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(generated from captions) imagination. That's what's

clever about it. I love the

fact that this started as a

$4.2 million project. Scott

went over to England, story

boarded in detail, came back,

showed them, doubled the budget

immediately. And, you know, it

shows with this film. It's

fantastic. Let's see more of

it. No, not in the corner. Have

one of these, just in case.

Cane. (Screams)

Are you OK? It's up there

somewhere. Oh my god. Cover it.

It's alive. That's a reflex

action. We've got to have a

look at this. Excuse me.

It looks dead enough. Good,

let's get rid of it. For god's

sake, this is the first time

we've encountered a species

like this. It has to go back,

all sorts of tests have to be

made. Ash r you kidding. This

thing bled acid, who knows what it's going to do when it's

dead. I think it's safe to

assume it's not Ao zombie. It

has to go back. Well I assume

it's your decision, Ash. No

doubt one of the great horror

films, Ridley Scott's 'Alien'.

Next week we'll be looking at

Jean-Luc Godard's 1960

breathless rr. And that's the

show for tonight good from us. Goodnight. Closed Captions

by CSI Live. Tonight - out and

about - Julia Gillard plays

tourist in Beijing, before top

level talks with President Hu Jintao.

Lateline, I'm Ali Moore. For Good evening, welcome

more than 40 years, Syria has

been ruled by the Assad family,

first the father and now the

sonment the father was brutal

in his suppression of dissent. Today the son, President Bashar

al-Assad, is following in his

footsteps, crushing the protest

movement in his country. The

US, Europe and Australia have condemned

condemned the violence, but to

what end. Tonight, as the bloody crackdown

bloody crackdown continues, we talk to a numerous interviews with the Syrian president, Professor

David Lesch who joins us David Lesch who joins us from Texas. On the up and up,

rising food and fuel

cause the biggest jump in

inflation since 2006. Hard

labour - how the resources boom

is fuelling demand for low paid

foreign workers. Online attack

- hackers gain access to the personal information of

millions of PlayStation users. The Prime Minister Julia develop closer defence ties

with China. It is a desire she

evening with China's President expressed during talks this

Hu Jintao. Before the meeting,

Ms Gillard said she would be

raising human rights concerns

and her wish for the two

countries to speed up

negotiations on a free trade correspondent Mark Simpkin agreement. Chief political

reports from by jang. She is

not your average tourist. not your average tourist. It's beautiful. Lovely to be out

and about having Prime Minister got a VIP look at the 600-year-old Forbidden

City. The regular tourists were forbidden. Thousands of them

were locked out while Julia Gillard wandered around. The

Prime Minister bumped into some Australians in an outer

courtyard. Hello, lovely to

meet you, having a good time?

What's been the best thing?

Meeting you. A little pleasure amid a lot of business. And

Prime business is the focus. The

of the trip was arguably the

most significant. Formal talks

with the most powerful man in

China. TRANSLATION: Since becoming Prime Minister, you have repeatedly expressed your

commitment to developing a pragmatic, friendly, mutually beneficial and cooperative relationship with China. I appreciate that commitment.

Julia Gillard pushed for closer

economic tie, including a free

trade agreement and closer defence links. include joint military

exercises and Chinese warships

visiting Australian ports. The Prime Minister doesn't believe

that will complicate the US

alliance. I think we all have

an interest in military links

and military transparency. I think Australia

think Australia has that

interest, I think the US has

that interest too. Military

cooperation wasn't the only

sensitive issue raised. Julia

Gillard expressed concern about China's human rights

do believe that China does

listen to and respond to

international opinion, and we

are one voice in expressing that international opinion. China knows something about

personals. I am told senior

leader were shocked when Kevin

Rudd was dumped and Julia

Gillard took over. That doesn't

mean they were unhappy about

it, and the new Prime Minister

has been given a lavish

reception. While the Prime Minister's whirlwind

international tour continues,

Tony Abbott is clocking up He was at Christmas Island frequent flyer points at home.

