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Program is Captioned Live.

Tonight in another blow to

the Qantas superjumbo fleet air

safety investigators diedfy

defect in the A-380 engines. We

have described the potential

engine failure as potentially catastrophic. And what of the reputation of the enginemaker? Lessons have been

learnt by Rolls-Royce, of their

manufacturing process. Let's

have been modified accordingly. hope that the later engines

THEME MUSIC Good eveningment welcome to

Lateline. I'm Tony Jones. Yet's news nah the national figures show a sharp decline in

Australia's economic growth

were described as a bump in the

road by Wayne Swan but the signs look more ominous when

set against the big global

picture. At the beginning of last year the performer PM Paul Keating warned on this program that the global financial

crisis was a catastrophe way

worse than it appears. So what

does he think nearly two years

on when the US Treasury forced

to print money to stay afloat

and country like Ireland, Greece, Spain and Portugal

struggling to avoid economic

collapse? What the implications

of this for the apparent miracle economy in Australia?

Will we be saved by China and

what are the risk os that

relationship? Paul Keating will

join us shortly. First the

detapication of other headlines. The death by

detapication of the that worker

at Australia's largest Powellry

manufacturer deepens in investigations into safe work

practices. And to the WikiLeaks

continues, Russia is described

as a mafia State, the fate of

Julian Assange remains in the

balance. Well Qantas has

suffered a another setback its fleet of A-380 superjumbos.

With Australia's air safety

regulator today issuing a warning. The Australian

Transport Safety Bureau says

the defect in an oil pipe the defect in an oil pipe could

cause the engine to fail and

catch fire. That warning comes

just cays after the airline

declined the A-380's safe to fly. It's becoming a familiar sight at Sydney Airport. A

Qantas A-380 back in the hangar undergoing another Last month a Qantas A-380 fleet

was grounded after an engine

exploed over Indonesia. Just

five days ago two of those

aircraft were cleared to fly

again but now again but now a new problem has

been identified. A pipe which

pimps oil into the Rolls-Royce

thin engine has been found to be

thin and weakier on one side.

Snpts or at the Australian

Transport Safety Bureau say it

had the potential to crack and

cause an engine fire and have

ordered Qantas to check the

the partial for a fatigue A-380 engines. This leads

problem with the oil pipe, the

release of oil into the engine,

and that leads to the sorts of

consequences we saw with the

A-380 over Singapore A

preliminary report into the engine explosion over Indonesia

will be released which by the

safety bureau tomorrow. Safety

inspectors today said the faulty oil pipe has been

identified as the most likely

cause of the accident. And has

the potential to cause other major engine problems unless

it's fixed. We have described

the potential engine failure as

potentially catastrophic. Which is in terms of what happened

with the engine, that's when

bits of the engine fly out rather than being contained

within. The engine's oil pipe

was only identified as a safety

problem in the past 24 hours.

But two Qantas A-380s have been

in the air for days and the

aircraft have been used by the

airline for more than two

years. Last weekend, Qantas

chief Joyce voice Joyce was so

confident, problems with the

the A-380s has been fixed that when

the plane took to the skies, he

made sure that he was on

board. Today we are reintroducing those services, 100% comfortable with the operation of the

today the relationship between Qantas and Rolls-Royce is not so friendly. This afternoon,

Qantas flagged possible legal

action against unless the two

parties can reach an agreement

on compensation for the grounding of the A-380 fleet.

Pilots say Rolls-Royce's reputation has been

damaged. Lessons have been

learnt by Rolls-Royce,

manufacturing process, let's

hope that the latest engines

have been modified accordingly Aviation accordingly Aviation experts

say that aircraft engine markers buy pars from all over

the world and quality control

is becoming difficult to

maintain.. In the public's mind

it may ba black eye for Qantas

but the reality is this a black

eye for Rolls-Royce and for its

quality control systems. And

obviously they'll have a look

at it, we'll probably find that

they actually didn't

manufacture this particular

part, it came from some other supplier. About 30 of the international Airbus fleet have

within the engines which can be vulnerable to cracking. Aviation Aviation experts are confident

