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Australian Agenda -

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(generated from captions) Good afternoon, I'm David Speers.

Lock on to the program. The death

of an Australian soldier in

Afghanistan has come as a stark

reminder that despite plans to hand

over control to the Afghan National

Army and steadily draw down our own

forces there, the dangers remain

extreme. Particularly for the

special forces soldiers, who are doing some very important and

dangerous work. There is as yet

unnamed 40-year-old SAS soldier was

there on a specific mission,

intelligence driven we are told, to

take out a Caliban target. He was

operating in the Oruzgan province

and was shot through the chest.

Despite wearing body armour, he was

unable to be saved. Most startling

was the news that the soldier was

on his seventh tour of duty in

Afghanistan. By anyone's count,

that is a lot. And, yes, special

forces do agree voluntarily to take

on these missions, but are we

asking too much of a small number

of highly trained soldiers in

Afghanistan? Coming up, we will

look at the reaction to this latest,

the 33rd death, in Afghanistan.

Also today, the happy news of

Melinda Taylor's release. She was

detained in the Zintan province for

about a month, finally she is

reunited with her family. And we

will hear more on that and how much

credit Bob Carr should get for that

for getting around. And also the

shadow Minister, who raised

concerns about the way Bob Carr was

handling this. And the Indonesian

President's talks in Darwin today,

this is an important relationship for a number of reasons,

particularly people smuggling. This

can only be solved in cooperation

with Indonesia. What progress was

the importance of this made there? And do we underestimate

relationship? Should we be doing

more to foster it and recognise

that it is better than it could

possibly be? We will cross to David

Lipson live in Darwin shortly.

First, the top stories the sour.

Drug kingpin Tony Mokbel has and

sentenced to 30 years jail and will

2034. not be eligible for parole until

Six years since Tony Mokbel skipped

bail and fled to Greece, today he

finally got sentenced. It was handed down in the Victorian

Supreme Court. I intend by the

Federal and State sentences to

impose the total sentence of 30

years imprisonment with a non-

parole period of 22 years. A

sentence of 30, non-parole of 22

years. Tony well is also known

as'Fat Tony' in the drug world. The

men who worked to catch impact the

Supreme Court today. After

returning from Greece, he expected

eight life sentences until he could

make a deal with prosecutors last

year. But Mokbel try to turn --

overturn his guilty pleas last year,

his attempt failed and it did him

no favours today. In my view, your

attempt to alter your plea is a factor that weakens your position

on a Morse. In the course of that application, you expressly

disavowed responsibility for these

offences. Lawyers argued that

Mokbel's heart attack was a concern

after a heart attack earlier this

year. They said that he had seen

the error of his ways, but none of

this changed the judges view that

Mokbel was a drug dealer. When he

went to Greece, he was days away

from being sentenced to nine years

for importing cocaine and he spent

11 months fighting extradition

orders. The telephone intercepts

revealed to me that drug trafficking was your business, your

area of expertise and your career.

Things have not turned out as you

planned and no doubt, you now

regret that. Tony Mokbel entered

the courtroom smiling and joking,

but after all this time, it was the

prosecutors and detectives that

worthy winners. Tony Mokbel will

behind bars. possibly spend the rest of his time

Max Sica has been found guilty of

murdering three people in

Queensland in 2003. In the longest

criminal trial in the States

history, Max Sica was accused of

her two siblings. murdering his former girlfriend and

After a new weight -- a long wait

for Justice, the Singh family

finally has closure after the

murder of Kunal Singh, Sidhi Singh

and Neelma Singh. 42-year-old Max

Sica was found guilty of murdering

all three in 2003. He was in a

relationship with Neelma Singh at

the time. He was charged in 2008

and maintained his innocence

through the longest criminal trial

in the Queensland Supreme Court,

nor history. He faces the

possibility of 40 years behind bars

without parole for the murders.

They also carry a mandatory life

sentence in Queensland. After the

trial, he told the court that he

didn't kill'no one'. Members of

sectors own family -- Sica's also cried.

