Johnston queries $50b defence budget

Defence Minister David Johnston says claims of a $50 billion defence budget in are not credible. Source: AAP

AS much as he might like it to be true, Defence Minister David Johnston is sceptical about a seeing a $50 billion defence budget in a decade.

That follows a media report in The Australian newspaper pointing to a $50 billion defence budget in 10 years as funding is progressively raised to two per cent of gross domestic product.

At present, the defence budget is $26 billion, which is about 1.6 per cent of GDP.

Senator Johnston said he didn't know where the $50 billion figure came from as the Defence Capability Plan (DCP), which outlines planned spending on new equipment, was in disarray because so much money had been taken away.

"For anybody to put a figure on where we are going and a time frame of where that place will be ... is quite questionable and impossible," he told reporters.

"I think it is wrong because I can't see how those figures can carry any credibility."

Senator Johnston said the government was set to launch a new defence white paper and DCP in 2015, which would establish benchmarks for defence spending.

He said it would be extremely hard to lift defence spending to two per cent of GDP.

"But we are going to do it," he said.

Senator Johnston said 21,000 public servants ran 56,000 uniformed personnel and that was unsustainable.

"My portfolio is just one of very many that is carrying that sort of burden," he said. "We have got to get lean and mean. No one is saying two per cent of GDP for defence in 10 years is gong to be easy."

15.03 | 0 komentar | Read More

Smokey Vic town safe, but no comparison

Victoria is asking holiday home owners to open their homes to Morwell residents affected by smoke. Source: AAP

THE coalmine fire that's been blanketing Morwell in thick smoke for three weeks has no comparison, Victoria's top health officer says.

As firefighters prepare for forecast windy weather to blow even more smoke into the Latrobe Valley town, health authorities are poring over records of similar fires and finding little information.

Chief Health Officer Rosemary Lester says she's seeking advice on whether the fire has become a long-term exposure event for residents because it's been burning for three weeks.

But that's proving difficult, she said, because long-term smoke inhalation studies involve big city air pollution, not coalmines.

"It's an unusual situation," she said on Thursday.

"We do remain concerned about the level of smoke in the air. The levels have been very high and continue to be very high.

"We don't know how much longer it will go on for."

Dr Lester said carbon monoxide levels are nowhere near the level required to evacuate the town but she couldn't rule out calling for one in the future if the fire keeps burning.

The Hazelwood fire started on February 9 and is expected to burn for at least another two weeks.

Authorities stress it remains safe to stay in the area, but residents should limit their exposure.

A community respite centre has been set up in Moe and the health assessment centre has been expanded.

Latrobe Regional Hospital Acting chief executive Amanda Cameron said while hundreds had visited the assessment centre, the impact of smoke on people's health appeared to be minimal.

"We've had no admissions into the hospital that are directly related to the fire," she said.

The Victorian Greens want an evacuation for the most vulnerable people.

But Premier Denis Napthine said that's not necessary, though he'll open his house in Port Fairy to those wanting to flee the smoke and others should do the same with holiday homes.

He said it was frustrating to know the coalmine fire was deliberately lit.

Incident controller John Haynes said the wind would determine how quickly the fire could be extinguished.

Fire crews expect big gusts to arrive on Friday and return next week.

"We're trying our hardest," he said.

15.03 | 0 komentar | Read More

Explosion before body found in fire ground

BOMB squad officers have been drafted in to investigate after locals reported hearing an explosion before the discovery of a body amid burnt-out scrubland in suburban Perth.

Police launched an investigation after human remains were found amid bushland burnt in a fire that began between Rochdale Road and the West Coast Highway about 11.30am (WST) on Thursday.

Aircraft were sent to assist the ground crews, who quickly got the blaze under control.

However, as emergency services mopped up, WA Police's major crime division were called in to investigate reports of a body being found.

Police explosives experts have also been called in after reports of a large blast about the time the fire began.

15.03 | 0 komentar | Read More

Downer EDI settles legal claims

POTENTIAL legal action against engineering firm Downer EDI has been settled before it reached the courts.

Litigation funder Bentham IMF said a conditional settlement had been reached in its claims against the company, related to Downer EDI's difficulties with its NSW train manufacturing contract.

