000 points for the

first time in seven

months. Confidence is starting

to return. And I think that is

probably really what that GDP

number is all about.

To the markets and as you

just heard confirmation the

Australian economy isn't in

recession added fuel to the

recent rally. The All Ords

extend its run of gains adding

61 points. The ASX 200 climbed

1.5%. In Japan the Nikkei rose

for a third straight day. Hong

Kong's hang essential added 1%.

In London, the FTSE is down

over 2%. As you heard on

Lateline, the Australian

economy is continuing to

surprise with the national

accounts figures showing the

country has avoided a slide

into technical recession. With

growth at 0.4% in the March

quarter, Australia is inching

forward while most other

developed economies go

backwards. But technical

recession or not, the reality

is many small businesses are

struggling to survive, as

Andrew Robertson reports. North

Ryde is about 15 minutes give

the centre of Sydney. It's not

overly wealthy, not overly

poor. And even though the

economy has dodged recession,

some local businesses are

feeling the pinch. Our downturn

was I noticed that probably 10

to 12 months ago, early science

of it, particularry w the crash

from the stock exchange. Ryan

has been operating in North

Ryde for nearly 30 years and

has seen recessions before. In

good times he work s on up to

20 cars a day but not at the

moment. The worse it got was

when I realised people were

laying off their registration

renewals to the very last

minute, they were laying off

their re pairs. Trade probably

dropped by 25 to 30%. Just up

to road, hair dresser Ron

Schofield has a similar

story. Hair cut is something

people can put off. It's not a

necessity anymore. You have a

look at people today, people

walking around with shaved

heads. 10 years ago people

wouldn't have shaved their

heads. So you have people going

and buying clippers and doing

their own hair kutsz and people

are growing their hair. The

same ar kaids as Ron's barber

shoch is Wally's Waterworld's,

which splice swimming pool

needs. The owner is battling

winter, the economic downturn

and the evolution of his

industry to the point where he

is considering closing his

shop. It's a changing industry

with the Internet.

Supermarkets, all the major

chains now sell swimming pool

chemicals an we often get

people come in and ask I bought

all these chemicals from the

shops, how do we apply them

all? Dst not all doom and

gloom, though, David Hogan is

the manager of Amazing Paints

where sales have held up but a

change in his clientele indicates locals are nervous

about big outlace. We haven't

seen much of a downnurn the

recession at all. Trade wise,

builders and things like that

but people are doing the jobs

themselves. When the national

account figures are added to

other recent economic data such

as retail sales, building

approvals and trade, there's a

growing sense that the economy

is not going to fall off a

cliff. And it's for that reason

that the businesses we spoke to

here at North Ryde are

convinced that the worst of the

economic journ turn could be over. We're seen signs that

things are starting to

recover. I'd say 12 months

maximum I would like to say

that things will be back to 80

to 90%. When everyone was starting to whine that we were

going into a recession I

noticed there was a lot more

cash coming out and people

weren't using their credit

cards. But I've seen the rush

of the credit card so I think

everyone may be not as disairtd

moment. A sentiment which will

be helped by the positive

national account figures in

which business people are

hoping will be reflected at the

till. Hopefully that will pick

business up, people will listen

to that instead of doom and

gloom. Which will mean that

instead of taking a hair cut he

will go back to giving a lot

more of them. And the robust

GDP number had an immediate effect on the Australian dollar

which jumped to over 82 US cent

s this morning. Last month's

Budget was based on an average

exchange rate of 72 cents and

Treasury warns a continued

rally will hurt ex ports which

was critical to today's growth number. Today's exchange rate

were to continue, that would be

- would imply some downside

risk for our forecasts,

particularly for future net

export contribution. The

Australian dollar has surged

more than 28% since erl March

on high relative interest rates

an hopes of a global

recovery. The share market is

up a similar amount, from the

lows of three months ago. For

his views on today's rise and

the recentral yi, I spoke

earlier to Martin Lakos from

Macquarie Private

Wealth. Martin Lakos, quite a

day. We avoid a technical

recession and we break through

the 4,000 barrier on the

market. Not unrelated events. No. Absolutely very

much relate. We had a fairly

weak start to the day's trading

but once that number came out

the market really rallied quite hard, breaking through eventually this afternoon at

4,000 mark. Probably what's

more important is we've seen

now a very solid performance in

the market of very good volume.

