Scooter company on track for first profit

SCOOTER maker Vmoto expects 2013 will be its first profitable year, thanks to growing sales in China.

The company makes electric and petrol scooters in China, and distributes them to more than 30 countries.

Vmoto also owns 10 retail outlets in China, with four of those stores having opened in the last two months.

On Monday, the company said November was another profitable month, and the company still expects to make its maiden annual profit, of between $300,000 and $600,000, in the 2013 calendar year.

Vmoto listed on the Australian share market in 2002.

It expects to have had made 42,000 scooters in the year, and had sold 3,197 of its own scooters in China by the end of November.

"The gradual buildup in sales month-on-month are testament to the Vmoto brand becoming increasingly recognised as a premium product for electric scooter riders in China," it said.

The company's shares gained 0.1 of a cent to 3.1 cents.

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Man arrested over double murder

A 19-YEAR-OLD man has been arrested on suspicion over the double murder of a mother and her daughter in Perth.

The bodies of Tamara Alexandra Horstman, 26, and her mother Maureen Anne Horstman, 67, were found on Sunday afternoon after Tamara failed to arrive at work.

The parents of one of her friends went to the Warwick address to check on her and alerted police, who arrived about 2.30pm (WST).

Police have not revealed how the women died but it is believed Maureen suffered chest injuries and Tamara suffered head injuries.

Tamara's twin brother, who also found the pair, was questioned by police but was cleared as a suspect on Tuesday morning.

Detectives arrested another man in Mirrabooka on Tuesday and he is assisting police with their investigation.

Tamara's 2008 model Mazda3 sedan, which had been missing, was found in Mirrabooka on Monday after a member of the public heard about the search via the media and alerted police.

Anyone with information about the case is asked to call Crime Stoppers on 1800 333 000.

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Icebreaker unable to reach Antarctic ship

Australian icebreaker Aurora Australis is battling to reach a cruise ship stranded in the Antarctic. Source: AAP

A STRANDED research ship will spend its seventh night wedged in Antarctic sea ice after strong winds pushed back an Australian icebreaker sent to its rescue.

The Aurora Australis icebreaker battled through enough sea ice on Monday to come within 10 nautical miles of the stranded vessel, which is carrying more than 70 scientists, explorers and tourists.

But in the latest setback to the on-going rescue mission, the icebreaker abandoned its first attempt and sailed into open water as poor weather moved in.

Rescue authorities have now put the mission on hold over safety concerns, but may try again when the weather improves.

"Further attempts may be made by the vessel ... once weather conditions improve," said Australian Maritime Safety Authority (AMSA) spokeswoman Lisa Martin.

The icebreaker arrived near the Antarctic coast at 2am (AEDT) on Monday in a final bid to break through the pack ice surrounding the MV Akademik Shokalskiy, located about 1500 nautical miles south of Hobart.

Two icebreakers have already given up on efforts to push through the thick and dangerous ice floes to free the trapped ship.

The ship's passengers, from Australia and New Zealand, have been stuck on the ship since Christmas Eve.

The ship had been undertaking the Spirit of Mawson voyage, which is retracing Sir Douglas Mawson's Antarctic expedition.

Professor Chris Turney of the University of NSW is leading the expedition, consisting of scientists, explorers and enthusiasts undertaking climate research.

He has continued to post updates about the failed rescue attempts on social media sites, saying the weather was poor but he remains hopeful since ice appears to be breaking up near the trapped ship.

"Cracks are developing around the bow. Hope this helps," he wrote on Twitter.

"High winds this am; sorry for limited comms. Set up tent on top deck. All well. ... Waiting game!"

The Aurora is the last ship in the area that will be able to help.

If it can't battle through the ice in another attempt, authorities will look at ferrying the trapped passengers to safety by helicopter.

The Akademik Shokalskiy sent a distress call on Christmas Day after becoming trapped in heavy sea ice.

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Girl killed, five injured in NSW crash

A YOUNG girl has been killed and five other people injured in a single-vehicle crash in the state's Hunter region.

The crash occurred about 50 kilometres south of Cessnock on George Downes Drive, Bucketty, shortly before 1pm (AEDT) Monday, police said.

It was first thought that a man had died in the crash, but police and the NSW Ambulance Service now say a young girl was killed.

They say she was pronounced dead at the scene.

Police said a woman in her 30s, believed to be the driver, and another young girl suffering a serious head injury were airlifted to hospital.

NSW Ambulance said three other people were treated at the scene for abrasions and minor injuries then airlifted to Westmead Hospital by a second rescue helicopter.

Emergency services are at the scene which will be examined by Crash Unit Investigators.

The young girl's death takes NSW's road toll to seven.

The national road toll period runs from midnight December 23, 2013 until midnight January 3, 2014, local times, in line with the Australia New Zealand Policing Advisory Board.

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Quakes sink part of Mexico highway near US

A section of a Mexican highway near the US border has collapsed after a series of small earthquakes. Source: AAP

A 275-METRE section of a Mexican highway near the US border has collapsed, sinking about 30m after a series of small earthquakes.

Mexico's federal highway authority says the collapse occurred about 93km south of the border city of Tijuana.

The road leads to the port city of Ensenada, on the Baja California peninsula.

The agency said on Saturday the road was closed in the early morning hours, after the collapse was detected.

The agency said the collapse was caused by seven small earthquakes ranging in magnitude from 1.3 to 4.3.

It said the roadway runs over a known geological fault in the area, and that it had been raining heavily.

No injuries were reported.

Traffic was being diverted onto a smaller, non-toll highway.

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Icebreaker 100 miles from stuck ship

An Aussie icebreaker is about 100 nautical miles from a ship trapped in sea ice near Antarctica. Source: AAP

FEDERAL authorities say a rescue mission by an Australian icebreaker remains on track as it closes in on a ship wedged in sea ice near Antarctica.

A group of scientists, explorers and tourists has been stuck on the Russian research ship MV Akademik Shokalskiy about 1500 nautical miles south of Hobart for the past five days.

Although the expedition's leader says spirits among those on the ship remain high, a retired Brisbane teacher aboard as a tourist says frustration is building.

Two icebreakers have given up on efforts to push through the thick and dangerous ice floes near Antarctica to try to free the trapped research vessel.

A third icebreaker, Australia's Aurora Australis, is on its way to the stranded ship and is due to arrive about 11pm (AEDT) on Sunday.

It is the last ship in the area that will be able to help.

The Australian Maritime Safety Authority (AMSA) says Aurora Australis is about 85 nautical miles from the trapped ship.

"The Aurora Australis remains on track to arrive in the vicinity around 11pm AEDT," an AMSA spokeswoman said in a statement.

If the icebreaker can't battle through the ice, AMSA says a second option may be to consider ferrying trapped passengers with a helicopter.

The locked-in ship, with 74 people on board, including several New Zealanders, sent a distress call on Christmas Day after becoming trapped in heavy sea ice.

The ship had been undertaking the Spirit of Mawson voyage, which is retracing Sir Douglas Mawson's Antarctic expedition.

Professor Chris Turney of the University of NSW is leading the expedition, consisting of scientists, explorers and enthusiasts undertaking climate research.

He insisted during several interviews with international media outlets that everyone was in good spirits despite the ordeal.

But retired Brisbane teacher Kayleen Lawson, aboard the stricken vessel as a tourist, said frustration was building.

"It was meant to be the trip of a lifetime, and it still is ... but it's turning out a little differently to what I expected," Ms Lawson told News Corp during a satellite phone interview.

The Aurora icebreaker is rated at being able to push through ice slightly deeper than one metre thick.

China's Snow Dragon icebreaker, which came within six and a half nautical miles of the stuck ship before turning back out of safety fears, is standing by in case its helicopter will be needed.

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Gambler rewards honest US cabbie with $10K

A US gambler who left behind $US300,000 in a cab has handed over $US10,000 to the honest driver. Source: AAP

A POKER player who left $US300,000 ($A338,275) in the back seat of a Las Vegas taxi made good on his promise this week, handing over a $US10,000 reward to the honest cabbie who returned the stash.

Yellow Checker Star Cab Company CEO Bill Shranko confirmed Friday that Gerardo Gamboa had been paid by the poker player. The cab company also honoured the driver's good deed by naming him employee of the year, awarding him $US1000 and giving him a gift certificate to a Las Vegas steakhouse.

It's unclear how Gamboa plans to spend the belated Christmas gift. He did not immediately return a call from The Associated Press on Friday.

The tale, first reported by the Las Vegas Review-Journal, started Monday when Gamboa accepted a fare at the Bellagio casino. A hotel doorman noticed a brown paper bag on the back seat and handed it to him; Gamboa thought it was sweets.

The driver said he had another passenger by the time he began wondering what kind of chocolates were in the brown paper bag. He peeked inside at a traffic light and spotted the cash.

"I told my passenger, 'You are my witness on this'," the 13-year taxi driver told the Las Vegas Sun, "and then I immediately called my dispatcher".

Gamboa took the six bundles of $100 bills to the company's main office, where Las Vegas police and casino officials linked it to the poker player.

It took several hours to verify the identity of the owner and return the cash. Authorities aren't identifying the poker player.

Before he learned about the anonymous gambler's gift, Gamboa said he wasn't in it for the money.

"If he doesn't give me anything, that's OK," Gamboa told the Sun earlier this week. "I'm not waiting for any kind of return. I just wanted to do the right thing, and I appreciate what the company did for me."

