Indonesia talks take positive trajectory

INDONESIA and Australia have turned a corner in their efforts to restore bilateral relations after the upheaval caused by last year's spying revelations, with Jakarta noting a "positive trajectory" after the latest meeting.

Indonesia's Foreign Minister Marty Natalegawa says his talks with his Australian counterpart, Julie Bishop, at The Hague two weeks ago were very positive, with the pair to meet again soon.

Indonesia has invited Prime Minister Tony Abbott to attend an open government forum in Bali next month, and its ambassador - recalled at the height of the crisis - has been making more frequent trips to Canberra.

In the talks, Dr Natalegawa has stressed there should be "no surprises" in the future relationship.

In other words, no further revelations such as those leaked by US defence contractor Edward Snowden last year, when Indonesia learned Australia's spy agency had been intercepting the mobile phone calls of President Susilo Bambang Yudhoyono, his wife and his inner circle.

Dr Natalegawa says Indonesia has now "priced in" in its bilateral relationship the past intelligence activities of Australia, and also the thorny issue of pushing asylum seekers back to Indonesia.

Military, police and intelligence co-operation was frozen in November while a six-point "road map" to restore the relationship was negotiated.

Dr Natalegawa says he's now confident the groundwork has been laid for step two - an ethical code of conduct.

"My sense is that we are now very much on a positive trajectory ... in dealing with both the two issues we've been grappling with, the issue of the Snowden revelations as well as the issue of asylum seekers," he told AAP on Monday.

The code of conduct will be a simple undertaking, in the form of "what we will do and what we won't do", the minister says.

He is in touch with Ms Bishop almost daily in an effort to resolve the issues quickly.

Dr Yudhoyono's term is nearing its end and he no doubt wants to leave office in October with the legacy of strengthening ties with Australia.

But Dr Natalegawa says the matter is too important for a deadline.

"It's not about the president, it's not even about this present government," he said.

"It's about wanting to get to where we have been before, because in our view the recent developments must be seen as being an aberration.

"The trajectory over the past 10 years actually, during the president's tenure, it has been a positive trajectory."

Indonesia's next president is most likely to be Jakarta's popular governor, Joko Widodo, a foreign policy novice.

He may wish to retain the expertise of Australian-educated Dr Natalegawa for continuity.

But the minister says he is not yet thinking that far ahead.

"I'm just focusing on ... making sure that we hand over the foreign policy portfolio in a good state to the next government," he said.

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Kiwi steady ahead of new market signals

THE New Zealand dollar is little changed as investors prepare for minutes to the latest US Federal Reserve policy review and Australian employment figures.

The kiwi traded at 85.93 US cents at 5pm in Wellington from 85.81 cents at 8am and 85.97 cents on Friday in New York.

The trade-weighted index rose to 80.31 from 80.03 at the New York close.

Traders are waiting for the release of minutes to March's Federal Open Market Committee meeting on Wednesday in Washington to get a clearer steer on when the US central bank might start raising interest rates.

Chair Janet Yellen surprised investors when she indicated the Fed would start hiking rates six months after the end of quantitative easing, although has softened the tone on those comments.

"People will be watching to see whether the FOMC minutes remind us that slightly hawkish shift back in the March meeting is for real or not," said Imre Speizer, market strategist at Westpac Banking Corp in Auckland.

"It's all about the US dollar at the moment and will continue to be this week."

Investors are also waiting for Australian employment figures, which are expected to show the nation added 5,000 jobs last month, according to a Reuters poll of economists.

The kiwi was little changed at 92.63 Australian cents from 92.51 cents on Friday in New York.

The kiwi fell to 88.57 yen from 88.79 yen on Friday and was unchanged at 62.73 euro cents.

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Talks on Japan trade deal difficult: PM

PM Tony Abbott says he's optimistic but not certain about finalising a free trade deal with Japan. Source: AAP

TONY Abbott's push to resolve free trade talks with Japan appears on shaky ground, with the prime minister admitting he's not certain of striking a deal during his visit to Tokyo.

