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ABC Midday Report -

View in ParlView

(generated from captions) Live. This Program is Captioned

Live. Changing direction -

Julia Gillard's retreat on a

processing centre. I said in my

speech that one possibility was

a centre in East Timor. A spy

for a spy - Moscow and

Washington's espionage deal.

India's slow wheels of justice

for a child sex case against an

Australian.

REPORTER: Are you innocent, Mr

Dean? That is correct. The

latest weapon in keeping

marauding dogs at bay. They

will go out of the mob of sheep

and they will chase them

. Hello and welcome to

Australia's News at Midday, I'm

Tracey Kirkland. Rallies on

Wall Street and in Europe

aren't tempting many local

investors today. The All Ords

is just 5 points higher after

two hours of trade. The Nikkei

and the Dow is up and the

dollar is at US 87 cents. More

finance and Alan Kohler later

in the bulletin. Yesterday she

denied it, today she confirmed

it - East Timor is a possible

location for Julia Gillard's

refugee processing centre. In

Perth, the Prime Minister has

sought to end the confusion

over her policy and soothe

concerns about the issue. But

after refusing to name the

country yesterday, the Prime

Minister's been accused of

making policy on the run. Up

until yesterday, the plan

seemed clear, but how changes

have changed. After denying

she named East Timor as a

preferred location for a

regional processing centre, the

Prime Minister has shifted

ground again. I said in my

speech that one possibility was

a centre in East Timor. Julia

Gillard says her speech earlier

this week on asylum seeker

policy outlined a long-term

vision. Look, I think she's

desperately trying to spin her

way out of a problem and I

don't think the public will be

fooled by this. Protesters at a

breakfast function in Perth

made their views known. Those

critics who want to declare the

approach dead in a week are

mistaken, and I think they will

be disappointed. East Timor's

political leaders met yesterday

to discuss the idea of a

regional processing centre in

their country. They want more

details. We have not even

received a letter or a meeting

with Australian ambassador or

anyone from Canberra to put

forward to us the details of

this proposal. The Prime Minister's been very clear

we're pursuing a regional

solution, we're talking to our

partners in the region and

we'll be pursuing that over

coming weeks. Julia Gillard's

handling of this announcement

continues to come under

scrutiny. First, she was

accused of by-passing East Timor's Prime Minister. The

Opposition says she also failed

to consult her own Foreign

Minister. A week before the

plan was revealed, Stephen

Smith was questioned about whether greater regional cooperation on people smuggling

was likely. I never make

comments about timing for

Government announcements, but

that is an expectation I

share. What was supposed to be

a smooth pre-election manoeuvre

is proving to be more

difficult. With Prime Minister

Julia Gillard still sorting out

her asylum seeker policy, The

Greens are getting in on the

act. They've launched their

refugee policy and it stands

apart from the options of the

Greens' Senator Sarah two major parties. Australian

Hanson-Young joins me now from

Melbourne to comb through it.

Sarah Hanson-Young, you're

rejecting offshore

processing? Yes, we are. We're

rejecting the failed policies

of the past. We know that the

Pacific solution isn't work.

We know it was inhumane. It

breached many of Australia's

obligations and, of course, it

didn't end up being a long-term

practical or humane solution.

So, of course, we are rejecting

offshore processing and instead

we should be looking at how

Australia can assess people's

claims here on the mainland.

If we want to be a true leader

in our region and show

leadership, we need to be doing

everything we can to ensure we

process people's claims in a

fair, fast and humane manner

here on the mainland showing

that Australia can take more

refugees. We know we need to

increase our humanitarian

intake and ensure we talk with

including Indonesia and our regional neighbours,

Malaysia and ensure they sign

the refugee convention. Closing

Christmas Island and processing

people in capital cities here

in Australia, where will people

live? Well, there's a number of

different options and we know it's extremely expensive to

processing such as what is continue to run offshore

happening on Christmas Island.

Billions of taxpayers' dollars

wasted there. It's much

cheaper to do it here on the

mainland where we have access

to services and resources that people who are in genuine need

of protection need access to. Let's not forget that the

reason why we need to protect

people who are fleeing

persecution, many of them have

suffered torture and trauma.

They need access to services

that are easily accessible on

the mainland, not so accessible

on a remote island and

definitely not as accessible in somewhere like East Timor.

