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Rudd Government of trying to The Opposition accuses the

buy its way out of bad policy

on aslyum seekers. The world

waits for Iran to back a new

deal that would allay fears

about its nuclear

ambitions. The Treasury Secretary predicts a quicker economic recovery for

Australia. And NSW beats

Victoria in the semifinal of

the Twenty20 Champions

League. Good morning. It's

Thursday 22 okd. I'm Virginia

Trioli And I'm jsh. The top

story on News Breakfast - the

Federal Government is under

fire for considering a plan to

pay Indonesia for the cost of intercepting boats of aslyum intercepting boats

seekers on their way to

Australia. The Opposition has

said the so-called Indonesian

solution is an attempt by the

Rudd Government so buy its way

out of bad policy. The

Government won't confirm

details of the plan, but says

it's seeking further

cooperation from Indonesia. 78

aslyum seekers on an Australian

customs ship are due to arrive

in Indonesia today. Another

boat carrying 22 aslyum seekers

was found near Ashmore Reef

yesterday and those on board

are now being taken to

Christmas Island. For more on

our lead story Hayden Cooper

joins us now from Canberra. Is

there any official confirmation

this morning of this bounty

plan? No, no official

confirmation but no denial from

the Government which is fairly

significant. So I think it's

pretty clear that Kevin Rudd is

working on a plan to spend more

money in this area and give

more money to Indonesia to deal

with some of these problems.

The negotiations themselves are

still going on and the next

opportunity for the two leaders

of the countries to meet may

well come as early as this

weekend at the east Asia summit

in Thailand, but as yet no

confirmation, just a lot of

talk about this idea, the

Opposition says, it's simply

subcontracting Australia's work

out to the region and they are

very critical, Sharman Stone,

their spokeswoman who is

leading so let's have a

look. Kevin Rudd has nothing to

coto Sol this problem it seems

other than to ask Indonesia,

"Please will you now intercept

people who we've lured on down

with our softened policy." Now

that can't work, it suspect

working and certainly Indonesia

is not going to be interested

unless they are paid quite an

extraordinary amount to look

after Australia's policy failures. This is about an

arrangement, a regional

framework which many measures

already in place that allow for

refugees to be safe in

Indonesia, apply for

protection, be assessed against

the UNHCR and if found to be

refugees, will then be

resettled. We've already

settled more than 1300 from Indonesia, Australia's taken

about a third of those. This is

an established process to allow

safe processing of asylum

claims in Indonesia. Now,

Hayden Cooper, there's also

news this morning that the

aslyum seekers that are now on

powered the 'Oceanic Viking'

allegedly sabotaged their own

boat? Yes,, it's an interesting

report this one. Shades of

2001. But the suggestion in

some of the papers is that they

had drilled holes in the hull

of their boat. Of course, they

were picked bup by the

Australian navy and then by the

'Oceanic Viking' after their

boat was deemed to be unsea

worthy. Of course, the

Government is refusing to

comment on this and if and when

it does arise today they will

be extremely cautious about

saying anything in this regard.

And as you said, as we saw

earlier, the boat itself will

arrive in the Merak Port today

and there are some comments

leaking out from various

Indonesians there saying that

they don't know where they are

going to put these Sri Lankans,

so accommodation may yet cause

a problem or two o New of

another boat this morning and

it did make its way to

Australian waters, it did get

inside Australian waters? This

one did, Joe. It got somewhere

near the Ashmore Reef, and was

spotted and then these 22

aslyum seekers on board of

course are being taken to

Christmas Island. And for the

record, it's the 34th boat to

arrive in the past year. In

other news this morning, Iran

is being given until Friday to

approve a draft plan aimed at

resolving international

concerns about its nuclear

ambitions. Now the proposal

from the International Atomic

Energy Agency involves Iran

exporting most of its enriched

uranium to France and Russia

for processing. Iran's chief

negotiator is yet to comment on

the plan which is a result of

several days of talks in

Vienna. The Treasury Secretary

Ken Henry has delivered an

upbeat assessment of

Australia's employment

prospects. Mr Henry has toll a

Senate estimates hearing that

Australia will return to full

employment quickly and pay even

experience a skills shortage.

He says unemployment will peak

at around 7% and that's well

below the Government's Budget

prediction of 8.5%. Extra fire

crews from NSW will start work

in Queensland today to try to

contain several large blazes

near Bundaberg and Rockhampton.