That is buy ing volume comes

in. The market is nowralid over

260 points, that's 7% in four

trading days. There's clearly

quite a number of stocks there

that I can pin point that have

rallied really hard over the

last week. BHP has had a strong

run, it's up about 11% over the

last eight trading days. Just

in terms of technical levels,

how significant is 4,000? I am

not sure that 4,000 is anything specific, there's nothing specific about the round

numbers but it's clearly pin

pointing to the market, the

market's been rising. We were

at 3120 in mar and now at 4,000

and probably heading further

North over time. I appears that

investors have started to pick

up activity wise so we're

seeing improved volumes but it

would appear that investors are

really underweight to the recovery. They've been waiting

to see some of these hard

numbers coming through. Those

leading indicators we've been

talking about for some time

from offshore starting to grow

the green shoots but possibly a few buds appearing. So confidence is start ing to

return. I think that is

probably what that GDP number

is all about that we will start

to see an improving consumer

confidence. You talked about a

number of sectors that have been affected what about

consumer disrelationsry

stocks? Tha>>z's the one that

we've seen a big performance,

not only in the last 24 hours

but really we seef seen some very big performance over the

last month. Just to give you

some idea on discretionary -

Harvey Norman up, David Jones

is a similar gain of 5%, Crown

Casino, up 6% that may have

something to do with the

opening of the macaw casino but

that is consumer discretionary

related. Wesfarmers although it

went against the market down,

down 2%, put in perspective

it's up 14% over the last six

trading days. So really strong

performances by all of those

consumer related stroke stocks.

In particular those with more

cyclicality such as s we

farmers with Bunnings and coal

interests as well. What about

housing related stocks? How did

they fare? We are see ing a

rebound. There's no doubt that the listed property trust

sector has been devastated by

high levels of gear and the

hard work they're putting into

deleverage and recover those

balance sheet bus the other

side has been very strong

performances out of housing

related stocks. Boral has a

very large exposure to NSW,

about 45% of it is housing

related for companies like

Boral. Stockland group which

has performed very well, up

about 4% today or 16 cents to

$3.48. It too has big exposure

to construction of that mid-range housing. And then

clearly beneficiaries not only

from the fact we're seeing low

interest rates but consumer

sentiment is going to continue

to drive this housing recovery.

That is clearly what the

Reserve Bank's been pointing

towards over the last number of

months, cutting rates down to

3% at cash rates now. Martin

Lakos, with all this optimism,

though, do you think it can

hold? Do you think it's got leg? Typically after such a

strong rally we will get a

pullback. Some news will come

out or short term profit take

willing come. In if investors

are under weight the recover, I

think it's now limited downside

to the pullback,

notwithstanding something out

of left field that really

shocks markets generally. There's no doubt

there's still a lot of cash out

there. There is no doubt we

have a reporting season coming

up which will provide a lot

more information and really the

markets starting to provide for

earnings recovery into 2010. So

the markets probably well and

truly six months ahead of what

we see in the real

economy. Thanks for join ing

us. My pleasure. To the other

major movers on the market

today - Telstra was back in

favour rising 4.5%. A positive

production report because

MacArthur Cole climb over 3%.

The Banks also benefitted from

the rally. And Oz Minerals

shed over 4% on the day the

Chinese Government approved its

1.2 billion dollar asset sale

to Minmetals.

The fact Australia has

dodged a recession for now has

the retail industry breathing a

sigh of relief. At a national

conference in Sydney, retail

bosses credited the

Government's stimulus measures

with helping their sector to

better than expected sales in

the firstquarter. Desley

Coleman reports. It could have

been the winter weathertor

chilly economic climate that

kept shoerm shopper away from

the start of half year sales.

