Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Disclaimer: The Parliamentary Library does not warrant the accuracy of closed captions. These are derived automatically from the broadcaster's signal.
ABC News 24 The Business -

View in ParlView

(generated from captions) This program is not captioned. This program is not captioned. This program is not captioned.

This Program is Captioned Live.The top stories from ABC News. There is continuing tension in Egypt after thousands of pro-Morsi supporters directly defied army's supporters directly defied the mash muched to a military army's orders. The gathering facility mash muched to a facility in Cairo December warnings to stay away. It warnings to stay away. It comes after dozens were shot dead at the weekend. They are calling for the return of the de pested President. Fiji has spoken out against Australia's asylum deal with PNG. The Foreign Minister has accused Australia of pressuring a Melanesian Government to accept thousands of asylum seekers who are not Pacific islanders. He says theish you've asylum seekers is an Australian problem and the policy threatens to de stabilise local communities. The bomb squad has carried out more controlled explosions at a house in Queensland. They are still at the property in Ipswich searching for more dangerous materials. The emergency began five days ago when a man was seriously hurt in a chemical blast. At another man has been remanded in custody after appearing in court. And scientists have developed a sack vein that has the potential to daughter cancer in dogs. Early tests showed it prolonged the live of those with advantaged cancers and it is hoped the tebling followy could be used to treat humans. The trials are expected to start in 12 months time.

Tonight - the gas-fired ad blitz. The industry's launched a pre-election spray, taking aim at green and red tape. 150,000 new jobs that the industry can create are threatened and more than $40 billion a year in new exports would be at risk. I'm Ticky

Business'. This Program Is Captioned Fullerton. You're watching 'The

Business'. Live.

Gas producers are on the offensive, but so are manufacturers crying poor over spiralling energy costs. The explosive argument. Local industry demanding lower gas domestic prices. Counting the cost of a 2015 surplus. Why the Rudd razor gang has its work cut out. And - Australia choking on exhaust. Estonia the surprise winner in the electric car race. First a quick look at the markets. Japanese investors took another huge hit as the Nikkei dived more than 3% to a one-month low.

The gas industry with its $180 billion investment pipeline is the resource that should keep the boom and exports alive. But the sector has been hampered by a big slowdown in projects thanks it says to red tape, objections by green groups an some locals. And local manufacturers are stepping up their campaign to have some of Australia's gas reserves set aside for domestic use. So gas producers are launching a campaign of their own. Neal Woolrich reports. In 2010 it was the miners, now the the gas industry is launching a pre-election advertising blitz.The 150,000 new jobs that the industry can create are threatened. Gas producers say they're operating in one of Australia's most heavily regulated industries. Covered by 150 different laws and 50 government agencies. And that's putting at risk a $180 billion investment pipeline.The costs of developing these projects in Australia right now Right Australia right now are rising.
Right at the time international competitors are
also coming on Right at the time that our also coming on stream. The industry is launching also coming on stream. multimillion-dollar advertising
campaign to warn against

