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Home computers and mobile

phones the new targets of

Australia's intelligence

agencies. Picket breakers. The

Riot Squad end as stand-off

outside a New South Wales

jail. This has been in my view

one of the darkest moments in

Grafton's history. The

anti-austerity mood turns ugly.

Spaniards react to new spending

cuts. If this doesn't work we

need to go for more and harder,

really, really go for them.

And 50 years on, the Stones are

still rolling.

Welcome to ABC News across

Australia. I'm Ros Childs. The

local share market is back in

the doldrums today.

We start with the latest

unemployment figures which are

just out. They show the jobless

rate ticking up. It's a up a

notch in June from 5.1 to 5.2%.

27,000 jobs were lost. A closer

look at those figures. Bill

Evans is the chief economist at

Westpac. We're hearing every

day or so about people losing

their jobs. How is the

unemployment situation looking

to you? Look, at 5.2%, that's

not a particularly worrying

number, but a lot of the lead

indicators are now pointing to

a further rise in the

unemployment rate. We saw it

get to 5.3 at the end of last

year, and is settled back to as

low as 4.9 about year. Now it's

picking up again, more people

have left the work force yet

the un employment rate is

almost back to where it was

last year. I think the number

itself isn't that worrying and

the jump isn't that worrying.

But the direction of the

movement is consistent with

other things we're seeing. We

have to expect that things will

get worse from here. How much

higher than 5.2 do you expect the rate to be by the end of

the year? Our forecast is

around 5.7, but we think there

will be further interest rate

response from the Central Bank

to try to head some of this

weakness off. We're expecting

to see up to three quarters of

a per cent in rate cutses

between now and the end of the

year hand that will certainly

moderate the situation. But the

labour market is always the

last market to really move. And

it is now I think in a fairly

weak stage moving further up.

Are you able to tell from these

numbers whether jobs have been

lost? We can't. The monthly

numbers don't give us that. But

I think what is interesting is

that the south eastern states,

New South Wales, Victoria and

South Australia, the

unemployment rate jumped in all

of those states and in Western

Australia and Queensland the

unemployment rate fell Australia and Queensland the

substantially. I think that

message will be a consistent

message where the jobs

associated with the consumer

sector, with the manufacturing

sector, with the construction

sector are going to continue to

be lost. There will be some

offsetting factor in the mining States. Australia's

intelligence community is

proposing the biggest shake-up

since the changes of 2001

prompted by the terrorist

attacks in the US. On the wish

list is greater access to

people's social media sites

like Facebook and Twitter and

keeping the Internet and

telephone data of all

Australians for two years.

There are more than 40

proposals and they will be

reviewed by a parliamentary

joint committee on intelligence

security. Civil liberties

groups and some politicians

have criticised the ideas,

including Greens senator Scott

Ludlam who joins me now from

Perth. Senator Ludlam you're

opposed to these proposals.

What's your main concern? I'd

like to know what the purpose

of them is. The government

hasn't made any attempt to

justify why they think we

should be surveiled

pervasively. Why should

agencies should have another

set of powers. I would like to

hear the justification for why

this is necessary at all. The

intelligence agency certainly

in other countries have said

they're finding it harder to

stay on top of potential

security risks because of the

explosion in social media and

other Internet tools, things

like skype and cloud

computeing? We have here a

proposal to store all of your

emails, all of your Facebook

traffic, your mobile phone if

you carry a phone will keep

track of everywhere you are

every minute of the day as

though programs all Australians

will be criminal or terror

suspects. The thinking behind

it pretty offensive. Nowhere

have we seen a co hernt

justification for why it's

necessary. I think Australians

have and should expect a right

to privacy on-line. It always

comes back to the same argument

though. If you have nothing to

hide, then you have no

worries? I auto I don't buy it

actually. If that were true

then the government wouldn't be

fighting so hard against

WikiLeaks that should apply to

government it is it's meant to

apply to private citizens. We

have a right to privacy as

Australian citizens in a

democracy, we have a right not

to be surveiled 24 hours a day

agencies. These people should by clandestine intelligence

have better things to do, ie,

chasing networks that do

genuinely mean us harm, rather

than subjecting the entire

Australian population to

pervasive surveillance. It's a

misdirected effort. I don't

think it's appropriate or

necessary. You think the

a generation that the idea notion of privacy changed over

private to a younger now who's

on Facebook, who Tweets all the time, it doesn't really exist

any more? No, it absolutely

does exist. I think you're

right in that the notion of

privacy is changing and social

media is playing a big role in

that. There is a big difference

between what people choose to share. People aren't automatically choosing to share where they are every minute of the day to police agencies,

welfare agencies the Tax Office

and anybody else who cares to

snoop. That's the kind of data

your mobile phone is regarding

everywhere you go. We have a legitimate expectation to

privacy. The agenda is it

already somewhat out of chrome.