In fact it appeared there were

more staff than customers. In a

bid to improve the ratio, David

Jones boss Mark McInnes was

trying to drum up customer s at

an industry lunch. We are open

late tonight, so that is still available to everyone

here! While consumers appear

sales weary, confidence among

retailers has been lifted by

today's GDP figures. I think we

have to take today as being

great news in particular the

household consumption

numbers. I think the numberings

you have to take some degree of

reassurance from them. The head

of Woolworths said the cash handouts kept them going. There

will be a big debated on

whether the money was spent

efficiently or nothing. But you

have to give them credit for

getting on the front foot and

make sure the economy didn't

stall. But the detail in the

GDP numbers shows the National

national result was propped up

by ex ports, and domestic

demand actually shrank. Which

suggests business investment

could continue to fall for the

rest of the year. I think the

business sector is still

finding the going a little

tough. We've seen business

investment have one of the

largest declines in the long,

long period of time. So looks like business are scaling back

their investment plans. So that

is going to be a drag on growth

as we go forward. The head of

Coles, Woolley, Bunnings and

David Jones hope the growth

numbers will crack the cycle of

bad news and boost consumer

confidence. The way we come out

of this that little downturn

will be led by consumer

confidence as it has done every

other time in recession. Mr

Luscombe said a key factor in

any recovery was employment and

that Treasury forecast of an

unemployment rate at 8.5%% by

2001 1 might prove - 2011 might

prove pessimistic. If there is anotherquarter of growth we

should look back at numbers. If

we can keep as many Australians

in jobs as possible, given that

China has sent a signal to the

world they're up in the

business again, then there is

no doubt that that we can

actually come out in my

personal belief a little bit

quicker and stronger than

perhaps we thought a week

ago. But judging from the lack

of traffic at the start of the

winter sale, consumers will

take a while to warm to an

improving outlook and the head

of David Jones believes it will

be females that lead the

challenge. I think women once

they realise their husbands,

partners, boyfriends have got

their jobs, they will be back

buying those shoes and hand

bags today on sale, but in the

new season in August of full

price. Clearly men don't shop

in David Jones! While there's no question that Australia is

not in a technical recession

was welcome in the corridors

power in Canberra. Finance

Minister Lindsay Tanner joined

me from our Parliament House studio earlier this

evening. Tanner tavern tan, welcome to Lateline

Business. Even theing. When

those GDP numbers came out

today, was there a quiet but

distinct whoop for joy? I

wouldn't say a whoop for joy but they are welcome numbers

and they sew the Government's

stimulus Xstrata disizy is

working but there is long way

to go. We're not out of the

woods yet. We have a very

challenging environment but

it's always get good to get

positive numbers tan indication

that the Australian economy is

holding up relatively well

under very powerful negative

pressures is good news for

Australia. Pos tifs numbers in

a technical sense but do you

think we're in a recession

numbers, the number of

economists have said they think

that employment or unemployment

is probably a more meaningful

measure and on the basis of

jobs lost we are in

recession? There's no doubt

we're in middle of a serious

economic downturn and in some

respects I think it's pointless

to get involved in the debate about technical recession and

all of those things because

they don't alter the serious

naitd our tfr challenge we're

facing. We have a huge set of

difficulties to tackle. Real

major problems that the

Australian economy faces

because of the global recession

and the huge impact that that's

had in major economies around

the worlds, all of which is

glowing dlu to Australia. So I

don't think there's much point

in having debates about what

definition of recession we

should use. The fact is we are

in a serious downturn. Things

are better here than they are

in virtually any other major developed economy but numbers

we still have a lot of

challenges to tackle. At the same time's huge psychological

point and a great confidence

boost if you can stand up and

say the count I have not in

recession and that is why you

and the rsh trsh and the Prime

Minister were so hesitant to

use the recession word. I

wonder if the recession or a recession is still inevitable

as the Prime Minister had in

April and indeed you yourself

said that another quarter or a

further degree of negative

growth is little throughout

that doubt that we would have

that one. I did say that and I

think there is still a fair

chance we could have further negative growth during the

year. That is certainly a

prospect we don't rule out. I

do dictly saying in several interviews that I would wait

until we got the data before

declaring we were in recession

and I think the wisdom of that

has been proved in hindsight.

Today's figures will be helpful for confidence but they're only

one part of a longer pictd wrur

there are still lots of

challenges. Were both the Treasurer and the Prime

Minister a little unwise to say

- to use words such as

inevitable which is very define

IVF and doesn't - - definitive

and doesn't leave any wiggle

room? I think you will find the

odd appearance of the word

inevitable in my transcripts.

