Global equities sell-off spills into NZ

NEW Zealand stocks have joined a global sell-off amid concerns high-growth companies may struggle to convert sales into profits.

Led lower by biotech firm Pacific Edge and software developer Xero, the NZX 50 Index fell 24.058 points, or 0.5 per cent, to 5091.431 on Friday.

Within the index, 28 stocks fell, 11 rose and 11 were unchanged. Turnover was $101.8 million.

Equities across Asia followed Wall Street lower, after the biggest daily decline on the tech-heavy Nasdaq Composite Index since November 2011.

Pacific Edge was the biggest decliner on the local market, closing 9.8 per cent loweer at $1.10 after an intraday decline of 15 per cent to $1.04.

Xero fell 5.3 per cent to $31.35, while milk marketer A2 Milk slipped 3.5 per cent to 84 cents.

"Dragging the index lower today are Pacific Edge, Xero, A2 Milk - so all the companies that don't make any money," said Bryon Burke, head of equities at Craigs Investment Partners.

"Stocks that have moved higher today are high yield stocks, so New Zealand is reflecting what's happening in the rest of the world."

Fletcher Building, New Zealand's largest listed company, rose 0.6 per cent to $9.70 and Sky Network Television advanced 0.5 per cent to $6.48.

Friday was the last day investors could buy Genesis Energy shares before the government lists 49 per cent of the state-owned energy provider and retailer on April 17.

Mighty River Power rose 0.2 per cent to $2.16, Meridian Energy advanced 0.4 per cent to $1.15 and Contact Energy slipped 0.4 per cent to $5.31.

Shares in Chorus fell two per cent to $1.73 after it sought leave to appeal a High Court judgment upholding the Commerce Commission's determination setting the regulated prices on the telecommunications network operator's copper lines.

The company also suspended its dividend reinvestment plan.

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Boys 'assaulted' with gas soldering torch

A MAN and woman have been charged with assaulting two young children with a soldering torch, a hammer, rope and sticks.

Family and Community Services (FACS) staff removed three boys aged five-months-old, eight and 10 from a home in the St George area, in Sydney's south on Tuesday.

Police raided the home on Thursday and seized a rope, sticks, a gas-powered soldering torch and a hammer; all of which were allegedly used on a number of occasions to assault the eight-year-old and 10-year-old boys.

A 33-year-old man and a 30-year-old woman who were caring for the children were arrested and faced Sutherland Local Court on Friday.

The man was charged with four counts of assault occasioning actual bodily harm, while the woman was charged with one count of assault occasioning actual bodily harm.

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WA union call for Labor senator to resign

A KEY union affiliated with the Labor party has called for West Australian senator-elect Joe Bullock to step down.

Mr Bullock was first on Labor's senate election ticket in Saturday's WA Senate election re-run.

His preselection was mired in controversy after he knocked off sitting Labor senator Louise Pratt for the top spot on the ticket in a factional deal.

Senator Pratt is likely to lose her seat once counting is concluded in the next fortnight, with the Liberals taking three of the six seats.

Mr Bullock issued an apology last week over a speech he made in 2013 in which he described Senator Pratt as a "poster child" for gay marriage, said Labor members were "mad" and saw himself as a bulwark against "every weird lefty trend".

United Voice WA secretary Carolyn Smith said Mr Bullock's comments were "inexcusable".

"In light of his recent comments we no longer believe he is fit to represent the ALP in the Australian senate," Ms Smith said in a statement on Thursday.

"He should seriously consider resigning his position."

United Voice was part of the factional deal that led to Mr Bullock being in the top spot on the Labor ticket.

The deal delivered the Left's Sue Lines, a former assistant national secretary of United Voice, the WA Senate seat made vacant by the retirement of former minister Chris Evans in 2013.

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Transurban collects 12.9% more tolls

Transurban collected $273.8m more proportional revenue on its toll roads during the March quarter. Source: AAP

THE upgrade of Sydney's major Hills M2 toll road contributed to a near 13 per cent jump in Transurban's quarterly revenue.

The toll road operator and owner increased toll revenue by 12.9 per cent to $221.7 million for the March quarter compared to the prior corresponding period.

Proportional toll revenue, which measures revenues relative to its ownership stakes, increased 12.7 per cent to $273.8 million compared to the same period last year.

But it was below the December quarter's $281.3 million.