immigration detention centre yesterday, a South Australian steelworks this morning, and

this evening he is in Alice

Springs to look at

issues. It is all part of an

fires burning while the Prime energetic bid to keep the home

Minister struts the world

political correspondent Tom stage. From Canberra, our

Iggulden. A steel works in

Whyalla is the latest backdrop

for Tony Abbott to breathe more

life into his anti-carbon message. We blow in oxygen and

remove the carbon. He is missing no opportunity to talk

about the tax, including

today's release of worse than

expected inflation figures, one 1.6% for the March quarter,

edging up the annual rate to

3%, which could put pressure on

interest rates, even though the

government is arguing the price

hikes are largely the

Queensland's natural short-term result of

disastersment but Tony Abbott

is staying on impact has been fuel, one of

the other big impact has been power. Fuel

been impact ed by the floods

and cyclones, fuel and power

prices will be impacted by the government's carbon tax. It was left to the Treasurer to

impact on interest rates, play down the inflation results

pointing to a recent address by

the Reserve Bank Governor Glenn

Stevens. He made the point that when there spikes they tend to look

through temporary spikes and look at what

look at what the longer term

outlook is. Increases in food and fuel and fuel were the biggest contributors to the result, but

Wayne Swan is urging people to

look past volatility in

individual prices and focus on

an almost unchanged underlying

inflation result. Underlying inflation demonstrates that when you strip out the spike

caused by the disasters, it is

still around its lowest level in a decade. India economists

agree there will probably no

short-term rise in interest

rates but they are more

cautionary about the longer term. Higher interest rates are still very much on the

agenda. Today is the start of

the turn in Australian

inflation. The data drove the

Australian dollar past 108 US

cents on its way to a 29-year

high, protecting against even

higher fuel prices for now, but

the rivers of cash flooding

into the country from the mining boom part 2 are a much

bigger factor. It's a lot of

dollars, and we are still

choking on that. Good news

many Australians, but it will

show up as higher prices and

ultimately higher interest

rates, in part because we don't have the people power to meet

the demand being made of us.

Little wonder the government is

broadly hinting it will try to

encourage more people into the

workforce through changes to the welfare month's Budget. In Beijing tonight the Prime Minister

acknowledged there might need

to be an increase in immigration. As we heard,

while the mining boom while the mining boom is generating billions of dollars

of revenue, its demand for

Labor is creating a severe

skills shortage. With thousands

of extra workers needed,

temporary foreign workers are

falling through the cracks of the immigration laws. The Fair

Work Ombudsman is vetting claims of workers

being paid less than $3 an

hour. Unions suspect there are many more unreported cases,

specifically abuses of the short-term 456 business short-term 456 business visitor

visa. Out of work and in limbo. Dos Cordilla, Zenry

Peteros and Roel Flores are

waiting in the Philippines for

a Fair Work Ombudsman's ruling

on 18 months of work on Australia's north-west oil

rigs. It's a long time long hours job, 12 hours,

starting from 6:00am in the morning until 6:00 in the

evening, same job. They worked

12 hours a day, seven days a

week, as marine painters and

general hands around a rig

operated by the world's largest shipping company, Danish

international Maersk, for

Woodside Petroleum's $14

billion Pluto gas project. Next Next to fully paid Australian

workers, they were earning a

fifth of the minimum wage, less

than $3 an hour. We have

underpaid because our salaries

is only $30 per day, they said

the minimum wage offshore was

$400 plus allowance, they said

only $30 is for only one hour.

