Keith Urban among Grammy nominees

Keith Urban has been nominated for a Grammy Award in the category of Best Country Duo/Group. Source: AAP

AUSTRALIA'S Keith Urban has been nominated for a Grammy Award.

The country music star is a nominee in the Best Country Duo/Group Performance category for his collaboration with Tim McGraw and Taylor Swift, called You Can't Make Old Friends.

Jay Z easily led Grammy Award nominations, announced on Friday night, with nine, but left-of-centre rappers Macklemore & Ryan Lewis and Kendrick Lamar were among a group of new stars who took many of the major nominations.

New Zealand teenager Lorde was nominated for four awards, mostly for her debut single Royals.

The 17-year-old schoolgirl, who performed live during the Los Angeles ceremony, is in the running for song of the year, record of the year, best pop solo performance and best pop vocal album for Pure Heroine.

Macklemore and Lewis' gay marriage anthem Same Love was among song of the year nominees and the Seattle rap crew joined Los Angeles rapper Lamar with seven nominations apiece, including best album and best new artist of the year.

Pharrell Williams had four major nominations among his seven and Justin Timberlake also had seven.

Joining Lorde with four nominations apiece were Swift, Daft Punk, Bruno Mars and Kacey Musgraves.

Competing against Lorde's Royals for record of the year are Imagine Dragons' Radioactive, Mars' Locked Out of Heaven, Daft Punk's Get Lucky and Robin Thicke's Blurred Lines.

The Lorde and Mars entries also are up for song of the year with Pink's Just Give Me a Reason, Katy Perry's Roar and Same Love.

The show featured some of the year's top songs.

Lorde performed a starkly different version of Royals, while Swift performed her hit I Knew You Were Trouble in a performance pre-taped in Australia.

Urban performed a duet with US singer Miguel, while Thicke, TI and Earth, Wind & Fire teamed on Blurred Lines.

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Abbott, Shorten to attend Mandela service

PRIME Minister Tony Abbott and Opposition Leader Bill Shorten will present a united Australian front to honour and farewell Nelson Mandela.

The pair will this week fly to Johannesburg to join world leaders past and present, mourning the former South African president who died at his home on Thursday (local time) aged 95.

A huge memorial service is planned for the nation's first black leader on Tuesday, with US President Barack Obama already confirming his attendance.

On Saturday Mr Shorten's office said the Labor leader had accepted an invitation from Mr Abbott to accompany the prime minister to South Africa. Both men will miss most of the final 2013 parliamentary sitting week.

It is unknown how long the men will be out of Australia.

"There is a long bipartisan history of Australian support for South Africa and the campaign to abolish apartheid," Mr Abbott said, announcing his intention to attend the service.

After facing criticism for not lowering flags at the news of Mr Mandela's death, Mr Abbott said Australian flags will be set at half mast on the day of the official memorial.

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Choppers, 16 crews battle fire

Sinead Duncan took photographs of the fires from Buderim and closer to Kawana Way. "We're just trying to get out of Brightwater at the moment .... it's getting bad." Reader picture: Sinead Duncan Source: Supplied

FIRE crews are asking Sunshine Coast residents to avoid an out-of-control grass fire near Mountain Creek.

3.50pm: Sinead Duncan took photographs of the fires from Buderim and closer to Kawana Way.

"We're just trying to get out of Brightwater at the moment because we've been visiting friends," she said.

"The smoke is still thick and billowing, but thankfully the wind is keeping most of the smoke away from the houses."

The grass fire near Mountain Creek. Picture: QPS/Sara Matulich

GALLERY: Reader pictures of Sunshine Coast blaze

Jackie Clark said aerial support was trying to control the situation.

"It's getting bad," she said.

Resident Nadine Brooks took these pictures from her vantage point at nearby Grand Pde, Parrearra. Reader picture: Nadine Brooks

"Police, fire and ambulance have set up on Kawana Way."
 