Crews have been battling fires

in central Queensland for about

three weeks now, no houses are

under der immediate threat. In

the United States, Federal

authorities are charged a man

with terrorism-related offences

including a plot to shoot nerns

a shopping mall. Authorities

allege Terek Mehanna and three

associates began planning a

series of attacks in 2001. The

US justice department also

believes that he travelled to

the Middle East in an effort to

join training camps. And the

head of the Australian Army

says live ammunition training

is necessary despite the death

of a soldier in a training

exercise in South Australia. Lance Corporal Mason Edwards

was killed and another soldier

was injured during a exercise

at the Cultana training area

near Port Augusta on Tuesday

night. An investigation is

under way into that

incident. The chief of the

United Nations nuclear watchdog

has given Iran and three world

powers a draft text which would

see Tehran export some of its

enriched uranium. The International Atomic Energy

Agency says the deal should

allay concerns ab-Tehran's

nuclear program. After days of

intention negotiations a draft

agreement on exporting Iran's

enriched uranium has been

reached. I very much hope that

people see the big picture, see

that this agreement could hope

the way for a complete normalsation of relation

between Iran and international

community. Under the draft deal

most of Iran's stockpile of low

and rich uranium would be

shipped out of the country for processing. It would be turned

into fuel to make medical

isotopes in a research reactor

in Tehran. Purely humanitarian mission, objective. Of course

you are well aware that we are

massive on enrichment technology, we can produce the

fuel for ourself for that react

and for 20% enrichment but we

have decided that we will

receive the fuel from the

potential suppliers which are

willing to do so instead of

that. The negotiations involved

the UN, Iran, France, Russia

and the US. And the agency says

it wants an answer by Friday. I

must say that everybody who

participated at the meeting was

trying to help, trying to look

to the future and not to the

past, trying to heal the

woundings that existed for many

many years. The plan is

believed to involve Iran

exporting its material to

France and Russia. Pakistan's

army says it has now killed 90

militants in its assault on the

Taliban in the restive region

of South Waziristan. As the

army pounds Taliban strong

holds with helicopter gunships

and artillery there's suffering

to the north of the

operation. The people of

Peshawar are dealing with a

devastated local economy and

the daily threat of more

bombings. There are no children

in this school play ground.

Instead, adults are trying to

defuse two home-made bombs. One

is pulled apart, but for the

second, the quickest way to

render it harmless is to let it

off. No children were hurt, but

it could have easily been

otherwise. The ancient city of

Peshawar has grown accustomed

to tense times. A trading hub

for centuries these case

business is slow. This shop

owner says in the past business

was good, particularly during

weddings and festivals, but

since the bombings began the

markets are empty. Traders say

residents are reluctant to

leave their homes. This man

says in particular, the blast

in Khyber bazaar and the attack

on Kohat road scared away

customers. This month Peshawar

was hit by two suicide

bombings. At least a dozen

people were killed last week

when a car was blown up in

front of the city's police

investigation bureau. The next

day, the Pakistani army

launched a major assault on the

Taliban in South Waziristan in

the neighbouring province. But

the operation has done nothing

to restore confidence in the

this city and the trader usonon

says the Government should

rescue the economy Our daily

turnover used to be 25,000

rupees, it ha nouz this runk to

5,000. I request that the Government waive or

taxes. Locals say business has

never been so slow and levels

of anxiety never so

high. Japan's new Government is

facing a first test of its

relationship with the United

States since coming to power

last month. US Defence

Secretary Robert Gates is in

Tokyo where he's been pushing

for the Japanese to allow US

troops to remain in their

country. Defence secretary

Gates is the first member of

the Barack Obama Cabinet to

visit Japan since Yukio

Hatoyama's victory. The new PM

has already taken a tough line

with the United States with a

plan to end a refuelling

mission for Coalition warships

in Afghanistan. As far as we're

concerned that's a decision

that's up to the Government of

Japan. That said, there are

robust opportunities for

additional kinds of assistance

to Afghanistan. Also at issue

is the military base at Futenma

in Okinawa and its 50,000 US troops.Le

TRANSLATION: I strongly believe

that spending too much time on

this issue won't be

constructive for both Japan and

the US. And I've said that to

Mr Gates today The base is

unpopular with many Japan

particular particular since a

number of US personnel have

been involved in sexual assault

cases on the island. Under a

2006 agreement, 8,000 marines

are scheduled to relocate to

the US territory in Guam. And

the airfield is to be moved to

a second US base also on

Okinawa. But Mr Hatoyama who

came to power on a pledge to be

more assertive with the United

States, wants to review the

agreement and many in his

Government want US troops out

of Japan all together. But

secretary Gates made it clear the President Obama

Administration expects Japan to

stick with the existing

agreement. Without the Futenma

realignment there will be no

relocation to Guam, and without

relocation to Guam there will

be no consolidation of forces

and return of land in

Okinawa. US officials hope to

resolve the issue by the time

US President Obama arrives in

Japan early next month. We'll

take a look now at the front

pages of the make other

newspapers around the country.

We start with the 'Australian'

and it's reporting that a boat

carrying 78 aslyum seekers z

was rescue bidity Australian

navy only after those on board

deliberate willy sabotaged the

vesz disglel the same story

features in the 'West

Australian' which reports that aslyum seekers sabotaged the

boat by drilling holes through

the hull. In the 'Financial

Review', Federal resources

Minister Martin Ferguson

defends Australia's domestic

and empl port coal industries. The Australian Securities and Investment

Commission has lodged a Federal

Court claim targeting

executives of the shalling mall

giant Centro.