campaign misinformation about campaign to warn misinformation about gas and cut green misinformation cut green tape.Developing these new supplies is if Australia these new supplies if these new supplies is critical, downward pressure on gas if Australia is going to put prices, it's critical if downward pressure on going to meaningfully and affordably address climate change, and it's critical that we develop these projects if we're going to we're going to bring on stream the next wave of Australia's resources boom.But some argue gas producers haven't done enough to address legitimate community concerns especially about coal seam gas.Talking about the economic benefit of gas exports is fine, but that isn't the concern. They also have to address quite clearly and upfront the real concerns that some people have. While the gas industry launches its offensive, at the same time it's facing a counter-campaign from manufacturers about a looming gas supply shortage.When the export facilities and export markets were opened up we were told there was F-111 tee of gas for both domestic users and the export markets. What we're now saying is there going to be a shortage of gas in domestic markets. Manufacturing Australia says the price of gas has trebleed in some cases an local manufacturers can't secure supplies beyond 2014 because of the booming export market for Australian gas.This is an urgent crisis that needs to be dealt with very quickly and otherwise we are going to lose factories in Australia and companies like mine will develop offshore.The fact we're exporting gags at a high price still means that those who get that gas in Asia will be paying a much higher price than our domestic gas consumers. If we can't compete with them we've got to ask what we're doing. The Federal Resources Minister recently ruled out a gas reservation policy but Kevin Rudd has put lower energy prices at the top of his list for improving Australia's productivity. Just how we will do that and keep the gas producers, manufacturers and environmentalists happy is another question altogether.If you pressure on rising gags you want to put pressure on rising gags prices, then you pressure on rising then you need to increase gas supplies. And Michael Bradley says the supplies. And Michael says the booming export industry is not the reason for higher pass prices.$3 gas went the way of 60 c petrol and $50,000 units in Bondi. Gas prices are going up because the costs of prices costs of doing business are going up. While APS says there are plenty of gas reserves around Australia, it warns that New South Wales is sleepwalking towards a gas supply crisis because of the excessive burdens it's placing on the industry. To hear more from manufacturers I was joined earlier by Sue Morphet the Chair of Manufacturing Australia. Welcome to the program.Thank you. You talk to manufacturing companies all the time. What is the situation for companies now looking to get a contract for gas supply?They basically can't. The big companies can't get contracts out further than two years. Most of them need to plan four and five and eight years out so they can build their plans, understand what
their production can be. It's a real issue for them. Where they can get them, they get them at prohibitively high prices. APIA the peak body for the gas companies have cranked everything up. Their campaign warns of anti-gas misinformation. I guess that's you guys amongst other people. They say you will jeopardise 150,000 jobs and $40 billion in annual export as soon asWe're not anti-gas. That neepds to be quite clear. We're very pro-gags. We are just - we just need a domestic market satisfied. If you don't look after the domestic market at the same time as the export market we will lose domestic value add as well as the domestic jobs. The first thing we need is for all new gas projects that we hold some of the gas for domestic use and all extended gas projects, we hold some of the gas for domestic use.This is for new gas projects. It would be impossible presumably to unwind the big contracts that are already in place?If there is an emergency, the government will have no choice. If we act now, the government will be able to do something about it and we will not have the emergency that is quite likely to occur. When we're talking about a new project, that would also include, presumably, some of the gas in northern New South Wales that the gas industry knows is there but is not yet a formal project?Sure. But even the ones that are more formal projects as they extend, we should be able to hold some of that gags. There are also 10ments that have been given the OK to go ahead that aren't being mined. If we can get the governments either State or federal to release those for domestic use, and we can do that quickly, and then we will not have to worry so much about tapping into the new liquid natural gas tract, most important thing we have to do and very quickly and I mean weeks, not months, is we have to get government, gas producers and gas users together, in the same place at the same time, to resolve this issue. Well, you're going to have a job. Because the gas industry is coming out and resisting your proposal strongly and somebody like Grant King from Origin would say that companies had claimed for decades that they would build more manufacturing facilities if gas was cheaper, but had never done so and protectionism simply doesn't work?This is not protectionism. These are companies that have been able to cope with high costs of employment, high costs of environmental regulation, all the things that make a the things that make Australia build anything in. They've a high-cost base to be dealt with all build anything in. dealt with all that. But
they've dealt with all they've built their industries
on they've built their industries on affordable competitive
energy, on energy, to enable them to energy, to enable them compete against countries that have very compete against countries have very low costs where we've have got high costs. You have very low costs where got high costs. You say that
Australia is the got high costs. in the world that allows unrestricted exports of gas. But this is another very complicated area, because both Manufacturing Australia and APIA on the other side are using the same countries as examples of - to suit their argument. I'm thinking the industry, for example, is saying the United States and Canada have no government intervention, Holland, Norway, they actually have wholesale gas prices which are set by the market.But Ticky they do have government intervention. The USA has only just allowed export of gags. Up until now, all gas produced in the USA has been kept for local manufacturing. They would argue that actually that's because the export market hasn't been developed yet. They haven't built ...Either way they still have needed to go to be
