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Turnbull lashes out

ELEANOR HALL: The weekend's by-election in the federal seat of Gippsland may have come a week early
for the Government, which suffered a swing against it of more than six per cent.

The Federal Opposition has been insisting that the result shows voters are angry with the
Government's failure to lift the pressure on household budgets.

But from tomorrow most Australians will have more money in their pockets, courtesy of the range of
tax cuts and other budget measures.

While the Government is trumpeting its budget changes, though, it's facing pressure from the states
over its plan to provide computers in schools.

A leaked document obtained by Channel Nine shows that the New South Wales Government is asking for
an extra $245-million to pay for the implementation costs.

This morning the Prime Minister was batting away questions about the deal.

KEVIN RUDD: With the implementation of any program involving the states and territories there's
always something which is called argy-bargy. And this is just normal argy-bargy associated with a
negotiation with states and territories to get good things done.

Can I say, this is a first-class program and I am disappointed that the leader of the Liberal Party
will be so negative about what 896 schools across the country and their principals have already had
grants of funding for. You can either do nothing about the computer needs of our next generation of
Australian kids, or you can say: "How do you help schools? How do you help principals? How do you
make sure that you've got the learning platform of the 21st Century? How do you prepare them to use
the information super-highway?"

Well, we have a plan for that. It's a good one. But there'll always be argy-bargy on the way
through.

ELEANOR HALL: That's the Prime Minister Kevin Rudd.

The Opposition, though, may have a different view.

To discuss the Budget issues we're joined now by shadow treasurer Malcolm Turnbull, who is speaking
to chief political correspondent Lyndal Curtis.

LYNDAL CURTIS: Malcolm Turnbull, good afternoon.

MALCOLM TURNBULL: Good afternoon.

LYNDAL CURTIS: The tax cuts and the other measures which come in tomorrow will put more money into
people's pockets. Will that make it tougher for you to argue they're worse off under a Labor
government?

MALCOLM TURNBULL: I think Australians have demonstrated that they know they're worse off in the
Gippsland by-election. They've been conned. They've got a government that right at its very centre
is empty; there's a vacuum there. You've got a government that talks about doing something last
year, said it's going to bring down petrol prices, and then does nothing. Just has this fraud of a
program called FuelWatch.

And we see today, this is a government that claims it was going to usher in a new federalism, it
was going to bring a new era of cooperation and openness between the federal government and the
states. And yet, what we see are the very senior advisors in this government planning to do an
under-the-table secret deal with Michael Costa to buy off NSW behind the backs of the other states.
That's treachery.

LYNDAL CURTIS: These tax cuts were what the Howard government proposed in the last election as the
solution to tighter household budgets. Are you saying they weren't enough?

MALCOLM TURNBULL: No, I'm saying the tax cuts are our tax cuts. You're absolutely right and we've
put out a statement today just noting that these are the last of the Coalition's tax cuts. What
Kevin Rudd and Wayne Swan did in the lead-up to last year's election was simply take a photocopier
and copy what John Howard and Peter Costello promised in terms of tax cuts.

So, we've seen the cut of the new government in terms of tax cuts. There'll be no more tax cuts
under this government. What they're committing to doing is piling up the savings and earnings of
Australians, higher and higher, into these unsupervised, unregulated, Labor Party slush funds,
which will be used to fund infrastructure at political suitable moments for state Labor
governments. This is the save Morris Iemma fund - that's what the Building Australia Fund is all
about.

LYNDAL CURTIS: Household pressures were one of the things that contributed to the National Party
win in Gippsland. The Liberal vote also contributed to that. Is there any reason why there should
be pressure on Dr Nelson's leadership after this result?

MALCOLM TURNBULL: There is no pressure on Dr Nelson's leadership. Dr Nelson has the support of the
entire party. So he is our leader. The Gippsland result is a great credit to the whole of the
Liberal Party and the National Party working together. And of course, as leader, Brendan and of
course Warren Truss as the Nationals leader, can take a fair share of the credit for that.

LYNDAL CURTIS: Are you willing to bide your time?

MALCOLM TURNBULL: (laughs) Look, I'm not, I am focusing my time on holding this fraudulent Labor
government to account. This is a government that is all spin and no substance, Lyndal. You take
your pick, whether it's computers in schools. They go out and say, "We're going to spend a billion
dollars and put a computer on every desk, every desk in schools for children in years, forms nine
to 12." And yet, the reality is, as everybody knows, be they in business or having computers at
home, the bulk of the cost of running a computer is in all the stuff that goes with it. The power,
the internet connectivity, the technical support.

LYNDAL CURTIS: Should the Federal Government then pay for the full costs of implementing its
program?

MALCOLM TURNBULL: This government should pay the political cost for the con. Because what it should
have done, if it was serious about putting a computer on every desktop, it should have last year
have done a proper responsible calculation of what that cost would be in.

You have the West Australian Labor Premier himself, Alan Carpenter, who said that if you want a
spend a billion dollars in the hardware on the computers, you're going to have to spend another
$3-billion to support them and make them all work.

LYNDAL CURTIS: And do you think the Federal Government should pay that cost?

MALCOLM TURNBULL: The Federal Government is going to have to consider that and they're going to
have to take into account all of their spending priorities. This is a mess and it's been created
for the same, in the same way as the FuelWatch mess was created, again and again.

