Canadian firm hikes dairy takeover offer

CANADIAN diary giant Saputo has increased its offer for Warrnambool Cheese and Butter to $449 million, insisting its takeover of the local company would not reduce competition.

The local dairy company's board has supported the new offer, but rival bidder Murray Goulburn said it is committed to pursuing a takeover.

Saputo is now offering Warrnambool shareholders $8 a share, more than Murray Goulburn's offer of $7.50 and Bega's offer of $2 plus 1.2 of its shares.

The Canadian dairy firm originally offered $7 per share.

Saputo chief executive Lino Saputo Jr said his company planned to maintain Warrnambool's current facilities and increase its output.

"We know how important competition is for milk producers," Mr Saputo said.

"Saputo does not currently have a business in Australia, so Saputo's arrival in Australia will not reduce competition.

"Instead, we will ensure WCB is well financed and remains a vibrant competitor.

"Saputo plans to continue to operate Warrnambool's facilities at Allansford and Mil Lel, and will look at investing to expand Warrnambool's operations to increase manufacturing capacity.

"In turn this should provide suppliers with more opportunities (to) sell their milk."

Warrnambool's board has urged shareholders to reject Murray Goulburn's bid, and an offer from Bega Cheese.

"In addition to the attractive price offered to shareholders, the WCB board takes comfort in Saputo's assurances to suppliers and employees, as well as its intentions to invest in WCB's assets and pay a leading competitive milk price," chairman Terry Richardson said.

But Murray Goulburn said the fight for Warrnambool would be a long one.

"(Murray Goulburn) believes that resolution of the future ownership of WCB will be a long process and that WCB shareholders should not act prematurely in relation to giving up control of their shareholdings," it said.

"(Murray Goulburn) remains committed to acquiring WCB and to satisfying all conditions associated with its offer as quickly as possible."

Saputo said its offer represented greater certainty for Warrnambool shareholders because, unlike the Murray Goulburn and Bega offers, it is not subject to approval from the Australian Competition and Consumer Commission.

However, the Saputo deal would be subject to approval from the Foreign Investment Review Board.

Both Saputo and Murray Goulburn have said a takeover of Warrnambool would help them to take advantage of growing demand in Asia for dairy products.

Warrnambool shares gained 27 cents, or 3.3 per cent, to $8.42, continuing its rise from $4.50 just six weeks ago.

Murray Goulburn and Bega are Warrnambool's biggest shareholders, with each owning more than 17 per cent of the company.

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We will deliver NDIS: Abbott government

THE Abbott government insists it has no plans to either privatise or unwind the national disability insurance scheme.

But it could allow the National Disability Insurance Agency (NDIA) to contract out some administrative functions to the private and not-for-profit sectors.

Treasurer Joe Hockey had raised as "just an idea" the possibility the agencies administering the landmark scheme could be abolished or scaled back with their roles assumed by Medibank Private.

The idea is part of the government's push to streamline service delivery and cuts costs.

Both Labor and the Australian Greens reacted furiously to Mr Hockey's comments.

"We will fight this with every inch of our efforts," Opposition Leader Bill Shorten told reporters in Melbourne on Friday, adding Labor was justifiably proud of the scheme's establishment by the Gillard government.

The Greens suggested a potential transfer of responsibilities to Medibank was code for winding back the NDIS.

Not so, says Assistant Minister for Social Services Mitch Fifield.

"Contrary to Labor scaremongering, the coalition has no plans to privatise or unwind the NDIS," he said in a statement.

The government would honour Labor's announced spending for the scheme's roll-out agreements that were in place between the commonwealth and the states and territories.

But Senator Fifield said new service providers were emerging for the scheme and it may be that Medibank Private chooses to offer services in the market.

"That is a matter for them."

The government says the NDIS will not be exempt from its commission of audit which is examining government operations and finances.

All federal departments and agencies should be open to advice on best administrative practice to ensure services were delivered efficiently and well, Senator Fifield said.

The NDIA board may determine, in light of its launch site experience, that some administrative functions could be contracted out through a competitive process

Jenny Macklin, the former Labor minister responsible for establishing the NDIS, insists it needs an independent authority to look after its delivery.

"Keep your hands off," was her message to the Abbott government as she joined Mr Shorten.

Ms Macklin, now the opposition spokeswoman for disability reform, said the changes could put at risk decades of hard work from people with a disability, their families and carers.

Mr Shorten was scathing of Mr Hockey's "just an idea" comment, saying people with disabilities did not deserve to have their lives disrupted by "ill-thought-out coalition thought bubbles".

"The government needs to realise they're in government now - when they have a thought bubble this affects the security and wellbeing of thousands of Australians."

Senator Fifield said the coalition had enthusiastically supported the NDIS through parliament and was committed to rolling it out.