Not many people probably

realise that there were a

quarter of million requests by

various agencies in 2010-11 for

telecommunications data which

could be, for example, where

you are, your latitude and

longitude hat any given point

there has within an explosion

in surveillance. I don't think it's very well understood

exactly how far this has

already crept. Senator, thank

you. After almost six days of

protest outside the Grafton

jail in New South Wales is

over. A picket line was set up

on Saturday to block the

transfer of prisoners after the

State Government announced

plans to cut beds and axe more

than 100 jobs at jail. Riot

police arrived this morning.

Demonstrators turned their

backs in disgust as inmates

were taken away to other jails

across the State. This has been

in my view one of the darkest

moments in Grafton's history.

And that is going to take some

time to overcome. The prison

officer marked the end of their

fight to save the jail.

(Bagpipes play) Protesters say

the decision to downsize the

jail is a broken promise from

the New South Wales Premier

Barry O'Farrell. Reporter

Phillipa McDonald is outside

graph tonne jail now. - graph

tonne jail now. I think we have a problem with Phillipa's line

there. We'll try to return to

her later in the program. Victoria's Country Fire

Authority has acknowledged it

acted too slowly in responding

to cancer concerns linked to

harmful chemicals at its

Fiskville training centre west

of Melbourne. A team of

investigators has been looking

into unsafe practices at the

facility between 1971 and 1999.

It found businesses would

donate unwanted chemicals to Fiskville then a cocktail of

those materials would be used

for live fire training. My view

is that fact trail gives rise

to a truth about what did

happen at Fiskville and it does

show that we could've taken

action at an earlier time but

is it not. The firefighters

union wants the Victorian

coroner to investigate deaths

to what it calls a cancer

cluster at Fiskville. Four

people have died in traffic

accidents on Queensland roads

within six hours. Two men were killed and another was

seriously injured in a crash

near the town of Tully in the

State's north last night.

Police say two cars collided

with a semitrailer just north

of the Mission Beach turn-off

at around 7.30. In central

Queensland, a 55-year-old woman

died after a car rolled on the

Capricorn Highway just after 5

o'clock. And a man in his 60s

was killed when two four-wheel

drives collided on a road near

Bamaga in the State's top end.

Overseas now. Western nations

are hoping the United Nations

will pass a resolution forcing

an end to violence in Syria.

The US, Britain, France and

Germany dra.ed the resolution

imposing tough new sanctions on

the Syrian regime after being

briefed by Special Envoy Kofi

Annan. The motion, if passed,

would give President Bashir

al-Assad 10 days to end the violence. The President came under further pressure today

when his ambassador to Iraq

became the latest to defect. In a Facebook message he declared

he had joined the revolution

and urged the pill tree to turn

its guns on the criminals of

the regime. Republican Mitt

Romney has received a hostile

reception at a civil rights

conference in Houston. The

65-year-old was loudly booed

when he criticised Barack

Obama, and when he vowed to cut

the President's health care

program. The former governor

pay peeled to African American

voters to give him a chance. It

was never going to be a

sympathetic crowd. We pray O

God for our President ,

President Barack Obama. But

there was polite applause. As

Mitt Romney appeared before

America's leading civil rights

group. I do love listening to

that organ music I have to tell

you. African American voters

backed Barack Obama

overwhelmingly in 2008. And are

expected to dot same this

November. I hope to represent

all Americans of every race.

