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This program is live captioned by Ericsson Access Services. The Defence Minister rejects claims Australia has been recruiting spies from the Indonesian military.

PNG police defend their treatment of two asylum seekers arrested on New Year's Eve. A driver killed by a semitrailer after being pulled over by police in Sydney's west. And dozens of horses starving in Victoria last year make a remarkable recovery. Hello. Briana Shepherd with ABC News Early Edition. The Federal Government is desperately trying to mend relations with Indonesia after the shock suspension with military operation with Australia. The Defence Minister expressed regret over the fallout, but that hasn't stopped the cancellation of some army training. Major military exercises skedz uled for next month are in doubt. From Parliament House, our political reporter Uma Patel joins us. Uma, was it just the posters displayed at the special air force base in Perth that upset Indonesia or are there other issues?Not at all, just the posters. We learned last November one of Indonesia's generals complained Indonesia was sending its military personnel over to Australia only to have Australia try and recruit them and turn them into agents for Australia. Now, the Defence Minister t Australian Defence Minister Marise Payne has said this is not true. Nonetheless the ramifications have been felt. That same general says he stopped sending Indonesian military personnel over for the training as a result. Lot yesterday we learned Indonesia stalled cooperation with Australia. That's drew to material, they say, on show in the Perth base here where Indonesians were training as well. It related to content to do with West Papua. That material has not been made public. West Papua is sensitive. The Minister Marise Payne has responded, saying there will be an investigation. You can understand why she wants to get that relationship back on track. Indonesia of course is very important to Australia. The defence cooperation is important, one of our closest neighbours. Economically speaking it has one of the largest GDPs in the region and Australia is keen to get it back on side. This is what Marise Payne said earlier.We have indicated our regret this occurred and the defence was taken -- offence was taking. That's appropriate no matter who it is. We should endeavour to ensure that the material we use is culturally appropriate. Ma, do we have any idea when full -- Uma, do we have any idea when full cooperation will resume?No timeline is set. It is probably dependent on two things we don't have a timeline for. One is this investigation, and the other is, well, when Indonesia decides to forgive us. The minister said that Angus Campbell is interviewing people on the subject, looking at the defence material. She has not said when that investigation will conclude but says it is imminent. She says once that investigation concludes, step also be taken. It's unclear what steps are on the table and what Indonesia would expect from Australia. This comes before Australia and Indonesia were expected to take part in joint military exercises. As far as we can tell, it's not clear whether that will continue or indeed when Indonesia and Australia will be back on track in their relationship. Thank you. Police in Papua New Guinea have defended their treatment of two asylum seekers injured in an arrest of on New Year's a eve. They say they are terrified of staying on Manus. As PNG correspondent Eric Tlozek reports, they're due to face court on charges of being drunk and disorderly. The bruising is plain to see. The Iranian asylum seekers say their injuries are the result of a severe beating by Papua New Guinea police.TRANSLATION: I tried to cover my face to protect it and my eyes and nose, but they pulled my hands open so they could hit me in the face.TRANSLATION: When he punched me in the face, I felt a bad dislocation in my nose. It was very painful. I became dizzy and I put my head down. I looked down and my pants were filled with blood. Mehdi and Mohammad were hurt while being arrested on New Year's Eve. Police say they were intoxicated and abusive. They've been charged with being drunk and disorderly and resisting arrest.The two known refugees from Iran, were drunk and walking along the main road, causing public dissent to the public and the passing motorists.The Manus Island Police Commander say police used reasonable force to make the arrest. They were so violent at the time, that the police had to use reasonable force to get them on to the police vehicle and bring them to the police station. Police say they're dealing with an increasing number of incy dints now that asylum seekers and refugees are free to move around the island. This case comes a week after the death of a young Sudanese refugee from the Manus detention centre, which added to existing fears about the men's safety and their access to medical care. Some refugees have been told they will have the chance to be resettled in the United States, but that process won't start until next month. These two asylum seekers are unlikely to go to the US because their refugee claims have been rejected. Instead they're headed to court to plead not guilty and strongly deny police allegations they were drunk and violent. A driver has been killed by a semitrailer after being pulled over by police in Sydney's west. He was trying to secure the load on his truck when he was hit just t after 10 o'clock this morning. Paramedics desperately tried to save the man but he died at the scene. The driver of the semitrailer has been taken to hospital for mandatory blood and urine tests. An investigation is underway into the death of a teenage boy who fell 12m from a construction site in Central Perth. Courtney Bembridge is at the scene. At this stage we know that the 17-year-old boy fell to his death at a construction site in Perth's central business district this morning. It is understood he was on night shift and injured towards the end of his shift. Shift sources have told the ABC