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and know every second of every minute of every day the true depth of your full betrayal of the
force, of Shaz, Ray, yourself. Jail isn't your sentence, Chris. I am. You are my team. As far as
you are concerned, I am judge, jury, and executioner. Detective Constable Christopher Skelton made
a mistake that he deeply regrets. It ends here. What?

You don't like it, you come to me. You don't take it to the Super, you don't take it to the Yard,
you come to me. Ray.

Shaz, I am so sorry. I just... I just want... I just wanted... I just want you.

KNOCKING Right, you need a drink. I never thought... It's all shit, isn't it?

Yeah, it is.

You and me, Bolly. You and me. Right, shake a leg, you lot. Something's about to happen and I want
my team ahead of the game.

Alex, I'm your surgeon.


There's an infection. It's kill or cure time, Alex.

I am in control.


This woman wants you.

You know, we met about a year ago.

No recollection.

You kissed me.

Time's running out for me here.

Time's running out for me and all. This blighter's gonna go off within 24 hours.

Go away.

I think they got in touch with Chris again.


What happened?

They want to use me on a black. TYRES SCREECH

All units, I have eyeball on the bricks.

Under starter's orders.

POLICE RADIO BABBLES TYRES SCREECH Tonight - a national apology.

He was never held or picked picked up... excuse me.


I used to yell "Give me my brother" constantly, and they belted me with a switch.

Today, and from this day forward, it is my hope that you will be called " the remembered will be
called " the remembered Australians".

Ka thart sis at last for the countless victims of the child migration policy.

I would have never dreamed in a million years that I could be here in the same space as the Prime
Minister and he said "Sorry Sharyn, you were not a bad girl".

This Program is Captioned Live.

Good evening, welcome to Lateline, I'm Tony Jones. Also tonight - guess who's not coming to dinner.
Indonesia's President Yudhoyono was due to arrive this weekend for a historic visit to Australia,
but he's cancelled at the last-minute and the Opposition wants to know why.

The Indonesians will no doubt make Indonesians will no doubt make a very diplomatic excuse as to
why he is not coming, but it is rather unusual for a State visit to be cancelled at the last-minute
without there being any compelling reasons to do so. And we need to hear from the Prime Minister as
to why this visit from President Yudhoyono has been cancelled at the last-minute.

The Shadow Foreign Minister Julie Bishop was expecting to be in the official welcoming party on
Sunday, but now she claims Kevin Rudd's megaphone diplomacy on asylum seekers has damaged one of
Australia's most important regional relationships. That interview's coming up. First our other
headlines. Clean coal - oxymoron or future technology? A special report on the American coal-fired
power station which is claiming success. Once upon a time in the West , a 12-year-old the West , a
12-year-old boy charged for possessing a stolen chocolate frog. On 'Lateline Business' - China
excuses the

Rudd apologises to Forgotten Australians

The Federal Government has apologised to more than 500,000 people who suffered as children in
institutional care, and vowed not to let history repeat itself.


TONY JONES, PRESENTER: From the Forgotten Australians to the remembered Australians, the Prime
Minister and the Opposition Leader have moved to heal past wrongs by apologising to the more than
half a million people who suffered as children in institutional care.

They were brought up as child migrants and wards of the state in orphanages and institutions.

Many had what Kevin Rudd called "loveless and second-class lives".

Karen Barlow reports.

KAREN BARLOW, REPORTER: The Prime Minister says he's sorry it's taken so long.

KEVIN RUDD, PRIME MINISTER: Sorry that as children you were taken from your families and placed in
institutions where so often you were abused. Sorry for the physical suffering, the emotional
starvation and cold absence of love of tenderness of care.

KAREN BARLOW: After numerous Senate reports and a decade of deliberation, the Prime Minister has
apologised to the half a million people who've passed through institutional care over the past

Many in the audience at Parliament House wept and applauded as lost childhoods were finally

KEVIN RUDD: We look back with shame that so many of you were left cold, hungry and alone and with
nowhere to hide and nobody, absolutely nobody, to whom to turn. We look back with shame that many
of these little ones who were entrusted to institutions and foster homes - instead were abused
physically, humiliated cruelly, violated sexually.

SHARYN KILLENS: I would never have dreamed in a million years I could be here in the same space as
the Prime Minister and he said, "Sorry, Sharon. You were not a bad girl - you were just there." And
I think it's wonderful. I think it's really, really wonderful.

KAREN BARLOW: In what the Prime Minister called an ugly story which must be told, lives were
ruined. Some did not make it to adulthood, a fact acknowledged in the bipartisan apology.

