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(generated from captions) people like Genet my inspirations have been the Italian filmmaker and people like Pier Paolo Pasolini, and writer and poet but the gauntlet of their writing the integrity and the way they lived their, of how they lived their politics... to live up to that, ..I, I fear that I won't be able yes. that I won't be able to honour that, I would hate to become a pet And I would hate, to the, to the bourgeois. to become a pet I mean, I just would hate to be domesticated - because, of any kind, that's what it means, obviously. Um, to be... And what I... English language novels You know, there's too, too many that are the work of pets. that I'm reading They're quite domesticated. Yeah.

won't you thank Christos Tsiolkas? Ladies and gentlemen, Thank you. (Cheers and applause) Please, won't you visit our website, extended version of this interview, where you will find, one, an Christos is going to give us, two, a book list that influential books and films which will list some of his, his most and, of course, that he would like to share in just a couple of weeks The Slap itself will launch on the ABC. for the next regular book club I hope you will be joining me on the first Tuesday of next month. very happy reading to you, Until then, and good night to you all. thank you to Christos (Cheers and applause) Cassie Britland Closed Captions by CSI - .

Tonight - women Tonight - women head for

the last frontier. The Cabinet,

with the full support of the service chiefs, formally

decided to remove

discrimination against women

from frontline combat

roles. But not everyone is

saluting. My fear is it's going

to be like the carbon tax the army - to be like the carbon tax for

absolutely thing to do, it will have

absolutely no impact on

anything and it will cost us an

awful lot. Live.

Good evening. Welcome to

take another five years, but by take Lateline. I'm Ali Moore T will

then all jobs within the

Australian Defence Force also

be open to women. All positions

will be determined on the basis

of physical capacity, not gender. The Chief of physical and psychological

of the Defence Force, David

Hurley, admits not everyone

will like it and that's one

reason for a cautious

approach. There will be the

concerns you normally concerns you normally read in

the media about are women up to

it, we'll have to look after them, those

at the emotional end. Then

there will be simply some who

say that they cannot physically

do it. To those people we say

this is all about setting physical standards that if you

achieve them, can you do the

job, move on with it. General David Hurley joins us David Hurley joins us shortly.

First our other headlines. Tax

remedy - health groups say wine

needs to be more expensive to

encourage Australians to drink

in less. Greek and German leaders

Eurozone crisis. We'll cross to

economist Gerard Minack in

London. And the deadly new drug

taking a devastating toll on the lives of young Russians - a special and disturbing report. Women will be report. Women will be allowed

into elite military units under

Defence reform as announced by

the Government today. The

Gillard Government says they

will have to pass stringent and

physical and psychological tests but opponents say it is

do little to increase Defence an expensive reform that will

reports from capabilities. Tom Iggulden

Canberra. (Screaming) The

Government says the battle for gender equality gender equality in combat has

roles on the front line will be been won. And now all of

determined on the basis of

merit, not on the basis of sex. Until today's

announcement, 93% of jobs in

the military have been opened

to women. Opening up the rest

of the 7% of the roles that are

currently closed, it's about

time. The Government is giving

gradually introduce the the military five years

reform. Supporters are delighted women will be given

the chance to kill as well as

die for their country. The army has most of its categories shut

to women and I think, yes, of

course, you don't ask people to

serve in the military if they

can't go into frontline combat.

That's not what they go in

there for. The closed roles

have included mostly positions

in Special Forces. Supporters

of the change say that men in

the units are already used serving alongside women and

won't mind the idea of a demale

SAS soldier. I don't see this as issue, no. People will be

ready for this. But former surprised that the army is

Defence Force Chief Peter Leahy

say it is will limit

numbers Studies suggest maybe 2

or 3% of women will be able to

do these sorts of tasking and

right now they are busy being

Olympic athletes or making a basketball. Opponents of the professional

move in Australia say the

Government promised a thorough

review before proceeding its review before proceeding with seen that. We're leaping

straight into it. My fear is

it's going to be like the

carbon tax for the army - carbon tax for the army - it

probably is a good thing to do,

it will have absolutely no

impact on anything and it will

cost us an awful lot. It's

worth noting the military's

commander-in-chief is a woman,

the Governor-General Quentin Bryce and the Julia remains the ultimate decider of where Australia's forces are

deployed by virtue of the fact that she is Prime Minister, a

fact that Kevin Rudd forgot

today in an interview with ABC

Local Radio. You know

something, I'm a very happy

little Vegemite being Prime

Minister - ah, being Foreign

question is about being Prime Minister of Australia. Your

Minister, there you caught me

getting off a getting off a plane, jet

lagged. Every day since his political assassination, Kevin

back into Rudd has thought about going

back into the top job. A free shot, as they say in the Army.

