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Hello and welcome to

Stateline. In a moment the

Federal candidates for Lingiari

go head to head live in the

studio. We'll meet the Territory's new administrator

Tom Pauling. We're not coming

with any preconceived idea

about what an administrator

should be like. I think it's

just such a wonderful

opportunity to get to know the

Territory much more deeply than

I already do know it. But first

this week the 2007 campaign has

been haunted by the ghosts of

2004. First, interest rates

moved up again, a difficult

reminder of John Howard's

promise to keep them at record

lows. Now Mark Latham is back

as well with a stinging critical assessment of the

current campaign. The former

Labor lead senior critical of

both sides but the Government

has welcomed him back

nevertheless. Michael

Brissenden reports. Where's

your hat?

LAUGHTER Just 14 sleeps to go

and it's hats on for the start

of the final fortnight of

campaigning. Although as usual

some of them seem to be taking

things perhaps just a head too

far. Yesterday around Australia

about 100,000 people wore

these, so - if you have hair

like mine you probably should

cover it up. (Squealing) From

silly hats it shopping centres.

It's a a superficial level the

recipe for campaigns rarely

changes. You look so young.

Come again! But whatever Come again! But whatever you CNme ag in! But w ate e

put in the mix no two cakes are

ever the same, there's always

some surprise ingredients and

the odd bad egg or two along

the way. You mentioned Mr Latham. I did mention... I

don't normally do that. I've broken the drought by

mentioning Mr Latham. Yes, he's

back. Hardly unexpected, Mark

Latham's intervention had to

come eventually and as usual

it's vintage vit

Rowery-year-old N a piece

penned for penned for the 'Australian

Financial Review' today - he declares this the Seinfeld

election, a show about nothing.

Behind the scenes he says the

Labor faithful are reassuring

each other that once Labor's in

power it'll be more progressive

than it's letting on. Mark Latham's hatred for the current

of the Labor Party is well Labor leader, in fact for most

known. But the return of the

recluse has been enthusiastically embraced by

the Government. I thought he

just confirmed everything that

Peter Garrett had said. Peter

Garrett had said we change it

all when we get in. And Mark

Latham says that we all expect,

we all hope that it will be a

lot more - he uses the word

progressive, I use the word

radical, a lot more radical if

the Labor Party gets in. I

haven't read the - Reporter: I

have a copy. - the article in

question. I thought you would.

I've been reading a bit about

South Australia today. And I

don't intend to revisit the pags. I'm on were the

future. The Government's jumped

all over it but being attacked

by Mark Latham probably won't

do too much damage to Kevin

Rudd's chances. udd s hances. ow Rudd's chances. How are

you? Good. Plenty argue Mark

Latham was his own biggest

liability, but the Government

threw everything it's a him

back then regardless on a

campaign laced with finely spun

claims about keeping interest

rates low. This week's interest

rate rise saw the 2004 campaign returned to haunt John Howard's

pitch in 2007. I'm sorry about

that. And I regret the

additional burden that will be

put upon them as a result. I

said I was sorry they'd

occurred. I don't think I used

the world "Apology". I think

there is a different between

the two things. Was it an

apology or not? It hardly seems

to matter. The fact is the

Prime Minister's re-rhetorical

dissembling has itself become a

story and kept this a dominant

campaign theme for three full

days. This morning it was the

topic of quhois in laidio

studio as across the country

and a big focus of the Prime

Minister's radio interviews. Do

you take responsibility for the

take responsibility for the increase in interest rates? I

strong economy. You take

responsibility for six increase

- interest rates increase as

soon as I take responsibility

for the strength of the economy

ain't extents to which that's thank strength has contributed

to movements, of course I do.

I've said that. But you have

also taken some pleasure in low

interest rates therefore you

have to take some pain in high

interest rates, don't you?

