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(generated from captions) this: Anthony has a this: Anthony has a much

Flinders Medical Centrier basis

for the accusations that he is

- flimsyier basis for the

accusations he is making

against Malcolm Turnbull now

than Malcolm Turnbull had

accusations he did against Friday night for making the

accusations he did against the

Prime Minister. We know the

case made against the Prime

Minister on Friday night can no

longer be sustained. But the

case against the Treasurer that

was made on Friday night is

still watertight. It's more

watertight now than it was then. That's a desperate attempt. Given the extraordinary lengths

Government senators went to to

shut down the cogs of Godwin

cross-examination of Goodwin Grech on this issue -- the

Grech on this issue, were you

expecting the appearance of a smoking gun at those

hearings. No, that's not the

case. But the extraordinary

thing about what Tony Abbott

said is that it differs from

what Malcolm Turnbull argued

about this email on 7.30 Report

tonight where he actually

argued, he actually argued argued, he actually argued that

Wayne Swan was responsible for

the fake email because he was

the Treasurer, and it might

have something to do with being

produced in - by an official of

the Treasury, so now the

desperation of Malcolm, rather

than I note that Tony's gin up

the ghost on the fake email. Tonight, Malcolm Turnbull

hadn't given up, he was still

pursuing an argument, but this

time the argument... That's not


..on planet Malcolm is Wayne

Swan was responsible You are so Swan was responsible You are

over the top. With

..was responsible for this

email. That's what he said, not

once, but twice on the 7.30

Report tonight. A quick

response from Tony Abbott on

that, we'll then move to that, we'll then move to the

Wayne Swan issue. Anthony's

accusation is over the top.

What Malcolm said was that if

anyone was responsible, if any

politician was to be held

responsible for an email

produced in the bowels of the

Treasury, it should be the Treasurer, not the Leader of Treasurer, not

the Opposition, and this shows

how over the top Labor's

reaction to this whole business

has been from the word go. We

haven't created this, Tony,

this started the day after this started the day after the

national accounts showed that

we weren't in recession. And

the Opposition since then has

given up on the economic

debate, they want to avoid a

debate on climate change, they

want to avoid a debate on jobs,

and want to engage in the

politics of smear, replacing

the politics of fear when it

comes to the economy. Let's go comes to the economy. Let's

to the real emails that were

unveiled at the hearings. If unveiled at the hearings.

Wayne Swan as he said in

parliament today can provide

evidence that in fact two car

dealers got more attention,

much more attention to their

requests for special finance,

is he off the hook? But he

didn't produce that evidence.

That evidence was absolutely

not produced. If he does

produce that evidence. Well,

what he said - what he has said

in emails that are acknowledged

to be true is that this guy, Mr

Grant, got absolute Rolls-Royce

treatment. Now he said in the

parliament that Mr Grant got

the same treatment as everyone

else. Now, he has got to

demonstrate that just about

every car dealer who approached

the Treasurer's office, or who

had people approach the

Treasurer's office on their

behalf got the same kind of

attention that Mr Grant got

where the Treasury official

specifically raising the case

with financiers who were trying

to get a $550 million facility,

giving mobile phones to the financiers and saying please

you'd better make a call", You mean mobile phone

mean mobile phone

numbers. Yes. Not phones as an

inducement. And then having the

personally and directly results of all of that

communicated to the Treasurer's

own home. Anthony Albanese, at

the time when Ford Credit was

desperate for $500 million

injection of cash from the injection of cash from

Federal Government, there's a

meeting with Mr Grech, during

this sensitive meeting the one

thing we know for sure that Mr

Grech brings up, apart from

issues about the $500,000 is a

call for a special line of

Grant. That's special credit to the car dealer John

treatment, isn't it? No, that's

not what we know for sure, the

only thing we know for sure,

Tony, what we know is evidence Tony, what we know is

was given by Ford Credit to the

meet last Friday that three or four car dealers were four car dealers were raised. I

don't think so, as I read it,

the managing director of Ford

Credit, Mr Cohen says that Mr

Grant's case was the one substantially mentioned.

