Vic govt announces fire inquiry

AN independent inquiry will be held into the Morwell fires, the Victorian government has announced.

Deputy Premier and Emergency Services Minister Peter Ryan says the inquiry will look at all questions being asked about the coal mine fire.

On Friday, Chief Health Officer Rosemary Lester advised people aged over 65, pre-school children, pregnant women and anyone with a pre-existing heart or lung condition to move temporarily from Morwell South, the area closest to the mine.

But people outside the vulnerable group are angry with the response by authorities, heckling them at a media conference in the town on Friday.

Mr Ryan says the government is guided by Dr Lester's recommendations and its twin focus is on putting out the fire as soon as possible and helping locals as best it can.

"When they are accommodated, we'll then move to the position of an independent inquiry," he told reporters.

Opposition Leader Daniel Andrews called on the federal government to take over, saying the Napthine government had botched its response to the people of Morwell.

Mr Andrews said confusing advice was given to residents and an information centre was only set up on Friday.

"So inept, so incompetent has this government's response to unfolding disaster been, I think the people of Morwell would be right to say perhaps Dr Napthine just doesn't care about us," he told reporters.

"It got worse yesterday, because apparently if you're 66 years old, this community is dangerous and you should get out but, if you're 64 years old, it's perfectly safe," he said.

Mr Ryan accused Mr Andrews of cheap politics by trying to feed into the anxiety locals are feeling and undermining the advice by Dr Lester to government.

"This is base American dog whistling politics," he said.

It's expected to take at least another 10 days to get on top of the fire in the Hazelwood open-cut mine that's been burning for nearly three weeks.

Dr Lester said moving temporarily would be the best way for vulnerable people to avoid the continuing smoke.

The government expects the commonwealth will approve Victoria's application for natural disaster relief within two days, triggering assistance for small businesses affected by the blaze.

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Ex-Qld racing board referred to ASIC

TEN former Racing Queensland (RQ) board members have been referred to the corporate watchdog following an inquiry into the management of the industry.

Attorney-General Jarrod Bleijie said on Saturday that it would be up to the Australian Securities and Investments Commission (ASIC) to decide whether further action is taken.

The move comes less than a month after the Queensland Racing Commission of Inquiry delivered its findings to the government and made scathing findings about the conduct of former RQ chairman Bob Bentley and former RQ board member Bill Ludwig.

Commissioner Margaret White recommended Mr Bentley and Mr Ludwig be referred to ASIC.

A key allegation is that the men may have breached their duties by failing to resolve a deal between RQ and gambling giant Tattsbet.

That issue is currently before the Supreme Court in Brisbane, with RQ alleging it's owed up to $130 million by Tattsbet in access fees paid by corporate bookies.

Justice White also recommended eight other racing identities be referred to the watchdog for investigation.

They are former RQ board members Tony Hanmer, Bob Lette, Brad Ryan, Wayne Milner, and Kerry Watson and former RQ executives Sharna Reid, Malcolm Tuttle and Paul Brennan.

Lawyers for Mr Bentley, Mr Ludwig, Mr Hanmer and Mr Milner last week released a four-page response to the inquiry's findings.

They claim the $3 million inquiry failed to investigate a number of significant management issues and the government "conveniently cut off" the terms of reference for the inquiry in April last year.

They say the Queensland attorney-general's description of Racing Queensland pre April 2012 as "the dark days of racing" shows an unbalanced reading of the commission's 488-page report.

The response states that "wild accusations" about millions and millions of dollars being spent by Racing Queensland on certain projects had not been substantiated.

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Afghanistan troops welcomed home

Some 250 ADF personnel have been officially welcomed back from Afghanistan with a parade in Darwin. Source: AAP

AS more than 250 Australian Defence Force (ADF) personnel were officially welcomed home from Afghanistan, Prime Minister Tony Abbott said their effort was worth it.

There are 26 girls' schools in Uruzgan province where there were previously none, he said, doctors and nurses where once there were few, and 200km of sealed roads and bridges where before none existed.

"Yes, it was worth it," Mr Abbott told the troops and their families at an official reception at Darwin's Parliament House on Saturday.

"The price was high, but the cause was great and the success has been sufficient."

Family, friends and the Darwin community were waiting to officially celebrate the ADF personnel, who returned to Australia in December following the completion of Australian operations in Uruzgan province.

Mr Abbott said that, although it was impossible to know what the future held for the people of Afghanistan, "every day you were there was better than it would have been; every day will be better than it would have been because you were there".