Toll revenue from the Hills M2 road jumped 40.3 per cent to $48.4 million.

Transurban said its Sydney network had continued its strong performance.

That reflected continued growth in the northwest corridor from the M2 upgrade, completed last August, with average traffic growth in Sydney up 10.9 per cent for the quarter.

"It has been eight months since the M2 upgrade was officially completed and we are continuing to observe strong growth in that corridor, which reflects the travel time savings that project delivered to motorists," chief executive Scott Charlton said in a statement on Thursday.

Toll revenue from Transurban's biggest asset, Melbourne's CityLink, increased 6.3 per cent to $130.5 million.

Transurban is part of a consortium also bidding for Brisbane's toll road portfolio Queensland Motorways.

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Aussie tenor Skelton wins top opera award

Aussie Stuart Skelton has won the male singer of the year award at the International Opera Awards. Source: AAP

AUSTRALIAN heroic tenor Stuart Skelton has been named male singer of the year at the second International Opera Awards in London.

The 45-year-old singer from Sydney gave a surprise performance at the awards ceremony at the Grosvenor House Hotel.

Skelton was given the top gong for his performance in Benjamin Britten's Peter Grimes at the English National Opera (ENO).

The Australian beat rivals from Germany, France, Italy, the United States and Sweden.

Skelton considers the ENO his home company. His house debut was as Laca in the 2006 production of Jenufa.

"I was born in Australia, I live in the United States, but ENO is the company that has always been there," the tenor said.

"It takes risks, and when you take big risks sometimes they don't pay off, but when they do, they pay off in a way other people cant re-produce."

Skelton said opera was an art form "worth shouting and screaming for".

The female singer of the year award went to German soprano Diana Damrau.

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China and WA make live export pact

THE huge Chinese market is expected to open up to West Australian cattle producers, with a further step taken towards trial shipments.

Under a Memorandum of Understanding (MoU) signed by WA live exporters and Chinese business representatives on Wednesday, work will be done to clarify Australian and Chinese animal health and welfare protocols, paving the way for the export of live cattle from the state.

"WA has a long and proud history of producing premium quality, safe agricultural products and exporting them around the world," WA Agriculture and Food Minister Ken Baston said.

"Our ability to grow more food than required by our domestic market has led to producers looking to develop new markets overseas."

China is Australia's top export destination for agriculture and food products.

In 2012/13, WA agrifood exports to China and Hong Kong were worth more than $1 billion.

Mr Baston said demand for beef in China was strong and driven by economic growth, a rapidly-expanding middle class, and a slight contraction in domestic production.

Chinese businesses were interested in securing supply of boxed beef and potentially live exports, he said.

In October, Premier Colin Barnett witnessed the signing of an MoU with WA's sister state Zhejiang province for new trade arrangements, including live cattle.

Mr Baston said the Zhejiang agreement had provided the groundwork for the MoU signed on Wednesday and would assist future work with other provinces in China.

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Kiwi gains on lure of higher interest

THE New Zealand dollar has gained with the prospect of higher interest rates.

The kiwi rose to 86.30 US cents at 5pm in Wellington from 86.03 cents at 8am and 85.92 cents on Monday.

The trade-weighted index advanced to 80.52 from 80.31.

Traders are pricing in a 96 per cent chance of a rate hike at the Reserve Bank's April 24 meeting, according to the Overnight Index Swap curve.

New Zealand's central bank began tightening monetary policy last month as a means to head off the threat of future inflation, putting the country at the front of the cycle compared to its global peers.

That makes New Zealand rates attractive, with the yield on the 10-year government bond, at 4.63 per cent, more than half a percentage point higher than its Australian equivalent.

"We're going to get another rate hike in the next two weeks" which is still attracting investors, said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland.

"The kiwi's still got a bias to the topside."

New Zealand business confidence remained upbeat in the first quarter, according to the New Zealand Institute of Economic Research's quarterly survey of business opinion, with a net 52 per cent of firms positive on the outlook for general business.

The kiwi gained to 92.87 Australian cents from 92.63 cents on Monday after the National Australia Bank monthly business survey showed weaker sentiment among firms.

The kiwi also rose to 88.83 yen from 88.57 yen and to 62.78 euro cents from 62.71 cents.

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Tech stock tumble lowers NZX 50

A SELL-OFF of tech and growth stocks has pushed the New Zealand sharemarket lower.

