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(generated from captions) from the rest of the panel. Let

east hear from Sarah

Hanson-Young. I agree that I think Australians are overwhelmingly come pash Nate.

We are the country of a fair

leadership in the country that go. It has

has let us down on this. What

we saw from the documentary is the decency of the navy

officials who actually trying to do the right thing, who were questioning what they

were being asked to do. They

were let down by the

people. We have asylum seekers politicians. They are good

who come here because they want

the protection of our borders.

They are invoking the

protection of our borders. They

are not here to break them.

They are saying, "We need some soon as we start rehumanising

hearing people and putting the face and

hearing the stories most Australians do get it. David Marr. It is a sad reflection

that even after we knew

Australians knew - what had

happened in Auschwitz there

were still very strong

opposition to allowing Jews

into this country but what there was in those days, first

under the Labor Government of

Ben Chifley and then under the

Liberal Government of bob

Menzies, was terrific political

leadership that got the

we will look back now on this immigration program rolling and

time with bewilderment I think.

Already the Vietnamese seem to

aren't have been with us forever and

aren't they terrific. 30 years ago they country. That is what gouf ago they were a menace to this

said. You bet, Gough did say

it. I agree with Ray. We need

to remember those in Kenya, the

ones in Burma and the ones I

met in Malaysia. They are the ones that

ones that don't have a voice in

remember this debate. We have to

now there should be a documentary on those who will

go to Malaysia and I appeal to

Chris not to go ahead wit. The

Malaysian people are the most

amazing people I have seen on amazing people I have

earth. I am a different woman

because of the support and the

passion they have given to me

and the changes they made to me

and my family. The only problem

that I see today in Australia's

policy is that refugees has

become a political game. It has

still been a political game. We

talk about Africans but there

are more people not only

Sudanese and Africans, Afghans, Iraqis and

mention. The constant talk about Malaysia and Malaysiaa is

not an signatory to the UN

convention and accepting a huge

number of asylum seekers. Why

can't Australia? All we can do

is offer our hand and give that

#130r because you have done it

beautifully and that is why

Australia is the best example

today because of if support

they have given to us. It is

very good to go out on a positive note. That is all we

have time for tonight. Please have time for tonight. Please

thank our panel, ask ask ask, Chris Bowen, Sarah

Hanson-Young, Najeeba Wazefadost, Scott Morrison and

David Marr. Thank you very much

for joining this special

edition of 'Q&A' tonight. We

will be back on air this Monday

with another special when Prime Minister Julia Gillard faces

the 'Q&A' audience. This Sunday

she will announce her plans for

a carbon pricing scheme and on

Monday night she will answer

your questions. It is the issue

that will define our prime ministership. So please join us

next Monday. We will be back at 9:35 to see Julia Gillard

answering your questions on

'Q&A'. Goodnight until

then. Closed Captions by CSI.

This Program is Captioned Live. Order! Tonight, on the

eve of the big carbon tax sell,

the political games continue. 500 companies have gone missing. aircraft carriers but much companies? They are like

bigger. What are they, in the

dispatch box, are they under

the table? Where have the table? Where have they

gone? They wanted to have a

campaign about how wide the

scheme was covering and now

they can see that they can see that scare campaign shrivelling before

their eyes. Good evening, welcome Good evening, welcome to

Lateline, I'm Ali Moore. Six years ago the former president

of Lebanon Rafiq Hariri was

assassinated. Now a UN tribunal has issued indictments naming

four leading members of

Hezbollah and in no small part thanks to the work of an Australian police officer. Deputy Police Commissioner of the New South Wales Police Nick

Kaldas spent a year as the

tribunal's chief investigator.

Now he is being targeted by

appears to be a campaign to Hezbollah as part of what

discredit him and the tribunal.

Tonight, Nick Kaldas breaks his

silence on his part in gathering evidence against

those who killed Rafiq Hariri.