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Army live-fire drill starts Qld grass fire

AN army live-fire exercise sparked a Queensland grassfire on Monday, the Department of Defence says.

Defence has already admitted that explosives training started the massive State Mine Fire in Lithgow, NSW, last week.

That fire has since scorched 50,000 hectares of land and destroyed three homes.

Defence has now confirmed a blaze at the Wide Bay Training Area near Tin Can Bay, north of the Sunshine Coast, started during a routine live ammunition exercise.

The fire started about noon (AEST) on Monday and is currently restricted to defence land.

It has caused no damage to equipment or civilian property, a defence spokesman says.

But it has scorched a square kilometre of land, with containment lines in place around it.

"At the time of the training activity, there was no fire ban in place and weather conditions were favourable for the activity to occur," a defence spokesman said.

The area is covered by Gympie Regional Council.

Deputy mayor Tony Perrett said the fire was unfortunate, but the army should regulate its behaviour during dry weather.

"It doesn't take much for one spark to create a situation that could get out of control," he told AAP.

"I hope the army will learn from this and where possible modify their training program in future to reflect current conditions."

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Police crack illegal tobacco syndicate

ONE of the biggest cigarette importation syndicates in Australia's history has been smashed by police after trying to smuggle $67 million worth of tobacco hidden in packaged food products into the country.

More than 70 tonnes of tobacco, 80 million cigarette sticks and a quantity of pseudoephedrine was seized by police as part of an investigation by the multi-agency Trident Taskforce.

Police have charged 10 people and have issued 12 warrants across Melbourne's suburbs of Parkville, East Melbourne, Northcote and Macleod.

Border protection authorities alerted police in January to the large amount of illegally imported tobacco, which was concealed in shipping containers imported from Indonesia, the United Arab Emirates and other countries.

The tobacco was hidden in legitimate packaged goods including food products, such as noodles and cigarette packaging.

Victoria Police Assistant Commissioner Crime Command Steve Fontana said cash and documents were seized when warrants were executed with those arrested residing in Melbourne.

"This is criminal activity. It's illegal activity. This is one of the largest syndicates of tobacco importation in the country's history," Mr Fontana told reporters in Melbourne on Thursday.

"This is a really significant and well-organised group and the sheer quantity of material seized indicates that it is one of the largest with good networks overseas."

Mr Fontana said the syndicate bypassed quarantine controls.

"These people are exploiting the vulnerabilities in our docks. The tax evasion is significant. They're bypassing health controls," he said.

"A lot of these people have set up legitimate businesses as a front for illegitimate businesses."

Mr Fontana said there was nothing to suggest outlaw motorcycle gangs were involved and that he could not comment on how long the syndicate had been operating.

Police will analyse documentation seized on Thursday to provide further leads on how the syndicate has been operating to determine whether further arrests will be made.

Australian Customs and Border Protection Service regional director for Victoria, Graham Krisohos, said Melbourne had the highest number of importations of illegal tobacco than any other capital in the country.

Six people were charged in June with offences including smuggling tobacco and dealing in the proceeds of crime.

The four charged on Thursday appeared briefly in the Melbourne Magistrates Court and were all granted bail to reappear in court in February.

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Credit Suisse posts 79pc rise in 3Q profit

Credit Suisse Group has posted a 79 per cent increase in third quarter profit. Source: AAP

CREDIT Suisse Group has posted a 79 per cent increase in third-quarter profit compared with last year, based on what it calls strong results from private banking and wealth management.

Switzerland's second-largest bank, which has shed employees and cut other costs to boost profitability, reported a third-quarter profit of 454 million Swiss francs ($US509 million), up from 254 million francs between July and September 2012.

The Zurich-based bank said in a statement on Thursday it had net revenue of 3.32 billion Swiss francs in its private banking and wealth management, roughly in line with the comparable quarter a year earlier.

Chief Executive Brady Dougan said the bank's "continued expense discipline and effective capital management mitigated the impact of challenging market conditions, characterized by low levels of client activity across many of our businesses."

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Commissioner David Ipp to retire from ICAC

ICAC Commissioner David Ipp will step down as head of NSW's corruption watchdog next year. Source: AAP

ICAC Commissioner David Ipp will step down as head of NSW's corruption watchdog next year.

"In opposition I repeatedly expressed my concern that (the Independent Commission Against Corruption's) inner-spring had wound down," Premier Barry O'Farrell told parliament on Thursday.

"There is no doubt that Commissioner Ipp had reinvigorated the organisation and through his efforts and leadership alone restored public confidence in the commission and reminded anyone thinking of doing the wrong thing that they will be found out."

"He departs with the undying gratitude of this parliament and of our state and we wish him a long and healthy retirement."