He argued a bad US economy is

much worse for African Americans whose unemployment

rate is 14.4% far above the

national average. When Mitt

Romney turned to cutting the

signature health care program,

his audience mood sour. I will

work to reform and save ... CROWD BOO

The appearance in Houston was

designed to show that Mitt

Romney will be an inclusive candidate. Barack Obama isn't

speaking at the conference,

leading to criticism that he's

taking the black vote for

granted. If you want a

President who will make things

better in the African American

community you are looking at him. (Scatter applause) You

take a look. The Obama camp is

turning up the heat on Mitt

Romney over his personal wealth

and refusal to release more of

his tax returns. He wants you

to show your papers but he ont

show us his. The

multimillionaire has a Swiss

bank account, investments in

the Cayman Islands and a

corporation in Bermuda. His

supporters are dismissing it as a

a distraction. But it makes his

outreach to minority groups

that much harder. Back to

Grafton now. After almost six

days of pro test outside the

jail there in New South Wales

is over. Phillipa McDonald

joins us now. What

joins us now. What is the

situation? Once again, as you

can see we have a problem with

that line. We will have another

go later in the program. Now to

Spain in the meantime. Despite

having Europe's worst

unemployment rate and an

economy in severe stress, Spain

up until now has not seen the

same violence street protests

as Greece. But that changed

overnight when angry coal

miners and their supporters

fought pitched battles in the

streets of Madrid over the

government's announcement of

more tax hikes. Despite chronic

unemployment and a sinking

economy, Spain had avoided the

violence that marked the Greek

troubles, but not any more. The

street battles with police mark

a disturbing new phase in a

crisis that shows no end. It

started in the coal mining

valleys of northern spine. Miners angry about austerity

cuts to subsidies for their industry used whatever they

could to express their anger

but that achieved little so the

miners took to the roads and

highways after a three-week

trek they converged on the

capital. I think they need to

see that all of Spain is like

this, not only the mines,

severing going badly. But this

has become much bigger than the

miners' protest. Thousands of

Spaniards have joined them in

the streets, angered by cuts to

services and jobs, these people

say austerity isn't working.

Europe's highest unemployment

rate has increased anxiety or

frustration with the government

which responded by increasing consumption tagses and announcing more spending cuts

of $80 billion over the next

three years. One has to be

realistic. The way to build

Europe has never been easy. We

have hey freed on a strategy.

We have agreed that it is the

time. But we are seeing and we

will see in the future

tensions. Sna that won't

placate these people who are

sick of kufts and say it

neighbours a bad economy even

worse. Spanish banks are about

to receive billions in European

bail-out funds. That won't

impress many here either as

discontent rises as the economy


One of the big worries with

on-line shopping is security.

Latest fig you urs show there

has been an increase in payment

fraud for people ordering goods

on-line or even over the phone.

The good news is that cheque

fraud is down over the last

year as is the unauthorised use

of cards at ATMs and EFTPOS

terminals. Chris Hamilton is

the CEO of the Australian

Payments Clearing Association

and he joins me now. Let's kick

off wh this increase in fraud

for people shopping on-line.

Are scammers just getting more

sophisticated or are retailers

an consumers simply becoming

more complacent? There is a

number of things going on

there. One of the things is

that this is a really rapidly

growing area. That means new

people are coming to the new

consumers. New consumers and

new merchants. They're programs

not as familiar with the

security controls you need to

exercise as they might be and

so it's the newer people who are programs getting caught

here. We're certainly seeing a

lot of increase in what we call

card not present fraud. It's

something we need to watch out

for. What can consumers do to

protect themselves? There are a

lot of very practical things

you can do. One. Things is you

deal with reputable retailers

and reputable merchants. If

you're on the right kind of

site to make a payment, you

should be - there should be

what's called a secure socket

layer a little lock icon on the

system. You need to know who

you're dealing with. You need

to make sure that you're

comfortable, your own browsier

and your own set-up is up to

date with all the latest

anti-virus and all of that

stuff. If you spot a potential

fraud on your bank statement,

is your bank obliged to write

it off or do you have to prove

first thaw didn't buy those

goods? So the way it works is,

it's very important for

consumers to be confident in

the system. If you have done nothing wrong you won't wear

the loss. It may take a while

for bank to go through the

process of investigation and to

understand what actually

happened. But it's important

for consumers although they

need to protect themselves

'cause there's a lot of

inconvenience here at the end

of the day they won't wear the

loss. Payment fraud is falling

though. Is security getting better? On the cheque side of

the story I think what you say

is basically right. Cheques are

in decline, even though the

fraudsters are starting to look

for other things to do, right.