I think with the indictments

having been handed the international community and the donor countries who helped

establish the tribunal, in my view have a moral almost sacred view have

obligation to see this thing through, to end the kults of

impunity and to get justice for

the victims and their families. Nick Kaldas, New Commissioner, later in the

program. First our other

headlines. The families of Britain's slain servicemen may

have been targeted by 'News of

the World' hackers. The death

of an Aboriginal elder in WA

from heat stroke after a trip

in a prison van resulted in a

$285,000 fine. In last communist dictatorship,

citizens face arrest for merely

clapping. Parliament has

broken for its winter break,

but not before another tumultuous Question Time, the last before the government reveals

reveals the design of its

carbon tax. The tax is under of

understood to begin at $23

tonne, $3 lower than Kevin

Rudd's abandoned CPRS and narrower in scope. With petrol

out, the carbon tax will now

just cover 500 businesses. The

government has been

1,000 would pay, right up until

companies? They are yesterday. How do you lose 500

companies? They are like

aircraft carriers but much bigger. Are they in the

dispatch box, are they under

the table? Where have they

gone? The opposition was

making the most of Question

Sunday's unveiling of the Time. The government

carbon tax to coincide with parliament's winter recess. She won't face questions in the parliament and parliament and now she turns

her back. How childish, how

immature, how cowardly is this

Prime Minister. The Prime

Minister says she will have

plenty to say after the

Sunday. The Leader of the Opposition increasingly will Opposition increasingly will be

exposed as someone who went about generating fear with hollow

no ideas for the future, just

relentless negativity and the

saying of no, no and no. No,

no, no, no. Labor has already

launched an online attack ad

against Tony Abbott, focussing

on what it says is his

favourite word. No, no, no.

The government has also been

under attack from a group of

its own backbenchers who pushed for trade with Indonesia. We are

saying that we have serious

concerns about the resumption

of the trade. They want stunning to be made compulsory

in Indonesian abattoirs but the Prime Minister has already

squashed that idea. Australian

standards do not mandate the

use of stunning. From cattle

to carbon tax, it's been a

tough year so far for the speaker of the house. Order!

Harry Jenkins has battled to

keep order during bitter heard of the HGI, the Harry

Grumpiness Index, but it's very high.

high. The index got higher

today when Labor backbencher

Joel Fitzgibbon catcalled Julie

Bishop. There was an Inc. debt

during the deputy leader's

speech that if I knew who the

culprit was - order! You can

point your fingers all you like. It is very important

that you look to the tapes to

find out who made that catcall. I I think it is an outrageous

slur. We all know who it was,

the press gallery know who it was and I invite him to apologise to the House. I believe there were a number of

interventions from this part of the House during the provocative speech from the deputy Leader of the

Opposition, and I do a

catch-all apology for any that

I may have made. Labor members

complained when a Liberal

Senator catcalled Penny Wong

earlier this year. Oh, yes,

why don't you meow when a woman

does that? That's a good idea.

The Prime Minister showed consistency

consistency in taking Joel

Fitzgibbon to task. I will be

requiring him to apologise personally to the deputy Leader

of the Opposition. Mr Speaker,

I rise simply to thank the

Prime Minister for what was an

extremely gracious statement

after what was quite a taxing debate. I thank both debate. I thank both leaders. I genuinely thank both

leaders. The house was able to

rise on a more civil note than year. Just a few more days

until the carbon tax is fully

revealed and with it a whole new round of arguments.

new round of arguments. A review of review of ore's nuclear

industry regulator ARPANSA has

found an improper relationship

with a main agency a it monitors many the Health Department's audit and fraud control branch has been

investigating how ARPANSA

handled allegations of safety

breaches and bullying at the

nation's only nuclear reactor in Sydney. Whistleblowers had

alleged ARPANSA and the which runs the Lucas Heights

research facility, ANSTO, were to close and that safety reports were being reports were being compromised. The Health Department review

questioned ARPANSA's impartiality. It says the whistleblowers are right and

the people raising concerns

about practices with hazardous

materials were right to raise

their concerns and it tells us that the regulator and the

regulated were too lows. The Federal Government is reviewing ARPANSA's regulator powers, with today's report

recommending they be

strengthened if necessary. The The fall-out from the 'News of the World' phone hacking scandal is spreading. Police

are investigating the

possibility that phone hackers

working for the tabloid may

have targeted families of soldiers killed in Afghanistan

and Iraq. The Royal British

Legion, the English equivalent

of the RSL, has evidence erred

its ties with 'News of the

World' and the British Government has announced it will review its advertising contract with the paper.

