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(generated from captions) pokies. er machine pokies. Poker

Tonight - taking on the top

brass. It opens up in a

leadership sense all the

leadership roles for women in defence, the defence

organisation, and the defence services themselves an unambiguously good thing. It's upset some former soldiers. We're not going to

ask the first grade Parramatta

team to have first grade and I think you've team to have women playing in

got to make sure you don't

similarly expect the first

grade in defence which is a very physical business, the

ultimate business contest,

do the same thing. ultimate business contest, to

Open

Good evening, well TOM come

to 'Lateline'. I'm Ali Moore.

Julia Gillard won the support of key independent Andrew

Wilkie to hold government by

promising to tighten the

regulation of poker machines.

If there's no legislation to

introduce the tough new measures twhi time next withdraw his backing for the

Gillard government. Canberra

says it has legal advice it can

force the changes on the States, but now the Prime Minister New NSW Premier Barry O'Farrell Minister faces another hurdle.

says he'll challenge any

federal inter vention in

gambling laws. I acknowledge is

advice is simply that until it

is tested in the courts. If the

legislation goes through you

would challenge the validity of

it . I have no doubt I wouldn't

be the only brem premier to areas of State

Governments. Barry O'Farrell is

our studio guest tonight. Our other headlines first.

Radiation re-rating. Japanese nuclear regulators increase the

severity of the leak at

Fukushima from level 5 to 7, the to operate rating on an

international scale. Bunker

bust after a week holed up in

finally surfaces his compound, Laurent Gbagbo

defeat. And the banana

economy. Former treasurer

the development of a Cambodia Peter Costello involvement in

banana plantation that could

cut a wildlife corridor. The

Defence Minister, Stephen

Smith, appears determined to

use the Defence Force Academy

skype sex scandal to force much

broader reform on the military.

Among the changes he wants is

including those on the to make all positions,

frontline, available to women.

the Defence Department and the Since the initial

hundreds of further complaints minister's office has received

and allegations of abuse and

Stephen Smith says they'll all

be dealt with by an independent be dealt with

legal team outside the military

system. Political

correspondent Tom Iggulden reports from Canberra. The

argument over women's place in the

the military isn't new as the

Prime Minister acknowledged

today in singling a former

Chief of the Defence Force. A

should have an equal right to few years ago I heard Peter

fight and die for their

country. I think he's right

about that and I think it is a

Government's moving now to open good turn of phrase. So the

up all positions for women in

the ADF, including the 7% of

jobs they're not currently el

gable for. What we want to do

is bring it forward. The move

follows allegations that 6 male Australian Defence Force

Academy cadets swachd over

skype as another male colleague had

She didn't know it is alleged

they were watching. This issue is unconnected with the ADFA

issue and you wonder why the

government has suddenly known

this into the mix. It does

search a a distraction. Stephen seem like this a government in

Smith appears to be sending a

message to the senior defence

establishment. It opens up in a

leadership sense all of the

leadership roles for women in

defence, the defence organisation and the defence

services themselves and that's

an unambiguously good

thing. Since the skype scandal

broke hundreds more of bastardisation and sexual

impropriety have rolled into

the minister's office and the

Defence Department itself. The minister won't be allowing

those allegations to be handled

internally. The secretary of

the department will commission

an external legal team to go

suggestions and allegations through all of those

that have been made. The move

comes on top appointment of the Sex

Discrimination Commissioner to

look into how Australia's military culture treats

women. The Defence Force in a

sense is not alone in terms of

that colour. You look at

sculptures such such as the

NRL, the AFL and big mining

companies and others, it

absolutely is possible and I'm looking to working together

with a small team to actually

start to work on the cultural

audit. The decision to open audit. The decision to open up

more defence jobs for women and

comparisons with the football

under the skin of at least one former special forces

soldier. I think you've got to

analogy be careful about in that

analogy in analogy in realising that we're

not going to ask the first

grade Parramatta team to have

women playing in first grade

and I think you've got to make

sure you don't similarly expect

the first grade in defence

which is a very physical business, the ultimate business, the ultimate physical

contest, to do the same

thing. He defended ADFA's come

a forced leave of absence after

Stephen Smith labelled his

handling of the skype zapb

scandal stupid and incense tifr.

tifr. The way the Commodore

was hung out to dry was

decision the Vice Chief made unconscionable. . It is a

because he thought it was in the Commodore's best interests. Tonight there's another twist

on the Defence Force culture

story. Independent Tasmanian MP Andrew Wilkie has revealed

threatening unnamed people have been

threatening to expose

of him from his time as a

military cadet at Duntroon 30

years ago. He's also received

death threats. death threats. He's fingering interests opposed to his stance

authorities on poker machines. Japanese

authorities have upgraded the

crisis at the Fukushima nuclear

reactors to the highest level.

