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Australian Agenda -

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Good afternoon, welcome to the program, I'm David

Speers. It was former

leaders who took the

spotlight today over shadowing incumbents who kept

a relatively low profile by

contrast. Malcolm Turnbull, Kevin Rudd and Bill Clinton

were dominating the news.

Each for different reasons and each have received very different reviews. Coming

up, we will look at what they

have all been up to, and in

particular, Malcolm Turnbull's critique of the

current political climate.

Our guests this afternoon is

the Greens leader, Christine

Milne, things have turned

rather ugly between the Labor and the Greens this week

after yesterday's announcement that it has

scrapped a key plank of its

carbon tax tack paj. What are the Greens going to do

about it? All of that coming

up, first a check of today's

top stories. Qantas is

announced a historic deal

with Emirates that will see massive changes. The airline

will no longer fly to London

via Singapore, although the

deal is subject to ACCC

approval. Qantas boss Alan

Joyce has been meeting with

his counterpart at Emirates,

Tim Clark in Sydney, since

Tuesday night. Their talks

continued last night and

today filly an announcement

Australian have aiation on the worse kept secret in

ap Qantas alone can't take passengers everywhere, but

together Qantas and Emirates can take Australians just

about anywhere with style.

This is one of the largest

transitions in the airline's

history and this is how the

Qantas map will now look.

The kangaroo hop drops down

Singapore for Australians who on dub bye instead of on

are travelling to Europe or

the UK. A major restructure

of its Asian network as

Qantas cuts ties with British

Airways. That is a massive

development for aviation and

perhaps a sign where

Australia sees its business

future as well. Alan Joyce

says it is great for

customers but it is even better for the company's

bottom line. Qantas

International has been losing

half a billion dollars a year, partly because

Australia is at the end of

the line, New Zealand is

flown via to get anywhere, passengers will have more

access to lounges and

Emirates has a strong network

of routes from dub bye into

Europe and the UK. For us,

it means just one stop to 33

European destinations. This

deal is all about our

customers, but it is also

about creating a sustainable

future for Qantas

outlook for jobs in the International. But the

international division isn't

looking to good. Qantas

really had no choice. Over

the next five to 10 years, we

will see a large reduction in

the number of airlines

operating and this just

allows Qantas to so lidfy

their position in the

Australian and Asian market.

So there's a sense of

inevitability about this? Absolutely. I think right

around the world we will see

fewer and fewer airlines. This has been a major theme

over the last 15 years and I

can't see any reason for that

to stop continuing at the

moment. Qantas turns into a

destination airline so hub player rather than a

passengers will fly to Dubai from Australia on Qantas and

then the Emirates world is

literally their oyster, similar to the Qantas

American's airline tie up in

the United States. To some

breaking news, former Labor

NSW MP car ren-Pala were, zno

has been sentenced in a court

this morning for wrausting

payments. Good afternoon.

Yes, former NSW MP has been

sentenced to 18 months custodial sentence with

parole after 12 months.

52-year-old had pleaded

guilty for signing 17 release

forms for her staff members

which contained false

information in 2006 and in

2007. She legally attained

over $4,000 of tax payers

money in the scheme. She

also admitted to giving false

and misleading evidence for the independent commission

against corruption when she

was investigated. In court,

she broke down in tears as

the sentence was read out.

She claims she had been under

stress from one of her staff

members and that that was the

reason for her deceptive

behaviour. That staff member

later reported her to ITAC

and the claims against him

though, were never proven.

She also claimed she had

signed the forms without

verifying them. She resigned

from Parliament in 2010 in

the wake of the allegations

and has since been teaching

English to refugee children. The court today heard though she has been banned from

holding a job with any school

or education facility in NSW.

It is yet to be seen whether

the custodial sentence will

be served in jail or at home

detention. Democrats have

turned to a hero of the past,

Bill Clinton, to boost the reelection prospects of Barack Obama. Speaking at

the democratic national

convention in chart chart the

former President officially

nominated Barack Obama as the

President candidate. I want

to nominate a man who is cool

on the outside. But who

burns for America on the

inside. Mr Clinton said

President Obama has laid the

foundation for a more modern, more well balanced economy

after inheriting a mess when

he took office. His approach

embodies the values, the

ideas and the direction

America has to take to build

the 21st century version of

the American dream. A nation

of shared opportunities. Shared responsibilities.

Shared prosperity. A shared sense of community.