Military and political leaders have

paid tribute to the Australian

special forces soldier shot dead in

Afghanistan. The SAS soldier was on

his seventh tour of duty when he

insurgents yesterday. was killed during an encounter with

The special air service soldier,

who was based in Perth, was shot

dead during a fight with insurgents

in Oruzgan province on Monday

morning. The shooting came during a

joint mission with Afghan security

forces targeting a commander in the

valley. He was rushed to a medical

facility at Tarin Kowt, but his

life could not be saved. Defence

Force chief David Hurley said he

would be remembered as a highly

professional soldier. This man was

a soldier's soldier and I know his

sacrifice will not be forgotten. He

was the first Australian soldier to

die this year in Afghanistan, but

the 33rd in the decade-long

conflict. His family was informed

overnight and they have asked his

name not be released. He was on his

seventh tour of duty in Afghanistan,

having joined in 1990 and joining

extended their condolences, the SAS in 1995. Senior politicians

describing it as a blow to the

nation. This is a dreadful blow for

our nation and I know Australians

today., we'll pause, will reflect

and will mark with respect the loss

of this brave soldier and we will

honour his service and sacrifice. A

terrible day, a terrible blow for a

family, the Defence Force, the army

and the SAS... This was a warrior,

and SAS soldier on his seventh two

to Afghanistan -- tour, doing a

great job for us. Ms Gillard

admitted the latest death may leave

many wondering why our forces are

still fighting in Afghanistan. We

went there to make sure Afghanistan

would not still be a safe haven for

terrorists. It continues to be our

purpose under a defined time line.

The government remains committed to

the process in Oruzgan province, which will see Australian forces

18 months. hand control to local forces within

The RBA has kept interest rates on

hold at 3.5% at the monthly board

meeting. The decision follows cuts

in May and June. Liz, this was

predicted by economists, what does

it mean for the economy? It

certainly was. No surprise there.

The RBA today keeping interest --

interest rates on hold at 3.5% as

expected. It shows the economy is

ticking along quite nicely and the

RBA didn't think it had to move

because we are already seeing some

positive signs that the economy is

going well. Low unemployment,

strong GDP and signs that property

prices are stabilising. The

statement today from the RBA shows

it thinks inflation is under

control today. Some of the stimulus

measures are flowing through to the

economy, which has seen it changed

to wait and see mode. The statement

accompanying the decision to date

have known decision -- no

indication that the bank is in a

hurry to cut interest rates any

time soon. The markets didn't react

much to the decision today because

it was wrought -- widely priced in.

We are looking at 10% as we head to

the close. The Aussie dollar to

drop immediately after the decision,

one fifth of a US cent, currently

trading at 1.06 US cents. And a

survey by Sky News business had

predicted there would be no change

to interest rates. A low 40% are

expecting rates to drop to 3.25% by

the end of the year. Nice to see stability creeping in.

Clive Palmer will seek preselection,

but not in the seat of Lily as he

proposed. He says the LNP already

has excellent candidate is buying

for that seat, so he will -- he is

yet to name his electorate. Two

young North Queensland cousins

happened -- died after being buried

alive when the drain they were

playing in collapsed last night. It

is believed the boys, aged 12 and

14, had turned the drain into a cubby house. Emergency services

tried to pull them out, but they

couldn't be revived. Australian

athletes have them banned from

using sedatives at the Olympic

Games. It comes after Grant Hackett

admitted he became dependent on

Stilnox that was given to him by

doctors in 2003. This was only

brought to my attention when I read

Grant Hackett's revelations in the

paper and if I am to blame for not

having got on top of this earlier,

not having understood it is a

earlier, I accept that blame. A

sedatives that is not as strong can

still be prescribed to athletes in extreme circumstances.

