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Tonight - tobacco stains.

People don't like politicians who are hypocrites and Nicola Roxon has been an absolute hypocrite
when it comes to this matter.

The Health Minister found to have solicited the support of big tobacco while tobacco while in
Opposition.

I've asked for my records to be checked. No representatives attended and no donations were made.

Good Good evening, wling come to Lateline, I'm Ali Moore. Federal politicians are back in Canberra
and the gloves are off once again over the carbon tax, the mining tax and the Government's plans
for asylum seekers. With suggestions an agreement with Malaysia is imminent, the Opposition
imminent, the Opposition has stepped up its campaign against the Government's proposed people swap
deal. Tony Abbott fresh off the plane from his preferred asylum seeker option, Nauru. And the
Liberal Party is facing some administrative issues of its own with the director just 10 days away
and a vocal challenger to the incumbent. Our gess tonight is depify Liberal depify Liberal leader
Julie Bishop. First our other headlines. New order, wage increases for public sector workers camp
capped in the changed IR environment of NSW. Under the volcano cloud, Adelaide flights to resume
tomorrow but a weather eye remains on the plume of disruption across Australia.

Roxon caught seeking big tobacco money

Roxon caught seeking big tobacco money

Broadcast: 14/06/2011

Reporter: Hayden Cooper

Federal Health Minister Nicola Roxon says a letter she wrote to a cigarette maker in 2005 asking
for funds was a mistake.

Transcript

ALI MOORE, PRESENTER: The Labor Party has very publically said no to tobacco money for years.

But the Federal Health Minister, Nicola Roxon, has been caught-out asking for financial support
from one of the nation's top cigarette companies.

Ms Roxon wrote to Philip Morris in 2005, a decision, she said tonight, was a mistake.

Her critics say it damages her credibility at a time when she's been attacking the Liberal Party on
the same issue, and preparing to push plain cigarette packaging legislation through Parliament.

Hayden Cooper has the story.

'NANNY', TOBACCO INDUSTRY AD: I make the rules around here.

HAYDEN COOPER, REPORTER: Big tobacco has big pockets. This is the latest television campaign
against the labelling crackdown.

(Tobacco Industry Ad)

'NANNY': Do as you're told.

VOICEOVER: Stop plain packaging legislation.

(end Ad)

HAYDEN COOPER: Australia's third largest cigarette brand is behind the push. It's a direct
challenge to government power.

WAYNE MERRETT, IMPERIAL TOBACCO AUSTRALIA: We really don't want Australia to end up being a nanny
state.

HAYDEN COOPER: They're fighting a losing battle. The Coalition won't oppose the legislation, so
Nicola Roxon has long since shifted the argument to tobacco donations.

Labor rejects them, but the Liberals don't.

NICOLA ROXON, HEALTH MINISTER: It's time to kick the habit Mr Abbott.

HAYDEN COOPER: But the ABC has learned that the Health Minister once sought her own slice of
tobacco industry support.

In 2005, in opposition, she wrote to three executives from Philip Morris, asking for them to
support her re-election by attending a $1,500 a table fundraiser. The new MP, Peter Garrett, was
the star attraction.

PETER DUTTON, OPPOSITION HEALTH SPOKESMAN: Well this just blows the Minister's credibility. People
don't like politicians who are hypocrites, and Nicola Roxon has been an absolute hypocrite when it
comes to this matter.

HAYDEN COOPER: The event was held a year after Mark Latham banned tobacco donations to the Labor
Party. But the then shadow attorney general signed off her letter with this: "I look forward to
your continuing support."

NICOLA ROXON, HEALTH MINISTER: Well look I was very surprised to find those letters, particularly
after 2004.

HAYDEN COOPER: Nicola Roxon says those letters were sent in error and no tobacco money was
received.

NICOLA ROXON: I've asked for my records to be checked, no representatives attended, no donations
were made to this event. But clearly those letters should not have been sent.

HAYDEN COOPER: It comes a week after the Minister admitted to attending a tennis match as a guest
of Philip Morris a decade ago.

The industry well knows that it can't stop the packaging laws. But it can, and will, complain
loudly. And this shows that it's determined to play hardball.

Hayden Cooper, Lateline.

NSW to limit public sector wage increases

NSW to limit public sector wage increases

Broadcast: 14/06/2011

Reporter: Karen Barlow

New laws to limit pay rise claims for public sector workers are set to pass Parliament in New South
Wales tonight.