those engines can be identified

and replaced. Qantas stays new

nps will be carried out

tomorrow and international flights will not be

delayed. The Federal Government

suffered a setback in one of

its key education policies, its key education policies, the

reworked My School website was

due to go live tomorrow but

it's been put off until delayed because of problems

with the accuracy of fups

Government can't say when it financial data and the

will be fixed. Just a

ago the PM stood by her

Minister's side to preview the

next phase of the My School

website. My School 2.0 will

give parents even more

information. Today Julia

Gillard toured a health centre

in Queensland leaving Peter

Garrett to deliver the news that the launch date has been delayed. The My School website will go

up in 2011. On the eve of the

new website's release, the Minister's revealed a glitch. Financial information for some Financial information for

independent schools was wrong

and an accountling firm says

the methodology to calculate

the data is flawed. I want to

be absolutely sure that all the

data on My School website is

thorough and accurate. So

there'll be a further round of

consultation and the Government

can't say when the new website

will go live. The time is

taken that's needed to check this

this data. We want the My School website to be School website to be right. I give the Government give the Government credtor

admitting when they've stuffed

something up But the Opposition

says the decision should have

been made week ago. Thank

goodness they've done it now before My Schools went live

tomorrow with false information

that would have smashed the reputations of many

non-Government schools. Independent schools

are relieved. It shows that he's listening to he's listening to the sector. For

the problems are thought to be significant. It appears that there are some inaccuracies,

nom anomalies that are not

small but do actually creep

into the00 of thousands and the

millions of dollars millions of dollars and therefore with that inaccuracy

it's fairly misleading. The

education union agrees the

picture is inaccurate but for a

different reason. If private

schools are allowed not to

display their total resources,

not to display the millions in

have a distorted picture. The

dely is a setback for the Government in a project that

has been promoted as a key

education success story. Just as Julia Gillard declared

as a year of delivery and

decisions, she has one more

item on her list. With

parliament over for the year,

Julia Gillard is out in the

electorate. In outer Brisbane

she hosted her first Community

Cabinet meeting as PM. We're here to answer your questions. Among the issue, immigration, broadband and

school bullying. But one voter

was more interested in knowing

if the PM had inside knowledge

on Australia's bid for the

World Cup? I wish I did,

because I'd have a less

interrupted night's sleep. Ms Gillard says she'll stay Gillard says she'll stay up

late to hear the result.

To tonight's guest, the

former PM Paul Keating is here in our Sydney for being here. Thank you

Tony Early in 2009 as I said you warned the global financial

crisis was a catastrophe way

worse than it appears. Is that assessment been borne out? I

think so. In early 09 it wasn't

apparent that it was as large

as it was and would linger as

long. Of course it is large and

it is lingering. We're getting

these second round effects now

in Europe and yet we still in Europe and yet we still have

the big impact in the United

States, you know, output is down, demand Government stimulus is starting

to be wound back, the private

demand is not picked up, 10% of

people are out of work, you

know, it's pretty bad. You also

warned that if the crisis went

on for a few more years there

was a serious risk of default

by the US Treasury. Is it still

- is that risk still exist

because you the US Treasurer

seems to be printing money to

stave off that problem? I think

at that time two years ago I

was talking about the prospective

had not been focussed upon them

then. They are well focussed

upon now and of course if

American - if the American debt budget debt trajectory is

unattended to, of course it would

would be unfundable in the long

run. I think they will - the

Americans will attend to it but in the meantime, you know,

dealing with the underlying

influences, where they revenue, where they go on spending because when you've

got 10% out of work, unemployment benefits are up,

the tax receipts are down, the deficit widens, deficit widens, so the big

issue for the United States is growth. Getting back to growth. We've already had near

defaults in Ireland and Greece,

only staved off by giant rescue

packages from the IMF and the

EU Spain and Portugal remain in

serious trouble. Fracture lines

are appearing in Europe between

those countries that are

heading towards disaster. And

the Euro is in serious trouble.

