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(generated from captions) rescue or the mock rescue of

Private Jessica Lynch from her

Iraqi captors. Well, this was

an extraordinary story and

another example I'm sad to say,

of how the press was used.

Jessica Lynch was a obviously

very brave woman but she was a

supply clerk in the army who

was severely injured and

captured in an ambush during

the early days of the war.

Within days of that we started

to see in the American media

stories that presented her a

cross between Audrey Murphy and

Rambo, this woman shooting her

way out of Iraqi captivity -

all of which as Lynch herself

would say some time later when

she had been rescued and

recovered, was false. She was

used as a symbol and to this

day we really don't know how

this story was manufactured, but it was definitely manufactured and it appeared in

places like the front page of

the 'Washington Post' and it

was all fiction. There are

other examples, too. The

famous falling of the Saddam

statue in Baghdad during the

liberation of Baghdad was

presented to the public as a

sort of spontaneous event

reflecting mobs of Iraqi people

joyously tearing down the

statue the way East Germans

tore down the Berlin Wall but,

in fact, Americans were involved, there weren't that

many Iraqis involved. Footage

that you can see there was

often not much shown on

television at the time reveals

that it was a small clump of

people in a largely deserted

square and it has the look of a

propaganda event. Why have

that propaganda event? To really buttress the

administration's claim that

Americans would be welcomed as

liberators. It was presented

at the time as if it were the

most historical event since the falling of the Berlin Wall by

the media. On the other hand,

the Abu Ghraib scandal emerged

as the result of a CBS TV

scoop. That's a fine example

is it not, of the media

continuing to do its job

properly? Yes. We're lucky -

Abu Ghraib is a horrible

incident in the history of this

war in American history in

general. But there CBS news

and Seymour Hearse of the New

Yorker were instrumental in

getting it out in spite of administration attempts to

clamp down on it and impugn the

patriotism of any journalist

who reported on it. If you

look at that point on the

reporting of the Iraq war to

this day, what we've seen is a

gradual unravelling of even this White House's tiebility

control all the news and all

the message. I started writing

my book precisely because I

realised that the curtain was

coming down, that they had lost

control of it towards the end

of 2005. There was just too

much bad news and it could only

be spun up to a certain point

and it was at that point that

the American public started to

turn on the war and realised

what the actual reality was as

opposed and artificial reality

this White House had tried to

create. You seem to have a

particular contempt for the

people known as the liberal

hawks. Describe if you can

their role in all of this as

you see it? I feel there was

something psychological going

on among what we call the

punditery, the pundits in Iraq

after 9/11, particularly my

generation, the so-called

boomer generation that came

through the '60s and was born

after World War II and there

were a shocking number of lib

rals who in my view, lost their

heads. I have to say, many

liberals including me supported

and war against al-Qaeda, still

do support the war against

al-Qaeda and the Taliban. But

some of these pundits sort of

didn't, signed onto Iraq

without really examining it

very closely and I think it's

an intellectual failure and I

think part of it was out of a

feeling that they wanted to do

something macho and they were

too easily led astray to

conglat al-Qaeda with Iraq and

I think history will looking at

it for some time. Almost

without exception all these

liberal hawks would turn

against the war, some of them

earlier than others. But a lot

of them would like to also

shirk, walk away from their

history and I think we have to

question their judgment going

forward and I feel strongly

about it and have written about

it in my book and where

else. Let's finally talk about

the consequences of all of this

because you conclude that

President Bush lost the war of

ideas and the propaganda war,

handing a victory to al-Qaeda,

not only a propaganda victory

but giving them a new training

ground and a new cause in

Iraq? I think it's tragic. I

think al-Qaeda is a serious

enemy to civilisation,

including America, civilisation

everywhere throughout the

world, that we, the whole world

and the whole United States was

united after September 11, or

most of the world anyway, in

imposing this enemy and rallying behind America in what

was largely perceived to be and

was a just cause to knock out

this government in Afghanistan

that had sheltered these

terrorists. Now look at where

we are these years later.