The rescission which puts Japan

nuclear accident at the same

level as Chernobyl in 19 64,

raises questions about how long have known the disaster was so

serious. As the world's third largest economy attempts to limit the economic damage caused by the March caused by the March earthquake

some experts wonder whether Japan's assessment still under

estimates the severity. Hamish

Fitzsimmons reports. In 1986

the fall-out from the Chernobyl

disaster swept across much of

western Russia and parts of

Europe. Now with the admission

Fukushima is at the same level

on the international agency's disaster classification Japanese authorities

authorities are taking pains to

stress this is different to the

Chernobyl disaster. Japan's

nuclear agency says the rating

reflects the initial release of

radiation immediately after the accident. TRANSLATION:

Based on data we've collected

since March 18th, we've given

this a preliminary rating of 7.

However, the emission of

radioactive substances is about

10% of the amount of churn

which is rated at a similar level. According to the IAEA

level 7 means radiation will

have widespread health and

environmental effects requiring planned and

measure. Still, Japanese owe

initials say this is not the

same as the Russian nuclear

accident. TRANSLATION: In the

case of Fukushima, we had an explosion due to leaked

hydrogen, blowing the roof off

the building and you reactor presser resell

form despite some leakage. It

is very different from Chernobyl. There are questions about how long Japanese authorities have known the

Fukushima reactors Fukushima reactors were at

level 7. Dr Peter Karamoskos

is a nuclear radiologist and public representative on the

Radiation Health Committee of the Australian radiation protection and nuclear safety

agency. Those who said that it

was quite a serious event much greater than what the Japanese

authorities were saying, were

correct. In fact, whereas the

US nuclear regulatory

commission and the regulator were saying it was a

level 6 accident, we realise

now it is a level 7 and always

has been a level 7. Dr Karamoskos says there's to be wary of claims by the Japanese nuclear

industry. TEPCO, the utility

operator has often poor safety record. We know that the

regulator has a cosy

relationship with the nuclear

power industry for a long time

and there's general lack of

transparency and in the Japanese nuclear power industry. The Japanese

Government is keen to limit Government is keen to limit the

economic fall-out from the

earthquake. Restoring consumer sentiment is a priority and at markets today the government reassured people Fukushima

grown vegetables are safe to eat Food that's in the shops

and supermarket a and of course

here today is the only food

that is safe. And as aftershocks continue in Japan,

the level 7 rating has rocked many. TRANSLATION: Level 7 is

the same level as Chernobyl.

It's the first time I've felt a bit shocked. Restoring

confidence may take a long time. Ivory Coast internationally recognised President Alassane Quattara is

urging restraint following the

dramatic capture of his rival

Laurent Gbagbo after months of

fighting. He's promised Mr

Gbagbo a fair trial and says

he'll set up a truth and reconciliation commission.

Despite the celebrations, there

to both men are not ready to put

put down their guns. Africa

correspondent Ginny Stein reports . These are the first shots of Laurent Gbagbo as a

deposed President. He spent

the past week hiding in his

bunker, but the wait of his

opponent's military assault

finally brought him to the surface. Five months after

losing the election, he's

ultimately conceded defeat. TRANSLATION: I

TRANSLATION: I hope that you stop the fighting and begin

talks which are completed

quickly so the country can

return to normal. It took more

than a week to break into Mr

Gbagbo's compound. Forces

loyal to the inn nationally recognised government

recognised government led the

assault, but they were assisted

by UN peacekeepers and French

airstrikes. We again targeted

the heavy weapons but it was

the forces of Mr Quattara who

entered the residence. News of

his capture sparked celebration

across the country. to revel in victory, others

just happy that the fighting

has stopped. Attention now turns to the winner of turns to the winner of last

year's election. The new President Alassane Quattara.

He's called for calm urging his

countrymen and women to object stain from all reprisals and violence. TRANSLATION: I

express my willingness to put

in place a truth

will document all the massacres, crimes and other

violations of human rights. Such a commission necessarily a one way street.

The forces of both sides are accused of committing

atrocities. The pleas for

restraint have come from both

sides but fears of reprisals

remain. Forces with divided

loyalties are still heavily armed. TRANSLATION: I

to all my compatriots who might

feel the need for vengeance to

abstain from all acts of

reprisal and violence. As it stands, Laurent Gbagbo is in

custody while Alassane Quattara

has the task of uniting a

country scarred by conflict.