Philip Williams with the latest

developments. Just as the

nation was coming to terms with the latest hacking the latest hacking revelations,

another low point in a very

sorry saga that still has the

capacity to shock, this time

the news that families of

servicemen and women killed in

Afghanistan may have had their

phones hacked We are trying to

find out if the phones have

been hacked. We want to know why it has taken them so long

to come out, when it's been

there since 2006, why were not

the families not informed about

it. Already the it. Already the British

legion, the equivalent much our

RSL, has cut ties with the

'News of the World'. They had

collaborated with the help for

heroes campaign supporting injured soldiers. Advertisers

are desert, the paper. Rupert

Murdoch has expressed his

disgust with the latest raft of the revelations but reiterated

his support for Rebekah Brooks,

who is leading an internal

inquiry. These are all

crocodile tears from News International. They knew what

was going on. How can an editor

who presumably reads the paper

they said its not know where the story comes from, especially in the Milly Dowler

case, they referred to the

phone messages in the newspaper

article itself. To my mind, it

makes Rebekah Brooks position untenable. If she had a shred

of decency, she would go, it

happened on her watch. MP

Chris Bryant has been campaigning for years campaigning for years for full disclosure, not just from the newspapers but from the police,

who after an earlier inquiry

said there was nothing in the documents

documents Everything coming

out now the police had in their files

files in 2006 and did nothing

about it. Why? A lot of us

think this stinks. It's a long

way from a News International

statement two years ago issued

in which it states:

That there was systematic

corporate illegality by News International to suppress

evidence. Those conclusions may

need a little updating as the

public and lawmakers

demand a full account of what's

happened Astonished, frankly

astonished that people working for newspapers should be

hacking into the phones hacking into the phones of

murdered children, and families

of murdered children. It is

beyond belief, it's despicable. Privacy campaign

ers like former Formula One Max

Mosley warn some involved may

have good reason to fear what

lies ahead. I could quite

possibly see at

level of newspaper, News

International in this country,

could see them prosecuted and

possibly sent to prison because

under the Act if you are a director and you knew what was

going on or even you were

negligent in any way complicit

or negligent, you are just as

guilty of the hacking as the

man who did it. Nervous times

ahead, and this is about no

means the end of the revelations. Now with developments moving quickly London, we are joined by Philip Williams. I understand there

are reports of imminent arrests. What can you tell us?

There are media reports that

perhaps up to five people are about to be arrested. The

police are not saying anything

and I cannot confirm that, but it may be consistent with what

is a very fast moving story. Perhaps later this afternoon we

will know more. Is it really

likely that the problems are

limited to just 'News of the World'? Is there publications could be involved? Absolutely. I have some rather interesting information on that front. I

can't tell you the source but a reliable police reliable source told me that

police are in possession of

hundreds of thousands of other

documents unrelated to this

first tranche, the current

investigation, and that they may indicate that other

publications were indeed

involved. I am sure there will

be some rather nervous editors

and perhaps journalists at

other newspapers as well. Just

understand - we heard it at the beginning beginning of that story, companies have been

distancing themselves, now the

government is as well? Absolutely. The government Absolutely. The government has been adding to the commercial interests that have been

heading for the hills, trying

to disassociate themselves and

get as far away from the stench

of the 'News of the World'. The government is reviewing its advertising contract with the 'News of the

'News of the World', we have

herd that Asda, a large supermarket chain,

supermarket chain, is one of yet another chain of that have pulled out over the

last couple of hours. I am last couple of hours. I am sure there will be many more to

come. When you look at Sunday's edition of the 'News of the

very much thinner. Of An extraordinary story, developing

as we speak. Film films, thank

you. In the cal Carol

Magistrates' Court the WA Department of Corrective

Services has been fined

$285,000 over the death of an

Aboriginal elder. Mr Ward died

of heat stroke after being

driven across the a prison van in 2008. In sentencing, magistrate Greg Ben

said he could not apply the

maximum penalty of $400,000 because of the because of the state's early

plea, its contrition and the

speed with which it had implemented changes to the system. The security company

which operated the prison van

is yet to be sentenced. Lebanon's parliament debating whether to issue

arrest warrants for four men suspected of assassinating the country's former Prime Minister

six years ago. A United Nations investigation has identified

four members of Hezbollah, the

powerful Shi'ite militia, as

the prime suspect. Hezbollah

and its allies hold a majority

in Lebanon's Parramatta and hand picked the new Prime Minister Najib Makiti. Many

fear the pursuit of justice may

trigger a new round of violent unrest. The

that killed Lebanon's former

Prime Minister Rafiq Hariri and

22 others was and remains one of the most shocking assassinations

Middle East. Six years on his

murder still casts a shadow

over Lebanese political life,

because suspicion over the

bombing has long fallen on

Hezbollah, the Shi'ite militia

which is also a powerful force

within the Lebanese government.

