Train kills five elephants in east India

A passenger train has hit a herd of elephants at a railway crossing in eastern India, killing five. Source: AAP

A PASSENGER train killed five elephants when it ploughed into a herd crossing railway tracks in eastern India.

R.N. Mohapatra, a railway spokesman, says the train struck the animals early on Sunday in the Rambha forest area, about 180km south of Bhubaneshwar, the capital of Orissa state.

J.D. Sharma, chief conservator of the state's wildlife department, accused the railway authorities of ignoring his department's warning that trains should slow down because a herd of elephants was moving in the area.

Mohapatra said the warning came too late.

Dozens of elephants have died in India in recent years after being struck while crossing railway tracks that often run through national parks and forests.

India's wild elephant population was recently estimated at about 26,000.

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Missing autistic boy found alive in WA

A 14-YEAR-OLD boy with autism and cerebral palsy who was reported missing at the weekend has been found alive in Western Australia's Wheatbelt region.

Dennis Dear was riding his quad bike with his father in Flint, about 80km southeast of Perth, at 9.30am (WST) on Sunday when he disappeared.

Police had been concerned Dennis would be exposed to the 40 degree temperature and it was believed he didn't have any water with him.

His quad bike was found on Sunday night and he was found on Monday morning.

Police say a helicopter is taking Dennis to hospital for a check-up and they described him as being relatively well.

State Emergency Service volunteers, police, officers from the mounted section and the police helicopter were involved in the search.

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NDIS, education before election: Gillard

PRIME Minister Julia Gillard says her government has two major items to implement in 2013 before going to an election - introducing the National Disability Insurance Scheme and undertaking further major education reforms.

Ms Gillard took time off from her holidays to make an appearance at the Woodford Folk Festival on Sunday.

She says the government would continue to work to keep the economy strong and jobs rolling, but the other two issues were her "two big ambitions for 2013 before we get around to winning that election".

"I want to see us launch the National Disability Insurance Scheme on the first of July," she told the festival crowd.

"Then the other thing I've got a really big focus on is delivering on further education reforms.

"We had a fair old wake up call in international testing (recently). We can make sure our kids can get a world-class education."

She said the government had already made changes to a number of schools that had been struggling.

"What we've got to do now is take it and upscale and give it to every school and make a difference to every school.

"I'm absolutely determined that we're battling through on that."

A federal election is not due to until October next year, where Labor hopes to regain its majority.

Ms Gillard has led a minority government with the support of key independents Tony Windsor and Rob Oakeshott since 2010, but she said the situation had not dented her agenda.

She pointed to a number of achievements including introducing the carbon tax, putting healthcare on a sustainable footing, introducing the Queensland flood levy, education and aged care reforms. But did not mention asylum seeker policy.

"The really big decisions this government's taken would be effectively the same," she said.

"We would have done the same things as a majority government because they are the right thing to do.

She said the introduction of carbon pricing was in some ways made better by the negotiations needed in a minority government.

"It meant we could work across both houses - the house and the Senate - not just put something in the Senate and have it knocked over, which was the history of the Carbon Pollution Reduction Scheme, but actually work in a way which the proposition that went to the parliament was going to get carried."

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NSW man charged with stealing guns

A YOUNG man has been charged with the theft of 22 firearms, some of which have not been recovered.

Some time between December 22 and 27, the guns were stolen from a farming property at Hillston, in southwestern NSW.

Following an extensive investigation, a 21-year-old man was charged on Saturday at Griffith police station with a raft of theft and firearms offences.

Police have recovered 17 of the stolen guns and continue to search for the remaining firearms.

The man has been granted strict conditional bail.

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Kylie gears up for a special Sydney NYE

POP princess Kylie Minogue will meet with Sydney New Year's Eve planners to put the finishing touches on plans for the big night.

As creative ambassador for the event in 2012, the UK-based singer developed the event's theme "embrace" and chose its colour scheme and soundtrack.

She arrived in Sydney early on Friday, and will meet with New Year's Eve organisers on Saturday afternoon.

Minogue told reporters on Saturday she was jet-lagged, but excited to be welcoming the new year from Sydney streets.

"It's so exciting to be seeing signage in the streets. I keep telling anyone who'll listen: 'Look! Look up there!'" she said.

"I can't wait."