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China one-child policy change approved

CHINA'S top legislature has sanctioned the ruling Communist Party's decision to allow couples to have a second child if one parent is an only child.

It's the first major easing in three decades of the restrictive national birth planning policy.

Implemented around 1980, China's birth policy has limited most couples to only one child, but has allowed a second child if neither parent has siblings or if the first born to a rural couple is a girl.

The official Xinhua News Agency said the standing committee of the National People's Congress approved a resolution on Saturday to formalise the party decision.

It says the national lawmaking body has delegated the power to provincial people's congresses and their standing committees to implement the new policy.

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Searchers for tramper find body

A BODY has been recovered from the bottom of a 100-metre cliff in Nelson Lakes National Park in New Zealand by searchers looking for British tramper Andrew Wyatt.

The body is yet to be formally identified, police say.

The body was below the Lake Constance Bluff, which is on Mr Wyatt's intended route between Blue Lake Hut and Waiau Pass.

Four ground teams, one dog team and a communications team were flown into the park by Air Force Iroquois on Friday to resume the search for Mr Wyatt after the weather improved.

He had been missing for 12 days.

The search was suspended on Christmas Day due to bad weather.

A helicopter spent three hours visiting all the huts in the area on Monday.

Mr Wyatt arrived in New Zealand on November 21 and was last seen on December 15 at Blue Lake Hut.

He planned to walk the Te Araroa Trail that links Cape Reinga to Bluff.

Police have been in daily contact with Mr Wyatt's parents in the UK.

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Sydney woman charged with attempted murder

Police have charged a woman with attempted murder after a man was stabbed in Sydney's west. Source: AAP

A WOMAN who allegedly stabbed a man numerous times on Christmas Eve at a granny flat in Sydney's west has been charged with attempted murder.

Police said they were called to a house on Woodville Road, Guildford after reports of a fight between a man, 43, and 26-year-old woman, about 12.30pm (AEDT) Tuesday.

After returning home, the man was assaulted in the house's granny flat by the woman and two other men, police believe.

They allege the woman stabbed the man three times in the neck, arm and shoulder, before the fight spilled out onto the road.

The man and woman collapsed, and the two other men fled the scene in a ute.

The pair were taken to hospital and the woman was arrested on her release.

She has been charged with causing grievous bodily harm with intent to murder, and wounding with intent to cause grievous bodily harm.

She was granted conditional bail yesterday and will face Parramatta Local Court on January 16.

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Man badly burned preparing Christmas lunch

A NSW man was airlifted to a burns unit after being injured in an explosion while preparing lunch. Source: AAP

A NSW man is being airlifted to a specialist burns unit after being injured in an explosion while he prepared Christmas lunch.

The 62-year-old man in Shell Cove was found by police and rescue services with burns to his face, arms and legs.

Police were told the man was preparing the family's Christmas lunch when the explosion occurred.

They are investigating reports the gas bottle to the barbecue was connected incorrectly.

The man was airlifted to Concord Hospital for treatment.

Police hope to speak with the injured man once he is well enough to get a clearer idea of how the explosion happened.

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WA police concerned for missing woman

Police are concerned for a woman who disappeared from Albany, a day after arriving from Queensland. Source: AAP

POLICE are concerned for a 79-year-old woman who disappeared from Albany on Christmas Eve, a day after arriving from Queensland.

Joan Hanson went missing from Caledonia Crescent at Goode Beach at 5.30pm (WST) on Tuesday.

Police say they are concerned for the welfare of Ms Hanson, believed to be suffering dementia and unfamiliar with the area.

She is of small, slim build and has grey hair.

She was wearing glasses, light-coloured trousers, a yellow-brown shirt, a yellow zip-up sleeveless vest and white shoes when she went missing.

Anyone with information is asked to call the Police Operations Centre on 131 444.

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Vic shoppers battle last-minute crowds

LEGO and Barbie have been selling for more than 100 years between them but are still among the most sought-after Christmas gifts in Victoria this festive season.

Shoppers leaving it late had to battle big crowds throughout the state, with around seven per cent of Victorians buying last minute presents on Christmas Eve, the Australian National Retailers Association (ANRA) says.

More than $1.46 billion will be spent nationwide in the two days before Christmas, with Victorians stumping up around $233 million on presents alone.

David Jones regional manager Lyn James said despite continuing growth in online shopping, many Victorians still preferred to visit retail stores and purchase gifts personally.

"People love the stores and the experience of being able to touch and feel what they want to buy," Ms James said on Tuesday.

"The trend is definitely around the very last minute," she said.

"This Christmas for children it has been about Lego and Barbie," Ms James said when asked about top selling items.

For adults, it's all about smelling good this festive season with perfumes and cologne among the top stocking stuffers.

Retailers are predicting about $29.6 billion in sales across the Christmas period, a jump of 5.4 per cent on 2012.

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Alleged Hells Angel charged over drug haul

AN alleged Hells Angels bikie has been charged after a police raid uncovered crystal methylamphetamine with a street value of $42,000.

Police also seized $1190 in cash and a small amount of cannabis during the search of a home at Brassall, in Ipswich.

A 30-year-old Brassall man has been charged with two counts of supplying dangerous drugs and one count of possessing dangerous drugs, possessing drug paraphernalia and possession of explosives (ammunition and fireworks).

He will face the Brisbane Magistrates Court on Friday.

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NZ shares rally with 'bargain-hunting'

NEW Zealand shares have rallied as offshore investors saw value in a market that has lagged global peers in recent days.

The NZX 50 Index rose 41.444 points, or 0.9 per cent, to 4722.635 on Monday. Within the index, 33 stocks rose, 11 fell and six were unchanged. Turnover was $93 million.

A2 Corp led gainers, rising 6.7 per cent to 80 cents.

Hallenstein Glasson Holdings rose 4.5 per cent to $3.70, leading some retailers higher after Paymark said spending in the first three weeks of December was 6.9 per cent up on the same period last year, suggesting retailers may be in for a strong Christmas.

Michael Hill International rose 3.7 per cent to $1.41 and Kathmandu rose about three per cent to $3.48. Warehouse Group slipped 0.5 per cent to $3.65.

Among market heavyweights, Fletcher Building rose 1.8 per cent to $8.54 and Telecom rose 1.3 per cent to $2.34. Auckland International Airport gained two per cent to $3.55.

"There's been a few people looking to pick up a bargain," said Greg Easton, an adviser at Craigs Investment Partners.

"We've lagged the rest of the world."

Guinness Peat Group fell 1.7 per cent to 58.5 cents after saying the UK Pensions Regulator had issued warning notices over two of its pension plans.

Chorus, the network operator, fell 1.4 per cent to $1.445.

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Goodman Fielder sells biscuits business

FOOD producer Goodman Fielder is selling its biscuits business in Australia to Green's Foods, generating proceeds of $17 million.

But the company will record a non-cash impairment of between $50 million and $55 million in its half year accounts as a result of the sale.

The business produces sweet and savoury biscuits, with brands including Paradise, Cottage, Vive and Veri Deli.

Goodman Fielder chief executive Chris Delaney said the transaction was consistent with the company's strategy of focusing on core categories and brands.

Goodman Fielder also produces spreads, flour and dressings, with brands including MeadowLea, Olive Grove and White Wings.

"The biscuits business is not core to our grocery division, and we formed the view that this business can maximise its potential under different ownership," Mr Delaney said.

Green's, which is Australian-owned and operated, said the acquisition would secure the jobs of more than 300 employees.

It said the acquisition of Goodman Fielder's biscuits business would make Green's the second largest Australian-based biscuit manufacturer and the largest Australian-owned biscuit company.

The transaction is expected to be completed by the end of February 2014.

Shares in Goodman Fielder were 1.5 cents higher at 66.5 cents on Monday.

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Iraqi general among 24 killed in attack

Twenty-four Iraqi military personnel have been killed in an attack in western Iraq. Source: AAP

TWENTY-FOUR Iraqi military personnel, including a senior commander, have been killed in an attack in western Iraq, according to police.

A series of back-to-back bombings on Saturday occurred as troops were raiding a hideout of insurgents with suspected links to al-Qaeda in Anbar, west of Baghdad.

The senior officer killed was identified as Major-General Mohammed al-Karawi, the commander of the Iraqi army's Seventh Division.

The dead also included intelligence officers, police said.

At least 35 soldiers were wounded in the attack, which prompted the authorities to put security forces on heightened alert in the mainly Sunni province, media reports said.

Military reinforcements have been sent to Anbar in preparation for the launch of a large-scale campaign in the area, reports said.

In the aftermath of the attack, Prime Minister Nuri al-Maliki vowed an "iron-fist" policy to tackle the insurgents.

"I call on personnel of our brave army to strike with an iron fist against the heads of the evil minority, and pursue them everywhere until Iraq is purged of their wickedness," he said.

An increase in attacks by insurgents in recent months has raised the prospect of a return to the violence that pushed Iraq to the brink of civil war in 2006 and 2007.

According to UN estimates, 659 people were killed in attacks in Iraq in November.

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Man critical after CBD assault

Police would like to speak to this man in relation to a serious assault in Brisbane's CBD early Sunday morning. Source: Supplied

Police would like to speak to this man in relation to a serious assault in Brisbane's CBD early Sunday morning. Source: Supplied

A MAN has come forward over a bashing in Brisbane CBD overnight, which left another man with critical injuries.

A man voluntarily attended Petrie police station a short time ago and is currently speaking with detectives.