Pauline Hanson has missed

out on a NSW Upper House seat.

The former One Nation heedder

was confident has she arrived

for the distribution of

preferences and declaration of the poll this morning the poll this morning but the

final two Upper House spots

went to the Greens and the

Nationals. Despite missing out, Pauline Hanson says she

may look at establishing a new

political party. It is clearly

shown in this election people

are fed up with the major

political parties. Ms Hanson

secured a secured a 2.4% of the primary vote. The Liberal-National

coalition one last month's NSW

State Election in a landslide the scale of which has never

been seen before in Australian

politics. The size of the

principle win has given Barry

O'Farrell a mandate on a broad

range of issues and the

confidence to challenge the

Prime Minister on some of her

key reforms. Barry O'Farrell

joined me in the studio a short time ago. Barry O'Farrell

welcome to 'Lateline'. A pleasure. Let's go first to the final make up of the NSW Upper

House. You'll have to deal

with the shooters and Christian

Democrats and not Pauline Hanson has looked Did you breathe a sigh of relief

relief when you heard that

news? It is another example

you can never disagree with the

electorate. I've been on the

losing end of a number of state

campaigns and I admitted the

electorate got it right. They

got it right on occasion. We need a Parliament that's

prepared to work together. We

don't need people who would be divisive. How divisive do you think that the cross-benchers

are going to be? How easy will

they be to inn win over in

labour joins with the Greens to

knock back Jorgen da? We're

the first party to ever win 11

Upper House seats in one

election in NSW. That combined

with the extraordinary majority

we've been given in the Lower House certainly says that those

policies, plans we put forward

should get through the Upper

House. I'm not going sellout our plans, our

policies, our principles for

minor parties and I hear lots written in the Sydney Morning

Herald about the shooters and

fishers, their plans for national national parks, it ain't

on. You're going to need them.

If Labor and the Greens get

together, you're going to need

one of those four on the

crossbenches. We'll need to get

two votes to get our policies

through. We're not intending

to sellout national parks or social policy to achieve

that. There was Colin Barnett

in Western Australia and Ted

Bailey in Victoria fan now you.

How much trouble do you collectively present

potentially for the Prime Minister? I don't think we're

trouble. We're three

individual premiers and firstly

I suppose there will be issues

on which we don't agree, on which we don't agree, so

first and foremost, we're

representatives of our States

and our States will have different priorities, different

demands of Federal Government.

Collectively, we operate in a

federation. It is meant to cooperative federalism and once

the elections are over, all of

us, whether Prime Minister Gillard, Premier Barnett,

premier Bligh, we're meant to

operate in the best interests

of our communities and the nation. Three sitting around

that CoAG table is a lot less

lonely than one or two.

Absolutely a lot less lonely.

I'm not sure it changes the dynamic much. Know when John

Howard often he found it easier

to work with opposite party. I'm hopeful,

given the benefits Colin

Barnett has got out of Infrastructure Australia we

might be able to represent late that in that in the relationship we have with the Federal

Government. I want to sit down with the Prime Minister,

advance the interests of this

state. This is a state where

we've short changed and where

I'm determined to ensure that

the current talk of budget cuts

doesn't dud NSW again. There's

not one state that wouldn't

argue that they haven't been

short changed. I know you're sitting down with the Prime

Minister as I understand it on

Thursday for a up cup of tea. What will be your priority? Our priority is Our priority is the

infrastructure backlog NSW has.

I accept as a nation we've had

many issues, what I many issues, what I don't accept Sydney for instance with

20% of the nation's population got 1% of funding under Infrastructure Australia's

initial allocation. That was

$9 0 million for a proposed

Metro out to Parramatta and

that money was handed back by

the former government. Today

Sydney came to a standstill

because pour signalling system

is old. We clearly massive problems in this city,

as do other cities around the

nation, and what I'm interested in talking to the Prime

Minister about is how we get through that transport

infrastructure backlog, and in particular how we get the

funding for the rail link that

everyone says is the first

priority in Sydney. That rail

link of course is $2.1 billion

that the Federal Governmental

lowed the Parramatta to Epping

rail link. You want the rail link. You want the money transferred to the north-west rail link. That was your

promise. It wasn't the

Government's promise, Why should they fund your

promise? . Firstly, because by

everybody the Lord Mayor, the

former head of planning, by the

business council, the centre

for independent economics, that

rail link will deliver the

greatest benefits to this city

in terms of rail and our in terms of rail and our road Network. That would require the

Prime Minister dumping another

election promise. It would require the Prime Minister to

pay respect to our mandate. We know that Parramatta link is a link that

should be built. We have not

axed it. We've simply said it

has to be deferred. We have to prioritise and what asking the Prime Minister to do

is respect the mandate we have

, respect the fact by building

that north-west rail link we'll deliver the greatest benefit to

Sydney's road Network for all

people. What can you put on the

table to deal? You've had a no to that from the Prime Minister

and Infrastructure Minister.

