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Bank withdraws jobs

Bank withdraws jobs

The World Today - Friday, 14 November , 2008 12:10:00

ELEANOR HALL: The Australian banking and finance sector is haemorrhaging jobs with one of the big
four banks, the ANZ, announcing today that it will axe 1,000 employees over the next few weeks.

The Finance Sector Union says it is a "bleak day" for ANZ staff.

But analysts are warning there'll be more bad news for brokers, market analysts and middle managers
across the banking sector as the financial crisis continues to wreak havoc.

Jane Cowan has our report.

JANE COWAN: ANZ employees woke up to speculation that as many as 3,500 of them would lose their
jobs before Christmas.

That figure would represent ten per cent of the bank's workforce.

The bank's chief economist Saul Eslake knew better than to comment on ABC radio this morning when
questioned by presenter Libby Price.

SAUL ESLAKE: I've heard stories circulating within ANZ but unless I want to be one of those ten per
cent who are losing their jobs, I suspect I'd better leave that to those who are authorised to
comment on behalf of ANZ about that kind of story.

LIBBY PRICE: Fair enough. I mean after all what could they do but sack you so I thank you.


JANE COWAN: The official spokesman for the ANZ is Paul Edwards.

PAUL EDWARDS: I would characterise this as more of a "belt-tightening" exercise.

JANE COWAN: Paul Edwards says categorically there are no plans to cut ten per cent of the

He says it's about trimming the fat that's built up during the good times in the middle management
ranks of the bank's bureaucracy.

PAUL EDWARDS: We announced in September that we were going to have a new structure with fewer
middle management layers in it. Those plans are now starting to crystallise.

JANE COWAN: Paul Edwards says front line customer service positions will be spared but he is not
willing to say exactly how many middle managers will soon be looking for work.

The World Today understands between 500 and 1,000 heads are on the chopping block.

LEANNE SHINGLE: It is a very bleak day for the ANZ workforce.

JANE COWAN: Leanne Shingle is from the Finance Sector Union.

LEANNE SHINGLE: Whenever there is any discussion about cutting costs, it is always the workforce
that takes it in the neck and not the executive and certainly there would be some costs to be
trimmed from executive remuneration rather than the workforce.

JANE COWAN: The ANZ is far from the only bank cutting costs by axing jobs.

Many in the industry see the cuts as inevitable but the FSU's Leanne Shingle doesn't accept that.

LEANNE SHINGLE: The FSU is calling on the employers in our sector to stop taking a short term view.
To think about the long term opportunities that the current economic situation may present for the
Australian banking industry. Opportunities to actually grow our industry rather than cut jobs.

MARTIN FAHY: This news really indicates the fact that the financial services industry is often a
leading indicator of a downturn in the wider economy and that is why we are seeing these
announcements coming through at the moment.

JANE COWAN: Dr Martin Fahy is the CEO of the Financial Services Institute of Australasia which
represents professionals working in the financial services industry.

MARTIN FAHY: This is obviously worrying and very worrying for those involved and it is not a
desirable situation. However when we look out at the downturn there has been certain sectors within
the financial services industry that have been impacted. So areas such as securitisation, areas
such as syndication within the wider sort of global pipeline around investment banking, deal flow,
private equity etc.

So we have seen a downturn in activity. We also have to bear in mind that the industry has been
continually restructuring around the conversance of products and the emergence of new products.

So it is not unexpected to see some restructuring.

JANE COWAN: And the job losses won't be limited to the ranks of middle management.

Brett Le Mesurier is a banking analyst at Wilson HTM.

BRETT LE MESURIER: Well, it is just what typically happens when there is a downturn in the economy.

JANE COWAN: These job losses will come from the ranks of middle management, the ANZ says. What
about people who are working as finance brokers, stock brokers, market analysts? What is the future
like for them?

BRETT LE MESURIER: Well, we see generally in the market declining levels of activity and obviously
that is putting downward pressure on revenue. Costs are, well headcount is basically the variable
cost in that environment so as revenue falls, heads unfortunately will also fall generally in that

JANE COWAN: Is this something that you are noticing already from the inside?

BRETT LE MESURIER: There are some stories that we hear about that generally in the market place,

JANE COWAN: How pronounced is it at this stage?

BRETT LE MESURIER: Oh, it is still minor at this stage and the extent to which it gathers pace will
obviously depend on what happens to the level of the market and the volume of activity but we have
seen activity decline quite significantly in the last month or so.

JANE COWAN: So your forecast is fairly bleak?

BRETT LE MESURIER: Well bleak depends on your expectation but you are probably, by bleak you
probably mean are there going to be fewer employment opportunities in the finance industry and I
would expect that to be the case.

ELEANOR HALL: That is banking analyst Brett Le Mesurier. Jane Cowan with our report.

Rudd jets in for G20

Rudd jets in for G20

The World Today - Friday, 14 November , 2008 12:14:00

ELEANOR HALL: The Prime Minister has just arrived in Washington for the G20 meeting of world
leaders on the global economic crisis that'll be hosted by the US president.

George W. Bush was not pulling any punches about the scale of the problem today, but he did make it
clear that the US is still wary of a solution that involves more government regulation.

