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what you'll face in the air. Because you never know (GASPS) Like a whipped cream mountain. Mm. in the right direction. Tip No.2 - always point your squig Uh-oh. (CAWS) This is the wrong direction! (SCREAMS) And finally, Tip No.3 - never jump off a moving squig. even more fun. Unless you want to have Whee hee! with your squig... And if you already worked it out Higher, squig, away! Closed Captions by CSI *

This Program is Captioned Live.

Good morning. For the first

16 years there is a new government Good morning. For the first time in

New South Wales with Barry O'Farrell 16 years there is a new government in

leading the coalition to an

68 6 victory. He's expected to gain up to leading the coalition to an historic

68 seats in the lower house. Former

Premier Kristina Keneally has

resigned as leader of the Labor

party. There are

in Libya have regained control of party. There are reports that rebels

in Libya have regained control of the

eastern city of Brega just hours

after recapturing Ajdabiya. It was

their first significant

the launch of the Western-led their first significant victory since

a week ago. Meanwhile US President the launch of the Western-led strikes

the Barack Obama has told Americans that

the mission in Libya is succeeding.

The Japanese government says it

doesn't know when the nuclear crisis

will end. The amount of radioactive iodine in the

iodine in the sea near plant has increased ten-fold since iodine in the sea near the Fukushima Tuesday.

Tuesday. It's now more than 1,000

times the legal limit. Inside the

plant, workers have found pools

water with radiation levels 10,000 plant, workers have found pools of

times higher than normal. And is times higher than normal. And England

is out of cricket's World Cup after

10 wicket thumping by Sri Lanka. is out of cricket's World Cup after a

Openers Tillakaratne Dilshan and

Tharanga both made un-beaten Openers Tillakaratne Dilshan and Upul centuries to steer centuries to steer Sri Lanka to the

victory target of 230 with 63 balls

remaining. Sri Lanka's next is New Zealand. Stay tuned now for remaining. Sri Lanka's next opponent

Insiders with Barry Cassidy.

This

Program is Captioned Live

clear Good morning and welcome to

'Insiders'. The Election was everything 'Insiders'. The NSW State

everybody thought it would be.

The biggest thumping at the

balance the lot backs in

Australian political history.

extraordinary primary vote Have a look at the

results. That's a record high

primary vote for any political

party. The Labor Party got just 25.5 per represents a swing of almost 17

per cent and that too is a

record. Bigger than the swing against Labor in Victoria against Labor in Victoria during the disastrous split in

the 50s. According to pre-ticks dicks predictions the

new Parliament could look like

this. Only 17 are confirmed at this stage and the Independents

three. This is how the leaders responded late last night. The

community has spoken and we

accept their decision with accept their decision with

humility and with grace.

APPLAUSE. The people of NSW they

tonight I congratulate Mr they always get it right and so

O'Farrell and I wish him and

the Government that he bid the Government that he bid form

all the best. My friends, all the best. My friends,

Party has suffered a tonight the Australian Labor

significant loss and there

no hiding from that. The truth is the people of NSW who entrusted us with

for 16 years did not leave us,

we left them. we left them. The reality is

that our lack of unity and

some discipline as a party and in

some individual members put the

very future of the NSW Labor

Party at risk. This is the victory to make NSW number 1 again. APPLAUSE In all of

those seats, people decided to restore honestly, stability and

competency to government in restore honestly, stability and

this State again. We've won

tonight seats that not only

have we not held before. We

won tonight seats we've never dreamed of ever

winning. APPLAUSE We're joined

for more from the ABC's state political reporter Matt

Wordsworth. Good

Matt. Even though it was a

massive result in the

was no surprise. That's right, massive result in the end, it

Barrie. They did get smashed

and they got smashed all over and they got smashed all

the park. In the the park. In the city, in the country,

country, from country Labor in

Bathurst where you had 30 per cent plus swings to the in the city in the heart of the had land. They lost seats like Campbelltown, Parramatta,

Smithfield, things they never thought or dreamed they would

lose four years ago they lost

last night. There are some

seats they may never come back.

seats they may never come back.

I'm talking in the eastern

quick calculation where they suburbs like Coogee. When

didn't have to go to primaries,

where they got above 50 per cent, of the 68 seats of the

Coalition are expected to win,

48 per cent of those seats 48 per cent

didn't need to go to

preferences. Compare that to

Labor, just one and that's in Liverpool. It is an emphatic result. You've got cabinet ministers falling owe all over

the floor. A third of the

cabinet gone. Judge, Whan,

fifth, Mackay. In the end, in

the soer light of day what went

wrong with Labor in NSW? have to go at the starting

point of 2007, Morris Iemma

knew when he won back then that knew when he won back then

he only got in by the skin of his teeth. They were standing

on the precipice even in 2007. on the precipice even in 2007.

Then along came that divisive electricity debate in 2008

where Morris Iemma went with

his bold plan to try to

sell-off all the State asset,

really poking the unions, and

that just inflamed things

within the party, caused

virtually a civil war that

ended up taking his leadership

away. You had

of ministers and premiers, Kristina

Kristina Keneally has lasted 15

months. We were running at

losing a cabinet minister and

MP every four weeks. It was

scandal after scandal. It was

inevitable they lost so

badly. The all important Upper

House, what's the story there?

It doesn't matter how big he

wins in the Lower House. He

still needs to get his legislative program through the

Upper House. He had Upper House. He had an emfat

phic win in the Upper House.