Kevin Rudd and Wayne Swan have gone out with the headline, gone out with the spin, but there's no
substance behind it. And we are seeing it right through their policies, so-called. They don't have
policies, they've got pronouncements, they've got platitudes, and behind them, there is no
substance. There is an emptiness - a void at the core of this government.

LYNDAL CURTIS: On one of the major policies the Government's grappling with, the emission trading
scheme, when you were environment minister in the previous government, what was your department
telling you about when an emission trading scheme could be introduced?

MALCOLM TURNBULL: Oh well, they were saying it would be a push to get it started in 2011, 2012. And
as you know, we nominated 2012 and if could have got elements that is started a little bit earlier
we would have. But it was, the same people that are trying, seeking to implement the scheme now
told us 2012 was when you could get it started by.

Now, what Kevin Rudd did, to show how macho he was and how committed he was to fighting climate
change, he said, I'll start it two years earlier. He had no basis for knowing whether that was
feasible. Now, I've been spending my time lately going through the submissions to the Garnaut
Review, from industry, from individuals, from a huge range of people. And the thing that comes out
to you, screaming out of those submissions is the intense complexity of this emissions trading
scheme. It is going to be very, very tough.

Now, we knew that, we set a start date that was some years off on the best advice. What Kevin Rudd
has done has got a start date that I think guarantees that it will go off half-cocked. Now he has
got to be prepared to eat some humble pie, take some expert advice and if he is told by his
department, by the experts in Canberra that this needs more time, then he'll have to take it.

But he will then have to pay, just as he is with the computers in the schools, he'll have to pay
the political price for putting spin, as always, above substance, for having nothing behind the
political platitude and the effective policy that we need.

LYNDAL CURTIS: Malcolm Turnbull, thank you very much for your time.

MALCOLM TURNBULL: Thank you.

ELEANOR HALL: And that's the shadow treasurer Malcolm Turnbull, speaking to Lyndal Curtis.

Plight of homeless raised at community cabinet

ELEANOR HALL: The Federal Cabinet is meeting in Mackay today after holding its fourth community
cabinet meeting in the north Queensland town yesterday.

Many locals said they were pleased to have the opportunity to meet senior ministers. And one group
is hopeful that the Government will now take action on what it described as the problem of "the
forgotten homeless", those people who are rejected even by charities.

In Mackay, Sabra Lane reports.

SABRA LANE: As the crowd waited for the Prime Minister to show up at the Mackay North High, the
school's band, which is heading to the Beijing Olympics to perform, entertained the audience.

(Sound of high school band playing)

SABRA LANE: Also entertaining, a young six-year-old who stole the show, once Mr Rudd did turn up.

MACKAY RESIDENT: Six months ago, my daughter Claudia who's six, was very upset when she couldn't
vote. When she heard you were coming to town, she wanted to try and meet you, and if it's possible
present you with this picture of a whale that she's coloured in.

KEVIN RUDD: Ah, good. I love that. Thank you.

(Audience claps)

SABRA LANE: Claudia had her photo taken with the Prime Minister and seemed pretty chuffed.

CLAUDIA: Well I drawed a little picture for, there was a whale and I coloured the whale in and I
did the writing.

SABRA LANE: As Claudia can attest, you don't have to be a voter to attend these events.

Anyone can go to a community cabinet meeting, as long as they registered days before the Federal
Cabinet rolls into town.

They're allowed in on one condition: That no banners are brought to the meeting. But some cleverly
avoid that restriction by getting slogans printed on T-shirts, like Mark Young.

What does you t-shirt say?

MARK YOUNG: Children need their fathers as much as they need their mothers.

SABRA LANE: Mr Young is the local representative of the Lone Fathers Association. He had a meeting
with the Federal Attorney-General over the rights of dads. He says community cabinets are
worthwhile events.

MARK YOUNG: Yeah, an excellent idea because it gives a chance to put the issues in front of the
public.

SABRA LANE: Labor MP James Bidgood won the seat of Dawson from the National Party at the last
election, perhaps not surprisingly, he's a firm believer in the events.

JAMES BIDGOOD: I am passionate about grassroots democracy. I believe that it's the government of
the people for the people and we shouldn't expect the people to have to travel thousands of
kilometres to have their voice heard, i.e. to Canberra.

SABRA LANE: Ian Hamilton, the Reverend Jan Whyte and Don Leckenby arrived at the venue more than
hour before it started. They're scheduled to have a meeting with Federal Housing Minister, Tanya
Plibersek, to talk about a particular sub-group among the homeless, those who can't stay at most
boarding houses because they can't give up alcohol or can't stop their drug habits.

Ian Hamilton.

IAN HAMILTON: There's a need, a need to cater for the street people who are not eligible to go into
what facilities there are available in Mackay. As good as they may be, there is that section of the
community that is just not catered for and they're desperate for somewhere to get help and a roof
over their heads and someone keen to be shown care.

SABRA LANE: How many people are we talking about?

IAN HAMILTON: We believe that in Mackay, and it's an escalating number, but about 200. We
specifically at St. Pauls cater for about 30. But that number seems to be increasing. You know,
they do actually sleep under the church and around the church and we really see the need for them
to have somewhere where they can go and feel safe.

