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(generated from captions) right. A lot of resources are

renewable and minerals aren't.

I have never seen anything

grow when a greater level of

tax is imposed on it.

(Comment from the audience).

I would like to point out the

guaranteed increase from 9 % to 12% does not have universal

endorsement within economists.

I think it is a silly idea.

So does Ken Henry. He said

specifically don't do it. doubt the fund managers are licking their

licking their lips about this.

The notion you would get people

like here in the audience, to

forego the ability to pay their mortgage off is bad public

policy. We are nearly out of


taxing and against debt, where

is the plun going to come from

to fund all the essential

things we need in this nation

like infrastructure and other

development projects? Where

will the money come from? The will the money come

Government is much larger than what the Labor Party Government is much larger now

inherited in 2007. For

example, there are 20,000 more public servants in Canberra today than there were when

Labor inherited government in

2007. You are not answering

the question. Where will the

money come? For a start,

12,000 public servants in

Canberra will be made redundant over a two year electioned. (LAUGHTER) You immediately upon us being

asked, I'm sorry. You have asked, I'm sorry. You have to make hard decisions. What

Departments, by the way? I will say to you Julia Gillard's

Department this year alone has

increased by 60. Wayne Swan's

Department is the largest Treasury has ever been. You plan to cut down Treasury,

Prime Minister and cabinet.

There is 20,000 more public

servants. Have we got better

Government? No . I am interested in which ones you Defence? I am saying to you we are

have to cut. We have to make

hard decisions. We went to the

last election putting in detail

$50 billion of cuts. It was hard, it was politically

difficult but we did it because

it is right. The only way you

can have smaller government is

if government starts to cut its

cloth. It is asking

Australians to take a haircut,

it is about time this

Government started taking a

haircut. (APPLAUSE). Why don't

we start with those areas where

- at the moment, somewhere

between $10 billion and $12 billion a year is going to

subsidise fossil fuel industry.

At the bowser it is 38 cents a

litre tax, when the mining litre tax, when

industry pays for the diesel,

it pays nothing. Why are we

talking about cutting public

servants at the same time as

funneling you and I and everyone else is

funneling $11 billion a year to

a mining industry? Because

those figures are wrong. Give

them a free chocolate. I will

give Anthony Albanese the last

word because we are about of

Joe is still looking for the

$11 billion black hole in the

$50 billion of cuts. Treasury,

even Saturday's announcement, available for public costings. we have said Treasury is

They respond to that by

slagging Treasury. You can't

have it both ways. What they

want to say is they will

more, deliver more want to say is they will spend

infrastructure, tax less, have

no carbon tax, but be able to

have compensation and continue

to benefit people. No, we

don't need to compensate

Where will the money come from

for direct action? Through the

tax system. But we have said

that. We have outlined in

detail ... It doesn't add up.

It does. We will happily lay

down our ability to add up and

make the Budget come to surplus against

against Labor any day. We will

have to wrap it up. Please thank our panel, Adam Bandt, Anthony Albanese, Fiona Katauskas, Joe Hockey and

Judith Sloan.

Next week on Q&A, Finance

Minister Penny Wong, WA Liberal

Senator Jimmy Carter, Liz Anne

Mac greg gor and John

Hewson. We will leave you with

a homage to the newest Party in

Australian politics, the Australian Party.

See you next

listen to me and I will tell

you what to do # This is true

others democracy, no need to vote for

# They can vote for # Write a list of policies

# I reckon 20's a good number # I

I like wrear a hat, it is

sunny where I come from

# Unlike the media, they only

talk about the cities.

# You can help me modify # You can help me modify the Coles and Woolies of democracy

# We can represent ourselves by

making heaps of other polly parties

# Australian Party

# Join mine or create your own

Tonight - smoke

signals. They are protecting

their intellectual property and

markets. Big tobacco takes its the brand globally in very big

fight against plain packaging

to the courts. We estimate that

it would be - it may be in the

billions. We haven't got a final figure yet and ultimately

it's going to be up to the UN

trade law court that will hear

this case to determine the way

to evaluate the actual

compensation. Live.