It's simply not a very good or practical cost-efficient or humane policy to suggest that

Australia can continue to push

away our obligations out of

sight, out of mind and instead,

we should be showing true

leadership and showing that

Australia does take its

responsibilities seriously,

that we can set the human

rights standards, that we don't

have to detain children and we

can process people's claims

quickly and fairly in a

regionalally centrally located

areas here on the Australian

mainland. Sarah Hanson-Young,

thank you. Thank you. In a

throwback to the Cold War, Russia and the United States have agreed to a prisoner

exchange to end a damaging spy

scandal. Ten members of a

Russian spy ring pleaded guilty

in a Manhattan courtroom and

will be deported from the

United States. Russia has

promised to release four

prisoners of interest to the

west, in return. Craig

McMurtrie reports. The

extraordinary deal involving 14

alleged spies was finally

unmasked inside a Manhattan

courtroom. For the first time,

the ten members of America's

suburban spy ring sat together, those who were married held

hands. All pleaded guilty to

one charge of conspiracies to

act as an un registered agent

of a foreign country, a money

laundering count was dropped.

The judge ownered they be

expelled from the country,

forfeit US assets and agree

never to attempt to return to

the US. Anna Chapman's lawyer

says after days of solitary

confinement she wants to see

her family in Moscow, but as a

dual British-Russian citizen

she also hopes to relocate to

the United Kingdom. It is my

understanding that all of those

who entered a guilty plea will

be boarding a bus which will

take them to one of the New

York airports to be transported

to Moscow. The lawyer for

Peruvian journalist says she

was offered free housing and a

monthly allowance in the spy

swap deal. Children will

return to Russia with their

parents. The State Department

said the prisoner exchange program had been agreed on national security and

humanitarian grounds. In

return, Russia agreed to

release four prisoners,

including American researcher

Igor Sutyagin jailed in 2004.

The State Department says he

wasn't a US agent. We deny that

he's a spy. The three other

prisoners being released by the Russians are described as

former members of the military

and Russian intelligence,

jailed for spying, who are now

in poor health. Administration

officials are describing the

deal as a quick and pragmatic

solution, one approved by the

US President. It brings to an

end the embarrassing spy

scandal and avoids a messy

trial. Three men have been

convicted in London of plotting

to murder hundreds of people in

suicide bombings. They were

part of the plot that changed

and face of air travel leading

to restrictions on liquids in

hand luggage. At a previous

trial, they were cleared of

knowing that airlines were the target, but prosecutors said

they were committed to the

principle and practice of

violent jihad. From London,

European correspondent, Emma

Alberici. Ibrahim Savant,

Arafat Waheed Khan and Waheed

Zaman - all guilty of a

conspiracies to murder. They'd

been signed up in Britain by an

al-Qaeda operative to become

suicide bombers. Now the time

has come for you to be

destroyed. Their leader had

targeted seven flights heading

to North America on the same

day. Each was to be blown up

in mid-air. When the plot was uncovered four years ago,

authorities around the world

introduced sweeping changes to

air travel, including limits on

the amounts of liquid allowed

in hand luggage. The plan was

to drill holes in plastic

bottles and fill them with

drink powder mixed with

hydrogen peroxide. They were

to smuggle them onto planes

hidden with detonators in

disposeable cameras. An

explosives expert tested the

same devices on this fuselage. The impact would have been

worse in a pressurised cabin at

high altitude. All the men

lived in London, and to those

around them were fairly in

conspicuous. They supported

local football teams and one of

them worked here at Ham leys

toy store on this, one of the

city's most iconic shopping

strips. The bombs were made at

this house in East London,

where the men also prepared

their suicide videos. There'll

be daily torment in this world

and a greater torment awaits

you in the hereafter. It's the

culmination of the biggest

surveillance operation mounted

by the police and MI5 in

British history. Indian police

say they will protect witnesses

testifying against an accused

Australian paedophile in India.

Paul Henry Dean has appeared in

court to deny committing sexual

offences against boys and young

men in the Indian State of

Andhra Pradesh. But child

protection groups fear the case

will collapse, because Indian

prosecutors have been too slow.

South Asia correspondent, Sally

Sara reports. The case against Australian paedophile Paul

Henry Dean has been stuck in this Indian courthouse for nine

years. All the while, Dean has

been able to walk free.