Another dealer was also

discussed. That's the quote,

but - so the substantial one

was Grant. But others were

mentioned, and... One

other. This evening there are

emails from Mr Grech that have

been released. There are some

130 emails from Mr Grech went 130 emails from Mr Grech

to the Treasurer's office. to the Treasurer's office. Of

those around 80 were copied to

Ken Henry, 30-odd contained

documents specifically for the

Treasurer's attention, and out

of those 130-odd emails, only a

handful concerned John Grant.

And the bottom line, Tony, is

that what did John Grant get

out of this? What was the

special treatment? Did he get

any funding from the

Commonwealth? No. Did he get

any special lines of credit

from Ford Credit or anywhere

else? No. If this is special

treatment, it's a pretty

ordinary outcome. The fact is

that John Grant got nothing.

Got zip. What we have here

is... That's wrong. is... That's a time when most a time when

Australians are concerned about

the economy and jobs and

climate change and a range of

issues, what we have is the

Opposition basing an attack and

a call for resignation of the a call for resignation of

Prime Minister and the

Treasurer based upon a fake

email and based upon - based

upon sections of the evidence

of Mr Grech. Tony Abbott, I'll

get you to respond, and, look,

the bottom line issue that

Grant did not actually get

anything is pretty important, I

mean if he had got a large line

of credit your case would look

stronger. Look, he didn't get

special treatment from Ford,

but he certainly got special

treatment from the Government.

That is the whole point. How

much, Tony, what did he get.

He had special treatment from

the Government. What did he

get. He got the kind of

attention. He had less emails

than two other detailsism Kevin Rudd talks over the top Rudd talks over the top of

Kerry O'Brien, kindly allow me

to answer the question. It's

clear on the basis of the

acknowledged legitimate emails

that he was given Rolls-Royce

treatment. Mr Grech, himself,

said Mr Grant was a special

case because he was a friend of

the Prime Minister. I mean how

many... Can I interrupt there,

if you get special treatment

but you get nothing at the end,

does it amount to anything to

get special treatment? When you

mislead the Parliament mislead the Parliament over

what you are doing, yes, it

does, how many car dealers,

Keia car dealers from Ipswich

get senior Treasury officials

telling Ford finance that they

should call them up should call them up because they are friend's of the Prime

Minister in the middle of $550

million facility negotiations,

I mean, come on. This is

Rolls-Royce treatment for Rolls-Royce treatment for the

Prime Minister's mate, and I am

not absolutely against helping

your mates, I'm absolutely against misleading the

parliament about it. That's

just... Anthony Albanese, I

tell you Rolls-Royce... I want

a final response but I want you

to address in this way, if you

wouldn't mind. If Mr Grant was

given a large line of credit

after that kind of treatment,

would your case have fallen

apart, would Wayne Swan be in

more trouble. Well, I tell you

what Rolls-Royce treatment is, Rolls-Royce treatment Rolls-Royce treatment is

funding $10 million for funding $10 million for the

rainmaker when the... This is rainmaker when the... This is a

red herring. When Malcolm Turnbull's Department. This is

a red herring. Recommended $2

million, and $10 million was

approved two days after the

last election was called. This

is classic smoke screen

stuff. After the last election

was called. That had a real

impact on taxpayers. Always

seen here... Can you respond to

what I have asked you. If Mr

Grant had gotten a large line

of credit after that special

treatment, would that be a huge

problem for him and for

you? The fact it Tony, that Mr

Grant got nothing, the Grant got nothing, the scheme

is not even in place because

the legislation has not been

carried, the scheme is not a

discretionary scheme, so that

either car dealers comply with

it and are eligible or are not.

