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(generated from captions) This morning,

erupted in Tahrir Square again. This morning, violence

Egyptians demand an end to Nine dead and hubs injured.

military rule. I think it's the

same regime, nothing change. The Another one bites the dust. The Spanish socialist

government falls. The Eurozone

debt crisis claims its fifth government. Qantas in last

minute talks with the unions to end the ongoing industrial dispute. And Ricky

the fight in South Africa. Taking a quick look at the

weather first:

Thousands of protesters

remain on the streets of Cairo after a weekend of violent

clashes. At least seven people

have been killed and

injured. Police used tear and rubber bullets to disperse injured. Police used tear gas

the crowd and the Egyptian army

was brought in to try to regain control of Tahrir Square. They're already calling it They're already calling it the Egyptians have lost patience second revolution. These

with the military rulers who

So it's back to a took over from Hosni Mubarak.

So it's back to a battle for

the streets. For a day and a half the police have been firing volley after volley of

tear gas. But time and again the demonstrators regain the demonstrators regain their ground. This is the front line. The police protecting the Interior Ministry and the

protesters battling it out. The

air is thick with tear gas.

thought we'd seen an end of air is thick with tear gas. We

this with the end this with the end of Hosni

is Mubarak's rule but this crowd

here in Egypt. From the front

line a fleet of motorcycles

rushed the injured straight

into a makeshift field hospital. Amid the chaos

they're treating suf quais from tear gas and gunshot wounds. tear gas and

The same doctors in the same space they used back when they were fighting Hosni Mubarak's forces. We were so proud of our revolution. We didn't expect

we'd return to the same against the former regime fighting against the same regime, nothing change. All the time the crowds were flooding back into Tahrir Square. They are ing the old regime and we don't Square. They are re-establish

want the old ref lose and we're continuing

it. Late in the day the army came in to reinforce the

police. They moved back into Tahrir Square, taking sometimes Tahrir Square, taking control, sometimes brutally. In one corner protesters knelt to

pray. A gesture of defiance soldiers respected. By night pray. A gesture of defiance the

fall the square was protesters swarmed back. empty. Once again the

Tonight there are thousands

once again occupying the square

with more arriving

time. The military claim still with more arriving all the

to be defending the revolution.

And there's no sign how the military stability that most Egyptians

want above all. We've had

access to a camera set up above

Tahrir Square. This is

Tahrir Square. This is a live

shot. It's about 2am. The

protesters have moved back into Tahrir Square. We can probably

expect there will be further clashes with police and

military over the next few days. It's insisted elections

will go ahead as planned. We'll keep an eye on what's happening there in Egypt. Spain has a new government. Voters have handed the centre right popular party a resounding win. The country's general election was dominated

by its economic Another shift of power by its economic problems.

by the financial crisis. The Another shift of power caused

third in

third in as many weeks in southern Europe. But this time it's the voters who made the

changes. Unlike Greece and Italy, Spain has new Prime Minister. new Prime Minister. And he

isn't a tech yo krat. Mariano

Rahhoy is the man riding of a swing to the right. More Rahhoy is the man riding on top

because of a public backlash

failing to contain the against the socialists for

financial crisis than any achievement of his own. Friends, today you have to to celebrate. Tomorrow is another day. We need to

concentrate on the task at

hand. His opponent the new

socialist leader was prepared for defeat, but had hoped it

wouldn't be as big as Spaniards know that there is wouldn't be as big as this.

more pain ahead with further cuts but as the specialists

have warned they may not be

aware of how deeply it will

affect their lives. affect their lives. Having won,

a high profile strong Finance Rahhoy will soon be announcing

Minister and he will have to

move quickly with cuts to satisfy the financial move quickly with reforms and

markets. Rahhoy, 56, known as a political fire, but not necessarily a maker will have to convince

Eurozone leaders too that while

can deliver a survival plan. Spain may have chosen him, he

Winning the election

been the easiest part. There are reports authorities in New

York have arrested a man for allegedly plotting to blow up government building. The 'New allegedly plotting to blow up a York Times' is reporting that police had the suspect under surveillance for about a year. Unnamed sources say the man had

been trying to construct a pipe

Michael Bloomberg bomb. The mayor of New York

address the media on address the media on the incident within the hour. More details and that news conference just as soon as we can. I'll scblar guy an error within the last seven minutes

or so, on the situation on the

that there'd been a fall of markets. The graphic suggested

80-odd points or something.