The front page of the 'Herald

Sun' had a report that 23 of

Victoria's worst sex offenders are living in the community in

State approved houses and the

Piper can't tell you where they are. The 'Sydney Morning

Herald' reports on a plan to

implement a uniform national

tax on betting to fund the

racing industry. The 'Daily

Telegraph' reports that a

self-styled Muslim cleric has

allegedly written hate mail to the families of seven

Australian diggers who died in

Afghanistan. The Adelaide 'Advertiser' carries coverage

of the soldier who was killed

during a training drill at South Australia's Cultana

training area. A drunk driver

was lucky not to be decapitated

when his car slammed into a

truck reports the 'Northern

Territory News'. Hundred of

thousands of Queenslanders risk

losing their drivers licences

in a crackdown on so-called

fine dodgers writes the

'Courier-Mail'. And the

'Mercury' reports that

Tasmania's planning commission has recommended the State

Government reject a $300

million canal State development

in the State's south-east. If

you'd like to send us your feedback

feedback - Theor the top

stories on ABC News Breakfast -

the Federal Opposition has

criticised the Government plan

to pay Indonesia for the cost

of intercepting boats on their

way to Australia. The

Government says it's seeking

further cooperation from

Indonesia but it hasn't

confirmed details of the

plan. Iran has until Friday to

approve a draft plan from the International Atomic Energy

Agency on its nuclear ambitions. The plan is the

result of talks in Vienna and

involves Iran exporting most of

its enriched uranium to France

and Russia for processing. The

Treasury Secretary Ken Henry

has delivered a positive assessment of Australia's

employment prospects. He's told

a Senate estimates hearing that

unemployment will peak at

around 7% and that forecast is

well below the Government's

Budget prediction of 8.5%. As

we just mentioned in that run

down of what's happening in the

papers today the Australian

Securities and Investment

Commission has taken aim at

present and past directors of

one of the company's hardest hit by the global financial

crisis. ASIC alleges that the

2007 accounts of both Centro

Properties and Centro Retail Trust contained inaccurate

information of which the

directors should have been

aware. Shopping centre owner

Centro was one of the first and

biggest casualties as the global financial crisis swept

on to Australian shores.

Saddled with more than $4.5

billion in debt, Centro nearly

went to the wall as credit

markets froze. Its shares

plummeted from $7.48 in October

2007 to just 4 cents in

November 2008. Earlier last

year sh Centro management had

conceded the 2007 full year

accounts of Centro properties

and Centro retail trust might

have wrongly classified around

half a billion dollars of

interest bearing debt at

non-current when it should have

been current. Current

liabilities are ones which are

required under the financial

statements to be basically

settled or paid out within 200

of the reporting date Wrongly classified liabilities

especially in the for instance

yzed atmosphere of the global

financial crisis made Centro

looking less sick than it

really was. Eight men now stand

accused of a breech of their

duties. They are - Former chief for instanceal

officer Romano Nenna was not a

dlektor. According to ASIC

these directors and the officer

knew -

Which is in preach of

accounting standards and the

regulator has begun civilian proceedings in the Federal

Court seeking financial

penalties and banning orders.