President Obama will deliver

his speech at the convention

tomorrow. The number of

people looking for work has

defied predictions and fallen

to a three month low. The

unemployment rate coming in

at 5.1% despite the total

number of jobs falling by

9,000. Australia, despite a

softening labour market, is

still doing better than most

of the world. We have seen

participation rate. That is an easing in the

a number of people who are seeking to work. Australia

is still ranked sixth in the

world for the number of

people as a proportion of the

number of adults in the

population who are seeking

work. The opposition points

to an increase in strike days

with 101,000 working days

lost to industrial action in

the June quarter. ANZ

customers have won a High

Court bid to challenge the

legality of a wild range of

bank fees. Over 38,000

customers are taking part in

the legal battle which is

part of Australia's biggest

class action. Customers

claim they have paid $223

million in unfair bank fees

and that it should be

refunded. Lawyers argue the

penalties being charged by

the ANZ were totally disproportionate to any

damage done to the bank. The

High Court has accepted an expanded doctrine of

penalties which will allow us

to go back to the Federal

Court and argue that these

exception fees, over limit

fees, honour and dishonour

fees, are excessive and extravagant. We have consistently maintain that while we concede these fees

were unpopular, we believe

they were a reasonable fee

for service. And indeed

today's judgment, as we

understand it, has expressly

acknowledged that this may be

the case. ANZ confirmed it

will continue to defend the

class action as the case

returns to the Federal Court.

A young Australian man has avoided serving jail term

over a deadly jet ski

accident in Hawaii. 20-year-old Tyson Dagley was

facing up to a year behind

bars after accidentally

hitting and killing

16-year-old California

Kristen Fonseca. A judge has

deferred the charges of third degree negligent homicide

based on Tyson's plea of no

contest. First of all, I am

deeply sorry for what I have

done. I never meant any

harm. And second, I pray

every day, morning and night,

for Kristen and her family.

That means that he has

escaped jail and will be

allowed to return to

Australia. His lawyer says

he just wants to get on with

his life. He wants to return

to Australia to be with

friends, to be with family

and to get back to work and

to try to continue on with

his life. He is a

20-year-old boy. The

victim's family has been

awarded $55,000 in

compensation. The Australian

Navy's three new air warfare

destroyers will now arrive a

year later than planned

following a second

significant delay to the $8

billion project. In 2007,

the Government said the

Hobart ship would arrive in

late 2014 Brisbane in 2016

and to Sydney in mid 2017.

The delivery of the three

ships has now been pushed

back between one and two

years which will mean the

Government avoids spending

about $100 million in the

short-term. But the Defence

Minister says the decision

was made to ensure those

building the ships have a

steady stream of work until

the next major defence

project. In terms of budget

implication, it pushes to the

right about $100 million in

the forward estimate year.

So of an $8 billion project,

it is a relatively small

amount. But the key outcome,

so far as we are concerned,

is that smooth and steady

flow of work. The three

advance war ships will be

able to escort other vessel

and defend against air and missile attacks. A four-year-old girl has been

found alive inside a car

involved in a fatal shooting

incident in the French Alps.

Four people were shot dead, three people were inside that

car, and a cyclist was found

nearby. 60 forensic officers worked into the evening at

the scene of the shooting,

the car park in woods, a

tourist magnet in the French

Alps. A cyclist discovered

the bodies of a man and two

women in a British registered

BMW four by four. The car

was riddled with bullets.

Close by, a young girl was

also shot a number of times.

At first, it was thought she

too was dead. But she was

taken by helicopter to a

hospital where she is

critically ill. Also shot

dead next to the car, a man who had been riding his bike

when the attack happened. A

motive for the attack is

unclear. Dozens of bullet

casings were recovered at the

scene, described by police at

characteristic of an

assassination. TRANSLATION:

There is a crime scene can

with several dead. And we

unfortunately see more scenes

like this in films than real

life. There are at least

four, if not five victims

killed by bullets. It is an

extremely serious case on a

human level. The area close

to the Swiss border is

renowned holiday beauty spot. Many Britains are mooj those

that visit this region but

local journalists say it is

not only British holiday

makers who spend time here.

A lot of people are coming

here to spend holidays near

the lake because we have a

beautiful landscape, a lot of

English people are living

here because they love the

place. With the crime scene

secure, investigators spent

the night examining the

vehicle and the surrounding

area for clues to this

baffling murder. And in

sport, Sydney has assigned Italian football star Alessandro Del Piero on a

multi million dollar deal for

the next two seasons. The

World Cup winner confirms

Sydney had beaten a range of

European clubs for his

services. And now the

weekend weather. Cold, wet

and windy in the south-east,

bit of a turn around, mostly

sunny conditions elsewhere.

