Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Disclaimer: The Parliamentary Library does not warrant the accuracy of closed captions. These are derived automatically from the broadcaster's signal.
Lateline Business -

View in ParlView

(generated from captions) after a car being chased by

police slammed into another

vehicle in Canberra. The

shocking accident prompted

calls from civil liberties

groups for a moratorium on

police pursuits. But

Australia's national Police

Union says that new technology

and not fewer pursuits is the

key to making police chases

safer. What if you could do

this instead of this? Or this?

Instead of this. The new

technology includes darts with

tracking devices which are

fired on to vehicles being

chased by police. In theory,

the police can then back off

from high-speed chases while

still keep ing track of the car

and make the arrest later. The

high-speed pursuit become ing s

a solicitorer more deliberate

interdiction polle policy. The

rudiments are in place and it's

shimply a matter of police forces in Australia work ing

with manufacturing to -

manufacturers to ensure we have

the best possible equipment to

deal with what is clearly a very dangerous operational decision. The Police Union also

wants car radio systems

developed to allow police to

cut into civilian radio

frequencies to warn drivers

about police pursuits. And live

video feeds from police cars

which can be monitored back on

base to help police make

decisions about who to follow

and when to pull out. If a video is being broadcast

real-time back to a police

communications centre surely

that would give someone who is

one step removed from the

actual incident the capacity to

make decision. The NSW Police

Minister says that 95% of

police pursuits in his State

end without incident. And it's

too early to take the new

technology on board. Some of

the technology is federation is

calling for is simply not

available in Australia. I it

hasn't been tried or tested .

We don't think it would assist

the police in any way. Criminologist Ross Homel

says that about 200 Australians

have been killed in police

pursuits during the past two

decades. And one-third of those

killed have been innocent

bystanders. He argues that new

technology could make police

drivers more accountable but

says most police pursuits are

too dangerous and not worth the

risk to public safety. It's

very rare at the end of a

pursuit and whether the

offendser is apprehended for a

serious crime to be uncovered.

It's simply a vanish ing ingly

small percentage of cases. The

majority are traffic offence,

driving unlicenced or driving a

stolen vehicle But the Police

Union says there are already restricts on police purr suits

across the country and if if police don't respond

immediately to a chase the

ofepd lers get away. How are

you going to go know offences a

person in a car that is fleeing

from the police might be

involved in. Who is to say that

a person doesn't stop at a

random breath testing station

serious offence like a has not been involved in some

murder. We can't arrive at a

position where we sfruct st

police not to pursue vehicles

that have done the wrong thing.

To do so would simply be - to

invite offenders to flee by car

without any prospect of being

arrest and of course that is

ridiculous. Criminologist Ross

Homel disagrees. The limited

impeerical evidence we have

from the United States where pursuits have been greatly

restrict and the number has

fallen radically is that

there's been very little

increase in crime. In fact no

increase in crime. The police

Federation is also calling for

ambulance and fire brigade s to

be involved in testing the new

pursuit technology to make

high-speed driving safer. The

details are still being worked

out but in New Zealand Maori

are cautiously welcoming an

historic deal with the

Government to grant customary

title over some sections of the

nation's foreshore and sea

beds. It overturns a law that

had previously extinguished

Maori rightings to test customary rights in the court.

This is where it all

started - the pristine

coastline on the top of New

Zealand's South island. It was

here that the Marlborough

district council refused to

allow a Maori to muscling farm

in an area where they

traditionally fished. A test

case ruled Maori were entitled

to be heard but in 2004 the New

Zealand Government moved

quickly to introduce a law the

foreshore and seabed act to

stop Maori making further claims. It's important for

nation to settle these issues.

So it does not remain as a

weeping sore that would have to

be addressed at some stage by a

future government. The different government influenced

by the powerful voice of the

Maori party has struck an

historic deal. A proposed new

law keeps the foreshore open to

the public that paves the way

for Maori to claim customary

title either by negotiation or

in the High Court. It's a good

day for the Maori party. We

came into Parliament saying we

would seek repeal of the

foreshore and sea Bed Act. We

have done that now. Many Maori

are careful about celebrate ing

just yet. It's probably not the

ideal outcome that we were

hoping for. But at the end of

the day it's the best deal

that's d - that we have on the

day. Under proposed law, Maori

will have to prove they've

occupied an area of coastline

continuously and exclusively

since 1840. In marl

breakthrough, tech tack Lote

Tuqiri says's just the

beginning of complex and

fraught negotiation an court

patles. There are some issues

outstanding and they were

around the current ownership of

the foreshore and seabed that currently sit in private hands.