MALCOLM TURNBULL, OPPOSITION LEADER: You were abandoned and betrayed by governments, churches and

(Audience applauds).

KAREN BARLOW: Malcolm Turnbull wept as he described the careless treatment meted out to a brother
and sister in care.

MALCOLM TURNBULL: He was never held or picked up. (Getting emotional). Excuse me. I used to yell
"Give me my brother!" constantly and they belted me with a switch.

KAREN BARLOW: The rawness of the day led to some startling revelations.

STEVE FIELDING, FAMILY FIRST: I have a very strong emotions and feelings on this issue. I was
sexually abused as a child by a scout master for years. And my heart goes out to anyone who is in
this category.

KAREN BARLOW: British Prime Minister Gordon Brown is also preparing to apologise next year for the
UK's Child Migrants Scheme which sent many of the children to Australia.

KEVIN RUDD: Robbed of your families, robbed of your homeland, regarded not as innocent children,
but regarded instead as source of child labour.

KAREN BARLOW: Almost 1,000 former children-in-care made the journey to Canberra for the national

UNKNOWN WOMAN: It's a beginning. It's a beginning. Baby steps, but it's a beginning. They've
acknowledged it.

KEVIN RUDD: The Senate named you the Forgotten Australians. Today and from this day forward it is
my hope that you will be called the "remembered Australians".

(Audience applauds).

KAREN BARLOW: The Prime Minister says he can't bring back lost childhoods, but Kevin Rudd says he
wants the apology to be a turning point for the nation so abuse in care will never happen again.

Obama in China for climate discussion.

United States President Barack Obama is meeting Chinese President Hu Jintao in Beijing tomorrow,
and it appears climate change will be at the top of their agenda.


TONY JONES, PRESENTER: The United States President, Barack Obama, says the rest of the world will
be waiting to see what he and China's President Hu Jintao can come up with on climate change.

The two leaders will meet in Beijing tomorrow and it appears that climate change will be on the top
of their agenda.

President Obama's comments came today at a public meeting he had with Chinese students.

China correspondent Stephen McDonell is following the President.

STEPHEN MCDONELL, REPORTER: On a cold and rainy Shanghai winter's night, the United States'
President arrived in China. Barack Obama is the first US leader to visit China during his first 12
months in office. You suspect that in the future this will become the norm.

It took a lot of negotiating between Chinese and American officials, but today President Obama got
to have his mass meeting with Chinese students. The participants were all vetted by the Communist
Party, but the questions were not all going to be easy.

CHINESE STUDENT: When I heard the news that some people in America would like to propose continue
selling arms and weapons to Taiwan, I began to get pretty worried.

BARACK OBAMA, US PRESIDENT: Through dialogue and negotiations, problems can be solved. We always
think that's the better course. And I think that economic ties and commercial ties that are taking
place in this region are helping to lower a lot of the tensions that date back before you were
born, or even before I was born.

STEPHEN MCDONELL: Some of Barack Obama's answers wouldn't have pleased the more nationalist
students. He was asked what the US could do to respect other countries' cultures. President Obama
wasn't backing away from universal human rights.

BARACK OBAMA: It is the view of the United States that it is important for us to affirm the rights
of women all around the world. And if we see certain societies in which women are oppressed or they
are not getting opportunities or there's violence towards women, we will speak up.

STEPHEN MCDONELL: The Chinese Government has been sensitive about this visit. Joke T-shirts, with
Barack Obama wearing Mao-era paraphernalia, were removed from the shops. The shop owners didn't
want to talk to the ABC about this, and the authorities didn't risk televising this meeting live,
except for in Shanghai. What they feared were questions like the one which was read out by the US
ambassador: what did President Obama think of China's elaborate system of internet censorship known
as "the great firewall of China"?

BARACK OBAMA: Free internet or unrestricted internet access is a source of strength and I think
should be encouraged.

STEPHEN MCDONELL: And the questions kept coming.

CHINESE STUDENT II: What have you - in this Chinese trip, what have you brought to China, and what
do you want from China?

BARACK OBAMA: Let me give you a specific example, and that is the issue we were just discussing of
climate change. A meeting of the minds between myself and President Hu about how, together, the
United States and China can show leadership. Because I will tell you, other countries around the
world will be waiting for us.

STEPHEN MCDONELL: This was a first for China-America relations. Both Beijing and Washington will
hope it led to more understanding. Tomorrow, the heavy meetings will start - for the most part,
behind closed doors.

Turnbull loses ground in poll.

The Federal Opposition has lost ground in tomorrow's Newspoll, confirming last fortnight's massive
increase was a rogue result.