Mr Abbott had hoped to finalise a free trade deal with Japan, Australia's second-largest trading partner, as a matter of priority on his first official visit to north Asia.

He ambitiously pledged at the September election to end years of stalemate and strike free trade agreements with Japan, South Korea and China within 12 months.

But a resolution from fierce last-minute talks in Tokyo has eluded negotiators, who have struggled all week to gain ground on several final issues.

Mr Abbott said on Sunday he was "optimistic" a deal could be struck during his stay in Tokyo, but conceded the talks had been difficult.

"This government is determined to bring them to a swift and satisfactory conclusion," he told reporters in Tokyo.

"I'm hopeful but not certain."

Trade Minister Andrew Robb arrived in Tokyo ahead of the prime minister to try and break the impasse, but after hours with Japan's agriculture minister could only say talks had entered an advanced but difficult stage.

Mr Abbott said negotiations had "meandered" under Labor after former prime minister John Howard initiated talks in 2007.

Foreign Minister Julie Bishop also blamed the opposition for neglecting the task, saying the federal government had "six lost years" to regain.

She dismissed suggestions Australia's recent victory in the UN's top court over Japan's whaling program could have stalled talks, saying both nations would "move on".

"We are hopeful of signing, or at least getting an official confirmation about the state of the Japan Australia free trade agreement," she told ABC TV.

The deadlock could be on the agenda when Mr Abbott meets his Japanese counterpart Shinzo Abe on Sunday evening for a private dinner.

Mr Abbott's visit will be formally acknowledged in a state ceremony on Monday, but the prime minister said he'd been "thrilled" at the welcome so far.

He said there was more than trade behind his visit to Japan, with an announcement on defence co-operation with the conservative Abe government expected in coming days.

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Police shoot man in Brisbane

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

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

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

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

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

Police Union president Ian Leavers said the situation escalated quickly.

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

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

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

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

It is the second police shooting at the unit complex.

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

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

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

"There should be no other option."

The Ethical Standards Command is investigating.

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Abbott's plea to WA voters

Prime Minister Tony Abbott has pleaded for Western Australian voters to back Liberal candidates. Source: AAP

PRIME Minister Tony Abbott has made a last-ditch plea to West Australian voters as they head to the polls for a Senate election re-run.

Before jetting out of the country to Asia on Saturday, Mr Abbott recorded a message saying Labor and the Australian Greens in the Senate were standing in the way of his government's plan to repeal the mining tax and carbon tax.

"If you want to get rid of these anti-West Australian taxes ... that means voting Liberal," Mr Abbott said.

He said coalition candidates are "absolutely committed" to scrapping the taxes and the government hoped to get the numbers in the upper house from July to pass the repeal legislation.

"Send a strong message to Canberra, send a strong message to the Labor Party," Mr Abbott said.

"You can't say one thing in Perth and do the opposite in Canberra.

"That's my plea."

The outcome of Saturday's election is important for Australia's future, the prime minister added.

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Boy's parents located

POLICE have tracked down the parents of a young boy who was found wandering alone through suburban southwest Sydney.

Residents of Claymore called police after spotting the boy in the street wearing pyjamas about 7.30am Saturday.

Estimated to be aged two or three years old, the boy was cared for by officers until his parents were located and the search was called off.

The police thanked and updated the public about 2pm.

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Majority of miners under financial stress

MORE than four in every five market listed miners are in a state of 'marginal or distressed' financial health, analysts warn.

Holders of mining sector shares should also brace themselves for weak quarterly production updates in April, Lincoln Indicators said.

Given Australia's share market is dominated by resources stocks, with 700 mining companies and another 250 energy groups, Lincoln Indicators' 84 per cent figure is significant.

The group, founded by academic and former Olympian Merv Lincoln, assesses a company's profitability, cashflow, liabilities and assets.

