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G8 leaders hammer out final statement

EMMA ALBERICI: Behind the scenes negotiations are in full swing in the Japanese resort town of
Toyako as world leaders from the G8 hold their annual conference.

Diplomats from the G8 countries are furiously working to settle the text of the summit's communique
- a document that will reflect the views of the leaders on issues from aid to Africa and food
security, to the stability of the world economy and currency markets.

As Shane McLeod reports, there are signs that deep divisions between G8 leaders are making the
negotiations a tortured process.

SHANE MCLEOD: As the G8 leaders began their summit proper this morning, details started to emerge
of the dealings going on behind the scenes to agree on what it is they've agreed to talk about.

The key outcome of any G8 summit is the communique the leaders issue at the end of their talks.

It details their discussions and points to the key issues on which they agree to take action.

Senior officials from the eight countries have been working to shape the draft communique, a
document that the leaders will consider at their meetings today and on one of the key sticking
points - long-term goals for reducing carbon dioxide emissions - there may have been a
breakthrough.

Europe and Japan are pushing for the G8 to take a step on from last year's summit, where they
"agreed to consider" long-term goals for CO2 reductions.

But doing that, while accommodating the reluctance of the US President George W. Bush to adopt
targets without China and India doing the same, is why the negotiations over this year's text are
proving difficult.

Australia's Prime Minister Kevin Rudd will be one of a group of other leaders from industrialised
countries joining the G8 leaders tomorrow for more talks on climate change.

Mr Rudd will be allotted six minutes to put Australia's case.

He says he'll make a strong argument for co-ordinated international action.

KEVIN RUDD: I will be engaging world leaders on the need for us all to achieve real progress on the
post-Kyoto road map. This is critical for the planet and critical for Australia. We are the world's
hottest and driest continent already and therefore we run the risk of being hit earliest and
hardest when it comes to climate change.

SHANE MCLEOD: But there are signs that the Major Economies Meeting won't have numerical targets on
its agenda either.

Reports of a draft communique for the meeting suggest that the MEM leaders will put off
consideration of targets to the United Nations Climate Change meeting next year in Denmark.

Mr Rudd says it's not in Australia's interests to stay out of the discussions.

KEVIN RUDD: Twenty-seven states in Europe are already operating with a carbon reduction trading
scheme. More than 10 states of the United States are already operating with a carbon reduction
scheme. Japan, where we are going, is currently debating the introduction of a carbon reduction
scheme. The rest of the world is moving. We must move with the rest of the world.

SHANE MCLEOD: The other summit language issue is fulfilling past G8 commitments on aid to Africa.

A hard-fought deal finalised at the Gleneagles Summit in the UK in 2005 was to have doubled aid to
Africa to $50-billion within five years.

Anti-poverty activists have accused some G8 nations of trying to water-down the language in this
year's summit communique, to remove the numerical goals and to introduce vagueness into the
language.

The points the G8 leaders are able to agree is what's on the agenda for their talks today.

It won't be until they've had their face to face meetings that the final agreement will be made.

This is Shane McLeod reporting for The World Today.

NGOs criticise leaders

EMMA ALBERICI: Three years ago - almost to the day, a string of benefit concerts took place around
the world in the G8 states and in South Africa. The Live 8 Make Poverty History campaign coincided
with the 20th anniversary of Live Aid and were timed to precede the leader's summit in Gleneagles,
Scotland.

The protests proved successful and, at that meeting, former British Prime Minister Tony Blair
announced that the Group of Eight Wealthy nations would raise their aid budgets by $US50-billion by
2010.

So far only $7-billion of that extra aid has been delivered or just 14 per cent of the total
promised.

The Group of Eight leaders have been attacked by Non-Government Organisations which now say the G8
lack credibility on the key issue of addressing world poverty.

I spoke a short time ago to Jeremy Hobbs, executive director of Oxfam International. He is in
Hokkaido Japan to lobby the group to make good on their commitments.

Jeremy Hobbs, what have the G8 said about aid budgets at this particular meeting.

JEREMY HOBBS: Well, they haven't actually said anything yet. In fact we are waiting for a
communique on development and on Africa which they were working on last night. We understand that
it is still not agreed and obviously what concerns Oxfam and a lot of the other development
organisations is the attempt to water-down the commitments made at Gleneagles and reconfirmed in
subsequent meetings.

And now because we are facing, I guess it is this crisis in the global economy, the food crisis and
the fuel crisis, suddenly that number becomes expendable.

EMMA ALBERICI: So you mean the competing demands on the limited resources of each country
represented there?

JEREMY HOBBS: Well yes, obviously you have to put this in perspective. The European central bank
and the Americans managed to find a trillion dollars in the last six months to pay for the credit
crisis. So we are talking about $30-billion in that context, it really is not a, is a pretty modest
number and it is the number that is achievable over a number of years.

EMMA ALBERICI: It would seem Britain, America and Germany have raised their development budgets by
enough to meet the pledge they made in 2005 but France, Canada and Italy seem to be holding out.
Have they given any indication of why or how they intend to address it?