There's a lot more to go and

unemployment clearly is going

to rise during the yay the rest

of the year. So it's an

important issue for confidence,

no doubt about it. But we don't

want to endlessly debate

definitions and words. The real

question is the challenge

getting Australia's economy in

strong shape. So the question

really is what comes next and

how well placed we are for it?

If you break down these numbers business investment especially

in equipment and machinery has

collapsed, im ports have fallen

every State bar SA had negative

growth in the March quarter. So

against that background where

do you think we are? I think

there is serious issues that we

do need to address and of

course we are projecting

further increases in unemployment and I think that

is still going to occur. We So

the Budget forecasts hold? I

don't see any reason why we

would be revising those

forecast at this point but

forecasts are always under

examination and there are

various points in the cycle,

particularly later in the year

where we have the mid-year

economic and fiscal outlook

where they are revised and

reexam inned and that will

occur in the normal course of

even but we need to keep in mind that business investment

is coming off record Heiss. We

had only up to a year or so ago

and even more recently

extraordinary levels of

business investment. So

although there is now a decline

occurring and that's a decline

we've anticipated it still shows fairly solid levels of

business investment in longer

term sense. So we do have

something softening. The

factors that are going produce

higher unemployment are

starting to work out but at the same time the decision

Government has taken to get

money moving quickly, to stimulate activity, to strengthen jobs, and to build

for the future are clearly

having an effect and we're

going to continue with those

things because the most

important thing here is suss

staining jobs and economic activity. Given all that you

just said, particularly given

the point that business

investment is coming off such a

high base, is it possible that

the fore casters including

Treasury are simply too

pessimistic. Let me put to you

something that one of the count

Biggest retailers Woolworths,

said today. If we get another

quarter of positive growth, the

Government will likely to have

revise down its unemployment

forecast. I won't speculate on

the hypothetical scenarios of

that kind because we do revise

our forecast all the time of

course. So every six months

there's a revision and we've

had a particular revision that

occurred in February this year

as well, which was an unusual

event. Is there too much

official pessimism, though? I

don't think there is. We've had

a tread to very fine line here

and it's been the source of

some controversy being between

realistic and frank with the

Australian people about the

challenges we face and at the

same time sustain ing

confidence. That is not an easy

thing to. Do it's something

I've been folk yaused on to

maintain confidence. Now the

figures today are very

monthstive. They're a good sign

for the Australian economy. But

once swallow doesn't make a

summer. We shouldn't assume

anything other it's better to

have good figures and it's

particularly good that it shows

the Government's strategy is

working at least thus far and

we can reasonably expect to it

have a positive paict. A

slightly different issue but connected to the global

financial crisis The boss of

the ANZ, Mike Smith, has been

quoted as telling London's

financial 'Times' that the

Government guarantee that's

help tauld banks raise billions

of dollars in the offshore and

the local credit markets he

says that guarantee "Is no

longer rider markets have im

proovend," And he sietsz now a

case to argue that it's

disrunting market. Is he

right? I don't think so and the Government guarantee is

structured in a way that it's

designed to fall away in use

over time as markets normalise

because there is a fee that

applies. It's start at 70 basis

point force money raise and a

bank is only going to access

that if they need to. Is the

bank still access ing it if the

ANZ doesn't need to? It is

still being used but there are

signs of banks moving into non-guaranteed debt. So we

expect the use would diminish

over time as the economy and

the financial circumstances

internationally start to

normalise. So the whole

structure is designed to allow

the market to influence the

exit from the guarantee. That's

entirely reasonable. I don't

agree that it has induly

disrupted markets. It is

certainly an intervention that

will always change market

activity, market eby haifr but

it was un avoidable. So we have

no plans to revoof move the guarantee facility but we do

expect over time that use of it

will decline and at a point it

will no longer be necessary.

But we certainly are not at

that stage now in the

Government's view, and it's

something that we need to keep

in place in order to protect

our financial system. Which is

fundamental to the functioning

of our economy. Lindsay Tanner,

many thanks for talking to

Lateline Business. Thank you.

