NZ dollar falls from two-month high

THE New Zealand dollar has fallen from a two-month high amid speculation the European Central Bank will keep interest rates low for an extended period.

THE kiwi rose as high as 87.48 US cents overnight and was trading at 87.19 cents at 5pm in Wellington, from 87.12 cents at 8am and 87.32 cents at 5pm on Monday. The trade-weighted index was little changed at 81.08 from 81.16 yesterday.

ECB president Mario Draghi told Dutch newspaper Telegraaf the central bank will continue to stimulate the regional economy until at least the end of 2016.The prospect of low European rates for longer than previously anticipated sapped demand for currencies such as the kiwi, which had been fuelled by upbeat Chinese manufacturing data on Monday."Yesterday we had a China PMI report which was quite strong and that caused the Aussie and the kiwi to rise against the US, and that rise for New Zealand lasted until about 6pm yesterday and then it stopped as you had some negative news out of Europe," Imre Speizer, senior market strategist at Westpac Banking Corp said."The kiwi still looks quite strong in the near-term, so I'd be picking it to break above 87.50."The New Zealand dollar was little changed at 92.48 Australian cents at 5pm from 92.50 cents on Monday and at 64.14 euro cents from 64.17 cents, but slipped to 88.89 yen from 89.01 yen.

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Qld bikies can fill out 'resignation' form

QUEENSLAND bikies and their associates can fill out a form to declare they are no longer part of an outlaw group.

THE Queensland Police Service website has a questionnaire asking people to describe the steps they have taken to "disassociate".

The form asks participants to circle yes or no boxes to indicate if they have returned or destroyed their club colours, if they have a club tattoo, and whether it's been removed.They are also asked to declare if they are an office holder, general member or associate of a bikie chapter.New laws are coming into effect from July 1 banning bikies from working as used car sellers, security guards, locksmiths, tow truck drivers, bookmakers, pawn brokers, tattoo artists and bar workers.More than a dozen lines on the form are set aside so people can describe their future intentions with an outlaw group and the steps their organisation has taken to disassociate from them.A declaration section asks participants to give an undertaking to provide documents to the police within 10 business days.Earlier this month, Attorney-General Jarrod Bleijie announced the government would delay a controversial plan to ban people with bikie links from working in the building industry.This means plumbers and electricians with suspected bikie links won't be banned from having a trades licence until July 2015, after a federal royal commission into unions.But new licensing requirements will apply to other industries under the Tattoo Parlours Act 2013.Bikies can call a police hotline for help on filling out the form, which is subject to the Information Privacy Act.The Queensland police website promises that applications to disown bike membership would be assessed "in a timely manner".But participants are advised that delaying a response to a letter could jeopardise their ability to hold an industry licence.The form has to be witnessed by another signature.

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Abbott vows to keep intervening for Greste

Tony Abbott (pic) says he is bewildered by an Egyptian court's decision to jail Peter Greste. Source: AAP

PRIME Minister Tony Abbott has vowed to keep lobbying Egypt's government to free jailed Australian journalist Peter Greste.

THE federal government on Tuesday summoned a senior Egyptian diplomat to express outrage over the seven-year sentence handed to the Al Jazeera reporter in Cairo.

It was the latest diplomatic overture from the government to Egyptian authorities about the case, including from Mr Abbott who twice contacted the country's leadership to lobby for Mr Greste."The Australian government will continue to make intercessions at every level with the Egyptian government and elsewhere to try and ensure that Peter Greste and his colleagues are swiftly released," the prime minister told parliament on Tuesday.He said the government understood and supported the Egyptian government's crackdown on extremist groups, including the Muslim Brotherhood, but couldn't comprehend why those reporting on the group were jailed.Opposition Leader Bill Shorten said Mr Greste's harsh treatment as a journalist stirred "something elemental in the spirit of all free people".But he supported the prime minister's call for cool heads to prevail."These are the times when passions run high but the best interests of Peter and his two colleagues will not be served by inflammatory rhetoric," Mr Shorten told parliament.The government sought to summon Egypt's ambassador to the meeting at the Department of Foreign Affairs and Trade, but discovered Hassan El-Laithy is in Cairo.Egyptian Charge d'Affaires Sherif Bedeir Hussein was called instead, and he refused to speak to journalists after leaving the half-hour meeting in Canberra.Attorney-General George Brandis said the government would make a formal request to President Abdel Fattah al-Sisi seeking his intervention.

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Jodhi Meares charged with DUI

Jodhi Meares is heading to court after allegedly being caught drink driving in Sydney's east. Source: AAP

JAMES Packer's ex-wife Jodhi Meares will face court in August on drink driving charges after crashing into three parked cars in Sydney's eastern suburbs.

THE 43-year-old had to be rescued from her Range Rover, which rolled after the smash in upmarket Bellevue Hill on Saturday night.

The fashion designer, who is engaged to rocker Jon Stevens, was given a roadside breath test before being taken to the local police station.Police say she recorded a 0.181 blood alcohol reading, almost four times the legal limit.She was charged with drink driving and driving while suspended and is due to appear at Waverley Local Court on August 5.It's reported Meares could face the possibility of 18 months in jail and a fine of $3300.After a long engagement, Meares and Stevens were reportedly planning to tie the knot in September.

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Jobs could go, Qld health minister says

Queensland's health minister concedes jobs could be lost as local health boards take over staffing. Source: AAP

QUEENSLAND'S health minister has conceded jobs could be lost as local health boards gain control of staffing from a centralised bureaucracy.

FROM July 1, eight of the state's 16 regional Hospital and Health Services (HHS) boards will take control of staffing from Queensland Health.

The other eight HHS boards will gain staffing control in July 2015.Health Minister Lawrence Springborg said the transfer of staffing power from Queensland Health to local health and hospital boards could lead to job losses in the department."That's the simple reality. I think everyone understands those sorts of things," he told ABC Radio on Monday."As you put more of the focus into efficient management at a local level, there's ultimately going to be transfer of some of those resources as well, and positions may not ultimately be needed."The government established the HHS boards in July 2012 in a bid to decentralise the health bureaucracy.From July, three HHS boards take ownership of land and buildings.Another six boards will own these assets in December, with the remaining seven HHS boards taking control of infrastructure from July 2015.Opposition health spokeswoman Jo-Ann Miller said Mr Springborg was shirking his portfolio responsibilities by offloading them to health boards."Make no mistake, the Newman government is trying to dodge responsibility for cuts to the health service, responsibility for its management and the possible future sale of assets," she said."We see a health minister who is running scared from the health portfolio and becoming the minister for buck passing."The state's public sector union estimates thousands more jobs could go in health."All that will change is how the government defines the jobs it cuts - not that jobs will be cut," Together Union secretary Alex Scott said."They cut jobs in health and then redefine them to say they weren't frontline services."

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Vic firies will be paid for mine fire: MFB

Victorian firefighters have begun legal action to recover wages owed since the Hazelwood mine fire. Source: AAP

FIREFIGHTERS involved in battling Victoria's mine fire will be paid outstanding entitlements for their efforts this week, the Metropolitan Fire Brigade (MFB) says.

THE United Firefighters Union (UFU) has started Federal Court action against the brigade to recover wages owing since the 45-day fire at the Hazelwood coal mine began on February 9.

The legal action concerns 240 MFB firefighters, who are each owed an average $4000 out of a total overtime bill of more than $6 million.The MFB says all outstanding payments it is aware of will be paid this week."We have provided assurances to staff that everyone will be paid all of their entitlements," acting deputy chief officer David Bruce said in a statement on Monday.The UFU says firefighters worked up to 20-hour days on their days off during the Hazelwood coal mine fire but that the MFB is unable to account for who was there.However, Mr Bruce said it had taken considerable time and effort to recognise and verify attendance records, given the size and nature of the incident.The summer's fire season involved the largest deployment of firefighters outside the MFB's immediate area of responsibility, he said."Understandably, the MFB's focus at that time was to provide assistance to the community through efficient and effective deployment of resources across the state," he said.The UFU's Peter Marshall said the legal action for firefighters' entitlements would continue despite the MFB's assurances they would be paid this week."They've been saying that every week. Show me the money is the response to that," he said."If in the interim period they pay, that's good. but to date we ain't see the money despite many assurances."Firefighters shouldn't have to wait that long and the MFB should meet their legal requirements."

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'Smart glasses' hope for blind

BRITISH-DESIGNED "smart glasses" that provide a new set of eyes for the visually impaired are being tested in public for the first time.

THE devices, which use a pair of video cameras to enhance residual vision, have the potential to transform the lives of thousands of registered blind people in the UK.

The glasses are being trialled by 30 visually impaired volunteers at testing venues in Oxford and Cambridge.Dr Stephen Hicks, of the Nuffield Department of Clinical Neurosciences at Oxford University, who led development of the glasses, said: "The idea of the smart glasses is to give people with poor vision an aid that boosts their awareness of what's around them - allowing greater freedom, independence and confidence to get about, and a much improved quality of life."We eventually want to have a product that will look like a regular pair of glasses and cost no more than a few hundred pounds - about the same as a smart phone."The device consists of a pair of video cameras mounted in a headset, a pocket-sized computer processor, and software that projects images of close-by objects onto displays in the see-through eye pieces.The software interprets nearby surroundings to make important objects such as kerbs, tables, chairs or groups of people stand out more clearly.In some cases, details such as facial features can become easier to see.Of the more than 300,000 severely sight impaired people in the UK, it is believed about a third could benefit from the technology.Twenty volunteers with a range of eye conditions and levels of vision took part in preliminary tests of an earlier version of the glasses conducted last year by the Oxford team.The new trials are being conducted with support from the Royal National Institute of Blind People (RNIB).