GALLERY: Reader pictures of Sunshine Coast blaze

Resident Nadine Brooks took these pictures from her vantage point at nearby Grand Pde, Parrearra. Reader picture: Nadine Brooks

3.30pm:  Resident Nadine Brooks said there seemed to be two or three different blazes from her vantage point at nearby Grand Pde, Parrearra.

"It looks like they are moving north," she said.

"We are lucky the smoke is not coming (our) way."

3pm: TRAFFIC is heavy along the Sunshine Coast Motorway thanks to a large grass fire.

Motorists are reporting congestion from the Dixon Rd turnoff to Mountain Creek.

Kawana Way has been closed as 16 fire crews battle the blaze.

GALLERY: Reader pictures of Sunshine Coast blaze

1pm: The fire at Kawana Way, near Brightwater Estate, was first reported at 11.20am.

Helicopters are currently water bombing the fire between Brightwater Estate and the Chancellor Park area, and 16 fire crews are battling the blaze.

No property is under threat, but a large smoke haze has settled over Mountain Creek and neighbouring suburbs.

Residents have been advised to close windows and doors, with reports of ash the size of fingernails falling on the area.

Motorists using Kawana Way have been urged to drive to conditions.

GALLERY: Reader pictures of Sunshine Coast blaze

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Nine shares fall on first day

Nine Entertainment shares are tipped to make a successful debut on the ASX on Friday. Source: AAP

NINE Entertainment shares have ended their first day's trading below their issue price, taking some of the fizz out of the champagne that flowed as the TV network returned to being a publicly owned company.

Just after current affairs star Liz Hayes rang the bell at the Australian Securities Exchange building in Sydney, Nine Entertainment shares opened at $2.02, below their $2.05 issue price.

The stock traded as high as $2.07 after its midday open but ended down seven cents, or 3.4 per cent, at $1.98.

Chief executive David Gyngell made no comment on the pricing as he welcomed the company's new shareholders with the message that he "looked forward to the ups and downs" and would not sugar coat the realities of doing business.

"That's the way we run our business at Channel Nine - often wrong but never in doubt," Mr Gyngell said, to laughter from the crowd of staff and investors.

"You'll never hear us sugar coat it."

Mr Gyngell described the float process as "satisfying", saying in a statement that the share offer had been oversubscribed.

"We welcome both domestic and international investors and look forward to their long term investment in our business," he said.

Nine's float values the company at $1.93 billion and has raised $636 million, with $395 million flowing to the company's private owners including two US hedge funds that retain stakes.

A further $199 million goes to paying down debt while the company will receive $50 million in cash.

Mr Gyngell will be paid $2 million a year and received about 4.5 million shares under the terms of the float, worth $9.3 million at the issue price.

He also received a cash bonus of $2.5 million for taking the company to listing and an additional $4.5 million worth of performance rights.

Nine Entertainment shares were at $2 at 1444 AEDT, down five cents on heavy volume with 40 million shares traded.

BBY analyst Mark McDonnell said the first few hours of trading should not be seen as indicative of where the share price might go.

The shares came on at the low end of the $2.05-$2.35 range indicated during the offer and were "fairly priced", Mr McDonnell said.

The challenge for Nine now will be to achieve its 38.4 per cent ad revenue market share goals against a strengthened Ten Network.

Ten has billionaire shareholders Lachlan Murdoch, James Packer and Bruce Gordon backing a $200 million loan for the network and has secured rights to the Twenty20 cricket.

"Nine has a fantastic franchise in cricket through the summer and Ten is going to nibble away at that," Mr McDonnell said.

Mr McDonnell said Seven West Media remained his favoured free-to-air TV stock at present, partly because it had been sold down recently to accommodate the arrival of Nine.

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Fuel deal a win for consumers, business

CONSUMERS should expect lower grocery prices at Coles and Woolworths in 2014 due to an agreement from the supermarket giants to limit fuel discounts.

Hailed as a win for independent supermarkets, Coles and Woolworths agreed on Friday to limit discounts to a maximum four cents a litre as part of undertakings given to the nation's competition watchdog.