Al-Qaeda is reforming. The

Taliban is resurgent again in

Afghanistan. We never got

Osama bin Laden. The 'New York

Times' recently ran a story the

past couple of days that

al-Qaeda is reforming many of

its networks out of Pakistan.

And at the same time, we've

degraded Western values,

whether it be by our treatment

of prisoners at Abu Ghraib or

the denial of rights to

detainees in George Best, we

have just failed at the most

basic mission of upholding

American democratic values and

for that matter, international

democratic values in our

prosecution of this war. And

we've empowered Iran. It's

hard to imagine how it could

have gone worse and it's a

tragedy of history that we've

all had the misfortune to live

through and sadly, it's not

over yet because we're going to

be paying the price for years

if not decades to come. Frank

Rich, a very bleak picture you

paint but we thank you very

much for taking the time to

come and talk to us tonight on

Lateline. Thank you very much.

To the real Hollywood now and

the drought's finally broken

for veteran film director

Martin Scorsese after years of

being overlooked he's managed

to pick up two Academy Awards

with best director and best

picture Oscars for the violent

thriller 'The Departed'.

Australia picked up just one

gong with George Miller's

dancing penguin movie 'Happy

Feet' winning best animated

reports. feature. Anne Maria Nicholson

It was third time lucky for

George Miller, whose foray into

the world of animation scored

him Oscar glory for 'Happy

Feet' after two previous

nominations. I asked my kids,

"What should I say?" They

said, "Thank all the men for

wearing penguin suits. "

'Happy Feet' was largely made

at Sydney's Fox Studios and

became a worldwide box office

hit grossing more than $360

million. George Miller made

his name with the Mad Max

movies and 'Babe'. He said

Australia was no longer on top

of the film game. There's not

the talent coming out of

Australia that's coming out of

Mexico right now. This year's

Academy Awards were noticeably

more international with a trio

of Mexican directors making

their mark. But the night

belonged to Hollywood veteran

Martin Scorsese. Could you

double-check the

envelope. After being

overlooked five times before,

his mobster thriller 'The

Departed' won him the double,

best director and best picture.

Helen Mirren joined Hollywood

royalty winning best actress.

Prompting the British star to

pay tribute to the woman she

portrayed, Queen Elizabeth

11. If it wasn't for her I most

certainly would not be here.

Ladies and gentlemen, I give

you the Queen. And Forest

Whitaker won best actor gold

for 'The Last King of Scotland'

for his portrayl of Ugandan

dictator, Idi Amin. Jennifer

Hudson danced to victory for

best support ing actress in 'Dreamgirls' leaving Cate

Blanchett's sole appears on

stage to present the award for

best foreign language film to

the German film 'The Lives of

Others'. Al Gore's film 'An

Inconvenient Truth' won best

documentary with filmmaker

Davis Guggenheim. While

Australians were thin on the

ground among the prize winners,

they cleaned up in the glamour

stakes. A quick look at the


That's all from us. Lateline

Business coming up in a moment.

If you'd like to look back at

tonight's interview with - I'd

forgotten his name - Frank Rich

is the 'New York Times'

columnist or review any of

Lateline's stories or

transcript, you can visit our

website and now here's Lateline Business with Ali Moore. Thank

you, Tony. Tonight, clipping

JetStar's wings - court action

clouds the $11 billion private

equity bid for Qantas. It can't

have been the intention of the

Sale Act to simply allow Qantas

to transfer its business into a

subsidiary. Servicing a niche -

the challenges of global

warming to provide a boost for

Transfield. And, Australia's

biggest steelmaker says the

current debate over carbon

trading misses the point. We

understand the debate about

taxes which may line the

pockets of government. We

understand the argument about carbon trading but at the end

of the day they don't solve the

CO2 issue. Straight to the

markets, where gains by miners

and the Coles group more than compensated for Telstra going

ex-dividend. The All Ordinaries

extended its record run closing

the day 13 points higher. The

benchmark ASX200 also finished

in the black. In Japan the

Nikkei reversed earlier losses

adding 27 points. Hong Kong's

Hang Seng dropped more than 200

points and the FTSE is higher

in early trade. We'll cross to

London later in the program.