This isn't something where

judgment comes in. They are

either eligible or not. Under

the legislation which is yet to

be passed. That is a critical

issue, all that happened here

is that a local member with the

car dealer represented by

Burnie Ripole's seat referred

an issue to the Treasurer, the

Treasurer referred to to the

Department, the Department has

responded as they did for at

least two other cases with more

correspondence than they have

for Mr Grant. Very briefly, are

you going to reveal the details

of those two other cases tomorrow, there were no details

today, we have to take your

word for it. Well, I think

you'll be reading them in the

paper tomorrow morning, Alwr,

and Tony Abbott, we thank you

for taking the - Anthony

Albanese, and Tony Abbott, we

thank you for taking the time

to join us this evening. Thanks,

Tony. Thanks. Iran's Tony. Thanks. Iran's elite

Revolutionary Guard signal a

harsh crackdown on further unrest over the disputed

presidential election. In a

statement on their web site the

guards say they won't hesitate

to confront protests to confront protests organised

by defeated presidential

candidates. Opposition

protesters mainly stayed

indoors since Saturday's

clashes between the security

forces and and protesters. forces and and protesters. The

Opposition Leader wants to

continue the protests, but continue the protests, but as

Middle East Correspondent Ben

Knight reports it's a high risk

gamble. The brutal and

overwhelming force of the

Iranian security apparatus

seems to have quietened the

street protests in the last 24

hours. The anger clearly

remains. These pictures purportedly show a

demonstration on Sunday with

protesters taking to the

streets despite the streets despite the bloodshed

of the previous day. More

images of those deadly clashes

appeared online. It's difficult

to confirm the voracity of

pictures emerging from the

Internet. The officially

sanctioned media calls the demonstrations terrorist Casualties occurred

after terrorist elements

infiltrated the rallies, The

regime continued to blame the

west for stirring up trouble.

It's expelled more foreign

journalists, the latest is journalists, the latest is BBC

Jon Leyne who's been reporting

from Tehran for the past two

years. Iran's Foreign Minister

signalled Britain for

fermenting un fermenting un rest. TRANSLATION: We are sorry to

see the Government of Britain

did not learn that such

measures will bring more hatred

from nations towards policies

of that country. After a

cautious first reaction US President Barack Obama is

taking a firmer line on

supporting Iran's protesters.

The Australian Government has

been cautious too but raises concern with Iranian representatives in

Australia. The Government

expressed to him the deep

concerns the Australian

Government had about reports of

violence and the deaths of violence and the deaths of a

number of protesters, we number of protesters, we said

it was very important that all

Iranians had the right to

peaceful protest and the free

expression of their political

views. The internal sources of

the conflict are deepening, the

daughter of the former President Hashemi Rafsanjani

was arrested after addressing

Opposition supporters at the

height of last week's protests.

She's since been released. Her

father is a key figure in the reform movement and has been in

the power struggle with the

hardline leadership for years,

after dark the protest resumed

with Opposition supporters

chanting anti-government

slogans from windows and

balconies, now that daytime

rallies have been curtailed night protests have been

growing louder. A quick look at

the weather - rain in Brisbane

and Melbourne. Showers for

Adelaide and Perth. Fine in

Hobart. Fine and sunny in

Sydney, Canberra and Darwin.

That's all from us, Lateline

Business coming up in a moment.

If you'd like to look back at

tonight's debate with alwr, tonight's debate with alwr, and

Tony Abbott or review store Tony Abbott or review store -

Anthony Albanese, and Tony

Abbott, or review stories and

transcripts you can at Here Here is

Lateline Business with Ali Moore. Tonight the National

Australia Bank Australia bank

nabs Aviva to boost its wealth

management business. Assets of

this quality don't come along

all the time. A merger of

equals, Xstrata seeks a tie-up

with Anglo America. Xstrata is

aggressive in terms of

expansion process. This is an

aggressive form of picking up

marght share. And tax breaks

drive - market share. Tax

breaks drive business car

sales. They increased by the

best results in 9 year a jump

of 11% in one month.

To the markets - despite an

uncertain weekend lead uncertain weekend lead from

Wall Street, Australian shares

made solid gains, the All Ords

adding 16 on the back of rising

mining stocks, the ASX 200

rising half a per cent. The

Nikkei advancing by a similar

amount, Hong Kong's Hang Seng

closing at 11-month high, the

rally hasn't carried through to

London. The FTSE down 1.5%.

Having missed out on bank

merger, the National Australia

Bank set its sights on wealth managements, buying most of the Australian operations of the

British operator Aviva, if the

deal gets regulatory deal gets regulatory approval,

it will make the NAB the

biggest player in the wealth

business, while the purchase

looks opportunistic coming at

what may prove to be the bottom what may prove to be the

of the cycle markets are

volatile, wealth managers

facing an uncertain future with

a Government inquiry into

superannuation and fees due to

start next week Neal Woolrich

reports. Financial crisis -

what financial crisis? While

Government guarantees local banks continue to receive

Government guarantees the

National Australia Bank managed

to find $825 million to buy the Australian wealth management business of the United