Transcript

ALI MOORE, PRESENTER: A new industrial era is about to begin in New South Wales with new wage laws
set to pass Parliament this week.

They'll cap pay rises for the state's 400,000 public sector workers at 2.5 per cent, unless genuine
savings can be negotiated for the Government, on the police force has been exempted from the
overhaul.

In a national first, the State's Industrial Relations Commission will be stripped of its
discretionary powers to set wages; with the final say going to the O'Farrell Government.

The Premier says he has a mandate. The union movement says laws may be open to a high court
challenge.

Karen Barlow reports.

KAREN BARLOW, REPORTER: The old foes, a Coalition government and the union movement, are lining up
for workplace war in New South Wales.

MARK LENNON, UNIONS NSW: It is the most significant battle about workplace rights in New South
Wales in over a generation.

BARRY O'FARRELL, NSW PREMIER: We are prepared to take the tough decisions to fix up the mess left
to us by Labor.

KAREN BARLOW: The front line of the New South Wales public service is here in this busy Sydney
hospital ward.

The nurses fear changes to public sector wages laws.

JAN DILWORTH, NSW NURSES ASSOCIATION: It will have an impact on our work conditions, on our awards,
on our wages, on patient care, and I think that the Government needs to tread very carefully. We
need to protect our rights.

KAREN BARLOW: The State Government says a budget black hole, discovered on taking office less than
three months ago, has forced its hand.

MIKE BAIRD, NSW TREASURER: To the tune of about $5.2 billion that Labor forgot to tell us about
Madam Speaker!

KAREN BARLOW: The immediate target is wages of public sector workers such as nurses, firefighters
and teachers.

The Government says decisions in the State's Industrial Relations Commission have ensured public
sector rises averaging 4.5 per cent, since 2007.

BARRY O'FARRELL: This is about doing what is responsible, what's needed if we are to avoid what
Treasury estimates to be a $1.9-6 billion extra bill for tax payers across New South Wales.

KAREN BARLOW: Is it the Industrial Relations Commission's fault that wages have blown out?

BARRY O'FARRELL: Well there is no doubt that over the past 14 years public sector wages in New
South Wales have increased by over 21 per cent. Private sector wages across New South Wales have
increased by 10 or 11 per cent.

ROGER BOLAND, PRESIDENT, NSW INDUSTRIAL RELATIONS COMMISSION: It is the laying of the blame on the
Commission that I object to. I think it was wrong and grossly unfair to have done so.

KAREN BARLOW: That's the president of the State's IRC, Roger Boland, late last month.

He presides over a commission that will lose its power to make judgements, to the Government.

ROGER BOLAND: That Parliament would directly fix wages and salaries for employees rather than an
independent tribunal is a novel proposition in Australia. No other state or territory does so,
neither does the Commonwealth.

BARRY O'FARRELL: If the Parliament does not like it can reject it, but if the Parliament does
endorse it, so too does the Industrial Relations Commission have to respect it.

KAREN BARLOW: The Coalition has a huge majority in the Lower House, and depends on conservative
cross bench support from the Shooters and Fishers Party and the Christian Democrats in the Upper
House.

Under the new regime, wage rise claims over 2.5 per cent will need to be offset by demonstrating
savings in the workplace.

JEFF LAWRENCE, ACTU SECRETARY: I think it is surprising, to say the least, that when you are
getting a minimum wages decision like this, the New South Wales Government is seeking to enforce
2.5 per cent as an increase by legislation and taking away the discretion of the commission to look
at merits of a particular case.

KAREN BARLOW: The savings will be negotiated between the Government and the unions.

JOE CATANZARITI, IR LAW EXPERT, CLAYTON NZ: Well as I understand it there will be some regulation
to assist as to how that it is going to happen. But it will be a case by case basis, indicating
what are the particulars savings for that department, rather than across the board wages increase.

BARRY O'FARRELL: The law sets the framework and once the framework's in place. Once the law has
been passed by the Lower House we'll then publish the regulation which either house of Parliament
within 15 sitting days can disallow if it thinks it is unfair or unconscionable.

KAREN BARLOW: Industrial Relation Commissioners will now be directed by the Government as to how
they will exercise their discretion.

ROGER BOLAND: They will in effect be placed in a straitjacket and a test of, quote, 'fair and
reasonable' in the Act that the statute requires to be applied, is no longer permitted to be
applied.

KAREN BARLOW: So you are constraining, you're straitjacketing the Industrial Relations Commission?