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Carbon tax revisited in final Senate week

IT may by the current Senate's final hurrah, as its sits for one last week before the new senators take their place.

BUT even before it begins what amounts to a farewell lap, attention is focused squarely on the Senate that will replace it.

The Abbott government will on Monday reintroduce its carbon tax repeal laws into the parliament, in readiness for the new, more conservative upper house that take effect on July 7.The legislation has already been knocked back once by Labor and Greens in the Senate, but the host of conservative crossbenchers are expected to pass the legislation."This week the government will bring the carbon tax repeal bills back to Parliament to get rid of this dodgy tax once and for all," Environment Minister Greg Hunt says.While signature policies such as the carbon tax are expected to be waved through by the likes of the Palmer United Party, others such as the GP co-payment face continued resistance.Assistant infrastructure minister Jamie Briggs is confident the new senators can be talked into supporting the co-payment and reform of universities fees - two changes opposed by the PUP."I'm not at all sure that the positions some of the new senators have outlined will necessarily be their position in a month's time," Mr Briggs told Sky News on Sunday."When they're in Canberra and they've had the discussions with the relevant ministers ... I'm very confident people will understand this is the right direction."Environmentalists also had their minds turned to July 7, with the Climate Institute bringing two life-size dinosaur replicas to Parliament House in a last-ditch attempt to save the carbon tax."There are dinosaurs in politics and business who want to hold back progress," chief executive John Connor told reporters."This is an appeal to all parliamentarians, particularly the new senators, not to be rushed into a vote literally when they haven't even got their feet under their desks in parliament."

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Political blame game over childcare costs

Childcare costs have rocketed 150 per cent in the past decade, a report shows. Source: AAP

WORKING mothers are losing 60 cents of each dollar they earn to rising childcare costs but Australia's politicians haven't found a way to ease the situation for now.

INSTEAD they're blaming each other for the worsening crisis in childcare affordability.

Childcare costs have skyrocketed 150 per cent in the past decade, with only electricity and tobacco prices rising at a faster rate, a new report claims.Parents returning to full-time work after having a child can now expect to lose up to 60 per cent of their gross income to childcare fees, loss of benefits and higher income tax rates.Mums from low income families who return to full-time work may take home as little as $4.55 an hour, the research from financial services firm AMP and the National Centre for Social and Economic Modelling found.Assistant education minister Sussan Ley regularly meets women juggling childcare with returning to work."There is crisis and struggle and desperation when you talk to mums who just don't know what to do with the work-family balance," she told reporters in Melbourne."It's not fair for families to have to live within a system that is as unsustainable as the one that Labor has left us with."The Productivity Commission is due to deliver its initial report on childcare to the government next month and the final version in October.Ms Ley expects the government will have some solutions for parents in early 2015.But the opposition says the government can do one thing to help right now: abandon plans to freeze childcare payments."They cannot justify standing up and attacking low and middle income families time and time again and this report shows that Australia can't afford it," opposition childcare spokeswoman Kate Ellis said.Labor was worried many women wouldn't return to the workforce after having children because of the difficulty of finding and paying for childcare.The AMP-NATSEM report said 630,000 Australian families pay for "long day" childcare, which can cost up to $170 a day per child.The national average childcare fee has risen 150 per cent since 2004. Childcare generally costs more in cities compared to regional areas and more in wealthier suburbs than less affluent areas.Fees have risen faster than petrol, education and healthcare costs.While the number of children in childcare has risen steadily over the past decade, about 60 per cent of children from working families are still cared for by grandparents, relatives or friends.

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GM could face another fine

AN old email from a General Motors employee warning of a "serious safety problem" could help trigger another government fine against the automaker.

THE email, dated August 30, 2005, surfaced Wednesday during a House subcommittee hearing on GM's delayed recall of 2.6 million small cars with ignition switch problem. This email outlined a similar issue with a larger car.

Employee Laura Andres wrote that she was driving a 2006 Chevrolet Impala home from work when she hit a bump and the engine stalled on a busy road near Detroit. The car behind her had to swerve to avoid a crash. A GM mechanic told her the cause was likely a faulty ignition switch."I think this is a serious safety problem ... I'm thinking big recall," Andres wrote in an email to 11 GM colleagues.Yet it wasn't until Monday that GM recalled the Impalas, Buick LaCrosses and other models with the same switch, almost nine years after Andres' email. Safety regulators received dozens of similar complaints about the cars during that time.GM said that excess weight on a keychain could cause the ignition switch to move out of the "run" position if the car is jarred, like when it hits a pothole. The engine stalls, and the drivers loses power steering and power brakes.Under federal law, automakers must notify the National Highway Traffic Safety Administration within five business days of determining a safety defect exists. A maximum $35 million fine is possible if the agency finds an automaker took too long to report a problem.GM paid a $35 million fine last month for its 11-year delay in reporting defective ignition switches in the Chevrolet Cobalt and other small cars.Multiple fines are not without precedent. From 2010 through 2012, NHTSA fined Toyota Motor Corp. four times for a total of $66 million due to safety-related violations.GM wouldn't comment Thursday on the possibility of another fine. NHTSA also wouldn't comment on the Impala case, but said it reviews all recalls to make sure they comply with the notification law and it takes "appropriate action" when it finds problems.Andres's e-mail alone isn't enough to trigger the five-day rule, because it only suggests the ignitions are unsafe. But it's proof that some GM employees knew about a potential problem for almost a decade. GM has not yet submitted a required timeline to NHTSA that will say when it officially determined the Impala switches were defective.Andres, who still works for GM in design and engineering, could not be reached for comment. But in her 2005 email, she urged engineers to build a "stronger" switch.Andres' warning was brushed off by GM engineer Ray DeGiorgio, who replied that he had recently driven a 2006 Impala and "did not experience this condition." He also noted that the Impala had "a completely different column/ignition switch" than the one that was causing problems in GM's small cars.DeGiorgio is a central figure in the small-car recall saga. GM says he approved using the switches even though they failed to meet company specifications, and then took actions that hid the defect for years.Andres's email wasn't the only indication of problems. NHTSA's Web site lists more than 100 complaints about stalling for 2006-2009 Impalas alone. Those are complaints GM would have had access to.In one 2012 complaint, an Impala stalled in the middle of a large intersection. The owner took it to a dealer four times but couldn't get it repaired."I'm fearful I will be the one causing a fatal pile-up," the driver wrote.

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Man charged over NSW south coast death

FURTHER charges could be laid against a man accused of assaulting another man who was found dead in a NSW south coast home a day after he was attacked.

THE 41-year-old's body was on Thursday found in a Moruya unit and "officers were told the deceased man had been assaulted at the location the previous day," police said.

The man accused of assaulting the dead man and his 60-year-old male housemate was on Friday arrested and charged with two counts of assault occasioning actual bodily harm.But more serious charges could be laid against him."We're waiting on the results of the post mortem," a police spokeswoman told AAP.Police wouldn't say if the death was suspicious, whether the men were known to officers or if they were related.The accused was denied bail in Batemans Bay Local Court on Saturday and is due to reappear on Monday.Forensic officers are continuing their investigation and a report is being prepared for the coroner.

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Man bashed at Sydney motel

A man has serious head injuries after being assaulted at a motel west of Sydney. Source: AAP

A MAN has serious head injuries after being assaulted at a NSW motel.

POLICE found the 28-year-old man at a motel reception at Warwick Farm, west of Sydney, on Friday night.

The man had serious head and limb injuries and was taken to hospital.Police say the man was assaulted but officers have not yet been able to speak to him.A crime scene has been established in one of the motel rooms.

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Westfield gets restructure gets go-ahead

Westfield's shareholders are set to approve a $70 billion restructure of the company. Source: AAP

WESTFIELD will leave its Australian shopping centres behind in search of growth opportunities overseas after winning a tough shareholder battle over its $70 billion restructure.

THE restructure got the green light on Friday after shareholders in Westfield Retail Trust, which owns half of the shopping centre giant's Australian and New Zealand assets voted in favour of the controversial plan.

Westfield Group will be split in two from June 25, pending final approval from the NSW Supreme Court, with the new Westfield Corporation taking on the company's international business and the Australian and New Zealand shopping centres transferred to a new company called Scentre.Both companies will be chaired by Westfield founder Frank Lowy and the Lowy family will maintain holdings in both businesses.But Australian shoppers won't notice any difference, with the Westfield brand to be maintained under Scentre Group.The move gives Westfield greater freedom to focus solely on growth opportunities overseas, without the distraction of its Australian shopping centre business, which has little room left to expand."The strategy of Westfield Corporation is to own, develop and operate iconic shopping centres in some of the world's great cities," co-chief executive Steven Lowy told reporters on Friday.That includes the massive Westfield World Trade Centre development, a planned development in Milan which the company is billing as "the best shopping centre in Europe" and major centres in the UK.But the move almost didn't go ahead.Westfield Group shareholders overwhelmingly backed the move at a meeting last month, but WRT investors looked set to vote down the proposal, with only 74.1 per cent of proxy votes cast in favour of the restructure.On Friday, the total vote was 76 per cent in favour.A significant minority of shareholders in WRT, which was itself spun off from Westfield in 2010, opposed the move on the grounds it would create a higher risk business with more debt than the passive property trust they bought into.Australian Shareholders Association spokesman Stephen Mayne said Westfield had run a well orchestrated campaign to win over institutional investors in the past few weeks."Ultimately they ran a very successful lobbying campaign against those institutions that voted against it or didn't vote," he told AAP."The question is, who flipped?"Steven Lowy downplayed concerns about debt levels, noting credit ratings agencies S&P and Moody's had already given Scentre A ratings."We felt that debate was well overplayed," he said on Friday.Fellow co-chief executive Peter Lowy said Westfield Corp would maintain its listing on the Australian stock exchange but is looking at the possibility of a dual listing overseas.