And to discuss the end discrimination against women in

the defence forces I was joined

a short time ago by a short time ago by our

Parliament House studio by

Defence Force Chief General

David Hurley. General David Hurley, welcome to Lateline Ali, thank you for

having me. Until now women have

been excluded from some 7% of gender. That's been the

official reason for those exclusions? Well, we have exemptions under the Sex Discrimination Act that

back until about the mid-1980s,

they were put in place. But

since 1992 we have been

gradually broadening the range of appointments that women can undertake in the Defence Force,

initially to combat-related and now I think after a 20-year

journey where at the point to

broaden that to appointments. About in terms of

the official reasons given for

those 7%, what are they? Issues such as physical strength, is that the that the main argument? Primarily around the

argument that they are

combat-related so direct

application of violence in the battlefield and concerns about physical standards, yes. This implementation of opening up

all positions is going to take five years. Why so long? Well,

Ali, we need to build up

cohorts of women who might be

interested in undertaking employments. We need to build

those cohorts because that

gives them the support

mechanisms they need as they develop, and if women come in today, for example, and wanted

to go to infantry, well, it is

nearly a 12-month journey

before you get there and that

brings you to private level and

we also need to build rank

structures so that would be for

women who want to move from

current employments to these

new employments, we need to

takes a bit of time to build

the support structures. Are the

physical benchmarks already in

place? I think it was in 2009

Greg Combet announced physical benchmarks regardless of

gender. That's pretty much done

and dusted, so it's really

putting the final touches to

that and then we will take

those new physical employment standards into our implementation plans from there

psychological capacity part of

in as well, are you already using a sort of psychological

test to assess people's appropriateness appropriateness for particular jobs? This is all about

people's suitability for jobs. people's suitability for jobs. We're not mandating that people

go there, it's not compulsory

that people go to these

appointments. This is a

gender-free approach we're

taking, that if your' suitable

to the job, then you can go and

do it. But I'm asking in terms of the of the physical benchmarks

almost in place, done and

dusted, as you say, are the psychological benchmarks at the same standing at this

point? Yes, the same processes we undertake for people to go

to that particular traits. Will

the standards be the same for

men and women? Yes. So, I've

got in front of me the Army

basic fitness assessments, they

are different for men and

women? Yes, but this is the point of these new standards.

These new standards will apply

to each job.

enough and meet those new

standards, then you can apply

and be accepted into it those

will be worked through over the

next number next number of years to bring those to a gender-free specifications. Warren Snowdon said today that not all in the

Defence Force will like the new regime. Do awe agree? I

certainly do. I think we will

find a variety of reactions

amongst the members of the ADF.

There will be those who won't

agree with it, those who will strongly support suppose those who don't agree

with it, how do you address

those concerns? Well, this is

one of the reasons why wree

need to be conservative in our

approach in trabs significancing from where we

are today. This is a big step

in a cultural sense, a big

management challenge for the ADF at

ADF at all levels to bring the organisation along behind this. And

this. And what do you think will

will be the main concerns of

those in the negative

camp? There will be the concerns you normally read in

the media about are women up to it, we'll have to look after

them, those sorts of positions

at the emotional end. Then

there will be simply

will say that they cannot

physically do it. To those

people we say this is all about

setting physical standards that

if awe chief them, you can do

the job. Move on with it. Are

you confident that by the end

of the five years you will have

everyone on board? Because

that's essential isn't it you can't have wrork ago longside men who are

not happy? Well, we'll never

get 100% but I'm sure the

programs we will put in place will be part and

being daily work in the Defence

Force. Is this also part of

Defence culture in terms of

treatment of women within the

forces? Elizabeth Broderick, the Sex Discrimination

Commissioner is doing a review

into exactly that issue. How do

you see the two working

together if you like? They are

separate issues but obviously

they are connected. One is

about the employment of

give to women for employment in

the ADF for career progression

and so fort, and are all the

policies in place to allow them to succeed. The other is as you say, culture, behaviour, attitudes within the

organisation. We'll await

Elizabeth's report, but I'm

very confident that the ADF

will come out well in those

rort reports. You don't think

there is a cultural problem

within Defence in the way it treats women? I approach this

from a number of Ali. When I talk about culture

in the ADF, I talk about it in

terms of things we need to

sustain and things we need to

improve. We need to sustain

culture that allows us to be successful in the battlefield no matter how complex or

whatever place in the world.