The retail behemoths told the Australian Competition and Consumer Commission (ACCC) they would stop funding the discounts through their supermarkets division, and any future discounting would need to be covered by their fuel retailing business.

The chains made the voluntary undertakings to address ACCC concerns their discount offers would reduce competition in the fuel retail sector.

The move comes after the consumer watchdog probed the supermarkets' shopper dockets following extended periods of eight cents a litre discounts.

Coles managing director Ian McLeod said the supermarket chain didn't believe its discounts amounted to a breach of law, but he recognised the ACCC's concerns.

Woolworths, meanwhile, denied there had been a competition problem arising from the discounts.

Consumer advocate Choice said the pledge should mean lower prices at Coles and Woolworths from January 1.

"Consumers have every right to expect grocery prices will fall at Coles and Woolworths as the supermarket giants reverse the flow of subsidies away from fuel," Choice spokesman Tom Godfrey said in a statement.

He said anything less would "expose the so-called price wars as nothing more than advertising slogans".

Australian Retailers Association executive director Russell Zimmerman said the deal was "the first step in fixing serious misuse of market powers issues".

He told AAP small, independent supermarkets had been "really badly hurt" by deep fuel discounts given by Coles and Woolworths.

"It does give (independent supermarkets) an opportunity to compete on a more level playing field."

The Australasian Convenience and Petroleum Marketers Association, which represents independent service stations, also backed the deal.

"It's not perfect, but we welcome it as a step towards levelling the playing field in the fuel industry," group chief executive Nic Moulis said.

He said about 1000 independent service stations had shut in the past four years, partly due to cost pressure caused by heavy fuel discounts at Coles and Woolworths.

Coles said it would continue to offer fuel discounts of four cents a litre.

Woolworths said it would offer eight cents a litre discounts to supermarket customers who spent an additional $5 on merchandise at its petrol stations.

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Holden must make its plans clear: Abbott

The PM has called on carmaker Holden to make its intentions about its future in Australia clear. Source: AAP

PRIME Minister Tony Abbott has called on Holden to make its intentions clear but says there will be no extra taxpayer support for the company.

There are reports the car maker is planning to close its Australian operations from 2016.

"I want Holden to stay, I want the motor industry to survive and flourish in this country," Mr Abbott told Fairfax radio on Friday.

"I do wish Holden would clarify their intentions because at the moment they've got everyone on tenterhooks."

Mr Abbott says the company appears to be in "two minds" about its future.

"I think they're weighing their options. I think they owe it to the workforce, they owe it to the suppliers, they owe it to the people of Australia to say what they're doing.

"Are they staying or are they going?"

Mr Abbott said the coalition took to the election a policy that includes substantial support for the motor industry.

"We stand ready to make that support available," he said.

"But there's not going to be any extra money over and above the generous support the taxpayers have been giving the motor industry for a long time."

Mr Abbott says the motor industry has long looked for money from taxpayers.

He says his government is trying to make it easier for all businesses to compete and flourish by bringing down taxes, reducing regulation and restoring confidence.

"That's the best thing we can do for the businesses of Australia, not chase them down the road waving a blank cheque at them," he said.

Mr Abbott said there was currently about half a billion a year in support available to the motor industry.

"We think there's more than enough money on the table. It's available to the motor industry. But there is no more."

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Aussie prisoner numbers hit record high

MORE prisoners are doing time in Australian jails than ever, official data shows.

The number of inmates in Australian jails hit a record 30,775 in 2013, up five per cent from 2012, Australian Bureau of Statistics (ABS) data released on Thursday shows.

The nation's rate of imprisonment is also up, at 170 prisoners for every 100,000 adults, from 157 for every 100,000 adults in 2003.

The Northern Territory has the highest imprisonment rate this year, with 821 adults in prison for every 100,000 adults.

Western Australia, with 256 prisoners for every 100,000 adults, is second, followed by NSW, Queensland and South Australia. The ACT has the lowest imprisonment rate.

Of the male inmate population, 20 per cent was jailed for acts intended to cause injury, 15 per cent for sexual assault, and another 15 per cent for unlawful entry with intent.