He's got 11 seats, that takes him up to 19. figure there is 22. It is a 42

seat chamber. They need to

elect a President. He does

need three sets to get three votes to get anything through

the Upper House. Fortunately for Barry O'Farrell the right

wing parties are the shooters

and Fred Nile and Christian Democrats have got those four

votes for him and they look

very friendly to him and of

course that means the Greens are out in

are out in the cold. After

years holding the balance of

power or having massive

influence in the Upper House

they seem to be warming the benches years. They've picked up two

seats they retained last time,

they don't look likely to they don't look likely to to

win a third. They look likely to win any seats in House. They had big hopes of toppling Carmel toppling Carmel Tebbut in Marrickville, that Marrickville, that bid not happen, and they hoped to

topple the Education Minister

in Balmain but that may go to

Liberals. Unprecedent ed.

There was the rearing place of

Neville Wran. Pauline Hanson?

No, she didn't figure very much. She finished

the order. She may not have eclipsed the informal votes

there, no. Thanks for your time

this morning. Matt Wordsworth there. there. This morning our program guest is the Shadow Treasurer and Treasurer and a prominent NSW Liberal Joe Hockey. The Sunday

papers are making of it all,

show the front pages Annabelle

. In some way this is the

easiest stated election in some

time to report. There was an ancillary problem that arose

how to summon enough synonyms for the word

for the word "catastrophe". In the early edition of 'Sunday

Telegraph' went with "bye bye"

which kind of summed up and the sun herald has gone with "blood

bath" which also fits on a

front page. It has been a front page people have been

planning for a while, how do

you sum up the dimension of

this complete massacre. What was interesting about it, was interesting about it,

Gerald, a lot of speculation

about Labor ending up around

about 20 seats. That's been

going on for

where it landed. That's where it landsed. I would like to

correct some of the analysis.

Most of analysis focuses how

badly Labor did. I think

analysis should focus on how

well Barry O'Farrell did. He

worked very hard for four years

exerted knee nor news discipline but united the

Liberal Party which was no mean achievement and got the

Liberals and Nationals working

together well which is also no mean achievement. The focus

really should be on how well

the Liberals did because

without the Liberals doing well so badly. That was an issue

taken up by two of the spokes persons in persons in the campaigns last

night. We'll have a us listen

to that. The heart land

gone. We'll save some sticks

of furniture, but the seats we

hold we probably won't have a

seat with a margin over 10 per

cent. Losing after 16 years is cyclical.

cyclical. Getting massacred

after 16 years is not cyclical.

The driver of this result

principally is a steely determination by

majority of voters to boot out this government. If you took

Luke's word as to what he was

saying, you'd see a huge vote saying, you'd see a huge vote

in the Independents and Greens. You'd see that protest vote being reflected in the Greens. That's not happening. Our primary vote is extremely high across the state in SEATS which

are Labor heartland. Our primary vote in some places

have doubled. That's an endorsement of the Liberal-Nationals. All things

being equal, to take Gerards point, Barry O'Farrell would

have won anyway, but the

massacre has to be mostly Labor's

Labor's work. No, I agree with

Gerard on that. People were

extremely keen to boot Labor

out, but yes, they could have

gone to Independents and Greens

and they didn't. The reason they went to Barry O'Farrell I

think is he comes across moderate, he comes across as competent, but voters want to

be assured that if they voted

for the Liberals they'd get

someone who looked like he

could be a reasonable and December send sort of premier,

which is how Barry O'Farrell which is how Barry O'Farrell

comes across. He had a big job

in that Liberal Party which is

torn by factionalism to keep it

together. As far as I know he own views or whatever in doing

so. It will be an immense so. It will be an immense job

with such a huge backbench and

in one of the keys to state governments they've got no

money for him to

what he wants to do. I'm sure

a big factor in the result was that the swing, there that the swing, there was a

very big swing to the Liberal-National party and that

was primarily because of Barry

O'Farrell's leadership. I

think what Mr O'Farrell

promised above all was pretty

important. He promised good

government. That's really what people want. That's what he's essentially promised. what I believe he can deliver.

It is going to be a difficult

job, but he's very able and he works very hard and he has a

great grasp of detail, which at a state

a state level is pretty well

most of what you need. Gladys

Berejiklian I saw on there

before, she was very strong performer during the

campaign. Public transport is

going to be critical to having

to deliver. There's going to

be a question whether he gets his way or the Federal

Government gets their way.

They want the $2 billion spent project. He has said he wants

to be known as the person who to be known as the person who

fixed up transport in NSW. The

trouble is none of the State Governments, possibly with Governments, possibly with the extent of Western Australia

have any money and it's very expensive fixing transport, fixing hospitals, another big

area they've got primary responsibility for state

schools and so forth. In this

particular case, he wants to

scrap a Labor proposal for which the Federal Government was prepared to was prepared to give $2.1

billion and build a different railway line, railway line, one that goes to

the north-west. Whether Labor

says no, you can't have that

money, that bid leave him in a

pickle. I would have thought

it would be very foolish to Julia Gillard Julia Gillard to look like these's punishing someone who

has got elected with such a

huge majority. This is what he

wanted to do. He was very

clear about it. Maybe they'll

get Infrastructure Australia to

look at look at it. Infrastructure has

looked at some NSW things when

they the submission was so bad

they couldn't possibly give

them money. That was another point Government was. It was regarded as incompetent,

scandal ridden and putting mace into positions. Barry O'Farrell is

section 3A of the planning act

which centralises control. It

allows a minister to allows a minister to overrule planning decisions which is

very good. They have to be

careful their independent

commission can still have rules

over councils because there's

rotten councils. Further on the

greebs, Greens, you say it was

a measure of the campaign that

Barry O'Farrell that they went

straight to the Liberals and too partly because the Greens

in NSW are a different breed, they're more radical than they

are elsewhere? One of the are elsewhere? One of the

strong underlying messages from this campaign and this campaign and its result is that the electorate has turned

away from extremes, whether

extremes of political belief or private behaviour or whatever.