The other man is still in hospital in a critical condition with life threatening injuries.

EARLIER, police relased CCTV images of a man as part of ongoing investigations into the serious assault of a man in Brisbane's CBD.

Police are searching for a man who intervened in a couple's fight, seriously injuring a 38-year-old man in the early hours of Sunday morning.

The couple were arguing on the footpath of Queen Street near the intersection with Wharf Street around 4am when an unidentified man stepped in, seriously injuring the 38-year-old.

Brisbane region detective inspector Ian Park said the partner of the injured Arana Hills man was by his bedside in hospital.

"She's very upset obviously by what's happened," he said.

He said the man today remained in Royal Brisbane and Women's Hospital in a critical condition with serious injuries after being resuscitated at the scene.

Insp Park said alcohol may have been a factor.

"I guess it's a fair assumption that at 4 o'clock there is going to be alcohol involved, so we would appeal to people to just be careful with alcohol and look after themselves and each other and not to drink to excessive levels, which is always a deadly cocktail."

There were reports that people performed CPR on the man before paramedics arrived.

Alessandro Vosolo, who is staying on the 44th floor of the building, said the fight sounded violent and lasted less than four minutes.

"Fighting, screaming, arguing like guys getting thrown around, that sort of thing," he said.

One witness said he was on the 20th floor of the hotel and heard the fight.

"A dude got beat up... We heard it but then police rocked up."

Police insp Park said a number of witnesses had already been interviewed but appealed for more people to step forward, particularly the man, understood to be Caucasian and in his 30s, who was involved in the fight.

The injured man was taken to the Royal Brisbane and Women's Hospital in a critical condition.

"Initial information suggests that a man and a woman were seen arguing on the footpath of Queen Street near the intersection with Wharf Street when another man intervened just before 4am," police said in a statement.

Police said the two men were then involved in a fight in which a 38-year-old Arana Hills man sustained a serious head injury.

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Detective inspector Ian Park said police were also investigating the assault of a man who got into a fight with a hotel staff member at the Orient about 4.30am.

A 37-year-old man fell down the stairs and suffered serious head injuries when his head hit the concrete pavement.

"I believe the may have been a disagreement between this person and a staff member but as to what actually took place is subject to investigation," Insp Park said.

The man was taken to the Princess Alexandra Hospital where he is in a serious condition.

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In a third incident, a man was allegedly glassed in the face at the Family Nightclub on McLachlan St in the Fortitude Valley about 3am Sunday.

Police said a 19-year-old was struck in the face with a glass, receiving cuts to his cheek area. Police said the man did not have life-threatening injuries.

A spokesman said security staff and patrons stopped the alleged attacker and held him until police arrived.

A 20-year-old Calamvale man has been charged with assault occasioning bodily harm. He is due to appear in the Brisbane Magistrates Court on Monday morning.

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Vic teenagers bash man, steal car: police

A GANG of teenagers attacked and robbed a Melbourne man in the hallway of his residential care home before they fled with his car, police say.

The teenagers, aged 14 to 17, had been driving for hours towards the NSW border when they were finally stopped about 250km from the man's home, a police spokeswoman said.

Two of them jumped out of the car and fled into the bushes, only to be flushed out by the dog squad about an hour later.

The teens, who are still being questioned, are accused of assaulting the 47-year-old man in Dandenong around 1am (AEDT) on Saturday.

The man had to be taken to hospital following the attack, where he had his personal belongings and car stolen.

Police later spotted the car north of Melbourne near Kilmore, but had to call off a pursuit when it failed to pull over and kept driving on the wrong side of the highway.

The car ran over a spike belt around 5.30am near Winton.

The two girls and three boys were arrested at the scene but have not yet been charged.

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Brisbane man accused in US over Silk Road

US prosecutors have accused Brisbane man Peter Phillip Nash of being one of the central figures in the hidden, encrypted internet "black-market bazaar" Silk Road.

It is alleged the Silk Road website was used by several thousand drug dealers to distribute hundreds of kilograms of heroin, cocaine, LSD and other illegal drugs and illicit goods to more than 100,000 buyers around the world over the past two and a half years.

Nash, 40, was employed since January 2013 by Silk Road's San Francisco-based owner Ross William Ulbricht, known by the alias Dread Pirate Roberts, as the primary moderator of the website's discussion forums, prosecutors said.

Nash, who went by the aliases "Batman73" and "Anonymousasshit", was named in an indictment unsealed on Friday by prosecutors in New York.

He was arrested in Brisbane by Australian Federal Police on Friday and faces extradition to the US.

Two other alleged Silk Road employees, Andrew Michael Jones, 24, of Virginia, and Gary Davis, of Ireland, were also named in the indictment.

Ulbricht paid the site administrators and forum moderators salaries ranging from approximately $US50,000 to $US75,000 ($A56,590 to $A84,885) per year for monitoring user activity on the Silk Road website, responding to customer service inquiries and resolving disputes between buyers and vendors, it is alleged.

The trio is charged with one count of money laundering conspiracy, which carries a maximum sentence of 20 years in US federal prison.

They are also charged with narcotics conspiracy and conspiracy to commit computer hacking.

Ulbricht was arrested in San Francisco on October 1.

Preet Bharara, the US attorney for the southern district of New York, praised the help of the Australian Federal Police with the investigation into Nash.

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Govt backs Rio to help NT town

THE federal government has backed Rio Tinto to take the lead in helping unemployed Nhulunbuy residents as part of closure of the mining giant's alumina refinery.

Rio met with workers on Thursday to reveal its three-stage timetable to close the loss-making Gove refinery in the Northern Territory (NT) by July next year, putting more than 1,000 people out of work.

Rio also released a statement late on Friday outlining a plan to assist the town.

Among the strategies were offering fly in-fly out work to Rio projects in other areas; and financing transitional support and mentors for local businesses and specifically Aboriginal businesses.

Nhulunbuy residents along with NT Labor MPs Warren Snowdon and Lynne Walker have called for a package similar to the federal government's $60 million commitment to communities affected by Holden's closure in four years time.

Some locals say all the federal government has done is refer them to Centrelink.

Gove's closure will decimate the town of only about 4,000 people.

Ms Walker, Nhulunbuy's NT MP, said the Territory's chief minister Adam Giles was allowing Rio to walk away in a short, brutal time frame compared to Holden and Ford's planned departures over several years.

"Industrial shutdowns usually occur over a minimum two-year time frame to allow for alternative job creation," she said.

NT attorney-general John Elferink said the government had placed demands on Rio to ensure the needs of Nhulunbuy locals were met as well as possible.

Federal Industry Minister Ian Macfarlane's view is that the alumina refinery's closure and Nhulunbuy's dependence on Rio Tinto is not comparable to the closure of one industry in a part of Adelaide or Victoria such as Holden or Ford's exit.

Senior Commonwealth officials will visit Nhulunbuy in early January in the first of regular meetings with the community, Rio Tinto and the Northern Territory government, he said.

"The Australian government will work closely with stakeholders to provide the community the support it needs without duplicating what Rio Tinto and the Northern Territory government are doing."

Rio's bauxite mine will continue in the region, retaining about 350 workers.

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WA stolen generation test case fails

AN Aboriginal family split up by the West Australian government's past policy of forcibly removing indigenous children has lost a Supreme Court bid for compensation.

Donald and Sylvia Collard, from the wheatbelt town of Kondinin, were seeking redress from the WA government after their seven children were removed without consent by state officials and placed in state care between March 1958 and December 1961.

The action was considered by the Aboriginal Legal Service of WA (ALSWA) to be a test case for thousands of other indigenous West Australians.

But on Friday, WA Supreme Court Justice Janine Pritchard dismissed the case.

Members of the Collard family were present to hear the outcome and were devastated by the decision, ALSWA chief executive Dennis Eggington said.

They had shown unwavering courage and resilience in sharing their traumatic stories for the case, for the benefit of all members of the stolen generations.

"This test case was more than a case for the Collard family alone," Mr Eggington said.

"It was a test case for thousands of our people who were also stolen from their families and we knew that this case could have the capacity to rights the wrongs of the past.

"You cannot underestimate how difficult this process was for family members but they persevered and can hold their heads high in the knowledge that they played such a significant role in this historical case."

The Collard family is taking time to consider the decision, which was explained in a complex 410-page judgment, and whether to take the matter further.

Lavan Legal, which lodged the writ in May 2010, acted on a pro bono basis.

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Big paper mill fire still burns in Sydney

EXTRA ladder trucks have been called to a large blaze at a Sydney paper mill where more than 100 firefighters are battling to stop it spreading to surrounding buildings.

The fire broke out in stacked bales of paper at the mill at Matraville around 11am (AEDT) on Thursday but later spread to a three-storey building.

Three fire engines with ladders were deployed to pour water on the fire but further ladder trucks were called later in the afternoon, with the fire taking hold in the roof of an adjacent unoccupied factory.

A Fire & Rescue NSW spokesman said firefighters had extinguished burning oil at the site but it could take a long time to contain the main blaze.

He said the paper bales where the fire took strong hold could burn for days.

Workers were evacuated from the site but no injuries had been reported.

Botany Road was closed eastbound at Macauley Street in Port Botany on Thursday afternoon, with motorists being diverted into Beauchamp Road.

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Missing man's body believed to be in grave

POLICE believe they will soon know if a missing South Korean man's body is in shallow grave found in southwest Brisbane.

Detective Inspector Rod Kemp says two men and one woman were arrested on Wednesday night over the disappearance of 28-year-old Min Tae Kim.

