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7.30 Report -

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Welcome to the program. Former Prime Minister now Foreign Minister Kevin Rudd has hit the road in
his new job this afternoon. Heading for Pakistan and the United Nations in New York, after
attempting to put the recent past behind

NBN continues to dominate home politics

NBN continues to dominate home politics

Broadcast: 15/09/2010

Reporter: Heather Ewart

Tony Abbott has announced he'll try and get the independents on side to oppose Labor's National
Broadband Network. Independent MP Rob Oakeshott has stated he'd like to be Speaker of the House of
Representatives and newly appointed Foreign Minister Kevin Rudd travelled to Pakistan today.

Transcript

KERRY O'BRIEN, PRESENTER: Former Prime Minister now Foreign Minister Kevin Rudd has hit the road in
his new job this afternoon, heading for Pakistan and the United Nations in New York after
attempting to put the recent past behind him; leaving the Prime Minister to focus on her latest
challenge -- Independent Rob Oakeshott's surprise revelation that he would like to consider being
the new speaker of the Parliament.

Opposition Leader Tony Abbott, meanwhile, is suggesting he'll be attempting to get the Independents
to join in opposing Labor's National Broadband Network.

Political editor Heather Ewart reports.

HEATHER EWART, POLITICAL EDITOR: He's back and making sure everyone knows it.

KEVIN RUDD, FOREIGN MINISTER: Okay, ready to rock and roll up there? Good.

Later today I'll be flying to the flood affected areas of Pakistan and then to Washington and then
to New York.

HEATHER EWART: Less than 24 hours after being sworn in as foreign minister the former prime
minister has resumed his globetrotting ways. And his first task is to urge the international
community to do more for flood stricken Pakistan.

KEVIN RUDD: The reason I'm going to Pakistan is that when I was briefed by AusAID officials during
the week it was quite plain that we are in the process of seeing a slow burn humanitarian disaster
in that country - a humanitarian disaster potentially of horrendous proportions.

HEATHER EWART: Kevin Rudd will address the United Nations in New York next week - a role that's
normally reserved for the Prime Minister. But Julia Gillard figures she has enough on her plate
right now settling in the new minority government.

That suits Kevin Rudd just fine. He'll be centre stage and sees foreign policy as safe territory.
Domestic politics is not.

KEVIN RUDD: I don't intend to engage in any retrospectives whatsoever on recent political events,
including the conduct of the last federal election.

REPORTER: How would you describe the relationship with the current Prime Minister and is there more
than a crack of light between the two of you?

KEVIN RUDD: The Prime Minister and I had a great discussion on Monday covering a whole range of
foreign policy measures. It went for an hour or so and we covered a lot of turf. That relationship
is a very productive and professional relationship and I'm sure it will continue to be conducted on
that basis.

HEATHER EWART: The rest of his Labor colleagues certainly hope so but they're all too aware there's
no dodging the relationship being in the public spotlight for some time yet.

Julia Gillard can't afford to have her predecessor outperform her on foreign policy and will need
to display some expertise in the area sooner rather than later.

Today she was busy defending the last minute changes she'd made to the titles of some her
ministries.

JULIA GILLARD, AUSTRALIAN PRIME MINISTER: I'm the sort of person who on Christmas Day wants to rip
the packaging off and see what the present is. Other people like to look at the wrapping paper and
comment on that, so I wanted to get right down to the substance.

Now, obviously, there were some comments about ministerial titles, further decisions I had to make.
The day on which all of that had to be clarified was yesterday, and of course it was.

HEATHER EWART: The changes, under pressure from the university sector and indigenous health
community amongst others, weren't the only things noticed at yesterday's swearing in ceremony. All
media eyes it seems were trained on Kevin Rudd and how he and his collegues were responding to one
another.

REPORTER: You looked quite pained and uncomfortable - why was that?

KEVIN RUDD: I love these psychoanalyses of how I look. What's your qualification, by the way? Are
you like David Marr, got a PhD in the discipline or what?

I just think this stuff is great. How long did the ceremony go for yesterday, guys?

AUDIENCE MEMBER 1: Was a bit boring.

KEVIN RUDD: Can someone give me how long it was?