So that's that story. But there

are some other important trends

here. For example, ATM fraud is

down. At very low levels. So

that's important for people

'cause that's direct access to

their bank accounts. And indeed

the other thing that's

happening which is important is that what we call skimming

fraud is down in Australia as

well. Skimming is where someone

counterfeits your card uses the

card data to create a phoney

card. That's getting much, much harder in Australia now because

of chip cards. There is an example where the industry has

gone to the trouble of

implementing the new technology

and that is having a good

effect to reduce fraud. Chris

Hamilton, thank you. It's a

pleasure. Some of the other

stories making news in

business. The consumer watchdog

has received 630 complaints and

inquiries about the carbon tax

in its first 10 days. The Australian Competition and

Consumer Commission says it's a

low figure given it received

more than 8,000 general

complaints in the same period.

The ACCC says it's launched 20

formal investigations but it

hasn't identified any

widespread problems at this

stage. A new survey is pointing

to continued soft conditions in

the property market with

industry players predicting a

.7% decline in house prices

over the next year. A report by

the National Australia Bank

says prices fell 2 % in the

June quarter with cheaper

housing in Victoria and New

South Wales and rents down in

South Australia at the top end

and also in Victoria. And the

wine industry may be starting

to pick up again after five

years of falling prices.

According to the marketing authority, Wine Australia, it's

being helped by smaller wine

grape harvests overseas,

particularly in the US, and in

New Zealand. A check of the

markets now with John Milroy

from Macquarie Private Wealth.

Are the unemployment figures

having any impact on the

market? Unemployment has ticked

up to 5.2%. That's since

accelerate ed here. We've seen

the Aussie dollar move back

below 102 as a prospect of

further monetary easings from

the Reserve Bank to try to

combat some of that ongoing

weak innocence a domestic

economy. Keeping investors on

the sidelines is the lack of

lead-in from overnight and the

upcoming reporting season here

due to come through in August. Investors are waiting to get

some hard numbers from some of

those local companies. We're

hearing speculation that some

jobs may be under threat at

Myer? Nothing official from the

company this morning. But

certainly what we know about

the retail sector of course has

been under plenty of pressure

with households continuing to

with households continuing to

do delever age and not willing

to spend. Which other sectors

are in focus today? The banks

are generally better. The

resources the two heavyweights

can't seem to take a trick,

still down again today. The

energy sector got a lift from

the better oil price up about

$2 overnight. And Telstra is

doing a little better here at

all. What about the Telstra

story. Shareholders might get their hands on some of the

money? They've sold their

Telstra Clear business to

Vodafone for $660 million

Australian. That we think gives

an extra excess capital

position of $500 million. They've already indicated they

would like to increase the

dividend in financial year

2014, but investors also

focusing back on the prospect

of a potential share buyback as

well. Stocks just up a touch.

On to Wall Street. Stocks fell

with the release of notes from

last meeting of America's

Central Bank. They seemed to

rule out more economic stimulus

for the time being.

A tree that's fast growing

and contains essential

ingredients for life, Ginny

Stein travelled to the small

village of Diagourou in Niger

to see this very special plant.

Perhaps the fastest growing

tree, the Marenga is

potentially one of the world's

most valuable and potentially

lifesaving plants. If we have

this plant, we can eat all the

bits. In pockets across Saheel

this tree it being planted. Its

nickname as the miracle tree

has never appeared more

true. This time it's very bad,

because there is no food. Even

a normal year, this time is

very difficult. We have to take

- to have a strategy. In this

drought-prone region of Niger

the meringa was first met with

suspicion then embraced. When

we were told that they were

bringing us this new plant, we

didn't know how important it is

because we'd never planted it

before. Of all the foods here,

she says, I like these leaves

the most.

In Diagourou the first rains

have been been welcomed but

there's no guarantee they'll

keep coming or that this year's

crops will grow. This is the

worst of times when food has

run out and new crops just

planted are yet to come

in. Without this tree we would

be suffering. But now that we

have it we're doing OK. Because

now we can cook it for our

children. Without it, we will

be just sitting and hoping. It's supposed to complement

what food people have, but now

it is all that people have to

eat. We can see the changes in

the lives of those who have

this plant. Across Niger the

cities have filled with people

in recent months. They've left

their villages in search of

food. It's plantsing season now

but many can't go home. They've

got nothing to put in the

ground. But in the village of

Diagourou, the miracle tree is

keeping families alive and


A number of organisations

are running appeals for the

people of West Africa. Australian cyclists Cadel

Evans has been unable to make

up any time on the overhaul leader Bradley Wiggins during

stage 10 of the Tour de France.