And now for a look at the weather:

Thank you, director today, we will

be talking to the Finance Minister

Penny Wong later. Paul Kelly from

the Australian also joining us

looking at the carbon tax and how

it plays out in week one. We are

also going to look at the talks

that have been underway for the

last couple of days with the

Indonesian President in Darwin. An important relationship, we will

look at what has come out of his

talks with the Prime Minister in particular, and also the meetings

with the Opposition leader as well.

Thorny issues are there,

particularly the Opposition wanting

to turn boats back to Indonesia.

Not something Indonesia wants.

Clive Palmer is also not going to

run against Wayne Swan in the seat

of Lily -- Lilee, but it is -- he

is canvassing around for another

seat. The problem is, every seat

should be a target for the

Coalition in Queensland in the

coming election. According to the

polls, they are all winnable for

the Coalition. That means he will

face a bit of a contest to win LNP

preselection in any other seat. Is

he serious about finding another

seat to run as a candidate? We will

take a look at that. Stay with us.

You are watching PM Agenda. Welcome

to the program. There was a sad

reminder today about how dangerous

the situation remains in

Afghanistan. Despite the moves to

hand over security control to local

Afghan forces and the steady

drawdown of Australian, US and

other Coalition forces by 2014, 40-

year-old special forces soldier was

killed yesterday. He was taking

part in a mission to take out a

cover band -- a cover band target.

Despite wearing body armour he

couldn't be saved. What's more

startling is that this 40-year-old

SAS soldier was on his seventh tour

of duty. There aren't a lot of guys

capable of doing this type of work,

they are the best of the best, the

special elite forces. Seven tours

of duty are a stretch by anyone's

measure. They all volunteer for

this work, but are we asking too

much of this small team of special

forces? This was the reaction by

the Defence Force Chief. His

seventh two, which is probably

unusual. This is a tragic and

incredibly difficult day. We are

all absorbing tragic news, but this

tragic incident is part of what we

are doing in Afghanistan because

that mission is so important to our

Australian nation. I have been

twice to Afghanistan. I have spent

a lot of time talking to our

soldiers. They are all volunteer.

They go willingly into harm's way

for us for our country and they

understand that sometimes a very

high price is paid. Tony Abbott,

Julia Gillard and General Hurley

were all speaking from Darwin today,

where they have been as part of the

summit with the Indonesian

President and other figures who

have been in town for annual talks between the leaders of Australia

and Indonesia. This is a very

important relationship, one that is

in pretty good shape considering

the many challenges that we have

seen - people smuggling, the ban on

the live cattle trade that really

upsets diplomatic ties, people

smugglers being arrested in

Indonesia, young boat crew being

detained in Australia, terrorism

over the years as well. They are

all thorny issues, but coming out

of today's talks both Susilo

Bambang Yudhoyono and Julia Gillard have agreed to strengthen

cooperation on a range of fronts -

defence ties, economic co-operation

and people smuggling. David Lipson

has been in Darwin and he is with

us now. The big picture first of

all, what do you think, coming out

of these talks, particularly

between the Prime Minister and

Indonesian President - have we seen

the strengthening of the

relationship this week? I think so.

Certainly Indonesia and Australia

are close friends and allies and that relationship seems to be

getting closer and closer. A lot of

difficult issues - this event...

Through all that the leaders

emerged smiling. They seemed happy.

A lot of praise heaped on each

other and also on each other's

nations in regards to a whole range

of issues. But also the

opportunities ahead and a very...

Apologies, we are having problems

with the link to you, David. We

will keep trying that. We saw the

Prime Minister and the President

agreed to closer cooperation,

particularly when it comes to

rescue missions for boats in

trouble trying to get from

Indonesia to Australia, and that's

an important step in the last few

weeks. Beyond that, what sort of

further cooperation will there be

in stopping boats leaving Indonesia

and tackling the people smuggling

problem? Is a very good question,

and there's not really a clear

answer, apart from agreeing to

enhanced co-operation in this area,

where there is already substantial

co-operation. There was not really

anything specific on exactly how

the two nations would work...

