Westpac shares down despite record profit

Westpac has announced a first half cash profit of $3.77 billion and has lifted its interim dividend. Source: AAP

SHARES in Westpac are flat in early trading after the bank revealed a record first half cash profit of $3.77 billion.

Australia's second-largest and oldest bank opened higher before pulling back - just as ANZ did after its record profit was announced on Thursday.

Westpac shares were seven cents down at $34.80 at 1025 AEST on Monday.

ANZ shares were down again on Monday while rivals Commonwealth and NAB had made gains.

Westpac's shares had been predicted to fall given the record run in bank shares of late with many investors regarding them as being full-valued.

Westpac's cash profit - the bank's preferred performance measure - was up eight per cent from the prior corresponding period, beating analysts' expectations.

Net profit for the six months to March 31 was $3.62 billion, up from $3.29 billion a year ago.

Westpac lifted its fully-franked interim dividend to 90 cents, from the previous 86 cents.

However, unlike the two previous half years, no 10 cent special dividend will be paid on top of the distribution this time as some had expected.

The bank followed ANZ's lead last week in posting a decline in margins due to high competition for mortgage customers.

Westpac had been expected to increase net interest margins - the difference between its funding and lending costs - but it declined eight basis points to 2.11 per cent.

The bank still increased housing loans by five per cent. It already has Australia's second largest share of housing loans, behind Commonwealth Bank.

Westpac chief executive Gail Kelly said that the world economy had improved in recent times with Europe pulling out of recession and the US slowly moving towards trend growth.

Mrs Kelly said that she was positive about the second half for the bank.

The bank's tier capital adequacy ratio of 8.82 per cent - equity capital versus total risk-weighted assets - is the best of the big four banks.

"Our focus on tilting to growth is delivering, and this is expected to continue into the second half of the year," she said.

IG market strategist Evan Lucas said the profit result was stellar but, digging deeper, the result looked benign with institutional banking's earnings going backwards - an area in which the other major banks have increased.

"At the moment, the banks are really easy to poke holes in because they are so fully (share price) valued," he told AAP. He predicted a repeat of ANZ, with a possible fall in its share price on Monday despite a record profit.

"(The profit) comes down to their consolidation rather than growth story ... they are eking out profits that way."

15.02 | 0 komentar | Read More

CMC probes public service crime links

QUEENSLAND'S corruption watchdog is investigating links between organised crime and the public service.

Acting Crime and Misconduct Commission (CMC) chairman Ken Levy says 32 misconduct matters are under way, including four probes that began in March.

"The CMC has a number of active investigations into possible links between organised crime and the public sector," he told the parliamentary committee that oversees the CMC on Monday.

During the hearing, opposition MP Jo-Ann Miller asked if the CMC was working with the NSW Independent Commission Against Corruption, or investigating Australian Water Holdings, the Ipswich Council or any "dodgy developer deals" in the Ripley Valley.

"That is a potential operational matter," Dr Levy replied.

"I'm happy to answer that in a closed session."

Dr Levy was also tight-lipped about which government ministers attended a meeting on March 5, two weeks before controversial legislation overhauling the CMC was introduced.

But when opposition MP Yvette D'Ath produced the diaries of a number of ministers he opened up a little.

Ms D'Ath said Deputy Premier Jeff Seeney, Attorney-General Jarrod Bleijie and Health Minister Lawrence Springborg were present, but there was conflicting information on whether Premier Campbell Newman was also there.

"I'll be specific about that one, and the short answer is 'no'," Dr Levy said.

Dr Levy, who has not opposed the government's CMC reforms, said he wasn't asked at the meeting to stay on past the end of his contract.

15.02 | 0 komentar | Read More

Tax office takes up laundering

TAXPAYERS will foot the bill for washing machines, a tumble dryer and sandwich makers for the Australian Tax Office.

A tender closes this week for whitegoods to go into ATO offices around the country over the next four years.

Among the items being sought are two washing machines and washing powder, a tumble dryer, triple-door glass-fronted fridges, 354 bar fridges, 32 pie ovens and 454 sandwich presses.

The tender documents state the items will meet the ATO's "business requirements" and ensure that "breakout areas, communal spaces and beverage points are equipped with quality whitegoods".

The ATO is seeking one national contractor to supply, deliver, install, maintain and replace the goods to all of its sites, including new buildings and refurbished offices.

It also requires the "bulk supply of consumables" such as dishwasher tablets and washing powder.

Among the objectives of the tender, according to the documents, is to "represent value for money" and provide a "healthy and safe working environment".

