Tas bushfire crews battle strong winds

BUSHFIRE crews in Tasmania are battling strong winds as they try to contain more than 20 blazes across the state.

Causing most concern are fires within sight of Hobart's northern suburbs, south of the capital on Bruny Island and near Geeveston, and in the state's central highlands.

Nearby communities have been told to activate their bushfire plans and consider leaving, while other people have been asked to stay away from the affected areas.

"Even though we don't have the hot, dry conditions we had yesterday, this wind is causing us a lot of grief," Tasmania Fire Service spokesman Andrew McGuiness told the ABC.

"It's going to take crews basically all day to get on top of the fires that we've got burning around the south of the state."

Winds of 45-80km/h are expected in the south of the state until Saturday evening.

Communities that may be affected include Hobart's northern suburb of Berriedale, and the holiday village of Adventure Bay on Bruny Island.

The Tasmania Fire Service says power outages might still occur near Great Lake in the central highlands.

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Campaign to end NSW boating deaths

A RISE in boating fatalities in NSW since July has sparked a new campaign to get people to wear life jackets.

Minister for Roads and Ports Duncan Gay says there has been a spike in boating fatalities on the state's coastline and waterways, with 10 people killed on the water in the past four months alone.

This compares with 2011-12 when there were 19 boating fatalities in the 12-month period.

"I'm confident many of these people would still be alive today if they were wearing life jackets," Mr Gay said in a statement on Saturday.

"No one expects to fall in the water and get separated from their vessel.

"No one expects that years of swimming experience will be rendered useless if they slip and hit their head or fall in the water fully clothed."

To help prevent further deaths and reward those doing the right thing, Mr Gay launched a new campaign on Saturday that will see free tickets to the cricket handed out to responsible boaters.

Officers doing random safety checks of recreational vessels will be giving away tickets to the New Year's Test match, one-day matches at the SCG and NSW SpeedBlitz Blues matches to everyone on board who is wearing a life jacket.

"It's no good just having them stored away on your boat, where they are useless in an emergency," Mr Gay said.

"Make sure they are in good condition and the right type for your activity."

According to the report into boating incidents in the state, released on Saturday, 167 people have died in NSW waters in the 10 years to June 2012.

Of those, 103 fatalities were attributed to drowning, with 93 per cent of those who died reportedly not wearing a life jacket at the time.

Over the past decade, the most common type of recreational boating fatalities involved a vessel capsizing (33.6 per cent).

Meanwhile, the second largest cause was people falling overboard - equating to 25.2 per cent of deaths.

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Hugh Jackman to get Hollywood star

Australian actor Hugh Jackman is set to be honoured with a star on the Hollywood Walk of Fame. Source: AAP

HUGH Jackman has been a bona fide Hollywood star for years and in a fortnight he will have one to prove it.

The Hollywood Chamber of Commerce announced on Friday the Australian actor will be honoured with a star on the Hollywood Walk of Fame.

"Fans from around the world have been consistently asking when this star will be dedicated," Walk of Fame producer Ana Martinez said.

"We are happy to say that now is the time. Hugh is one of the world's most popular actors and we are excited that he is joining our Walk of Fame family."

The 44-year-old is a Tony Award winner and a big tip to score an Oscar nomination for his performance opposite Russell Crowe in the new adaptation of the stage musical Les Miserables. However, Jackman already has some Hollywood Boulevard real estate.

In 2009, about 20 metres away from where his star will be laid, Jackman got stuck into wet concrete outside the famed Grauman's Chinese Theatre, leaving hand and footprints alongside the likes of Marilyn Monroe, John Wayne, Frank Sinatra, Clark Gable and Bing Crosby.

Jackman has built up a huge following for his role as Wolverine in the X-Men franchise, including the spin-off X-Men Origins: Wolverine.

Jackman has just wrapped the shooting for another chapter, The Wolverine, in Sydney.

The star ceremony will take place on December 13.

