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(generated from captions) reform for consultation. I,

along with other Ministers

business as well as other parts consulted extensively with

of the community about this. We

have never diminished this

reform. What we do say is this:

it is necessary, it is the

responsible thing to do, we

need to tackle climate change,

and we need to do so at the

lowest cost to the Australian

economy. Are you going to

continue to reject the kals

from the corporate sector,

particularly the big business

sector, basically arguing that

new trade exposed industries

will not be able to have secure investments because of caps

you've imposed. Look, can I say

what is the task here, and

let's talk about the way the

Government is approaching it. The task here is to The task here is to strike the

right balance. To find the design that strikes the right

balance, that ensures that all

sectors of the economy make a

reasonable contribution, a fair

contribution to the effort in

tackling climate change, to the

effort of reducing

emissions. What big business is

saying is you are not taking

into account or haven't yet,

the position of trade exposed the position of trade exposed industries making new investments. They'll be

strangled as a result of the

cap. And the point I was making

is this: that what we do know

when we are talking about the

carbon pollution reduction

scheme is that it is inherently

about striking the right

balance, the more generous you

are with one sector of the

sector of the economy the more you shield one

sector of the economy, which is

open for Government to do which

is obviously an option some are

pushing for. The more you do

that the greater the burden on

the other parts of the economy.

The discussion between

business, as between business

and Government and community is

what is the best way to strike

that balance, I keep saying

what we have to focus on is

what is the lowest cost, the

way we move from a highly way we move from a highly polluting, a highly carbon

intensify economy to a low carbon economy of the future,

how do we do that at the lowest

households and Australian cost to Australia, Australian

business, that's what the

Government has our eye on. We

don't have much time, do you

concede at all the BCA and these concerned big business

people have a point. Look, I am

very happy to continue to have

a dialogue with business about

this, and it certainly has been

very constructive, and we

welcome constructive

contributions to this

discussion. The only point I

have consistently made is that

there is no - again, no set of

easy options here and we have

to have regard to the whole of

the economy, and that's what

the Government will need to

do. Is there any flexibility.

that Will you -- I have already made

that clear, I've said we are

open to consideration of the

options that have been put to

us, the Green Paper was put out

specifically for consultation,

I again return to the point.

The issue is what is the best

way to make this transition,

what is the lowest cost path,

what is the best way to do this considering the whole of the economy. OK, Penny Wong, we are

out of time. Thank you for

taking the time to talk to us

tonight. Good to be with you.

Well, West Australians go to

the polls this Saturday in what

some believe could be another

too-close-to-call race, some

opinion polls but the incouple bant Labor Government ahead

despite a booming state economy

some pundits warn scandals on

both sides of politics make the

outcome unpredictable. Margot

O'Neill reports. Voter backlash stung the Labor Government from

the moment it called the

election, angry that Premier

Alan Carpenter announced the

pole six month early behaviour

the Beijing Olympics, and the

day after the Liberal Party

changed leaders. It was very

damaging for Alan Carpenter to

call the election early, he

wasn't seen as an opportunistic

politician before, by calling

it he's seen as that. The

former presenter of the WA

'7.30 Report' report is facing

his first election as premier,

the backlash prompting him to

grab the underdog tag,

especially after Labor's shock

near tweet in the Northern Territory. Everybody I think

understands that this is a

knife edge situation we are in knife edge situation we are in

here. The new Liberal leader

Colin Barnett is the party's

fourth in as many years, and

is, himself, recycled from the

last election in 2005 which he

lost, and after which he

announced his retirement.

Despite a brush with political

oblivian and his party, Colin

Barnett is seen as an

alternative to Alan Carpenter. I'm only in this to

win. I agreed to come back,

which I do with enthusiasm to

get rid of Labor and provide

good Government to this state.

It's a choice between a

Government with a strong record

and plans for the future or a

man who spent the last few

years planning for his

retirement. It is the ghosts of

leaders past that haunt that

campaign. The Liberals raised

the spectre of former Labor

premier Brian Burke, jailed in

the 1990s, he resurrected

himself as a powerful State

lobbyist with links into the Government, three Cabinet

Ministers resigned because of those links after

investigations by the State's

Corruption and Crime

Commission. It's due to release

more reports soon, but probably

not until after this weekend's

election. Alan Carpenter has

and had Burke banned as a lobbyist

and expelled from the Labor

Party. Dealing with Brian Burke

is like dealing with

poison. The political poison

also saw two resignations from

the Liberal Party over dealings

with Brian Burke and former

Liberal senator and powerbroker

Noel Crichton-Browne who worked

with Brian Burke. I think Labor

neutralised the Burke issue,

the Liberals haven't realised

it. I have a feeling, this is

my gut instinct that the

Liberal advertising

highlighting Burke is sort of

playing to their own audience,

not to the swinging voter or

people that might cross over.