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Vic building workers face drug tests

BUILDING workers on Victorian government projects will face random drug and alcohol testing from July 1.

VICTORIAN Finance Minister Robert Clark said requiring all building companies that tender for taxpayer-funded projects worth $10 million or more to test workers for drug and alcohol use among measures he said would cut substance abuse, intoxication and drug dealing on building sites.

Head contractors must perform a minimum number of random tests on workers each month and identify what methods they will use, Mr Clark said on Friday.Contractors will determine the level of intoxication they deem unsafe and how workers will be sanctioned if drugs or alcohol are detected in their systems, he said.Tenderers will have to list site security measures, which may include CCTV, a swipe card access system and photographic or biometric security systems in a bid to stamp out criminal activity."We believe this will save taxpayers' money and it will help ensure law-abiding workplaces," Mr Clark said."We are introducing these guidelines to ensure that every contractor that tenders for Victorian government construction projects needs to commit to have processes in place to guard against drug and alcohol abuse in their workplaces and also to ensure site security."When the guidelines were first announced, Construction Forestry Mining and Energy Union (CFMEU) Victorian secretary John Setka said the guidelines would unfairly single out construction workers."There is no epidemic of drug taking on construction sites," he said.

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Troops off to Iraq to protect Aussie staff

The Australian government is continuing to monitor the situation in Iraq. Source: AAP

AUSTRALIA has sent soldiers to protect embassy staff in Baghdad as Prime Minister Tony Abbott warns that nobody should underestimate the threat posed by terrorists bearing down on the Iraqi capital.

DEFENCE on Friday confirmed a small unit of Australian Defence Force personnel had been sent to Baghdad to bolster security at the embassy, where a skeleton staff of diplomats remains.

The situation in Iraq has deteriorated significantly since jihadists from the Islamic State of Iraq and the Levant (ISIL) routed government forces from two major cities a week ago.Up to 100 Australians are believed to have left the country to fight alongside jihadists in Iraq and Syria - including with ISIL - and some have been accused of committing atrocities.In his strongest warning yet, Mr Abbott vowed that "murderous potential terrorists" trying to return to Australia would be locked up to protect the community."These people should have no place in our country, and we will do our best to keep them out," he told reporters in Sydney on Friday."If they can't be kept out, they will be taken into detention because we are not going to allow people who are an obvious threat to our safety and security to roam loose in Australia."Australia has not received calls for assistance from the United States or other parties, but Mr Abbott said if any such request was made, it would be taken seriously.For now the safety of Australia's remaining diplomatic personnel in Baghdad remained a top priority, as ISIL - also known as ISIS - militants continue their push south towards the capital.Australia began withdrawing its officials from the strife-torn country this week, leaving an "essential core" of embassy staff in place.The federal government has warned there is little they can do to assist those Australians in Iraq, estimated at possibly more than 2000.The terrorist group stunned the world last week when it seized the major Iraqi cities of Mosul and Tikrit in a lightning offensive, sending government forces and civilians fleeing for safety.Shadow minister for defence Stephen Conroy said Labor supports the decision to send an ADF liaison unit to Baghdad to provide additional security for Australian embassy officials."Given the unstable security situation in Iraq, this is an appropriate course of action to take," he said in a statement.

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$A at the mercy of two central banks

DOVES are meant to symbolise peace, but the Australian dollar is getting caught in a tug of war between two of them.

IN financial jargon, a dove is a central banker who prefers interest rates to stay low.

Record low interest rates in Australia should be helping Reserve Bank governor Glenn Stevens guide the stubbornly high Australian dollar lower to help the local economy.However his aim is being frustrated by interest rates in the US that are even lower, with Federal Reserve boss Janet Yellen signalling they will remain low for a "considerable time".The Aussie fell to a two-week low of 93.22 US cents on Tuesday after minutes of the RBA's June board meeting showed it wants to keep the cash rate at a record low of 2.5 per cent "for some time yet", and included a downbeat assessment on Australia's economic growth prospects.But the dollar bounced back up through 94 US cents early Thursday morning after Dr Yellen wound up the Fed's two-day policy meeting saying she would keep the federal funds rate steady despite a recent spike in inflation."There were some expectations that they would hint that they were concerned about inflation, but they didn't, and they reiterated they are maintaining their dovish stance," Easy Forex currency dealer Tony Darvall said.Mr Darvall said it was unclear if the Aussie dollar will rise to 94.60 US cents, its highest level this year, or fall towards 92 US cents if commodity prices remain under pressure."You'd think that the RBA at the next meeting would continue with the dovish talk," he said."The June minutes were crafted to try and stop the Aussie from rallying and if we get above 95 US cents it will probably be more explicit about the concern."BK Asset Management managing director Kathy Lien said investors were disappointed by Dr Yellen's policy announcement."When pressed for a definition of `considerable time' she refused to provide any details, saying only that there is no formula for what considerable time means," Ms Lien said."In other words, unlike other central banks that have recently expressed their desire to become more active, the Fed remains comfortable with their current course and has no desire to alter the market's expectations."

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House prices tipped to continue to rise

ONE of the country's largest property developers believes house prices will continue to rise for years to come, with the Sydney market set for a "golden decade".

STOCKLAND chief executive Mark Steinert expects nationwide house prices to rise by four to five per cent on average for the foreseeable future, with Sydney leading the charge.

Despite a sharp rise in house prices in the past 12 months, an undersupply of property and improving confidence meant the growth was set to continue, he said."At the moment it is fair to say there is at least three years of undersupply in every major capital city," Mr Steinert said."Because of this demand-supply fundamental, we anticipate at least four to five per cent compound growth in new house prices for the foreseeable future."Mr Steinert said the NSW government's efforts to increase housing supply and infrastructure plans would boost Sydney's new property market."We are particularly bullish on Sydney," he said."I think it's fair to say that we are going to see Sydney and to a certain extent NSW have a golden decade."Mr Steinert's optimism contrasts with warnings from economists and analysts that house prices are likely to flatten or slide over the next few years.Credit Suisse analyst James Ellis has said a collapse in prices was unlikely, but he expects prices to remain flat for several years, which would amount to a decrease in prices in real terms, relative to incomes."Our base case scenario is one of real erosion of house prices," he said.Recent figures from the bureau of statistics suggest the housing market boom is cooling, with no growth in home loan approvals in April.Meanwhile, house prices suffered their biggest monthly fall in five years in May, dropping 3.6 per cent across capital cities, according to research from RP Data.But prices remain substantially higher than a year ago, especially in Sydney, were prices have risen 16.6 per cent in the past 12 months.

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JB Hi-Fi weathers the retail storm

Entertainment retail chain JB Hi-Fi expects its sales will be up by 5.3% for the year. Source: AAP

JB Hi-Fi is proving more resilient to slumping consumer confidence than other retailers.

THE electronics retailer remains on track to lift annual profit by about 10 per cent, despite winding back its sales expectations since the end of March.

Analysts say JB Hi-Fi is performing better than other retailers as it is not exposed to seasonal factors such as unusually warm weather, and due to its expansion into new product areas.The company said on Thursday it expects a 5.3 per cent rise in annual sales for 2013/14, weaker than its previous forecast of six to eight per cent growth.But it is sticking to its previous forecast of a $126-$129 million net profit for the year, a rise of between 8.3 and 10.8 per cent.That is in contrast to several other major retailers, who in recent weeks have warned of a sales slump amid consumer worries about spending cuts announced in May's federal budget.Shares in JB Hi-Fi soared in early trade, but fell back during afternoon trade, and closed 22 cents higher, up 1.2 per cent, at $18.95.CBA retail analyst Andrew McLennan said JB Hi-Fi was performing well during a period of disastrous consumer sentiment, continuing with store expansions and branching out into new categories such as coffee machines and other household appliances."For them to have held to a positive sales growth number in the fourth quarter is actually a good outcome," Mr McLennan said."More recently JB Hi-Fi have expanded into their JB Home category of household electronics products, including whitegoods and small appliances, and that appears to be enhancing their underlying sales growth off a relatively small base."This strategy had differentiated JB Hi-Fi from some of its competitors as CD and DVD sales continued to slide, Mr McLennan said.JB Hi-Fi was also not as exposed to seasonal factors as apparel retailers, who were experiencing difficult sales conditions due to warm weather in the lead-up to winter, he said.Meanwhile, JB Hi-Fi chief executive Terry Smart has confirmed he will retire on June 30.Mr Smart announced his plans to step down in April, and will hand over the reins to chief financial officer Richard Murray.

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Vic Nats upset by Liberal bid for Euroa

THE Liberals' decision to run against the Nationals in the Victorian seat of Euroa is "most unfortunate", state Nationals leader Peter Ryan says.

THE Nationals asked the Liberal Party not to field a candidate in the new seat, created after a redrawing of the Benalla electorate being vacated by retiring Nationals MP Bill Sykes, Mr Ryan said.

"The Liberal Party has apparently chosen to stand, although they have not spoken formally to me about it. We think that is a most unfortunate decision," Mr Ryan told reporters in Ballarat on Wednesday.The deputy premier said the Nationals believe the Liberal move is a breach of their coalition agreement."The very basis and foundation for having a coalition agreement is to ensure we don't see this sort of waste of resources occur," he said."We saw this all happen in the recent federal election in the seat of Mallee and here we go again."The Liberals ran a candidate in Mallee at last year's federal election, which was being vacated by National John Forrest.The Nationals' Andrew Broad won the seat.Stephanie Ryan will run as a Nationals candidate for Euroa at the November 29 state election."We are very confident of being able to win the seat," Mr Ryan said."We have not asked the Liberal Party to stand, indeed we have asked the Liberal Party not to stand."Premier Denis Napthine says decisions about running candidates are up to the party's administrative wing, which is in regular contact with the National Party administration."Peter Ryan and I work well professionally, we're also personally good friends. The coalition is a great working team," he told reporters.Dr Napthine said running Liberal and National candidates in the same seat gives voters a choice, but also maximises the Liberal-National vote."With regard to this seat, I think the National Party has selected a very, very good candidate and I'm sure Stephanie Ryan will do very well."

