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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Police search for missing NSW teen

POLICE are searching for a teenage boy missing from Sydney's north shore.

Justin Painter, 15, left his home on Mosman Street in Mosman at about noon (AEDT) on Sunday but has made no contact with friends or family since, police said.

He was seen getting on a ferry at Mosman shortly afterwards.

Justin is of Caucasian appearance, 190cm tall with a thin build, and short light-brown hair.

Police said he has braces and facial acne.

He is believed to be wearing skinny denim jeans and brown suede shoes, and took his wallet and keys with him.

Investigators believe Justin may be in the Balmoral, Georges Heights or Ryde areas and could be travelling by ferry or train.

Anyone with information about Justin's whereabouts is asked to contact North Sydney Police or Crime Stoppers immediately.

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Shares in construction firm Forge soar

SHARES in engineering and construction company Forge Group have soared after it got the go ahead for more work at Gina Rinehart's Roy Hill iron ore mine in Western Australia.

Forge shares gained 56 cents, or almost 55 per cent, to $1.585 on Monday, after already rising by 65 per cent last week.

In November the company's shares were suspended from trade for more than three weeks as Forge reviewed the performance of several of its projects.

The share price plunged from $4.18 to 68.5 cents when they returned to trading on the market on November 28.

The company on Monday said it had received formal notification to proceed with phase three of construction of the $1.47 billion processing facility at Roy Hill.

The contract is worth $830 million to Forge, which is carrying out the work in a joint venture with Spanish construction contractor Duro Felguera.

The contract is Forge's largest ever and, chief executive David Simpson said, it underpins the company's order book for the remainder of the 2013/14 financial year and into 2015.

"It is also encouraging to note that the Roy Hill project is progressing to schedule and that we have now commenced mobilisation to site," he said.

On Friday the company told the Australian Securities Exchange it was not aware of any reason for the strong surge in its share price in the week of Christmas, which took their value from 62 cents to $1.025.

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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

AN Australian icebreaker is closing in on a ship wedged in Antarctic sea ice as part of a second rescue mission to free the stricken vessel.

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.

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 ship and is due to arrive about 1am (NZT) on Monday.

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

The Aurora Australis was about 100 nautical miles from the trapped ship at 2pm (AEDT),(4pm NZT), the Australian Maritime Safety Authority (AMSA) said in a statement.

If it 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 Australian explorer 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.

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.

The Ministry of Foreign Affairs has said four New Zealanders are on board, but there may be as many as six, according to media reports.

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Vic braces as heat arrives, wind blows

A COOL southerly change will bring relief to firefighters battling grassfires throughout Victoria.

Fire crews have worked to control more than 40 fires that have started across Victoria on a day of extreme weather.

The Country Fire Authority (CFA) has declared a total fire ban day, with temperatures soaring to 41C in Mildura.

The Bureau of Meteorology says a cool change is rolling in across the southwestern corner of the state and will push through northeast until midnight (AEDT).

Weather bureau forecaster Peter Blake said Melbourne's temperatures could drop by eight degrees when the cool change reached the city about 5pm (AEST).

Victorian firefighters have been called out to four campfires and burn-offs.

The CFA warns that several fires are still burning, including in Tatyoon, south of Ararat, and in Canadian, south of Ballarat.

Fire crews are unable to access a large fire burning in remote land in Sunset Country, southwest of Mildura, due to its location and weather conditions.

Fire services commissioner Craig Lapsley said firefighters had done a great job, given conditions.

Mr Lapsley said extra aircraft had been deployed to help fire crews.

"Today is a day that experienced extreme fire danger in the northern parts of the state," Mr Lapsley said.

"Any fire that's running has the potential to increase in size and is a significant concern."

Mr Lapsley warned campers not to light camp fires on total fire ban days.

Victoria remains on total fire ban until midnight on Saturday.

Residents in areas that are fire-prone are urged to remain informed and alert.

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Liberian UN workers, peacekeepers face off

UN mission workers in Liberia have clashed with UN armed peacekeepers over work conditions. Source: AAP

CIVILIAN employees of the United Nations Mission in Liberia have clashed with the United Nations armed peacekeepers in a protest over what they claim are unfavourable work conditions.

An Associated Press reporter saw four UN workers manhandled by UN troops, including one who was knocked down, after the workers tried to block the main entrance to the UN base on Friday.

The workers are protesting a change in the time they are picked up for work.

They claim the UN is asking them to be outside for pickup by 5am, a time they say is unsafe in the war-recovering capital of Monrovia.

A UN officer commanding the troops declined to comment.

The UN mission was established in 2003, just after ex-warlord Charles Taylor stepped down as president and went into exile.

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Gold Coast adventurer reaches South Pole

A GOLD Coast adventurer taking a pink "boob-sled" across Antarctica has made it to the South Pole.

Dr Geoff Wilson reached the milestone on Friday, leaving him with 1100km to go in his quest to become the first Aussie - and third person - to cross the southern continent solo.

But he reckons the worst of the journey is over.

"Now I've got the shorter run to the coast, which is the traditional entry route for most polar travellers," he told ABC Radio on Friday.

"The positive is that it's down hill and it will get warmer and warmer as I get closer to the coast."

Dr Wilson has endured sub-zero temperatures and strong icy winds throughout his trek.

Earlier this month he even ventured into the elements naked, dancing around a tent to celebrate beating the Australian record for the longest trek across the icy continent.

However, his main goal is to take the "boob-sled" 3300km from one side of Antarctica to the other - and raise $1 million for breast cancer charity the McGrath Foundation.

"I've been pulling the boob-sled for 2280km to here, so it's double the current record for Australian solo polar travel already and there's still 1100km to go," he told ABC Radio.

"It will be the first Australian crossing of the Antarctic continent and there's only two other guys who have ever done it solo unassisted - they're both Norwegian legends.

"We may, as long as I keep making good decisions, give the record a shake which has been held since 1997 by a very tough Norwegian called Borge Ousland."

Dr Wilson began the trek on November 4 and expects the journey to take him up to 80 days.

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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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No laughing matter as scary clowns strike

UK clowns are up in arms about impostors who are tarnishing their name by scaring people in public places.

The copycat craze - believed to have been started by a man known on Facebook as the Northampton Clown - involves people dressing as the circus characters to surprise passers-by in public places.

Derbyshire police received 29 reports of clown sightings after social media claims that a man in the Nottingham area was dressing up and carrying balloons and a knife.

One report read: "Caller scared as someone had tried to get in to their house - posted on Facebook that a clown had been going around village trying door handles."

Another said: "Caller reported having received numerous calls from concerned parents about a clown going up to the windows of houses brandishing a gun and knife frightening the residents."

Tony Eldridge, the secretary of Clowns International, which represents the entertainers in Britain, said the problem had escalated beyond harmless fun.

"The fear of clowns - coulrophobia - is a real thing and some people will react very badly to this.

"This has nothing to do with clowning. It's a small group of people with stupid views and it spoils the fun for everybody else."

He added that most legitimate entertainers followed a code of clown conduct which includes not wearing their costume in public.

The trend emerged when the Northampton Clown, who posts photos of himself in public places, rose to prominence and gained nearly 200,000 "likes" on Facebook.

Last month Norfolk police told the public to ignore clowns after sightings around King's Lynn.

These included a person in a "full clown outfit" with a red suit and red hair chasing members of the public.

South Yorkshire police recorded 28 incidents involving people dressed as clowns.

These included a clown standing in a park, jumping out at somebody in the street and staring through the window of a house.

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US migrant stats 'can't be produced fast'

US prosecutors say they can't meet demands to deliver documents about thousands of immigrants. Source: AAP

US prosecutors say they can't meet a judge's demands that they quickly deliver documents about thousands of immigrants who've been detained across the country for months or years as their immigration statuses are reviewed.