JEREMY HOBBS: Well, again it is this argument, there are domestic pressures and what we would say
is domestic budgets and domestic concerns should not be... prevent international leadership and when
you look at the crisis facing the world at the moment, the food crisis, the fuel crisis, the only
place that there is, if you like, the muscle to actually really make a difference is in the G8.

Now we don't get leadership in the G8 we are in real trouble so this summit really has to come up
with some pretty substantial proposals if we are not going to see things get very significantly
worse - particularly for poor countries.

EMMA ALBERICI: Is debt forgiveness still the main call on this aid money?

JEREMY HOBBS: No, it is not because a lot of debt has been written off. This is money that is
really supposed to be used for paying for health, education, for long-term development to really
lift countries out of poverty.

And one of the problems is in fact, that when the G8 countries count their development assistance,
they include debt forgiveness which of course is not fresh money.

But with the food crisis, I mean the estimates are around about 14.5-billion necessary to really
get food production back in order in developing countries.

If you think of the adaptation issue under climate change which is another big topic at this
summit, we need money for adaption because people are suffering now. It is not something that could
be put off into the future and they'll need fresh money for that.

What they talk about is packages for this and packages for that but we know that very often they
recycle the money from elsewhere so we need absolutely clear, explicit numbers in text and we also
need commitments of fresh money.

EMMA ALBERICI: Now at Gleneagles in 2005, the G8 leaders also pledged that all HIV positive people
would enjoy universal access to anti-AIDS drugs by 2010. That is a date now looming. How credible
does that claim seem now?

JEREMY HOBBS: Well, I mean certainly they have made a lot of progress and the investment in health
has been very important but we just need a lot more.

So the commitment on health which was made in Highlingdom (phonetic) last year, that is still
unclear because the time-frame for the $60-billion that was supposed to be committed for health
specifically picking up all issues, ranges between three and eight years. So if you spend it in
three years, you get a lot more money. If you spend it over eight years, obviously it is actually a
real cut.

So one of the things that is being addressed is that issue in this meeting is the time-frame for
spending that money on health and making a real difference because we know that where the money has
been spent on provision of drugs and access to medicine, that is had a hell of a difference.

EMMA ALBERICI: But on that issue of the AIDS budget, have and will it be likely that all
HIV-positive people, mostly in Africa, have they now got universal access to anti-AIDS drugs?

JEREMY HOBBS: Oh, by no means. No, no. It is a long way off for universal access but there has been
some progress and the point that I am making is that they need to make the financial commitments
for that universal access to be possible.

EMMA ALBERICI: Jeremy Hobbs, thank you very much for your time.

JEREMY HOBBS: My pleasure.

EMMA ALBERICI: And that is Jeremy Hobbs, the Executive Director of Oxfam International. He is on
the sidelines at the G8 summit in Hokkaido.

Coalition's climate stance under friendly fire

EMMA ALBERICI: A former Federal Coalition MP has hit out at her current Parliamentary colleagues
for their stance on climate change and an emissions trading scheme.

Susan Jeanes helped sweep John Howard into office, when she won the South Australian seat of
Kingston from Labor in 1996.

She lost the vote in '98 but became an adviser to the Federal Environment Minister instead.

Ms Jeanes says the Coalition is ducking hard policy decisions, and should help shape Australia's
response to climate change, rather than just oppose it.

From Canberra, Sabra Lane reports.

SABRA LANE: Any hope of a bi-partisan approach on developing an emissions trading scheme appeared
to evaporate yesterday with Brendan Nelson's declaration that Australia shouldn't commit to a
scheme, until India, China and the United States all sign up to reduce their emissions.

That was a policy U-turn. The Coalition had promised last year to start a scheme by 2011 and then
encourage other countries to adopt similar approaches to cut the amount of carbon they're pumping
into the atmosphere.

Now, the Federal Opposition leader says it'd be economic and environmental suicide if Australia
started a scheme before other major economies.

BRENDAN NELSON: It will be an act of environmental suicide, an act of economic suicide if Australia
were to be so far in front of the world implementing an ill-considered, not yet properly developed
and tested emissions trading scheme, if we haven't got a genuinely global response.

SABRA LANE: Susan Jeanes believes it's a fool-hardy decision. Ms Jeanes was a Federal Liberal MP
from 1996 to 1998 representing the South Australian seat of Kingston before she became an adviser
to then Environment Minister, Robert Hill.

SUSAN JEANES: I am afraid it is a rather unwise decision. I think it is time that the Coalition
tackled the hard question. I think we have been ducking this for too long now. We have walked away
from a lot of work that we had done on what an emissions trading scheme should look like earlier in
the decade.

We went to Kyoto, we signed the document. We didn't, ultimately didn't ratify as everybody knows
but we signed and we committed to do the work so we have got a pretty good idea about what an
emissions trading scheme should look like.

Now 10 years down the track, the country is going through this process again, looking at what are
the design features that are in our national interest. Certainly delaying is not in our national
interest and I think it is time for the Coalition to shape the process as opposed to oppose it.

SABRA LANE: The Coalition has been running a fairly strong line on petrol saying that it should be
left out of an emissions trading scheme, in your view, can that work?

SUSAN JEANES: Oh, anything can work but it is not optimum and if you want the lowest cost solution,
you have got to have all sectors in and this is one thing where the Coalition is speaking with a
bit of a forked tongue.