There was another meeting this

afternoon was Tony Abbott. Tony

Abbott, Julie Bishop and also

Susilo Bambang Yudhoyono and some

of his ministers met for some time

just a short time ago. Of course,

the Coalition's policy of towing

boats back to Indonesia, as you

mentioned, is a controversial one

and is not one that the Indonesians

are keen on at all. I spoke to the

deputy leader, Foreign Minister

Julie Bishop, a short time ago and

started by asking her about this point.

Can you tell us how the meeting

went in regards to the Coalition's

policy to tow boats back to

Indonesia? Tony Abbott and I had a

very warm, cordial meeting with

President Yudhoyono and a number of

his Cabinet ministers and the

discussion was confidential. We

talked about a range of matters -

Indonesia is one of our most

important relationships, Indonesia

should be one of our most important

foreign policy, and it was

appropriate that Tony and I come to

Darwin and meet with the President

while he is here. I will be meeting

shortly with the Indonesian Foreign

Minister, but we did express the

view that these discussions would

be kept confidential, and that is

appropriate. I understand the

discussions are kept confidential,

but in the past the Foreign

Minister has been critical of the

Coalition's policy in public. He

said it is impossible and not

advisable to shift the nature of

the challenge from one end of the

continuum to the other, so is this

an area where the? Policies can

actually gelled together, yours and

Indonesia's? I met with him

recently in Jakarta and we had a

good discussion then, airy warm,

friendly, productive. -- very warm.

Should we win Government at the

next election, we intend to make

Indonesia one of our most important

foreign policy. I intend to meet

with the Foreign Minister on a

regular basis. He has already stated publicly that his first

visit would be to Indonesia. There

would be ongoing discussions with

Indonesian officials, ministers,

about a gamut of issues that exist

between Indonesia and Australia. Is

the Coalition going to be able to

implement the policy to tow boats

back to Indonesian waters? The

Coalition's policy has worked in

the past and we are committed to

implementing a policy. It worked

under the Howard government, the

policies of offshore processing at Nauru and Manus Island, if

necessary. Indonesia has publicly

stated its opposition to this

policy. Can the two work together?

We will work diligently behind the

scenes with Indonesia to make sure

we can stop the boats and stop

these tragic deaths occurring at

sea and put some integrity back

into Australia's border protection.

Afghanistan, another tragic death

of a soldier. He had completed

seven rotations, seven tours of

duty in Afghanistan. Are we putting

too much pressure and asking too

much of our special forces

soldiers? First, I extend our

deepest sympathies and condolences

to the soldier's families, --

family, friends and colleagues.

It's a tragic day when such an

event occurs. The question of

rotations is a matter for the

military. They are the experts in

this field. The Government, and if

we were in Government, must rely on

that advice. It has been a long

campaign and we were committed to

it for the long term. Tragically

that means that there are

consequences, such as we have seen

today, but on the question of

actual rotations in the number of

times our experienced SAS soldiers

go to Afghanistan, I'd will leave

that to the defence experts.

Melinda Taylor, your initial

reaction there - I will just get

that first? We welcome the fact

that Melinda Taylor has been based.

She has been detained in Libya

since June 7, she was there as an

official with the ICC. At the time

I said I could see no reason why

she should be detained,

particularly as she would have attracted immunity and I'm

delighted that the president of the

International criminal Court made a

personal intervention, and that

seems to be a critical intervention.

I note that he paid great tribute

to the Italian Government for their

support and likewise I acknowledge

the efforts of the Italian

Government in their efforts to

secure her release and the rest of

the team. What about Bob Carr's

intervention? He was pretty public

today about what he was doing along

the way. In the end the result has

been able positive one, but you

were critical of the method of

diplomacy that he was engaged in. I

was concerned by the unorthodox

approach. Whenever I have been

briefed by the foreign affairs Department, the advice is clearly

do not have a running commentary

through the media. I think that's

the advice that Melinda Taylor's

parents also believed, -- also

received, that is best not to have

a running commentary. It can often

work against a person situation. In

this case I assume Senator Carr was

acting on the Department's advice,

and the result has been the fact

that Melinda Taylor has been

released so we're all grateful for

that. I don't know particularly

what influence Senator Carr had

over that. He did travel to Tripoli,

I note that the Australian

Ambassador from Tripoli -- from

Italy also went to Tripoli and was

able to secure a 90 minute consular

meeting with Melinda Taylor and we

also acknowledge the great efforts

that he put in and the rest of the

diplomatic staff. Julie Bishop, thank you.