BARRY O'FARRELL: No more than constraining a Supreme Court when you say that the minimum sentence
is for murder of the first degree is x or y or z.

KAREN BARLOW: Unions are outraged.

MARK LENNON: It's always been an independent umpire, and there's no right for any government, no
matter how big their mandate, to kerb the powers, to kerb the independence of the body.

KAREN BARLOW: There'll be strike action tomorrow and a rally at State Parliament, where the laws
are expected to sail through later this week.

Karen Barlow. Lateline.

Indonesia criticises Australian live cattle ban

Indonesia criticises Australian live cattle ban

Broadcast: 14/06/2011

Reporter:

Indonesia's government says Australia should have discussed concerns over cattle welfare with it
before imposing an export ban.

Transcript

ALI MOORE, PRESENTER: Indonesia has criticised the Australian Government's handling of the crisis
over live cattle exports.

Speaking after a meeting with Australian officials the Indonesian agriculture minister says he
understands that Canberra responded to public pressure, but he thinks the decision is regrettable.

SUSWONO, INDONESIAN AGRICULTURE MINISTER (Translation): Of course they should have discussed it
with us first: to check whether or not the news coverage was accurate then let's investigate
together.

ALI MOORE: Suswono says that at the moment there's still no agreement on what animal welfare
standards will be used to test whether the live cattle trade can be resumed.

Carbon tax may close 'one or two' mines

Carbon tax may close 'one or two' mines

Broadcast: 14/06/2011

Reporter: Tom Iggulden

Federal Resources Minister Martin Ferguson has admitted "one or two" mines may close under the
proposed carbon tax.

Transcript

ALI MOORE, PRESENTER: The Federal Resources Minister has admitted 'one or two' coal mines could
close under the carbon tax, but says job losses there will be balanced by job creation at other
mines.

And he's been drawn into a slanging-match with one of Australia's richest mining barons about the
mining tax.

Political correspondent Tom Iggulden reports from Canberra.

TOM IGGULDEN, REPORTER: In the corridors of power, a rare moment of serenity.

DALAI LAMA: I think we met before.

TOM IGGULDEN: The Opposition Leader was feeling spiritual.

TONY ABBOTT, OPPOSITION LEADER: I've been attempting to put into practise some of your meditation
advice.

TOM IGGULDEN: Not so the Prime Minister, who refused a meeting with the Dalai Lama.

DALAI LAMA: If your Prime Minister has some kind of spiritual interest, then of course my meeting
may be useful, otherwise I have nothing to ask him. And also, of course, you see, there's no point
to seek advice from him. Ah, from her.

TOM IGGULDEN: And as the Dalai Lama prayed ...

(Dalai Lama chanting)

... the Prime Minister repeated her own mantra.

JULIA GILLARD, PRIME MINISTER: I get on with the job of pricing carbon.

TOM IGGULDEN: And told a pilgrimage of unionists of her vision of the future.

JULIA GILLARD: We're going to live differently, we're going to work differently.

TOM IGGULDEN: They support the tax, and aren't charitable toward those who don't.

UNIONIST: Little bit sick of turning the tele on and seeing some billionaire miner complaining
about something.

TOM IGGULDEN: The billionaire miner in question is Andrew Forrest, who says the carbon tax will
send jobs overseas.

REPORTER: Would jobs from your mines go if the carbon tax is introduced?

ANDREW FORREST, FORTESCUE METALS CHAIRMAN: Look, it's a very hard call. Look, the company will not
grow as fast so therefore we will not be able to employ the same number of people.

TOM IGGULDEN: But the Resources Minister is admitting jobs in some high-emission mining operations
are under threat.

MARTIN FERGUSON, RESOURCES MINISTER: No-one can rule out a mine or two closing, but can I also say
there's a huge expansion actually going on in the coal mining industry at the moment.

TONY ABBOTT: Does the Prime Minister agree with her Resources Minister that, and I quote, 'no-one
can rule out a mine or two closing' because of the carbon tax.

TOM IGGULDEN: Like the watching Dalai Lama, the Prime Minister was preaching calm.

JULIA GILLARD: For people who work in mining what they should be reassured about for the future is
that there will be more jobs in mining.

TOM IGGULDEN: But Andrew Forrest is accusing the Government of playing favourites among miners,
when it designed the mining tax.

ANDREW FORREST: And they did it through introducing a tax which specifically protects multinational
companies but penalises Australians.

TOM IGGULDEN: But the Government's refusing to back down in the face of a threat to back High Court
action against the tax.