This is a middle of the road

result. The Greens would be

very upset. They didn't man

manage to pull off a victory in

Balmain or the seat of Marrickville which is the seat held by Carmel Tebbut.

were interesting last-minute manouevering going on in that

seat. Carmel Tebbut put on out

a very non-Labor flyer which went

went on every door handle in the seat of Marrickville on Friday night T says don't throw the baby out with the bath

water. It says that Carmel Tebbut is a person with integrity so we should keep

her. I reckon that would have

played quite a significant part in keeping her in keeping her going in

Marrickville. That is true.

I think Carmel Tebbut is a very

good candidate, but we can't overlook Fiona Byrne the

green's candidate in

Marrickville. Advocacy of a

ban on experts to Israel. The

Greens in NSW are very Greens in NSW are very radical.

Nick Riewoldtian non-about to

stake a Senate spot cad deprad

quated from the Communist Party to the Greens. to the Greens. What I found was very interesting how voters in inner city reacted to Fiona burn's suggestion. If she goes

down it will probably be for

that reason. Agree with that.

That was a hugely controversial support in some quarters, but I think partly because people

think what the hell is a local

council doing getting itself

tangle in Middle Eastern

politics. I think that the prospect of someone prospect of someone like Fiona

Byrne moving that approach into State Parliament --

A. I think there's another

reason. A number of Liberal

voters that seat decided to give their preferences to Labor

which is what I would have done

if I were a Liberal voter in that seat over the Greens and I think you'll find the

preference flow has also helped

because finally the have had the good sense to

relies that the Greens are much

more their enemy than Labor more their enemy than Labor is. Look at federal applications, we'll talk about

the carbon tax in a second, the

message is to Independents and to Rob Oakschott. Within his region Independents region Independents took a

hampering. Does this suggest

that they don't like the

affiliation with Labor? I think it does in that seat. I thought that he might have been

able to do a Peter Andrew and

win as an independent and win a seat that was quite conservative by taking quite anti conservative stance. I anti conservative stance. I don't think it is working like

that at all. This bid put a of pressure on Rob Oakschott? Yes, it will. There is another

another federal issue and that

is they've lost is they've lost their heartland

in low income seats. I think

federally and at the

level Labor has to start

focusing on those things and

they spend most of their time

mixing with the big end of

town, businessmen and getting

jobs there and so forth when

they leave politics. They've

got to look like got to look like they've got

some concern, genuine concern, not just stating it as a

concern, for people in those

income seats and doing

something about it. That's... people in the low income seats are less interested in a carbon

tax and emissions trading

seem. Yes. The obsession with

those things is very much the

obsession of people in secure employment, public servants

academics and others. People

who are self-employed have to employ themselves, employ themselves, run small

businesses, those on low

incomes have trouble paying the

electricity bill are not so

interested in these great esoteric schemes for a country

that produces 1 per cent of global emissions inn

nationally. I think that's another problem for Labor

and... Did it play into the State Election?

did. If you look at the votes in Newcastle and in the

Illawarra and on the Central

Coast to some extent, yes I do,

because that's the area because that's the area that's primarily concerned. That's the

the area we're talking about where hay loft people who are

self-employed, a lot of low

income people, people who don't

have permanent jobs, there's

not big public services in many

of those areas, I think that's

Labor's problem. It is there.

It is not the problem of Labor associating with big end of

town and being involved in this mate's problem,

the problem, but the other part of the probe Labor is of the probe Labor is flirting

with concepts that people on

lower incomes, unsecure and less

less education worry bid their lifestyle and I think they're right to be they're right to be worried. I

take your point. When you point out the Illawarra and

Newcastle in that way that's

interesting. The overall

result was always going to be

where it is. That's where it is. That's what the

polls showed. What upset

people in NSW were quite a few of the Labor of the Labor Government

decisions to go to the big end of stort start running tollways and tunnels and so forth to

sweeten the pie for them they

said we'll block of a lot said we'll block of a lot of

other roads, some of the laws said you can't improve the, Government's can't

public transport owe roads that

would compete in the city

tunnel. It tried to funnel all

of the traffic through the

tunnel which caused immense anger

anger and Bob Carr of course

wouldn't fund it out the

cheaper way to do it was public

borrowing because he passed a

law because there could be no

public debt in NSW.

Sphwlmpblingts I don't think

the carbon tax had measurable impact on this

campaign, but I think it

extended the awareness of a

problem that was already there.

Electricity pricing, complete

mismanagement of the attempted privatisation of the

electricity assets in NSW. electricity assets in NSW.

This sort of out of control

feeling of cost of living just

vaulting. On top of that, you

have another Labor

administration announcing a

carbon tax. I think that's a

continuum. It intensified that

feeling. I don't think it started anything

South Wales but nothing to do

with the carbon tax. It was because the State Government was taking all of was taking all of the profits

from those things rather

than... From the generators.

It's got something to do with

alternative energy, the

pricing. The point is they've

had to reinvest in the wires

and poles and wires sort of

stuff and that's what put up

the price. Leadership. John

Robertson's name is already out

there even though he represents

the trade union image in the the trade union image in the

Parliament and was at the of the electricity row. Yes.