Back to David Speers and PM

Agenda. Thank you. After

the break, our guests, the

Greens leader, Christine

Milne, stay with us.

Into you're watching PM

Agenda. It's often said we

don't do a very good job in Australia, respecting our

former leaders. They attract

nothing like the reverence

former Presidents do in the

United States for example. Now, perhaps that is because

Australian leaders are

normally dumped by their

party, that is how they go,

very few go of their own

choosing. Unlike the United

States where former

Presidents usually leave

office because they are two

term limit is up. Whatever

the reason, the stark

difference in this reverence

for former leaders was on

full show today. Here in

Australia, we are in an

unusual situation with two

former leaders still sitting

in the Parliament and not

much loved by their

colleagues, it must be said.

One is Malcolm Turnbull who

sits on the Coalition front

bench and for the most part

toes the party line but in a

speech overnight, he has laid

out the problems as he sees them with the current political climate and along

the way, has given an unmistakable critique of the

man who replaced him, Tony

Abbott, focussing too narrowly on the carbon tax

and on boat arrivals. It is

not all he said and we will

look a little later in the

show at what he did say. We will be discussing this with our panel. And whether he

did make some valid points about whether question time

works or not. Meanwhile, on

the Labor side, former Prime

Minister Kevin Rudd has done

a pretty good job since the February leadership challenge

of keeping his head down.

But in the last few weeks,

there has been a gradual

reemergence. He has given

speeches, tweeted a lot, and

today he did something he

used to do with powerful

effect, a street walk,

through Brisbane's Queen.

The actions of both Kevin

Rudd and malkm Turnbull over

the last 24 hours haven't

gone down too well with some

of their colleagues. Meanwhile in the United

States, it has been a very different reception for another former leader, Bill

Clinton, for all of his

faults, he still remains a

favourite son of the

democratic party. He took to

the stage to formally

nominate Barack Obama today

for reelection as President.

The crowd absolutely lapped

it up. We will have more on

these former leaders a little

later in the program.

Meanwhile, the bad blood has

continued today between Labor

and the Greens over the Government's decision to

scrap a key plank of its

carbon tax package. As we

discussed yesterday, the

Government will no longer pay

power companies to shut down

brown coal fire powered generators because it

couldn't agree on a price

with the companies. The

Greens are outraged, they

call this a breach of faith.

In a moment, we will be

talking to Christine Milne.

First, here was Climate

Change Minister Greg Combet

strongly denying a broken

do. The Greens are being disengenous about this point,

so let me say this. The

Greens signed off on the deal

along with the independents,

Mr Windsor and Mr Oakeshott,

that the Government has been

implementing. We have back

flipped on nothing. We have

simply implemented what we

committed to do and we

committed to go into good

faith negotiations with the

brown coal electricity

generators if they wished to

negotiate with us for the

potential closure, if it was

value for money, of up to

2,000 megawatts of generating

capacity. Now, as it turns

out, we couldn't agree on a

price. But the Government has implemented its deal and

there is no backflip here. Well, the Greens leader Christine Milne is in the

west this week, she joins me

now live from Perth. Thank

you for your time. Can we

start by clearing this up. The agreement the Greens did

with the Government, did it

state that the Government

would go into good faith

negotiations with the power companies for the potential

closure of these generators

only if it was value for

money? David, it says very

clearly in the agreement that

it was the closure of up to

2,000 megawatts but you have

to understand the context in

which the agreement was

negotiated. We had a very

tense weekend in Canberra in the middle of the

negotiations where I argued

strongly that the $5.5

billion worth of compensation

to the coal companies was way

too much, that it would keep

the coal industry generators

operating for a long time,

and that we should be

reducing that compensation.

In the course of those

negotiations, the 2,000

megawatts of the dirtiest

brown coal closing was part

of that agreement. So it was

that idea that, okay, the

Government wouldn't move on

the compensation, so we got

the contracts for closure as

part of accelerating the transition out of coal

generation, so it is in the

spirit of that that we are

talking here and the other thing is that Minister

Ferguson did not have one single meeting with the Greens during this whole

process. Now, you would

think if they were serious

about this norgs and serious

about the agreement that they

entered into with the Greens, they would have sat down with

the modelling, with the

figures, said what was going

on and then asked what we

thought could be done and, of

course, part of that would be

if the equity value has

increased so much, and they

are so confident their

profitability over time, then

we would have been arguing

strongly to reduce their

compensation. Okay, just to

break this down, getting back

to that original question.

Was the agreement that they would only pay the power

companies if there was value

for money? I can't remember

the exact words David and I

haven't looked it up today.