That's not the case this morning. The market flat now. It's down about flat now. It's down about four

months at the moment. The

mining tax will be the main focus of Federal Parliament

this week. The last sitting week of the year beginning

is determined to get the tax today. The Federal

Prime Minister and the through the Lower House. The

Treasurer will continue to hold

more talks with the crossbenchers. Independent MP Andrew Wilkie is pushing to have the taxes threshold increased but the Opposition

Leader has reaffirmed his opposition to any form opposition to any form of the tax. We already paying company tax, miners are already paying state royalties. Mining royalties. Mining has been responsible for the prosperity

of our country over the last decade or so. We do not need a

new tax that will cost investment and cost jobs. I

want to make the simple point

that no country ever got rich

by hitting itself with more taxes. The tax will ensure the

booming mining industry benefits all Australians according to Wayne

do everything I can get this through the apartment. We're putting it in place because it's what our national interest demands. We have hugely profitable mining companies. A terms of trade at 140 terms of trade at 140 year

highs. What we want to do is

take some of that and

distribute it right around the

country to make sure that every Australian benefits from the

boom. Tony Abbott with his wrecking ball doesn't listen to

that sort of logic. He is

saying no and looking after No.

1 which in his world is Tony Abbott. For more on the mining

tax debate I'm joined tax debate I'm joined by Lyndal

Curtis. This definitely is not

a done deal just yet. No. The

frm is talking to some of the

independents today about what they want. Tony they want. Tony Windsor wants

changes to look more at things like coal seam

has foreshadowed amendments negotiations to be done before

the tax is voted on in the tax is voted on in the

Lower House, maybe Wednesday or Thursday. Business has raise

concerned about the superannuation changes that go

along with the tax. To discuss

those I've been joined those I've been joined by Assistant Treasurer Bill Shorten. 'Has raised concerns

about the super changes worried they will be a cost on business. That will be business. That will be the case, it will be business paying for them or workers for

going wages? We've got a real life experiment about what happens when you increase superannuation. Some in business are saying that oh it

will increase the cost of business. I would submit to them that the evidence of the

increases when superannuation

went from 3% to 9%, let's look what happened to business what happened to business in that time that time between 1992 and 2002. That was a 6% increase over 10 over 10 years. We're proposing a 3% increase over 7 years.

It's not an unreasonable comparison. Business profits as

a share of GDP went up. Unit

labour costs went down. It was absorbed as part of real wage increases. My message to business is it will not imposed a digsal a digsal cost to business. There's seven installments. The

first installment will be

quarter of a per cent. The

second quarter of a per cent. The remaining five The remaining five installments annually up to 2018-19 will be

half a per cent. Businesses can

inevitable real wage increases

they provide their work force. It essentially means for workers it's real wage increases. increases. Effectively that wage increase is delayed? When

you increase the real wages of workers, that workers, that portion which goes into compulsory savings has an effect. If you pump effect. If you pump everything just into wage rises then that

puts greater pressure on

inflation. But if part of inflation. But if part of the real wage increase is into deferred savings then it

has an anti-inflationary impact

and dampens pressure on interest rates interest rates and inflation. Increasing compulsory savings it's good in the it's good in the short term because it has because it has an an

anti-inflationary effect T

doesn't come off the bottom line of business because it's

part of the inevitable real

wages. The idea that not paying

somehow avoids a cost to the

society is wrong. Won't the age

pension increase as we grow older? This stops greater reliance on the aged pension. There are no free lunches. If

you say that it's you say that it's economically

good in the longer term, why raising these concerns? Some

in business are. Most in business can see the sense in

having a large pool of domestic

savings. Australia has domestic

savings which are greater than

our GDP annually. That makes our GDP annually. That makes us very unusual for a western country. That makes the

Australian economy stronger, it

means there's more money to business don't like it. That's

because they're being conservative. The reality is

the long-term compulsory savings assist the savings assist the taxpayer because you don't have because you don't have to pay so much in the aged pension. It assists the pool of national investment. People will have money saved where otherwise they simply wouldn't have saved the mun e Will this go through this week? The mining

tax is a good idea. The idea

that the richest companies in

the world should pay a tax to

the nation whose resources they're exploiting, this is a

good idea. The mining boom is a

great thing but it's leading to

a very uneven economy. Just ask

a small business mern in Perth

or Brisbane or Melbourne who is running

running a domestic tourism operation, domestic

manufacturing, domestic

education services, relying overseas students, our dollar

has been pumped up quite high

with the high commodity prices. We're seeing the mining boom causes some negative effects in

the economy. We're using some

of the profits to help invest in infrastructure, and to pay

for the tack con sessions for the tack con sessions of superannuation. You haven't yet

got all the independents you

need signed up to it.