Only last week a United Nations

tribunal formally Hezbollah members as the prime suspects. TRANSLATION: If the

accused or some of them do

contact lawyers, they will be

tried in absentia. In that case

I myself have to assign lawyers on this list to defend the

accused. The special UN

tribunal has now handed

indictments for the bombing to Lebanon's state prosecutor,

giving him 30 days to carry out the Hezbollah's leader Hassan Nasrallah has vowed never to

hand the men over I believe

not in 30 days, not in 60

not in one year, not in two

years, not in 30 years or 300

years can they arrest or hold

these men. The Hezbollah

leader steadfastly densies his

men had any role in Rafiq

Hariri's murder and denounced

the UN investigation as a

Israel. He has cited an Australian police officer, Nick Kaldas, who worked on the

investigation, alleging he once worked for American

intelligence and the US military federation in Iraq.

The investigation and this

tribunal and its decisions and

what could come out of it for us, tea clearly an American-Israeli plot,

according to this we refuse it

and refuse whatever comes out

of it from unjust accusations

to unjust sentences. Lebanon's parliament is

even whether, to respond to the

UN indictment, knowing if it

pursues Hezbollah as one of the

most powerful factions most powerful factions in government, it could well

plunge Lebanon into a new round

of violence, yet many in the parliament believe the

government has a moral duty to

uphold the law. TRANSLATION: I

demand that Hezbollah ministers

step down from the cabinet until the truth is revealed. Even Lebanon's new Prime Minister hand Hezbollah has been ambiguous

about whether he is ready to stand up to the Shi'ite militia. TRANSLATION: A government stands before you hoping that by receiving the confidence of the representatives of the Lebanese

people we will be able to work

as a united team, able to continue to face the

challenges. With Hezbollah and

its allies now controlling the

Lebanese parliament, there is

unlikely to be much of a hurry

to pursue the case.

time ago I was joined by New South Wales Deputy Police Commissioner nibbling nick

nicked, who was chosen to head the 2009 investigation into the 2009 investigation into the

assassination of Rafiq Hariri.

Welcome to Lateline. Thank

you. Before we get to the role you played personally in this

extraordinary story, we have

heard that the Lebanese

parliament is considering

whether or not to respond to

these UN indictments, which are

of course against four very

senior HSBC figures - Hezbollah now being a the ruling coalition in

Lebanon. What do you think will happen? Do you think the investigation will have an end

game? I think it will. I think

hopefully arrest s maybe made,

but if that is not possible

there will be a move to having

a trial in absentia and there

is a provision in that in the tribunal legislation. Would

you have powers of you have powers of especially form? Ultimately you will have

a verdict one way or the other.

Even though you may not your hands on the suspects or

offenders, at least you have closure, which is important closure, which is important for

the victim and their families

and those in Lebanon who want

to see justice done. Would it

be justice done? Getting the

truth out is justice. In the

perfect world you would have

suspects and sentence them to a

lengthy sentence, but this is a

different situation and part of

the charter of the tribunal was ending the There were a number of

assassinations between 2004 and

2008 and that stopped once the

tribunal was born and it was

announced formally, and in

sense that at least is one positive aspect of the

tribunal's establishment. tribunal's establishment. You haven't ruled out that the