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Newcrest hit with $1.2m fine by ASIC

ASIC has fined Newcrest Mining $1.2 million for breaching continuous disclosure obligations in 2013. Source: AAP

GOLD miner Newcrest Mining has been fined $1.2 million in Australia's largest ever penalty for selectively providing market sensitive information.

NEWCREST, the nation's largest gold miner, admitted withholding the information from the wider investment market for at least a week in 2013.

In a settlement with the Australian Securities and Investments Commission (ASIC), it admitted to two contraventions of continuous disclosure rules, which dictate companies make available any information than can impact its share price.The Federal Court will now decide whether to approve the settlement.It is more than double the country's previous largest disclosure rules penalty of $500,000, and only the fifth such litigation by ASIC in a decade.The Newcrest penalty relates to selective briefings given by the company's then investor relations manager Spencer Cole to analysts from investment banks, alerting them to large cuts in gold production and capital expenditure.That sparked a suspicious raft of broker downgrades of the stock, and a 15 per cent slump in Newcrest's share price in the three days before the market was informed of production and spending cuts.Newcrest also announced on June 7 more than $6 billion in impairments, partly related to its struggling PNG operations at Lihir.ASIC said Newcrest's selective disclosures had generated confusion, speculation, media attention and a loss of confidence in market integrity and the company's shares.Anyone who traded in Newcrest shares between May 28 and June 7 when analysts were informed and the public was not had been materially prejudiced, it said.ASIC acknowledged Newcrest's budgeting process at the time was difficult, with its cash flow under threat in the wake of gold's most dramatic price fall in 30 years.Commercial law expert Ian Ramsay, from the University of Melbourne law school, described the judgment as rare and significant.While Newcrest has not admitted knowingly or intentionally breaching its corporate obligations, it has still admitted liability, he said."What's got ASIC excited is not just the fact that Newcrest is one of the world's biggest mining companies, it is the seriousness of it," Professor Ramsay told AAP."He (Mr Cole) wasn't off on a frolic, it looks as though what he was doing was run past senior management."Newcrest may now also want to settle a shareholder class action related to its announcement of writedowns and the resulting share price falls.Slater & Gordon lawyers, representing Newcrest shareholders, are reviewing the ASIC settlement.Newcrest chairman Peter Hay said the company regretted the contraventions, and pointed out it had since revised and tightened its governance structure.Newcrest shares were up 20 cents to $10.17 at 1530 AEST.

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Carbon policy pits Aus against US: Garnaut

AUSTRALIA is setting itself against the US and will become a drag on global climate change efforts with the repeal of the carbon tax, prominent economist Ross Garnaut says.

THE former government adviser says China, Europe and the US are gearing up for another big effort to address climate change and by scrapping its detailed and sophisticated carbon laws, Australia is going against this.

"With our existing policies, we're not ahead of any game yet but we're part of the game. We will be doing our fair share," Professor Garnaut said on Wednesday."With the repeal of the carbon laws, and in the absence of anything in their place, then we won't be doing our fair share."We will be a drag on the international system."He said the move was particularly puzzling when the world's two big emitters, China and the US, whose inaction had previously been a problem, were committing themselves to very strong action."We have set ourselves against our ally the United States on a major question of policy in a way that we haven't done since the Ottawa conference in 1931," Prof Garnaut said.The comments came at the release of a report by the Committee for Economic Development of Australia (CEDA) into the economic trouble Australia could face without an appropriate response to climate change.The report says Australia faces the risk of growing repair bills from extreme weather and barriers to major project investment.CEDA chief executive Stephen Martin said policy makers need to recognise climate change is an economic issue, not just an environmental issue."Statistics show that the number of catastrophic weather events is increasing and the economic losses associated with these events are also trending up," Prof Martin said.He said Cyclone Yasi, Black Saturday, the Queensland floods and other weather events have had a direct impact on industry and on most Australians' hip pocket.Professor Martin said the federal government needs to introduce a national risk register that includes strategies to manage risks of extreme weather."Australia is reliant on foreign capital to fund major projects and new developments in international climate change policy are likely to impact international capital flow and investment decision making," Prof Martin said.

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Kiwi gains against weak Aussie dollar

THE New Zealand dollar has climbed against its trans-Tasman counterpart after the Reserve Bank of Australia minutes for its last meeting showed an expectation of slower growth as the country's mining boom winds down.

THE kiwi climbed as high as 92.54 Australian cents shortly after the release of the central bank's minutes and was trading at 92.48 cents at 5pm in Wellington, up from 92.25 at 8am and 92.31 cents at 5pm on Monday.

The kiwi fell to 86.58 US cents at 5pm, from 86.78 cents at 8am and 86.85 cents on Monday."The RBA released its minutes this afternoon. They didn't say much different about the currency, but there were some hints that they were slightly less positive on the economy," said Raiko Shareef, a currency strategist at Bank of New Zealand."The kiwi/Aussie has had a bit of a move, and that's largely driven off the weakness of the Aussie dollar."In contrast, the Reserve Bank of New Zealand is hiking interest rates to curb inflationary pressures, while Thursday's gross domestic product figures are expected to show the economy growing at a 3.1 annual pace in the first quarter."From a global investors perspective New Zealand has pretty good appeal from the interest rate side and also combined with the fact the New Zealand dollar currency volatility is at an all time low," Mr Shareef said.The kiwi slipped to 63.84 euro cents from 64.12 cents on Monday and to 88.26 yen from 88.34.The trade-weighted index fell to 80.70 from 80.85.

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Land Rights Act not an impediment: Peris

Nova Peris has rejected claims the Aboriginal Land Rights Act is holding indigenous people back. Source: AAP

NORTHERN Territory Senator Nova Peris has rejected claims the Aboriginal Land Rights Act is holding indigenous people back.

THE NT Minister for Community Services Bess Price said at a development conference in Darwin on Monday the Act has locked Aboriginal land away.

"It's clear it has now become outdated and a hindrance to moving forward in our communities," she said."I plead with the Prime Minister Tony Abbott and Senator Nigel Scullion (Minister for Indigenous Affairs) to give Aboriginal people their land back. When Aboriginal people are free to trade and deal with their lands, social, business and economic opportunities will flow."But Senator Peris said there were a number of things preventing Aboriginal economic development, such as a lack of infrastructure."For someone in Bess Price's position, when she opens her mouth she does speak for Aboriginal people but what she's saying is totally untrue," she told ABC radio, but admitted the approvals process was too slow.Under the Land Rights Act in the NT, landowners must negotiate with a land council for an Indigenous Land Use Agreement before they can sell or use their land for commercial purposes, and lending institutions prefer longer 99-year leases in order to guarantee funds for people to buy their own homes or launch businesses, which can only be approved by the federal minister.But land councils do not always act in the interests of traditional owners, said Senator Nigel Scullion."Sometimes a land council has a particular agenda and can assist with economic development; other land councils have other agendas and perhaps might not be so helpful because they have some fundamental opposition to independence from particular groups," he told ABC."There's no doubt that the system needs some adjustment but I don't agree with Bess that it's in the actual Land Rights Act. I can't see any circumstance that the (Act) can't assist with; it's supposed to be enabling legislation."Both the Northern Land Council and the Central Land Council have indicated that they don't like 99-year township leases "and they're actively working against the interests of traditional owners in some cases", Senator Scullion said."It's my task to make sure that land councils as commonwealth agencies dance to the beat of the traditional owners' drum, that's their role."They should be facilitators, not necessarily having particular fundamentalist views themselves."Indigenous people around the world would love to have a piece of legislation like the Land Rights Act to protect them, said Northern Land Council CEO Joe Morrison."The Land Rights Act is a very unique piece of legislation ... I know indigenous people around the world would love to have something like (it) that gives them communal property rights," he told AAP."We need to maintain that position and work on the strengths of the Land Rights Act to empower people."He said Ms Price and her government have been preventing Aboriginal people from participating in economic advancement by not setting up a strategic water reserve for indigenous people to access water allocations from an aquifer to irrigate and develop their lands."Because there's a separation of land and water titles, just having land doesn't mean you can develop it, you need water to be able to develop agricultural enterprises and the NT government's position has been to effectively shut out Aboriginal people from that process," Mr Morrison said.

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Shell to sell most of Woodside stake

Woodside, Australia's largest oil and gas company, has placed its shares in a trading halt. Source: AAP

AUSTRALIA'S largest oil and gas company Woodside Petroleum will spend nearly $3 billion to get Royal Dutch Shell off its share register.

WOODSIDE'S largest shareholder, petroleum giant Shell announced plans on Tuesday to sell 19 per cent of its $6.3 billion stake.