Are you prepared to deal? I'm

prepared to deal as long as it is in the state. I'm prepared to deal so

we better outcome from the

Federal Government. Support for

pokies perhaps? No. We have our commitments. One of the

things despite the $4.5 billion

hole in our budget that was

revealed when we came to office, we're determined to

deliver on the promises we

made. The problem it seems to

me with the pre-commitment with

the pokies the scheme that some

Independents want in Canberra

hasn't yet been invented to

deliver the outcomes seeking. The fact is that we

have a large number of clubs

across this sit a stand to do

what they're asking to do I understand the technology

doesn't exist and what I

from my own life is that you

want to cut down your food, do

something about your drinking

or gambling problem it has to

tart in mere first. You can't

rely on somebody else doing it

for you. Don't you worry about

problem gambling.

Absolutely. What do you think

should happen. Is it

completely up to the people for instance manage to

drink responsibly. There are a

small number who don't and we

should do everything we can to

assist those people. Our clubs

provide an enormous range of

services. We're about to have

Anzac Day and my local club

will host the Dawn Service but

will feed people that day by

the use of volunteers in their

kitchens with food for nothing.

We should be aiming at those people who do have problems

have problems are the people

themselves or commit to are likely to exclude

pre-commitmentment we need to

focus on them. There is a

perception you're in the pocket

of the clubs, particularly if

revenues they raise for the you look at not just the you look at

state but before the election

you agreed to tax breaks fon

poker machines. We sensibly

agreed to breaks breaks, because, for instance, since

Labor ratcheted up the taxes on

the clubs movement we've seen

jobs lost. $6 ill million

profit from junior rugby league

groups has been curtailed. because the capacity of club to

What I know is that clubs and other organisations not-for-profits spend money

much more effectively than

we saw that State Government ever does and

we saw that best in this state

in relation to the BR. In

exchange for a $2 70 million

tax break, we get almost the

same money back into community

groups into sporting facilities and into social service across

our state. You're not going to

agree to these poky reforms and

intd, that if there's no the government has an agreement

agreement with the states by

the end of May, they legislate. The Federal Government doesn't

control gambling. It has legal

advice it has the means to do

it to force the change on the

states. Do you acknowledge

that legal advice? I acknowledge they may have

advice. But I acknowledge that advice is simply that it will tested in the courts. If the legislation goes through you

would challenge the validity of

it. I have no doubt I would be by the Federal Government to

ledge lay late into areas that

have always been the areas of

State Government. Have you

talked to the other premiers

about a challenge. One of the

issues we're supposed to be

have is a tax summit. One of

the taxes is not just the GST,

but these sorts of taxes which

do have an impact on state revenues. That would bring down

a Labor Government? No. What

it would do is test a Labor

Government's legal advice. The worst sort of government you

have is what we have in

Canberra currently where you

know doubt have a Federal Labor Government that had intentions at the election

that's limped back into office

and is now beholden to the sort

of minority interests we see

there. A green, an independent

renegade conservative from Tasmania, and a couple of

Independents in NSW. That's

the bed they've decided to get

into. It is the bed that they

they're going have to decide whether or not

you support the ads currently

on air and done the... I

support the rights of the clubs movement or any other

stand up individual in this society to

stand up for themselves. Are

they misleading, those adds.

We don't have the details of

these measures. These adds

claim you'll feed a licence for gamble The clubs

gamble The clubs movement in

NSW in particular is dealing

with a Labor Party in this

state has forced many clubs out

of existence, many clubs merge, tens of thousands of

jobs lost and money ripped out

of the voluntary sector in NSW. It is why the It is why the clubs minister

doesn't trust the Labor Party.

The president of the Randwick

club has said they would

to support these support the effort of club NSW

proposals. Would you end up in

court and be happy to lead that

charge? . We would seek to defend the proper governance

roles of the states. We'll by the filledal government but very clearly we'll continue to

problem do what we can to deal with

problem gamblers across NSW. Health reform is another

key issue. The federal health

minister Nicola Roxon said

after the election after the election she would be

very happy to meet you. Have

you had that conversation. No.

