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Hundreds of jobs to go when

Caltex closes its Sydney oil

refinery. This is a tough day

indeed. For those working

people, Caltex has said that

it's in a position to fund all

of their entitlements. In

London, North Korea feels

insulted and Australian

athletes keep squabbling. Why

wouldn't you provisionally

select me, nominate me to see

how I was going closer towards

the games? It makes sense. But

obviously the selectors don't

have any commonsense. My

suggestion would be that you

get into the village, you put

your head down, your bum up and

you concentrate on your job. A

killer whale's plaything.

Footage surfaces of the trainer

lucky to escape with just cuts.

And life on the seedy side.

Squalor within the shadows of

Olympic HQ.

Hello. Welcome to ABC News

across Australia. I'm Ros Childs. On the local share

market, most sectors are up.

Qantas has surged on reports of a new alliance.

More finance later in the

bulletin. Many in the industry

knew it was coming. Now Caltex

has confirmed plans to close

its sprawling Kurnell refinery

in Sydney. 350 jobs will go

when the plant shuts down in

two years' time. The move comes

after a year-long review of the

company's operations across

Australia. Its other refinery

in Brisbane will city open. But

the Sydney decision means

Australia will have to rely

more on sourcing refined fuels

from overseas. Reporter Ben

Worsley is at Caltex HQ in

Sydney. Ben, what reasons has

Caltex given for closing

Kurnell? In short, Col text

says its Kurnell refinery is

too old, too small, too

inefficient and therefore, too

expensive. And it can't compete

with the much larger, much more

modern refineries through

operating throughout Asia. It

has in fact according to Caltex

been suffering significant

losses for some time. Add to

that the high Australian dollar

and shrinking margins within

this sector of the economy more

broadly and Caltex says it had

no alternative but to make this

decision. Interestingly, it is

at pains to point out that the

introduction of a carbon price

in Australia has had no impact,

no influence on this decision

whatsoever. Now, the CEO of

Caltex Julian Segal has just

finished up a press conference

here in Sydney. He describes

this decision as very difficult

but very necessary. We're

competing with refineries that

have been built in the last few

years over the region, in

Korea, India or Singapore that

are significantly better. Then

the question of course is: can

we economically invest in a

similar fashion in Australia?

And given the global and regional factors, some of them

I mentioned to you, it is

simply not economical for such

investment to occur in Australia. So Ben what's been

the reaction to the news? The

union for its part describes

this decision as a kick in the

guts to the work force. Paul

Howes the head of the AWU has

heavily criticised Caltex for

what he says is a lack of

consultation. The workers are only being briefed on this

decision at the Kurnell plant

this morning. In fact, it's as

I understand still going. But

in saying that, as you

mentioned earlier, Caltex has

just finished a year-long

review of its refining

operations. And many people did

see this coming. This was an

expected move. Obviously the

amount of job losses wasn't

known until this morning. Now,

the Prime Minister Julia

Gillard has talked to this

decision this morning. She made

two points. More broadly, she

insists that despite it seems

these job losses being in the

headlines almost every day that

the Australian economy remains

sound and more specific to this

case, she wants to ensure that

the workers at Caltex get the

entitlements that they

deserve. For those working

people, Caltex has said that

it's in a position to fund all

of their entitlements . Caltex

has said that it will provide

support for redeployment

options for some. We will

certainly work alongside Caltex

with our employment services to

provide support to these people

to get the next opportunity for

them. Ben, will there be any

knock-on impact for consumers

in terms of fuel costs?

Briefly? Well t seems not.

Caltex will continue refining

fuel in Australia at Lytton in

Queensland and it's signed a

major import deal with Chevron,

its 50% owner at market prices

and fuel prices are obviously

set with the fluctuations of

global fuel prices. So it seems

the impact immediately is with

the work force at Caltex, not

necessarily at the bowser.

Ben, thank you. Still stung by

the failure of yesterday's COAG

meeting the Prime Minister is

accusing two premiers of

putting politics ahead of the

interests of the disabled. New South Wales and Victoria were

among the States which refused

to agree on taking part in

national trials of the

disability insurance scheme.

Julia Gillard says politics was

at play and both States should

get on with joining the scheme.

