Power cut to Vic desal plant

Victoria's controversial desalination plant has been relying on generator power for several weeks. Source: AAP

VICTORIA'S controversial desalination plant has been relying on generator power for several weeks, with electricity shut off due to a problem with cabling.

Two cable joints were found to be performing below specification and needed to be repaired, plant spokesman John Ridley said.

Electricity to the Wonthaggi plant has been shut off while the repairs take place.

"Because the plant is not producing any water, it is of no consequence and the systems to maintain the plant have all been supplied by the standby generators which are there for that reason," Mr Ridley told AAP.

"Once the cable is fully operational again, which will be very soon, days rather than weeks as I understand it, then everything will be absolutely fine."

Electricity is needed to run pumps to maintain the plant, he said.

The cause of the cabling problem is being investigated.

The $6.1 billion desalination plant, which provides a drought-proof water supply to Melbourne and Geelong, was built under the previous Labor government and had massive cost blowouts.

It began operating in 2012 but the government has placed a zero-gigalitre order for the past two financial years.

A decision on a 2014/15 order is due by April.

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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.

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Treasury Wines tank on share market

Treasury Wine Estates has issued a profit warning in the wake of weaker than expected sales. Source: AAP

TREASURY Wine Estates has been hammered on the stock market, with its shares falling by 20 per cent after it issued a profit downgrade due to weaker sales in Australia and China.

The company behind Penfolds and Wolf Blass has cut its full year earnings forecast from between $230 million and $250 million to between $190 million and $210 million.

It expects first half earnings, which will be announced in February, to be between $41 million and $46 million, down from $73 million last year.

Treasury Wine shares fell to $3.64, their weakest price in almost two years, wiping $589 million from the value of the company.

Weaker than expected sales in Australia, following the company's decision to lift prices on some products and focus less on Christmas promotions, had contributed to the profit downgrade, it said.

A decline in Chinese demand for premium wine had also hit sales volumes.

Treasury Wine also said it had continued to reduce shipments to the US while increasing investment across the group, especially in Asia.

The profit downgrade is the latest in a string of bad news for Treasury Wine, which last year poured more than $35 million worth of excess or aged commercial stock down the drain in the US.

The controversial move, which was part of a broader $160 million writedown, ultimately led to the departure of chief executive David Dearie.

Law Firm Maurice Blackburn and litigation funder IMF last October announced funding of a class action against Treasury Wine, alleging the company misled the market and breached its continuous disclosure obligations in its communication of the financial impact of over-stocked US distributors to investors.

On Thursday, Maurice Blackburn managing principal Ben Slade said the latest profit downgrade raised "questions of transparency" about the company's operations.

"TWE's announcement this morning suggests that continuous disclosure requirements may not have been complied with," he said in a statement.

"We are confident that the company's shock $190 million downgrade announcement in July last year was indicative of such a breach. It may have happened again."

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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.

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Police given bus CCTV after woman pinned

A woman has died in hospital after being pinned under a bus for two hours in Sydney's CBD. Source: AAP

AFTER the death of two pedestrians on the same day in Sydney, police are urging the public to be more careful crossing roads.

A 51-year-old Granville woman died on Wednesday night after being hit by a bus in Sydney's CBD. She was trapped in its axles for two hours before emergency services freed her and she died only hours after undergoing emergency surgery.

Earlier that day, an 83-year-old man died instantly when he was hit by a truck in Monterey in southern Sydney while crossing the road.

NSW Police Traffic and Highway Patrol operations commander Stuart Smith said the deaths were tragic.

"It was a dreadful day on NSW roads," he told reporters on Thursday.

Superintendent Smith said crash investigators are looking into both accidents, including CCTV footage from the State Transit bus as well as an examination of traffic and pedestrian control records.

"It's a complex calculation that can only be provided once a re-enactment is provided," he said.

Police say the bus was turning right when it struck the woman, and the 70-year-old driver was provided with counselling.

"We believe he is a very experienced driver with the State Transit Authority," Supt Smith said.

He could not comment on whether jaywalking was a factor in the accident but reminded pedestrians and drivers to look out for each other.

"It is a place where we all need to be aware and to keep a proper lookout," he said.

He warned people about the dangers of jaywalking and using electronic devices such as mobile phones and MP3 players.

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Power cut to Vic desal plant

Victoria's controversial desalination plant has been relying on generator power for several weeks. Source: AAP

VICTORIA'S controversial desalination plant has been relying on generator power for several weeks, with electricity shut off due to a problem with cabling.

Two cable joints were found to be performing below specification and needed to be repaired, plant spokesman John Ridley said.

Electricity to the Wonthaggi plant has been shut off while the repairs take place.

"Because the plant is not producing any water, it is of no consequence and the systems to maintain the plant have all been supplied by the standby generators which are there for that reason," Mr Ridley told AAP.

"Once the cable is fully operational again, which will be very soon, days rather than weeks as I understand it, then everything will be absolutely fine."

Electricity is needed to run pumps to maintain the plant, he said.

The cause of the cabling problem is being investigated.

