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Sunny with wind Brisbane, possible showers for Sydney. Fine for Melbourne 14, with Darwin sunny
snow for the mountains easing a partly cloudy day. For For Canberra tomorrow the southerlies will
ease then fine and mostly recommendingber her, thought we needed warming up so she and we

that Clever Betty that Clever Betty who grew the cotton in Canberra?

Is indeed. Pretty snappy. A brief recap - the ANZ has revealed it has revealed it could lose $1.2
billion because of its exposure to global credit markets. That is ABC markets. That is ABC News for
now. Stay with us for the '7.30 Report' '7.30 Report' next. Enjoy your evening. Tonight on the
'7.30 Report' - fortress Beijing. Will China's security clampdown strangle the Games.

The officials have put a tourniquet around the event and will they allow the blood to flow? We are
... We really don't know.

I think the security always the top of all Olympics. This is like previous Olympics, Athens,
Sydney, will be the same.

Aussie banks share prices plummet

KERRY O'BRIEN, PRESENTER: First to the latest upheaval in Australian banking.

And although we've been told constantly since the US sub-prime crisis began to unfold that
Australian banks were largely quarantined from America's banking disasters, the statistics here are
becoming more and more dramatic.

ANZ's share price dropped by nearly 11 per cent today after it announced that its annual profit
might be down 25 per cent, and its bad debt exposure for the year could be more than $2 billion.

In fact, ANZ's share price is now just half what it was nine months ago. ANZ's bad news follows a
bombshell from National Australia Bank on Friday that its exposure to the US had now spiralled
beyond a billion dollars for the year.

And the NAB's share price is now down more than 16 per cent over the past two trading days. The top
five Australian banks have had nearly $30 billion wiped off their share value since Friday.

Is there more to come?

Greg Hoy reports.

GREG HOY: Sending a shiver across the financial sector...

SHANE OLIVER, AMP CHIEF ECONOMIST: I think the write-downs that we've seen from two of the
Australian banks now are very significant.

If you go back a year or so ago, which is when the sub-prime mortgage crisis in the US really
started to hit, the general view is that Australian banks didn't have a big exposure to the US
mortgage market.

But of course since then we've seen billion dollar write-downs, and of course the risk is that the
situation will get worse before it gets better.

MARTIN NORTH, FUJITSU AUSTRALIA: It's pretty significant. And the reason is the uncertainty that's
been created by this.

What I mean by that is it's a global uncertainty because nobody really quite knows how much bad
news is out there.

GREG HOY: The dual downgrades is financial forecasts of ANZ, which today predicted a further $1.2
billion write-down for bad debts in the property market arising from the credit crisis.

And National Australia Bank which Friday said it would write-down $830 million of a total $1.1
billion exposure to he troubled US sub-prime mortgage market where the whole credit crisis began.

Together the Australian bank write-downs prompted a call for calm form the Federal Treasurer.

WAYNE SWAN, TREASURER: We shouldn't lose sight of the fact that we do have a strong, well-regulated
banking sector, which is capable of withstanding the fall-out from these international

GREG HOY: The share market wasn't so easily convinced. The ANZ stocks initially punished with a
13.2 per cent drop in value.

As NAB fell even further following its own 13.5 fall of Friday, when it lost $7 billion in its
market value.

SHANE OLIVER: The bank's are not only facing loses that show shadowed with loans to the US housing
market, but also, and of course that's what we're now starting to see, loses associated with loans
to Australian households, and also Australian companies.

GREG HOY: So while the ANZ's loses related to poor property loans and the collapse of stockbroker
OPUS Prime, the NAB's were result of direct exposure to the US mortgage debacle.

Through more than a billion dollars in securities NAB had acquired, which were backed sadly by
sub-prime mortgage assets known as collatoralised debt obligations.

Shareholders may be entitled to ask who was to blame for this disastrous acquisition.
Controversially the NAB has argued that credit ratings agencies such as Standard and Poor's had
given these securities a AAA rating, thereby justifying the big bank's fatal decision to invest in
such securities.