The Deputy Opposition Leader and

Shadow Foreign Minister, Julie

Bishop, talking to David Lipson a

short time ago. Good news about the

release of Melinda Taylor, the

Australian who was detained in

Libya for the past month. On

Indonesian meetings, we will be

talking about this further later in

the program. Greg Fairley from the

Australian National University, an

expert in Indonesian politics, will

be joining us to discuss whether we

have got the balance right in the

Australian Indonesian relationship

or whether we can do more.

You are watching PM Agenda, time

for a check of the headlines. Back

to the new centre. -- news centre.

Drug kingpin Tony Mokbel has been

sentenced to 30 years in jail after

he played guilty to three serious

drugs charges. He pleaded guilty to

trafficking large amounts of

methamphetamine and ecstasy and convincing undercover policeman to

import ecstasy. The drug boss

showed no emotion in the Supreme

Court dock as Justice Simon Whelan

handed down sentence. He will not

be eligible for parole until 2034.

Max Sica has been found guilty of

murdering three people in

Queensland in 2003. In the longest

crumpled trial in Queensland's

history, he was accused of

murdering -- longest criminal trial,

he was accused of murdering Neelma

Singh and her two siblings in 2003.

He was charged following a five-

year police investigation. He was

maintained his innocence and said

he found them when he went to check

on their welfare. A Perth-based SAS

soldier was shot dead in

Afghanistan. The 40-year-old was on

his seventh tour of duty. He is the

33rd fidelity in Afghanistan since

the war began -- fatality. Prime

Minister Julia Gillard and

Indonesian President Susilo Bambang

Yudhoyono spent the day behind

closed doors in discussions.

President Yudhoyono has welcomed the decision by the Gillard

government to Richard -- repatriate

some underage Indonesians held in

detention centres.

The RBA has kept interest rates at

3.5%. In a statement, I noticed a

subdued -- they note as -- noted a

subdued economic outlook. They also

mentioned the lack of confidence in

Greece and Spain. Australia's

athletes have been banned from

using sedatives at the London

Olympics. John Coates has confirmed

the medical manual is being

rewritten so the use of sleeping

pills is prohibited. And now for a

look at the weather:

Mike, thank you. I think it is fair

to say Wayne Swan would have loved

to go up against Clive Palmer in

his seat of Lilley in the next

election. The Treasurer has than

taunting the mining billionaire to

run, but ahead of the close of

nominations, around about now,

Clive Palmer put out a statement earlier today saying he would not

be seeking preselection for the LNP

in the seat of Lilley, but he is

opening -- leaving open the

possibility of running for a

different seat. We will see what

happens there. They are all

technically winnable for the

Coalition. I want to play you what

we have here, the Treasurer's

response to this. He is still

taunting Clive Palmer over this.

Regardless of what Mr Palmer

announces today, he has already

paid Tony Abbott for the very big

tax cut that Tony Abbott wants to

give him. If he is going to run

away from this contest, I think

it's a shame. If he is going to

skulk away to Tahiti, I think it's

a shame. Skulking away in Tahiti,

they are fighting words. We will

see what Clive Palmer says about

that. But I think the Treasurer and

others in the government have

bigger fights on their hands, in

particular the carbon tax. We are

only three days in and the media

blitz from both sides of politics

continues, but it will be a while

before people make the final

judgement on this. To look at how

things are travelling on this, one

of the most important policy issues

we have seen for years and years,

finally an effect. Paul Kelly joins

me. Or, we are three days in, how

do you think it is playing so far?