Their enquiries led them to a shallow grave in the suburb of Algester on Thursday morning.

Det Insp Kemp says blood was found near the site, where forensics officers are preparing to exhume the contents.

They hope to know by Friday if it is Mr Kim's body.

"It could be a dog, we do have fears that is human though and it is the missing person," he said.

Mr Kim, 28, was last seen by his housemates at their Cannon Hill home about 2.45pm (AEST) on Monday.

He had gone out to exchange $15,000 cash into South Korean won with an unknown person he had contacted through the Gumtree website but he never returned home.

His disappearance comes less than a month after 22-year-old South Korean woman Eunji Ban was murdered in a CBD park on her way to work.

When asked what it would mean if Mr Kim could be the second Korean murdered in Brisbane in a month, Det Insp said it would be shocking.

"If it is and if he has been brutally murdered, it's a shocking thing for us," he said.

Det Insp Kemp said Koreans had nothing to fear specifically but also warned international students to be aware they can be targeted by criminals.

"Obviously it's a strange environment for them, they can be seen as a soft target at times," he said.

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Bega doctor can appeal against sentence

FORMER NSW doctor Graeme Reeves has won the right to appeal against his sentence.

But Reeves, who was found guilty in 2011 of removing Carolyn DeWaegeneire's clitoris and genitals, has lost his appeal against his conviction.

The NSW Court of Criminal Appeal will now consider whether Reeves' sentence should be reduced.

Reeves was originally sentenced to three-and-a-half years jail with a non-parole period of one year, but the Director of Public Prosecutions appealed against the inadequacy of the sentence.

In February this year, the NSW Court of Appeal found the sentence to be grossly inadequate and re-sentenced him to five-and-a-half years, with a non-parole period of three-and-a-half years.

Reeves appealed to the Court of Criminal Appeal then the High Court in October.

The High Court on Wednesday said the appeal court had erred by failing to dismiss the appeal by not "taking into account evidence of Reeves' deteriorating health and the imminent expiry of his non-parole period".

Reeves' appeal against his conviction - based on an error in direction from the trial judge - was dismissed.

The High Court found that the Court of Criminal Appeal had identified and applied the correct test for consent to surgery, which requires that the patient be informed in broad terms of the nature of the procedure.

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First death from new bird flu strain

A 73-year-old woman in China has died from a new strain of bird flu, health experts say. Source: AAP

A 73-YEAR-OLD woman in China has been confirmed as the first person to die from a new strain of avian influenza, health experts said.

The unidentified woman died of respiratory failure on December 6, six days after she was admitted to a hospital in the eastern province of Jiangxi suffering from severe pneumonia, the provincial health authority said.

Tests confirmed that she was infected with the H10N8 bird flu virus, which was not previously detected in humans, it said.

Medical staff monitored the woman's close contacts but found no similar symptoms, leading experts to conclude that "we should initially consider it an isolated case."

"There is low risk that the virus can cause human infection and transmission," the health authority said.

The woman had reportedly visited a live poultry market.

China has reported 142 cases, including 45 deaths, of another new bird flu strain, H7N9, since it was first detected in March.

In October, the World Health Organisation said it found no evidence of "sustained human-to-human transmission" of the H7N9 virus.

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Researchers discover 'small dog syndrome'

SMALL dogs may suffer from a canine equivalent of short man syndrome, researchers believe, making them more aggressive and prone to mount people and objects.

Regardless of breed, the smaller the dog is, the more likely it is to be unruly, aggressive, noisy and prone to "humping", according to a study by the University of Sydney.

"Our research shows that certain physical characteristics in dogs are consistently associated with certain types of behaviour," said Professor Paul McGreevy from the Faculty of Veterinary Science.

"Essentially, the shorter the dogs the less controllable their behaviour is for their owners.

"Undesirable behaviours such as owner aggression, or mounting, occur more often among small dogs."

The study, published in journal PLOS One, examined owners' reports of 8000 dogs from across 80 breeds. It found that 33 of 36 undesirable behaviours in dogs could be associated with height, body weight and skull shape.

"When average body weight decreased, excitability and hyperactivity increased," said Professor McGreevy.

Further studies will address whether these bad behaviours seen in small dogs are a result of nature or nurture.

"This suggests that, in small dogs, these behaviours are tolerated more than they would be in larger dogs where such behaviours are more unwelcome and even dangerous."

"Equally, such behaviours in small dogs may be a result of their being overindulged and over-protected," he said.

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N. Korea swears loyalty to young leader

NORTH Korean leader Kim Jong-Un has presided over a mass gathering of military and party officials that was broadcast live on state television at a time of growing concern over the stability of his hardline regime.

The ceremony in central Pyongyang, marking the second death anniversary of Kim's father and former leader Kim Jong-Il, included a number of speeches that stressed unquestioning loyalty to the young supremo and included a stark warning to rival South Korea.

It followed the shock execution last week of Kim Jong-Un's uncle and one-time political mentor, Jang Song-thaek.

The purge raised questions about factional infighting at the top of the North Korean hierarchy and prompted both Seoul and Washington to warn of possible provocative acts by the nuclear-armed regime.

State television showed the massed ranks of tens of thousands of military and party officials sitting stony-faced in pin-drop silence for several minutes, before rising to greet Kim Jong-Un with thunderous applause as he arrived to take his place on the leadership podium.

"We should be warriors to safeguard the party centre with our lives ... with the conviction that we know no one but the great comrade Kim Jong-Un," North Korea's ceremonial head of state, Kim Yong-nam, said in an opening address.

He added that the country had made "great strides" in the two years since Kim took over the reins of power after his father's death.

Under Kim's leadership, North Korea has successfully placed a satellite in orbit and in February this year conducted its third - and most powerful - nuclear test.

"By holding the respected comrade Kim Jong-Un in high esteem ... our country will prosper as the country of eternal sun," Kim Yong-nam said.

Tuesday's mass meeting also heard a keynote address by top military leader Choe Ryong-hae - who some analysts believe had a hand in the ouster and execution of Jang.

"Our revolutionary forces know ... no one but comrade Kim Jong-Un," said Choe, a close Kim Jong-Un confidant who holds the military rank of vice marshal and is director of the Korean People's Army's General Political Department

The military will support "our supreme commander, under any storms and hardships", said Choe, who also fired off a warning at rival South Korea.

"If the enemies drop a single drop of fire on our motherland, our soldiers will immediately storm out to wipe out all the invaders and achieve unification," he said.

At a meeting of top defence and national security officials on Monday, South Korean President Park Geun-hye had warned that the recent leadership shake-up in the North could presage some aggressive behaviour from Pyongyang.

"We can't rule out the possibility of contingencies such as reckless provocations," Park said, urging the military to step up vigilance along the heavily fortified border.

Meanwhile in New York UN Secretary-General Ban Ki-moon called Jang's execution "very dramatic and surprising" and urged the country's neighbours not to take any "premature actions", the AP reported.

Ban, a former South Korean foreign minister, expressed hope there will be no increase of tensions on the Korean peninsula.

In his first public comments on the execution, Ban also urged North Korea's leaders to work to denuclearise the peninsula.

He stressed that North Korea must focus on improving the living conditions of its people and comply with Security Council resolutions, which it has long ignored.

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Kiwi extends gains over Aussie dollar

THE New Zealand dollar has extended its rally against its trans-Tasman counterpart as the divergence between the neighbouring economies makes New Zealand interest rates more attractive.

The kiwi rose as high as 92.49 Australian cents on Monday, the highest since October 2008, trading at 92.40 cents at 5pm in Wellington from 92.26 cents on Friday in New York.

The NZ dollar traded at 82.78 cents from 82.56 cents at 8am and 82.63 cents on Friday in New York.

The kiwi has been making fresh five-year highs against its Australian counterpart as the slowing economy in Australia and burgeoning local recovery underline the different stages of the interest rate cycle each nation's central bank is in.

New Zealand's Reserve Bank is keen on hiking rates next year, while Australia's is sitting on record-low rates to keep the stimulus coming.

Investors will be looking to see any hint of an easing bias when the minutes to this month's Reserve Bank of Australia policy meeting are released on Tuesday.

"Their central bank is quite determined to get the Aussie dollar lower to get a more sustainable mix in their economy," said Dan Bell, head of corporate sales at HiFX in Auckland.

"It looks like the kiwi/Aussie could get up to the 95 cent level" over the next month before it "runs out of puff," he said.

The kiwi fell to 85.04 yen at 5pm in Wellington from 85.31 yen on Friday in New York, and was little changed at 60.16 euro cents from 60.19 cents.

The trade-weighted index was steady at 77.92 from 77.90.

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Wesfarmers sells underwriting operations

DIVERSIFIED conglomerate Wesfarmers is selling its Australasian insurance underwriting operations to Insurance Australia Group (IAG) for about $1.85 billion - its biggest ever divestment.

Wesfarmers managing director Richard Goyder said the sale followed approaches by a number of parties that were interested in the underwriting business.

Wesfarmers had spent a lot of money in recent years getting the Australian and New Zealand insurance underwriting business into much better shape.

"But it hasn't delivered satisfactory returns on average over the last five years to Wesfarmers," Mr Goyder told reporters.

"And over a period of time, if any of our businesses don't generate satisfactory returns, we'll look and see what we do with it."

Mr Goyder said the sale of the insurance underwriting business also reduced some of the risk in Wesfarmers' portfolio of industrial, mining, retail and financial businesses.

