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(generated from captions) fallible, perhaps some are more

misquote George fallible than others, to

misquote George or well, but I

wonder if that is a test of

head of state? They are not

chosen according to blood lines less fallible if they are

rather than merit. There have

been dysfunction al politicians

over time. But you get to vote

them out. Craig Reucassel? I

think it's ridiculous to

suggest you get better

character by having a

hereditary line. There are so many can't believe we are saying it

is a way to get somebody of

good quality, rather than

good quality, rather than vote

someone in, or by two-thirds of the parliament. Amanda

Vanstone, do you essentially believe that the royal family

is better than ordinary

Australians, better people

somehow? I don't think that

comes into it. They are wonderful people and so are

millions of Australians. But

more worthy of holding a constitutional role in the country? The Queen constitution, as I described

before, the appointment and

dismissal of a Governor-General

who is our head of state. who is our head of state. The

only argument the poor old

Republicans have is the furphy

that we have to have an

Australian head of state, which

we already have, the

Governor-General, and the model

Bob Carr puts up is the one the Australian people overwhelmingly rejected not

that long ago, and they still

can't come up with a model that

Australians will vote for. That's all we have time for tonight. There's thank our

panel. APPLAUSE

Thank you very much. Next

Monday, we willing back at

9.35, with Q&A broadcasting

live from Albury Wodonga, so

please join us on Monday night,

when regional Australia asks

the questions on Q&A. Closed

Captions by CSI. This Program is Captioned

Live. Tonight - wedding fever

revs up. I think on this

occasion we are looking for a

wow factor, and I'm quite sure

we'll get one. And the Prime

Minister jets in to a security

lockdown in London. We are

confident that we have a plan in place to eventualities on the day. Good

'Lateline'. evening. Welcome to

'Lateline'. I'm Ali Moore. While the Prime Minister will

be rubbing shoulders with royal tomorrow night, her arrival in

London marks the end of her first prime ministerial visit

to northern Asia. On that

test of Australia's trip, China was the crucial

balance the realities of closer economic ties with Beijing and

our long-standing alliance with

the US. The Prime Minister

left Asian airspace calling for closer defence tieses with Beijing, raising questions

about what exactly that could mean for Australia's

relationship with both the would-be dominant military

current one. power in the region and the

joined by Defence Minister Stephen Smith, who's just seen

firsthand Australia's progress

on another challenging on another challenging front, Afghanistan. First our other headlines. Healing wounds -

Victoria Police work with the

Sudanese community to help

young immigrants a lust to life

after war. The paparazzi and the palace, how the palace, how the

relationship between the House

of Windsor and the press has changed since the death of

Minister, Julia Gillard, has Princess Diana. But first to

just arrived ahead of representing Australia at

tomorrow's royal wedding. For

the latest on her trip, we're joined by Philip Williams. Phil, there's

just under 24 hours to go until

the wedding. What's Julia

Gillard going to do in the

interim? Well, there are some

calls to make, some official

calls. She's going to go to

number 10, visit the Prime

Minister, David Cameron. Minister, David Cameron. No

doubt there they'll discuss the

wedding, I'm sure she'll pass on her best wedding, I'm of course. I'm

wishes. There may be time for

subjects such as Afghanistan and shared interests and shared concerns in other places and hot spots in the Middle East.

Then she has tonight a private

dinner with Ed Miliband, the

leader of the Labour Party

here. Perhaps there she might

pass on some hints on how to

remain in government remain in government with precarious majorities. He's a

long way off that, so he may be

looking for some hints from

her. I understand she's not

Prime Minister is going to meeting the

Clarence House. That's right.

Yes, to meet Prince Charles, of

course. No doubt, again, the

main topic of conversation

there, what else could it be

but the wedding. It will be a wheel-in, wheel-out affair,

because he's shaking hands with

many dignitaries today. She

won't have much time, but she

will, of course, pass on her

very best wishes for the big

day. Do you think she'll have

for the Chaser team. I'm time to perhaps go in to bat

pretty certain that topic won't be raised at all. Surprise

surprise. We're talking about

quite a the wedding. There has been

change to the guest quite a serious last-minute

change to the guest list.

There has been. The Syrian

list, because simply it's ambassador was on the guest

protocol he should be invited,

not because they love the

ambassador. However, who

wasn't on the guest list, Mr

Blair, Tony Blair, former Prime Minister and Gordon Labour former Prime Ministers.