Women, meanwhile, were commonly jailed for drug offences (18 per cent), acts intended to cause injury (17 per cent) and unlawful entry with intent (10 per cent).

Most prisoners were born in Australia (81 per cent), followed by New Zealand at three per cent.

Two per cent of the local prison population was born in Vietnam, with another two per cent born in the UK.

Indigenous Australians comprise 27 per cent of the prisoner population, the ABS data shows.

The average age of Australian male inmates is 40, while for females it is 34.

Fifty-eight per cent of all prisoners are reoffenders.

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Crime rates fall in NSW except for fraud

The latest crime figures for NSW show the rates of most major crime types except fraud have fallen. Source: AAP

ALL major types of crime in NSW except fraud have either fallen or remained stable in the two years to September, latest crime statistics show.

Despite constant reports of gang-related shootings in Sydney, the latest quarterly crime report released on Thursday by the NSW Bureau of Crime Statistics and Research show shooting incidents have returned to their long-term average.

Recorded drug possession offences showed a lift but the bureau says those increases could be due to more intensive law enforcement rather than increased drug use.

The figures show fraud offences over the period increased by 20.7 per cent.

Most of that increase came from unauthorised use of credit cards and bank cards, while failing to pay for petrol from service stations accounted for six per cent of the increase. Eight of the major criminal offences showed significant downward trends.

These included non-domestic assault, robbery without a weapon, break and enter offences, motor vehicle theft, steal from motor vehicle, steal from person and malicious damage to property.

There were sizeable increases in a number of recorded drug possession offences, including possession of cocaine (up 45.3 per cent), amphetamines (up 13.6 per cent and other drugs (up 23.2 per cent).

"These increases may be due to more intensive law enforcement rather than increased drug use," the bureau said in a statement.

It said the biggest problems within the Greater Sydney area were fraud and stealing from a retail store, while Coffs Harbour-Grafton, Illawarra and Richmond-Tweed all experienced substantial increases in fraud incidents.

Most other parts of regional NSW experienced either stable or falling crime trends in most other categories of crime.

One notable exception to this was for the New England and North West Statistical Area, which experienced a 64 per cent increase in robbery with a weapon other than a firearm.

In the Greater Sydney area, non-domestic assaults were up by 28.8 per cent in Ryde, sexual assaults were up by 25.5 per cent in the inner southwest, indecent assaults and related offences were up 44.1 per cent in the inner west and robbery without a weapon was up 23.8 per cent in Parramatta.

NSW Police Commissioner Andrew Scipione welcomed the latest data, showing 16 of the 17 major crime categories either stable or falling and significant decreases in eight of those categories.

The figures showed that in the past 12 months there had been a decline in incidents of discharging firearms into premises by 52.7 per cent, he said in a statement.

Mr Scipione said the bureau had noted that police were actively working to reduce gun crime through increased weapons searches and uncovering of unlicensed firearms.

Mr Scipione said there had been a 9.5 per cent increase in safe firearm storage inspections, with 45,135 inspections conducted in the 12 months to September 2013.

He said the notable rise in fraud offences served as a warning for people to take all possible precautions to protect the security of their banking details, particularly credit cards.

"We know there are criminal gangs out there committing fraud via card skimming and on-line deception offences," he said.

Mr Scipione said failing to pay for petrol was a preventable crime with pay-before-you-pump an obvious strategy to prevent such offences.

He praised the "dedication and tenacity" of NSW police officers for the positive crime figures.

Acting Police Minister Greg Smith said the decreases were a win for police and for communities across NSW.

"Across NSW, over the five years to September 2013, violent offences have decreased on average each year by 1.9 per cent," he said in a statement.

"These statistics highlight how police are doing a fantastic job targeting people associated with gun crime and are getting in their faces every day."

Mr Smith said the NSW government was committed to driving down crime and would continue to give police the resources they need.

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Childcare inquiry calls for parent vents

Parents have been asked to share their insights into the childcare sector for a national survey. Source: AAP

PARENTS have been asked to share their frustrations about childcare affordability and access for a national inquiry.