She said she designed the New Year's Eve "embrace" theme to mean different things to different people - but for her, it means sharing a big hug with that special someone.

Asked who or what she would be embracing during the midnight countdown on Monday, the star did not hesitate.

"My boyfriend, firstly," she said.

"And I have some family coming up for New Year's Eve.

"I love the concept of embrace. It can mean so many different things, and I'm looking forward to embracing new possibilities for the next year."

Event producer Aneurin Coffey said Minogue had been a hands-on creative ambassador.

"She's been a lot more involved than we expected," he told reporters on Friday.

"When you actually get someone like Kylie on board, you never know quite what you're going to get, but she was absolutely ecstatic to be involved."

She will be honoured with a one-of-a-kind sparkling musical note firework.

The semiquaver will be one of 100,000 individual pyrotechnic creations this year, including brand new koala, octopus and hand images up in lights.

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Australia condemns Japan whale hunt

The Australian government has vowed to continue its fight against Japan's whale hunt. Source: AAP

THE Australian government has vowed to continue its fight against all forms of whaling as Japan's whaling fleet leaves for its annual hunt in the Southern Ocean.

"The Australian government condemns all commercial whaling, including Japan's so-called 'scientific' whaling," Environment Minister Tony Burke said in a statement.

"It is particularly offensive that Japan's whaling will take place in the Southern Ocean Whale Sanctuary established by the International Whaling Commission.

"We will keep working to achieve a permanent end to all commercial whaling."

The Australian government started legal proceedings at the International Court of Justice in May 2010.

Both Australia and Japan have filed their detailed written arguments to the court and the case has been set down for oral hearing in The Hague.

The Australia government anticipates the case is likely to be listed for hearing in the latter half of next year.

Attorney-General Nicola Roxon said the decision to start legal proceedings was not taken lightly.

"The Australian government considers Japan's whaling program is contrary to its international obligations and should stop," said Ms Roxon.

Citing the Fisheries Agency, Kyodo News reported on Friday three vessels had left from the far-western port of Shimonoseki, while environmental group Greenpeace said the mother ship had left another port also in the country's west.

The fleet plans to hunt up to 935 Antarctic minke whales and up to 50 fin whales through March, the fisheries agency said earlier.

Greens Acting Leader Adam Bandt called on the Australian government to seek a court injunction to stop the whaling.

"The Labor government and the coalition government before its attempts to stop this illegal whaling have been an abject failure because they've been half-hearted," he told reporters in Melbourne.

"The government says it wants to do something about it and has commenced proceedings in the court, but it hasn't done the simple thing that would actually stop the whaling, and that is go off and seek an injunction.

"If the Japanese government can go off to a United States court and get an injunction to stop the Sea Shepherd, well then the Australian government can go off as well and get an injunction to stop this illegal whaling."

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Vietnam police arrest dissident lawyer

VIETNAMESE police have detained a well-known dissident lawyer as part of a continuing government crackdown on opposition to its rule.

State-run Tuoi Tre newspaper reported that Le Quoc Quan was taken into police custody in Hanoi on Thursday for alleged tax evasion.

Neither authorities nor Quan's family were available for comment.

Quan is one of Vietnam's better-known dissidents and maintains an anti-government blog.

In August, he needed hospital treatment after being beaten outside his home by men he suspected were state agents.

International human rights groups have criticised Vietnam for jailing dissidents for peacefully expressing their views.

Hanoi maintains that only lawbreakers are put behind bars.

In 2007, Quan was detained for three months on his return from a US government-funded fellowship in Washington.

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Leighton wins two LNG contracts

LEIGHTON Holdings has secured $1.2 billion worth of contracts linked to the $34 billion Ichthys liquefied natural gas project in Darwin.

The first contract, worth $923 million, is to build infrastructure such as roads, foundations and trenches, at Blaydin Point for Ichthys' onshore facilities.

Construction is due to start in May and be completed by July 2016, Leighton's wholly-owned subsidiary Leighton Contractors said in a statement on Friday.

It is the third project Leighton had won for Ichthys' onshore processing site.

Separately, the company said it had clinched a $280 million operations and maintenance contract for Blaydin Point's temporary facilities.

Leighton Contractors will operate and maintain services for all temporary site facilities, including power supply, water treatment plants and pest control, for more than four years during the construction phase.