How do you see the coming

year? This is a big problem. In

a single currency, I mean, the

game in Europe in the old days

was you had the Deutsch mark

and the koumpbs Europe

appreciate and depressurating

against it as their economic

conditions dictating. In a one size fitting all monetary regime with a single currency, those

those competitive depressurations are available to countries. So what they're getting there they're

now getting credit shocks, it's

a bit like the Australian economy before the float of the

exchange rate here. When the

exchange rate was rigid and you

had an external shock the shock

went through interest rates and

through credit. You member

remember the phrase the period of Australian history called

the credit squeeze. The credit

squaez came because of the incapacity of the exchange rate

to adjust. This is what these smaller peripheral countries now have in Europe. Spain,

Portugal, Ireland. And so,

what's happened they say, "Well how do we improve our competitiveness?" If they lower

prices including property

prices, this makes the cred

crunch worse. The banks have

got less value on their books,

asset prices are falling, yet

they have to fall to be

competitive. You see what I

mean? They've got this terrible

bind. Can the European Union,

can the union carry on? I've always tended but I'm not having doubts that

it might. That is, - and we've

had the bare transfer of bank

debt to public debt.

Classically in Ireland. I know

the journalist from the

financial times say the other

days, in the case of the banks

in Ireland, they are not too

big to fail but they're too big

to save. Because essentially,

the presumption is bank debt is public

country and a whole community

are going impoverished

essentially by the transfer of

bank debt into public debt. And so, the question so, the question is - what do you you save first? Will you

save the State? Ireland's probably shouldn't - definitely

supt have taken on the bank debt. In other words they

should be letting bondholders

take the hair cut, there's got

to be losses, without bringing

sovereign risk into question.

So the sovereign risk of

Ireland, the sovereign capacity

because it's picked up the bank

debt so where do they go? Well,

they may have to there've

union. Which of course their exchange rates will drop, an

increase in interest rates, all

this means it's going to be

pretty ordinary in Europe for

unite a while yet the German economy has been going strongly. It's been selling

things to the rest of Europe

but not... The big question

will be where they commit themselves European Union ex-Peter or whether at some point they

start to get dragged down by it? Normally f you had as you

do in Australia, a single currency, which affects

Queensland, NSW, Victoria and Western Australia, we have

Hoare zonal fiscal transfers,

occur within this country but Hoare zoptal fiscal transfers

do not occur in Europe, in

other words the idea that

German and French taxpayers

bail out Irish and Portugese taxpayers is not part and

parcel of that and banks are

not regulated on a pan European

basis. You know the old saying

about banks? They grow abroad but die at home. They all die

at home. So, now the

presumption is on part of many

bankers that the debt is not -

the hit is not taken by the shareholders and the

bondholders by but by the

Budget and thrf the taxpayers. Let's move closer to

home and where do you see China and how reliant is the rest of the world on the Chinese

economy now, particularly

Australia and the United

States? Well, it's reliant a

lot. China is 6 trillion of GDP. 6,000 GDP. 6,000 billion. It's growing at 10% roughly. So

that's 600 billion of new

wealth. The United States is,

what, 16 trillion, growing at

2? That's 320 of new. China's

contribution of new wealth to

the world economy is twice that

of the United States. So that's how important it is. As a

result of these kind of

changes, are we seeing permanent shift in the balance of global

of global power? Well, we're

certainly seeing a permanent

shift in economic power. That

is, you know, someone said

recently before the industrial

revolution, the value of most

people's work across the world

was the same, therefore, the

economies which had the biggest

number of people, the biggest

populations would have had the

biggest GDP. This is why was the biggest economy in the

world before 1 #00. Very quickly in the industrial

reflution a small country like

Britain started to outproduce a

place like China. We now got a world equalisation of productivity. So that means

that the people again with the

biggest populations will have

the biggest economies, so China

and India will have in time the

largest two economies in the

overtaking the United States,

and then you'll have and then you'll have India as

well, so if we look at the

world economy in the next maybe

in 20 50, the first biggest economy will be the United

States, will be China, the

second will be the United

States, the third will be

India, the fourth, long way

down would probably be Japan,

then five, six and seven so the

answer is, yes, there's going

to be a huge shift in the

balance of world economic power and

and that of course normally

occasions a shift in extra teemic power. It has implications as well as

economic once. I know that

you're concerned about this and

what happens if China starts to

feel hemmed in feel hemmed in by strategic adver saries? You might

remember Tony, I put together

with Bill Clinton the APEC

leaders meeting in 199 #. That

was 18 years ago. Because I could

could see China coming in a

sense then and the key things

was to have a structure to

receive it

I thought it was important that

we do not do to China what

Russia, Britain and France did

to Germany at the end of the 19th century. Essentially they caveled business mark's