Prime Minister Tony Abbott has a Productivity Commission review into the childcare sector underway.

It's the first major review of the childcare and early learning sector since the 1990s, and fulfils a coalition election promise.

The commission is inviting ideas from the community and childcare sector about ways the system can be more flexible, affordable and accessible for Australia's modern families.

Public submissions are due by February 3.

In 2012 more than 1.3 million children were enrolled in childcare or pre-school programs.

The inquiry's terms of reference include consideration of the hours parents work and study, the needs of regional parents and shift workers, out-of-pocket costs, the availability of rebates and subsidies and the needs of vulnerable children.

It will also look at whether the employment of nannies should be subsidised by taxpayers.

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Ex Qld transport head won't be charged

FORMER Queensland transport department head Michael Caltabiano will not be charged over allegations he gave a minister's son a leg up.

The premier's hand-picked director-general was sacked in February amid allegations there was official misconduct over the hiring of the son of former arts minister Ros Bates, Ben Gommers, to a senior position in his department.

After an investigation spanning more than a year, the state's Crime and Misconduct Commission (CMC) announced on Wednesday it will not lay criminal charges.

It had referred a brief of evidence to the Director of Public Prosecutions in July.

The DPP has advised that any prosecution of Mr Caltabiano for alleged criminal offences would not have reasonable prospects of success, and therefore was not warranted.

"As such, the CMC will not take any further action in relation to Mr Caltabiano," a statement said.

Less than a fortnight ago, Mr Caltabiano was also cleared by the parliamentary Ethics Committee over allegations he lied about a prior business relationship with Mr Gommers.

Mr Caltabiano, a fellow councillor with Premier Campbell Newman when at the Brisbane City Council, had been on leave with pay for four months before he was sacked.

He made more money after he was sidelined from his position than when he actually worked, pocketing $652,947 for less than a year's on the job.

Comment has been sough from Premier Campbell Newman, but Ms Bates has declined to comment.

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Vic RCH surgeon allegations go to police

A SENIOR surgeon at Melbourne's Royal Children's Hospital is to be referred to police over allegations he made several hundred thousand dollars through a conflict of interest.

Head of orthopaedic surgery Associate Professor Leo Donnan was investigated by the health ombudsman over his "industry relationships" after a whistleblower made a complaint, the hospital's chief executive Christine Kilpatrick said on Wednesday.

The ombudsman's report has recommended police be called in to investigate some of the allegations, she told reporters.

"The nature of the complaint related to industry relationships and the issue of conflict of interest," she said.

Asked whether there was an allegation Mr Donnan has benefitted financially because of this conflict, she added: "The allegations suggest that might have happened."

Mr Donnan, who is a member of the hospital's executive, is also listed as a director of a medical IT company. Professor Kilpatrick would not confirm if the company was involved in the conflict of interest.

The surgeon has not been suspended and continues to work at the hospital. An internal inquiry has also been launched.

Asked whether the complaints involved contracts worth hundreds of thousands of dollars, Prof Kilpatrick said: "The report mentions that, correct, yes."

She said that as a member of the executive and a former chief of surgery Mr Donnan has some responsibility for contracts, negotiations and procurement.

The hospital was told of the ombudsman's investigation in August, and the report was delivered this week.

She said it was a "very sad day" for the hospital.

"The matter investigated will have no bearing whatsoever on patient care at this hospital," she said.

The ombudsman's report is not being released publicly, she said, adding that due process needed to be adhered to.

She said conflict of interest is a common issue in health.

"People have many interests. The issue is how one manages that conflict of interest.

"We have policies and procedures that deal with that particular issue."

Deputy CEO John Stanway said the hospital was examining its procedures.

"From the executive's point of view we are looking at all our policies and procedures and improving on them further following the recommendations of the ombudsman

"We are very confident what we have put in place would deal with anything in future."

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Road speed limits may be raised in Qld

MAJOR highways and arterial routes are among the roads where speed limits may be raised in Queensland.