She has been in conversation with Jillian Skinner. We said

we would look at the details.

That's being done now to ensure

that the heads of agreement met

deliver that better deal that was talked about and frankly

what I was arguing during the

State Election campaign was ha

other premiers have gone away and done. Where are standing right now, support or

not support? We're happy to

support an agreement that delivers better outcomes to

NSW. You can't say this one

does. As you know the

treasures last week discussed

the efficient price on which

this agreement hinges, unless

we get some shape around that

efficient price we don't know hospitals are going to be worse whether regional

off whether they need to be

deal is supplemented and how this new

deal is going to work. We

under stand the need to deliver better health services in We're happy to work with the better health services in NSW.

Federal Government to do that.

We're happy to sign a agreement

to delivers that but we're not

going to sign a agreement that

doesn't blifr deliver the

for cigarettes should Tony benefits. The plain packaging

Abbott support the Government's

move on that? We said during

the campaign that we supported what was being got a discussion paper in NSW about further tobacco restrictions. There needs to

be an orderly process in this. In addition to the health problems, all government are

hypocritical about this, we

know that smoking causes

cancer, cancer causes death but

nevertheless we all seek to

regulate not outlaw tobacco

products, but there are people

out there whose livelihood, I'm talking about corner stores,

not the big outfits, who need going to be made there should to

be some orderly process to

adjust their affairs. Do you

have a difference of condition

with Tony Abbott on that. I'm

with Tony Abbott. sure we'll have differences

with Tony Abbott. I'm the

Premier of NSW. I'll stand up

for the people across NSW. Tony wants to be Prime Minister and as Prime Minister of the

nation he has to weigh up the

interests not just of NSW, Western Australia

Northern Territory and other Western Australia and the

starts and territories. You've

got very different styles. We're both Liberals,

both members of division of the Liberal Party.

He's a better athlete than I am

by far. We share absolutely

the same fundamental beliefs. My approach will be collaborative because that's

what shoes NSW. Do you think

his is not so

collaborative. Tony operates in a different environment which

is pretty brutal, a different

environment in which one slip by the government can see hopefully the election of a Liberal-National government in

exchange. Different types for

different sixes. I think Tony

is absolutely up to the task.

I think Tony can be a a good

Prime Minister of this country and he certainly has my support. Barry O'Farrell many

thank for joining 'Lateline'

tonight. Thank you, Ali.

A $600 million agri business proposal by a company

associated with former

treasurer Peter Costello is facing opposition from Cambodia who claim it will

disrupt a significant wildlife

corridor and put endangered

animals at risk. The company

behind the banana plantation

and reforestation pro jest in

Cambodia's Cardamom Mountains

says it will be sustainable and providing jobs and generating

much needed export income.

There's concern about the

location of the project on one

of the last unbroken forest

corridors in the region. South-East Asia correspondent

Zoe Daniel reports. It an hour by chopper from the

Cambodia capital to the

Cardamom Mountains. and then Rice paddies stretched

from the city to the foothills.

But the mountains are But the mountains are barely accessible by road and part

from illegal timber cutting,

these forests have been re generating since they were last

logged more than a decade ago.

Why is this area so important?

It is very important. It is

the last link between these two bodies of forest With its own

rangers and government backing NGO Wildlife Alliance has been

protecting the area from

illegal set at this timing and

logging. The founder Suwanna Gauntlett is oppose Australian

Gauntlett is oppose the

Australian proposal for a 5

thousand hectare banana plantation and 20,000 hectare

reforestation project. Theish the issue is the The company planning there's no Forrest of value on

the site but unbroken tree link

between the two mountain ridges

is clearly visible from the

air. The southern Cardamom Mountains have been selectively

logged in the past, but the

area said to be one of only 7

unbroken elephant corridors in

Asia and the planned plantation

is right on it. According to

environmental groups, the

increasing number of land concessions granted for concessions granted for farming nearby mean Asian

turtles and crocodiles are all strug getting for happen at

that time. Despite obvious signs of prior clearing, activists see this as a

sensitive area that's slowly

recovering. As you see, it is

a Forrest with grass land and

bushland. It was indeed a former logging concession. Plans for a high-tech drip irrigated

plantation to export bananas as

well as a replanting project to

give migrating elephants a pathway have so far failed to win support from critics. That reforestation they're talking

about doing alongside the

banana plantation is also where

the company says the elephant

corridor will be moved to. My

first answer is no because that

is a populated area and

elephants will not migrate and

move through a populated area.