Over Christmastime for example

in Queensland and Victoria, in Queensland and Victoria, to

get 2 -3,000 people out of

their Christmas leave to come

and assist fellow Australians.

It is a culture if any community in Australia

where there is an ADF where there is an ADF base, you

will find us heading up P & Cs, running Girl

and so for, being committed to

the community. That is the

positive sield of the culture.

There is a necessary tiff side

where we don't apply is evenly

or as equal as we can. I'm sure

that Elizabeth's and other

cultural reviews will indicate to cultural reviews will indicate

to us some places wither programs aren't right, where we

need to create more space for

them but I don't think they

will turn around and say the ADF is a failed

organisation. Do you think at the

the end of this 5-year implementation phase that these

changes will make a difference

to Defence capabilities? I'm

sure they will. If women who

are out there who want to undertake these types of employment, they've got the employment, they've got the

talent, they will bring more to

the organisation than we will lose. General David Hurley, thank you

to talk to Lateline

tonight. Ali, thank you. The Queensland Government

will introduce will introduce legislation next month to protect prime O'Farrelling land from mining T means development that

permanently damage the land

such as open-cut mine also be banned from regions banned from regions deemed

strategic cropping areas. There

are a few exceptions. There is

no other State that's ever done

this. It is a brand new area of wanted to get it right. We've

been out consulting with farms

group, we've been out talking

to the mining industry. We now have the legislation

and we're bringing it into the

Parliament. State Opposition

says the legislation is long

overdue For five years they overdue For five years they

haven't moved to protect the

State's major strategic

cropping land trits. The result

of that failure, the result of

that delay has been an enormous

amount of angst and concern in

the community. The farm lobby

group AgForce says also like to see grazing land protected. Greek Prime Minister

George Papandreou has delivered

an impassioned plea to German

business leaders to help his country out of its country out of its current debt

crisis. Mr Papandreou said

German funding would not be an

investment in past failures but

in future successes. He also

pointed to Greece's superhuman

efforts to cut its debt efforts to cut its debt levels

and make important reforms to become competitive again First

of of all Greece does have great

potential. We are not a poor country, we were a mismanaged country. So

and accountable governance are

our priorities. The German

Chancellor Angela Merkel

responded by saying that

Germany will do all it can to

rebuild confidence in Greece as

it meets the reforms of the

bailout package. Optimism that

Europe may come up with a Europe may come up with a credible bailout positive effects on the share

market today. Joining us now

from London is Gerard minute

naks chief economist with Morgan Stanley. Gerard Minack, thanks for coming on Lateline Thanks, Ali. Europe

will come up with a plan - do you believe it's well-founded? There are many,

many hurdles that we have to

get over before we can say the Europe

Europe crisis is behind us.

What markets are now

speculating about is another

upgrade to

the so-called EFSS. Ironically

we haven't seen the last

expansion of the EFSS approved

yet N Germany that's coming up before a vote of their

Parliament in two days' time,

so markets seem to be, in my view,

view, get ing ahead of

themselves, and plus there is

themselves, and plus there is additional hurdles coming next

year because I think it's

extremely likely that we see

Europe back in recession, so

all the problems in Europe now will

recession we will see bank bad

debts start to rise, budget

deficits go up and we may even

get to the stage where nominal

GDP, the nominal size of the

economy is that rights to

shrink which all of a sudden

starts to blow out the GDP to

starts to blow out the GDP to

debt ratios. So if Europe looks

in a mess now, it could be in

an even bigger mess next year

and I'm not sure that policy-makers in Europe would

be able to get over that hurdle. From what you imply,

there is isn't a rescue package

that will achieve any concrete

aims. The market seems to be focused on the focused on the increase to the bailout facility but even