SABRA LANE: The Reverend Jan Whyte.

JAN WHYTE: They really need someone to care about them, to love them, and to find somewhere that
they can call home, where they feel comfortable, because until they do that they can't even begin
to think about starting to think about dealing with the issues in their lives.

SABRA LANE: They were scheduled to have a 10 minute meeting with the Minister. She ended up seeing
them for 20.

The Reverend is a strong advocate for community cabinet meetings.

JAN WHYTE: I think it's a great idea. We would not have this opportunity to make the points that
we'd like to make without that. And I think it's helpful for us as Australians to see our
government at work. I think it's very positive.

ELEANOR HALL: That's the Reverend Jan Whyte speaking to Sabra Lane in Mackay in northern Qld.

Reeling market to post 26-year record slump

ELEANOR HALL: Today is the last day of what has been a turbulent financial year. And when the
sharemarket closes this afternoon, few investors will be celebrating.

The Australian market is set to post its worst slump in 26 years as it continues to reel from the
global credit crunch and the spiralling oil price. Business editor Peter Ryan has our report.

PETER RYAN: By the time the sharemarket closes this afternoon the index of Australia's top 200
companies, known as the ASX 200, will have lost around 16.5 per cent, adding up to the worst year
since 1982.

The month of June will also rewrite history with the biggest slump since 1940, not quite as bad as
in the United States, where it's the worst June since the Great Depression.

So not surprisingly fund managers who are paid big money to make big money have no choice but to
tell it as it is.

SHANE OLIVER: Well effectively we've had what might be likened to a perfect storm for the
sharemarket.

PETER RYAN: Shane Oliver, chief economist at AMP Capital Investors, is making no excuses.

But like everyone else in the business, he's been riding a wave of global volatility, and some of
the waves have been dumping.

SHANE OLIVER: We've had the subprime mortgage crisis in the US, which has turned into a credit
crunch, which of course is still continuing. On top of that we've had the huge surge in oil prices.
And of course locally we've had an underlying rise in inflation as well, which has led to much
higher interest rates.

So, we've had this worst of all possible combinations for shares of slowing growth, worries about
profits, but at the same time, high inflation and higher interest rates.

PETER RYAN: The credit crisis, which almost claimed the Wall Street bank Bear Stearns, has led to
months of fear and suspicion, with banks too scared to lend to each other.

And Australian banks haven't escaped. They responded with interest rate hikes independent of the
Reserve Bank to cover the higher cost of money.

But while bank shares have suffered the most, Shane Oliver says it's not all bad news.

SHANE OLIVER: The strongest performing sector has of course been the resources sector with huge
gains in many of the resources stocks. In fact, overall, the resources index is up by more than 20
per cent and of course that contrasts with banking and financial stocks which are down about 35 per
cent, and consumer discretionary stocks which are down by over 40 per cent. So a huge divergence
between the resources sector on the one hand, and the financial and consumer-related stocks on the
other hand.

PETER RYAN: While professional investors have been burnt, ordinary Australians with an indirect
sharemarket exposure through superannuation funds, also face negative returns - the worst since
1987-88 in the wake that particular sharemarket crash.

ANDREW BOAL: This year's going to be a year of quite bad returns. For the month of June, which
isn't quite over yet, it's looking like the Australian sharemarket is going to be returning about
minus seven per cent, and that means for many superannuation funds, the return is going to be
somewhere between minus six or seven, and even minus 10 per cent in some cases.

PETER RYAN: Andrew Boal is the Australian managing director of the global superannuation advisor,
Watson Wyatt.

With retirement incomes in the hands of stockpickers, there's the question of: how good are they?
With an admission from AMP's Shane Oliver that most failed to predict the market carnage.

SHANE OLIVER: The slump in superannuation returns that we have seen over the last 12 months has
come as a surprise to most commentators. If you go back a year ago, most commentators thought that
super returns would certainly slow down after four very, very strong years. That's certainly the
bulk of them weren't anticipating a slump of this magnitude.

PETER RYAN: The upside is that many shares are now seen as attractively cheap, with losses pushed
higher by end of year tax loss selling.

But those predictions are made in the context of more rough and uncertain times ahead, increasingly
bleak economic news and dozens of earnings downgrades expected in the new financial year.

ELEANOR HALL: Business editor Peter Ryan.

Govt to increase powers on 457 worker mistreatment

ELEANOR HALL: The Federal Government is planning to give immigration officials new powers to deal
with the mistreatment of overseas workers who have been brought into Australia under the 457 visa
system.

The Government wants officers to be able to more easily enter and search workplaces and it wants
employers who have mistreated their overseas workers to face much tougher penalties.

The Immigration Minister Chris Evans has been speaking to Samantha Hawley.

CHRIS EVANS: What we've seen in recent years is expansion of the scheme into mainly trades areas.
And that's where we've seen some terrible exploitation, we've seen people put into inappropriate
housing, having to pay for the right to come to work here, and then been underpaid. So those are
the sorts of things we want to address.

SAMANTHA HAWLEY: And you're now obviously looking at tough new powers, including allowing
immigration officials to enter and search workplaces?