They weren't invited. A simple

protocol reason for that, they

are not knights of the garter, whereas the previous two

conservative Prime Ministers

are and they were invited. So

that disposes of that

particular conundrum. Given

what's happening in Syria right

now, of course great

representative of Syria is embarrassment that the

being invited to this occasion.

He's just been uninvited. He

by it, but the Foreign Office says he's

says it's not appropriate for

the invitation to continue. How

did it get out there in the

first place? Well, these

invitations were sent out of course before the trouble

developed, but you might have

thought that even a couple of

weeks ago they might have

quietly slipped a note saying,

"Sorry, you can't come." It has come at the last minute.

It's been picked up by the

newspapers, outrage, horror,

this shouldn't be happening,

and what do you know, less than 24 hours he's uninvited. Last-minute

security preparations and the rest, we can see behind you

things are fairly busy. What's

the atmosphere like? It's very festive. People are determined

to enjoy it. Yes, there are

security concerns of course.

This would be a major terrorist target if they could get through, the police very

determined that they won't. Basically people are looking

for a great day, a great

festive occasion and a day

off. Philip Williams, not for

you, many thanks. Not for me,

thank you. A rural firefighter

from the Queensland town of

Grantham says his family could still be alive still be alive if authorities

had heeded his warnings to

evacuate. McGir ease wife and

two of his children were killed

when a wall of water tor

through the Lockyer Valley in

January. Now he's looking for

answers. Francene north answers. Francene north on orps were Toowoomba. Danny

McGuire says he'd been gagged from speaking out If I can't get up and speak, they're hiding something. Among

the tales of sorrow and loss,

Danny McGuire's is one of the

most tragic, losing his most tragic, losing his wife,

his eldest son and only

daughter in Grantham. But he

says it all could have been avoided if authorities avoided if authorities had

listened to his warnings to

evacuate the town. All we

would have done was lost, you

know, houses and that and cars,

but we would have saved lives. Danny McGuire says he was sentionly forced into

lockdown in the weeks after losing losing his family. Now he says the fire service has asked him

to resign, but he won't because

his community needs volunteers

like him. Mr McGuire's

evidence to the

been put on hold. In the mean

time, he and his seven-year-old

son Zach are waiting for a son Zach are waiting for a new

home. He thinks when the new house comes, mum and Gary and Jossy

Jossy are coming home, and that

one I don't know how to

handle. The inquiry has heard

from the Lockyer Valley mayor,

Steve Jones, who defended the having no designated evacuation

centres for the entire region.

Most planning is around the normal sort of disasters that you would you would expect. He believes

local authorities need a major

injection of funds for future events. What has happened in

this case, this disaster, let's

be honest about it, it's not

only beyond the resources that

we would hold, it's beyond the

resources of the State, and

that was evident in the fact

that they called in the Defence Force. The inquiry continues tomorrow. tomorrow. A recently retired Catholic bishop has become the

most senior member of the

church to admit to inappropriate

inappropriate behaviour. In a carefully worded statement, Christopher Christopher Toohey says his

behaviour with young adults in

his pastoral care was not consistent with that required

of a good person. The

statement does not detail the

behaviour, but states it

happened during the early years of

of Christopher Toohey's

ministry. The Catholic Church

says there was no criminal

behaviour. In 2009, Pope Benedict sudden resignation of

Christopher Toohey as bishop of

Wilcannia Forbes in the NSW far

west. An Afghan Air Force pilot

has opened fire on international troops at the

Kabul Airport. Eight US

soldiers and an American

contractor were killed. It's

the 7th time in 12 months that

an Afghan soldier has turned

against his coalition partners.

ABC correspondent Sally Sara reports were Kabul. The

shooting happened in a supposed

ly secure military complex at Kabul Airport. The eight US

soldiers were meeting a group

of Afghan Air Force officers to

discuss training. All of the men were armed with

hand guns. The 48-year-old

pilot, a 20-year veteran of the

Afghan Air Force, got into an

argument with the Americans.

He began shouting and

eventually stormed out. A few

minutes later he returned with

his gun drawn. He ordered his

US and Afghan colleagues to

drop their weapons and line up. He He then opened fire. The eight

US soldiers and one US

contractor were killed. Five

Afghan officers were seriously

wounded. The pilot then turned

the gun on himself. The

shooting created shooting created panic around

the airport. No-one knew what

was going on, except for the

fact sirens were going off and

people were being herded into hardened buildings and told there was a situation. Afghan

defence officials say the pilot

was suffering from mental

illness. The Taliban claimed responsibility for the

incident, but Afghan defence

officials say there's no

involvement. This kind of

incident can undermine morale

and the sense of trust between

Afghan and coalition forces.