Congress to get the the OK to be able to export the gas. Canada do exactly the same thing. They have a national interest test. If it's in the national interest that we export you can export in Canada. In the meantime if it's not, it stays there for domestic use. The same with Qatar, the same with Israel ... Would you not be happy with a national interest test?That's what we're asking for but we can't wait a long time. We're saying, ring fence the problem. We have a problem that's going to be impactful within two years. Two years in business is no that out now. Where will the gas come from to look after industry between the two years like 2015 through to 23020? You're asking for more than a national interest test. You're asking for a domestic allocated reservation?We're asking for a domestic market to be developed. And it may well be that some of the tenements are actually taken and develop and used specifically for domestic markets. And they can be done by second tier providers not necessarily the big global gas players and that would do our market the world of good because then we would build a second tier in. Kevin Rudd has recently talked about high electricity prices and gas reform, on the top of his seven-point list. Now, presumably that does not actually mean an allocated domestic reserve. Even though it appeared - I thought that's exactly what he meant.We had a moment of excitement there when he shade that, but nevertheless, what we do need is we want people to set up and realise that there is a problem. Sue Morphet I'm sure it will be an issue during the campaign. Thank you very touch for bringing it to us.Thank you.The competition watchdog has taken aim at the big two supermarkets over shopper dockets and the escalating petrol price discounting war. For their big-spending customers Woolworths is offering discounts up to 45 c a litre and Coles is slashing as much as 40 c a leet term. The Australian Competition and Consumer Commission head Rod Sims says his initial concerns have intensified.We've had concerns for some time but when it went to 8 c a litre over five months, when it says at that level for that length of time it's very hard for other players to compete. The ACCC is calling on the supermarkets to discount products and not petrol. As the economy deteriorates so does the government's budget bottom line. In just three months since the May budget, the government's budget hole has grown by an estimated $20 billion over four years. Analysts say making up the lost ground won't be easy. A new Treasurer, but the mantra isn't much changed from his predecessor Wayne Swan.Sticking to the strategy. Which includes the return to surplus in 2016-17 and obviously stepping towards that. So the surplus quest is still on. But the government's expected to need at least another $20 billion through tax hikes or spending cuts over four years to get there.If that was the case, then we would see that $7 billion a year, that's worth about .4, .5% of GDP. It's a fairly substantial number, yes.And it's a fairly substantial number that will be harder to achieve because of the cuts that have already been made. There are reports that public servants are a target with schools and hospitals the only protectsed areas for now.That gets harder and harder as time goes on is the low hanging fruit is taken up. It becomes quite a difficult task. It becomes quite difficult to not impact the they when making those kind of cuts. The surplus timetable isn't the only fundamental government commitment.Our key strategy, our key objective is to ensure that we continue to support jobs and growth. As Europe knows only too well, budget cuts while supporting jobs and growth is an extremely difficult exercise.Should the government be contemplating big spending cuts or increases spending cuts or big tax
increases now, in deliver a budget timetable deliver a budget timetable that was drawn up in different circumstances, was circumstances, then my answer to that question in the here and now to that and now would be "no".While
Chris Bowen has committed to a budget surplus in four years, there was no such commitment to deliver a balanced budget in three years as forecast in May. It suggests the government will leave the heavy lifting on cost cutting to the outlying years.What we wouldn't like to see is the wind knocked oust chef's sails before its found its course. To that extent discretionary fiscal policy cuts are quite tricky. It's a matter of timing.It and it may be the government's own economic statement or Treasury' pre-election economic and figs kal outlook called PEFO undermines its steadfast commitment to the budget surplus timetable.If the economy has deteriorated further since the budget was brought down or if Treasury' views about the outlook have changed by that amount, then my own view would be not to be too headstrong in adhereing to the previous timetable.Jelena Dokic isn't committing to any of those numbers, once again casting doubt on Treasury's work.The coalition needs to be careful not to unduly alienate public servants whom they hope will be working for them. It will be interesting to see the immediate improvement in Treasury's credibility should Joe Hockey become Treasurer. To the local market now. Ken Howard from RBS Morgans was on hand to spot the highlights. A bit of a flat start to the week. What are we all waiting for? A cheerer picture from the US?I certainly think that's part of the driver for our US?I market. But part of the driver market. But we need to remember our market is sitting around 5,000 points. We've staged quite a recovery over the last four weeks or so from recent lows but as you said there's important economic news that's due out in the next couple of days. We have the US Federal Reserve meeting on Tuesday night and we have Glenn Stevens here in Australia talking about the outlook for the economy and hopefully will give us some pointers as to where the RBA might go with interest rates next week. 5,000 points for our market, it's a pretty solid level. We have reporting season starting on us shortly of it's good to seat market holding that level despite some fairly weak leads out of the the US and commodity markets on Friday night. To some stocks. I see Rio Tinto has sold its majority stake in North Parkes copper and goldmine to the Chinese?Normally an $800 million sale would be a considerable transaction, but Rio's $100 billion company. $800 million is a drop in the ocean as far as they're concerned. Investors should take part that Rio continues to execute on its transaction of rationalising its balance sheet and its operations, and no doubt continues to focus on its cost-out program but to move that Rio Tinto price you need to be talking an iron ore story, copper's important to their operations but iron ore's contributing close to three quarters of the company's earnings. So a positive announcement but not enough to change today's price. And still on asset sales, what do you make of trans-Pacific's disposal?That transaction is considerably smaller but then again so is trans-Pacific. A $220 million disposal of their commercial vehicles operation, it's something that makes a lot of sense and certainly that's part of why the share price was up quite strongly today. It was up 8% for most of the day. So the company will be using those proceeds to reduce the company's debt level, they still have close to a billion dollars in debt. It's a bit of a hangover from the GFC and investors will be look forgivo for that debt level to come down probably about another $200 million again after this transaction has settled. So a bit of positive news there and no doubt trans-Pacific shareholders will be looking for more positive economic news to generate some more waste and generate high revenue and earnings for TPI. I see 'Four Corners' is digging into the Nathan Tinkler story tonight. Of course, the jewel in the crown for Nathan Tinkler was his Whitehaven. Now that had an update to the market today?It was a very solid update for Whitehaven Coal. Not a lot of new news but I think really the macro picture is there for Whitehaven of a weak coal price is what's dragging on that share price. The good news for Whitehaven is the Maules Creek project has been approved by the effect and no doubt they will be seen to start on that as soon as they k albeit that there is that court action which may delay things. For Whitehaven Coal they really need to expand their output, they were doing about 5 million tonnes 12 months ago, they really need to get up to about 20 million tonnes to be able to reach that point where the efficiency is being achieved out of their infrastructure. So not a lot of news in today's announcement to drive the price. It really is all about the coal price when it comes to Whitehaven Coal. Ken Howard, good to have that catch-up. Thank you.Thank you Ticky. To the other major movers on the local share market:

Quite frightening new figures show hundreds of Australians die every year due to exposure to traffic pollution. While it's a wake-up call for people in the capital cities, government is accused of being asleep at the wheel. Electric vehicles are part of the solution, but while Europe is leading the charge on zero-emission cars, Australia's not yet in the race as Emily Stewart reports. Traffic pollution. It's an invisible toxin that kills more than 1700 Australians every year.The public don't realise gist how dangerous traffic pollution fumes are. Adrian Barnett is an expert in air pollution from QUT. He says in cities, 80% of air pollution is caused by
traffic. And worldwide, transport accounts for a fifth of all greenhouse gas emissions.It's been compared to second hand tobacco to second hand tobacco smoke. Very similar chemicals involved in tobacco smoke and exhaust pollution, a similar route of exposure and identical health effects such as respiratory and cardio disease.Darryl Budgen spent $30,000 on an electric vehicle after experiencing negative health impacts from pollution. It's win/win. The car is cheaper to nicer to drive. It's much more relaxing in heavy traffic. It costs him about $2 to charge up the car for a range of 100 kilometres.I just charge at home. Ochblg if you could charge out the car would have more utility. Teslla, Mitsubishi and others Selleck trick cars in the market, but the take-up has been incredibly slow with only 400 cars sold across Australia. The EU leading the charge in reducing emissions aiming to have at least 9 million electric vehicles by 2020. Tiny Estonia on the Baltic Sea is a surprise leader. It's the first country to installed a system of nationwide recharging stations. It's paid for by a CO2 emission quota sales agreement between the government and car maker Mitsubishi.We have 160 quick chargers and Estonia. They are placed in every 40, 60 kilometres. The government offers a discount of 50% on electric cars as well as grants to set up charging systems at home.All our electric cars are supposed to use clean electricity. It hasn't been easy. Electric cars are still relatively expensive, and there isn't much choice on the market. But Estonia now has one electric vehicle for every thousand petrol fuelled cars.We hope that electric cars will be at least 20% of our car fleet, but it will take a long time. And for Australia a lot longer. The experts say until there's a government-backed incentive not enough drivers will be making the switch. A brief look at other business stories making news now. A real nail-biter, that's the call from economic forecaster BIS Shrapnel on the sluggish place of the switch from mining to a construction-led economy. It's forecasting a pick-up but says it will be uncomfortably slow and uneven. New South Wales and Sydney will take the lead while the south eastern States will remain subdued. A so-called murder of equals has created the world's largest advertising firm. Omnicom and Publicis have joined forces to make a company worth more than $30 billion. The new advertising powerhouse boasts 130,000 iconic agencies Leo Burnett and Saatchi & Saatchi under the one Saatchi & Saatchi under the roof. The deal comes with several big deals already signed up. It's the rap to rip up red tape. SONG: # I'm a slave for the whole nation # Selecting all their superannuation # And nobody seems to give a damn # The collection process is one big scam # One big scam and it is I'm telling you. This slightly unfashionable rapper is better known as the head of the council of small business of Australia, Peter Strong. His Red Tape Nation is the Red Tape in his pitch against unnecessary bureaucracy. A look now at business news in overseas newspapers. Britain's 'Daily Telegraph' says Barclays is set to unveil a capital raising aimed at filling a hole thought to be as large as £7 billion as provisions against past misselling scandals continue to rise. I wonder how they'll do it? That's 'The Business'. You can catch the show Monday to Thursday at 8.30 each night on ABC News 24, as well as after 'Lateline' on ABC1. I'm Ticky Fullerton. Thank you for watching. Goodnight. Closed Captions by CSI.