Lebanese parliament will choose

to act, but where do you see

the incentive for Hezbollah to

act against itself? You are

right, it is very difficult to see them coming to and doing what we would call

the right thing. I don't know

where they will go from here,

only they would know that. I

would argue there is a very

strong moral almost sacred duty

for the international community

to do the right thing by

support, the tribunal at this

stage and supporting the findings of the tribunal to

allow for a proper just trial

to go ahead and get the truth

out. Hezbollah is now a

dominant player in parliament,

but what's the mood on the ground? Is this assassination,

which is now six years ago, is

there a great desire among

people to see justice done? I

think there is still a hung

gerfor justice, a hunger for

the truth, a hunger for the

reality of what happened to

come out. Not having been there

for a little while I may be out

of date, but in my contact with

many Lebanese people they want

to see justice done and want

the truth and want those responsible for not responsible for not only Rafiq Hariri's assassination but other assassinations and attempted assassinations

brought to justice. You were

the chief the chief investigator on the

UN tribunal which has around

over the indictments. How does

a Deputy Police Commissioner in

New South Wales end up with

this job? I was going about my business as the Deputy Police

Commissioner in Sydney and I

received a number of contact

from people involved in the

process who said the job was coming

were useful, particularly the

Arabic language, knowledge of

the area and the culture, as

well as 30 years in the police force force and homicide experience,

so I guess I fit the bill so I guess I fit the bill and I

got the job. I was fortunately

to be released by the New South

Wales Police and by my commissioner on the understanding it would be only

a year, without too many extensions after that. At the

same time, I would have thought a homicide investigation in

suburban Sydney would have nothing compared to geopolitical issues of an assassination like this. There

is an awful lot more to think about in the Rafiq Hariri

assassination than a garden variety murder in Sydney,

however the partnerships are

the same, about ensuring the proper handling of exhibits, statements, witnesses,

following lines of inquiry, a

taking to the nth degree, a little bit

little bit of tenacity and you

get there. Before you arrived,

an intelligence expert attached

to the Lebanese security forces

in an earlier inquiry had assassinated. Did you take the

job with some trepidation?

Don't think so. I'm aware of

major Eade, who was working on the Hariri investigation. You

have to accept when your time

is up, your time is up. I felt

the task was so important, it

was worth taking the risk. How

big a risk did you think it

was? Did you fear for your

life? No, I didn't, I felt

quite comfortable. At that

stage it would have been

counterproductive for anyone who

further acts and I was

comforted by the fact that once

the tribunal was announced the

assassinations stopped. That said, the Lebanese

investigators who worked with you,

you, their names have never

been revealed. No. Clearly

there is a high security risk.

Certainly. The tribunal has

accepted its responsibility for

looking after its staff as far

as security goes. You were

there for a year and you there for a year and you left

before the indictments were issued. Did you wish have stayed to see it to the

end? Part of me would have

liegd to stay, however I

accepted I had made a deal that

I would be there for a year and the bulk of the work was in

place before I left and I left

the place in the hands of some very good investigators,

analysts, prosecutors and so on, drawn from many countries,

including some Arabic

countries. We head-hunted some talented people who knew

exactly what to do, they

in with an open mind, followed

the evidence where it took them

and were fearless in pursuing

it to the nth it to the nth degree. There were reports at the time you

left that the four Hezbollah

figures were being fingered.

Was that the case and if so,

why has it taken so long before

see have seen indictments? In

any murder investigation, but

especially in this one, with so

much hanging on the result, you

have to do it once and do it

right, take your time,

is and cross the ts and make sure everything is done

properly, so there is not any

criticism later on. As it turns

out, there is still criticism. The four senior figures, the

leader of Hezbollah Hassan

Nasrallah says the men will

never be handed over. How

powerful are they and where are they? We don't know where they

of them are? I don't, but I are. You don't know where any

have been gone for a year.

Hezbollah has a very strong

presence in the south of

Lebanon and they have the capacity to make it very difficult, if not impossible,

to get your hands on people you

may want to get your hands on.

The reality is Mr Nasrallah has

acknowledged that all four are

members of his party, and he

has obviously made other

statements. What was the motivation, do you believe? I

don't think we will ever know

exactly what it was. There

lot of conjecture, and some of

that will come out in evidence if the trial goes ahead. You

are a murder investigator who

spend a lot of time looking motive. Rafiq Hariri was not spend a lot of time looking for

Prime Minister, he had recently

left the post, but there was

talk he was planning a

political comeback, do you

think that's what it was? I think had to

think had to be part of it.

There was a resolution he was

accused of orchestrating at the

UN which called on all parties to forces, which may have been legitimate Lebanese government

part of it. We went know

exactly what it is unless someone comes in from the cold

and talks about it. Do you

think it is a watertight case?