REPORTER: Mr Dean, have you

abused children? Never. So are

you saying these children are

lying? Are you innocent, Mr

Dean? That is correct. Dean was

charged with having unnatural

sex with 12 boys in August

2001. He was arrested on

similar charges in 2008. But

both cases have been stalled,

delayed, forgotten and

adjourned for months and years

at a time. This was supposed

to be the day that the case

against Paul Dean finally

started moving forward. The

lead witness was produced

before the court but has asked

for more time. The proceedings

have now been delayed for yet

another week. Paul Henry Dean

has been living in India on a

false Australian passport for

more than 30 years. He's been

repeatedly accused of sexually

abusing independentand boys,

but the justice system has been

painfully slow. If the

perpetrator is out on bail and

those children fear what might

happen, those witnesses are not

going to come forward and if

that's the case, the case may well collapse. Indian police

are promising to protect the

witnesses, but after almost a

decade, no victims have taken

the stand and testified in

court against Dean. If there

are complaints of harassment of

him, if anyone comes to the police, we will take

action. Dean could be

extradited and tried under

Australia's child sex tourism

laws, but the Federal

Government says the current

cases must be dealt with by the

Indian courts first. If Dean

is acquitted in India, he can't

be retried in the same case in

Australia. The United Nations

has shut its office in Sri Lanka and withdrawn its

representative over a series of

protests. But the anger over

the UN investigation into human

rights abuses continues. Sri Lanka's Housing Minister has

begun a hunger strike outside

the UN office, saying he will

continue until it calls off the

investigation. He received the

blessings of Buddhist monks for

his protest. The UN is investigating alleged human

rights abuses by the government

during Sri Lanka's civil war.

Los Angeles police have charged

a man with the so-called Grim Sleeper killings after searching for him for over 20

years. He's been responsible

for more than 10 murders, but

was only arrested when

investigators had a stroke of

luck with DNA evidence. The

so-called Grim Sleeper murders

were the coldest of cold cases,

but for three years the LA PD

has had seven detectives

assigned full-time to the case.

Their big break come

unexpectedly last week when a

man in jail for a separate

crime turned up as a partial

DNA match. Why? Because he's

the son of the suspect. Long

are the days of the drag net

where guys solve the crime in

short order. It's a different

world. The detectives zeroed in

on a man who lives here -

Lonnie David Franklin. His

house is around the corner from

the crime scenes and the bill

boards showing the faces of the

grim spleerp's ten victims. Mr

Franklin had to drive by those

bill boards. He resembles the

police stretches from 20 years

ago. Franklin had no DNA

sample on file so the LA PD

staked him out and on Monday

got the final piece of the

puzzle - a DNA sample from an

item he discarded. One of the

items was a pizza crust. Yes, a

pizza crust and the DNA was a

match. DNA evidence has helped

convict serial killers before,

even years after the fact, but

never before has a family

member's DNA been instrumental.

In the neighbourhood the Grim Sleeper terrorised for two

decades, huge relief. That's my

little sister on the right and

that's her best friend

here... This was the sleeper 's

eighth victim. Thanks to cutting edge science and

old-fashioned police work, the

community can begin to move on.

There's been a bit of a

turnaround in the last few days

after gloomy weeks on the

sharemarket. A surprise surge

in the number of people finding

work and positive global growth

forecasts have buoyed the

market. To help us make sense

of all of this is Alan Kohler from 'Inside Business' and the

Eureka Report. Alan Kohler, so

good times must surely be

around the corner? It's

certainly the case that the 15%

correction that began in

mid-April and continued until

sort of early July is thought

to be enough. Whether or not

there's going to be good times

ahead it's a bit hard to say,

but basically the investors

have felt that the market had

fallen enough to take account

of bad news, so when there was

good news this week, we saw

banks in the US increase their

profit forecasts, there was a

very dramatic response to that.

The Wall Street sharemarket

rose 3% in response. Our

market yesterday had a very

good day, up more than 2%. A

bit flat this morning, but

still, a very strong response

to the good profit news in the US. Those surprisingly good job numbers have fuelled