The NZX 50 Index declined 44.284 points, or about 0.9 per cent, to 5031.56 on Tuesday. Within the index, 29 stocks fell, 10 rose and 11 were unchanged. Turnover was $126.9 million.

On Wall Street, the tech-heavy Nasdaq Composite fell for a third day as investors reduced exposure to companies such as Google, Apple and Yahoo.

Local tech and growth stocks which had made gains at the start of the year fell as investors questioned whether their sales growth could deliver profits.

Xero plunged 12 per cent to $31.50. The Wellington-based software company surged over 200 per cent last year but has declined 30 per cent in the past month.

Diligent, the governance app maker, fell 1.2 per cent to $4.25.

"The main stocks to get sold off here are in the IT sector, which is very similar to what happened in the States last night but the real big mover has been Xero which has come under some pretty aggressive selling for a number of days now," said Grant Williamson, director at Hamilton Hindin Greene.

"There was certainly a little bit too much hype in those stocks and everybody wanted to jump on board."

Pacific Edge, the bio-tech company which surged 109 per cent in the past year, dropped 5.4 per cent to $1.22.

A2 Corp, the milk marketer which has gained 47 per cent in the past 12 months, fell 1.2 per cent to 84 cents.

Ryman Healthcare, which rose 63 per cent in the past year, slipped 0.7 per cent to $8.33.

"Good news has really pushed those share prices above where they should have gone, probably driven by a little bit of investor hype," Mr Williamson said.

Chorus fell 1.4 per cent to $1.765. The telecommunications network provider lost its appeal to the High Court over the Commerce Commission's decision to slash pricing for access to its copper lines.

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Split over lifting price controls in NSW

NSW households are being told to expect lower power bills this winter but critics claim uncapping retail electricity prices will actually have the opposite effect.

The NSW government says it will remove regulation of retail electricity prices, meaning fixed and variable charges will be cut by 1.5 per cent.

NSW Premier Barry O'Farrell says more than one million customers on a regulated price will see the face value of their electricity charges drop.

It will be the first fall in 15 years.

"We are removing one of the main barriers to lower prices - from now on retailers will need to work harder and offer better deals to win customers," Mr O'Farrell said.

However, the opposition argues uncapping electricity prices could send domestic bills sky rocketing.

"By removing the safety net on electricity prices, consumers will see prices soar and families will find it even more difficult to pay their bills," Opposition Leader John Robertson said.

Mr Robertson said the Independent Pricing and Regulatory Tribunal's (IPART) regulated electricity prices were a safety net to stop retailers from overcharging.

In 2013, IPART and the Australian Energy Market Commission (AEMC) found the NSW electricity market was competitive and that regulation was unnecessary.

"In its report, the AEMC highlighted that customers could save $300 to $400 per year from an average household bill of $2,500, simply by taking advantage of the deals offered by electricity retailers to customers on competitive market contracts," Energy Minister Anthony Roberts said.

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Man given $10,000 after abuse: inquiry

An inquiry has heard how a resident of a Salvation Army boys home received financial compensation. Source: AAP

A MAN who had cigarette butts put out between his toes when he was a child in the care of The Salvation Army was given $10,000 compensation, an inquiry into child abuse has heard.

The army had a system by which it measured what it offered abuse victims who came forward, the royal commission hearing in Sydney was told.

Daphne Cox, a major who met with abuse victims and reported back to the army's Personal Injuries Complaints Committee (PICC), said she always believed victims.

"We accepted what we were told. The fact that it hadn't been proven didn't indicate how much we offered," she said on Monday.

A hearing held in February heard that EF, who was seven when he was placed in the Indooroopilly Boy's Home in Queensland in 1966, was violently punished and raped by Major Victor Bennett, who was the home's manager.

On Monday, the second hearing into the Salvation Army was shown a copy of a report which outlined EF's complaint including that Mr Bennett put cigarette butts out on the boy "even between his toes".

It also said Mr Bennett had pulled EF out of bed in winter and tied bricks around his feet and thrown him in a pool.

The report had "allegations not proven" written beside these two claims.

Ms Cox said part of her role was to contact other officers who would have been at the home at the time.

One told her the only punishments that they could remember was boys being made to stand in the corner and write lines.

She repeated that the lack of evidence was not a consideration in the payout. She said several times she could not recall discussions around payouts.