GEORGE W. BUSH: We are faced with the prospect of a global meltdown and so we have responded with
bold measures. It is true this crisis includes failures by lenders and borrowers and by financial
firms and by governments and independent regulators but the crisis was not a failure of the free
market system.

History has shown that the greater threat to economic prosperity is not too little government
involvement in the market - it is too much government involvement in the market.

ELEANOR HALL: That is the US president speaking about the G20 meeting on the economic crisis that
he will be hosting in Washington and with Germany officially entering recession overnight and more
dire warnings from international bodies about the breadth and depth of the downturn, it is likely
to be a tense meeting.

A short time ago, I spoke to Chicago-based global economist, David Hale, who provides economic
advice to government and corporate clients around the world, including the Commonwealth Bank here
in Australia.

David Hale, George W. Bush is hosting this G20 summit on the weekend and he is cautioning that more
government regulation is not the solution to the global crisis. What do you expect this meeting of
world leaders to achieve?

DAVID HALE: Well I think it will be a far reaching discussion of many issues without very many firm
conclusions. There is a broad consensus on a few issues. There is a broad consensus that banks
probably should have more capital and less leverage in the future.

There is also a great concern about the quality of the credit rating agencies, their ability to
provide accurate information.

There will also be a discussion about macroeconomic policy. What can countries do to fight the
recession now engulfing the United States, Western Europe and Japan and we've had from several G20
countries some important developments in the last couple of weeks.

Korea and Malaysia have announced tax cuts programs. China, a few days ago, announced a huge
$600-billion infrastructure spending program worth 14 per cent of GDP over two years and I think
we'll see more signs of the G20 countries, the non-industrial countries, moving in this direction.

ELEANOR HALL: Overnight of course, Germany officially went into recession. Is there anything at
this stage that world leaders can do to stave off a long and deep recession across the developed

DAVID HALE: I think we are now locked in a recession because of both the impact of high inflation
on consumer spending earlier this year. High oil prices, high food prices and now since August and
September, a very, very severe credit crunch and unfortunately we cannot reverse this credit crunch
quickly and easily through government action.

So America, Europe and Japan are locked into recession for at least six or nine months.

ELEANOR HALL: The IMF and the OECD are predicting the recession conditions will be across all
developed economies at once for the first time since World War Two. How deep do you think this
recession will be and will it really be as short as six to nine months?

DAVID HALE: Well, America has had recessions in the modern period that have ranged from 0.5 per
cent of GDP which is what we had seven years ago, up to three percent of GDP, what we had back in
the early 1980s when Paul Volcker raised interest rates to 20 per cent.

My guess is right now the US economy could have a contraction of two per cent of GDP but in the
near term, all the risks are on the down side.

We are, right now, having a free fall in consumer spending. We still have weakness in the housing
market. The fact is, in this kind of environment, where we have a high level of distrust, a lack of
confidence, rapidly increasing credit spreads, monetary policies not as effective as it is in
normal times and that's why this situation has the danger of producing a very pronounced and very
severe downturn.

ELEANOR HALL: Well, it was the Second World War which ended the Great Depression. Will it take
something as dramatic this time?

DAVID HALE: No, because it doesn't look like a Great Depression. American unemployment will
probably peak next year at eight and a half per cent. In 1933 American unemployment was 25 per cent
and if it were to go over 10 per cent or 12 per cent, I can assure you there would be very dramatic
actions by governments to try and hold unemployment in check.

You would see more and more tax cuts. More and more public spending. Infrastructure - things like

Governments would simply not tolerate unemployment going back to where it was in the 1930s. That
was a different time in human history. The government chaired GDP in those days with two or three
per cent. Now most industrial countries it is 30 per cent but we are not going to have a repeat of
what happened 75 and 80 years ago.

ELEANOR HALL: You are talking about a lot of stimulus packages being put through by governments. In
the United States there is a call for a $1-trillion stimulus package. That sounds like a huge
number. Do you support a package of that size?

DAVID HALE: Well, I think that is an unwieldy number for the American economy because that would be
something approaching seven or eight per cent of GDP. Historically our stimulus packages might be
one or two per cent of GDP.

The $200-billion number Mr Obama is talking about would be about one and a half per cent of GDP.

We also have the $700-billion Paulson program to try and revive the banking system and because of
the decline in government tax receipts, there will be a core federal deficit next year, if nothing
else happens, of $600-billion.

So when you add up the core deficit, the Obama stimulus, the Paulson rescue plan, you are already
at $1.5-trillion.

ELEANOR HALL: Is this sustainable?

DAVID HALE: Well it is sustainable in the short term because when you have no private credit
demands, the banks have nowhere else to go so they are basically are willing to buy government

We also have countries in Asia that want to restrain their exchange rates against the American
dollar like China so I think the bottom line is, we will find some way to finance it.

ELEANOR HALL: Now what do you make of yesterday's statement by the US Treasury Secretary that the
US financial bailout plan will no longer involve buying up the toxic debt but will instead see
government taking ownership stakes in the banks. That is an admission that the initial approach was
wrong, isn't it?

DAVID HALE: Buying the bad assets would have helped as well because it would have given banks a
much better market price for these troubled assets but injecting capital will help as well.

