Vic govt announces fire inquiry

AN independent inquiry will be held into the Morwell fires, the Victorian government has announced.

Deputy Premier and Emergency Services Minister Peter Ryan says the inquiry will look at all questions being asked about the coal mine fire.

On Friday, Chief Health Officer Rosemary Lester advised people aged over 65, pre-school children, pregnant women and anyone with a pre-existing heart or lung condition to move temporarily from Morwell South, the area closest to the mine.

But people outside the vulnerable group are angry with the response by authorities, heckling them at a media conference in the town on Friday.

Mr Ryan says the government is guided by Dr Lester's recommendations and its twin focus is on putting out the fire as soon as possible and helping locals as best it can.

"When they are accommodated, we'll then move to the position of an independent inquiry," he told reporters.

Opposition Leader Daniel Andrews called on the federal government to take over, saying the Napthine government had botched its response to the people of Morwell.

Mr Andrews said confusing advice was given to residents and an information centre was only set up on Friday.

"So inept, so incompetent has this government's response to unfolding disaster been, I think the people of Morwell would be right to say perhaps Dr Napthine just doesn't care about us," he told reporters.

"It got worse yesterday, because apparently if you're 66 years old, this community is dangerous and you should get out but, if you're 64 years old, it's perfectly safe," he said.

Mr Ryan accused Mr Andrews of cheap politics by trying to feed into the anxiety locals are feeling and undermining the advice by Dr Lester to government.

"This is base American dog whistling politics," he said.

It's expected to take at least another 10 days to get on top of the fire in the Hazelwood open-cut mine that's been burning for nearly three weeks.

Dr Lester said moving temporarily would be the best way for vulnerable people to avoid the continuing smoke.

The government expects the commonwealth will approve Victoria's application for natural disaster relief within two days, triggering assistance for small businesses affected by the blaze.

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Ex-Qld racing board referred to ASIC

TEN former Racing Queensland (RQ) board members have been referred to the corporate watchdog following an inquiry into the management of the industry.

Attorney-General Jarrod Bleijie said on Saturday that it would be up to the Australian Securities and Investments Commission (ASIC) to decide whether further action is taken.

The move comes less than a month after the Queensland Racing Commission of Inquiry delivered its findings to the government and made scathing findings about the conduct of former RQ chairman Bob Bentley and former RQ board member Bill Ludwig.

Commissioner Margaret White recommended Mr Bentley and Mr Ludwig be referred to ASIC.

A key allegation is that the men may have breached their duties by failing to resolve a deal between RQ and gambling giant Tattsbet.

That issue is currently before the Supreme Court in Brisbane, with RQ alleging it's owed up to $130 million by Tattsbet in access fees paid by corporate bookies.

Justice White also recommended eight other racing identities be referred to the watchdog for investigation.

They are former RQ board members Tony Hanmer, Bob Lette, Brad Ryan, Wayne Milner, and Kerry Watson and former RQ executives Sharna Reid, Malcolm Tuttle and Paul Brennan.

Lawyers for Mr Bentley, Mr Ludwig, Mr Hanmer and Mr Milner last week released a four-page response to the inquiry's findings.

They claim the $3 million inquiry failed to investigate a number of significant management issues and the government "conveniently cut off" the terms of reference for the inquiry in April last year.

They say the Queensland attorney-general's description of Racing Queensland pre April 2012 as "the dark days of racing" shows an unbalanced reading of the commission's 488-page report.

The response states that "wild accusations" about millions and millions of dollars being spent by Racing Queensland on certain projects had not been substantiated.

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Greens seek inquiry into Manus Island riot

The Greens are seeking an inquiry into the Manus Island incident which left one man dead. Source: AAP

MANUS Island detention centre staff will get a chance to publicly provide first-hand evidence of a riot that left an Iranian asylum seeker dead.

The Australian Greens are expected to get Labor support on Monday to set up a Senate inquiry into the events of February 16-18 on the Papua New Guinea island where Australia operates the facility.

Greens senator Sarah Hanson-Young said the inquiry would have the independence that an immigration department review into the incident lacked.

"Senate inquiry hearings will give the workers who were in the centre on that night the legal protection that they need to tell their stories freely," she told AAP on Friday.

"The fact is that a young man who was in Australia's care has been killed and we should have a rigorous, independent inquiry to find out what happened."

Iranian man Reza Berati, 23, died and 62 others were injured in the clash.

A preliminary PNG police report suggested Mr Berati was killed by repeated blows with a plank of wood to the head.

It's also suggested locals and PNG police were allowed into the detention centre by private security operators.

The terms of reference for the inquiry cover the sequence of events that led to Berati's death, the involvement of contractors and other service providers, the immigration department's response, the immigration minister's conduct and resettlement arrangements in PNG.

The government has described the death as tragic, but stands by its offshore processing policy and Operation Sovereign Borders, which address the flow of asylum seeker boats and people-smuggling.