Once just Parliament of the

US war machine, that most macho

symbol of motor ing the hum sir

being sold to the:ese. Not so

GI now, more People's

Liberation Army. General Motors

says it's reached a tentative

deal with a heavy industrial

machinery company in China's

Sitch province. GM is trying to

dump unprofitable brands as it

tries to emerge from bankrupt

si. Even though there's been a

collective sigh of relief over

the GDP numbers, corporate

Australia is very much in belt

tightening mode. That means businesses will continue to

scale back on indulgences like

corporate golf days and

interstate conferences. Mark

Twain once quipped that golf is

a good walk spoiled. While some

might agree, the corporate golf

day is often seen as a way to build relationships and clinch

a deal. But that thinking is

being tested in current

economic climate as firms look to cut disrelationsry

spending. There are many people

who are not coming to golf

days. We've just got rid of 40%

of people in our office, I

can't be seen vag golf day. Matthew Laverty has been

hosting around 120 golf day

event s a year. While the

number of functions is hold ing

up, his clients are choosing to

run them with fewer

participants. In the current

market there's a demand for

smaller event. Companies don't

want to spend the $30,000 to

run a golf day. They're

interested in doing small

groups, getting their key

clients out on the course And

he argues there is no other

event where a business can

maintain a captive audience in

a relaxed environment for half

the. I have a couple of clients

that have spent more money than

normal on a program because

they feel it's an ideal time to

get market share. It is not

just on the Government course

where companies are scaling

back their entertainment bdges. Lee-Anne Wilson says there's

been an 18% drop in demand for

her company's event management

services November. Some clients

rather than going to an island

destination for their

conference are deciding to stay

in major cities. Even though they're spending the same

amount of money it's more the perception of how it's been

looked at. While some functions

are resilient like sales

conferences and government

meetings, Lee-Anne Wilson has

had to rethink her own business

strategies. Staff are more activity marketing to clients

and happenings is offering

specials in conjunction with

its suppliers like hotel

chains. It is a matter of try

ing to - keep cover ing cost s

of fixed costs for happenings.

So I don't have to put off

staff and I can keep the staff employed. But Lee-Anne Wilson

and Matthew Laverty are

optimistic about the future

confident their services will

continue to be needed. I have

no doubt we're in in for a hard

18 months or two years but I

believe once it comes back

corporate golf being very good

value for dollar that I think

it will always be around. And

even in a downturn Matthew

Laverty still has enough

customers who think a bad's

day's golf will always beat a

good day's work. Now a look at

the business dairy - -

business diary.

A look at what's making news

in the the siz bsh business

sections of tomorrow's payments. The 'Australian Financial

Review' says currency market

volatility is proving a

challenge for business. And the 'Sydney Morning Herald' looks

at the latest bit of bad news

from the administrators of

Timbercorp. That's all for

tonight. As I believe you the

Dow has opened down 25 points,

the futures were pointing to a

61-point decline. And on the

FTSE, also an end to the party

for the time being at least,

down 89 points or 2%. If you

want to review any part oof the

program, you can visit our

website. Where you can watch

the whole show online or

download it as vodcast. I am

Ali Moore. Goodnight.

Closed Captions by CSI R # It's the wrong time... # Finally found something to like? doing singing in Amsterdam? So, what's a Yorkshire lass Is my accent still that strong? Oh, just following the money. Andy, what's happened? I don't know. Clings like February drizzle. bail. The public prosecutor allowed you tell me who you deliver to. You can keep your life if you So don't even try to explain! him, I can do it. Get real, Peter! Dalziel has to report in. Let me find We've got 23 hours before so you have about 20 minutes! Boersma and de Kuiper, I have to tell are humiliating us. These English cops Taking the piss! What do they call it? I did warn you not to trust them. friendship, they abused it. I'm sorry. I offered them Sergeant Breukink. You're off the case, where you can do less harm. Get to your desk, Right, Boersma. Sort out this mess quickly. Yes, sir. Right! Up off your arses, all of you! to patrols around the city! I want photos of Dalziel distributed

to go on alert for this guy! I want all the main transport hubs and track this man down! You lot go out on the streets re-checked! Every hotel is to be checked, in a city that's new to him, He is a foreigner even for you! he should be easy to find,

that we find Dalziel soon. Let's hope for your sake Keep your head down for a few days. Yes, sir. I can't protect him any more, Parvez. He's giving me the run-around. his head. Maybe we can help, sir. I don't know what's going on in