It wants the lowest cost impact but the way to get the lowest cost impact is to have every sector
in it. If you exempt a sector then you only pass the cost to another sector and from the renewable
energy industry's point of view that is not such a bad thing. You shift the cost burden onto the
coal generators and that is almost like a beneficial option for us but it is not the right thing to
do.

SABRA LANE: Why do you think the Coalition is running with these policies?

SUSAN JEANES: I suppose they are looking for a point of differentiation with the Government but I
think that they are picking the wrong story to target.

SABRA LANE: Is it vital that there be bipartisan support for an emissions trading scheme and how
Australia tackles climate change?

SUSAN JEANES: Well, I think it is vital because I think it is the best way to get an outcome in the
Senate. The Government is either going to have to deal with the Greens and the independents and I
think we have seen the independents and their track record, look at what the cost impacts are going
to be on disadvantaged Australians and low income families and that is an extraordinarily important
thing to do.

I think that is where the track record of the two independents indicates they will be going. The
Greens will be going in a direction of a very rigorous emissions trading scheme. It is not,
potentially what the Coalition is going to want to see happen so I think the Coalition have an
opportunity to shape this by dealing with it in the Senate and that is absolutely the opportunity
that they should take.

SABRA LANE: Since 2001, Ms Jeanes has worked in the renewable energy sector. She's now the Managing
Director of a company aimed at promoting renewable energy options and she acknowledges her critics
will say she has a vested interest.

SUSAN JEANES: Well of course the renewable energy industry has a vested interest in any progress,
anything that goes forward but we are going to be part of the overall solution and if we don't get
technologies, if we don't refine the development of the technologies, get the costs down and get
them into the market, it is not the renewable energy industry that is going to suffer. It is the
climate that is going to suffer.

EMMA ALBERICI: Former Federal Liberal MP Susan Jeanes, ending that report by Sabra Lane.

More gloomy news on economy

EMMA ALBERICI: There's more gloomy news on the economy today with the release of two separate
surveys showing a slump in business conditions.

The National Australia Bank's monthly report on business confidence has fallen to its lowest level
since the September 2001 terrorist attacks. Rising fuel and interest costs were listed as the main
culprits.

The fall in sentiment looks set to flow through to the jobs market with a Dun and Bradstreet survey
showing that just one in 10 firms plans to hire more staff in the September quarter.

All of that adds up to a difficult set of conditions for the Reserve Bank and other policy-setters
like the Fair Pay Commission which hands down its minimum wage decision this afternoon as Neal
Woolrich reports.

NEAL WOOLRICH: For months consumers have been feeling the pain of high interest rates and petrol
prices - now it's the turn of big business.

The National Australia Bank's monthly business survey shows a sharp and unexpected drop in
conditions during June.

Jeff Oughton is NAB's head of economics for Australia.

JEFF OUGHTON: Well, we've got conditions very much weaker across most industries especially durable
retailing and personal recreational sectors. Against that, the mining sector is still holding up
but the forward indicators also suggests that there has been a continued loss of momentum here and
that growth in the midst of slowing down marketing notwithstanding the steel booming mining sector.

NEAL WOOLRICH: Despite the worsening conditions, NAB is still forecasting Australia's economy to
grow at two-and-three-quarter per cent over the next two calendar years.

The economic forecaster BIS Shrapnel says the strength of the mining industry should keep Australia
recession-free for the next five years - provided the Chinese economy remains strong.

But NAB's Jeff Oughton says local business confidence has fallen sharply over the past six months
and has hit the lowest level since the September 2001 terror attacks in the United States.

JEFF OUGHTON: And it hasn't been just a temporary effect associated with September 2001. It is
marked change in people's outlook and it is flowing through into business decisions more generally
so it is quite a significant development and likely to lead to slower growth and rising
unemployment during the next year.

NEAL WOOLRICH: That view is confirmed in another report by Dun and Bradstreet.

Just one in 10 of the firms surveyed say they expect to hire more staff in the September quarter.

Dun and Bradstreet Australia's Managing Director, Christine Christian says its survey points to a
further slowing in the economy.

CHRISTINE CHRISTIAN: Sales results were particularly hit hard in the March quarter. In fact 42 per
cent of businesses experienced a decline in sales. The quarter ahead is not looking all that
bright. In fact the September quarter is expected to bring a steep decline in sales, profits,
employment growth and capital investment.

NEAL WOOLRICH: The combination of a slowing economy and rising prices adds up to challenging
circumstances for policy makers.

Today the Fair Pay Commission will hand down its latest decision on the minimum wage.

Unions are calling for a $26 a week rise to help meet the rising cost of living.

But part of the Fair Pay Commission's charter is to promote economic prosperity so today's decision
can't ignore the cost pressures facing business.

And the Reserve Bank continues to grapple with inflation while at the same time trying to avoid a
sharp economic down-turn.

The National Australia bank's Jeff Oughton says the Reserve Bank is likely to look past high
inflation numbers in the near term and keep interest rates on hold for the rest of the year.

JEFF OUGHTON: In the medium term, we see this marked slow down in economic activity being sustained
and seeing core inflation heading back towards the, into the Reserve Bank's target range so that
should provide scope next year for the Reserve Bank to start to cut cash rates significantly.

