Total fire bans blanket much of NSW

TOTAL fire bans have been declared across much of NSW, including the greater Sydney region, where the fire danger is expected to be severe.

The fire bans will be in place from midnight (AEDT) on Saturday for the far north coast, north coast, greater Hunter, greater Sydney region, Illawarra and Shoalhaven, central ranges, New England, northern slopes, northwestern and upper central west plains districts.

Severe fire weather would affect towns including Newcastle, Narrabri, Lismore and Coffs Harbour, the Rural Fire Service said on Saturday.

The Bureau of Meteorology said a front would move through eastern NSW on Sunday, increasing westerly winds ahead of a strong southerly change moving up the coast.

Temperatures would drop but humidity would remain low into the evening, the bureau said.

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Man hid drug ice in his underpants: police

A Sydney man has allegedly been caught with $11,000 worth of the drug ice hidden in his underpants. Source: AAP

A SYDNEY man has allegedly been caught with $11,000 worth of the party drug ice hidden in his underpants.

Police say they were patrolling the Surry Hills nightclub strip Oxford Street on Saturday when they saw two men acting suspiciously about 4am (AEDT).

Officers stopped and searched the men's car, and a check revealed one was wanted on an outstanding warrant and he was arrested.

The 23-year-old was taken to Surry Hills police station, where it's alleged 41 bags of methamphetamine were found in his underpants.

Police estimate the alleged haul had a street value of $11,000.

More than $4000 cash was also seized during the search, police say.

The man, from Westmead, has been charged with dealing with property suspected of being proceeds of crime, supplying a prohibited drug and possession of a prohibited drug. He was also charged over the outstanding warrant.

He was refused bail during an appearance at Parramatta Bail Court on Saturday, police say, and is due to reappear in court next week.

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Plibersek lashes WA premier

Deputy federal Labor leader Tanya Plibersek (pic) has slammed West Australian Premier Colin Barnett. Source: AAP

DEPUTY federal Labor leader Tanya Plibersek has taken a swipe at West Australian Premier Colin Barnett, saying he has "broken promise after promise" since winning a second term.

Ms Plibersek used much of her address at the state Labor Party's annual conference in Belmont on Saturday to lash the Liberal leader.

"Like the Liberal state premiers in the eastern states, Colin Barnett is showing the people of WA a little preview of what they can expect from a Tony Abbott government," she said.

"You say as little as possible to get elected and you do your worst once you get there."

She lambasted Mr Barnett for cuts to education, closing wheat-belt rail lines, a 12.5 per cent increase in land tax and his government's failure to deliver a pledged redevelopment of Royal Perth Hospital.

"West Australians did not get the Colin Barnett they voted for," Ms Plibersek said.

Also at the conference, there were several references to the need for unity in the party, while Ms Plibersek paid tribute to Labor Senator Louise Pratt, who had endured weeks of stress waiting to find out whether she had retained her seat.

The Australian Electoral Commission will announce the results of the WA Senate recount and distribution of preferences after 2pm (WST).

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Furniture factory ablaze in Sydney

Fifty firefighters are battling a large blaze at a western Sydney furniture factory. Source: AAP

FIFTY firefighters are battling a large blaze at a western Sydney furniture factory.

Fire & Rescue NSW (FRNSW) says no one is feared missing but the fire has spread into the roof of the single-storey factory on Warren Avenue, Bankstown.

The fire has been contained but crews were still working to extinguish the flames on Saturday evening.

One man has been taken to hospital suffering smoke inhalation, a FRNSW spokesman told AAP.

"Firefighters have managed to protect adjoining properties," he said.

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Man injured in Bathurst ute roll

A man has sustained serious head injuries in a ute accident in NSW, police say. Source: AAP

A MAN has sustained serious head injuries in a ute accident on a private property south of Bathurst, NSW.

Police say the ute rolled at a property at Perthville about 4.30am (AEDT) on Saturday.

A 29-year-old local man who'd been travelling in the ute tray was thrown from the vehicle and suffered serious head injuries.

He's been airlifted to Westmead Hospital and is in a serious but stable condition.

The driver, a 33-year-old man from North Richmond, was taken to Bathurst Hospital with suspected rib injuries.

His front-seat passenger, a 29-year-old man from Pokolbin, escaped with bruising.

Police will interview the men once they are deemed well enough.

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Aussies detained in Sri Lanka fly home

TWO Australians detained in Sri Lanka since Wednesday are on their way home, Foreign Minister Julie Bishop says.

The International Federation of Journalists (IFJ) says its Asia-Pacific director Jacqui Park and her deputy Jane Worthington have been "extensively" interrogated since they were taken into custody.

They were taking part in a press freedom meeting in Colombo, according to the IFJ.

Ms Bishop said she had spoken to her Colombo counterpart.

"The Sri Lankan foreign minister has assured me they are on their way home as we speak," she told reporters in Perth on Friday night.

Sri Lankan Information Minister Keheliya Rambukwella has told local journalists the two Australians had arrived in the country as tourists but were instead engaging in "anti-government activism".

"We have no personal interest in the two individuals but they have broken the visa conditions," the minister said on Thursday.

"We are treating them according to the law. That means they will be sent back."

The IFJ said in a statement that the women's passports were confiscated on Wednesday and although they agreed to leave Sri Lanka by the following day, ahead of their scheduled departure on Friday, they were later told they could not leave.

The IFJ has denied the women were involved in any anti-government activities or breached their visa conditions, instead describing their detention as an attempt to intimidate and harass journalists in the lead-up to the Commonwealth Heads of Government Meeting later this month.

The organisation says Sri Lankan officials had kept a file on Ms Park, detailing her 17 visits to the country over 15 years.

"She has been subjected to several lengthy interrogations of up to nine hours focusing on her movements in Sri Lanka and associations with local media personnel," the IFJ said.

The pair are due to touch down in Sydney on Saturday morning and are expected to be met by the head of the Australian journalists' union, Media, Entertainment and Arts Alliance secretary Chris Warren.