ELEANOR HALL: Now you mentioned that China had a big stimulus package this week. What about China
and India - these sorts of economies? Can they help lift the rest of the world out of this economic
decline and did the size of China's stimulus package surprise you?

DAVID HALE: I think the size of China's stimulus package surprised everybody. During the East Asian
financial crisis, China also had infrastructure stimulus package to hope cope with the downturn of
the region but it was one and half per cent of GDP.

This number on Sunday was 14 per cent of GDP. It was truly very, very dramatic but again it
underlines the fact that China has a very strong commitment in its government to keeping its growth
rate at least eight per cent.

China and India can certainly play a role in helping to offset the weakness in America and Europe
but their economies are not large compared to the other economies.

China's GDP is a bit over $3-trillion. India is about $1-trillion. That is $4-trillion. The US
economy is $14-trillion. The European economy is $15-trillion. The Japanese economy is $4-trillion.

So when you add up India and China you are still talking about less than 15 per cent of those other
big industrial countries.

It will play a role. It will help. It will be a positive on the margin but it cannot fully offset
the weakness for what is happening in North America, Europe and Japan.

China playing a decisive dramatic global role is still probably 15 years in the future.

ELEANOR HALL: Now what is your prediction for the Australian economy? Will it avoid recession?

DAVID HALE: Australia has been hit here by a big decline in commodity prices, a deterioration in
the terms of trade which has further to go because we haven't yet had a big decline in your iron
ore and coal prices. That still lies ahead.

On the other hand, you don't have any of the financial excesses we have had here in America. Your
banking system is quite sound. So my guess is Australia will slow down but because your home
economy is relatively sound, you should be able to avoid a full scale recession.

ELEANOR HALL: And how bad will things get for developing nations?

DAVID HALE: Well, the answer is they will slow down because of weaker growth in world trade but
they entered this downturn with lots of momentum and because East Asia is sitting on $4.3-trillion
of foreign exchange reserves, East Asia has tremendous potential to stimulate domestic consumption
to compensate for export weakness.

So I think with this stimulus, what we will have in South-East Asia will be a growth rate going
from six and seven per cent down to maybe 3.5 per cent.

Asia's situation today is far, far better than it was ten years ago. It is not immune to what
happens in the old industrial countries but it certainly has today, far more potential for
autonomous action because of these huge foreign exchange reserves.

ELEANOR HALL: David Hale, thanks very much for speaking to us.

DAVID HALE: OK. Thank you.

ELEANOR HALL: That is Chicago-based global economist , David Hale.

Markets merry as they go round again

Markets merry as they go round again

The World Today - Friday, 14 November , 2008 12:18:00

ELEANOR HALL: The Australian share market rebounded strongly today as a rally on Wall Street
offered some rare optimism to local investors.

But today's lift comes after yesterday's 5.5 percentage point plunge which took Australian shares
to their lowest level in four years.

To discuss the latest market moves, I'm joined now in the studio by business editor Peter Ryan.

So Peter, is today's rise just a blip, another sign of volatility?

PETER RYAN: It has been said recently that you wouldn't want to be setting your biorhythms on the
share market at the moment. You might end up in some type of psychological trouble but we've seen a
lot of evidence from Wall Street earlier this morning.

It was looking quite dire when I came in about 6 o'clock. Particularly on the outlook for jobs
which appear to be getting worse and also some pretty grim news for technology companies but quite
amazingly in the final hour of trade investors decided to snap up bargains. Particularly with the
lower price of crude oil and we also have energy shares at their cheapest on record and there were
major gains for the big oil companies Exxon and Chevron.

So despite the gloom that we are accustomed to, the Dow ended up closing 6.7 per cent higher. Quite
extraordinary and almost all of that was in the final 30 minute of trade.

That was reflected here not surprisingly. A short time ago the All-Ordinaries index was up 2.2 per
cent or 83 points at 3,754 and that is grabbing back some of yesterday's $60-billion worth of
losses which took the share market to a four year low.

ELEANOR HALL: And the markets are expecting some more critical economic data from the United States
- is that a factor?

PETER RYAN: Yes, and that is always a factor. Overnight in the United States they were expecting a
very significant retail sales figures which some analysts are expecting to be the worst ever on
record in the United States and of course we know that the US consumer is dramatically trimming
back their household budgets.

Anecdotal evidence of a lot of people in shopping malls in the United States but not so many people
are spending money and particularly that was underlined by pictures I saw on television last night
of empty stores in the United States, empty aisles and that means when the US consumer stops
spending, the rest of the world follows suit.

ELEANOR HALL: And there's some worrying local data on the rural economy. What can you tell us about

PETER RYAN: Yes, this is information hot off the press from the Australian Bureau of Statistics and
in many ways it is not surprising because we have had continuing unfavourable conditions and also
the water crisis in rural Australia keeping agricultural production down but we are seeing rice
plantings for example, dropping to their lowest level since 1927.


PETER RYAN: You have to go back to 1927 to see rice plantings at their lowest level but more
interestingly we are also seeing sheep and lamb numbers at 79-million head.