Kingdom-based Aviva. The

acquisition includes the

Norwich union brand, Aviva's

life insurance operation and

investment platform

Navigator. It's opportunistic,

they expanded the wealth

management position at the

bottom of cycle. Expanding

product offerings, and it looks product offerings, and it

to be well priced. Investors

welcomed the deal pushing the

NAB share price up 1.8% on a

mixed day for other financial

stocks, it's expected the deal

will make NAB the biggest

wealth management provider in

Australia ahead of Commonwealth

Bank and its Colonial First

State operations. There's

incredible scale having the IT

network functioning and running

properly. If you look at other

offers, with it's about the

quality of advice, scale is not

as point. Analysts say integration risks could have

the biggest bearing on the

value of this transaction to

NAB. The Competition Commission

needs to give its approval and

there's also industry-wide

uncertainy over fee

structures. There's a lot of

inquiries in the industry, we

don't know where it will end

up. We have capability of

helping advisors, practices,

transitions away from fees,

we'll help those, it's

advisor's choice as to how they operate. Steve Tucker face

despite the recent rally in

equities, it's a tough time in

the wealth management

business. It's starting to feel

better, some clients are start

starting to poke up heads and

think about investing and

getting to value around at the

moment. It's early to call it

as being over. We have volatile

times ahead of us as the times ahead of us as

economy works through. Even in

volatile times, NAB expects acquisition will add to volatile times, NAB expects the

earnings within a year. We'll

spoke to NAB Chief Cameron

Clyne about the deal and other

issues faced by the banking

sector later in the

program. Size and scale are

also highly prized commodities also highly prized

in the mining world, just weeks

after Rio and BHP Biliton

struck a tale for an iron ore

joint venture in the Pilbara,

Swiss-based giant Xstrata seeks

a merger with Anglo America,

creating a miner roughly the

size of Rio Tinto, one capable

of competing with the biggest

resources group BHP Biliton,

it's far from a done deal with

regulators and Government sure

to have concerns, as far as the

market is concerned Anglo

America is in play, shares up

12% in London, with investors

betting other bidders will now

emej. Desley Coleman

reports. The world's mining

giants and shareholders are

still hungry for a megamercher,

the Swiss based Xstrata is the

latest to make a takeover play.

Xstrata has always been aggressive in terms of

approaches to expand. In is an

aggressive form of picking up

market share. When you look at

what Xstrata have to offer, and

what Anglo have to offer it

makes a reasonable tie-up. Strata has a share

market value of $41 billion,

it's one of Australia's biggest

miners with operations centred

on Queensland, where it owns

the Mt Isa metal mine, Ernest

Henry copper and goldmine and a

coal business, it confirmed the

friendly merger of equals

approach and says the suggested

is highly compelling and would

enhance scale and financial

flexibility to fund future growth. It's target Anglo

America has a market

capitalisation of $44 billion.

It says talks are at a

preliminary stage, and there is

no certainty of any deal. An

Xstrata-Anglo America tie-up

would create a mining giant

that produces copper, that produces copper, diamonds,

zinc coal and platinum, with

many overlapping projects

around the world. Research

among analysts suggest a union among analysts suggest a

could generate a billion in

cost savings. The sin erge gis

from the Australia side is

closing of staff in Brisbane,

merging of officers, mining

staff not so much, a lot has

happened. This latest merger

approach suggests the next rung

of operators are scrambling to

keep pace with larger rivals

like Rio Tinto and BHP Biliton.

Megamergers have critics. We

are creating another big house

with an ability to create not a

monopoly but tying up resource

into a few hands, that's a

great concern, because he won't

have a form of regulatory body

to oversee the global concern.