Comment is being sought from the tax office.

15.02 | 0 komentar | Read More

Budget reason for ditching trip: minister

THE only reason Prime Minister Tony Abbott dumped a planned trip to Indonesia was for hands-on involvement in his government's first budget, a senior minister insists.

Immigration Minister Scott Morrison denies a reported boat turn-back operation is behind Mr Abbott's cancelled plans to attend a regional forum in Bali on Tuesday.

The minister also refused to say whether a boat had in fact been intercepted, in line with his policy of not commenting on "on water" matters.

"The prime minister's reason is as articulated," he told Sky News on Monday.

Mr Abbott's office has not given a reason for cancelling the trip.

But Mr Morrison said it demonstrates Mr Abbott's "very hands-on" approach to the budget.

"He's steering the ship."

The Indonesian government says it was given no explanation on Friday for Mr Abbott's decision to postpone the meeting, nor any indication that asylum seekers are being sent back.

In the lead up to the budget Mr Abbott has attended every meeting of cabinet's razor gang - unusual for a prime minister.

The final full cabinet meeting ahead of the budget this week was pushed back to Wednesday to accommodate Mr Abbott's planned trip.

Indonesian President Susilo Bambang Yudhoyono invited Mr Abbott to attend the Open Government Partnership forum in a move that was seen as a real step towards repairing the bilateral relationship, which hit rocky waters last year.

15.02 | 0 komentar | Read More

$15m boost to Vic mental health

Victoria will allocate an extra $15 million to mental health resources to reduce pressure on police. Source: AAP

MENTAL health services will get a $15 million boost in the Victorian budget to help change the way specialist, police and ambulance services respond to people with mental illness.

The investment, over four years, will create a new locally based, co-ordinated mental health crisis response.

Mental health workers will work with police and ambulance workers to tailor responses to someone needing urgent support.

The budget allocation also aims to reduce pressure on police, ambulance and emergency department resources.

Mental Health Minister Mary Wooldridge says the initiative draws on previous trials, which brought together mental health workers and police to respond to a crisis to avoid it escalating and involving an emergency department.

The trials found people suffering a mental illness episode were less likely to end up in the local emergency department and police units could be released to other duties more quickly, she said.

15.03 | 0 komentar | Read More

Firefighter bravery recognised

FIREFIGHTERS who attended a fuel spill with the potential to ignite and threaten a Sydney peninsula faced a choice.

Leave the two million litre tank to leak, evacuate the peninsula around Banksmeadow on Botany Bay and wait for a catastrophic explosion.

Or volunteer to wade through the fuel pool and repair the leaking valve.

NSW Fire and Rescue (NSWFR) station officer Ron Morasso looked at his colleagues and made his choice.

"I said to him, 'what was going through your mind'?" NSWFR commissioner Greg Mullins told AAP after presenting Mr Morasso with the fire service's highest bravery award.

"[Mr Morasso] said to me, 'I looked at my crew and thought - he has two young kids, his wife is pregnant, he is only young...it's got to be me'."

Mr Mullins said even a spark from a car passing the Caltex fuel terminal would have risked an explosion with enough ferocity to close Sydney airport and any subsequent fire might have taken days to extinguish.

Mr Morasso, who has since retired, was presented with the NSWFR medal for conspicuous bravery on Saturday.

Other crew members who responded to the spill in July 2013 also received commendations.

Meanwhile, two firefighters who rushed to the aid of a man on fire after a petrol tanker crash on Sydney's northern beaches were also recognised.

Mosman crew members Lloyd Mulder and George Cheeke stayed with the man, who crawled from his car after it burst into flames, until he died at the roadside last October.

Witnesses Andrew Cochran and Maria Tosone also received commendations for trying to pull the man and another person from the car on Mona Vale Road.

And 12 firefighters who responded to a fire at a unit complex in Bankstown in the city's west, where two women attempted to escape by jumping from a fifth floor window, were also among commendation recipients.

Mr Mullins said the blaze was so intense that firefighters' uniforms caught fire and helmets melted.

15.03 | 0 komentar | Read More

Vic govt to unveil infrastructure spend

Tuesday's Victorian state budget is expected to contain a number of major infrastructure projects. Source: AAP

MELBOURNE'S East West Link tunnel will get more funding and light will be shed on plans for a Melbourne airport rail link in Tuesday's state budget.

Victoria is expected to remain in the black with the state on track to reach its net surplus target in a budget that will focus on major infrastructure projects six months out from an election.