The desire to split is mutual, with Woodside keen to remove the overhang that has capped its share price for years and Shell in the middle of a $15 billion global asset sale, including Australian refineries and service stations.Former treasurer Peter Costello blocked Shell's attempted $10 billion takeover of Woodside in 2001 on national interest grounds - one of only two such rejections in Australian history.Woodside will buy back 78.3 million of its shares - or 9.5 per cent of the company - from Shell for $US2.68 billion ($A2.90 billion) or $A36.49 a share, if shareholders back the deal.Another 78.3 million shares will be sold to institutional investors at $A41.35 per share.Shell will be left with a 4.5 per cent stake.Its chief executive Ben van Beurden said it would net $US5 billion ($A5.41 billion) from the deal.Woodside, which operates six of Australia's seven LNG processing plants predominantly in WA, described it as a new chapter.It was a natural transition in the evolution of the company, Woodside chief executive Peter Coleman told an investor briefing."It is the first time in many, many years we have not had a substantial shareholder on the register," he said."We now look very much like most of our peers in the marketplace."I think that it is a really good thing, the market will be able to fully value us, we will get full value on our ASX listing with respect to our weighting on the index as well."Shell had increasingly flagged its desire to sell over the years, reducing the incentive for other institutional investors to buy in until that happened, Royal Bank of Canada analyst Andrew Williams said."Who knows if the stock may have been at current share price levels earlier if that overhang had been removed," he told AAP.Shell reduced its stake by 10 per cent for $A42.23 a share in 2010, well above Tuesday's sale prices.Woodside's shares are in a halt and last traded at $42.85.Woodside will cancel the 9.5 stake it is buying back, delivering real value to shareholders through enhanced earnings per share, cash flow and dividends, Mr Coleman said.It can afford to do that, he said, through existing cash and debt, low gearing and last month's collapse of its planned $US2.6 billion ($A2.81 billion) share in the Israeli Leviathan gas project, freeing up capital.Woodside could now be vulnerable to a takeover, although Mr Coleman said that was not part of the company's plans.Mr Williams said the market remained concerned about Woodside's growth prospects, given the uncertainty around what new proposed projects would emerge to replace their North West Shelf and Pluto projects that would eventually decline.

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Iraq tensions weigh on kiwi dollar

THE New Zealand dollar may fall this week as growing Middle East tensions weigh on investor confidence.

THE kiwi increased to 86.84 US cents at 5pm in Wellington from 86.68 at 8am and 86.66 cents at 5pm in Wellington on Friday. The trade-weighted index edged up to 80.85 from 80.68 last week.

Investors have sought relatively safe assets, lifting the price of gold to a three-week high, as increasing violence in Iraq has markets nervous OPEC's second biggest producer of crude oil may plunge deeper into conflict."The kiwi will remain elevated, but I think the risk-off trade will be more of a problem in the market" as investors are spooked by the rising Middle East tensions, said Martin Rudings, senior advisor at OMF."The market is already long on New Zealand dollars so it'll be like a fire in a cinema, the first one out the door or a rush for the exit, so I am a wee bit wary, and I certainly wouldn't be buying kiwi dollars up at these levels with what's going on."Government data on Thursday is expected to show the economy grew 1.2 per cent in the first quarter of the year, from a 0.9 per cent pace in the fourth quarter of 2013, according to economists polled by Reuters."We're expecting a good number from GDP, even if it is slightly less than what's expected, it is still probably a pretty strong number compared to most other countries around the world," said Mr Rudings.The kiwi rose to 92.31 Australian cents at 5pm in Wellington from 91.99 cents on Friday, was almost unchanged at 88.32 yen from 88.31 yen and advanced to 64.09 euro cents from 63.92 cents.

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34 die in militant attack on Kenya town

SOMALI militants wielding automatic weapons have attacked a small Kenyan coastal town, killing at least 34 people as they sprayed bullets into the street, assaulted the police station and set two hotels on fire, officials say.

KENYA'S top police commander, David Kimaiyo, also said that the gunmen attacked a bank. The assault came late Sunday night as town residents were watching World Cup matches on TV. Authorities blamed al-Shabab, Somalia's al-Qaeda-linked terror group.

The attack occurred in the town of Mpeketoni about 20km southwest of the tourist centre of Lamu. Any tourism in Mpeketoni is mostly local, with few foreigners visiting the region. The town is about 100km from the Somali border.Kenya has experienced a wave of gunfire and explosive attacks in recent months. The US, UK, France, Australia, and Canada have all recently upgraded their terror threat warnings for the country. US Marines behind sandbag bunkers are now stationed on the roof of the US Embassy in Nairobi.The Red Cross, which said it had personnel on the ground, put the death toll at 34. Kimaiyo had earlier said it was 27 but that it could rise.The Interior Ministry said that at about 8pm on Sunday two minivans entered the town. Militants disembarked and began shooting. Kenya's National Disaster Operations Centre said military surveillance planes were launched shortly afterward.The nearby town of Lamu is a UNESCO World Heritage Site and is the country's oldest continually inhabited town. The region saw a spate of kidnappings of foreign tourists in 2011 that Kenya said was part of its motivation for attacking Somalia. Since those attacks and subsequent terror warnings tourism has dropped off sharply around Lamu.Al-Shabab has vowed to carry out terror attacks to avenge the Kenyan military presence in Somali. At least 67 people were killed in September when four al-Shabab gunmen attacked an upscale mall in the Kenyan capital, Nairobi. Kenya sent troops to Somalia in October 2011.

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NZ stocks edge higher despite tensions

NEW Zealand shares have edged higher as growing violence in Iraq kept markets nervous and as local investors mulled a spate of new initial public offerings.

THE NZX 50 Index rose 8.292 points, or 0.2 per cent, to 5178.8 on Monday.

Within the index, 28 shares rose, 13 fell and nine were unchanged. Turnover was a smaller-than-usual $94.9 million."Until things are sorted out in Iraq, and it's not going to be a quick fix, it will remain a concern. It will affect oil prices which affects every economy in the world so no one is isolated from the Iraqi situation," said Grant Williamson, director at Hamilton Hindin Greene."Unfortunately investors are getting very much used to these sort of conflicts over in the Middle East and even Eastern Europe."Xero climbed 0.6 per cent to $29.31 after the cloud-based accounting software firm said it hit annualised sales of $100m for the first time in May.Fletcher Building dropped 0.5 per cent to $8.93 after it said it faces an $11m charge on the sale of its Australian-focused construction materials distribution business Hudson Building Supplies for $20m to HTH Stores.Stock market operator NZX advanced 0.8 per cent to $1.30 after more companies announced plans to list.Hirepool said it plans to raise as much as $262m in an initial public offering and list on the Australian and New Zealand stock exchanges next month with a market capitalisation of as much as $340m.Pushpay, the mobile payment app developer, said it will raise $9m in a private share issue before it seeks a compliance listing on the New Zealand Alternative Index in July.Two other tech companies Serko and Gentrack plan to list later this month."With the spate of IPOs that are on the table at the moment, we may see one or two stocks weaken a little bit as investors look to liquidate funds to pay for the IPOs," Mr Williamson said.Pacific Edge was the best performer on the day, climbing 3.5 per cent to 88 cents.

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Afghan voters defy Taliban threat

Afghans have braved threats of violence and searing heat to vote in the presidential elections. Source: AAP

THE United States praised millions of Afghan voters who defied Taliban threats and attacks to vote in a presidential run-off election securing the country's first democratic transfer of power, with counting set to begin.

WITH turnout higher than expected after a largely peaceful day of voting, Washington hailed the polls as a "significant step" for the country's democracy, commending "the voters, electoral bodies and security forces for their commitment to the democratic process".

"These elections are a significant step forward on Afghanistan's democratic path, and the courage and resolve of the Afghan people to make their voices heard is a testament to the importance of these elections to securing Afghanistan's future," the White House said.Ahead of the ballot, which decides the next president of the country ahead of the withdrawal of NATO troops later this year, the Taliban had threatened to kill voters and officials, saying the election was an American plot "to impose their stooges".Polling day saw no major attacks in cities, but there were at least 150 minor attacks - including a Taliban rocket that hit a house near a polling station, killing five members of the same family.Eleven voters in the western province of Herat had their fingers - which were dipped in ink to register their ballot - cut off by insurgents, Deputy Interior Minister Ayoub Salangi said on his Twitter account.The polls result, due out next month, will confirm whether former foreign minister Abdullah Abdullah or ex-World Bank economist Ashraf Ghani will lead Afghanistan into a new era of declining international military and civilian assistance.The two candidates came top of an eight-man field in the April first-round election, triggering the run-off as neither reached the 50 per cent threshold needed for outright victory.Abdullah secured 45 per cent of the vote with Ghani on 31.6 per cent.Counting the ballot will take weeks. The preliminary result is due on July 2 and a final result on July 22.The United Nations also praised the elections, congratulating the "courageous" Afghans who set out to cast their ballots in the face of Taliban threats."With the same determination, resilience and courage the world saw in the first round of elections, the people of Afghanistan today once again decided to take their destiny in their own hands and demonstrate their desire for a peaceful, prosperous, and united Afghanistan," the UN Secretary-General's Special Representative for Afghanistan, Jan Kubis, said.While high turnout may lend legitimacy to the winner if the gap between the two candidates is clear, a close count could mean a contested outcome.Both candidates swiftly alleged fraud after the closure of the polls Saturday."We know there has been fraud, you have seen it, we have seen it," Abdullah said.Ghani called for a full investigation into vote-rigging, saying "unfortunately there were cases of security forces involved in fraud, we have the evidence".A smooth handover in Afghanistan's first democratic transfer of power would be a major achievement for the 13-year US-led effort to establish a functioning state after the depredations of the Taliban era.President Hamid Karzai, who has ruled Afghanistan since 2001 and was re-elected in a 2009 vote marred by ballot-box stuffing, is constitutionally barred from a third term in office.

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Qld chief justice critics told to shut up

Queensland science minister has lashed out at critics of Tim Carmody's appointment to chief justice. Source: AAP

A QUEENSLAND government minister has lashed out at critics of Chief Magistrate Tim Carmody's appointment to chief justice, saying they should "shut up".