The office of US Attorney Preet Bharara laid out the government's position to US District Judge Richard M. Berman in a letter made public on Wednesday.

The letter came five days after the judge criticised the government, saying it had been on notice since the American Civil Liberties Union (ACLU)requested the documents nearly five years ago.

The ACLU eventually filed a Freedom of Information Act lawsuit in Manhattan federal court in 2011 seeking documents from the US Department of Homeland Security and US Immigration and Customs Enforcement.

The ACLU questioned the practice of "prolonged immigration detention - for months, if not years - without adequate procedures in place to determine whether their detention is justified".

It cited a dramatic increase in the number of immigration detainees in recent decades, noting they weren't serving criminal sentences but were being detained by the thousands to ensure they're available for removal from the country if removal is ordered and appeals are exhausted.

The judge said the government's continued refusal to produce documents had stymied efforts to reform a system in which thousands of immigrant detainees, some applicants for asylum, languish in immigration jails longer than six months.

He also attacked as "painstaking and riddled with further delay" the government's process for releasing documents, saying the government hasn't produced any documents since his September 9 order to release documents, and had at times claimed it would take seven years to produce 100 files.

The government, though, said in its letter it is "not feasible" to produce documents from more than 22,000 individual files as ordered but said it can produce a reliable sample of 385 files within 15 months, with rolling releases within eight weeks of a revised order.

In 2009, The Associated Press conducted a computer analysis of an Immigration and Customs Enforcement database obtained under the Freedom of Information Act, finding there were 32,000 immigrants from 177 countries detained, including more than 18,000 with no criminal convictions.

The analysis showed that nearly 10,000 had been in custody more than a month, that 400 of those with no criminal records had been locked up more than a year, that a dozen had been held for three years or more and that one man from China had been incarcerated more than five years.

Many of the longest-term, non-criminal detainees were asylum seekers.

The analysis was referenced in the ACLU lawsuit.

According to a 2001 US Supreme Court ruling, immigrants are supposed to be deported or released within about six months.

The steady increase in the number of immigrants held behind bars grew considerably after Congress passed a pair of laws in 1996 requiring immigrants who committed crimes be locked up for deportation. The numbers continued to rise after the September 11, 2001, terrorist attacks and amid anti-immigrant political rhetoric.

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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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Cyclone could develop Christmas Day

A TROPICAL cyclone is expected to form in northern Western Australia on Christmas morning.

A blue alert has been issued for people in or near the coastal and inland communities between the WA and Northern Territory border and the Mitchell Plateau.

That includes people in Wyndham, Kalumburu, Troughton Island and surrounding areas.

"Although there is no immediate danger, you need to start preparing for dangerous weather and keep up to date," the Department of Fire and Emergency Services (DFES) warns.

Residents have been warned to secure or remove loose material from around their homes and ensure their emergency kits are complete.

At around 12.30pm (WST) on Tuesday the tropical low was estimated to be about 285km northeast of Kalumburu and 355km north of Wyndham, moving south at 7km/h towards the north Kimberley coast.

The low may develop into a tropical cyclone in the next 18 to 24 hours, the Bureau of Meteorology says.

Gales with gusts to 100km/h may develop on the coast on Wednesday morning.

Heavy rain is also expected over the far north Kimberley region during Wednesday and Thursday.

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Sexting MP cleared by Qld parliament

SEXTING Queensland MP Peter Dowling has been cleared of any wrongdoing by the Queensland Parliament.

Parliamentary Clerk Neil Laurie says his investigation into the Redlands MP found nothing to support claims that he misused travel entitlements, facilities or equipment.

However, in a letter to Premier Campbell Newman, Mr Laurie stresses that his finding is not a moral judgment on Mr Dowling's actions.

"I wish to stress that my consideration of all the matters contained in the complaint and the associated issue ... did not involve any moral consideration," the letter, released on Christmas Eve, read.

Mr Dowling gained notoriety after his mistress wrote to parliament in August to reveal their affair.

She said the pair had sex in his parliamentary office and he texted her a photo of his penis in a glass of red wine.

The mistress also alleged that Mr Dowling took advantage of parliamentary travel trips to meet her in locations including Perth and New Zealand.

During these trips he accepted free upgraded flights, which he didn't declare on his members' register of interest.

Mr Dowling stood down as chair of parliament's ethics committee after the scandal made headlines.

In September, Mr Laurie finalised his investigations into allegations that Mr Dowling had failed to register a flight upgrade.

He has written to the Crime and Misconduct Commission advising the corruption watchdog of the outcome of his latest investigation.

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Premium hike to prompt insurance rethink

AUSTRALIANS may rethink their private health insurance coverage in the wake of increases almost triple the annual rate of inflation, consumer groups say.

Insurance premiums will go up from April 1 next year by a weighted average of 6.2 per cent.

This implies an average rise of $3.86 a week, based on a basic combined family policy, equating to more than $200 a year.

The annual increase, approved by federal Health Minister Peter Dutton on Monday, comes after premiums rose by an average of 5.6 per cent in 2013 under the former Labor government.

It also compares with the current annual rate of inflation of only 2.2 per cent.

"This is an unhappy Christmas present for the many Australians who do struggle to meet the cost of health insurance," Consumers Health Forum spokesman Mark Metherell said.

The forum and consumer group Choice said the increase was hefty and could make many people rethink whether it was worth having private health cover.

They advise consumers to compare policies to ensure they were getting a competitive price, review extras cover and check for discounts for paying in advance.

Mr Dutton blamed the former Labor federal government for putting pressure on the sector, saying the 2014 price rise could have been lower.

However, the number of claims was more than expected in the past year, meaning the overall cost of benefits paid out jumped by eight per cent on the previous 12 months.

The premium increases would help insurers absorb those increased costs, Mr Dutton said.

Labor said it was a slap in the face for Australians, two days before Christmas. Health spokeswoman Catherine King said when Labor was in power it tried to ensure the lowest possible premium increases.

The rises approved for 2014 range from 3.14 per cent for Health Partners policies to 7.99 per cent for NIB policies.

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Settlement over leaky NZ schools

James Hardie and the NZ Ministry of Education have reached a settlement over leaky school buildings. Source: AAP

BUILDING products maker James Hardie Industries and the New Zealand Ministry of Education have reached a confidential settlement over leaky school buildings.

The ministry lodged a claim in the High Court in April against cladding manufacturers that supplied materials for schools affected by weather-tightness failure, seeking remediation on 800 buildings across more than 300 schools.

Two of the manufacturers were New Zealand subsidiaries of Sydney-based James Hardie Industries.

On Monday, the company announced it had finalised a settlement with the ministry and the ministry had agreed to drop its legal claims.

The money would be used to help schools fix weather-tightness issues, and support future, high quality school property developments around New Zealand, the ministry said.

"This settlement represents a win-win situation for both parties and I'm very pleased to see it reached," Associate Education Minister Nikki Kaye said.

"This agreement strengthens the government's ability to significantly address weather-tightness issues in our schools and support future investments in school property - without the need for lengthy court action."

The ministry will continue pursuing other defendants including Carter Holt Harvey and CSR Building Products (NZ) Limited who supplied materials for buildings affected by weather-tightness failure.

The ministry has settled more than 40 claims on leaky buildings since 2009.

James Hardie said the settlement would not have a material adverse impact on its business results.

It had taken a provision of $US15.2 million ($A17.08 million) over the ministry's $NZ1.5 billion ($A1.40 billion) class suit against cladding manufacturers, according to its second quarter financial statements.

James Hardie has been named in five High Court judgments on other leaky building cases this year involving three Auckland apartment buildings, one apartment property in Mount Maunganui and one home in Wellington.

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Hot air balloon lands in Melbourne carpark

THE pilot of a hot air balloon has been praised for his emergency landing in a Melbourne carpark without any of the 10 people aboard being injured.