From the public perspective

there's a bit of a pox on both

houses as far as actions and

dealings with Brian Burke

go. The Liberals have go. The Liberals have not

neutralised the Troy Buswell

incidents, snapping a bra and

sniffing the chair of a female colleague. Troy Buswell stood

aside for Colin Barnett, but

remains Shadow Treasurer. He's

on the front bench but not in

the campaign. Given the Liberal

Party's problems it's

surprising the Alan Carpenter

Government is considered

vulnerable especially since the

State coffers are State coffers are overflowing

courtesy of the WA mining boom

fuelling 6% growth. WA is a

boom economy, money is put into

infrastructure and development.

West Australians feel like the standard of health delivery and

the standard of public schools

have slipped during the course

of the Labor Government's term

in office, finding it hard to

reconcile with the fact that

the economy is booming. Opinion

polls and commentators are

divided. This election may not

be decided on the night. A hung

Parliament is not out of the

question. I suspect the Labor

Party will scrape home by less

than a handful of seats. I

could eat my hands Sat night. I

think Labor will win it

comfortably by 10 seats or

so. The Liberals need a 4% swing to

swing to win. A quick look at

the weather:

That's all from us, 'Lateline

Business' coming Um. If you'd

like to look back at the

interview with Penny Wong, or

review the stories or

transcripts, you can visit the

web item at

abc.net.au/lateline. Here is

'Lateline Business' with Greg Hoy. Tonight - joy for Hoy. Tonight - joy for home

buyers, but businesses plead

for bigger rate cuts Mine mall

is acceptable, is 1%. That

would be gat. Quarter of a

percent. I don't think it will

make any change in the

business. Feeling the pain with

insolvensies on the ruse, how

long before companies

experience the -- rise, how

long before companies experience the benefit of the rate cut. The rate cut. The impact and

beneficial result from the

back-end of that may take time

to be felt. Everyone is coming

out of that painful period. The

fall and rise of an icon.

Kodak's aggressive plan to

become a big player. Gory case

are in front of us. We've had

great days behind us, the new

glory days away head of us, we

are doing the right things, it

took longer than

took longer than

expected. First to the markets,

and despite being highly

anticipated. News of the RBA

rate cut pushed Australian

shares into the shares into the Red.

Losses in the mining sector

for the All Ords outstripping

gains in the banks.

ASX 200 suffering a similar

fate.Nikki shed nearly 2%

closing at a 5 month low.Hang

Seng advancing over half a per

cent, recouping earlier losses.

In London, the FTSE 100 is 19

points points higher.

Home buyers may be rejoicing,

not all businesses will benefit

from the Reserve Bank's first

cut in interest rates in seven years. The banks years. The banks moved as one

to cut mortgage rates, it's a

different story with business

lending. As reporter Andrew

Robertson discovered, there are

some doubts about how big big

the pen fit from a 0.25% rate

cut will be. George Kassab owns

a smash repair business in

Sydney's inner southern suburbs

and struggled under the high interest

interest rates, slowing economy

and rising petrol price. High

petrol price make the people

not driving, less cars on the

road, less smashes. We have to

cut staff. It's less work than

what we used to do

before. While George Kassab

welcomes a quarter of a per

cent cut in the cash rate he's

not convinced what it will not convinced what it will

achieve. Minimum accept is 1%,

that would be good. Quarter of a per cent, I don't think it

will make a change in the business. You'll see those parts of the economy associated

with the resources boom, mining

boom, WA out performing,

conditions won't be as weak in

the interest rate sensitive sectors. The reason the Reserve

Bank limited the interest rate

reduction to a quarter of a

consent is it remains consent is it remains concerned

about inflationing that:

The economy is facing

opposing forces. The terms of

trade is rising, business

investment showing strength.