The temporary facilities were currently being built by Leighton Contractors' infrastructure division.

"We see the LNG and coal seam methane markets offering significant opportunities for the Leighton Group, which has developed a high degree of competency in delivering essential infrastructure for large resources projects," Leighton chief executive Hamish Tyrwhitt said.

The Ichthys gas field lies about 200kms off the West Australian coast.

It is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of liquefied petroleum gas a year.

Gas will be piped from the Ichthys field to Darwin, about 900km away, for processing and shipping.

Leighton shares were cents at $17.96.

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Man arrested after Darwin street lockdown

A MAN who had allegedly been threatening residents in suburban Darwin street has been arrested.

Police say they arrested the man shortly after 2.30pm (CST) on Thursday after responding to reports of the man had been threatening locals in Progress Drive, Nightcliff.

They confiscated a crossbow inside a unit in the street.

Armed police cordoned off parts of the street and evacuated a local childcare centre.

Senior Sergeant Bob Harrison says the man gave himself up to police willingly.

"The person just made threats and we had to take it seriously," he told reporters in Nightcliff.

"The gentleman actually exited the unit himself, he actually didn't know what was happening and came to us voluntarily."

The man was known to police and is expected to be reviewed under the Mental Health Act.

Police are expected to lay charges.

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Sand sculptors decorate Vic beach

MERMAIDS, whales, submarines and sharks are appearing on a Melbourne beach, thanks to a crafty clique of international sand sculptors.

About 3500 tonnes of sand will be shaped into intricately detailed sculptures on the Frankston waterfront over the next four months, the Sand Sculpting Australia group says.

One sculpture created on Thursday depicts Poseidon, the Greek "God of the Sea".

The artists are showcasing their silica-shaping skills to the public, with the theme of Under the Sea, until April 28.

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Greens call for new bushfire body

THE nation's bushfire research body should be replaced with a new one because it's set to run out of government funding, Greens MP Adam Bandt says.

The Bushfire Cooperative Research Centre (BCRC) examines the social, environmental and economic impacts of bushfires.

It's funded on a project-by-project basis by the commonwealth until June 30, 2013, at which point its fate remains uncertain.

Mr Bandt says the body should be replaced with a new national fire institute which will ensure it's work continues.

"It's time to transfer to a national body ... to oversee Australia's preparedness to deal with major fires, with the growing risk of climate change meaning more frequent fires of greater severity," Mr Bandt told AAP on Wednesday.

The risk of losing the body would be not having an accurate national response to major fire emergencies, he said.

"We are potentially going to face a Black Saturday every year or two, and that's a terrifying prospect," Mr Bandt said.

The body's CEO Gary Morgan welcomed the idea, saying its work was far from finished and there was still a lot more needed to understand a range of issues, including how to manage volunteers, smoke management, creating models to prevent fire risk and better biodiversity management.

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Russia's Kalashnikov in intensive care

Russian rifle designer Mikhail Kalashnikov has been hospitalised after complaining of weakness. Source: AAP

RUSSIA'S legendary rifle designer Mikhail Kalashnikov has been hospitalised in intensive care after complaining of general weakness, his assistant says.

The 93-year-old father of the AK-47 has been having heart problems and feeling poorly since March, when he stopped showing up for work, his aide told the RIA Novosti news agency on Tuesday.

"When I visited him at home last week, he told me that nothing seemed to hurt, but that he simply had no strength left," his assistant Nikolai Shklyayev was quoted as saying.

"It seems that this is just his age showing," Shklyayev said.

The assistant said Kalashnikov was sent to intensive care on Thursday after complaining of swelling.

"I last got in touch with (Kalashnikov's) driver. He said that everything was fine," Shklyayev told the Interfax news agency.

Kalashnikov designed his iconic rifles - staples of armies across the world for the past half century - at the Izhmash factory in the central city of Izhevsk.

Originally formed in 1807, Izhmash remains one of the main producers of Russian weapons.

But like several other specialised industrial firms, it has been hit by dwindling post-Soviet demand and its failure to make up for this with foreign orders.

Kalashnikov and 16 colleagues raised the alarm about the situation at Izhmash in an open letter to President Vladimir Putin last month, saying production had fallen to an all-time low and the factory needed to be saved.