They won't. Would it be fair to say that it is say that it is the location

that you have a problem with,

so no matter what safeguards the company put still won't be happy with the

location that they've picked?

I think you've summarised it exactly. Elephants are already

increasingly in conflict with

humans in Cambodia. A few like

this female lucky, are in the

care of rescuer nick Marx. She

was being attacked by village people for roaming through

their small scale banana

plots. She had serious battery

acid burns on her head because

they were trying to get rid of her, throwing

on her. Plans to divert el fapt

as way from the plant

land which vol plantation by re Forresting

not work. More and more el

fapts are going to come into

conflict with humans. PKK

partners is a corporate and financial advisory service with

expertise in areas such as

foreign investment and

governance. Former treasurer

is listed as managing director and partner. The

an office in Phnom Penh which

it is advising developing the

$600 million agri planning the plantation. Our

requests for an interview were

declined. The company also

involved in the project, denied that Mr Costello is

promoting it last year. One of although he was in Cambodia

the things that BKK does is it

is managing an

inn know China capital gateway

which is raising funds for a

very major agricultural investment here in Cambodia. He

gave this interview to the

Phnom Penh Post which is still

on the newspaper's website. BPP

has established a presence here

in Phnom Penh. We have a full time resident director. Cambodia desperately

needs economic development to

increase the standard of

living. The company says the banana project

to 7,500 jobs. But when we

visited these local villages

they were still unsure whether

the impact will be positive. They hunt and for ridge in the Forrest to

survive. TRANSLATION: Also,

we can't raise animals in the

Forrest like ous and Buffalo.

If we laz hour land this is our

big concern. This man told us

other developers have promised

jobs at their sugar cane

plantations on the Forrest

edge, but initial soon cut. TRANSLATION: The company provides people with

jobs, but they don't last long. jobs, but they don't last

At the beginning wages are

good, but sooner or later the

amount paid goes amount paid

down. Potential Chinese and

Korean investors have visited

this village, but the people

say no one from an Australian

company has been to see them.

Departing the area we fly over

clear felled land being prepared for sugar cane

plantations just outside the

boundary of the boundary of the forest reserve.

Indo China gateway submitted a formal application to develop

the banana plantation in

December and is now awaiting a permit. To the weather, rain

easing in Hobart, a few showers for Melbourne and add lad,

partly cloudy in Sydney,

Canberra and Perth, an

afternoon shower or storm for

that's Darwin, fine in Brisbane. And

that's all from us. If you'd like to look at tonight's interview with Barry O'Farrell

or view any of 'Lateline'

stories or transcripts you can on Twitter and Facebook. Tony visit our website and follow us

Jones will be here tomorrow.

I'll see you again on Friday.

by CSI. Good night. Closed Captions

This Program is Captioned

Live

Good evening, well Tom to

late Lyn business. I'm Ticky

Fullerton. Tonight's all the margins. Shell plans to

close one of its Australian

refineries. The real issue is

refining margins which have

steadily been decreasing over

time and basically it's not

really a highly profitable

business to be in these days. The IMF downgrades

Australia's growth projections

to 3% and warns soaring

commodity prices and commodity prices and rising

inflation are the big concern

for the growth of the global

economy. Instead of the world worrying about who is the next

country that's going to fall

over, I think what we're seeing

people are saying hang on,

we're more worried about

inflation now. After two years

of heavy losses, Holden is back

in the black. This company has

turned around in a relatively

short period and the benefit

for the workers is certainly

going to be in the area of job

security. To the markets where

it wasn't a pretty day. The

all ordinary fell as the shine

came off mining and energy

stocks. Australia's expanding

reliance on overseas fuel is

planning to close one of set to increase. Shell is

Australia's oldest oil

refineries at Clyde in Sydney's

west. The source of some 40%

of NSW fuel supplies and 10% of

the country's. The oil giant

says it simply can't compete

and will turn it into an import

Robertson. It might be an terminal.

eyesore, but shell's Sydney oil

refinery has been keep

nearly 100 years. Time and Australians on the move for

changing market conditions have finally taken their toll. This

proposal is the result proposal is the result of

increased competition from new

mega refineries in Asia.