speculation about rising

inflation and higher interest

rates. Should people with a

mortgage be looking to baton

down? I suppose the first thing

about the job numbers is yes,

they were surprisingly good and

it's good news really, because

it shows that the economy's

going well and we're heading

for full employment, if not

there already. People who want

a job can get a job, but it

does mean that the next move in

interest rates will be up,

which is not that much of a

surprise. Rates were on hold

this week by the Reserve Bank,

but there's generally a feeling

that if rates don't go up next

month they'll go up the month

after. The IMF has raised their

global growth forecasts but

there's speculation about a

double dip recession? Yes, I think that speculation is

fading a bit. We saw that in

the markets in the last couple

of days. The IMF doesn't

always get it right of course,

but it did increase its

forecast for this year's growth

globally from 4.2 to 4.6% and

it was pretty well across the

board. Europe, the US and Asia

all have seen an increase in

the IMF's growth forecasts for

this year and really, I mean it

is good news. It does reflect

a sense in the official

community and among economists

that things are looking pretty

good this year and that the

chances of a recession, a

double dip recession are much

lower now. Just briefly, what

have you got going on, on

'Inside Business' this

weekend? This week we saw Orica

the big chemicals and explosives company vote

yesterday to demerger into two

companies Dulux and Orica. I'm

interviewing the managing

directors of both these

companies after their divorce.

We'll see what the marriage

partners are saying after the divorce. Alan Kohler, thank

you. Thank you. The Federal

Government has named more

cities and towns in the roll-out of the national

broadband network. The new

areas may not be connected

until at least the middle of

next year. They include Toowoomba and parts of

Brisbane, Coffs Harbour and

riverston in outer Sydney.

There's batchus marsh and the

Adelaide suburbs of Modbury and

prospect and Perth's Victoria

Park, rounding out the list

Geraldton and Mandurah in WA,

Casuarina in Darwin and the

ACT. Rebecca Hyam, local

trading has been a bit flat

today? It has and that is

surprising given the solid

gains on global markets

overnight. Australian shares

opened more than 0.5% higher

but have since flattened up.

At lunchtime in the east the

All Ordinaries Index is up 1

point to 4,375 and the ASX200

is also keeping its head above

water, up 1 point as well. The

miners are a bit mixed today,

despite gains in base metal

prices last night. BHP

Billiton's down two-thirds of a

percent falling below $38. Rio

Tinto faring better with gains

of 39 cents and Fortescue up

almost 0.5% to $4.37. Santos

making headlines today, why's

that? Santos is rumoured to be

in talks with Shell about

selling a stake in the Gladstone Liquefied Natural Gas

project in Queensland. Santos

says it's in discussion with a

number of parties, but won't

confirm any details of the

negotiations . Its shares have

jumped more than 7%. And just

finally, daifrd Jones is on the

move, what's happening

there? It's terminated the

lease at Westfield's

Fountaingate Shopping Centre

in Melbourne's south-eastern

suburbs. DJs hasn't ever

opened a store at the centre

and has been trying to get out

of the lease on the space there

for years, because it says the

shoppingm all is not used by

its target customer base. It's

landed a share in the Innaloo

Shopping Centre in Perth's

northern suburbs. DJ's shares

are down, in line with the rest

of the retail sector today.

Let's take a check of the

domestic market's other big movers in the ASX top 100.

Wall Street rose for a third

day in a row, traders

encouraged by a fall in claims

for the dole and solid results

from large retailers.

The wife of an Australian

journalist killed by Indonesian

forces in East Timor in 1975

says if Indonesia is serious

about democracy, it must let

its people see the film

'Balibo'. Shirley Shackleton

went to court to call for the

ban on 'Balibo' to be lifted.

From Jakarta, the ABC's Kerri

Ritchie reports. On her way

into Jakarta's administrative

court, Shirley Shackleton

admitted she was terrified.

The 78-year-old was expecting a

grilling by Indonesia's film

censors. My support for the

rule of law, for the rule of

democracy, for the hope and the

dream of democracy, and my

support for the 'Balibo'

film. 'Balibo' was banned by

the Indonesian Government last

year. The film tells the story

of five Australian journalists,

including Shirley Shackleton's

husband Greg, who were killed

when Indonesian forces invaded

East Timor in 1975. Indonesia

maintains the reporters got

caught in cross fire. Shirley

Shackleton says 'Balibo' shows

what really happened -

murder. To clarify, the lies,

the cover-up, or in good

Australian slang, the cat is

out of the bag. Afterwards, Shirley Shackleton said she was

disappointed she didn't get to

say more. Maybe I scared them.

I hope so. She'd like to meet

the former Indonesian military

captain or an Australian

coroner found ordered the

killings. He is retired now,

but was a minister in the

Indonesian Government. I would

like to ask him did he film my

husband's death. But the

censorship board says the ban

should remain in place to

protect Indonesians. This film

has the tendency to judge. If

you see it you will know what I

mean. It will open old wounds. It will be at least two

weeks before a decision is made

on the 'Balibo' ban. Shirley

Shackleton says Indonesian

citizens deserve to know the

truth, even if it's painful.