CHRIS EVANS: Yes. Look, we've found that the powers under the Immigration Act haven't given us the
capacity to deal with the abuse. What we need is more traditional, industrial relations powers. And
so the bill will include the capacity for us to get into workplaces, check the records and assure
these people are being paid properly and they're getting appropriate Australian conditions.

SAMANTHA HAWLEY: So these will be on the spot checks, presumably employers won't be giving any
notice about these?

CHRIS EVANS: That's a matter of identifying where we have some concern and going in, that's right.
But this is really giving us the sort of powers you have under industrial relations or workplace
safety regulations.

SAMANTHA HAWLEY: Are these tough fines and the threat, I guess, of a 10 years in jail the way that
you thought really, or the only way you thought the message could be sent to these employers?

CHRIS EVANS: I want to stress. I mean most employers do the right thing. We've had a tremendous
amount of success in bringing in the right people under this program, including mainly doctors and
nurses. So, this is dealing with the minority of employers who sought to exploit the scheme.

And we've just got to make sure the scheme's more robust and those that do the wrong thing are able
to be investigated and prosecuted and currently we just don't have enough powers at our disposal.

SAMANTHA HAWLEY: But if employers are found to be what underpaying 457 visa holders or not treating
them as well as their Australian counterparts, they could face a jail term?

CHRIS EVANS: That's very much at the higher end, but that's right. I mean I want a very clear
message. People bringing workers into this country have rights and responsibilities and we're going
to make sure they meet their responsibilities. Australians will only support a temporary migration
program if they think one, the people are being treated appropriately, and two, they're not coming
into take jobs from Australians or undercut Australian wages and conditions. I'm committed to
ensuring both principles are applied.

So we will take tough action at anyone against anyone not doing the right thing. This isn't about
undercutting Australians conditions or about preventing Australians getting the work they otherwise
should. This is about meeting temporary needs when they can't get Australian workers for that
particular skill area.

SAMANTHA HAWLEY: And you also want to make sure that these visa holders aren't brought in here to
be used as so-called strike-breakers.

CHRIS EVANS: There was a suggestions a few months back in one of the big industrial dispute that
somehow 457 workers would be brought in. And I'll make it clear, they wouldn't be used for that
while I was Minister, and this really looks to pick up that prospect as well.

SAMANTHA HAWLEY: Given the huge amount of problems that this scheme has been faced with in recent
years, is not better to get rid of it and perhaps start afresh?

CHRIS EVANS: Look, part of it is restructuring. Whether they say, what's happened is the schemes
evolved. And I want to stress the vast majority of workers come here are well paid, they meet the
skills gap that's available and then they go back to their home countries. This is just making sure
we deal with the small percentage of exploitation that's occurred.

ELEANOR HALL: That's the Immigration Minister, Chris Evans, speaking to Samantha Hawley.

Mugabe to attend AU summit, negotiate with MDC

ELEANOR HALL: Let's go overseas to Zimbabwe, where the country's ageing dictator, Robert Mugabe has
been formally confirmed in his sixth term in office.

Mr Mugabe won last Friday's second-round presidential poll but under conditions that have been
condemned internationally.

And in one of his first announcements since being sworn in, Mr Mugabe has said he'll attend the
African Union summit in Egypt later today to face down his critics.

He's also said he wants to negotiate with the Zimbabwean Opposition, at some point.

This report from foreign affairs editor Peter Cave in South Africa.

PETER CAVE: As the band played and his red gowned and bewigged judiciary looked on, Robert Mugabe
claimed another five years at the helm of the country he

has ruled and ruined over the past three decades.

ROBERT MUGABE: I, Robert Gabriel Mugabe, do swear that I will will...

PETER CAVE: Mr Mugabe was magnanimous in his victory speech offering to negotiate with the
Opposition in his words sooner rather than later.

He was also unstinting in his praise for his old friend South African President Thabo Mbeki's
efforts as mediator for the Southern African Development Council or SADC.

Opposition leader Morgan Tsvangirai.

MORGAN TSVANGIRAI: The inauguration is a meaningless exercise. As far as we're concerned, the world
and the African Union, is building up, the pressure is building up against him.

PETER CAVE: SADC's observer mission and the observer mission from the wider Pan-African Parliament
of the African Union have both given the election the thumbs down.

MARWICK KHUMALO: The mission concludes that the current atmosphere prevailing in the country did
not give rise to the conduct of free, fair and credible election.

PETER CAVE: The head of the Pan-African observer mission Marwick Khumalo.

Robert Mugabe has announced he will attend the African Union summit meeting which gets under way in
Sharm El Sheikh in Egypt later today. He is expected to try to stare down his critics there as he
has many times in the past using his age and standing as a hero of the African Liberation Movement.

The Zimbabwean Opposition has accused the South African President who flew in a day early of
lobbying on behalf of Mr Mugabe.

But there is a growing anger amongst Zimbabwe's neighbours.

RAILA ODINGA (translated): Mr Mugabe's become a huge embarrassment for the African continent and
we're saying that the African Union must deploy troops to Zimbabwe to liberate the people of
Zimbabwe.

PETER CAVE: Kenyan Prime Minister Raila Odinga represents the more extreme view, but a growing list
of African leaders are calling for the Zimbabwe election to be declared invalid and the next two
days will tell if they can hold sway.