he fell 10-12m and had been installing a glass Court of Appealing in the atrium of the old post office building behind me. That is slated to become a clothing store for international retailer H&M. The company extended its sincere condolences to the family. His family has been notified of the death and WA Police are continuing to investigation what went wrong. The union representing construction workers says it's a tragic start to 2016 and follows a spate of workplace deaths in WA in 2016. Worksafe will continue to investigate the incident and they will be on site for the rest of the day. There's officers from the coronial unit investigating and WA Police. It's unclear if we will know more. It's understood a local firm employed the 17-year-old but it is unclear if he was an apprentice or under what circumstances he was injured. It's hoped that they will be able to find out more and what went wrong as the day progresses. There are a number of agencies working on this. A man has been charged after setting fire to 40 pokie machines at a hotel south of Brisbane. The 21-year-old is accused of dousing them in petrol before setting them alight. Josh Bavas has more from the Royal Hotel in Beenleigh. Police arrested a 25-year-old local man after investigating the incident that happened at the Royal Hotel in Beenleigh last night. Now, police will allege he was spending time at the hotel before he lecht and then returned at aboutle.30. They say that is -- at about 8.30. They say that is when pet tlol was poured on top of pokies. Three of them were destroyed and dozens damaged. The man has faced court and is being remanded in custody. The court heard he had been making threats earlier in the week. The clean-up continues here today. Management of the hotel said that they did work to put out the fire as soon as they saw it happening and then they began the clean-up late into the night. They hope that the pokie room will be up and running by this afternoon. A 34-year-old is being treated for serious injuries after falling down a cliff near the Sydney Harbour Bridge. NSW Police are looking at whether alcohol was a factor. Our reporter mill mill mill is at Kirribilli. -- Jade Macmillan is at Kirribilli. Police were called here on Sydney's North Shore at 1.30am after receiving reports a man fell down a rock face. You can see it appears as though he's tum bldz down from the look-out above me. Police say he became wedged between the rockface and this walkway. Neighbours we spoke to this morning say that they were woken up by one of the man's friends screaming for help. I remember hearing it once in my sleep. I woke up and came out and yeah, it seemed like he'd been going around for a little while trying to find someone to help.Paramedics treated the man here before taking him to Royal North Shore Hospital, where he is in a serious condition with suspected head and internal injuries. Police are investigating whether alcohol may have been a factor and they were down here earlier taking photos of where the accident happened and also collecting empty alcohol bottles that had been left behind. One of the other neighbours we spoke to said that she asked a group of men to be quiet shortly before it happened, because they were making too much noise.Laughing, yelling at one another, because there was a group here on the seat. And then another group up there, you see. I thought, 1am in the rn moing, you don't do this kind of thing.Police have asked anyone who may have witnessed what happened to contact them. Last April more than 40 horses were found dead or dying of starvation on a property north of Melbourne. Nine months later the surviving horses have made a remarkable recovery thanks to the efforts of an animal sanctuary in Country Victoria. If there are horses deserving an extra feed, it's these. Last year the thoroughbreds were found starving and close to death on a property north of Melbourne. More than 20 had already died. The rest ended up here at the Horse Shepherd Equine Sanctuary outside of Ballarat.They were so thin, no tails and energy, they walked weird because there was no muscle.Anne Young has been overseeing the rehabilitation. The last nine months have been spent feeding and training the horses to be safely passed on to new homes.At this stage it's about calming him down.That is where horse educator Chris Giles comes in. He's starting to listen to me and not worry about the saddle.We've noticed their nice temperaments. I think that's because they had intensive handing. Some had to go to the vet for some time. Hello little man. What are you doing? You're with your dad.This horse, names Lenny, has never been ridden before. There are nervous moments as Giles finally climbs aboard. We believe that a broken-in horse and well trained horse is a safe horse in terms of the horse's future. Good boy.While Lenny takes his first tentative steps Nicky is up to a gentle gallop. Most of the 22 horses that arrived last year have found new homes. When you see them look like this, it's just, it's like magic, that you can turn something around. And help them back on their feet. Thousands of vintage classic and modern cars are rolling into Canberra for the 30th Annual Summermats. A record number arrived, including some from overseas with organisers expecting their biggest event. Adrienne Francis hitched a ride in one of the classic wagons. Thousands of Canberra residents and car-lovers from across Australia and overseas are lining the main avenue into Canberra to watch the city cruise, which signals the start of Summermats, a 4-day festival held every year here and now in its 30th year. These 300 cars taking part in the city cruise can only travel at a top speed of 30km. Among the cars is this beautiful Fairmont driven by Hawkesbury driver Heather Sherlock. Her 1972 XA Fairmont is only a handful driven by ladies. The Fairmont is among 2,400 cars taking part in the 4-day festival with more than 100,000 expected to attend the festival which could bring in more than $20 million to the ACT economy over the next four days.