JOHN STEWART, NAB CEO: The only error NAB made was investing in AAA securities which have a one in
10,000 chance of defaulting. And in fact if we wouldn't invest in AAA securities we wouldn't lend
to any Australian companies because they have a lower grade than that.

GREG HOY: But not everyone in the market is buying this argument. Particularly JP Morgan's banking
analyst Brian Johnson.

BRIAN JOHNSON: Bank's can in the aggregate their underwriting responsibility to a third party. And
yeah I think that's a very flawed argument.

It is their responsibility to know what they're lending out on. It doesn't matter what anyone else
says. And so you know I just don't believe that's a valid per cent.

GREG HOY: While NAB's CEO John Stuart was not available to respond today other analysts backed NAB.

SHANE OLIVER: Unfortunately though the ratings agencies which granted those AAA ratings played big
role in this, effectively the loans were made to people who were very low quality borrowers, many
of them are now struggling to meet their payments.

Many of those loans on their own would've struggled to get anything near a triple A rating; in fact
they were well what might be regarded as sub-investment grade.

Unfortunately the theory was that they could be packaged together, only a few of them would go bust
and therefore you could maybe call it a triple A rating.

GREG HOY: Standards and Poor's emphasised to the '7.30 Report' their triple A rate something not a
recommendation to buy, sell, or hold. Pledging to work with the market to build greater confidence
in their ratings, with a reminder fewer than point one of a per cent of such rated entities had
defaulted prior to the sub-prime lending disaster.

MARTIN NORTH: Although there was some people up to a year ago were saying there were significant
issues. But the degree, the momentum, and the intensity of the problems are probably one,
unprecedented and two, probably hard to predict.

GREG HOY: Even harder to predict is what happens now that the halo of the Australian banking sector
has been so tarnished. Share prices already falling around 40 per cent from their highs last year.

The remaining two of the large banks, Commonwealth and Westpac have been quick with reassurances
they will not be making similar confessions, though confidence in such statements has clearly been

WAYNE SWAN: I'm satisfied, and our regulators are satisfied, that the disclosures are satisfactory.

SHANE OLIVER: The big risk going forward, though, is that as we see this ongoing slowdown in the
global economy.

And of course now we're seeing a big slowdown in the Australian economy as well, that that will
lead to an increased level of defaults and delinquencies on the part of Australian borrowers.

Which in turn could lead to further write downs for the banking sector as a whole, not just the
banks which have announced big write downs so far.

MARTIN NORTH: The fact is we are in uncharted territory here. And therefore maybe the standard
assumptions and risks that we make assessments of are inappropriate and insufficient.

And therefore you could see a nightmare scenario where other things begin to go wrong and therefore
more risks come into the market.

GREG HOY: But now there is a growing reluctance to assume that the worst is over.

MARTIN NORTH: Consumers are already paying more for their loans than they were previously. I
believe we're going to see consumers having to pay even more going forwards,

And I think we're going to see competitive tension in the industry in Australia get less rather
than more. Because effectively we have four or five players now that are dominating the marketplace
and providing 90 per cent of the mortgage facilities for example for borrowers.

SHANE OLIVER: My feeling is that we're probably through the worst of it, that said I think economic
growth globally still has a fair way to slowdown.

Likewise in Australia; the Australian economy has only just started to turn down, I think over the
next 6 months it's gonna get a lot weaker from where it is at the moment.

Consequently the flow of bad news could continue for another few months at least.

KERRY O'BRIEN: And we're a long way from the bad news ending in America, that is for sure.

And that report from Greg Hoy

China steps up security in lead up to Games

KERRY O'BRIEN, PRESENTER: The anxiety at the highest levels of the Olympic movement is becoming
more discernible as the clock ticks down to the Beijing Games.

In the past week Chinese authorities have clamped down even more on already tight security, after
claiming to thwart an international terrorist threat to the events.

Meanwhile broadcasters from around the world are complaining the coverage could be compromised,
fearing a black out by officials at any time if there are any incidents they don't like.

From Beijing 7.30's Olympic correspondent Paul Lockyer reports.

PAUL LOCKYER, REPORTER: Part of China's huge Olympic security force parading before the landmarks
they have been charged to protect.