It found just eight per cent of mining companies were financially strong or satisfactory.

Study author Dennis Ng said the purpose of the study was not to detract from the sector, but to warn people against investing in businesses they did not understand.

"It is an area where there is a lot of jargon, very technical information is involved as well and it makes it really difficult for novice investors to enter," Mr Ng told AAP.

"The overwhelming majority are tiny explorers pretty much set up for a high risk of failure, hence why a large majority are in a marginal and distressed state of financial health."

Investors often overreacted to drill results and had to educate themselves, he said.

Household names such as BHP Billiton, Rio Tinto and other large stocks were safer bets, but even experienced investors have been caught by surprise by gold major Newcrest Mining's financial woes, Mr Ng said.

Smaller miners that Lincoln preferred due to superior returns included BC Iron, Sandfire Resources and Mineral Resources.

Lincoln is predicting weak March quarter production reports for BHP Billiton and Fortescue Metals, which could point to weaker full year cashflows and earnings, which will be reported in August.

The impact of disruptions to shipments due to cyclone-induced closures at Port Hedland and industrial disputes - the latest involving tugboats - will be exacerbated by weaker commodity prices.

"What's going to separate the mice from the men are the changes they have implemented at port and the whole of their operations to cater for wet weather," Mr Ng said.

February iron ore shipments to China out of Port Hedland fell nine per cent from January.

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Authorities investigate electrical blasts

Loud sounds have hit a Victorian town as high-voltage powerline faults cut power to 80,000 people. Source: AAP

AN investigation is underway into the cause of a series of loud electrical blasts that rocked a Victorian town for 90 seconds as high-voltage powerline faults cut power to 80,000 people.

The faults near a Morwell substation led to a large so-called flashover, smoke and a loud cracking noise, power company SP AusNet said.

A flashover looks and sounds like an explosion, but SP AusNet operations general manager Alistair Parker said it was unlikely anyone was in danger at the time of the incident.

"A flashover is like lightning. It's electricity seeking a path to earth," Mr Parker told reporters on Friday.

He said the fault lasted for 90 seconds before the electricity was switched off.

Power was cut at 7.30am for 80,000 people and may have affected up to 30km of power lines.

"Three hours later, by 10.30am roughly, we had all but 89 customers back on supply," Mr Parker said.

He said an investigation was already underway.

Mr Parker said no one was hurt when the blast went off.

"While it looked traumatic and it would have been frightening to have seen, I don't believe anybody was in actual danger at that time," he said.

"These are very, very rare events. I can't think of the last time it happened here."

Residents posted video of the blasts on social media, showing a series of glowing explosions around the substation.

"It was a deep, rumbling, arcing noise and then all of a sudden I saw this massive fireball," David, who lives near Morwell, told ABC radio.

"At first I thought we were under attack from an atomic bomb.

"It looked like a mushroom cloud going up and you could see the electrical arcing that was going through the cloud. It was carrying the arcing with it."

Morwell resident Jaye Atlee said it looked like an electrical storm.

"I've never seen anything like it. It was a bit of a glow and a really loud rumble," she told the ABC.

Morwell was recently blanketed with smoke after a deliberately-lit blaze spotted into the nearby Hazelwood coalmine in February and burned for 45 days.

Premier Denis Napthine said he had been told the recent fire had not affected the substation involved in Friday's incident.

"This is disappointing for the people of Morwell," Dr Napthine said.

"But I think they're very pleased there has been a quick response to get the electricity back on as soon as possible."

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Extortion link to man's disappearance

A Sydney man last seen jumping into a car in the city's west is believed to have been kidnapped. Source: AAP

A SYDNEY man believed kidnapped had pleaded not to be extradited from the United States over a murder because a crime family had put a $100,000 bounty on his head.

Six years later, Raphael Joseph climbed into a car with at least two other men in Sydney's west in the early hours of March 21 and hasn't been seen since.

NSW's homicide squad believe an extortion attempt may be behind Mr Joseph's disappearance.