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Second bikie case postponed in Qld

A SECOND bikie court case has been postponed in Queensland because of comments made by Premier Campbell Newman.

A case in the Cairns Magistrates Court was adjourned on Friday, a day after a Supreme Court judge put a Brisbane bikie bail case on indefinite hold.

The defence lawyer in the Cairns matter asked for the case to be postponed pending the outcome of an appeal by the Director of Public Prosecutions against Justice George Fryberg's decision in the Supreme Court.

Justice Fryberg ruled on Thursday there was a risk comments by Mr Newman would be seen to have influenced the outcome and the court's integrity would have been affected.

The premier was quoted in media urging judges to act according to community expectations.

In Cairns, Odin's Warriors bikies Peter Johnson and Mark Filtness, both 47, were the first gang members arrested and charged with offences under the state's new anti-bikie gang laws.

Both were released on bail, but they returned to court on Friday afternoon, where Defence Lawyer Philip Bovey asked for the case be postponed.

"I have asked the magistrate to adjourn pending a consideration of the issue raised by Justice (George) Fryberg in the bail review matter of Brown," Mr Bovey told reporters outside court.

The Cairns case was adjourned until November 15.

In the appeal documents, the DPP argued Justice Fryberg shouldn't have taken into account a media report of the premier's comments as it was irrelevant.

The documents also reject the judge's finding that a reasonable member of the public would perceive the comments would influence the court, and that an appropriate response was to stay the proceedings.

Alleged Bandido Jarrod Brown was granted bail in the Holland Park Magistrates Court on October 18.

He's charged with drugs and ammunition possession, possessing drug paraphernalia and obstructing police.

He faced court a day after strict new laws designed to stop bikies walking free on bail were passed.

The DPP applied for a Supreme Court review of the magistrate's decision last week, but Justice Fryberg put the application on hold until further order because of Mr Newman's comments.

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School kids escape Sydney bus fire

School children have fled a burning bus after it caught fire on the M2 motorway in northwest Sydney. Source: AAP

DOZENS of children from rural NSW had a city excursion to remember, with their bus bursting into flames on a busy Sydney motorway.

All escaped uninjured, but a quick-thinking off-duty policeman who inhaled smoke as he attempted to douse the flames is in hospital under observation on Friday night.

The Transport Safety Bureau will investigate how the fire broke out on the bus as it travelled along the M2 at Baulkham Hills just after 3pm (AEDT).

Inspector Phil Brooks from the NSW Police Traffic and Highway Patrol Command said the officer was riding his motorcycle home from work when the bus burst into flames.

As teachers led about 35 school children away from the burning bus, the officer ran toward it with a small fire extinguisher.

"He was able to intervene very quickly, and we'll certainly look at acknowledging his efforts," Insp Brooks told the Nine Network.

He said the students and teachers were on their way back to Orange in central NSW after a school excursion.

A Fire & Rescue spokeswoman told AAP the engine compartment of the bus had caught fire and the first emergency call came in at 3.13pm.

Three fire crews extinguished the blaze.

A NSW Police spokeswoman said the Office of Transport Safety Investigations would look into how the fire started.

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WA Senate result to be revealed

Greens senator Scott Ludlam says the AEC should hold off declaring the WA Senate election. Source: AAP

THE result of the West Australian Senate vote recount is set to be revealed this weekend amid concerns that more than 1300 missing ballots may mean the state has to go to a new election.

The Australian Electoral Commission (AEC) directed a recount of some WA Senate ballot papers, prompted by the close result of just 14 votes for the sixth Senate seat and appeals by the Australian Greens and Australian Sports Party.

During the recount, that looked at informal votes and 1.2 million above-the-line ballot papers, 1375 votes which had been verified in the initial count could not be "located, rechecked or verified in the recount process".

The AEC apologised and has hired former Australian Federal Police commissioner Mick Keelty to independently, and urgently, inquire into the matter.

Meanwhile, the AEC WA manager Peter Kramer says the results of the recount and distribution of preferences will be known on Saturday afternoon and the candidates have been asked if they want to appoint scrutineers to observe the distribution of preferences.

But some politicians including Australian Greens Senator Scott Ludlam, and Palmer United Party leader Clive Palmer have decried the process.

Mr Palmer believes the original election result should stand.

The initial result gave seats to the Palmer United Party's Zhenya Wang, Labor's Louise Pratt and Joe Bullock and the Liberals' David Johnston, Michaelia Cash and Linda Reynolds.

AEC spokesman Phil Diak said there was nothing to suggest an "untoward removal" of the ballot papers.

Special Minister of State Michael Ronaldson did not think it was an "issue of skulduggery", but said it was a disturbing development which required an inquiry.

Independent senator Nick Xenophon thinks there should be a fresh election in WA if the ballot papers cannot be found.

"Better to cost money now than have a result where there is a question mark over those that have been elected," he said.

Opposition Leader Bill Shorten said WA deserved an explanation and while there was a way to go with due processes, another election could not be ruled out.

"This is a very serious matter," he said in Canberra.

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Qld reef assessment paints grim picture

The federal and Queensland governments have released a new plan to protect the Great Barrier Reef. Source: AAP

FEDERAL Environment Minister Greg Hunt says a new long-term plan will improve the health of the Great Barrier Reef and increase protection, but green groups say it doesn't go far enough.

The long-awaited strategic assessment draws on scientific evidence to give an overview of the state of the reef and outlines a plan to better protect the World Heritage site.

Mr Hunt acknowledged there were some serious concerns, but is hopeful the strategy will ensure the reef's survival.

"What has happened in the past is what we have to live with, but we can control and improve the future of the reef through our actions," he told reporters on Friday.

The assessment concluded the best way to halt and reverse damage to the reef was to put in place a new management framework and examine the "cumulative effect of human activities and natural forces", rather than threats in isolation.

Mr Hunt said the framework would set tougher environmental standards for future developments.

"We make no apology for applying tougher standards going forward," he said.