It comes only three months before Afghan before Afghan police and army units are scheduled to take

over responsibility for

security in seven districts

across the country. Now, across the country. Now, more

than ever before, cooperation is vital. Afghan President

Hamid Karzai has condemned the

killing and ordered an

investigation. Now to our guest. Defence

Stephen Smith has just returned from Afghanistan, where he

spent Anzac Day with Australian

troops in Oruzgan province. He

joined me a short time ago from Perth. Stephen Smith, welcome to 'Lateline'. Pleasure. You've just returned

from a two-day visit to

Afghanistan and you say that

it's clear progress is being

made on the security yet while you were there, some

488 prisoners, many of them

Taliban, escaped from a jail in

Kandahar, and just last eight American soldiers were

shot dead by an Afghan Air

Force pilot at a NATO training

centre. You'd have to have

your doubts, wouldn't you?

Well, it's clear that we've

made considerable progress in

Oruzgan Province in terms of

security advances. It's also clear that's the case

throughout the rest of the country, but it's also clear that there

and there will be setbacks and

there will be adverse

incidences like the ones you've

described. We also know that this will be a tough summer

fighting season. The Taliban

will strike back and try to recover ground, but they recover ground, but they will also, we know, try to use

high-profile incidents, again

like the ones you've described,

the prison escape, but also the

attack upon the Ministry of

Defence in Kabul, also the assassination of Police Commissioner,

high-profile incidents to essentially use as propaganda

events to undermine confidence.

So there's a long way to go,

but I believe we've got the

strategy, both the military and

political strategy, in place to

make progress and the resources

to match it. Do you believe

that the allied forces are

still on track for a 2014 transition to an transition to an Afghan-led security force? Certainly in

very good progress with the 4th Brigade of the Afghan National

Army. We will also, in the

middle of this year, take over the training ing

responsibility, taking that

from the United States. We've

been able to do that largely

because of making up further ground,

ground, but also transferring

responsibility to bases, patrol

bases, to the Afghan National Army itself and also to the

Afghan National Police.

for a transition over the next

couple of years, 2013, 2014,

and all of the conversations I had with international security

assistance force commanders

leads us to the same conclusion

so far as the rest of the

country is concerned. It won't be

be an even process. It will be

district by district, province

by province. We very much welcome the fact that President

Karzai in March announced the transition of the first tranche

seven provinces or districts.

That's a good thing. We're on

track in Oruzgan, also a good

thing. There's still a lot

more work to be done, not just on the training on the training front, but also on the capacity-building and

development assistance and services to local communities.

That's a very important part of

the political strategy now. I

take your point that it might

not be an even transition, but

if I can put to you some

analysis by John Bolton, former US

US ambassador to the United

Nations. He says in

the US withdrew units from the

long-contested person valley.

They transitioned to an Afghan

Government force there and two

months later alkida units were

back, establishing training and operating bases.

operating bases. That's not

promising, is it? Well, again,

we know that as a strategy, the

Taliban, the insurgency, will

try to undermine confidence in

areas where there has been a transition. We also know that there's no point, as Prime Minister Gillard has said,

transitioning out early just to

transition back in again. But

we also know that it will be uneven and there will be

setbacks. So we have to accept

the fact that in some areas

where a transition occurs, the

Afghan National Army, the

Afghan National Police, will be under some considerable

pressure. That will be done

deliberately. That will be

done deliberately by the Taliban. When the with draw troops in just two

months, President Obama is yet

to say how many, will you be

urging them to remove as few as

possible, as few as possible, as few as is politically palatable? Well,

the United States

Administration is still working

through the detail of the first

part of its drawdown. But I've never seen an in consistency

between transition by the international community

timetable of 2014 with a front it's best to wait to see

the details of what the united

State proposes. But, as we

know from our own experience in Oruzgan, as circumstances

change, you're able to allocate

resources differently. So as

we have taken more ground,

stopped the Taliban momentum in

Oruzgan and been able to hand

over patrol base responsibility

to either the Afghan National Army or to the police, that has

freed us up to do other things,

particularly on the training front. The same will be true

of United States of United States forces. Won't

it depend how many they

withdraw? Well, it will be

both quantity and quality. We know, for example, that United

States still has resources in Afghanistan, which has

essentially been back of office, so to speak, or back-up

to the surge which came just

some 12 months ago. But I

think on this matter it is best to wait until President Obama

and the administration announce

the detail of the start of

their drawdown in the middle of this year. Of

made it very clear you don't

see any drawdown of Australian

troops over the next, the quote

is 12 months to two years.