'Lateline'. I'm Ali Good evening. Welcome to

'Lateline'. I'm Ali Moore. After six years, Air Chief

Marshall Angus Houston is in

his final days as chief of Australia's Defence Forces. As

well as troops fighting a war

in Afghanistan, Angus Houston

leaves behind a series of reviews and investigations prompted by the skype sex

scandal at the Australian

as Defence Force Academy as well

as equipment failures and

Houston says there's no procurement

fundamental issue with the Defence Force and there

shouldn't be too much focus

currently under given to the myriad reviews

currently under way. I would

submit that, yes, we have had

problems in the past, but I'm very happy with the

values-based culture that we

advocate at the moment. And the

culture that leads to

behaviours that most of our people have. Air Chief Marshall Angus coming up. First our other

headlines. Unfair pay. Three companies prosecuted for paying

Filipino workers less than $3 an

an hour. No battler will be out

of pocket. The Federal

Government says it will overcompensate the most disadvantaged households for

the cost of the carbon tax. And

the hungry nation. A rare glimpse inside North Korea

shows that millions of people suffer from malnutrition and the army can't even feed

troops. Tobacco giant Philip

Morris has initiated legal

action over the Australian Government's plans to introduce

plain cigarette packaging. The company company is threatening to take the Australian Government to Han International Court and says that removing brands from

cigarette packs will lower the value of its trademark and

intellectual property. The

Federal Health Minister says

the government can withstand an

attack from big tobacco but

legal experts say this is just the start of a global

Plain cigarette packaging is

due to be phased in to

Australia from January 2012.

It's a world first, and the

tobacco industry wants to stop

it. Philip Morris Asia says the

new laws will breach Australia's investment treaty

with Hong Kong, where the

company is based. It argues

that removing brands from packages will take away its intellectual property, and

unfairly reduce its cigarette prices prices and profits. I think

most people know that brands

have value. You can choose between between generic brands and brands with brands. Everybody

knows the generic brands are

cheaper. And brands really do

have value and that's why we're

pressing forth with this. The

Federal Health Minister says

the government is not

intimidated by the legal challenge. And that international laws international laws allow nations to act in the interests

of public health. The World and recommends in its tobacco

control convention that States

should consider taking this

step of introducing plain

packaging for the sale of

tobacco products. The legal

action by Philip Morris opens

up a three-month negotiation

period between the two sides.

If that fails, an International

Court will hear the company's

compensation claim. We estimate

that it may be in the billions.

We haven't got a final figure

yet and ultimately it's going to be up to the UN trade law court that will hear this. The dean of law at Sydney

University says the size of the cigarette market in Australia

is tiny compared to other parts

of the world. And that Philip

Morris is more concerned about

other countries following

Australia's lead. Yes, it is a

global matter, because they are protecting their intellectual

property and the brand globally

in very big in very big markets. China,

Indonesia, India, Vietnam, and

other parts of the world in the

Middle East and parts of America,

America, so America, so if they were to lose the fight, if they were to

loses on the basis that

Australia can impose its own

health policy in this area then

that this is a a profound threat to their capacity to

market the brand in other jurisdictions. Philip Morris

has also launched a legal challenge against South American country of

Uruguay for damaging its

business prospects. Uruguay has

a population of just 3.5 million people, million people, and is a

relatively tiny cigarette market. But it's been tough on

smoking, and has placed health

warnings on cigarette packs. They are currently

bringing a very similar action

against ewe guy on the basis of

a bilateral investment treaty in Switzerland and Uruguay but the

argument is broadly the same. Other cigarette companies are also considering taking

legal action against the

Australian Government. But some

legal experts see a problem with Philip Morris's challenge. Philip Morris would

have to be able to indicate

they are suffering damage or detriment as a result of the

actions of the Australian Government through the

enactment of legislation, and I

don't believe that at this

point in time, they can

conclusively point to that. I think the global debate is going to be

that health policy will trump

the rights to intellectual property protection property protection and

branding in this case. The new

plain packaging legislation is

due to be introduced into

Parliament next month. Three

companies and a company

director are being prosecuted

for allegedly underpaying four

Filipino workers on an

Australian oil rig or Australian oil rig or oil rigs.