AUDIENCE MEMBER 2: About an hour and a half.

KEVIN RUDD: Okay, and did you study everyone's faces for an hour and a half, as to whether they
maintained an absolute gaze of unmitigated engagement with every scintilla of it?

Probably not, probably not.

HEATHER EWART: Suffice to say, Kevin Rudd didn't exactly look as though he was surrounded by close
friends. And you can bet the Opposition will be seeking to point to this at every opportunity.

Today, though, Tony Abbott's emphasis was on the National Broadband Network, as he moved to
highlight the appointment of Malcolm Turnbull as his Communications spokesman, and signalled they
were going to try to win over the Independents to change sides.

TONY ABBOTT, OPPOSITION LEADER: I think that's what we should be doing and as I said I think with
someone like Malcolm in charge of communications policy, in charge of exposing the waste and
extravagance inherent in the Government's broadband plans, that becomes a very real prospect.

HEATHER EWART: It's not something Tony Windsor is entertaining and his fellow Independent Rob
Oakeshott doesn't see it as a game changer either, though he's welcomed Malcolm Turnbull's
appointment.

No, Rob Oakeshott is more interested in other matters at the moment, having knocked back the offer
of a Government Ministry, he's now eyeing off the position of Speaker in the House of
Representatives.

ROB OAKESHOTT, INDEPENDENT MP: There's a couple of constitutional issues that need to be clarified
but if they can be resolved I'll be putting my hand up and hopefully it's a step into the centre of
political debate, working daily with people such as Julia Gillard and Tony Abbott and therefore, as
a local member, really representing front and centre.

HEATHER EWART: Not exactly what Labor and the Coalition had in mind when they were negotiating
parliamentary reforms with the Independents. This one comes out of left field and it's not clear
yet how either side will deal with it.

KERRY O'BRIEN: Incidentally, our attempts since the election to get an interview with Mr Abbott,
including today, have so far been unsuccessful. Malcolm Turnbull also declined an interview for
tonight.

Political Editor Heather Ewart.

Mexican connection

Mexican connection

Broadcast: 15/09/2010

Reporter: Tim Palmer

Around half of the cocaine entering Australia is being sent from Mexico, a notorious and powerful
syndicate behind many of the shipments.

Transcript

KERRY O'BRIEN, PRESENTER: Australia's surge in cocaine use is being fuelled by highly sophisticated
importations by one of the most brutal and powerful syndicates involved in Mexico's drug war - the
Sinaloa Cartel.

Intelligence sources have told the ABC's 7.30 Report that around half the cocaine now entering
these shores is coming from Mexico, and that the cartel driven by Mexico's most wanted man, "El
Chapo" Guzman, has established a franchise here.

This report from Tim Palmer contains images some viewers may find disturbing.

TIM PALMER, REPORTER: Murder in Mexico is not just cheap and appallingly prolific it's gruesomely
public.

As well as cutting down the bodies strung under bridges like this one in Mexico City, the country's
police have just in the past few weeks had to deal with the slaughter of 72 migrants in a single
massacre at a remote ranch. The two officials appointed to investigate that massacre were kidnapped
and killed.

Since 2007 it's estimated more than 28,000 people have been killed in Mexico's drug war.

But the product at the heart of the conflict still runs freely - and now more and more of it is
finding its way to Australia.

JOHN LAWLER, CHAIRMAN, AUSTRALIAN CRIME COMMISSION: Of the number of importations that we have had,
we've found a very significant increase in the embarkation points of those and Mexico is top of the
list.

TIM PALMER: In fact the 7:30 Report has been told by senior intelligence sources in Australia that
around half of the cocaine coming into the country is now coming from Mexico.

The raw amounts are tiny compared to the amounts shipped by Mexican syndicates into the United
States but what arrives in Australia is uniquely profitable.

JOHN LAWLER: If we have a kilogram of wholesale cocaine in Colombia, it's worth about $2,100. If
that cocaine is successfully imported into Mexico it's worth $12,500. If that same kilo of cocaine
finds its way successfully to the US it's worth $28,500. But if it finds its way to Australia its
worth $146,000 - an increase of 7000 per cent profit.