The $6.1 billion desalination plant, which provides a drought-proof water supply to Melbourne and Geelong, was built under the previous Labor government and had massive cost blowouts.

It began operating in 2012 but the government has placed a zero-gigalitre order for the past two financial years.

A decision on a 2014/15 order is due by April.

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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.

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Treasury Wines tank on share market

Treasury Wine Estates has issued a profit warning in the wake of weaker than expected sales. Source: AAP

TREASURY Wine Estates has been hammered on the stock market, with its shares falling by 20 per cent after it issued a profit downgrade due to weaker sales in Australia and China.

The company behind Penfolds and Wolf Blass has cut its full year earnings forecast from between $230 million and $250 million to between $190 million and $210 million.

It expects first half earnings, which will be announced in February, to be between $41 million and $46 million, down from $73 million last year.

Treasury Wine shares fell to $3.64, their weakest price in almost two years, wiping $589 million from the value of the company.

Weaker than expected sales in Australia, following the company's decision to lift prices on some products and focus less on Christmas promotions, had contributed to the profit downgrade, it said.

A decline in Chinese demand for premium wine had also hit sales volumes.

Treasury Wine also said it had continued to reduce shipments to the US while increasing investment across the group, especially in Asia.

The profit downgrade is the latest in a string of bad news for Treasury Wine, which last year poured more than $35 million worth of excess or aged commercial stock down the drain in the US.

The controversial move, which was part of a broader $160 million writedown, ultimately led to the departure of chief executive David Dearie.

Law Firm Maurice Blackburn and litigation funder IMF last October announced funding of a class action against Treasury Wine, alleging the company misled the market and breached its continuous disclosure obligations in its communication of the financial impact of over-stocked US distributors to investors.

On Thursday, Maurice Blackburn managing principal Ben Slade said the latest profit downgrade raised "questions of transparency" about the company's operations.

"TWE's announcement this morning suggests that continuous disclosure requirements may not have been complied with," he said in a statement.

"We are confident that the company's shock $190 million downgrade announcement in July last year was indicative of such a breach. It may have happened again."

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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.

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Police given bus CCTV after woman pinned

A woman has died in hospital after being pinned under a bus for two hours in Sydney's CBD. Source: AAP

AFTER the death of two pedestrians on the same day in Sydney, police are urging the public to be more careful crossing roads.

A 51-year-old Granville woman died on Wednesday night after being hit by a bus in Sydney's CBD. She was trapped in its axles for two hours before emergency services freed her and she died only hours after undergoing emergency surgery.

Earlier that day, an 83-year-old man died instantly when he was hit by a truck in Monterey in southern Sydney while crossing the road.

NSW Police Traffic and Highway Patrol operations commander Stuart Smith said the deaths were tragic.

"It was a dreadful day on NSW roads," he told reporters on Thursday.

Superintendent Smith said crash investigators are looking into both accidents, including CCTV footage from the State Transit bus as well as an examination of traffic and pedestrian control records.

"It's a complex calculation that can only be provided once a re-enactment is provided," he said.

Police say the bus was turning right when it struck the woman, and the 70-year-old driver was provided with counselling.

"We believe he is a very experienced driver with the State Transit Authority," Supt Smith said.

He could not comment on whether jaywalking was a factor in the accident but reminded pedestrians and drivers to look out for each other.

"It is a place where we all need to be aware and to keep a proper lookout," he said.

He warned people about the dangers of jaywalking and using electronic devices such as mobile phones and MP3 players.

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Economy to remain 'bright spot': Sinodinos

Assistant Treasurer Arthur Sinodinos hopes Australia will remain a "bright spot" among economies. Source: AAP

AUSTRALIAN economic growth appears to be entrenched in a sub-trend pace, with employers still hesitant about taking on new staff.

But Assistant Treasurer Arthur Sinodinos is confident Australia will remain a "bright spot" among advanced economies.

He told a conference of chief executives in Sydney on Wednesday that Australia was well placed with some of the emerging markets that would be dominant contributors to global growth.

"Indeed, over the next five years, Australia's real GDP growth is expected to outperform that of every major advanced economy outside the US," the senator said in a speech outlining Australia's G20 presidency.

But he concedes the economy's transition from resources investment to growth driven from the non-mining sector remains slow.

As such, growth will likely be below trend - usually considered about 3.25 per cent - for the next two years, while unemployment is expected to rise to 6.25 per cent by mid-2015.

"With these challenges looming large, the G20's focus on jobs and growth could not be more relevant," Senator Sinodinos said.

Data on Wednesday confirms economic growth is likely to remain below trend in 2014.

The Westpac-Melbourne Institute leading index of economic activity, which indicates the likely pace three to nine months into the future, moderated further in December.

Westpac chief economist Bill Evans expects that with growth prospects remaining challenged, an interest rate cut by the Reserve Bank (RBA) in August is still likely.

The RBA holds its first board meeting of the year on Tuesday.

"The recent upward surprise on inflation precludes any further rate cuts for some months until the bank is able to assess whether there has been a sustained upswing in inflation," Mr Evans said.

But he suspects the sharp depreciation in the Australian dollar in 2013 is mainly responsible for the jump in inflation.