He was echoed by Opposition Leader Bill Shorten.

"You put yourselves at unimaginable risk ... no words that can convey the gratitude of the nation," he said.

Australia's longest war was carried out with the support of both sides of politics, said Chief of Army, Lieutenant General David Morrison.

"We are part of the ranks of men and women who have stood the lonely vigil since 1901. We are part of that great narrative of the Australian soldier - that long, lonely column stretching back across more than a century that have worn the slouch hat," he said.

"The cause was legitimate. You kept the faith. You gave all to secure Australia and to give optimism to the future security of the people of Afghanistan."

He also thanked the families of the ADF personnel for tolerating the pressure put on their home life.

"We couldn't function as a defence force without you," he said.

Forty soldiers were killed during operations in Afghanistan, and 261 were wounded.

There are 400 members remaining to provide ongoing training and advisory support for the Afghan National Security Forces.

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Saving Dying Kangaroo will cost you

QANTAS and Virgin Australia are caught in a peculiar dilemma of their own making: they could end their deathmatch and make aviation a profitable business but neither is prepared to make the first move.

And while Australians fret that the Flying Kangaroo might now be the Dying Kangaroo, the depth of our loyalty will be tested because any return to health for the national carrier will almost certainly come with higher airfares.

Qantas exposed the dire depths to which its business has sunk on Thursday with an "unacceptable and unsustainable" $235 million half year net loss, and a recovery plan including 5,000 job cuts as it finds $2 billion in savings.

Virgin followed suit on Friday with an $83.7 million net loss, and the sombre observation from chief executive John Borghetti that "the Australian domestic aviation industry has made a first half loss for the first time in 20 years".

Unsurprisingly, Mr Borghetti said Virgin had its strategy right and blamed Qantas' relentless determination to hold on to 65 per cent of the domestic market for the situation.

"I can't control, and nor do I want to control the capacity that other people want to put in but ultimately that is the biggest single inhibitor in this market for profitability," he said.

Qantas CEO Alan Joyce is just as certain Virgin is at fault - bankrolled by its foreign shareholders as it chips away at Qantas' only profitable business - the domestic market.

"The Virgin Australia group has increased capacity into the domestic market at more than twice the rate of the Qantas Group since July 2011," Mr Joyce said.

That has shrunk the domestic profit pool from more than $700 million in 2011/12 to less than $100 million in the first half of 2013/14, he said.

Mr Borghetti hit back with figures showing that for every domestic seat Virgin Australia added last year, Qantas added more than three.

And the figures are astounding: in one year Virgin added about 900,000 seats, while Qantas added three million.

Deutsche Bank research analyst Cameron McDonald said Australia's aviation industry has simply added too much capacity to be sustainable.

Qantas may cut 5,000 workers and save $2 billion but if business carries on as usual, it may not make a difference.

"Cutting costs is only one part of what we think to be the solution - you also have to get supply and demand back into balance," Mr McDonald said.

As Qantas has increased capacity, the amount it makes from each passenger-mile travelled, and the average number of passengers on each flight, have declined slightly.

"You can accelerate that cost base improvement but if things don't change on yield and load, that $2 billion in savings can be eroded very quickly," Mr Cameron said.

One unavoidable reality of a stable domestic airline industry is likely to be higher prices for airfares.

Mr McDonald pointed to the US market, where operators have reduced capacity and a subsequent rise in prices has followed.

Australia differs from the US in that it is a duopoly market, but Mr McDonald also points out that the nation has duopolies in many markets - and behaviour in those markets is far more rational.

Deutsche Bank estimates the potential profit pool in the Australian domestic market is as much as $1 billion - ten times what Mr Joyce says it is at present.

"People will pay more if you get supply and demand in balance - it's almost like who blinks first," Mr McDonald said.

The difficulty remains the damaging battle for market supremacy between the two players.

"It's almost like a bit of a prisoners' dilemma in that you can cut capacity and cede capacity to your competitor but what happens if Virgin then says they want 70 per cent of the market?" Mr McDonald said.

For now, however, there's no real prospect of change.

Mr Joyce is committed to maintaining Qantas' 65 per cent share of the domestic market, even as Virgin aims to continue its strategy of grabbing more of the premium domestic space, while Jetstar and Tiger Airways slug it out for the budget customers.

And Mr Borghetti is sticking to his line as well, saying his strategy is right and other things are simply beyond his control.

"The biggest thing out of our control is a competitor who just keeps doubling everything you do," Mr Borghetti said.

"It all hinges on what the biggest player does."