The balloon came down in the carpark of an apartment building in the inner suburb of Balaclava on Sunday morning.

Everyone walked out of the balloon without a cut or scratch.

Victoria Police Sergeant Barney Wursthorn said the successful emergency landing was a testament to the pilot's skills.

"He's pretty much put the basket down where he wanted to and chosen a parking spot here in the carpark," he told reporters at the scene.

"It's quite a good effort by the pilot."

He said the pilot had to make a controlled landing after having problems with the wind.

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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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Men found clinging to Esky after boat sank

Two men were found grasping an Esky after spending the night in seas off the northern NSW coast. Source: AAP

TWO men were found grasping an Esky after spending the night in seas off the northern NSW coast.

The men are recovering in hospital after the ordeal, which began when their boat started to sink on Friday while cruising between Ballina and Evans Head.

A search was sparked after NSW water police received a mayday advising a vessel had begun taking on water.

A helicopter search of the area before last light failed to find the vessel or the men.

After refuelling, the Westpac Life Saver Rescue Helicopter used night vision goggles to search an area further south.

The search was called off about midnight.

It recommenced on Saturday and the pair's submerged boat was found shortly afterwards.

They were spotted nearby wearing life jackets and clinging to a large white Esky.

The men were winched to safety and taken to the Lismore Base Hospital.

The pair suffered shock and exposure and were in stable conditions, the Westpac Life Saver Rescue Helicopter service said in a statement.

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Govt defends approval of $6bn Palmer mine

The government says Clive Palmers parliamentary role had nothing to do approving his coal project. Source: AAP

THE Abbott government is defending its decision to approve Clive Palmer's $6.4 billion coal project in Queensland's Galilee Basin, saying his role in parliament had nothing to do with the outcome.

Mr Palmer's Waratah Coal has been given the green light to build a thermal coal project near Alpha in Queensland's central west, plus a rail line linking the project to a proposed port at Abbot Point.

Environment Minister Greg Hunt on Friday approved the environmental impact statement for the project, publishing his report on his department's website.

The federal opposition has questioned why a government that stresses it is open for business wouldn't even release a media statement about such a large infrastructure decision.

"You'd think that something worth $6 billion would be worth a mention other than a simple addition to a website," Labor frontbencher Bernie Ripoll told Sky News on Saturday.

"It's just strange."

Mr Palmer is the only member of the Palmer United Party in the House of Representatives, but from July a number of senators from his party will take their seats in the upper house.

The PUP vote in the new Senate will be important as the government tries to abolish the carbon and mining taxes, an effort blocked so far by the combined force of Labor and the Australian Greens.

Mr Palmer has campaigned to remove the carbon tax and compensate large companies for their first year payments under the scheme.

His company Queensland Nickel is one of just three firms in Australia that has not paid its carbon tax debt, and is challenging the $6.2 million bill in court.

But the government has denied any suggestion of a question mark over the Waratah Coal decision because of Mr Palmer's role in Australia's parliament.

Parliamentary Secretary Paul Fletcher said the project was considered by the environment minister on its merit alone, in accordance with legal requirements.

"The approval process quite properly is blind to the characteristics of the individual applicant," he told Sky News on Saturday.

"Mr Palmer has to comply with the law of the land like any other citizen."

He said Mr Palmer was an independent member of parliament and the coalition had "no responsibility" for him, adding they had not been briefed by the member for Fairfax.

But the Australian Greens say the decision is a "blessing" for Mr Palmer, and accused the government of quietly sneaking out the decision late on the Friday before Christmas when nobody would notice.

Conservationists deplored the Waratah Coal decision, saying the mine puts the Great Barrier Reef at significant risk and ignores growing warnings about climate change and carbon emissions from coal.

The Greens also took issue with Minister Hunt's approval of the Surat Gas Expansion project, which they claim put Queensland's land and groundwater at risk.

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Telstra sells HK business for $2b

Telstra will sell its stake in Hong Kong mobile business CSL for $A2.74b to HKT limited. Source: AAP

TELSTRA shares have hit their highest level in almost nine years after selling its stake in Hong Kong mobile business CSL for around $2 billion.

The Australian telco, along with fellow owner New World Development, has agreed to sell CSL to HKT in a deal worth $US2.42 billion ($A2.74 billion).

Telstra is expected to receive around $2 billion for its 76 per cent stake, depending on currency fluctuations, giving it a profit of around $600 million.

Chief executive David Thodey said CSL had experienced considerable success in the Hong Kong market, but the sale was in the best interests of Telstra shareholders.

"There are a number of dynamics in the Hong Kong mobiles market that means this is the right opportunity for Telstra to maximise our return on this successful asset," he said.

Telstra shares gained nine cents, or 1.8 per cent, to $5.20, their highest closing price since February 2005.

Mr Thodey said the company would continue to look for opportunities in Asia.

"We want to leverage our domestic strengths to grow our global footprint," he said.

"The team is focused on refining and enhancing our strategy across Asia and identifying further opportunities to build our capability in the region."

Telstra said the proceeds of the sale will be incremental to its free cashflow guidance of $4.6 billion to 5.1 billion for the 2014 financial year.

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Hockey okays China stake in SP AusNet

FEDERAL Treasurer Joe Hockey has granted conditional approval for the world's largest electricity company to take a 19.9 per cent stake in Australian energy infrastructure firm SP AusNet.

State Grid Corporation of China will acquire the stake from Singapore Power International, after reaching an initial agreement in May 2013.

SP AusNet owns and operates electricity transmission, electricity distribution, and gas distribution networks in Victoria.

Singapore Power will remain its biggest shareholder, with a holding of about 31 per cent.

"Australia is open for business, and we welcome foreign investment when it is not contrary to the national interest," Mr Hockey said in a statement on Friday.

State Grid have also been granted approval to acquire 60 per cent of SPI (Australia) Assets and SPI (Australia) Trust, which trade as Jemena.

Jemena owns and operates electricity, gas and water assets in eastern Australia.

State Grid's application was approved on the condition that at least half of the members to be appointed by State Grid to the SP AusNet and Jemena boards are Australian citizens residing in Australia.

Shares in SP AusNet gained 2.5 cents, or 2.1 per cent, to $1.215.

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Union polls suggest LNP loss in Redcliffe

UNION polling suggests the Liberal National Party could lose the state seat of Redcliffe to Labor at next year's by-election.

The seat, north of Brisbane, was vacated by LNP turned independent Scott Driscoll in November after he was found in contempt of parliament for being dishonest about his business dealings and fined $90,000.

The LNP has selected nurse educator Kerri-Anne Dooley to go up against Labor's former federal MP Yvette D'Ath.

Ms Dooley ran against Mr Driscoll for Family First in the 2012 state election, winning just 4.5 per cent of the primary vote.

The public service union Together says a new poll it commissioned shows the Newman government's mismanagement of the health system will hurt Ms Dooley's chances and could help Labor gain its eighth seat in parliament.

The ReachTEL survey of 774 Redcliffe residents on December 13 and 14 found that Labor would get 42.1 per cent of the primary vote, the LNP 35.5 per cent, the Palmer United Party 8.6 per cent, the Greens 5.1 per cent and Katter's Australian Party 0.2 per cent.

The polling also showed 43 per cent of Redcliffe voters believed the public health system has worsening under the LNP and only 28 per cent thought the government was managing the public health system well or very well.

Union secretary Alex Scott claimed the polls clearly show the LNP is on the nose, despite winning the seat with 60 per cent of the vote after preferences just 18 months ago.

"The Redcliffe community is deeply opposed to changes this government has made to the health system, we know the be-election will be decided on the issue of health," Mr Scott.

"Hundreds of doctors will be campaigning to make sure this is a be-election on health."