The ideas that this would be a

new start in leadership, actually, it likely I suspect

to be a tanks of the old battle.

battle. When Carr and Egan

tried to privatise the power

utilities more than a utilities more than a decade ago, it was the Robertson ilk

that was opposing it as

completely tangled with it ever since. The Labor Party has to

make a decision I suppose about whether it feels that it was a

mistake even to start on the

privatisation originally, or

buggered up the delivery.

That's a particularly gateway

issue. It wouldn't matter to

them because they have no say

in what maps for several years

to come. Displmpblingts it is

a core of their dysfunction of

their party they can't answer

that question. He was the

dominant figure in the right

thing fax which has run NSW

politics for a long while. For that reason it would be

foolish, and they're really on

the nose, for them to make him

leader. The problem with John

Robertson from the council he undermined Morris

Iemma and from the time Morris Iemma was undermine,ed Labor

who was going to lose, went in

a steep downward movement a steep downward movement and undermining Morris Iemma I

think was very unwise and John Robertson is part of the

problem. Did you say Bob Carr

last night he said he thought

this was absolutely election

that could have won and that

this was an incredible tale in

what you can do wrong to lose

an election over the course of

careful to set that parameter.

Think think it goes a little further. That's the shad

papers. The Shadow Treasurer

Joe Hockey is next. Here's his thoughts on might turn out. It is going to

be very hard to dislodge Labor

in NSW. Some of the

suggestions about the result in

NSW on Saturday are ridiculous. Joe Hockey, good morning. Welcome. Good

morning, Barrie. We know you try to lower expectations, but

that was ridiculous. You know,

the fact of the matter is I would never have predicted how

extensive the swing would be to

the Liberal Party. I would

never have predicted a 30 per

cent swing against cent swing against the Labor

Party in Bathurst. Some of the

numbers we saw last night were

far larger than by-election swings in

swings in Penrith or in Ryde

only two years ago. That's an

interesting point, that in fact

the margin in Penrith is now

larger than it was at a Labor. That indicates the carbon tax obviously did have some role to play in the last

few days. Why was it? few days. Why was it? Which

way do you go? Do you think

Labor was owe hopeless or that

Barry O'Farrell ran a good

campaign? I think it was a

terrible government, Barrie. I

mean, everywhere I've been over

the last few years I've said I

know a bad government because

I'm from NSW and everyone

laughed but it is true. It has

been a terrible government - a corrupt government. been gross maladministration,

that's all true, but to dig that's all true, but to dig so

deep into Labor Party heartland we had to offer a stable, trustworthy, honest alternative. Barry O'Farrell

did that. Barry O'Farrell's values are the values of the

modern Liberal Party. They are

about giving people a strong

voice, but leading as well, and

ensuring we have honest and integrity in government. Public transport is going to be

critical. Barry O'Farrell has

some ideas how he would like to

that seem to be available. The Federal Government has

different ideas. How do you

see that playing out? Barry

O'Farrell has a very clear

mandate to spend that money on the

the north-west and south-west

railway lines as a priority.

If Labor doesn't listen to Barry O'Farrell and the

mandated NSW people, then the Labor Party is going to be

punished. I've even heard this morning where they're discounting the impact of the

carbon tax, they're saying it

was a bad government, the Liberals just stumbled in. Let

them believe that because what

it will do is confirm in the

minds of the Australian people

and the people of NSW that they're not they're not really listening. If you look at the

federal polls, there's been

very well... There was a movement against Julia Gillard

early on, but it's back where

it was. I think there's a lot

of volatility in some of the

polling. Can I tell you,

Barrie, I was privy to the internal polling of the Liberal

Party during the Party during the course of the

campaign and at the very end.

Some of the seats we won last

night we were not anticipating

winning at all. In fact, we

thought Labor was going to thought Labor was going to hang

on to them. Polling from my perspective is just not as accurate as a lot of commentators would like to

think. I think you've got to overlay polling with your sense of what people are saying on

the ground and what they're

feeling. The biggest issue in

NSW was cost of living. It is

cost of living, one, two and three, and now the Labor

Party's put on a

it's put on carbon tax, it is

overseeing the increase in

interest rates. It's seeing an

increase in the every day cost

of living. People have had

Jack of it. These people aren't listen ing

in-Canberra. It was a disaster

for Labor at the state level

and as I said the most recent

Newspoll has Labor in front in

the federal level. If the

carbon tax is such a big issue,

is there something wrong with

your messenger at the federal level?

level? No, not at all. Tony Abbott was introducing Barry

O'Farrell at the launch and of

course I was involved in the

campaign as well. I did a live

cross on a national TV network from Port Macquarie yesterday.

We were very involved and very

supportive of the state

campaign. But Barry O'Farrell

wouldn't have been talking

about the carbon tax even in his thank you speech last

night, he wouldn't have

mentioned it if it wasn't about

winning votes and also taking a

message to Canberra. Just on

climate change, why did you not

that rally on Wednesday?

Because Wayne Swan indicated that he was going to a ministerial statement.

to write a response in a very

short period of time. If it

wasn't for that you would have

been there. Yes Would you have

had a good look around and had

a look at the placards before you went to the microphone? This the greatest sideshow,

this placard stuff. I've been

for protests for many for protests for many years, I stood on a stage

money deat town hall in Sydney protesting against university

fees many years ago and you can't control what happens in a

crowd. That's the spontaneity of a protest. Tony

no idea about those posters and

placards. I mean, for goodness

sake, I'd like to see some of

the things that have been at

protests that Julia Gillard and Bob Brown have attended over the

the years. It is a problem that photographs do exist and do you

think that bid be a damaging

image for him? I think some of the spin about that

stuff. They see through it.