SCIENCE Minister Ian Walker, a former lawyer, says the "war of words" over Mr Carmody's promotion to chief justice of Queensland has got to stop.

"People have got to put a sock in it, they've got to shut up, and they've got to let Justice Carmody get on with the job," he told reporters in Brisbane on Sunday."He deserves a fair go at the job, the debate should stop and Justice Carmody should be allowed to get on with the job that he's been appointed to do."Mr Walker's comments follow calls for Attorney-General Jarrod Bleijie to step down over the appointment, which has caused great unrest in legal circles.Bar Association of Queensland president Peter Davis quit on Friday saying private discussions with Mr Bleijie in which he didn't recommend Mr Carmody for the job were leaked to others, including Mr Carmody.Australian Bar Association president Mark Livesey said it was accepted practice that consultation before any appointment is kept confidential."The Attorney-General of Queensland must consider whether the breakdown in trust can be repaired," Mr Livesey told The Sunday Mail."If confidentiality in the judicial appointment process cannot be assured he must reconsider whether he can continue in his position."State Opposition leader Annastacia Palaszczuk said Mr Bleijie couldn't be trusted and wasn't fit to hold office.Mr Carmody's appointment has been criticised by senior Queensland legal figures who question his experience and say he's too close to the government.It's been revealed that days after Mr Carmody was appointed chief magistrate in September 2013, he and Mr Bleijie had a private dinner at an upmarket Brisbane restaurant.The attorney-general has described the meeting as a social catch-up.

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Firies cancer law not ruled out: Vic govt

Volunteer firefighters rally in Melbourne for access to compensation for cancer contracted at work. Source: AAP

THE Victorian government says it hasn't ruled out changing the way firefighters access cancer compensation as hundreds rallied in Melbourne to try to break down barriers to claims.

THE government says it simplified cancer claims for firefighters and encouraged both career and volunteer firefighters to lodge a claim if they believe they had contracted cancer as a result of their duties.

"The Victorian government is not ruling out presumptive legislation and will continue to consider new medical and scientific evidence as it becomes available," a government spokesperson said.Volunteer Fire Brigades president Bill Watson said firefighters wanted a law that lists the 12 typical "firefighter" cancers and presumes them to be work-related, providing the firefighter has enough years of service behind him or her and relevant risk exposure.Mr Watson said there is plenty of evidence firefighters are more likely to suffer certain cancers, but it can be difficult to prove which fire or chemical incident caused their illness."It's not like a broken bone where you know exactly when and where it happened," Mr Watson said."The burning car or house fire you attended today may cause a cancer that doesn't show up for decades, which makes it nearly impossible to prove it was work related."The federal government introduced presumptive legislation in 2011.Tasmania, Western Australia and South Australia also have laws that recognise the link between firefighting and cancer.Mr Watson said any legislation would have to include eligibility guidelines."We're not after a free ride," he said."We just want to make sure they're looked after if they get sick."The Victorian government has been under pressure to make changes to the way compensation is accessed after a 2012 report found firefighters who trained at the CFA Fiskville site had been exposed to dangerous chemicals going as far back as the 1970s.Last year they introduced a review panel to assist both volunteer and career firefighters seeking compensation for cancer caused by their work.Opposition leader Daniel Andrews said Labor would introduce the legislation if elected in November."I have committed to the introduction of presumptive rights," Mr Andrews said.

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Palmer may be 'saviour' like Hanson: Truss

NATIONALS leader Warren Truss reckons Clive Palmer could go the way of other political "saviours" such as Pauline Hanson.

HE said those who voted for him in protest were ignoring their obligations to democracy and putting their country at risk.

Mr Truss, acting prime minister while Tony Abbott is overseas, said the coalition took its responsibilities seriously and would get on with the job of delivering what was important for Australia.He said other parties could worry about themselves.Asked if Mr Palmer's Palmer United Party was just a "flash in the pan", he said there had always been independent parties."We have had plenty of saviours in the past, like Pauline Hanson and Bob Katter. They all made a little bit of an impact for a while," he told reporters at the NSW Nationals conference in Queanbeyan.Mr Palmer was the big winner at the 2013 federal election, gaining his own seat and three Senate spots.Pauline Hanson roared onto the Australian political landscape in 1996 but was only in federal parliament for a single term.Despite big predictions, the vote for the Katter's Australian Party of longtime Queensland MP Bob Katter was disappointing at the last election, and Mr Katter's personal vote slumped.Mr Truss said there was always a protest vote."Sometimes these people will gain support from that element," he said."Those who throw away their vote in some kind of protest are in fact ignoring their obligations to their democracy but also putting their country at risk."

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Two bodies found in west Sydney home

THE body of a man and a woman have been found in a home west of Sydney.

POLICE were called to the Leonay home, near Penrith, after concerns were raised.

About 11am on Saturday police discovered the bodies.It is believed the pair are in their 60s.Police say they are investigating the deaths but are not looking for an offender.

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Athlete from Fiji killed in US shooting

A RUNNER from Fiji has been killed in a gang shooting in northern California just weeks before he was set to attend the University of Louisiana, friends and authorities say.

ROY Ravana Jr and another man, Kevin Ohta, were shot on Monday in Sacramento County by two juveniles who opened fire with two handguns and a rifle on behalf of the Norteno street gang, prosecutors said.

The 21-year-old Ohta was expected to survive, the Sacramento Bee reported.The suspects, 17-year-old Elias Guevara and 16-year-old Rozco Gutierrez, have been charged as adults with murder and attempted murder. They were arraigned on Wednesday but did not enter pleas, Shelly Orio, a spokeswoman for the Sacramento County District Attorney's Office said.Orio said they were appointed counsel, but she did not have the lawyers' names.The exact circumstances of the shooting were unclear. Sheriff's Sergeant Lisa Bowman told the Bee this week it was not clear whether the victims fired any shots or whether they had gang affiliations.Friends and family of Ravana say they were not aware of his involvement in any criminal behaviour.Fiji's prime minister, Voreqe Bainimarama, called Ravana an innocent bystander and said he was a great athlete and wonderful role model."Many people dream of being given an opportunity to pursue success overseas," the prime minister said in a statement. "Roy was living that dream when he died. And many young Fijians, even those who didn't know him personally, will feel a sense of shock and loss at his passing."Ravana, 20, represented Fiji in the heats of the 60-metre race at the 2012 International Association of Athletics Federations (IAAF) World Indoor Championships in Istanbul and later in the same year in the 400-metre race at the IAAF World Junior Championships in Barcelona, Spain, the association said in a statement. He was also a 400-metre hurdler.He went to the US two years ago and spent a year at Iowa Central Community College, according to the Bee.Ravana had come to Sacramento, where he has extended family, to await final word on his admission to the University of Louisiana, his friend, Ilene Lasaisamoa, 21, said.She said a confirmation letter came about a month ago, and Ravana was planning to start school in the autumn."We considered him family," she told the Bee.

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PM to visit US national war cemetery

PM Tony Abbott is to visit the US National War Cemetery as his government considers its own version. Source: AAP

PRIME Minister Tony Abbott will visit the Arlington National Cemetery in Washington as his government considers creating a national war cemetery in Canberra to commemorate the Anzac centenary in 2015.

MR Abbott will lay a wreath on Friday at the Tomb of the Unknown Soldier and view the changing of the guards at the final resting place of more than 400,000 active-duty service members, veterans and their families.

He raised the idea of creating a similar cemetery in Australia in 2013 at Legacy's national conference in Brisbane, describing it as "Australians' Arlington".The concept would involve interring significant ex-soldiers.The prime minister, who will host the G20 summit in November, will also on Friday discuss financial and economic issues with US Treasury Secretary Jacob Lew and Federal Reserve chairwoman Janet Yellen.Mr Abbott will receive a military welcome when he visits the Pentagon for talks with Defence Secretary Chuck Hagel and the Chairman of the Joint Chiefs of Staff, General Martin Dempsey.He will then head to Houston, where he will deliver a speech to the Asia Society.Liquefied natural gas is also likely to be discussed during Mr Abbott's visit, with the biggest project occupying the minds of LNG industry figures being the Panama Canal expansion.It will allow massive Post-Panamax ships to take American LNG to the booming markets of Asia to compete against the Australian product.

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Oil firm should fund Indon study: lawyers

AN independent investigation into potential damage in Indonesia from the Montara oil spill is long overdue, and should be funded by the company responsible, the Australian Lawyers Alliance (ALA) says.

THE Indonesian government this week gave its support to a West Timor-based advocacy group to negotiate with the Australian government and Thai company PTTEP for a study into a string of complaints in Timor Sea communities.

PTTEP Australasia says it has always cooperated with the Indonesian government and will continue to do so.An ALA delegation last year travelled to West Timor where they met people who witnessed oil and dispersant in their seas following the 2009 disaster.Spokeswoman Emily Mitchell says that in some communities annual income from the fishing and seaweed industries is less than one per cent of what it was before the spill.Families dependant on the sea are destitute and some people are suffering from health complaints that emerged after the spill.The ALA says the evidence is strong enough to require a full and transparent study.Following the Montara Commission of Inquiry, there has been no effort made to follow the oil," Ms Mitchell said."Now is the time for the oil company responsible to fund an appropriate study."How much oil flowed into the sea over the 10-week emergency, and how much entered Indonesian waters, is debated.PTTEP Australasia says it was 4.5 million litres and points to research that found 98 per cent of Montara oil stayed in Australian waters.Other estimates put the quantity of oil as high as 20 million litres, and the Montara Commission of Inquiry found that oil entered Indonesia and East Timor waters to a "significant degree".Indonesia's transport minister and leaders of an East Timor community are behind the new push for research led by the West Timor Care Foundation, which hopes to meet with the Australian government soon.