I think the point to make is that

this is not like the GST. People

have said it is like the GST, but

in truth it isn't. With the GST, we

got an immediate price increase

across the board, so what happened

immediately was very important as

far as public perception. I think

what we have here is going to be a

series of anti-climax. I think it

will be a number of months for we

can see how the public respond to

this new phase of carbon pricing.

And I think in that sense, we need

to bear in mind that the government

and the Opposition have not --

entered this contest as equals.

Tony Abbott has a very big lead. We

know from the poll that most people

don't like carbon pricing. All Tony

Abbott has to do is maintain the

status quo, the current position.

The onus is very much on Julia

Gillard and Wayne Swan to change

attitudes and I think it will be

difficult. Do you think the media

blitz that we are seeing,

particularly from the government in

the last 48 hours, and even the

singing and dancing we have seen

from some, is any of this going to

make a difference? I do think it

will make a difference. I think one

of the problems that Julia Gillard

faces is that attitudes towards the

Prime Minister are quite entrenched.

Is Julia Gillard was in a stronger

political position, if she was more

persuasive, if she had more

political capital, she would be in

a much stronger position to change

attitudes when it comes to carbon pricing. But the reality is that

she isn't. So why we have a

substantial blitz -- while we have

a substantial blitz from the

government, there is a question as

to whether or not it would be

effective I am that -- effective

and I am sceptical. Tony Abbott has been going from factory to

shopfloor warning about what the

carbon tax will do. No doubt he

will continue that. But it needs to

be a different message. It is now

what is the carbon tax doing? It is

a living reality. There will be

practical examples of the impact or

lack of impact that he will have to

speak to. Tony Abbott will be

exposed at one level because there

is no doubt that he has exaggerated

the impact of this tax and I think

the government will make progress

on that point. They will be able to

demonstrate that Tony Abbott has

gone too far, but I don't know if

all make that much difference as

far as the public are concerned.

What we do know is that power bills

will increase and there are a

number of reasons for that. The

carbon tax is just one. But Tony

Abbott does know that when people

get those electricity bills, they

will increase significantly and he

will be able to argue that this is

due to the carbon tax. The carbon

tax will be one element in that,

but overall, I think it will be

possible for Tony Abbott to

continue to muddy the waters to an

extent. And a final one, Paul Kelly,

the meeting underway today between

the Indonesian President and the

Australian Prime Minister and the Opposition leader this afternoon in

Darwin, they have announced a few

things and talked about a raft of

things. But the big one overhanging

it has been the asylum seeker,

people smuggling issue and it

doesn't sound like there has been

any major breakthrough on that

front. In dealing with Indonesia,

David, you really ever get major

breakthroughs. Indonesia doesn't

like surprises or drama. It likes

to take things gradually. I think

this has probably been a good

meeting when the two leaders, --

between the two leaders, but there

has been no dramatic announcement.

We shouldn't be surprised about

that. The cooperation we get from

Indonesia when it comes to the boat

is important. The Australian government needs Indonesia to do

more, but Indonesia has its own

problems and difficulties. It has

its own priorities and there is no

guarantee that it will do more.

Paul Kelly, thanks so much for that.

And we are going to talk further

about the Australia, Indonesia

relationship with Greg Fealy from

the Australian National University

shortly. The RBA kept rates on hold,

3.5%, no great surprise. It

followed two consecutive rate cuts

totalling three quarters of a

percent. But what was holding their

breath another one today. But what

does it mean and what has been the reaction, particularly from the

government? I spoke a short while

ago with Penny Wong, the finance minister.

Penny Wong, thanks for your time.

Can I ask you what you think of the

RBA decision to keep rates on hold?