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Signed Mein Kampf copies to be auctioned

Two signed copies of Hitler's manifesto Mein Kampf are to be auctioned in the US. Source: AAP

ADOLPH Hitler's Mein Kampf is considered one of the most racist and heinous screeds in modern history, but an auctioneer says two rare, early editions signed by Hitler could sell for more than $US20,000 ($A22,373) at an online auction.

Nate Sanders, owner of Nate D Sanders Auctions in Los Angeles, said Hitler gave the books to Josef Bauer, an early follower who participated in the 1923 Beer Hall Putsch in Munich.

Hitler was arrested and jailed for the attempt to seize power. While behind bars, he dictated Mein Kampf - two volumes of autobiography and anti-Semitic manifesto - to Rudolf Hess to raise money for his criminal defence. Hess later served as Hitler's deputy.

The flyleaves of both volumes feature Hitler's signature with best wishes to his friend for the Christmas season.

Sanders said volumes of Mein Kampf from the 1930s are common because they were popular wedding gifts in Nazi Germany. However, a copy signed by the author is rare, he said.

The auctioneer said the 1925 and 1926 editions of Mein Kampf for sale were purchased by a collector at a Bonhams auction in London several years ago.

Sanders is also auctioning off a leather trench coat he said was worn by Albert Speer, a Nazi government minister who took responsibility for the Holocaust at the Nuremberg trials and was sentenced to 20 years in prison for his role in the Nazi regime.

Selling Nazi memorabilia is prohibited in many European countries that experienced the horrors of World War II.

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Girl bitten by a brown snake in WA

AN eight-year-old girl is being airlifted to a Perth hospital after being bitten by a dangerously venomous snake.

The RAC rescue helicopter has been dispatched to the coastal town of Jurien Bay, about 220km north of Perth, to help transport the girl, who is believed to have been bitten by a brown snake.

She will be taken from the Jurien Bay Nursing Post to Princess Margaret Hospital.

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Parental pay needs strong economy: senator

The commission of audit have said the government's proposed paid parental scheme is too generous. Source: AAP

A GOVERNMENT senator warns he'll have problems with Prime Minister Tony Abbott's signature paid parental leave policy unless it's held over until the economy is stronger.

Senator John Williams' comments come as the audit commission reportedly told the government the scheme is too expensive in light of the budget's unhealthy position.

Mr Abbott is emphatically sticking by his plan.

The scheme, planned to begin in July 2015, will cost about $5.5 billion a year.

"I don't have a problem with the scheme so long as we have a strong economy," Senator Williams told reporters in Canberra.

"To me a strong economy is when you have a four in front of unemployment - we've now got a six in front of the figure ... and I like to see economic growth in a strong economy up around that four level.

"If it's not that strong then yes, I will have some concerns with it."

Unemployment is now at six per cent while economic growth is about 2.5 per cent.

Pressed on whether he would cross the floor on the issue, Senator Williams said only that he would be telling Mr Abbott his position before the media.

Labor seized on the comment, saying Mr Abbott was the only supporter of the generous scheme to give working mothers full pay for six months of leave, capped at $75,000.

The existing parental leave scheme pays the minimum wage for 18 weeks.

"This is a mighty social and economic advance for the women of Australia," Mr Abbott told parliament in defending his policy.

"I think one day members opposite will be a little embarrassed ... by the stance that they have taken on this policy."

He would not abandon the plan no matter what the commission of audit recommended.

"You shouldn't need a commission of audit to tell you that Tony Abbott's paid parental leave promise is not sustainable," Labor's finance spokesman Tony Burke told Sky News.

The Australian Greens support the principle of wage-replacement parental leave but want the government to cap the top payment at $50,000 for six months.

Senator Williams said that since the government would have to negotiate with the Greens to get any new scheme through the Senate, it was impossible to tell what form it might eventually take.

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Qantas boss remains positive

QANTAS chief executive Alan Joyce remains optimistic the airline's new strategy will return it to profitability despite posting a $252 million first half loss.

Mr Joyce told reporters in Sydney on Thursday that its plan to axe 5,000 jobs, defer or sell aircraft and cut unprofitable routes would return Qantas to profitability in just three-and-a-half years.

"We have a plan to cover every aspect of the business to get it back to profitability and we have the courage and commitment of the management team to make that happen," he said.

This is despite what he calls challenging conditions in the domestic and international aviation industry and a share price that has fallen from over $5 to just over $1 in the five years he has held the top job.