State funds will flow for the second stage of the $18 billion East West Link road project, including $1.5 billion from the Commonwealth, while details of a plan to link Melbourne's CBD by rail to the Tullamarine airport will be unveiled for the first time.

Treasurer Michael O'Brien says that in contrast to the federal budget, which is expected to include significant spending cuts and possible tax increases to cut the deficit, Victorians can expect strong surpluses over the next few years.

Net debt will also fall over the forward estimates and there will be a focus on major infrastructure projects which create jobs, he says.

"The Victorian budget is in a very different position to the federal budget," Mr O'Brien told reporters on Friday.

"We're in surplus here in Victoria and we're going to have strong surpluses across the forward estimates."

Mr O'Brien says the government will be delivering the major infrastructure projects Victorians want to see to improve their quality of life, thanks to good economic management.

"We're funding major job creating infrastructure through strong surpluses, through good economic management and through asset recycling," he said.

The budget is expected to contain more money to progress the Melbourne Metro Rail project, a $10 billion underground cross-city tunnel designed take on thousands of extra passengers and connect the Dandenong and Sunshine rail corridors.

A swag of pre-budget announcements have been made, so far including: more than $1 billion to remove eight level crossings across Melbourne; $190 million to cut elective surgery waiting lists; a $220 million project to upgrade country rail and build a standardised rail link between Mildura and Geelong.

Mr O'Brien says the public service is safe from further cuts this budget, but it is yet to be seen what further pain may be in store for Victorians.

The government has already blamed a cut in the state's GST revenue from 90 cents in the dollar to 88 cents in 2014-15 for a $32 hike in car registrations and an increase in vehicle stamp duty.

The government says the extra charges would fund major transport infrastructure in the budget.

15.03 | 0 komentar | Read More

Greens say they're the party to fix NSW

The Greens have announced their upper house line-up for the upcoming March 2015 NSW state election. Source: AAP

THERE'S a smell wafting from the Labor and Liberal party rooms in NSW parliament, the Greens say.

Just days after police minister Mike Gallacher stepped aside following claims in front of the Independent Commission Against Corruption (ICAC) over illegal donations to the Liberal Party, Greens NSW MP John Kaye announced on Sunday his new upper house team for the March 2015 election.

Joining him on the ticket will be existing MP Mehreen Faruqi, as well as coal seam gas campaigner and political advisor Justin Field.

Mr Kaye said the team would be highlighting their credentials as an alternative to the major parties.

"NSW politics has been plunged into crisis, not just by the Labor party but also by the Liberal party's endemic addiction to collecting funds from tainted sources," he told AAP.

"This is the time for reform. This is the election campaign where politics needs to change."

Mr Field, who is third on the ticket, said he will be taking out the message of clean water, energy and politics out into the community.

"A stench of corruption now hangs over NSW parliament, but only the Greens are able to say they can clean up politics."

The announcement comes after the Labor party revealed on Sunday that a "record number" of their party's supporters had voted for former MP Verity Firth to be the next state candidate in the Sydney seat of Balmain.

She narrowly lost the marginal inner-city seat to Greens candidate Jamie Parker at the 2011 election.

Mr Parker said the Greens were confident that there needs to be change.

"It doesn't matter who the candidate is, we have seen before that he structure of Labor means they are silenced ... I stand for a different approach to politics," he told AAP.

He said one of the bills the Greens would be be introducing to parliament in the following months is a push to implement 2010 ICAC recommendations on lobbying in NSW.

This included a recommendation to set up an independent body to oversee the role of lobbyists.

15.03 | 0 komentar | Read More

Alarm saves Qld girl from deliberate fire

A smoke alarm has helped a teenage girl escape a house fire in Queensland. Source: AAP

A TEENAGE girl has escaped a house fire that may have been deliberately lit in central Queensland.

The fire started at a home in Bundaberg just before midnight on Friday.

A smoke alarm woke a 15-year-old girl, who managed to get out of the house just in time.

Police believe Chad Mclean Hunter, 32, may be able to assist them with their investigations and have called for him to come forward.

15.03 | 0 komentar | Read More

Man abducts, attacks Qld woman in her car

A MAN has attacked a woman after jumping in her car at a north Queensland car wash and telling her to drive to an industrial area.

Police say the woman was cleaning her car in the early hours of Saturday morning when a man jumped in and told her to drive to a nearby industrial area.

When they stopped he snatched the keys from the ignition and the pair began to struggle.

But the sight of a patrolling police car caused the man to run away.

The woman was taken to hospital with cuts and abrasions to her face, back, legs and an injury to her arm.

Police are searching for the man.

15.03 | 0 komentar | Read More