Was at the right call? Good to be

with you, David. Obviously, the IBA

makes its decisions independently -

- the Reserve Bank of Australia, we

have seen some easing in monetary

policy. We saw rate cuts before and

after the budget and someone on a

$300,000 mortgage is paying

substantially less than they were

when we came to office. That is the

context. But ultimately it is a

matter for the Reserve Bank. In its

statement, the governor Glenn

Stevens talks about maintaining low

inflation over the long term and

requiring... Is he saying that

waiters need to be kept in check? I

think the sentence refers to the

fact that the bank believes the

inflation will be where it should

be -- the inflation rate will be

Whare should be. But of course, as the exchange-rate lessons, then you

have to live -- you have to look

and you need to understand that

they have made a judgement as to

where the inflation setting should

be. What is the government's view

on this? Does a message need to be

sent to unions in particular not to

seek to many wage rises at the

moment? I think we'll was have to

be aware, everyone, whether it is

unions, employers, we all need to

be aware and have a long-term

perspective and understand that

that perspective is brought to bear

on training decisions and wage

claims because ultimately, what we

all want is as much as possible of

the pipeline of investment coming

into this country actualising into

projects. We have got a very, very

good pipeline and lots of

confidence in the Australian

economy. But what we all want, we

want to make sure as many projects

come to fruition as possible. That

is where our prosperity comes from.

The Reserve Bank is looking through

the immediate impact of the carbon

tax. A lot of others are looking

right at it at the moment. We saw

your colleague, Craig Emerson,

burst into song and dance in

ridiculing the Opposition yesterday.

What did you think of his

performance? I thought, thank

goodness no one can get a video of

me at Chinese New Year dinner is

doing karaoke. I would have been

embarrassed to. I have seen some

feigned outrage from the Opposition

on this and if they are so

concerned about people's fears, why

is it that Tony Abbott has been

take -- telling people that

industry would end and whole towns

would be wiped off the face of the

map? Some of the reaction from the

Liberal Party to Craig's interview

and singing really flies in the

face of the fact that they are very

happy to whip up people's fears in

a very irresponsible way. There are

people concerned about this carbon

tax, though, probably more so in

the Latrobe Valley than anywhere

else. A committee set up by the Victorian and Federal governments

has warned of flow on impact for businesses, communities, families

and jobs in that region. What can

you say to them about this at the

impact, specifically on the Latrobe

Valley? Are we going to see a big power generator there shut down,

are we going to see jobs lost?

Overtime we want to see investment

in clean energy and we need to make

that transition. To the people of

the Latrobe Valley, I would say we

are working with you. Simon Crean

is the minister responsible as well

as Martin Ferguson, and they have

been working with the community. We

have set aside funds to work with

the community. There are a range of

decisions that companies may or may

not make. We understand that there

are regional dimensions to the

change that will come or that is

coming. What does that mean? In

plain, honest language, does that

mean some jobs will be lost? That's

obvious -- ultimately a matter for

those companies whether they

continue or not and how they choose

to deal with the changes as a

result of the carbon price.

Remember, change occurs in the

Australian economy all the time. It

would occur if Tony Abbott were in

Government because they are our --

there would be a range of other

things he would implement including

higher taxes for his policies. One

of the key parts of the Government

scheme is the contracted closure,

trying to shut down some of the coal fire powered generators.

Negotiations have stretched out for

that. How are they going, when are

they going to be concluded, and can

you give us any insight for what it

will mean for La Trobe? As you know,

those negotiations and discussions

are commercial in confidence, I

won't be discussing them. They will

happen in the context of commercial

in confidence discussions. But it

is reasonable for people to ask,

what will be changed mean for me?

We have put -- we have a minister

working with these communities. We

understand that regardless of when

decisions are made and what

decisions are made, we are shifting

the nature of our economy, there is

a particular regional impacts in

the Latrobe Valley and they are

entitled to have the Government

working with them and they have.

Finance Minister Penny Wong, thanks

for joining us.

I just want to bring you up to date

on some news coming in, Queensland

LNP politics, Clive Palmer won't be

running against Wayne Swan but

leaving the options for another

seat. We have now just learnt from

'The Australian' website that Mal

Brough's attempt to come back into

federal politics could be in real

trouble now. James McGrath, who ran

the LNP's State election campaign

earlier this year as the party boss

- a very successful campaign to get

Campbell Newman into Government, he

is now putting his hand up,

according to 'The Australian', for

the seat of Fisher. Peter Slipper's

seat that Mal Brough was hoping to

win will now face stiff competition.