Politics, unions and the law

have combined to throw up a new

challenge for the private

equity consortium bidding for

Qantas. The Prime Minister has

spent the day trying to

disentangle politics from the

sale which he says is not a

matter for Government as long

as it follows the law. But the

airline's pilots argue

JetStar's international

operation is illegal and

they're taking their employer

to court to ensure compliance

with the Qantas Sale Act.

Phillip Lasker reports. The

private equiteers have big

plans for JetStar - they want

to expand its international

operations but the pilots'

union fears that expansion

might come at the expense of

Qantas. The Qantas Sale Act

which protects some Australian

jobs, prevents the carrier from

operating an international

service under another name.

But Treasurer Peter Costello

has said the legislation does

not apply to JetStar. It can't

have been the intention of the

Sale Act to simply allow Qantas

to transfer its business into a

subsidiary and thereby avoid

the Sale Act. That's the flaw

in the Federal Government's

position. That's what needs to

be enforced. The pilots want

the Federal Court to declare

JetStar's international

business illegal, forcing

changes to the legislation - a

strategy that found some

support in Canberra. It's a

ridiculous loophole that this

doesn't apply to JetStar and

Family First will be introducing legislation this

week to change the Qantas sales

Act so it also applies to its subsidiaries like

JetStar. There was less

sympathy among some analysts,

who say that attempts to shove

people and resources into

structure would have its JetStar's cheaper cost

limits. To the extent that that demand is out there then

there's a basis to grow the

JetStar business but you can't

just willy-nilly at

management's whim grow that

business if there isn't a

demand out there. But none of

what's been said has surprised

investors, who don't see this

legal bid as a deal-killer even

though JetStar's international

expansion is a key element of

the private equity plan.

Qantas shares finished 5 cents

higher at $5.21 and some

analysts believe there's a lot

more to the bid than trfrg some

of Qantas's operations to

JetStar and selling it

off. That presumes, for

example, that there's a higher

price to be had for those

assets than the one that the

consortium is currently paying.

If that were true to the case

then somebody should come forward with the bid for Qantas overall. But the Qantas share

price remains below the private

equity office of $5.60 because

investors see an element of

risk even though

today's'Financial Review'

described a lower level of risk. Can the Prime Minister

explain how he will not be

making a decision until he

received advice from the

Foreign Investment Review

Board, how is that statement

consistent with the Prime Minister's statement in the Australian'Financial Review'

that he backs the review? That's what the

headline said, I didn't say

that. Just another day in a

saga promising many more

headlines. Indeed it is.

Strong demand for steel

products in the construction

sector has helped Bluescope to

a 24% rise in first-half profit

to $388 million. The steel producer increased sales

volumes and prices which more

than offset the higher cost of

raw materials. The company

expects prices and earnings to

weaken in the current half. Bluescope currently earns two-thirds of its income in

Australia, while the US

accounts for just under 20% of

profit. And we'll speak with

CEO Kirby Adams about the

result and the ongoing battle

with the country's other big

steel players, OneSteel and

Smorgon later in the program.

Merger talks and takeovers have

also been playing on the minds

of CEOs in the health care

sector. Ramsay Health Care

delivered a solid half-year profit today and chief

executive Pat Grier is looking

at all avenues for growth in a

rapidly expanding industry.

Brigid Glanville reports.

North Shore Private Hospital in

Sydney is one of the country's

busiest and could soon be a

whole lot bigger if Ramsay

Health Care has its way. The

company will spend $400 million

expanding existing hospitals,

including Westmead private in

Sydney, John Flynn on the Gold

Coast and Joondalup in Western

Australia. Driving growth is a

rise in day surgery procedures

and an ageing population. The

second wave of growth is, in

fact, our brownfield sites.