Mr O'Farrell has proposed Supreme Court judge Megan Latham as Mr Ipp's replacement.

Justice Latham was appointed to the Supreme Court of NSW in 2005 and has previously served on the District Court and acted as a crown prosecutor.

During her time at the Supreme Court, she has overseen the sentencing of some of the state's most infamous criminals, including former nurse Roger Dean, who killed 11 elderly people when he lit fires at the Quakers Hill Nursing Home in 2011.

She also sentenced hitman Haissam Safetli and standover man Lucky Gattellari over their roles in the 2009 murder of Sydney businessman Michael McGurk.

If her appointment is approved, it is expected she will take up the post for five years from January.

The announcement comes after Mr Ipp, who headed the ICAC from 2009, oversaw the explosive inquiry into former NSW Labor heavyweights Eddie Obeid and Ian Macdonald.

Mr Ipp said he decided to resign because back problems had made it impossible for him to sit for lengthy periods.

"This materially hinders my ability to do the job," he said in a statement.

He thanked the NSW parliament for supporting the ICAC and for providing the funds to make possible major public inquiries, including its investigation of NSW mining licenses granted by senior NSW Labor figures.

Mr Ipp will finish his term on January 24.

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New petroleum exploration permits granted

THE federal government has granted petroleum exploration permits over significant areas off the South Australian and Western Australian coasts.

Industry Minister Ian Macfarlane said the permits promised to deliver $580 million in exploration investment over the next three years.

"The opening up of new oil and gas exploration areas like the Great Australian Bight will ensure that Australia has enough energy to meet our future needs," Mr Macfarlane said in a statement on Wednesday.

"This shows that Australia is an attractive destination for investment in offshore exploration and sends a clear signal that Australia is open for business."

In SA, Chevron Australia has been granted permits over two areas located 200 kilometres and 300km west of Eyre Peninsula in the bight.

Murphy Australia Oil has also been granted a permit over an area in the bight about 350km west of Ceduna.

Off Western Australia, Shell Development Australia will be allowed to explore an area 360km north-west of Exmouth and a joint venture between Woodside Energy and Mitsui E&P Australia will explore an area 350km north-west of Broome.

Chevron Australia said it was pleased with the areas allocated off the SA coast which offered the company an opportunity to expand its resource base and reinforce the importance of Australia to its global growth strategy.

"The bight basin is similar in size to the Gulf of Mexico and these two blocks contain significant exploration potential," Chevron Australia managing director Roy Krzywosinski said in a statement.

SA Resources and Energy Minister Tom Koutsantonis said increased exploration was essential to finding Australia's next offshore petroleum province.

"South Australia's energy revolution continues to attract major interest from local and overseas companies wanting to join the search to unlock our oil and gas potential," he said.

Santos Offshore Ltd, involved in a joint venture with Murphy Oil Australia, said the area off Ceduna was one of the last true unexplored deltas in the world.

"It is a high-potential frontier basin, with commensurate risk," Santos head of exploration Bill Ovenden said.

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Three new bushfire emergencies in NSW

A fire at Springwood was elevated to the highest emergency level after being fanned by strong winds. Source: AAP

NSW is facing three fresh bushfire emergencies with new blazes springing up around Newcastle and a Blue Mountains blaze flaring up after the predicted diabolical conditions hit.

A fire at Springwood was elevated to the highest emergency level on Wednesday afternoon after being fanned by strong winds that were also showering homes with embers.

Springwood resident Rae Tebbutt said the atmosphere was tense.

"Everyone is terrified. I've got three friends who have lost everything," Ms Tebbutt told AAP.

"Our car's packed up. All our photos, personal items, the laptop, documents are all ready to go."

Two emergency warnings are current in the Newcastle area north of Sydney with two schools evacuated and the M1 motorway closed in both directions at Minmi.

Sharon Wilson, chef and kitchen manager at the Minmi Hotel, described conditions as "crazy".

She and her colleagues have been holed up inside the hotel awaiting instructions from firefighters.

"We've been spraying the pub down and the grass around it," she told AAP.

"There's a lot of embers and ash flying over us.

A dangerous fire is also burning at Gateshead, south of Newcastle, threatening the suburbs of Redhead and Dudley.

At Redhead, 15 students were being cared for in the school hall after parents were asked not to pick them up because of the fire hazard on the road.

There are now more than 71 bushfires in NSW including 29 that are uncontained.

Thousands of firefighters are on the field and 95 aircraft available.

Hundreds of Blue Mountains residents have fled their fire-threatened homes for evacuation centres outside the mountains.

One of these was Yrsa Forde, who found herself grabbing her baby and bolting for the second time in less than a week.

This time the 31-year-old from Sun Valley, near Springwood, headed for Penrith at the foot of the mountains early in the morning.