that's been denied by Spain's

that's been denied by Spain's

Finance Minister. Is there any

real sense of where European

leaders are going? No, and

that's been one of the

problems. European leaders have been going in all different

directions and that reflects

the fact that as we've seen

them struggle with more and

more unconventional policy

measures, they've been running

into higher and higher hurdles,

and those hurdles can be legal,

they can be institutional or

they can be political, and

they can be political, and what

we're seeing mount in Germany

is opposition already to this

extension of the EFSS, the

bailout package that's going to

be passed or come up to

Parliament later this week, let alone strengthening the Opposition it a further

increasing the fund, and all

markets are running on at the

moment is press reports. haven't had a concrete announcement from anybody

senior, so to me, this strength

in markets that we're seeing says about as much about how

far they have fallen over the

prior month as about the

tangible prospect of getting a

really big deal coming out of

European policy -makers. If you

see a recession in Europe next

year, do you also see that any

rescue will involve some sort

of default by Greece? Do you

of default by Greece? Do you see the

to ringfence the bigger economies of Italy and

Spain? Well, that's the

problem. I mean, we all know

Greece is insolvent and of course the bailout package was

initially set up to deal with

effectively the insolvency of

Greece, Ireland and Portugal.

But what's really scared

markets overthe last month is

we have moved on to much larger economies, Spain and Italy.

There is two things to note

about Spain and Italy. The

first is in terms of who has contributed to the bailout

fund, those two economies are contributing around a third of

the resource. So all of a sudden you've got a question

mark about who is chipping in

to bail out the

because they are now coming

under stress themselves of the

second point is the cliche

about Italy is absolutely

right. It's not too big to

fail, but it 's too big to bail

out, and that's why we had the US

US Treasury secretary Timothy

Geithner warn over the weekend

that Europe really is on the other words, we're talking

about something much more worse

than just a vanilla recession

and arguably something worse

even that what we saw in 2008

because if we do see Italy come

under pressure t could be the

trigger for disorderly, country

level and in banking defaults.

It really is a worst case,

end-game scenario for Europe, but that's but that's what markets have

been feeling over the last month. You're a well-known bear, what's your best bet? I

think it's very difficult for

Europe to get out of this

without breaching a lot of the conventions that have held it

together. Ultimately in my view

over the next year, we either

have to go one of two ways: One

massive ECB money printing,

so-called monetisation. In

other words, just standing in

the market and buying the

bonds, buying the bonds which

effectively prints money which

of course has enormous

Germany who have been scarred

by the examples of hyper

inflation last century. That

may sound a difficult

may sound a difficult option but the

but the other one which I now

think is much more than a trivial risk is that disorderly dysfunctional default option,

and I never really considered

it that big a risk a year ago,

but what has changed the game

over the last two months is the

deal they put together to bail out Greece two they forced on the private bond

holders a re-structured private debt arrangement. Technically

we saw the first default developed economy on their

sovereign debt two months ago,

and what we've seen since then

is everybody saying, "If it

could happen to Greece t could

happen to Spain, it could

happen to Italy," so we've seen

this massive flow of funds out

of not just the ferive fri, but out of anybody but Germany out of anybody but Germany and fras, and

ECB to plug that flow, and to

do that I think they need to

print almost unlimited amounts

of money. You mentioned Timothy Geithner before. What about the

ramifications for the US? Is

there an argument that in fact

the US is already back in

recession? I don't think the US

is back in recession, but I

think it's more likely than not

it will go back into recession,

and one of the great ironies of

what we've been seeing over the

last year is policy-makers have

responded to this looming threat

they've been increasing their fiscal tightening, so

tightening their budgetary

policy N a cycle management sense, that's absolutely the

last thing we need to see, and

what the US is face something a

substantial tightening of

fiscal policy next year as the Obama stimulus from last year

expires. On our numbers they

will be tightening fiscal policy by around 1.25 policy by around 1.25 to of GDP

and that will hit an economy

that is already growing at 1.25

over the quarter to over the quarter to June.

Historially-the-su. S has never

slowed to 1.25, so there is

already strong evidence that

the US is on the brink of a

recession and about be to be

clobbered in the new year with

substantial fiscal tightening.