That's quite a different time

frame if you're on the ground

or there are families at home.

Do you think this time next

year, which would make it 12

months, we'll start to see some of those Australian troops brought home? not proposing to speak in those

terms. What I've made clear is

that we have our, on average,

1550 complement. That's been

the case since April the case since April of 2009, when this Government increased

it from an on average 1100. I

am confident that over the next

couple of years, sometime

between now and the end of

2014, we will effect a

transition into Afghan-led

responsibility, both the police

and the army, in Oruzgan. But I'm neither anticipating nor

predicting any drawdown of our

contribution over that period

of time. What we do know is

that we have made it clear that

once the transition occurs, we

expect that we'll be there in

some manner or form. Now, it

may be special forces, it may

be over watch, it will certainly be capacity-building, institution al building,

perhaps niche training. But

we've got a long way to go

before we work through that. But our presence will be there

in its current formation until

we've done the training and mentoring and transition job

and thereafter we expect to be

there in some form, but we need

to work that through, not just with our international security

assistance force coalition, but also in our own way. Minister,

if we can change subjects for if we can change subjects for a moment. The Prime Minister has

now left Beijing, about you in her

her final talks with Chinese leaders, she spoke of wanting more defence cooperation with

China. What does the

Australian Government have in

mind? Well, we have had for a period of years period of years a strategic

defence dialogue on an annual

basis with the chief of our

Defence Force and secretary of our

our department together with

the chief of the general staff

of the PLA. That will continue

and that's a good thing. We

also have high-level dialogue

on a regular basis. I, for example, met

Minister counterpart in Hanoi.

He and I have agreed that I

will visit China in the second

half of this year for a Defence

Minister's dialogue and last

year we saw the visit to

Australia for the first time of

the vice chairman of the Chinese military commission, General Guor. Also, in

September of this year, we've

had essentially naval exercises with Chinese with Chinese sailers on an

Australian vessel and live

firing exercise. Given all

that, what more could be done?

More of that can be done on a

regular basis. We'd like to see, for example, more regular

naval exercises. The

increasing regularity of the

high-level talks, essentially

in our perspective we'd like to

have annual ministerial

dialogues in addition to the

Chief of the Defence Force and

the chief of the general staff

of the PLA talks. Is Beijing

resisting that? No, no, this is a developing defence cum

military cooperation relationship. We have a positive and constructive

relationship with China.

relationship with China. It

started economically. It's now

broader than that, and it's a

very sensible thing for us to

develop these relationships and also to effect further

practical ex-sideses. It

minimises the prospect of mis adventure adventure or miscalculation and it's a very sensible thing for

us to seek to enhance our

defence cooperation

arrangements with China. Julia

Gillard has made it

the China versus US proposition

is not, in her view for Australia, a case of either/or,

but when China does become the

dominant military power, as

Australia's own defence white

paper says that it will be by a

considerable margin, and the US

wants to maintain its

in the region, what then?

Well, I don't necessarily

accept that characterisation or categorisation, but

respond in this way: there is

no doubt that the most important bilateral relationship between countries

in the course of this century

will be the bilateral

relationship between the United

States and China. Just because

we see China rise does not mean

that the United States is going

away, nor does it mean that we don't rising power - for example,

India, which is also a country

of a billion people. So it's

not just the rise of China,

it's the ongoing influence of the United States and also the

rise of India. So we want

China to emerge as the Chinese

would say, into a harmonious

environment or, as Bob zelock

said when he was assistant

Secretary of State, as a

responsible stakeholder. We

are positive that this can occur, but we

also know that China has

different values from us in a

range of things and we range of things and we make these points to them publicly

and privately. But and privately. But we want

China to emerge as a

responsible international citizen which accepts

international norms and

conducts itself accordingly.