An LNP spokesman says Ms Dooley, a lifelong Redcliffe resident, would be a great advocate for the electorate that had been let down by Mr Driscoll.

"Like everyone in Redcliffe, Kerri-Anne Dooley feels let down and disappointed by the events of the past year by the previous member," he said.

The by-election is likely to be held in early February and Deputy Premier Jeff Seeney says Premier Campbell Newman will announce a date in mid January.

"I don't think anybody wants to deal with politics over Christmas," Mr Seeney said.

The Palmer United Party will not contest the by-election.

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NZ shares rise as economy takes off

NEW Zealand shares rose after the Federal Reserve announced a smaller than expected reduction in stimulus and figures showed economic growth that beat estimates.

The NZX 50 Index gained 31.182 points, or 0.7 per cent, to 4707.060. Within the index, 26 stocks rose, 16 fell and eight were unchanged. Turnover was a lower-than-average $93.5 million.

Stocks on Wall Street rallied and the gains continued across much of the Asia Pacific region after the Federal Reserve cut its monthly bond buying programme by $US10 billion ($NZ12.14 billion) to $US75b, while signalling any further tapering will be determined by the strength of the world's biggest economy.

In New Zealand, the economy grew 1.4 per cent in the third quarter.

"The taper was a little on the softer side than thought, and that's helping," said James Lindsay, portfolio manager at Tyndall Investment management.

"US markets did a remarkable turnaround, where the Nasdaq was down 1 per cent when it came out, and closed up 1 per cent."

Telecom rose 2.6 per cent to $2.35, Ebos gained 2.3 per cent to $9 and Fletcher rose 2.2 per cent to $8.53.

A2 Corp, which markets milk with a protein variant said to have health benefits, climbed 2.7 per cent to 77 cents and has advanced 42 per cent this year.

Sky Network Television rose 1.7 per cent to $5.84 and Contact Energy rose 1.4 per cent to $4.94.

Airworks ended its first day as a listed company at $2.75 after majority shareholder Hugh Jones sold down his stake in an initial public offering at $2.60.

"It's pleasing to see another company listed with a good record and good brand," Mr Lindsay said. "It's exactly what the capital markets need."

Chorus, the network operator, fell 2.1 per cent to $1.40. MightyRiverPower fell 1.5 per cent to $2, having been sold in a government IPO this year at $2.50.

Auckland International Airport rose 1.1 per cent to $3.60.

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School in shock after boy dies in crash

A SYDNEY school community is in shock after a young boy on holidays from Malaysia died after he was hit by a car on the last day of the school year.

The six-year-old was struck as he was walking with his mother and two female cousins, aged four and five, near Carlingford Public School on Rickard Street, Carlingford in Sydney's northwest on Wednesday morning.

The car, with a woman and two children inside, was turning into the driveway of a child-care centre when it ploughed into them as they were walking past.

The boy died at the scene.

The Nissan Dualis sedan also hit his four-year-old cousin who is in The Children's Hospital at Westmead with pelvic injuries.

The boy's 38-year-old mother, a Malaysian national, was taken to Westmead Hospital with non life-threatening injuries while the other young girl was not injured.

Parents rushed to the school on Wednesday afternoon to find most of the street being cordoned off by police tape.

Magdalena Kowalska, a mother of three children at the school, went to pick up her children about lunchtime after hearing the news.

"I was at work and heard about it ... I thought I'd come and check on the children and collect them from school," she said.

"There was counselling inside just to reassure them that everything is fine."

Her son Alex, 11, said school staff had talked to students about the accident.

"I just heard someone died in a car crash and was pretty sad about it."

The driver of the car, a 46-year-old Carlingford woman, was taken to hospital suffering shock.

Police said she would undergo mandatory blood and urine testing.

Superintendent John Duncan, from Ryde Local Area Command, said the driveway where the accident happened was not a designated drop-off area, and it was still too early to tell what caused the accident.

"This is a tragic incident, it's a week before Christmas, it's the last day of school," Supt Duncan said.

"It's a timely reminder for everybody to just take your time on the roads."

Police are yet to formally interview the driver or the mother of the boy who died.

The Department of Education has organised counselling for teachers and students.

Premier Barry O'Farrell said it was a terrible day for the entire school community.

"It's a shock to everybody," Mr O'Farrell said.

"A shock, not least because this, the last day of school, is normally a day full of excitement for students and school communities.

"A shock because for all of us in this country, schools are happy, safe, learning environments."

Police will prepare a report for the coroner.

The latest school death comes one year after five-year-old Kevin Quintal was struck on his way to kindergarten at a school in Kingsgrove in Sydney's south.

The driver, Lidija Sutevska, was found not guilty of negligent driving occasioning death in November with the magistrate saying it was "a series of unfortunate events".

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Ten chases ratings on the shiny floor

Ten Network's boss says the broadcaster's new focus on older viewers is starting to deliver results. Source: AAP

SPORT, reality shows and "shiny floor" TV will be Ten Network's big guns as it fights its way back into ratings contention, chief executive Hamish McLennan says.

Mr McLennan has vowed there will be no repeat of the broadcaster's recent "unacceptable" errors in program choices as it pursues its new target market of cashed-up older viewers.

After years of Ten trailing its commercial rivals Nine and Seven in ratings, Mr McLennan told investors at the network's annual general meeting in Sydney a focus on 25 to 54-year-olds undertaken since his arrival in March had stabilised advertising revenues and shown a lift in viewer numbers.

"The programming execution mistakes Ten made during 2012 were unacceptable and will not be repeated," he said.

"Ten Network's ratings performance this year was clearly not good enough.

"We are not hiding from the fact our ratings performance in 2013 was unacceptable and that we must improve in 2014."

Mr McLennan said the push to lift ratings in 2014 would be driven by sport, reality and "shiny floor" talent, singing and dancing shows on Ten's main free-to-air channel.

"People aged 25 to 54 are the largest and most lucrative age group for Ten to target," he said.

"They represent the biggest slice of the television audience.

"They drive the success of the highest rating programs on television."

Ten has secured rights to the T20 Big Bash cricket, the 2014 Winter Olympic Games and, as of 2015, to V8 Supercars, winning the motorsport away from Seven.

In a boost for Ten's finances, shareholders approved a new debt funding arrangement under which billionaires and major shareholders Lachlan Murdoch, James Packer and Bruce Gordon will underwrite a $200 million loan, providing much more favourable conditions than traditional lenders and enabling the company more freedom to pursue its strategy.

Major shareholder and Ten director Gina Rinehart did not attend the meeting and did not participate in the funding arrangement, with the mining billionaire represented by her Hancock Prospecting employee John Klepec.

Mr Murdoch faced questions from Australian Shareholders' Association (ASA) representative Allan Goldin about Mr McLennan's workload.

Ten's chief executive is also chairman of real estate group REA Group, which recently lost its chief executive Greg Ellis and CFO Jenny Macdonald.

Mr McLennan now faces the task of finding a new CEO and CFO for REA Group at a key time for Ten.

Asked if he could say that Mr McLennan was available at all times for Ten, Mr Murdoch said Mr McLennan was "wholly, holistically and whole-heartedly committed to all the shareholders and stakeholders of Network Ten".

The Ten board was also asked by ASA representative Stephen Mayne whether having four billionaire directors was a workable arrangement.

Director Brian Long said no individual shareholder had undue influence on the board.

"I can understand the observation that you have made and that sometimes gets made in the press about the dominance at the board table of the billionaire shareholders," Mr Long said.

"That's a complete myth and a story that journalists like to write because it sounds interesting. There's no truth in it whatsoever."

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Victoria set to swelter, finally

SUMMER is set to finally arrive in Melbourne, with the mercury tipped to reach 40C for the first time this season.

Victorians will sweat through three successive days of 30 degrees or higher from Wednesday with the temperature expected to top 40 degrees in some parts of the state including Melbourne on Thursday.