For me the US will probably

head into rescission, a 3 out

of 4 chance and what increases that risk recession. Bearing in mind if

you look at Europe, the US and

UK, they are each other's major trading trading partners, so if one goes into recession , it increases the risk of the other

going into recession. So for

China, the major partner is the

Eurozone. Waa does all that

mean for Australia and

China? This is almost a

headwind for China. The good

news for China and Asia

generally is they have

year and that mes - where in

the developed world we've got

no convention policy bullets

left, the Chinese can turn on dime and in a sense repeat the

same policy response that we

saw so successful in 2008, so

we can see them reverse course

on monetary policy and lower

their interest rates, we can see

see them provide fiscal

stimulus again, so I think this

is for shine choon a threat

that they are able to respond

to, and although there

investors who worry about a

so-called China hard landing, I

don't think that's in prospect

yet. I do think China will slow

a little next year as Europe

goes into recession, but yet

again I think they will be able

to successfully avoid a

recession in China. That's good news for Australia. Gerard

Minack, many thanks for joining us from London tonight. You're

welcome. pressure on the Federal

Government in a campaign to be

launched tomorrow to increase

taxes on wine in a bid to curb

alcohol abuse. Australians are drinking increasing amounts cheap wine and doctors say

making it more expensive is the

only way to stop the trend. But

wine-makers say targeting wine

drinkers is unfair and will

hurt the poor and the elderly. Michael Edwards

reports. Australians have long

had a reputation for liking a beer. In

have changed, though, as wine

and other drinks become

increasingly popular. But as

tastes have moved, the problem of alcohol abuse hasn't. That's

why the AMA and other health

groups are holding a summit in

Canberra tomorrow, calling for

changes to the way alcohol is

taxed. In Australian society,

the excess costs from alcohol

are estimated to be about $36

billion a year, which is an

enormous cost, and we know that

certainly for young people between 14 and between 14 and 25, 80% of those

people consume alcohol in a

dangerous way, dangerous to

themselves and dangerous to others around them, and 10% of

alcohol in a way that's

dangerous to themselves, so this is an enormous

problem. Doctors say alcohol is too cheap

too cheap with some cask and

bottled wine less expensive

than bottled water. Many in the

medical profession say the

solution is to make it more

expensive by raising

taxes. Certainly a price signal is very for that price sensitive group

of young people, certainly the

15-25s, and certainly people

who consume large volumes of alcohol are very

price-sensitive, so it is a

really helpful tool to actually

minimise the misuse and abuse

of alcohol. Last year Ken Henry

recommended changing the way

alcohol is taxed but the issue

isn't expected to be high on

the agenda at next month's Gillard Government-sponsored

tax forum, and there is opposition from industry. The reality is that

we have a cultural problem when

it comes to alcohol abuse and

we ought to be looking at more

far-reaching initiatives to deal with those issues, and

when we continually hear that the solution lies in increasing

tax, in putting on warning

labels and restrict being

alcohol advertising, it pretty much

much says to us that they're

bereft of new ideas and that

they don't have a solution

they don't have a solution for

this. Winemakers say they there

will be potentially be un intended and unwanted

consequence hes All of the evidence we've seen is it will

increase prices t will lead to reductions in consumption of

wine but lead to a whole lot of

shift into other alcohol beverages. Tomorrow's summit

will also see a detailed

release into the nation's

drinking habits and how more

tagses could increase alcohol

abuse We can increase more revenue, discourage problem

drinking, we can help the Australian wine industry which

is experiencing a glut of low-quality wine, and we can

save a lot being taken out of the

Murray. But a government

already making tax changes on a

number of sensitive fronts will

not be easily convinced. The Gillard Government says higher

tags also cripple an industry

already suffering due to an

oversupply of both grapes and wine. The treasure-trove of

silver worth $235 million has been discovered at the bot

tomorrow of the Atlantic Ocean.

An American salvage firm found

the silver in the wreck British cargo ship which sank off Ireland during World War

II. It's largely a case of

finders keepers with the company retaining 80% trsh sure. Philip Williams

trsh sure. Philip Williams reports. It looks in perfect

condition, but the SS

'Gairsoppa' is a long way down,

nearly 5km deep in the North

Atlantic, settled on the ocean

floor, still upright. The UK

cargo ship was sunk about a

German U boat in 1941 as it

tried to make

Harbour in Ireland after

running short of fuel on the run from Britain to India. Only

one of the crew of 85 survived the sinking. A the sinking. A US-based exploration company, Odyssey