From Canberra, Kerryn Binnie

reports. At a school for

children with disabilities, the

Prime Minister was talking up

the three Labor jurisdictions

taking part in a National Disability Insurance Scheme

trial. We will get on with

building this scheme. Make no

mistake. We hit the go button yesterday. Liberal States held

out at yesterday's COAG

meeting, including the two

biggest, New South Wales and

Victoria. The Prime Minister's

accused them of running

interference. I am concerned

that politics has got in the

way here. I am not going to let

politics get in the way.

Victoria says it's an extra $40

million over four years that's

getting in the way. We have to

understand that whatever we do

now will lead to expectations

about funding in the future.

And Ted Ballieu said the deal

was altered. We had different

figures put to us during the

day. There arm number of

figures put to us plus some

additional conditions. You

can't walk in front of a TV

camera and put your hand on

the National Disability your heart and say I support

Insurance Scheme and then when

it comes to actually supporting

it, actually turning your words

into deeds, you say no. With

each side of politics blaming

each other, there's still a

chance New South Wales and

Victoria will sign up to the

trial. Ministers from those

States are meeting to discuss

options. Searching for a breakthrough. I would hope

that's the case. And we are

looking to have those further

discussions. My door is still

open to other premiers. If they

want to host a launch site in

their state. So far, the

States and Commonwealth aren't

budging. The ABC has made contact with a boat thought to

be carrying 60 asylum seekers

stranded in the waters north

west of Bali. Indonesian rescue

authorities called off a search

for the boat last night but a

man on board managed to give

the ABC's Indonesia

correspondent George Roberts basically GPS coordinates.

George Roberts is on the line

now. George, what's the latest

on the location of this boat

and the safety of the people on

board? As has been the case

throughout this saga overnight,

it's been very difficult to get

exact information about where

they are at specific times.

Overnight they gave two

different conflicting GPS

coordinates, and whether it was

because they didn't understand

GPS or they couldn't operate

the simple GPS they had, those coordinates were so far apart

that it confused Indonesian

authorities trying to find them

who were struggling in the dark

to be able to reach these

people. We spoke to them about

a couple of hours ago. That was

the half the time we made

contact and since then we've

been unable to reach them. We

were able to put them in touch

with the Indonesian authority

boat directly. We just received

a text message saying we have

located them, but the

authorities don't have the

equipment to get them off the

boat so they've called in the

navy. We understand it's still

in that rough location

somewhere north-north-west of

the resort island of Bali,

somewhere in the vicinity of

another island called Madura.

They have been floating adrift

overnight, struggling in winds

and rough seas and telling us

that they were taking on water.

Now, this also conflicts with a

conversation I had with

authoritys in Indonesia a short

time ago who said they were

still searching. So this is the

nature of the way these things

works. It seems there's even

difficulty within the

Indonesian search authorities

to find out exactly what's

going on. But it seems they

have located the boat. The

Immigration Minister Chris

Bowen earlier today also spoke

about just how difficult some

of these search and rescue

operations are. Obviously these

are always difficult

situations. There's always a

lack of information. This is a

long way away. And it's in the

middle of high seas. So it is

difficult to get accurate

information in real-time. But I

do believe the Australian

authorities and the Indonesian

authorities are working well

together. And that everything

that could be being done is

being done. So George, was the

man able to tell you about

who's on board and why they're

trying to get to Australia, briefly? Look, they didn't say their reasons for getting to Australia, but they certainly

expressed strongly their desire

to get there. Even at one

point, they expressed a lack of

willingness to be rescued by

Indonesian authorities but as

the night other on that seemed

to wear them down and they were

very keen in the early hours of

this morning to be reached by

authorities. As far as who's on

board, we know that there are a

number of children, there are

somewhere between 50 and 70

people. There are a number

children and they only had had about 15 lifejackets. There are

some women on board. We've been

speaking to people who are

Iranian, speaking Farsi and

also some people who appear to

be speaking Arabic. We

understand they're from Iraq. George, thank you. The

Australian Olympic team can't

seem to resolve a row about

athlete selection. Relay

runners John Steffensen and

Josh Ross have hit out at

selectors for overlooking them

in their individual events. But the Olympics chief has told

them to pull their heads in.

Mary Gearin reports from

London. This was supposed to be

a way for two disgruntled

athletes to put their issues

behind them. But just days

before Australia's Olympic

campaign set sail, it looked

like mutiny. So why wouldn't

you provisionally select me

nominate me to see how I was

going closer towards the games?