Those in the Mallee region will be hit hardest as forecasters predict three 40-plus days in a row for Victoria's northeast.

Australian Medical Association Victoria president Dr Stephen Parnis on Tuesday warned parents not to leave children unattended in cars during the heatwave, even with the windows down.

"This is a criminal offence in Victoria as it can have fatal consequences," Dr Parnis said.

"Never leave children or pets unattended in cars, not even for a short period. It's not worth the risk."

Temperatures inside a parked car can be as much as 20 or 30 degrees higher than the outside forecast.

Bureau of Meteorology senior forecaster Terry Ryan said Victorians will swelter through a warm Thursday night before relief arrives around midday on Friday.

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NBN rollout is scattered: Switkowski

TELSTRA management has directly contradicted claims by its workforce that the company's copper network is in disrepair, a Senate Select Committee into the National Broadband Network has heard.

Under questioning from Greens Senator Scott Ludlum, Telstra director of government relations James Shaw would not guarantee an audit of its copper network would be conducted ahead of its sale to the Australian taxpayer.

"They are matters that will be discussed in the context of negotiations," Mr Shaw said.

Key parts of a strategic review into the NBN presented by Mr Turnbull last week have been blacked out - including an estimation of the cost of Telstra's copper network.

The committee heard two weeks ago from Telstra staff, who said 70 per cent of the network's joiners were being patched up with plastic bags, gaffer tape and gel to protect parts of the network contained in pits.

Mr Shaw on Tuesday refuted the figure.

"Do you want to hazard a statistic," Senator Ludlum asked.

"I can't," Mr Shaw said.

Earlier, NBN Co executive chairman Dr Ziggy Switkowski told the committee he would not "buy into" questions asking him to guarantee internet speeds.

"One of the problems I have found in reviewing the past is there has been a too-quick take-up of words like 'guarantee'," Mr Switkowski said.

"It's clear after four years of the NBN, guarantees have lost currency."

Committee chair Senator Stephen Conroy repeatedly asked Mr Switkowski if the roll-out was being deliberately slowed.

Liberal Senator Anne Ruston accused the chair of trying to verbal Mr Switkowski.

"We have inherited a somewhat dissatisfied group of partners who are dissatisfied with us, who have slowed deployments," Mr Switkowski said later.

"There's no change in the current strategy. We are rolling out fibre to the premises where we can.

"We have a machine ... that is running at four or five thousand (homes) a week, which it was during Senator Conroy's time."

The coalition on Thursday released a strategic review of the NBN, which found that under Labor's plans, the rollout would miss its 2021 target by three years and cost $73 billion - up from $43 billion - to complete.

Mr Switkowski said the rollout had been largely scattered, and involved many contractors doing sub-critical work.

The committee heard that divisions within NBN Co had been providing different sets of figures on the same subject.

The review also found the government would not be able to meet its pledge of delivering 25 Mbps to all Australians by 2016, and its NBN plans would cost 40 per cent more than the $29.5 billion estimated in April.

Mr Turnbull said the coalition remained committed to limiting its equity investment in NBN Co to $29.5 billion, with the excess cost to be made up through debt.

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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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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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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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Train breaks down on Sydney level crossing

A TRAIN has broken down at a level crossing blocking the main road through a northwestern Sydney suburb.

Drivers are being urged to avoid Garfield Road at Riverstone, which has been shut in both directions, the Transport Management Centre (TMC) says.

"Traffic is heavy in the area and there is no forecast as to when the road will be reopened," the TMC said.

People travelling on the Richmond branch of the T1 western train line are also warned to expect delays and allow extra travel time.

There are no reports of injuries.

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Probe into alleged attack by Qld cops

POLICE have launched an investigation after footage emerged showing a police officer allegedly punching a man in the face outside a Brisbane nightclub.

The footage, taken by a member of the public, shows three uniformed police officers speaking to a man down an alleyway outside The Beat nightclub on Ann St about 11.30pm (AEST) on Friday.

Bank employee Joe Ritson says he filmed the scene while waiting for a taxi.

"I had a feeling something was going to happen so I started filming it and like three seconds later one of the cops punched him in the face and I was like 'holy crap that is full on'," Mr Ritson told Ninemsn.

"They punched him, pushed him up against the wall and then started kicking him.

"The ute (in the video) kind of obscures it but you can see one of the them kneed him in the back."

Mr Ritson told Ninemsn he doesn't why the police officers had approached the man.

The footage was uploaded to Youtube, but has since been taken down.

A statement from Queensland Police said they were aware of the video and had launched an investigation.

The Ethical Standards Command has also been informed.

Brisbane Region Acting Assistant Commissioner Allan McCarthy said although police were looking into the incident it didn't necessarily mean the officers were at fault.

"This does not mean any allegations or complaints about the officers have been substantiated," he said in a statement.

"It is important not to pre-empt the outcome, however the circumstances will be investigated thoroughly to determine if the officers have acted in accordance with the high expectations of the Service."

Mr McCarthy said all officers are expected to act professionally and ethically in accordance with the service's high standards.

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Sydney wife killer jailed for 21 years

BEFORE stabbing his wife to death, Andrzej Giercyznski had humiliated her, abused her and treated her as a servant for his "exclusive use" for more than 28 years.

Now Giercyznski has been jailed for more than 21 years.

Giercyznski stabbed his wife Danuta 16 times in the head, neck and chest in their Chipping Norton kitchen in Sydney's west in October 2010.

The Polish couple's marriage had been marred by violence, Justice Christine Adamson said.

Tyrannical and "obsessed with his own sexual fulfillment", Giercyznski threw food at Danuta, blamed her if he lost at gambling and continuously accused her of cheating on him, despite having affairs himself.

"He regarded Danuta as a chattel and a servant for his exclusive use," Justice Adamson told the Supreme Court on Friday.

"The offender commandeered Danuta's income as well as her body. He not only used force to control her, but he also humiliated her to subjugate her."

Throughout Gierczynski's trial the jury was shown bizarre videos that had been recorded and secreted around the home by the former carpet cleaner.

In one recording Danuta is depicted coming towards him with two knives.

Justice Adamson found Giercyznski antagonised his wife in the recordings as a contingency for the day he would be charged with hurting her.

Justice Adamson said Danuta must have spent her last minutes in terror, pain, despair and anxiety for herself, and for the couple's disabled adult son Daniel, who was wounded in the stabbing.

"Although his level of planning was not substantial, the apprehension that she would die at his hands had hung over her for almost the entire length of their relationship."

The court heard Giercyznski had been imprisoned in Poland in the 1970s for beating his first wife and threatening to kill her.

The 61-year-old was found guilty in July of Danuta's murder, for which he was sentenced to a minimum of 21 years and four months and a maximum 28 years. For wounding Daniel, he was sentenced to a maximum of three years.

He will be eligible for parole in August 2032.

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Queensland Motorways to be auctioned

THE Queensland Investment Corporation (QIC) is to auction off road toll division Queensland Motorways.

Treasurer Tim Nicholls had said on Thursday there were no plans to sell the government-owned corporation.

Although the company will stay in public hands, QIC chief executive Damian Frawley announced on Friday it would auction its road toll division, believed to be worth more than $5 billion.

He said the decision had been made after extensive consultation with potential domestic and international investors.

"QIC will begin to call for indicative bids for 100 per cent of the equity in Queensland Motorways by the end of the year," he said.

"Indicative bids are expected to be due by the end of January."

Shortlisted bidders will then be asked to submit binding bids with a view to contractual close in April 2014.

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

Mr Frawley said any potential change in ownership would have no effect on existing tolls for the Gateway and Logan Motorways beyond the normal annual CPI increases.

QIC also manages money on behalf of numerous public and private sector pension funds.