EMMA ALBERICI: Jeff Oughton, the National Australia Bank's Head of Economics for Australia ending
that report from Neal Woolrich.

Ferguson facing more protests

EMMA ALBERICI: Angry locals have spent the night protesting outside the new home of one of
Queensland's most notorious paedophiles, Dennis Ferguson.

They say they're determined to run him out of a suburb south of Brisbane - if they're successful it
will be the fifth time locals have driven Ferguson out of a community.

But lawyers say the vigilantes are defeating their own purpose.

The sex offender was allowed to walk free last week when a judge ruled he couldn't get a fair trial
because of his notoriety.

The Government is appealing against that decision - but lawyers say if the frenzy surrounding
Ferguson continues - the Court of Appeal will have to release him for the very same reason.

Nicole Butler reports from Brisbane.

NICOLE BUTLER: Last night's heavy rain didn't deter angry locals from protesting outside the new
home of convicted paedophile Dennis Ferguson.

About 60 people spent hours outside the government-owned acreage south of Brisbane - demanding the
60-year-old leave their community.

Police are guarding the property and they tried to appease protesters - but to no avail.

POLICEMAN: This is one man. Do you know how many people are convicted of sexual offences against
kids in this state?

PROTESTER: Give us their address as well. We will be doing the same thing to them.

PROTESTER 2: They are not living on my road, are they?

(Sounds of yelling and from protesters)

PROTESTER 3: My little brother gets off the bus just there, man.

PROTESTER 4: Take him back to your spare room.

NICOLE BUTLER: Ferguson was run out of the small town of Miles just last week - its the fourth time
he's been driven out of a Queensland community.

The Corrective Services Minister Judy Spence says his new home is the last option the government
has.

JUDY SPENCE: If he is hounded out of thise residence, we don't have any other options to offer him.
He will be out there on the streets.

NICOLE BUTLER: Yesterday Ms Spence said it was illegal for her to divulge Ferguson's new address -
but she did provide a packed media conference with specific information about his new location.

JUDY SPENCE: The property is two kilometres from a high school. It is 2.2 kilometres from a primary
school. 3.1 kilometres from a riding school. 3.3 kilometres from a child care centre.

NICOLE BUTLER: Ms Spence also told reporters Ferguson;s new neighbours had been invited to a public
meeting at Kimberley College.

Within hours journalists, camera crews and photographers had tracked down the paedophile.

Civilian Libertarians are outraged that the minister helped them to do it.

President of the Australian Council for Civil Liberties Terry O'Gorman say Ms Spence's behaviour
verged on breaking the law.

TERRY O'GORMAN: Oh, she came very close to it. I must say the Corrective Services Minister's stance
on this has really been quite curious. There is absolutely no need, whether she is breaking the law
or not, to reveal the address of Ferguson.

You don't need to be Einstein to realise that history has shown that as soon as Ferguson's address
is revealed, then the vigilantes start and he is driven out of town.

NICOLE BUTLER: High profile QC Peter Faris was even more critical of Minister Spence's.

PETER FARIS: I think in the circumstances of this case where there is a lot of community action and
reaction and a lot of media response, I think its just plain stupid. I think they need to cool this
down. The Court of Appeal hearing is going to be in a few weeks. The best thing would just simply
be to send him interstate. Just let this all calm down.

NICOLE BUTLER: Ferguson was released from jail last week partly because a judge ruled his notoriety
prevented a fair trial.

The Queensland government has appealed against that decision - in the hope that the 60-year-old
will still have to stand trial on child molestation charges.

Mr Faris says if the frenzy surrounding Ferguson doesn't stop, protesters and the media will defeat
their own purpose.

PETER FARIS: I think what has happened with the media and with the community protests mean that the
chances of the prosecution succeeding on their appeal, have been greatly reduced and the more
protests there are between now and the appeal, the less likely, will be the prospect of them
winning the appeal. In short that means the conduct of the Queensland people is almost guaranteeing
this fellow will not stand trial.

NICOLE BUTLER: A short time ago, Corrective Services Minister Judy Spence denied that she helped
lead the latest charge by providing details about Ferguson's new location.

JUDY SPENCE: I don't accept it. I mean by the time you know, we had that media conference
yesterday, the media already knew his address. I did not put that information out there in the
public domain. Before that press conference, the media were walking up the yard to that house.

NICOLE BUTLER: Ms Spence says she doesn't know how the information got into the public domain.

EMMA ALBERICI: Nicole Butler.

Kabul attack prompts more security concerns

EMMA ALBERICI: It was the deadliest attack in Kabul since the fall of the Taliban in 2001.

Forty-one people were killed and 139 others were wounded, when a suicide bomber rammed an
explosives-laden car into the Indian embassy in the Afghan capital.

It's put more pressure on the Afghan government which is already dealing with public anger over
claims that two wedding parties have been attacked in separate Coalition military strikes against
Taliban militants.

Adding to its strained relationship with the west, the latest incidents have come at time when the
Afghan government has rushed through anti-corruption legislation which aid groups say is hindering
meaningful reconstruction of the country.

Barney Porter reports.