This is also at the lowest since the 1920s but on the other hand we are seeing plantings for
sorghum coming in a record high of 100-million hectares or four-million tonnes but significantly
just on livestock, milk cattle numbers decreased by six per cent and pig numbers for example down
16 per cent so to use that old Australian phrase, they were riding on the sheep's back is not
necessarily true at the moment and despite some good news we have been seeing on the weather front
on some isolated parts of Australia, life remains very tough on the land.

ELEANOR HALL: Peter Ryan, our business editor. Thank you.

Plea from lawyers for more legal aid funding

Plea from lawyers for more legal aid funding

The World Today - Friday, 14 November , 2008 12:22:00

ELEANOR HALL: Australian legal aid lawyers say there's been a big increase in the last few months
in the number of home-buyers asking for help to keep their homes.

But the Commonwealth Government doesn't give legal aid to people involved in civil actions so many
of them are turned away.

Now the Law Council of Australia is calling on the Federal Government to increase legal aid funding
so that community legal centres can provide more help.

Ashley Hall reports.

ASHLEY HALL: The latest figures show that 95 per cent of people who ask for legal aid in Victoria
get it.

But what happens to the five per cent of people who are turned away?

And what about the people who don't apply because they're told they'd be ineligible? It seems many
of them decide to represent themselves in court.

Shane Draper has been the self-represented litigants' coordinator at the Supreme Court of Victoria
for almost a year.

In that time, he's had inquiries from more than 1,200 people considering representing themselves in

SHANE DRAPER: Litigants in my experience in the courts generally over 15 years come in all
different shapes and sizes ranging from mum and dads with basic general procedural enquiries to
other people and as it has been widely reported, some mentally ill people or people have been
involved in the court system for many years through all of the jurisdictions in the courts,
magistrates county in Victoria, the Supreme Court, might be tribunals as well, might be the federal

ASHLEY HALL: It's Shane Draper's job to guide them in the right direction - make sure they know the
procedures to follow, and the forms to fill out.

The one thing he can't do is offer legal advice.

SHANE DRAPER: The court system being adversarial in its nature, was set up where opposing
barristers or solicitors represent parties. Now because ultimately people have a right to represent
themself, many choose to do that but it's a difficult role and particularly if you are dealing with
large sums of money or big criminal offences. It is a big role and big risks involved basically.
Big cost repercussions if you go on to lose.

ASHLEY HALL: A big part of the job involves referring litigants to nearby legal services.

SHANE DRAPER: I say to them look I am not a barrister or a solicitor so I'm not necessarily
advocating for them but in my experience, a lot of times by person have a barrister or solicitor
acting for them and that barrister or solicitor is able to deal with their opposition, things have
a habit of working out in a better way for the client than what otherwise might be the case.

ASHLEY HALL: But not everyone has a choice of whether they represent themselves.

Some people find the fight they're waging isn't eligible for legal aid funding or there's no
resources available at a nearby community legal centre.

So about 2,000 people a year wind up at a centre like PILCH, the Public Interest Law Clearing
House, in Melbourne and a rising number of them are asking for help to hold onto their home.

PILCH's executive director is Kristen Hilton.

KRISTEN HILTON: A typical sort of issue I guess might be where someone low income is facing
eviction. Has only been given or has received an eviction notice and has a short amount of time to
vacate their premises. Is at risk of being homeless and has exhausted other forms of legal
representation so can't get legal aid, hasn't been able to access their community legal centre and
unless they can get advice on a pro bono basis so a lawyer acting for free, they are going to find
themselves basically evicted and out on the street.

ASHLEY HALL: PILCH has more than a thousand lawyers on its books, ready to give advice for free.

But the Law Council of Australia says nationwide there's been a big decline in the number of
lawyers prepared to do pro bono work, or to work for legal aid because they earn about half the
commercial rate.

But Kristen Hilton says money is not the main motivator for many lawyers.

KRISTEN HILTON: I certainly get and the lawyers that I work with get a great deal of satisfaction
out of seeing or out of being able to use our professional skills to really make a difference to
people's lives and you know, we see that every single day. That invention or some form of advocacy
has really made a positive change.

Even the process of being listened to, being able to tell your story makes a difference.

ASHLEY HALL: Miss Hilton says it's not practical for the legal system to rely on the generosity of
lawyers to maintain access to justice for all.

She wants the legal system to be simplified and more advice to be made available in the early
stages of a court matter so that the litigant can make a reasonable decision about whether or not
their case will succeed.

ELEANOR HALL: Ashley Hall reporting.

All eyes on online army as it monitors its mentor

All eyes on online army as it monitors its mentor

The World Today - Friday, 14 November , 2008 12:26:00

ELEANOR HALL: When Barack Obama moves into the White House in January, he'll have a weapon that no
other president before him has ever had at his disposal.

It's an online army of more than ten million supporters, donors and volunteers who were marshalled
during his presidential campaign.

The question is how will the new president use this online support base and could it backfire?

Washington correspondent Kim Landers reports.

KIM LANDERS: Barack Obama is expected to revolutionise White House communications.

Just like Franklin Roosevelt did with radio and John F. Kennedy with TV, the new president is
expected to harness the internet.

It could mean regular presidential podcasts or even videos popping up on YouTube.

He's got another powerful tool - an army of political foot soldiers.