Supply and demand in our region, and Clyde refinery's

small size. Shell e's Clyde refinery processing about

75,000 barrel of oil a day

which is about 10% of

Australia's needs. Much of

that refined product is sold

through its 800 Shell branded

service stations and 600 Coles

Express stores. But it is a small refinery by world

standards and is in need of

major investment which is why resources analyst Gavin Wendt

is not surprised Shell wants to

close it. The Australian

refining industry is pretty

much symptomatic of worldwide. The real issue is

re refining margins which have

telly been decreasing over time

and it is not really a highly

profitable business to be in

these days. For the man who heads the NSW Service Stations

Association, the real surprise

is that Clyde has been open so

long. The last time Shell did a

big review of this kind which

was in the early part of the

2000 decade, 2002, 2003, it very much an iffy proposition

then. That was in response to

the need for investment

the need for investment for

higher fuel standards which it made but with

about whether or not more firn

cease could be made at the refinery. On that point, Gavin

Wendt says refineries in places

like Singapore, which is where

Shell will replace the Clyde

output, with much more advanced

than those in Australia.

There certainly wouldn't be any

problems, any issues, with Australia from Singapore.

Indeed, a significant amount of

the petroleum that the people

put in their cars now already comes from Singapore. 'S

proposal to close its Clyde refinery means Australia could be importing up to 50% of its

petroneed which raises the

issue of fuel security. That's

something the service station's

association lay squarely at the feet of the Federal Government

saying it is up to Canberra to business will want to

invest. The more we talk down

pricing rather than talking up

pricing, the more we're going

to see people withdraw. We've

already seen Mobil withdraw

from fuel retailing. We're seeing Shell withdraw significant from fuel refining.

Mobil closed down its Port Stanvac refinery. Ron Bowden

says the more fuel Australia imports, the more it to its whims. We're going to have to compete with motorists

in Hong Kong, Shanghai, in

Delhi, all over the world. We no longer have for Ron Bowden means only one

thing and that's higher prices.

For now, though, 300 people at

Shell's Clyde refinery are wondering how much longer

they'll have a job. A a tough

few years with the Global Financial Crisis the International Monetary Fund says the world wide economic

outlook is now

Its latest assessment of world

economic prospects shows

emerging economies continue to outstrip developed countries with China and India leading

the way. The US and Australia

have having their forecasts

revised down. The IMF says

soaring oil prices and

inflation ine merging economies

focus new risk in emerging

economies. The world economy

seems to be getting back on

track. For the world economy,

for both 2011 for both 2011 and 2012 we

expect growth rate to be 4.5%, a fairly high growth rate. The

IMF is forecasting a big difference in growth difference in growth rates for the developed and emerging

economies. Developing countries

countries are forecast to grow

by 6.5%, but advanced economies

are expected to grow by just

2.5% for each of the next two

years. The world's biggest

economy, the US, is expected to expand by 2.8% from its January forecast of

3%. The IMF says developed countries need to continue with

the implementation of fiscal consolidation plans. To do so

and to maintain growth, they need to rely on increased

external demand. Emerging

market countries must rely less

on external demand on more on

domestic demand. The IMF has

cut down Australia's economic

growth outlook for 2011 from

3.5 to 3% due to the impact of

the summer floods in key mining

and agricultural regions. The

NAB is predicting even lower

growth of 2.5% but says slow

growth early on will be offset

later in the year. What you

have is a combination of very

high commodity prices that

essentially flow through in

terms of wealth to all

Australians after about 12 months. You have very increases in investment in

mining and you have the rebuild

that's going on in Queensland.

The longer term story for Australia is still very strong

and we will certainly produce

an outcome which is as good if

not better than just about

every other advanced economy.

We've got this challenge, if

you like, short-term softness, but long-term strength. Recent

events in Japan are expected to

have a minimal impact on Australia's and the economy. The IMF is more concerned about the higher

growth rates expected for growth rates expected for China

and India of around 9%. Instead

of the world worrying about who

is the next country that's

going to fall over, I think

what we're seeing is people are

saying hang on, we're more worried about inflation

now. The IMF says now. The IMF says inflationary

prersers are likely to build as

growing production comes up

against capacity constraints. Fears have also turned to commodity prices which have increased more

because of strong demand in a

number of supply shocks.

Economists say high oil prices

would only take about point 3% continue at the current off global growth if they

rate. You're not really talking about sufficiently negative

outcomes from oil to basically

derail this recovery

process. The IMF wouldn't be

drawn on whether measures to

economies of Ireland, stabilise the struggling

successful, saying it was still and Portugal have been

too early to tell. Two of the

big ratings agencies have put Leighton Holdings on a possible yesterday death

downgrade. Leighton's shocked

the market yesterday with the

sheer size of the turn around

in fortunes. Cost overruns and

write-downs were blamed for

losses that will total $427

million for the year. Moody's

says its outlook for the

company is under review

Standard & Poors put Leighton

Leighton's proposed any of implications. on credit watch with

capitalise?ing will strengthen

the balance sheet but will

affect the company's funds to

debt ratio. Shares in have been placed in a frayeding

halt and are scheduled to

resume trading on Thursday.