The riders took on the first

big climb of the tour, the

Grand Colombier. The defending

champion Evans tried to attack

on the descent but was rounded

up by Wiggins and his Sky

team-mates. After 194.5

gruelling kilometres, Thomas

Voeckler gave France its sec

stage win of the race. For the

Frenchman, he has really

reached his limit. Evans

finished in 12th place and

recorded the same time as

Wiggins. He remains 1 minute

and 53 seconds behind the

Englishman in the overall

standings. The Australian

women's soccer team the

Matildas have been beaten 3-0

by Japan in an international

friendly in Tokyo last night.

The world champions Japan

dominated the game as they

prepare for the London

Olympics. The understrength

Matildas didn't qualify for

London and conceded two first-half goals.

Japan scored again in the

58th minute to wrap up the

victory. Australia aez

reputation as the land of the

golden fleece may soon be

changing with demand for fine

wool falling around the world,

more farmers are turning to

wool-free sheep as a cheaper

way of rearing the animals for meat. They may look like

ordinary sheep, but this flock

has been bred to be free of

wool. Their grower says it's a

work in progress, but this is

the future of sheep being bred

for their meat. We don't need

to shear, crutch, mules. Out

here in the bush the Labor is a

big issue. Dawson Bradford sold

his 13,000 merinos almost a

decade ago when the price of

wool plummeted. So he turned to

hairless sheep. With their high

fertility and lower production

costs, there are more

profitable alternative. It's

been a big swing over the last

four or five years with the

people getting disillusiond

with the merino or with the

wool industry. There's still a

big future for the merino sheep

. We're not against that. But

yeah, it's just that labour's

such a big problem for us. And hairless sheep are once again

an attractive option with

demand for fine wool dampened

by the European debt crisis.

Wool-free sheep have been an

important part of the South

African lamb market for the

last decade. Now local farmers

are following their example by producing sheep for their meat

rather than their wool. Those

of us in the wool industry have

come through some very, very

tough times. I can understand

why people look around and say

let's have a slightly easier

life. But draw fon Bradford says breeding hairless sheep

isn't an exact science. He says

he still hasn't perfected the

genetics of creating a totally

hair free sheep but when he

does he expects it will be one

hair loss formula lots of

farmers will want. The largest

pink diamond ever found in

Australia has been unveiled at a Melbourne Museum. At about

the size of a fingernail, the

Argyle pink jubilee weighs in

at more than 8 carats. The

diamond was discovered in the

east Kimberley region in the

north of Western Australia last

year. It was destined for sale

but could only be partially cut

and polished. Mining company

Rio Tinto donateed it to the Melbourne Museum where it's

become part of the permanent

become part of the permanent

collection. It was the Who who

said lucky I die before I get

old. Luckily is won't the

Rolling Stones because they're

celebrating their 50th

anniversary as a professional

rock band. A fledgling version

played their first gig at the

marquee club. Despite many

changes in personnel and many

more visits to Australia they

still lay claim to being the greatest rock band in the

world. The 50th anniversary is

being marked by a photographic

exhibition in London spanning

their career. On to the weather nouch. The satellite shows

cloud passing over South

Australia, Victoria and New South Wales ahead of a cold

front causing potentially

severe thunderstorms and rain.

Some rain cloud is reaching

Tasmania and southern

Queensland, but very little in

the Northern Territory. Cloud

over tropical eastern

Queensland in a develop ing

trough is bringing rain. The

trough will take rain and

thunderstorms across Queensland and northern New South Wales

tomorrow, a front and a low

will bring a colder change with showers to southern New South

Wales, Victoria, Tasmania and South Australia and turn rain

to snow later in the Alps. The forecast:

Apologies for the problems

we had with getting a

connection with our reporter in

Grafton Phillipa McDonald.

That's the news for you now on

a day on which Australia's unemployment rate edged higher

with analysts predicting it

will keep heading in that

direction there is continuous

news on ABC News 24 and there's

also news on-line. Our

negotiation full bulletin on

ABC1 is at 3pm. I'm Ros Childs.

Thanks for joining us. Have a great afternoon. Closed Captions by CSI