BARNEY PORTER: The explosion in Kabul destroyed two embassy vehicles, blew the front gates off, all
but destroyed its walls and badly damaged buildings inside the compound.

As well, windows hundreds of metres away were shattered.

WITNESS (translated): We heard an explosion. The dust covered us and then we saw dead bodies
everywhere.

WITNESS 2 (translated): I can't get to the site to see what happened. My son is there. What can I
do?

WITNESS 3 (translated): The Indian Embassy was the exact target. The bomber drove a Toyota Corolla
right into it. He was inside when it detonated.

BARNEY PORTER: The finger is being pointed at India's rival Pakistan - the main backer of the
Taliban when it ruled Afghanistan from 1996 to 2001 - but Islamabad denies the Afghan accusations,
and has strongly condemned the attack.

The UN Security Council has also condemned the attack, and expressed concern about the threats to
security from the Taliban, al-Qaeda, illegal armed groups, criminals and drugs traffickers.

Nearly 700 Afghan civilians were killed in the first six months of this year - most of them by
Taliban militants but 255 of them were killed by Afghan government and international troops.

In one of the latest incidents, a government official in a remote region on the border with
Pakistan says as many as 27 people were killed in a Coalition air strike, as they were walking to a
wedding.

Lal Wazir says men, women and children were among the dead, and up to 11 others were wounded.

LAL WAZIR (translated): It was 6.30 in the morning and the wedding party was on their way to the
groom's house in another village he says. They stopped in a narrow location for rest. The plane
came and bombed the area. There were between 80 to 90 people altogether. We've carried six of the
injured to this hospital, and more might be coming.

BARNEY PORTER: The US-led coalition denies any civilians were hit, saying instead several militants
were killed.

Earlier, President Hamid Karzai had ordered an investigation into allegations that missiles from US
helicopters killed at least 15 civilians in another part of the country's east. Again, the Defence
Ministry says 20 militants were either killed or wounded.

Civilian casualties have caused friction between the Afghan government and NATO troops in the past,
and has weakened the standing of the Western-backed President in the eyes of the population.

But such disputed incidents are not the only cause of friction.

In Paris last month, international donors pledged to provide more than $20-billion dollars in aid
but they also wanted greater efficiency and accountability from the Afghan government.

The UN's special envoy to Afghanistan is Kai Eide.

KAI EIDE: The aid provided by the international community is far from as effective as we wanted to
be so what we had put in place, mechanisms that can trace the money from the donor to the project
and to see with that, as little as possible is spent in the donor country. That as much as possible
is being used to build Afghan capacity.

Also with regard to ensuring that we combat corruption as much as possible.

BARNEY PORTER: The Afghan Government has just passed an anti-corruption law. A senior Cabinet
member, the Education Minister, Haneef Atmar, has told the BBC the issue is high on the
government's agenda.

HANEEF ATMAR: We are more concerned about a, service delivery and the performance of government
officials trying to take bribes from people and obviously this is something of grave concern to all
of us.

BARNEY PORTER: Paul Fishtein heads the Afghanistan Research and Evaluation Unit, a think tank based
in Kabul.

He says any improvement will be incremental.

PAUL FISHTEIN: There needs to be some you know, obviously, capacity building. There has to be
procedures developed but I think even more than that, there needs to be, at least the way we
perceive things, a real commitment from the highest levels of the Government, that there is a real
commitment to combat corruption and some real specific actions in the area of appointments, removal
of certain officials. I think these things would send a very strong message to the population as
well as to the international community.

EMMA ALBERICI: Paul Fishtein, the head of the Afghanistan Research and Evaluation Unit ending that
report by Barney Porter.

Anglican split closer after vote on female bishops

EMMA ALBERICI: An historic day for the Church of England after the General Synod voted to allow the
ordination of women bishops in the UK.

The vote came after six hours of debate with one bishop reduced to tears.

But the move could trigger a damaging split after several hundred traditionalists threatened to
withdraw from the Church.

Stephanie Kennedy reports from London.

STEPHANIE KENNEDY: Both sides of the debate base their arguments directly on the bible.

Opponents of women's ordination as bishops say Jesus deliberately chose men to lead the church when
he selected the 12 apostles and they point out that an unbroken chain of male bishops has led the
Church since then.

But others argue that God regarded all human beings as equal.

During the debate, there were 72 speakers, many delivered impassioned pleas.

In the final hours the traditionalists offered a compromise deal - male bishops would administer in
dioceses that wouldn't accept women bishops

But the Archbishop of Canterbury, Dr Rowan Williams warned that would risk turning women into
second class bishops.

ROWAN WILLIAMS: I would want to say very strongly that I am deeply unhappy with any scheme or any
solution to this which ends up as it were structurally humiliating women who might be nominated to
the episcopate - which puts them in the position of, as it were, haggling about the limits of their
jurisdiction and their authority.

STEPHANIE KENNEDY: Christine Allsopp told the Synod that women wouldn't accept becoming Bishops at
any cost.

CHRISTINE ALLSOPP: We have a great danger here. If we put in place mandatory transfer, it could be
a bridge too far. We could find that we have legislation in place and we could find many senior
women clergy with the gifts to offer the church, who feel unable to accept a call to be a bishop on
that basis.