TIM PALMER: Whether the relatively recent targeting of Australia has led to increased use or the
other way around, there's no doubt amongst criminologists that cocaine is booming here.

DON WEATHERBURN, NSW BUREAU OF CRIME STATISTICS & RESEARCH: If you look for example at arrests for
cocaine use and possession, they've gone up about 36 per cent per annum over the last five years.
It's the same story if you look at the national surveys of drug use - big increase of cocaine
consumption. We're at record levels as far as the drug is concerned.

JOHN LAWLER: In times gone by people associated cocaine use with the higher socio-economic members
of our community but in fact that now appears to be changing and lower socio-economic individuals
are not only snorting cocaine but injecting it with heroin.

TIM PALMER: Where police have uncovered drug shipments originating from Mexico the methods are
increasingly sophisticated. In July a 240 kilogram shipment of cocaine was intercepted.

KEVIN ZUCCATO, ASSISTANT COMMISSIONER: Concrete pavers that had been hollowed out and then a
thinner layer of concrete glued to the top of that paver. Those pavers were then concealed within a
large consignment of pavers. And the instructions on how to find the exact pavers were actually
etched into the pallets that they were concealed in.

TIM PALMER: Another Mexican shipment came in six steel die casts weighing four tonnes.

JOHN LAWLER: I can say to you that that activity of the sophistication and level we're seeing can't
be done other than by organised criminality.

KEN MCKAY, ASSISTANT COMMISSIONER, NSW POLICE: You don't get importations of this size by minor
groups.

TIM PALMER: In fact a senior intelligence source has told the 7:30 Report that one of the largest
and most vicious Mexican syndicates has established a franchise in Australia.

That source names the Sinaloa Cartel, meaning that Australia has been targeted by the most
notorious Mexican drug lord of all - Joaquín "El Chapo" Guzman.

Already named as one of the 1000 richest people in the world, Forbes magazine went further last
year to name Guzman at number 41 in its list of the world's most powerful, ahead of Russian
president Dmitri Medvedev, Oprah Winfrey and Apple's Steve Jobs.

Born into poverty Guzman bribed his way out of jail in 2001, avoiding extradition to the United
States to now command a personal fortune of more than a billion dollars.

He's Mexico's most wanted and the US State Department has a $5 million dollar bounty on his
capture.

This is the man Australian authorities now believe has targeted his drug shipment business at
Australia, and sent operatives to work here.

Intelligence given to the ABC says stamps on cocaine blocks intended for Australia identify the
Sinaloa cartel, and that the syndicate has essentially set up a base here.

While the Australian Crime Commission won't name any particular syndicate, the scale of the cocaine
trade directed here has prompted the use of new laws to combat it.

JOHN LAWLER: The board of the Australian Crime Commission at its June meeting approved the use of
the powerful Crime Commission's coercive powers ot further investigate and gather intelligence
around cocaine and the cartels and organised crime groups around its importation.

KEN MCKAY: Until the top of the- until the head's taken off it's never over. These people will come
back at us. As I said, the profit margins are too great not to. And until- as I said, until we take
the head of this group out they'll just keep coming.

TIM PALMER: But if the head belongs to El Chapo Guzman, that's a challenge that has so far eluded
the US and Mexico in a war that has never looked so hard to win.

KERRY O'BRIEN: Tim Palmer with that report.

Garnaut's response

KERRY O'BRIEN, PRESENTER: Last Thursday we presented a story highlighting concerns in some quarters
over the practice by Australian mining companies in Papua New Guinea of just discharging mine waste
and chemically processed tailings deep into the ocean.

A significant element of those expressed concerns related to the so-called deep sea tailings
'placement' by one of the world's biggest gold mines, located on Lihir Island off Papua New
Guinea's north coast.

Until this week when it merged with another Australian mining company, Newcrest, the mine was
operated by Lihir Gold Limited whose founding chairman over 15 years has been Professor Ross
Garnaut.

Professor Garnaut is also an eminent Australian economist, perhaps best known as the head of the
Rudd government's Climate Change Review Panel recommending serious reduction targets for greenhouse
gas emissions.

In preparing for that story, the 7.30 report's business editor Greg Hoy made extensive efforts
without success via Lihir management, to persuade professor Garnaut to be interviewed.