In April 'Lateline' revealed

they were in Australia on the

wrong working vees sags and

earning less than $3 an hour while employed while employed on a multibillion dollar project. The Fair Work Ombudsman is

seeking back pay for the men and large fines for the

companies and a director for alleged breaches of Australian

workplace law. These Filipino

workers have been seeking back

pay for five months working on oil rigs next to fully paid

Australians, the men were

earning less than $3 an hour.

The case is now The case is now going to court. We're happy but still

worrying. When and where. The

question is when and where and

how we can get the back pay.

The Fair Work Ombudsman has

lodged a statement of claim in the Federal Court in Perth

alleging the four men were

overworked and severely underpaid on a north west oil

rig over a 20-month period. They're estimated to be

collectively owed $127,000. The

people were working

extraordinary hours without

breaks. In effect, 12 hour days

for seven days per week pretty

much continuously. They work as marine painters and general

hands around a rig operated by

Danish international Mersk for

Woodside Petroleum's $14

million Pluto gas Neither Woodside nor Mersk has

been cited in the Fair Work

Ombudsman's action over the

alleged underpayment. Hong

Kong-based company Pokomwell Limited is being prosecuted as

are Philippines based company

Supply Oil Field and Marine Personal Services or SOS, West Australian based company Survey

Spec Pty Ltd and its sole director Thomas Sevillo. These

payments if we can prove them

to the court are significant for people who are

foreign workers and also quite

low educated, lowly paid

people. Documents submitted to the court state that Pokomwell was the employer of the four

men and it authorised SOS to

pay the men the low rate of

$900 a month. SOS was the agent

for the employer, and it

provided the men two survey Spe

c to work on the rig. paying the company $400 a day

for each worker. The ombudsman

alleges the company's director

was unkerjing the Philippines

agent SOS to provide the lowest

possible price. He sent an

email requesting it provide its

best price as the customer

needed a good price. The

eventual rate of $900 a month

was far off the minimum

industry rate of $660 a week.

The workers were also not paid

various allowances and penalty rates. And had been allowed

into Australia on the wrong 456

visa. These workers at the very

minimum should've been engaged

on 457 visas. The offshore oil and gas companies have

exploited a small loophole in

the law and I think it's time

that loophole. The Fair Work for the government to close

Ombudsman says it's confident

about taking Australian court

action against two foreign

companies and it's open to

pursuing other companies should

new evidence emerge. We are

firm in our view that there

have been breaches. The company's Managing

been sought for comment but has

due in court next month. been unavailable. The case is

The ABC has obtained some of

the most revealing footage to

be smuggled out of the

secretive and impoverished

North Korean state T shows homeless children begging for

food and a military also

soldiers. The struggling to feed its

forced to build a railway line for Kim Jong

for Kim Jong Il's third son and

presumed heir Kim Jong-Un.

Risking his life a North Korean

reporter shot the footage using

a hidden camera then smuggleed

it out of the hermit kingdom.

They appear malnourished, their

faces coated with filth. Of the

millions who suffer from the corruption and violent repression of North Korea's dynastic regime, few suffer

more than the children. These

young beggars are young beggars are orphans. Their parents victims of hunger

or the Gulag. I am 8. My father died and my mother left me. I

sleep outdoors. In this vision, secretly shot just a couple of months ago, it's clear

clear that food is available.

