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Live.

Tonight - big tobacco

prepares for a legal battle over plain cigarette packaging.

Hunger in the rogue nation - smuggled pictures reveal North

Korea's shame. Swimmer Nick

D'Arcy back in court facing a

civil claim by the athlete he

assaulted. And China offers a

helping hand to Europe's

troubled economies. Good evening and welcome to ABC News, I'm Virginia

Haussegger. The tobacco

industry has dramatically upped

the stakes in its fight with the federal government. Philip

Morris initiated legal action

over plans for plain tobacco

packages. It will seek billions

health minister says she is the legislation is enacted. The of dollars in compensation if

undeterred. Big tobacco versus big government, perhaps

inevitably this battle with moving to the courts. This is moving to

not a tactic, this is real. Philip Morris Asia sent

the health minister a notice of

claim alleging the Government's

plain packaging legislation breaches Australia's investment

treaty with Hong Kong where the

company is based. It argues

that believing trademarks from

packages will unfairly reduce

prices and profits by eff ektively

company's intel electch wall property. You may not like

tobacco companies or have any sympathy for us whatsoever .

The principal is the same you can't just take

property. If the government is

concerned it is not letting

on. If big tobacco think that

by threatening or taking legal action they will intimidate our

government into taking another

course they have picked the

wrong government. Nicola Roxon

knows there is little public

sympathy for the tobacco

industry and thinks there is

little chance its legal action

can succeed. We believe we are on very strong

of making sure we've got the

legal ability to do this and

that we are not in breach of

any of our international

obligations. Philip Morris action kick starts a three

month negotiation period. In

that fails the United Nations

trade court will hear its compensation demands. We

estimate that it will be - may

be in the billions. Like the

government, Philip Morris

claims a sound legal footing

for its action. Not everyone is

so sure. Philip Morris would

have to be able to indication

actions of the Australian detriment as a result of the they are suffering damage

Government through the

enactment of legislation and I don't believe that at this

conclusively point to that. Not point in time they can

so much an ambit claim but pre-emptive one.

The ABC has obtained revealing

footage of hunger and abject

misery in North Korea. It shows

homeless children begging for

food and a military struggling

to feed its soldiers. Risking

his life a North Korean

reporter shot the footage with a hidden camera and then smuggled it out. North Asia smuggled

commont Mark Willacy has more.

They appear malnourished, their

North Korean children are faces coated with filth, these

homeless left the beg on the

street, their parents victim of

hunger or the gulag. I am eight

this boy says, "My father died

and my mother left me." He

says, "I sleep outdoors." In this vision secretly shot a

couple of months ago it is

clear food is available but

almost all of it is funneled to

the military. Everyone must

contribute, including these

private stall holders who are

ordered to donate bags of rice. So this merchant complains, "My

replies the military business is not good." Shut up

administrator. Don't offer

excuses. The army once

guaranteed from the apocalyptic

famines that killed hundreds of

thousands now appears to be going hungry too. TRANSLATION:

Everybody is week. - weak.

Within my troop of 100 soldiers half of them are nourished. Of this was shot by

a North Korean journalist using

by an activist. TRANSLATION: a hidden camera.He was trained

This footage is important

because it shows Kim Jong-il's

regime is growing week. It used

to put the military first but

now can't supply food to the

soldiers. This reinforces to

fear that millions of North

Koreans are wastes away from

malnutrition with many faces

starvation. It also reveals Jong-un, the well-fed son of

Kim Jong-il is beginning to

impose his Will on his

impoverished people.This is

footage of workers forced to

build a railway line for the personal use of the man they

call the young general. Their

future leader, Jong-un. With

his identity disguised the man

who risked his life to shoot

this extraordinary footage

explains why he did

it. TRANSLATION: The life of

North Koreans has hit rock

bottom. I feel very angry about the succession to footage appears to show the

North Korean army facing severe food shortages. For a regime

that relies on the military for

its very survival, this prove disastrous. The Federal its very survival, this could