The report also called for a "net benefit policy", so that any activities along the coast and in the marine park produced an overall benefit to the reef.

It also said a new reef recovery program was needed, involving local communities, industry and indigenous groups, as well as a reef-wide monitoring and reporting program.

Australian Marine Conservation Society spokeswoman Felicity Wishart welcomed the assessment but said developments along the state's coast must be stopped if Australia was serious about protecting the reef.

"If the target is to improve the health of the reef then stop doing anything that's going to damage it," she told AAP.

Ms Wishart called for Mr Hunt to reject a proposal to expand the Abbot Point coal port near Bowen if he was serious about improving water quality.

That project involves dredging three million tonnes of soil and dumping it on the reef.

WWF Australia spokesman Nick Heath said the report confirmed large sections of the reef were in "dire straits".

He said given the assessment showed inshore areas were in either poor or very poor condition, those in power couldn't justify approving inshore dredging projects.

The report found that while corals were in good condition at the northern end of the reef, both inshore and offshore corals in southern areas were in decline.

The biggest threats came from the crown-of-thorns starfish, severe weather, nutrient and pesticide run-off from farms, illegal fishing, bycatch and dredging.

Great Barrier Reef Marine Park Authority chairman Russell Reichelt said while many of the impacts of those threats were already widely known, the assessment had looked at their "accumulative impact".

"There needs to be a multi-pronged approach," he said.

"(With this in mind) we can make a difference and restore the damage to the reef."

Queensland Deputy Premier Jeff Seeney said it was important for decisions about the reef to be based on scientific facts, not "alarmist claims" by environmental groups that can't be verified.

The strategic assessment will be open for public comment until January 31.

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Melbourne Cup day rate change unlikely

There is growing confidence the cash rate will remain unchanged at the RBA's November board meeting. Source: AAP

THERE is growing confidence the central bank will leave the official cash rate unchanged at its November board meeting for the second year in a row.

Between 2006 and 2011 the first Tuesday in November not only marked the race that stops the nation, but a Reserve Bank of Australia (RBA) rate cut.

But new economic figures suggest punters can enjoy next Tuesday's Melbourne Cup without worrying what action the RBA will take.

Low interest rates appear to be gaining traction in the housing market as monthly new building approvals soared to their highest number in three and a half years.

Master Builders Australia chief economist Peter Jones said the dramatic 14.4 per cent jump in approvals in September signals that the struggling building industry has weathered the worst and a genuine recovery is now in train.

"A long and strong recovery in residential building will be crucial in ensuring a successful rebalancing of Australia's economy post the resources boom," Mr Jones said in a statement.

A total 16,318 homes where given the nod of approval in September, the largest monthly number since March 2010, Thursday's data showed.

The result was bolstered by a 31.8 per cent spike in dwellings excluding houses - such a apartments and townhouses - to a record 7780 units.

This pipped the previous peak of 7855 set in October 2002.

Despite this surge in approvals and gains in house prices more generally, there remains little sign of a credit-fuelled bubble in the housing market.

New RBA data shows credit for housing remains contained, rising 0.4 per cent to an annual rate of 4.8 per cent

Annual housing credit was running at double-digit growth prior to the 2008-2009 global financial crisis.

Separately, trade price data for the September quarter indicates the terms of trade has resumed its decline after steadying in the first six months of 2013.

The terms of trade, a measure of the nation's income, showed that while export prices grew 4.2 per cent in the quarter, they were outpaced by a 6.1 per cent rise in import prices.

Macquarie Research economist Gabby Hajj said the data suggests net exports are likely to subtract from economic growth in the September quarter.

"Given Australia's exports have been a key support for growth over the past several quarters, a large drag from net exports would be problematic," he said.

RBC Capital Markets head of strategy Su-Lin Ong said on balance Thursday's data will provide the RBA with some reassurance that low rates are working, albeit modestly.

"Given the RBA's reluctance to ease further, this is probably enough to keep them on the sidelines for the next few months," Ms Ong said.

The cash rate sits an all time low of 2.5 per cent.

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PNG could open more detention centres: PM

Peter O'Neill says PNG is ready to open more asylum seeker detention centres if Australia asks. Source: AAP

PAPUA New Guinea is ready to open more asylum seeker detention centres if Australia asks, its prime minister says.

Peter O'Neill says the asylum seeker deal signed with the previous Australian government has recently been affirmed by the new government.

Mr O'Neill says he's absolutely committed to "lifting our share of the weight" when it comes to people smugglers.

"The Manus (Island) detention centre is being rapidly expanded and if needed we will expand it even further, or approve the construction of other detention centres around the country, if requested by the Australian government," he told a business luncheon in Brisbane on Thursday.

While he spoke at the Hilton Hotel a large contingent of police watched over a tiny group of noisy protesters outside calling for the Manus centre to be closed.

An incident last week on Manus Island involving members of PNG's police and military prompted a "red" alert at the centre, and staff had to be moved to a more secure location within the facility.

Asked if he was confident of PNG's capacity to process asylum seekers at the centre, Immigration Minister Scott Morrison said "there is nothing to suggest otherwise".

As of Friday, there were 1061 detainees in the centre.

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New losses at Alcatel-Lucent

TELECOMMUNICATIONS equipment-maker Alcatel-Lucent has lost 200 million euros ($A291.78 million) in the third quarter, including costs of restructuring efforts aimed at turning around the long-struggling company.

It's the latest in a series of losses for the France-based company, and compares with losses of 316 million euros in the same quarter in 2012.

Alcatel-Lucent in a statement on Thursday attributed the latest loss to a financial charge and costs of restructuring, which includes thousands of job cuts, ending unprofitable contracts and focusing on newer technology.

Sales in the quarter were 3.67 billion euros, up from last year's third quarter sales of 3.6 billion euros. The company reported a stronger contribution from broadband and other internet activities, offsetting shrinking activity in older technology. It said sales growth was driven by North America, while sales fell in Latin America and Asia.

Alcatel-Lucent supplies companies such as AT&T, Verizon and France Telecom.