The men February by accident, after

spending most of their time in

the Maersk rig, the Nan Hai 6, they were sent to another

Maersk vessel, discoverer,

because of overcrowding. On the

new rig, the Australian workers

questioned the men about their

pay and the Fair Work Ombudsman was informed. We have been

investigating the matter and the investigation is at an

advanced stage. To say they were being ripped off is generous. It was almost slave wages wages in terms of the Australian oil and gas

industry. It's not like there's

not capacity to pay in and gas industry at the moment. The painters had come

to Australia on short stay 456

visas, which had been arranged

for them through the Australian

embassy in the Philippines by a

labour hire company called

Supply Oil Services Inc., or

SOS. Based in this Manila building. We don't know

anything about the visa in

Australia, all I know, if you

get a visa going to Australia,

when you step in Australia, if

the immigration has it, when

you go to Australia, that's

fine. But it wasn't fine. A

456 visa is not a work visa,

it's a temporary business

visitor visa, where there is no

obligation to the part of

employers to pay the same rate

as Australians doing the same job.

job. It's business people who intend to

come to Australia for a very

short visit, to undertake

business meetings and such

like. In some instances, policy

permits specialist workers in

highly skilled areas. The Filipino workers were

subcontracted to a Perth based

labour hire company called

SurveySpec. From there, the men

were engaged by the Danish firm Maersk drilling to work Pluto gas project for Woodside Petroleum. Woodside Petroleum

denies the men were involved in Woodside Petroleum operations.

Lateline has a copy of one of the men's contracts with SOS,

showing them working 84 hours a

week, earning $900 a month.

Over 18 months they worked for

35 days straight and then they

went back to the went back to the Philippines until another visa could be

applied for. Maersk rejects

any assertion that it remotely

rips off any Australian based

workers. But Lateline has not been

questions to Maersk's managing

director Martin Flojgaard, as

numerous requests for an

interview were declined.

Lateline also had questions for

the Manila agency SOS and the Perth based SurveySpec but they have not been available for

comment. Unions say many

workers coming in on 456 visa,

Lorner term 457 visas or on

working holiday programs are unaware of their rights and responsibilities. What is

going on is an emergence of trafficking in ultra cheap

labour which is not

exploiting those workers but is

causing a great risk to

Australian rates of pay and indeed Australian standards of living. The Australian Workers

Union says Dos Cordilla, Zenry

Peteros and Roel Flores and

another worker are collectively

owed $400,000 The Maersk had made an undertaking

to pay the Filipino men back in early

early March and says they are

still waiting to see the

money. It affected us because

I have a family to support and

I lose my job because of this

case, and just waiting for the

back pay to get our every day expenses. The Fair Work

Ombudsman is investigating

whether there has been breaches and whether legal action is

needed. It is a complex

matter. It does require us matter. It does require us to

consider whether or not the

vessel is actually within Australia's workplace relations

jurisdiction, and clearly that

is something we are testing.

Following a similar case in 2008, the 2008, the then Minister for Immigration, Chris Evans,

tightened the laws to ensure

foreign workers were paid

according to Australian wages

and conditions. We had a near identical example of this same

exploitation two to three years

ago. Immigration insiders say

incredible demand for entry to Australia, both on a temporary

and permanent basis, is strange

the integrity of the system. I

think the whole system is

totally and utterly overwhelm.

I would use the word in crisis. The Department of Immigration, I

I think, gets over 13,000 applications a day. Immigration Department says it

can't comment on cases under

official investigation, but it says

says all allegations of worker exploitation will be given close close attention and investigated. The department

also says the government is

currently reviewing the

sanctions regime for employers

who employ illegal workers,

with a view to strengthening

the penalties.

The ABC has been forced to

cancel The cancel The Chaser's royal wedding commentary, which was

to be broadcast on ABC2 on

Friday night, due to restrictions on the use of

footage of the wedding. A

senior media adviser to the

royal household told Lateline

conditions prohibit the use of

the vision for drama, comedy or

satirical purposes. Joining us

to explain how this happened is Chas Licciardello from The Chaser.. I would

how it happened. When did you

know you had a problem? We

knew we were in some strife with the

with the BBC but thought we had found a way around it. They

tapped down and we played

another card, and at lunchtime

today we played the last card

and it was the 2 of spades.

What were your cards? There

were other feeds than the BBC.