The Obama campaign has gathered the emails and mobile phone numbers of 10-million supporters.

Jon Carson was the national field director for the Obama campaign.

JON CARSON: We've run sort of a giant experiment here in volunteer management and we want to take a
look at the lessons learned from that. As President-elect Obama takes office and a legislative
agenda is put together, I think in the same way that these incredible volunteers that we had
carried his message throughout the campaign - talking to their neighbours about why he was the
right candidate to bring the change that we needed - I can see them in a similar way explaining a
health care proposal, explaining whatever issue it is.

KIM LANDERS: President George W. Bush still does a Saturday radio address.

President-elect Barack Obama has already setup a new website to keep supporters engaged in the lead
up to Inauguration Day.

So how will his internet savvy campaign influence the way he communicates when he's sworn in?

Andrew Rasiej is the founder of the Personal Democracy Forum which tracks the use of new
technologies in American politics.

ANDREW RASIEJ: I believe that the Obama administration will revolutionise the way presidents will
speak to the American public in as dramatic a way as the declaration of the world being round was
to the shipping industry.

KIM LANDERS: Do you think a President Obama will be popping up on YouTube or sending out his
message via podcasts?

ANDREW RASIEJ: Absolutely. I think that the internet offers an economy of abundance where there is
no limits on time and space so the president doesn't just need to do press conferences and radio
addresses as was done in the 20th century. He can now offer his views on YouTube but he can also
listen via YouTube and citizens can post questions or concerns.

They can organise themselves and vote which questions and concerns are the most important to them
and the president can direct his answers directly to the most important pressing issues as the
internet bubbles them up.

KIM LANDERS: He says the Obama campaign's database of supporters is one of the largest in the

ANDREW RASIEJ: And as president he's going to be able to reach out to the same group of people and
ask them to support his legislation and in effect making them his own special interest and these
people now who have been empowered and feel empowered through the election process, now are going
to demand a seat at the table next to the lobbyists or over the lobbyists and other special
interests that traditionally have been you know, trying to effect legislation or the decisions
coming out of Washington.

You know the president has always had the ability to talk over the heads of Congress to the
American public and now he can go between their legs too.

KIM LANDERS: Kelly Gallaher was part of Barack Obama's grassroots movement.

She was a team leader in Racine, Wisconsin and she's keen to use technology to help keep in contact
with people who helped during the campaign.

KELLY GALLHER: In the Racine county area here in Wisconsin, we estimated that we had close to 1,000
volunteers so I really think that it's not too much to guess that we can keep several hundred in
contact with each other.

KIM LANDERS: Some analysts say Barack Obama could wind up disappointing millions of people who
thought they had a stake in his presidency.

But Kelly Gallaher is more optimistic than that.

KELLY GALLHER: Well I don't think as progressives and as liberals that we could be less happy than
we've been in the last eight years.

KIM LANDERS: His emails to supporters used to be simply signed "Barack".

Now that he's about to become president, that could change.

This is Kim Landers in Washington for The World Today.

Launch of world-first carbon capture project

Launch of world-first carbon capture project

The World Today - Friday, 14 November , 2008 12:34:00

ELEANOR HALL: Federal and state politicians have today launched a central Queensland clean coal
project that's intended to be a key part of Australia's strategy for dealing with climate change.

Taxpayers have invested $85-million in the Callide Oxyfuel project which the operators say is the
first carbon capture scheme of its type in the world.

The politicians say the system could reduce emissions from existing power stations by 90 per cent.

But that is still a long way off as Queensland's Mines and Energy Minister, Geoff Wilson, told our
reporter Annie Guest.

GEOFF WILSON: We have just done the first sod turning and the project has been building for the
last four years. We are launching it today with the sod turning and over the next four years the
demonstration plant will be constructed and operating to show that we can actually retrofit
existing power stations so that you burn coal in a far cleaner way so we have got cleaner, greener
energy for Queensland and Australia.

ANNIE GUEST: Elsewhere such as in Victoria and overseas, there are projects to store carbon. Where
does this central Queensland operation sit in terms of carbon capture projects?

GEOFF WILSON: Well, it is a world first carbon capture project because of the particular type of
technology that is being used.

It is technology that is being trialled that will work with existing coal-fired power station

ANNIE GUEST: And Minister, how does this Callide Oxyfuel project work then to capture coal at a
coal-fired power station?

GEOFF WILSON: What it does in traditional coal-fired power stations, the coal is burnt in air in a
big furnace in air and then the carbon is released into the atmosphere and away you go.

What is being done different here is that instead of burning the coal in air, it is being burnt in
pure oxygen so that the amount of carbon emitted from the coal fired process is significantly
reduced, therefore making it easier to capture with ancillary technology the carbon produced and
then to safely store it.

ANNIE GUEST: And Minister, is that on site or will it be transported?

GEOFF WILSON: It's not on site. It's at some distance from the power station and it needs to be
transported and that is well in hand.

ANNIE GUEST: Geoff Wilson, how far with technology like this go towards meeting Australia's
emissions reductions targets?

GEOFF WILSON: It will make a very big dent in the greenhouse gas reductions that we have to achieve
by 2020 and longer term, 2050.