But we certainly knew it was

the potential closure of

2,000 megawatts of brown coal

but the spirit of the thing

was that that would be pursued very vigorously and

one of the other issues I

have with it is that with the

linking with the EU, it would

have been appropriate for

Minister Ferguson to give the

coal companies three or four

weeks after that announcement to recalibrate their figures.

Because they would have been

working on a carbon price in

2018 being the cheap CER

price and now the price in

2018 will be the European price. Are you saying the

power companies have got it

wrong? I think they have got

it wrong. And where we are

now going to be is where we

would have had a carefully

planned, if you like,

transition out of coalfied

generation, now we will have

a situation where I am quite

convinced that there will be

significant dislocation when

the figures are such that the companies can't meet their

liability and still be

viable. You said the spirit

of the agreement was that the Government would shut down

these power generators. In

return for your support for

the $5.5 billion worth of

compensation for the power

generators. The spirit of

the agreement was one thing.

Was it written down, is there a document somewhere that

says this is a broken deal?

Well, there is no signed

deal. The Greens actually

wanted to have a signed deal

but the Government refused to

sit and actually put

signatures on the paper. But it was certainly an agreement. So just to be

clear, you wanted this in writing and the Government

said no? No, no, there is an

agreement but the signatures

on the piece of paper don't

exist but there was a

document that we all agreed

to absolutely and that it

does say the potential

closure of up to 2,000

megawatts is in the - the potential is in the

document. When you talk

about that weekend where were

you grappling with all of this, this was a pretty

important element for you, for your support and in

particular for your $5.5

billion hand outs to the

power companies, this has now

gone, the Government strapped

it and without any

consultation with you, where

does that leave your support

for the carbon tax package?

It is still there David,

absolutely, because with an emissions trading scheme, the

important thing is the

environmental outcome which

the cap on emissions remains

and that will drive emissions

reductions. But is this a

weaker package than what you

signed up for? Well, it

won't be as fast as what we

signed up for because if you

had bought out some of those

brown coal generators, you

would be moving out of brown coal faster. But I think

what you can say is that it doesn't alter the environmental outcome but

what it is, is a $5.5 billion

waste of money. Can I ask

you we have seen the Greens

angered by various things the

Government has done, whether

it is on asylum seekers,

whether it is watering down

the mining tax, whether it is

this move to scrap this part

of the carbon tax package.

Every time they do something

like this, the Greens express

anger but you are not going

to break your minority

Government deal. They are

walking all over you, aren't

they? No, we entered into an

agreement to give confidence

and supply to Prime Minister

Gillard in order to deliver

carbon pricing in Australia,

in order to deliver denti

care for example. The

parliamentary budget office,

constitutional recognition for indigenous people and

local Government. There are

a range of things in the agreement, most of which now have now been delivered and

of course we have differences of opinion with the

Government, but I have to say Tony Abbott's position on

almost all of these things is

much worse. So there is

nothing that would force you

to pull the pin on this

agreement? There is no

measure of Government neglect

to towards what the Greens

have signed up for that is

going to force your hand

here? David, I'm not going

to enter into what hypothetical situations may

occur. But certainly from my

point of view, we committed confidence and supply on the

basis of an agreement. Most

of those things have now been

delivered by the Gillard Government and I look across

the chamber and think about

Tony Abbott and I see that things would be much worse,

whether it is on education,

whether it is on disability,

certainly on denti care. You

know, whichever way you look

at it, we have delivered carbon pricing in Australia

and emissions trading scheme,

and Tony Abbott continues to think that climate change is

crap. So, you know, you have

got to think very carefully

about this. A couple of

other issues if I can, Cubbie

Station, an unlikely alliance

it seems between the Greens

and the nationals opposing

the foreign sale of this giant cotton station. What concerns you most about

this? Well, I just think it

was a great opportunity for

the Government to actually

get that water back into the

system. The station was in administration, it would have

been an opportunity for the

Government to go in and

secure those water licences.

We have always asked serious

questions about the probative

of a lot of licences that

were given out in the first

place. This is about whether

the Government should have

bought it as opposed to a

private sector at all? Well,

there is two issues. One is

getting that water back into

the system and, as you know,

the Greens have said very

clearly we want 4,000 giga

litres as the minimum for the

Murray Darling basin plan and

so we want to look at it in

that context, but on the

foreign ownership aspect as

well, as you would know, I

have worked very hard on this

issue because I don't think

it is in Australia's interest

to sell water licences or

land to overseas, especially when they are Government owned corporations that are