We went through every single

feed and every kind of

broadcast. You don't have to commentate over commentate over the wedding,

you can commentate before the wedding and then after the

wedding. We tried as many different options as we could, but today we had no footage

whatsoever and couldn't broadcast on Friday night

anything to do with the wedding, that's tough conditions. Do you think

something has changed? If you

look at the statement from

Clarence House, it looks like

someone stuffed up. The

statement said it is standard

practice to have clauses regarding religious

ab then "We have not imposed

new restrictions on the use of

the royal wedding footage and

have not singled out the

ABCment" someone perhaps should have known this all along. I

spent most of my law school

years playing ping-pong, so

imat not the person to talk to,

and the other feeds did not have the comedy restrictions,

and now they have. Is new contract the ABC had to sign? I don't know the details

of what the ABC had to do, I'm

not the ABC lawyer, but today

the ABC had to sign

that we would not be on air,

otherwise they would be in big

trouble with mum and dad at the BBC. How irreverent were you

going to be? We are talking

about the future head of state. There is no

misapprehension that we were

going to do four hours of princess

have been poor Tait, but we

would alienate our audience if

we were nasty for four hours.

We have been there before and

know what that's like and don't

want to do it again. We were

making fun of the media circus,

the whole system, the regal

system, we were making fun of everyone except equipment

themselves, because they seem like nice boring people.

way it reads, it seems no one

can use the wedding for any

purpose other than serious

reporting. It seems hard to

believe that no one around the

world will not use the footage

to make a bit of fun If I were

Dame Edna, I would be insulted that they are not funny. Will

we see anything about the wedding coming up on

Chaser? If they had pulled the

pin four days ago, we might

have done it. But Lateline

Comrie, maybe? We will think about

about that. Thanks, Chas.

The Libyan Government has

reportedly agreed to cooperate with the United Nations human rights team which has arrived in Libya to investigate allegations of abuse. says it will focus on all human rights breaches, including

those which the regime claims

were perpetrated by NATO forces

and rebel groups. The inquiry

comes as comes as international

attention shifts to the brutal crackdown against protesters in

Syria, with more calls for sanctions against President Bashar al-Assad's regime.

Middle East correspondent Anne

Barker reports. As the bombings continue, the allegations mount of human

rights abuse, against humanity. Libya's

deputy Foreign Minister has

accused rebels in Misrata of attacking Colonel Gaddafi's

army after it withdrew from the

city. The Libyan army stopped

its operation inside the centre

of mirt, inside the city

centre, and the rebels started

attacking the Libyan armoured

forces while they were trying

to take defensive positions

outside the city centre.

yesterday bombing the Misrata

port, killing at least three

people. Misrata has been under siege

siege by the Libyan army for

two months, leaving its people

without basic supplies,

including fuel, water or power. Human rights groups say more

than 1,000 people have been

killed in the conflict and many

more wounded. Now, a more wounded. Now, a UN team

is on its way to investigate

possible human rights

violations. The Libyan regime has lost both legitimacy and credibility,

credibility, particularly in

terms of protecting its people

and addressing the legitimate

aspirations for change. The investigators will examine

alleged abuses by the rebels or

even NATO forces, and the UN

Security Council has asked the

International Criminal Court to investigate Libya on possible

charges of war crimes. There

are growing calls too for

international action against Syria, over against pro-democracy

demonstrators. The southern

border town of Daraa remains

the flashpoint, with protesters

coming under attack for a third day straight. Human rights

activists claim more than 400 protesters have been killed by

security forces in the past

month. But western defence

leaders are dismissing the idea

of using military force against

Syria as they have with Libya.

There are limitations to what

we can do in a world which more than its historic amount

of instability. We will do what

we can to reinforce the values

that our countries share but we

can't do everything all the

time and we have to recognise

that there are practical limitations to what our

countries can do, no matter how

much we would like to do so

The UN Security Council is due

to meet in New York later today. To discuss the current

situation in Syria we are

joined by David Lesch,

Professor Of Middle East in San Antonio, Texas. He is

the author of a book about

President al-Assad and modern Syria. Welcome to Syria. Welcome to Lateline.