For the Reserve Bank they'll

deliver another rate cut, but

after that it's a forecasting

game watching the data. One of

the weakest parts of the

economy is housing, where

demand has been flat for some

time. While the building

industry is relieved that interest rates are finally

coming down, it says the big

commercial banks need to play

their part in lifting demand

for new houses. We would be

hoping to also

hoping to also see independent

of the Reserve Bank reductions

decreases by the banks as a

result of less impact from the

subprime crisis, and the credit crunch. St George bank has

already made a start, cutting

its mortgage rate by 0.3 of a

per cent, 20 per cent more than

the Reserve Bank. the Reserve Bank. As for

business lending, two of the

big for, Commonwealth and

National Australia announced

they'll come down with the home

loan rates. Like other industry

groups the NSW business chamber

is hoping ANZ and Westpac fall

into line. We trust the banks

will do the right thing,

passing on the cuts. When there

are increases in the Reserve Bank rate they are quick to

act. In this case we trust they'll

they'll be quick to cut rates

as well. While pressure remains

on the banks to provide relief

for their customers, all eyes

are on the next Reserve Bank

Board meeting on October 7. The

impact of tightening credit may

create havoc for companies, but

proved a boom for one

specialist sector, the

insolvency business undergoing insolvency business undergoing

rapid growth. While

liquidations are throe, lenders

work hard to keep struggling

businesses afloat. Michael Troy

reports. As the global credit

squeeze tightens highly-geared

companies are left exposed like

the emperor with no close, last

week Centro Properties and

Allco revealed two of the

largest alsos in Australian

corporate history, a total of corporate history, a total of

around $3.5 billion combined. Those companies have

their own issues, and probably

to do with theiring and they

have a degree -- with their

gearing and they have a degree

of foreign debt a lot born out

of the US problems. Over all

Australian companies are doing

well, profits up. The period of

high interest rates had a big impact. When there's novts impact. When there's novts on

interest rates people's

decision -- movement on

interest rates people stall for

six week, given what we've been

through, it's like six

months. Peter White, runs

Avanti Commercial, a specialist

firm brokering finance for

business and commercial deals.

He says in the last

He says in the last two... I

think it's a great move. We

hope that the banks pass it on

to the consumers, and the

business houses. The impact and

the beneficial result are from

the back-end of that may take

some time to be felt, because

everybody is coming out of that painful painful period.

Figures from the corporate

regulator show that in July

this year about 1,250 companies

were placed in insolvency,

compared with 1,170 last year,

while the appointment of

external administrators is also

up about 100. Since July the

demand for insolvency

demand for insolvency and

litigation lawyers skyrocketed

as lenders signalled a change

in attitude. Rather than put

administrators in or

liquidators, we see a greater

willingness and desire to work

through the problems, find

alternative solutions and reconstructure. The managing

partner of dispute resolution

at Clayton Utz Stuart Clark

said they are putting together

a team to help companies

through difficulties. If you

liquidate the company, that's

the end of it, far better to

work with the cons, and try and

work your way through the

problems, keep the thing afloat

and you'll get a better return.

Lenders are far more sophisticated in how they are

dealing with the problems, they

can see merit in working with

companies to maintain the asset

values, and they can see that

as a better way to preserve

those assets and their own loan

portfolios. With interest

rates heading down, insolvency

practitioners say it could be

six months before substantial

benefits flow through to many

businesses. Apologies for the

audio problems in that report. Despite the cut in Despite the cut in interest

rates the local market closed

weaker indicating the rate cut

was already factored in. For

his view on the day's trading I

spoke with market analyst

Marcus Padley earlier

today. Marcus Padley, thanks

for joining us. OK Greg. What's

the interpretation put on the

Reserve Bank's rate cut

statement by the equity mark. The initial reaction

wasn't good, it was up 59 at

one point, closed down 2,

dropping 35 points after the

RBA statement. The general

impression is that it was not

as dovish as expected, in other

words the chances of another

interest rate cut were not

viewed as highly after the

statement as before, and you

saw that because bank bill

rates jumped up a little bit.