the ones buying the land and

that is why... What do you

fear a Government owned

entity, which this Chinese

consortium partly is, what do

you fear they are going to do

with those water licences

that an Australian private

operator wouldn't? My

concern is that the world

changed in 2007/8, in

particular in relation to food security whereby

countries, such as Saudi

Arabia, countries like Qatar

be China, decided to go and

buy land and water in other

countries in order to grow

food and supply them, in

other words, out sourcing the

production of, in this case,

cotton or food crops instead

of putting it on the global

market. And so it undermines

the whole market base, but

also, handing over control of

water is a really serious

thing. Western Australia has

already got a third of its

water licences in foreign

hands. How can that be a

good thing? Surely a

national Government has to be able to maintain control over

its land and water. Just a

final issue, just quickly, if

I can, the Prime Minister has

pulled out of that address

she was going to give next

month to the Australian

Christian lobby after some rather distasteful comments

from the managing director.

You never wanted her to do

this and you debated Jim

Wallace yesterday on the

issue of gay marriage, do you welcome the Prime Minister's

decision today? Yes, I do.

I think it is great that the

Prime Minister has said she

won't go to the Australian

Christian lobby. Actually,

it is a private company,

no-one knows who funds the

Christian lobby. They

disproportionately spend

their time attacking gay

people around the country and marriage equality. And I

really think it would have

given legitimacy to a company

which actually has no direct links to any of the

mainstream churches. So it

is about time the Australian

Christian lobby had a real

focus put on them as to where

they are funded and I think

it is great that the Prime

Minister has drawn the line

and said she is not going to

be associated with a company

that is home aphobic. Thank

you for joining us. Thank

you. After the break, our

panel will be joining us. Stay with us.

Is You're watching PM

Agenda, our panel in just a

moment, first a quick check

of the news headlines. A

woman has been rescued from

the roof of an apartment

block in Sydney's west

following a unit fire. Fire

crews went to the seven story

block at Bankstown just

before 3 o'clock eastern to

find a fifth floor unit well

alight. A number of

residents had left the

building but one had to be

rescued from the roof before

the blaze was extinguished by

12 fire crews. More on that

story coming up throughout

the evening. Qantas airway shares have risen almost 5%

after it announced a historic

deal with Emirates starting

April 2013, the airline will

no longer fly to London via Singapore, moving its

European hub to the Emirates

home airport in Dubai. The

10 year partnership will

allow passengers to transfer

between carriers and it

includes reciprocal Frequent

Flyer benefits. Former US

President Bill Clinton has

nominated Barack Obama as the

democratics candidate in the

upcoming election. He says

he nominates Mr Obama for a

second term because he has

laid the foundation for a

more modern, more well

balanced economy after

inheriting a mess when he

took office. Mr Clinton

delivered his speech on the

second day of the three day

democratic national

convention. President Obama

will speak at the convention tomorrow. The jobless rate has unexpectedly droped to a

three month low of 5.1%. It

justified the central bank's decision to leave official

interest rates unchanged this

week. Economists expected

the unemployment rate to tick

up to 5.3% after a surprise

retreat to 5.2% in July. But

Employment Minister Bill

Shorten says despite a slip

in participation rate to 65%

to 65.2%, Australia is still

doing better than most of the

world. Former NSW Labor MP

has been sentenced to at

least 12 months non-parole

period home detention for

wroughting entitlements and

lying to the independent commission against

corruption. She pleaded

guilty to signing 17 sitting

day release forms for her

staff members. Which claimed

false information in 2006 and

2007. She illegally obtained

more than $4,000 of tax

payers money in the scheme.

In a court, she broke down in

tiers as the sentence was

handed down. A four-year-old

girl has been found alive behind enunder the bodies of

three tourists shot dead in a

car in the French Alps.

French officials say the girl

was found alive about eight

hours after the shooting.

All three have been

identified as British

tourists found inside a BMW

with British number plates.

A local prosecutor says close

to positively identifying all

of the people found in the

car. The fourth victim found

dead was a cyclist. In sport, Tomas Berdych has

knocked out top seed Roger

Federer in the quarter finals

of the US Open. He will meet

Andy Murray in the final four

after beating Marin Celic in

four sets. Thank you.

Let's bring in our panel.

Thank you both for joining

us. I want to look at the

formal leaders and what they

have been up to, a number of

them, Kevin Rudd first of

all. He was out supporting a

union campaign in Brisbane, targeting the State

Government, the Newman

Government's cuts to public

service. Now, he conducted something he has been fond of

in the past, a walk through

Queen Street mall. I've seen bigger mobs though crushing

to squeeze in a photo with

Kevin Rudd in the past, nonetheless, plenty of people

were keen to do so. His

message, though, was an

appropriate one for a Labor

politician, hopping into

Campbell Newman and these job

cuts, but it did carry a bit

of a warning about the fate

Campbell Newman may face if

he keeps these cuts going.