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Treasurers must reform tax: Oakeshott

INDEPENDENT MP Rob Oakeshott has thrown down the challenge to commonwealth and state treasurers to sort out the issue of mining tax and royalties, and put politics "in the back pocket".

An independent inquiry has called for an overhaul of the mining and petroleum taxes to remove incentive for states to increase their royalties.

The inquiry's report, by former premiers Nick Greiner and John Brumby and tax expert Bruce Carter, was released on Friday.

It found the federal government's decision to fully credit state royalties under the minerals resource rent tax (MRRT) and petroleum resource rent tax (PRRT) had created an incentive for states to boost royalties, which was neither "desirable nor sustainable".

Mr Oakeshott said it was crucial the treasurers came together and talked about the issue in a sensible way.

"Put the politics in the back pocket and think of the nation's interest as far as our standing of living for the future," Mr Oakeshott told reporters in Canberra.

He said if it can't be resolved, the MRRT legislation should be brought to close up the loophole that allows a "feeding frenzy" for Western Australia and Queensland on their royalties, which in turn reduces the commonwealth's revenue base.

However, he was suspicious of anything being delivered given the report was "dumped" on a Friday afternoon just weeks before Christmas.

But he said the substance of the report was good and vindicated everything that many people had been saying all year about tax reform.

"It's the latest example of where the two major parties must now take tax reform seriously," Mr Oakeshott said.

He said earlier this week the Organisation for Economic Cooperation and Development had told Australia it must tackle taxation reform or see the start of material damage to the economy, and Treasury secretary Martin Parkinson had made similar remarks about superannuation reform.

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Govt won't act on sixth TV channel

The federal government has decided not to allow a fourth commercial free-to-air television network. Source: AAP

THE federal government has decided not to allow a fourth commercial free-to-air television network.

The decision came as Communications Minister Stephen Conroy on Friday unveiled the government's initial response to the Convergence Review, promising more changes to come in 2013.

Senator Conroy said no spectrum or broadcast licences will be made available to enable a fourth free-to-air television network.

But he said in the long-term the government would consider potential uses of the "sixth channel" as broadcasting and online technologies evolve.

The government will allow community TV to use the spectrum intended for the sixth channel until at least December 31, 2014.

The existing networks would benefit from an extension of their current rebate on broadcasting licence fees by a further 12 months, ahead of moving to reduce the fees permanently by 50 per cent, to a maximum of 4.5 per cent of revenue.

Senator Conroy also announced the government would seek parliament's approval to remove the restriction on a person controlling a network of commercial television stations that has an audience reach of greater than 75 per cent of the Australian population.

He said the removal of the so-called "75 per cent rule" would be subject to written undertakings about local content obligations in regional areas.

Changes will also be made to increase Australian content.

Commercial TV multichannel broadcasters will be required to show 730 hours of local content in 2013, increasing to 1095 hours in 2014 and to 1460 hours in 2015.

This includes an incentive for first-release drama by allowing an hour of first-release drama premiered on a digital multichannel to count for two hours under the transmission hours requirement for multichannels.

The 55 per cent Australian content quota for the commercial television broadcasters' primary channels will be retained.

Julie Flynn, chief executive of Free TV Australia, which represents the nation's commercial free-to-air networks, welcomed the changes.

"Today's announcements are a welcome first step towards ensuring that all viewers can continue to see quality Australian programming for free in a rapidly changing market," she said.

The laws will be drafted by March 2013.

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RBA boss says he's not going anywhere

CENTRAL bank governor Glenn Stevens concedes the authority could have better handled allegations of corruption at its two note-making firms, but isn't considering stepping down before his term ends next year.

The Reserve Bank of Australia (RBA) chief on Friday faced an ongoing parliamentary inquiry into the commonwealth's overseas law enforcement operations, which largely raked over the bribery scandal that has engulfed the bank for more than three years.