Treasurer Tim Nicholls announced on Friday a shake up of the boards of a number of government-owned corporations earmarked for sale.

Don Luke was appointed QIC's new chair along with two new directors.

The Townsville Port also got a new director, Allan Pidgeon.

"The changes made to the boards of Queensland's GOCs will ensure the businesses are run effectively and efficiently with diligent regard to taxpayer funds," he said.

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Gay marriage lobby to pressure Abbott govt

The High Court of Australia has overturned the ACT's same-sex marriage laws. Source: AAP

THE honeymoon hadn't even begun for newlyweds Narell Majik and Ash Watson before the High Court of Australia declared their marriage constitutionally invalid.

The couple tied the knot in Canberra just a day before the court struck down the ACT's same-sex marriage laws in a brief but blunt judgment on Thursday.

"It does not feel any different to how it did before," Ms Watson said after the ruling.

It was a sentiment shared outside the court by many gay newlyweds, who shared the forecourt with a group of Christian activists singing songs and waving signs decrying same-sex unions.

The outcome was widely expected, but the disappointment was still palpable even as couples proudly showed off their rings and the marriage certificates obtained under ACT law.

The first legal gay marriage on Australian soil took place less than a week ago.

Western Australia state upper house MP Stephen Dawson, who married his partner in the early hours of Saturday in Canberra, said the court decision was disappointing.

"The fight for recognition goes on," he tweeted.

For others there is a silver lining.

In their unanimous ruling, the five High Court judges concluded that only federal law could determine what constitutes a legal marriage, state or territory parliaments can not.

Australian Marriage Equality national director Rodney Croome said this clarified for the first time that federal parliament had the power to enact the laws for gay marriage.

"That puts the ball firmly in the federal government's court and increases pressure in particular on (Prime Minister) Tony Abbott and the federal coalition to allow a conscience vote on marriage equality so this issue can move forward," he said.

Others disagreed, saying the court's ruling had effectively put the issue to rest.

Australian Christian Lobby managing director Lyle Shelton said there had been 10 attempts in the past three years at state and federal levels to legislate a new definition of marriage.

"I think it's been given a fair go. I think it's time to move on," he said.

Mr Shelton expressed concern for same-sex couples who thought they were married under the ACT law.

"Understandably they will be disappointed at the decision handed down today and it is unfortunate they were put in this position," he said.

Attorney-General George Brandis said the government was pleased with the decision.

It was important for people to respect the High Court's authority, he said.

"Even if the decision had gone the other way ... it's imperative that all members of parliament, irrespective of their personal opinions, uphold and respect ... decisions of the court," Senator Brandis said.

Shadow attorney-general Mark Dreyfus said the decision confirmed Labor's position that parliament was the appropriate place for debate on same-sex marriage.

"The prime minister needs to give his MPs a conscience vote on this issue so that the national parliament can decide," he said.

Mr Croome said it was too early to tell whether the High Court decision left room for the ACT government to legislate in a different form.

But for Canberra resident Ivan Hinton, who married his partner Chris Teoh this week, the setback in the High Court hadn't dampened his determination to see his union validated.

"We will achieve marriage equality," he said.

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Vic designer killed 'days before fire'

POLICE have accused a man of murdering Stuart Rattle five days before the well-known interior designer was found dead in his burned Melbourne unit.

Mr Rattle's body was found by firefighters at his South Yarra unit in the early hours of Monday morning.

Michael O'Neill, 47, who is believed to be Mr Rattle's partner, has been charged with his murder and briefly appeared in the Melbourne Magistrates Court on Thursday.

Documents tendered to the court allege O'Neill, also of South Yarra, killed Mr Rattle last Wednesday, December 4.

He was remanded in custody to appear again on June 5 next year.

Mr Rattle, 53, who also had a home in Daylesford, has been remembered as talented and generous man who created "value and beauty in society".

He was well-known in the Daylesford area for the beautiful English gardens of his 35-hectare property, Musk Farm.

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Paul Walker's body released to family

US actor Paul Walker will be buried at the Forest Lawn Memorial Park in the Hollywood Hills. Source: AAP

US actor Paul Walker will be buried at the Forest Lawn Memorial Park in the Hollywood Hills.

The Fast & Furious actor, 40, and his friend Roger Rodas, 38, died in a car accident on November 30 after leaving a charity event in Valencia, California.

Walker's body was released on Tuesday by the Los Angeles County coroner's office to Forest Lawn Mortuaries, reports the LA Times.

Ed Winter, assistant chief of the coroner's investigations, told the paper that the actor's remains were turned over to Forest Lawn, where many of Hollywood's most famous stars are buried.

Celebrity website E! reports Walker's friend and Fast & Furious co-star Tyrese Gibson is lending a helping hand with the funeral arrangements. The actor is said to have met with Walker's parents on December 1 to discuss how to best farewell the star.

Gibson spoke on Facebook about his heartbreak after his friend's death.

"My heart is hurting badly but in this darkness you used me as a light with my brothers family tonight ... Use me up father God I owe you," he wrote.

A family spokesperson has not yet confirmed when or where the funeral will take place.

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Police get fresh clues on NSW missing man

Police will search a home on the Central Coast where missing man Ronald Penn was last seen in 1995. Source: AAP

POLICE are preparing to search a Central Coast property where a missing NSW man was last seen in 1995.

Ronald Penn was last seen at a Bateau Bay house on October 12, 1995.

He was aged 61 at the time, and has not been seen or heard from since.

Officers will search the home on Wednesday.

In September, investigators searched bushland off Berkeley Road in Berkeley Vale, the location where Mr Penn's burnt-out car was found on October 27, 1995.

Detective Inspector David Waddell said the recent searches had been prompted by fresh information.

"Over recent months we have received some strong support and useful information from the community," he said.

"Yet we do believe there are a number of people out there who know what has happened to Mr Penn but are either afraid or unwilling to share that information with police."

Insp Waddell urged anyone who knows where he is to call police.

"Ron's poor family deserve to know what happened to him," he said. "After 17 years, they are desperate for closure."

Investigations have revealed Mr Penn, who would now be in his late '70s, had clothes and personal belongings with him when he vanished.

None of his bank accounts have been accessed.

Anyone with information can call Crime Stoppers anonymously on 1800 333 000.

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Fonterra units drop 2% on price hike tip

THE New Zealand sharemarket has retreated as a brokerage put a sell rating on Fonterra Shareholders' Fund ahead of what's expected to be a hike to its forecast milk payment.

The NZX 50 Index fell 11.8 points, or 0.3 per cent, to 4706.506 on Tuesday. Within the index, 25 stocks fell, 17 gained and eight were unchanged. Turnover was $133 million.

Fonterra dropped 2.1 per cent to $6.10.

Last month the dairy giant flagged a $157 million charge against inventory at its NZ Milk unit because of a squeeze between rising input costs, represented by the farmgate milk price, and prices for value-added products such as casein and cheese.

Craigs Investment Partners analyst Arie Dekker cut the units to sell, lowered his 12-month price target and reduced his forecast for 2014 earnings.

"The market in general doesn't really understand the relationship between the milk price and Fonterra's profit," said Greg Easton, an adviser at Craigs.

"Farmers just want a high milk price."

Air New Zealand ended the day down 0.6 per cent at $1.62 after the Auckland-based carrier said normalised earnings before tax are expected to increase about 20 per cent in the six months ending December 31.

Companies with exposure across the Tasman fell after the kiwi rose to fresh five-year highs against its Australian counterpart, reducing the value of revenue derived in Australia.

Fletcher Building, the biggest listed company on the exchange, fell 0.3 per cent to $8.82, outdoor equipment retailer Kathmandu dropped 2.9 per cent to $3.30, clothing chain Hallenstein Glasson dropped 1.7 per cent to $3.95 and jewellery chain Michael Hill International declined 1.4 per cent to $1.44.