TONY JONES, PRESENTER: The Federal Opposition has lost ground in tomorrow's Newspoll in The
Australian, confirming that last fortnight's massive increase was a rogue result.

Parliament returned today for the final two weeks of the year, a sitting that's sure to be
dominated by the emissions trading scheme. Malcolm Turnbull wants to keep the focus on refugees,
and the Opposition suspects that issue is the real reason for a cancelled visit to Australia by the
President of Indonesia. From Canberra, Hayden Cooper reports.

HAYDEN COOPER, REPORTER: Eight days and counting until the parliamentary year closes, and for some,
it can't come soon enough.

KEVIN RUDD, PRIME MINISTER: The clock is ticking for the planet; it's ticking for Australia; and
it's also ticking for this Parliament.

HAYDEN COOPER: Between climate change and refugees, Question Time is about who's best at changing
the subject.

MALCOLM TURNBULL, OPPOSITION LEADER: Why won't the Prime Minister come clean on his special deal?

HAYDEN COOPER: And the Opposition Leader wants to keep the Oceanic Viking in the frame and the deal
used to entice 22 Tamils ashore.

KEVIN RUDD: The special deal being sought by those on the vessel was for the vessel to come to
Australia. We have not respond to that pressure.

HAYDEN COOPER: But he is denying that he knew beforehand about the offer of a fast-tracked
resettlement, or approved it.

KEVIN RUDD: The answer to the honourable gentleman's question is no and no.

HAYDEN COOPER: Later, a clarification his staff were aware through the border protection committee
of Cabinet.

KEVIN RUDD: There are ministerial staff represented on the committee, including my own staff.

MALCOLM TURNBULL: There is no question that he has misled the House. There is no question about
that. The fact is it is a preferential deal.

HAYDEN COOPER: APEC in Singapore was meant to produce a new refugee agreement with Indonesia, but
Kevin Rudd couldn't land a formal meeting with the President, and plans for Susilo Bambang
Yudhoyono to visit Australia next Sunday have been postponed.

KEVIN RUDD: We discussed a range of things, including his visit to Australia, which will occur
either at the end of this year or early next year and we're working on dates, currently likely to
be in February.

HAYDEN COOPER: But is the refugee obsession paying off for Malcolm Turnbull? Tomorrow's Newspoll in
The Australian newspaper confirms that much of last fortnight's big increase has evaporated. The
Coalition's primary vote has dropped by four points; Labor is up by two. And after preferences, the
gap has widened to 12 points, with the Government now leading by 56 per cent to 44.

That's still a better number for the Coalition than it was a month ago, and Malcolm Turnbull's
personal approval has risen, lifting his rating as better Prime Minister into the 20s.

The true test of the Turnbull leadership will come in the next fortnight. The Lower House has
passed the emissions trading scheme. The Senate is next, but the dealing goes on.

KEVIN RUDD: I would say to all those opposite to continue their good faith negotiations with the

HAYDEN COOPER: They've won the exclusion of agriculture, but want more.

For many on the Coalition's side, the weekend's APEC meeting only confirms suspicions that securing
a binding global climate deal this year could prove impossible and that may well strengthen party
room resolve against a vote before Copenhagen.

WILSON TUCKEY, LIBERAL BACKBENCHER: What came out of the APEC meeting? "Well, fellas, we'll do our

DENNIS JENSEN, LIBERAL BACKBENCHER: To think that we have to go to Copenhagen with legislation
because it shows that we're serious is crazy.

TONY ABBOTT, OPPOSITION FRONTBENCHER: I don't have any problem with my colleagues conducting a
mature, intelligent and courteous debate on these issues.

HAYDEN COOPER: There are other more abrupt definitions.

GREG COMBET, ASSISTANT CLIMATE CHANGE MINISTER: Rise above your internal squabbling and act in the
interest of Australian people and support the CPRS.

MALCOLM TURNBULL: Just getting over electron internal squabbling from that distinguished trade
unionist there.

HAYDEN COOPER: The smiles might be temporary.

Julie Bishop discusses today's apology.

TONY JONES, PRESENTER: Just a short time ago, the Deputy Leader of the Opposition, Julie Bishop,
joined us from our Parliament House studio.

Julie Bishop, thanks for joining us.


TONY JONES: Now, Indonesia's President Yudhoyono has postponed his impending visit to Australia. So
what do you read into that first of all?