Us having an ongoing aligns relationship with the United

States which, in my view, has

never been better or stronger

is not inconsistent with us

continuing to have a positive and constructive economic and general relationship with

China. But I suppose as China's

military might grow, doesn't walking that walking that line between the

two super powers become increasingly difficult? Well,

as the Prime Minister said,

it's not one or the other, or

to use a phrase I've used in

the past, it's not a zero-sum

game. To advance our bilateral

interests and relationship with

China doesn't mean a diminution of

with the United States or vice

versa. What we want in terms

of China as a military power is we perfectly

understand and acknowledge that

as a country's economic prowess

rises, it's perfect ly entitled

to increase its defence and military assets and capability

accordingly. We simply want

China to be transparent about its strategic intentions and

I've made this point both

privately to my

counterparts and publicly, as have other Australian ministers I guess, though,

we've already seen a more assertive China, certainly

towards its neighbours, we've seen more forceful claims for

sovereignty in the south China

Sea, there are a few countries

who are relatively nerve yuts.

What if China were to decide it

wanted to take Taiwan, that would be the ultimate conundrum

for Australia, wouldn't it? I

suppose my question is is it

always going to be so easy to

remain sitting comfortably between China and America? Well, I'm

Well, I'm not proposing to

deal with hypotheses,

particularly as it might relate to Taiwan, point. Secondly, it's not

necessarily a matter of, to use

your expression, sitting

comfortably between. It is to

have an alliance relationship

with the United States, which

remains the bedlock of our security strategic and defence

arrangements and relationships

and, at the same time, to have a constructive and positive relationship and dialogue with

China, and we say to both

united states and to China,

publicly and privately, that publicly and privately, that a constructive and positive bilateral relationship between

the United States and China is

absolutely essential. At the

same time we regard the United States' ongoing activity,

ongoing presence in the Asia Pacific region as

Pacific region as being absolutely crucial to security

and stability in the region.

So far as China is and China's interests in the

south and East China Seas, we

have made it very clear, and

I've made it clear to my Chinese counterpart at the

ASEAN Defence Ministers plus

meeting in Hanoi last year,

that we expect China to abide

by and conduct itself in accordance with international

law of the sea and

international maritime norms.

We don't take sides or

intervene in what are competing territorial claims, either of

land or of the sea,

expect these matters to be

resolved amicably between the countries concerned, whether

it's China or other countries,

because China is not the only

country that has maritime

issues or disputes. We expect them to be revolved

amicably. We have about a

minute left. A couple of quick

questions. Have the myriad

reviews into the Australian Defence Force Academy begun?

We have effected those

reviews. The review by the sex discrimination under way. We expect to

announce shortly the team to

assist her. The inspector

General has started his work.

The review or inquiry into the

conduct of the so-called skype

incident at ADFA is also in

hand, and we are working through the various through the various other cultural initiatives that I have

have referred to and the Chief of the Defence Force and the

secretary of the department and

I are doing that as one. I going to say, finally, is the head of the Defence Force

Academy, Commodore Bruce Kafer,

still on force leave He's on

leave, as directed by the Chief of the Defence Force. He

will aez remain on leave until

such time as these matters are resolved. Minister, many thanks

for being generous with your

time tonight. Thank you.

Thanks very much. A series of violent clashes with police

this week has given -- has

again given unwanted publicity to young Sudanese men in Melbourne.

Melbourne. The

Premier Ted Baillieu has

weighed into the debate,

expressing his concern about

what's going on in the

community. Two men were charged after police were

injured in one incident over

the Easter weekend, the Easter weekend, but away from the headlines, the

Victoria Police and sections of

the Sudanese community are

trying to build bridges. From Melbourne, Melbourne, Hamish Fitzsimmons

reports. It's the latest in a

series of highly publicised clashes between police and

young Sudanese people in

Melbourne. Three violent

incidents in three days even got the Victorian Premier

talking. I am concerned, can I

say upfront anybody who breaks

the law will be dealt with by

the law. We have to recognise

there are problems in some

communities and they have to be

addressed. Look, I think it's

just alcohol-fuelled, just alcohol-fuelled, young people much more down to it. After the

latest incident, community

leaders do acknowledge there

are problems between young people and

people and the police. But

they say there needs they say there needs to be some understanding of the

difficulties faced by those who've spent much of their lives under the shadow of war

and violence. Most of them are

born during the Sudanese civil

war and live in refugee camps

for more than 20 years, and

when the people came to

Australia here, how to use a

gun, rather than how to educate them self using pen or pencils Most Sudanese have