A shareholder class action was being prepared, alleging the company misled investors by failing to properly disclose issues with its Waratah Train Project in 2010.

Bentham IMF said the terms of the settlement were confidential, but would generate it revenue of $11.3 million.

Downer EDI said the settlement was reached without admission of liability, and would have no impact on the company's financial guidance.

15.03 | 0 komentar | Read More

Govt finds backing for Qantas changes

Possible changes to the Qantas Sale Act have prompted fears that jobs will go overseas. Source: AAP

THE federal government has found support for allowing Qantas to be majority foreign-owned the day before the airline reveals a loss and job cuts.

However, Prime Minister Tony Abbott says he won't be asking the airline to guarantee Australian jobs as the government drafts laws to lift regulatory restrictions.

The Qantas Sale Act, which came in as the airline was privatised in 1992, limits foreign ownership of the airline to 49 per cent, foreign airlines from holding more than a 35 per cent stake, and any single foreign shareholder to 25 per cent.

The national carrier is expected to announce a net loss of more than $400 million on Thursday and reveal plans to cut $2 billion in costs, including shedding as many as 5000 jobs.

The federal government is considering a short-term debt guarantee, as well as repealing the foreign ownership limits, to ease pressure on the iconic airline.

But it would need six crossbench votes in the new Senate, which will sit for the first time on July 7, to get its bill passed.

Two new senators, David Leyonhjelm from the Liberal Democrats and Bob Day from Family First, told AAP on Wednesday they would support the repeal.

"Qantas is shackled and hamstrung by all manner of regulation in one of the most competitive industries in the world," Mr Day said.

Mr Leyonhjelm said there was no need for the ownership restrictions.

A spokesman for the Australian Motoring Enthusiast Party, whose senator Ricky Muir will take his seat in July, said the bill would be examined on its merits.

Independent Nick Xenophon has argued for Qantas' management to be sacked before he would consider the legislation and the Democratic Labor Party's John Madigan is yet to take a position.

The Palmer United Party, the Greens and Labor oppose any change.

Mr Abbott told reporters the government would not be issuing any edicts to Qantas.

"What Qantas does is a matter for Qantas management," he said.

While there may be some sentimental attachment to iconic businesses such as Qantas, three-quarters of Australians travelling overseas flew with other airlines, he said.

Labor transport spokesman Anthony Albanese said the opposition wanted Qantas to remain majority Australian-owned and Australian-based.

He said repealing the laws would lead to the airline splitting its international and domestic businesses to comply with international aviation regulations and agreements.

It would also lead to many of the 33,000 jobs going overseas.

The laws as they currently stand require the airline to keep the bulk of its maintenance, catering, flight operations and training facilities for international services in Australia.

The Transport Workers Union estimated between 10,000 and 14,000 white-collar and catering jobs would be sent offshore.

15.02 | 0 komentar | Read More

Ex-RailCorp exec told to burn documents

Former RailCorp executive Joseph Camilleri was told to burn documents by his daughter. Source: AAP

THE gambling-addict daughter of a former RailCorp executive told her father to "burn, burn, burn" documents in her room after a raid by investigators, a corruption inquiry has heard.

But the executive, Joe Camilleri, maintains the loans were personal and did not buy former employees favours.

In a tapped phone call played at an Independent Commission Against Corruption (ICAC) hearing in Sydney, Jessica Adouni is heard urging her father to "do it now".

The call was secretly recorded just after an ICAC raid on Mr Camilleri's home.

That followed his sacking by RailCorp after he had tapped work colleagues for large loans to help his daughter.

The ICAC heard on Wednesday that Mr Camilleri paid out more than $4 million over four years to his daughter, despite her increasingly questionable claims for money, which were supposedly to cover high legal costs and bank fees.

He borrowed money from work colleagues and enlisted his sister Carmen Attard to also borrow money to help Ms Adouni.

The ICAC is investigating whether people who contributed to the $1.5 million Mr Camilleri and Ms Attard raised for Ms Adouni received any personal or professional benefit.

Mr Camilleri told the ICAC he believed his daughter's reasons for needing money between 2008 and 2013, and only learnt later of her gambling problem.

He repeatedly denied he acted corruptly or favourably towards those who lent him money, despite some working for firms that were later involved in RailCorp tender processes.