Marine, won the contract for

salvage rights for what's

expected to be the biggest haul

of precious metal ever found at

sea. The company gets to keep

80% of the 200 tonnes of till

ver. We're extremely excited

about this find. I mean, it's

massive for us in so many different ways. The deepest

ever, potentially the richest

ever and the technological

challenges that we have ahead

of us are something that we really sink our teeth

into. Luckily the cargo bays

appear to be open. The 130m

long ship was found a couple of

months ago but the company had

to be sure they had the right

vessel before going public, and

while finding the wreck may

have been hard enough, the real

challenge lie as head Do we

consider that 148 million

a good enough reason alone to

disturb this site? And that's

why you're always looking for

broader questions to be asked

to justify that degree of intrusion. While it is possible

some of the crew went down with

the ship, marine archaeologists

say it's unlikely any human

remains still exist. What is

clear is the outline of a

doomed ship more than 400km

from the safety of Galway

Harbour. Its treasure about to see the light

see the light and air for first time in 70 years. In

Russia, the scale of illegal

drug use is staggering. The country has country has an estimated 2

million addicts. Now it's

facing an insidious new threat.

It is a homemade drug users

call Krokodil. It's cheaper

than heroin and more addictive

and it's taking a terrible toll

in Russia's vast regions. Moscow correspondent Norman

Hermant sent this report for Lateline. And a warning, the

story contains disturbing

images. For Ivan, life in the

industrial city of Tolyatti has been stripped to its bare ee

septions making a cheap and deadly

deadly drug, by adding an add

Sid to spark a reaction, by grinding frost frus, by carefully pouring and

measuring. He knows this

process very well. He often does little else.

TRANSLATION: Sometimes I might

do this five times a day, sometimes only cooking a drug called

desomorphine, better known in

these parts at Crocodile or

Krokodil in Russia. A visit to

the local tuberculosis ward

gives an insight into the pam

xgt most have injected Krokodil

with contaminated needles. with contaminated needles. Both

Oksana and Irina are addicts

and Irina in particular bears

the gruesome Krokodil's damage to human flesh. When it's injeketeded

Krokodil eat as way at the skin

creating a scaly surface

creating a scaly surface and

inspiring the name. " I detest

myself." She has been an

addict for two years and

tuberculosis is just one of

several Krokodil-related

medical problems.

TRANSLATION: It acts like a

catalyst for all internal

diseases. If you have bad lungs t

your liver, then it's your

liver that's affected. It eats

you up from the inside. Oksana

starting doing the drug four

years ago and eye due to complications from

HIV. At least she is still

alive, she says. Many of her friends aren't.

TRANSLATION: You see that and

you think, "I I'll be next." It was

It was a shock to find It was a shock to find myself

in this situation and I still vbt got out

out of it. Tolyatti is a

sprawling grim city of 700,000 people near the ural Mountains.

This is the home of lad da

kars. The brand's owner Avtovaz

employs 70,000 workers here,

but tens of thousands of jobs

have been cut and poverty is everywhere. Tanya Kochetkova is

a social worker who has watched

the toll Krokodil has taken on

this city and on thousands of addicts. A

desomorphine-addicted person is totally consumed by the process

of cooking the drug. It's

completely different to heroin

which you can take in a couple of minutes and then leave. Ivan

is an example of the endless cycle. After 30 minutes

cycle. After 30 minutes of cooking, the components,

including iodine and even

petrol emerge as a drug. Like

many addicts, he avoids

injecting in his arms to try to

done seal his drug use. He chooses location. He will experience a

high everlasting from 30 to 90

minutes, then the process will

start again.

TRANSLATION: I would like to

quit. I wish we had the drug

replacement therapy like in

other countries. A big part of

the traction of the drug Ivan

has just made is price. In this

part of Russia, a hit of heroin

can cost up to $100. Krokodil

is prepared for one-tenth of the cost, and the main

ingredient is codeine from

headache pills obtained from

pharmacies. In all, a batch

like the one Ivan just made, can be had for about $10. The colonel

colonel who heads the Federal anti-drug service in the region

admits Krokodil is a scourge,

not just here, but all over Russia. His department hands

out videos of officers

intercepting cars trafficking

the drug. And images of addicts

that have been arrested with

graphic evidence of the damage

Krokodil can do. But the drug continues to spread.

TRANSLATION: It's a cheap drug with pretty much the same

effect as heroin, but at a much

lower price. That's why

Krokodil is becoming more and more popular. Belocal drug

treatment clinic they are

overwhelmed. Russia has an

estimated 2 million drug

addicts and it's believed

100,000 or more are on homemade drugs like Krokodil. Doctors say quicker to kill. TRANSLATION: The problem is

that the addicts are going downhill much faster. Heroin

addicts can last from five to seven seven years. With desomorphine

it's two to four years, no

more. Olga Kosova's son was one

of Krokodil's early victims.