According to popular legend, Kalashnikov began designing weapons after having trouble with the rifles the Soviet Red Army was using during World War II.

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Blast kills two Chilean miners

TWO miners have died in an explosion in a mine located near the Chilean town of Andacollo, police say.

The victims, identified as Juan Herrera Cortes and Mauricio Rodriguez Vera, were employed at a mine operated by the National Mining Company, or Enamil, which began its activities in the Coquimbo region, 458 kilometres north of Santiago, in mid-November.

First reports received by the Carabineros - Chile's militarised police - and the Fire Department said that apparently the blast occurred before the miners could get out of the El Manzano 1 mine some 40 metres deep.

Another worker was in the vicinity at the time of the explosion but managed to save himself.

According to first reports, the mine had not been granted the proper authority to operate by the Sernageomin national mining service, a situation that will be investigated by the judicial authorities.

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Qld firies battle blaze near Fraser Coast

FIREFIGHTERS are battling a large bushfire which is threatening homes in an area near the Queensland south coast.

Eight crews are on the scene of the bushfire which has grown considerably since it broke out before noon (AEST) on Tuesday, on Maryborough Hervey Bay Road near the Fraser Coast.

A smoke hazard warning has been issued. Residents are being advised to close doors and windows and motorists are urged to exercise caution because of low visibility.

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Pell apology could signal change in church

Cardinal George Pell's apology to those abused by priests has been labelled a "minimal response". Source: AAP

VICTIMS' support groups say the Catholic Church could be preparing to acknowledge its involvement in historic child sexual abuse in Australia after Cardinal George Pell apologised to those who "suffered at the hands" of priests.

In a Christmas message, the Australian church's most senior cleric said he was "deeply sorry" for the hurt that had occurred, describing it as "completely contrary" to Christ's teachings.

But he stopped short of specifically mentioning allegations of child sex abuse by members of the clergy.

"I feel too the shock and shame across the community at these revelations of wrongdoing and crimes," Cardinal Pell said.

His apology came after the federal government this year announced a royal commission to the response of institutions, including the church, to cases of child sexual abuse in Australia.

Bravehearts founder Hetty Johnston said Cardinal Pell's statement represented a "cultural shift" in the church as it comes to terms with the role played by some its clergy.

Not all victims would find solace in his words, but it was an important message that needed to be said, she added.

"The silence, secrecy and the shame which the church have been leaders in, are the offenders best friend and our children's worst enemy," Ms Johnston told AAP on Monday.

"I think they're finally ready to face the demons and face the past and to hopefully put it behind them."

Catholics who had deserted the church over its handling of child abuse might also find some comfort in knowing Cardinal Pell had acknowledged the suffering, she said.

A spokesman for victims support group Broken Rites Dr Wayne Chamley said the church was beginning to "appreciate" the scale of its involvement in child abuse since the royal commission was announced.

"It's pleasing that he's opening up his heart to these people," Dr Chamley told ABC television.

"I don't think we've seen a statement in the past which was reflecting on the scale of what's gone on."

The church has been accused of covering up its involvement in child sexual abuse by silencing victims, hindering police and alerting offenders.

One senior NSW police investigator's damning testimony into how the church destroyed evidence and moved accused priests around the country prompted Prime Minister Julia Gillard to announce the royal commission in November.

In his statement, Cardinal Pell said people had "suffered at the hands" of fellow Christians, Christian officials, priests and religious teachers.

Adults Surviving Child Abuse president Dr Cathy Kezelman said the church still needed to be more transparent and forthright about its role in the systematic abuse of children over the years.

"It's an absolutely minimal response to express regret," she told AAP on Monday.

"It's very important that we also acknowledge the failure of religious organisations, including the Catholic Church, to respond appropriately to victims."

Last week, the federal government announced the terms of reference for the royal commission would not be available until January, instead of this month.

The inquiry is due to begin in 2013 and could run for years.

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Thatcher 'in good spirits' after op

Former British prime minster Margaret Thatcher is recovering from minor surgery in hospital. Source: AAP

FORMER British prime minister Margaret Thatcher is said to be "in good spirits" as she recovers from minor surgery but is expected to spend Christmas in hospital.

The 87-year-old was operated on two days ago to remove a growth from her bladder after suffering pain earlier in the week.

"I understand she is in good spirits," a spokesman said.