Negotiations are still under

way. But good ideas normally triumph. This idea. You think it will triumph this week? We'll wait this week? We'll wait until all the negotiations all the negotiations have conclusions. I conclusions. I haven't seen any knock-out arguments coming knock-out arguments coming from the Liberals. They say they want to give $11 billion back to the richest countries in the

world. That's not popular. We saw Andrew Forrest boasting about never paying tax. That

will make people annoyed. There is an app night in the community to of the mining boom nationally. There's plenty of Liberals who privately concede that the mining tax is a pretty

reasonable idea. There wasn't

the appetite in the public when this mining tax was first

proposed by Kevin Rudd. Did you

simply get the politics of that wrong at that time? Clearly we had to make sure we consult

with industry. That has

happened . The minister and others have worked through a lot of the issues. There has

been a lot of consultation from when the idea

announceed to now. A lot more

of the stars are aligned this

time. If I could just ask you

about Qantas. The 21 days for bargaining set by Fair Work

Australia is up today. But it doesn't seem yet that the parties are close to striking a

deal. What will happen if no

deal is struck by the end of

today? Let's not assume a deal

can't be struck today. If there

isn't one there can be another or there It's possible for any party to dispute

dispute the requirement, the

decision of the independent

umpire to terminate the industrial action by the unions. I think there will

be a deal. Whether or not it's today or next week, there will be a deal. Whether or not it's by conciliation or arbitration there will be a

something not easy. And something not easy. And I've

noticed some in business and

some in the unions simply say we should just have more

arbitration. Bargaining never been easy. This is not an

easy issue. You have easy issue. You have on one hand the legitimate expectations of a whole lot of workers who say we contribute

to this marvellous brand. We want job want job security and fair

remuneration. On the other hand

the leadership of Qantas is saying we're competing in a

global environment. Is it

better a deal is struck between

the parties than it goes to

arbitration or if it goes to arbitration and that is

successful, other businesses

may use that route? I don't

think many employers Alan Joyce. Grounding your airline has left airline has left a lot in business. Whilst at one level

they might say that's right

you're being tough and strong.

In a big retail operation like Qantas a lot of Qantas a lot of other people will be saying surely there will be saying surely there is

a better way than ground your a better way to do business than ground your airline. What's happened has What's happened has happened.

The government is focused on making sure the flying public

is not inconvenienceed in the way they were two weekends ago. Beyond that I have Beyond that I have no doubt that the system means there will be pan outcome negotiation, conciliation or arbitration but there will be a deal. Thank you very much deal. Thank you very much for

your time. Back to you,

Joe. There is a built of

chatter in morning about the opposition saying Parliament should come back to discuss this MYEFO statement. Do they

have Buckley's and none chance

of that happening? this will be the last week of the year. I doubt very much that the government would agree

to bring the Parliament back discuss the budget update. They're not usually done in parliamentary sittings. Parliament doesn't get a chance

to have a go at it until it resumes next resumes next year. The New South Wales Police Arson Squad hopes to gain full access to

the burnt-out Quakers Hill

nursing home in Sydney's west today. Six today. Six of the residents have died and 11 more are still

in hospital. Three days after

the devastating fire and the

nursing home is a mess. It's also a crime scene and police and forensic investigators have

arrived to continue their investigation. They'll also consider laying extra charges against 35-year-old Roger

Kingsley Dean who's accused of starting the fire which began

in two weekses. There've been

some very sad scenes outside the nursing home today with the relatives breaking down relatives breaking down crying

in front of floral tributes. It

could get worse for some of the families whose still fighting for survival in hospital. The clock is ticking on Qantas and

on Qantas and the unions today

as Bill Shorten was just discussing with Lyndal Curtis. The deadline from Fair Work Australia to resolve the

industrial dispute expires at midnight. Airline bosses have held more than 20 meetings with

the TWU, the Pilots Union and the Engineers Union. Their negotiations have not yet produced a deem. At produced a deem. At midnight the 21 day negotiating period will expire and Fair Work

will expire and Fair Work Australia will make a Australia will make a binding decision on the deem. Qantas says the company hopeful of a settlement but the

TWU says it wants more time. We

have put to the company to

extend it by a further 21 extend it by a further 21 days.

In the last three weeks we've seen the company go from bad to

worse. They've made offers that

are now five months old. They've turned the clock back

just so they can wipe out rights and conditions further of their Australian work force.

This is a company that doesn't its work force. It's a company

seeking to destroy the work

force's rights and substantially outsource their jobs. Two balcony falls have marred the start of schoolies celebrations on the Gold Coast.

A man in his 20s has serious head injuries after toppling

from the balcony of a Surfers

Paradise nightclub. A man in his 30s died when he fell from a balcony of a unit on Surfers

Paradise Boulevard. Police last night laid charges against 26 people but they say most have

been well behaved. Budget talks

in the US have once again

failed to reach a resolution. The bipartisan Budget Deficit

Committee is about to admit

defeat in its bid to find $1.2 trillion in savings. The issue is so contentious that Republicans and Democrats can't even agree on whether talks have officially broken down.