Government's promising a

low-income Eers will be over

compensated for the impact of a

carbon tax. A final deal is

still weeks away but Labor says 3

3 million households will

receive what it calls a

battlers buffer. We will make sure there is a safety net

there, a buff ever so that

they're actually getting 20%

more than the expected impact

on them of a price on carbon. A poll for from the Lowy

Institute has found support for

action on climate change is

slipping. Around a third of those surveyed said they are

not willing to pay a cent to

fight global warming. Cash

payments will be made available

to workers who have lost their

jobs under the temporary ban on

live cattle exports to Indonesia. The Government will offer a package including help to find new

jobs. It is urging the industry

to chip in by releasing an

contingency fund. The extra $5 million from its

Government has put forward an

income subsidy arrangement to

help those employees, industry representative body the MLA

should now step up to the plate

and meet that $5 million

contingency fund. The minister

says he might resort to

directing the MLA to release

the $5 million if it act itself. The former

Commonwealth Games gold

medallist Simon Cowley is suing swimmer Nick D'Arcy over swimmer Nick D'Arcy over an

assault three years ago that

left #4i78 with serious facial

injuries. Cowley says he was

humiliated, distressed and

embarrassed by the incident

that cost Darcy his berth in

the Australian Olympic swimming

team and a suspended jail

sentence.One hit cost Nick D'Arcy a large part of his

swimming career, it may now

cost him hundreds of thousands

of dollars. I just don't think

it is appropriate to comment just at just at this time. Darcy

shattered Simon Cowley's jaw

with his elbow in 2008 now

Cowley is seeking up to

$250,000 in damages. The two

men were drinking at a Sydney bar with some of Australia's leading swimmers after the

Olympic selection trials when

the assault happened. Freestyle

star Eamon Sullivan told the

court Cowley tapped Darcy on

the cheek during a conversation. Sullivan said he

heard a smacking sound and saw

Darcy Cowley slumped over

holding his face. I

know the whole story. I was

just a one so hopefully the police don't miss anything and

sort this out. Darcy was kicked

off the Australian Olympic team

after the assault. He argues

that he was acting in self

defence. Mr Darcy perceived he

was going to be struck for a

second time. He didn't know the

man, he was a bigger man. Simon

Cowley says his $40,000 out of

pocket for medical expenses and

had to quit a job in the

finance industry because

potential clients were more

interested in finding out what interested in finding out what

happened between him and Darcy

than actually taking up his services. Cowley says he was

distressed and humiliated by

media coverage of the incident.

He did receive $32,000 to tell

his side of the story to a

commercial television network. The hearing continues tomorrow.

The Chinese premier, Jay

bi-Jay, prom - Wen Jiabao

promised to lend a helping land

to European countries experiencing financial

difficulties. Wen Jiabao made

the announcement ahead of a

business summit with David

Cameron. The meeting will

result in deals $1 billion. Par par

He may be one of the He may be one of the world's most powerful people but this has been a relatively has been a relatively low-key

visit so far. Business is the focus, a faltering global

economy the background fear.

Here was a tangible reminder of

China's economic clout. Premier Wen Jiabao was on hand at the

release of MG's latest model.

The factory was saved by a Chinese company buyout, the

design and assembly may be

British but the parts are made

in China. UK business wants

more deals

does the government, anxious to

rebalance the lopsided trade accounts. TRANSLATION: At home

we are going to further stimulate domestic demand and

are going to reduce our for

trade surplus and our reliance

on exports. While he is due to

beat the British Prime Minister

David Cameron the Premier's

message is intended for more

than just one country. He

promised support for embattled

European economies like Greece. TRANSLATION: We have

done this for Hungary and will

do the same thing for other European countries. So as we

often say, "A friend in need is

a friend indeed." This was not

all business and politics, Premier Wen Jiabao took time out to indulge a personal

passion for the works of

Shakespeare at the barred's

birth place. Despite the

perhaps strategically timed

release from jail of several

prominent Chinese disdefnts he

will still hear more from David

Cameron about human rights but

business, trade and global

economics are certain to dominate.

A UN backed tribunal in Cambodia is holding its first

hearing in the trial of four

former Khmer Rouge leaders. former Khmer Rouge leaders. The defendants includes the man

known as brother number 2 from

Pol Pots regime Nuon Chea. He

and the three others have been

charged with genocide relating

to the deaths of about 2

million Cambodians in the late

70s. All the defend daents have

denied the accusations. Our main objection was against the

judicial investigation carried out by the investigating

judges. That was so unfair that

we think these proceedings

should be determine Nated. The

trial proper is likely to start in September and could last years.