The commission heard the army's payment "matrix" was based on the age of the claimant when the abuse happened, the number of years they were in care and the type of abuse, physical and or sexual.

On the matrix, which was shown at the commission, payments varied from $5,000 to $80,000.

Commission chair Justice Peter McClellan asked Ms Cox if more should have been offered to EF.

"Yes," Ms Cox replied.

"The next question is why wasn't it?" Justice McClellan asked.

Ms Cox said she did not know why EF was not offered more.

Justice McClellan asked her the "allegations not proven" had influenced the offer.

"Well, looking at it now, yes it could have been," she said.

Ms Cox was answering questions on the army's claims process at the hearing, which continues.

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Police shoot man in Brisbane

A man has been shot by police responding to a domestic disturbance on Brisbane's bayside. Source: AAP

A MAN is in a critical but stable condition after being shot by police during a domestic dispute on Brisbane's bayside.

Two police officers arrived at the Capalaba unit about 7.30pm (AEST) on Saturday.

When they tried to arrest the man, the male officer was allegedly thrown through a plate glass window and was severely cut.

It is understood a policewoman responded by shooting the offender twice in the stomach.

Police Union president Ian Leavers said the situation escalated quickly.

"She made an instant decision with the view of protecting her partner's life," Mr Leavers said.

"She is heroic. These are things where you don't get time to consider your decision, you have to make it immediately.

"We're very fortunate that we're not here at the murder of a police officer."

The injured officer is in a serious but stable condition and is expected to have surgery.

It is the second police shooting at the unit complex.

In March 2011, a policewoman shot a man in the groin who had threatened neighbours.

Mr Leavers said he was tired of violence against officers and renewed calls for mandatory sentencing for people who seriously assault police.

"If you threaten the life of a police officer you should go directly to jail," he said.

"There should be no other option."

The Ethical Standards Command is investigating.

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Row continues over boat incursion secrecy

THE opposition and Greens are demanding a full and frank government account of the circumstances surrounding Australian border protection vessels' six breaches of Indonesian territory, following the release of a heavily redacted report.

Customs and Defence conducted a joint internal review into the incursions - which took place between December 2013 and January 2014 under Operation Sovereign Borders - but only the executive summary with five recommendations was publicly released in February.

AAP obtained a copy of the 55-page report, under Freedom of Information laws, but Customs cited damage to international relations among the reasons for 18 blacked-out pages and other redacted sections.

Both Labor and the Greens have been vocal in their calls for the report's full release.

The opposition's immigration spokesman Richard Marles said the Abbott government's culture of secrecy, surrounding the military-led asylum seeker boat crackdown, was deeply concerning.

"The Australian public has a right to know the exact circumstances into how and why our navy illegally entered Indonesian waters," he told AAP.

He's concerned about safety at sea as well as the impact on Australian and Indonesian relations.

The document does not disclose whether Australian border protection vessels were turning asylum seeker boats back at the time of the breaches.

Sections identifying which border protection vessels were involved and the circumstances are also blanked out.

The document shows the joint review actually made seven recommendations but two have not been made public.

Discussion about the Abbott government's policy parameters on boat turn backs - only when safe and outside 12 nautical miles from Indonesia's archipelagic baseline - was also heavily redacted.

Australian Greens senator Sarah Hanson-Young said the redacted report is just another example of the Abbott government's obsession with secrecy.

So far explanations about the breaches had been "woefully inadequate", Senator Hanson-Young said.

"It is time for Tony Abbott to... provide the Australian people with a full and frank explanation as to how Australian vessels came to breach another country's waters," she told AAP.

Last month, a Senate inquiry into the breaches found that the government's directions, to turn boats back when safe and outside of Indonesian territory, may be unachievable.

"Our defence personnel are being forced to carry out dangerous operations on the high seas and are being held as the government's scapegoat," Senator Hanson-Young said.

The review blamed the breaches on incorrect calculations of boundaries of Indonesian waters rather than deliberate actions or navigational error.

The discovery of the "inadvertent" breaches prompted the Abbott government to issue a swift apology to Indonesia.

Relations between the two countries were already under strain following revelations Australian spies tapped the mobile phones of President Susilo Bambang Yudhoyono and his wife in 2009.

Customs and Defence are still assessing whether lapses in judgment contributed to the breaches.

Training regimes are under review and revised force preparation training will be introduced by next month.

Officers will also be given special training on the United Nations convention of the law of the sea from the end of June.

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