Sn The people will make a

judgment about the apportion

ment of blame. That is classic

credit when there is good John Howard frankly. Taking the

economic news, avoiding

responsibility when there's bad

economic news. I find that

statement remarkable. Because

if Mr Howard is out there

saying he's prepared to takes

the credit for economic growth

numbers, but explicitly reject

all sfoibt - all responsibility

for what happens when it comes

to interest rates, that

underlines a Prime Minister who

is now desperate, saying

anything and doing anything in

order to secure the next

heard the last of interest election. We certainly haven't

rates in this campaign. But the

Government is still working

hard to turn the rise to its

advantage. The argument is this

focuses the voters' minds on

the economy ain't risk a Labor

Government would pose. Today,

there were reports in the 'The

Australian' newspaper the car

industry had written to the

Government calling for a freeze

on tariff cuts and expressing

their concern about the impact

of more militant unions under a

Labor Government. The treasurer

pounced. This should strike a

chill into all Australians,

because business is now

starting to worry about union

militancy under a Rudd Labor government. It's something

that's creating a lot of

uncertainty in the car

industry. The car industry says

the story's wrong. There was no

such letter and nor have about

there been any industry

discussions with the Government

on industrial relations matters

as today's paper reported. Still, as the Prime

Minister said this week in campaigns voters shouldn't look

at every utterance, only at the

aggregate impression of the

whole campaign. 2004 is playing

out heavily in the 2007

campaign, and in just 2 weeks'

time we'll know what the aggregate impression this have

one really is. Northern

Territory home buyers will

certainly feel the pinch from

the latest interest rate rise,

house prices in most Territory

centres are now at record

levels. Even those renting are

being squeezed. It's led to

calls from the Government to

release more land for house ing

and increase it's stock of

public accommodation. Bridie

Hill dreams of owning her own

home, a tropical house in

Darwin. But with rising prices

and a limited budget she can't quite afford it on her

own. Probably when I first

started looking I realised that

even to buy something in an

area that I don't really want

to live in, to buy a whole haus

House is out of my reach. Now,

with another rise in interest

rates Bridie Hill's dream is

even more out of reach. So

instead she's decided to go

halves in a house with a

friend. We both have a similar

budget. By pooling our

resources we can get a much

nicer house we'd really like to

live in. (Lounge music) Bridie

Hill is far from the only first

home buyer struggling to enter

the market. This week's rate

rise adds about $40 a week to

the average loan. Industry

expertses are hopeful of the

market can weather the

rise. There's more properties

on the market than there was,

say, 6 months ago. So that's an

indication that the timeline

for selling properties is

extending, which means probably

the market is coming back to a

more normal market and you

can't expect 30% increases, but

you can say the market's going

to continue to grow at a good

rate. With the housing market

now at record highs in Darwin

and other Territory centres,

another rate rise could spell

disaster. If interest rates go

up again as they're tipped to

nekss month and in January t

could spark a rush of sales. I

think you'll find it will start

to Bight. If it went up

another, say, per cent or half a per cent people would then

start to seriously consider

their investment positions.

It's not just home buyers who

are feeling the bite. Peter

gouers is both a real estate

agent and a landlord. He believes it's inevitable the

rise in interest rates will

flow through to the Territory

rental market. It is an investment, if air buying a

property for the sake of

renting it out you're doing it

as an investment. So whiletonnants wouldn't look at

it like this it is a business.

If our costs increase,

therefore we have to try and

find a way of recooping that.

It's inevitable that rent

prices will follow the increase

in mortgage costs. That usually

- there's a little bit of a lag

waiting for leases to be

finalised, but probably within 6-12 months we will see all

these increases passed on to

renters. Anecdotal evidence

shows it's happening already.

Darwin has some of the highest

rents in Australia and the

lowest vacancy rates. Tennancy

advocates say even a moderate

rental increase is forcing some

tenants into arrears and in the

worst cases on to the streets.

There has been one particular

client I can think of who has

said they have no other place

to go but their car. It's a

really shocking situation when

there's not only not a lot of

housing available but also the

affordability of the housing is

an issue. We're looking at a

vacancy rate about 1.7% which

is no more than people moving

outs and someone moving in and

supply and demand is also

pushing up prices. The Northern

Territory also has the highest

proportion of renters in

Australia. 35% of the

population. Yet many squeezed

out of private accommodation

still earn too much to be

eligible for public housing.

They've got no other housing

options for them, they might

make too much money, that they

can't qualify for Territory

housing. So there's a bit of a

gap. In the longer term the

Territory market will depend on

how much new land is made

available for housing and whether the Government is

prepared to invest more in

public accommodation. This week

a parcel of new land was

released in Alice Springs, but

there will need to be far more

land in all major centres to

satisfy the Territory's demand

for housing. I think there's

also less housing stock per

capita in the Territory. So

that impacts what's available.

There hasn't been a lot of

building of low income housing

anyway. It's been a long time

since anyone's built flats, for

instance. They build a lot of

units but the traditional flats

which is there for the lower

end of the market. No-one's

building those. We need to get

some of that stock freed up.

Until then, the Territory's

housing squeeze is set to

tighten even further. The economy and interest rates

might be the key policy battleground this Federal

election, but in the Territory

seat of Lingiari the spectre of

the Commonwealth's intervention

will also be on voters' minds

when they cast their ballot.