It's the first time case

brought under new laws requiring the chief executive

and chief financial officer to

declare in writing that the

financial report complies with

accounting scan dards.. We are

now reaching an ageing company

history where directors will be required to understand the

process in which nose numbers

have come about and what points

have management made to come to

that? Centro has issued a

statement saying ASIC's action

is against individuals and not

the group. While chairperson

Paul Cooper and current

director Jim Hall say -

The Centro case is also

prompted discussion about the a

audit process. In the concise

annual report on Centro's website, PriceWaterhouseCoopers

makes no mention of

irregularities in the braens

sheet but the university of NSW

Michael Peters believes any

mistakes in the Centro accounts

should have been picked up. It

isn't one person's call. It is at least two to three people

and then it goes to a

subcommittee, of the audit, and

then it goes back to the

auditor, then it goes to the

board subcommittee. Directors

have the responsibility for the

financial statements. Auditors have the independent

responsibility to ensure that

what the directors are

presenting in terms of the financial statements and the

truth and fairness of those

financial statements are

actually in accordance with

what they are saying. Court

proceedings will begin next

month with the case not

excepted to get to trial till

the end of next year. The head

of the Reserve Bank says

Australia will return to full employment quicker than

predicted once the downturn is

over. While the Budget

prediction had forecast that

unemployment would reach 8.5%,

now they're likely to revise

downward and Dr Ken Henry said

we could have the opposite

problem. Once we get through

this period of macro economic

weakness, we will get back

within not too many years to a

position of close to full

employment and it is quite

probably - probably that in

that sort of labour market it

seems to me there will be

concerns once more about skill shortages. Ken Henry speaking

there. Amazing that we're

talking about skill short ables

again potentially just as we're

talking now about the threat of

inflation after having to dig

our way and apparently

ostensibly spend our way out of

a global financial crisis And

we've been hearing about these

skills shortages for decades

now. It may not just be a

cyclical issue BHP Billiton is

warning its Olympic dam mine

will be operating at a quarter

of capacity until at least the

new year. The reduced output

has helped bump up uranium

prices and BHP's not too

concerned. It's mine more iron

ore than ever. The Olympic dam

copper, uranium and gold mine

in South Australia is one of

the jewel's BHP Billiton's

crown. But two weeks ago a run

away ore carrier damaged the

haulage system the the mine's

800m deep main shaft. Olympic

dam producers around one tenth

of the world's uranium and its

production slowdown has sent

uranium prices soaring 11% in

the past for night. BHP

Billiton has now revealed that

Olympic dam will be operating

at a quarter of capacity until

early next year. There's

definitely concern about what

the best way is to optmise

what's a very good asset in

terms of inground resources of

uranium and copper and the

history of the operation has been that from time to time

we've had incidents that just

disrupt the flow. The problem

is pretty well understood and I

think that they'll be able to

rectify it within the time

frail that they've enunciated

there The company's production report for the September

quarter prior to the Olympic

dam incident provided mixed

news. Iron ore and petroleum

output hit fresh quarterly

highs, however, copper

production was down by 8%. BHP

shares fell almost 1.5% on the

production report before

closing just 8 cents louter in

line with the broader market's

move.. It's a steady as she

goes type outcome for the

quarter and there's no real

negative surprises . Iron ore

was particularly strong but BHP

have been producing at strong

levels year to date and really

didn't suffer the problems

associated with softer steel

making during the

downturn However the company remains cautious about the

global economic recovery. BHP

Billiton says China's restock

of commodities is essentially

complete and the company will

look for Chinese imports to

more closely reflect real

demand over the remainder of

2009. But it warns there is

little evidence yet of

sustainable demand for metals

emerging in developed economies

and a pick up may not appear up

till mid next year. We'll look

at the markets -

Vanessa O'Hanlon will be us

to take a look at the national

weather. And then we'll have a

review of some of the newspapers. This morning we'll

be joined by the presenter of 'Insiders' and 'Offsiders' on

ABC1, Barrie Cassidy. Now with

sport here is Paul

Kennedy. Thank you. NSW has

smashed Victoria in the

semifinal of the lucrative

Champions League tournament in

India. Let's look at some highlights.

COMMENTATOR: Giving himself

some room. Really powerful

stroke with vitality. Goes

again. This one's much straighter A second boundary

for the innings. Pulled and

with success. This one's in the

air and it's very safe. Goes

again. Cleers mid-off. Again,

short and wide and it's going

to be up - he's been run out by

a mile. He's gone. It's gone

fine and it's phone for four.

Bowled him. Around the legs.

Too much turn. Too much turn

but the finger has gone up.

That's in the air. Cannot clear

mid-off. It's gone. He's gone

straight into the stands. He's

gone. And getting himself

bowled or stumped. They're

going to finish their 20 overs

with 90 for nine. Well, you can

afford a little smile after

that. That was comprehensive

and emphatic. Mundine has won

another fight, barely. Well he

actually won the fight easily

but it was barely a stoush.

Here's what happened at the

final bell. Now he wants to

fight. The crowd doesn't like

it. They are booing. I don't

think they're booingman dean

either. I don't think they're

impressed in Aussie spirit

like. He came into survive.

Didn't make it really

entertaining for the fans. But,

you know, do what was in front

of me, man. The Argentinian not

really wanting to get involved

in punching which is an unusual

concept there. There's been

more UEFA Champions League matches on this morning.

Manchester United as completed

its game and beat CSKA Moscow

1-nil here is the goal.

COMMENTATOR: Valencia, he's

tucked it away. Uunited have a

goal. Five minutes from time.

It is the youngster have lensa

who strikes. He was there but

he just couldn't stop him and

there's the ball. We were

looking for him. There was one

anyhow in the game and I said a

goal would nearly one this

andty of feel that it probably

will. And it did. Saturday's

Cox Plate will be a make or

break race for popular galloper

El Segundo. A disappointing run

would mean retirement for the

injury prone 8-year-old. Like

many of his colleagues Colin

Little is a superstition man.

The Caulfield trainer is doing

everything in his power to

replicate the lead up to El

Segundo's success in the race

two years ago. He wins the Cox

Plate by two lengths. I went to

the same dinner last night that

I went to three days or four

days before the Cox Plate in

2007 so we're doing everything

we can to reproduce that No,

stone is being left unturned to

get the 8-year-old right for

Saturday. Some last minute fine

tuning from the physio

therapist and his daily dose of

horse chot and Little can

confident the horse can taste

success again.. He loves Moonee

valley. He's proved that. His record is very good there and

he's able to win a Cox Plate.

That's obviously the race for

him. But if he fails El Segundo

won't keep racing, just making

up the numbers. I would hate

him to go out on a

disappointing note so one of

these days we'll retire him.

I'm not sure if that's right

now we'll see how he goes And

Ballarat trainer Darren Weir is

a step closer to having a

Melbourne Cup starter after

this win in the Geelong Cup. He

got home to win. If the

galloper doesn't qualify for

the cup, Weir plans to run her

on derby day. And just if

you're wondering the prices and

the prize money now available

for those Twenty20 team, we'll

tug more about that but

certainly NSW are going to get

paid a lot better than

Victoria.. But the Vics don't

go away empty handed. I'll

bring you up to date with that

later.. ABC News can be watched

live on the web from

anywhere. That means is it

frees you up from your

television. Just go to your

computer. Visit - Here is

Vanessa O'Hanlon with the

weather and is it raining on

the rock? Just about. It's very

close to there. Dwo have cloud

that's hovering over the interior as we go to the

satellite image. There's a few

showers underneath around the

Alice Springs district. Patchy

cloud along the south coast in

von on shore winds ch that's

also causing a few showers in

west and South Australia. Very

warm northerly winds as a trough deepens from the

Kimberley. Triggering a few

showers and storms through

central Australia and near the

NSW ranges. Sea breezes along

the south coast ahead of a cold

front that will move towards

the south coast tomorrow.