The Aussie dollar going up a

little bit. And overall it

looks like we are going to have

to watch the data come out from

now on to see if we'll get

another rate cut. Brokers are

looking for another rate cut in

November or by the end of the

year, but I think the

expectation that they were

going to give - tell us that

we'll see more interest rate

cuts this year wasn't there,

and on the back of that the

market sort of didn't take it

terribly well. Overall a

neutral meeting, I think it's

positive that this is the first

interest rate cut since 2001

and we should sit back and

enjoy that moment. By the way,

outline the other banks, have

immediately cut their rates by

the sounds of it, some by more

than 25 basis points. What is

hurting the big mining houses

today. I think that's just the

US dollar going up, US dollar going up, that really

isn't good news for metal

prices. They were all down

overnight. There are Chinese

manufacturing numbers out

yesterday causing the BHP and

Rio prices to sell off 4% in

the United Kingdom. That's

followed through a little bit

today. If you look at the metal

price, although, of course,

they - BHP Biliton relies on

coal and iron ore, and oil, but

if you look at the metal prices

trends are in the wrong

direction for the resource, and

I think they are being left

behind a little by the other

sectors of the market which

have been performing better

since the market bottomed. The

main problem is US dollar

strength making commodities

more expensive and commodities

less attraction. One difference

is Fortescue, why has it bucked. They are up

bucked. They are up 6%, putting

out an announcement 10 minutes

before the close telling us

that they have identified that

10% of their shares have been

shorted, in other words lent

out by the custodian of the

shares, which is not the

shareholder, it sounds as

though they do have a couple of

big shareholders, it sounds

like one of them is going to

the custodian and rectify the situation according to the situation according to the

announce ment which means, "You

can't lend our shares out any

more", presumably in which case

somebody has to short cover 10%

of Fortescue stock, it was up

6%, we'll see what it does

tomorrow. Marcus Padley,

thanks for joining us. To the

other major market movers.

Today's rate cut ensured the

big bangs were in favour. The ANZ

ANZ climbing 2% higher. Health

firms rose as investors tried defensive defensive movement.

Just Group daning 2.5%,

trading is suspended a head of

an acquisition by Solomon Lew's

Premier Investments, and

falling commodity prices hurt

miners. BHP Biliton dropping over

over 3%.

The Australian dollar tumbles

to a 12 month low.

Gold shed over 2.5%.after

Hurricane Gustav spared

facilities in the Gulf of

Mexico crude Mexico crude oil

slides. Staying with

commodities and Chinalco says

it's making up its mind on

whether to increase its stake

in Rio Tinto, the Chinese

aluminium giant said it may buy

more Rio shares under the right

market conditions but wouldn't

elaborate as to when that may

happen. Last month Chinalco won

Federal Government approval to Federal Government approval to

raise its stake to 15% and

BHP's record bit for Rio hit a

snag, with the European

Commission suspending its

investigation into the deal.

The regulator said it made the

decision after the parties failed to supply it with

information it had requested.

If you stopped to think about when the

when the last time you bought a

roll of film was, you may have some idea of the disaster that

has beset the once mighty Kodak

company or Eastman-Kodak as it

is known on the New York Stock

Exchange. So devastating was

the switch to digital in the

'90s, for Eastman-Kodak, it's

been battling to catch up

since, shedding 80% of its

value from June 30, 1998 to

June 30, 2008. This evening I

spoke with Jeffrey Hayzlett,

Vice-President and Chief Business Development Officer

for Eastman-Kodak, worldwide. Jeffrey Hayzlett,

thanks for joining 'Lateline

Business'. Thank you very much

for having me. Before we get

down to what your company is

doing right today, what went

wrong for the great Eastman-Kodak that we know so Eastman-Kodak that we know so well in Australia. Well, I

don't know what went wrong, I

would love to look like I used

to when I was 20, I can't look

like that any more, it's a

matter of just making a

transformation from a tradition

al company, once your father's

Kodak to a new digital company,

we like to refer to it as the

Kodak 20 taking the moments

that people enjoyed and really

making them a momentum. That's what

what is going on, a new Kodak

momentum. We took a little time

in getting it right, we are

doing the right things now.

What do you think, though, was

the lesson there, before we

hear what you are doing in the

digital world now, what do you

think was the lesson of all of

this. The lesson is to do what

we do well, that's at the crux

of material science and imaging

science. Kodak was 35,000

patent, we invented the digital

camera, we didn't bring it to market. We learnt to do the

right things, do the things we

do well. We have 19 products

accounting for 80% of our

revenue, all #19d are No.1, two

or three in the marketplace.

We are doing the right things,

it took longer than

expected. The aggressive turn

around plan, wasn't that easy a around plan, wasn't that easy a

road for you, what do you put

it down to. All good things

aren't easy, that's what we

learned through the process, we

spent a couple of billion

bringing a digital printing

side along with the traditional

prilent. Graphic communications

group is strong in Australia,

New Zealand and the Pacific

region, there's a lot of

different reasons, we've learnt

a lot of lessons, we call it a lot of lessons, we call it a

step and repeat. Doing is very well and repeat Territory

Government over and over. Kodak

-- repeating it over and

obvious, code cack has done it,

making pictures, take the Kodak

moment. We are doing it in the

business side. In that

transition you had to come up

against the tech sector

heavyweights, Sony, Canon, a

bigger challenge for you

there. Not really. They do what

they do well. We do what we do

well. Only Kodak can make,

manage and move images and

information, we do it in your

life and business. Today, about

65% of our business is about.