Agents of the RBA's wholly-owned subsidiary, Note Printing Australia (NPA), and part-owned note-making firm, Securency, have been accused of offering bribes to overseas officials to gain business.

Internal investigations of the two companies in 2007 after a whistleblower alleged corruption at NPA found no wrongdoing, and it was not until 2009 that the RBA brought in the Australian Federal Police (AFP).

Mr Stevens said he deeply regretted that the governance arrangements in the companies did not prove strong enough to detect and prevent the events that occurred.

"To the best of our knowledge the companies had appropriate policies, but clearly in the end if these matters occurred then one can only conclude for all that ... it wasn't good enough. There is no way around that," Mr Stevens told the hearing in Canberra.

He also told the joint committee on the Australia commission for law enforcement integrity that the two companies had since done a great deal of work to reform policies and compliance.

"A key learning point for the Reserve Bank from these events is the extent of possible risks that can come from operating commercial ventures which export to a range of foreign jurisdictions," he said.

"This has caused the Reserve Bank to re-evaluate its risk appetite insofar as such entities are concerned."

Australian Greens leader Christine Milne, a committee member, questioned whether the RBA was naive or had turned a blind eye to corrupt acts because of the difficult jurisdictions in which the companies were working.

"I really think the Australian community is going to be wondering how we have such a failure of governance at the corporate level inside the Reserve Bank," she told reporters outside the hearing.

But Mr Stevens dismissed reports he was considering an early exit from his position as the RBA's boss.

"The mooted idea that I would retire at the end of my seven-year term, that that's an early exit, strikes me as a little odd," Mr Stevens said.

"But it won't be before then."

Mr Stevens seven-year term ends in September next year.

Millions of dollars were paid to the agents of NPA and Securency, but former deputy governor Ric Battellino told the hearing every company in Australia pays commissions.

"I know the word secret gets thrown in there, but there is nothing secret about it. It was there in the contract," he said.

The agents were paid to market products in the relevant countries.

However, he said the episode showed that economic policy institutions like the RBA don't have any business being involved in commercial operations, and why the RBA has been trying to sell its share in Securency for two years.

"It's imperative that the (Reserve) Bank get out of that," he said.

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Science experiment sickens students

A SCIENCE experiment that went wrong has sent 13 Sydney high school students and teachers to hospital.

Emergency crews rushed to Moorebank High School, in Sydney's southwest, around 3pm (AEST) on Thursday.

More than 20 people were exposed to fumes from a sulphuric-based solution in a science classroom, a NSW Fire and Rescue spokesman said.

"Our HAZMAT set up an exclusion zone and crews in gas suits did atmospheric monitoring and contained the substance that appeared to be causing the problem," Acting Superintendent Josh Turner told AAP.

A NSW Ambulance spokesman said everyone was assessed and, of those, 11 students and two adults were transported to hospital in stable conditions.

A total of 120 students and teachers were evacuated from a number of classrooms and a teachers lounge.

Since the incident happened at the end of the school day, the rest of the students were sent home.

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Two Qld govt MPs quit LNP

THE last day of parliamentary sittings for the year has climaxed with two Queensland government MPs quitting the Liberal National Party (LNP) to become independents.

Brisbane MP Carl Judge and Gold Coast MP Alex Douglas simultaneously threw in the towel on Thursday afternoon, both saying their decisions were made with heavy hearts.

Mr Judge, who represents Yeerongpilly, announced his decision during parliament while Dr Douglas addressed reporters outside the chamber.

"I simply cannot continue to serve this government and I cannot serve with people who lack respect, who want to yell abuse across the chamber, who won't allow mature debate to take place," Mr Judge said.

"I won't be part of that team."

He said he disagreed with the government's mass public service axing and believes it broke an election promise.

His resignation comes after government MPs voted to have him disendorsed from the party after he refused to pledge 100 per cent loyalty to Premier Campbell Newman.