The state government has released its list of 100 roads that will be reviewed to determine whether speed limits should be changed.

They include the Peak Downs Highway, Warrego Highway, Logan Motorway, Gateway Motorway, Pacific Motorway and a number of sections on the Bruce Highway.

Transport and Main Roads Minister Scott Emerson says the government selected the 100 roads for review using information from 3300 public submissions.

"On almost 70 roads the majority of responses called for an increase in speed limits," he said.

It's possible maximum speed limits will be lifted above 110km/h, but it will be up to experts to decide.

Mr Emerson said expert safety engineers would now inspect the roads to determine what changes could be made.

Each road would be reviewed in line with speed limit guidelines with consideration given to traffic, pedestrians and infrastructure, he said.

The speed limit reviews will be completed by mid-2014.

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Politicians debate shark patrols in SA

A ROW has erupted over funding for shark patrols in South Australia in the aftermath of two fatal attacks interstate.

Family First MP Robert Brokenshire says full funding for regular helicopter patrols along metropolitan and south coast beaches must return.

Surf lifesavers say the helicopter patrols offer more versatility than fixed-wing aircraft but the loss of government funds last summer meant the chopper could now only take to the skies on weekends.

"Shark attacks are tragic for families and communities," Mr Brokenshire said on Monday.

"The most responsible way to manage shark proximity to our swimmers and surfers is to fund best-practice patrols."

But Emergency Services Minister Michael O'Brien said the fixed wing patrols funded by the government offered an effective means of detecting the presence of sharks.

"When a shark is seen near the shore or swimmers, the fixed wing aircraft will start a circular flying pattern and sound a siren to warn swimmers to leave the water as quickly as possible," he said.

Under the current arrangements, patrols by fixed-wing aircraft will be conducted along Adelaide's metropolitan coastline from North Haven, extending as far south as Rapid Bay.

They will operate from 11am to 8pm (CDST), seven days a week and will be extended to the south-coast between Victor Harbor and Goolwa on weekends, public holidays and during school holidays.

The patrols run from December to the end of March.

Over the last week, two people have died in separate shark attacks - a bodyboarder near Coffs Harbour on the NSW coast and a surfer off Gracetown in Western Australia.

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Money set to flow from Lehman class action

Australian creditors involved in a class action against Lehman Brothers have reached a settlement. Source: AAP

AUSTRALIAN creditors involved in a class action against collapsed American investment bank Lehman Brothers have reached a conditional settlement of the matter involving hundreds of millions of dollars.

The conditional settlement of the Wingecaribee Shire Council class action paves the way for the liquidators of Lehman Brothers Australia, PPB Advisory, to distribute more than 50 cents in the dollar to various councils and charities.

PPB said on Monday that the distribution would be on top of the $250 million directly received by councils and charities in January 2012 from their Lehman-originated collateralised debt obligations (CDOs).

"We are hopeful of making distributions to all creditors in or around the first quarter of 2014," PPY said in a statement.

"Once the necessary court approvals have been obtained, we are well placed to distribute over $300 million to creditors early next year.

"This will bring total recoveries to more than $550 million, which is an excellent outcome for local creditors caught up in what has been the largest corporate collapse in history."

The conditional settlement will be put to the Federal Court for ratification.

The applications are expected to be heard in December.

Three councils Wingecarribee Shire, Parkes Shire and City of Swan - had sought damages against Lehman Brothers Australia, claiming that they suffered losses arising from the acquisitions of synthetic collateralised debt obligations (SCDOs) and some other complex financial ptoducts.

In a judgment handed down on September 21, 2012, the Federal Court found that Lehman Brothers Australia had breached its fiduciary duties to municipalities, charities and churches by selling them the highly risky SCDOs, which blew up as the global financial crisis began to develop around mid-2007.

The liquidators of Lehman, which collapsed in 2008, subsequently lodged an appeal against that decision.

Litigation funder IMF, which had been funding churches, councils and charities in claims against Lehman negotiated a conditional settlement of the class action and appeal on the basis that creditor claims be submitted to a non-adversarial claims resolution process.