migrated to Australia fled the

country's civil war, which

officially ended in 2005 after

23 bloody years. And many have

struggled to adjust. In the beginning, everything is not

easy once you settle in a

place. You don't know about

it. It's really hard, very

cultural conflict, yeah. It's

different from back where we're

from as well cht While acclimatising may have been difficult for some, community

leaders say there's leaders say there's still no excuse for thuggish behaviour

like the brawls which injured

two police. One is injured and

one is hit in his head. That

is something very clear, why we

be upset. But the Victoria

Police is working with the

Sudanese community. Bruce leads the community

engagement team in Melbourne's

north west, with one of the largest Sudanese populations in

Australia. He's running program aimed at developing leadership and job seeking

skills. There was an opportunity certainly to

enhance the relationship between the police and the community and the

community and the young people

within the area and that was something that we wanted to

do. The young men taking part

are hoping to take what they

learn here to the wider

Sudanese community. David in refugee camps about ever

coming to Australia seven years

ago. He wants to use the lessons from the program to eventually start his own business. Sometimes we need

people who learn more about

leadership so you can help out

your community, not just the

community, but Australians or

other cultures. Like other cultures. Like his

friends, Mackie also spent most

of his life in refugee camps

and recognises many in his

community have little They don't really have an

in-depth into how police

operate and so they only know

very little about the police and assume too much other

stuff, so being part of the program has taught me a

lot. This has been a learning

experience as much for the

police involved as it has for the men who hope it will take

them places. It was a

brilliant opportunity to learn a lot more about their journeys

and there's certainly been an

opportunity through the program

to discuss and learn and listen

to the has been a great learning

opportunity to have a far better understanding as a

police officer of the cultural

issues that they have and that they bring to this country. I

get to know more of the police

people and get like to know

them, because they're like my

friends. Only different is

because uniform. In this case,

familiarity may breed mutual celebrating a peace deal within

their own ranks. The rival

Fatah and Hamas leaderships

have agreed to put four years of bitter in-fighting

them and form a single

caretaker Government. It's

hoped the reconciliation deal

will clear the way for a

resumption of peace talks with

Israel. It's a great development because it means

that Palestinians can have now

a unified Palestinian

leadership, which would pave

the road for achieving Palestinian rights. But Benjamin Netanyahu, says the

Palestinian authority must

choose between peace with Hamas

and peace with Israel.

and peace with Israel. He says

having both is

because of Hamas's refusal to

recognise Israel's right to

exist. The AFL has signed a $1.25 billion deal that will

see every match broadcast live

on either free-to-air or pay TV

and online for the next five

years. All games will be shown

live on Foxtel, seven holding the rights to four

four premium matches each week.

four premium matches each week.

Telstra won the online rights

to broadcast matches on mobile

phones or tablets for the first

time. The AFL says a deal will

mean more live football on free-to-air television than

ever before, but the cost of

subscribing to Foxtel Sport is tipped to rise. It's about exploring all of the new

possibilities with digital

technology oos and about giving customers what they want,

customers what they want, live

coverage, HD, every game for the the first time in Australian

history. The AFL players

association is also pushing for

a new deal, which it hopes will

secure 25% of all major rev new streams for players. As

interest in the wedding of Prince William and Kate Middleton reaches fever pitch,

competition to capture an

exclusive image of the couple

before the big day is intense,

with a single photograph of the

bride to be now said to be

worth up to half a million

dollars. The relationship

between the press and the

palace has changed dramatically in the 14 years since Princess Diana died after being chased

through a par is tunnel by

paparazzi. As Emma Alberici

reports, some things never change. SONG: # I'm

change. SONG: # I'm your

biggest fan, I'll follow you

until you love me # Since Prince William and his bride graduated from university, just

leaving her house has been hard

work for Kate Middleton. After this episode on her birthday, she won ?5,000 in

damages in a case against the paparazzi. Earlier this month

her family were forced back to the press complaints commission

when the Princess to be and her

mother were followed on a

private day out. We've

sometimes upset the palace. I

remember when we broke the

story on Kate and William being

an item, they were skiing in Switzerland, we had a picture

of them on the ski lift and the whole headline was the girlfriend, you know, and

it was the palace got upset

about that and got very shirty

about it and they banned

from the next two picture

sessions with William. Arthur

Edwards has been photographing

the royal family for 34 years. He's been capturing shots of

Prince William since the Prince William since the day

after he was born. This is

William when he was nine months

old arriving in Alice old arriving in Alice Springs

on the start of their mammoth tour, a six-week tour of

Australia and New Zealand. I

think prince Charles think prince Charles is saying

look there's Arthur. For his

entire life, Prince William has been aware that the camera's

prying lens is never far away,

but for his bride to be it's

been a steep learning curve.