But most of it is funneled to

the military. Everyone must contribute. Here, stall holders in a

Pyongyang are being ordered to

donate bags of rice to the

army. My business is not good,

complains this merchant. Shut up, replies the military administrator. Don't offer

excuses. Sydney the army once quarantineed from the apocalyptic famines which

killed hundreds of thousands

now appears to be going hungry too. Everybody is weak. Within my troupe of 100 my troupe of 100 soldiers, half are malnourished. All of this

footage was shot by a North Korean journalist using a

hidden camera. It was then

smuggled out of the secretive smuggled out of

state and given to Jiro Ishimaru an activist who trains

North Koreans in undercover

reporting techniques. It's journalism that carries the

death penalty. In footage is important because it shows that

Kim Jong Il's regime is growing

weak. It used to put the military first. But now it

can't even supply food to soldiers. They are starving.

fear that millions of North This footage reinforces the

Koreans are wasting away from

malnutrition, with many facing starvation. But it also reveals

that Kim Jong-Un the well-fed

son of Kim Jong Il and the

dictator's presumed heir is

beginning to impose his will on his impoverished people. This

is footage of workers forced to

build a railway line for the personal use of the man they call future leader, Kim

Jong-Un. This is a present from

Kim Jong Il to comrade Kim

Jong-Un says the railway

supervisor. With his identity

disguised the man who risked

his life to shoot this extraordinary footage explains

why he did it. Only an elected

person should govern the country. The life of North

Koreans has hit rock bottom. I

feel very angry about the succession to Kim main priority for Kim Jong Il

is a smooth transfer of power.

But Kim Jong-Un is still very

experience and has achieved young, just 27 or 28. He has no

nothing. So opposition to this

third generation of the Kim

family taking over is growing.

This footage appears to show

the North Korean army facing

severe food shortages. For a

regime that relies on the military for its very survival,

this could prove disastrous.

longer sees action on climate The Australian public no

change as a serious option. Bob Carr made the comment in Former New South Wales Premier

reaction to a poll showing

support for action on climate

change has collapsed. But Julia

Gillard's pressing on with the

plan, saying it will plan, saying it will be

finalised within weeks. The

government is being vague about

its deadline or unveiling its

saying July. Make that late July. I would adopt the

language of weeks but we are done working hard on this and we'll

done it as soon as we

can. Sooner would be better on

an issue that according to one

poll is slipping fast down the

greasy pole of public opinion.

Support for aggressive action

to combat climate change has

plunged to 41%, from an overwhelming majority in 2007.

Gradual measures to deal with support but climate change

action which costs money is

facing rising opposition. Many

in Labor are worried the

government should've tried

harder to price carbon, back in

the day when public support for

the issue was the issue was strong. The core

of this delay has got to be

sheeted home to the Greens who

voted with the coalition to

delay it while skepticism grew

apace and then to do it in in

December 2009. But the Greens

say the poll is

misleading. People weren't told

that there would be

compensation, so they were were not told that households

will be assisted. The

government is telling them

that, though, especially lower-income

3 million households on low

incomes will get a battler's buffer. A buffer so that

they're actually getting 20%

more than the expected impact

on them of a price on carbon,

because we realise they're the

Australians with the absolutely

tightest budgets. But money's

not the only object with there's also concern about what

the neighbours are up to, one

in particular. The defeat of support for cap and trade in the

the US Senate I think figures

very, very significantly in

having Australians now regard

bold action on climate change

as not a serious policy option. Now, the government

keeps peddling this lie that

the rest of the world is on the verge of introducing and emission s training scheme. If the government is

being vague about when it will

unveil its carbon tax the same

could be said of when it plans

to allow the resumption of Indonesian live cattle trade. The Agriculture Minister has announced a $3 million

compensation package for those

who've lost their jobs because

of the ban but he says though

it will run for 13 weeks,

that's no guide to how long it

will take the industry to fix its animal cruelty issues. All

of that does take a bit of time. It won't for this trade to reopen. Given

his support package has to pass

both Houses of Parliament, he is continuing to pressure Meat and Livestock Australia to open