Not only in the private hands

of non-Maori but also Maori. I

think that the ownership issue

as it stands at the moment is a

question that still needs to be answered. The business lobby

says that could also mean investment in coastal

development is deferred. The

legislation is still to be

drafted then a parliamentary

committee will examine the

detail, but New Zealand's Prime

Minister, John Key, says he is

committed to making the new

deal law by the end of the

year. Inspired by apop liptic

fire and corruption, the crime

writer Peter Temple has tonight

won Australia's most respected

literary prize, the mile mile

Award. The - Miles Franklin

Award. He won for his novel

truth, the sequel to 'The

Broken Shore'. 'Truth' draws on Victoria's Black Saturday

bushfires as the setting for a

story about murder and

betrayal. Absolutely thrilled.

Totally unexpected. Absolutely

thrilled. I think to find

myself joining Patrick White

and a lot of other great names

is something that never crossed

my mind would happen. The Miles

Franklin judges say 'Truth'

fuses an exhilarating complex

crime narrative with lives

broken, patched and tested

against the background of the

bushfires. Peter Temple's nof

el was one of six books shorts

listed to the prize. Now for

the weather - shower or two in

Sydney and Perth. Morning frost

and fog in Canberra, Melbourne

and Hobart. Dry in the other

cities. That's all from us .

Lateline Business coming up in

a moment. If you would like to look back at tonight's

interview with Raspal Khosa or

review any of Lateline's

stories or transcripts you can

visit our website and follow us

on Twitter an Facebook. Now

Lateline Business with Ticky Fullerton. Thank you, Leigh.

Tonight, losing the farm -

Elders share price halved after

a major profit downgrade. I

certainly have had messages

from shareholders, not just

today but previously around the

fact that we seem to be a bad

news company rather than a good

news company. Blue skies ahead

- commodity export forecasts up

by nearly 25%. A lot of farmer

sentiment is broadly driven by

the weather, particularly on

the east coast in WA thinking

have been a little bit mixed

but on the east coast in

particular the weather and the

start to the season has been

tremendous. And overriding

concerns about the super

profits tax - China signs on to

more deals with ensure energy supply. Providing they're

making some money out of the

development of the prospects,

they will be more focussed ob

getting access to the resource.

First to the markets and

reflecting Wall Street's

negative side, the All Ords

sagged finishing 1% lower. It

was the same story with the ASX

200. In Japan, the Nikkei lost

over 1%. The Hang Seng closed

lower and in London the footy

is down more than 1% and we

will cross to London shortly

for the latest analysis on the

UK emergency Budget. The CEO of

rural services group eld ers

has apologised to shoal aefrs

the company substantial ly

downgraded its forecast, auz

'causing the share price to

plummet by nearly half. Low

prices for farm supplies are

being Plamed for what is

expected to be a substantial

loss for the year. Jane Cowan

reports. A downgrade was always

on the cards for Elders but

nothing like this. This is

going to go to public air TV so

I don't think you want to hear

what I think about that but it

is disappointing. The rural

services group is now

forecasting a full year loss of

between 8 and 14 million

dollars for the 12 months to

the end of September. Rather

than a previously forecast

profit of more than $55

million. The market reacted savagely, slashing the

company's value almost in half,

with share s closing at a

record low of 44 cents. CEO

Malcolm Jack man could only say

sorry, conceding the company

was developing an unfortunate

reputation We over promise and

underdeliver and that's not

what any CEO want s to. Do I certainly have had messages

from shareholders not just

today but previously around the

fact that we seem to be a bad

news company rather than a good

news company. That is not a

nice position to be in but we

have to deal with the reality

of what we're doo dealing with

here and we need to take

actions which we are doing to

rectify that situation. Those

actions include a $45 million

cost cutting program, the work

force will be cut by 10% which

means 250 people will lose

their jobs by Christmas through natural attrition and performance management. There

is always those that are not in

the first 18, so to speak, and

those will be the people that

we will be targeting, those at

the lower end in terms of

performance so either step up

to the standard we're looking

for or let's think about you

working for some other

organisation other than elders. Senior executives are

not immune. Elders is promising

a leaner management structure

with the chief operating

officer and the head of the

company's Australian operations

both to go by the end of the

movement It's certainly not a

good situation no matter how

you look at it and there is no

silver lining in this dark

cloud. One of the things they

have been very keen to make

very well known is that their

banking kof Nance are not in -

jeopardy at the moment. The company will progress and it

should continue on. Elders

emphasise s its balance stheet

is strong with cash and

available credit totalling $110

million as at the end of May.