MARTIN FERGUSON: Look we've always known people like Andrew Forrest are threatening to take a
Constitutional challenge unless we designed a tax to suit his personal needs.

TOM IGGULDEN: The scuffle between Mr Forrest and the Resources Minister aside, the Government and
the mining industry have being getting on lately. All the better for getting Julia Gillard's carbon
tax through quickly, even at the cost of the odd mine or two.

Tom Iggulden, Lateline.

Julie Bishop defends Nauru asylum seeker option

Julie Bishop defends Nauru asylum seeker option

Broadcast: 14/06/2011

Reporter: Ali Moore

Federal Deputy Opposition Leader Julie Bishop says asylum seekers will be treated better at a Nauru
detention centre than in Malaysia.

Transcript

ALI MOORE, PRESENTER: Now to our guest tonight, Deputy Liberal Leader and Shadow Minister for
Foreign Affairs, Julie Bishop, who joins us from Canberra.

Julie Bishop thanks for joining Lateline.

JULIE BISHOP, DEPUTY OPPOSITION LEADER: Good evening.

ALI MOORE: Let me go overseas first; it appears a deal between the Government and Malaysia over
asylum seekers is close, what would the Coalition do with that deal if it wins government?

JULIE BISHOP: Ali I think the deal has already unravelled. We must remember that Julia Gillard has
been involved in this matter for many years. It was her policy to unravel the Howard government's
asylum seeker laws that has led the policy failure of this Government in the first place.

When she was in opposition, it was her policy to roll back the Howard government laws. When in
Government they implemented that policy and the people smugglers were put back in business. Julia
Gillard then used that policy failure to roll Kevin Rudd.

She announced the East Timor solution and insisted that it was being negotiated when it wasn't. She
then announced the Malaysian solution, and yet in the time since she announced the solution more
boats have arrived in Australia in the last six weeks than in the last six years of the Howard
government.

So this so-called Malaysian Solution has already been a failure.

ALI MOORE: Well it hasn't actually even been signed yet. But all expectation is that it will be in
the next few days, if not the next week; what will the Coalition do with it if it wins government?

JULIE BISHOP: What we find extraordinary is that the Government has railed for years when it
opposition and in government against the Howard government's Pacific Solution because they said
that Nauru, one of the islands involved in the Pacific Solution, was not a signatory to the UN
Convention on Refugees. Now, Julia Gillard is signing a deal, apparently, with a country that is
not a signatory to the UN Convention of Refugees ...

ALI MOORE: So to go to that question. If they are signing a deal and you're stuck with it, because
you're the next government, what do you do? Do you rescind it?

JULIE BISHOP: Well they're very, very genuine concerns at present as to the status of the 800
people who are to be sent by Australia to Malaysia. There's concern about the status of asylum
seekers in Malaysia generally, but there's concern about the status of the 800 to be sent.

There are genuine concerns about the status of children to be sent to Malaysia and also there are
genuine concerns about the human rights record in Malaysia.

Our policy has been, for some time, that the Prime Minister should pick up the phone, speak to the
president of Nauru, because there is an Australian-funded, taxpayer-funded detention centre on
Nauru.

ALI MOORE: And I'll ask you about Nauru in a moment but the point, or the question is, that if the
Government goes ahead with this deal in Malaysia and you win the next election, what do you do? Do
you bring back the refugees that have been sent to Malaysia?

JULIE BISHOP: Ali, let's see if the deal ever gets done. Remember Julia Gillard announced that she
was going to negotiate a deal with East Timor and she kept insisting for months and months and
months that it was being negotiated when in fact it wasn't being negotiated. She announced a deal
with Malaysia six weeks ago and the details still haven't been finalised.

So let's see if there is a deal and the details of that deal, because of course it was on this
program that we saw some of the details that have raised all these concerns about what the Gillard
Government is trying to achieve.

ALI MOORE: Your preferred option, as you've pointed out, to house asylum seekers is Nauru and as
part of today's censure motion in Parliament, Tony Abbott said inhumanity is inherent in what the
Government is proposing. Was Nauru, in your opinion, really a humane option?

JULIE BISHOP: The option in Nauru worked. It was a detention centre built by the Australian
Government, it was manned by Australian public servants, it had the auspices of the International
Organisation For Migration, and the people of Nauru welcomed them there. They had the freedom to
roam and the island, they weren't locked away. They had access to Australian standards ...

ALI MOORE: But there was also significant ...