The international energy agency has advised that, globally, clean coal technology will help reduce
greenhouse gas emissions by between 25 and 28 per cent.

ANNIE GUEST: But it has also warned, Minister, that unless there is more investment in carbon
capture and storage, that it might not be a commercial option for more than 20 years. How far are
we away from seeing this technology successfully capturing carbon dioxide from a fully operating
coal-fired plant?

GEOFF WILSON: Well, the demonstration plant is designed to function over the next four to five
years and then within a very short number of years after that, the commercialisation of the
successful technology is expected and it is expected illustrated by the tremendous support we have
from the private sector.

ANNIE GUEST: As this is a joint venture between CSN and three Japanese companies, the Australian
Coal Association, Schlumberger and Xstrata Coal, who owns the technology and can Australian benefit
economically from selling it?

GEOFF WILSON: Well certainly Australia owns the technology and through the participating partners
in the joint venture and the big thing from this is that because it is technology being developed
by Queensland and Australian coals, it then makes it that much more suitable for installation in
power stations around the world that use Queensland and Australian coal.

ANNIE GUEST: This week the oil giant Exxon Mobile which has its own carbon capture and storage
project in the North Sea for the past decade said that policy makers were too ambitious in pinning
their hopes on this yet unproven technology to buffer Australia's coal dependent economy from a low
emission future. What do you say to that?

GEOFF WILSON: There is no silver bullet in tackling climate change. There are many technology
avenues which all must be pursued with the maximum amount of government and private sector support
because we need to win on all technology fronts.

ELEANOR HALL: That is Queensland's Mines and Energy Minister Geoff Wilson speaking to Annie Guest
at the opening of the Callide carbon capture project.

Hillary set to become Obama's secretary

Hillary set to become Obama's secretary

The World Today - Friday, 14 November , 2008 12:30:00

ELEANOR HALL: Well the rumour mill is in overdrive about who'll be part of the Obama
administration, and the latest tip from a US media network is that Hilary Clinton will be Secretary
of State.

Dr Simon Jackman is professor of political science at Stanford University and also a visiting
fellow at the US Studies Centre at Sydney University. He joins us now from Stanford University.

Simon Jackman, NBC is saying that Hilary Clinton will be a key part of the administration. What are
your sources telling you?

SIMON JACKMAN: Well, it's at one point they are the source. They seem to have this one media outlet
NBC. It is the only media organisation in the United States tonight reporting that.

So it's interesting in that so far this transition team has been marked by its discipline.

You've got an anxious media looking for whatever they can get out of this office of the
President-elect and so far they have been getting precious little so this is sourced to people
close to Obama so this may be, we will have to wait and see.

So far the leaks or the rumours that have come out have either been shot down pretty quickly by
other people in the Obama team and so we will see how long this one stays out there. It may give us
a clue as to whether this one has actually got some legs or is credible or not.

ELEANOR HALL: From what you know of the relationship between Hilary Clinton and Barack Obama, how
likely do you think it is that he would appoint her as his Secretary of State?

SIMON JACKMAN: Well, it is so intriguing isn't it? It could be one of these cases where in politics
you keep your friends close and your enemies closer.

What it would do, it brings Hilary Clinton into the heart of the administration and at that point
she's in some extent the political rivalry between Obama and Clinton has put to bed. She either
accepts this appointment and as a team play in one of the most senior Cabinet positions there is in
the American system, well she isn't and if she does and I can imagine she might be really tempted
by this if it is a genuine offer.

It would effectively knock her out of contention for 2012 and in effect delay any pesidential
ambitions she may still have to the seemingly distant date of 2016 by which point Hilary Clinton
will be a spritely 69-year-old by the way.

ELEANOR HALL: Now we have talked before about how difficult this transition period is for Barack
Obama with the scale of the problems facing the United States. What do you make of his choices so
far, particularly in the economic areas?

SIMON JACKMAN: Well, there hasn't been much. I mean to be honest with you, we just haven't had a
lot. This team is in deep think mode. They are going over resumes very, very carefully. Obama has
certainly surrounded himself on the economic front with a very impressive and very large team of

In many respects reaching back to some of the grey beards as they are now that were once part of
the first Clinton administration. That's true also on the foreign policy front but so far it is not
like we have had a lot of you know the Cabinet seats as yet haven't really, we haven't learnt too

The only firm appointment that is out there in the media so far is the chief of staff, Rahm
Emmanuel but we're sort of still waiting to hear about where those big Cabinet posts will go. He
certainly has got a lot of talent around him and a lot of people have indicated their willingness
to serve if asked but again, I think it highlights sort of the speculation that we are seeing here
tonight in the United States with this rumour about Hilary Clinton.

The media and the rest of the world are dying to know but we are not getting a lot of the office of
the President-elect so far.

ELEANOR HALL: Simon Jackman, thanks very much for joining us.


ELEANOR HALL: That is Dr Simon Jackman, professor of political science at Stanford University who
is also a visiting fellow at the US Studies Centre at Sydney University.

Concerns for street photography amid efforts to protect children

Concerns for street photography amid efforts to protect children

The World Today - Friday, 14 November , 2008 12:38:00

ELEANOR HALL: Artists are warning that something as simple as street photography could die out
under the Australia Council's proposed rules for photographing children.