The previous investigation

fingered the Lebanese officials, then the Syrians

were to be blamed I don't think there

think there is such a thing as

an absolutely perfect case.

There was a solid investigation

carried out in a methodical

professionals drawn from many

countries who have a credible

and proven track record in

murder investigation. I am comfortable we reached the point where satisfied the evidence would satisfy a court and they

launched the indictments on

that basis. Taking it a step

further, instead of a committal

hearing or a preliminary

hearing, as we daul it here,

there is a pre-trial judge in

the special tribunal for

Lebanon who independently sits

and sifts through the evidence there is more than a prima and he reached the conclusion

facie case. The head of

Hezbollah Mr Nasrallah said the

men won't be handed over but

has been critical of the

tribunal and of yourself,

saying you worked for the American intelligence and the

US military operations in

Iraq These are scurrilous

allegations. It is ludicrous

for anyone to criticise the

investigation as he has without

ever having seen a statement

and knowing what is in evidence, without knowing how

compelling it is. You would

have to say the criticism is

politically motivated.Ities digs poing but rhetoric that will

will not be helpful to anyone

and won't cause the indictments

to be withdrawn or anyone to

back away. I understand there

is a bit that has been written

critically of you in the Arabic

press. What are they saying and

who is saying it? It is almost

entirely Hezbollah and those Hezbollah and its cause. I'm allied and

not aware of any criticism

outside those circles. The

of a contact sport, you bottom line is it is it's a bit

expect some knocks, this is not

a case where we were doing something that would please

absolutely everyone. Those are

accused would be upset and were

going to say bad things. Only

say bad things? You have been

out of the tribunal for over a

year but your role was very

feel perfectly safe wandering public and very crucial. Do

around now? Yes, I do.

Australia is a wonderful place and there would be something

dreadfully wrong if I

feel safe in Sydney. Nasrallah

has warned he will cut off the

Hans of anyone who tries to

detain his men. It's big

noting words that don't mean

much at the end of the day. I

think with the indictments

having been handed, the international community and the

establish the tribunal in my

view have a moral almost sacred

obligation to see it through,

to end the cult of impunity and get justice for the victims and their families. Do they have

any leverage over the Lebanese government? Surely they must,

Lebanon is not an island and

does not operate in a vacuum

and it is part of the global community and pressure must be

brought to get the outcome. Some have seen the

comment about cutting off the

Hans as a call to armsment

given are the lines of

opposition are drawn inside Lebanese parliament, the main opposition to the Hezbollah

grouping is led by the son of

the assassinated Prime Minister

who was himself Prime Minister and overthrown by Hezbollah. Do

you think this will lead to

another round of violence? I

do not think so. If or logic prevails, violence in Lebanon will not achieve

anything for anyone. It won't

cause the indictments to be

withdrawn or the clock to be

wound back or the evidence to disappear. The evidence is

there, it's a compelling case,

those who did it know they did

it and now they have been indicted they are simply

yelling at anyone who points a finger at them. Nick Kaldas,

thank you for joining Lateline.

Thank you for having me.

The president of Europe's most

vowed to crush any attempt at a so-called internet based

uprising and his state security

service the KGB are following his orders. Last night they blanketed the centre of

blanketed the centre of Minsk to prevent any anti-government protest that involved

applause. It may look harmless

but in Belarus this is an act

of political defiance. protests coordinated online have been spreading and just days ago the strongman president Alexander Lukashenko

lashed out at them during lashed out at them during the country ace Independence Day

celebrations. His state

security service the KGB swung into action and arrested nearly 400 activists. Stanislav Shushkevich was Shushkevich was independent

Belarus' first president, now he belongs to the opposition. TRANSLATION: The regime other hand us and the situation

is getting more tense so this ferocity is even more. Journalist Journalist Irina Khalip knows

how ruthless the regime can be.

Her husband Stanislav is in

prison. Lukashenko will go for

everything and bring in tanks

in the city if required and

open fire against his nation. Yes, he's ready Yes, he's ready for that. The KGB were ready this KGB were ready this evening.

Anywhere a crowd could gather,

there they were with their

video cameras and earpieces.