My pleasure. With all the

foreign media banned and so

little access to Syria, what is the latest information you have

about the protests and the

crackdown? Again, it's partly

the fault of the regime that

they are banning the media,

therefore we

little information. I think little information. I think the

regime is cracking down in a more intense fashion, especially with the military,

as a show of force to dissuade other groups in other towns

from rising up. It also wants

to show it is not weak, so if

it announces any more it announces any more reforms

in the near future, it is doing

so from a position of strength

rather than weakness. In

addition, they are showing most

of the Syrians that the army is

solidly behind the regime and cannot cannot be separated from the

regime, as happened in Egypt.

It is a dangerous critical

phase for the opposition and

the regime itself, because with

each death that occurs in Syria the opposition's position

hardens, they become more bold,

and their demandses allocate

from what had been reforms to now being the elimination of

the Assad regime, and that is

dangerous for the regime

because there is no compromise solution or solution, and it is dangerous

for the opposition as well,

because if the regime is being

put in the position of being

eliminated or survival, they

will do what is necessary to

survive. Given the force used,

will the crackdown stamp out

the protests or stop the

momentum? It can. The Syrian regime has the force to

brutally repress the opposition

in the near term as the regime will survive, and they know

that, especially because international community has

very little leverage over

Syria. It is a careful

calibration, how much force to

you use to suppress the

protesters without attracting

more international condemnation

and becoming a Libyan

situation. But in the long term

it will not help President

Bashar al-Assad because he has

lost a great deal of goodwill

he had in the country and

goodwill he was billing in the international community over

the last few years and in

addition has lost a great deal of

of legitimacy in the different from his father, and

many people, particularly the

the important silent majority

in Syria, realise he is perhaps

not different from his father

but is the typical brutal

Middle East dictator that has

become a characteristic in this part of the world. In addition, economically they

depend on foreign investment

and tourism more and more to

try to reach that 5% growth

level every year to provide enough jobs

in the country that has

affected other Arab countries and

and they won't get that if they become an become an international pariah

state isolated in the region.

You have met the president on a

number of occasions and when he

came to power in 2000 there was

a Damascus spring, that people thought he would be a

reformist. As an individual,

does he have the ability to

reform or is he captured

fundamentally want to see the

status quo? I think he has a

desire to reform, particularly

in the economic and business

realm. He has done a lot in the

country in terms of opening up

the country to foreign

investment, fiscal and monetary

reform the stock exchange and

private banks, but the

political reform has lagged far

behind. In that, his commitment

is somewhat speechous. This is

not to deny the difficulty of the reform happen incrementally, step by

stem. On one occasion, he bow

moaned that he had signed 4,000 decrease

decrease and only 10 had been implemented, because there implemented, because there is

an institutional a cultural inertia against change. Change

is difficult, even the smallest

of reforms, much less the larger reforms he has been

trying to implement and has

announced in the past few weeks, there are pockets of resistance, he has to negotiate, bargain manipulate. On the other hand,

he has had 10 years to surround

himself with loyalists. If he

can't line them up to implement the reforms he has announced,

either he is not as interested

as he says in the reforls or he

doesn't have enough power to get everybody lined up behind

him to implement the reforms. Is there any question that the

order for the crackdown are

coming from him, are the

government and will military

forces in lockstep? That's a difficult question. We don't

know for sure. I think at a

perm level he would rather this

not happen. He has expressed not happen. He has expressed on Syrian television that the

killings should stop, yet they

have continued on. That raises

the question of who really is

in control. Or has he been

persuaded by the generals, so

to speak, that a crackdown is

in fact necessary, that they

are in survival mode, and first

things first, before they implement reforms later on. Or

they are not even worrying

about the outcry of the international community because

they have to survive, first they have to survive, first and

foremost. Who are the demonstrators, the protesters?

As far as you can tell, is it a

broad-based opposition that

cuts across sectarian lines?

It's not a monligtic group.