There was inherent volatility in the insurance business because of catastrophic events like earthquakes in New Zealand, and Cyclone Yasi.

The sale does not include the insurance division's broking operations in Australia, New Zealand and the UK, and its Australian and New Zealand premium funding businesses which will remain part of Wesfarmers.

Wesfarmers expects a pre-tax profit of about $700 million to $750 million from the transaction, which will be included in the financial results for the second half of the 2014 financial year.

Mr Goyder said Wesfarmers had not yet decided what to do with the proceeds from the sale.

The sale is subject to regulatory approval, which is expected to take several months.

The acquisition comprises Wesfarmers' underwriting companies trading under the WFI and Lumley Insurance brands, and a 10-year distribution agreement with Coles.

IAG chief executive Mike Wilkins said the acquisition was a compelling strategic fit for IAG.

"Acquiring these businesses supports the group's strategic priorities of accelerating profitable growth in Australia and sustaining our market-leading position in New Zealand, and we expect attractive EPS (earnings per share) accretion," Mr Wilkins said.

IAG expects the acquisition will lift earnings per share by a modest amount in the first full year of ownership and by at least five per cent in the second year.

The acquisition will be partly funded from a $1.2 billion placement of shares to institutional investors, at $5.47 per share.

The integration of Wesfarmers' underwriting businesses is expected to generate pre-tax net benefits of about $140 million a year, with a significant proportion derived from reinsurance.

The integration process is expected to be substantially complete within two years, with pre-tax integration costs of $120 million.

Shares in Wesfarmers were 20.5 cents higher at $41.51 at 1515 AEDT. IAG shares are in a trading halt until the start of trading on Wednesday, December 18. They last traded at $5.70.

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Police officer stabbed in the neck

A 28-YEAR-OLD man has been charged with attempted murder after a north Queensland policeman was stabbed in the neck during a national crackdown on alcohol-fuelled violence.

The officer was stabbed with a knife at a Townsville bar about 12.30am (AEST) on Saturday and was rushed to hospital in a serious condition.

"His injuries were significant but luckily he is fit enough now to continue his recovery at home," a police spokesman told AAP on Sunday.

The 33-year-old officer was taking part in Operation Unite, a blitz on alcohol-related crime across Australia and New Zealand.

His alleged attacker was arrested at the scene.

Another officer sustained an injury to his hand during the incident.

A 28-year-old Townsville man has been charged with attempted murder, serious assault of police while armed, entering premises with intent to commit an indictable offence, possession of a knife in a public place and creating a disturbance in licensed premises.

He was also charged with two counts of obstructing police and is due to appear in the Townsville Magistrates Court on Monday.

Premier Campbell Newman said assaults of police attracted serious penalties.

"Assaults on police are totally unacceptable on all accounts," he told reporters on Sunday.

"People who assault police need to know there are significant penalties."

The maximum penalty for assaulting a police officer was increased from seven to 14 years and the murder of a police officer attracts a non-parole period of 25 years under tough penalties introduced by the Newman government last year.

A total of 430 arrests were made in Queensland during the crackdown on alcohol-fuelled assaults, anti-social behaviour and drink-driving across Australia and New Zealand since Friday night.

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I don't expect marriage bill, says Abbott

PRIME Minister Tony Abbott says he does not expect gay marriage legislation to come before parliament, despite a senior colleague saying it is "likely" coalition MPs will be allowed a conscience vote on the issue.

As attention shifts from the High Court's decision to strike down ACT gay marriage laws, Liberal MP Malcolm Turnbull said if he were given a free vote "I will certainly vote in favour of a marriage equality bill".

Legislation to allow gay marriage was voted down in the last parliament, with then opposition leader Tony Abbott refusing to allow his party a conscience vote.

But Mr Turnbull, a supporter of gay marriage, believed that could change if the issue is revisited in the next three years.

"I think it is likely that we will (have a free vote), but as Tony Abbott has said, it is a decision for the party room, not for him," he told Sky News on Sunday.

Mr Turnbull said it was too early to predict whether the new parliament would back same-sex marriage legislation, but added that Australia was lagging behind other countries such as New Zealand, the UK, Canada and the United States.

"So people of the same sex can get married in Auckland and Wellington, Toronto and Ottawa and Vancouver, in New York and Los Angeles, and Baltimore, in Cape Town, but not Australia," Mr Turnbull said.

"It does start to look as if we're the ones out of step."

However, Mr Abbott gave no indication of allowing a free vote on same sex marriage, instead saying he did not expect legislation to come before the parliament.

"I'm not expecting any legislation to come before the parliament because when legislation came before the last parliament it was fairly decisively dealt with," the prime minister told reporters in Sydney.

"But if legislation comes before the parliament, it will be considered by our party room in the usual way.

"It is really up to individual members of parliament to propose private member's bills if that's what they want."

Deputy Labor leader Tanya Plibersek has announced she will introduce a private member's bill to legalise gay marriage, but only if Mr Abbott allows a conscience vote.

She has also called on Mr Turnbull to co-sponsor the legislation, but the eastern Sydney MP ruled out such a move.

"I can't co-sponsor a private member's bill because I'm a member of the cabinet," Mr Turnbull said.

Gay marriage advocate Rodney Croome said Mr Turnbull's comments reflected growing support within the coalition for a conscience vote and the principle of marriage equality.

"An increasing number of Australians feel embarrassed by the fact that marriage equality has moved forward in countries that are our closest friends and allies, including New Zealand, the UK, the US and Canada," Mr Croome said in a statement.

The Greens Sarah Hanson-Young last week introduced a same-sex marriage bill into the Senate.

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US court lifts ban on horse slaughter

A US appeals court has lifted a temporary ban on domestic horse slaughter. Source: AAP

A US appeals court has lifted a temporary ban on domestic horse slaughter, clearing the way for companies in New Mexico, Missouri and Iowa to open while an appeal stemming from a lawsuit by animal protection groups proceeds.

The issue has divided horse rescue and animal welfare groups, ranchers, politicians and native American tribes about what is the most humane way to deal with the country's horse overpopulation, and what rescue groups have said is a rising number of neglected and starving horses as the west deals with persistent drought.

The 10th US Circuit Court of Appeals in Denver lifted the emergency injunction it issued in November after the Humane Society of the United States and others appealed the ruling of a federal judge in Albuquerque.

The judge had decided the US Department of Agriculture (USDA) followed proper procedure in issuing permits to the slaughter companies.

The plants would become the first horse slaughterhouses to operate in the US since 2007. Congress effectively banned horse slaughter by eliminating funding for inspections at the plants in 2006.

It restored that funding in 2011, but the USDA did not approve the first permits for horse slaughterhouses until this summer.

Lawyers for the plants have argued that the plaintiffs are in court because they are morally opposed to horse slaughter and are looking for a way to delay the plants while they lobby Congress for a ban.

Proponents of a return to domestic horse slaughter point to a 2011 US government report that shows horse abuse and abandonment have increased since domestic horse slaughter was banned.

Wayne Pacelle, the president and chief executive of the Humane Society of the United States, calls the practice barbaric and says blocking a return to domestic horse slaughter "is an issue of national importance and scale."

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Two hurt, shooter dead at US school

A US teenager who may have had a grudge against a teacher has opened fire at a Colorado high school. Source: AAP

A TEENAGER who may have had a grudge against a teacher opened fire with a shotgun at a Colorado high school, wounding two students before killing himself.

Quick-thinking students alerted the targeted teacher, who quickly left the building.

The scene unfolded on the eve of the Newtown massacre anniversary, a sombre reminder of the ever-present potential for violence in American schools.

Arapahoe County Sheriff Grayson Robinson identified the shooter on Friday night as 18-year-old Karl Halverson Pierson.

The shooter entered Arapahoe High School armed with a shotgun and looking for a teacher he identified by name, Sheriff Robinson said.

"(The teacher) knew he was the target and he left that school in an effort to try to encourage the shooter to also leave the school," the sheriff said. "That was a very wise tactical decision."

One of the wounded students, a girl, was taken to hospital in serious condition. The other student suffered minor gunshot-related injuries.

Two suspected Molotov cocktails were found inside the school, the sheriff said. One detonated but no one was injured.

Within 20 minutes of the report of a gunman, officers found the suspect's body inside the school, Sheriff Robinson said.

Students were seen walking toward the school's running track with their hands in the air, and television footage showed students being patted down.

Authorities concluded that Pierson had acted alone.

Nearby neighbourhoods were jammed with cars as parents sought their children.

Several Denver-area school districts went into lockdown as reports of the shooting spread. Police as far away as Fort Collins, about a two-hour drive north, stepped up school security.

The practice of sending law enforcement directly to an active shooting incident was developed in response to another Colorado school shooting that shook the nation: in 1999, two teenage shooters killed 12 classmates and a teacher at Columbine High School before killing themselves.

Arapahoe High School is 13 kilometres from Columbine.

More recently, a shooter killed 12 people at a movie theatre in Aurora, another Denver suburb, in 2012.

A slate of gun control measures, including ammunition magazine limits and expanded background checks, were this year approved by Colorado lawmakers.

Two state lawmakers were ousted in recall elections after voting for the measures, and a third resigned to avoid a recall. The backlash was a reflection of the divide in a state known for its hunting and where gun ownership is a treasured right.

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Milat murder appeal angers victim's family

THE great-nephew of serial killer Ivan Milat wants his murder sentence halved, infuriating the family of the boy he slaughtered.