The Senate's first order of business on Monday will be resuming debate on abolishing the Climate Change Authority and the carbon tax.

Labor and the Greens continue to oppose the bills.

Environment Minister Greg Hunt will move in the lower house on Monday a motion calling on the Senate to pass the bills noting that it affected 75,000 businesses, with 348 companies paying $6.6 billion in direct emissions liabilities.

DLP senator John Madigan will seek Senate support for an inquiry into changing the Constitution to confirm all powers relating to marriage rest with the Commonwealth and that those powers may only be used to confirm marriage to be between a man and a woman.

The House and the Senate will sit from Monday to Thursday.

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Power giants top greenhouse gas list

Figures show the top five power companies generated 92 million tonnes of greenhouse gases last year. Source: AAP

FIVE power station operators accounted for almost a third of Australia's greenhouse gas emissions over the past year.

The Clean Energy Regulator on Friday released its 2012/13 report on greenhouse emissions by corporations.

The top five polluters - Macquarie Generation, AGL Energy, Delta Electricity, International Power and Stanwell Corporation - generated almost 92 million tonnes of carbon emissions out of a total 309 million tonnes.

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PM says no blame on Qantas

PM Tony Abbott says Qantas management shouldn't be blamed for the loss of 5000 jobs. Source: AAP

PRIME Minister Tony Abbott reckons he is not going to make political capital out of a difficult and anxious day for Qantas workers.

But he says it's not the job of government to save business, it's to ensure the "fundamentals" of the economy are strong.

Mr Abbott was responding to a question from Opposition Leader Bill Shorten about what the government would do to help 5000 Qantas workers who are set to lose their jobs.

"The last thing I'm going to do today is to play politics or to try to make capital out of what is a very difficult day," he told parliament on Thursday.

"The fundamental job of government is to ensure that our economy is as strong as possible and that means getting the fundamentals right."

He said no blame should be laid on Qantas management which was "doing its best" to secure a good future for its workers.

"I am right when I say that there will be better days ahead in a stronger economy, when workers can get the jobs they need."

Mr Abbott said the government has been in regular contact with Qantas.

"There are a number of things that Qantas would like and this government is to do what it can for Qantas, consistent with responsible economic management," he said.

"That essentially means that we should ensure that Qantas can compete on a level playing field, we want to ensure that Qantas is not competing against its rivals with a ball and chain around its leg."

But he said the difficulty is what the government does for one business it has to do for others.

Despite the Mr Abbott's vow against playing politics on Qantas, Deputy Prime Minister Warren Truss blamed the carbon and mining taxes partly for the carrier's woes.

Mr Truss dismissed an accusation by Mr Shorten that the federal government always blamed workers.

He said the carrier had a future but aviation was changing.

Many of the jobs of the past will not be required in the future, Mr Truss said.

"It is simply beyond dispute that Qantas is faced with the difficulty of having to compete with airlines in countries where the wage structure is very different from what it is in Australia," he said.

"That's not the fault of our workers."

Mr Shorten asked Mr Abbott about speculation the government would offer Qantas support for a stand-by facility.

"What will be the implication for Qantas jobs, Qantas share price, Qantas shareholders, if that speculation does not result in action, and when will the government act to support Australia's national airline," he said.

Mr Abbott repeated the need for a "level playing field" for Qantas, a hint at a repeal of the Qantas Sale Act, which imposes foreign ownership restrictions on the carrier.

The government was determined to help Qantas but was wary of "additional assistance" sought by other airlines.

"Why should the government do for one what it's not prepared to do for all, or what is not necessarily available for all," Mr Abbott said.

To help Qantas, the opposition should support the government by agreeing to scrap the carbon tax, he said.

Mr Shorten asked Mr Abbott about ongoing speculation the government would offer Qantas support for a stand-by facility.

"What will be the implication for Qantas jobs, Qantas share price, Qantas shareholders, if that speculation does not result in action? And when will the government act to support Australia's national airline?" he asked.

Mr Abbott repeated the need for a "level playing field" for Qantas, a hint at a repeal of the Qantas Sale Act, which imposes foreign ownership restrictions on the carrier.

The government was determined to help Qantas but was wary of "additional assistance" sought by other airlines.

"Why should the government do for one what it's not prepared to do for all, or what is not necessarily available for all?" Mr Abbott asked.

To help Qantas, the opposition should support the government by agreeing to scrap the carbon tax, he said.

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Qantas boss remains positive

QANTAS chief executive Alan Joyce remains optimistic the airline's new strategy will return it to profitability despite posting a $252 million first half loss.

Mr Joyce told reporters in Sydney on Thursday that its plan to axe 5,000 jobs, defer or sell aircraft and cut unprofitable routes would return Qantas to profitability in just three-and-a-half years.

"We have a plan to cover every aspect of the business to get it back to profitability and we have the courage and commitment of the management team to make that happen," he said.

This is despite what he calls challenging conditions in the domestic and international aviation industry and a share price that has fallen from over $5 to just over $1 in the five years he has held the top job.