"Given her age, I don't think she will be coming out for a few days."

Thatcher's public appearances have been restricted over recent years due to continued ill health.

She was unable to join the Queen for a Diamond Jubilee lunch with former and serving prime ministers this summer and missed a birthday party thrown for her at 10 Downing Street.

In October, Thatcher was sufficiently well, however, to mark her 87th birthday with lunch at a restaurant in London's exclusive St James's district with her son Mark and his wife.

Her health was thrust into the global spotlight this year when Meryl Streep starred in a controversial Hollywood film about her.

The Iron Lady drew criticism from British Prime Minister David Cameron and others for concentrating on the dementia she suffers after a series of small strokes.

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Union launches blitz against Qld govt

QUEENSLAND'S public sector union has launched a $500,000 advertising blitz attacking the Newman government.

Together union secretary Alex Scott says the advertisements, which will appear in newspapers and online, aim to persuade voters to join their Working for Queenslanders campaign against the state government's cuts to public sector jobs and services.

Mr Scott says recent cuts in the health system are the final straw.

He insists the hefty advertising bill is money well spent.

"What we've seen in the last nine months is the destruction of our frontline services," he told reporters in Brisbane on Sunday.

"Working for Queenslanders is designed to hold him (Premier Campbell Newman) to account before the next election."

Mr Scott says the advertising blitz will run for about six weeks, with the potential to run longer if required.

Mr Scott also hit out at a government proposal to remove penalty rates for small business employees working on weekends or holidays.

He said the government had already stripped rights away from public servants and it was now turning its razor to the private sector.

"I don't think it's fair and reasonable that someone on Christmas day should be paid the same as someone working on any other day of the year," he said.

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North Korean leader calls for more rockets

NORTH Korean leader Kim Jong Un has called for the development of more powerful rockets after last week's successful launch of a satellite into space.

The North's official media said on Saturday that Kim made the call at a banquet for rocket scientists on Friday in Pyongyang.

The December 12 launch of a long-range rocket put the country's first satellite in orbit. The United States, South Korea and others have condemned the launch as a test of ballistic missile technology banned under UN security council resolutions.

Kim had already called for sending more scientific satellites into space on the day of the launch. But his speech on Friday marks the first time he has explicitly called for the advancement of his country's long-range rocket program.

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Canberra gas leak empties houses

ACT firefighters have evacuated 12 Canberra houses while they repair a gas leak.

Contractors ruptured a gas line in the northern suburb of Amaroo on Saturday.

ACT Fire & Rescue crews, including a specialist hazardous materials unit, are at the scene and evacuated homes to ensure the residents' safety.

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Senate approves $633bn defence bill

The US Senate has approved a $A606.41 billion defence spending bill for next year. Source: AAP

THE US Senate has approved a $US633 billion ($A606.41 billion) defence spending bill for next year that tightens penalties on Iran, funds the war in Afghanistan and boosts security at US missions worldwide.

The legislation passed 81-14 on Friday despite furious opposition from Republican Senator Rand Paul, who criticised removal of an amendment that would have provided Americans with protection against indefinite military detention.

Despite a raging partisan row in Washington over how to resolve a year-end fiscal crisis, the compromise bill sailed through the House of Representatives on Thursday and now goes to President Barack Obama's desk.

In addition to covering standard national security expenses like shipbuilding, it provides a 1.7-per cent pay raise for men and women in uniform, authorises the Pentagon to pay for abortions in cases of rape and incest and lifts a ban on same-sex marriage ceremonies on military bases.

The National Defense Authorization Act for fiscal year 2013 was hammered out by House and Senate conferees this month after each chamber voted to approve separate versions of the bill.

The White House last month said Obama could veto the act out of concern for the restrictions on his handling of Guantanamo detainees, but Senate Armed Services Committee chairman Carl Levin said this week he did not expect a veto.

The bill extended for one year the restriction on use of US funds to transfer Guantanamo inmates to other countries, a limitation critics say marks a setback for Obama's efforts to close the detention centre.

Paul said it was a "travesty of justice" that an amendment designed to limit the president's power to indefinitely detain US citizens as terror suspects was stripped from the final bill.

"It's a shame to scrap the very rights that make us exceptional as a people," Paul said, referring to the rights to a trial for anyone held in the United States.