Meanwhile the United States is pushing for tougher sanctions in the UN Security Council and the US
says it's not concerned about South Africa trying to water down any action there.

JENDAYI FRAZER: South Africa doesn't have a veto on the Council, and we would expect in a Security
Council resolution to get the number of votes necessary to be able to more move forward with
multilateral sanctions. I think most people in the world understand today that more stringent
action is needed to get this government.

PETER CAVE: US Assistant Secretary of State for African Affairs Jendayi Frazer.

This is Peter Cave reporting from Johannesburg for The World Today.

Defence under fire over Blackhawk crashes

ELEANOR HALL: The Federal Opposition is demanding that a report into the fatal crash of a Blackhawk
helicopter be released publicly.

The pilot and a special forces soldier were killed in the crash two years ago off the coast of
Fiji. And while the military board of inquiry completed its report six months ago, this morning
some details have been leaked to Fairfax newspapers.

The defence force is refusing to comment and it's also on the back foot over revelations about
another Blackhawk crash a year ago in East Timor.

Simon Santow has our report.

SIMON SANTOW: To their supporters the Blackhawk helicopter is an irreplaceable piece of military
hardware.

But detractors point to a large death toll involving the choppers. In 1996, 18 soldiers and air
crew died in a training exercise near Townsville. A dozen more were injured.

Ten years later, another Blackhawk went down, this time on a training exercise near Fiji. The
helicopter smashed into the side of HMAS Kanimbla before plunging into the ocean. An SAS trooper
died along with the pilot.

So you can imagine the surprise when the Sydney Morning Herald this morning revealed there'd been
another crash last year, at a time when the defence force was inquiring into the Kanimbla incident.

It was also just two days after a report had been made public into the crash of the Sea King
helicopter in Indonesia, that accident claimed nine lives.

Opposition defence spokesman Nick Minchin on AM this morning.

NICK MINCHIN: Now that this Sydney Morning Herald has revealed this incident, I think it is
incumbent on the military now to tell us what that was about. What, how serious a crash it was and
what, if any, investigation was carried out into it. Whether there were any injuries or what it
says about the maintenance and the safety of the Blackhawks themselves.

SIMON SANTOW: Of course this also happened when the Howard government was in power. You would
obviously reassure the public that it would never have been an order of the Howard government to
not to make this crash public.

NICK MINCHIN: Well, to the best of my, I never knew about it. I was a frequent visitor to the
National Security Committee. This incident was never mentioned to me, it's the first I've heard of
it. So I think I'd be pretty safe in saying there was nothing done by the Howard government to
suppress any report of this incident.

SIMON SANTOW: Just a couple of hours later, Brendan Nelson, now Opposition leader, but then the
defence minister, contradicted his shadow Cabinet colleague.

BREDAN NELSON: I mean you need to understand that when you've got troops and equipment deployed
into many theatres throughout the world, it is a very common, a very frequent occurrence for
incidents involving equipment, to be reported to the chief of defence and therein to the minister.

Not all of them are released into the media for god operational reasons, but certainly on the basis
of what was reported to me at the time, it was reported to me as an incident involving a heavy
landing of a Blackhawk helicopter. The defence people themselves were investigating it, and I
expect that the outcome of that investigation will be released by the Chief of Defence when he's
satisfied that it's complete.

SIMON SANTOW: The World Today's been told by military sources that the crash in East Timor was not
so much an accident as a hard landing.

The defence department won't comment or confirm reports the Blackhawk in question has not flown
since.

Whatever the truth there, it seems surprising that at a time of heightened sensitivities over
military helicopter safety, no-one thought it necessary to let the public know another Blackhawk
had had mechanical problems.

ELEANOR HALL: Simon Santow reporting.

Staff shortages see pilots flying blind

ELEANOR HALL: Over the weekend, pilots in parts of Queensland and northern New South Wales were
almost flying blind.

They were without air traffic control guidance from Brisbane because too many staff had called in
sick.

Qantas cancels flights in such circumstances. But the union representing air traffic controllers
saying even major metropolitan airports will face similar problems because there just aren't enough
staff.

In Brisbane, Donna Field reports.

DONNA FIELD: Airservices Australia is a government-owned corporation that provides air traffic
control across the country.

Over the weekend five sick staff members threw the organisation into chaos. When replacement
controllers couldn't be found the company had to stop offering its services across southern Qld,
northern NSW and Cape York.

More than 40 flights were affected, some were cancelled, others chose to continue flying.

Airservices Australia refused to agree to an interview today, but a spokesman says safety was still
paramount and the company was still monitoring and observing planes, it just couldn't communicate
with them.

The Australian Federation of Air Pilots says under such circumstances pilots become responsible for
their position and broadcast to other aircraft in what's called self-separation.

Lawrie Cox is the federation's manager of Industrial Relation.

LAWRIE COX: Well it becomes a concern when there is no air traffic control at all and that we then
go to a procedure called a traffic information broadcast by aircraft which is basically
self-separation. The airline companies have to have an individual policy on that.

I know at least one company that is not keen on it, but we're in a situation where that's the
nature of the industry at the moment because the air traffic control Airservcies Australia just
doesn't have to the people to replace people when they get sick.