JULIE BISHOP: ... of treatment for ...

ALI MOORE: ... mental health issues, weren't there? There was significant concern amongst mental
health experts and indeed reports today that some are still seeking treatment now?

JULIE BISHOP: And you're suggesting that by sending 800 people to Malaysia they will be in a better
position than those who were sent to Nauru? I don't think there's anybody in Australia who would
believe that is going to be the case.

So what Tony Abbott was saying and what we say is, that Julia Gillard has opted for the worst
option. There is an option available to reopen the Australian taxpayer-funded detention centre on
Nauru. Tony Abbott and Scott Morrison visited the island last weekend. They saw the detention
centre, they saw the schools where the children would be sent, they saw the facilities, the health
services and the like.

The Minister for Immigration has not visited the Malaysian facilities where the Gillard Government
intends to send 800 asylum seekers.

ALI MOORE: Well just to move on to another issue, also involving our northern neighbours, and that
of course is the decision to ban all live exports to Indonesia. Do you support the Government's
move to force Meat and Livestock Australia to provide $5 million in compensation to graziers?

JULIE BISHOP: Look, this is another example of the Government's shambolic handling of difficult
issues.

The Government announced a temporary suspension on the livestock that was going to the noncompliant
abattoirs and we supported that. We understand that. But the Government has now overreacted
enormously by banning the export of beef to even compliant abattoirs in Indonesia. This has ...

ALI MOORE: But I asked you about the issue of compensation. Do you support Meat and Livestock being
made to pay it? To provide the funds?

JULIE BISHOP: Well on the ... can I just finish on my point about the, what's happened to the
industry. There's now been the most extraordinary ramifications as a result of this and it just
seems that the Government has absolutely no understanding of the impact of its decision to impose
this total ban. Once more, a knee jerk reaction and the Government has no regard to the
consequences of its actions.

In relation to the matter of compensation, I understand that the cattle industry will be hard hit
by this, that people's livelihoods will be affected, and in that instance I think it's incumbent
upon the Government to support the livestock industry because after all it's this total ban by the
Government that will cause the damage.

ALI MOORE: So you don't support forcing Meat and Livestock Australia to pay $5 million?

JULIE BISHOP: Well I don't have the details of those negotiations and where the Government is up to
and whether the MLA will agree ultimately to pay it or not.

My point is this, the Government made this decision to ban totally beef exports into Indonesia,
even to compliant abattoirs and this will have enormous consequences for the beef cattle industry
across Australia. In my home state of Western Australia about 50 per cent of the live cattle
exports into Indonesia come from the west, the rest from the Northern Territory and Queensland. But
it's not just the cattle producers, it's all the attendant industries like transport and shipping
and feed producers and the like. There will be enormous ramifications across the beef industry
generally as a result of the Government's decision to ban all exports to all of the abattoirs in
Indonesia.

ALI MOORE: Well let's look at issues closer to home. We've heard a mea culpa tonight from Nicola
Roxon in relation to seeking support from big tobacco. When is the Liberal Party going to break its
links with big tobacco or is the money just too important?

JULIE BISHOP: Nicola Roxon has been caught out soliciting donations from tobacco companies a year
after the Labor Party announced that they had ceased taking such donations and yet for years she's
been lecturing anybody about, anybody in her hearing, about taking donations from tobacco
companies. She now has absolutely no credibility on this issue and she's personally attacked Tony
Abbott time and time again over the Liberal Party's stance.

Tony Abbott doesn't have a say over whether the Liberal Party accepts those donations or not, it's
a matter for the Federal Liberal Party.

ALI MOORE: So what are you telling me? If Tony Abbott, as the leader, said 'we should not do this',
the Federal Liberal Party would not follow him?

JULIE BISHOP: It's a matter for the Liberal Party. We separate the issue of donations from the
federal members of parliament. But what I think is interesting is you're asking the Liberal Party
about accepting donations, when we've had Nicola Roxon on her high horse for two years, at least,
lecturing people about taking money from tobacco companies and she's been caught out soliciting
donations for her own re-election from tobacco companies. ...

ALI MOORE: But do you personally support ...

JULIE BISHOP: ... That kind of hypocrisy is extraordinary.

ALI MOORE: Do you support your party taking money from big tobacco?

JULIE BISHOP: Tobacco companies are legally operating entities in Australia. If the Government
thinks that they should not make donations to political parties, well then they should ban them
operating as legally structured entities in Australia.