Dr Douglas, who previously spoke out against the government's plans for a cruise ship terminal on the Gold Coast, said he was best suited to serve his electorate of Gaven as an independent.

He said the electorate did not want to see a "blunder through" method of governance.

"There are better ways of running government than this approach," he said.

Dr Douglas' dispute with the premier came to a head after he was taken off two committees, including an ethics committee that's investigating transport chief Michael Caltabiano.

He was appointed as chair on another committee but was stripped of that role as well, after warring with the government over the committee reshuffle.

Dr Douglas and Mr Judge were seen earlier lunching with mining magnate Clive Palmer who is considering launching his own party.

Mr Palmer threw in his LNP membership last week after a long-running war of words with the government's leaders.

On Saturday, Condamine MP Ray Hopper resigned from the LNP and joined Katter's Australian Party.

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Clive Palmer considers creating new party

Mining magnate Clive Palmer reportedly plans to set up his own political outfit to rival the LNP. Source: AAP

CLIVE Palmer says he is too fat to become premier, but he will spend the weekend considering whether to give birth to a new political party for Queensland.

"I think you'll see things happening in the coming weeks," he told reporters at a press conference on the steps of Parliament House.

"It's more than (a) 50 per cent (chance it will happen)."

He would call his new body the United Australia Party, reviving the name of the party his father belonged to.

As it happens, his nephew owns the trademark to the name.

Mr Palmer said he didn't have a hand in the resignations of Alex Douglas and Carl Judge from the LNP on Thursday afternoon, despite lunching with them just an hour earlier.

He has also made no approaches to unite with Katter's Australian Party.

Mr Palmer is confident, however, he would have the numbers to set up a United Australia Party, which he would not limit to Queensland.

It would could target the next election as he believes the community is ready for a new party.

He said voters are "disgusted" at the Newman government's behaviour.

"What we're seeing in the electorate is a great amount of concern for the civil liberties of Queenslanders and their right to be able to express their point of view," he said.

Mr Palmer said he wouldn't get rid of his business interests if he set up a party, but either way he's not interested in becoming premier.

"I'm a reluctant warrior, I don't really want to get involved in politics," he said.

"I think I'm too fat to be premier, you want to have a nice tanned guy as premier to promote the tourist industry."

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Kelly says large bank returns won't return

Westpac chief Gail Kelly says banks posting returns on equity of 20 per cent or more are long gone. Source: AAP

THE days of Australian banks posting returns on equity of 20 per cent or more are long gone, says Westpac chief executive Gail Kelly.

While it is still desirable for banks to grow their profits, aiming for returns on shareholder funds of 20 per cent or higher has not been sensible since the global financial crisis, she says.

"Those days of the 23 to 22 per cent ... I think those days are gone," Mrs Kelly said.

She said Westpac's target to maintain a return on equity rate of 15 per cent was still appropriate, as long as good risk management strategies were implemented.

"I think there are opportunities for growth and it is important that in a sensible managed way we go after those opportunities for growth," she told a business forum in Sydney.

Speaking at the same event, Bendigo and Adelaide Bank managing director Mike Hirst said banks held a privileged position in the economy and it was inappropriate for them to chase risky levels of return.

"The reality is if we're asking for 20 per cent returns from our banks, when the risk rate is six or seven per cent, that is a fairly large risk and I'm not sure there should be that risk," he told the forum.

Australian Prudential Regulation Authority chairman John Laker said he had no problem with banks making returns in the mid teens but agreed that anything higher than 20 per cent was no longer appropriate.

"I think the message is getting through," he said.

"Part of it is educating investors that the good days are behind us."

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Thai PM survives no-confidence vote

THAILAND'S Prime Minister Yingluck Shinawatra has survived a no-confidence vote in parliament.

Wednesday's vote came after a censure debate, and four days after a demonstration by thousands of anti-government protesters.

The opposition is outnumbered in parliament, however, and MPs voted 308 to 159 to keep Yingluck in power. One deputy premier and other two ministers also comfortably survived no-confidence votes.