STEPHANIE KENNEDY: Gerry O'Brien is a lay member of the General Synod - a Conservative he brought
up the whole issue of the wider problem of disunity in the Anglican Church.

GERRY O'BRIEN: We can force people out of the Church of England but I think the experience in
America says you can't force people out of the Anglican communion because there are a lot of
Archbishops elsewhere in the world who will be more than ready to provide the support.

You can hiss if you like but it has happened in America, for goodness sake. I don't want to see it
happening here for they will provide the support which we decline to support.

STEPHANIE KENNEDY: At the end of the day, the traditionalists lost the argument and the Synod voted
to allow the ordination of women bishops - there were emotional scenes after the deliberations.

Some 1,300 clergy had threatened to leave the Church if there weren't any safeguards and the Synod
did approve a Code of Practice aimed at reassuring opponents - just what that means is yet to be
clarified.

Even so that may not be enough to stop a damaging split in the Church of England.

In London, this is Stephanie Kennedy reporting for The World Today.

Locals back UK bishop ruling

EMMA ALBERICI: The historic vote by the Church of England's General Synod in the UK has been
welcomed by Anglicans in Australia where women are already being appointed bishops.

Dr Muriel Porter is a leading commentator on the Anglican Church and a member of the church's
Australian General Synod and standing committee.

She told Paula Kruger that the decision comes at a challenging time for Anglicans and that she is
delighted about the ruling.

MURIEL PORTER: I am absolutely thrilled. They have agreed to women bishops in the Church of England
with minimal concession to those who are opposed to it. That is the way we have gone in Australia.

We already have now two women bishops who at this moment, are in the UK ready to attend their first
labs (phonetic) meetings of bishop so if Australia can do it, then there is no reason why the
Church of England shouldn't.

They are really playing catch-up. They are a long way behind the rest of us.

PAULA KRUGER: But are you concerned about the consequences of not having those concessions in there
for the conservatives within the church?

MURIEL PORTER: Oh, not remotely. There has been a game of bluff and counter-bluff for many years.
We were held over a barrel here in Australia with threats that if we went ahead, first of all with
women priests, it would split the church. We have had women priests here since 1992. There hasn't
been a split.

We were also then bluffed that if we had women bishops, it would split the church. We now have two
women bishops and there has been no split, in fact, all the bishops, including those opposed,
agreed to the process by which we have now introduced women bishops.

PAULA KRUGER: Now within Australia, the green light for women becoming bishops was pretty much only
given late last year and then it was just in April in Western Australia where the first woman
bishop was appointed. Are you surprised that within that time-frame, there has been that change in
attitude towards women bishops?

MURIEL PORTER: No, no, no because we have been discussing women bishops in Australia since well,
really the mid-1990s. We had two attempts to go in one particular legislative route that we had
strong majority support for but because of our very restrictive national constitution, didn't quite
have the very high majorities that were needed in the General Synod.

Then we had the clarification by the churches highest court that the constitution, in fact, already
allowed women bishops.

They don't have to be appointed in those places that don't want them and places like Melbourne and
Perth now have women bishops and I hope we will see a few more in Australia but no, there has not
been a split.

PAULA KRUGER: Is it a challenging time within the Anglican Church at the moment? You mentioned that
there is no split but just last week there was a split of sorts over gay clergy.

MURIEL PORTER: Yes, but it is not over women and those who have argued the issue in the last week
or so through the Gavcon conference have repeatedly said, oh this isn't over women but it is a very
hard time in the Anglican Church with a minority group who are very opposed to gay people pushing a
very hard line and my heart goes out to those gay people who feel so badly discriminated against at
the moment.

EMMA ALBERICI: Dr Muriel Porter a respected Anglican Church commentator. She was speaking there to
Paula Kruger.

Cardinal Pell admits mistake in handling of abuse allegations

EMMA ALBERICI: The Archbishop of Sydney has conceded that a letter he wrote to a man who said he'd
been sexually abused by a Catholic Priest was badly worded and a mistake, but Cardinal George Pell
has defended his overall handling of the case.

Cardinal Pell, the country's highest-ranking Catholic, was responding to a report on ABC's Lateline
programe which raised the issue of whether he had knowingly misled the sexual abuse victim.

The Archbishop says while he disagreed on one point with an internal investigation into the man's
allegations, the church did take action and the priest was stood down.

Barbara Miller reports:

BARBARA MILLER: Cardinal George Pell is busy preparing for the arrival next week of the Pope in
Sydney for World Youth Day.

But today he's had to take time out to defend his handling of a case of alleged sexual abuse dating
back to 1982.

That's when Anthony Jones, who was in his late 20s at the time, says he was abused by a Sydney
priest, Father Terrence Goodall while in a swimming pool.

Mr Jones spoke to the ABC's Lateline programe.

ANTHONY JONES: The water wasn't that deep so I crouched down so that the water was up to my
shoulders and then the next moment, hands come around from behind me and a hand goes down into the
speedos that I had been loaned by Father Goodall and he began to fondle my penis.

BARBARA MILLER: Anthony Jones says he managed to get away, but afterwards in the presbytery Father
Goodall pushed him down on the bed and rubbed against him inappropriately.