Teenage axe murderers Matthew Milat and Cohen Klein are appealing the severity of the sentences handed down last year for the murder of their friend David Auchterlonie in Belanglo State Forest in November 2010.

David was murdered on his 17th birthday.

Milat was sentenced to at least 30 years, with a maximum term of 43.

Klein was jailed for at least 22 years, with a maximum 32-year term.

Deputy senior public defender John Stratton SC, representing Milat, told the Criminal Court of Appeal that although it was a heinous crime, it "was not in the worst class" of murder.

Instead, he put forward a maximum 22-year jail term with a non-parole period of 15 years.

Mr Stratton submitted to the judges various cases where murderers had their sentences cut, and that there was little evidence of torture.

But Justice Robert Hulme said nine months after the killing, Milat wrote chilling letters that showed "unrepentant enjoyment at the prospect of callous murder".

Justice Hulme called the reduction to a 22-year sentence "bold".

Klein's barrister, Janet Manuell SC, said Milat was the "dominant" one - who found the weapon, organised to bring the victim to the forest, struck the blow and bragged about it later.

"The role of (Klein) was one of support and facilitation," Ms Manuell said.

"There was some evidence of remorse."

David's mother, Donna Locke, spoke to reporters outside court as friends unfurled an Aboriginal flag behind her with "R.I.P David Always" written on it.

"I'm disgusted and outraged and hurt, as it's ridiculous and wrong to think that we are back here today," Ms Locke said.

"David was not given a chance to appeal his death sentence.

"They deserve to be there for the rest of their lives and take their last breath in jail, and leave in a body bag to the morgue just like my son left the forest."

Ms Locke said Milat was trying to be a "copycat" of Ivan Milat and that if the pair could commit such a callous crime at such a young age, they're bound to reoffend.

The axe attack took place in the same NSW Southern Highlands forest where Ivan Milat murdered seven backpackers in the early 1990s.

Crown prosecutor Nicole Noman SC, who is opposing any reduction in the sentences, said the killing was planned, premeditated and a "thrill kill".

"Each of them performed a different ... but meaningful role to make sure this planned murder occurred," Ms Noman said.

"It was cold, it was calculated ... it was not momentary."

Ms Noman said Milat at one stage asked Klein if he could "feel the adrenaline".

After the killing, Klein mentioned to Milat that he was "going down the path of his uncle" and showed "a form of admiration", she said.

The three-judge appeal panel will make its decision at a later date.

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Queensland Motorways to be auctioned

QUEENSLAND Motorways will be auctioned off by the Queensland Investment Corporation (QIC).

Treasurer Tim Nicholls had said on Thursday there were no plans to sell QIC, but chief executive Damian Frawley announced on Friday they'd auction off the road toll division, believed to be worth more than $5 billion.

The government-owned corporation will continue to manage money on behalf of numerous public and private sector pension funds.

Mr Frawley said there had been significant interest in 100 per cent ownership of Queensland Motorways from domestic and international investors.

"Conducting a traditional auction process is in the best interests of maximising the return to Queensland's Defined Benefit Fund, which holds the Queensland Motorways investment," he said.

Queensland Motorways manages five motorways including the Gateway, Logan motorways, Legacy Way, the Go Between Bridge and the CLEM7 tunnel.

The Newman government has promised not to proceed to with any asset sale without a mandate, but has ordered scoping studies into the sale of power generators CS Energy and Stanwell and the lease of Townsville and Gladstone ports.

Premier Campbell Newman has hosed down suggestions he might be eyeing an early election to boost the books sooner rather than later.

But he said the government still had a lot of work to do to deal with the former Labor government's legacy of debt.

"We intend to go full term in Queensland," he said.

Big business is keen to buy Queensland's electricity generators, but small business is wary, the Chamber of Commerce and Industry Queensland (CCIQ) says.

CCIQ general manager Nick Behrens says there is an equally strong investor appetite for both, but small business is yet to be convinced.

They want to know if the sale of generators will push up power prices, which are already tipped to increase by about 13 per cent next year if the carbon tax is not repealed.

"CCIQ has called on the scoping studies to also examine outcomes in the area of price and service to ensure they are not compromised should these assets be sold," Mr Behrens says.

Private companies that invest would borrow at a higher rate than the government, prompting unions and the opposition to claim Queenslanders will pay more for electricity.

"It is going to mean higher infrastructure costs," shadow treasurer Curtis Pitt said.

"Electricity consumers will have to pay for the higher cost of borrowing for the private sector, and then the private sector profit margin.

"And they are going to be demanding profits."

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Fares up and bus route changes for Sydney

Public transport fares will increase next year as the NSW government redesigns Sydney's bus system. Source: AAP

SYDNEY commuters may have to travel further to reach their bus stops next year and pay more to climb aboard following a raft of transport changes.

The NSW government's 20-year plan to redesign Sydney's bus system aims to streamline more than 600 bus routes.

The plan, Sydney's Bus Future, will introduce a three-tiered network and see more rapid routes, like the existing metrobuses.

The rapid routes will link major centres and create a "turn up and go service" with a bus every 10 minutes on weekdays.

However, routes will see fewer stops and commuters may have to walk further to reach them.

Transport Minister Gladys Berejiklian announced the plan on Thursday, along with a public transport fare increase to start on January 5.

Opposition Leader John Robertson slammed the plan, saying it would create longer queues at fewer bus stops.

Customers on "suburban" routes will get a bus at least every 10 minutes in peak times and every 15 minutes during the day on weekdays.

"Local" services will have buses stopping every 400 metres.

The new plan's 13 "rapid" routes will link Sydney's hubs, but will only stop every 800 metres to one kilometre.

The government says the bus route changes will see 1.5 million Sydneysiders living within a 10 minute walk to "turn up and go" services on rapid or suburban routes.

Sydney Business Chamber executive director Patricia Forsythe said the government recognised that increasing buses was the problem, not the solution, for traffic congestion.

"The metro bus routes have been very popular and the development of more rapid services that have reduced stopping patterns, but faster trips, will be very attractive to passengers who travel over longer distances," she said.

The Tourism & Transport Forum supports the plan, but deputy chief executive Trent Zimmerman wants more services to Olympic Park.

"We are disappointed the plan does not include express bus services from Strathfield to cater for a growing workforce and we encourage the government to keep the door open on improving bus links to Olympic Park," he said.

While the government says it will not increase MyZone fares in line with an IPART recommendation, there will be an increase in line with CPI.

The hike will range between a 20 cent increase on single adult tickets up to a $2 increase for MyMulti weekly tickets.

However, Opal fares will remain unchanged.

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Aged care, child care workers left out

The Abbott government has withdrawn funds set aside by Labor to give aged care workers pay rises. Source: AAP

THE government has consigned aged care workers to the same scrap heap as child carers, say Labor, the Australian Greens and the workers' union.

A $1.1 billion fund to help give pay rises to aged care workers has been dumped days after the government scrapped a similar fund for child care workers.

It says neither fund would have covered all the workers in the sectors and the requirement for enterprise agreements was "unionism by stealth".

"It was a flawed and inequitable system with a clear objective of coercing union membership in the sector," Social Services Minister Kevin Andrews and his assistant minister Mitch Fifield said in a joint statement on the aged care fund.

They will move the money back into the general aged care pool and consult the sector about the best way to use it.

United Voice, the union representing child care and aged care workers, said both sectors struggled to attract and retain quality workers due to low pay rates.

"Workers across both sectors are reeling at the meanness of these decisions and concerned about the impact on their family budgets as they miss out on these much needed pay increases," national president Michael Crosby said.

It was particularly galling the decisions came right before Christmas, he said.

Opposition spokesman on ageing Shayne Neumann said the government had abandoned low-paid workers.

"(Prime Minister) Tony Abbott is the Christmas Grinch and his government has done nothing this week except dump on workers," he said.

The Greens warned that returning the $1.1 billion to general funding made it more likely to be targeted in the commission of audit looking for cuts.

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Govt defends special visas facing axe

The federal government wants to remove a protection visa for refugees introduced by Labor last year. Source: AAP

LABOR has warned the removal of a special visa created to protect people facing persecution could see some women subjected to honour killings or genital mutilation.

The federal coalition government wants to remove a protection visa for a specific class of refugees and give the immigration minister the final say on individual cases.

The visas were created by the former Labor government to protect people who didn't meet the full refugee criteria but would be at risk of serious harm if returned to their homeland.

But the government claims the visas were being granted to people who had committed serious crimes and others fleeing because of links to criminal gangs or involvement in blood feuds.

Opposition immigration minister Richard Marles said since the visas began in March 2012, they'd only been used a handful of times, but were critical for the people they applied to.

"Examples of them are people who may face honour killings in the country from which they have come," he told the lower house on Wednesday.

"Women who may, if they are returned, be subjected to genital mutilation."

Any decision by the department to grant such a visa was reviewable, making the process efficient and transparent, he added.

Liberal MP Alex Hawke said the opposition didn't understand the visas were providing a product to people smugglers who were not genuine refugees.

He said the small number of people eligible for the visas would always get protection from Australia and would continue without the current arrangement.

"There's no question that Australia will continue to meet its international obligations in relation to asylum," he said.

Immigration Minister Scott Morrison said handing the power to decide cases back to the minister, which was the case until 2012, would restore the best mechanism for deciding cases "flexibly and constructively" and reduce the risk of abuse and vexatious court action.

Mr Morrison said endangered people - like women fleeing honour killing or genital mutilation - would still be protected.