It only makes sense. But

obviously the selectors don't

have any commonsense. I

stand by everything that I said

about my decision not to run

the individual 400. Which I

believe is quite evident is

wrong on many levels. They're

upset they weren't given the

chance to run individual events

with their B qualifying times

although one junior world

champion was selected that way.

Earlier in the day the team

boss showed he was not impressed by the continuing drama. My suggestion would be that you get into the village,

you put your head down, your

bum up and concentrate on your

job. I'm disappointed with

Nick Green's comments in the

media but I'm getting used to

the fact that speakingth truth

is too much for some. In a

twist, the head coach was

standing alongside both

athletes. I'm comfortable with

them having their opinion. As I

can have an opinion. As our

federation has an opinion.

Meanwhile, there is a happier

Australian lot. The five men's

road cyclists say their team is

well bonded and confident. I

can definitely say this is the best Team Australia have ever

fielded going into the men's

road race. It's just a few days

since all these riders completed the gruelling three-week Tour de France. So they've come to the pastoral

surrounds of Surrey to escape

the distractions of the

village, to familiarise

themselves with a part of the

course and to relax though not

too much. It's a really, really

fine line we're walking of

doing enough that you can still

recover but not so little that

your body just shuts down.

It's been a tricky day for a lot of people.

Olympic organisers have

already engaged in some crisis

management. Nine track and

field athletes have failed drug

tests. Three Russians, two

Ukrainan, one Greek and one Turkish athlete have been

banned from competing. If

someone thinks they're home

free in 15 days' time from some

form of cheating here in

London, then they should hold

their breath for at least eight

years. The North Korean

woman's soccer team walked off

in protest after the flag of

South Korea appeared on the

screen. The players were

persuaded to return and

organisers have since

apologised. In some good news

for the host nation, if got off

to a winning start. Great

Britain beat New Zealand 1-0 in

the opening game of the women's football tournament. But organisers were left concerned

over the many number of empty

seats in the stadium. Airport security has also been found

wanting in Britain after an

11-year-old boy managed to

board a flight to Rome without

a passport, ticket or boarding

pass. It was an embarrassment

for the government on the eve

of the Olympic Games and on a

day that also brought bad news

on the economic front with

official figures revealing the

worst double-dip recession in

more than 50 years. The

schoolboy was out shopping with

his mother in Manchester when

he slipped away to the nearby

airport. He strolled through

the scanners but then managed

to evade five security checks

before boarding a flight to

Rome. Staff who failed to

notice the 11-year-old have

been suspended. He was

eventually discovered by fellow

passengers. The boy was mixed

in with a large number of children and other family

members. Clearly our staff

didn't count the right number

of children verse us the right

number of boarding cards. On

the eve of the games border

control stuff at airports

across the country have

abandoned threats to strike

over job cuts. Some relief for

the government under fire over

the introduction of the Olympic

road network, a 50 kilometre

stretch for the exclusive use

of officials, athletes and

VIPs. We've got to get the

athletes and the officials to

their events on time. We put in

the Olympic route network this

morning. Some. Games lanes are operational, others aren't,

which is right because the volume of the Olympic traffic

still has to go up. Private

cars and taxis face fines of

?130 if they stray onto the

dedicated road network in London. Plenty of nice hotels

in Stratford that the Olympic

delegates could've stayed in.

They didn't all have to stay in

Park Lane so their wives and

mistress Kos go shopping in

Knightsbridge. With all eyes on

Britain in the heed-up to the

games it was a day the

government might have preferred

visitors look the other way.

Coalition members are calling

on the Prime Minister to

replace his Chancellor, after

official figures revealed the

worst double-dip recession in

more than 50 years. The manufacturing Workers

Union says car companies need

to reduce the cars they're

produceing to help salvage the

industry. It comes after CMI

Industrial announced it was

shedding 119 jobs at its

Melbourne plant. Receivers are

still searching for a I buyer

for CMI's Ballarat factory.

It's another blow after Ford

announced last week more than

400 workers will lose their

jobs. We're working with our

members and will be over the

coming months to try to assist

them into other employment, but the Broadmeadows area for

example will have significant

unemployment over the next few

months. It will be very

difficult to find jobs. The

Federal Government says it will

fast track emergency payments

but the union is calling on all

levels of government to buy

Australian-made cars. Back to

the Olympics now. As well as

the games themselves the host

city is under scrutiny. A harsh

light is being directed at many

aspects of London and slum

house something one more

problems that's come to the

attention of authorities.