With the exchange rate stabilising in early 2014, more benign inflation outcomes could be delivered.

Demand for workers through job advertisements on the internet fell by a seasonally adjusted 1.2 per cent in December after trending higher for the previous two months.

However, there are growing signs of an improvement in business confidence.

Roger Mendelson, the chief executive of debt recovery firm Prushka, said lower interest rates, a change of government and better-performing international economies led to a boost in sentiment.

Many small and medium-sized enterprises (SMEs) believe they have "turned the corner", having been in "survival mode" in the past 18 months.

A separate report, by software provider MYOB, found New Zealand SMEs were even more enthusiastic about the outlook as their country looks set to enjoy one of its most significant periods of growth in recent history.

"It may be time for local businesses to include our closest country across the ditch when considering new opportunities," MYOB chief executive Tim Reed said.

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No first-class for DFAT staff

Public servants including Australia's senior diplomats have been told to refuse flight upgrades. Source: AAP

PUBLIC servants including Australia's senior diplomats have been instructed not to accept first-class flight upgrades in line with the Abbott government's frugal image.

A memo sent to staff at the Department of Foreign Affairs and Trade (DFAT) earlier this month carried a string of directives which a spokeswoman said is in line with advice sent to all branches of federal government.

"DFAT staff have been advised that when travelling on official business they should not accept offers of upgrades to first class," the spokeswoman told AAP.

The order has sparked displeasure among some DFAT workers, many of whom make repeated long-haul flights with short turnarounds to represent Australia abroad.

In November, Prime Minister Tony Abbott wrote to ministers outlining new travel expense procedures: flights to be booked at business class or below; accommodation costs to be kept to a minimum; and proposed itineraries exceeding $20,000 be signed off by a department secretary.

Mr Abbott has led by example, opting for economy-class seats for himself and his family on a recent flight to Paris.

Foreign Minister Julie Bishop, who has ministerial responsibility for DFAT, has also adopted a thrifty attitude to travel, reportedly turning down expensive hotel suites in favour of less opulent accommodation.

The memo to DFAT staff indicates all workers are expected to be similarly penny-wise.

Proposed travel costing up to $20,000 must be approved by a department secretary. Travel in excess of $20,000 needs to be ticked off by Ms Bishop or Trade and Investment Minister Andrew Robb. If the bill is likely to come in above $50,000 then Mr Abbott's office must be consulted.

The DFAT spokeswoman said the rules were already in effect.

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Solar industry sees gloom if RET scrapped

The solar industry foresees massive job losses if the government scraps the renewable energy target. Source: AAP

THE solar panel industry is warning thousands of jobs and businesses could be at risk if the Abbott government scraps the renewable energy target (RET).

The bipartisan target - which requires 20 per cent of all electricity by 2020 to come from renewable sources - will be reviewed this year but details are yet to be announced.

The government insists it remains committed to the RET but many in the renewables sector are nervous the scheme will be watered down or abolished.

The solar photovoltaic (PV) industry is particularly worried, with new analysis showing 2000 PV jobs could vanish next year if the RET was scrapped.

The study by Solar Business Services claims by 2018 that figure could have grown to 7000 jobs lost or foregone - halving the entire PV sector.

"In the worst case scenario, this is going to really have a very serious consequence on the industry," solar industry analyst Nigel Morris told AAP.

Around 600 solar PV jobs were forecast to go if the 20 per cent target was reduced.

It's the latest in a spate of bad news for the solar sector.

Mr Morris said the sector had seen scheme after scheme scrapped in recent years, stopping growth in its tracks last year for the first time in more than a decade.

The suspension of loans from the Clean Energy Finance Corporation, funding cuts to the Australian Renewable Energy Agency and the windback of subsidies had taken its toll, he said.

"If all of those things and the RET goes away, it has a combined phenomenal impact on the propensity of people to proceed with solar," Mr Morris said.

There is strong evidence the 20 per cent RET will be well exceeded and critics, including within the government, warn renewable power is already unnecessarily driving up retail power bills.

Prime Minister Tony Abbott late last year said the RET had caused pretty significant price pressure on domestic electricity costs.

Mr Morris said these "pessimistic" statements made the industry skittish about the future and confused consumers.

"The cost of the RET is minuscule and it is declining already," he said.

"The RET has virtually no cost to government."

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PNG PM visits Bougainville

PNG Prime Minister Peter O'Neill has apologised to the people of Bougainville for the civil war. Source: AAP

PAPUA New Guinea Prime Minister Peter O'Neill has apologised to the people of Bougainville for the civil war that left thousands dead.

Mr O'Neill also performed a reconciliation ceremony with the autonomous region's president, John Momis, and visited the site of the Panguna Copper mine which sparked the civil war.

"Following custom, I'd like to say we are truly sorry for all the bad things that happened in your communities in Bougainville and our country Papua New Guinea," the Port Moresby based The Post Courier reported Mr O'Neill as saying on Tuesday.

Mr O'Neill made the comments at Bel Isi Park in Buka, where he and Mr Momis broke an arrow in a symbolic gesture of peace.