Professor Garnaut has reacted angrily to the claims and criticisms in our report, calling a press
conference in Canberra today to reject in great detail many of our story's assertions.

Here is Greg Hoy's report.

PROFESSOR ROSS GARNAUT, CHAIRMAN, LIHIR GOLD LIMITED: On the evening of 9th of September, the ABC's
7.30 Report carried a piece called "The Price of Gold" which ran for almost half of the duration of
the half-hour program. It comprehensively misrepresented my work in relation to the mining industry
in Papua New Guinea.

GREG HOY, REPORTER: Today Professor Ross Garnaut called a press conference to criticise the 7.30
Report:

ROSS GARNAUT: Through the integration of false and misleading statements by several people -
including the ABC's reporter Greg Hoy - and misleading accompanying film footage, it built up an
elaborate, negative and false impression of the activities of companies with which I have been or
am associated and of my work and character.

The piece amounts to a comprehensive attack on my professional and personal integrity.

GREG HOY: It was a heated response to a report last week on Lihir Gold Limited, Founded 15 years
ago with Ross Garnaut as its founding Chairman, who has been paid around US$300,000 a year to
oversee development of one of the world's biggest gold mines, soon to expand, on the tropical
Island of Lihir off PNG's North Coast.

ROSS GARNAUT: The LGL Board has always adopted responsible environmental management. Our
environmental track record has been exemplary. The effects of the project on the local biodiversity
are the subject of close and continuous monitoring and careful management.

TIFFANY NONGGORR, MADANG LANDOWNERS LAWYER: It cannot be said that the environmental record of
Lihir is exemplary. In fact it's shrouded in mystery.

ROSS GARNAUT: As to mystery, the DSTP process in Papua New Guinea has been subject to detailed
internal and independent external analysis at several stages of the mine's development and the
voluminous material is on the public record.

I was given no idea in advance that the 7.30 Report was contemplating a piece of this kind. After
the LGL shareholders meeting in Port Moresby on 23 August 2010 that accepted the LGL board's
recommendation on the Newcrest offer, LGL external relations staff had advised me that the 7.30
Report was interested in an interview that would provide an opportunity to discuss the achievements
of the company at Lihir culminating in the Newcrest transaction.

GREG HOY: In fact we made repeated written requests to interview Ross Garnaut to incorporate his
views on his merger deal with Newcrest Mining, his mining experience in PNG, environmental issues
and - as we were later made aware of - the increasing debate over Lihir's controversial practice of
disposing of millions of tonnes of mine waste and of chemically treated tailings into the sea.

But our requests for interview, once we explained what we hoped to discuss, were ignored.

ROSS GARNAUT: The piece presents LGL's environmental practices as being irresponsible and
secretive.

Nothing could be further from the truth, as is demonstrated in the annotations to the transcript.

The following reports are on the website: LGL's annual sustainable development reports for 2007,
2008, 2009; other environmental and community reports from 2000 to 2006 cover environmental and
DSTP issues. B- Annual environmental reports from 2005 to 2008 submitted to the Papua New Guinea
Department of Environment and Conservation, which contains all environmental performance monitoring
data.

TIFFANY NONGGORR: A report done by six CSIRO scientists in 2004 was based on a study by those six
CSIRO scientists headed up by David Brewer. It was a study over five years of the impacts on deep
sea fishes from the deep sea tailings placement system. It begins at the start of the report by
saying "This is the first ever study that has been done on the impact". And that was done in 2004.

Now this study by David Brewer and the other CSIRO scientists found that 15 of 17 common species
sampled were severely impacted by the deep sea tailings placement system.

GREG HOY: The Professor is critical of comments by PNG lawyer Tiffany Nonggorr, representing
landowners of the Madang Province, who suggests waste disposal at sea should be banned - as it is
in many other countries - and who is trying to block other major mines from duplicating Lihir's
waste disposal technique.

ROSS GARNAUT: Every type of tailings disposal must depend on individual circumstances. Deep sea
tailings placement in the particular circumstances of Lihir is world best practice.

TIFFANY NONGGORR: We don't even know properly the chemical make up of the tailings that go into the
sea.