Home from the army with no job

and few prospects, he became an addict.

TRANSLATION: I still cry every

day. I miss him. day. I miss him. She watched

her son die at home. She says

the hospital turned him away,

telling her treating him would

have been a waste of time.

TRANSLATION: It's impossible to

help them. What good are tears

or prayers? There is no remedy

against this. Back at the drug

clinic, Alexander hopes he

won't suffer the same fate. He

bears the marks of an addiction

that so far he cannot that so far he cannot beat. TRANSLATION: My life has been

turned upside down. Once I

learnt how to do it myself, I

couldn't stop. It took all strength to come here to the

clinic. It's so hard to stop. In this stop. In this hidden Krokodil

epidemic, in cities across

Russia, there are many like

him. Extraordinary. Now to the

weather:

And that's all from us. If

you would like to look back at tonight's interviews with

Gerard Minack and David Hurley or review any of liecial's

stories or transcripts, you can

visit our website. Follow us visit our website. Follow us on

Twitter and faition book. I will

will see you tomorrow when our

guest will be former High Court judge Michael This Program is Captioned

Live.

Good evening and welcome to

'Lateline Business'. I'm Ticky Fullerton. Tonight, Dick Smith

joins me in

discuss what he describes as an

extreme form of capitalism

impacting farmers N our other

stories, we look at the foreign

takeover of Melbourne's

EastLink toll road. We still think it's good value, but I

understand that there will be

some disappointed

investors. The chance of a

credible plan to deal with

Europe's debt crisis sparks the

biggest one-day rally in nearly three

three years. The market today

has reacted to some hope that

in fact some decisions will be

European point of view. And no

longer meat and three veg - Australia's top cuisine

attracts tourists here, while

Sydney's top chefs

shanchtsz it gets down to the

natural source of food. It's

got down to food with flavour

which is what Australian chefs

do better than just about

anybody else. To the markets

and hopes that European

officials have found a way

through the debt crisis saw the

biggest daily gain in almost three years. Al

Well, a $2.2 billion

takeover bid for the owner of Melbourne's EastLink toll road

is set to go ahead after a

majority of investor as proved

the deal today. The offer from

Horizon Roads which is owned by

a consortium of global fund

managers was for 55 cents per

of institutional investors

gotted board over the line,

retail investors were largely

against the takeover. Emily Stewart Stewart reports. Over the last

seven years, John Hastie seven years, John Hastie has bought more than

bought more than 50,000

securities in ConnectEast. He

saw it as a great long-term

opportunity to invest in a

local company for his

grandchildren. We believe that

the company does have a future

or should have had a future and

we're going to be disappointed to see this yet overseas, like many other Australian companies that have

gone to overseas holdings. Horizon Roads is an

investment vehicle owned by a

consortium of global fund

managers and led by Sydney-based CP2. They've

offered investors 55 cents per

unit or the alternative of

scrip in an investment

keen. The board needed 75% of

investors to approve the deal

and the vote was expected to be

tight, but with tight, but with the support of

institutional investors, the

deal received 80% approval I think the institutional

investors sat down and had a

look at it and said, "Look, the

market is still poor, the

market is still volatile. We're

offering 55 cents cash now.

This would be the sensible

thing to do." But many smaller

retailer investors at the

meeting had paid more than a

dollar per unit and they

weren't happy with the offer. I

think it's wrong

selling off Australia. Horizon

Roads are an overseas company

and as such they have faith and as such they have faith in ConnectEast. Why haven't our directors have faith in

it. Tony Shepherd says it is a

good deal at a 22% premium on

the last closing price I

understand there will be some disappointed investors. He says

Horizon Roads would have gained

control of the company within

two and a half years anyway. If we leave it we leave it too much longer,

CP2 through the creep

provisions will take control of

the company without paying a

premium. What they're really

buying here is an asset that is

now proven. It's in the ground

and it's generating revenue,

and they are obviously

delivering on that, and really

there is a whole lot of funds

out there, I suppose, for

infrastructure assets because

they offer a pretty good rate

of return, a long-term growth

profile, that meets the requirements of these

investors. The current management

management team of ConnectEast

is expected to stay with the

new owner, but the rest of the board will resign within

weeks. The deal now awaits

final approval from the Victorian Supreme Court. Global

equity investors beaten down by

Europe's debt crisis fond a

reason to celebrate today.