Chief executive Michel Combes, whose predecessor struggled to turn the company around and who recently warned the company could "disappear" if it's not overhauled, said it is continuing asset sales to focus on developing new broadband.

"We are seeing the first positive signs of our new operating model in our day-to-day business," he said.

The company has lost money nearly every year since the 2006 merger of New Jersey's Lucent Technologies and France's Alcatel.

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BNP Paribas makes profit, but revenue down

BNP Paribas, France's largest bank, says profit held up in the third quarter despite a drop in revenue due to weak retail and investment banking activity.

The bank brought in 9.3 billion euros ($A13.57 billion) in revenue, down 4.2 per cent from last year but still above the consensus of analysts surveyed by FactSet.

Net profit, however, was up 2.4 per cent to 1.4 billion euros, buoyed by cost-cutting measures and a smaller provision for bad debt.

The bank said on Thursday its "cost of risk" - money set aside for bad loans - dropped 5.5 per cent. Europe's economic downturn saw once rock-solid sovereign debt become increasingly risky as well as the default of many loans to individuals and companies.

Banks typically set aside cash to provide a buffer for such defaults.

Revenue at its corporate and investment banking division was down 14.6 per cent, partially due to low client activity. But the business also suffered from a tough comparison to the same quarter last year, when bond markets were buoyed by the European Central Bank's promised bond-buying program.

Some segments of the bank's retail operations also saw a slide in revenue.

Revenue was also hit by a 138 million-euro downward own credit adjustment and debit value adjustment.

Still, investors were cheered by the rise in profit. In morning trading, the bank's stock was up 2.9 per cent.

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Vic govt admits ambulance delays a problem

A new report says Victoria's ambulance service failed to meet emergency callout performance targets. Source: AAP

THE Victorian government concedes the state's health service is struggling to get patients into hospital, with a report showing emergency waiting times falling below performance standards.

Paramedics arrived at 73 per cent of the most serious cases within the required 15 minutes in 2012/13, well below the target of 85 per cent, according to Ambulance Victoria's annual report released on Thursday.

Ambulance Victoria chief executive officer Greg Sassella blamed ambulance ramping at hospitals as he acknowledged the failure.

"A key challenge remains the long periods of time it can take for paramedics to hand over patients at hospital emergency departments," he wrote in the report.

Paramedics also failed to meet response time in the bush where they attended 78.1 per cent of jobs in areas with a population of less than 7500 within 15 minutes, below the 90 per cent target.

The figures show that fewer than 77 per cent of ambulance patients were transferred to hospital within 40 minutes.

Health Minister David Davis said the state government was increasing its spending on the ambulance service.

"Transfer times remain a challenge, there's no question about that," he told reporters.

"(But) the additional resources are helping."

Mr Davis conceded the figures needed to improve.

"Sometimes it's the physical infrastructure, sometimes it's a cluster of work, sometimes it is that we just need to have better flows through our hospitals," he said.

The state opposition said the ambulance system is in crisis.

"On every measure our system is worse today than it was a year ago, our system is worse today than it was three years ago," Opposition Leader Daniel Andrews said.

"The premier needs to acknowledge that our health system is not better. It's worse than it's ever been.

"Patients are suffering, patients are dying."

Health department figures show 49,262 people were on the state's elective surgery waiting list on June 30, an increase of 3100 people on the previous year.

Mr Davis said the federal government's budget cuts were having an impact on the figures.

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Car sector reviewed as future 'uncertain'

A new government inquiry has triggered speculation about the car industry's future in Australia. Source: AAP

LABOR and industry have sounded a warning over the future of car-making in Australia, as the government launched an inquiry into ways to boost jobs and exports.

The coalition, which promised ahead of the September election to review auto industry assistance, has asked the Productivity Commission to initially report on the issue by December 20, with a final report due by the end of March.

The inquiry will look at Australia's attractiveness for investment, how other countries assist their car industries, consumer preferences, workplace arrangements and innovation.

It will examine ways to support the industry, including re-targeting the current Automotive Transformation Scheme and reducing taxes and red tape.

Treasurer Joe Hockey says he has a responsibility to spend taxpayers' money wisely.

"We are not running down the street chasing an individual car maker with a blank cheque made out by the Australian taxpayer. It's got to be a partnership," Mr Hockey said.

"We don't want to see any job losses ... but also we want to ensure that Australian taxpayers are not being held to ransom by any company."

Industry Minister Ian Macfarlane will talk with Toyota executives in Japan this week, having already spoken with Holden boss Mike Devereux.

Opposition industry spokesman Senator Kim Carr said manufacturers needed action, not more inquiries.

"This is a government that is now playing chicken with the automotive companies," Senator Carr told AAP.

"They are using this report as a ruse to get them past the South Australian election (on March 15, 2014)."

Senator Carr has been told the board of General Motors, Holden's American owner, had met three weeks ago to discuss the future of Australian operations.

"The mood is bleak," he said.

The former industry minister said Australia lagged well behind other car-making countries in terms of public investment in the industry.

On a per capita basis over a year, Australia spent $17 compared with $90 in Germany and $264 in the United States.

A spokesman for Holden told AAP the company would make a submission to the inquiry, but he would not speculate beyond the current generation of products, which are due to be replaced in 2016/17.

"We are continuing to talk to the government, but we are not going to speculate on deadlines," the spokesman said.

In a leaked email from Mr Devereux to some Holden dealers, the company chief said he would lead the talks with the government before taking up a new senior role with GM in China at the end of the year.

"As you well know, the future of the manufacturing industry is uncertain," Mr Devereux wrote.

He said he would contribute in his new role to the future success of Holden by "influencing the future product portfolio for the Australian market".

South Australian Premier Jay Weatherill said this week the federal government should not delay a decision on a further "co-investment package" for Holden, which employs 1700 people at its Elizabeth plant and another 300 at the engine making plant at Port Melbourne.

Ford signalled this year it would close its Victorian car-making facilities by October 2016.