Mr Momis told a crowd of hundreds Mr O'Neill's visit meant a new beginning for PNG and Bougainville.

"This means a new beginning and cooperation and collaboration to continue the work for development," he said.

Mr O'Neill unveiled Kina 1.5 million ($A720,000) in development funds for Bougainville.

His visit marks the second by a PNG prime minister since Bill Skate in 1998, when both sides of the conflict brokered a peace deal.

Mr O'Neill brought with him the PNG Government's chief secretary, Public Enterprises Minister Ben Micah and Mining Minister Byron Chan.

Mr Chan is the son of civil war prime minister Sir Julius Chan, who along with Mr Momis is considered one of PNG's founding fathers.

Bougainville is due to hold a referendum to decide if it will become an independent country between 2015 and 2020.

Australian Strategic Policy Institute analyst Karl Claxton said there is a wide expectation Bougainville will vote to become independent.

"(Mr O'Neill's) visit is definitely a welcome increase in focus and it's exactly what's needed, dialogue between the national government and the ABG (Autonomous Bougainville Government).

"I would call it a very significant step indeed."

Mr O'Neill on Wednesday is expected to visit the site of the Panguna Copper mine near Bougainville's capital, Arawa.

At the time of its closure due to the civil war in 1989 the mine was the largest open cut copper mine in the world.

The reopening of the mine is still a hot issue in Bougainville, with landowners living around it opposed to its reopening.

However some argue it is a vital potential revenue stream for an independent Bougainville.

Mr Claxton said there is room for Mr Momis to stretch out the independence vote until 2020.

"To build consensus," he said.

"There is very little understanding of what autonomy means and how much is needed to make either of those things (autonomy or staying with PNG) work.

"Independence will need a big income stream."

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Unions seek upper hand over crime claims

Ex-PM John Howard says Labor needs to get behind plans to re-establish a building industry watchdog. Source: AAP

TREASURER Joe Hockey believes corruption whistleblowers from the construction industry need a forum to be heard but does not think an inquiry need extend beyond unions to employer groups.

Amid mounting allegations of improper deals by union officials, Mr Hockey said the actions of the movement "need to be fully exposed and addressed".

"Someone has to stand up for the workers and we're prepared to do that," he told ABC TV on Wednesday following a counter-attack from unions during the day over claims of corruption and misconduct.

Prime Minister Tony Abbott said the government would make "every effort" to ensure workplaces are free of misconduct and corruption, including restoring the Australian Building and Construction Commission and holding a judicial inquiry.

He challenged Labor and the unions to show the public on whose side they were.

"Are they on the side of law-abiding citizens or are they on the side of people with a tendency to break the law?" Mr Abbott asked.

Stopping short of backing a full royal commission into the matter, Mr Hockey said the inquiry need not extend to all employer groups.

"There are no suggestions of other representative groups engaging in this, what appears to be, systemic corruption," he said.

The federal government should see what comes out of any inquiry before looking at expanding it to other organisations, he said.

Among those making accusations are Brian Fitzpatrick, a former industrial officer with the Construction Forestry Mining and Energy Union in NSW, who alleged he had been offered $300,000 to leave the union quietly.

Melbourne builder Andrew Zaf told ABC's 7.30 program on Wednesday he had been forced by CFMEU members to hire the father of a senior unionist to work on a site in the western suburbs, and that the man once threatened to kill him.

"Well when someone threatens to kill you, what are you going to do?" Mr Zaf told the ABC when asked why he did not sack the union organiser's father.

Mr Zaf also claimed he provided free materials for the house of Victorian CFMEU heavyweight John Sekta in return for peace on industrial sites - a claim vigorously denied by Mr Sekta.

ACTU president Ged Kearney said the Fitzpatrick matter had been referred to police, which was appropriate.

It was "absolutely absurd" for the prime minister to suggest a royal commission was needed because of the allegations, she said.

"Taxpayers' money will be wasted - $100 million will be spent on what is nothing more than a political witch-hunt."

The CFMEU's NSW construction division secretary Brian Parker insists the union's legal department called the police as soon as Mr Fitzpatrick had alerted them to the threats.

But the former official did not pursue the matter with police.

The man who allegedly made the threat, Darren Greenfield, denied having done so, so the union could not form a conclusion on the truth of Mr Fitzpatrick's claim, Mr Parker said.

The union did not offer Mr Fitzpatrick $300,000 but had provided a confidential exit settlement over an unrelated employment issue.

"The CFMEU does not employ gangsters or members of motorcycle gangs and our office is not infiltrated by criminals," Mr Parker said.

A spokesman for Labor leader Bill Shorten said police should be allowed to investigate.

"They're the best people to do it," he said, adding if Mr Abbott and Senator Abetz were serious about the issue they should let police get on with their job rather than play "pathetic politics".

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Google adds prescription frames to Glass

Google is adding prescription frames and new styles to its computerised, internet-connected Glass. Source: AAP

GOOGLE Glass is getting glasses.

Google is adding prescription frames and new styles of detachable sunglasses to its computerised, internet-connected goggles known as Glass.