Nothing, it seems, escapes

their watch. The July 3 crackdown was so severe,

activists feared it might blunt

the protest movement at least temporarily, and tonight opposition leaders explained

the security crackdown in the city had been so widespread demonstrations demonstrations were essential ly squashed by the KGB. His

political grip is loosening,

the state controlled economy is

sinking fast. In his 17 in power Alexander Lukashenko

has never faced a challenge like

like this. There's been

another outbreak of the deadly

Hendra virus in northern

situation, the second in the

state in a week. So far, one

horse has died and six people

have been closely monitored.

The incident took

property near Macksville on the

mid north coast known to be

frequented by flying foxes

which trance mate the virus.

The Department of Primary

Industries has inspected the

property. Two in a week, at

just what happened and we can't read more into that at the moment. Seven horses with

Hendra virus have died or been

put down over the last three

weeks. To the weather:

That's all from us. If

would like to look back at tonight's interview with Nick

Kaldas or review any stories or

transcripts, visit our website. I'll see you again tomorrow,

when I will be joined by the

man who wanted to be the Liberal Party president Peter

Reith and the man who is the

national secretary of the ALP,

George Wright. Should be an interesting discussion. Goodnight.

Closed Captions by CSI. This Program is Captioned

Live. Good evening and

welcome to Lateline Business,

Tiger cornered, we talk to the

boss Terry Davis and ask, can

he save the Australian

business? We are looking at

ensuring that ensuring that we address whatever issues we discover in

this process, we address them

fully and we ensure that the

airline has a long-term, safe,

viable future. Also on the

program - he may not like the

carbon tax but British tie con-Sir Richard Branson thinks

carbon reduction is the

business opportunity of lifetime. Climate change solutions will create more

wealth than any other sector

over the next decade and also a

new type of wealth that will

support rather support rather than deplete our

natural resources. We are live to Canberra to discuss the

Greens agenda for business and

industry. First to the

markets, there was a distinct

lack of direction, with volumes

light. The All Ords crept into

the black after the jobs

figures the ASX 200 finished

flat, the Nikkei was down a little, Hong little, Hong Kong's Hang Seng

was up, just. Australia has

enjoyed its biggest enjoyed its biggest monthly

creation of full-time jobs in

three years, 59,000. The unemployment rate remains

steady at 4.9% but economists warn it's not all plain

sailing. Unemployment remains

at historically low levels for

now. There is a volatile segment. If you look more at

the longer term scenario, effectively the employment

sector is going nowhere tempt.

Unemployment rate that is held

between 4.5% and 4.9% for the

last seven months. In Tuesday's interest rate statement from the Reserve Bank, governor

Glenn Stevens says the slower pace

pace of employment growth is likely to continue in the near

term. It is clear signs that

going forward we will see that

employment rate is much more subdued and

will still remain a hot button issue

issue for the Reserve Bank. At

present there is clear signs the economy has lost some

momentum. The trend back

full-time work continues apace,

with 59,000 new full-time jobs

created in June, the highest

number in the past three

years. Some economists say

it's a sign the economy is

strengthening. Net, net, what

we are seeing is not just

modest jobs growth but a lift

in the hours worked. It is a sign that in the Australian

economy is going through a

rough patch, a consolidatery

phase, it is a Sol I phase rather than

rather than a downward trend. Across the country the mining boom is still keeping Western

Australians in work and a

strong construction industry

means the unemployment rate in

Victoria fell a big half a

percentage point. The worst

deterioration in the jobless

rate was in New South Wales.

The finance sector is very

heavily based in New South

Wales, which has been squeezed a little bit Also we have seen changing

government and quite a bit of disruption and uncertainty around

around that as well. The stronger figures saw market interest rates rise and dollar climb around half a

cent. The new man at Tiger

Airways is convinced he can

save the airline. Grounded

until August by the regulators

because of concerns over safety, Tiger

safety, Tiger is losing money

and business to the point where some analysts wonder whether

there's any way Davis was until this morning

the CEO of Tiger's parent

company but has taken over the

Australian operations. I spoke

to him a short time ago. Tony Davis, thanks for joining Lateline Business. Good evening. I guess you have been brought in to clean up the

mess. How much of a mess is

there? We are doing

everything necessary to

reassure CASA and the public

that Tiger is a safe and viable

airline and has an absolute

long-term future in

Can Tiger come back from this?