This committee was created out

of a compromise way back in the

summer here in America when the

country was faceing that debt

ceiling crisis. The debt

ceiling was lifted on the basis

that this committee six Democrats and six Democrats and six Republicans would try to find a way to

discover $1.2 trillion in savings. It's come down yet again to this divide between

the Democrats and the Republicans over whether it should come about because spending cuts or tax

The two sides haven't been able to agree. They had thanksgiving

as the deadline. We're a few days pay way from that. Even the co-chair of the committee today said we'd have to get it

drawn up, ticked off by the congressional budget office.

The reality is that there is

not much hope of any agreement, yet again, so once yet again, so once again, the US is facing an issue over how on earth to bring down its

deficit. Sue Lannin joins us

now with an update on the Financial markets are watching this week's negotiations in Washington to cut the US budget deficit as

well as worrying about Europe. The local market opened lower. Steel maker OneSteel looking at closing its Whyalla plant in South Australia. The

company says the closure would

be a last resort but it's one

option being considered. Unions

say they're seeking urgent talks. European Union

negotiators have been forced to agree on a 2% rise for agree on a 2% rise for the region's budget for next year.

It's much less than the target

of around 5% with the amount settled after more than 15

hours of talks over the weekend. Several European

governments argued commission were unrealistic

given a likely recession.

Here is Paul Kennedy with the major sports stories of the day and the latest on Australia's cricket Test against South Africa. It's good that Australia is still alive in this Test. I thought they might crumble quicker than they did, but it was an did, but it was an

action-packed Day 4. Amla

brought up his

South Africans as they built their lead T looked like they

might get anything and maybe

even play even play Australia out of the Test. But Ponting swooped on a calamitous mix-up in the middle of the match there. Amla went and Pat Cummins bowls e very quickly and accurately. He

took six wickets. The youngest Aussie to do that on Test

debut. The Aussie openers, Watson falling, Hughes falling A very nervous time for Ricky

Ponting playing for his future

and also for and also for the team's chances

of success. Good to see the young Khawaja with a good knock

there in one of his there in one of his first

games. Now, you're a big Patty Mills fan. You must be devastated with this news he is going to China? Not Melbourne Tigers. I popped in to watch one of their games

just a week or so just a week or so ago. The

crowd have been great in the

NBL this year. Patty Mills is the big reason for that. Get

the big reason for that. Get a call from China, a China-based

club wants him to play for more than a million dollars. He knocked back some big money from potentially some big money

from the European clubs to play in the NBL and get some minutes. He has some minutes.

Why would you knock back more

than a million to play in China while the NBA lock-out

continues? Some of the soccer

skills, some beautiful skills on display? The Melbourne Victory was playing against

Perth Glory. There was a

controversial send-off. The

Glory went down one man. People were divided over was a red card or not. Soon after that the Perth Glory suffered another blow and there

was another controversial

penalty this time. The victory

went up. They looked like they were going to celebrate as Hernandez did. Allsop kicking a

kicking a goal. The kicking a goal. The crowd going into party mode. Back came the Perth Glory, scored two more. Now the victory are shaking

their heads again. At the end of last year they sacked their coach. Things have gone not very well for the victory all as we see Shane Smeltz getting the half getting the half the goal in

the 87th minute. In the EPL,

Liverpool beat Chelsea 2-1. The winner came from Johnson. That

was in the 87th minute. Chelsea

is a bit like the Melbourne

Victory at the moment. A bit of interesting pan ter between the Tiger and the basically saying last night Greg Norman wouldn't have been

pleased to see pleased to see him close out the match for the Pretty gentle prodding. It was

good to see him with a smile on his face, get back into a bit

of of light ban der. He of of light ban der. He has been through a tough run. Not least of all with injuries.

Tiger Woods is slowly getting

back, I think. He took step away, put away Aaron Baddeley from Australia. A couple of those young

Australians were struggling on

the last day. It's a tough format format they had to put up with.

The President's Cup, all in

all, was a terrific event to watch. Greg Norman needs to

turn his hat around and wear

his sunglasses properly. But it

was great to see those

captains, Fred Couples and Greg

Norman, they were just walking

around and looking at things. It added to the drama. big tick from all those

players, too. Let's hope we can see it again one day. 13 years ago it was last ago it was last at Royal Melbourne. Might have to wait another 13 another 13 years. We're waiting

for a media conference with the New York mayor Michael

Bloomberg. That's a live shot from New York. This is in relation to a terrorism related arrest. Let's check the weather in the meantime, though. Here

The satellite image has cloud surrounding cloud surrounding a trough from the Top End through to the north east north east of New South Wales. Another Another low pressure trough is pushing cloud into the central

parts of the Northern Territory. A showery and windy day for Tasmania as a cold front front crosses. We're seeing very heavy very heavy rain throughout Western Australia's interior. The Northern Territory and the northern parts of South

Australia. Round the States for today:

These are today's top

stories on ABC News 24 - Egypt's military rulers insist

troops used self-restraint when they cleared thousands of

protesters from Cairo's Tahrir

Square overnight. At least nine people were killed when security security forces used tear gas, rubber

rubber bullets, batons and tiny lead pallets to disperse

protesters. Protesters claim

the country's military leaders are trying to entrench their power 10 months after uprising against Hosni Mubarak. Spain's new Prime Minister has

warned the country not to

expected miracles as he tackles a huge deficit and an unemployment rate of unemployment rate of 21%. Spanish voters celebrated in

Madrid after tossing Madrid after tossing out the socialist party. The Transport

Workers Union is Workers Union is warning it's

beautiful an agreement will be reached in reached in its industrial dispute with Qantas. 21 day

negotiating period set Work Australia will expire at midnight tonight. midnight tonight. If an agreement can't be reached the industrial umpire will step in and decide the wages outcome

in. Sport the second Test

between Australia Africa is evenly poised heading

into the final day's play in Johannesburg. Australia needs 310 for victory with Ricky

Ponting unbeaten on 54 Ponting unbeaten on 54 and Michael Clarke on 1.

Now back to this live Now back to this live shot

now from New York. Just to bring you up to date. We received notification in the

just half-hour or so from

Michael Bloomberg's office Michael Bloomberg's office he

was about to hold a media conference on a conference on a terrorism

relate ed announcement. The 'New York Times' is reporting

this is in relation to a man

that authorities had under surveillance for a year or so

because they alleged he was

making bomb-making materials.

The suggestion from the 'New

York Times'

was planning to bomb a government building. Law

enforcement sources are saying

it was a case of a lone wolf scenario. That was - this media

conference was due to get under

way a couple of minutes ago. We understand that

understand that the New York

Police Commissioner and the District Attorney are going to

be there as well. You can see

it hasn't started just yet.

We'll cross live to New York as soon as the New York mayor Michael

Bloomberg. The Greens Bloomberg. The Greens are

threatening to withdraw their support for the support for the government's mining tax if it's watered

down. The Greens Leader down. The Greens Leader Bob Brown says he has made it Brown says he has made it clear his party will support the legislation but has warned the Greens won't accept weakening of the tax. The government has got a proposal

before the Parliament which we will support but if it's further eroded then

maintain our sport. If there's maintain our sport. If there's going to be a further loss of

funding to schools and hospitals and transport and for housing in Australia, going to so-called small miners, people

making profits of up to half a

billion dollars a year, and

those profits flowing out of the country without paying a

China is indicating it's China is indicating it's into resource taxing of this variety

in the future, then we won't be

supporting that.

Government has been buoyed by recent predictions that recent predictions that point

to metal prices remain ing high in the long term. in the long term. It's a ground-breaking dig that's ground-breaking dig that's been years in the making. After the the minerals and metals group has finally been able to revive its plan to increase its copper operations in Western Australia's midwest. We Australia's midwest. We have a lot of confidence lot of confidence in the Chinese growth in the Chinese market. We believe that provide us with solid physical

and financial market. MMG

originally planned to launch the $22 million open pit copper mine in 2009 to boost production at its production at its golden grow venture 450 east of Perth but it was forced

to shelve the product when the

global financial crisis hit. When copper went to

probably about a third of what it is at the moment, this

project was not viable at that

stage. And the appropriate stage. And the appropriate thing was done today to put thing was done today to put it on ice. Copper prices have

remained relatively strong. With demand expected With demand expected to

continue analysts say investors are cashing in. In the longer

term we'll be term we'll be back to the situation where we're facing supply constraints. The GFC also forced MMG to temporarily shut down operations at another project in 2009. It reopened

that site in May. The mines minister says the minister says the company's

return to the sector will boost

WA's economy. China will continue to grow and India will develop develop the potential we believe it has in terms of believe it has in terms of the

growth of its economy. All that happening and we all want it to happen. Analysts say China's

present demand for copper is

likely to continue. With the

country needing huge amounts of the metal

infrastructure for its infrastructure for its growing

urban population. If the

Federal Government succeeds in

passing its mining and resources tax this week,

Australia won't be alone. China

has begun taxing big oil and

gas companies for gas companies for the environmental destruction they cause. The Chinese Government the new tax will go towards

setting up sustainable industries in poor remote

regions where resource companies are often based.

Remote parts of western China

are a rich source of are a rich source of raw

materials but those who live

and work there remain quite

poor. These areas are also heavily polluted now and the

Chinese Government says big

companies must pay companies must pay for are in

damage. So China has introduced

a national resource tax which

hits the oil and gas the hardest. The impact on companies is huge. mandatory. They will have to pay it even though they're not

happy. The tax for oil happy. The tax for oil and gas

companies is initially set at between 5 and 10% of bulk sales. It's said funds will

government to the local governments where the resources

are extracted to be used for environmental repair and to establish sustainable industries. It will cost the

companies billions of dollars.