DONNA FIELD: So for those airlines that continue to fly in that situation, are they risking an
accident happening?

LAWRIE COX: Look, it wouldn't matter if there was air traffic control or not, I mean they're always
at that risk. It is a higher risk when you don't have air traffic control monitoring the high speed
aircraft, large passenger aircraft.

DONNA FIELD: The union representing air traffic controllers is Civil Air.

Executive secretary Peter McGuane says there's a chronic shortage of controllers across the world
and as part of current enterprise bargaining negotiations with Airservices Australia higher pay is
on the agenda.

Mr McGuane has defended the air traffic controllers who couldn't come in to work on the weekend
when their colleagues called in sick.

PETER MCGUANE: There would be a variety of reasons for that. Perhaps they would have already worked
to the limit, they might be already having worked overtime during that roster cycle, they might
have other commitments, or they simply might be unwilling to continue to work overtime constantly
to keep the system running.

DONNA FIELD: So this is not part of an industrial campaign that makes up part of your current
enterprise bargaining negotiations.

PETER MCGUANE: It's absolutely not part of any industrial campaign. We don't have industrial
campaign.

DONNA FIELD: And Mr Guane says it's not just small airlines and regional areas that are affected.
He says some of the busiest air routes in Australia have operated without air traffic control.

PETER MCGUANE: It's common within Australia, it's not common internationally. It's becoming, it's
occurring with some regularity in Australia due to the constant reliance on overtime and the lack
of staff planning that's occurred over the past four to five years.

We had continually warned the employer that they were facing critical staff shortages with the age
profilers, the profession with people being attracted to positions overseas. And those warnings
were ignored - and it's only in the last six months or so that has in fact been acknowledged by the
employer.

DONNA FIELD: And so in this case, it was northern NSW and Qld and Cape York. Are there instances
where major metropolitan areas like Sydney and Melbourne aren't covered?

PETER MCGUANE: Yes, there are and that's been occurring intermittently for sometime. But it applies
all over the country.

ELEANOR HALL: That's Peter McGuane from the union representing air traffic controllers ending Donna
Field's report.

Gay clergy ordination causes Anglican rift

ELEANOR HALL: A group claiming to represent almost half of the world's Anglicans has broken off
relations with the church in the United States, and says it plans to set up a separate council of
bishops to fight modern trends in the church including the ordination of gay clergy.

One of the group's leaders, Sydney Archbishop Peter Jensen, denies the plans amount to a split in
the communion.

But a leading Anglican commentator says it's pretty close, as Ashley Hall reports.

ASHLEY HALL: When the American Anglican Church elected the openly gay cleric Gene Robinson as a
bishop in 2003, homosexuals in the church lauded it as a victory for equality.

But the move also exposed divisions that ran deep in the communion. Conservative dioceses were
furious at the church's failure to discipline the Americans.

It sparked a movement against tolerance for homosexuality, which culminated in the Global Anglican
Future Conference or GAFCON in Jerusalem. A week of singing, praying and talking about the church's
future.

PETER JENSEN: The homosexual crisis is only symbolic of a whole way of looking at the world and
which many in the church have taken on as well, I call this post-modernity.

ASHLEY HALL: Sydney Archbishop Peter Jensen is one of GAFCON's key leaders.

PETER JENSEN: We have decided to rescue people in the west who want to stand for the old ways, who
want to stand on the bible. Secondly, we've decided to protect ourselves against this postmodern
and relativistic world view that will come our way through the internet and other communication
revolutions.

ASHLEY HALL: The Anglican clerics signing the Jerusalem Declaration say they represent more than 35
million Anglicans throughout the world, many of them in Africa.

The declaration breaks off ties with the American church, accusing it of preaching a false gospel.
It sets up a separate council of archbishops, and a commitment to a conservative statement of
theology.

Bishops would also be allowed to cross parish borders to adopt congregations unhappy with the
teachings of the mainstream Anglican Church.

The leaders of the new movement say they're not splitting from the mainstream church, nor are they
creating a church within a church.

But that's not quite the way Dr Muriel Porter sees it.

She's a prominent Anglican lay-woman in Melbourne and a member of the church's general synod and
standing committee.

MURIEL PORTER: Not splitting, saying this is not a split is a way of having your cake and eating it
too. It's very close as the challenge that I think to the American church and the Canadian church,
they say they're out fellowship with them. More importantly, they're saying, they're declaring as I
read this declaration that the Archbishop of Canterbury's role in determining to finding who is
Anglican and who isn't, is no longer the case.

That to me is tantamount to a split.

ASHLEY HALL: Bishop Allan Ewing is the acting bishop of Canberra and Goulburn.

ALLAN EWING: I think that the Anglican communion has always had groups within it who have held to
strong views on particular matters. And in fact, over the last number of decades, there have been
groups who have met separately to discuss particular issues.

I think that one of the things that the GAFCON group is aiming to establish is that this group can
speak with one voice on this particular matter. And that will be both helpful and at times a
hindrance, I think, for the wider Anglican communion.

ASHLEY HALL: He says there were few surprises in the declaration.

ALLAN EWING: I was distressed that in some of the speeches at GAFCON there was a decision to
personally attack the Archbishop and I think that was both wrong and unfair.

ASHLEY HALL: Unchristian, possibly?