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Cop punched, Hockey flees Vic uni protest

A ROWDY student protest has ended in Melbourne with five arrests, a police officer being punched in the face and Treasurer Joe Hockey needing police protection from an angry, surging crowd.

About 100 university students were taking part in the National Union of Students' demonstration outside parliament house, protesting against federal government cuts to higher education.

But the large group was met by uniformed police and officers on horseback as they made their way down Bourke Street in the CBD.

Mr Hockey was caught up in the rally when protesters tried to confront him near state parliament, but his security team and police held back the crowd.

"They must have thought I was a Labor politician because it was the Labor party that cut university funding," he later told reporters.

Police say five people were arrested as some protesters began throwing shoes and chalk outside the Liberal Party headquarters.

Protesters also burned items in the street.

A police spokeswoman said several officers were attacked by the group and one of them had to be taken to hospital with minor injuries.

"It's alleged several police members were assaulted during the incident, including one member who was allegedly punched to the face by a protester," she said.

But one of the rally organisers, Sarah Garnham, says students were peaceful and it was the police who were violent.

She said two people were initially arrested - and one of them was unconscious at the time.

"The first I saw of her she is being dragged out, not resisting at all," Ms Garnham told AAP.

"No one in the protest was violent. There was absolutely no violence whatsoever apart from the Victorian police who moved in on us."

She said protesters tried to attend a police station to make a brutality complaint, but police wouldn't let them go inside.

More members of the protest group were then arrested, she said.

The protest site has been cleared but is still being watched by officers.

Police later released a man and woman without charge, but four others were bailed on a range of alleged offences.

A 21-year-old Geelong West man was charged with recklessly causing injury, a 30-year-old Preston woman was charged with discharging a missile and assaulting a police officer, a 27-year-old Preston man was charged with hindering or resisting police and discharging a missile and a 22-year-old Thornbury man was charged with resisting police.

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Tensions rise in Vic police holding cells

Prisoners and police are unhappy that offenders are kept in police cells due to overcrowded jails. Source: AAP

PRISONERS and police officers are unhappy that offenders are kept in police cells due to overcrowded jails.

The Police Association of Victoria says fights have broken out between prisoners kept in police holding areas due to the cramped conditions, putting further pressure on officers.

Court cases will be scheduled on weekends as part of attempts to get matters dealt with as quickly as possible and tackle the problem of overcrowded remand cells.

Police Association assistant secretary Bruce McKenzie says officers are outraged at being taken away from police duties to babysit prisoners.

"We are getting inundated with complaints from our members who have police cells attached to them, who are overburdened by the responsibilities of looking after prisoners in police cells who ought to be in Corrections Victoria facilities," Mr McKenzie said.

Mr McKenzie says the situation has passed crisis point and was becoming a safety concern for prisoners and police officers.

"It is extremely tense in police cells, prisoners are being kept in there for too long," he said.

He said police cells were unsuitable for prisoners and never designed to accommodate them long-term due to the lack of exercise facilities, no programs and not enough access to natural light.

Mr McKenzie says the government needs to act quickly and find a temporary place to hold low-risk prisoners such as a disused military or government facility.

He says prisoners in cells in Ringwood have been fighting with each other due to the cramped conditions.

Attorney-General Robert Clark said weekend court sittings were "well-advanced" and were being scheduled while new prison places are constructed, with the government, corrections and police working together.

"Weekend sittings of the magistrates court are one of the proposed initiatives that have arisen as a result of that collaboration," Mr Clark said.

Opposition police spokeswoman Jacinta Allan said the prison system was not coping with the crisis that was created by overcrowding.

"It is a significant problem, it is a system that is at crisis and breaking point," Ms Allan said.

"Communities in the suburbs and regional victoria are deeply concerned about what it means for their community safety and law and order," she said.

She said up to 500 police a week are being taken off frontline duties to babysit prisoners in police cells.

Costs have recently been awarded against Corrections Victoria in cases where prisoners have not been brought to court, including a $2300 order made on Wednesday because a defendant was not taken to court on the first day of his murder committal hearing last week.

Corrections Victoria says temporary accommodation is being created at prisons to help ease the backlog while prisoners may appear in court via videolink where possible.

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Big two supermarkets focus of govt review

The price war between the nation's big two supermarket chains could hurt consumers in the long run. Source: AAP

THE price war between the nation's big two supermarket chains could hurt consumers in the long run if food suppliers don't have money to invest in their businesses.

With competition policy unchanged in more than 20 years, the federal government is pushing ahead with a "root and branch" review of how it applies to the food industry.

Small Business Minister Bruce Billson says, while intense competition between Coles and Woolworths has led to lower grocery prices, there are concerns this has happened at the expense of suppliers.

"Some of the alleged behaviour of supermarkets may not necessarily breach the competition laws as they are today," Mr Billson told a food industry conference in Canberra on Wednesday.

"But at the same time, it doesn't mean that the status quo is necessarily delivering the most efficient or optimal outcomes for the market, our economy and for our consumers."

Mr Billson described Section 46 of the policy governing the misuse of market power as a "hunting dog that won't leave the porch".

"It looks fantastic, it may growl, but it rarely bites," he told the Australian Food and Grocery Council (AFGC) gathering.

The review's terms of reference will be released by the end of this year, before ahead of the examination in 2014 by an independent panel of eminent business people, competition law experts and consumer groups representatives.

AFGC chief executive Gary Dawson favours an industry code, enforceable through the Australian Competition and Consumer Commission (ACCC), rather than government intervention.

Mr Dawson has already spent many hours with Coles and Woolworths negotiating the code.

"They have entered it in a great spirit. They understand the tensions created by the market conditions as much as anyone," he told the National Press Club in Canberra.

For now, consumers are enjoying "fantastic" low supermarket prices.

"But in the longer run, if we restrict choice, and it has already restricted choice, it restricts innovation, it has a chilling affect on (supplier) investment. That's a problem," Mr Dawson said.

It could also lead to higher grocery prices in the longer term.