GREG HOY: We had mentioned Ross Garnaut has the backing of the strongly pro-mining PNG Government
and there's no question on little Lihir Island the chairman has won support amongst locals, whose
numbers have almost doubled with the mine's development so far.

ROSS GARNAUT: The leaders of Lihir take their jobs very conscientiously. They attach great care to
it. They feel a sense of responsibility to their own and future generations.

Some of them are people of considerable education. Many are people of considerable intelligence.
None are specialist marine scientists. All of us have to make judgements about technical data on
the basis of information made available to us.

GREG HOY: But the Former PNG Prime Minister and now Governor of Lihir's local province New Ireland,
Sir Julius Chan, denies local support is as strong as has been suggested.

SIR JULIUS CHAN, GOVERNOR, NEW IRELAND PROVINCE, PAPUA NEW GUINEA: That is not altogether true. The
environmental tailing disposal is one that is no longer approved internationally. But at the time -
and we're talking about 15 years ago - that was the way proposed that if we allowed the tailings to
go down to 150 metres below the sea, all the sediments will settle and they won't disturb anything.

Lihir Gold as you know is a very, very big gold mine and with the expansion program that they're
proposing I think that environmental arrangement will probably need a review.

GREG HOY: Australian Marine Scientist Dr Gregg Brunskill's comments also drew fire from Professor :

DR GREG BRUNSKILL, MARINE SCIENTIST: Most of the studies by people that I know and respect do
indicate that corals, fish and bottom animals are affected by the mine waste. And in the case of
Lihir this involves some 60 square kilometres of sea floor area.

GREG HOY: But Dr Brunskill stands by his analysis of peer reviewed research.

Professor Garnaut strongly objected to our mentioning in this report that he also serves as
director of the Ok Tedi gold and copper mine in western PNG, which we described as infamous for its
environmental record.

Professor Garnaut suggested improvements have been made with encouragement of the PNG Sustainable
development programme (PNGSDP), of which he is chairman.

ROSS GARNAUT: PNGSDP's role on the Ok Tedi Board has ensured the continuation of a dredging program
to remove material from the Ok Tedi - the subject of misrepresentation in the 7.30 Report - and the
development of a separate process to remove sulphur compounds from the tailings and their safe
storage in the lowlands of Western Province.

The combined cost of these programs has been the best part of one billion US dollars. Major
engineering studies are currently in progress on development of a new approach in storing waste in
a stable dump in the vicinity of the mine.

TIFFANY NONGGORR: It is considered that Ok Tedi is the third largest environmental disaster in the
world. In fact it is the largest mining environmental disaster in the world. Eight hundred
kilometres of river is essentially dead.

GREG HOY: Professor Garnaut was most angered that Lihir's sea waste disposal is being drawn into
debate over the application by other major mines in PNG - several of them Australian - to also
dispose of their waste at sea, the professor suggesting these should be judged on their merits.

But in the considering the first of these applications the PNG government has endorsed a European
Union funded study on the impact of Lihir Mine's waste and the another mine which closed eight
years ago. That research was conducted by the Scottish Association of Marine Science. And there is
strong debate -not only, firstly, whether this report, which has not been officially released but
the Professor points out is available on the Internet, is part of a strong debate about whether
that report is critical of Lihir's environmental impact.

ROSS GARNAUT: Encouragement has been provided for responsible external scientific assessment, such
as that undertaken by the Scottish Association of Marine Science, commissioned by the European
Union for the Papua New Guinea government.

The contributions of the Lihir project to material standards of living and education, training,
health and other services to the Lihirian people, and to material development in Papua New Guinea
more generally, have been large.

TIFFANY NONGGORR: It actually says in the SAMS report that Lihir is severely impacted.

GREG HOY: The momentum for this debate is increasing as PNG deliberates on whether to allow more
mine waste to be discharged into the sea. But with the merger of Lihir Gold with Australia's
Newcrest Mining Ross Garnaut has formally handed over the helm of this mine.

JULIUS CHAN: So the tailings that are currently being disposed of will have to be doubled and there
are quite a range of issues that we really have to look at. And the question of the life of the
mine is also- will be prevalent because we have to deal now with a mine that is scheduled to be
exhausted in about 40 years. And if they double the production and depending on how fast they do it
that means the life of the mine may have to be reduced.