There are different sets of objectives, different sets of

grievances, which is typical in many of protest movements we have seen

in the Middle East recently and

in the past. They tend to

coalesce around one idea, and

that is getting rid of the

regime and that's what's

happening now. It is a broad

base of groups that are big

stirred up by elements from the

outside, Syrian expatriats and exiles who are against the

Assad regime, and others,

possibly even the Islamic

radical groups. But the regime focussing

aspects tends to deny the

socio-economic and political

problems that are at the root

of the despair and the protests

to date. Again, to date. Again, the more and

more the regime cracks down, it

plays into the hands of the

opposition, and more and more

they will coalesce around they will coalesce around the

idea that the regime of President Bashar al-Assad has

to go. The question then is:

Are the protesters armed, do

they have the means to pursue

their case? What do you see as being the next step? It is

interesting because the

protesters have become more

bold. Much more so than in the

past when there have been some

disturbances in Syria over the

past 2020 or 30 years. They

have access to arms, there are

weapons de-Pos in Lebanon and

Iraq across porous borders and

the regime has announced it has

stopped a number of weapons crossing the protesters. There are elements

from the outside that will fund

and support as much as possible

various elements of the protest groups. I think the groups. I think the will is

there. They are call for an end

to the regime, call for a

dismantling of the security force system, the force system, the security state, and that's much beyond

what they have done in the

past. It seems that the wall of fear has been broken. Of

course, there is the precedent

of success in Egypt, appears to be the same

in Yemen and probably in Libya.

So if the new social media,

which is the weapon of mass destruction destruction for youth these days, the regimes in the Middle

East, the authoritarian regimes cannot control the stream cannot control the stream of information and this will keep

the protests alive and allow

them to become more bold. You

could see a period of prolonged

crackdowns spas moddic protests that will eventually weaken the

base of the regime, alienate

the middle class, the strong and important Sunni business

class in Syria from the regime

because of the economic

difficulties of a prolonged instability. You talked

earlier about the fact that the

international community had

little leverage. I guess Syria is

is a pivotal country in the Middle East, up against

Lebanon, Turkey, Iraq, Jordan

and Israel. What is the view those countries and how fearful

would they be of a breakdown of

centralised control in Syria?

That's what everyone is

fearing. I read fearing. I read an article

yesterday where a writer

compared Syria to some of the

failed financial institutions

in the United States in 2008,

that they were too big to fail.

Even though they were corrupt

and often-times criminal, their

collapse would cause even more

problems than not bailing them

out. It seems to be the case

here that many in the international the region itself fear the

collapse of central authority,

even under President Bashar

al-Assad in Syria, because it is ethnically and religiously

diverse, a la Lebanon and Iraq

and could devolve into

political chaos or instability

that could have serious

ramifications for the security

of Turkey, Lebanon, US troops

in Iraq, Israel and Jordan. Most of the international

community and the US in particular has taken a measured pro.. Their stance has grown a bit tougher, but they have been

compelled to do so because of the regime'sens the regime'sens Hansd

crackdown. We have very little

leverage, except if the EU

countries get on board with the

United States and enhance sanctions or participate in

economic sarptions, because 25%

of Syria's trade is with the EU

countries and that could have a

direct effect, not so much in

the near term but certainly in

the long term. Do you believe that

that certainly the EU and

America is most likely to go

that route, and they would

absolutely rule out doing anything along the lines of

what's happening in Libya? I

do not think they will rule it

out. Just to give that sense of unpredictability to the Syrian regime, that they can't get away with anything, I think

what the Libyan precedent said

is that if

continues to enhance its

crackdown to the level of what

Gaddafi did in Libya, maybe

there will be calls for

military intervention. If Europe and the United are speaking with one voice,

that makes that prospect more

likely rather than less likely.

In the past, Syria has been

able to exploit differences

between Europe and the United

States, particularly during the Bush administration. They

survived international pariah

status before, and survived

international pressure States and perhaps feel they

can survive again, but not if

the EU, the United States and Arab states - and League has grown closer to

condemning the Syrian condemning the Syrian regime

and condemning the crackdown.