Tower was unchanged at $1.66. After the close of trading the general insurer said it will return some $70 million in capital to shareholders in a one-for-five buyback at $1.81 apiece.

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Victorian firm wins SA design competition

A DESIGN featuring an art gallery, a new high school and with an emphasis on open space has won a competition for what will emerge on the site of the Royal Adelaide Hospital.

The site, in the centre of city, will be redeveloped after the new Royal Adelaide Hospital opens in 2016.

The winning design came from Victorian architecture firm Slash, the company taking out the $200,000 first prize.

It keeps many of the existing buildings and impressed the judges for embracing the history of the site.

Chief judge Shelley Penn said it also included a high degree of economic viability.

"Their proposal presented a sustainable proposition by minimising energy and waste," she said.

The $10,000 people's choice award was won by Slovakian firm Nice Architects which featured a grassed hill built from debris from the demolished buildings.

Planning Minister John Rau said the state government will now develop a master plan for the hospital site.

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Investors wipe out QBE by $4.2bn

QBE has flagged a $250 million loss and announced its chairman will leave the company. Source: AAP

INSURER QBE insists it can make its disastrous US business a success after taking a near $1 billion hit and watching its shares plunge.

The company, Australia's largest insurer by market cap, on Monday announced a series of writedowns and provisions on the various north American businesses acquired since 2006.

The group has flagged a $250 million net loss for calendar 2013.

Shocked investors reacted viciously, wiping more than $4 billion from the value of one of the ASX's 20 biggest companies, with QBE shares falling $3.45 or 22.3 per cent, to $12.

The company also announced chairman Belinda Hutchinson would leave in March, to be replaced by fellow director Marty Becker.

Chief executive John Neal described the company as fighting on three fronts in north America.

Most embarrassing was an investigation by actuaries that found QBE had underestimated its provisions in relation to accident insurance claims, which must be increased by $300 million.

Mr Neal conceded he was concerned about the time it had taken to receive the data that led to the large increase in provisions.

It has lost a large chunk of its mortgage insurance portfolio this year, when major client Bank of America substantially dumped its interests.

Finally, the worst drought in 50 years had exposed QBE to US revenue claims related to crop prices and yields.

QBE was heavily involved in acquisition activity in the years before Mr Neal's appointment last year, spending well above $US2 billion in the US alone.

The company will now continue to spend on the north American business, which Mr Neal said needs to be further restructured.

However it would trade profitably next year and outside the North American problems, QBE had met or exceeded margins this year, he said.

It had been a "benign" year for the company in terms of disasters and claims, which is good news for insurers.

"It is disappointing and frustrating that we continue to be hampered by past claims that have spoiled very good progress managing and improving the performances of this business worldwide," Mr Neal said in a teleconference.

However analysts pointed out to him that it was difficult to believe his forecasts of improvement when he had downgraded earnings guidance three times since taking over, with QBE having missed all its profit forecasts since 2009.

Morningstar equities analyst David Ellis described the news as a risk management failure that had damaged the group's reputation in the market's eyes.

Mr Ellis said the question was whether or not the North American remedial restructure announced on Monday was sufficient to clean all skeletons out of the cupboard.

"There are longer term positives: it can benefit from a recovery in US economic activity, higher long term US interest rates and US dollar, the Australian business is performing well," he said.

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Man and 15 birds die in Sydney unit fire

TWO pet parrots may owe their lives to their owner who apparently battled to save them before he died in a fire at his home in Sydney's southwest.

The body of the man, believed to be a 63-year-old, was found in the Greenacre unit after firefighters extinguished the blaze at about 7.30am (AEDT) on Monday.

Fifteen other birds kept by the man also died in the fire.

NSW Fire and Rescue Inspector Mick Wren told reporters on Monday the man appeared to have been an avid bird collector.

"He may have attempted to release the birds at the time, which may have contributed to the whole situation," he said.

Bankstown Police Inspector Scott McAlpine confirmed 15 birds died but two were saved and handed over to the RSPCA for care.

RSPCA NSW spokesman Lukas Picton said the two Indian ringneck parrots were doing ok.

"The two that survived, it looks like they may have been kept on the outside of the house," he told AAP.

"They will be nursed back to health."

The RSPCA will consider any claims from the dead man's family for the birds, or the pets will be put up for adoption once they have recovered.

Indian ringneck parrots are common pets in Australia.

The fire is thought to have started in a back bedroom of the unit.

Neighbours reported hearing an explosion before the blaze but police don't believe it was linked to a drug lab.

Asked about reports a cigarette may have started the blaze, Insp McAlpine said that was a possibility but investigations were continuing.

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Australia pledges more aid to Philippines

Foreign Minister Julie Bishop is pledging another 10 million dollars in aid to the Philippines. Source: AAP

FOREIGN Minister Julie Bishop has visited typhoon-devastated communities in the Philippines, pledging another $10 million to Australia's aid effort.

Ms Bishop on Sunday met the Australian medical team in Tacloban, one of the areas worst hit by Typhoon Haiyan, and Australian Defence Force personnel working in Ormoc and surrounding areas.

She thanked the health, defence, aid, consular and other officials who have responded to the crisis, and the Australian public who had donated more than $13 million to relief and recovery efforts.

The additional $10 million in humanitarian relief brings Australia's total contribution to $40 million.

Almost 15 million people have been affected by Typhoon Haiyan, which caused massive destruction early last month.

Ms Bishop will travel to Manila to meet her Filipino counterpart and other cabinet members, where the Philippines' recovery needs and broader bilateral and regional issues will be discussed.

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Send customs ship to stop whaling: Greens

The Abbott government is being pressed to honour its commitment to take action on Japanese whalers. Source: AAP

THE Abbott government is being pressured to honour its election commitment and send a customs vessel to Antarctica, as Japanese whalers set sail for the annual summer hunt.

Anti-whaling group Sea Shepherd claims the Nisshin Maru and the Sun Laurel are en route to the Southern Ocean and should arrive in the protected whaling sanctuary before the new year.

This is despite the International Court of Justice (ICJ) expected to rule soon on Australia's case against Japanese whaling, which began in The Hague in July.

Sea Shepherd and the Australian Greens are urging the federal government to come good on its pre-election promise to send a Customs vessel to the southern ocean to police the situation.

"The time for the Australian government to send a vessel is now," the activist group said in a statement.

Sea Shepherd said it had informed Environment Minister Greg Hunt that the whalers had set sail.

Mr Hunt this week said the government's "commitment to monitoring and observing remains undiminished", amid claims the government could walk away from its promise.

Greens senator Peter Whish-Wilson questioned why Australia's purpose-built Southern Ocean patrol vessel, the ACV Ocean Protector, was at Christmas Island instead of patrolling the whale sanctuary.

Mr Hunt had promised a vessel for Antarctica this season, not using the ice-rated ship as an "expensive water taxi" for the government's border protection policy, he added.

"The clock has been ticking for our whales in the Southern Ocean and, now that the Japanese poachers are reportedly heading south, time is up," Senator Whish-Wilson said in a statement."

"(Prime Minister) Tony Abbott must step in and uphold his government's commitment to immediately send an Australian Customs vessel to monitor illegal whaling activities and protect our sovereign waters."

Sea Shepherd has vowed to intercept the Japanese fleet before a single whale is killed, a warning that could prompt clashes similar to those on the high seas earlier this year.

The Nisshin Maru, Japan's main factory whaling vessel, made international headlines in February when it was involved in a dramatic collision with a Sea Shepherd ship.

Sea Shepherd claimed it was rammed, and that crew on the Nisshin Maru lobbed stun grenades at the stricken anti-whaling ship, allegations fiercely denied by the Japanese government.