its wallet. The MLA should now

step up to the plate and meet

that $5 million contingency

fund. But the MLA says that's not what

not what its contingency fund

is designed for. Now 0 to our government, Air

Chief Marshall Angus Houston

has been the chief of

Australia's Defence Force for

six years. During the time in

the job the job he has overseen Australia' engagements in Iraq

and Afghanistan, has worked

with five Defence Ministers and

has seen scandals emerge over the culture in Defence. Air Chief Marshall Angus Houston

joined me earlier from our Canberra studio. Air Chief Marshall Angus Houston, welcome to 'Lateline' and many thanks for

for joining us in your last

week in the job. Good evening, Ali. here. You're leaving the

Defence Force at a time when

there's an unprecedented number

of inquiries. There's the six investigations put

after the skype sex scandal at the Defence Force Academy, as well as a completely separate

review of defence procurement and maintenance. Do you have a

sense of unfinished

business? Well, I don't think

it would matter when I would

leave a dynamic organisation like the

There will always be reviews going, because that's the

nature of the beast. It's a very large, very complex

organisation. I think it's

probably the most complex and

diverse organisation in

Australia. And arguably one of

the most complex organisations

in the Southern Hemisphere. You don't think this number of reviews is somewhat

unusual? Well, you know,

unfortunately for me, we did have an abhorrent incident at

the defence academy. A couple

of months ago. And the minister has discussed with

me and the secretary what we might

might do about it, and what has

been put in place as a series

of reviews that build on work

that's already ongoing in terms

of women, in terms of misuse of alcohol and other areas. You talk about

the fact that this is work

that's ongoing and those

reviews, they do range from

looking at the particular incident to looking at the treatment of women more generally across the Defence

Forces, to even looking at your

own legal processes. But what

is it, do you think, about

Defence that's led it to be in

the position it finds

itself? Well, you know, I think

that Defence, as I've mentioned, it organisation in Australia. Right now we're conducting

military operations. We have

the highest level of

operational tempo we've had in operational tempo

a generation. 3,300 people on

operations right now. If we

have a look at what we've done

over the last six years, 58

operations, 69,000 individual deployments and of course many

of those deployments have been in harm's in harm's way. Our people have

been fighting in a war. At the

same time we have a lot of

people back home that need to

be taken care of and of course be taken care of and

the business of Defence

requires big decisions about

acquisition and of course lots

of effort in the sustainment

area to ensure the whole

machine keeps going. So it's a

very complex business and there

will always be many challenges and of

and of course a lot of equipment we buy is at the

leading edge of technology. And sometimes there sometimes there are challenges and issues that need to be

looked into. That's the way I

would characterise it. I don't

think it means that the whole

organisation is doing poorly or

anything like that. Witness the

great job we're doing on

operations. So I'm very proud

of what our people do. And I of what our people

think that we shouldn't give

too much focus to the reviews.

The reviews are a good response to a series of issues that have

arisen in the recent past. It's

not the end of the world. You

don't consider that there is

any sort of fundamental

cultural problem, not only in the context of the reviews but also for example the law firm

that's been commissioned to

independently look at

allegations of bastard

had some 1,000 complaints, some

very serious, some minor, but

did that number surprise

you? Well, I'm a little

surprised by the number but

when you consider that some of

those complaints go back to

World War II, and in that time

we've had probably well over a

million people in the Defence

Force. It's probably not

surprising there's about 1,000 people complaint. I would submit that people who've committed a

yes we have had problems in the

past but I'm very

the values-based culture that we advocate at the moment and

the culture that leads the

pavers that most of our people

have. Sure we will occasionally

have incidents and sometimes

very embarrassing incidents, I

think what happened with HMAS

Success is one of those. when you have a close look at

HMAS Success that was a failure

of leadership and a misuse

alcohol and I would submit that

if we hadn't had any alcohol

near the ship we probably wouldn't have had the circumstances that arose.

sound and from time to time, Fundamentally the culture is

there will be situations that there will

arise which don't meet our very

high standards. Just look at

do our people on operations. They

do a magnificent job and they

are lauded all the time for their superior their

performance. Let's

performance. Let's look at HMAS

Success, because that was an

example where you talked about

needing to cut out the cancer.