The soldiers vow to courageously defend the Olympics, in an oath-taking ceremony specially
organised for armed forces cameras.

The propaganda and theatre of communist China lives on; as does the resolve of the leadership for
stringent control, especially now.

SUN WEIDE, BOCOG SPOKESMAN: It takes some necessary measures to ensure its success of the Olympic
Games. And also to ensure security of all the people from around the world.

So I think we call for an understanding and cooperation from all people involved.

PAUL LOCKYER: China claims to haven uncovered a number of security threats in the lead-up to the
Games. The latest, a plot by international terrorists to target the Olympic soccer stadium in
Shanghai, where the Australian team will play two games.

A recent bus bombing and other incidents in China's north-west have been linked to a separatist

But human rights groups want the authorities to provide more details, to allay their suspicions
that the incidents are being used as an excuse to crackdown on minorities.

The Olympic family now gathering in Beijing can do little else but applaud China's vigilance.

CRAIG PHILLIPS, AOC: The authorities here are well placed to secure the Games. We've never had any
concerns about that at all. Obviously these things happen in the lead-up to Games. It's not a new

DENG YAPING, OLYMPIAN: I think security always the top of Olympics. This is like previous Olympics,
Athens, Sydney, we'll be the same.

PAUL LOCKYER: Deng Yaping is a sporting hero in China. She ruled the world in table tennis for 9
years, winning four gold medals at the Olympics.

COMMENTATOR: Straight sets victory for the world No. 1.

PAUL LOCKYER: She's now been appointed to help manage the Olympic village.

DENG YAPING: We wanted to let the athletes have safety. They stay in very safety village, so that's
why I think athletes they don't feel anything about the security. And they will feel this is their

PAUL LOCKYER: But the security is hard to miss. No efforts are made to conceal the anti aircraft
missiles that have been deployed on the edge of the Olympic site.

And the ever present security force found on the streets of Beijing in big numbers will be even
more watchful and questioning now.

It has reinforced concerns by international broadcasters about whether promises to allow free
reporting during the Olympics will be honoured.

JOHN BARTON, ASIAN BROADCASTING UNION: In the news context if there are incidents we will be forced
to bring down our satellite trucks, our dishes, will cables be cut?

This is an extreme scenario that broadcasters have talked about. So will we be able to cover the
news agenda, that's a very important aspect to this.

PAUL LOCKYER: And there's no more sensitive area in Beijing than Tiananmen Square; the centre piece
of communist rule. When Beijing won the Games this was planned to be one of the grand backdrops
from Olympic coverage.

But access for live cameras has now been restricted for most of the day, for fear that this, the
scene of the 1989 massacre of pro-democracy demonstrators could again become a magnet for trouble.

DEMONSTRATOR (April 2000): Stop killing in Tibet!

PAUL LOCKYER: And the authorities are extra wary because of the protests against the torch relay by
pro-Tibetan demonstrators earlier this year.

The humiliation and anger that swept through China still runs deep.

SUN WEIDE: The Olympic torch is a symbol of peace and hope. I think it's hard to imagine that there
are people who may use violence to attack a symbol for peace and for hope.

PAUL LOCKYER: Such lofty notions were hardly to the fore when the closely guarded torch finally
reached the Tibetan capital of Lhasa before a carefully selected crowd.

The Local Government Administrator used the occasion to launch an attack against the Dalai Lama
proclaiming that he and his clique would be crushed.

SUN WEIDE: I think he's talking about stability. And if you look at what happened in Tibet on the
14th of March there had been violence, violent attacks.

So he is saying that, he is talking about stability in the Tibet autonomous region. And he wants to
create a harmonious, a very good environment for the torch relay in Tibet.

PAUL LOCKYER: After much international pressure, the authorities have agreed that protests can take
place in Beijing during the Olympics. But demonstrators will only be allowed to gather in
designated zones in three parks including this one.

No demonstrations will be tolerated near any Olympic venues or sensitive sites. In these closing
days before the Games tensions are running high at all levels of Olympic preparations.