Because a lot of analysts are

saying that It's a disaster for the brand. Virgin Group boss Richard Branson said today

it will be tough to come back

from this. Our priority now is

to resume services at quickly

as possible. The board of Tiger

Airways is absolutely committed

to the airline in Australia. My

appointment is a tangible demonstration of that

commitment. As I said, we will do everything we need ensure that the airline can

start services at the end of

the month. You are confident

Tiger has a long-term Tiger has a long-term future in Australia? Consumers absolutely want Tiger to have a

long-term future in Australia.

They know that we have brought significant competition to the

Australian market, we have

reduced air fares in Australia

dramatically since we entered

the market four years ago.

Consumers don't want to go back

to the bad old days the duopoly

and very high air fare. We were

committed to a long-term future

and Australians want us to be

here to ensure there is

competition in the air

When you begin flying again,

will you have to cut back

services? Right now, we are

undertaking a comprehensive review of the operation and

making sure we can assure

ourselves that the airline is

safe and viable and we are focused on resuming services at

the end of the month. The

process is ongoing, it is a

comprehensive review, and we want to

want to make sure when we

resume services we can

demonstrate that viable operation that we

need. Do you have an idea of

how it got to the situation? This This is not the time to be looking back, it's

looking back, it's about looking forward and completing

the review I have mentioned and

doing all the steps that are

necessary to ensure the

long-term future of the business, and that's what we

are focused on delivering.

Having an idea of the problemsling

problemsling allow you to solve the you have an idea of what the

problems are? I have been appointed to the role, as I

said, we are completing a comprehensive review of the airline's entire operations, we have given ourselves enough

time to make sure we can

address any issues that are

with the airline and we node to

do Thai about the end of July,

which is the date we have given

ourselves, we believe we can do

that and anything that needs to

be done will be done. The

piles are quoted as saying they

have been taking the the airlines's lack of resources and putting people in

the wrong places. Do you

believe they have a point

there? We are reviewing the

entire operation. I have said

that the board has an absolute commitment to the long-term

success of this business in

Australia. We are investing

significantly in the long-term

future of Tiger Australia, and

my appointment to lead the organisation is a tangible

demonstration of demonstration of that. So let's complete the review and see what needs to be done and the

commitment from the businesses,

what needs to be done will be

done. Have you identified problem areas or is that still

ahead of you? Clearly in the process

process we are addressing the

issues that have been

identified by CASA and in

addition that to that we are

completing our own review. It's

about a fresh start, it's about

needs to be addressed and about addressing that anything

having a long-term viable safe

have all the problems cost you airline in Australia. How much

and how much do you believe it

will have cost you will have cost you by the time

you start operating again?

It's costing us about S $2

million a week, so the fact

that we have decided to suspend the

the services until the end of

July means that's a significant long-term future of the it's an investment in the

business. We are looking at ensuring we address whatever issues we discover in this

process, we address process, we address them fully

and we ensure the airline has a

long-term safe viable future.

You are quite confident that

Tiger will vum full services in

August? As I said, we are

committed to resuming services

at the end of the jewel, we will do everything necessary ensure that happens, around

that the the commitment of not

only me personally but of the

board and the parent company.

The Transport Workers Union

says that hundreds of contract

staff, non-union staff, haven't

been paid. Is that the case?

I can't speak for all of the

suppliers, but I can tell you

that Tiger staff are being

paid. We are in contact with

our employees and obviously we

want them to say stay with the

company so we can't to ensure we look after them during this

period and we are those discussions at the period and we are engaged in moment. Our long-term future of the airline

and we have a great bunch of

employees in Australia, we want

them to stay with the airline

and we want them to continue

growing with us as we grow the

by going forward. Tony Davis,

thanks for talking to Lateline Business. You are welcome,

thank you for having me. China's central bank has raised

interest rates again as the country

country battles with inflation. It is months and signals that the China authorities

China authorities regard it China authorities regard it as a priority. The headline

inflation rate is 5.5% but food

prices are running far higher.

It is also falling pressure for

higher wage settlements from

championships workers. The

property market is also over

heated, so in addition to the rate rises for deposits and

lending the central bank has

been upping the reserve

requirements for the banks.