Mobile polling begins on Monday

there. Joining me in the studio

now is the Labor candidate

Warren Snowdon an the CLP candidate Adam Giles. Welcome

to you both. Thank you. If I

can start with you, Warren snow donehouse represented the

people of Lingiari for nearly

20 years now. Last election

there was a sizeable swing

towards him. He has extensive

contacts across the Territory.

You're a relative political clean skin with not much political experience, what

makes you think you can beat

Warren Snowdon? I think people

are looking for a change in

Lingiari. People have have

recognised the situation in

terms of law and order has

grown to be out of control.

We've seen through the little

children will sacred report

there have been children at

risk right across the

Territory. Nothing has been

done. People are saying what

has been done over the last 20

years and we need a new change.

There has been a fair degree of growth in the economy

Australiawide. I would say in

Lingiari we have not fully

reaped the benefits of the

strong economic management of

the Howard Government. I'm

putting forward a platform of

economic growth, trying to

build local economies, build a

skilled workforce and get more

people into work. I think

people are welcoming that

approach and people do want

that change in Lingiari. What's

your response to that, of the

people of Lingiari not

benefitting from the economic

boom the rest of Australia's ia

has been experiences. Not a lot

done in the last 11 years

because John Howard has

neglected the Territory. You've

only got to look at roads, for

example. In 1995/6 there was a

strategic roads program. In '96

when John Howard got elected he

cut the program. That was money

for bush roads. Last week we

announced expenditure for those roads. John Howard hasn't.

Because he doesn't understand

the bush. I just - Mr Giles

talked about - you asked him

about campaigning. Mr Giles has

campaigned of course before, he

was a candidate for Fraser in

the last Federal election in

Canberra. He is a mobile

candidate. But having said

that, the real issues for us

are the same as issues

elsewhere in Australia, people

are concerned about climate

change, they're concerned about

interest rates, education for

their kids, they're concerned

about health care, access to

services. In the bush they're

concerned about lack of

infrastructure. They're

concerned about making sure the

kids in the bush are safe and

well. The intervention I think

is welcome in the sense - in

part because John Howard has

neglected the place for 11

years. This is the first time

that he's had any investment

and what Labor is doing as well

as making sure the intervention

will proceed after the

election, is spending - Is that

the case because Kevin Rudd has

said there will be no rollback

of the intervention. Can people

expect if a Labor Government is

in power in the next term, that

CDEP and the permits will

remain? You'll retain - CDEP

will be there, permit will

remain. I talked about this

before to various people including I think on your

program or at least interviews

played on your program. That is

that on 13th September when

this debate was held in the

Parliament it was made very

clear by the Labor Party what

our concerns were. I think there is still some confusion

in the electorate. I'd like to

ask Mr Giles about CDEP. In the House of Representatives there

was a strong vote by the

current member for Lingiari,

but there was a vote for the

current member to support the

intervention. There was a

debate in the senate. What

Kevin Rudd has done is given bipartisan support to address

one of the most significant

issues in the Northern

Territory. 45 out of 45 communities had child abuse.

Something needed to be done.

There wasn't any representation

from the Northern Territory,

from the current member for

Lingiari or the Northern

Territory government saying

this is a big issue. Let's look

at some of the steps that have

been taken. One of the most

contentious is the axing of

CDEP. The fact is there aren't

as many real jobs in remote

communities as there were in

CDEP positions. Some people

will be worse off financially.

Some people were previously

employed under CDEP who now

have nothing to do in the area

of Fink. Doesn't that suggest

axing it wholous bowlous woos

hasty? People are not worse

off. Some people have moved to

a step program, where people

get structured training in

employment and not being

financially disenfranchised.

Some people have moved for work

for the dole. We have something

call add transition payment

where people can get an

adjustment between what they

used to earn and what they're

know getting from the dole.

this is about training people

up and building a workforce in

these communities. If we keep

things the way they are which

the current member and Labor

seem to be disunited on, more

of the same equals more of the

same. If we keep doing the same

thing nothing is going to

change. We have to build local

economies. Why would Labor

retain the CDEP then? Because

of the success. The problem

here is the bureaucrats from

Canberra decided they want to

get rid of CDEP. I don't know

when you call it a success when

people don't receive

superannuation or real pay for

real work. That's the case.

It's not a real job. People

gomto gom don't get the

benefits of a real job. That's

true and we want to change

those things. We're talking

about reforming CDEP.

about reforming CDEP. areas

provide real opportunities for

people and the concern in those

communities about the axing of

CDEP is palpable. When we talk

about what are issues in the

electorate. Let there be no

doubt, the axing of CDEP and

they're getting rid of permits

are keys in the electorate.