JOHN BARTON: This is the contribution network; all the feeds are coming in from the various

PAUL LOCKYER: John Barton is with the Asian Broadcasting Union, representing the interests and
concerns of broadcasters from 57 countries. Frustrations are being felt by television rights
holders from right around the world.

There have been long delays in getting approvals to bring equipment and personnel into the country.
Sparking angry outbursts from some networks who have warned the international coverage of the Games
could be compromised.

JOHN BARTON: We have these brick walls at various levels of this highly complicated multi layered
bureaucracy that's China. The officials have put a tourniquet around the event and will they allow
the blood to flow? Again, we really don't know.

PAUL LOCKYER: And every morning there are anxious glances to the skies, to check if there is any
improvement in the thick haze that shrouds Beijing.

Factories have been closed in a wide sweep around the Olympic capital, and vehicle numbers have
been cut to try and reduce pollution levels.

The Olympic organisers insist all will be well by the end of next week.

There is very little time left. If you walk outside it looks very bad.

SUN WEIDE: No I think the thing that you not only have to look at what's actually happening in the
skies, but also I think the important thing is the quality of the air.

Because sometimes it's very foggy but the air quality may be good.

PAUL LOCKYER: So you would be confident there'll be no disruption because of the air?

SUN WEIDE: I think our confidence is based on 10 years of hard work.

PAUL LOCKYER: For all the concerns about the events, there's no stopping the ripple of anticipation
and pride that's spreading across a country now re-engaging with the world.

DENG YAPING: To get more people to know each other, to understand each other. I think that's a
fabulous Olympics to provide for the human being.

KERRY O'BRIEN: Paul Locker cutting through the fog of Beijing.

Liberals and Nationals merge

KERRY O'BRIEN, PRESENTER: After a tempestuous engagement the Liberal and National Parties in
Queensland have tied the political knot.

They Party's voted overwhelmingly at the weekend to merge, creating the Liberal National Party, or

Not everyone was keen for the marriage to go ahead, with Queensland Liberal Party and former
federal cabinet minister Mal Brough almost succeeding in having it postponed. He is now out in the
political cold.

It's a victory for the LNP's leader elect, Lawrence Springborg, who is tipping that other States,
will follow, and that a national merger is possible before the next election.

But on past history you wouldn't want to hold your breath.

Mark Willacy reports from Brisbane.

MARK WILLACY, REPORTER: For more than 60 years the Queensland Nationals and Liberals have played in
separate teams under different captains.

Today is no different; out on a sodden Brisbane football field the two conservative parties are
going head to head in what's being billed as their last rugby grudge match.

And just like in the party room, out on the paddock they occasionally play dirty.

MIKE HORAN, QLD NATIONAL MP: It's part of the team building we've got to do once we become
amalgamated to make sure we are united as one.

MARK WILLACY: But out in the mud and the blood of conservative politics in Queensland true love
never runs smooth. And after months of negotiations, a merger of the Liberals and Nationals was
seemingly a done deal.

Then at the last minute, a handful of senior Liberals led by the Party's Queensland President Mal
Brough complained the amalgamation was more of a Nationals takeover than a marriage of equal

Mr Brough wanted Liberal, preferably himself, to be handed the presidency of the new party.

MAL BROUGH, QLD LIBERAL PRESIDENT: 48 hours from having to make key decisions about the non-Labor
side of politics in this state myself and the federal President still have not received any
confirmation to any of the proposals regarding the key presidential issue.

MARK WILLACY: So Mr Brough and Federal Liberal President Alan Stockdale engineered a postponement
of the merger vote, a move which left many Liberals seething.

VOX POP: 86 per cent of members vote end favour of a merger and Mal Brough, the greatest
contribution he could make to the Liberal party is to resign immediately. It's an absolute

VOX POP 2: This has cut the heart out of the Liberal democracy.

VOX POP 3: There'll be a lot of people leaving the Liberal Party, trust me.

MARK WILLACY: Mal Brough's move to delay the merger was successfully challenged court and the
convention went ahead.

Anger turning into ecstasy as members of both parties voted overwhelmingly to form the Liberal
National Party.