The Brownfield sites we see as

providing growth of about 15%

return on investment over a

number of years going forward.

We've got over d 400 million of

fire power to be able to bring

onto line. Ramsay Health Care

announced a half-year profit of

$56 million up 22% on last

year. The company will lift

the interim dividend 24% to 13

cents per share. The result

was boosted by the integration

of affinity hospitals which it

bought in 2005. We see this as

very much a consolidation year

of bringing the Affinity

purchase to reality. Despite

the growth there was fall in

cash flows. This came mainly

in Queensland, where there has

been a massive jump in nurses

wages and the company lost some

of its veterans' affairs

business to other providers.

But Ramsay Health Care says

this cash flow decline won't

affect full-year results. The managing director of Ramsay

Health Care Pat Grier added to

market speculation the company

may be looking at further

acquisitions. He said if a

business such as Symbion health

was for sale it would be

interested. Analysts also say with Australia's ageing

population, expansions would

benefit Ramsay's bottom

line. The next 12 months or so

we'll see the last of the

Affinity acquisitions

contribute to Ramsay's growth

but beyond that they've got to

build the growth now, open new

boards, new theatres -- new

wards, more theatres attract

more patients and doctors. Competition concerns

in some regions of Australia

now means Ramsay must look

overseas for growth. It's now

looking to build on its small

presence in Indonesia. Brigid

Glanville reporteding. In its

first earnings announcement

since listing on the ASX, Dyno

Nobel has posted a full-year

profit of $106 million. That

was just below market

expectations, but the world's

second biggest explosivemaker

expects continued growth on the

back of the mining boom. 85%

of revenues come from the US

and the company is looking to

diversify in the Asia-Pacific

so that by 2010 half of sales

come from outside North

America. Dyno Nobel declared a

maiden dividend of 2.8 cents.

Its shares closed 10 cents

higher at $2.45. To other

major movers on the market

today and mining and energy

stocks were behind the day's


Well, trading is well under

way in Europe and joining me

now is Justin Urquhart Stewart from Seven Investment

Management. Justin, nice to

talk to you once again. Rising

tensions over Iran are pushing

the FTSE higher today? Yeah,

they are indeed. The FTSE 100

is heavily dominated by oil

companies and the miners. As

you were saying a few minutes

ago exactly the same is

happening in London. We're

seeing concern over Iran and

whether it might go further.

It's pushed enough to get the

FTSE moving up. 0.5% overall. Similar pictures throughout

major markets in Europe as

well. Coleberg Kravis Roberts

the private equity group is in

the headlines again. They made

a spurned offer for the Coles

group. Are they having luck

there? You have to look at the

financial 'Times' in London

today talking about how

thinking these deals are

getting. KKR they were the

barbarians at the gates that

have almost gone into city

history now, talking here about

our $44 billion deal they might

have able to do for the US

energy company. Just about any

company in the FTSE 100 could

be a target at that sort of

scale. The power private

equity is enormous here. If

that deals gets the go-ahead

from the big utility company

and it's worth around $40

billion, where would that leave

KKR, plenty more fire power if

they wanted another tilt at

Coles down here? It's

interesting. KKR themselves

don't have to have the fire

power themselves. They can

bring in other people as

they've shown an amazing

ability to do so. People like

to join in what they perceive

to be a winning team and KKR

don't often get it wrong. They

are very professional

barbarians. I wouldn't be at

all surprised. Equally I

suspect there may be others

wishing to have a go at Coles

as well. There might be a few

lining up very quickly and finally, outlook for Wall Street? Pretty flat I think

overall. Big stats coming out

later this week. Today lower

but not much movement. Justin

Urquhart Stewart once again,

many thanks for joining us. On

the currency market the

Australian dollar is at a

1-month high having broken

through the US 79 cent barrier.