More generally analysts say the

weather has been favourable for

the agribusiness sector. We've

had a reasonable season,

certain ly here on the south

coast and in the West Coast

we've had a belated season that

is doing OK. There's obviously

some concerns with prices with

broad acre crops. But overall

we're doing relatively well for

this time of year. The industry

will be hoping Elders is the

exception rather than the

norm. And Elder s will be

hoping the only way is up. Now

for a look at trade tong local

market, earlier I spoke to

Padley at Paterson

Securities. A disappointing day

after so much promise

yesterday. What happened? I

think the enthusiasm for this

un pegging of the Yuan against

the US dollar ran its course

yesterday and I think the

realise sation that the Chinese

banks are buying the US dollar

betting against it. There was

also some scepticism about how

quickly they will revalue the

Yuan and it might be a ploy

ahead of a G20 meeting. So all

that enthusiasm we had some

really big moves in iron ore

stocksid. All the bulk

commodities stocks on the idea

the Chinese won't worry about

price if the Yuan is way up

there. That had driven things

yesterday or just completely

faded away today. We wait to

see on the Yuan but that was

the factor today. The falls

were across the board. What was

going on in banking? Most of

the banks down 1.4 to 2.2%.

Accounted for most of the fall

on the market today it t I all

comes from one of the European

central bank members who said,

"Some European bank s have

started facing funding

problems. This situation has

significant consequences for

financial stability and the

real economy and Budgetetry

discipline needs to be

implemented rigly." So it east

just brought back the European

bank worries today that we're

clearly not out of the woods

there. We had forgotten about

nit the last couple of weeks

but perhaps we

shouldn't. Holdings has -

Leighton Holdings had another

swipe at the super profits tax

but it was lack lustre why was

that? It was up a few cents and

Wal King gave an open briefing

where he reiterated some

ambitions at the beginning of

the year for a 5-year target on

work in hand and turnover and

profit. And reiterated this

year's earnings guidance. You

so to bear in mind that Leighton Holdings is an

investment is coming up against

the new float, Valemus and they

will be aware that this is the

much smaller company than

Leightons but it is an

alternative and people might

sell Leightons in order to

invest nit. It is the time to

be putting out good news that

everything is OK. But the

search on the Valemus

prospectus is very scant. There

haven't been many floats. When

you get involved you can't put

out research and the only

research I have seen is from

the intelligent investor who

has a void recommendation on it

saying it was quiet a cyclical

business and they had time for

a good cycle, just post a lot

of government stimulus spending

on infrastructure and they

might be coming in at the top.

It's a 4% mould. The question

is how long will they pursuit

for. We will see. Marcus

Padley, thanks for joining

Lateline Business. My

pleasure. To the other major

movers on our market now -

Telstra gave back much of

yesterday's games down 2.4% and

movements in share price last

Friday before the announcement

of the NBN deal have aroused

concerns of invader trading.

It's been referred to ASIC.

A stronger Chinese currency

would mean more expensive big ticket items.