ALLAN EWING: I would hesitate to say that, only because over the centuries Christians have done all
sorts of things to each other. It's certainly, I don't think it's right to attack people, when
you're attacking questions of belief or how we as a church might address particular issues.

ASHLEY HALL: Dr Porter accuses the group of underhand tactics.

MURIEL PORTER: This is an attempt to stand over, if you like, the bishops who'll be meeting at
Lambeth, starting in mid-July, trying to bully them, that's the only word I can use, bully them
into going the way that this quite small group of Anglican dissidents want the church to go.

And I think we have to remember, they are a group of dissident Anglicans, very conservative, very
hardline, who want to push the church in a particular direction, but I hope and pray the bishops
and the church in Australia and elsewhere will not agree to. We must not be bullied.

ELEANOR HALL: Dr Muriel Porter is a member of the Anglican Church's General Synod and she was
speaking to Ashley Hall.

Kids more sociable, less anxious: study

ELEANOR HALL: They may be more prone to obesity and depression, but according to a study on
Australian children, are now sociable and less anxious than they were 20 years ago.

The findings by the Australian Institute of Family Studies fly in the face of the popular belief
that children today are more difficult to control.

Barbara Miller prepared this report.

MOTHER: I work in a baby shop, so, I really, and I've heard that term "micro-managing", and I think
that's really, really prevalent. I really think people pressure their children to,out of their
boundaries to be learning and put in social situations that they're not necessarily comfortable
with. That we weren't expected to.

BARBARA MILLER: In a play park in Sydney's inner-west the concepts of hyper-parenting is all too
familiar.

MOTHER 2: There is a lot out there, now offered for children, just about everything you can think
of. There is activities, tutoring, all sorts of things around the place. And so, sometimes you do
question whether or not you're doing enough for them.

And many of the mothers watching their children at play today said they had to consciously make an
effort not to hot-house their children.

MOTHER 3: You sort of get caught up in that, "Oh, they can do this, they can do that." There's all
these activities, and I actually, after a little while of her doing her a whole lot of different
things, I just stopped doing them. I just thought, actually we'll just go and play in the park.

MOTHER 4: You do have to work on it. I don't believe in putting them under pressure, education or
otherwise. But I think a lot of it is product-led. I think the resources available for children are
extraordinary.

BARBARA MILLER: Because many studies have suggested children do suffer under the high expectations
of their parents and society, the Australian Institute of Family Studies decided to compare results
from two studies on children's well-being: one from now and one from the 1980s. The results were
rather surprising.

DIANA SMART: The groups were really very similar, but today's children did have an edge in their
social skills, in how they were getting on with other people.

BARBARA MILLER: Diana Smart is the study's lead author.

DIANA SMART: Today's parents might know a little bit more about children's development and in the
'80s there's a lot of attention given to children's development and growing up and we see programs
like Super Nanny and those sorts of things.

So, perhaps today's parents are a little but more tolerant and understanding children's development
than in the past.

BARBARA MILLER: It seems to sort of fly in the face of popular belief though, doesn't it? We tend
to think now that these older, more educated parents are a lot more anxious, they're putting a lot
of pressure on their children and there often reports suggesting that children feel that pressure
and are themselves anxious.

DIANA SMART: I know that is a popular perception; but the evidence from the latest study - the
children of the 2000s - in fact suggest that the older parents perhaps have a slight edge in their
parenting skills compared with the younger parents when we have looked at it. So, I think that
perception might not be quite accurate.

BARBARA MILLER: The study also found that while today's parents reported that their children were
more sociable and less aggressive than parents did 20 years ago, teachers today are report more
behavioural issues than previously.

But Helena Card from St Josephs Memorial School in Norwood in South Australia says it's not the
children who have changed in that time.

HELENA CARD: I think as teachers, that we understand the behaviours of children are a lot better.
That our learning has progressed to understand many issues and underlying styles of learning that
children have present with in the classroom. Whether that be behavioural or learning difficulties
or diversities, and we're able to cater to these a lot better now. Whereas before we may not have
understood them as well as we do now.

BARBARA MILLER: There are so many worrying reports for today's parents. But the message of this one
is that on the whole they're doing just fine.

ELEANOR HALL: Barbara Miller reporting.

Former PBL assets 'worth nothing'

ELEANOR HALL: Just over 18 months ago they were sold to a private equity house for $5.6-billion.

Now the Nine Network and ACP Magazines, once owned by the Packer family, have been valued at zero.

One of Australia's top media analysts says the level of debt within the group and a lack of
transparency are behind the decline.

Emma Alberici has our report.

EMMA ALBERICI: The theory behind private equity is that they buy companies on the cheap, trim any
fat and on-sell them for big profits within five years.

This has far from played out for PBL, once the crown jewel among the Packer family's investments.

Reminiscent of Kerry Packer's sale to Alan Bond in the '80s, CVC Asia Pacific bought 75 per cent of
PBL for $5.6-billion. But those assets, Channel Nine and the ACP Magazines: Woman's Weekly, Woman's
Day and Cleo among them, have been valued at zero.

In an analysis of James Packer's Consolidated Media following Lachlan Murdoch's bid to privatise
the group failed, one of the country's leading media analysts said in the absence of a takeover
offer we only see reason to buy Consolidated Media if PBL media is in the share price for free.