At present Glass is available only to the tens of thousands of people testing and creating apps for it. It will have a general release this year.

Glass hasn't had glasses in its frame until now.

Glass is basically a small computer with a camera and a display screen above the wearer's right eye.

The device sits at eyebrow level, higher than where eyeglasses would go.

It lets wearers surf the web, ask for directions and take photos or videos.

Akin to wearing a smartphone, Glass also lets people read their email, share photos on Twitter and Facebook, translate phrases while travelling or partake in video chats.

Glass follows basic voice commands, spoken after the words: "OK, Glass".

From Tuesday, the Californian company is offering four styles of prescription frames and two new types of shades available to its "explorers" - the people trying out Glass.

The frames will cost $US225 ($A257.60) and the shades $US150. That's on top of the $US1500 price of Glass.

Users can take the frames to any optometrist for prescription lenses. Google says some insurance plans may cover the cost of the frames.

Glass's designers picked four basic but distinct frame styles. On one end is a chunky "bold" style that stands out. On the other is a "thin" design - to blend in as much as possible.

When Google unveiled Glass in a video nearly two years ago, it drew unfavourable comparisons to Bluetooth headsets, the trademarks of the fashion-ignorant technophile.

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India lifts ban on Airbus super-jumbos

INDIA has lifted its ban on Airbus super-jumbo planes, allowing the world's largest passenger jet into New Delhi, Mumbai and two other cities equipped to handle the aircraft.

Despite ever-growing passenger numbers, India restricted Airbus A380 flights in 2008 in an effort to help struggling domestic carriers cope with global competition.

Aviation Minister Ajit Singh said lifting the restrictions would help bring more revenue to airports and boost India's international reputation as a flight destination.

The ministry said on Monday that Singapore Airlines, Emirates and Lufthansa had expressed interest in flying A380s into India.

Only airports in Delhi, Mumbai, Hyderabad and Bangalore can accommodate the double-decker planes, which can seat up to 850 passengers.

Airbus welcomed the move, which had been pushed for by international carriers aiming for a bigger foothold in a country with more than 1.2 billion people.

"This is good news for Indian airports and the Indian flying public," said Kiran Rao, executive vice president of strategy and marketing for Airbus.

Air travel has been growing at annual rates of 10 per cent to 20 per cent in India, driven by business travellers and middle-class Indians looking to spend more on vacations.

Last month, Mumbai unveiled a long-delayed $US2 billion ($A2.29 billion) terminal, hoping to dazzle travellers with art installations and showcasing India's importance as a global destination. The new terminal boosts the airport's annual capacity from 30 million to 40 million passengers.

Indian carriers have struggled, however, under fierce competition and high costs for fuel and spare parts, leading to more than $US8 billion in estimated losses in the past five years, with flag carrier Air India suffering the biggest hits.

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Raccoon digs out of UK zoo enclosure

KEEPERS are searching for a missing raccoon that escaped from a British zoo.

Female raccoon Missy excavated a large hole in her cage to leave Tropiquaria in Washford, Somerset.

The ground had softened thanks to flooding - allowing the 18-month-old animal to dig her way out.

Chris Moiser, zoological director at Tropiquaria, warned that Missy could bite if handled by the public.

"The sad thing is that we have had raccoons in that enclosure for two years with no trouble whatsoever," Moiser said.

"It is only with the recent flooding that the ground has softened sufficiently for her to dig out.

"We have had a number of problems with the recent flooding and have had to evacuate some animals from outside enclosures, but we really thought that the raccoons were safe.

"Missy will not have any problems in surviving in the English climate but it does worry us that she is out."

Moiser said Missy's partner, six-year-old Rocky, had been left extremely upset by her departure.

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Joel begins Madison Sq Garden residency

Billy Joel says he will perform at Madison Square Garden every month for as long as people demand. Source: AAP

BILLY Joel has begun his residency at Madison Square Garden with an energetic show that covers a wide swath of his musical catalogue.

Joel and his band came out to thunderous applause on Monday night and launched into Miami 2017, a song Joel wrote in the early 1970s about post-apocalyptic New York City.

Throughout his set, he covered many of his signature songs, as well as a few more obscure tracks.

The Grammy Award-winning icon announced in December that he will perform at the famed New York City venue every month for as long as New Yorkers demand.

He's set to perform sold-out shows until September with more being added later in the year. His next show is on Monday.

His May 9 show commemorates his 65th birthday.

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SES warning for damaging winds in SA

SA swelters as firefighters continue to fight blazes and schools close ahead of strong wind changes. Source: AAP

FIREFIGHTERS dealt with fresh as well as long-burning blazes across sweltering South Australia ahead of strong wind changes due on Tuesday evening.

The Country Fire Service (CFS) says the new blazes were brought under control, while operations are continuing at Bangor in the Southern Flinders Ranges and at Billiatt in the Riverland.

The two fires have been burning for 14 days.

The State Emergency Service (SES) at 3.22pm (CDT) issued a severe weather warning for damaging winds for the state's southeast for later on Tuesday.

People living in the upper southeast and parts of the lower southeast districts may be affected.