Around the States -

Our top story on News Breakfast - the Federal

Government has come under fire

for a proposed floon pay

Indonesia for the cost of

interceping boats that on their

way to Australia. The Government won't yet confirm

the details but the Opposition

has accused it of trying to buy

its way out of the people

smuggling problem. 78 aslyum

seekers on an Australian

customs ship are due to arrive

in Indonesia today. And another

boat carrying 22 aslyum seekers

was found near Ashmore Reef

yesterday. Those on boards are

being taken to Christmas

Island. The Government says it's seeking further cooperation from Indonesia on

the issue of people smuggling

but the Opposition immigration

spokeswoman Sharman Stone says

the Government is making

Indonesia pay for its policy

mistakes. Now that can't work,

it isn't working, and certainly

Indonesia is not going to be

interested unless they are paid

quite an extraordinary amount

to look after Australia's

policy failures. I'm sorry for

him that he has such a big

problem on his shoulders now

and I'm sorry that beare the

cause of that problem. They

don't want unauthorised arivals

anymore than we do. They don't

want the numbers of people that

they don't know who they are,

where they're from, with all of

the potential downsides that

that can bring. That will

therefore mean providing

additional assistance to our

friends in Indonesia to help

with resettlement tasks, to

help with all the sorts of

associated functions which they

might undertake in the future

to assist us Australia and

other countries. PM Kevin Rudd

there. Well, it's been dubbed

by the critics as the Indonesia

solution. As a opposed to the Pacific solution which is one

put in place by the previous

Government. But are they the

same or to you are they

distinctly different? We'd love

to know your views.

In other news, Iran has been

given until Friday to approve a

draft plan aimed at resolveling

international concern about its

nuclear ambitions. The proposal

from the International Atomic

Energy Agency involves Iran

exporting most of its enriched

uranium to France and Russia

for processing. The deal would

enable Iran to obtain enough enriched uranium for its

research reactor but not enough

to produce a weapon. The

Treasury Secretary Ken Henry

has delivered an upbeat

assessment of Australia's

employment prospects. Mr Henry has told a Senate will peak at around 7%. That's

well below the Government's

budget predecks of 8.5%. Extra

fire crews from NSW will start

work in Queensland today to try

to contain several large

blazes. Crews have been

battling fires in central

Queensland for about three

weeks. No houses are under

immediate threat. Pakistani

helicopter gunships have

attacked Taliban bases mere the

Afghan border as fighting

intensifies in the South

Waziristan region. New video

released by the Pakistani army

reportedly shows weapons seized

from mill tans. Schools across the country have been closed

for rest of the week after

yesterday's suicide bombing at

a university in Islamabad. And

about 100,000 women in Italy

have signed a petition accusing

PM Silvio Berlusconi of being

offensive to women. Mr

Berlusconi recently described a

female Italian politician as "More beautiful than

intelligent." The Italian PM

has been beset by sex scandals this year and I think Virginia

Trioli knows what that female

politician said back to Silvio

Berlusconi. Indeed I do. It

was impossible to forget. He

made his comment when he phoned

in to an Italian television

talkback show and was

criticising this women for

criticiseling him and her

comeback was Mr PM, I am one of

the many Italian women not at your disposal. That seems to

have sparked off this petition

and that's one of the comments that are headlining that

petition around the country,

not at your disposal, so the

problems continue for Silvio

Berlusconi. The head of the Philippines Human Rights

Commission says she'll travel

to a remote region next week to personally investigate the activities of an Australian

based mining firm. The Oceana

Gold company is being accused

of human rights abuses

including forced evictions and

harassment around Didipio on

the northern island of

Luzon. Oceana Gold has been

under scrutiny for more than a

year. These amateur video

pictures show what human rights

workers describe as the

sometimes forced relocation of

people living in and around a

proposed mine site. Early this

month there was a tipping point

when hundreds of residents cop

fronted demolition crews backed

up by local police. Tear gas

and truncheons were said to

have been used. Everything that

is really an excess five force,

especially using tear

gas, These are just the latest

allegations of widespread

harassment and intimidation of local communities by Oceana Gold.

In a strongly worded statement,

the chairwoman of the Philippines Human Rights

Commission has now promised to

personally investigate the

claims. Leila M de Lima says

that if she if finds the

company guilt, criminal proceed

also follow and residents will

be returned to their

homes. It's an important step.

The commission on human rights

is a significant Government

body in the Philippines. The

fact that they're taking these

sort of steps demonstrates the

seriousness of the issues. And

the ABC believes the Australian

Government is taking the case

seriously as well. And is

awaiting the results of the Philippines investigation

before exploring possible

action of its own. Nobody from

Oceana Gold was available to

comment on the claims or the

investigation. The Human Rights

Commission chairs can woman is

expected to travel to the

affected area next week. Up to

21 people have been killed and

20 injuries in a train

collision in northern India.

The New Delhi bound Goa express

rammed into the back of another

passenger train in the early

hours of the morning. Survivors

fortunate enough to walk off

the train immediately began

working side by side with

rescue teams to get to those

still trapped inside. Army and

civilian authorities later

joined the rescue effort. The

Delhi bound Goa express rammed another passenger train which

was stationary at around 5am

local time. Some passenger were

sleeping on the upper berths of

the train this passenger says.

When the accident occur they

fell on us. We then realised

something has happened. We came

out and helped rescue some of

the passengers Just how a

moving train can came to be

travelling on the same tracks

as another one that was

stationary is still to be

investigated. Initial reports

suggest the express was at a stand stale buzz the passenger

has pulled the emergency train

and the driver failed to notice

a signal telling him to stop.

TRANSLATION: He was constantly

changing track and then he

rammed the train with another stationary train that was

already positioned on the

tracks. Many people have died.