The rules require anyone who takes a picture of a child who is younger than15 to obtain permission
from a parent or guardian and they're intended to protect the children.

But photographers and visual arts groups say the rules would restrict the work of documentary
photographers who take spontaneous pictures in public places.

Brendan Trembath has our report.

BRENDAN TREMBATH: The rules are meant to protect children and artists accept that.

But they worry that the rules will be too restrictive.

Sandy Edwards is a Sydney photographer who's worked with children.

SANDY EDWARDS: In some ways they sound reasonable but in other ways it could be very problematic
for photographers. Especially documentary photographers who are photographing in public situations.

BRENDAN TREMBATH: As well as taking photographs Sandy Edwards has an eye for other's people's work.

She's a curator of one of the many galleries in the eastern Sydney suburb of Paddington.

She suggests that some famous Australian photography might not been possible if the proposed rules

SANDY EDWARDS: Think of photographers such Max Dupain who has been photographing in the public
domain. There are many documentary and photo journalist photographers who work in this way and you
have a group of people and in the middle of that group may be there is a naked child or a
semi-naked child. It is just unreasonable to expect that once the photographer gets back to the
dark room, processes the work or gets back to the computer that that image can actually be OK'd by
somebody who is a stranger in the photograph.

You can't get permission from everybody who is in a photograph of that nature.

BRENDAN TREMBATH: The National Association for the Visual Arts is reviewing the proposed rules with
concern too.

Tamara Winikoff is the organisation's chief executive and she also sees problems for documentary

TAMARA WINIKOFF: They make the point that if the artist is working with anyone under the age of 15
that they would have to declare to the Australia Council that they had the permission of parents or
guardians and while that might seem on the surface of it to be reasonably straight forward, it does
mean that in particular kinds of arts practices like documentary photography, it would place quite
unreasonable restrictions on the artist.

BRENDAN TREMBATH: The Australia Council standards have been proposed after a recent controversy
involving a planned exhibition by the artist Bill Henson.

The Prime Minister Kevin Rudd said he was revolted by Henson's images of children.

Still many other people defended the art.

The Australia Council's chief executive Kathy Keele says it's important that artists and
organisations working with children be responsible and sensitive.

KATHY KEELE: Quite a few of these guidelines already exist and artists should be doing them already
and a lot of artists aren't aware that they should be.

BRENDAN TREMBATH: Kathy Keele acknowledges that documentary photography is a difficult area.

KATHY KEELE: Documentaries are one area that we would probably will spend a little more time
thinking about and working through.

BRENDAN TREMBATH: The Australian Institute of Professional Photographers complains there has not
been enough consultation.

Member Ken Duncan says there are already too many rules for photographers.

KEN DUNCAN: I'm talking about restrictions on beaches, local councils. At three levels - you've got
federal restrictions, you've got state restrictions and you've got local restrictions. I mean if
you actually pull out a camera and try to put it on a tripod to take photographs of Sydney Harbour
for example or the Sydney Opera House they come along and confiscate your gear or say that you need
to have a permit that you pay $550 or something a day. You know, it is just stupidity.

ELEANOR HALL: That is Ken Duncan from the Institute of Professional Photographers ending that
report by Brendan Trembath.

The patient Prince passes a milestone

The patient Prince passes a milestone

The World Today - Friday, 14 November , 2008 12:42:00

ELEANOR HALL: The Prince of Wales celebrates his 60th birthday today.

As we go to air, the Queen is hosting a party for her son at Buckingham Palace and in a rare
reference to his future role, she has hinted that Prince Charles will be a worthy successor but
Prince Charles has also marked his birthday by making some revealing admissions in a documentary to
be aired to coincide with his birthday as Europe correspondent Emma Alberici reports.


EMMA ALBERICI: He's been Prince of Wales longer than most monarchs have held the crown.

PRINCE CHARLES: I'm no longer at risk of being a blinding nuisance. I am a blinding nuisance and
what more can I do but urge you, this country's business leaders, to take the essential action now
to make your businesses more sustainable.

EMMA ALBERICI: Rather than idly waiting to assume his role at the head of British royalty, Prince
Charles has been campaigning for around 20 causes he's passionate about from disadvantaged youth to
architecture and global warming.

PRINCE CHARLES: And I apologise if I put too much strain on you all. I, as you know by now, I hope
that my problem is that I can't resist trying to find a way of doing something about many of the
problems that I come across.

If you want a quieter life, lock me up.

EMMA ALBERICI: For the past year, the BBC has been given rare access to the Prince of Wales to
produce a documentary about his life's work.

It exposed the mechanics of the Prince's Trust which he began in 1976 after hearing a probation
officer talking on the radio about the difficulties faced by young offenders.

And on the occasion of his 60th birthday, a present from his mother - the Queen - a rare
endorsement of his work.

QUEEN ELIZABETH: For Prince Phillip and me there can be no greater pleasure or comfort than to know
that into his care are safely and trusted the guiding principles of public service and duty to

EMMA ALBERICI: Royal watchers like Prince Charles' biographer Penny Junor who has known him for 24
years, read the Queen's words as a nod to his suitability as her successor

PENNY JUNOR: Clearly, he is 60 now. It is the age when most people start picking up their pensions
and he has not yet begun his job but I don't think he is in any great hurry to do it because of
course, the day that he takes over as monarch, it means that his mother's dead and he adores his
mother and that will be a very sad day for him.