The Migration Amendment (Regaining Control Over Australia's Protection Obligations) Bill 2013 was passed by 85 votes to 53 and now goes to the Senate.

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Vic ambos say pay dispute will drag on

Several hundred Victorian paramedics have rallied to demand a better pay deal from the government. Source: AAP

VICTORIAN paramedics say they are in for the long haul in their bitter pay dispute with the government and will keep fighting until they get the result they want.

Several hundred paramedics rallied on the steps of the Victorian Parliament on Wednesday, demanding the government improve its recent 12 per cent pay offer.

Dressed in red T-shirts, the paramedics presented a bundle of 23,000 signatures supporting their cause to Opposition Leader Daniel Andrews, who will deliver them to Premier Denis Napthine.

The state government late last month offered paramedics an extra six per cent immediately and further rises of three per cent a year in 2015 and 2016, plus a $1500 sign-on bonus.

But paramedics say the latest pay offer is effectively a 12 per cent increase over five years and will mean they are the nation's highest trained, but lowest paid.

Steve Gibbs, whose 23-year-old son Matthew died after having to wait 16 minutes for an ambulance, said he was proud to offer every paramedic his full support.

"I'm here to let each and every paramedic know that they do have the full support of not only the community, but my wife and I," he said.

Mr Gibbs said he watched as five professional paramedics worked tirelessly on his son and they showed commitment that he would never forget.

He said Victoria's paramedics are world class and should be paid as such.

Ambulance Employees Association general secretary Steve McGhie said the dispute was far from over.

"Today we are here to let the premier know we will not take the offer that they have put on the table at the moment, it has to be improved," he told the rally.

"This fight is not going away until we get a winning result. We are in it for the long haul."

Health Minister David Davis said last month the new offer was a significant increase.

"I believe the offer is a very fair offer that will see not only a fair outcome for paramedics and their families ... but also an outcome that is fair to taxpayers," he said.

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Dexus lifts earnings guidance

DEXUS Property Group has upgraded its earnings guidance as a result of a buyback of securities and the net impact of Dexus's investment in the Commonwealth Property Office Fund (CPA).

Dexus also says its office and industrial portfolios are performing solidly.

Dexus on Tuesday lifted its earnings guidance for the 2014 financial year to 8.29 cents per stapled security, from 8.15 cents per security - up seven per cent on the 2013 result.

"Today's increase in guidance is evidence of our focus on enhancing value and returns to investors," Dexus chief executive Darren Steinberg said in a statement.

"Both the re-instatement of the buy-back in July 2013 and our use of an efficient derivative structure for the investment in CPA, reflect our active approach to capital management."

Dexus will distribute 3.07 cents per security for the six months ending December 31, 2013 - up 6.2 per cent on the prior corresponding period.

Dexus is aiming to pay a full year distribution of 6.24 cents per security.

Dexus securities were two cents higher at $1.035 at 1021 AEDT.

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Qld public servants' pay rise unfair:union

THE Christmas gift Queensland public servants received from the premier is good but not that great, their union says.

If fact, they'd like to exchange it for something better in the New Year.

The Together Union says the 2.2 per cent pay rise Premier Campbell Newman gifted them isn't really that festive because it doesn't match the one politicians received.

"It's definitely a result getting workers a well-deserved pay rise before Christmas but it's not enough," assistant secretary Kate Flanders told reporters on Tuesday.

"These people should have at least got what the politicians got, which was three per cent backdated.

"The fight continues for our members."

But Mr Newman says the state's 48,000 public servants wouldn't be getting a boost to their pay packets if he hadn't personally intervened in the 18-month wage battle.

He says the government's efforts to give the core public service a pay rise since mid-2012 had been "stymied at every turn by the Together Union".

"I'm delighted to have broken the impasse," Mr Newman said.

"The whole process was going nowhere. It's well and truly overdue."

He said the government is using a section of the Public Service Act to give "core" public servants a pay rise now, rather than having to wait up to another year for the arbitration process to be finalised.

His office said the first increase will be paid by early February 2014, but it will apply to leave loading payments from December 1, 2013.

It follows a recent decision by the Queensland Industrial Relations Commission to grant ambulance officers a 2.2 per cent pay rise.

Ms Flanders said the Together Union had knocked back two previous pay rise offers of 2.35 per cent and 2.2 per cent because the conditions attached to them were unfair.

Public servants were anxious about job security and it was important that was safeguarded in any new agreement, she said.

Opposition deputy leader Tim Mulherin said he was yet to see details about the pay rise.

"But what we have seen with the Newman government is that they've tied the hand of the industrial umpire," he told reporters.

"The industrial umpire had to bring down a result that reflected what the government wanted."

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Jobless rate to stay just short of 6%

Jobs figures out on Thursday are expected to show a slight rise in the unemployment rate. Source: AAP

JOBS growth is still sluggish and the unemployment rate is expected to remain a little under six per cent for the coming months.

Official labour force figures will be released on Thursday, and the unemployment rate is expected to rise 0.1 percentage points to 5.8 per cent, according to an AAP survey of 13 economists.

The number of people with jobs is forecast to have increased by 10,000 in November, compared to a rise of 1,100 the month before.

JP Morgan Australia chief economist Stephen Walters said recent economic indicators do not point to a turn around in the weaker parts of the economy.

"Employment growth has been dismal in the second half of 2013, with the economy shedding a net 16,000 jobs over the past six months," he said.

"Weak employment growth has not had the expected impact on the jobless rate, however, largely due to the continued decline in labour force participation, which is tracking at multi-year lows.

"In this week's release, our forecast looks for a 10,000 gain in jobs, which, with an unchanged participation rate, should bring the jobless rate up to 5.8 per cent."

The participation rate - the percentage of the working-age population either in work or looking for a job - is expected have stayed at a seven-year low of 64.8 per cent for the third month in a row in November.

ANZ head of Australian economics Justin Fabo said the labour market will remain weak as the economy has a bumpy transition away from being one that is mainly driven by mining investment.

"The resources boom is now moving into the operational/production phase which is expected to be less labour intensive than the investment phase," he said.

"While this will likely see net exports contribute strongly to gross domestic product (GDP) growth over the next few years, growth in domestic demand and employment is likely to remain more subdued."

Mr Fabo said the jobs growth is not keeping up with employment growth and that will keeping the unemployment rate relatively high in November and the coming months.

"The unemployment rate is expected to have increased modestly to 5.8 per cent.

"ANZ forecasts the unemployment rate to remain between 5.75 per cent and six per cent for several months.

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Burn gone wrong causes WA bushfire

A BURN-OFF gone wrong has turned into a bushfire that is threatening homes in Dwellingup south of Perth.

The out-of-control and unpredictable blaze has prompted a watch and act alert to be issued for people near Pinjarra Williams Road, in the eastern part of Dwellingup.

More than 30 firefighters are on the scene using a front-end loader, a bulldozer and water bombers.

The initial cause of the blaze is believed to be a burn on private land.

Emergency authorities say there is a possible threat to lives and homes as the fire, with flames up to two metres high, is approaching the area and conditions are changing.

Pinjara Williams Road is closed, and motorists are being warned to avoid the area and be aware of fire and emergency services working on site.

The bushfire is said to be rapidly moving south-west towards the eastern part of Dwellingup, and has already burned through three hectares.

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Labor about values, not revenge: Bowen

TONY Abbott and Bill Shorten are heading to South Africa for Nelson Mandela's memorial service while MPs prepare to battle for some key coalition legislation in the final sitting week of federal parliament.

Shadow treasurer Chris Bowen says Labor's moves to block the coalition in parliament are not motivated by revenge.

The party's position is about staying true to its values, he says, in a sign the government can expect more frustrations in the final sitting week for the year.

But the business of government will continue, with the coalition likely to suffer mixed fortunes on its legislation.

While the Greens have thrown the coalition a lifeline on debt, the stoush over the carbon tax is unlikely to be resolved despite the prime minister's threats of keeping parliament open until Christmas.

After a deal between the government and Greens, amendments that scrap the debt ceiling are expected to pass through the Senate on Monday.

But the government will have less success on another coalition pledge - laws to abolish the carbon tax and its associated entities, such as the Clean Energy Finance Corporation.

With Labor accused of being obstructive, and of seeking revenge against Mr Abbott for his own obstructionism in opposition, Mr Bowen said: "We'll call it as we see it, and we'll call it on its merits."

"It's not revenge. It's staying true to our values," he told Sky News on Sunday.

"When people vote Labor, they expect us to stay true to our values, and we'll be doing that."

Environment Minister Greg Hunt on Sunday demanded Labor back the carbon tax repeal, which the opposition and Greens have vowed to block.

"We don't want delays. We don't want excuses," he told reporters in Melbourne.

"This is the week when the carbon tax should be voted upon and should be repealed.

"The Australian people voted. They chose a new government. They chose to repeal the carbon tax."

Question Time is expected to be dominated by debate over the future of the car industry and Qantas, as well as the secrecy behind the government's immigration policies.

But the prime minister and opposition leader won't be taking part until Thursday, when they are expected to return to the hurly burly of Canberra.

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Free transport urged for fire recovery

THE NSW government should provide free bus and train rides to and from the Blue Mountains these holidays to help businesses recover from the October bushfires, the state opposition says.

The government needs to encourage visitors back with the message that the Blue Mountains is open for business, Opposition Leader John Robertson says.