creation and that sort of view

of illegitimacy played its role in bringing on the First World

War and of course the second

world war so we had two world

wars over the status of

Germany. And I never believed

we should have a third world war over the status of

China. Is that a genuine

possibility and are you talking

about a kind over Chinese

version of living space or

Leibensraum as the Germans call it? I don't think it's likely to happen. Because China you

know, has joined the World

Trade Organisation, it's part

of the G-7, but China will need

some strategic space. Just like

all great rising powers are

always feared,

great powers demand some strategic space so the United

States made a huge mistake with

Russia at the end of the Cold

War. There's War. There's Gorbachev

magnaminously agreeing to a

United Germany in NATO. Six

years latter United States is

hostagy the Czech Republic and

Poland up to the Russian

border. President Obama is now

seeking to change that, to give

the Russians a better stake to

the game. What we do for the

Russians which I certainly

approve of we have to do for

the Chinese. That don't think is an expansionist

power, but it is a great power.

We've had this sort We've had this sort of unusual situation in the world for 60

years where the second economic

power in the world has been a strategic client of the first

economic power. This has never

happened in history. This is

Japan and the United States.

Well, the second economic Well, the second economic power in the world today, China, definitely not be a strategic

client of the first economic

power of the United States. So

we're going to have a change of

the world. We're going to go

back to the used to be. The world is

fundamentally an Arctic. It was

an Arctic, is an inarchaic. The

peace we've had for 6 5 years has been unusual. So we're

going to be in a more complex

trickier world but a better world Australia's always trying to find its

economic front we had the first

connections yesterday with the

national account figures that

Australia's growth is slowing.

What do you see the

implications of that being? That's the changeover as

the Treasurer I think has said,

as the stimulus has been withdrawn we're waiting for the

kickup, we're trying to get the

pick up to private demand and

investment without a loss of

output. It looks like in this

quarter we've had some loss of

output. This is the same

problem for

The United States fiscal

statement lus has been

withdrawn, and the great fear

there is that there won't be

enough private demander or investment investment without a further

loss of output. There's not

much output lost here because

we've got this enormous drive

out of Asia, picking up our net

exports. This is not the case with

with the United States. So for

them, the loss of output the

real. If the stimulus comes

back and they don't get the private investment and private

consumption, doesn't appear as in the measure they need it,

then we start to see an even

worse situation in the US so

we're just held a lite little

this qulaert, a little taste of

what they've got The Reserve

Bank Governor Glenn Stevens

gave a major speech on Monday

on the challenge of prosperity

so it is truly the other side

of the coin. Thanks to the mime

mining boom and record term of

trade we can expect 12 to 15% above the average GDP in

additional national income he's raced this question of what should we who do with that extra money, income? What do

you think? I think the Governor

said quite reasonably that we

should be saving some of it.

And I think that too. And there

are different ways you can save

it. I notice the Treasurer saying overnight that the Government's committed to

taking superannuation up to 12%. This would be perhaps the

best way we could save it, that

is, instead of waiting another

five or six years to get to

12%, we get there quickly, like I

the Government say they'll take

superannuation from 9% in 2013 in half percentage point steps

to 12% in 20 19but if we were,

say, taking 1% in wages each

year for three years, we're

taking 3% of wages out of cash

and into savings. In other

words, we'd be helping the

Reserve Bank deal with demand

without raising interest rates

so much if 3% was taken

cash and put into savings. This

is I think the best opportunity

we have of saving some of the

benefit out of the resources

boom. One of the

he raised, the strucial

adjustment issues, how best to to handle the regional

differences and one way that's

being done in a spoil sense by

the Labor Government is to

introduce a Super Profits Tax

on the mining boom. Do you agree first of all with the way that they're going about

that? I certainly do. Of

course, the price of iron ore was was $30 a tonne four years ago

ago. That's now $150 a tonne.