JULIE BISHOP: Well, Tony, this was to be a very significant visit. It would be the first visit from
an Indonesian President since 2005, and obviously maintaining a close relationship with Indonesia
is very important for us, not the least in relation to the people smuggling issue and the current
circumstances surrounding the people smuggling trade, the Oceanic Viking and the like. So it was to
be a very significant meeting, visit in any event. My information is that it's been unexpectedly
cancelled, virtually at the last minute, and I would hope that the Prime Minister would explain why
this visit has been cancelled. He did mention that it's been put off till maybe next year. But
given the significance of it, that there was to be an address to the Houses of Parliament, I think
we deserve an explanation as to why this visit has been cancelled at this time.

TONY JONES: You say "at the last minute". What do you know about the exact timing of the visit,
because that appears to be unclear until now?

JULIE BISHOP: From my information, the President was to arrive this weekend, as in this coming
weekend - particularly to arrive on Sunday. That's my information.

TONY JONES: And you know that why - because you were being - you were going to meet him? I mean,
how do you know that?

JULIE BISHOP: Well, there were obviously arrangements being put in place. They were very advanced
arrangements and that would necessarily involve the Opposition.

TONY JONES: OK. Well until now, the Indonesian Government has accommodated most Australian requests
on the asylum seekers. They've talked about having infinite patience in dealing with this. Are you
saying that somehow the relationship has soured since then?

JULIE BISHOP: Well, Tony, I am concerned that the visit has been cancelled and we need to know
whether the cancellation has anything to do with the way the Prime Minister in particular has
handled this Oceanic Viking issue with Indonesia. Now the Prime Minister has used what I would term
megaphone diplomacy in dealing with Indonesia. He has stated many times that he had an agreement
with the Indonesian President and he's virtually berated Indonesia in relation to providing a
solution for the problem of the asylum seekers aboard the Oceanic Viking time and time again.

TONY JONES: Well he certainly wouldn't put it that way - "megaphone diplomacy".

JULIE BISHOP: No, I'm sure he wouldn't.

TONY JONES: He would say quiet diplomacy, behind-the-scenes diplomacy, with phone calls and without
a megaphone.

JULIE BISHOP: Well, in fact, Tony, on numerous occasions he has said publicly and his ministers
have also said that he had an agreement with the Indonesian President that the people on board the
Oceanic Viking would disembark in an Indonesian port and would be processed and would be resettled
from Indonesia. Now he's made that point publicly, his ministers have made that publicly and it's
essentially putting Indonesia on the spot. And we have seen that the regional governors have had a
different view. There's been this stand-off. It's been a month now since the Prime Minister
announced that he had an agreement with the Indonesian President. Now, we need to know whether this
kind of diplomacy, megaphone or not, has impacted upon our relationship with Indonesia. It is a
most significant relationship in any event, but we need to stop the people smuggling trade. We need
to stop the boats, and in order to do that, we need a cooperative relationship with Indonesia and
my fear is that Mr Rudd is failing on both counts.

TONY JONES: Do you have any evidence or any Indonesian sources to suggest that there is a breach or
a souring of relations over this incident, or is this just supposition on your part?

JULIE BISHOP: I understand that the information that was contained on the Channel Seven report on
this evening is in fact correct, but of course, we would rather hear from the Prime Minister. The
Indonesians will no doubt make a very diplomatic excuse as to why he is not coming, but it is
rather unusual for a state visit to be cancelled at the last minute without there being any
compelling reasons to do so. And we need to hear from the Prime Minister as to why this visit from
President Yudhoyono has been cancelled at the last minute.

TONY JONES: We should say that the Indonesian Foreign Ministry is simply saying it's a scheduling
issue. They want the Indonesian President to visit several countries at once so they're shifting it
to another time. That's their simple suggestion. You're saying that's not true?

JULIE BISHOP: Well, no, I'm saying of course they'll be polite and diplomatic about it, but the
Prime Minister should reveal, for example, what went on at the APEC meeting in Singapore over the
weekend. I asked the Prime Minister in Question Time today whether he had sought a formal bilateral
meeting with President Yudhoyono at the APEC summit for the purposes of discussing not only the
circumstances surrounding the Oceanic Viking, but also people smuggling generally, and if he didn't
seek such a meeting, why not? The Prime Minister didn't directly answer the question, but he said,
"Oh, well, you know, I chatted to him on the sidelines." Well, I find it quite extraordinary that
the Prime Minister would not have sought a formal bilateral meeting with the President of Indonesia
at APEC, and we need to hear the real reason why he did not do that either.

TONY JONES: Both sides seem to be content for the time being - although this Indonesian visit may
change that somewhat - to play this very quietly; to use the patience ... to use patience as a
tactic and to play a long game with the Tamils on board the Oceanic Viking. Are you suggesting that
Indonesia's patience at least is wearing thin on this?