I guess in relation to what you

just said that there will be

from time to time issues, can

you ever cut out the cancer as

you put it in relation Success? Can you ever

completely get rid of these problems? Yes, you can. And that's one of the things that

Admiral Russ Crane introduced

to navy. He calls it new

generation navy. It's a cultural change program which emphasises leadership, values

and signature behaviours. And that sort of program is being

and if embraced by everybody in navy

and if we can get everybody to

sign up and embrace sign up and embrace that

culture, we're going to have

improvements in the way people

you have such a problem at behave. If you can, why did

ADFA? What went wrong? Well, I would submit again that would submit again that what

happened at ADFA happened to a

group of young the circumstances absolutely

abhorrent. But those people

involved in what is known as involved in what is

the skype incident had only been in the Defence Force for

10 weeks, so I don't see it as

being a problem with defence

culture, a problem with ADF

culture. Rather, it's something

that arose shortly after those

young people joined the Defence ... Can I just finish? Certainly. I'm very proud of the defence academy. I have

seen it change over the years.

In my 10 years as CDF and also

as chief of Air Force, I've

been very, very happy with the

product that we get out of

ADFA. Wasn't the issue not

involved had only been there just as you say the people

for a limited amount of time,

but wasn't the

it was dealt with? For example, the Defence Minister Stephen

Smith was very public in his

criticism of Commodore Bruce

Kafer the head of ADFA who has

now been sent on leave. He

accused him of a serious error

of judgment over how he originally handled the case? Unfortunately, some of

the media reporting in the first instance was not completely correct. recall the minister corrected

the record on that. What I

referred to was the alleged

vilification of the young lady.

That didn't actually happen. That didn't

The record was corrected. But unfortunately, most people

still don't know that. Now, in

terms of that particular set of

circumstances, I talked to the circumstances, and minister about those

circumstances, and we agreed

that what needed to be done is

for a full inquiry of the incident. That inquiry conducted into the management

is ongoing. It's the Kirkham inquiry. And I think we should

just wait and see the outcome

of that inquiry. But Bruce

Kafer is still on leave while

that inquiry is being undertaken? Bruce Kafer is performing duties in another

part of the ADF. And he's

continuing to continuing to contribute in a very constructive and

meaningful way. And I think

we've just got to wait for the

outcome. Kirkham inquiry. We

shouldn't jump to any premature

judgments. Let's see where it

falls out when Kirkham reports. Hopefully

Hopefully in a few weeks'

time. On the broader issue of accountability within the ADF,

if we look at two other notable

cases from earlier this Minister very publicly blasted

Defence over the failure to

keep crucial ships seaworthy.

You jointly wrote the report on that one. It looked that one. It looked at systemic and cultural problems and hence

the review that's now being led

by Paul Rizzo. The second the

announcement there were six

landing craft that cost $40

million and weren't fit for

service. That was a project

started in 1997 as I understand

it but only cancelled this

year. Was any individual or

individuals held responsible or accountable accountable for either of those

two instances? No, not at this

time. The Rizzo report looks

into the whole circumstances of

the amphibious capability. The

report looks very closely at

capability management and the sustainment of the capability

over time. And as the secretary

and I reported to the minister, there are clearly deficiencies

in the management of that

capability. But I would also

add that I think we've

a lot about buying old, worn-out, second-hand equipment. Those ships were

bought at the end of their life

in the US navy. They were

modified and then brought into

service with the Royal

Australian Navy. I think in retrospect, that was

decision. Because we didn't

have the norm al logistic

support arrangements. We didn't

have the normal configuration

management information. Indeed,

we made a poor decision in

buying those ships. Going back to accountability, the Defence

Minister told this program in

April, I think the so-called

skype incident does bring home

this point, that the single

biggest challenge we have defence is to improve personal and institutional accountability. There've been

too many very bad examples in

the history of Defence where

no-one has been held

accountable for very adverse outcomes. Why is

that? Well, I would just say

that, you know, if you look at

my profession, the profession

of arms, we hold people

accountable all of the time.