Absolutely clear. Right across

the Northern Territory. What we're doing as well as

supporting the intervention past the election is we've

already announce end excess of

$200 million additional

expenditure for things like 300

rangers, for 200 new teachers

for the Northern Territory,

investing in high schools,

investing in preschools,

investing in health care, in

addition to what's been

announced by the Government and

th which we're supporting. What

we need to do is understand the

whole community, that is the

whole community in - Let's cut

to the chase. We'll get to you

in one moment. The whole

communities in Lingiari needs investment in health and education. The Howard

government has not invested in

any skills since 1996 in these

communities. Not a crent. We

can talk about rangers, 300

rangers by Labor are across the

country. We're pitting 450

rangers into real jobs with

real pay with real

superannuation in the Northern

Territory. Can we talk

aboutenge education though. 6

million for 200 teachers. The

chief Minister committed to the

Prime Minister they would take

responsibility for education.

Finding the teachers, educating

them, building the schools and

resourcing the schools. That's a Northern Territory Government

responsibility. To have some false commitment that Federal

Labor will bring in extra

teachers, why should we through

the additional GST revenue of

$700 million being provide this

had financial year, just for

the bush, just for

disadvantaged Aboriginal

children, why should this not go to key parts of the intervention in terms of education? That's what the

chief Minister gave a

commitment to. This is Labor at

the Territory level and Labor

at the Federal level in the

Territory advocating their

responsibility and putting out

weasel towards run away from

the intervention. This is

nothing more than Rudd's rollback. International

research will tell you you can

not have a subsided welfare

program for employment when

you're trying to rebuild

communities. You need real jobs

and real communities. Dave

Tollner and Adam Giles are

trying to capitalise on some

discontent with the Territory

Labor Government? Are you

worried about a back lash? We

haven't mentioned the

overbearing attitude of the

Commonwealth government in its

position to impotion nuclear

waste facilities on the area.

There are a whole range of

other issues, nuclear waste

dumps imposed on the community

by the government. The issues

of roads, infrastructure, these

rishu that is worry all people. Australian working families

have never had hadt so good

says John Howard. The people of

Lingiari have the same concerns

about John Howard as the rest

of the population. Under your

watch. We have time for one

final question for each of you.

On that note, will Lingiari be

won or lost in remote

communities where Labor got 78% of the vote last election or

will it be in regional centres

like lings lengths or

Katherine? And Alice

Springs? People will vote

wherever they are on the

policies of either party,

whether they're Aboriginal

people living in remote

communities or non indigenous

or indigenous who live in Alice

Springs or Katherine or the

Darwin rural area, or any where

else in the electorate. On the Christmas Island we have to

talk about honesty in this

election campaign, Mr Giles was

on Christmas Island and said to

the community there, that the

Government would give them a

casino licence. He knows, I

know, that the government said

they will not give them a

casino licence and he just told

them an untruth. A quick

response to that. That's just a

lie. I didn't tell anybody.

That's just a lie. We'll talk

about that the later. Very

quickly, where do you think the

seat of Lingiari will be won or

lost? You have been spending a

lot of time in Katherine? I'll

tell you the future - won or

lost, if the CLP wins the

future will be won. If the CLP

loses and Labor gets back in

Lingiari has lost. Adam Giles

and Warren Snowdon thank you

very much for your time. Good

luck with the rest of the

campaign. The Northern

Territory's new administrators

was sworn in today. Tom Pauling

takes over from Ted Egan. Mr

Pauling has dedicated decades

of his professional life to

public service. For the past 18

years he has been the

Territory's slr general. I

spoke to him earlier at

Government House. Welcome to

Stateline. How are you. Ted

Egan's shoes are big shoes to

fill. Are you at all daunted by

the task? No, I think we have

to bring ourselves into the

job. All of the administrators have their own qualities and

bring their own sense of style

and into it and that's what

we'll do. What qualities do you

think you and your wife Tessa

will bring to the role? Previously administrators

and previous administrators'