Many have received injuries. India's rail system

remains the main form of long

distance travel with more than

1 # million passengers using it

every day. This accident ranks

as the most serious one since

February. When 16 people died

and 60 were injured when a

train derailed in the country's

east. From a stretch of

coastline wrapped in fabric to

a giant floral dog, Australia

has played host to some

controversy and very important

displays of contemporary art

and the driving force behind

many of those exhibitions is Sydney businessman whose name

is little known outside art

circles. John Kaldor is an avid

corrector who last year

bequeathed his $35 million

collection to the art galeary

of NSW. MUSIC

In 1 96 9 it was an event

which divided Australia.

American artist wrapped

Sydney's Little Bay using a

million square feet of material

and 35 miles of rope. It's hard

to define it so original, you

can't put a label on it. It's

creative. The whole things a childish exercise. Some people

might think it's art but I just

think it's a gimmick. I ask you

in all common sense what

contribution is this making to

Australian art? The man who

towned the vision into reality

was a young Australian

businessman born in Hungary in

1936, named John Kaldor. Well I

rove doing it because I think

tremendously important. Then we

were all young and all just

starting out and it was all -

well, sheer luck that it went well. One of the mairs mamg

Moore land art pieces anywhere

in the world. At that time most

of the coast around Sydney was

owned by the army or navy. So

John Kaldor had his work cut

out for him. I went into the

offices of the army and said,

"Look I'd like to borrow a

piece of your coastline" and

they said what for? We want to

erect a temporary kind of

sculpt jur. We want to wrap it.

So it was usually laughed at or

thrown out, they thought I was mad. Eventually John Kaldor was

given permission to use the

land scat Little Bay which was

being used as a rubbish dump.

Nmptel '69 there was no

Australia council, there was no

mux of contemporary art, there

was no museum with a curator of

contemporary art anywhere in

the cup. No contemporary art

spaces and in this totally

absence John comes along and

does things like this. The

wrapping of Little Bay was the

first in what would become a

long line of art projects

funding by John Kaldor for the

Australian public. A 40 year

retrospective is now being held

at the art gallery of NSW. I'm

quite Evan gelical about my

passion and I wanted to spread

the word, I wanted to show to

people what's happening

internationally. John Kaldor

made his name in fabric design.

And built a successful

international textile business.

His passion for contemporary

art began when his family fled

war-torn Hungary to Paris. So

my mother took me to the

Louvre, to the museum of modern

art and I thought this is

wonderful. From parities family

settled in Australia. Where the

young Kaldor began collecting

contemporary art. He began

buying pop art well before it

became desirable and expensive.

Did you ever meet Warhol. Several types. What was

he like? Strange. Very strange.

Very withdrawn, very ghost

like. Not terribly friendly. In

is v 1995. John Kaldor helped

Geoff Coons realise his floral

puppy sculpture outside a

museum in Sydney. Everybody

told him not to do it. It's going to be too expensive. It's

not going to work but he pulled

it off. John Kaldor found an

engineer to design the 12m

straur and the internal

irrigation system to hydrate

the floral canine but not

everything went according to

plan. There was a at all plant

growing between his ears out of

all the flowers so I asked one

of the attendant "What's that?"

He said John you don't want to

know. I said, "Come own need to

no." He said that's a certain

type of plant. I thought it was

quite funny, quite

innocent. But Geoff Coons

didn't. When he heart about the

plant he outraged. He got so

upset he said the puppy is

about love, about purity, about

innocence, you have to remove

it immediately. I said, "Fine."

You know, he rang me up every

hour, "has it gone yet, has it

gone yet?" After retiring from

the fabric business recently,

John Kaldor gave his estimated

$35 million art collection to

the art gallery of NSW. It's

one of the biggest donations

ever. Now he's thrown all his

efforts into the public art

projects. It's now his job in a

sense, yub, it used to be hobby

in a sense, but I think it was

always the most important thing

in his life. For John Kaldor at

age of 73 this is just the

beginning. I don't like looking

back. I don't like reflecting.

It doesn't occur to me whether

I make a mark or not. I want to

keep doing things. The

pleasure, the excitement, the

Chang, is always in the next

project. And there is it is

amazing to see those black and

white picks of the wrapping the kroes. These public

contemporary art displays. I

didn't know they happened back

then. The Christo wrapping was

one of the most important

wrapping he did. But that one

at Little Bay was really

significant and a special

mention also to puppy out the

front of the MCA it was

glorious and as it flowered and

the bees came and went it was a

really beautiful thing. I love

the vox pops from back then of

the guy in the suit saying

"this just rubbish." Mpls they

still say it They do. The top

stories this morning - the

Federal Opposition has

criticised Government plan to

pay Indonesia for the cost of intercepting boats on the their

way to Australia. The

Government says it's seeking

further cooperation from

Indonesia but hasn't confirmed

details of the plan. Iran has

until Friday to approve a draft

plan from the International

Atomic Energy Agency on its

nuclear ambitions. The plan is

a result of talks in Vienna and

it involves Iran empl porting

most of its enriched uranium to

France and Russia for

processing. And the Treasury

Secretary Ken Henry has

delivered a positive assessment

of Australia's employment

prospects. He's told a Senate

estimates hearing um will peak

around 7%, the forecast is well below the Government's

Government prediction of

8.5%. We'll take a look at the

national papers and we're

joined but anyhow the presenter of 'Insiders' and 'Offsiders'

on ABC1, Barrie Cassidy. Good

morning.. Good morning. Now

we're hearing talks of aslyum

seekers apparently having

sabotage their boats. I have

echoed and memories of earlier

times? Page one story in the

'West Australian'. Others have

picked up on it as well but the

aslyum seekers on board the

boat pick up by the 'Oceanic

Viking', apparently drilled

holes in the hull of the boat

and then plug them up

temporarily. This is becoming a

fairly common practice I think.