US President Barack Obama and Vice President-Elect Mike Pence have held dualing visits to Congress as the outgoing President fights to preserve his legacy. Republicans long plotted to repeal Obamacare arguing it stifles consumer choice. But even President-Elect Donald Trump has warned his party to exercise care before scrapping it altogether. Republicans are wasting no time dismantle Barack Obama's legacy. 16 days before the new President takes office, they've already introduced a bill to repeal the outgoing President's health care reforms. The Senate is poised to pass a repeal resolution that will set the stage for a true legislative relief from Obamacare.Republican leaders say the measures have failed to deliver.This is about people paying higher premiums every year and feeling powerless to stop it. About families playing the debts that are so high it doesn't feel you have health insurance in the first place. The Affordable Care Act is Barack Obama's signature accomplishment domestically, extending health cover to tens of millions of Americans. Now in his administration's dying days, Democrats are fighting to preserve his legacy. The Republican plan to cut health care wouldn't make America great again, it would make America sick again. You don't destroy a house without having another house in which people to live. You don't throw 30 million people off of health care without having a plan to provide health care to those people. Donald Trump has thrown in his two cents' worth on Twitter, tweeting:

The President-Elect m pro-Issed to preserve some elements of Obamacare despite promising to repeal it entirely during his campaign. Israel's Prime Minister, Benjamin Netanyahu, has backed calls to pardon a soldier convicted of the manslaughter of a wounded Palestinian. The Israeli army sergeant fatally shot the 21-year-old Palestinian man in the head while he lay injured and unarmed on a road. The sergeant now faces a 20-year sentence after a military court dismissed the defence case at the wounded -- that the wounded man posed a danger. The tribunal said he acted out of revenge. The Palestinian had been involved in a knife attack on Israeli soldiers in Hebron. Five-and-a-half-years after the nuclear disaster in Fukushima, Japan is still grappling with the question of whether to restart its fleet of idle nuclear reactors to meet its future injury needs. This year up to 6 more plants were due to open, but there are doubts about whether they will be turned back on. Japan has invested a lot of money in nuclear generation, dating back as far as the 60s. By 011 a third of Japan's energy needs were being met by its fleet of 54 nuclear reactors scattered arpdz the country. When disaster struck at Fukushima, the government ordered all nuclear plantzs to shut down for a safety review. Now four nuclear reactors have restarted. 11 are being decommissioned, 22 are still under a safety review, while the fate of another 20 is yet to be decided. There is a plan to start five or 6 more reactors in 2017, but Prime Minister Abe and the government in the utility industry experienced a lot of difficulties this year. There was public opposition to restarting the reactors. That public opposition was amplified when a major earthquake hit that same region only a few months after the power plant restarted.I think the Japanese Government will be forced to change its energy policy. The government has said lit nl recent months about its energy policy. Prime Minister Abe hopes 20% of Japan's future energy need also be met by nuclear power. That target is looking increasingly hard to achieve while the nuclear authority gave the go ahead for some reactors. Local people and politicians are raising their protest. Tourists from around the world are starting to descend on the Chinese city for it snow festival. The official opening is today. Around 15 million are expected to attend the event over the next two months to view the sculptures, some of which are 45m high. Visitors the the festival will have to rug up with temperatures in the city often falling below 25 degrees Celsius.

In the local market, shares have finished the session modestly higher. Blue-chips posted gains.