But even more in the future. We're considering gradually raising tax level. First we established

the mechanism, keep the level low to minimise impact, then increase it step

by step. Yet China won't hit its big oil companies too as they're hugely profitable

and owned by the government. Many of China's state owned

resource companies are based

along this street in Beijing.

The size and grandeur of their buildings are a testimony to

the great wealth that these

none of them would be

interviewed nor this story. The

government has told them to pay

the tax and they'll the tax and they'll just have

to cop it. Other resource companies know line with coking coal already

partially hit by this resource

tax. continuing in Cairo as the

police and army try to evict thousands of people from the

Egyptian capital's Tahrir

Square. Up to nine people were killed today as demonstrators

protested as what they see as the slow pace of the slow pace of change sing

the overthrow of President

Mubarak back in February. The moment the Tahrir Square turned ugly.

Hundreds of army officers and

police fire tear gas an rubber bullets. Thousands of demonstrators run for cover, chased from Tahrir Square. Dozens are arrested. Many many

are brutally beaten. Members of the security forces too become victims. Clashes. It's the second day in a row there has

been violence in central Cairo.

The demonstrators say The demonstrators say the military has not moved fast enough in announcing a date for the handover of power to a

civilian government. The government says no live

protesters and security forces showed

showed what it showed what it called

self-restraint. A Cabinet meeting confirmed meeting confirmed that despite the violence, parliamentary elections planned for next week

will go ahead. As night fell,

row testers regrouped in Tahrir Square. Reports that the central Tax Office was on

fire. They used excessive force. And I think all they

wanted just to get us out from the square. After that they were burning every motorbike

they find and they were burning

the tents. We need civilian rule. We need a President that

we are all agreed on. We need a

constitution before the elections that will elections that will get rid of the remnants of the previous

regime. Sydney the day's violence only adding to a growing

growing Anger and impatience

with Egypt's military humiliating defeat to the centre right's

centre right's people party in

Spain which is projected to

take an absolute majority of 186 seats in the Lower House. Tough

Tough economic times lie ahead with the people's party leader Mariano Rahhoy using his

victory speech to flag even

harder austerity measures. Spaniards voted against a background background of soaring unemployment and a debt crisis.

Spain is now the fifth Spain is now the fifth Eurozone

country where the government

has fallen victim to the debt crisis. Mr Rahhoy says unemployment and deficits will be the be the enemies of his government. Bruce Wilson is the

director - I'm warn you we are

waiting on this media conference with Michael

Bloomberg in New York.

Apologies if that happens.

First of all, was this election

result expected? Yes, it was expected. The popular party

have been ahead in the polls for some time. The socialist Prime Minister has not contested the election.

They had a televised ten ate with the new leader a with the new leader a fortnight or so ago. It was or so ago. It was widely regarded that the socialist leader to leader to be presented himself as the challenger. It can't be

easy for incumbent governments

in Europe right now? It's not easy for any government in Europe right now. I think it's important to say that this is not just the debt crisis not just the debt crisis that's unfolding living with the consequences of the collapse of financial

markets some two, three years

ago. It's much bigger than just the current debt crisis. the current debt crisis. So the social jifts done much the social jifts done much to address the financial challenges? They had done a number of quite specific

things. I'm really sorry about this. But it looks like Michael Bloomberg is actually stepping

up in New York. If you can wait there, that'd be

there, that'd be great. We'll cross live now to New York. No

worries. New York City police officers arrested a 27-year-old

al-Qaeda sympathiser who was plotting to bomb plotting to bomb police patrol

cars and also postal facilities

as well as targeted members of our armed forces returning from pay broad. Jose

pay broad. Jose Pimentel of

the northern end of Manhattan

faces terrorism related charges that District Attorney Vance will discuss in a moment. Earlier today this case to US Congressman

Pete King the chair of the House committee on homeland

security who has long been a champion of federal support for the NYPD the NYPD intelligence efforts.

The NYPD did outstanding work in containing this individual. The police also constructed a duplicate of an explosive

device that the suspect built and designated in the way and designated in the way he intended to use his weapon. We wanted to show wanted to show you a video about the resulting damage.

I should point out that staff briefed the governor's

staff on this earlier this evening and I've asked Commissioner Kelly to discuss

this case in greater detail but first let me make these observations. The the suspect

was a so-called lone wolf.