Competitors may object to the

deal with Xstrata not offering

a premium for Anglo America

shares, investors may not be

won over. With Xstrata, look

at the shareholders, they are

to spend and hedge funds, they are looking

to spend and expand aggressive

ly, you have block rock,

capital Group, these hedge

funds that are in the interests

of creating and making money,

and to me that's a concern in

sz, they are not miners, they

are there to make

money. Anglo's enthusiasm for a

merger may be dampened by

Xstrata's desire to take the

lead in managing the new

company. It could also face

political headwinds in South

Africa and Brazil where both

company's coal operations need

into the European market. Major

suppliers are BHP Biliton, out

of Colombia and Africa, if the

latter merge, if you take it as

a takeover than a merger,

becomes the dominant player, I

think the utilities in Europe,

the power utilities will be

disliking that as much as the

steel mills in Europe disliked

the Rio BHP Biliton the Rio BHP Biliton merger. The

Australian competition Consumer Commission says at Australian competition and

this stage it's monitoring the

proposal. However, analysts

believe Anglo's relatively believe Anglo's

cheap price means it's unlikely

Xstrata is the only miner

running a ruler over the company. This financial year is

shaping up as the worst on record for superannuation

funds, super ratings figures

show returns are down more than

16% for the year to may, but

the recent rally translated to

better returns in this calendar

year with funds gaining an

average of 6% in the three

months to may. For a look at

how the markets fared I spoke

earlier to Rob Taubman at

UBS. The market was high, it

was a quiet start to the

week. Yes, look, a quiet week. Yes, look, a quiet start

to the week. I suppose the

major sectors being financials and materials are trading

better today, which is a

positive signal and it think

the market is preparing for a

reporting season. We may well

see lighter volumes for the

next six weeks. What about

energy stocks, I note Santos

says LNG projects in Papua New

Guinea signed up a number of

LNG customers, there's a range

of long-term energy contracts

signed recently, how did energy

stocks go today. Definitely a

little better, that subject to

front of mind for the market.

With LNG projects scheduled to

go ahead in Queensland there's

a focus on customer Syme ups,

projects that Santos has a

share in, oil search share in, oil search in Papua

New Guinea, announcing further

contract signages, and the

market is focus on Origin

assist interest in Queensland,

whether they get

customers. Worley Parsons

signeded a foreign management

contract a project in Abu Dhabi, how significant is that. The company is a great

growth story in Australia, it's

a global player in resource and

energy maintenance, design and

construction. This is just

another sort of roll-on

contract within its field, as the contracts get larger they

need to replenish the contract

work in progress that they

have, it's a positive sign, we

have seen the company announce

many contracts in energy, in

terms of both in nuclear, oil

and gas so I think it is

continuing to trade quite well. Also today more well. Also today more weakness

in the property sector, how

much of an impact did the ratings downgrade on ratings downgrade on the

Goodman Group have. The ratings

downgrade had impact and those

issues for companies yet to

fully re capitalise will be

there very much at front of

mind. You had properties to

change hands, Moth sold sites

below book value, concern in

the market that property values

are falling in the real

world. So how do you think the

rest of the week will look for

the markets. I think the

volumes will remain light. I

think that may stay with us for

some time coming into reporting

season. Generally the tone of

the market feels positive, and

we are starting to see, you

know, an increased amount of M

& A on a global & A on a global basis

supporting things. Rob Taubman,

thanks for joining us. To the

other major movers on the

market. Caltex is one of the

biggest gainers, up 7.5 #%,

funds manager Perpetual climbed

4% -- as did Harvey Norman

investors buying restale

stocks, Rio Tinto failed to

halt last week's slide, the

miner shedding 1.5%.