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SA urged to pass same sex laws

Australian MP Ian Hunter (R) and his boyfriend Leith Semmens have flown to Spain to get married. Source: AAP

THE South Australian parliament has been urged to pass same-sex marriage laws after gay MP Ian Hunter had to go to Spain to marry his long-time partner.

On Thursday Mr Hunter because the first gay Australian politician to marry while in office when he wed Leith Semmens in the town of Jun, near the southern city of Granada.

The pair, together for 22 years, flew half-way around the world to tie the knot, two months after the federal parliament voted down same-sex marriage legislation.

Mr Hunter, the social inclusion minister, said the decision to travel to Spain, which has allowed same-sex couples to marry since 2005, was about finally being able to express his love for his partner in front of the people who were important to him.

He said the pair had decided they couldn't wait for their own country to approve their union.

"Without a doubt it's inevitable in Australia, but you're looking at six or seven years, and me and my partner weren't willing to wait that long," Mr Hunter said a few hours before the ceremony.

Australian Marriage Equality national convener Rodney Croome said the marriage of Mr Hunter and Mr Leith was tinged with sadness because their solemn vows would not be respected in Australian law.

"We call on the South Australian parliament to lead the nation toward marriage equality by allowing same-sex couples to legally marry and fully recognising same-sex marriages from overseas," he said.

"Reform at a federal level would be best, but in the absence of this, Ian Hunter's wedding is a strong impetus for South Australia to take the lead."

The SA parliament will consider a bill in 2013 to introduce same-sex marriage laws with MPs from both the Labor and Liberal parties to be granted a conscience vote.

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Hong Kong probes UBS over interbank rate

HONG Kong's de facto central bank says it will probe Swiss banking giant UBS over claims of possible rigging of Hong Kong's interbank offered rate (Hibor).

The Hong Kong Monetary Authority (HKMA) on Thursday said it had received information from overseas regulators about "possible misconduct" by UBS involving submissions for Hibor and other reference rates in Asia.

"The HKMA has commenced an investigation with a view to ascertaining any misconduct committed by the bank in relation to Hibor submissions," the Hong Kong Monetary Authority said in a statement.

The HKMA said it will work with overseas regulatory authorities to gather information and "consider further actions that need to be taken" pending the findings of the investigation.

In an emailed statement, a Hong Kong-based spokesman for UBS said: "We continue to work closely with various regulatory authorities to resolve issues relating to the setting of certain global benchmark interest rates."

"As we are currently in active discussions with these authorities, we cannot comment further."

The move comes a day after UBS agreed on Wednesday to pay $US1.5 billion ($A1.44 billion) in fines to national regulators in three countries to settle accusations that it tried to manipulate interest rates.

The probes by Swiss, British and US regulators revealed evidence of massive misconduct in the setting of the London interbank offered rate (Libor), a global reference that affects products from student loans to mortgages.

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Obama backs bid to ban assault weapons

US President Barack Obama has backed a new bid to revive a ban on assault weapons. Source: AAP

US President Barack Obama has backed a new bid to revive a ban on assault weapons and other new gun laws, as traumatised politicians wrestle with the aftermath of a sickening school massacre.

Obama also called an ardently pro-gun senator who has shifted his position on firearms laws since Friday's carnage in Connecticut and has begun meeting top cabinet officials to consider his options, his spokesman Jay Carney said.

The killing of 26 people, including 20 children, at a Newtown elementary school sent the country into shock, and may have shifted the political debate on firearms in US society, after years of gun lobby ascendancy.

Carney said that Obama is "actively supportive" of an effort by Democratic Senator Dianne Feinstein to write a bill early next year to reintroduce a ban on deadly assault weapons that expired in 2004.

Obama aides said after previous mass shootings that the president supported reintroducing a ban on weapons like the one used by Adam Lanza to kill six and seven-year-old students but he never put political muscle behind such a push.

Carney said Obama would also be interested in any move to ban high-capacity clips - magazines that hold dozens of rounds - and to close the so-called "gun show loophole" that allows unlicensed individuals to sell guns privately.

"He is heartened... by what we have all heard from some members of Congress who have been long-time opponents of gun control measures, common-sense gun control measures like the assault weapons ban and the like," Carney said.

Feinstein has said her bill would ban by name at least 100 military-style semi-automatic assault weapons, and would curb the transfer, importation and the possession of such arms.