If Mr Newman doesn't change

course, not only will

Queenslanders pay a heavy

price in terms of job

security, and pay a heavy

price in terms of the

delivery of basic services,

but I'm making a political

prediction it is this: within

the Coalition at the State

level itself, they will move

to remove him as premier and

as leader because they know,

they know, that this is going

down like a led balloon

around the place. Campbell

Newman could be dumped by his

own party, says Kevin Rudd.

He should know. Dennis, when

we look at what Kevin Rudd

has been up to in recent weeks, giving speeches,

tweeting all of the time,

doing this sort of thing, it

is the sort of stuff that a

Labor MP should be doing. I guess the reason we are interested is that he has

been so quiet for so long

since that February

leadership challenge. What

do you think is going on?

Well, yeah, I think you're

right. It is always interesting to track Kevin Rudd's activity levels. I

think Kevin Rudd thought, and

you heard this from some of

his supporters around

national politics, that after

the July 1 deadline with the

carbon tax coming in and so

on, when Wayne Swan said it

would be a game changer, when

Julia Gillard hinted that

things would slowly start to improve, I think that Kevin

Rudd and his supporters

thought that none of that

would happen, that the

ratings for Gillard and Labor

would stay in the basement

and the leadership would fall

in his lap. I think what he

has realised over the last

few weeks is that's not going

to happen. And if he is

going to put himself back in

the game, he has got to get

his face back in the face of his colleagues and that is

what he has been doing. He has made some key important

speeches. He has been around electorates. He has been

going to schools and as you

say, he has been tweeting

like there is no tomorrow. I

think this is Kevin Rudd upping his activity levels

for one reason and that is to

remind his colleagues that he

is still there and if he can,

remind them that he could be

a better bet than Julia

Gillard. Andrew, former

Prime Ministers generally are

pretty - can be handy campaign weapons when they

are on message and Kevin Rudd

has been largely on message

with a lot of this. But, of

course, it is a bit different

when you are talk being Kevin

Rudd. There is a big chunk

of the party who would like

to put him back in the job.

Yeah, look, he is not terribly sophisticated in

what he is doing, he is proving on the streets all

the time that he is popular

and, hey, people like having

photographs with him. I

don't think Julia Gillard

could boast that to the same degree, although she does get

a fair bit of attention that

way as well because she is

the prime minister. But as a

former leader, he seems to be

insanely popular among some

quarters. Now, he might be

about as popular as measles

in the caucus but his

argument has always been,

well, I'm popular out there and that's the way he is

going to try to get back, is

through the popularity

outside of the caucus that he will pressure his

colleagues. Now, let's look

at the other former leader,

Malcolm Turnbull. He gave a

substantial speech last night

in which he has given a critique of our current political climate and

particularly Question Time

and note that there has been

far too much focus on the

carbon tax and boat arrivals

in particular. Now, he says

he wasn't having a go at Tony

Abbott but, Andrew, was he?

Of course he was. I mean,

for him to deny it is just

being nuts because there are

lots of elements. I mean, he

talks about - let's go

through. The speech he

mentions Tony Abbott by name

only four times and he is

very careful in those times,

on those occasions, to be

complimentary to, prays him

or to defend him. But there

are other oblique references

to Tony Abbott throughout it,

particularly in the way that

Tony Abbott carried on with

the republic debate being the

chief... he quotes at one

point you can't trust

politicians as being one of

the most effective slogans

that we used against the

"Yes" campaign. Now, that

was Tony Abbott. So for him

to deny this was not about

Tony Abbott, then you know,

he is telling his own

porkees. So look, I think it

is a difficult one this one

for Tony Abbott. The fact

that he feels it, you know,

is proven by the fact that

Tony Abbott has decided not

do anything today. We

haven't seen no door stop, no

activity in any sense.