Back now to our top story, in the National Australia

Bank's bid for the local Bank's bid for the local assets

of the British group Aviva, for

detail on the bid and for detail on the bid and for a

look at the broader banking

environment I spoke earlier to

NAB's CEO Cameron Clyne. Welcome to Lateline

Business. Thank you. $825

million on paper, closer to

$925, if you take income tax

the dividend and adjustments

for final net assets, you are

obviously happy with the obviously happy with the price

you are paying. I think we paid

a fair price, obviously the

headline price for us is $825 million, I think we were

balancing up a couple of

things, one is that assets of

this quality don't come along

all the time. But also the fact

that we are disciplined about

accusations and price,

therefore we want to pay a fair

price, I think we landed that

number. What does this deal say

about the health of the banks,

more generally, because on the

one hand you have the one hand you have the benefit

of the wholesale funding of the wholesale funding quarnt

guarantee of a deposit

guarantee, you have called for

a sweetening of a tax treatment

on deposits to build up the

deposit base, on one hand you

have the thinks helping the

bank through the global crisis,

on the other the Reserve Bank

confirmed your margins are

growing, and you can obviously

comfortably spend $825 million

without even a capital

raising. Well, I think a few

points there, perhaps if I take

them in turn. I think if you

look at the issue of the banks

and the wholesale guarantee,

that's clearly for the that's clearly for the benefit

of the Australian economy, and

that was appropriate that the

Government stepping in there at

a time of great disruption in

October last year and providing

that guarantee. With regard to

sweetening perhaps the

incentives for governments. The

observation I was making is

that Australia has a

significant pool of assets in

superannuation, and superannuation, and obviously

we are a player in that business, of course, as well,

but I was reflecting that that

is the most attractive asset

class in Australia from a tax

perspective, we do rely on

offshore funding, when you rely

on offshore funding, one of the

things you therefore have is a

degree of reliance on others

offshore to lend to you, I

reflected that there are ways

we can increase the pool of

assets, it may be a assets, it may be a broader

fixed income market in

Australia making Australia a

little less reliant on offshore

funding. There's a number of

issues there that all played issues there that all played a

to the strength and to the strength and stability

of the market. With regard

of the market. With regard to

our ability to pay we

maintained a Conservative

capital position, this has a

modest impact on the tier 1

ratioio, some 15 basis points,

it reflects that we navigated

ourselves in a sensible way and

took advantage of opportunities

when they presented. I guess the question then becomes how

much longer you need the

benefit of these Government

guarantees, the wholesale

funding guarantee in

particular, which many are now

arguing is serious distorting

the competitive landscape in

this country Well, we are

pleased we have been able to do

un guarantee issues

domestically and offshore. I

think it's a vote of confidence

in our and the in our and the Australian

banking system. With regard to the wholesale guarantees

though, the sensible thing to

do is to have them move in a

coordinated global fashion,

again, because one of the again, because one of the

issues apparent in October when

these guarantees were put on

retail and wholesale was, in

fact, other economies were

moving this that direction, perhaps Australia didn't need

it, but you can't be an outlier

in a market in some Dyer of

turmoil. If we start to

stabilise, it's sensible that

things are moved off in a

coordinated fashion, it's

pleasing that the appetite is

returning, but

returning, but again it need to

move off in a coordinated

fashion globally. What about

along the lines of what Canada

is doing, looking at

alternatives like residential

mortgage backed securities,

gardens fruct rather than the

snoourtion. It's the view of

this bank, - institution. It's

the view of this bank, we are

open to those initiatives, the open to those initiatives, the

big four banks provide enormous

stability to the economy and

helping recovery. One of the

factors that's important is the

banks are open for business and

lending, it's a huge asset in

terms of stimulate ing

recovery, by the same tongen, I

said it publicly - token, I

said it publicly, previously,

we need other tiers of banking, they address they address other sectors of

the market and risk the market and risk profiles,

we are open to discuss anything

that would help and stimulate

greater et competition in the

market but not combroomising

the stability of Australia as

an economy. If there's no

global movement away and

guarantees stay in place, will

that do long-term damage to the competitive structure of the

industry. I think the

assumptions that competition assumptions that competition

has disappeared, there may have

been a lessening of competition

to some degree with some

institutions, you know, not

participating in parts of the

market that they used to

participate in, reality is that

competition is intense, there's

intense competition for

deposits and you see consumers

benefit. There remains

competition, I see every day

deals presented that we are - where there's intense

competition around that, people

are competing against that to

win over key customers, I think

there's a strong element of

competition in the market. The

thing now is we need to have a

sensible and rational debate

around how we might move away

interest some of these

guarantees over time, and I

think again we need to look at

it on a coordinated basis. We

talked about competitive

issues, are you optimistic that

this Aviva purchase will get

through the ACCC without

hitting hurdles, clearly as we

flagged in the release today,

it's subject to approvals, and

we'll be going through the

process to seek them. We are

confident it doesn't debreach

the competition provisions. Is

this a tough time to expose

yourself further to funds

management, inflows are down,

returns you are down, is it a

tough time to get in deeper. We

are in this business now, we

think it's a business benefit

ing from scale, and the

transaction we have announced

today is about expanding

business we are in, and scale

will become important in this

industry. As we go forward.