The Australian Bureau of Agricultural and Resource

Economics says commodity

exports are expected to jump

23% just over 2 O2 billion

dollars in the coming financial

year. That is almost 9% higher

than the estimate made three

months ago. The end of drought

conditions has helped raise

production while uncreased

demand from Asia reflects

growing confidence in the

worlds economy. Alicia Barry

reports. Asia has an insatiable

appetite for electricity and

steel and Australia's mineral

resources are in great

demand. We expect that there

will be significant increases

in export earnings from our

Australian own exports, coking

coal exports, and also thermal

coal. In 2010, 2010 11, energy

and mineral export s are

forecast to earn $170 billion,

that's an increase of almost

29% from the previous year. And

despite concerns about the

resources super profits tax,

Australian mine production is

tipped to rise almost 8.5%. It

hasn't happened yet. It is - to

some extent it's very excessive taxation. I see the

Government's side. I see what

they're trying to achieve and

the other side is you have the

miners upset. They're large

employers across Australia: The

farming sector is expected to

do better as well. With a 2.5%

jump in exports to $29 billion

in the next financial year. The

supporting factors underlying

our forecast include higher

prices for livestock and

livestock products and increased the production for

crops. A lot of farmer

sentiment is broadly driven by

the weather. Particularly on

the east coast and in WA things

have been a bit mixed but on the east coast in particular

the weather and the start to be the season has been

tremendous. With Asia driving

demand, local farmers are

adapting to suit the

market. This year a lot of

farmers are rotating their

crops away from wheat to

producing things like ka Noah

e, for example, and pulses -

canola for example and pulses.

Farmers to the degree they can

are a competent opting new

types of technology. For

example this year with the

increased area of co-Nola,

we've seen a number of farmers

adopt the GM version. ABARE ice

latest forecast relies on the

assumption of the impact of the

European debt crisis is likely

to be modest and that demand

from other major export markets

are just - such as China, the

US and Japan will keep

Australian ports busy. Analysts

are also kaiciously

optimistic. The true growth

engine of the world is Asia

centric. That's where the

population base explosion is

and that's America and Europe

in the '50s and '70, they're

people who are changing their

dietary habits and lifestyle,

so more consumption of more

commod jis. ABARE's prediction

account ering for an expected

5% rise in the Australian

dollar. Locals may benefit as

well. Not only does it buy more

but it turns to be cheaper for

them. So the savings could be

in excess of ?5 billion a

year. The downside is the

increase in export earnings may

add to inflation pressure as

the Reserve Bank considering

its next move on interest


As we saw in Lateline, the

new British Government has

unveiled an emergency budget as

it tries to tackle a colossal

deficit. Even with savage

spinding cuts and tax rises the

scale of the problem is huge.

The UK's net debt will still

reach 70 nct in the next few

years and by 2015 interest

payments alone with will be

?250 billion a year. Joins us

now is Rossi rorntion, senior

research fellow at Chatham

House. Welcome to Lateline

Business. Thank you. A

deficit in balance by

20-14-15. Is that realistic do

you think? I think on the

numbers they're producing it's

realistic. The big target is to

get the whole of this 150

billion pound deficit down to

virtual ly zero over about five

years. It has been done before.

We've seen the same kind of

efforts made in the 1990s, not

only in the UK but other

countries. So the deficit

reduction can happen and it can go together with growth. The

growth might not be as buoyant

as it might be, but still the

predkss are around 2.2.5% for

the rest of the year. I think

in total in package there which

is pushing heavily into a few

extra tax increases, some

specific welfare cuts and generally freezing Government

pay and payouts at current

levels. That will get us most

of the way there. This still

can make a real don't. I notice

that George Osborne was flanked

by two Liberal teams - Liberal

Democrats. How much of the

Budget has been influenced by

them? I think you can see

nuance s here but even more

important for the whole of the

UK and for the international

confidence here is that the

coalition has stood together in

presenting a case for having to

make these cuts. We will hear a

lot more about the issues of

fiscal re trenchment from the

G20 upcoming. That is not

Australia's problem of course.

We know that but in many other

countries have similar problems

and they're going to have to

start tackling it. And the UK

in a way is setting an example

of what is going to have to be

done. You talked about the

growth figures. I notice that

company tax reductions were

actually on the table to 27%

and undeed 20% for small

business. Is that supposed to

be for soaking up the public

sector job losses that are

going to happen and how will

growth hatch anyway, given that

Europe is in such a bad

way? Well, fortunately we have

a few other growth engines in

the worlds economy. So I guess

you guys in Australia had

better keep spending, and it's

helped the rest of the worlds

to keep disbroeing. So this

will help out a lot if it

continues. So on the back of

that, the UK's looking probably

more so to export services an

specific goods to areas such as

Asia in the future. Of course a

lot of other continuesry s will

be doing the same and so I

think this is why George

Osborne has been looking to try

to give the UK some competitive

edge here, both in termses of

the exports but also in terms

of the investment in the UK

economy. That's why he's

targeted these corporate tax

changes. That's quite good news for investment and

business. VAT, Britain's GST is

now up to 20%. There were

significant changes to welfare.