Analysis by Blue Mountains Lithgow & Oberon Tourism and Blue Mountains Economic Enterprise estimates 200 jobs and more than $47 million in tourism revenue have been lost in the six weeks following the bushfires.

Domestic day trips alone are estimated to be down by more than 144,000.

Mr Robertson says there are dozens of bus and train services to the Blue Mountains every weekend.

"These public transport services should be free and promoted across the Sydney Trains network to encourage families and tourists to plan a trip to the mountains."

Opposition transport spokeswoman Penny Sharpe says she's written to Transport Minister Gladys Berejiklian asking that Labor's proposal be implemented immediately, effective until the Australia Day long weekend.

"For a family of two adults and two children it would cost $34.80 on a Saturday to travel from Central to Springwood by train ... that's $34 better spent in a Blue Mountains small business."

Blue Mountains Mayor Mark Greenhill says many visitors had been scared away by the bushfires.

"We have hundreds of thousands of hectares of world heritage listed National Park with breathtaking scenery, pristine waterways and amazing walking tracks," he said.

"We welcome any proposal that encourages visitors and their wallets to our region."

Ms Berejiklian said in a statement that the NSW government had announced funding for a campaign to encourage tourists to visit the Blue Mountains and continued to work with the community to help those impacted.

"An auction of Sydney Trains lost property items held on Saturday raised thousands of dollars that will be donated to victims of the Blue Mountains bushfire," she said.

The minister also said the government had announced residents would not be charged for water used to defend their homes during the bushfires.

Fees to replace documents such as birth certificates and driver licences had also been waived along with fees for taking bushfire waste to the tip, Ms Berejiklian said.

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Abbott, Shorten to attend Mandela service

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

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

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

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

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

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

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

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Choppers, 16 crews battle fire

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

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

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

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

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

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

GALLERY: Reader pictures of Sunshine Coast blaze

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

"It's getting bad," she said.

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

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

GALLERY: Reader pictures of Sunshine Coast blaze

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

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

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

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

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

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

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

GALLERY: Reader pictures of Sunshine Coast blaze

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

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

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

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

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

GALLERY: Reader pictures of Sunshine Coast blaze

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Govt to remove special protection visa

The coalition will remove a protection visa for a specific class of refugees created by Labor. Source: AAP

THE federal government will remove a protection visa for a specific class of refugees created by Labor and give the immigration minister the final say on individual cases.

Since the visas began in March 2012, only 57 cases had satisfied the requirements on complementary protection grounds.

They were created to protect people who don't meet the full refugee criteria but would be at risk of serious harm if returned to their homeland.

The main aim was to protect women fleeing honour killings and genital mutilation.

However, Immigration Minister Scott Morrison said the visas were being granted to people who had committed serious crimes in their homelands and others fleeing because of their links to criminal gangs or involvement in blood feuds.

While Australia accepted its obligation not to return people when they could face harm, it had no obligation to follow a particular process or to grant a particular type of visa.

As well, the process created by Labor was complicated and convoluted.

Mr Morrison told parliament he intended to remove the complementary protection criterion from the Migration Act.

"It is the government's intention to re-establish the consideration of complementary protection issues within an administrative process," he said on Wednesday.

"It will allow the Minister for Immigration and Border Protection to exercise his or her intervention powers to grant the most appropriate visa dependent upon the individual circumstances of the case."

Australian Greens Senator Sarah Hanson-Young said Mr Morrison wanted the power to determine cases on his own and it shouldn't be allowed.

"Do we really want to see Mr Morrison in charge of saying which refugees deserve protection and which don't. Mr Morrison is drunk on power," she told reporters.

Debate on the Migration Amendment (Regaining Control Over Australia's Protection Obligations) Bill 2013 was adjourned.

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Sanook dies playing with his favourite toy

LITTLE Sanook loved playing with his favourite toy but somehow the fun-loving elephant calf's head became so tangled up in the suspended tyre that he stopped breathing.

The 11-month-old died at Melbourne Zoo on Tuesday night playing with the tyre he frequently used and that was also previously enjoyed by his sister and brother.

Melbourne Zoo director Kevin Tanner described the death as a tragic and unforeseen accident but said the zoo would continue to use the tyres for its elephants.

He said tyres were commonly used in zoos around the world as a form of enrichment for elephants.

"We have removed the tyre that caused the death but tyres out in the yard will remain," he said.

The elephant calf has been described by staff as a very playful character, loved by many at the zoo.

Zookeepers say Sanook's mother Num-Oi has been spending time alone on Wednesday and suggest that this might be her grieving process.

"Our keepers are keeping a very close eye on them," Mr Tanner said of the herd.

The death of Sanook is also having an impact on the zookeepers.

"Our elephant team are devastated, they are all extremely upset about the situation but they are extremely professional people and they wanted to tend to the elephant herd first," Mr Tanner said.

Sanook's death came as shock as he was playing energetically and suckling from Num-Oi as usual on Tuesday.

CCTV footage showed him playing with the suspended tyre in his barn on Tuesday evening when he managed to manoeuvre it in an unusual way that caused his head to become caught.

An autopsy confirmed that the pressure on his neck prevented him breathing.

"We were worried about infectious disease. That was our first thought because there was no signs of trauma," the zoo's head vet Dr Michael Lynch said.

The timing is bittersweet for zoo staff with Asian elephant Dokkoon 22-months pregnant and due on Thursday.

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SA govt says finances in better shape

THE South Australian government claims the state's finances have stabilised despite forecasts of increased deficits in each of the next two years.

Releasing the mid-year budget review on Tuesday, the government has revealed a $350 million boost to the state's bottom line in 2012/13 thanks to a fall in government spending and increased revenue in some areas.

But that won't stop the deficit rising to a projected $955 million in 2013/14, $44 million more than originally forecast in the state budget earlier this year.

The red ink will continue the following year when the deficit is tipped to be $511 million, $80 million than first thought.

Premier and Treasurer Jay Weatherill says the deterioration in the operating balance is modest and the budget will still return to a $303 million surplus in 2015/16.

He says the mid-year review also shows that net state debt will be lower than originally expected in each year of the forward estimates.

"This is a budget that is on track, it's improved," Mr Weatherill said.

But Opposition Leader Steven Marshall said Mr Weatherill was pretending the budget was improving at the same time that economic growth, employment growth and government revenue had been revised down.

According to the mid-year figures the government expects the state economy to grow by 2.25 per cent in 2013/14, 2.5 per cent in 2014/15 and 2.75 per cent in 2015/16.

Employment growth is expected to be just 0.25 per cent during the current financial year before rising to one per cent in 2014/15 and 1.5 per cent in 2015/16.

The government has also forecast tax revenues to be down in the coming years due to lower payroll tax and gaming machines returns and lower conveyancing duties.

GST returns have been revised up for 2013/14 but are tipped to fall in the following years.

Mr Weatherill said the government was confident of reaching its fiscal targets and the release of the mid-year figures, earlier than usual, put pressure on the state opposition to reveal how it would fund its promises ahead of the state election in March.

Mr Marshall said the early release of the mid-year review was because the premier knew the budget figures would be far worse in January.

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Vic govt safer after Shaw charges dropped

Dishonesty charges against Independent Victorian MP Geoff Shaw have been dropped. Source: AAP

THE Victorian coalition's narrow grip on government is a little safer after criminal charges were dropped against the man who holds the balance of power.

Independent MP Geoff Shaw was facing 24 dishonesty charges over the alleged misuse of his parliamentary car and fuel card, and if convicted would have lost his seat in parliament, triggering a by-election that could have brought down the government.

But in a shock move on Tuesday, prosecutors dropped the case.

"I was very pleased," a relieved Mr Shaw told reporters outside his Frankston office.

"It just means I just go about doing what I do at my home here in Frankston. That's doing the best I can for this great area."

Director of Public Prosecutions John Champion SC said he withdrew the charges after deciding there was not a reasonable prospect of criminal conviction in the matter.

Mr Shaw may still be found to be in contempt of parliament by parliament's privileges committee, which is examining the matter after Ombudsman George Brouwer found the MP used his parliamentary car for commercial purposes.

Acting Opposition Leader James Merlino said that after the scathing ombudsman's report into the matter, it was a very convenient decision for Mr Shaw and Premier Denis Napthine that the only penalty would come from parliament.

"Most Victorians will think that something stinks about this decision," Mr Merlino told reporters.

"It is hard to understand at how, at this late stage in the process, the DPP doesn't think there is a reasonable prospect for a conviction.

"How can it be right that the only sanction Geoff Shaw will receive is a wet-lettuce slap on the wrist from a parliamentary committee dominated by his Liberal mates?"

Corrections Minister Edward O'Donohue said the decision not to proceed with charges was made by an independent body.

"The DPP is independent of government and it's made its decision based on the material at its hand."

Prosecutors last month consented to a defence request that Mr Shaw's charges be dealt with by the court diversion program.

But Magistrate Charlie Rozencwajg rejected the agreement that would have allowed Mr Shaw to avoid a guilty finding and therefore be allowed to keep his seat.

Mr Shaw did not rule out returning to the parliamentary Liberal Party on Tuesday, saying he hadn't closed his doors at all.

But Mr O'Donohue does not expect he will be back.

"I think the premier has said previously very clearly, he does not anticipate any situation where Geoff Shaw would come back into the parliamentary Liberal Party," Mr O'Donohue said.

The privileges committee suspended its investigation while the matter was before the courts but said in a report last week that it had not come to any conclusions about the allegations against Mr Shaw.

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