Privately some Liberals are

pretty angry at Malcolm

Turnbulls speech but when you

look at the substance of it,

do you think that he made

some good points? He did

make some good points and

that is not just because he

said some nice things about

journalists, although as

welcome as that is at the

moment, but there was one

particular bit where he is

talking about the way people

derive the science of climate

change and derive climate

change generally and the

human impact that is caused

there. He talked about the

irony of the republican

convention in Tampa, Florida

last week, being almost

postponed because he said of

a cyclone as the extent of

it, the sea ice fell to its

lowest level since satellite

measurements began and the

worse American drought in 50

years sent corn and wheat

prices soaring. If Greg

Combet or Penny Wong or

someone from the Government

made a statement like that in the context of climate change, then Tony Abbott and

Greg Hunt would be out. The

fact that Malcolm Turnbull

does it and no-one talkth

about it shows just how

difficult he toss handle for

the opposition. Now, the

other former leader who has

received a very different

reception, Bill Clinton,

absolutely cheered by the dem

accurate crowd today at their

convention. He was there to

officially nominate Barack

Obama for reelection. Take a

look at a little of his

speech. I want to nominate a

man who is cool on the

outside. But who burns for

America on the inside. President Obama's approach

embodies the values, the

ideas and the direction

America has to take to build

the 21st century version of

the American dream. A nation

of shared opportunities,

shared responsibilities,

shared prosperity, a shared

sense of community. His general pitch was that Barack

Obama inherited a mess, that

no-one, not even himself, he

said, could have fixed this

in four years and he gave a

detailed critique of Mitt

Romney. What did you think?

Did he do the job he to do?

Yes, he did. I think in sort

of American sporting terms, a

speech was a slam dunk. I

think it went on for probably

about twice as long as it

should have. From what I saw

coming out of America, apparently for every one line

of prepared text, there were

two lines of add libbing that

Bill Clinton threw into the

speech. But it did

demonstrate what a tremendous

ortor he is and what a

tremendously successful

politician he is. I

particularly was impressed by

the way he built this notion

of consensus. When you have

got a partisan and quite

oppositionist congress,

republican congress, and Mitt

Romney and Paul Ryan fall

anything behind them, Bill

Clinton held up "We can work

together". He said we have

worked together, he said

Barack Obama works together,

what this country needs is

coming together. And for old

timers like me, it reminded

me a bit of 1983 and Bob

Hawke, you know, bringing the

country together. I think

that could strike a cord, we will see tomorrow when Barack

Obama follows up. But I'll

tell you what, he has got a

hard act to follow. He does.

The two haven't always seen

eye to eye but they are on

song when it counts. We are

nearly out of time but I just

wanted to ask you finally about Julia Gillard's

decision today not to speak

at the Australian Christian

lobby annual conference next

month. Now, she was due to

speak there, she had been

facing a lot of pressure not

to because of the anti gay

marriage line from the

Christian lobby. Jim wallis,

the managing director made

some remarks, he is trying to

clean up now but essentially

suggesting that homo sexual

lifestyle was more hazardous

to your health than smoking.

Julia Gillard may have made

the right decision not 20

speak at the conference but

why did she agree in the

first place? Well, I suppose

there is always a difficult

question whether to address people that you don't -

whether it is better to

debate people that you don't

particularly agree with or

whether you should just

ignore them. I think in this

instance, his comments were

so idiotic and so silly that

she had no option but to pull

out and the ACL have only got

themselves to blame, I'm

afraid. We are out of time.

On that note, we will have to

wrap things up. Good to talk to you both. After the

break, we are going to look at the change in direction

from Qantas today. Stay with

us.

The Flying Kangaroo has changed direction with a new

partnership today, Qantas has

signed a 10 year deal with

Emirates and confirmed it

will move its European hub to

Dubai oop from next April, it

will fly services from both

Sydney and Melbourne to London via dub

, the airlines will cooperate on flight

scheduling and ticket prices,

also link their Frequent

Flyer programs. It will also

end its lengthy partnership with British Airways which

has been in place for nearly

20 years. Thanks very much

for joining us. To start with, why is this the best

deal, the best outcome for Qantas? Well, this is a

great deal for Qantas because

it means two of the world's

premium airlines, two of the

world's best airlines are

coming together in one of the

biggest partnerships, the

biggest partnership Qantas

has ever done, one of the

biggest partnerships the

aviation industry has ever

done. For our smers, this --

customers, this offers an

amazing network to Europe, to

the middle east and North

Africa, and Emirates will be

treating all customers as if

they are our own, we will be treating Emirates customers

as if they are Qantas

customers and that is great

for our customers

across-the-board. Was this

the last chance for Qantas in

particular in regard to your

international operation? We

always say that part of

turning around our international operation had

four pillars to it. The four

pillars we have been very

clear on and one of them was alliances and in the last

year, we have announced the new lines, American airlines,

we have had a new alliance with San Diego approximately

the missing link for us was

to have an appropriate

network to Europe, and to

North Africa and Emirates is

clearly the leader. 33 destinations now in Europe

direct. It will be one stop through dub

for all of our customers.