ALI MOORE: Does it sit well, though, with a party that is led by a former health minister and one
who is very much into physical fitness, as you yourself are, does the image sit well that, on the
one hand you promote that sort of lifestyle and on the other you are happy to take money from big
tobacco?

JULIE BISHOP: As health minister Tony Abbott has done more than any previous and certainly a lot
more than the current Health Minister to reduce the rates of smoking in Australia and he's proud of
that record, as am I. Tony Abbott was a very, very good health minister.

I just find the hypocrisy of Labor over this issue to be breathtaking. We get lectured about taking
donations from tobacco companies and Nicola Roxon has been caught out soliciting donations for her
own re-election. I think that's just extraordinary.

ALI MOORE: Well in 10 days the Liberal Party will elect a new federal director and it seems that
Peter Reith is building some fairly solid support, including from John Howard; has he got your
backing?

JULIE BISHOP: You mean a federal president?

ALI MOORE: Sorry, a federal president, yes.

JULIE BISHOP: There will be an election in two weeks time. I'm not sure who's standing yet, who's
nominated, I'm not aware of that ...

ALI MOORE: Peter Reith has publically said that he will be standing ...

JULIE BISHOP: ... And I'm not sure if there any others ...

ALI MOORE: ... and you have an incumbent who's said that he wishes to stay on.

JULIE BISHOP: And I'm not aware if there's any others. I'll make any judgment at the conference, as
I'm sure everybody else will.

ALI MOORE: Peter Reith is running on a change platform and whether or not you're going to support
him, he completed a review of the last election. On the other side of politics, of course, we've
seen John Faulkner say that Labor is moribund and it's lost a whole generation of activists, it's
closed off avenues of debate; is the branch situation any different for rank and file Liberal
members?

JULIE BISHOP: We have seen some significant reforms in a number of our divisions around Australia.
For example, in Victoria a number of reforms to the constitution in that division have meant that
there have been significant changes to the way candidates are preselected. And in some of our
preselections we've had hundreds of people turning up to cast a vote as to who they want to
represent them in an upcoming election.

So we have put in place some significant reforms around Australia.

Peter Reith has conducted a review into the last election, as one would expect, and that review,
that report is currently with the Federal President, the Federal Director. It will be a matter for
consideration by the Federal Executive in due course and I'm sure there will be a number of
recommendations we will take on board.

We didn't win the last election. We had an extraordinary result. The Government lost its majority,
we now have a hung parliament. So from one perspective it was an outstanding election result, but
we're still in a hung parliament. So there will be lessons to be learned and I'm sure Peter Reith
will have done a fine job in putting a report together that we can learn from.

ALI MOORE: Do you think, though, as Deputy Leader of the Party, that there is room for further
change? For example, do you support choosing candidates by primaries?

JULIE BISHOP: These are the sorts of issues that we will be debating when the Reith Report is made
available to the federal executive and I'll look forward to seeing the recommendations. We have
seen significant change in some of the divisions around Australia, some of the state divisions, and
this will be looking to see what we do on a national level.

And of course there's always room for improvement. There's always room for change and I think the
broader the preselection process can be then the better it is for the party. It's certainly
attracts high calibre candidates and that's what we pride ourselves on, being able to attract
people from a broad cross-section across the community. We're not straitjacketed into these
stereotypical Labor apparatchiks that seem to dominate the Labor benches.

ALI MOORE: So is that a yes to primaries?

JULIE BISHOP: Well I'll have a look at the recommendations of the Reith Report, but there have been
many changes to our preselection process in Victoria and other divisions and they seem to be
working extremely well. Whether it would work for every state or territory division, well I
obviously want to be part of that debate.

ALI MOORE: Julie Bishop, many thanks for joining Lateline.

JULIE BISHOP: My pleasure.

Ash cloud flight chaos enters third day

Ash cloud flight chaos enters third day

Broadcast: 14/06/2011

Reporter: Hamish Fitzsimmons

Airlines have cancelled flights for a third day as an ash cloud from a Chilean volcano continues to
drift over southern Australia.

Transcript

ALI MOORE, PRESENTER: Most flights to and from Adelaide will resume tomorrow morning, after being
disrupted by the volcanic ash plume which has spread across southern Australia.

Qantas, Jetstar and Tiger Airlines all cancelled their Adelaide services today.

Qantas and Jetstar say their services will return to normal tomorrow, and Tiger is confident of the
same.

But Qantas and Jetstar services in and out of Tasmania, in and out of New Zealand, and domestic New
Zealand services remain cancelled.