The Labor Party is very good at organising protests because

they whistle up the union movement and roll-out tens of thousands of people to take a

day off work. The Liberal

Party relies on spontaneity in

the community and of course it is not controllable nor should

it be. That's democracy. Let's

go to the substance of that

issue and the Grattan Institute put out a report this week that

concluded the best way to hit the targets without an

excessive cost on the taxpayer is

trading scheme. That's the

grat . The Gratton institute is

well respected. I know sol eslake

eslake is down there and

they've got they've got a view. There are

others with a different view.

Our view is direct action bid deliver that 5 per cent

reduction by 2020. We're

standing by that. I think it

is also the case that when you

actually set up a carbon

trading scheme without the rest of the

of the world moving, you're

setting up a market Australia that is doomed to significant structural problems

because you find it difficult to purchase permits from

overseas, you are personalising

trade exposed inds trees, so

direct action is the fastest

way to get on with the job. One

of the points the Grattan

Institute makes you do it under

a carbon trading scheme and businesses decide for themselves then how best to

reduce their emissions. That's

how the markets work and that's

what the Liberal Party is has always

always believed in. In fact,

you've spoken in the past your support for a market based

system. I believe in markets,

of course we do, but markets

only work if there is transparency, accountability and in the case of something involving global emissions, there is a global marketplace. It is like the

trading of currencies. They

are cross-border activities. Therefore, you want some rules

about what's going to apply

right around the world because it becomes a common market. If

you set up a market just for Australia, you are penalising

Australian industry and

creating a distortion in the

Australian economy that is

going to have a negative impact

on us. That's why I am a firm

believer in getting on with the

job of dealing with climate

change with direct action.

We're funning that directly

from the budget, no additional cost. It does say in that

report it is highly unlikely

that your approach would

achieve the targets. You'll

either fall short or you'll need to spend a lot

more. They're entitle view, Barrie. I disagree. Let's move on to the

mining Resources Tax and the Treasurer finally reached an agreement with the industry to

impose the tax and though they've reached an agreement agreement with industry you

oppose it. They haven't reached an agreement with all the industry. They've reached an

agreement with three agreement with three entities, X strata BHP and Rio. They'll

pay the bulk of the taxes . Not

according to some of the

others. I think this is the most

This is version 4 of the mining

tax and it hasn't even got to

Parliament. Version 4 of the mining

mining tax and they think they've reached an agreement where they've got what

to be a blank cheque to the States on royalties. Already

the Premier of Western Australia is saying he's Australia is saying he's going

to totally ignore the Gillard government commitment on

royalties. I say to you,

Barrie, this is a complete

mess. I've never seen something owe bee if you had

deld as what the Labor Party has done with the

it a good show with the carbon

tax. How do you argue to the

community when you've got a

situation where the mining

companies now are making record profits, record investment

levels, the three biggest companies are prepared to pay

this tax and you oppose it? I'll tell you why, Barrie,

because the government is

locking in expenditure against

the project the revenue of that

mining tax. They're looking in

expenditure. When the revenue falls

falls and it of their expectations and it is

truly revealed that BHP and Rio

and X trar sta aren't paying

the sort of tax everyone is claiming, they'll have a structural deficit they cannot

deal with, because the revenue

is going to weaken and the

expenditure is going to grow.

That's the problem that Labor

has. They like to spend taxpayers money without putting

anything aside for a rainy day.

It is going... It will unwind,

it will unfold. Do you think it

will get through the Parliament given the Greens given the Greens and Independents have got concerns about it,

reasons? I have no idea,

Barrie. I've got to tell you I

find it very difficult to read

the Greens and I find it even

more difficult to read the

Independents. This is the uncertainty that's part and

parcel of a hung

Parliament. Finally on

taxation, the Henry Tax Review,

you've said the review Lous the

government to government to

deliver lower and fairer taxes.

Does that mean you're supporter of Henry tax scales? context of the total Henry

review there is strong merit in

increasing the tax free

threshold and reducing the marginal tax individuals. I would say to

you the interesting thing is it

when Ross Garnaut said he

wanted to look at the Henry tax

scales as a way of providing compensation to

compensation to low income people, the government didn't

kill it off immediately. They

let that fly and when they

realised that it wouldn't work,

they then said let's look at the low income that's what Julia Gillard and

Wayne Swan have been clinging

to. Ken Henry recommended

abolishing the low income tax

offset and the problem when with it is it is a rebate at

the end of the year.

Australian families are going

to be worse off during the

course of the year when's

paying higher electricity and

petrol prices and so on. Did

Garnaut said he want the

government to use the Henry tax

scales or did he simply say

they want to compensate through the taxation system No, he referred to the report in his

statement. Did he endorse the

Henry tax scales as the way to

compensate? That was one of

the things, when you read Garnaut's report, as I Garnaut's report, as I did, it was pretty clear that what he

was saying was that you should look at the Henry tax reductions as a way of delivering compensation. The government seems to be saying

it certainly wouldn't use those scales to compensate over the

climate change things, but they

haven't ruled out using the same. Okay. Let's get some

perspective here. The Labor

Party is saying they commissioned the most significant review of the

Australian taxation system in a

generation, as they suggest. They had 138 recommendations.

They did not rule out the Henry

tax scales, but now they're

saying they do rule out those

Henry tax scales and they're

going to go back and redraw the

tax scales themselves. What sort of sort of government is this?