Mr Joseph, 38, was extradited from the US to Australia over his suspected involvement in the fatal shooting of Dimitri Debaz in the car park of the Playhouse Hotel in Sefton in 2002.

Mr Joseph, known as Huss or Hussany to his mates and family, fled to the US and was arrested in 2006 after a four year search.

In 2008, he pleaded with then US Secretary of State Condoleezza Rice to keep him in the country, claiming he would be tortured or killed by a rival gang in Australia.

His plea failed and he appeared in court in Sydney in July, 2008, charged with murder, but the case was later dropped.

It is understood he was affiliated with the Assyrian gang Dlasthr - The Last Hour.

He claimed an Australian crime family had a $100,000 bounty on his head payable to anyone who killed him, and members of Sydney's Bronx Boys gang wanted to murder him.

His lawyer filed documents at the time alleging Mr Joseph's friends and associates had been kidnapped and tortured.

NSW police believe Mr Joseph himself has now been kidnapped.

Detective Superintendent Mick Willing said extortion was a potential motive.

Mr Joseph's family was due to hold a media conference with police, but pulled out at the last minute because they were scared and distressed.

Mr Joseph lived in the inner-west, waterfront suburb of Chiswick.

On March 20, hours before he went missing, he spent time at the Star Casino and may have also met someone at a McDonald's in Auburn.

He was last seen getting into a silver sedan on Dartbrook Road at Auburn late on Thursday, March 20, or early the next morning.

His family reported him missing on March 22.

Police have found Mr Joseph's white Mercedes car, which he drove to Auburn.

Det Supt Mick Willing said police believe a number of people knew where Mr Joseph was.

"His poor family are worried sick and are desperate to know what has happened to him," he told reporters on Thursday.

Police scoured bushland and private properties in the Flemington area last week for evidence.

Anyone with information can contact Crime Stopper anonymously on 1800 333 000.

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Authorities defend handling of girl's case

SOUTH Australian authorities have defended how social workers handled the case of a four-year-old girl who died after being repeatedly forced to ride a motorbike.

Families SA will review its involvement with Chloe Valentine and her mother Ashlee Polkinghorne in the years leading up to the girl's death in January, 2012.

Deputy chief executive for child safety David Waterford said the department appreciated the stress on the wider family, and described Chloe's death as a dreadful tragedy.

"I do appreciate the stress of the family and the soul searching that's going on," he told reporters on Thursday.

He said the department was looking at things that "we could have done differently if we'd known more".

"But, at this point in time, based on all of the information that I've seen, the social workers involved made the right decisions."

Mr Waterford has also rejected claims from family members that up to 200 reports were made to Families SA in relation the young girl and her mother.

He said the department received 22 notifications over a three-year period and none in the six months leading up to the Chloe's death.

Those reports were all investigated but the complaints could not be substantiated.

On Wednesday, in the South Australian Supreme Court, Polkinghorne, 22, and her former partner, Benjamin McPartland, 28, were jailed for at least four years for the manslaughter of Chloe through criminal neglect.

The couple made the 17kg girl get back on a 50kg motorbike over a three-day period, despite her suffering massive injuries from repeatedly crashing and falling off.

When Chloe was eventually unconscious in a semi-vegetative state, the couple waited eight-and-a-half hours before calling an ambulance.

During that time, they went on Facebook, accessed internet banking, googled what to do with an unconscious person and smoked cannabis.

In jailing the couple, Justice Trish Kelly said that, unfortunately for Chloe, "your place was a dangerous place for that child".

Mr Waterford said in the last visits to the home by Families SA staff, Ms Polkinghorne had been found to be "interacting very appropriately and positively" with her daughter.

As well as the review by Families SA, Chloe's death will also be referred to the independent Child Death and Serious Injury Committee.

The South Australian opposition said the case highlighted the need for an independent commissioner for children who would have the necessary investigative powers to help prevent such deaths.

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