She does it like a natural and

when she talks to people, she

sort of has this great laugh.

Her head goes back and she

laughs. People like

know that she's listening to

what they're saying cht I think

that's one of the great skills

of being a member of the royal

family, when you talk to

someone, you make someone, you make them realise

that they are the most

important person in the world

at that moment. Hello, lovely

to meet you, what's your name?

The interest in Kate Middleton

is now second only to the media

frenzy that followed Princess Diana's every step. Prince

William's mother often said she

felt raped by the cameras. When she was killed in crash in a Paris Tunnel, much

of the world blamed the

paparazzi. I went to the

hospital and I managed to

into the hospital for when they

carried out the coffin. The

coffin appeared, I started to

get really upset. I

photographed it and then I

realised I had a great picture,

rushed out into the street

rushed out into the street to

get a cab and the cab wouldn't

take me, said no you're an as

assin, because I had cameras around my neck, thought I was paparazzi. That

was the reason they thought

that was the reason she died,

being pursued by

paparazzi. Since 1997, the

rules of the game have changed,

and rather than punish the

press, the palace invited them in,

in, forging relationships with

photographers, like the old

adage goes, they kept their

friends close, their enemies

closer. Buckingham Palace

realised they had to make some

changes. They just opened the

windows and let a lot of fresh

air blow in. They

that were proactive, not

reactive, and it changed -

almost changed immediately. Chris Jackson is part of the part of the new generation of royal photographers, often

royal photographers, often an exclusive guest on Prince

William's foreign trips. Today

he's just one of thousands of people

people carrying a camera at

Westminster Abbey. Well, it's

crazy, there's so many people

down here, obviously the

atmosphere is starting to get

really exciting now. As you

say, there's photographers down guys that have been camped out

for the last, you know, three

days. His relationship with the

royals has earned him many

royals has earned him many

front-page scoops, like this famous snap of famous snap of the happy

couple. It was virtually the

only full-length picture with

both of them looking directly

at his lens. You can certainly

see a glimpse of Prince William

as a future king and, as I was

saying, his diplomacy is

fantastic. Prince William

never really looks at the concentrating on who esz' talking

talking to or who he's with,

which isn't to say either

approach is better approach is better or worse,

but I think it just shows that

he takes his duties very

seriously. Try as they may, the

200 press advisers now borking

for the Palace can't stop every

paparazzi snap making it into

the tabloids. The more they

guard their privacy, the more

valuable pictures of them will become. front pages of Britain's

dailies, these pictures of Kate

Middleton leaving the family

home for the last time as a

single woman earned the photographer hundred it's

thousands of pounds. Now to

the weather. A few showers for

Sydney and Brisbane, a possible

late shower in Adelaide, partly

cloudy in Melbourne and Canberra,

Canberra, mostly sunny in the

other capital cities. That's

other capital cities. That's

all from us. If you'd like to look back at tonight's

interview with Stephen Smith or review any of

stories or transcripts, you can

visit our website. You can

also follow us on Twitter and

Facebook. Steve Cannane will

be here tomorrow. I'll see you again on This Program is Captioned Live.

Good evening. Welcome to 'Lateline Business'. I'm Ticky

Fullerton. Tonight - claim and

counter-claim, as the Federal of financial advice reforms. We see

We see a lot of favouritism

and a lot of advantage to the

union-led industry

sector, where funds are being

directed to them with little

effort. John Kinghorn fails in

his attempt to consolidate

control of RAMS rump RHG, as

shareholders win the day. It

was a kind of quasi

privatisation of the company

privatisation of the company

and the shareholders really saw

further value in it over and

above what was the buyback. And speaking of shareholders, plans to split

the Fosters beer and wines

businesses look increasingly

likely to get the nod. Each of the groups could the groups could be subject to neighbouringover proposals very

soon after the demerger,

soon after the demerger, and

that's one way to realise shareholder value. To the markets, where the US Federal