The chief minister has challenged the Liberal Party to repay $10,000 in assistance

designed to help volunteers

during the global financial crisis. The crisis. The ACT government

support was provided in 2009 to help cover transport costs for

volunteers whose work directly The funding was administered by

Volunteering ACT which handed

over money to a ring of groups

from sporting to organisations to SES

volunteers. Political parties

weren't specifically excluded

from receiving cash handouts

but the government says the

Liberal Party took advantage of

a loophole. The challenge is to the Liberal Party to return

that money themselves. It has

shocked and surprised everyone

that they applied for it.

Shocked and surprised everyone

they were granted it and now it is

return the money back to the community. The Liberal Party

issued a statement saying it

accepted funding in good faith

on behalf of its volunteers. It

accused the government of

attempts to divert attention from funding it receives from

the Labor clubs. The ACT new

emergency services headquarters

in Fairbairn has been mired in

controversy since its

inceptions. There have been

delayed, cost blowouts and concerns about poor planning.

Some staff were forced to move

out when the building flooded and now unions are

concerned that the

purpose-built building is about

to be outgrown.Canberra's

deadly 2003 firestorm

highlighted the need for a emergency services headquarters

but when the Government

announced in 2005 it would move

operations to Fairbairn the

headaches began. The transition

to Fairbairn from Curtin has

been fraught with issues from

when the process began. After long delays and a damning Auditor-General's

purpose-built building finally

opened late last year. It is

still not fully operational. A

December flash flood forced

triple 0 staff back to the old to Curtin headquarters and they are yet to return. The issue is

not just to do with the floods

but with things that weren't

done before our guys moved in

there. Our members are still

concerned ha the communications

centre needs to meet industry

standards when it comes to infrastructure and

equipment. Staff hope to move

back soon but the unions say it

should never have come to

this. The lack of effective and we ended up with a facility

that was not necessarily up to scratch. It was always the case that as the transition to

the new headquarters occurred a

range of issues would identified by staff and that they would be wreckty tied as the relocation took

place. Something you need to

get right first time. There are

no second chances when it comes

to calling triple 0. The unions

say the ESA is working to

rectify outstanding issues but

as one set of problems is

resolved a much bigger one emerges. Members that as the ambulance service

grows there won't be sufficient

space at Fairbairn to meet that

ever increasing demand for resources. Those claims are not

correct and for

future the ESA headquarters can accommodate growth. The problem

is this government doesn't plan

properly. They don't look to

the future and they don't make good decisions because they

don't have good processes in place.

As Canberra grows so too does

the need for more frontline

services and the unions are

worried what past experience might mean for future consulted with properly then we will end up in the same

situation we are now. The

Government can't afford a repeat of history.

A new report has founds

Canberrans in urgent need of

public housing are missing out

because of problems within

Housing ACT. The only butsman's

report highlights the case of a

single mother of three who

failed to be prioritised for

urgent housing because of

procedural problems. It says it

dealt with dozens of complaints in recent years. The minister says Housing ACT is already responding. Increased

training for staff, we have put

in place an allocation so all applicants come through to have

a single case manager. We've

also put in place a central

access point so improve our

gateway services, to improve

our application processes. But

the Liberals say it is a

symptom of a much bigger

problem. What we are seeing is

people getting driven out of the private market simply

because they can't afford housing, they can't afford rent

and they have to go and take

their place in a queue for public housing. The Government

has accepted three of the

report's four recommendations.

The outgoing chief of the army has admitted that the

Defence Force has faced some

dark days after a number of recent scandals. Lieutenant General Ken Gillespie says the

military fought back and now

has a culture Australians

should be proud of. He was at a

graduation ceremony marking the centenary of College Duntroon.

This was no ordinary

graduation.While today's army cadets marked cadets marked a personal milestone they were also

marching in the footsteps of

alumni. History does mean a lot

to me. There is also a personal

history, I have had two older

brothers come through here. For

them to be here, my family be here on the 100 year

anniversary it is a pretty big deal. Having graduated from

here 70 years ago, I can still

remember the place very

course. Royal military

graduates have fought in every theatre involving Australians

since World War I. Duntroon

took its first cadets in took its first cadets in 1911. 32 Australians and 10 New