Chris Evans, the Immigration Minister pointed out that John

Howard found out that people

disable bows so they can't be

turned back essentially. The

'West Australian' has had a

good run on the aslyum seeker

story which the way. A week or

so ago they broke the story

that Kevin Rudd had spoken to

President Yudhoyono about

turning that first boat back.

The one that's still sitting

there in the harbour so they've been well on top of the story. You just would have

thought if they were going to

stab Taj the boat and they

wanted to get to Australia they would have done it in Australian waters, not

Indonesian waters?. That's I

think why they did this

temporary arrangement. They drilled holes in the hull

according to the story and then

temporarily, so that at any

point that suited them and when

in Australian waters they could

disable the ship It is it fawn

or inaccurate to describe what

the Rudd Government is

attempting to do with Indonesia

as the Indonesia solution,

thereby echoing what John

Howard did with Nauru? It's a

common term now and it will be

picked but there's a

fundamental difference, in

Nauru they essentially became

Australia's problems and

remained Australia's problem whereas this way the problem

stays at the source and that is

Indonesia. It's hard to see

Indonesia agreeing to this

indefinitely though as the

numbers keep coming and the

numbers in those detention

centres keep swelling because

they're at breaking point

already importantly

apparently? It may not be a

long-term solution. I can understand why the Indonesians

would go for it because there's

money involved in it and can

help them in their own

operations in terms of their

training and being better

resourced to deal with the

problem Is the tone and tenor

of the coverage of this wave of

aslyum seekers marketedly

different from previous

types? Not really. I think it

was a bit disappointing through

last week that fs it was very

similar. Very different

yesterday in Question Time.

Kevin Rudd in fact didn't take

a Dorothy Dixer on his trip to

Indonesia until the very last

question so I think he's now

taken a decision that he he

would like, "To deemphasise the

story a bit. The Opposition's

not queen to do that just jet.

Kevin Rudd it's taken a bit of

stick within his own team. Very

unusual because tear such a

disciplined lot and these days

Kevin Rudd decide who is in and

out of the ministry and that's

had a great impact on the way

this Government operates I

guess Michael Danby has nothing

to lose? There are one or two

in that position who don't

fancy themselves in the longer

term as Ministers and therefore

they can have a bit of a go and

I think he has had a bit of an

impact and I notice that Kevin

Rudd has stopped using the term

illegal ill grant and came

under a bit of criticism from

Tim Costello and others because

of that and it's not correct,

technically. In wake of the

death of this soldier at the South Australian base, we've

got a couple of stories this

morning about, they're pretty disturbing It comes straight

after that, so I guess it has

more impact as a result but the

telegraph's front page lead

about cruel letters to war

widows and the story is about a

Muslim cleric who was born in

Iran and migrated to Australia.

What he's been doing is finding

out after somebody's been

killed overseas, he's been it

writing to the fam and I'll

give you one example. I'm sorry

that uyour son was killed but

he was guilt of murdering

innocent people and in one case

one of these letters was

actually hand delivered to the

family at a funeral. So these

are allegations but what ha

he's been charged with under

the law is using the post to

cause offence or

harassment. It's an unusual

charge? It is. Who would have

known that it existed I suppose

until something like this comes

up but the families have said,

what a terrible thing to

happen. You lose a family

member and then you get

something like this We'll move

on to the 'Financial Review'

and there's a story in there

you want to talk about? The

front page leads of the

'Financial Review' is Labor

backs coal despite climate

fears and this arises from an

on ed piece nah maerg the

Minister for resources, has

written for the 'Financial

Review' and essentially what the Government is doing,

they're going on the front foot

about coal. They don't want

this issue to get out of

control. They're saying "Look

there's no question that this

Government will continue to

export coal. The coal as he

puts it is crucial to a well

functioning economy. And it's

not going to disappear." Is

issue is how you reduce

emissions. This is reassurance

to the coal industry because

they can see this attack coming

from the Opposition in the

run-up to the election in those coal sensitive electorates so

they're basically trying to

slam the door on that and

saying that they're not

attacking coal as such. They're

just simply trying to find ways

to reduce emissions. It's hard

to see how the Government would

have had to come out and assure

companies that that's their

stance anyway because from

everything they've been saying,

it didn't really appear that

there was going to be

significant cuts to exports or

anything anyway. There are just

continuing down that path of clean coal technology and

throwing so much money at

trying to develop that clean

coal technology Yes,. When those suggestions came up that Victoria fra for example was

about to sign a new deal to

export coal to India that

became a front page debate and

so they want to kill that off.