Let's have a quick look at other stories making news

around the world. There've

been ugly scenes in Taiwan's

Parliament. Members came to

blows when the Speaker refused

an Opposition request for

debate on a controversial trade

pact with China. The warring

parties hurled garbage bins and

tea cups before the situation

was brought under control.

France is sweltering in a heat

wave which is affecting much of

Europe. As temperatures sought

wise sought relief in the shade

and whenever there was water.

Others took the opportunity to

work on tans and a 24-hour test

flight of an experimental solar-powered plane has been

declared a success. The plane

landed safely in Switzerland after surviving mild

turbulence, thermal winds and freezing overnight

temperatures. It's the next

step towards a round the world

mission powered entirely by the

sun's rays. A video referral

system now appears inevitable

for future World Cups. The

head of the code's governing

body says wrong decisions made in South Africa during the

current tournament mean changes

must be made. England's

disallowed goal during the

World Cup sparked a heated row.

FIFA's general secretary says

he expects this World Cup to be

the last under the old

refereeing system. The ball is

played so quick, so fast, so we

have to help them and we have

to do something. Yes, it's the

final World Cup with the

current system. Goal line

technology as well as extra

officials as well as video

replays are among the possible

refereeing changes. The Port

Adelaide AFL club is set to cut

ties with its coach Mark

Williams after seven

consecutive losses. Williams

has been in charge of the Power

since 1999 and took the club to

the premiership in 2004. He's

been under mounting pressure to

keep his job since admitting

last week that another

premiership was needed to keep

him at the club beyond his

current contract. The

51-year-old maintained until

yesterday that he wanted to see

out his term until the end of

next season, but the ABC has

been told the club has decided

his position is untenable and tonight's game against

Collingwood at Football Park

will be his last in charge of

the Power. Australia's Cadel

Evans has retained third place

in the Tour de France after the

fifth stage won by British

sprinter Mark Cavendish. The

188 kilometre stage provided a second successive crash-free

day for the peloton after what

had been a gruelling opening to

the event. A breakaway trio

caught outside the last 5

kilometres opening the way for

the sprinters to take over.

24-year-old Cavendish from the

Isle of Mann timed his run to

perfection to record his 11th

Tour de France stage win.

COMMENTATOR: Mark Cavendish

will win this and he's being

challenged. What a sigh of

relief. An incredible feeling,

you know. All that emotion,

all that pressure has built up

all year. It's finally come to

an end. Australia's Robbie

McEwen lies third in the

sprinter's clarification, while

in the overall standings Evans

is 39 seconds behind the race

leader, Switzerland's Fabian

Cancellara. Farmers say the

growing incidents of wild dog

attacks across Queensland is

costing the livestock industry

a small fortune, but one

southern Queensland woolgrower

has started using donkeys to

guard his flock with

extraordinary results. From

Warwick, Kirrin McKechnie

reports. The shearing sheds on

this southern Queensland

property are a hive of

activity. But there are fewer

sheep to clip this year.

Jonathan Carsons estimates he's

lost 900 sheep in the last 19

months to wild dog attacks. On

a good day you see no dead

sheep and some days you find

two, some days six. While dogs

have hit the Southern Downs

particularly hard, the attacks are a problem right across

Queensland. Last year, it cost

the State's livestock industry

$67 million. The worst animal

welfare impacts I've seen are wild dog attacks on sheep.

They rip and tear and leave

them to die. One woolgrower has

looked abroad for answers about

how to protect his flock.

Graziers began trialling guard

donkeys after hearing of their

success in Canada where they're

used to ward off wolves and

coyotes. Donkeys will live with

the sheep, feed and camp with

them and when a dog turns up

they will go out of the mob of

sheep and chase them, try and

stomp them and bite them. Since

introducing guard donkeys,

attacks on Bruce's flock have

dropped dramatically. If a dog

comes in we might lose one

instead of 10 or 12 in one

hit. It's a strike rate that

will certainly get ears

twitching. To the weather now,

and a high over the south-east

is keeping Tasmania, Victoria,

South Australia and much of the

interior mostly clear and dry.

There's a strong front pushing

into western parts of WA,

bringing strong winds and rain

and offshore winds delivering showers to the East Coast.

A final check now of the midday markets around lunchtime

in the east.

That's the news for now, I'm

Tracey Kirkland, have a great

afternoon. Closed Captions by CSI