So this fills that gap. The

other problem for us was Asia

and with this new agreement

with Emirates, it releases

our ability to restructure

our Asian operation and have

a dramatic turn around in the

performance of our Asian

services as well. So this is

great news for our customers

but even better news for

Qantas International, it is

viability and I think ability

to get back to break even. Was Emirates your first

choice because it seemed like

you had spoken to just about everyone at the major

airlines in the region and it

seemed like Emirates was all

that was left? I think it is

probably the opposite. We

had - certainly we talked

over the decades - this has

been going on for a long time

- we did talk to carriers

about becoming a partner for

Qantas and we wanted the

whole carrier as a partner.

I think Emirates hadn't got

an interest themselves. We

had other focuses and we were

looking at the Asian markets.

In the last year, there was

an alignment of viewers,

Emirates became interested,

we very much wanted to have a

big hope carrier like

Emirates as a partner. The

research we did was by far

Emirates was the best choice.

Our customers, when you ask

them who would they like

Qantas to partner with,

Emirates by far is the

biggest one. You ask them wouldthy they like to go through dub

, they love Dubai as the

connecting port, so for us,

this was a complete win for

us and if I was starting a

list today and I was say who

do you want to be at your

No.1 choice, that would be Emirates clear and our

customers are telling us it

should be Emirates. Is it an

nigs on Qantas's behalf that

you can't do the

international operations?

Obviously we saw the $450

million loss for - going back

last year, you just couldn't

do it any more? There is a

lot of airlines out there

losing money at the moment

because of the high fuel

prices and we have the extra

disadvantage of the high

Australian dollar which is

causing us a problem. Even

Air France have all reported losses in the last six

months. Qantas is an amazing

brand that one of the few airlines, I think you can

count them on one hand, that

fly to every continent so we can make international work.

But what we do know is we can't fly everywhere

ourselves. What impact will

this have on earnings? There

has been speculation that it

will improve by 90 million or

so, what are you targeting?

What this clearly does is we

have identified over $300

million already to turn over

the international business.

This is now a big positive

for international, both to

Europe and to Asia. And we

believe that this absolutely

gets us to our target of

breaking even by August 2014

and it is a major improvement

in the economics of our international operation.

What about jobs? Obviously a

very big focus has been the

unions and potential job

losses at Qantas. In the

shorter term, do you see redundancies as a result of

this partnership with

Emirates? Not this partnership because obviously

we have changes to our network structure where

Frankfurt coming out, but

that was a massive loss route

for Qantas and we needed to

make that move anyway. The Emirates solution actually

makes the transition eachier

for our passengers there with Emirates's network but this

is great for jobs in the

medium to long-term because

what this does is allows us

to turn around Qantas International, we were

talking to Tim Clark, the

President of Emirates, about

where Qantas gets the 787/9

and the potential to go to

Europe, to markets we have

never served in a long time. That opportunity opens up

with this. That is great for

Qantas International, great

for jobs in Qantas and great

for our ability to secure the

jobs we already have. And

think about we have 35,000

jobs now in Australia. This

secures the vast majority of

them and gives us a platform

for us to grow in the future

and to increase employment in

the company. What about

personally, is this a needed

win for Alan Joyce? I mean, fights against the

Government, insurers and the

unions, did you need this personally? All I need

personally is to have a

healthy strong Qantas. That

for me is my only objective.

It has always been my only objective. You must have

felt some pressure. It has

been a turbulent time in the aviation industry but I've

always felt the only pressure

I have is making sure I leave Qantas a strong carrier

that's around for at least

the next 90 years. That is a passion I have. I've

believed that this brand is

an amazing brand, it is

something that I want to make

sure is really strong and

today's announcement is the

biggest deal Qantas is ever

going to do, it is the

biggest deal I think we have

ever done with a partner and

this will secure the future

of Qantas International. So

it's a great step. Obviously

there's been a lot of talk

about potential parties in

the background looking at

attacking Qantas obviously

led by former CEO. There is

a lot of speculation about

everybody under the son being

interested to buy Qantas. I

think some of the mining billionaires were even

suggested at some stage. You

know, we think Qantas is a great investment and I encourage anybody that wants

to invest in Qantas to invest

in Qantas and you can see

that we clearly have a

strategy now to deliver but

there's nobody that has

approached us, nobody is

talking about private equity,

nobody is talking about a take over bid and everything

that we are seeing is just

pure speculation at this

stage. Thanks very much for

your time. Alan Joyce

speaking to James earlier.

That is all for this edition

of PM Agenda. Join us for the National Disability Insurance Scheme tonight on

Sky News. We will be looking at the Prime Minister's

school funding reform

proposals. After the break,

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