There's a series of There's a series of challenges

at the moment in this at the moment in this component

of the market, both with

obviously the fluctuations

equity market and regulatory

changes going on as well. I

think we have taken a view and flagged it on a number of

occasion that is this is an

attractive industry. People are

seeking to protect themselves

to, you know, put in place

financial plans and plan for

their future, there's still

obviously a substantial amount

of inflow into superannuation,

so we feel in the medium so we feel in the medium to

long term the wealth management

business is one we are already

in, one we see opportunities

for and hence why we have taken

opportunities to expand on that

today. You make the point on today's announcement that you

are well positioned to cope

with market changes, after

today's transactions, are are well positioned duds it leave

the kitty bare, do you do

something else. We focus on

this transaction of the day, we

try to take a conservative view

on capital, this has a modest

impact on the tier 1 capital

ratio, I think we are at the

moment focussed on this

transaction, we see this as

being an attractive

transaction, we are pleased

it's good for an equity share,

we'll focus on that, delivering

the synergyies we outline,

that's all we'll do at the

moment. You rule out a capital

raising on the agenda at the

moment We are comfortable with

the capital position at the

moment. We flagged at the half

year results we are intending

to partially underwrite the

interim dividend, we'll

continue to do that. That will

proceed. We have no other plans

at this point in time. We are

comfortable with the capital

position, we'll maintain a

conservative until the cycle normalises. Cameron Clyne,

thanks for talking to Lateline

Business. Thank you. While the

politics of car financing is

proving difficult for members

on both sides of Federal

politics tonight there's signs

the Government's tax rebates

are having the desired effect

new car steals had their

biggest monthly rise in four

years thanks to a 50% rebate on vehicles bought for business

use. Andrew Robertson reports.

For Kevin Rudd it's a day

dominated by the ute. While ute

grabbed the headlines the

Government's generous tax

concessions on utes are quietly

helping the car industry out of

recession. We've seen a massive

jump in the sales of vehicles

such as utes, commercial vans

and trucks, they increased by

the best result we have seen in

nine years, a jump of 11% in

one month. According to one month. According to the

Bureau of Statistics new

vehicle sales had their biggest

monthly increase since early

2005, rising under 5.5% in

seasonally adjusted terms, the

11% increase in business

vehicles was well ahead vehicles was well ahead in

four-wheel drives with also a

solid rise and dwarfed

passenger vehicles up

3%. Phones been busy. Re. Adam

Kaplan runs the Hunter Holden

in Sydney's North and

north-west. He has no doubt the

extension of the small business

investment concession to 50 #%

is the reason why vehicle sales

lifted. I am not sure that the

30% allowance motivated small

business owners previously but

50% got them woken up. Adam

Kaplan believes it came in time

for the beleaguered car

industry. There's no doubt at

the moment the retail car

industry was hit with a industry was hit with a slump,

sales off 20-25%. Yes, our

business needs these things to

survive. It's not just the

vehicle industry benefitting

from the investment tax from the investment tax rate.

Simon Jones is a manager of a

cleaning system at Brookvale on

the northern beaches. My cut

feeling is our sales would be

down 20-30% if not for the rebate. Like Adam Kaplan

rebate. Like Adam Kaplan at

Hunter Holden, Simon Lane says

an announced of an increase in

the investment allowance to 50%

for small business is a

winner. We found the impact of

the first Government rebate was

watered-down by the tact watered-down by the tact that

when the media released that

information, there was fires

going on in Melbourne, and a

lot of it didn't get out to its

intended recipients. How is

the stainless steel baskets going. Unisonics is confident

to higher three more staff, the

big unknown is whether sales

are brought forward and will

fall back when the small

business investment allowance

ends on 31 November. 2010,

hopefully things are picking up

at that stage, and the rebate

is no longer

necessary. Hopefully the world

is a more normal place by then and we are back in and we are back in business.

Now for a look at tomorrow's

business diary. Fortescue

Metals votes on a $558 million

share issue to Chinese share issue to Chinese steel producer Hunan Valin.

Before we go at look at

what's making news in the business sectionses of

tomorrow's pap, Herald Sun - Xstrata's approach to Anglo

America revived the chances

America revived the chances of

BHP Biliton renewing its BHP Biliton renewing its tilt

for the whole of Rio Tinto. The

Australian - NAB's bid for

Aviva 's local Aviva 's local operations. Sydney Morning Herald Sydney Morning Herald -

examining the same story. Australian The Financial Review

looks at the impact of the

ute-gate affair on Malcolm Turnbull. That's all for

tonight as I leave you the Dow

is open down 75 or 0.9 of 1%,

the FTSE down 69 points or

1.5%, I'm Ali Moore, goodnight.

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