Counsel assisting the commission Nicholas Polin played the phone call from August 2013 in which Ms Adouni was heard telling her father after the ICAC raid she wanted to "make sure there's nothing left".

"Dad, they will come back, don't be stupid.

"Any papers, burn, burn, burn, that's all you've got to do ... do it now."

Mr Camilleri denied destroying anything.

Mr Polin repeatedly asked Mr Camilleri if he was a liar after he denied to RailCorp investigators he had borrowed money from people working in organisations that had business with RailCorp.

"I wasn't lying at the time, but it can be perceived as a lie, yes," Mr Camilleri said.

Evidence tendered to the ICAC included an email to Mr Camilleri from a "Richard Dipshit" purporting to be Ms Adouni's lawyer, and a badly written letter claiming to be from an ASIO security chief about money in a bank account.

A later email from the purported lawyer apologised for the "Dipshit" reference, saying his grandson had been using his computer.

The ICAC heard Ms Adouni said her identity had been stolen and was being used by people to buy property overseas.

Mr Polin asked Mr Camilleri if he was "incredibly stupid" or telling the truth.

Mr Camilleri said he might have been "very naive and had too much trust in my daughter".

The hearing continues.

15.02 | 0 komentar | Read More

Missouri executes another prisoner

A MISSOURI inmate has been executed for abducting, raping and killing a Kansas City teenager nearly 25 years ago.

Michael Taylor was lethally injected just after midnight on Wednesday. He was the fourth Missouri prisoner executed by the state in as many months.

His lawyers had argued the state's execution drug, bought from a compounding pharmacy, could have caused Taylor inhumane pain and suffering.

But his last-minute appeals were denied by federal courts and the governor.

Authorities say 15-year-old Ann Harrison was waiting for her school bus on March 22, 1989, when she was abducted by Taylor and Roderick Nunley. The men took the girl to a house where she was raped and stabbed to death.

Nunley is also on death row.

15.02 | 0 komentar | Read More

Tap-and-go to higher Vic crime rate

Victoria's crime rate has risen with drugs, family violence and deceptions among the causes. Source: AAP

TAP-AND-GO technology is helping make credit card fraud the fastest growing area of crime in Victoria.

Drugs and family violence also contributed to an overall 1.2 per cent jump in the crime rate for the 12 months to December 2013.

Deception offences rose by 42 per cent and drug offences jumped by 12.3 per cent.

The introduction of tap-and-go credit cards has made deception easier and police have again expressed concern about the technology, which allow customers to make purchases without a PIN or signature, and say negotiations continue with the banks about a solution.

The 42 per cent figure is up about 12 per cent on quarterly figures released last November.

"It is not a policing issue, it is a whole of community issue and everybody should be working together to try and address these issues and to make it very, very difficult for people to commit offences," Deputy Commissioner Lucinda Nolan said.

A Mastercard spokeswoman said the company is surprised police are concerned about tap-and-go technology since industry data reveals there's been no increase in fraud specifically relating to such cards.

"We have asked Victoria Police to clarify the source and nature of their crime statistics," she said.

Family violence is also up with a big jump in the number of intervention order breaches which have caused the category of other crimes to rise by 15.5 per cent.

Ms Nolan said breaches of intervention orders had significantly increased, but that did not mean they were not working, just that police were stronger in enforcement.

"So that when there are breaches, whether they are minor or major police are taking action," she told reporters on Wednesday.

Chief Commissioner Ken Lay said 40 per cent of crimes committed against a person occurred in the home.

"This underlines the impact of family violence," he said.

There were 12,607 more offences overall committed in Victoria over the year, a rise of 3.1 per cent.

Ms Nolan said methamphetamines are challenging cannabis for the drug related to the most offences, with ice continuing to have a very bad impact on the community.

"You see the impact it has, particularly on the regional centres and rural communities, it is absolutely huge, how it has impacted on those families and those local communities," she said.

But there was some good news for police, with robberies down by 15.4 per cent and property crimes decreasing by 2.6 per cent.

15.02 | 0 komentar | Read More

MP says give 'measly' $25m to SPC

Federal cabinet will discuss a proposal to co-invest in SPC Ardmona's fruit processing operations. Source: AAP

PRIME Minister Tony Abbott has used the rejection of taxpayer support for fruit processor SPC Ardmona to set an important "marker" for how his government will deal with requests for industry assistance.