Zealanders. Gordon hard castle

has - Gordon Hardcastle

noticed some startling changes. Good heavens, I can't believe you believe you have women in the

army today but they seem to

parade well and march well and

fit in well. We're just one of the corps and so as far

as my exposure to defences

culture towards women thus far

has been fairly good. That culture has come under question

following the Skype sex scandal and blame claims of

bastardisation. The youth going

army chief admits the Defence Force has faced some dark

days. In any institution there

will be a small number of

people who will let us down. I

don't actually see that we have

a major cultural issue but I do

think we have a cultural issue

where some minorities simply

don't get it. He spent the last

day of his inspecting our newest soldiers but paused to remember the

fallen. It leaves a America on

you so those 23 people that

have died and the 200 odd that

have been wounded have been wounded has been a

pretty big burden on my shoulders for the last three

years. He now passes that honour and responsibility to

the next generation. The Federal Court has today

raised the bar of responsibility for company

directors. The court has ruled

the directors of the giant

their duties by not picking up

billions of dollars in errors

in the accounts. The 2007 directors approved the accounts

that show the that show the company had no short-term debt, understating

the situation by about $3

billion. It's a landmark

decision in Australian

corporate governance. I think

it does send a very clear

message to boardrooms across

the country about corporate accountability. The decision

was a welcome boost for the

corporate regulator that suffered pro-file legal defeats. ASIC is

due to make submissions about

penalties in August. To finance

now and both the local share

market and the Australian

dollar had big falls today as global investors global investors continue to

worry about the situation in

Greece. Here is Alan Kohler.

The markets are stuck on a

greasy poll as it were. It doesn't really matter whether

Greece defaults or no.

Investors are in risk off mode.

They are reducing their

exposure to risk assets and

that means shares. There was

buying interest in Chinese Indian stocks this afternoon

and especially Australian

shares down 1.1% today. All of

today's fall occurred in the

first 15 minutes first 15 minutes after which the All Ords was steady for the

rest of the day. There were big

declines among the banks and industrials for example CBA,

BlueScope Steel 5%, Leighton 3%

and Telstra went against the

trend but only managed to put

on a cent. Commodities are

being hit. To today it was down 3% in Malaysia and gold

fell on Friday in New York to

exactly $a 1,500. The Aussie

dollar is sinking as well. As I mentioned

mentioned last week the US

dollar is not my idea of a safe

haven but what do I know? When

investors reduce risk they sell Australian dollars and buy

American ones. Our currency is

down almost a cent today to

just above 104US cents but the

falls against the other

currencies like the euro and the yen are very small. You have heard about the economy well here is a graph

that estimates GDP for each of

the states and compares it with the long-term average. It is

actually three speed. WA at 3.5%. Queensland at 0, thanks

to the floods and everyones

else between 1% and 2%. More interestingly all interestingly all the states

are blow average, including WA.

That is why it doesn't feel

like a boom, it's not. That's finance.

Germany's Sebastian Vettel has

continued his dominance of the Formula 1 season with another

big one. This time at the

European Grand Prix. His team-mate Mark Webber finished third after a battle with

Ferrari driver Fernando Alonso.

The Australian says if it

wasn't for a miss timed pit

stop he would have finished

higher.For the sixth time in eight starts this year a much-anticipated Formula One

Grand Prix became a parade.

Sebastian Vettel's 16th career

win was one of his most

convincing, a scorching Spanish day produced an unusual occurrence. made to it the finish line. From second on the grid Mark

Webber could not hold off a sequence of attacks from

Fernando Alonso in his Ferrari. The 34-year-old Australian

believes he may have been able to reclaim second place if he

decided to pit stop straight

after the Spaniard in the closing stages. I lost out. Fernando stayed in for a few

more laps. My fault to get

second time. Webber lies equal

second with Britain's Jenson

Button in the driver's

championship, 77 points behind

Vettel. A sellout crowd of more than 70,000 stadium witnessed the Opening

Ceremony of the women's soccer

World Cup and Germany's 2-1

Quinn over Canada. Canada's

goal came from a free kick late

in the game. What a strike. In

the other group A game, France

defeated any gearia 1-0. Yani

Tseng underlined her status Tseng underlined her status at the world's top female golfer

with a 10-stroke victory in the L PGA Championship. American

Morgan Pressel was second.