If they all get on the same page, perhaps that will

encourage the Syrian regime to

back down and seriously negotiate with protesters, or

elements of the opposition and engage in real Lesch, thank you very much for

giving us your insights this

evening. My pleasure.,

An Adelaide PlayStation

user whose private details were

held by the Sony Corporation

has had $2,000 of unauthorised

charges run up on his credit

card in recent days. It could

be the first documented case of

fraud in the wake of theft by hackers of the of 77 million PlayStation users

worldwide. Sony has shut down

the network while it tries to

figure out how hackers were

able to steal the details able to steal the details of so many customers. When Adelaide

man Rory sprekly checked his

barpging details today he got a

shock. I logged into my bank

account to check everything was

okay and found out there was

just over $2,000 in charges which I didn't personally

of people around the world, Mr

Sprekly uses his credit card to

pay for online games using

PlayStation 3 Normally you sign in by going to the

PlayStation network, sign in

and you would be in. Instead,

we get this: Currently undergoing maintenance. . How

long has it been like this? Almost a week. Only today,

Sony posted a statement to

explain the mystery:

An An unauthorised intrusion is

cyber speak for hacking. Sony has no firm evidence that

credit card details were stolen

but the unauthorised charges of

Rory sprekly's credit card

happened only in the last few days. There were a number of

early transactions on the 23rd

of amounts under $1, which they

say is the usual test run that

fraudsters do, and then there

have been a number of

transactions of larger amounts, including domestic flights within Australia, bookings at

best westerns and what not. But

the banks led me to believe that they are under the

assumption this sort of fraud

is coming from the US. How big

a deal is this, in the

zeitgeist of the online world?

It's a big are annoyed they can't play games. The Privacy Commissioner has begun an investigation to

investigation to make sure Sony

did everything it could to keep

its customers safe. Cyber security

security experts want laws to

compel companies to tell customers sooner when things go

wrong A disclosure law that

would require a company to

inform customers within one or two days of the event

occurring, so the customers

take action to cancel credit cards or change passwords or

other private information and

to be aware their information

has been stolen. The advice to PlayStation account holders is,

don't cancel your credit card,

just keep a close eye on spending, but spending, but change your

passwords and use your names

more often to make sure you

don't end up in a situation like Rory sprekly. I like Rory sprekly. I have

never been a victim of credit

card fraud bhmplt. worrying coincidence. Now to

the weather: A few showers in

Sydney, Brisbane and Perth,

morning fog for Hobart,

cloudy in Canberra, mainly

sunny in Melbourne, Adelaide

and Darwin. That's all from

us. If you would like to look

back at the stories, visit our

website. See you again tomorrow. Goodnight. Closed

Captions by CSI.

To the markets, the All Ords

fell on thin trade, the ASX 200

closings down 40 points, in

Japan the Nikkei had a better

day, but the Hang Seng was

down. Is the inflation Jeannie

out of the bottle? That's the question being asked as prices

took off. index registered its biggest quarterly increase since 2006,

as rising food and petrol costs

added to other price pressures.

The Reserve Bank has signalled

it will it will ignore temporary price

hikes but the inflation numbers

suggest it captain be as

relaxed as first thought. Out

on the street they didn't need today's official numbers.

Everything has gone up - bread,

milk, all the essential, every

day living. It's always the working people who are punished. The heavy discounting in clothing shops,

where prices barely rose and the strong Australian dollar,

which makes imports cheaper,

didn't stop consumer prices

jumping 1.6% during the

jumping 1.6% during the March

quarter, the biggest quarterly

rise in almost five years.

Annual inflation is at a

two-year high, above 3%. The

impact of extreme weather at

home and upheaval in the Middle

East trumped the shopping bargains. Key contributors were a

were a big jump in flood

induced rise of fruit and vegetables prices plus we say increased petrol prices and

also some increase in the cost of financial services. Certainly Treasurer Wayne Swan blamed Mother Nature. Today's

figures show

spike in inflation, caused by

the summer floods and of course Cyclone Yasi. The Australian

Bureau of Statistics says that

some of this increase is

related to Yasi and the floods,

not all of it, some of it.