Authorities are keeping a watch over clouds south of Western Australia but there's hope the ash
will begin to disperse soon.

Hamish Fitzsimmons reports.

HAMISH FITZSIMMONS, REPORTER: After days of frustration, travellers hoped a new day would bring
clear skies and clear terminals, but the news today wasn't good.

DR ANDREW TUPPER, DARWIN VOLCANIC ASH ADVISORY CENTRE: The ash is still sitting over parts of
Australia. It's dissipating, but it's dissipating more slowly than we would have wanted.

HAMISH FITZSIMMONS: The ash cloud, which saw flights in and out of Melbourne cancelled over the
weekend, drifted over South Australia. Today Qantas, Jetstar and Tiger cancelled its Adelaide
services. Tiger also ceased its Perth service.

TRAVELLER: Frustrating, you know, but if it's for the safety of all passengers then that's, you
know, a good thing.

TRAVELLER 2: Why is one airline flying and the other one is not? Jetstar have cancelled flights
left right and centre and I've just gone to Virgin and they want, a one-way ticket, $405 from
Melbourne to Sydney.

HAMISH FITZSIMMONS: Qantas and Jetstar have again cancelled flights in and out of Tasmania and New
Zealand. But Virgin continues to keep the same routes open, saying safety is its highest priority.

The aviation safety watchdog says it's comfortable with some airlines opting to fly under or around
the ash, while others choose not to.

PETER GIBSON, CIVIL AVIATION SAFETY AUTHORITY: We're confident they're coming to the right
decisions, that they're putting safety first so that air travel continues to be the safest form of
transport.

HAMISH FITZSIMMONS: With people facing days of waiting, some frustrated passengers flocked to
alternate transport instead.

But that too is now in short supply.

TRAVELLER 3: Now we're trying to travel back on an airline to Tasmania, which is a small charter
airline, and we're waiting for a phone call to see if we can go back s at $400 or $500 a head
today.

HAMISH FITZSIMMONS: Some went by road, others by rail.

TRAVELLER 4: My car's in Sydney.

TRAVELLER 5: We got the last four seats on the train.

TRAVELLER 6: Oh it's ok, it's overnight it's ok, you know it's a bit hard sitting out.

HAMISH FITZSIMMONS: Or by boat.

TRAVELLER 7: We went to the airport, along with about 100 other people, and of course they said
eventually they said 'no more flights'. So we had to get to an international flight, and we managed
to get on the boat last night thank goodness. So here we are.

TRAVELLER 8: We drove to Davenport and we're exhausted - no sleep.

HAMISH FITZSIMMONS: The bad news for those travelling in the next few days is more that ash from
Chilean volcano is expected. But forecasts are improving.

ANDREW TUPPER: The good news is that the volcano is not emitting anywhere near the same amount of
ash now. So while there's still ash coming towards us from the Atlantic and Indian oceans, we know
that there is an end in sight.

HAMISH FITZSIMMONS: The waiting game looks set to continue for the next few days at least.

Hamish Fitzsimmons, Lateline.

Italy referendums deal blow to Berlusconi

Italy referendums deal blow to Berlusconi

Broadcast: 14/06/2011

Reporter: Emma Alberici

Italians have turned their backs to president Silvio Berlusconi by voting against government plans
at three referendums.

Transcript

ALI MOORE, PRESENTER: Results in the Italian referendums held over the weekend have struck a blow
to Silvio Berlusconi's government.

Voters have overwhelmingly decided against nuclear energy, they don't want to privatise the
country's water utilities and they also made it clear that government ministers should not be
immune from prosecution.

Europe correspondent, Emma Alberici.

EMMA ALBERICI, REPORTER: Those who turned up to celebrate on the streets of Rome cheered as much
for their success at the polls as they did for their chance to send a message to their prime
minister.

JAMES WALSTON, AMERICAN UNIVERSITY OF ROME: Berlusconi is clearly out of favour with the majority
of Italians, for one reason or another. He has tried so far to deal with his lack of support in the
local elections, and now in the referendums, by ignoring the signs. He pretends that everything is
alright.

EMMA ALBERICI: These were not compulsory elections and the Italian government spent $400 million
trying to convince voters to stay away from the ballot box. Without a 50 per cent turnout, the
referendum would not have been valid.

But not only did an overwhelming majority of Italians show up, 94 per cent of them voted yes to
scrap Mr Berlusconi's plan to reintroduce nuclear power, which was abandoned in 1987 after the
Chernobyl disaster.