Motivated by his own resentment of the presence of American

troops in Iraq and Afghanistan

as well as inspired by al-Qaeda

propaganda. He was a larger conspiracy emanating

from abroad. He represents exactly the kind of threat FBI

director Robert Mueller and his experts have warned about as American military and intelligence agencies have eroded al-Qaeda's eroded al-Qaeda's ability to launch large-scale attacks. This case is also This case is also reminiscent

of another lone wolf plot in

2004 in which two New Yorkers

angry over the treatments of

prisoners in

bomb the Herald Square subway station. As with still another case earlier this year in which a lone wolf plotted to attack a large synagogue , the large synagogue , the NYPD teamed one the Manhattan

District Attorney's office to prosecute this man under prosecute this man under state terrorism related statues.

There have been at least There have been at least 13

previous terror attacks since

Would be the 14th. Because of such repeated threats, the NYPD remains focused on remains focused on preventing another terrorist attack.

assign a thousand police

officers to counter terrorism duties every single day. And

this is just another case where

our precautions paid off. Over two years ago, the New York

City Police Department became aware of aware of a follower of the

radical cleric Anwar al-Alaqi. The follow-up then resided in New York was talking about traveling to Yemen for training

before returning to New York to

become a martyr in the name of jihad that was Jose Pimintel, an unemployed native of the Dominican Republic and convert to Islam who lived most of his live in Manhattan. He is citizen. Before returning to

Washington Heights last year he

lived in another place for about five years where he made even some of his

friends nervous by his extremism. He talked about changing his name to Osama

Hussein to celebrate his heroes

Osama bin Laden and Saddam Hussein. He talked about

killing US service mn returning from Iraq and Afghanistan,

particularly US Army and personnel. He talked around

bombing post offices in and around Washington Heights and police police cars in New York City as

well as a police station in New Jersey. As in other other terrorist cases, his behaviour

morphed from simply talking

about such acts to action,

namely, bomb-building. Pimintel

followed instructions from al-Alaqi's Inspire magazine to materials then assemble them. He relied on He relied on a particularly notorious article

notorious article called 'How

to make a bomb in the kitchen of your mom'. Pimintel acquired

the readily available ingredients from Home Depot and other stores being careful not to make all of these purchases

from any one location at the same time. He wanted to avoid

raising red flags. He used elbow to join two pipes as the main

housing for the bombs. This is

what one bomb looked other stores

made three bombs. This small

size can do that damage. Here's the clock that would ignite it. He also planed to affix nails

to them as additional shrapnel. Pimitel planed to Pimitel planed to make three bombs to begin with. He had elbow joints to accommodate timing devices when emergency service police officers entered

an apartment in

Heights at 3.30 yesterday after

noon. They were accompanied by NYPD Bomb Squad and

intelligence television

detective who is took them into custody without ins tent. The

NYPD has been tracking of Jose

Pimitel since May of 2009 when te talked as he acted on it. We as he acted on it. We had

always planned to take hem always planned to take hem into custody before he could

detonate a fully operational

bomb. We did not want him to trigger it. Even accidentally

and put neighbours and others

at risk. That's why we had

emergency service emergency service officers standing by to take down standing by to take down the door if necessary. Pimit, l

planned to test the effectiveness of the bombs effectiveness of the bombs by planting them in detonate ing planting them in mailbox and detonate ing them. Once his bombing campaign began, Pimitel

said, the the public would know that there were Mujaheddin in the city to here. As the mayor indicated,

Pimintel was a hoen wolf. As

you know, there had also been plots since plots since 9/11 directed against the city by al-Qaeda

central and its affiliates,

including one to take down the

Brooklyn bridge and to bomb the subway system. We subway system. We keep a 360 degree perimeter as a result.

Looking for al-Qaeda

its affiliates or loan wolves to return here to kill more New

Yorkers. We remain the nation's

financial capital. We remain

its communications capital. And a world stage on which

terrorists can get the most

bang for the buck. Thanks to the outstanding work of the outstanding work of the

officers involved and support

from District Attorney the buck stopped in Washington

yesterday afternoon. I'd like

to now ask district attorney Vance to comment on the case. The safety of case. The safety of our citizens is the primary

responsibility of any District

Attorney and for the Manhattan District Attorney's office that

job must include a commitment to and an expertise in

terrorist threats both abroad and at and at home. Manhattan is the

symbol of much that terrorists

hate about the west and hate about the west and this city our home will continue to

be a target in the years to come. We are fortunate to have a Police Department that's risen to the challenge of addressing a global threat that focuses on our city and the