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Sydney backpacker stabber jailed

A MAN who can't explain why he "went crazy" and stabbed three backpackers with a piece of glass in Sydney has been sentenced to at least nine years in jail.

TIMOTHY Kelly, 37, viciously attacked two 19-year-old German men and a 24-year-old Irish woman outside a hostel in the city's CBD early on the morning of October 3 last year.

He was handed a maximum sentence of 12 years on Friday after pleading guilty to six charges, including two counts of wounding a person with intent to cause grievous bodily harm.Downing Centre District Court heard Kelly had been staying at the Cosy Private Hotel on Pitt Street in the months following his May release from 8-months in prison.One night he woke about 2am, smashed a window in his room and filled a sock with the broken glass.He then went outside to where the trio of backpackers were sitting on the front steps of next door's Westend Backpackers hostel.The then 36-year-old approached and stabbed German, Christoph Leibrecht, in his left forearm and tried to pierce his right thigh through his jeans.Kelly then grabbed his companion Lukas Kofink from behind and jabbed him in the neck five times, just missing his carotid artery and causing substantial blood loss.Irish woman Aifric Butler-Rees was slashed through her upper lip, cutting it in half.The frenzied assault only stopped after a quick-thinking Thai backpacker stepped in.The 29-year-old leapt to the group's defence receiving a cut to his arm and torso in the process but prompting the glass-wielding Kelly to chase four or five other people down Pitt Street.He was eventually detained by a security guard at a nearby pub until police arrived.Kelly, who represented himself, told the court he did not contest any of the charges but could not explain his behaviour."It is just crazy you know, absolutely crazy," he told Judge Reginald Blanch.Kelly said he had been addicted to heroin and morphine for about a decade but declined Judge Blanch's offer for legal representation so he could get psychiatric and psychological assessments."He was released as a lost soul into the community without any support," Judge Blanch said.Kelly will be eligible for parole in October 2022.

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At least 15,000 at Vic budget protest

Thousands of people have marched through Melbourne in protest against tough federal budget cuts. Source: AAP

AT least 15,000 people brought central Melbourne to a standstill, demanding an end to the federal government's budget cuts.

Construction workers and unionists rallied outside Trades Hall in Carlton before leading a "Bust the Budget" march through the city to parliament house on Thursday.

Trades Hall Council estimates put the crowd at almost 40,000 but police, who turned out in large numbers, say the crowd was closer to 15,000. There were no arrests.

ACTU secretary Dave Oliver said the budget was cruel and an attack on ordinary people and the Australian way of life.

"Generations of Australians have fought hard to establish working conditions and dignity at work. They have struggled hard to build a better life and a decent society, to educate our children and to care for our sick and to look after our elderly," he said.

"But now we have a prime minister that is keen to keep the billionaires happy, and he is willing to pull all that down regardless of the cost to workers and their families.

"Why should the people who can least afford it be forced to take the hit?"

Rally organisers said the column of marchers who arrived outside parliament house stretched back to Bourke Street, almost one kilometre away.

Construction, Forestry, Mining and Energy Union national secretary Michael O'Connor said the federal government was attacking jobs.

"We have never before seen a government try to destroy the jobs of Australians like this government has," he told the crowd.

"They are trying to change our commitment to a fair go, our commitment to justice, our democratic right to organise. They think they are going to get away with it. We say they ain't."

United Voice Victorian secretary Jess Walsh said workers were angry.

"We're angry at a government that wants to make us work harder and work longer for less money and we are here today because we deserve better, and we are here on the streets with you today because we are ready to fight," she said.

Rally organisers pledged to hold further protests.

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Sydney among most expensive to visit

SYDNEY is one of the most expensive city destinations in the world, a survey reveals.

The NSW capital came in 10th on a city cost-of-touring table compiled by TripAdvisor, with London the most expensive destination for visitors.

A meal with wine for two, plus pre-meal cocktails, two short taxi journeys and a one-night stay at a four-star hotel in Sydney costs on average $404.

The package cost $561 in London, $550 in second-placed Paris, followed by New York at $540 and Stockholm with $516.

The rest of the 10 most-expensive cities were Oslo, Zurich, Copenhagen, Helsinki, Toronto and Sydney.

The world's best-value destination surveyed was Hanoi in Vietnam, which came in at an average of $165.

While a four-star hotel in Sydney was priced more reasonably than London, Paris and New York at $211 a night, Sydney ranked the third most expensive city in the world for a meal at $140 for two with wine, behind Stockholm and Oslo, respectively.

TripAdvisor spokesman Scott Wegener said the results showed that Asian destinations were still the most affordable, while European destinations continued to top the most expensive list.

"However, eastern European countries such as Bulgaria and the Czech Republic seem to be bucking this trend, so may serve as the alternative places for Australian travellers looking for a city break in Europe."

The TripIndex Cities study compares the cost of an evening out in 48 key tourist cities.

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Chief magistrate appointed Qld's top judge

Chief Magistrate Tim Carmody QC is believed to be the front runner to be Queensland's Chief Justice. Source: AAP

TIM Carmody's ascension from chief magistrate to become the state's top judge has finally been confirmed.

AFTER months of speculation and a public spat between the judiciary, Premier Campbell Newman made the announcement at the Supreme Court library on Thursday.

Judge Carmody, QC, who was recruited as chief magistrate from the bar nine months ago, will replace long-running Supreme Court chief justice Paul de Jersey who becomes Governor next month.Mr Newman said the government consulted widely on the appointment, including within legal circles, and he made the decision on Wednesday."His honour has the keen legal knowledge, administrative skills and integrity that are essential qualities for the role of Chief Justice," he said.Judge Carmody humbly accepted the appointment."I will work hard every day to prove worthy of the public's trust in me," he said.His elevation has split the legal fraternity.Several lawyers, including former Crown Solicitor Walter Sofronoff QC and former Supreme Court judge Richard Chesterman QC, have raised concerns about Mr Carmody's perceived closeness to the Liberal National government and his backing of its controversial anti-bikie laws.Mr Sofronoff, who resigned as solicitor-general in March, also questioned Mr Carmody's experience.Judge Carmody served as Counsel Assisting in the Fitzgerald Inquiry into police corruption in the 1980s and became special prosecutor of official corruption arising from the landmark inquiry.From 1998 to 2002 he was Queensland's Crime Commissioner and was appointed a Judge of the Family Court in 2003, before returning to private practice in 2008.Before his appointment as District Court Judge and Chief Magistrate in September 2013, he served as Chairman of the Queensland Child Protection Commission of Inquiry.

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World record rowing attempt begins in WA

A 36-YEAR-OLD Victorian policeman and seven other crew members have embarked on a world record attempt to row 8500 kilometres across the Indian Ocean.

Tim Spiteri and his team departed from Geraldton, in Western Australia's Mid West region, on Wednesday afternoon with the aim of reaching Durban in South Africa in less than 57 days.

They will be totally unsupported, with each rower manning the oars for two hours, followed by two hours of rest in a continuous shift cycle.

They say no rowing crew has ever made the crossing non-stop as most teams end their journey in Mauritius, about 1700km from mainland Africa.

Mr Spiteri, whose mother suffers from multiple sclerosis and is writing a children's book about the voyage, hopes to raise $250,000 for MS Australia.

He has so far raised more than $27,000.

While on their journey, the crew will consume just 5000 calories a day, but will burn at least 6000 calories.

The 1000-calorie deficit each day meant Tim had to put on more than 10kg before he began the journey to avoid losing too much weight.

The team will be consuming mainly dehydrated foods, some nuts, lollies and protein bars.

Mr Spiteri, who has been a policeman for 14 years, completed an Atlantic Ocean crossing last year in 35 days, 12 hours and 41 seconds - the sixth fastest crossing in history.

Last year, Dutch adventurer Ralph Tuijn was rowing solo across the Indian Ocean when a tanker struck him at night while he was some 2000km from Cocos Island and about 4600km from the Australian mainland.

Tuijn did not require medical treatment and was rescued by the tanker LNG Sokoto.

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Consumers struggle to get over budget jolt

AUSTRALIANS are struggling to get over the potential hit to their hip pockets from the federal budget.

As the government tries to coerce the Senate into backing several contentious budget measures - including a $7 GP co-payment, changes to the dole and a rise in the pension age - consumer confidence remains in the doldrums.

Two separate readings of consumer sentiment failed to show much improvement after their budget-induced tumble.

One of them found that this budget was the most notable in the past 40 years. And not in a good way.

Treasurer Joe Hockey and Finance Minister Mathias Cormann resorted to penning an opinion piece on Wednesday, calling for the Senate to work with the government.

They point out that only two past Australian governments had held a majority in both the upper and lower houses.

But "almost every government has been able to pass major elements of its budget".

In the Senate, where the government does not have a majority, Labor and the Australian Greens - along with Clive Palmer's cohort of four senators from July 1 - have vowed to block certain measures.

Opposition Leader Bill Shorten says this "rotten" budget is becoming more unpopular by the day and he has a message for Prime Minister Tony Abbott, who is in the United States after visiting Canada and Europe.

"It doesn't matter how many world leaders Tony Abbott meets, he still has problems back home," Mr Shorten told reporters in Sydney.

The Westpac-Melbourne Institute monthly consumer sentiment index rose just 0.2 per cent in June but is still down 6.6 per cent down from its pre-budget level.

Westpac senior economist Matthew Hassan said the result was disappointing given that a response to a budget can be an overreaction that is reversed in following months.