How do you think this is going

to go down politically? How

will it average the average

household? I think the VAT was

foregloen conclusion because

you have to make a debt - a

dent in the debt and our VAT is

quite low compared to our

European neighbours. So 20% is

not too bad. And it will raise

us a chunky sum. The other cuts

in welfare are stred across a

wide rieng of categories and I

think are probably trying to

trade off some of the issues

that the Conservative might

raise about problems with

increases in welfare in recent

years as a trade-off for some

of the other things we've seen.

For example, capital gains tax

is going up as has been widely

flagged before the Budget. So I

think it's inevitable we have

to look at pruning back some of

the changes. I am afraid that

part of the UK's problem is we

romped away with extra

responding in the last few

years when wi we should have

been more prudent on the Budget. It notice the

Chancellor has axed the uo

preparations unit. Not much

chance on the euro today. Thank, indeed. Thank


Investment was all the talk

in Canberra over the last 24

hour s where many top business

leaders from Australia met

their Chinese counterparts.

Visiting Vice-President Xi Jingping committed to take

business to a new business tie,

sorry, to a new level. So what

will this mean and how will

factor like a super profits tax

and yesterday's unpeg of the

Chinese Yuan against the US

dollar affect trade and

investment? I spoke earlier

with the President of the

Australia-China business

council, Frank Tudor. Welcome

to Lateline Business Thank s

have very much. What was the

purpose of Vice-President Xi's

visit? He was elected to the

Pollitt bureau as part of the

party congress. And he and

another are rumoured to be the

new leaders who will take over

for China and that is likely to

happen in 2012 where they have

the party congress. The reason

for the visit to Australia, I

think if you look back we have

had CERDly visits by Her

Majesty. - - Hu Jintao. More

recently we had another last

year and this is just an

ongoing dialogue that we have

at the political level. What's being delivered THAT joint

meeting of Australian and

Chinese business leader. We had

a We had a number of agreement

s that have been sign as the delegation has gone through

Melbourne and then more

recently Canberra. The

agreements cover ing broad

range. There's been a number of

resource agreements. Andrew

Forrest, FMG, have signed up an agreement which should allow

them to expand up to 95 million

tonnes of iron ore being

exported out of the Pilbara.

We've also seen Clive Palmer in

Queensland through Resource

House also sign up the

export-import bank of China.

Plus the metallurgical

corporation of China, MCC, and

also China Power Holding.

They're coming together to

develop a massive coal deposit

which is about 500km inland in

the Bowen Basin and that

project in total is about $9

billion. We have also seen

Telstra sign up a deal with a preferred supplier in

China. You mentioned both Clive

Palmer and Andrew Forrest two

resource super profits tax. men adamantly opposed to the

What message did you get from

the Chinese about the

tax? Nothing really and that is

not surprising because if you

go and you look at how China

approaches their commentary on

what happens inside other

countries they've made a very

strict policy not to comment. I

think there are two issues

which drive them - one is

clearly getting security of

supply and therefore access to

resource. This is fundamental

to them. So the tax is

important because it will

establish the value but I think

it's less important than the

fact that they come in and

actually secure resources with

companies on a win-win basis. I

wonder what it must have been

like around the dinner table with Andrew Forrest, yourself

and then the Prime Minister

saying that the deals and the

resource sector meant the mining industry campaign

against the super tax Wass

unfounded. Well, - was

unfound If you're looking at traditional investors who are

not the Chinese, then they are

driven by value and in order to

establish a value for a

resource, a value for financing

purposes they need to know what

tax regime exists. So the uncertainty would certainly be

an issue for them. For the

Chinese it is one of the issues

but there is an over Ryding

siesh they need energy security

so they need reliable splices

of energy. So they will come in

and providing they're making

some money out of the

development of the prospects

they will be more focussed on

getting access to the

resource. Another surn srnity

for the China China dwreez

Foreign Investment Review

Board, are we any - clearer on

FIRB and do the Chinese have

any concerns about it? What

we've seen with the Chinese if

you go back over the last 10

years, they started their

foreign outward boufrnd foreign

direct investment at very low

levels. And so some of what

actually testing the we've seen in Australia is

boundaries. But I think as far as the Foreign Investment

Review Board is concerned, the

process from where I sit at

least work s reasonably well.