In a bid for certainty the

heads of Australia's energy

companies are now embracing the

idea of carbon trading. Any scheme should encourage

billions of dollars in

investment as companies move to

cleaner technologies to cut

emissions. That prospect

presents a real opportunity for

engineering service companies

such as Transfield which today

tabled a big jump in operating

profit, while promising an even

better performance in the

second half. Andrew Robertson

reports. As the world

struggles to come to grips with

global warming, the coal oil

and power industries are among

those in the spotlight for

their contributions to

greenhouse gases and for

Transfield Services that's not

necessarily a bad thing. We're

in a strong position to be able

to participate in one the

discussion, but two, the

opportunity to do the repair

work or the upgrade work that's

required to keep the lights

on. Transfield Services provides operations,

maintenance and asset and

project management services

across a broad range of

industries in Australia and

around the world. In the last

year it's made a big push into

the United States and Canada.

Increasingly its expansion has

been in oil, electricity and

water and when the time comes

for plants to be upgraded and

modified to meet emission

targets Transfield services

will be well-placed to do much

of the work. We're in a strong position, I think. We've got

great people, good access to

good clients on a global basis

or good suppliers on a global

basis to participate in this,

so we see it as an opportunity

going forward. Global warming

also presents some challenges

for Transfield, though. It has

the contract to clear snow in

places such as New York where

up till this weekend, winter

temperatures had been

unseasonably hot. Whilst global

warming does have a sense of

being increasing temperatures

on a global basis it is also

increasing erratic weather.

I'm not worried about the snow

business but it might be

erratic. Transfield's first-half earnings were down

6%. thanks to an accounting

change forced by the switch to international standards.

Without that, earnings would

have risen 27% to $31 million

on a 19% increase in revenue.

Adrian Lemme covers Transfield

Services for the Commonwealth

Bank's share trading arm ,

CommSec. It was a strong

underlying profit result.

Operating profit was up 55% and

that benefited from strong contributions from acquisition

s that Transfield Services has

made including US maintenance

last year. It was, however,

impacted slightly by a fall in

New Zealand earnings, but that

was expected. As Transfield

Services continues to focus on

the services side of its

business it's planning to put

its infrastructure assets into

a separate vehicle which could

be floated on the stock market.

In the current heady climate

for mergers and acquisitions

it's no surprise that private

equity groups are keen to be

involved. We have got a very

strong set of assets. They're

long-term contracted revenues.

They're very strong assets as

far as performance, as far as

the condition of them. They're

relatively new. They are very

attractive assets for a whole

range of people and yes, we

have had people knocking on our

door. The market liked what it

heard from Transfield Services

today, its shares up 5% to

$11.45. Back to the steel

industry now and that 24% rise

in first-half earnings from

Bluescope. The profit comes as

Australia's steelmakers attempt

to restructure, with Smorgan

Steel trying to merge with

OneSteel. Bluescope has bought

itself a seat at that table

with 20% of Smorgans. Its

opposition to the merger saw

the two would-be partners

abandon their merger plan A and

they now have a Plan B before

the competition regulator. But

Bluescope is still not happy

with the merger terms and

that's one of the issues

occupying the mind of the

company's CEO Kirby Adams as he

prepares to leave his job by

the end of the calendar year.

I spoke to Kirby Adams earlier

this evening. Kirby Adams,

welcome to the program. Thank

you. A first-half result you're

very happy with, but the first

six months of the year is traditionally better than the second. The first few months

of the current half, how's it

looking? Up to expectations, we

always have a bit of a seasonal

slowdown in what we call our

fiscal third quarter largely

because here in Australia, of

course, the month of January

not much happens in the

building trades and in North

America where we have a over $1

billion in preengineered steel

buildings we get caught up in

the snow season. That has a

dampening effect.

Traditionally this would be a

slower quarter than most. Let's

put the two halves together and

what's the full outlook? We'll

have a good year at Bluescope

Steele. The first second won't

be as strong as the first half

but the company's in great

shape and the pleasing thing

about the first half

performance Ali is that it was

consistent across all parts of

the business. We had sales revenue growing in Australia,

New Zealand, Asia up 46%, up

more than 15% in North America

and improvements in

profitability across the board.