We're at cross-purposes. They won't use the to compensate for a carbon tax

but that doesn't rule out at

some other stage look at the Henry Report in a different

context? How are they going to

give the tax cuts? HOW do you

give tax cuts if you don't

change tax scales? It is

obvious. You've either got to

change the threshold tore the marginal tax rates. If you do

that, then everyone paying

personal income tax is going to

have a tax cut and they're

saying no, they really want to

target lower income people. If

they do that with the low income tax offset, defies a recommendation of Henry. Either Henry Tax Review

is a blueprint and they

actually go through the process of consulting and do something

about it, or as is this Government's way, they making it up as they go along

because they just don't know

where they're going. I made the

point though why couldn't they

be two entirely different

exercises? Because one bid

conflict with the other. Quite

obviously. Henry has provided

a pathway to an integrated tax and well wear system that

we have at the moment. If the government ignores that and

puts in place low income tax

offset or comes up with new tax

scales, then Henry is out the

door. It is finished. The Henry tax scales and the

transfer system all finished.

I think that's probably the

case. This is a government

that's bid say and do anything

along the way because they're

making it up as they go Thanks

for your time this morning. I appreciate T Thanks Barrie. Even by Queensland political standards it's been quite a day. I

day. I come here with this announcement. Today we face

circumstances that Queensland

frankly has never frankly has never faced. The opposition leader, John-Paul Langbroek, resigned. It is a

treasurerous business. After business Britain's Lord Mayor Campbell Newman put up his hand

for the top job. I believe I'm

the one to one to lead the team

forward. Even though he doesn't

have a seat in State Parliament. He would have

Langbroek? It comes with the job

job of politics. It is a great pity the people of Queensland

didn't get to experience the privilege of having John-Paul Langbroek as their gentleman

premier. The reality was that

Ms Bligh by reason of the flood

had presented well during the

flood. He survived. Thank God

for that. They forgot to put a

motor on the boat and there's

no or. I'm prepared to do this a difficult and complex way. Jeff Seeney signalling he

wants to be the interim leader,

the seat warmer for Campbell Newman. I'm here to do the yards in Parliament simply

because he darnt can't do

that. We've got a parliamentary democracy that's at risk of

descending into a farce. Might

I say it's good to be

back. This is leadership LNP

for the price of one. It's style. Mr Speaker, you get two

either the smartest thing the LNP ever did or thing they ever did. Bring it

on. Bring it on. (Sings) # No else but Queensland. So a huge week in state politics and of course in Queensland with

Campbell Newman

for the job of premier from

outside of the Parliament. It is unconventional. It comes

against a news poll too which

showed the greatest recovery in Newspoll history for Anna

Bligh. She went from

satisfaction rating of 24 per

cent in December to 49 per cent

in March. This morning,

another poll, and this takes in of course the and this was in the Sunday Mail

this morning, Galaxy Poll which

shows that Campbell shows that Campbell Newman would not moment win Ashgrove, he requires a 7 per cent swing,

but the two-party preferred 58

mooimpb 42 in favour of the

LNP. What that suggests is it is audacious but it might

work. It also suggests that

things change pretty quickly

in Queensland. Not only meet

logically but political as all.

at the It is chaotic and confused here

extraordinary thing Campbell

Newman announced he's going to

do. It is attention grabbing. It is very interesting

foreseen, for, Jeff Seeney. That's the strangest job

officially. Once again

Queensland has perform a role

in making NSW more normal than

it rightfully should. You're

going to see things moving

around a lot. You can see

some tensions in some tensions in that set up at

the moment. The interim leader, Jeff Seeney is saying

I'm going to appoint, it

job, in fact, he says I have a statutory obligation to appoint new front benchers to replace the

the two. We'll listen to them

on that point tan we'll get

it has to be done by Jeff your views. The legality that

Seeney, but I bid be making the making the call on those

appointments. If you disagree with Jeff Seeney on anything

who gets the final say, you or

him? My belief is ultimately

it is my call and I'm sure that

Jeff bid understand and see it

that way. Brian? There's no statutory obligation. Under our constitution, the federal

Minister doesn't crack a constitution, the Prime

mention let alone the Leader of the Opposition. There's gives you a statutory nothing that I'm aware that

obligation. What if Jeff Seeney and the parliamentary

party says no, we want X or Y

to be in there. He's to be in there. He's not

averse to highly unorthodox

manoeuvres. There's plenty of

all too complex. I assume the Liberal-National party in

Queensland want to win. I

assume Campbell Newman is the

best person to lead them. They'll sort it They'll sort it out. You might recall once before they were in coalition, not the more

formally as they are now, they

couldn't decide who could be

premier in the event of a

victory. It is a united party,

there's no question they don't

want newspaper Campbell

Newman. They want Campbell Newman. couldn't find him a safe

Liberal seat. They find him

almost a safe Labor seat and

that was unfortunate for the Liberals and Nationals in

Queensland. They'll sort out because I assume they want

to win. It might work. If the

polls are more volatile he

might not win that seat and the

combined parties might win the

election. If a move is on, then

as groch as Ashgrove would

go. The Liberal-National party

as a whole, I take his point,

this is a Campbell Newman issue

as well. Don't forget he's

currently the a lot of strong support for a lot of strong support for the

work he's done in recovery from

the floods. I think there is

another hold mentioned here the fact

not just trying to assume a new

one. I think that's going to

be problematic as well. We

know there's a long and dis discouraging history of

Brisbane mayors seeking office. Queensland is the most

see centralised in Australia,

that poll suggests he's going to to do well through Queensland. He's a Queensland. He's a ex-army man

and worked in industry in the grain and mining industries,

he's one of the best known

politicians in Australia. The

two star performers in the floods were Anna Bligh and

Campbell Newman That poll that I mentioned before the

preferred premier is 51, Newman

38. 51-38 Newman over Bligh.