And I would submit that we do

that on a frequent basis. In

terms of accountability around

large projects, sustainment and

the like, the secretary and I

have been very focused on

tightening up accountabilities.

We commissioned Dr Rufus Black

to have a look at that. Do you

agree there is a way to think there is a way to go. One

of the things we need to do is

sharpen accountabilities

across-the-board in such areas as capability management,

acquisition, sustainment and

the like. Do heads ever roll

in Defence? Yes, they do. If we can turn to Afghanistan, Barack

Obama has announced the first

withdrawal of US troops. He is

moving fast er and deeper than

the advice of his top commanders,

time the US has confirmed

tentative discussions with the

Taliban, and a point made by

Robert Gates is that Taliban

won't come to the negotiating

table until they believe they

can't win militarily. Is now

the time to be announcing a

withdrawal of troops, phased as

it is? Is it not potentially

going to send the message, sit

tight, the foreigners will be gone? Well, I think

in December of 2009, when

in Chief of the US forces, made President Obama, the Commander

his announcement to announce

the surge. What we've seen is

exactly what he said at the

time. That the surge would go

in to basically accomplish a

number of tasks, and in

middle of 2011, the drawdown of that surge would commence. And that's exactly what's

happening. And in that time, what we've seen is a huge

growth in the size of the Afghan national security

forces. Those forces have grown

80,000 in the last 12 months

alone. You don't believe it

will have an impact on the

ability to bring the Taliban to

the table? No, I important is that we sustain

the pressure, and I think

through this fighting season, and

and indeed in subsequent

fighting seasons, we able to do that. I know that

in five days' time, your job

will be finished but you have

another job, I understand,

honouring your father? Well,

that's right, yes. Shortly

after I leave the job, I will

travel to Belgium, where my

War II. I've never been to the father was shot down

place. Indeed, I didn't know

precisely where his aircraft crashed. Of course he came down crashed. Of

in a parachute. And believe it

or not, through going to a NATO

meeting and sitting next to the Belgian vice chief of the

Defence Force, I mentioned that

I had this connection with bell

jul and he questioned me about

when, where, who, what type of

air craft and so on. And weeks later I got an email

which detailed the precise

place, gave me photographs of

the place and also a photograph

of my father 's wingman who

unfortunately was killed in the

sortie that they were

conducting. N and then later, I

got an eyewitness account of my

father's capture by the Belgian collaborators. And I'd really

like to like to catch up with that

individual. Because I think it

will be incredible to listen

to, if you like, my father's story. I know that it's

something that I will value

very much indeed. Certainly a

very big job when you've

finished this job. Angus Houston, many thanks for being generous with your time tonight

for 'Lateline'. Thank you very

much, Ali. Goodnight.

The International Criminal

Court has formally issued arrest warrants tonight Libyan President Colonel

Gaddafi, his son and the

country's spy chief for crimes

against humanity. The

announcement comes as rebels in

the south west have moved to

within 80 kilometres of the

capital Tripoli, and others in

the east prepare themselves for

what they see as a final

push. What we're learning supporters are getting fewer.