So a really strong result and

good momentum in every one of

our businesses. So with that consistency you're still not

confident enough to put a

number on the full year? No,

no, no. That's why there are a

lot of analysts out there all

working on that and to borrow

an expression from Chipp Good

year, we make great steel

products but we're not in the

business of crystal

balls. You've offset costs with

higher sales and volumes, can

you offset that in the second

half? The issue we were

confronted with in the last six

months was higher iron ore

prices and higher zinc

costs. None of that is going to

change? Those added about $200

million to our cost structure

in the six months just

finished. Certainly iron ore

costs are going to continue to

go up next year. Those have

already been settled but pleasingly from our point of

view coal costs will be going

down in fiscal 2008 and the net

effect of that is for the first

time in five years our steel

making raw material costs are

actually going to decline 6% next year. So that's

encouraging for us. You've got

very strong cash flows, the big

spending on many of your green

fill projects are starting to

slow, your gearing is down.

What are you going to do with

all the money? This is exactly

according to plan and we are

really pleased with the

operating performance of all of

our businesses in the last six

months. As you mentioned our

cash flow from operations was

$752 million for the period.

With that cash, of course, we

finished up our Greenfield and

brownfield capital expansions.

That afforded the opportunity

to spend $320 million to buy a

20% stake in Smorgan Steel. Are

we looking at a special

dividend, another

acquisition? Right now, of

course, we're strengthening the

balance sheet of Bluescope

Steele to give us the

capabilities to be able to grow

and at the same time take care

of shareholders. Strengthening

the balance sheet, I'm assuming

you're keen to take part in the

OneSteel Smorgon

restructuring? Bluescope has a lot of significant capital

expenditures in front of it.

The reline of the number five

blast furnace at Port Kembla

which we debtored from

September 2007 to March 2009 is

more than a $300 million

project. We have to keep cash

squirrelled away for

that. That's not a huge

amount? It is in the context of

other capital spending going.

We have a mid-stream project in

India, a potential project in

Indonesia that's still under

consideration. Before we look

at all those issues, how much

then could you spend on ab an acquisition whatever it might

be? It depends on what the

nature of the acquisition might

be. Bluescope's enterprise

value as we sit here today is a

little over $9 billion

Australian. We currently have

borrowings of $2 billion, so

the borrowing capability of the

company, particularly on the

back of the kind of results

that we've demonstrated in the

last six months is quite

substantial. If indeed we found one that was particularly

attractive to us. Let's look at

I suppose in the context of

what could be potentially

attractive acquisitions the

proposed merger between

OneSteel and Smorgon, you're a

20% shareholder in Smorgon as

you said and you didn't like

plan A for their merger. Plan

B is under way and awaiting

ACCC approval. Do you like

Plan B? Certainly from our

point of view Plan B is a

better outcome. You might say,

why is that? Especially as plan

A does not need your

approval? The original scheme

of arrangement Bluescope's

assured outcome of that was

nothing. Under Plan B and

subsequent to our acquisition

of 19.9% of the Smorgon Steel

shares under Plan B we are

assured of owning 19.9% of the

listed distribution business as

well as becoming OneSteel's

largest shareholder with a

holding of just over 5%. So

under Plan B Bluescope is

assured a seat at the table in

the restructuring of the

Australian industry. Do you

support it? We think there are

still some issues with Plan B.