One of the world's largest

uranium producers is suspending processing operations in the

Northern Territory until late

July because of continuing heavy rain. Energy Resources

of Australia announced in January that it was shutting

down the processing plant at the Ranger Mine inside Kakadu

National Park. The company

says the continuing wet season rain means the tailings dam is

still close to capacity. It is still close to capacity. It

extended the ex suspension of

processing plant operations for

another three months. ERA says

there's a large volume on the water in the mine and there's a large volume of put

operations in the pit have also

ceased. The company is

expected to post half

overlosses of up to $50

million. Lots of red on local market today. Earlier I spoke to Marcus Padley from

Patterson securities. Oil and mining stocks have taken a battering. Is it a major

re-think or a bout of profit

taking? I don't think we can

call it major yet, but the

resources certainly got it in

the neck today. The sector was

down over 2%, whereas things

like financials were down less

than a%. Very much a resources

thing. I don't think the IMF downgraded Australian growth, stuff overnight

started talking about it the

Asian or emerging economies

being potentially overheating,

I don't think that did too much damage. S it was probably down

to the Japanese upgrading their to the Japanese upgrading their nuclear disaster another notch

to churn levels actually and I

think also there's a fair bit of commentary about the Aussie

dollar at a record high, the

oil price 2 and half year gold price record high,

everything priced in US dollar

is at a record high which is

more to do with the US dollar. The Aussie dollar The Aussie dollar peaked, the

oil price and gold price peaked

overnight. We're bouncing up

on the highs we've seen since

the GFC, this was a really

important level that we fail at

or go through and we've failed

at least today. I see a number of miners have issued

production reports, Fortescue met and and Iluka. Fortescue

were down 3.68%. Iluka 6.2%.

Fortescue were chaining

Fortescue were chaining about flooding in the Pilbara which

dropped shipments by 16%.

Iluka saw mineral Sans up 51%.

I don't think either of those numbers have had too up impact

on those particular stocks.

They've just got caught up in

the resources malaise. We've

got Rio's numbers tomorrow, production

got BHP's next week and a whole

host over the next couple of

weeks. There's talk of building

company Austco Limited coming

out of private equity

ownership. What do you make of

the timing. The timing is more

to do with the private equity

group needing the money. It is

not bad timing. They provide

modular housing, they've got

12,000 units and presumably trying to take advantage of a long-term particularly

resources projects in this

country and although they don't appear to be in control of the

timing, the timing is pretty

good. Some of the pest

performing stocks in the market

have been these accommodation

providers, in particular

Fleetwood Corp is up from $3 to

$13 in two years and a Perth based accommodation provider

Deckmill is up from 12 cents to

years. A hot sector, good time

to be listing it. At the same

time, building products firm

hasty group has shed three

quarters of its value? Yes, it

has. Haiti we've seen down

over 70% today. They were 2

2.5 cents. They're down to 2

cents. They've had trouble

with lenders. They've signed a new syndicated facility and standstill agreement until 1

August while they try and find

other backers for the company. They air-conditioning and refrigeration into supermarket

and service contracting on the

back of all that. They seem to

have got involved a lot of

projects right at the top of

the market free GFC with a lot

of debts and small margins and

they're paying the price

now. Thanks for joining us on

'Lateline Business'. The to

the other major moves on the local sharemarket now. Positive news Positive news for tollroad

to operator Transurban. Its

shas rose after reporting

double-digit growth in revenue

in the March quarter. Turning to the currency markets, the

dollar has taken a bit of a

battering against both the yen

and greenback. On to the

commodity markets now, and in

New York, oil dropped New York, oil dropped to below $110 a barrel. As we have heard, world growth is recovering and

there's evidence of this on the

shop floor. Real estate

adviser CB Richard Ellis

released its forth annual

survey today mapping the global

store footprint of 323 of the

world's top retailers across 73 countries. While conditions are challenging, store networks

continue to grow. Joining me

to discuss the findings is

Kevin Stanley, head of research

for Australia-New Zealand at CB Richard Ellis. Welcome to the program. Thank you. Australia

has slipped two places in your

survey this year. It is not

the hottest property for

expansion of global brands is

it? It is not at the top of

the list. We're roughly in the

middle ground in our list of 72

countries. It is not we

in the world have grown more in

Australia in terms of their

presence of global retailers

of, places like India, bazaar

and the Middle East. Retailers

have been spreading into these areas where they see a lot of