2 B. We have a strong consume

er brand, everyone knows Kodak,

it's one of the top three

brands, we are known in the

business with a B2b", with business with a B2b", with in

terms of film, imaging, film,

movies, we have tough go in

some areas, but we are slugging

it out with everyone else,

doing the right things. What

about profit margins, not attractive in the digital as

they were in film. In some

areas they are very well,

because in terms of the anuty

stream you get from digital

products, cameras and consumers

products aren't as good as all

of us would like them. They are

pretty good. We are in a quiet

period to talk too much about the profitability of the

company or earnings now,

overall, we have said we had a

plan that was aggressive, we

met the plan, we met it all

along, in some cases in terms

of revenue, top line, we see

high growth on the digital

side. It's growing 10%. The

plan going forward. Stay the

course. George Eastman said it

when he started in the 1880s,

you press the button, we do the

rest of the that's what we are

b we are coming out with

innovative products. This is

ZI-6, ham ra. HGV did. A, we ZI-6, ham ra. HGV did. A, we

are trying to prang things to

market that people are going to

-- bring things to market that

people want. Finding your feet

if digital imaging, what about

film, will you need film. You

always will, from a consumer

side of taking pictures there's

a lot of people that want to

continue to have that quality,

and also the archival ability

of film, that's underestimated.

It's great to take digital It's great to take digital

pictures, if you don't put them

somewhere and you lose the hard

drive, that CD you'll never get

those back. Motion pictures is

a big area for us, you know,

for 80 years the best pictures

have been done on Kodak film,

every best picture nominated

that wan an Academy Award is

done on film. These are places

we'll see film for a long time. You are time. You are suggesting

digital is the growth platform

for the future. Is there a

chance in the mainstream films

aside, for Eastman-Kodak, film

will be rendered reduntedant. I

don't know that it will be

rendered redundant. It's less.

If I ask you or audience when

was the last time you bought

film. A fair while ago. It's

been a while. If I ask been a while. If I ask if you

own a digital cam re, every

hand goes up. That's the

reality, I like to look like I

was when I was 20, I am not

looking like that any more, it

would be get. We'd like to say

film would be as much a part of

our lives, now it's a different

way, it's done digitally, we

accept that, most do, we have

moved on in terms of being the

leader, we are strong in that

Kodak brand, bringing it

out. You must feel the burden

of responsibility, there's a

lot riding on your shoulders as

building development manager.

Is there a chance of Kodak

returning to the glory days of

awe. We think we are in the

glory days, it's a new Kodak,

leaner in terms of the company,

a Kodak 20, making, managing

and moving images and moving images and

information. Our glory days are

in front. We've had great days

behind us, the new days are

ahead of us. Do you think you

can get the share price up to

$95 as it was in 1997. If it's

an indication of what we think

we can do we announced a

billion buyback of the stock,

that should give you

information as to what we think the future the future brings. Jeffrey Hayzlett, thank you very much for talking to 'Lateline