These assets are owned by the

people, there must be some further sharing of the economic

- the unseen rent which was unseen at the time these

investment s were made. A

reasonable sharing of some of

that rent. That's what - and

because we're going to see to

accommodate this boom an

enormous transfer of resources

from the eastern States to

Western Australia, and Western Australia, and to

Queensland, there needs to be

some if you like fiscal

equalisation coming's where for

the last 60 or 70 years has

gone west. Is that how you seen

see is mining tax fa you do is

it big enough because the it big enough because the one

that they finally settled onwise was a huge compromise

from the original tax put forward

forward by Ken Henry? I think

the original one - the great

problem about the original one

was that they were taxing the

earnings of were written down over the

years rather than have them at

their market value. That was a design issue. Once that design issue. Once that issue

changed I think the tax changed I think the tax became

far more agreeable. Reasonable,

therefore sustainable. So I think

think the mining tax is the right way to go. I think the Government's got the right

balance and it should go

through. If this is a secular

change in our terms of trade,

this is a point, Governor Glenn

Stevens made well the other

day, if

lasts for two years, but if

it's a sea change, then of

course we will have a big

supply response, the companies like BHP Billiton and

Rio will invest in it in a big

way. This will necessaritate

resources shifting from the

east to the west. This will put pressure on the traditional

industries, the service economy, tourism, import

replacement, so there needs to

be some fiscal benefit but the

lessing if you like the economy

and of course the mining text

is one of those benefits the

other benefit of course is a

higher exchange rate which means that people in the east

in the city like Sydney and

Melbourne are buying things

whether it's a flat screen the

TV, or it's computers or cars,

they're coming in much they're coming in much more

cheaply, in other words the

intft being provided to the

ordinary taxpayer receives a

benefit via the exchange rate by virtue of the mining boom One of the big issues

you've raised this with the

previous Labor Government is about narrative and whether a

Labor Government has actually a

narrative it can narrative it can sell to voters. George Megaloginus has written an essay and he's not

alone here in which he argues

that the era of real reform is

over. Hears that patience, the

required patience to do reform

is gone, been soaked bip the 24

hours media cycle, by polling

and particularly by focus group polling do you think he's

right? I think there's too much focus

that the era has gone. I don't think that's

think that's fair. I think

we've seen the PM as Education

Minister preside over a very

wig change in education. We're

seeing quite a lot of

structural change. And as far as the Government's concerned,

I think the PM's getting into

her stride now. I think the

Cabinet system is probably

working better. One of the important

bit ironic, it would work

better with a maurgt? I think

the way a Cabinet works is that

the value of the output should

be greater than the common

stock of the input, in other

words there's a flux in the

Cabinet room which makes for

better policy. The ministers

may arife with their

submissions, but because they

all understand the game, the

output - this was certainly

true in the 80s and 90s - the

output is Cabinet system is working

properly then I think the

Government is a position to

assemble changes and I think

Julia Gillard is now getting

that Cabinet system working is starting to assemble

changes. As she assembles the changes the narrative will

evolve, it will become

clearer. Do you record for

example, I'm sure the

Government would say they have

a narrative, the National

Broadband Network is one of the great structural changes, reform, that can be introduced to make the great changes to the Australian

agree with that? Yes, I do, but

there are also these big overlaying issues like climate

change, like water policy, this sort of thing. These are sort

of once in a century issues.

Hard to grapple with but I think the Government will

attend to these. They'll come

through them. So this is all

going to matter. Down the

bottom line Tony, we're going to have to turn around the decline in trend productivity.

I mean, the reason people had a

30% real increase in wages in

the last 20 years is because of

productivity. In the 90s, I had

productivity running at 3%. 2

percentage points of the three

went to labour, and one went to

profits. 15 years at 2% is 30% real so Australian working

people are walking around with real increases

their dollar is the same as an American dollar so in world

terms, the real wealth of

Australian working feel people has risen has risen enormously. Look at

United States, real wages have

not risen at all since 92 and

the US dollar has gone down so

an American worker's

international value if you like

has dropped marketedly where a

working Australian's wealth and

international value has risen

markedly? A final question because a lot of these

changeses will have to be managed with support of the Greens in the Senate A unique

position almost and there's a

kind of alliance a loose alliance alliance between the Labor

Party and the Greens moment.

See risks in that? I think the

big parties do the big changes.

The Labor Party should never

prl concede space to the grps.