This program is not captioned. This program is not captioned. This program is not captioned. This program is not captioned. This program is not captioned.


Tonight on The World - more marches planned Tonight on The marches planned in Cairo Tonight on The World marches planned in Cairo after Tonight on The World - the weekend killing of 80 pro-Morsi supporters. The EU's chief diplomat Catherine Ashton is in the Egyptian capital for urgent talks with the country's military leaders.

military leaders. Also ahead - the so-called PNG solution under more pressure with a growing mountain of rubbish on Manus Island and fears that facilities won't be able to cope with new boat arrivals. Dozens are killed after a bus plunges off an overpass in Italy. The passengers, many children, were returning from the pilgrimage. The driver is among the dead. And in the Cambodian election, the incumbent Prime Minister Hun Sen has claimed victory, but the opposition's refusing to accept the result, demanding an inquiry after citing electoral fraud. Hello, I'm Jeremy Fernandez, welcome to the program. Egypt is tonight back on the brink of more bloodshed. There are growing fears the military is deepening a crackdown that could esculate violence and instability. Security forces killed dozens of supporters of the deposed president Mohammed Morsi over the weekend, but members of the country's Muslim Brotherhood are showing no sign of backing down. In a moment we'll go live to Cairo for the latest, but first here's Philip Williams. This is the protest that just won't go away. Despite warnings from the new government, supporters of deposed President Morsi say they won't go home until the leader they voted in is restored. We are ready to die, not only 1,000, millions, we are ready to die. And no-one of all Egyptians, the people who are settling there won't leave this place, no, till they die. The sand bags mark the beginning of Morsi territory. Despite so many killed here over the weekend they're determined to stay. Some of the injured have returned to resume their protest. The makeshift hospital is continuing to treat the less seriously wounded from Saturday's violence, and after the nightmare of the past few days, doctors here are preparing for the worst. Saturday night was above any medical history have been seen before. And you're worried it will happen again? We hope not, but we must be prepared. The interim president has authorised his Prime Minister to grant arrest powers to soldiers. Many fear that's in preparation for a military push into this area. For many