LAWRENCE SPRINGBORG, LNP LEADER-ELECT: I stand before you today as leader elect of the LNP in

Even those people that don't support our side of politics in Queensland and at this stage it's the
majority; they're saying this is got to give us something to look at, and also the government

MARK WILLACY: The merger of the two conservative parties is a sweet victory for Lawrence
Springborg. But for another prominent Queenslander it's a very public humiliation.

Mal Brough was being touted as a future leader of the conservatives in Queensland. But after his
attempt to derail the weekend's merger convention many on his own side of politics are questioning
his judgement.

Mr Brough accuses his National Party counterparts of hanging him out to dry.

MAL BROUGH: It's been incredibly embarrassing period. It's incredibly difficult period when the
Federal President of the Liberal Party is unable to speak to the National Party's state President
because he refuses to talk to him.

It's not really a great start to a marriage.

REPORTER: Will you join the LNP?

MAL BROUGH: No, I will not be joining the LNP.

MARK WILLACY: And neither would Mr Brough be joining the merger celebrations.


MARK WILLACY: Well for now he is in the political wilderness.

IAN KORTLANG, FORMER LIBERAL STRATEGIST: He overplayed his hand here, and the more you talk to
people it was all about Mal. And you know that never works in politics.

LAWRENCE SPRINGBORG: Fellow members of the LNP...

MARK WILLACY: With the wedding over and the honeymoon beginning in Queensland, Lawrence Springborg
sees the love spreading over the border.

LAWRENCE SPRINGBORG: I think there is now a wonderful opportunity for this to positively flow on
through the rest of Australia and interstate. Now I think that what we saw in Queensland on the
weekend wasn't missed down south.

And I've got no doubt that will happen, I respect the time frames may be different, but I do
believe it's as essential across the rest of Australia as it was in Queensland.

MARK WILLACY: But the National Party's Federal Leader is playing down the prospect of conservative
mergers working elsewhere.

WARREN TRUSS, FEDERAL NATIONALS LEADER: The issues are different in Queensland than they are
federally. In Queensland there were two parties essentially competing for the same constituency,
that doesn't make good sense.

And certainly the possibilities of there being further mergers in other parts of Australia cannot
be ruled out.

IAN KORTLANG: It isn't going to be a populist move and sweep across the State. Last time we tried
that from Queensland was the Jo for PM campaign it came to a grinding halt.

MARK WILLACY: Opposition leader Brendan Nelson has welcomed the merger, and is on the record of
supporting the principle of a federal amalgamation.

LNP ADVERTISEMENT: We deserve a new Queensland.

MARK WILLACY: Today, the bombardment began with the LNP's opening advertising blitz hitting the
airwaves. The nascent conservative movement may not have to wait that long for its first test.

Although the Premier Anna Bligh is denying she is considering an early election to strangle the new
party at birth.

ANNA BLIGH, QLD PREMIER: I don't see nay grounds for an early election. I was elected along with my
time to deliver some very important projects and new programs for Queenslanders.

I'm going to deliver those projects and programs. And the next election will be held in 2009.

MARK WILLACY: And despite the Opposition needing 20 seats to win the next election, the gap between
the two sides is narrowing. The most recent opinion polls suggest Lawrence Springborg is surging to
within striking distance of Anna Bligh, and the ten year old Labor Government.

LAWRENCE SPRINGBORG: We have to win as many seats as Kevin Rudd won in the last federal election,
and our Parliament as about half the size.

But it's a test that we're looking forward to. From mergers in the Party room back to malls on the
paddock, there should be the last rugby grudge match between the Nationals and Liberals unless
there that is their merger disintegrates or fails miserably at its first electoral test.

But for now it's all about learning to play together and stay together.

KERRY O'BRIEN: Mark Willacy with that report.

Cadel claims second place in Tour de France

KERRY O'BRIEN, PRESENTER: You would have to wonder how it must feel to cycle your heart out across
3,500 gruelling kilometres over 21 days and finish less than a minute from Tour de France glory.

But That's Australia's Cadel Evans, and he's got no time for self pity. He has already shifted his
focus on to the Beijing Olympics and next year's tour.