There's no suggestion that

they're going to be cutting

back on exports. It's the

carbon capture and storage that

they want to work on it let's

face it - Australia has such an

abundance of coal that that's pretty much why they don't want

to walk away from it. Getting a

lot of money from it The key

part and element of winning

this debeat, that's always been

the really thorny part of

wanting to be seen to be clean and green and responsible in

terms of reducing emissions,

this argument by Martin

Ferguson or something else? I

think in tend lit come down to compensation and how

individuals are affected by

this and how they'll be

compensated and likewisely the

industry and how they'll be compensated and that also

becomes a question of how much

will that cost As long as we

don't see footage of coal eers

being laid off and the gates

being locked on them or cues of

people at Centrelink? For this to work that will have to

happen in some places because

the there has to be a shift in

the way the economy works. That's a discussion the Government doesn't want to have

though.. They won't it for many

years to come by the way. You

won't see that impact for a

long time yet. What's going on

in South Australia? The

Opposition Leader Isobel

Redmond has come up with this

idea that she wants to be shot

by a taser gun. Has she done

something bad?. She wants to

argue that they're of some

value and waps them introduced

for the frontline police. The

fact that the Government agrees

this is a good idea seems to

have escaped here. As she sheen

this done before. I know it's

happened in NSW and there's

been a volunteer do it and it

just looks... She's had three

babies, she knows what main is

all about, so she can put up

with, but the most intriguing

comment the takes is "this is

not a publicity stunt." This is actually policy investigation. She needs to do

this. For the good of the

State. I hear that a very well

known ABC celebrity has offered

to get involved. Red Symonds on

Melbourne radio has interfered

in South Australian politics by

saying he's only too happen to

go over there and shoot her and

shoot her again if he wants

to. He'll have to take a number

and get in the queue.. There

might be a few people in South

Australia ahead of him. Thank

you. You can watch all of our show streamed live every

morning. The address is - With

sport here the Paul Kennedy..

Good morning. NSW has smashed

Victoria in the Twenty20

semifinal over there in India.

It was David Warner and Phillip

Hughes the two lefties at the

top of the order that really

set the scene. Didn't help

Victoria's cause that they lost

the toss on this particular

pitch. But NSW made a really

good innings of about 150, 160

and Victoria never really got

near it and in fact at the top

of the Victorian order, Nathan

Hauritz opened the bowling, the

sometimes gentle off spinner

and you can see what happened

then. He clean bowls one and

then gets a dubious LB decision

there. Completely outplayed.

The vib. They walk about

$55,000 to share among

themselves and NSW assured of

about $1.4 million and if they

win the final, against either

the Cape Cobras or the Trinidad

to big a you team they'll take

away $2.5 million so starting

to look at some big money

there. And we'll move to the

soccer now. There's been some

Champions League games in the

UEFA section and Manchester

United won its game 1-nil over

a team from Moscow. We'll just

have a look at the next goal

here. Real Madrid is currently

playing AC Milan. You don't see

this every day. That's the A. C

Milan goalkeeper just spilling

one - How much does he get a

year? He would get millions of

dollars. His maim is Dida, he's

a long time Brazilian

goalkeeper. He'd like to have

than with again. And can't

blame the beach ball! That's

right. We'll just a quick look

at the high lights of or the

low lights from many Mundine

fight last night. He fought an

Argentinian in Tasmania on his

way to a re-match with Daniel

Geale and the Argentinian was

boo Poed for not throwing many

punches. Another fairly

ordinary fight for Mundine. I

wish he'd get to America and

fight some of those top

names. Thank you for that Paul.

With a look at territory here

is Vanessa O'Hanlon. Straight

to the satellite image. Very little cloud over the the

country today. Just over the

interior, we do have some cloud

that's causing a few showers around the Alice Springs

district. Pampy cloud along the

south coast. That's causing a

few showers in west and South

Australia. Very warm northerly

winds as a trough deepens from

the Kimberley right through to

NSWment it's causing a few

storms through and near the NSW

ranges. And with another might

he's developed near the

Tasmanian area last night, it

is a little bit warmer across

the country but from will be a

cold front that passes through

the south-east tomorrow. - h

Still ahead - we'll be

speaking to the Federal

Communications Minister Stephen

Conroy about those plans to

split up Telstra. And we'll

have lots more for you as well

so do stay with us on News

Breakfast. We're back of this

vor short break.

This Program is Captioned

Live.

The Opposition accuses the

Rudd Government of trying to

buy its way out of bad policy

on aslyum seekers. The word

waits for Iran to back a new

deal that would allay fears

about its nuclear

ambitions. The Treasury

Secretary predicts a quicker

economic recovery for

Australia. And NSW beats

Victoria in the semifinal of

the Twenty20 Champions

League. Good morning. It's

Thursday 22 Octoberment I'm

Virginia Trioli. And I'm Joe

O'Brien. The top story on News Breakfast - the Federal

Government is under fire for

considering a plan to pay

Indonesia for the cost of

interceping boats of aslyum

seekers on their way to

Australia. The Opposition has

said the so-called Indonesian

solution is an attempt by the

Rudd Government to buy its way

out of bad policy. The

Government won't confirm

details of the plan but says

it's seeking further

cooperation from Indonesia. P 8

aslyum seekers on a ship are

due to arrive in Indonesia

today, another boat carrying 22

aslyum seekers was found near Ashmore Reef yesterday. And those on board are now being

taken to Christmas Island. For

more Hayden Cooper joins us now

from Canberra. Overnight has

there been any official

confirmation of this bounty

plan? No no official

confirmation Joe but it is pretty clear that the

Governmen