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Aus/NZ thalidomiders win compo fight

Australian victims of thalidomide will receive a total of $89 million after a class action settled. Source: AAP

PEOPLE left with birth defects after their mothers took thalidomide have won an $89 million settlement, but the company that made the drug will not pay a cent.

More than 100 Australian and New Zealand victims, including a woman who was about to lose her home, will be compensated in the landmark settlement announced to the Victorian Supreme Court on Monday.

The $89 million will be paid by the drug's distributor Diageo, with thalidomide's manufacturer Grunenthal not included in the settlement.

A class action against Grunenthal will no longer proceed.

The settlement ends a long compensation battle by the thalidomide victims, many of whom were born with missing or shortened limbs.

Monica McGhie was born 50 years ago without arms and legs and says the money will make her life a lot easier and help her stay healthy.

"I never thought this day would come," she said.

"This settlement will not take that hardship away but it means I can look to the future with more confidence, knowing I can afford the support and care I need."

Lawyer Michael Magazanik said that in a sense Grunenthal was getting off lightly because it partnered with a responsible corporate citizen in Diageo.

He described Grunenthal's conduct as appalling.

"Every single Australian thalidomider was injured by a drug made by Grunenthal in Germany," he said.

"Despite that, Grunenthal still will not pay a cent to its Australian and New Zealand victims.

"Fifty years on, Grunenthal will still not fess up to its shameful behaviour in relation to that drug."

Peter Gordon, another lawyer involved in the case, said it was a bittersweet victory for thalidomide victims.

"The result we have achieved today is a vindication of their courage, and it is a vindication of the proposition that right around the world there are people like them who have missed out and whose time has come," he said.

"I spoke to a woman last week who was about to lose her home and won't lose it now. There are stories like that."

Diageo corporate affairs director Ian Wright said the company was very sorry for what had happened and the suffering as a result of thalidomide.

"We hope very much that this will go some way towards helping them individually and as a group, to face the rest of their lives with some security and will bolster the bravery and dignity which they show every day," he told AAP.

"We believe that the settlement reached today is both fair and equitable to all involved in this very sensitive and difficult situation."

The settlement comes after Diageo last year reached a multi-million dollar settlement with prominent Australian thalidomide victim Lynette Rowe.

Thalidomide, a drug to counter morning sickness, was withdrawn from sale in 1961.

The drug was distributed in Australia and New Zealand around 1960 and 1961 by Distillers, which became part of Diageo in 1997.

Grunenthal apologised for thalidomide for the first time in August last year.

The settlement is subject to final court approval in February, with victims likely to receive payments as early as March.

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Stars hit the red carpet for ARIAs

THE Australian music industry's biggest stars have begun arriving at the 27th ARIA Awards.

Birds of Tokyo, who are up for six awards including Album of the Year and Best Group, and X Factor winner Samantha Jade, who has been given a nod for Song of the Year, were among the first to arrive at Sydney's The Star casino on Sunday afternoon.

The alternative rock outfit from Perth said they felt like "zombies" after catching a red eye flight from Perth where they were supporting UK rockers Muse.

The band are backing fellow Perth outfit Tame Impala to "win a bunch of stuff".

Tame Impala have garnered seven nominations but the night is expected to belong to 22-year-old electronic artist Flume, who leads the pack with eight nods.

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NSW community mourns popular shark victim

IT was only two years ago that Zac Young turned his back on the party lifestyle to help others.

Full of promise and enthusiasm, the 19-year-old from Port Macquarie was able to use his own experiences and personal triumph to instil hope in other young people.

His death has left a NSW mid-north coast community in mourning.

Mr Young was surfing with his mates at Riecks Point near Coffs Harbour on Saturday when a shark attacked him.

Despite his friends' heroic efforts to struggle with the shark and drag Mr Young to shore, he suffered massive blood loss and died.

Hundreds of friends and family descended on Grace Church at Port Macquarie to pay tribute to the much-loved teenager on Sunday.