Among the issues brought up against Yingluck and other ministers were alleged irregularities in the government's rice-pledging scheme, flood management budget, canal-dredging projects and the procurement of combat systems on two navy frigates.

Deputy Prime Minister Chalerm Yubumrung was also accused of serving the interests of former Prime Minister Thaksin Shinawatra, Yingluck's brother. Thaksin was ousted in a 2006 coup and lives in self-imposed exile following a corruption conviction.

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Protesters escorted from Toro's WA office

ANTI-NUCLEAR protesters have been escorted by police from a uranium explorer's West Perth office after they staged a brief demonstration in the company's reception area.

Toro Energy, which plans to develop Western Australia's first uranium mine with its Wiluna project, said about half a dozen protesters from the Anti Nuclear Association of WA emptied three bags of dyed yellow sand onto the floor and spread it throughout the office.

"During this time, protesters intimidated and filmed Toro staff, and refused to cease filming when requested to do so," the company said.

"Police were called and the protesters were escorted from the building."

Protesters claimed they were "locked" in the office but the company said this did not happen.

"The entire episode took less than 10 minutes," Toro said.

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Qld adoption victims welcome apology

Queensland Premier Campbell Newman has made a formal apology to victims of past forced adoptions. Source: AAP

HAROLD Poole broke down in tears as Queensland's premier apologised to victims of forced adoptions.

The 63-year-old was among many who came to state parliament on Tuesday to hear Premier Campbell Newman officially apologise to victims of forced adoptions from the 1950s to the 1970s.

"To the mothers whose babies were taken and hidden from them, and who were misled, deceived, threatened or forced to relinquish their babies, we say sorry," Mr Newman told state parliament.

"To the sons and daughters taken from their mothers, we also say sorry and express our deep regret for the trauma that many of you have suffered."

Mr Poole said he was surprised to be moved to tears.

"I thought I was at the end of my journey; that this was going to be the icing on the cake," Mr Poole told AAP through tears.

"It has brought it all back."

He said the apology meant a lot to him but he wished his mother, who gave birth out of wedlock and was forced to give him up, was alive to hear it.

"I didn't get to meet her but she is my hero," he said.

"She told her other children that they had an older brother and 'when he comes knocking on your doors, welcome him'."

Evelyn McDade said she was forced to give up her baby because she was deaf and deemed unfit to be a mother.

"They took my baby straight away after I gave birth," she said through an interpreter.

"I went sneaking around the hospital looking for her."

She has since been reunited with her daughter. While she welcomes the apology, it doesn't make up for the lost years.

Dozens, mostly women, watched the apology from the public gallery and many cried when Opposition Leader Annastacia Palaszczuk told Margaret Oakhill-Hamilton's story.

The then 19-year-old had been brought into hospital through a back door, told not to speak to anyone and treated as if she were guilty of some unforgivable offence, Ms Palaszczuk said.

She was denied compassion, denied decency and left alone during her labour only to have her baby taken and adopted out, she said.

"These women had committed no crime, yet they were punished, abused and ostracised in their local communities, even in many cases, by their families," Ms Palaszczuk said.

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Police in Punchbowl after shooting reports

Police are conducting and operation in Sydney's southwest after a man was shot multiple times. Source: AAP

A MAN has been shot in southwestern Sydney.

An ambulance was called to Punchbowl just after 4pm (AEDT) after reports of a shooting, an ambulance spokesman told AAP.

He says one person has been taken to hospital.

A police spokesman would not confirm the shooting, except to say a police operation is underway in Punchbowl.

The Nine Network is reporting that a man had been shot five times in Punchbowl.

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Holden would keep grant, coalition says

GM Holden can expect the federal coalition to honour the $215 million grant it was given by the federal government to keep making cars in Australia until 2022.