According to ABN AMRO, the rising cost of debt combined with a weak television advertising market
is to blame.

Glenn Dyer spent 16 years at Channel Nine and is now business and media commentator with the online
group Crikey.

GLENN DYER: Debt is so much on the nose these days. You've seen it in property trusts,
infrastructure trusts, airlines, anything with debt is been assumed, given that sort of a very low
rating, a very low valuation. I think the most interesting thing is how young Mr Murdoch has
allowed to escape a very terrible decision.

EMMA ALBERICI: What do you mean?

GLENN DYER: Media's on the nose and that's why Cons Media looks to be a bit of a basket case in the
eyes of some brokers. That's why PBL Media looks to be a bit of basket case. Because it's also got
the overlay of huge debts; the private buyout debts to the sort of current thinking in the
stockmarket, that's a no-no.

EMMA ALBERICI: What is it about Channel Nine and the ACP Magazine group that makes it, that gives
it such a disadvantage over the other media companies in Australia?

GLENN DYER: It's had several, Nine in particular, has had several years of bad publicity, poor
ratings, poor financial performance and it's a credibility in question. And there's a story on the
front page of the Financial Review this morning highlighting the comeback of David Gyngell.

Gyngell has done well, he has surprised everybody, his competitors in the TV industry, he's been
helped by a couple of poor program decisions by Seven in particular, but he's doing well. But
because the debts are so high in PBL Media, they're sort of running up and down the spot just to
stand still.

ELEANOR HALL: And that's Glenn Dyer, a media commentator with Crikey, ending Emma Alberici's
report.

Microsoft faces stiff competition with Gates gone

ELEANOR HALL: The man who's credited with introducing personal computers into homes and offices
around the world has officially stepped down as the head of Microsoft.

Bill Gates resigned on the weekend saying he would now concentrate on using his billions to try to
eradicate disease and poverty around the world.

But while Mr Gates focuses on philanthropy, the software empire he co-founded in the mid-1970s is
facing challenges of its own from younger, more agile rivals.

North America correspondent Kim Landers reports.

KIM LANDERS: Bill Gates has logged off from 33 years with Microsoft in a teary farewell to
employees at the software giant's headquarters.

BILL GATES: I love this company. (laughs)

(Audience claps)

KIM LANDERS: But even as he left he was still defending the company he co-founded from challenges
from younger Internet rivals like Yahoo and Google.

BILL GATES: Well Microsoft had its honeymoon where people thought we were perfect. Google's still
probably in its honeymoon period doing good work. We love the competition. There's always a hot new
company and people are always looking, how will they change things. That's why this is such a fun
business.

KIM LANDERS: So what will a man who headed the world's biggest software company do with his time?
What job could possibly be a challenge?

A humorous video shows U2 star Bono rejecting Bill Gates' plea to join the band.

BONO: We're full up in the band, Bill, all positions are filled.

KIM LANDERS: Bill Gates is no longer the world's richest man, but he does have a new day job.

He's going to work full-time at the Bill and Melinda Gates Foundation, a charity which has been
built from his vast fortune now estimated to be $58-billion.

Jason Tanz is a senior editor at Wired Magazine. He says the 52-year-old will also be remembered as
a shrewd businessman.

JASON TANZ: I mean when you think about where computing was when he came into it and the many
revolutions that he brought to the industry, I mean the largest revolution that he brought was of
course introducing personal computing to the masses. But if you think about how long he stayed on
there, and the many innovations within that innovation, you know, part of that was convincing
developers to build on the Microsoft platform.

That's a model that software still clings to today if you look, for instance, the Facebook model of
software development, which is build a website and ask developers to build within that website.
That's right out of the Windows' play book.

KIM LANDERS: I Microsoft going to be able to survive and adapt without Bill Gates there 24/7?

JASON TANZ: Will be able to survive? Absolutely. I don't think anybody's really predicting it's
going to go out of business tomorrow. But that being said, the company is at a vulnerable position.
It doesn't own the future in the way that it used to. It's facing probably its fiercest competitor
right now with Google.

Bill Gates long ago, in 1995, he wrote a memo foretelling the coming Internet tidal wave and
charging Microsoft with adapting to this, that you know the Microsoft model relies on desktop
software, to things like Windows and Office that you buy at a store and you unwrap and you install.

And increasingly software is not purchased or used in that way. You see a lot more web-based
applications, instead of seeing these giant programs like Windows or Office that are feature-rich
and have a million different things and can do everything for everybody. You're starting to see
more targeted smaller applications that are designed for sort of more bite-sized roles and that's
becoming a more popular way that people are using software. And Microsoft is still trying to adapt
to that changing world.

Now that being said, they're an incredibly wealthy corporation. They make a tonne of money and they
have a bunch of cash on hand. So, again, I think that you can overstate the dire circumstances they
find themselves in. It's more forward looking, people are wondering if they're going to be able to
adapt and take advantage of the changing environment that has being changing for a while and
they've so far have failed to do.

KIM LANDERS: Bill Gates hasn't severed all his ties to Microsoft.

He'll still be the non-executive chairman and he's still the company's largest shareholder.

This is Kim Landers in Washington for The World Today.