"We don't want to take any risks because we've got a baby and animals as well so we can't leave quickly," she told AAP at the Penrith information centre.

"We're just going to stay out until it's not likely the fire will come through."

"If the fire comes through I don't think we will have a home to come back to," she said.

Rural Fire Service Commissioner Shane Fitzsimmons said firefighters still faced many hours of dangerous, volatile conditions.

"We still have a few hours yet of the strong winds and the warmer conditions, the winds are expected to continue right through to nightfall and beyond," he told reporters at RFS headquarters.

Premier Barry O'Farrell thanked the almost 1,000 interstate firefighters who were lending a hand but condemned the reported action of one Blue Mountains landlord who had attempted to increase rent for people who had lost their homes and were seeking emergency short-term accommodation.

"Regrettably despite some wonderful stories of great community spirit which has gone on during this fire crisis there is always going to be the odd alternative," he said.

A southerly change overnight is expected to present a double-edged sword for firefighters.

Mr Fitzsimmons said while a change to south-southwesterly winds would bring cooler conditions, it would put pressure on some areas.

"In a lot of the areas a southwesterly change as it stands today would prove to be somewhat favourable across a lot of the fire grounds," he said.

"There will be other areas where it will present some challenges."

A southwesterly will have the benefit of keeping it away from communities adjacent to the south of fire fronts, Mr Fitzsimmons added.

"That doesn't mean it will make all of these fire grounds trouble-free," he said.

"As a matter of fact, it has the very real potential to present new challenges."

With fires still active in the Blue Mountains, residents who fled earlier on Wednesday have been asked not to return.

Mr Fitzsimmons said fire-threatened communities weren't safe just yet.

"We still have hours to go," he said.

"There are still fires flaring up, running and impacting on communities this afternoon.

"There is every prospect we are going to see some more.

"There is every prospect we are going to see some fires breaking out on the existing fire grounds we have across the Blue Mountains."

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Treasury Wine says China demand is slowing

TREASURY Wine Estates says consumer demand for luxury products and wine in China is slowing.

The owner of the Penfolds and Wolf Blass brands also says the current financial year will be challenging as it continues to sort out an excess of stock held by distributors in its key United States market.

Treasury Wine's decision to dispose of that excess wine cost it $153.4 million in the 2012/13 financial year, and led to the exit of chief executive David Dearie.

Interim chief executive Warwick Every-Burns told the company's annual general meeting on Wednesday that earnings in 2013/14 would be strongly influenced by the success of ongoing efforts to reduce excess stock in the US.

Other factors, including the volatility of the Australian dollar, would also impact earnings.

"In addition, and in keeping with recent announcements by other alcoholic beverage and luxury goods businesses, we are observing signs that consumer pull through in China is softening as a result of the recent leadership change and well documented government austerity measures," he said.

The company still expects its pre-tax earnings in 2013/14 to be between $230 million and $250 million, he said, up from $216 million in 2012/13.

But earnings in the first half of the 2013/14 financial year are expected to be lower than in the prior year due to lower US shipments and increased brand investment in Asia, Mr Every-Burns said.

Chairman Paul Rayner said it could take some time to find a permanent replacement for Mr Dearie.

He also said Treasury Wine had made "some bad calls" in the US, mainly in the area of lower-priced wines.

But Mr Rayner said the company would stay in the US market, and there was no reason why its luxury and "masstige" brands - mass produced prestige labels - should not succeed there.

Treasury Wine shares dropped 11 cents, or 2.3 per cent, to $4.62.

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Mirvac on track to hit earnings targets

PROPERTY group Mirvac says it is on track to reach its full year earnings targets as it works to put a disappointing 2012/13 result behind it.

Mirvac expects to lift profit to between $428 million and $443 million in the 2013/14 financial year, after project writedowns saw its full year profit fall by 66 per cent to $139 million in 2012/13.

The property developer reaffirmed its guidance for annual earnings of 11.7 to 12 cents per share in its quarterly operational update on Tuesday.

It expects to pay dividends of between 8.8 and 9.0 cents per share over the full financial year.

Mirvac chief executive Susan Lloyd-Hurwitz said the company's investment portfolio continued to perform strongly and was underpinning the group's earnings.

Ms Lloyd-Hurwitz said Mirvac's development business was well positioned with "strong visibility of earnings into the future", while its residential business performed strongly in the September quarter, thanks to its NSW apartment projects.

She said the company was looking to take advantage of an improvement in the housing market.

"While we are finally starting to see housing volumes and pricing improve, albeit off a low base, we believe that in order to best take advantage of the residential markets its all about having the right product, price point and location," Ms Lloyd-Hurwitz said.

Mirvac shares gained 3.5 cents, or two per cent, to $1.795.

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