It's the rising costs in a

range of areas, not mentioned by the Treasurer, that ironically

lid on the economy and

inflation. Where we are seeing big increases are in the

services areas of health, education, utilities prices.

They are areas that are

probably less sensitive to interest rates. There is a

question about how much

monetary policy can do in the

very short term, in terms of

those prices and we need to

keep in mind that the

Australian dollar is very high,

it is potentially going to do

some work over the next six

months in keeping inflation in

check. The Reserve Bank needs to consider interest rates week, but nobody expects them

to go up then. The question is:

Do today's inflation numbers

bring forward what many see as an inevitable interest rate hike? We have been looking for

two rate hikes this year. Of

what we have seen today makes

me a little bit more

comfortable that that might

actually happen. I don't

think, though , there is

anything today that would

change the view of people about

the economy. Within the

numbers, the Reserve Bank's

inflation measure, underlying

inflation, is still within its

comfort zone, but it is picking up. Underlying inflation is

under control. Certainly

there's no doubt about that.

But for how long? In its latest economic assessment,

consultants Deloitte Access Economics saw Economics saw the mining boom as eventually delivering the

revenues to help the government

erase its Budget deficit. But it will also deliver its fair

share of problems. The biggest

single driver of this is steel,

the - still the impact that

economies like China are having on Australia. They are paying

us really big bucks. It doesn't just

through the economy, but it is

a lot of dollars and we a lot of dollars and we are

choking on on that. Good news for many Australians but it

will show up as higher prices

and ultimately higher interest rates, in part because we don't

have the people power to meet

the demands being made of us.

Many Australians are still

finding it hard to see how the

mining boom riches will find

their way into their pockets.

A new study of the mortgage

industry has added to the

increasingly gloomy sentiment

about the outlook for banks.

According to JP Morgan Fujitsu Consulting, growth in home lending will stay subdued

for the foreseeable future,

meaning banks will have meaning banks will have to become creative to maintain

their profit margins.

Australian bank profits are

heavily tied to mortgages.

Mortgage growth has averaged

more than 10% over the last

couple of decade, but if last

year's fall is a guide, those

days are over. We think growth

will be lower for longer, so

banks need to look at the

profitability of their existing

book. To do that, according to JP Morgan JP Morgan and Fujitsu Consulting, banks must learn

more about offer their products in a

different way. P Until now,

essentially most organisations

have been developing have been developing products, pushing them into the

marketplace and competing on

price. With topline price. With topline growth

coming away, people have to

realise not all customers are

equally valuable, therefore you

need to tailor and target your propositions more carefully.

It is called customer

segmentation, and JP Morgan's Scott Scott Manning believes the big

four banks are already down

that path as they try to

capture a bigger share of a

decreasing market. The

Commonwealth Bank is trying to capture more in the IT

platform, giving them a better

idea of the customer base, to

target specific offerings target specific offerings to

specific customers, so they

identified profitable customers. National Australia

Bank has undergone their next

generation platform, as well as

launch their online U bank

product, and we have recently

seen west park launch a house

of brands strategies. four banks did well out of the global financial crisis as

competitors fell by the

wayside. But those competitors

are regaining their strength,

such as mortgage brokers, who

according to Fujitsu have preglobal financial crisis share of the home loan market.

We are seeing a resurgence of

other lenders than the big

four, and they are heavy users

of brokers. Brokers volumes are

reasonable, and certainly as a

share of the total original

nation market, they are up to

41 or 42%, which is where they

have been, not for four or five

months, the share prices of the

big four banks have gone

backward, while the sharemarket

has edged forward. Investor

sentiment is not likely to be

helped when the report of the Senate inquiry into the banking

system is released next week.

That is tipped to recommend

help for second tier help for second tier players.

I think it all gets down to

having efficient funding,

because you can get distribution throw brokers but

you need to have a competitive

pricing on path. Building