"It's going to be strong, and it's going to be definitive," she said.

But once outrage from the Newtown massacre fades, prospects for Feinstein's bill remain uncertain and every piece of legislation is subject to intense amendment and pressure from various lobby groups.

But the California senator said that the tragedy was so acute in Newtown, a "sea change" in gun politics was possible.

"This is so graphic in people's minds, the smallness and beauty of these children, is so graphic, the loss is so dramatic," she said.

The most well-known gun lobby group, the National Rifle Association, spoke up about the school carnage for the first time on Tuesday, saying it was "shocked" and pledged to hold a news conference on Friday.

The White House said that Obama's vow on Sunday that gun tragedies "must end" could only be realised in part by new gun controls.

To that end, he met Education Secretary Arne Duncan, Health Secretary Kathleen Sebelius and Attorney General Eric Holder on Monday to discuss a "comprehensive" effort, possibly including new efforts to stop the mentally ill from getting weapons.

Obama also on Tuesday called West Virginia Senator Joe Manchin, a pro-gun politician who may now back an assault weapons ban who may be a useful ally in the days ahead.

The right to bear arms is enshrined in the Second Amendment to the US Constitution, and many political leaders are pro-gun for political and philosophical reasons but the political winds may be shifting.

"We need to accept the reality that we're not doing enough to protect our citizens," Senate Democratic Majority leader Harry Reid said on Tuesday.

"We must engage in a thoughtful debate about how to change laws and a culture that allows violence not to continue to grow. Every idea should be on the table."

Several leading Republican senators, while shocked by the school massacre and accepting something had to be done, were not ready to commit this early to specific anti-gun legislation or to rule out gun ownership altogether.

"The bigger point here is what public policy can we advocate that would keep all dangerous weapons out of the hands of criminals and those who are mentally unstable," said Senator Marco Rubio.

"I've always supported... reasonable public policy changes that accomplish that, but also with the recognition that the Second Amendment right to bear arms is not a policy decision, it is a constitutional principle."

Republican Senator Jeff Sessions told AFP that new gun legislation would "definitely be on the table" next year.

Senator John McCain, asked about tighter controls on assault weapons, said: "I think we need to have a conversation about all aspects of this tragedy to see that it doesn't happen again.'

But Republican Senator Lindsey Graham argued that reinstituting an assault weapons ban might "give a false sense of security."

"I don't know what the government can do when you have somebody this disturbed. Take everybody's guns away? Start putting people in preventive detention who, you know, act odd?" he said.

"How do you prevent mass murder? Do you take every sharp object in the nation off the table? That's not practical."

"I just don't want to make people think that a bunch of politicians can solve the problem when they haven't."

America has suffered an epidemic of gun violence over the last three decades, including 62 mass shooting sprees since 1982, three of the deadliest in the second half of this year alone.

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Man accused of threatening NSW school

A MAN has been charged with making threats against a school in the NSW Hunter region, during a phone call with an insurance company.

Police allege the call was made early on Tuesday morning.

Officers later arrested a 40-year-old Thornton man and charged him with using a carriage service to menace or harass.

He's been granted conditional bail and is scheduled to appear in Maitland Local Court on January 14.

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Fed govt cuts forcing bed closures: Vic

THOUSANDS of patients will suffer, with every Victorian hospital copping the brunt of "unprecedented" federal funding cuts, the state government says.

Up to 700 Royal Melbourne Hospital patients will be forced to wait longer for elective surgery, while Health Minister David Davis has written to the state's 86 health bosses urging them to plan for the commonwealth's mid-financial-year cuts.

Mr Davis says the commonwealth's revised funding arrangement with the state, which will strip some $107 million from the state's hospitals, is unprecedented and based on false population figures.

The arrangement will cut $15 million from Victorian hospitals in December alone, Reserve Bank of Australia figures show.

In a letter to federal Health Minister Tanya Plibersek, Mr Davis says bringing the cuts in halfway through the financial year makes it difficult for hospitals - which planned their annual budgets in May - to adjust.

"These cuts are unprecedented ... this is no way for the commonwealth to run healthcare in this country," he told reporters in Melbourne on Tuesday.

"We're obviously very angry with the commonwealth, hospitals are angry ... and the commonwealth could still reverse this very unfortunate cut."