Business'. Thank you all. Well,

the RBA and the big banks were busy cutting interest rates

today, one of Australia's most

influential business leaders outlined some of the financial

difficulties facing the

corporate world. The outgoing

Lend Lease Chief Executive Greg

Clarke addressed a Sydney

business group and was business group and was upbeat

about Alice Springs's economic

future with a forecast that

rates could settle at around

6%. Desley Coleman

reports. Greek Clark is no

longer an ex-pat. Granted a

permanent -- Greg Clarke is no

longer an ex-pat. The 50-year-old Englishman

reflected on the lessons learnt

during his six years as Chief

Executive at Lend Lease, a

company that was at deaths door company that was at deaths door

when he took over in 2002. Same

event caused the extinction of

one corporate culture and a

renaissance of another. The

same event sponded to in

different ways allows

corporations to either go out

of business or reinvent

themselves. While Greg Clarke

rescued Lend Lease from a disastrous international

ex-pan, he is opt it can about

the economic complexities the economic complexities

Australian businesses are faced

with like rising import costs

interest rates and two-speed

economy. We have sign waves

moving around rather than lines

moving away. Things go up and

down at different paces. At

some point the boom will turn

into a bust. While the economy

is held up by the commodities

boom, a bust isn't a

consideration the industry is entertaining just entertaining just yet. June

Treasury figures revealed in

the current financial year

capital expenditure across 13

major resource projects will

pore 28 billion into the

economy. In 2009, 18 more

developments are planned worth

just over 86 billion. Today's

move by the Reserve Bank to cut

interest rates by 0.25 of 1% is the recognition the recognition that national

growth is being reined in. Chif

economist at nabCapital Rob Henderson says the mortgage

belt is responsible for the

majority of the slow down to

the economy. Anything to do

with the household sector is

weak. That's one of the subtle

changes in the Reserve Bank's

statement today, is that they

say that they expected

household demand will come off

and be weak. Rob and be weak. Rob Henderson

expects the push-pull of the

nation's two-speed economy to

condition with the urbanisation

of China and India, and expects

the RBA will cut interest rates

in October, taking a wait and

see approach. We see more rate

cuts in the first half of next

year taking the cash rate down

to 6% from its current rate of

7.25%. For the depressed

7.25%. For the depressed housing market Greg Clarke says

the rate cut is a psychological

comfort for investors, and

won't have a pivotal

impact. Once the economy

recovers, interest rates go

down, people are more secure

about the ability to put petrol

in the tank, bay the mortgage,

keel the job. We'll see a

recovery then. It's unlikely

Greg Clarke will be the boss of

Lend Lease when it happens, he

expect a replacement to be

announced as early as

February. The latest building

figures provided evidence of

the two-speed economy, high

interest rates deterring

potential home owners, there's

been a big are than expected

fall in building approvals.

Official figures show over

12,500 houses and apartments

were given the go ahead by

planning authorities in July, a

drop of 2.3% from the previous

month. Economists have been

expecting an overall rise of a

third of 1%. While the lion's

share of a big infrastructure

projects have been won by the

resource rich states, NSW today

secured a victory of its own

Virgin Blue locating its $10

million training and

maintenance facility at Sydney

Airport creating a thousand new

jobs. In an expansion of its

operations the site will be

home to a fleet of 20 new jets,

Virgin deciding to base its

international offshoot

Vaustralia in Sydney meaning a

third of its fleet will be

based in Australia's biggest

city. It made sense, we have

Vaustralia which we agreed to

establish here, that was the

right place for that airline

and the opportunities in

regional NSW excites us. And it

makes sense, therefore to put

the infrastructure where the

people and planes need to

be. But the news failed to

excite investors with Virgin

Blue shares closing 5.5% weaker

at 51 cent. A look at the

business diary tomorrow:

Before we go, a look at

tomorrow's newspapers, which

are dominated by today's rated

cut. 'The Age' says investors

are predicting a series of

interest rate cuts. The

'Australian Financial Review'

argues further reductions hinge

on key economic data, including

tomorrow's GDP figures. The 'Sydney Morning Herald' looks

at the pressure the banks are

under to cut their home loan

rates, but the Australian finds

another story, saying ABC

learning is planning to sack

1,000 of its part-time

workers. And that is all for

tonight. As I leave you, the

Dow Jones industrial average is

up 169, the FTSE 100 up 29.8.

If you would like to review any

of the program you can visit

our web site where you can

watch the program on line or

download it as a vodcast. I'm

Greg hoy, goodnight.Closed Captions by CSI.

THEME MUSIC In Australia, in the food business, two retail giants dominate the supply chain.

It's among the highest concentrations of retail power in the developed world. Last month, the competition watchdog delivered its report on grocery prices. It says the market's working.

We characterise it as workably competitive.

But there's another story that hasn't been told. It's about buyers, sellers and power and how Coles and Woolworths are squeezing more and more concessions from suppliers. It's extremely hard for a small supplier to do business with Coles and Woolworths. It's just almost impossible. Is it driving efficiency or threatening the food bowl? I am immensely worried about the ultimate destiny

of a lot of food manufacturers in this country. We're just a dying breed. Our use-by date's gone, you know? We're just finished. Tonight, Four Corners shines a light on the retail duopoly and asks, what's the price we pay? Australia is awash with supermarkets, more supermarkets per capita than America, nearly three times as many as Britain. And Coles and Woolworths own most of them. Together they control at least 70% of the dry groceries,

60% of the dairy market