After GM Holden on Tuesday warned a policy change might force it to review its commitment to keep building cars in Australia, the opposition said it was critical of the grant when it was made in March, but it would honour government contracts if elected.

"We have always complied with contractual arrangements that previous governments have entered into, and there is no reason to deviate from that good practice," opposition innovation, industry and science spokeswoman Sophie Mirabella told AAP.

GM Holden chairman and managing director Mike Devereux told reporters at a briefing in Melbourne that without government assistance there would be no car-making industry in Australia at all.

In March GM Holden committed more than $1 billion over the next 10 years to keep building cars in Australia, in return for $275 million in state and federal funding.

Mr Devereux said if that was put at risk by a change of government, GM Holden would review its commitment.

"If there is a change in government, then make no mistake, yes, Australia needs to have contemporary policy that gives us certainty over time and that is competitive with other countries.

"We need that kind of policy to be able to build things here between 2015-2022."

The opposition is yet to reveal its auto policy, but it has said it would cut $500 million from a $3.4 billion government automotive scheme to subsidise auto plant upgrades.

Mr Devereux said he hoped the opposition would change its public statements on the issue, because international managers were asking questions about the country's long-term business plans.

He noted industry assistance was a big factor in the re-election of President Barack Obama in the USA, predicting it would figure also in next year's federal election.

"It became an election issue, it was front and centre," Mr Devereux said.

"I believe 2013 will be a year that Australia decides whether it wants to have an auto industry or not."

He called for an independent review of the industry.

Ms Mirabella welcomed the call, saying a Productivity Commission review was coalition policy and had been scheduled for 2008 but was abandoned by the Rudd government.

"What we want to do is work with the Productivity Commission and the industry to have this review and come up with a better way forward, because we think there is a better way and we want to support the car industry and have a viable industry," Ms Mirabella said.

The Australian automotive industry employs about 55,000 people and supports another 200,000 jobs, with Holden accounting for about 40 per cent of output nationally.

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No cover up of NSW budget mistake: Baird

The NSW treasurer will be called on to explain a $1 billion mistake in the state's finances. Source: AAP

NSW Treasurer Mike Baird has rubbished claims he is covering up details of a billion-dollar budget blunder after refusing to immediately release 37 mistakes uncovered by an audit.

Mr Baird clashed repeatedly with Labor MPs when he appeared at a supplementary budget estimates hearing on Monday, where he had been called to explain a $1 billion error in the 2011-12 accounts.

In a major embarrassment for the state government, Auditor-General Peter Achterstraat last month found the deficit of $337 million announced in this year's budget should in fact be a surplus of $680 million.

The billion-dollar turnaround was attributed to 37 mistakes - errors in spreadsheets, data entry, end-of-year accruals and reconciliation processes.

Despite being challenged repeatedly by Labor and Greens MPs to detail the 37 mistakes, Mr Baird said he would provide the auditor-general's list when each government department had responded to his findings.

"Why are you covering this up?" Labor's Walt Secord asked during the fractious two-hour hearing.

"We're not covering anything up," Mr Baird replied.

"We're not hiding anything. We're not on a witch-hunt. I'm about fixing the problem."

He said every department had been given a chance to respond.

"They are coming back at the end of this month. So you'll have the information. Don't panic."

Mr Baird's refusal to list the errors, and name the departments responsible, was "absolutely appalling", Labor's Greg Donnelly said.

Mr Achterstraat has agreed to review the upcoming budget half-year review and 2013-14 state budget, while Mr Baird has promised to appoint senior financial experts to fix the budget blunders.

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Gunns staff owed $9m in entitlements

FAILED timber company Gunns owes staff more than $9 million in entitlements, a report from receivers and managers KordaMentha showed.

The report showed Gunns owed its staff $6.6 million in holiday pay, $3.1 million in long-service leave and a little over $100,000 in wages.

Gunns employed about 500 people around Australia, with about 200 based in Tasmania.

Unsecured creditors were owed $69.9 million.