"Squally west to southwest winds are likely to briefly reach 50km/h to 65km/h, with gusts about 80km/h to 90km/h during the next couple of hours as the wind change moves through," the SES said.

Fire bans were in force across the state on Tuesday, resulting in the closure of 11 schools on the day most children returned to school after the holidays.

Nine were closed in the state's lower southeast region, which has a catastrophic fire danger rating, while the Napperby and Wirrabara primary schools were closed due to an extreme risk.

People are warned to stay away from powerlines, ensure outside loose items have been put away or secured and park vehicles undercover and away from trees.

The CFS says firefighters are on high alert due to the predicted winds, particularly at the Bangor bushfire, which continues to burn uncontrolled.

Residents in the Laura, Napperby, Nelshaby, Stone Hut, Wirrabara and Beetaloo Valley areas should remain vigilant, it says.

The temperature reached 43C in Adelaide, while the mercury topped 40C in other parts of the state.

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ANU investigates Sri Lanka rape reports

A YOUNG Australian woman is believed to have been raped during a trip to a coastal town in southern Sri Lanka.

The Department of Foreign Affairs and Trade (DFAT) did not give details of the incident but says it is in contact with a young woman in the south Asian nation.

"We are providing consular assistance to a young Australian woman in Sri Lanka," a spokeswoman told AAP on Monday.

"The individual seeks privacy at this time."

Local news site ColomboPage reports the woman told police in the southern town of Ambalangoda that she had been raped on a beach by a tourist guide.

The site reports she was in the country as part of a 15-strong study group from the Australian National University (ANU).

"The Ambalangoda Police says the suspect has fled the area and investigations are underway island wide to arrest him and to produce him before the court," the site reported.

An ANU spokesman said the university was aware of media reports and was investigating the incident.

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Bahrain 'man dead after police shooting'

Bahrain's main Shi'ite opposition bloc says a young man has died after being shot by authorities. Source: AAP

BAHRAIN'S main Shi'ite opposition bloc says a young man has died after being shot by authorities earlier this month.

The al-Wefaq bloc said on Sunday that 19-year-old Fadhil Abbas Muslim and a friend were hit with live ammunition on January 8 in the village of Markh, near the capital Manama.

It says Muslim's family received no information about him or his whereabouts until his death was confirmed on Sunday.

Bahraini authorities had no immediate comment on the allegations.

The shooting appears to match an incident announced by the interior ministry earlier this month in which it said two suspects in an investigation into a suspected weapon smuggling plot were injured while trying to flee police.

The man's father, Abbas Muslim, said his son is innocent and uninvolved in political activities.

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Political unrest unsettles Aus sharemarket

The sharemarket is in for a volatile week after turbulence in emerging markets spooked investors. Source: AAP

THE Australian sharemarket is in for a volatile week after turbulence in emerging markets spooked investors on Friday.

At the close on Friday, the benchmark S&P/ASX200 index was 22.1 points, or 0.42 per cent, lower at 5,240.9 and the broader All Ordinaries index was down 21.2 points, or 0.4 per cent, at 5,254.3.

It was the third straight week local shares had finished in the red.

AMP Capital Investors chief economist Shane Oliver says the main issue worrying investors on Friday was political trouble in the emerging markets.

Mr Oliver says the instability has occurred at the same time the US Federal Reserve is winding back its monetary stimulus.

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US officials probe illness on cruise ship

At least 300 passengers aboard Royal Caribbean International's Explorer have reported getting sick. Source: AAP

US health officials have boarded a cruise ship docked in the US Virgin Islands to investigate an illness outbreak that has stricken at least 300 people with gastrointestinal symptoms including vomiting and diarrhoea.

The US Centers for Disease Control and Prevention says that 281, or nearly 10 per cent, of the 3050 passengers aboard Royal Caribbean International's Explorer of the Seas have reported getting sick during a Caribbean cruise that left Cape Liberty, New Jersey, on Tuesday.

Twenty-two crew members also reported feeling ill.

Janet Diaz, spokeswoman for Royal Caribbean Cruises, said CDC representatives boarded the towering, 15-deck ship on Sunday as it made a port call in St Thomas, the main island of the US Virgin Islands.

At least two CDC officials, an epidemiologist and an environmental health officer, were expected to do the investigation and evaluate the outbreak response on the cruise liner.

During the previous port call in Puerto Rico, the ship underwent "extensive and thorough sanitising" to help prevent more people from getting sick, the company spokeswoman said.

The ship bypassed a scheduled stop at the company's fenced-in beach destination in northern Haiti to sail directly to Puerto Rico's capital.

"This was a difficult decision to make; however, we feel it is best to make this itinerary modification to help prevent any more guests from becoming ill," Diaz said.

The passengers and crew who fell ill have "responded well to over-the-counter medication being administered onboard the ship," she said.

Fast-spreading norovirus is often to blame for similar symptoms sweeping closed quarters such as those on cruise ships, but a determination will likely have to wait until samples are tested in a lab.

Diaz said special cleaning products and disinfectants that are proven to kill norovirus are being used to clean the ship.