Independent South Australian senator Nick Xenophon says it's "genuinely frightening" that Coles and Woolworths hold about 80 per cent of the dry grocery market.

In the UK, four separate chains hold a similar percentage of the market, and the largest chain in the US can only hold about 20 per cent due to laws that limit market share.

"We need similar laws here in Australia. Whatever the outcomes of the federal government's 'root and branch' review ... our courts need to have the power to break up a company that abuses its market power," Senator Xenophon said.

ACCC chairman Rod Sims told the conference the watchdog's final assessment of an investigation into the treatment of suppliers by the major supermarkets been delayed from late this year until around March because of the "complexity and breadth" of the examination.

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NSW drunk drivers to get car lock devices

REPEAT and high-range drunk drivers will have to prove their sobriety before their car starts under a new NSW government program.

An alcohol interlock will be installed on a person's car if they have been caught drink driving twice in five years, or once with a blood alcohol level above 0.150.

Magistrates will also have the power to make motorists keep the interlock in place for longer than the mandatory minimum term of 12 months.

The NRMA suggested the interlocks legislation will be introduced in NSW Parliament next year.

Interlocks are connected to a vehicle ignition and will stop the car from starting if the driver has been drinking.

"Road safety experts estimate the introduction of mandatory interlocks will prevent at least 140 alcohol-related crashes, six fatalities and 102 injuries in the first five years alone," Roads Minister Duncan Gay said.

"We also believe there will also be about 500 fewer drink driving offences per year across the state once mandatory interlocks are introduced."

Drink drivers convicted of a second offence in two years will have to pass a driver's knowledge test as part of the changes.

Drivers who exceed their demerit point limit twice in five years will also have to re-sit the knowledge test and complete an education course.

There is already a voluntary alcohol interlock program operating in NSW.

The government expects the new mandatory program could put interlocks in the vehicles of as many as 8000 people a year.

The opposition supported the program and said it was essential a clear message was sent that drink driving was unacceptable.

"Figures from the NRMA show that one-in-six people caught for a drink driving offence will do it again," opposition roads spokesman Ryan Park said.

"This is one way of trying to stop the number of drink driving tragedies on our roads, especially by repeat offenders.

"If people want the privilege of driving again after drink driving convictions, they should have to install and pay for one of these devices."

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Qld's conservation act shaken up

QUEENSLAND'S opposition says the state's nature conservation act is being gutted to make a quick buck.

In a move government says will improve access and boost tourism, the state's national parks will open to commercial operations under amendments due to be passed on Tuesday.

Environmentalists say the bill will allow ecologically unsustainable uses in protected areas.

Labor's Bill Byrne says the 20-year-old act is being turned on its head so its primary purpose will no longer be to conserve nature but to provide commercial and recreational benefits for humans.

"We readily agree that educational, recreational, cultural and sometimes even commercial activities can be appropriate in national parks, but they must always be secondary activities that are entirely 100 per cent subordinate to the protection of nature," he told parliament.

"The LNP wants to 'open them up' to any charlatan in search of a quick buck."

Under the changes, public input into the management of protected areas will be limited.

It will also be harder for people who injure themselves in national parks after acting recklessly or disregarding warning signs to sue the state.

According to government figures, there are currently nine current claims against the state totalling $11.9 million.

National Parks Minister Steve Dickson said the changes would cut red tape and streamline the approvals process.

There will be no mining, logging, hunting or open slather grazing in national parks, parliament heard.

"What we are trying to do is simplify the whole act so that it's more cost efficient to run," Mr Dickson told AAP.

"The money that's saved can go back into caring for, maintaining and looking after our national parks, that's what this is all about."

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Labor's Wright raises workplace law fears

Labor's George Wright (pic) says the coalition will target unions before targeting work conditions. Source: AAP

ALP national secretary George Wright has warned the coalition's plan to change laws in relation to unions is an "entree" to removing some working conditions.

Mr Wright was a key figure behind the Your Rights at Work campaign, which has been credited with helping Labor win the 2007 election and abolish the Howard government's controversial Work Choices laws.

Work is under way on the Abbott government's initial industrial legislation - relating to the restoration of the Australian Building and Construction Commission and bolstering penalties for union officials found guilty of corruption.

Mr Wright told the National Press Club in Canberra on Tuesday the Abbott government would take a different approach to workplace relations to that taken by Mr Howard.

"I suspect what you will see is a concerted effort by the government to really go after the unions first - union organisation and union finances - obviously as an entree to then have a go at members' conditions," he said.

"They will weaken and probably distract the machinery and organisation that protects workers' rights before they actually go after the rights themselves."

He said he had no immediate advice for the labour movement in how to address it.

"That is something that the labour movement as a whole needs to think about how it effectively responds to."

Making changes to the penalty rates system was an issue raised at a national tourism conference in Canberra on Tuesday.

Tourism and Transport Forum chief Ken Morrison was asked during the conference whether the industry wanted the government to reduce penalty rates.

"What was clear talking to the coalition before the election is they were totally gun shy, they didn't really want to talk about it before the election," Mr Morrison said.

"They said: 'If you want this after the election, business is going to have to lead'. So you're seeing a range of business groups doing that now."

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Kelly pulls out of race for Carr's spot

Mike Kelly (pic) has withdrawn his name from the race for the NSW Senate seat vacated by Bob Carr. Source: AAP

FORMER Labor minister Mike Kelly has pulled out of the contest for the Senate seat vacated by Bob Carr.

"I will not be nominating 4 the Senate vacancy as the decision will be AA (affirmative action) based," Dr Kelly tweeted on Tuesday.

He wished former Central Coast MP Deb O'Neill, widely tipped to be in line for the job, all the best.

Both Dr Kelly and Ms O'Neill lost their lower house seats at the recent federal election.

Last Wednesday, Dr Kelly told AAP he had nominated for the Senate vacancy and, if selected, would commit to recontesting the seat of Eden-Monaro at the next election.