Mr Joyce has complained that during the past five years Australia has been hit by a giant wave of flights into the country and its main domestic competitor Virgin Australia has an unfair advantage in that its major shareholders are foreign-owned airlines.

"The impact of this unlevel playing field on our domestic airlines cannot be ignored," he said.

The growing number of flights into Australia seems unlikely to change and, even if the federal government does change the Qantas sale act to allow higher foreign ownership of Qantas, someone still has to want to buy it.

Qantas' former chief economist Dr Tony Webber on Thursday said this seems unlikely considering its record loss and falling share price.

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Vic groups want tobacco price board ban

Four Victorian health groups say cigarette vending machines should be banned at retail outlets. Source: AAP

CIGARETTE vending machines and tobacco price boards should be banned at retail outlets, Victorian health groups say.

Quit Victoria, Cancer Council Victoria, AMA Victoria and Heart Foundation Victoria also want an end to an exemption for point-of-sale displays for specialist tobacconists.

Quit Victoria executive director Fiona Sharkie said it was troubling that the tobacco industry was continuing to promote smoking as affordable for those on lower incomes by promoting value brands on price boards in lower socioeconomic areas.

"Although we have seen an accelerated decline in smoking rates amongst low-income Victorians in recent years, they still make up the largest proportion of smokers and therefore bear a disproportionate burden of smoking-caused death and disease," she said.

"Big tobacco should not be able to further target these smokers by using price boards to promote their brands."

Price boards are already banned in Queensland and the ACT, and the same thing should happen in Victoria, Heart Foundation Victoria chief executive Diana Heggie said.

The Australasian Association of Convenience Stores says tobacco products are already in plain packaging and out of sight, which it says is at the cost of retailers.

"Plain packaging has already resulted in significant customer frustration and this simply exacerbates the problem for no health gains," chief executive Jeff Rogut said.

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AGL profit down but should get high prices

AGL Energy's half year net profit has fallen 27.1 per cent to $261 million. Source: AAP

THE Abbott government's repeal of the carbon tax and a bump in energy prices is set to benefit AGL Energy more than its utility rivals.

Australia's second largest energy retailer posted weaker first half net profit on Wednesday, falling 27.1 per cent to $261 million.

However the company's chief executive Michael Fraser declared the fierce competition of late that led to discounting of utilities and a fight for customers largely over.

The combination of gas prices soaring, due to the looming start of Australian gas exports, plus the federal government's planned repeal of the carbon tax and review of renewable energy targets makes coal-fire electricity more economic again and wind and solar power less so.

AGL has more invested in coal power than rival Origin Energy, through owning the Loy Yang brown coal power station in Victoria and has made a $1.5 billion bid for the NSW state-owned coal power giant Macquarie Generation.

The Australian Competition and Consumer Commission is due to decide on the takeover this week but it has serious competition concerns about the deal, which some say would send prices rising further.

Mr Fraser said he was confident AGL had addressed any concerns by offering to sell supplies to competitors, pointing to the fact the market was over-supplied with electricity.

"There is no fact base to support those concerns," he told AAP.

He is predicting an improved financial performance in the second half of this financial year and next year, including a full six month contribution from recently acquired rival APG.

The company has also struck a deal to more than triple its wholesale gas sales into Queensland next year at far higher export parity pricing and margins of $3.40 a gigajoule.

He acknowledged that would add to the difficulties for high-gas user businesses at a time when struggling manufacturers are shutting and demanding prices and gas supplies be kept lower for locals.

"I think the good news is the big increases in electricity prices are over," Mr Fraser told AAP.

"You can't undo the fact that this country has approved three huge LNG (export) projects ... you can always look at what you might do in the future with respect to new gas resources coming on."

AGL's full year guidance for underlying profit this year of $560 million to $610 million compares to $598 million last year.

The reasons it cited for the weaker profit on Wednesday included the nation experiencing its warmest winter on record, the discounting and businesses and households becoming more energy efficient.

Mr Fraser predicted that renewable forms of energy would increasingly reduce demand - something that has already adversely affected utility companies in Europe - but that would be offset by population growth and the deregulation of power pricing in NSW and Queensland.

Morningstar analyst Gareth James said AGL's 2012 purchase of Australia's lowest cost electricity plant Loy Yang was looking shrewd as it was made at a time when the previous government were trying to shut coal plants.

The company's shares closed 3.0 cents lower at $15.95.

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New governor plays down legal rift in Qld

QUEENSLAND'S chief justice and next governor doesn't think the rift between the judiciary and the Newman government is major or long-lasting.