Billions of dollars have been

pumped into East London, but

many of the city's poorest

struggle to find safe, decent accommodation. East London is

putting on its best face. But

the slums are still here.

Hello? The more council

inspectors look, the more they

find. Open up for me? This is

a shed with a bed, a shower,

two cooking rings that don't

work, and no planning

permission. If I had a bit more

time to hook I don't think I

would've bought this outhouse

but it's quite a lot of money

for a glorified shed really. How much are you

paying? I pay ?650 a

month. This is really bad. This should be a proper

staircase. Inside the main

house more unlawful rooms

rented out. Like this front

door in the roof. A couple

paying ?340 a month to live in

the loft. You can't normally

live in a loft space like this,

'cause there's a fire in the

main house. You would die.

People live in places like in

because their work is in London

and they're low paid. This is

all they can afford. But there

are so many slum landlords here

in East London, we decide to

investigate another. We need to

make sure the house is safe for

you. In this property, there

are dangerously exposed

wires. This is all live wiring.

So any child or any person put their fingers in there, there

is a good chance they'd get a

full 230 volt shock which is

life threatening. It is

illegal to leave a fusebox in

this state. And the inspectors

think this could be sewage. But

the council says there are

thousands of substandard

properties here. Slums in the

shadow of the Olympics. Media

reports today say Qantas is

edging closer to a partnership

with the world's largest

airline em raimts. The deal

would see Qantas fly to Dubai

where Emirates will take

scbraers on to Europe, Middle

East and Africa. Regardless of

any arrangement,. Prime

Minister says Qantas will

remain Australian. I'm not

going to respond to speculation

about such arrangements. But I

can assure people we have

special legislation about

Qantas, special legislation

because of its meaning for our

nation and special legislation

to keep it in Madge - majority

Australian ownership. Airline

executives are actively

pursuing a deal but there are

many sticking points. Superannuation delivered a

positive return last financial

year. The median balanced

option returned just .4 over

three years. It was more than

6% over five years it was

virtually flat. And sales of

riding crops have reportedly

increased at saddleries thanks

to the top selling erotic book

'Fifty Shades Of Grey'. The

book has sex encounters that

feature the use of a riding

crop. A check now of the

markets with Martin Lakos from

Macquarie Private Wealth. So

there's a little more optimism

out there today? Good morning.

The Aussie market is up about

14 or 15 points following a

better lead out of the US and

Europe. On the European front,

you have already run the story

in regards to the UK recession.

That quarterly GDP number down

.7. That's the third quarter in

a row of negative growth this

quarter was weaker than

expected, largely put down as

the Queen's jubilee with a slowdown in manufacturing

activity and also the very two

wet months through summer, June

and July. In the US, new home

sales in the US were down from

last month. Down about 16,000.

But despite that, the US market

up about 58 points. And we're

seeing a reasonable gain across

most sectors in the Aussie

market this morning.

Wesfarmers has been releasing

sales figures for its Coles

stores. How were they? Solid

numbers. Coles food and liquor

up 4.6%. Fuel up by 1.3 . And

flatter results out of target

and Officeworks but the Bunnings hardware business

doing very well, also up about

4.6%. Despite the good numbers,

the Wesfarmers stocks are only

up about 2 cents to $32. To

other sectors today? Caltex

announced at the AGM they're

doing a view as a result of

which they'll close the Kurnell

refinery and turn it into an import base this will cost

about $680 million, probably

larger than expected. The stock

is up about 22 c on the back of

that you mention the

speculation of Qantas tying

itself up with Emirates. It's

up 7% on the back of that

because it will lower their

international costs and give

them access to growth routes

such as Middle East and

Africa. Thank you, Martin. To

Wall Street. A mixed result,

strong profit reports from

Boeing and caterpillar lifted the market.

The Australian Human Rights

Commission has criticised the government's system of mandatory indefinite

immigration detention, saying it breaches our international

human rights obligations and

has a devastating human impact.