Mr Carr, in his final speech before resigning from the Senate, said he wished he could hand his seat over to Dr Kelly and that he hoped his talents could be "edged" back in to parliament.

The NSW Labor executive will make a final decision on who will fill the Senate vacancy on Wednesday.

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Lenders begin second review of Cyprus

THE "troika" of international lenders began their second review of the shell-shocked Cyprus economy to decide whether Nicosia is meeting its obligations under the bailout memorandum.

In return for 10 billion euros ($A14.52 billion) in aid from international lenders, the island in March agreed to wind down its second largest bank - Laiki - and impose losses on depositors in under-capitalised largest lender, Bank of Cyprus.

Depositors in Bank of Cyprus were hit with a 47.5 per cent bail-in as part of the rescue package.

The second review is expected to be much tougher than the first one - which the island passed with flying colours in July.

Cyprus needs to pass this assessment to receive its next tranche of bailout cash in the deal negotiated with the troika - the European Commission, European Central Bank and International Monetary Fund.

Troika officials began their evaluation at the finance ministry on Tuesday, holding talks with Finance Minister Haris Georgiades and central bank governor Panicos Demetriades.

The focus of the troika's review - scheduled to last until November 8 - is the restructuring of the country's battered banks, public sector reform and how far the government has moved on privatising key state-run telecoms and electricity authorities.

Probing questions are expected over how the government intends to reform the civil service and the unwieldy public sector which is a drain on state finances.

So far the government has tip-toed around these prickly issues as it focused on restructuring the beleaguered banking system.

The government says it is optimistic of a favourable review as it has achieved its fiscal targets beyond that expected by the troika, with deeper spending cuts of 10 per cent in the 2014 budget.

Cypriot officials will also update the troika on the banking sector including the rise in bad loans during an unprecedented recession and the capital adequacy of banks and co-operatives.

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Thailand's ex-PM to fight indictment

A FORMER Thai prime minister and his deputy have vowed to fight any legal charges against them for their alleged role in the death of anti-government demonstrators during a bloody 2010 crackdown.

Ex-premier Abhisit Vejjajiva told reporters on Tuesday he and former deputy prime minister Suthep Thaugsuban are innocent in part because a Bangkok city court ruled at the time that the protest, which had shut down a vast swathe of downtown Bangkok for more than two months, was unlawful.

"We will not run away. We are confident in our innocence," Abhisit said.

On Monday, Thai prosecutors announced they would indict the pair for their alleged role in the death of some of the 90 people, mostly protesters, were killed during the "Red Shirt" rallies in Bangkok three years ago.

The rallies saw tens of thousands of people camp out in the heart of the city in a bid to try to force Abhisit to call early elections. Most of the protesters were supporters of another former premier, Thaksin Shinawatra.

Thaksin was ousted in a military coup in 2006 and lives in exile to avoid a conviction on corruption charges he says were politically motivated. His sister Yingluck Shinawatra now holds the prime minister's post.

The move to indict Abhisit and his deputy follows a controversy surrounding the draft of a law that could grant amnesty to those involved in the political conflict that has marred the country for almost a decade.

The draft has been criticised by opponents - including Abhisit - who say it would whitewash Thaksin's crimes and pave the way for his return to Thailand.

The draft would also give immunity to Abhisit and Suthep for any involvement in the 2010 crackdown, however, and there is speculation the indictment is being used to pressure Abhisit and his opposition party to approve the bill.

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Obeid under renewed ICAC scrutiny

The NSW ICAC has starting hearing fresh allegations of corruption involving ex-Labor MP Eddie Obeid. Source: AAP

EDDIE Obeid was known in the halls of NSW parliament as a fixer but when "stuff hit the fan" in a family business, his brother-in-law says it never crossed his mind to ask the then-MP for help.

Obeid is accused of lobbying state ministers Carl Scully, Michael Costa, Eric Roozendaal and Joe Tripodi to have leases on prime government-owned real estate - home to two Obeid family-owned restaurants - renewed without going to tender.

It's alleged the one-time Labor powerbroker never disclosed his personal connection to the Sorrentino restaurant and Quay Eatery at Sydney's Circular Quay.

The allegations were aired on Monday, the first day of yet another NSW Independent Commission Against Corruption (ICAC) inquiry into Obeid, who has already been declared corrupt by the watchdog in relation to separate matters.

Under questioning from counsel assisting the commission, Ian Temby QC, the ex-MP's brother-in-law John Abood agreed that while he owned Circular Quay Restaurants Pty Ltd (CQPL) on paper, the major owner was really an Obeid family trust.

CQPL, in turn, owned the two restaurants.

The inquiry has heard Mr Abood was given the job to manage the eateries after he struggled to find work.

He said he spoke to "the boys" - Eddie Obeid's sons - and they got together $2.4 million to buy Sorrentino, Quay Eatery and a nearby cafe.

"I was fronting the businesses, not a front for the Obeids - there's a difference, sir," Mr Abood said.

He also denied Obeid was called in to help when NSW Maritime, the landowner, moved to seek expressions of interest from potential new lessees without giving existing retailers preference.

"Going to market in this way has the obvious advantage of ensuring that public assets provide a good return to the public purse," Mr Temby said in his opening address.

Ultimately NSW Maritime altered its draft commercial lease policy to allow for direct negotiations with existing tenants and new leases were indeed granted to CQPL in 2009.

"When, if you want to say - excuse me commissioner - that stuff hit the fan, we had to react to that," Mr Abood testified.

"I never even contemplated talking to Eddie about it and I never did, sir."

The three-week inquiry is part of three fresh investigations by the corruption watchdog, codenamed Cyrus, Cabot and Meeka.

It will also examine claims Eddie Obeid influenced public officials to allow generous water licences for a coal-rich Hunter Valley property owned by his family.

It's also been alleged Obeid hand-delivered to then-Treasurer Michael Costa a letter requesting a meeting with a director of Direct Health Solutions, without revealing that his family and long-time associate Rocco Triulcio had a combined $450,000 investment in the company.