Sglu now for a closer look at the day in finance, we're joined by David Taylor. Wall Street is just inches from a significant trading level? It is, a big round number, 20,000, but we're close to it. It came from the Dow Jones Industrial Average, a weighted Median of the stocks that make up the average, it's like our ASX 200 A pool of stocks, the higher it goes the, the more valuable the stock market. Traders are closes but the fear is if it goes above 20,000 traders will get jitters and the bears will take over and there will be a big route of selling on the market. So it's a nervous level to get to as well. Why is this happening? President-Elect Donald Trump has promised to cut taxes considerably and of course big infrastructure plans as well. The share market doesn't look backward, but forwards. The stock market is saying these things happen if these policies come to fruition and it will be great for stocks. Let's see what happens if it hits the 20,000 level.Good news nor the economy to start the year?Yes, finally it is a good start to the year in terms of the economy. We've been trying to transition the economy from being led by the mining sector to a more broader economic picture. And a lot of the Australian economy is made up of the services sector - bar tending to financial planners and things like that, restaurateurs and that stuff, and the sector of services expanded by 57.7 last month. That is a good thing. It's essentially driven by I guess low interest rates. If that can keep going, that will help the economy to stay afloat which is what we need right now. Thank you. Pakistan is making slow progress with the bat on day 3 of the third cricket test in Sydney. Play didn't get underway until after lunch.

The Sydney Cricket Ground and its surrounds turned bright pink on day 3 for the McGrath Foundation.This is a time to make that commitment, show that love and support these wonderful breast care nurses.A day staged in honour of the late wife of former Australian celebingor Glen McGrath, whose battle with cancer inspired a nation. It was a day when only the weather was dull.Want to see players. A shame it's raining. Day 3 didn't start until after lunch. Pakistan's veterans picked up with they left off.There's runs from the first ball. Fast bowler Josh Hazlewood took advantage of the overcast conditions. HaveEd good.The Australian attack had the tourists boxed in. It almost paid dividends when Ali spooned the ball towards Hilton Cartwright.Will they have a referral? Just short. Having added 11 to his overnight score, Khan called for running repairs.Mup one of his favourites. We've ban waiting for play and they bring out a bandaid.The introduction of Lyon led to a midwicket mix-up. Azhar was caught in two minds. With two spinners operating, the captain showed little shens. Things look ominous for the tourists. In the Big Bash League, the Sydney Thunder pulled off a season-saving performance with a win against the Melbourne Stars. England T-20 captain Eoin Morgan carried the narrow win with a last ball 6 with an unbeaten 71 off 50. You beauty! It was a dramatic turn-around for the title defenders who entered bruised and batters, winless so far this season. All rounder Andre Russell was taken off the ground in a MediCab with a hamstring injury nine overs into the innings. Despite the win, the Thunder are at the bottom of the ladder. Australian tennis player Sam Groth is out of the Brisbane International, losing to the world number 8 in straight sets. There was a major upset with second seed Sivilkova also bowing out. After slipping out of the top 100 last year, Groth started out on the right notes. Mistakes began to creep into his game. The team took the first set in the tie breaker. Groth faulted at crucial stages in the second set. As the world number 8 went on to win in straight sets. Almost the perfect game from him. Today delivered the biggest shock exist so far. She came up with big stars. The French player defeated the world number five in straight sets to progress to the semifinals. A big upset. The number two is gone. Last night Queenslander Ash Barty faced the best player in the world. 12 months ago she was playing T-20 cricket.
(Goodness me. (Perfection early on from Barty. Mistakes hurt Barty and Kerber took the first 6-3. Barty refocussed for an early break in the second. The 20-year-old did not stop, winning the set 6-2. However, Kerber showed her class in the third, to take a 3-0 lead early as Barty's 38 unforced errors proved costly, despite recording nine more winners than her rival. In the Hopman Cup, the 19-year-old Zverev took on his idol Roger Federer. He pushed the German to three tie breakers, but Zverev's serve proved the difference winning a hard-fought match. And now for a look at the national weather with Graham Creed. And now for a look at the national
weather with Graham Creed. We got a weakening trough through the south-east. We're looking at mostly dry conditions but hot air beginning to move to the south Eastern States. It will continue to cool through WA although heavy rain across the north in association with tropical lows and the monsoon trough.

That's all for this bulletin.

. TONY ROBINSON: This must be
the most iconic view in the whole of Australia. The iconic Opera House,
the iconic Harbour Bridge, the iconic harbour itself. Enough of all the iconics! Come down here a minute. We've all seen this view
about a million times before. We don't want to keep staring at it
like a bunch of lunatics. I want to take you on a walk
somewhere slightly different.