Premier Campbell Newman announced on Wednesday that Paul de Jersey would become the state's 26th governor from July 29, taking over from Penelope Wensley.

At a news conference announcing his appointment, Justice de Jersey defended Mr Newman's right to express his opinions and played down the fallout from his criticisms.

The premier has incurred the wrath of the legal profession for suggesting some defence lawyers acting for bikies are hired guns who are part of the criminal gang machine.

He was also accused of breaching the separation of powers when he urged the judiciary in 2013 to start realising what the community wanted and act accordingly.

"A degree of tension is a healthy incident of a democracy which respects the rule of law as ours does," Justice de Jersey said on Wednesday.

"I do not see any persisting adverse effect on the independent legal profession or court system.

"I don't think there is a major problem in the relationship between the court system and the executive legislative branches of the government at all."

Justice de Jersey said that as governor, he would resist any urge to offer his opinions when giving assent to new laws.

"A governor makes a mark in other ways, principally through interaction with the people," he said.

Mr Newman said Justice de Jersey had served the people of Queensland well throughout his legal career.

"His extensive experience and service to the people of Queensland makes him not just qualified but the perfect fit (as governor)," he said.

Opposition Leader Annastacia Palaszczuk said Justice de Jersey was a good choice and his appointment would have the support of the community.

"It's a decision that we can all agree on," Ms Palaszczuk said.

The Australian Monarchist League's Queensland branch welcomed the appointment of Justice de Jersey, a constitutional monarchist.

"Justice de Jersey has spent a lifetime in the service of the Queensland people and there is nothing more fitting than his appointment to signify an outstanding career dedicated to our community," spokesman Ben Collison said in a statement.

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Legal fight over WA's shark kill policy

Western Australia's shark kill policy will be challenged in the courts by Sea Shepherd. Source: AAP

THE West Australian government will be forced to defend the legality of its controversial shark kill policy, after marine activists Sea Shepherd recruited the mother of a fatal attack victim to support their opposition in court.

At a WA Supreme Court hearing set down for next week, Sea Shepherd's lawyers will challenge the legality of Premier Colin Barnett's decision to place baited drumlines off Perth beaches and the south-west.

And Sharon Burden - whose son Kyle was mauled to death while bodyboarding in Bunker Bay in 2011 - has put her name on the action, saying opponents to the so-called cull had been given no option.

"When you lose someone close to you something like this means you have to keep reliving the event - but there are times when you feel strongly about something and you have to follow through," Ms Burden told AAP.

"We were not given the opportunity as a community to fully explore this issue, before it was haphazardly undertaken."

Sea Shepherd will be seeking an immediate injunction to have the drumlines removed, on the basis an exemption granted to itself by the WA government to allow the killing of tiger, great white and bull sharks was illegal.

The legal action will be led by Patrick Pearlman, principal solicitor for the Environmental Defender's Office in WA, and prominent barrister Richard Hooker.

"The law has not been complied with, there should have been a debate - this program has been fired from the hip from the beginning," Mr Pearlman said.

"In Sea Shepherd's opinion the rule of law is not being followed, and since the date this program was tendered the state have all been acting in violation of the law and conducting what are punishable offences."

The government has faced vitriolic opposition to the policy since it was announced late last year, with rallies on Perth and south-west beaches, and close scrutiny of the drum line activity.

Dozens of tiger sharks - but no great whites - have been caught by the hooks, with daily photos of captured sharks posted on social media.

Sea Shepherd says it is seeking a fast-tracked injunction to remove the drumlines immediately on the basis a judicial review needs to be conducted into the way the 'shark mitigation' program was rolled out.

A court hearing is set to take place next Tuesday, March 4.

Ms Burden said she hoped the story of her son would help highlight larger environmental issues, for which he and she shared a passion.

"Kyle's story has really brought a focus on bigger issues that we need to consider as a community," she said.

A spokeswoman for Mr Barnett says the premier would not be commenting as the matter was going to court.

Later, Mr Barnett said he was confident the policy would stand up to the legal challenge, which he claimed the government had anticipated.

"The West Australian government is absolutely confident that the policy in place is the right policy and we intend to continue it," Mr Barnett told reporters.

"And that's why we took great care, both in terms of processes at a state level and at a Commonwealth level, and we are confident that that is done in the right way."

And he said the policy was here to stay.

"We intend to continue it through next summer as well," Mr Barnett said.

"The decision that we took was not easy - no one takes any satisfaction out of seeing any creature killed - but I think the decision taken by government was that the protection of life comes first, and I think the vast majority of the community support that."

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