partners have advised us, bring

yourself. We're in the coming

in with any preconceived idea

of what I should be like,

drumming out a tune on a VB box

or anything of that sort. A lot

of sense of fun, a love of

people, a love of the

Territory. A willingness to get

out there and hear people's

stories and I think it's just

such a wonderful opportunity to

get to know the Territory much

more deeply than I already do

know it. Do you think you can

have a bit more fun with the

role here in the Northern

Territory than you can in other jurisdiction as soon as and

some of your counterparts

elsewhere? Absolutely. I think

in my previous role as

solicitor general my counterparts in the States

thought we had more fun than

anyone else and brought a sense

of humour to the job, even in

the sort of lofty court, the

High Court and the difficulties

there, there was always

something funny to say from a

Territory point of view. Are

you at all concerned the Northern Territory's becoming

just a little bit more like

every where else? I don't think

it's gone too far. It's heading

in a direction that's a bit

worrying. I think there are

some sensible and proper things

that ought to be done that you

don't allow people to drink and

drive or or drive madly or

anything like that. I think

that's important. You mentioned

your legal career Are you

expecting to have to call on

your legal experience in your

role? No, I home the official

secretary will give me

appropriate advice and if they need legal advice they'll get

it. I'm not going to give legal

lengthy career in the public advice. Why after such a

service and I'm sure after that

time you had acried a gen rois

pension, why did you decide to

take on this extra public

service role? It's interesting

you ask that, over my career,

I'm 60 years of age, I've spent

27 years in the public service,

6 years in New South Wales, 3.5

years as a magistrate. Nearly

20 years as solicitor general,

I was brought up in an apt ath sphere that said public service

was a good thing, that people

with ability ought to get out

there and do things for the

community in which they live. I

lib by that edict. The

Democrats are hoping to make

Becoming a republic an

election issue. Ted Egan was

famously in support of a

republic. Are you a

Republican? I've been a Queens

counsel since 1984, I'm the

Queen's representative. I don't

think it's a topic I ought to

speak on as

administrator. Finally, you

have just move end to

Government House here. Does it

feel like home already? Yes,

we're putting our own touches

here and there. We've got wonderful staff and we feel

very, very welcome. we're

looking forward to the next 4

years with a great deal of anticipation. Thank you very

much for joining us. Thank you.

That's the program. We'll

leave you with an exhibition of

works depicting bush tucker and

bush medicine at the Olive Pink

at the botanical Gardens. see you next week.

Closed Captions by CSI

CC Tonight, shopping for votes. John Howard and Kevin

Rudd hit the malls. If I am

the full employment candidate,

Mr Rudd is the higher

unemployment candidate. That

underlines a Prime Minister who

is now desperate, saying

anything and doing anything in

order to secure the next

election.

Good evening. Welcome to

Lateline. I'm Virginia Trioli.

With just two weeks to go, some

inside the Coalition bunker

think they can still win this

election but who else agrees

with them? Newspoll's gone

from the Coalition being on 42

to 46 to 47, if the next one

has them at 48, well, Coalition

strategists think they can win

this election with 48% of the

vote if they win it in the

seats that count. If you look at the polls and where John

Howard is campaigning, which in

seats with big margins, if you

look at the fact their

political tactics have fallen

to pieces, they're in

biological trouble. First our

other headlines. A question of

integrity. A senior Victorian

police officer resigns after

being secretly recorded leaking

sensitive information. BHP goes

to Rio but the $150 billion

takeover offer is not enough.

Highly regarded independent parliamentarian Peter Andren is Highly regarded independent

laid to rest. With the campaign approaching its final two

weeks, the economy has emerged

as the dominant issue. While

the politicians argue about

interest rates, one of the

major banks is warning it may

increase mortgage repayments

for its customers before

Christmas whether there's

another rate rise or not. More

shopping mall chaos to round

out week four, taking the good

with the bad, John Howard

caused quite a commotion in

Penrith. There's mummy. One

shopper was flattened, knocked

out by the media scrum as his

security staff helped out, the

Prime Minister moved on. You

need a haircut. In Adelaide,

more of the same, minus the

injuries. Kevin Rudd's done so

many shopping centres he's

losing track. What's the name

of this centre? Teatree

Gully? Plaza. Both leaders are

still fighting on the economy

and interest rates. Which side

of politics is sort of going to

keep them as low as possible.

Mr Rudd has no policy to keep

inflation down, to keep

pressure of interest rates. He

has a policy to increase

unemployment. Classic John

Howard, taking the credit when

there is good economic news, avoiding responsibility when there's bad economic

news. There may be more bad

news coming for home owners, the National Australia Bank and Commonwealth Bank have moved to lift their rates and at least

one is warning it may move

again before Christmas, even if

the Reserve Bank leaves

official rates on hold. Right

now we're carrying that cost

so, as you can imagine, I'm not entirely comfortable about that

so I would have thought we

could probably do that in the