People who were close to him

are abandoning him and his

inner circle is getting smaller

by the day. Tunisia's state

news agency is also reporting

that three Libyan ministers,

including the Foreign Minister,

are in the country and

negotiating with what it calls

foreign parties. The British

Prime Minister David Cameron

and Chinese Premier Wen Jiabao

have held face-to-face talks in London. The discussions are

part of a three day visit to

Britain by premier Wen during

which he talked up the economic opportunities between the two countries. But the question of

chis's human rights record

remains an issue. One of the

world's most powerful men had

good reason to smile. Wen

Jiabao was about to launch the

latest MG car, an iconic

British brand now Chinese

owned. The car's designed and

assembled at this plant near Birmingham using Chinese

components, all part of growing

Chinese investments jofrs cease

and with $3 trillion in

reserves a nation very much in the driving seat. conscious of massive trade

imbalances with countries like

Britain. At home, we're going

to further stimulate domestic

demand and we're going to reduce our foreign trade surplus and our repliance on

exports. That combined with promises to open Chinese markets for British business

has been welcomed. So too have has been

assurances China will support

Europe, the euro and more specifically, Greece facing

this for Hungary and we'll do uncertain times. We have done

the same thing for other

European countries. So as we

often say, a friend in need is

a friend indeed. Exactly what

that means for a country like

Greece is unclear, but with the

example the premier used

Hungary China has agreed to buy

government debt immediately settled a declining

Hungarian currency. As

expected, the meeting between

the two leaders ended with

pledges of enhanced economic ties and people-to-people contacts. people-to-people contacts. The

issue of China's human rights

record is not a point of

agreement. Our human agreement. Our human rights,

China and the UK should respect

treat each other as equals, each other, respect the facts,

engage in more cooperation than

finger pointing and resolve properly our differences through dialogue. Mr Cameron, are in Britain's eagerness to make

a trading partner of China and

move closer to it, you end up

propping up a regime which is

fundamental ly inamicable to what

what you believe in? I would

say that there's no trade-off

in our else relationship. It's not about either discussing not

trade or discussing human

rights. Britain and China have

such a strong and developed

relationship that we have a dialogue dialogue that covers all of

these issues and nothing is off

limits in the discussions that

we have. Diplomatic niceties are not required here. The

human rights demonstrators are

delivering their very direct

message wherever they can. If

there is an overarching message it's the reminder enormous economic power, with

the ability to save ailing

European economies. A raw

projection of power? Why not?

Every other country does it. Now Now to the weather.

That's all from us. If you

want to look back at tonight's

interview with Angus Houston or

review any of 'Lateline''s stories or transcripts you can visit our web site. You can

also follow us on Twitter and

Facebook. I will see you again

tomorrow. Goodnight. Closed Captions by CSI This Program Is Captioned Live.

Hello. Welcome to Lateline

Business. I'm Ticky Fullerton.

Today, we take a close look at

the industrial relations

landscape in Australia. Is the

talk of a new push for better wages

wages and better conditions for

workers really gaining

traction, and with a mining boom putting pressure on inflation,

we talk to the head of the

Construction Union, the CFMEU

and also the federal Industrial Relations

situation is that what we're seeing is

seeing is a moderate and

measured rebalance ing of the

system which certainly does not

go as far as many people in the union movement would

like. Despite some of the fear

mongering all the signs are

that the new Act is working

well and the new system is

delivering the sort of outcomes we'd like. Greece default instead of

limping on with bigger and bigger bail-outs? The average

investor is hoping that the politicians delay the

inevitable for inevitable for at least 6 or 12 months.

First tonight where the --

to the local markets. eight current and former

directors of the debt stricken

Centro Properties Group have

broken the law by approving

financial reports which fail

disclose billions of dollars of

short-term debt. The landmark

decision is set to have repercussions for company

directors around Australia and

is a big win for the corporate

regulator. Our reporter Rebecca

Hyam has at the ASIC

headquarters in Sydney as the

decision came down. What has the Federal Court found in this case? The judge has case? The judge has found that

the directors breached their

duties when they signed off on

the financial accounts back in

2007, which misstated Centro's

financial position by about $2