Reserve's chairman's rosy

outlook, All Ords finished just

in the red. With the ASX 200

back where it started. In

Japan, the Nikkei rose on

strong corporate results, Hong Kong's Hang Seng was also up. The financial planning

industry has slammed the

Government's latest plans to

shake up the sector, claiming

the only winners will be the

big banks and other

institutions, such

super funds. Planners say the

Government's stated aim of

providing better and more transparent advice for

consumers will not be achieved. Andrew Robertson reports. Major

changes aimed at ridding the

financial planning industry of

conflicts of interest have been well flagged since the Rippoll

inquiry which followed the

collapse of Storm Financial and westpoint. The Minister of financial services, I and the Gillard

Gillard Government are

committed to implementing

reforms in the best interests of of consumers Financial planners

see a Government with its own

conflicts. We see a lot of

favouritism and a lot of

advantage to the union-led

industry funds sector where

funds are being directed to

them with little effort. He

believes in focusing on financial

financial planners the

Government has missed the real issue from the collapse of

companies like offered financial products for

people to invest in. The Government needs to legislate

to have control over products

and for people to know the

conditions under which these

products might fail, not just

the softest target, which is

financial planners MLC is one of the biggest product

providers in the Australian

market as well as being one of

the biggest financial

the biggest financial planning

operations. It agrees product

providers need to be held accountable, but says planners can't escape the net. There's

no question the very, very vast

majority of financial planners

do the right thing by their

clients and do a good job. When something goes wrong like

Westpoint and significant

payments are being made, it's

natural that people would

question there's a perception

of conflict in there. The

Government has announced the

final shape of its reforms

final shape of its reforms to the financial planning and they include a number of

new measures. Among them, a ban on commissions for

insurance sold within

superannuation, expanding a new

form of limited single-issue

advice, and clients having to

opt into advice every two

years. The Cooper review of

the superannuation industry had

recommended a one-year opt-in,

but even at two years, small financial planning

nightmare. I've got one

assistant. We're going to have

to mail out to around 300

clients. A lot of those clients, even though they're

happy with the happy with the service, just by their human nature won't return

the forms, so it will be mailing out, following up,

probably following up again.

It's just about a full-time job for another person. Damian

Cullen runs a single-person financial financial planning practice in

Sydney's inner west and says

Sydney's inner west and says

his biggest gripe with the

opt-in system is that it's

unnecessary. Clients can opt

out any time they want.

They've always been out any time they want. We can

be sacked at a moment's notice.

All the client has to do is

write a letter to the fund managers and we're

sacked Richard cliffen is head of association of

financial advisers, a group representing 7,000 financial

planners. He believes the

reform burden placed on small

reform burden placed on small

firms like those run by Dame yn

Cullen will drive many people out of the financial planning

industry, leaving consumers

worse off. In most sectors of

the industry, you end up the industry, you end up with

an oligopoly type of set-up,

where you have two, maybe where you have two, maybe three

or four major They can set prices, they can

squeeze competition. Richard

cliffen also believes consumers

will suffer from the ban on

commissions for insurance within superannuation because people will stop buying it.

The no eggs that people live

in separate tax structures is a

misnomer and we think it's only

going to add cost, it's going

to add red tape and add

confusion to the market

place. The Government is hoping

the legislation for its future

of financial advice reforms

will be before parliament by

the end of the year. We'll be

speaking to both sides, the industry and the retail

later in the program. It was a

rare defeat for one of

Australia's richest men. John

Kinghorn today failed in Kinghorn today failed in his

attempt to consolidate control

of RHG Limited, the rump of

RAMS home loan business. His

proposal for a share buyback

and a delisting of the company

was shot down in an overwhelming victory for

minority shareholders. Here's Phillip Lasker. RHG,

Phillip Lasker. RHG, the

remnants of the failed RAMS

home loan business, has come a

long way since it was worth

little more than 4 cents a

share at the height of the

financial crisis.

at more than $1 and nobody has

made more money out of RAMS and

then RHG's fate than multi-millionaire John Kinghorn. He pushes the commercial boundaries to the

maximum. He made more than

maximum. He made more than $600

million floating RAMS, before

the global financial crisis the global financial crisis

almost destroyed it. But Mr

Kinghorn has remained a major

shareholder and chairman of

RHG, the part of RAMS that was

not sold to Westpac. In other

words, the

book. That's now become a profitable, cash-producing

business in a post-financial

crisis world. Shareholders gathered

gathered to vote on a share buyback proposed by Mr

Kinghorn, who owns 24% of RHG