Mr Joyce has complained that during the past five years Australia has been hit by a giant wave of flights into the country and its main domestic competitor Virgin Australia has an unfair advantage in that its major shareholders are foreign-owned airlines.

"The impact of this unlevel playing field on our domestic airlines cannot be ignored," he said.

The growing number of flights into Australia seems unlikely to change and, even if the federal government does change the Qantas sale act to allow higher foreign ownership of Qantas, someone still has to want to buy it.

Qantas' former chief economist Dr Tony Webber on Thursday said this seems unlikely considering its record loss and falling share price.

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AGL profit down but should get high prices

AGL Energy's half year net profit has fallen 27.1 per cent to $261 million. Source: AAP

THE Abbott government's repeal of the carbon tax and a bump in energy prices is set to benefit AGL Energy more than its utility rivals.

Australia's second largest energy retailer posted weaker first half net profit on Wednesday, falling 27.1 per cent to $261 million.

However the company's chief executive Michael Fraser declared the fierce competition of late that led to discounting of utilities and a fight for customers largely over.

The combination of gas prices soaring, due to the looming start of Australian gas exports, plus the federal government's planned repeal of the carbon tax and review of renewable energy targets makes coal-fire electricity more economic again and wind and solar power less so.

AGL has more invested in coal power than rival Origin Energy, through owning the Loy Yang brown coal power station in Victoria and has made a $1.5 billion bid for the NSW state-owned coal power giant Macquarie Generation.

The Australian Competition and Consumer Commission is due to decide on the takeover this week but it has serious competition concerns about the deal, which some say would send prices rising further.

Mr Fraser said he was confident AGL had addressed any concerns by offering to sell supplies to competitors, pointing to the fact the market was over-supplied with electricity.

"There is no fact base to support those concerns," he told AAP.

He is predicting an improved financial performance in the second half of this financial year and next year, including a full six month contribution from recently acquired rival APG.

The company has also struck a deal to more than triple its wholesale gas sales into Queensland next year at far higher export parity pricing and margins of $3.40 a gigajoule.

He acknowledged that would add to the difficulties for high-gas user businesses at a time when struggling manufacturers are shutting and demanding prices and gas supplies be kept lower for locals.

"I think the good news is the big increases in electricity prices are over," Mr Fraser told AAP.

"You can't undo the fact that this country has approved three huge LNG (export) projects ... you can always look at what you might do in the future with respect to new gas resources coming on."

AGL's full year guidance for underlying profit this year of $560 million to $610 million compares to $598 million last year.

The reasons it cited for the weaker profit on Wednesday included the nation experiencing its warmest winter on record, the discounting and businesses and households becoming more energy efficient.

Mr Fraser predicted that renewable forms of energy would increasingly reduce demand - something that has already adversely affected utility companies in Europe - but that would be offset by population growth and the deregulation of power pricing in NSW and Queensland.

Morningstar analyst Gareth James said AGL's 2012 purchase of Australia's lowest cost electricity plant Loy Yang was looking shrewd as it was made at a time when the previous government were trying to shut coal plants.

The company's shares closed 3.0 cents lower at $15.95.

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New governor plays down legal rift in Qld

QUEENSLAND'S chief justice and next governor doesn't think the rift between the judiciary and the Newman government is major or long-lasting.

Premier Campbell Newman announced on Wednesday that Paul de Jersey would become the state's 26th governor from July 29, taking over from Penelope Wensley.

At a news conference announcing his appointment, Justice de Jersey defended Mr Newman's right to express his opinions and played down the fallout from his criticisms.

The premier has incurred the wrath of the legal profession for suggesting some defence lawyers acting for bikies are hired guns who are part of the criminal gang machine.

He was also accused of breaching the separation of powers when he urged the judiciary in 2013 to start realising what the community wanted and act accordingly.

"A degree of tension is a healthy incident of a democracy which respects the rule of law as ours does," Justice de Jersey said on Wednesday.

"I do not see any persisting adverse effect on the independent legal profession or court system.

"I don't think there is a major problem in the relationship between the court system and the executive legislative branches of the government at all."

Justice de Jersey said that as governor, he would resist any urge to offer his opinions when giving assent to new laws.

"A governor makes a mark in other ways, principally through interaction with the people," he said.

Mr Newman said Justice de Jersey had served the people of Queensland well throughout his legal career.

"His extensive experience and service to the people of Queensland makes him not just qualified but the perfect fit (as governor)," he said.

Opposition Leader Annastacia Palaszczuk said Justice de Jersey was a good choice and his appointment would have the support of the community.

"It's a decision that we can all agree on," Ms Palaszczuk said.

The Australian Monarchist League's Queensland branch welcomed the appointment of Justice de Jersey, a constitutional monarchist.

"Justice de Jersey has spent a lifetime in the service of the Queensland people and there is nothing more fitting than his appointment to signify an outstanding career dedicated to our community," spokesman Ben Collison said in a statement.

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