The 93-year-old Victorian company wanted a $25 million federal grant, topped up by $25 million from the Victorian government and its own $150 million investment, for new product development and technology to prop up its operation.

But after three hours of debate in federal cabinet on Thursday, Mr Abbott said the plan was rejected because it was not the government's job to restructure a particular business.

The decision, which workers and growers fear will lead to the operation's closure, comes weeks after Holden's bid for support was rejected and its parent company General Motors announced the end of car production in Australia in 2017.

"The decision that came from the cabinet today does set an important marker," Mr Abbott said.

"This is a government which will make sure that the restructuring that some Australian businesses need, that some Australian sectors need, is led by business, as it should be."

The government's role was to create the right climate for business, he said.

Mr Abbott said SPC Ardmona - owned by food giant Coca-Cola Amatil - was a strong business with the resources to allow it to restructure.

The company advised the government it was prepared to invest an extra $161 million into the business and renegotiate its enterprise bargaining agreement.

Mr Abbott said the company's present EBA had conditions "well in excess of the award", including a wet allowance and generous redundancy provisions.

However SPC Ardmona managing director Peter Kelly said the company would review its business plans.

"This is an unexpected and extremely disappointing decision by the coalition, particularly after the enormous support we have received for our business plans from the local community and beyond," Mr Kelly said.

Acting Opposition Leader Tanya Plibersek said the government had failed in its fundamental role - to protect jobs and bring on new investment.

"First they forced General Motors Holden out - now they are sending SPC Ardmona to the wall," Ms Plibersek said.

Labor pledged at the 2013 federal election to provide the $25 million grant.

If the plant closes, it is estimated 1500 direct and 2700 indirect jobs could be lost in the Shepparton region.

Shepparton mayor Jenny Houlihan said workers faced an unknown future.

"The $25 million that the government refused to let go today will be eaten up in unemployment benefits," she said.

Australian Manufacturing Workers' Union national secretary Paul Bastian said workers had been improving productivity, but other factors were affecting the business, such as the dumping of cheap imports and the high dollar.

"The government directly and indirectly subsidises mining, agriculture, finance, fisheries and other important Australian industries and yet it is continually cutting investment in manufacturing," Mr Bastian said.

"Soon, when we go to the supermarket ... there will be nothing left made in Australia."

Victorian Opposition Leader Daniel Andrews said if state premier Denis Napthine could not convince Mr Abbott to stump up $25 million for SPC Ardmona, he struggled to see how Dr Napthine could secure $300 million for Toyota as it considers its future.

15.03 | 0 komentar | Read More

Cruise ship returns with sick toll at 700

A cruise ship on which nearly 700 passengers and crew fell ill has arrived home in the US. Source: AAP

A CRUISE ship on which nearly 700 passengers and crew fell ill has arrived at its home port in the US after a Caribbean voyage was cut short by the outbreak.

One woman aboard the Explorers of the Sea yelled, "We made it!" as the ship docked Wednesday at New Jersey. Other passengers, with blankets wrapped around them, stood on deck to watch the ship pull in.

The cause of the outbreak is yet to be determined.

Bill Rakowicz of Canada said he suffered from vomiting, pain and diarrhoea and that his experience was simply "awful".

The US Centres for Disease Control and Prevention said its latest count puts the number of those sickened at 630 passengers and 54 crew members. The ship was carrying 3050 passengers.

Health investigators suspect norovirus, but lab results are not expected until later this week.

If norovirus is to blame, it would be one of the largest outbreaks in last 20 years, the CDC said. A 2006 norovirus outbreak on a Carnival Cruise Lines ship also sickened close to 700.

Norovirus - once known as Norwalk virus - is highly contagious. It can be picked up from an infected person, contaminated food or water or by touching contaminated surfaces. It causes bouts of vomiting and diarrhoea for a few days.

The CDC said it recommended to cruise operator Royal Caribbean that people who still have symptoms be housed in nearby hotels or seen at medical facilities before travelling home.

CDC investigators boarded the ship during its US Virgin Islands Port call on Sunday. They said no single food or water source or other origin has been identified.

15.03 | 0 komentar | Read More