In a statement, Beverly Nicholson-Doty, the US Virgin Islands' tourism commissioner, said the territory was grateful for the CDC's "quick response" and St Thomas was ready to welcome ship passengers cleared to disembark.

On Friday, an Explorer of the Seas passenger named Arnee Dodd tweeted that she had fallen ill aboard the ship and was quarantined with the other sick people.

The Connecticut woman wrote that ship employees "put a lock down on food & are constantly cleaning everything."

It was not clear if any passengers were still being quarantined Sunday.

The ship's next scheduled stop is the Dutch Caribbean country of St Maarten.

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Gay won't pay back insider trading money

Former Gunns chairman John Gay will not be forced to pay back proceeds of his insider trading. Source: AAP

FORMER Gunns chairman John Gay will not be forced to pay back an estimated $800,000 he made from insider trading.

The Australian Federal Police has confirmed the former boss of the collapsed Tasmanian timber giant will not face proceeds of crime action.

"The AFP can confirm it received a proceeds of crime referral in relation to this matter on 28 August 2013," a spokesperson said in statement.

"Following an evaluation of material in relation to this matter, a decision was made not to proceed with any proceeds of crime action."

No further reasons were given for the decision.

Gay, 70, was fined $50,000 after changing his plea to guilty on the day his trial was to begin last year.

He admitted trading around $3 million worth of Gunns shares with inside information not available to the market.

In court hearings, the prosecution estimated his windfall at more than $800,000, a figure challenged by Gay's lawyers.

At the time, the Australian Shareholders' Association slammed the fine as too lenient when Justice David Porter handed it down in the Tasmanian Supreme Court.

Justice Porter said the crime fell into a less serious category because Gay had decided to sell the shares in ill health and before he had the price-sensitive information.

He had faced a maximum penalty of five years' jail or a $220,000 fine.

Gay has applied to be allowed to manage companies again, a move that is being opposed by the Australian Securities and Investments Commission.

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Indon navy ramp up good: Morrison

Scott Morrison says Indonesia's beefed-up navy presence will help stop maritime asylum seekers. Source: AAP

INDONESIA'S beefing up of its naval maritime patrols will help stop asylum seekers making the journey to Australia by boat, Immigration Minister Scott Morrison says.

Indonesia stepped up its naval presence monitoring its southern border after Mr Morrison admitted last week Australian vessels strayed into its northern neighbour's territory.

"I would welcome Indonesia having patrols in that part of their waters and I'm sure it's a great deterrence for people trying to get to Australia illegally by boat," Mr Morrison said on Sunday.

"I welcome the fact the Indonesian government has decided to put their own vessels on the southern coast of Java. I think that provides a very strong deterrence to people smugglers."

Mr Morrison did say not in response to a question whether he thought it would be harder to turn back boats because of the beefed-up naval presence.

He said the government will continue to take a hard line on people smuggling.

"People who come to Australia illegally by boat risk their own lives and they risk the lives of those who are called upon to rescue them as well," he said.

"It's dangerous and it's not the way that Australians expect people to come to this country.

"That's why the government has such tough policies to thwart that type of behaviour."

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Goodes represents decency: Abbott

Tony Abbott believes Australian of the Year Adam Goodes (pic) stands for decency in national life. Source: AAP

TONY Abbott thinks Adam Goodes is an excellent choice of Australian of the Year as he believes the indigenous footballer stands for decency in national life.

But while the prime minister's sentiment was echoed across the nation it was not universal, with an Aboriginal activist labelling the choice a move to offset debate on celebrating Australia Day on January 26.

Mr Abbott, who has committed to striving for constitutional recognition of Australia's indigenous people, used the national holiday on Sunday to reiterate his intention to try to achieve what New Zealand did with the 1840 Treaty of Waitangi.

"If we had known in 1901 what we know now, if our hearts had been as big then as now, we would have acknowledged indigenous people in the constitution back then," he told reporters at Australia Day celebrations in Canberra.

Similarly, Opposition Leader Bill Shorten told reporters in Melbourne that Australia's finest moments came in turning the national will to ending exclusion and bringing people in from the margins.

He, too, wants Aboriginal and Torres Strait Islander people to have a place of honour in the constitution and to see real progress in the fight against indigenous disadvantage.

Mr Goodes, a champion AFL player with the Sydney Swans, was named Australian of the Year on Saturday for his leadership and advocacy in the fight against racism, both on the sporting field and in society more broadly.

He has confronted racism head-on, using an incident last year, when a teenage girl called him an "ape" from the grandstand, as a tool to teach indigenous Australians and minority groups to say no to racism.

However Aboriginal activist Michael Mansell said giving the award to a high-profile Aboriginal was a desperate move by the Australia Day Council to offset debate on the appropriateness of January 26 as Australia's national day.

He said Australia Day awards were inextricably linked to the celebration of Australia Day, a date that marked the arrival of white people on January 26, 1788.

"Adam Goodes' standout qualities are that he is a good footballer and was abused by a 13-year-old girl at a football match. In themselves, these attributes hardly warrant a best of the best award," he said in a statement.