Mr Temby has foreshadowed that along with Obeid, prominent bureaucrats Steve Dunn - who recently headed up the O'Farrell government's controversial Game Council review - and Mark Duffy could face corruption findings.

Obeid has denied any wrongdoing but promised to cooperate.

"No one is ever happy with having to answer continuous allegations but as long as they have hearings, I'll keep turning up," he told the Seven Network.

"I'm not corrupt - and time will tell."

He is expected to give evidence next week.

The inquiry continues before Assistant Commissioner Anthony Whealy QC.

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No taker yet for $30m lottery ticket

THE champagne is still on ice at Lotterywest headquarters in Perth, as the identity of the state's $30 million Powerball winner remains a mystery.

One lucky entrant picked up the entire $30 million division one prize pool last Thursday night, equalling the largest lottery prize ever won in the state.

The only details released by Lotterywest is that the winning ticket was sold in Perth's northern suburbs.

But despite the size of the prize, no winning ticket holder has come forward to claim the massive prize, although he or she has 12 months from the date of the draw to bring in the winning ticket.

The win is the latest in an amazing run of luck for lottery players in the state in 2013.

In February, the state recorded a $20 million win, followed by a $10 million win in May, another $20 million win in August, followed by the $30 million jackpot last week.

About 70 WA players have collected a division one lottery prize in 2013.

And WA players will have another chance to win big this weekend, when $22 million goes on offer in Saturday's Gold Lotto Superdraw.

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Boy, 4, burns down house with lighter

A FOUR-YEAR-OLD boy playing with a lighter is believed to have started a fire that burned down his house on the NSW mid-north coast.

Police say the boy's father pulled the youngster and his other two children to safety.

But he was unable to save the house, despite trying to extinguish the blaze with a garden hose.

Police say they have been told the preschooler might have been playing with a cigarette lighter before the fire started in a pile of clothes in his bedroom on Saturday.

Detective Inspector Kim Fehon said the family was lucky to avoid injury.

"It's essential that matches, lighters or barbecue fire starters should be kept securely out of reach of children," she said.

"We would strongly recommend parents explain the danger of fire to older children, especially following the reports of children being responsible for several fires across the state."

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YMCA child protection policy queried

A year after the Jonathan Lord incident, the YMCA hadn't completed its working with children checks. Source: AAP

A YMCA middle manager whose evidence to a child abuse inquiry changed within a month has denied it was because she discussed it with senior management.

Jacqui Barnat, a children's services manager with the non-profit organisation told the Royal Commission into Institutional Responses to Child Sexual Abuse on Monday that she was changing her evidence on the policy covering the recruitment of childcare workers.

Ms Barnat told a private hearing of the commission in early October the 2006 policy was in place in 2009.

But at Monday's public hearing, she said she did not believe the YMCA Australia Safeguarding Children and Young People's policy 2006, was current in 2009.

"Upon reflection I don't believe it was still current in 2009 because from memory other policies were in place," she said.

When the discrepancy was pointed out to her by Gail Furness, SC for the commission, she said she could not recall her earlier evidence.

When asked if she had discussed this policy with anyone at the YMCA in the past month and its application to her work she said "no".

Ms Furness asked what had occurred that made her say now that it did not apply to her work in 2009.

"Was it assisted by any person or you looking at any other document?"

Ms Barnat did not reply. She could not identify what other policy was in place.

"I have a recollection of a policy in force in 2009 and I cannot recall the name ... I think I did try to find it. I have not been able to find that policy."

She later said she might have instigated a conversation with the YMCA's business service manager, Irene Minos.

In answer to questioning by commission chairman Justice Peter McClellan, Ms Barnat said she was reviewing the content of the policy after her private evidence and that is how she recalled the 2006 policy was not in place.

"Upon reflection, I just tried to fit the dates".

Ms Barnat who has been with the YMCA since 2004 had shared responsibility for recruitment in the Caringbah area when Jonathan Lord was employed.

Lord is serving a 10-year sentence for sexual assaults on 12 children while he was with the YMCA.

Ms Barnat said that prior to January 2013 she could not make decisions on staff selection and would need approval to conduct interviews. However, generally but not always, there was a more senior manager with her when she interviewed new recruits.

Ms Barnat was questioned on the reporting levels within the YMCA.

She said her duties were to identify staff training needs and she passed those on to her managers who were also based at Caringbah.

Ms Barnat will continue her evidence when the hearing resumes on Tuesday.

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Bikie crackdown may just move problem: cop

Queensland's tough new bikie laws may just move problems associated with motorcycle gangs elsewhere. Source: AAP

THE commander of Queensland's anti-bikie taskforce has conceded tough new laws may just move problems associated with criminal motorcycle gangs elsewhere.

Detective Inspector Mick Niland says while bikies are closing chapters in Queensland, it appears they are yet to establish new ones interstate.

However, the Taskforce Maxima commander can't guarantee the Sunshine State's bikie crackdown won't move the problem to other parts of Australia.

"Look, there is that possibility in that regard but we will continue in every endeavour to prosecute these criminal organisations and we obviously want to make it very uncomfortable in Queensland (for them)," he told AAP.

"We are actively targeting these criminal organisations and there has been some information that they are to set up chapters south of the border but we have no confirmed intelligence in that regard."

NSW police are concerned Queensland bikies will flee south across the border and are working with Queensland police to stop the movement.

Det Insp Nilan said Queensland police also want to intercept criminal bikie gang members before they flee to NSW.

"We are working very closely with the anti-gang squad in NSW and their strike force Raptor to ensure wherever possible we can make inroads to prosecuting members, participants of these criminal organisations," he said.

Det Insp Nilan says his taskforce is also monitoring the Mongols, a US-based outlaw motorcycle gang which has reportedly begun invading Australia.

He says there is no evidence of US Mongols arriving in Queensland.

"We see it may have stalled somewhat because of the legislation," he said.

"We have the Mongols declared as a criminal organisation in Queensland so if they arrive they are already a criminal organisation."

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