And anyway, second place in the toughest bike race in the world two years in a row is more than
enough to make Cadel Evans a home town hero.

Tracee Hutchison reports.

CADEL EVANS, CYCLIST: I guess that's the way it goes when you have yellow you have to work to keep

TRACEE HUTCHISON: Cadel, according to the Welsh origins of the name, means spirit of the battle.
And for Cadel Evans the battle for Australia's first ever Tour de France crown was certainly a
spirited campaign.

COMMENTATOR: He's not happy with that (inaudible). I would watch that, Cadel.

TRACEE HUTCHISON: In the end it was a battle lost for the second year running in the penultimate
stage, as Evans succumbed to the Spaniard Carlos Sastre, one agonising minute short of victory.

CADEL EVANS: I rode consistently; I rode smooth, all the time checks and everything. I just wasn't
riding as fast as the other guys.

RUPERT GUINNESS, FAIRFAX TOUR JOURNALIST: 3 weeks of racing and the pressure you carry, the
emotional roller coaster that you go through, and all the crowds and the mayhem around you, that's
just physically and mentally draining.

HELEN COCKS, CADEL EVANS' MOTHER: Yeah it would be great if he won but he rode a really good race
and that is good too.

TRACEE HUTCHISON: Vanquished he may be in Paris but on the other side of the world Cadel Evans can
do no wrong.

Here in Barwon Heads, the sleepy Victorian coastal town made famous by 'Sea Change', Cadel Evans is
very much the local hero.

VOX POP: Barwon Heads people are very proud of Cadel. And we're certainly very happy to adopt him.

VOX POP 2: We love him. IT'S GREAT.

VOX POP 3: He seems very nice. Everyone seems to love him. We're all cheering for him.

TRACEE HUTCHISON: Far away from the pro cycling spotlight this is the place Cadel Evans calls home
every summer. Riding with a local crew along Victoria's spectacular west coast.

MICHAEL CHAREWICZ, HENDRY'S CYCLES: You wouldn't know he was such a member of cycling royalty when
he turns up next to you on the bike it's like he's one of the boys coming out for a roll. It's

TRACEE HUTCHISON: Over summer this crew swells to around 60 or 70 riders, and much like his work
ethic on the French tour, Cadel Evans the hard yards out front of this local peloton as well.

STEVE DRAPER, HENDRY'S CYCLES: Cadel is definitely the main man on the front of the bunch dictating
the pace and where we go.

TRACEE HUTCHISON: Steve Draper is very familiar with Cadel Evans dictating the pace; the pair
competed against each other as junior mountain bikers.

STEVE DRAPER: I've seen him explode on to the scene. And his rapid progression and his steely
determination was very, very impressive for such a young man at that time.

TRACEE HUTCHISON: Now he is Cadel Evans' main man over summer, taking care of his bikes and helping
with off season preparation.

STEVE DRAPER: He walked in as his season had finished, and he was back in Australia as he walked
through the door he looked at me, I looked at him. We both said to each other "What are you doing
here?" And it started from there again.

TRACEE HUTCHISON: And as yellow Tour de France fever swept through the town, none felt it more than

Well despite the fact Cadel Evans is unlikely to win tonight, it hasn't stopped his local bike crew
turning out to on their local hero as he heads towards the finish line.

LOCALS: There he is! Go Candel, Go Cadel!

TRACEE HUTCHISON: With the race all but over before the last stage the roll into Paris was largely
ceremonial with riders obliged to follow the traditional no challenge rule.

STEVE DRAPER: It's always been that way. I think it always will be that way.

TRACEE HUTCHISON: And that's exactly how it played out on the Champs Élysées. With the dominant CSC
team led by Australian Stuart O'Grady, ushering Carlos Sastre into victory.

By 2am only the most resilient of his local crew were still watching. IT's an incredible effort.

STEVE DRAPER: It's an incredible effort. Obviously under better circumstances with a more
supportive team network and strategic position he would've won. There's in no two ways about it.