The figures were contained in a report KordaMentha submitted to the Australian Securities and Investments Commission (ASIC) on Friday.

Gunns went into administration and receivership on September 25 after it failed to secure funds to keep the company going.

Receivers were required to prepare a report for ASIC two months after being appointed.

In terms of assets, the report showed Gunns had $25.8 million cash at bank, $45.1 million worth of stock and $109.4 million of plant and equipment, based on their book value.

Gunns also had an interest in land worth $184 million.

The estimated amount of what the receivers would get through a sale of those assets, or realisable value, was not disclosed due to commercial sensitivity.

Gunns made a $904 million net loss in 2011/12.

Receiver Mark Korda of KordaMentha said in September that shareholders of the collapsed Tasmanian woodchipper had likely lost all their money.

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Medvedev hints at Kremlin return

RUSSIAN Prime Minister Dmitry Medvedev has not ruled out a return to the Kremlin after his 2008-12 single term as head of state but says he's happy working under his mentor Vladimir Putin.

"If I have sufficient strength and health, if our people trust me in the future with such a position, then of course I do not rule such a turn of events," Medvedev said in an interview with AFP and Le Figaro when asked if he had the ambition for another Kremlin term.

Medvedev, who on Monday embarks on a working visit to France, served as president after Putin stepped aside following the maximum two consecutive terms allowed by the constitution after his 2000-08 stint.

But Putin, 60, stayed on as a powerful prime minister and Medvedev, 47, never fully emerged from the shadow of his fellow St Petersburg native, an impression strongly reinforced when Putin returned to the Kremlin in May 2012.

Medvedev, who in turn was then appointed prime minister in May, failed to bring about lasting change through a much-trumpeted modernisation program in his one term as president.

But in his interview with AFP, he revealed he had not lost his political ambition.

"This (returning to the presidency) depends on a whole range of factors," he said.

"Never say never, especially as I swam in that river once and this is a river that you can swim in twice."

Russia will only go to the polls to vote for a president again in March 2018 and in the next half decade society is expected to see major change as the middle class grows and internet use explodes. Putin has also not ruled out standing again.

This year's tightly choreographed job swap was criticised for being played out far from the public, and frustration over the return of Putin to the Kremlin fuelled the opposition protests that rocked Russia in the past year.

Some of Medvedev's supporters - who saw him as a possible champion of a refreshed, innovative and more pro-Western Russia - were hugely disappointed by his apparent surrender of the Kremlin back to Putin.

But Medvedev played up the tight links between the two men, saying he would find it impossible to work under anyone else.

"I would hardly have become prime minister under another president, I cannot imagine it at all," he said.

"If there is someone you can work with comfortably as prime minister after being president it is just one person, Vladimir Putin."

Medvedev has distanced himself from Putin on some issues, notably the case of feminist punk rockers Pussy Riot, two of whom have been sent to prison camps for performing a song against the Russian strongman in a church.

Reaffirming his belief that they should be released, Medvedev said: "I think they have already tasted what prison is ... so further punishment in the form of prison is not necessary. This is my personal position."

On the case of Russia's best-known prisoner, former tycoon Mikhail Khodorkovsky, Medvedev said court decisions had to be respected but noted that the convict had never made a bid for clemency from the Kremlin.

Medvedev admitted that his modernisation drive had so far fallen short but expressed hope there was still time to put his ideas into place.

"It's true that for the moment modernisation has not turned into a national idea and there has been no kind of radical progress reached," he said.

"We need to modernise the economy but can you do this in two to three years? Of course not."

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Men arrested after mosque 'threat'

A person is in custody after a threat has been made against a mosque in Sydney's south. Source: AAP

TWO suspected Muslim extremists have been arrested at a mosque in Sydney's south after threats were allegedly made against worshippers.

Police say two men are in custody after an operation at the mosque in Arncliffe, in Sydney's south, on Sunday afternoon.