The survey found that 74 per cent of respondents recalled news about "budget and taxation" in the past three months, the highest percentage of people paying attention to those news topics since the survey began in the mid-1970s.

It's also more than when the GST was introduced in 2000.

The latest weekly ANZ-Roy Morgan consumer sentiment index was unchanged but 11 per cent down from when budget measures were first leaked in late April.

Other data suggested the labour market will bring little cheer in coming months with the government's leading jobs index falling for an eighth straight month.

Economists expect Thursday's labour force report for May will show the unemployment rate rising to 5.9 per cent from 5.8 per cent in the previous two months.

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Harbour crossing may start in three years

Labor is ramping up its attacks on NSW's planned power sale, branding the premier's proposals a con. Source: AAP

WORK on Sydney's second harbour rail crossing could start in two or three years if the NSW government wins the next election.

But the government has stopped short of saying how much the Sydney Rapid Transit project will cost.

Premier Mike Baird says he is confident $20 billion raised from selling off the state's electricity network poles and wires will be enough to contribute to the rail extension and other infrastructure across NSW.

"The difference between this plan and previous plans is we have announced the funding to go with it," he said of the rail project on Wednesday.

Forty nine per cent of the state's poles and wires will be sold on 99-year leases under a policy approved by Liberal and Nationals MPs following heated party room meetings on Tuesday.

The coalition will take the sale to the March 2015 election and if it wins approval, Mr Baird said he anticipates the transaction being completed by the end of 2016.

A second harbour rail crossing would be created with proceeds from the sale, extending the North West Rail Link through the CBD and on to Bankstown.

There will be new stations in the CBD, including at Pitt Street, and the government is also looking at a station at Barangaroo.

Mr Baird said the cost of the rail project was close to being finalised, with some money also drawn from government transport funds.

"We will also be inviting the private sector to participate, just as they are in the North West Rail Link," the Premier told reporters at Bankstown train station.

Transport Minister Gladys Berejiklian said before the asset sale announcement, the rail extension would not have been able to go ahead until the North West Rail Link project was finished.

"Because of yesterday's announcement and if we get a mandate at the next election I am hoping we are able to start construction on the next two to three years on this project," she said.

Meanwhile, the NSW opposition is ramping up its attacks on the state's planned power sell-off and accused Premier Mike Baird of trying to "con" the public.

"Mike Baird has simply put forward an infrastructure mirage that will come at the cost of every family across NSW through their electricity bills," opposition leader John Robertson added.

The mud slinging continued with Treasurer Andrew Constance calling Mr Robertson fiscally illiterate and accusing him of deliberately seeking to confuse debate.

He pointed to an Ernst & Young report commissioned by the NSW treasury department showing network costs had declined in states where power was privatised.

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Corruption watchdog given Palmer papers

Clive Palmer allegedly demanded mining control to stop his attacks on the Newman government. Source: AAP

ALL dealings Clive Palmer has had with the Newman government will be forwarded to the state's corruption watchdog.

Deputy Premier Jeff Seeney hasn't made a formal complaint and says it will be up to the Crime and Misconduct Commission (CMC) to assess if the federal politician acted inappropriately.

Mr Seeney said the mining magnate sought preferential treatment for his coal projects in 2012, which were rejected.

Newly released documents suggesting that in early 2013, Mr Palmer offered to drop three legal cases against the government if it approved his rail line in the untapped Galilee Basin.

"That's just crazy stuff and I told him so," Mr Seeney said.

He says staff were gathering all correspondence his office and the government have had with the businessman and will be giving it all to the CMC.

The deputy premier may have breached laws by sitting on a possible claim of official misconduct for so long.

"At the time, we were a new government, we were about creating jobs for Queenslanders," he said.

"I conceded that (that I had an obligation to report).

"With the benefit of hindsight given the way Clive Palmer has gone, it probably would have been better not to try to deal with him."

Labor's Yvette D'Ath says if the allegations are genuine, the government was required report to the CMC any suspicions of misconduct at the time.

"They need to come out and say why they are now coming out and doing it two years later," Ms D'Ath said.

Mr Palmer says Mr Seeney and Premier Campbell Newman have made up the allegations, and want to hurt him because he's suing the premier for defamation.

He warned Mr Seeney's deceitful actions could land him in legal hot water.

"It's a criminal act to refer an allegation to the CMC which you know to be untrue," Mr Palmer told AAP on Tuesday.

"The sooner he's thrown out of parliament the better."

Mr Palmer declared all out war with LNP not long after Mr Newman became premier, and he threw in his life membership in November 2012.

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Budgets weigh on WA consumer confidence

A FALL in consumer confidence in Western Australia is further evidence that federal and state budgets have hit taxpayer sentiment hard, member for Perth Alannah MacTiernan says.

The latest WA Chamber of Commerce and Industry-Curtin Business School survey of consumer confidence shows sentiment remains at record lows.

Almost 90 per cent of respondents said they expected the economy would remain the same or deteriorate over the next three months.

While high living costs was the most significant issue on 53 per cent of consumers' minds, 49 per cent of respondents rated the political environment as a major concern, up from 40 per cent in March.

Ms MacTiernan pounced on the figures, saying the survey was taken at a time where pre-budget speculation dominated, so consumer confidence might have fallen even lower, given households would have since digested the numbers.

"The Abbott government promised to 'turbo charge' consumer confidence and what we have seen in the lead up and with the May budget is the exact reverse, with the treasurer making it clear that the budget was about hitting household consumption," Ms MacTiernan said.

"That inevitably meant pensioners, students and families relying on basic services and payments to get ahead would suffer."

In the state budget, which was handed down five days before the federal budget, WA households were slugged on average an extra $324.18 a year for electricity, water, public transport and car registration.

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Vic teen 'forced into sex work': police

A 17-YEAR-OLD girl may have been forced into sex work for three months, Victorian police say.

A 33-year-old Warrnambool North man was arrested over the claims, but was released pending further inquiries.

He was interviewed on Monday over charges of procuring and inducing a child to take part in sex work, allowing a child to take part in sex work and living on the earnings of a sex worker.

Police on Tuesday said they had reports a girl had been forced into sex work, and appealed for anyone else in the same situation to come forward.

Detectives want to speak to anyone who has information about the girl or illegal sex work in Victoria's southwest.

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Police investigate 4WD flip on Sydney's M1

POLICE are investigating a crash on the Sydney to Newcastle freeway in which a four-wheel drive overturned and the caravan it was towing continued down the roadway.

Witnesses have told police that the Toyota four-wheel drive was towing a caravan northbound on the M1 on Monday at 11am when the car flipped on the Mooney Mooney Bridge.

The caravan disconnected from the car and continued to travel about 500 metres north from the accident site.

Emergency services removed the trapped 47-year-old male driver from the vehicle before he was taken by ambulance to Mount White.

He was then airlifted to Royal North Shore hospital.

No one else was injured in the crash.

Two lanes of north bound traffic were blocked while emergency services investigated the scene but they have since been reopened.

Witnesses told police the driver may have hit a rock wall but the exact cause of the crash remains unknown.

Investigations are continuing and police have asked for anyone with information to contact Crime Stoppers on 1800 333 000.

Meanwhile, NSW Police have also warned that motorists face long delays on the Princes Highway at Nowra, Berry and the southern Sydney suburb of Heathcote as they return at the end of the long weekend.

There are also delays for drivers on the Great Western Highway at Blackheath and Hazelbrook in the Blue Mountains.

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Aust to attract chefs with visa changes

Australia needs more of the culinary professionals to cope with forecast growth in the hospitality and tourism sectors, and the government will try to attract experience from overseas.

Chefs, along with bricklayers and wall and floor tilers, will be added to the Skilled Occupation List from July, making it easier for suitably-qualified people to secure a visa to enter, live and work in Australia.

Strong interest from a number of high-end international hotel chains means there is going to be a drive in the restaurant and cafe business, along with the construction sector, Trade and Investment Minister Andrew Robb said.

Australia must ensure it has the workforce to compete, he added.

The need for more construction-industry professionals stems partly from a decrease in Australia's apprenticeship completion rate, the government said.

There are almost 200 occupations on the occupation list, with jobs including health professionals, engineers, various trade roles, accountants and veterinarians.

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Vic Labor to stall legislation over Shaw

VICTORIA'S parliament is set for a showdown, with Labor insisting independent MP Geoff Shaw be dealt with before any legislation is examined.

Labor is calling for the balance of power MP to be expelled for contempt of parliament and wants the lower house to debate the issue as soon as parliament is recalled on Tuesday.

Shadow Treasurer Tim Pallas said it was the most important issue facing the house.

"When a member is the subject of a contempt consideration, that matter should be resolved as quickly as possible," he told reporters on Sunday.

A parliamentary privileges committee last month found Mr Shaw breached the MP code of conduct by misusing his parliamentary car for his private hardware business.

The committee, which was dominated by government members, recommended Mr Shaw repay the money but face no further sanction.

Premier Denis Napthine has since fallen out with Mr Shaw, after the former Liberal MP declared he no longer had confidence in the government.

Dr Napthine responded by accusing Mr Shaw of making demands for a judicial appointment.

The government now says it is carefully considering legal advice about the parliament's powers to expel an elected member.

Labor says it has obtained advice from constitutional expert George Williams saying the state parliament could do precisely that.

"There is no doubt that a properly structured resolution to either expel or suspend Mr Shaw can be put," Mr Pallas said.

Mr Pallas said Mr Shaw had blackened the name of all politicians.

He said any other Victorian would expect to lose their job if they had been found to have misused a work credit card.

Treasurer Michael O'Brien last week said passing the budget was a "million times more important" than Mr Shaw.

Mr Pallas said Labor would pass the budget, and that it could be dealt with before the end of the sitting week.

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