There is speculation that European leaders were ready to

come up with a credible plan to address the debt end the global instability.

Despite the lack of any

announcement, the Australian

market surged more than 3%, its

biggest one-day rise in nearly three years. Here's Phillip

Lasker. It was a sight for sore

eyes , a market rise of the magnitude not seen since

December 2008. The market today

has reacted to some hope that

in fact some decision also be

made particularly from a European point of view. Hopes has of concern about European

dithering and disunity became

louder. They're going through a

financial crisis that is

scaring the world and they're trying to take responsible actions but those actions haven't been as quite as quick

as they need to be.

Solutions must now emerge to restore the confidence that markets need. The solution

emerging but not confirmed is a

partial Greek default and a massive increase in Europe's

bailout fund with the help of

the European Central bank But

getting the proposal past the

17-member countries, like 17-member countries, like germ

myny and its taxpayers won't be

easy Because there is a notion

that everything which involves

the ECB is potentially

dangerous with regard to

inflation and might create

inflationary pressures. But the

alternative is too frightening

to contemplate. We could have

an economic contraction shun which

turng into a depression, we

could have bank failures, social and political unrest across the continent. The Prime

Minister was again talking up

Australia's resilience,

suggesting we were as

bulletproof as possible. There

is no Australian bank exposure

to Greek public debt. They also

have low exposures to European

banks and other borrowers that

might be affected immediately

by a major financial shock in

Europe. But the latest Chamber of Commerce and Industry survey

showed the turmoil is making

its mark through a

deterioration in business

conditions during the September

quarter. It's clear that both business

business and consumer confidence confidence is taking a

battering. And so for the most part have share investors,

although Macquarie says there are some real

opportunities. For those

investors who are really

flocking to put their money in

safe havens like term deposits

in banks where they seem to be willing to sep a 5% or 6%

return on that, some of these

companies are offering much

higher return in the form of

yield. But of course the

volatility in the share price is still causing some investors

to take that step. Today at

least that anxiety was nowhere

to be seen. On the local

market, banks and miners led

the charge today. Earlier I

spoke to Ken Howard from RBS

Morgans in Brisbane. Well, Ken

Howard, a powerful rally, but

are investors setting

themselves up for a business of a disappointment, do you this

I? Let's hope not, Ticky it has

been a relentless run of negative days on our market.

Good to see it up over 3%

today's market. You've got to remember that nobody will hit

the bell when you hit the

bottom and at some point you

have to average into the market. Those European issues

are yet to be resolved so we're

still waiting for some guidance

there, but good to see some positive news on our

market. Positive news and some of been pretty spectacular. What's

that telling us ? Look,

certainly been been a feature

of the share market since the GFC and a feature of the market

in the last couple of months

that there has been a lot of

short-selling. Some of the top

names in the top 50 gapping

down, 3, 4, 5% in a day. The

raally today has seen some of those stocks reversing that

trend. We had the likes of

Iluka up over 10%. Macquarie

Bank um over 10%. Inso Bank um over 10%. Inso tech

pivot up over 10%. Even those

stocks outside the top stocks outside the top 50 Lynas Corporation, a $2 billion

company up, 30% today. So there

certainly has to be a degree of short covering that has driven

today's rally as well as longer-term investors looking

for value. Lynas a very

interesting company. Not every

stock is on the mepd. CSL looks

to have and indeed the medical

profession with the news of the

penicillin shortage there ?

Yes, a bit out of the

defensives into the growth stock. Most of the defensive

stocks had a fairly lack-lustre

day. Your Woolworths, Telstra,

AGL, Macquarie Airports were

lucky to be up half a percent.

I think CSL is fitting in that defensive category. Certainly

not good news that there is a

shortage of penicillin or potential shortage of penicillin in Australia is really a very

small part of CSL's business

and I suspect it wasn't the

major driver in the weak share price today. I see Goodman

Fielder is set to raise as much

as $259 million in new capital? Yes, that's right. A

fully underwritten rights

issue. I'm sure it's very disapointing for the suffering

shareholders of Goodman Fielder

that they need to stick their hand noose their pocket one more time company turn its prospects

around. If they do sell a

couple of billion dollars worth

of bread and butter, they

should be