Mr Young was remembered as a talented surfer and photographer, who was an intern with a Christian organisation called Youth for Christ, which works with at-risk youth.

Friend Lindsy Isaac, who helped get Mr Young back to shore, told reporters at the memorial it was the scariest thing he had ever been through.

"I can't believe he is gone," he told media.

Mr Young's father Kevin revealed his son told his friends "I love you" as they tried to save him.

Daryl Carter, regional director at Youth for Christ, said that was just what Mr Young did.

"He would do that all the time," Mr Carter told AAP following the service.

"He told me he loved me only on Friday afternoon.

"It's pretty hard to comprehend a world without him."

Through his role with Youth for Christ, Mr Young would talk to school students about values, the hurdles he had faced and how he overcame them.

Having turned his back on the party life about two years ago, Mr Carter said Mr Young made an impact on everyone he met.

"It's a huge loss in terms of him and his story, but I think his story will keep living and impacting people," he said.

Following the memorial service on Sunday, family and friends held a "paddle out" at a nearby beach and a minute's silence in the ocean.

Tributes also flowed on Facebook.

"Zac was always looking out for others," Brandon Erga, a pastor at Grace Church, wrote. "It didn't matter if he was busy, he always had time for those in need. It didn't matter who you were, Zac considered you a friend."

Beaches remained closed in the Coffs Harbour area on Sunday as the search for the shark - thought to be a three-metre tiger shark - continued.

Forensic specialists will examine the bite marks on Mr Young's body to determine the species responsible.

Local surfers say the reef break where Mr Young was mauled is known for shark activity, but Coffs Harbour police Inspector Joanne Reid said attacks were very rare.

"As far as sightings go, that sort of stuff isn't always reported so it's hard to say, but it's incredibly rare," she told AAP.

"In NSW itself, it's rare. I think the last one was in WA.

"The community is very, very much in shock."

Mr Young's death follows a fatal shark attack at Gracetown in Western Australia last weekend.

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PM stands by election schools promise

PM Tony Abbott has denied the government is breaking its pre-election schools funding promise. Source: AAP

PRIME Minister Tony Abbott insists the government will keep the promise it made on school funding before the election - not the promise some people think it made.

But the Opposition's education spokeswoman Kate Ellis says that's just "clever words".

And she hasn't ruled out backing any industrial action by teachers angry at the coalition reneging on school funding deals struck between the former Labor government and a majority of the states and territories.

Before the September election, the coalition said schools would receive the same amount of funding as under the so-called Gonski model.

"We are going to keep the promise that we made, not the promise that some people thought we made or the promise that some people would like us to make. We are going to keep the promise that we actually made," Mr Abbott told Network Ten on Sunday.

The prime minister refused to repeat the promise word for word, but said schools will get "the same quantum of funding over the four years that they would have under Labor".

The coalition will fund schools as planned for 2014 before introducing a new scheme from 2015, which Education Minister Christopher Pyne is trying to nut out with state and territory counterparts.

Labor says the coalition is making excuses.

"The government is clearly determined to break their word - that's what's happening," Labor senator Penny Wong told ABC TV.

"They aren't the government they said they'd be before the election."

Ms Ellis says there's no way the government can justify its move.

"A promise is a promise," she told Network Ten.

"They were very specific in their words before the election ... a promise they have now walked away from."

Ms Ellis said teachers and parents across Australia had a right to be angry about the government's decision and didn't rule out backing industrial action.

"I would certainly support ... us fighting to make sure these huge and important reforms are not tossed aside," she said.

State and territory leaders will get the chance to eyeball the prime minister about school funding at a Council of Australian Governments (COAG) meeting on December 13.

"It will absolutely be an agenda item," Tasmanian Premier Lara Giddings said on Sunday.

"This Gonski reform is one of the top issues."

South Australian Premier Jay Weatherill, who faces a state election in 2014, said the school funding issue may filter through to be an influencing factor.

"(The government) know that they can't be seen to break a promise so that's why they're pretending that they haven't broken a promise," Mr Weatherill said.

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