But equally, inevitably, you know, he has been training for this job, preparing for it, for 60

EMMA ALBERICI: What started with his 75,000 pound naval severance pay 32 years ago has grown into
the largest multi-cause charitable enterprise in the UK.

The Prince's Trust has helped half a million young people and last year it raised $270-million for

JULIA CLEVERDON: Black spider memos arrive from the Prince of Wales to the people who work for him
in his charities with ideas and views.

EMMA ALBERICI: Dame Julia Cleverdon has spent 16 years running one of the Prince's charities.

She gives an insight into how he works - delivering daily what she calls "black spider memos"
because they're hand written in his inimitable style

JULIA CLEVERDON: One about digging up the roads. What was EDF doing about it? Forgive me mentioning
this but do you think we could find a way of tackling the supermarkets again over the whole issue
of plastic bags, plastic wrapping.

EMMA ALBERICI: When it comes to his work, Prince Charles prefers to be called a mobiliser not a
meddler and he ponders what will happen to the causes he has long championed when he finally
becomes King.

PRINCE CHARLES: Obviously it would be nice if some things were taken on by my sons but I don't
know. It all depends on their interests.

I could have, couldn't I, sat doing very little indeed and I would have been got at just as much by
people who are saying what a useless idiot he is. You know, what contribution is he making so I
would rather at the end of the day, if one has to go through all this, because I was doing things
rather than not doing them if you see what I mean.

ELEANOR HALL: That is the Prince of Wales ending that report from our Europe correspondent, Emma

Jericho Jim hits the airwaves

Jericho Jim hits the airwaves

The World Today - Friday, 14 November , 2008 12:46:00

ELEANOR HALL: An outback Queensland farmer was launched into the public eye this week by the
Treasury Secretary Ken Henry.

The man who was referred to as Jericho Jim offered the Treasury Secretary Ken Henry some advice
about taxes in an outback Queensland pub earlier this year.

And Mr Henry has indicated that barstool advice could factor in an overhaul of the tax system.

Now the tax advisor who is not revealing his name has taken to the airwaves at the ABC in Brisbane
as Nicole Butler reports.

NICOLE BUTLER: The man dubbed "Jericho Jim" by Australia's Head of Treasury remembers meeting a
nice man from the Government a few months back in the pub.

JERICHO JIM: I think I bought him a beer and he bought me one back. I wasn't too sure what I was
going to tell him who I was and he wasn't too sure he was going to tell me who he was.

KEN HENRY: I said I work for Government in Canberra. Perhaps I sounded a bit defensive because he
responded "that's all right mate, somebody has to," and then he added "just so long as you don't
have anything to do with tax".

NICOLE BUTLER: Of course Ken Henry runs the nation's tax system but he didn't let on.

JERICHO JIM: He was a little bit evasive. I think he just there and actually listened.

NICOLE BUTLER: But as Mr Henry hinted at a tax system overhaul in a speech to the Press Club this
week - it was obvious he'd done more than listen.

KEN HENRY: "Do you know", he said, "that something as ordinary as fencing wire can be treated
several different ways for tax purposes? Why was it treated one way under income tax but another
way under GST?" he wanted to know. "Isn't fencing wire just fencing wire?"

JERICHO JIM: Well fencing wire is just fencing wire, right. You know, if someone, if a property
owner goes and builds a new fence, right, it should be 100 per cent tax deduction for him. It
shouldn't be put down as repairs or anything like that. No farmer should have to cheat on the tax
system. It should be just straight black and white.

NICOLE BUTLER: Jim had owned a number of cattle stations and a few years ago he'd had a dispute
with the tax office that ultimately settled in his favour.

The grazier told the Treasury boss the trouble is the system is unnecessarily complex so Ken Henry
took a long hard look at the tax act.

The self-confessed greenie had a lot of time to think about it as he travelled back to Canberra
from outback Queensland - where he had been saving hairy-nosed wombats.

KEN HENRY: It turns out there are more taxes in Australia than there are northern hairy-nosed
wombats. There are approximately 5,700 pages of income tax legislation.

JERICHO JIM: It is too complex. They are turning farmers into cheats.

NICOLE BUTLER: Jim didn't stop with just outlining what's wrong with the system - he also offered
Mr Henry some solutions.

KEN HENRY: With Jim going on to explain his preference for being taxed on the difference between
cash coming in the door and cash going out the door.

He thought this might make a lot of sense and it might make more sense than the complex and
uncertain system that is currently in place.

NICOLE BUTLER: We still don't know his real name and the man dubbed Jericho Jim didn't know the
whole of Australia was looking for him, thanks to his new fame.

But he happily offered more advice when he was interviewed for the first time on ABC radio in
Brisbane this morning

Jim says more government heads should follow Mr Henry's lead.

JERICHO JIM: They need to get out into country Queensland and talk about policy and talk to normal
people everywhere all over Australia.

ELEANOR HALL: Nicole Butler in Brisbane with that report.