22-year-old Tseng doubled her

third round lead with a final

round 66

tournament 19 under par. Tseng

is the youngest golfer of either sex to win four major

events surpassing Tiger Woods and South and South Korea es-Ser Ri Pak who were both 24 when they

achieved the feet. The hooky

Roos suffered a defeat at the women's trophy. They slipped behind

behind against New Zealand and claused two goals back but

after two losses have only a

slim chance of playing for a

medal. Australia's men basketball team series win against China. The understrength Australians won 62-57. recruited a new centre from the

NRL. Josh Tomane, currently

plays for the Gold Coast

Titans. It is one of the early

steps of a rebuild after the

Brumbies suffered their worst

ever season in Super Rugby. The

sacking of the coach and poor

crowd numbers made crowd numbers made 2011 a

season to forget

faithful.For Brumbies fans the

club's round 1 win over the

Chiefs is a distant memory. Victories were hard Victories were hard to come by this year the rots starting in

round two with a loss to the

Melbourne Rebels. It's into the crowd,

crowd, it's history. Unhappy with

with their coach Brumby's

players led a result and any

friend's season was over after

two rounds. That was a decision

we needed to take in the best

interests of our members

give ourselves a chance of

winning in 2011. Hopes of

getting to the finals, let

alone a championship quickly tieded as tieded as losses piled up. Matt Giteau was a consistent

performer but few could match

his per severe Rance. A host of

senior players announced they

would be playing elsewhere next

season. The appointment of Jake

White as next year's coach

lifted supporters' spirits but on the park the season

continued to deteriorate with one one of the worst ever Brumbies losses to a struggling

Johannesburg Lions squad in

Canberra. We just have too many

people in an organisation that makes

makes too many soft decisions

and you have to put

places that you don't want to

go to. We have never been able

to do that. It is a charade

really, the effort here. Happy

to be proven wrong by the way, don't think they will. That

match set another unwanted

record, the lowest home crowd

for the Brumbies since 1999.

There were hopes of a late

turnaround in the final month after an upset win in Queensland. It's over!aren't

they happy? The gloss of that

match was removed in the match was removed in the season

finale, a them ing at the hands

of the Waratahs was a final

reminder that the Brumbies have

a lot of off season work to

do. It has been the worse

season on pap forethe Brumbies

in 13 years. Fans hope it is at

least 13 years until they have

to endure another season like

this one. Now with a look at today's weather here is Mark

Carmody.Good Evening. I met

some pretty inspirational

people today when I went to the

15th birthday bash of the big

issue. The weather over the

last few days has been

inspirational as well. Cold

frosty starts followed by fine

sunny days with mostly light

variable winds and that is what it

it was like today, minus 5.

That is our coldest start for

this month, then a sunny 15. A

perfect winter's day in the

capital to blow out 15 crisp, there is no wind to

speak of and it is a cool 4

degrees. Now, what do they say

about Queensland? Sunny one

day, perfect the next? That's

what happened around our region

today. Sunny and dry with light

winds from the black stump

which some say is

which some say is near Rankine

Springs to the coast. Minus 4

starts in Yass and Goulburn and

a maxes of 60ks in Griffith. Around the nation today:

The Australian continent is clear except for some high

cloud over the centre and a

broadband of cloud that is

approaching the WA coast. That cloud is associated with a

trough and a front that will

bring rain and strong winds to of the continent a slow-moving

high will intensify so our

regions dry and sunny days will

continue. In the state's capital tomorrow: With all this sun I went

looking for a yellow flower to

emphasise this current run of fabulous Canberra winter

weather and I found this primrose jasminium. It is primrose jasminium. It is a

cracker. Before we go a brief

recap of the top stories tonight. The tobacco industry

initiated legal action against

the Federal Government over

plans for plain tobacco

packaging. It says it will seek billions of dollars in

compensation. Hidden camera footage smuggled out of North Korea obtained by the ABC shows

the isolated communist state

struggling with widespread

hunger and crippling poverty.

That is the news for now.

Coming up on 7:30 Coming up on 7:30 the untrained school chaplains who are counselling students and

preaching religion in Government schools. Closed

Captions by CSI.

Tonight - the government-funded scheme for

school chap chaplains. But

now the backlash. Are they

overstepping the mark? They may

make mistakes that will damage these

these kids in the long term. Sydney and doctors blowing

the whistle on a health threat to northern Australia. This Program Is Captioned

Live.

Welcome to the program. I'm Leigh Sales. The National School Chaplaincy Program has been controversial from its

first day and with a High Court

challenge and a federal

investigation under way, that