They said one man was removed from the mosque around 1.15pm by "members of the congregation" before being arrested by police stationed outside.

Another man was arrested outside the mosque, police told AAP.

They did not specify the nature of the arrests.

A witness at the mosque who does not want to be named, said he saw members of the congregation drag a man wearing Islamic clothing from the building around 1.00pm (AEDT).

The witness said worshippers hauled the man out of the mosque and took him "down the street", before police arrived and apprehended him.

He said the man appeared to be an Anglo-Saxon Australian and said he thought he may have been a Wahabi extremist.

Jamal Daoud of the Social Justice Network said he was contacted by a member of the Muslim community who said two Wahabi extremists had threatened Shia Muslims gathered to observe the day of Ashura at the Masjid Fatima Al Zahrah mosque.

"We have information that two men were arrested when they attempted attacking masses of Shia Muslims remembering the Ashura in Arncliffe," Mr Daoud said.

He said the action came after calls for violence against Shia were made on Facebook on Saturday.

Mr Daoud said worshippers at the mosque called police when they became suspicious of attempts by the two men to use their mobile phones.

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New Sydney transport ticketing - by 2015

Sydneysiders will be able to use the Opal card to pay for all the public transport tickets by 2015. Source: AAP

AFTER more than a decade of delays, public transport tickets in Sydney are finally set to go electronic - but not for another year or three.

NSW Transport Minister Gladys Berejiklian said on Sunday commuters would be able to use a single card to pay for tickets on ferries, trains, buses and light rail by 2015.

The so-called Opal card will be available on all Sydney ferries and some trains in 2013, with buses and light rail to come on line two years later, Ms Berejiklian said.

"This is something that will change the way we use public transport," she told reporters at Neutral Bay on Sydney's north shore.

"It will be an easy system where commuters simply have to tap on and tap off, and it will be like having an e-TAG in your pocket."

The announcement has been a long time coming, with an e-ticketing system first proposed by the former Labor government in 1997, to be in place in time for the 2000 Olympics.

That plan was scrapped and a long-running dispute between the NSW government and the sacked developer of the previous e-card was only settled in February this year.

Ms Berejiklian said the first commuters to have access to the card would be patrons on the Neutral Bay ferry route in a trial of the system from December 7.

She said fares would remain the same during the Neutral Bay trial, while further announcements on charges would be made during the system's roll-out.

The Opal card itself would be free, with public transport users putting money on it in a similar way to the e-TAG for cars, Ms Berejiklian said.

She said a big benefit of the Opal card will be that after eight journeys using it in a given week, all further trips will be free.

She also said there would be a daily travel cap of $15.00 from Monday to Saturday for Opal card customers, with a cap on Sundays of $2.50.

She expected there would be a "few glitches" during the roll-out and said that's why the single card system was being implemented progressively.

Opposition Transport spokeswoman Penny Sharpe said the government was running behind schedule on the project.

Ms Sharpe told reporters the government had initially planned to have the system in place by 2014, but had now pushed it back.

"Passengers will be disappointed at the slow rollout," Ms Sharpe said.

She said commuters should also be worried that the government had not ruled out hiking fares once the Opal card was fully introduced.

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Swimmer missing from Perth beach

POLICE fear a man last seen swimming at Trigg Beach in Perth is missing.

The beach inspector saw the man wave for assistance from the water around 11.30am (WST) on Sunday but he has not been seen since.

Police said it was not known whether the man, believed to be aged between 40 and 60, was now missing or was able to make it to the shore without assistance.

The beach has been cleared to see if there is any unclaimed personal property on the shore.

Surf lifesavers are searching the area with boats and jet skis, while police search with a helicopter.

Police are asking members of the public who know of loved ones who may have been swimming and not returned home to call 131 444.

Surf Life Saving WA said a 1.5 metre hammerhead shark was spotted 300m offshore from South Trigg around 1.50pm (WST).

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