Minor parties always through the proportional system climb

into the Senate and get bargaining position. But if you

look at the big economic change, the

change, the big environmental

change in this country, they

were delivered fundamentally by

the Labor Party. The Labor Party's got be Party's got be seen to be doing those things and getting back

to those things. The climate

change fiasco gave the Greens a

real opportunity, before that,

they were pushed out. People

like Al Gore a former US President occupying the space, it wasn't green groups, it was mainstream people. So I think as we move back to mainstream, and we will, then the realityive position of the

Greens will change. I wouldn't

be giving them any space unnecessarily. The two party system matters to this country

and fracturing it won't be a

good thing. Paul Keating,

always fascinating to talk to

you, out of time far too soon

of course. We thank you for

coming in to talk to us about

the coming year and beyond..

Thank you for the opportunity,


Already under investigation

by the fair work Ombudsman

Australia's largest poultry

manufacturer, Baiada, has now been cited by work safe

Victoria over the death contract worker at one of its

plants. In August this year, 34-year-old Sarel Singh died

instantly when a fast moving

machine that he was cleaning decapitated him. A preliminary

report on the workplace death

obtained by Lateline has found

that Baiada breached

occupational health and safety

laws by not controlling the

ago Lateline revealed how Baiada poultry was under investigation over claims of

unlawful and unethical

treatment of its majority migrant workforce. A poultry

production line like this

operating at the fastest

possible speed killed Sarel

Singh. Hosing down the line at

the Baiada poultry processing

plant, a chain caught his neck

and severed his head. It's absolutely civilised society that we have

now, the fact that these things

still occur, is not - just not

acceptable. Four years ago,

Sarel Singh risked everything to

to find his fortune in

Australia. He took out a big

bank loan in his home state of


After graduating he worked as

a taxi driver before getting married. Sarel married. Sarel Singh ten joined the Ecowize company which has a

contract to clean the production areas of Baiada's

poultry processing plant in

Melbourne's west.

By the midle of this year,

Sarel Singh was ready to give

up and go back to India. But on

Thursday 12 August he was

killed at work. The 34-year-old

had actually finished his four

hour shift when he was told to

go back and reclean the pack

line area. The line he went to

was not a line that he normally

cleaned. He did not have his

full protection gear on, in

terms of glasses helmets. According to the

national union of workers, as he was stand on a ladder hosing

down the line, Sing Singh's

jacket was hooked, he was swept into the next machine and decapitated. The up union says the chain line should be

stopped while it's cleaned. The

night on which Mr Singh was

killed, the chain was running

at absolute capacity. 180 birds per minute. Work safe Victoria was soon at

at the scene of Sarel Singh's

death. Its report obtained by

Lateline found that the ro

duction line posed an injury

risk. It also confirmed the

line was orping at the top

speed of 183 birds per minute.

And that by not adequately controlling the risks

associated with this plant, bide contravention of - Baiada poultry was issued

with a prohibition notice

informing the xan it must

assess and control the risk to workers. Work safe Victoria

inspectors returned the next day. And found the risk

assessment prepared by Baiada

was inadequate. After assuring

work safe there would be

changing to the production line's power system, the plant was allowed to resume

operations. Work safe Victoria

has told Lateline the entire

meat and poultry industry is

now under review. It says when it doms workplace safety,

employers must do more than the

bare minimum and has reminded

bosses they have a

responsibility to all employees

whether they're on staff or on

contract. Lateline has sought

comment from both Baiada and

Ecowize about Sarel Singh's death.

death. Both declined an on camera submitted a series of questions

to Baiada about the death and work

work safety conditions at its plants but there's been no

reply. The national union of

workers has more general concerns about the treatment of

workers at Baiada, especially

contract workers. Baiada is a major poultry processing

company. We think that in large

part Baiada tend to engage in a

way that moves risk from them

to people who - where risk

should not reside the nerp of

tempt relationship. We think

that needs to change A separate investigation by the fair work

Ombudsman into rates of pay and

working conditions is still under way after snap under way after snap npgs at Baiada plants around the

nation. Workers at Baiada's Adelaide plant had complained

about being bullied into

accepting below award wages and

long hours, often beyond

working or student visa

conditions. Sarel Singh's

family wants answers.

The family is also seeking

compensation. The latest

WikiLeaks cables depict Russia

as a mafia State where

corruption is rampant and criminals are protected by the

police. The kabls also contain

accusations that Russia's PM

Vladimir Putin has amassed a

fortune through illicit

proceeds and hides the wealth

overseas but so too does the

back lash against WikiLeaks and tonight's court has refused permission to WikiLeaks founder Julian

Assange to appeal against an

arrest order issued over alleged sexual crimes. What kind of Russia is Vladimir

Putin preside over? A Spanish

mafia busting judge quoted in a

US diplomatic cable points a

pick of astonishing corruption.