JULIE BISHOP: Well, I'm not suggesting it, but certainly people out of Indonesia have been
suggesting it. We've heard from representatives of the Indonesian Navy - from some of the regional
governors. We've not heard directly from President Yudhoyono. But certainly Indonesian authorities
are making the point that they expected the Tamils to get off the boat. Now, I'm keen to hear what
contingency plan the Prime Minister had in place or was thinking about when he came to his
agreement with President Yudhoyono four weeks ago. What contingency plan did he have in place?
Should the Tamils not get off the boat? And that was conceivable. It wouldn't be the first time
that asylum seekers have refused to get off a boat or disembark in a port where they didn't wish to
go. So what was Plan B? And this is what we're still to hear from the Prime Minister. Now we do
know ...

TONY JONES: OK. Well can I go to your own new policy? Well, it's a new old policy I should say.
You're now talking about bringing back a temporary protection visas. You're calling them something
different, but essentially they are temporary protection visas, which means the asylum seekers
coming here found will not be allowed to remain in the country according to those new visas. Is
that the sort of solution that you would advocate - bringing these people to Christmas Island, but
in a way that they couldn't remain in Australia for the long term?

JULIE BISHOP: Tony, you have to send messages to the people smugglers. The people smugglers are
selling a product and that product is permanent residency in Australia. And they extract large sums
of money from people in return for that product, that is, permanent residency in Australia. We have
to send a message that the people smuggling trade is unacceptable and that we will not encourage
people to get on these leaky boats and risk their lives making that journey to Australia. So, we
send the message that permanent residency is not guaranteed.

Now, Mr Rudd has made a special deal with 22 people that were on board the Oceanic Viking. He's
made a special deal. In an utterly unconvincing way he says it's not a special deal, but it was
quite evident from the letter that was tabled in the Parliament today that he has made a special
deal that no other refugee in Indonesia has been offered and that is a fast-track resettlement in
Australia. So what we're saying is that the message should be sent to the people smuggling trade
that you cannot deliver your product of permanent residency in Australia, and that is just one step
that we would take to stop the people smuggling trade, and it did work.

TONY JONES: So, if you were faced in government with a similar situation, with rescued people
refusing to get off the rescue ship, would you, because you had the advantage, as you would think,
of temporary protection visas, would you simply bring them back to Australia to be processed?

JULIE BISHOP: Well, Tony, it's not such a simple proposition. You see, we don't have access to any
of the intelligence that the Government has access to in relation to the people on board the
Oceanic Viking. We have no details at all of the agreement that Mr Rudd says he reached with
President Yudhoyono. We have no details at all of that agreement, or any of the intelligence or
security reports surrounding the people on the Oceanic Viking. So I'm not in a position to comment
on that. We have asked for a briefing from the Government ...

TONY JONES: Unlike the West Australian Premier, your colleague, Colin Barnett, who says they should
be brought back to Australia. You simply disagree with that, do you?

JULIE BISHOP: No, what I'm saying is: I don't have enough information. We asked the Government for
a briefing - we've not been given one. We're apparently not to get one until after the people get
off the Oceanic Viking. Well it's now been four weeks and we're still waiting.

TONY JONES: OK. But can I just get this straight? If they were to give you a briefing, if you did
understand these people didn't pose some security threat or something of that nature, you'd rather
see them be brought back to Australia than remain on this boat anchored off an Indonesian port, is
that right?

JULIE BISHOP: No, what I'm saying is that the Government has said it had an agreement with
Indonesia. Well I'd like to know what that agreement was and I'd also like to know what was the
contingency plan on the assumption - and it is a fair assumption - that the people wouldn't get off
the boat. Now, I'd like to have access to the security briefings, the intelligence reports, also
details of what the Sri Lankan Government, for example, has been offering. Now, I understand that
the Sri Lankan Government's saying, "Bring them back to Sri Lanka." I'd like to have more details
of that offer.

TONY JONES: OK. Is it possible that this issue may be sliding in public attention, may not have the
bite you thought it did, when you consider that tomorrow's Newspoll has a climb-back for Labor in
the primary vote and in the two-party-preferred vote? There's now quite a significant margin
between the Government. They're ahead significantly in both primary and two-party-preferred votes,
which makes the previous Newspoll look somewhat roguish.

JULIE BISHOP: Well, Tony, this is not an issue that's going to be determined by week-by-week polls.
This is an issue about our long term border protection security. Now since 2008 when the Rudd
Government softened our border protection laws we've seen a massive surge in the people smuggling
trade. It's now 50 boats - over 2,300 people - arriving by boat.