Twenty years later Anthony Jones reported the matter to the church.

The church investigated, and in 2003 Cardinal Pell wrote to Anthony Jones saying a report by the
investigator Howard Murray had recommended that his allegations of inappropriate behaviour be found
to be substantiated - but.

(Extract from letter written by Cardinal Pell)

VOICEOVER: "As no other complaint of attempted sexual assault has been received against Father
Goodall and he categorically denies the accusation, Mr Murray was of the opinion that the complaint
of attempted aggravated sexual assault can not be considered to have been substantiated".

BARBARA MILLER: However on the same day, Cardinal Pell wrote to another man who said he'd been
abused by the same priest as a young boy.

In that letter the Cardinal said the complaints of indecent assault by Father Goodall of the boy
had been found to be substantiated.

Anthony Jones says that was a misrepresentation.

ANTHONY JONES: His signatures are on the letters so he had to know. Cardinal Pell misrepresented
the truth.

BARBARA MILLER: Today Cardinal Pell has admitted his letter to Anthony Jones was badly worded but
he says his mistake was based on the fact that he understood aggravated sexual assault to be
synonymous with rape.

Cardinal Pell says he did not agree with the internal investigator that that claim had been
substantiated:

GEORGE PELL: I accepted Howard Murray's two basic recommendations, he was the assessor I appointed,
presented in January 2003.

A) That Father Goodall be assessed for suitability to continue acting as a priest. This was done
and he was then stood down from priestly activity.

B) That the allegations of both complainants had been sustained and that they be offered remedial
assistance. However I differed from Murray because I did not believe there was sufficient evidence
of rape where that was alleged.

BARBARA MILLER: In an interview for the AM programe, Tony Eastley pressed Cardinal Pell on the
issue.

TONY EASTLEY: Bishop Pell, how did the Archbishop, how did you come to write to Anthony Jones
dismissing his allegations on the grounds that they were the only ones against Father Goodall when
you knew of another matter and wrote confirming that assault on the same day?

GEORGE PELL: Yes, that was poorly put. I was attempting to inform him that there was no other
allegation of rape and that incidents were run together. That was done badly.

TONY EASTLEY: You said that soon after you had made this mistake in your initial letter to Mr Jones
that in a subsequent letter, you expressed sorrow at what Mr Jones had suffered. When was that
letter sent to him? Was that in the same year?

GEORGE PELL: Yes, that was I think was a couple of months later but I didn't realise that I had
made a mistake at that stage because I thought that phrases like aggravated assault, would apply
only to rape and that was the distinction that I was trying to make. It was not useful but I didn't
realise the mistake at that stage.

BARBARA MILLER: In a controversial and complex legal case, Father Terence Goodall was later
convicted of the indecent assault of Anthony Jones under laws from the time of the incident in
1982, when homosexual sex was still illegal.

Cardinal Pell says he now considers the issue closed but the AM programme asked him whether he was
aware of any similar mistakes in other cases.

GEORGE PELL: In this case plenty was done. There were mistakes made in the letter but otherwise the
procedures were good.

If there are allegations of mismanagement or inactivity, we simply invite the victims of the
complainants to go to the police or to the church.

EMMA ALBERICI: The Archbishop of Sydney Cardinal George Pell. That report by Barbara Miller and you
can hear an extended interview with Cardinal Pell on tomorrow's AM program.

Mercenary gets 34 years for coup plot

EMMA ALBERICI: It sounds like the plot of a spy thriller - a former soldier in the British Army is
sentenced to jail for plotting to overthrow the government of a tiny oil-rich African nation.

But yesterday a court in Equatorial Guinea sentenced the mercenary Simon Mann to 34 years in jail
for his part in the attempted coup.

During the trial last month, Simon Mann admitted his guilt in the conspiracy but insisted he wasn't
the ringleader.

Among others he accused the son of former British Prime Minister Margaret Thatcher of being behind
the plot.

Jennifer Macey has our report.

JUDGE: We must condemn and will condemn Simon Francis Mann ...

JENNIFER MACEY: 56-year-old British mercenary Simon Mann has been sentenced to a total of 34 years,
four months and two days, for plotting to kill the President, overthrow the government and for
declaring war on the Equatorial Guinea.

He's also been banned from travelling to the country for 20 years after his sentence ends.

Simon Mann told reporters in the court he's not sure if he can appeal the sentence.

SIMON MANN: I've no idea. I don't know how it works here. Maybe you can appeal I don't know.

JENNIFER MACEY: Simon Mann was arrested by Zimbabwe police at Harare airport four years ago along
with 64 other alleged mercenaries.

He was sentenced to jail in Zimbabwe for trying to illegally buy weapons for the attempted coup
plot. Now it's Equatorial Guinea's turn to put him in prison.

JENNIFER MACEY: Last month, Simon Mann admitted in court to having a role in the plot but he
insists he was only the manager not the architect.

SIMON MANN: We were expecting a great deal of help.

JENNIFER MACEY: Simon Mann has accused the London based tycoon Ely Calil of being the boss and he's
also pointed the finger at Mark Thatcher, the son of the former British Prime Minister Margaret
Thatcher.