constable's really gonna love this! What the hell's going on?! The chief you could use extra eyes and legs. Sorry, sir. We thought We wangled a day's leave specially. as a Yorkshireman? how much pain that causes me Unpaid. Can you imagine Sorry. I can't say help isn't needed. So, thank you. Yeah. Three nights. Three. Yeah... MAN SPEAKS IN FOREIGN LANGUAGE Top... Top floor? Oh, the very top? The very top? Yeah, yeah, right. English! HE BREATHES HEAVILY Bloody hell! please stay calm. It isn't a disaster, will do him no good at all. The fact that he's gone on the run have a look at a new case. Just to have you out of my way, Uniform picked up a body about 4am. hit by a car and killed. North African, mid-20s, for whatever perverted reason, And then someone, eviscerated him. Be very careful how you go. on this one. We can't risk any racial tensions if anybody asks. Just a road accident, Yes, sir. Mr Dalziel woke up alongside. This is Tracey Baxter, the singer She'd been stabbed to death. is against Dalziel. All the forensic evidence both taken Lorazepam all over the murder weapon, they'd He slept with her, his prints are but why isn't he in custody? remember anything. Sorry, and because of the drugs, he can't and he wants a motive established. his conduct during the investigation, The prosecutor gave Andy credit for mother's family she's still under threat from her This is Jasmina Razzaq. Her dad says fiance, Sam Hudson, would also be in for divorcing a cousin. If so, her trouble from an honour killing. West Yorkshire Police on Sam Hudson? if this is him. Any word from Well, he was certainly killed - and it's an old flat. to the Dutch registry office, They checked the address he gave anyone chasing them off the scent. so obviously, they wanted to throw Jasmina gave her dad's address the wedding took place, then. They got Sam before Jasmina's prospects look pretty bleak then Tracey for setting it up. There is no plan. What's the plan then, sir? We're busking this. on Tracey Baxter? Where are you up to British Consulate warned me off her. as the security attache at the She's a bit of a mystery, especially I took these on my mobile. and Gary, the club owner. This is the barman, Jacob, And this is Frida, the other singer. She and Tracey were both managed BLEEPING by this guy, Marty Boak. bank account before I left. missing-persons routine on Dalziel's Eh-up! I did the usual about ten minutes ago. from a cash machine in Amsterdam He's withdrawn 500 euros A request from Inspector Boersma. a traffic accident for now. This man's death is down as Well, all the exterior wounds - fractured skull, fractured sternum - are consistent with being hit by a car, but then his stomach was cut open crudely. Could it have been a ritual killing? It seems unlikely in the circumstances. He must have been a mule who swallowed his cargo. Almost certainly, not that I could detect what he'd swallowed. They usually carry it in condoms. How old was he? No more than 25. What a waste. I had a trade-off in mind. For? Information on Tracey Baxter, the murdered singer. She's supposed to be from Yorkshire, but there's no birth listed for any woman of that name or that age group. It's probably an error in the system. Look, you've now got two dead British citizens and one missing presumed dead. I'M the one who gets the rough end of the stick, Pascoe, escorting bereaved relatives to murder sites, freighting bodies home. I think the body in the canal was a man from Sheffield, Sam Hudson. He was due to marry an Asian girl, Jasmina Razzaq. Thank you. So...Tracey Baxter. She was in the witness protection programme. Wit... Just over two years ago, she gave crucial evidence at the trial of a leading criminal. A murder was committed at a club where Tracey was singing. The other witnesses were scared off, but the man who was killed was Tracey's boyfriend, a waiter who'd spilt the gangster's drink. So, Tracey got her revenge in court? And relocation here with a new identity. What about the killer? Is he still a threat? Well, that's what I had to check. His prison governor says that he got religion big time last year and repented. His prison psychiatrist thinks that he is, "a reformed character." You knew this right from the moment Lateef started making enquiries about Tracey Baxter? I was her contact in Holland, so you understand I had to be very careful, especially as I had to establish whether Dalziel had any prior contact with the jailed killer. We are now satisfied that he didn't, nor did Tracey contact me thinking she was in danger. What was the killer's name? What was Tracey's real name? Ask your chief constable.