In a country that's prone to earthquakes, Fukushima looms large.

SALVATORE BARBERA, GREENPEACE ITALY: 22 million and a half Italian people said 'Si'. Si means 'I
don't want nuclear in this country' and this means that the only possibility is to go to renewable.
Germany, Japan, Switzerland, now Italy.

EMMA ALBERICI: The prime minister had hoped that Italy would meet 25 per cent of its electricity
needs with nuclear energy by 2030. Now it will need to rely more heavily on the renewable sector
which already makes up 22 per cent of the country's power supplies.

SILVIO BERLUSCONI, ITALIAN PRIME MINISTER (TRANSLATION): Due to the decision that the Italian
people are taking right now with the referendum, we will have to say goodbye to nuclear power
plants. So now we will have to commit to the renewable sector.

EMMA ALBERICI: As counting ends in the three referenda it's clear the voters also said no to
placing their prime minister and his cabinet above the law by allowing them to avoid court cases
against them by claiming to be too busy to attend proceedings.

Italians rejected, too, Mr Berlusconi's proposal to privatise the state's water assets.

JAMES WALSTON: He's been the centre of Italian politics for 17 years, any vote that the Italians
have taken over the last 17 years has in some way been a vote on Berlusconi and this one is no
exception.

EMMA ALBERICI: The setback for the government comes just weeks after defeat for the ruling party in
local elections. Mr Berlusconi's party lost control in important cities like Milan and Naples, but
this time his coalition partner, the far right Northern League, also suffered heavy losses.

A general election isn't due to be held in Italy until 2013.

Emma Alberici, Lateline.

High-speed train to link China's megacities

High-speed train to link China's megacities

Broadcast: 14/06/2011

Reporter: Stephen McDonell

A high-speed rail link between China's political and financial capitals, Beijing and Shanghai, is
set to open in a few weeks.

Transcript

ALI MOORE, PRESENTER: China's political and financial capitals are about to be joined by a new
high-speed rail link.

In the next few weeks the service between Beijing and Shanghai will be open to time-conscious
commuters, who'll have a real alternative to the notoriously delayed air connection between the
Chinese mega-cities.

China correspondent Stephen McDonell reports from Beijing.

STEPHEN MCDONNELL, REPORTER: At one end is China's capital, Beijing; at the other the financial
megacity, Shanghai. In between, a new high-speed rail line, which will open to the public in the
coming weeks.

The trains are currently being clocked at 350 kilometres an hour, but when the regular service
starts it will be reduced to 300 kilometres an hour. Some critics say that this is because of
safety concerns, but the Railways Ministry denies this.

Deputy minister Hu Yadong says the speed reduction will save significant amounts of electricity and
require less track work.

The journey of over 1,300 kilometres will take four hours and 45 minutes; making it competitive
with flying. In just over three years China has built an extensive high-speed network.

Of the four million daily rail passengers, one million of them can now travel on high-speed trains.
But Beijing to Shanghai is the jewel in the crown.

China's ever expanding high-speed train network is a source of great pride here. The government is
also touting it for its low carbon qualities, as a clean, green and fast form of transport that
will serve this country well into the future.

Chief engineer He Huawu says China wants to use high-speed rail to push forward what he called the
development of green transport.

And whereas planes have delays and cancellations, we're told that come rain, hail or shine, these
trains will run.

Stephen McDonnell, Lateline.

Christchurch tremors claim first victim

Christchurch tremors claim first victim

Broadcast: 14/06/2011

Reporter:

New Zealand authorities confirm yesterday's earthquakes in Christchurch have claimed the life of an
elderly man.

Transcript

ALI MOORE, PRESENTER: Yesterday's earthquake in Christchurch has claimed a victim, with health
authorities confirming that an elderly man died in a fall during the tremors.

The quake also damaged hundreds of buildings in the city and following February's earthquake; there
are now a thousand buildings marked for demolition.

In the eastern suburbs residents are cleaning up after liquefaction flooded houses with mud and
silt.

The situation is so bad that the New Zealand prime minister, John Key, has conceded that some parts
of Christchurch may have to be abandoned.

Now to the weather: And that's all from us. If you'd like to look back at tonight's interview with
Julie Bishop or review any transcripts you can visit our website. You can follow us on Twitter and
fais book. Sh - Facebook. Tony Jones will be here tomorrow, I'll see here tomorrow, I'll see you
again on Friday. Goodnight.