Maybe that would suggest Anna

Bligh doesn't want to go early because she needs because she needs a pit of time if it proves

if it proves and absurd

situation Met's go to federal

politics now and images

saw during the week out of

Parliament House, from the

lawns of Parliament House,

we'll talk about whether we

think it has it is particularly

significant or not. We'll see

how it played out in the

Parliament. Keep in mind this was the final last Question Time in Parliament. This was

their last chance to have a crack at one another for weeksment here they are. We've seen real Julia, wooden Julia,

make Julia, teary Julia, we've

seen all the way with LBJ Julia, we've seen Bible expert Julia, we've seen George

Washington I bid never tell a

lie Julia. Today we saw precious Julia complaining

about a few nasty black cards.

I tell you what, we never heard

any complaints from former Prime Minister John Howard when

people like the Minister For Climate Change and the Assistant Treasurer fronted rallies before placards calling

the former Prime Minister Satan

and Hitler and baby killer. My criticism is not of the

Australians who gathered

yesterday. My criticism is of the Leader of the Opposition

for exercising the poor judgment of going out to a

rally and associating himself

with One Nation, with the

league of rights, with anti-Semitic groups and with

grossly sexist

my criticism, Mr Speaker. Not

of the Australians that gathered out there, I out tir

not a word of criticism about

them, but I criticise the judgment of this man in going,

the judgment of this man in associating himself with

extremists. The judgment of

this man in associating himself

with gross sexism. The house

bid come to order. The house

bid come to order. They're not

sitting for the next six

weeks. It is not a bad line of

Julia Gillard I have absolutely

no criticism to make that wild pack of mouth breathing sexist

freeks. She wasn't crazy about the person who wrote the placard. Should he have ma

howed himself to be in ha situation when he stood in

front of those placards? If you have normal good staff

work, you'd have an advanced group to find what the signs

were. This if if the signs weren't suitable you would take

them away. There was bad staff

work, bad advance work. At the

gets up and gets up and makes a speech and

someone comes around behind him

you can't blame him. It could

have been bet told handled, but

John Howard was called a

murderer, which I think is worse than being called... I think all these references to

our Prime Minister whether it

is Ms Gillard and John Howard

and I don't like them. The question of whether the photograph exists and it is the

image that that's that is there. He's mixing with the

extremists on the same

speakers. Legal rights is a

doesn't exist any more. I've been fighting the League of

Rights for 40 years and it

doesn't exist. All the media

beat up of Pauline Hanson. She

got less than 2 per cent of the

vote. Another vote. Another failure. Which

goes to show as I think I said

before the lesson of the NSW

election is a distaste for

extremes. I do think those

images are probe matter for

Tony Abbott. I don't think

they're deadly. Both sides of

politics here on the carbon tax

a solid middle ground, and just

as breaking a promise on a

carbon tax does not do you any

favours on that front, neither

does mixing with rowdy rallies with placards like that. I

think it's not a great

thing. You raised the Pauline

Hanson thing. She couldn't get

elected into the Upper House in

NSW. Because she shared an

event with him it enabled Julia

Gillard to make this point.

politicians; they're staying our lifestyle. On the our lifestyle. On the question of attending the rally of attending the rally outside

Parliament House today, I'm not

aware that I was invited, Mr Speaker. But as I understand it, the Leader of the

Opposition did not lack for

redheaded company out at that

rally, Mr Speak. He had a

redheaded friend out at that

rally so I'm sure he would not

have missed me. It is guilt by association. You can't have

Pauline Hanson you can stop a sign but you you

can't stop a person being at a

function. You can not turn up

if she's there. You can do

advance work. I don't know whether they knew she was

coming or not. It is hard not

to turn up to something because

she's there. I think the presence

presence of Pauline Hanson

makes it difficult. It would

mean that Tony Abbott couldn't go anywhere where Pauline

Hanson is, presumably the AFL

Grand Final. The truth no persecuted or prosecuted

stronger than Tony Abbott did.

In the early years of the

Howard Government Tony Abbott

went after Pauline Hanson and Pauline Hanson bitterly resents it. Grahame Richardson had this

advice. I think what you do

in those circumstances I send

out your Barnaby Joyces that's

their go. They speak to

audiences like that all the

time. He carries on a two bob

watch. You send out the B

Grade but you don't have the A

Grade sully themselves. Tony

Abbott is digging hole for himself. The only

reason Gillard and Labor went

back up in the polls this week has nothing to do with Gillard's performance and

everything to do with Abbotts. What do you think

about that final observation

with the opinion poll? I

disagree. My longstanding

view, and I don't think it is

affected by anything Tony

Abbott has done in the last

week or so, I think this

Federal Government if it falls over it is be entirely because

of things it has done, not because of anything Tony Abbott

has done. You'll need to see what one poll that's whapg.

I'm aware of the termtation it is

is because she took a firm

stance and said we want a

carbon tax. She's selling the

tax in a extraordinary way.

Grocery price risk bid go up 1,

10th of 1 per cent. She's said on several occasions now when

you walk into day supermarket,

you'll see large changes in

prices a bizarre statement,

that those which have carbon pollution embedded in them,

they'll go up a lot, those that

don't have carbon pollution bid

go down a lot, they'll all be

the same. She doesn't

understand how the schemes

goes. No labels on the tins

and no differences in prices. Who was responsible for the

poll fluctuating as it did,

surely because the story

focused for a long time on the

lie and then it changed to

compensation, and in the middle of all of that Tony Abbott went

one way on the science tan

another. It is one poll. I don't know what's going to happen. If you level them out at the moment, I think it is

fair to say that Labor's

probably came back a bit last

week. I think it is far too

early to judge that.

early to judge that. I'm boycotting polls because they're massively they're massively corrosive to

the political protest.