Smorgon and OneSteel are well

aware of our issues and we

actually believe that a more sensible restructuring of the Australian steel industry is

likely to result. What is a

more sensible restructuring,

because you want a seat at the

table, clearly you want to be

part of this but you've never

publicly specifically said what

you want that would make this

merger acceptable? I understand

that from your point of view

and perhaps your listeners, but

there's no question our desired

outcome is clear in the minds

of Smorgon and OneSteel. Is it

more than just the distribution

assets? S that complicated

enough discussion to have

across three companies without

carrying it on across the

country. The point is to talk

about our first six-month

results, which are just

terrific. This is clearly part

of your strategy for the future

and you have a lot of money

tide up in your development in Smorgans, it's relevant

question to ask. Let's say you

end up with 6% of OneSteel and

20% of the listed Smorgon

distribution business, will you

hold them? That's a hypothetical question and we

have to get through Plan B

first, don't we? Do you think

it will get through the ACCC? I

don't know, I can't

second-guess the ACCC and I

won't. A deal with the NSW

Government would mean that

Bluescope steel would be

exempted from any carbon tax in

NSW if you built a gas

co-generation plant at Port

Kembla. If you didn't get that

sort of guarantee would you not

even consider that sort of investment? Well, what's really

required and this is what we in

the NSW Government came to

agreement on last November was

that in order to make what is

effectively $1 billion worth of

capital investment at the Port

Kembla steelworks over the next

three years it's very very

important that that be done

against a backdrop of some

regulatory certainty. Does that

imply that you do believe there

will be a carbon tax in

NSW? Really I don't know and

ultimately that will be up to

the people of Australia and the

elected officials and I think

this is one of the refrains

that people are now

increasingly hearing from

business in Australia is, you

know, investment likes

certainty and in order for

companies like Bluescope to

move forward with a $1 billion

investment in a place like Port

Kembla we need to do it against

the backdrop of some certainty

in terms of regulations. How

big an issue is this for your

industry generally? The fact

that you've got a Federal

Government apparently pursuing

one strategy, State governments

apparently pursuing another in

terms of carbon trading and any

potential carbon tax. How big

an issue is the lack of

at the end of the day someone certainty and unity? Ultimately

will have to prevail in this

but I'd like to just make the

point, we understand the debate

about attaches which may line

the pockets of Government. We

understand the debate about

carbon trading which may line

the pockets of traders or

bankers but at the end of the

day they don't solve the CO2

issue, so this company of

engineers is really saying,

it's fine that all that debate

go on, it's fine that taxes or

trading be set up to be a

financial incentive for

companies to take action. But

what we're really focussed on

as an organisation is the science and the technology and

the engineering that will

actually manifest itself in a

changed CO2 outlook. A

financial enincentive or a

waste of time? You were saying

it lines the pockets of

governments and bankers. They

have to work to deliver the solution that the planet wants.

If the politicians or people

generally believe that taxes or

other trading incentives will

get business to that point

sooner and more efficiently,

then fine. But at the end of

the day someone really has to

come up with the technical

solution. That's really what

we're focussed on is how can we

change the processes in the

global steel industry, because

this is a global problem, to

change our CO2 and other

emissions profile. That's what

we're focussed on. Kirby Adams

thank you very much for your time Ali, thank you very much,

enjoyed it.

The AMP will pay the Australian

Agricultural Company $10 million to settle a

long-running dispute over the

sale of Stanbroke back in 2003.

They claimed the sale process

was unfair and the tender

process flawed. The settlement

is less than one tenth of the

sum sought and AMP is not

admitting liability, insisting

all bids were appropriately

assessed. Now to tomorrow's

business diary where profit

announcements dominate once

more. Woolworths releases its

first-half earnings. I'll

speak to the retailer's new

boss on tomorrow's program,

Michael Luscombe.

Before we go, a look at

what's making business news in

tomorrow's papers. The 'Age'

examines Coles's chances of

finding a buyer willing to pay

more than the $18 billion

offered by KKR last year. The

'Australian' looks at the

ground rules of an open auction

for Coles. The 'Australian

Financial Review' says a skills

crisis is set to become a key

election issue. And the

'Sydney Morning Herald' leads

on BlueScope Steel's results.

That's all for tonight. The

FTSE is up 38 and the Dow

futures are up 41. I'm Ali Moore, goodnight.

Closed Captions by CSI.