NYPD in addressing that threat. In combating

In combating this terrorist

threat as we all know threat as we all know without special vigilance the results will be deadly. Our office

today filed charges against

Jose Pimitel of Manhattan for

conspiring to build a bomb for terrorist purposes

possessing a weapon a pipe Pom that he intended to use to wage

his campaign of violence. The

defendant stated his belief in

violent jihad and harboured a

violent ideology. And you could

see that from his web site

True Islam. He posted articles

on Osama bin Laden, discussed the duty of every Muslim to

wage war against the west terrorist organisations. He was a

a reader of al-Qaeda's slick

on-line magazine Inspire on-line magazine Inspire and inspire him, it inspire him, it did. The bomb

he is charged with building

came freight from the pages of

Inspire magazine. His stated

desire to attack our servicemen

and women as they return from Iraq and Afghanistan could've

come from an al-Qaeda playbook. Home-grown extremists are one

of the faces of terrorism that

we we are now facing. Foreign terrorist organisations attempt

to recruit our citizens to take

up armed jihad against their own neighbours. The threats against us and our challenge in law enforcement is to vigilance enforcement is to balance vigilance hand preparedness against the preservation of

libertys that define who we are

as a civil society. To do this we will employ we will employ the tried and true true techniques that have served for served for decades. We follow

the rule of law and we act aggressively aggressively but responsibly. In the fight against a

and difficult-to-identify local

terror threat there is an

important role to play for local

local law enforcement and prosecutors working in

coordination with our federal

counterparts which we did in

this case and

work within the law and employ all the tools available to us

to prevent a local terrorist

attack and to keep our citizens

safe. We'll leave that going to be police officers,

returned servicemen and women

and postal officers. Police are

saying they caught him in the process of making the bombs and

they'd had him under

surveillance for a couple of years. Before that media

conference conference wrp talking to Bruce Wilson the director of the EU centre at Melbourne's RMIT

centre. He joins us to discuss

the Spanish election. He has

been good enough to stay there while that media conference has been

been on. They had cut civil

service salaries. They had

reduced pensions, extending the retirement age, squeezed the spending capacity spending capacity of regional governments and it's regional governments that

develop the key services of

education and education and health. They'd proposed an amendment to the constitution which had been

agreed but not yet implemented

agreed but not yet implemented to cap the to cap the scale of the deficit. As far as

that was reasonable possible in

terms of addressing the

challenges or could they have

done much more? This is the

challenge for the new Prime Minister. He has been very

vague on the kinds of

initiatives that he would take. I think all Prime Ministers I think all Prime Ministers not

least European Prime Ministers

at the present time have a

contradictory challenge to try

to promote growth at the same

time as they're required to their level of spending as much

as they possibly can. Economists are have debate for many years how these two things

can be done at one time. We've

heard so much about Greece and

Italy over the last couple of

weeks. How dire is the situation in Spain? I situation in Spain? I don't

think Spain is any more severely

severely affected than the countries you mentioned at all. One the problems with this kind of analysis is that short termist. To address the kinds of issues and kinds of issues and make the kinds of structural reforms being proposed in Europe will take quite some time. Yet almost every week we have a new analysis which suggests it's just not working. That's ridiculous. We have to be prepared to see this as something unfolding over a

period of months and years, not days and weeks. The days and weeks. The situation seems incredibly 22%

unemployment in some areas in about Madrid, I think it is. 22%

levels of youth unemployment. Perhaps even more worrying a high level of evictions in

Spain at the present time. Spanish comment fators themselves say they've themselves say they've been

living above their expectations

and that they need to readjust to the kind of incomes that their quite mixed economy is

able to deliver for them. Will

the Spanish people have the stomach for it when the reality

sets in? I think to change a

socialist government for a

Conservative government in times like this indicates some

extent of the willingness of

Spanish people to address the kinds of challenges that they face. They know the new Prime

Minister is committed to an austerity campaign. They don't

yet know the details but they

understand that this is going

to be more pain rather than less. Bruce Wilson, thanks very much for sticking with us interview. Thanks very much, Joe. Straight to Federal Parliament now this is the Julia Gillard is Julia Gillard is about to speak. Mr Speaker, in my statement to the House last year on the war in year on the war in Afghanistan, I set out to paint a very honest picture of the difficulties

difficulties and challenges facing our mission in that country. I did so confident that Australians are a

realistic people. Our people of

peace so often called to war

have always known that have always known that human

conflict brings days of sorrow,

as well as days of progress.

And Australians well know that

this war is no exception.

Australians well understand

that days of progress and that days of progress and days of sorrow still lie ahead.

somehow not be so. It is somehow not be so. It is right

that in our hashed hard

moments our hearts ache for all

that is lost and all there

still to lose. Of course we

know that in an imperfect world there is no perfect way. It there is no perfect way. It is

right that we do all that we can with all that we have can with all that we have toe defend Australia and its

national interests. This is the world we live become a perfect world in this last year. The international

strategy in which we take our

part is sound. Focused on

counter in-Sur in-see and designed to deliver transition. Led by President Obama 2009. Supported by 2009. Supported by the leaders

of the 48 other countries who

are members of the

international security assistance assistance force. Carried out

under a United Nations mandate. And with the support of the

countries of the world. A

strategy which is consistent

with Australia's aim in Afghanistan as well. That a functioning Afghan state is

able to assume responsible for

preventing the country from