Journalists who criticise

politicians for being cowardly

are just as a dicked to opinion

polls as they are. But I do

think that social security not really rocket science that the

initial response to Julia Gillard announcing a blanket

we're going to have a carbon

tax, I can't tell you how

looks like it, people are going to respond to it in a negative

way. Its not particularly may

work of gene news to work that

out. The question is she can

having taken that hit build it up I over the next couple of

years by explaining how it will

work and get it through the

Parliament and whether she can

recover the position in time

for the actual poll when it happens. There was another

mission that emerged in

Afghanistan. The soldiers in Afghanistan got into for racist slurs: the former

head of the military Peter Cosgrove had this observation

to make. Facebook and can provide unguarded moments

young people come to regret. I

want to make the point that the same soldiers who have been

silly in posts these sorts of

really disreputable comments

are also putting their lives on

the line for ordinary Afghan.

I think we've got to keep a bit of sensible proportion over

this. The point he there too the social media, it

was revealed on Facebook he was

taking a taxi from to Tulmarine

and it cost $900 and he said I

don't do buses. He said that

in he's paying the money back.

It is the dangers of

Facebook. It is, for sure.

Over the last decade or so public servants have

disappeared out of sight. You

see them in estimates and so on

and lots of public employees are bound now by

confidentiality structures and

so on. Social media actually

brings those people to life, it

gives them a direct publishing access that access that gives you these sorts of insights into what

they're doing and thinking.

That is one of the fascinating

things about social media. One

of the dangerous things, too,

if you're kind of trouble

prone, as Sophie's staff has

serially seem to be. We live in

this age of narcissism. When I

was in my

if someone caught a bus or

train or taxi. Who cares.

Shouldn't someone care if he it

catches a 900 dollar taxi. Why

go on Facebook and world you caught a taxi. It is

because you think someone is

interested. It is this mad ego

thing this is how I roll. If it

was a new cost cutter for the

Liberal Party. It is a national eavesdropping service.

You're missing the point if you think this is about someone broadcasting people. I think it is about narcissism. It is about people having conversations a

different way than they used

to. Instead of talking to the

pub and it telling a story how you were late for the train and

caught a $900 cab fare to

Melbourne you're doing it online and lots of people

haven't got their heads around

the fact that anybody can

eavesdrop on that. It reveal

what you think. Going back to the line about the soldiers, the current head of the Chief of the Defence

of the Defence Force, Air Chief Marshal Angus

a very different view to the

previous head. He said this is appalling, it noise in the face

of what we're trying to do in Afghanistan. These are the

comments about comments about anythingers and sand That's the view the Afghan are take as well. We're

supposed to be winning hearts

and minds. You wouldn't want to

drink and tweet either. General

Cosgrove's piece was a

reasonable comment to make.

These blokes are courageous. They

They are he's doing stuff none of us would ever do. to give a bit of leeway, whilst counselling them

counselling them or

disciplining them. I think

Peter Cosgrove was on the right track. More from our panel

shortly, but here is Michael

Bowers with talking pictures. Cartoonist for the

sun herald. Reg Lynch. You

have been in holidays in have been in holidays in Japan.

This might be like coming to another planet. You're never

out of touch. It is a mess in

Canberra with this week politicians blowing hot air at

each other. I don't mind

signs. I like a good cutting

sign, but it's got to be

funny. It It looks horrible

me. It looks stupid. It was

embarrassing from Japan, really respectful coming back looking

it at the tele you see this

rubbish. It's rubbish. This

guy holding it has a T-shirt do

not disturb already disturbed. There's not much grey area hill-billy convention or

something, isn't it. What is

this? My favourite is this

one. My mum is cold. It's on the back of a the back of a famous beer after the same name for $35 a case. On

case. On the back of a

poster. Must have taken the

inspiration from the beer.

When you go to one of these

carbon tax rally you don't have

anything old thing holding it up,

up, you have tennis gear. Bet

back to the tennis, what. I'll

be hitting the balls Penelope. Trying to reduce

carbon remissions. That's a

great picture. I love Mark's

drawings. Tony Abbott drawings. Tony Abbott a good look in the big pointy

hat. David Rowe has Tony Abbott

and his side kick. Julia adviced a facility Julia adviced a facility that

visited lasers. She's one of

those beautiful placards put

it, in the pocket of Bob Brown,

she would try not to look

green. It is like the wicked witch. That's a great picture. It's fantastic, isn't

T Look at those pupils. Meanwhile in

Queensland, let's just go slowly for

slowly for you because I know

you've been away. The you've been away. The current incumbent leader who is

Parliament, he got replaced by

the Lord Mayor who is not in

Parliament. But promised a

seat to win yet to be the

down incumbent won't be the

leader. Are you with me? Mmm.

Lovely drawing. Is there an

Opposition Leader in the house?

No. That's his IPhone. I that. That explains it more

than what you were trying to say. Yes. Drawings are good

like that. Sean Leahy I'm the

new virtual leader of the opposition. That's nice. So opposition. That's nice. So am

I. On whose authority?

Nobody's just like you. Mmm. You've got a point there. Great drawing, got a great head for

drawing. He's got a great head.

I think Sean is showing he'll really Queenslander he is, you're

cruel, Sean, but we love you. That's

That's the plan. Great pleasure

to see you back safe and sound.

Would you like to do the

honours. Barrie. Final