TONY JONES: OK, fair enough. Not worried about the polls at all, now worried about the fact that
the Government has come back in the polls from what looked like a significant surge to the

JULIE BISHOP: Tony, my concern is that Australia have a strong border protection policy. Mr Rudd
has weakened that policy and that must be resolved. Now so far, the Government has no answers. Each
boat means another crisis is triggered within the Government and we still have no solutions for the
people on board the Oceanic Viking and it's now been four weeks. The Government's paralysed over
this issue, and I believe that long term, it will do Australia great harm.

TONY JONES: Let's move on. Earlier this month you visited South Korea, Japan and China. Among other
things, you were gauging their attitudes to serious action on climate change. Now did you come away
thinking that a global deal was still possible?

JULIE BISHOP: Well, in fact, I came away thinking that a global deal was some distance away and I'm
still intrigued as to why Mr Rudd has insisted that the Copenhagen conference is so important, and
that's why we must be locked into his emissions trading scheme before Copenhagen, because my
impression was that no deal will be reached at Copenhagen. Now, the Japanese Government, the new
administration in Japan, has announced some very ambitious targets, yet there's very little detail
about how they will meet those targets, other than for an expansion of their existing nuclear power
generation facilities. Likewise in China; while the rhetoric was very strong, there was an
acknowledgement that the issue of climate change in the first instance is for developed countries,
not developing countries. And China, likewise, is looking to its nuclear program, its nuclear power
program, as a way of meeting a target that would be a voluntary target in any event. In South
Korea, again, they believe that as a developing country they will not be required to submit to
mandated targets, and so they're looking at voluntary targets to reduce greenhouse gas emissions,
and again, looking to increase their nuclear power capability from about 30 per cent of their
electricity from nuclear to about 50 per cent. So, while three countries, and they are the East
Asian giants and major trading partners, while the three countries are focusing on ways to reduce
their greenhouse gas emissions, interestingly, all having nuclear power as a core component of it,
none of them were saying that there would be a deal done at Copenhagen, particularly the developing

TONY JONES: What you've discovered there, or what you've found, does that make you believe it's
less imperative to have a deal on an emissions trading scheme with the Government before

JULIE BISHOP: Everything Mr Rudd said about the importance of Copenhagen, he still stands by.

TONY JONES: OK. I'm sorry to interrupt you - we are running out of time. So I'd just like to get to
an answer. This is obviously going to play into your party room as early as tomorrow. So when you
speak to your party room, will you be saying to them, "We don't need to actually cut a deal with
the Government before Copenhagen. We don't need to act on their timetable, which is the end of this

JULIE BISHOP: Well, Tony, I've never believed that we needed to lock into an Emissions Trading
Scheme before Copenhagen, and in fact today in the House of Representatives we put forward an
amendment to the legislation that it not be voted on before Copenhagen. And of course the
Government voted that down, as they did all our amendments today.

TONY JONES: Well let's assume the vote does come up on the Government schedule in the week of the
25th November. Would you advocate voting against it simply because you don't see any regional
benefits and possible regional problems?

JULIE BISHOP: Well, Tony, this is all part of the negotiations that are going on at present between
Senator Wong and Ian Macfarlane and I'm not going to compromise those negotiations. The
negotiations should be allowed to run their course - then it will come back to our party room for a
final decision.

TONY JONES: Thank you very much for coming in to talk to us again, Julie Bishop, and we'll see you
hopefully before the end of the year. Thank you very much.

JULIE BISHOP: My pleasure. Thank you, Tony.

hopefully before the end of the year.

My pleasure, thank you,

World-first carbon-capture facility unveiled.

The world's first carbon-capture and storage facility at a coal-fired power plant has been unveiled
in the United States. Supporters say the facility represents the future of the industry but
skeptics argue it is far from being a holy grail.


TONY JONES, PRESENTER: The world's first carbon capture and storage facility at a coal-fired power
plant has been unveiled in the United States. It's a recognition that any attempt to reduce
greenhouse gas emissions must target the coal industry. But there's still a very long way to go.
Currently the facility only captures 1.5 per cent of the power station's emissions. Supporters say
the pilot project is a project of the future, but many experts are doubtful it'll ever be a viable
solution. North America correspondent Kim Landers reports from West Virginia.

KIM LANDERS, REPORTER: This is the heart of America's coal country. Here on the border between Ohio
and West Virginia, the concentration of coal-fired power plants is so great it's been nicknamed
Megawatt Alley. The mountaineer plant on the West Virginia side of the river is one of them.