As to how many years I don't know because the company's very vague on that. I'm surprised really
that Newcrest being such a big company in its takeover did not really do sufficiently due diligence
- and when I say that I mean that the due diligence would somehow at least consult the provincial
government.

ROSS GARNAUT: In the deep ocean the monitoring shows there's some effect on zoo plankton, that it
does not smother all growth of zoo plankton. There is no effect on the food chains and the ecology
of the sea's affecting any fish used by humans.

I cannot say there's no effect on the natural environment. There is no tailings and waste disposal
in any mine anywhere in the world that has no effect on the natural environment.

KERRY O'BRIEN: Business editor Greg Hoy. And Professor Garnaut's full 23 page critique is on our
website and we'll be responding to other elements of that critique in due course.

'Tonight on The New Inventors: A paint that provides power, making things that go up, stay up, and
a caravan that's become the TARDIS.' Hello, I'm James O'Loghlin. Also, tonight, a new type of speed
bump, and what happens when two different people invent the same thing at the same time? First, our
happy, but not irritatingly-so, judges. Tonight, they're agricultural scientist, Chris Russell,
inventor and designer, Sally Dominguez, and engineer, James Bradfield Moody. Welcome on. APPLAUSE
Alright, our first invention is one of these big ideas. Here it is. Imagine if every house in
Australia could harvest solar energy, not from one or two solar panels on their roof, but from the
entire surface area of their roof. And how would you get all those solar panels up there? You'd
just paint them on.

'Imagine a world where every single building could generate its own, clean, green electricity
directly from the sun.' Well, we're working on taking that idea from the realm of science fiction
into the reality of science fact. 'Our invention is a solar cell technology that can be applied to
roofs and other building surfaces, to generate clean, green electricity from the sun. At the core
of the invention are tiny, semi-conducting, plastic materials that are dispersed in water, to
produce a coating containing cells capable of capturing solar energy and generating electricity.
Initially, the coating will be put onto plastic sheets that are placed on the roof of a house.
However, in the long term, it may be possible to directly apply the solar cell onto a roof or
building surface.' Our invention has the potential to satisfy our ever-growing appetite for power,
and to end our reliance on the dirty, non-renewable technologies that are used to generate our
electricity today.

Please welcome, from Newcastle, Paul Dastoor. CLAPPING

Hello, James.

And, we need to welcome the 17 students from Newcastle University that worked on your work set.

Absolutely.

Hello to all you. Well done. Congratulations to you. CLAPPING OK, this is a solar panel that some
people have on their roof, at the moment. It's big and it's inflexible and it's reasonably heavy.
You want to replace it...with this.

We do. We want to replace it with plastic.

This can be created a lot more cheaply, right?

Yeah, absolutely. The materials that we use here, are plastics or polymers... ..and we can print
them.

Yeah.

We can print them probably as cheaply as you can print crisp packets.

And then, down the track, you might be able to just... ..paint your house. Is that right?

That's right. We think there's probably no reason why you can't eventually directly apply that to
the surface of the roof, itself.

Now, you and your students have made a house. It's not hooked up to anything, it's just going to
run off our lights. Do you want to open it up?

Sure.

The only light that it's receiving is our studio lights. You can see inside. ? Open wide ? Come
inside. ? So, turn it on, and you will see soon, it begins to harvest the energy. The fan's on, the
lights are on, and the television. There's someone watching television. I wonder what
they're...wow, they're watching The New Inventors. Isn't that wonderful?

What else would you watch?

LAUGHTER Come over to the panel, because I think now, those who have solar panels, there's a big
sense of... ..you know, I'm doing this because I've got a bit of money and I should do it...

Absolutely.

..rather than...your technology can change it to a hard-headed, economic decision in self-interest.
I want to get solar 'cause it will save me money in a year-and-a-half time.

And let me put it another way. What we're actually now saying is, that we've got the opportunity
that everyone can have solar. It's not just if you're wealthy...

Yeah.

..it's there for everybody.

As long as you've got a paintbrush.

And so, Paul, how efficient are these solar panels,