In 2004, Mark Thatcher was arrested in South Africa after allegedly trying to buy a helicopter for
the coup operation.

He denies any involvement saying he thought he was funding a flying ambulance service.

But he received a suspended sentence and a fine.

This is what he said at the time.

MARK THATCHER: There is no price too high for me to pay to be reunited with my family.

JENNIFER MACEY: During the trial, Simon Mann also told the court that Spain and South Africa had
both given the green light for the coup attempt.

Equatorial Guinea is a former Spanish colony and has been ruled by President Teodoro Obiang Nguema
since seizing power in a coup in 1979.

His government has been accused of widespread human rights abuses.

Fabian Nguema, the defence lawyer for six men tried alongside Simon Mann says the trial was neither
fair not transparent.

FABIAN NGUEMA (translated): It might have been a great PR campaign for the President but in the end
it is the people that will suffer at the hands of the state.

JENNIFER MACEY: Yet Simon Mann's defence team is still hoping that the President will offer him a
pardon or allow him to serve part of his sentence in a British jail.

Former mercenary Roy Kaulback is these days a political and military risk analyst for his company,
Pathfinder.

He told the BBC that there are many unsavoury types who take up the profession.

But he says unlike other legitimate mercenaries who have operating in Africa, Simon Mann has
received a harsh sentence.

ROY KAULBACK: He'd previously operated in Africa. He was quite a major player but his role was to
lead the operation on the ground. Simon Mann didn't realise that there was more to setting up an
operation than the little that he did and by god I wouldn't like to be in his position.

EMMA ALBERICI: Former mercenary Roy Kaulback ending that report by Jennifer Macey.

Roll on Beijing

EMMA ALBERICI: Wheelchair basketball is a breathtaking sport, which the competitors describe as
brutal and gruelling.

Metal sparks literally fly as wheels clash in the race around the court.

Wheelchair basketball is also one of the most popular sports at the Paralympic Games and the two
Australian teams are well positioned for a gold medal haul at Beijing after both won silver at
Athens in 2004.

The mens and women's teams, the Rollers and the Gliders, were announced today as Karen Barlow
reports.

SPORTS COMMENTATOR: There is a chance, interception, there is the pass.

KAREN BARLOW: There was no on-court pressure today as 24 men and women representing Australia at
Beijing in wheelchair basketball were announced.

But chairs of the Rollers and Gliders team members slipped easily around the court often on a
single rim and more than occasionally bouncing off an opponent's chair.

The Rollers captain, Troy Sachs, is off to his fifth Paralympics.

TROY SACHS: It takes a lot of hand eye co-ordination and yeah it is brutal. You think you usually
use four limbs to take care of your daily activities, well we only use two and you are pushing the
wheelchair, you are bouncing the wheelchair and you are shooting a basketball. So the game goes for
40 minutes fully timed which is about two and a half hours. Some guys push up to 20 kilometres a
game. It just depends on how much you play and there is a lot of team work, a lot of intricacies in
it and it is very tough.

KAREN BARLOW: Sachs describes the competitors like racing cars taking corners.

TROY SACHS: You got 10 guys on the court at one time that have all got spinal cord injuries. They
are males. Most of them have had them because of alcohol or crashing their car so then you put them
in wheelchair, they like speed and they are physical so it is fantastic.

KAREN BARLOW: Wheelchair basketball retains most major rules and scoring of able bodied basketball,
although there is no slam dunking and no double dribbling of the ball.

There are also some metal clashes on court - the wheelchair is considered to be part of the player
and the players are strapped into position.

Gerry Hewson is the coach of the women's team, the Gliders and a former Paralympian.

GERRY HEWSON: Absolutely, sparks flying and occasionally you get wheels crash together and they
will light up. There is a coating on the edge of the rim that actually lights up like a spark and
it stays for about two, three seconds so that kind of splashes around the place every now and then
so that is quite exciting and lots of smashing and banging of chairs and people falling out - it is
great fun.

KAREN BARLOW: Both the Rollers and the Gliders came in second at Athens.

Five time, Paralympian and Gliders captain, Liesl Tesch, says she wants the team to do one better
at Beijing.

LIESL TESCH: We have just come back from two really tough tournaments in America where we came
third and fourth but it gave us a really good look at what we have to do and some great video
footage. As Aussies we are so isolated from the rest of the world so to have those tournaments
prior to the Games was excellent and I think, I know I personally am. I am confident that all the
other girls on the team are doing everything they can to be prepared for that gold medal play-off.

KAREN BARLOW: Silver medal at Athens.

LIESL TESCH: And silver in Sydney so I know the dirty taste of losing that last important game and
I really don't want to participate in that one this time around.

KAREN BARLOW: So who is the team to beat? Is it Canada?

LIESL TESCH: No the USA this time around. They are looking really tough. They have got a huge
college program over there. We've got a couple of our girls playing over there but they are a
really disciplined team and they have got great shooting stats so that is what we have to beat.

KAREN BARLOW: The men's top team is Canada - they will be going for their third straight gold
medal.

The Paralympics will be held from September the 7th through to the 17th and the basketball
competition will be run throughout most of the Games.

EMMA ALBERICI: Karen Barlow there.