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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MP says give 'measly' $25m to SPC

Federal cabinet will discuss a proposal to co-invest in SPC Ardmona's fruit processing operations. Source: AAP

PRIME Minister Tony Abbott has used the rejection of taxpayer support for fruit processor SPC Ardmona to set an important "marker" for how his government will deal with requests for industry assistance.

The 93-year-old Victorian company wanted a $25 million federal grant, topped up by $25 million from the Victorian government and its own $150 million investment, for new product development and technology to prop up its operation.

But after three hours of debate in federal cabinet on Thursday, Mr Abbott said the plan was rejected because it was not the government's job to restructure a particular business.

The decision, which workers and growers fear will lead to the operation's closure, comes weeks after Holden's bid for support was rejected and its parent company General Motors announced the end of car production in Australia in 2017.

"The decision that came from the cabinet today does set an important marker," Mr Abbott said.

"This is a government which will make sure that the restructuring that some Australian businesses need, that some Australian sectors need, is led by business, as it should be."

The government's role was to create the right climate for business, he said.

Mr Abbott said SPC Ardmona - owned by food giant Coca-Cola Amatil - was a strong business with the resources to allow it to restructure.

The company advised the government it was prepared to invest an extra $161 million into the business and renegotiate its enterprise bargaining agreement.

Mr Abbott said the company's present EBA had conditions "well in excess of the award", including a wet allowance and generous redundancy provisions.

However SPC Ardmona managing director Peter Kelly said the company would review its business plans.

"This is an unexpected and extremely disappointing decision by the coalition, particularly after the enormous support we have received for our business plans from the local community and beyond," Mr Kelly said.

Acting Opposition Leader Tanya Plibersek said the government had failed in its fundamental role - to protect jobs and bring on new investment.

"First they forced General Motors Holden out - now they are sending SPC Ardmona to the wall," Ms Plibersek said.

Labor pledged at the 2013 federal election to provide the $25 million grant.

If the plant closes, it is estimated 1500 direct and 2700 indirect jobs could be lost in the Shepparton region.

Shepparton mayor Jenny Houlihan said workers faced an unknown future.

"The $25 million that the government refused to let go today will be eaten up in unemployment benefits," she said.

Australian Manufacturing Workers' Union national secretary Paul Bastian said workers had been improving productivity, but other factors were affecting the business, such as the dumping of cheap imports and the high dollar.

"The government directly and indirectly subsidises mining, agriculture, finance, fisheries and other important Australian industries and yet it is continually cutting investment in manufacturing," Mr Bastian said.

"Soon, when we go to the supermarket ... there will be nothing left made in Australia."

Victorian Opposition Leader Daniel Andrews said if state premier Denis Napthine could not convince Mr Abbott to stump up $25 million for SPC Ardmona, he struggled to see how Dr Napthine could secure $300 million for Toyota as it considers its future.

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Treasury Wines tank on share market

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Police given bus CCTV after woman pinned

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

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

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

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

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

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

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

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

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

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

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

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

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

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Treasury Wines tank on share market

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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