RUPERT GUINNESS: You do have to appreciate it, it's second place, he's on the podium two years in a
row, five tours he's done. He's always performed very well. And I think he has to take stock of
that and celebrate it a little bit.

CADEL EVANS: I'm happy the fact I could continue after the crash, on that first Sunday or whatever
it was, just to be able to continue, come back and get yellow, defend it and finish second is a

TRACEE HUTCHISON: For the man of the moment in Australian cycling it's all about the future.

CADEL EVANS: So far my Tour de France has been a four year plan and I think I have three or four
more good tours left in me. Of course I'm in the gonna give up now. I think I'm just coming into my
best years now.

STEVE HODGE, CYCLING AUSTRALIA: Cadel definitely can come back. I mean one thing that's quite clear
is It takes a lot of experience to build to win the Tour, cope with the pressure, and get
everything going beautifully well.

TRACEE HUTCHISON: Cycling Australia Vice President Steve Hodge says Evans is still Australia's best
hope to take the coveted French prize.

STEVE HODGE: It's going to have to be within a couple of years. Cadel's got to get cracking. And I
know he's going to do that.

CADEL EVANS: We've always got room for improvement. Otherwise just continue on the same progression
for the last 4 years.

TRACEE HUTCHISON: But for now the focus is the Beijing Olympics when Cadel Evans will ride for
Australia alongside tour rival Stuart O'Grady.

STEVE HODGE: Stuey is an amazing professional, and he's helped Carlos Sastre win the tour and let's
hope, why not, that he can do it for Cadel in the Olympic road race.

TRACEE HUTCHISON: After that, it's another summer on the wide open roads of Victoria's west coast
to look forward to. And another French campaign. Next year? He'll be back. And we can't wait.


STEVE DRAPER: He'll be back. And we can't wait.

KERRY O'BRIEN: And in the meantime, Beijing.

Tracee Hutchison reporting.

And that's the program for tonight. We'll be back at the same time tomorrow. But for now,

Meantime, Beijing. We'll be back at the same time tomorrow. For now, goodnight. Closed Captions by


Hello, I am car oh line joins. When Nicole Kidman gave birth to a baby girl earlier this month in
Nashville she may have been relieved to have been several thousand kilometres away from the long
lens of Sydney paparazzo Jamie Fawcett. The self-styled 'Prince of Paparazzi' has been embroiled
over the last three years in legal battles resulting from his pursuit of Nicole Kidman. Tonight
Jamie Fawcett faces his critics and speaks openly for the first time since his latest courtroom
drama. Got in the car and beat him up.

Well know that Jamie Fawcett is a well-known controversial member of the paparazzi I have
conflicting feelings. I do not think there is anything wrong with what he does but at the same time
it does seem to open up this potential for him to be hurt. And I really want to wrap him in cotton
wool. I would like him to do something else completely unrelated not for the sake of the so-called
victimised celebrities but for us.

Do you have a message to the paparazzi today? Do you feel safe at last? Are you nervous about

One of the things I did find in the court was dealing with the claim he had planted a bug across
the road from Nicole Kidman's house because it is an allegation he has perform add criminal act.
The other thing that caused a problem was a lot of people did take to heart this idea that my
husband was obsessed with Nicole Kidman and people would say things like "You look a bit like
Nicole, is that because he is obsessed with her? " Which I found highly insulting.

Every time Jamie goes out to work I worry about him. I think of him a little bit like a cat that
you can not keep indoors. He needs to go out. He needs to hunt, he needs to gather.

Paparazzi photography is about two things. It is about being a photographer of opportunity but it
is also about money.

Yeah we were up at Nicole Kidman's and heard Sharon Osbourne the wife of the rocker Ozzy was down
here buying some jewellry.

Sharon! It is a highly competitive area where the success of what you do is driven about the amount
of photographs tore type of exclusive photographs you would get on a daily basis? Where is that
beautiful daughter of yours? We waiting on it. Thank you.

Normally I would get a set of exclusive pictures every few weeks.

Jamie Fawcett is the only paparazzi of his kind in this town really. There are not many people who
willing the the lengths he will go to, any lengths to get these pictures.

Yep. Nothing. Just