Mr Abbott said Mr Goodes stood for excellence in sport and decency in national life.

"Yes, I think he has been an excellent choice," the prime minister told reporters.

Australian Human Rights Commission president Gillian Triggs said the award acknowledged Mr Goodes' significant contribution to understanding human rights and anti-racism initiatives.

NSW Premier Barry O'Farrell said Mr Goodes had displayed outstanding leadership.

"His stand against racism last year brought the issue into the national spotlight and helped educate all Australians that racism in any form shouldn't be tolerated," he said.

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Abbott on indigenous recognition crusade

Tony Abbott wants to start a "national crusade" to recognise indigenous people in the constitution. Source: AAP

PRIME Minister Tony Abbott is determined that recognising indigenous people in Australia's constitution is a "national crusade" that should be important to everyone.

The case for constitutional recognition is getting a boost from two indigenous advocates winning Australian of the Year awards.

AFL player Adam Goodes wants to use his term as Australian of the Year to break down the boundaries between races while Senior Australian of the Year, former federal politician Fred Chaney, co-founded Reconciliation Australia.

Mr Abbott on Sunday repeated his sentiment that recognising Australia's first people would be completing the constitution more than changing it.

"If we had known in 1901 what we know now, if our hearts had been as big then as now, we would have acknowledged indigenous people in the constitution back then," he told reporters at Australia Day celebrations in Canberra.

He noted the nation's founders were products of their era but believed it was time to "complete their great dream".

He has promised to finalise a draft form of words for changing the constitution by September.

After that national debate is needed to make sure any change is a unifying moment.

"Black and white Australians, old and new Australians, Australians from everywhere have to be comfortable with it," Mr Abbott said.

"We want it to happen as quickly as possible but a rushed job might be a botched job."

Mr Chaney said it was important to work in partnership with Aboriginal people to achieve recognition.

"And if we do that then the political firepower that's being directed, the bureaucratic firepower and the community firepower, will enable the Aboriginal people of Australia to have their rightful place in this country," he said.

Opposition Leader Bill Shorten said change was needed to "rectify the wrong" of not recognising indigenous Australians.

"Doesn't matter what your politics, doesn't matter what football team you barrack for, what state you live in - today's the day we should say, enough is enough, let's recognise indigenous Australians in our constitution," he told reporters in Melbourne.

Early in 2013 federal parliament passed an Act of Recognition, intended to pave the way for constitutional change by allowing time to build community support for a referendum.

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Vic woman dies in festival accident

A MELBOURNE woman has been killed in a tent while camping at a concert held on a farm in Victoria's north.

Paramedics were called to the property near Rochester, 180 kilometres north of Melbourne, about 9am (AEDT) on Sunday but the 35-year-old from Yarraville was dead by the time they arrived.

The Major Collision Investigation Unit (MCIU) was called to the scene to investigate whether the death was the result of a car driving over the tent, a police spokeswoman said.

MCIU Detective Inspector Bernie Rankin told a local paper a young man had been taken into custody.

He said a large number of people had attended the festival on the private property and most had camped for the night.

Det Insp Rankin said the woman had suffered a fair degree of trauma.

"There was a nurse attempting CPR on the deceased woman," Det Insp Rankin told the Riverine Herald.

"We have a young man in custody who is assisting us with our inquiries."

"He's a young man who is known in the area."

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Bryce moved by final Aust Day as GG

Governor-General Quentin Bryce took part in her last Australia Day before relinquishing her role. Source: AAP

WITH the announcement of her replacement pending, Quentin Bryce spoke of how moving it is to unite Australians with shared values as she took part in her last Australia Day as governor-general.

Mrs Bryce relinquishes the role in March after five-and-a-half years as the Queen's representative, with former Defence chief Peter Cosgrove tipped to be named Australia's 26th governor-general this week, possibly as early as Monday.

"There's something very, very special about welcoming new members to our community and uniting all Australians to the values we share," Mrs Bryce said after inspecting troops at a flag-raising and citizenship ceremony in Canberra.

"I've had the honour of attending many citizenship ceremonies and I find each one just as moving as the very first I attended."

Mrs Bryce led an affirmation for current citizens after Prime Minister Tony Abbott welcomed 24 new citizens to the nation's team.

She also helped cut a cake to mark the 65th anniversary of the Nationality and Citizenship Act, which created the status of Australian citizen.

General Cosgrove has long been the frontrunner to succeed Mrs Bryce in the role.

Gen Cosgrove led the Australian contingency in the 1999 East Timor peacekeeping mission, subsequently commanding the army and serving as defence force chief from 2002 to 2005.

He was Australian of the Year in 2001.

Since leaving the military he has worked as a non-executive director of Qantas, a Deloitte Touche Tohmatsu consultant and been the chairman of the South Australian Defence Industry Development Board and peak aged services industry body Leading Age Services Australia.

A Townsville suburb was named after him in 2008 in recognition of his work leading the rebuilding taskforce after Cyclone Larry devastated northern Queensland.

Former prime minister Kevin Rudd appointed Mrs Bryce governor-general in 2007. She was Australia's first female governor-general.

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