Barges inching along the Ohio River deliver coal to this 29-year-old facility and others like it.
There are 500 coal-fired power plants across the United States. They produce half of the nation's
energy needs. They're also America's biggest emissions villains, producing one third of
energy-related carbon dioxide pollution. It's why they're at the heart of the battle to address
climate change.

facing in terms of global warming.

Indonesia, Australia, America, South America, all of the Eastern European countries. And it will be
burned in all those countries for a long, long time.

KIM LANDERS: The mountaineer plant is owned by American Electric Power, the nation's largest
electricity producer with five million customers in 11 states. Now Mountaineer has become the
world's first coal-fired power plant to capture and store carbon dioxide.

This is where the capture part of the process begins. The plant produces about nine-million tonnes
of carbon dioxide a year, but the technology on trial here will only capture a fraction of that:
100,000 tonnes, which is about 1.5 per cent.

EMPLOYEE: So in the next step, the cold flue gas comes down this duct work and into the absorber
where the CO2 is captured from that flue gas and then the clean flue gas exits the top of the

KIM LANDERS: The captured carbon dioxide is then pumped from the absorber into what's called a
regeneration system.

EMPLOYEE: And in the regeneration process, you heat that solution that contains the CO2 and you
drive off a pure stream of carbon dioxide off the top of this tall absorber.

KIM LANDERS: This pure stream of carbon dioxide is then compressed, ready to be stored. It's sent
to two wells, where it's injected into tiny pores in the rock two kilometres underground, to be
stored, the company hopes, forever.

This Mountaineer plant is providing the world with some clues about whether controls on greenhouse
gas emissions will work. It'll help decide whether America's coal-fired power stations become
relics of a dirtier age or can flourish in the future.

The Mountaineer experiment has been running for just two months.

MICHAEL MORRIS: I guess I'm probably a bit of an optimist. It's run long enough for me. I know the
capture technology works. I don't think anyone doubts that whatsoever. The issue with the storage
is how will we be able to determine that the sub-surface storage capacity and what we think is the
sub-surface geologic formation that will house the carbon stored is functioning. And that's going
to take a while, it really will.

KIM LANDERS: Environmentalists think carbon capture and storage is too little, too late.

BRUCE NILLES: I certainly wouldn't describe it as a silver bullet. I describe it more as - what
would be a good analogy? Something like the rabbit on a greyhound track. It's always just right
ahead of us, but we never actually get there. It's always being held off as just around the corner.
And it's really right now being used as a very elusive promise that is still so far away from
actual reality.

KIM LANDERS: There's also the crucial question of whether this technology can be refined and used
on a bigger scale. The industry also admits it'll double the cost of electricity generation. But it
argues that coal will still be competitive with natural gas, wind, solar, and nuclear energy.

In the meantime, companies like American Electric Power are warily watching the US climate debate.

The US House of Representatives has passed legislation calling for a 17 per cent cut to greenhouse
gas emissions by 2020. The Senate is considering a 20 per cent target. Both bills would create a
cap-and-trade regime. Some in the electricity industry think the Senate target is too ambitious.

MICHAEL MORRIS: So it's so troubling to me when we get these political goals that sound excellent,
they truly do, but there's no reality to the ability to get that done. That's always a bit
troubling to me.

BRUCE NILLES: We are very optimistic that there will be a bill come early next year. Our hope is
that the momentum will continue from what we've seen over the last few weeks and months and that we
will get a bill that actually lays out a very clear foundation to get us on the right track.

KIM LANDERS: But climate change legislation in the US is facing a long and contentious road to
approval. While the White House is pushing Congress to make as much progress as possible before the
global climate change talks in Copenhagen, it's unlikely there'll be legislation in place by then,
especially when passing it could hinge on the vote of politicians from coal states like West
Virginia. For now, coal will remain a crucial part of America's energy equation.

Boy appears in court over stolen freddo.

A 12-year-old boy has appeared in Northam Children's Court in Western Australia accused of
receiving a stolen chocolate bar. The Aboriginal Legal Service says the case is trivial and it will
formally ask police to drop the charges.


TONY JONES, PRESENTER: In Western Australia, a 12-year old boy accused of receiving a stolen
chocolate has told the Northam Children's Court he intends to defend the charge.

The Aboriginal Legal Service has labelled the case trivial and will formally ask police to drop the

JANE NORMAN, REPORTER: The 12-year-old boy fronted the Northam Children's Court charged with two
counts of receiving stolen property: a 70 cent Freddo frog and a novelty sign.

The boy's lawyer has criticised the charges.