The judge claims that Russia

has become a virtual mafia State. So that one can't differentiate between the

activities of the Government and

and organised crime groups. And

the strategy is to use OC or

organised crime groups to do

whatever the Government of

Russia can't acceptably do as Government. The judge describes

as accurate the thesis of the

poisoned spy of links between

Russian intelligence and the

mafia. It's all slander said PM

Putin during a CNN Larry King

interview where he suggested

there was an anti-Russian conspiracy afoot? TRANSLATION: believe that somebody is

deceiving the election, they're

reputation being undermined to

use them for their own political purposes later political purposes later on. That's one of the important

possibles there and this is

opinion of the experts. The

WikiLeaks founder is coming

under increasing pressure.

Amazon has stopped hosting the

WikiLeaks website on its US

servers, a and reports say he

remains in the UK where police

are awaiting instructions

before arresting him of Swedish prosecutors

investigating his alleged rape

of a woman in August. Julian

has nothing to hide. His main

interest is to vindicate his name. Julian Assange scam time magazine from an

undisclosed lotion. He

dismissed Hillary Clinton's

claim that he's putting lives

at risk saying she should quit

over leaked cables showing US

diplomats spied on foreign diplomats at the United

Nations. At the State Department

they're calling Assange an an,

aist. He is calling for the

second tier step down at a time

where he is trying to evade an

act of warrant by Interpol. The

Secretary of State by contrast

is in Kazakhstan engaged

directly with global leaders

working to solve the world's

police are still trying to work

out if any Australian laws have

been broken by the Australian-born whistle

blower. I have been receiving

briefings and we have a process to go through, you

know, all of this information,

I mean, millions of pieces of

information and assess the

implications for us so we'll

work through that, and you know I absolutely condemn the

placement of this information

on the WikiLeaks website. on the WikiLeaks website. It's

a grossly irresponsible thing

to do and an illegal thing to

a special panel to assess the

damage and find new ways to

protect America's secrets. In a

few hours time Australia will find out whether it's been

chosen to host the 2022

football World Cup. The five bidding countries have all presented their final pitches

to fevera's executive committee. Australia's

presentation showed an animated kangaroo which steals the World

Cup. We want the World Cup to

come to Australia but not that way. After a number of high profile sports

men and women, the kangaroo is

forced to give it back by a mad

Max style Paul Hogan. Australia

is up against the United States, Qatar, South Korea and

Japan. The announcement is expected

expected at 2 o'clock in the

morning. A quick look at the

weather now -

That's all for us. If you'd like

interview or review any of our

stories or transcripts, visit

the website. Tomorrow is our

last show for 2010, and Leigh Sales will be in the chair.

She'll be joined by some member

of the Chaser. I'll see you again next

again next year. Good night.

Captions by CSI.? This Program is Captioned


Good evening, and Lateline Business, I'm Ticky

Fullerton. Tonight - World Cup

decider, will Australia's

captain of industry Frank Lowy

get us across the line? I have

never worked with a

who has been so enthusiastic

and so committed to the cause

of winning. A shock fall in

retail sales that doesn't bode

well for Christmas. The

surprise about these retail numbers is that the decline

occurred before the November

rate rise, and so the risk is

that you will get another

decline in retail November. And a look back at

the people and stories of 2010. I just wanted to be treated with respect. To the

markets, and a relievral yoin

solid economic data from the US and action from Europe.

In just a few hours time we'll find

biggest sporting event will

head to Australia's shores.

FIFA is getting ready to

announce the host for the 2018

and 2022 soccer World Cups with

Australia one of Australia one of the bidders

for 2022. It could be a

bonanza for the business

community. Soccer is the

global game and it's not just

sport, it's a huge business,

which is why the business

community will be watching

tonight's vote in Zurich as

closely as anyone. I think IBIS

World in the recent figures spoke about a $35-$36 billion

spending boost as a result of a successful World Cup bid and

that dwarfs what was probably a $10 billion boost from the

Sydney Olympics. On IBIS World figures, 75% of that spending

will be on infrastructure such

as stadia, hotels and transport