Instead, the commission says wherever possible all asylum

seekers should be placed in the community. Catherine Branson is

the President of the un Human

Rights Commission. When we've

been to places of mandatory immigration detention they're

often remote places, where

people are held for indefinite

times. We see the obvious signs

of mental ill health. And

distress. So on this occasion,

when we were visiting people

who were living in the

community, who've come out of

places of mandatory detention,

we were delighted to see how

much better they're faring in

the community. But in many

cases it's not possible for

people, for reasons of possible

criminality or reasons of

security, not possible for

people to go into the

community. Under those sorts of

circumstances, what should the

priorities be for people who

have to be kept in detention,

what needs to change? The

commission has never called for

those who are on a basis of a

proper assessment regarded as

being a risk to live with us in

the community. But our concern

is that wol cohorts of people

are being held in mandatory

immigration detention without

their being individually

assessed to see if they are a risk. You recognise in the report that there has been a

move by the Australian

Government to get more people

into the community. But do

changes need to be made in the

way asylum applicants are

treated once there? I think

it's important that people

living in the community can

live as normal a life as

possible. And that they maintain their resilience to

look after themselves and their

families. For those reasons, if

people have the capacity to

work it's desirable that they

be able to work. If they have

the capacity to study and want

to study, it's desirable that

they can do that. If many

asylum seekers are sent into

the community under those

circumstances, does that remove

any deterrent to making a

perilous trip to Australia, in

that you can expect a pretty

good life once you're here

while your application is being processed? There's absolutely

no evidence that mandatory

detention is a deterrent. So

it's not humanitarian in its

approach. And we know that it appears to be harming people.

So there is little reason, I think, to think that

Australia's national interest

is promoted by mandatory

immigration detention.

Catherine Branson, thank

you. Thank you, Ros. A quick

look at other stories making

news around the world. Burma's

democracy leader Aung San Suu

Kyi has made her first speech

to Parliament since winning a

seat in a historic April

by-election. She spoke in

support of amend and enact laws protecting the rights of

different ethnic groups in the country. North Korea says its

new young leader Kim Jong-Un is

married. The announcement made

on state television ends weeks

of speculation about a woman called Ree Sol Jooh seen accompanying him on recent

public events. And NASA

scientists have been talking about their hopes for the

latest Mars mission, just a few

days before the Mars rover is

due to land on the Red Planet.

Nicknamed 'Curiosity' the rover

is to look for places that

could have hosted and preserved life. Remarkable pictures have

just emerged showing a two tonne killer whale turning on

its trainer at Sea World in the

United States. The 15-minute

video obtained under freedom of

information rules captures the

harrowing ordeal that happened

back in 2006. Another trainer

was killed during a live

performance at Sea World in

Florida in 2010. This latest

video was used in a hearing

into safety issues, but has

only now been made public. It's

an under water nightmare. Ken

Peters had been working with

this whale for more than a

decade when the female grabbed

his feet, dragging him under. It wasn't like she was

biting down. If she would've,

she would've bit his foot off.

It's one of those things that

the animal understood that she

was pulling him under

water. But even the most

experienced trainer that's no

match for the brute force of a

killer whale. Ken Peters was

tossed about like a ragdoll,

pinned under water for a full

minute. Whales in captivity are

taught that humans are fragile.

Here, she seems to be playing a

deadly game. Bringing him to

the surface before pulling him

under not once, but three more

times. Well, if she wanted to

kill him she would've killed

him. It's a killer whale.

They're the top predator in the

ocean. These whales hunting for

seals in the wild play with

their prey. Flinging them

metres into the air. But the

trainer knows exactly what to

do. Ken Peters caresses and

even coos to the whale. We are

taught to remain calm with the animals. If you get excited the

animal's going to get excited.

That's why others don't jump in

to help. Eventually, she lets

go. Peters eases down her back

and swims to safety. In a

statement, Sea World says, this

video clearly shows the

trainer's composure and the

skilful execution of an

emergency response plan.

Remarkably, Ken Peters suffered

only a fractured foot and

returned to work the next day.

To the weather now. The

satellite shows cloud crossing

the south-east ahead of a cold

front. Cloud reforming over western Victoria and South

Australia in a burst of cold

strong winds. And cloud streaming over the west. A

front and low should send brisk

winds and showers across New South Wales and Victoria and

snow on the alps. The high

should cause winds to ease and

most showers to clear from

Tasmania, South Australia and

southern WA, and deliver a cold

morning and mostly sunny day to

sen tramed and Western

Australia. And around the


Back to the Stock Exchange for a final check of the


That's the news for now

there's continuous news on ABC

News 24 and there's also news

on-line. Our next full bull tip

on ABC1 is at 7pm. I'm Ros

Childs. Have a great afternoon. Closed Captions by CSI