PETER COLLINS, DEFENDANT'S LAWYER: I think it's outrageously trivial.

JANE NORMAN: It's alleged that on 30th of September the two items were stolen from a local
supermarket and given to the boy. His lawyer says he plans to formally request that the charges be

PETER COLLINS: If this boy had've come from a non-Aboriginal background with parents who were
professional people who had the resources at their disposal, then he wouldn't have been charged.

JANE NORMAN: The boy's lawyer told the court he had an objection with the original police interview
and said his client was planning to plead not guilty to both charges.

While police refuse to comment on this case, they say bringing criminal charges against any child
is always a last resort.

PETER HALLIDAY, WA POLICE: This is not embarrassing for WA Police. As I said, there's a number of
diversionary practices employed in all cases. If we continue to use the same diversionary tactics
and they don't work, then it's a matter of we need to try something different.

JANE NORMAN: But the Greens say the system should be changed.

ADELE CARLES, GREENS MP: We need to have a whole new paradigm for how we treat children in our
criminal justice system and there's no way that this is a proportionate response to what has taken

JANE NORMAN: The boy was granted bail and is due to appear in court again in February.

appear in court again in February. 'Lateline Business' coming up in just a moment. If you'd like to
look back at tonight's interview with Julie interview with Julie Bishop or review Lateline's
stories or transcripts, you can visit our website. Now here's 'Lateline Business' with Ali Moore.
Tonight - free trade and the falling greenback. The US and China prepare for tough talks in

I think it's quite clear all around the world as to the views of what China should do with its

Incitec Pivot turns


Incitec Pivot turns from profit to loss.

The external environment was the toughest I've ever seen in my 20 years in the chemical industry.

And, supersizing Australia's super funds.

Too many that are too small. There's no question that there is a more efficient industry out there.

To the markets, and following Wall Street's Wall Street's positive lead on Friday the All Ords was
up more than 1%. The ASX200 gained 49 points. In Japan, the Nikkei made modest gains despite better
than expected GDP numbers, which show the economy grew at an analysed rate of 4.8% in the September
quarter. Hong Kong's Hang Seng jumped nearly 2%, and in London, the FTSE is up more than 1% for the
FTSE is up more than 1% for the fourth day in a row of strong gains. US President Barack Obama and
China's President Hu Jintao are preparing for talks on a range of issues, while climate change is
the headline issue, talks on trade and the falling value of the dollar and yuan will also feature
heavily. The ABC's Tom Iggulden reports from Beijing. The US accuses China of devaluing its China
of devaluing its currency to distort global markets in its favour.

I think it's quite clear all around the world as to the views of what China should do with its

Now, the Chinese commerce ministry's returning fire.

TRANSLATION: The US has been depreciating its dollar to increase its competitiveness. As far as the
economic downturn goes, it's not good for the economic recovery if you ask other countries other
countries to a-appreciate their country but keep depreciating the US dollar. It's not fair.

Trade tensions have been heightened by tariffs on products coming into its market.

Export of American products and services to China is key, but for that to happen, China needs to
make sure that they don't engage in protectionism, don't for instance say instance say that various
products and services can only be done by their domestic or national companies.

But China accuses the US of hypocrisy on that score, as well.

TRANSLATION: The US and other Western countries are supposed to be the promoters of free trade.
Instead we're seeing protectionism, a conservative America, not a creative one.

And the

creative one.

And the commerce ministry says Western economies aren't giving China a fair chance to choose the
same path of development that ensured prosperity for countries like the US.

20 or 30 years ago when they enjoyed high-speed growth trade surpluses were massive, now developing
countries have started speeding up their development and we hear western economists saying trade is

It's not


It's not just the Americans concerned, other major export countries in the region such as Indonesia
and India say they're struggling to compete in the global market because of the cheap Chinese yuan.
Back home and Incitec Pivot has reported its first loss as a listed company after writing down the
value of its explosive business by half a billion dollars. But the result had already been well and
truly factored into the share price and the stock jumped 6% jumped 6% on company forecasts of a
return to profitability in 2010. Neal Woolrich reports. Even in a downturn, people have to eat. But
as the global financial crisis took hold, farmers saved money by cutting back on fertilisers.

The external environment was the toughest I've ever seen in my 20 years in the chemical industry.

And that's reflected in Incitec in Incitec Pivot's results for the 2009 financial year. Incitec
Pivot is reporting a $180 million net loss, which includes a $490 million write-down on its dino
Nobel explosives business and profit before one-off items has slumped by 46%.

Although it was well down on last year, this was more to do with market factors as opposed to
internal factors as opposed to internal controllable factors. These