Some of the numbers quoted by

the Government suggest that

since they've been in power

they've actually looked at the

approval of something like $40

billion worth of investment

coming from China. So I think

that in itself uth suggests

that 2 pro process is

working. Finance now and

yesterday's new has the Yuan

would be un pegged from the US

dollar. No precious occurred.

This is just a stunt ahood TV

the G20 talk s or do you see

some real ree, in the Chinese

currency happening? I think now

they've said it so publicly and

ahead of the G20, the Chinese

will do something and there

have been noises ahead of the

announcement that may made that

suggests they were looking at

this. So I think this will

happen now they've made the

policy statement in the way

they have. Is this likely to

impact the balance of trade between Australia and China, do

you think? In one way the

Chinese dollar will have a

higher buying capacity and so

that is being factored into, I

think some of the share prices

you see with the resource

companies. So that should lead

to them being able to buy more

with their currency. But on the

other hand it is actually

making their experts more

expensive and therefore less

competitive. So that will

probably play out in the longer

term but I suspect the net

effect of both of those will be

probably positive for Australia. Frank Tudor, thanks for talking to Lateline

Business. Thank you very much.

Now a look at tomorrow's

business diary and UBS holds a

round table discussion on real

estate in Sydney. The census

chief executive speaks at an

Australia-Israel chamber of

commerce lunch in Melbourne.

New Zealand's trade balance for

the March quarter is out while

in the US the Fed concludes its

interest rate meeting. A look

at what's making news in the

business sections of tomorrow's newspapers. The 'Australian'

says the rural services company

Elders has its market

capitalisation halved as

investors saw hopes of a revival

of fortunes dashed. The

Australian 'Financial Review'

reports the Federal Government

is plan ing a reshaped Federal

super profits tax and the 'Sydney Morning Herald' says

commodities will fuel a boom in

exports and the 'Herald Sun'

looks at an unusual story that

cat food brand Whiskas has won

a seven-year battle for the

control of the couple purple.

The court has ruled they have

the rites to Whiskas Purple.

The FTSE is trade ing at 4

points, up 4 points and - the

FTSE is down, I beg your

pardon, and the Dow Jones is up

0.1%, 12 points. I eel Ticky

Fullerton. Thanks for watching.

Sh Goodnight.

Closed Captions by CSI

THEME MUSIC The good fortune of Australia's mineral wealth has rarely made us richer. Nor, thanks to technology, has it ever stretched further. Off shore and deep under water, the Browse Basin gas field is set to be mined and piped more than 400km to the untouched Kimberley coastline. If the State Government gets its way, it will be processed here at James Price Point. The Kimberley is one of the last places, one of the last sanctuaries, and now we're talking about potentially threatening that. You know, where are we going to stop? Where will this end? But the James Price Point gas plant could bring in $50 billion. And it could mean up to $1.5 billion in benefits for the Kimberley's Indigenous communities. We can't put our head in the sand and say the world's gonna pass us by. What's wrong with Aboriginal people finding the balance about development? High rates of unemployment, poor education, poor health standards, domestic violence, abuse and neglect of children. Am I, as the Premier of Western Australia, going to sit back and say, "I'm going to give up the opportunity to help those people?" I'm sorry. I will not do that. Browse Gas could be processed at existing gas plants in the Pilbara, but that would cost more and slow down production. We've got to get that plant built. Our investors have waited a long time for it. The reason is the Government tells us that if we don't build the plant we'll lose our leases. Last year, the State and Federal governments, the mining company Woodside and the Kimberley Land Council signed an agreement for the gas plant to go ahead. But now the legality of that agreement and the way it was reached are being challenged. Well, if certain people have it their way, then lots of people will miss the opportunity. This money, you can spend, mate, and it'll be gone, finished. Trade-off. What do you end up with?

You end up with nothing at the end of the day. Tonight on Four Corners, law bosses, gas and money and the high price of our rush to riches.

? Why are you crying ? My pretty colleen ? Why are your eyes filled with tears? ? It's a warm night in Broome and the Sisters of St John of God are opening a new centre for their archives. Welcome to country. I welcome you into Yawuru country, just looking at how beautiful...