Australia took court action after decades of diplomatic efforts failed to curb Japan's whaling program, and hopes a verdict will be handed down before the end of the year.

Japan insists its program is legal under a scientific provision of the international whaling convention.

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First day of gay marriage in ACT

A WA Labor MP has married his male partner as ACT marriage laws came into effect at midnight. Source: AAP

THE bride wore white and so did her wife.

Corinna Peck and Stacey Cowen were among some 15 couples to tie the knot in Canberra on Saturday as Australia's first same-sex marriage law came into play.

But while the outfits were bright and newlywed smiles beamed across the nation's capital, a dark cloud was hanging over the future validity of the same-sex unions.

On Thursday the High Court will rule if the ACT's Marriage Equality Act, passed in October, is at odds with Commonwealth law and therefore invalid.

The threat didn't dampen the enthusiasm of groom Ivan Hinton who vowed to make partner Chris Teoh his "lawful wedded husband".

"There should never be any rule in this country that disrespects the commitment that two people like us wish to express to one another," Mr Hinton told reporters after his wedding.

Ceremonies kicked off at 12.01am (AEDT) with two couples rushing to become Australia's first legally-recognised "husbands".

Australian Marriage Equality director Rodney Croome attended Mr Hinton's marriage and afterwards highlighted the historic nature of Saturday's events.

"In years to come people will look back and think 'what an historic moment that was,' but also, 'why did it take us so long to recognise the wonderful ordinariness of the love, (the) commitment of same-sex relationships?'," Mr Croome said.

The Australian Christian Lobby has criticised the ACT law, claiming it damages the institution of marriage.

"We hear about equal love all the time but we don't hear about what it means for children," Lobby spokesman Lyle Shelton told Sky News.

"Same-sex marriage means same-sex parenting, that means necessarily taking a child from its biological mother or father and giving it to someone else."

ACT Chief Minister Katy Gallagher defended the law and sent a message to critics: "the world will go on".

"This doesn't effect those people who don't agree with it. It doesn't change their life, it doesn't change their relationships. This is all about making sure everyone is treated equally before the law," she said.

Ms Gallagher insisted that the community response, including from religious groups, had been overwhelmingly supportive.

Australian Greens senator Sarah Hanson-Young congratulated the newlywed couples and thanked them for being part of an important first step to change.

"This is how laws change, it is how communities evolve, it is how social change happens, when individuals put themselves forward," she said.

"I think it's time that politics put aside the views of others and allowed couples right across this country to have their love celebrated and accepted and recognised."

The ACT government said 47 couple have registered an intent to marry under the new law.

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Keith Urban among Grammy nominees

Keith Urban has been nominated for a Grammy Award in the category of Best Country Duo/Group. Source: AAP

AUSTRALIA'S Keith Urban has been nominated for a Grammy Award.

The country music star is a nominee in the Best Country Duo/Group Performance category for his collaboration with Tim McGraw and Taylor Swift, called You Can't Make Old Friends.

Jay Z easily led Grammy Award nominations, announced on Friday night, with nine, but left-of-centre rappers Macklemore & Ryan Lewis and Kendrick Lamar were among a group of new stars who took many of the major nominations.

New Zealand teenager Lorde was nominated for four awards, mostly for her debut single Royals.

The 17-year-old schoolgirl, who performed live during the Los Angeles ceremony, is in the running for song of the year, record of the year, best pop solo performance and best pop vocal album for Pure Heroine.

Macklemore and Lewis' gay marriage anthem Same Love was among song of the year nominees and the Seattle rap crew joined Los Angeles rapper Lamar with seven nominations apiece, including best album and best new artist of the year.

Pharrell Williams had four major nominations among his seven and Justin Timberlake also had seven.

Joining Lorde with four nominations apiece were Swift, Daft Punk, Bruno Mars and Kacey Musgraves.

Competing against Lorde's Royals for record of the year are Imagine Dragons' Radioactive, Mars' Locked Out of Heaven, Daft Punk's Get Lucky and Robin Thicke's Blurred Lines.

The Lorde and Mars entries also are up for song of the year with Pink's Just Give Me a Reason, Katy Perry's Roar and Same Love.

The show featured some of the year's top songs.

Lorde performed a starkly different version of Royals, while Swift performed her hit I Knew You Were Trouble in a performance pre-taped in Australia.

Urban performed a duet with US singer Miguel, while Thicke, TI and Earth, Wind & Fire teamed on Blurred Lines.

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Shark blamed for NSW surfer's injuries

Authorities say a surfer may have had a brush with a shark off the NSW coast without realising. Source: AAP

A SURFER who showed up at a NSW mid-north coast hospital with cuts to his hand and leg has received a surprising diagnosis: shark attack.

Police say the 26-year-old was in the water at Port Macquarie about 6.15pm (AEDT) on Thursday, when he felt something hit his right hand.

When the man discovered cuts to his right hand and blood on his leg he took himself to Port Macquarie Hospital, where doctors told him his wounds were consistent with a shark bite.

"He did not see a shark and was unaware at the time that he could have been bitten by one," NSW police said in a statement.

The man was treated for puncture wounds to his hand and a laceration to his leg, but was expected to be released.

Police said the northern end of Shelley Beach, where the suspected attack happened, was isolated and not widely used.

Officers could not find anyone else in the water when they visited the beach.

An expert is now set to visit Port Macquarie to try to identify the species of shark involved.

The suspected attack came just five days after Port Macquarie teenager Zac Young was killed by a shark while body-boarding further up the NSW coast.

The 19-year-old was in the ocean with three friends at Riecks Point, near Coffs Harbour, on Saturday when a shark bit off his legs.

He died shortly after his friends managed to drag him to shore.

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Fuel deal a win for consumers, business

CONSUMERS should expect lower grocery prices at Coles and Woolworths in 2014 due to an agreement from the supermarket giants to limit fuel discounts.

Hailed as a win for independent supermarkets, Coles and Woolworths agreed on Friday to limit discounts to a maximum four cents a litre as part of undertakings given to the nation's competition watchdog.

The retail behemoths told the Australian Competition and Consumer Commission (ACCC) they would stop funding the discounts through their supermarkets division, and any future discounting would need to be covered by their fuel retailing business.

The chains made the voluntary undertakings to address ACCC concerns their discount offers would reduce competition in the fuel retail sector.

The move comes after the consumer watchdog probed the supermarkets' shopper dockets following extended periods of eight cents a litre discounts.

Coles managing director Ian McLeod said the supermarket chain didn't believe its discounts amounted to a breach of law, but he recognised the ACCC's concerns.

Woolworths, meanwhile, denied there had been a competition problem arising from the discounts.

Consumer advocate Choice said the pledge should mean lower prices at Coles and Woolworths from January 1.

"Consumers have every right to expect grocery prices will fall at Coles and Woolworths as the supermarket giants reverse the flow of subsidies away from fuel," Choice spokesman Tom Godfrey said in a statement.

He said anything less would "expose the so-called price wars as nothing more than advertising slogans".

Australian Retailers Association executive director Russell Zimmerman said the deal was "the first step in fixing serious misuse of market powers issues".

He told AAP small, independent supermarkets had been "really badly hurt" by deep fuel discounts given by Coles and Woolworths.

"It does give (independent supermarkets) an opportunity to compete on a more level playing field."

The Australasian Convenience and Petroleum Marketers Association, which represents independent service stations, also backed the deal.

"It's not perfect, but we welcome it as a step towards levelling the playing field in the fuel industry," group chief executive Nic Moulis said.

He said about 1000 independent service stations had shut in the past four years, partly due to cost pressure caused by heavy fuel discounts at Coles and Woolworths.

Coles said it would continue to offer fuel discounts of four cents a litre.

Woolworths said it would offer eight cents a litre discounts to supermarket customers who spent an additional $5 on merchandise at its petrol stations.

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