After the break we will look at the Australian-Indonesian relationship

Australian National University. with Peter Fealy from the

We are going to look further at the

meetings that have been underway in

Darwin between the Australian and

Indonesian leaders today. Coming

out of the talks both were talking constructively about what's been

the big issue here in Australia for

the last week or so, people

smuggling. The President and I

discussed the importance of the

Bali process in combating human

trafficking and people smuggling. I

welcomed the strong co-operation we

have with Indonesia on people smuggling, including Indonesia's law enforcement efforts against

people smuggling syndicates.

TRANSLATION: In the field of

preventing, combating people

smuggling and also human

trafficking, we have agreed to

enhance greater co-operation.

Indonesia is also a victim of the

acts of illegal people smuggling,

be it human trafficking or people

smuggling. Based on the value process and the cooperation between

our countries that are affected, we

hope that we can prevent the acts

of people smuggling in our region.

Greg Fealy is an associate

professor of Indonesian politics at

the Australian National University.

This issue is just one of the two

key areas in the relationship

between our two countries. You can

also throw in the mix Australians

being caught on drug smuggling,

Indonesian juveniles being detained

here for people smuggling offences,

terrorism, the live cattle trade

ban on earlier this year that

disrupted things. What was the

significance of the meeting today

and has it been a success? In one

way it has been a success. I think

the more often that we have the

Australian Prime Minister and

Indonesian President meeting along

with senior ministers, that's a

good thing. I think looking at the

outcomes of the meeting today, it

is clear that the great - Australia

has given Indonesia a lot more than

what Indonesia has given it. In

terms of the four Hercules? The

assistant on people smuggling Hercules, patrol boats, the

issues. And we want Indonesia to do

more on people smuggling? We do,

but the statements made by the

President so far have been very

general. I'm sure the Indonesians

will continue to ramp up the kinds

of things they are currently doing

in order to stop the boats, but the

bottom line, unlike for example the

counter terrorism issue a few years

ago, where they both had a strong

interest in combating terrorism, on

the people smuggling issue the

Indonesians regard this as a far

lower priority. There is no common

issue? Clearly Indonesia has about

this issue but it is nothing like

the priorities here. I think the

Indonesians would prefer that the

boats didn't come in they would

like to be able to process those

boat people within those shores,

but I think they are used with the

amount of attention this gets in

Australia and the vast resources

that are thrown at it. What can be

done? If they are to be processed in Indonesia, would require

Australia to find the whole thing,

to build a centre to have the

people doing the processing? I

think we are already investing many

millions of dollars in Indonesia to assist Indonesians in processing

people, holding centres,

facilitation money that is given to

local villages, to have... So I

think there is a lot of those

things that are already happening.

The Indonesian Government can be

even more rigorous in its

prosecution. The live cattle trade

issue remains a heated one between

the two countries. Indonesia, after

we slapped the ban on the trade,

has significantly halved the number

of live cattle taken from Australia.

Was there any progress on that

today? There is not. The

Indonesians didn't agree to lift

the cap further, to lift the import

of more live Australian cattle. All

they did was to urge Australians to

increase their investment in Indonesia's domestic beef industry.

So there is no indication that the

Australian beef industry can return

to the kind of exports it had

before that crisis last year. The

fact this was in Darwin today - we

did see Indonesia react in a

hostile way about the American

troop announcement, where they

would be based in the Northern

Territory. Are the Indonesians now

more relaxed about that? I think

SBY was always relaxed about it. Although the Foreign Minister

Angeli came out with a critical

statement, shortly afterwards they

said Indonesia didn't have a

problem, and I think it was

symbolic the meeting was held in

Darwin, and I think it is something

the Australian Government would be

very grateful to him for. Thank you

for your time. Thanks for your

next. company. After the break news is

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