"It will be hundreds of beds and it will indeed be thousands of patients that are impacted."

Mr Davis said the government had attempted to justify the cuts on "shonky" population figures, which claim Victoria's population fell by 11,000 last year, while Australian Bureau of Statistics in fact shows the state swelled by 75,000 people.

"Never before has this style of adjustment been made so harshly, and never before has such a spurious set of figures been used to justify what in my view is an attempt to prop up the commonwealth budget," Mr Davis said.

But Ms Plibersek says the state is trying to cover its mismanagement.

"This is a smokescreen for the Victorian government's own failures," she said.

"Before any of this was in discussion, there were record high numbers of people on Victorian elective surgery waiting lists."

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New species old threats to Mekong wildlife

FROM a devilish-looking bat to a frog that sings like a bird, scientists have identified 126 new species in the Greater Mekong area, the WWF says in a new report detailing discoveries in 2011.

But from forest loss to the construction of major hydropower projects on the Mekong River, existing threats to the region's biodiversity mean many of the new species are already struggling to survive, the conservation group warned on Tuesday.

"The good news is new discoveries. The bad news is that it is getting harder and harder in the world of conservation and environmental sustainability," Nick Cox, manager of WWF-Greater Mekong's Species Programme, told AFP.

Some 126 species were newly recorded last year in the Greater Mekong region, which consists of Thailand, Cambodia, Myanmar, Vietnam, Laos and the southwestern Chinese province of Yunnan.

Some, such as the Beelzebub tube-nosed bat discovered in Vietnam, depend on tropical forests for survival and so are especially vulnerable to deforestation.

In just four decades, 30 percent of the Greater Mekong's forests have disappeared, the report says.

Others, such as a short-tailed python species found in Myanmar are more at risk from illegal hunting for meat, skins, and the exotic pet trade, the report said.

"Poaching for the illegal wildlife trade poses one of the greatest threats to the existence of many species across Southeast Asia," Cox said in a statement accompanying the report.

The list, dominated by plants, included 21 reptiles and five amphibians, such as a frog that sings and another that has black and white eye patterns that look like yin and yang symbols.

The WWF said that while the number of new species discovered was testament to the region's astounding biodiversity, there had been some "worrying developments" that posed a threat to their future.

WWF singled out Laos' determination to construct the Xayaburi dam on the main stream of the Mekong River as a significant threat to the river's "extraordinary biodiversity" and the livelihoods of more than 60 million people.

"The Mekong River supports levels of aquatic biodiversity second only to the Amazon River," according to Cox.

"The Xayaburi dam would prove an impassable barrier for many fish species, signalling the demise for wildlife already known and as yet undiscovered," he added.

The Mekong River supports around 850 fish species and the world's most intensive inland fishery, the report said.

Last month, Laos said it had begun work on the controversial multi-billion dollar Xayaburi dam, defying objections from environmentalists in its bid to become a regional energy hub.

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10 Samoan fishermen missing after cyclone

Fiji's northern islands experienced flooding and structural damage as Cyclone Evan hit the region. Source: AAP

NEW Zealand searchers are now looking for 10 fishermen off Samoa since Cyclone Evan hit the island nation after a fourth boat was discovered to be missing.

As the destructive cyclone crossed Fiji, a New Zealand Air Force Orion continued its search for the missing Samoan fishermen.

It was initially thought eight were missing from three boats but Rescue Coordination Centre search and rescue mission co-ordinator Kevin Banaghan says they now know of a fourth boat.

"We have now been advised that a fourth fishing boat has been confirmed missing, with a total of 10 men still to be accounted for," he said.

"Each boat had three crew aboard, but two men, from different boats, have made it to shore."

A French Navy guardian aircraft is helping with the search.

Meanwhile, the cyclone has now reached Fiji, running one bulk carrier ship aground and causing destruction in Rakiraki, the Fiji Times website reported.

The ship Starford, believed to be carrying equipment for a Chinese firm constructing a highway, dragged its anchor about 11.30am local time (0930 AEDT) and was pushed onto the reef in Suva Harbour.

In Rakiraki, the Vaileka River has burst its banks and water is flowing into the town.

Evan was still rated as a category four storm by the Fiji Meteorological Office shortly after midday, with winds were reaching 170km/h with gusts of more than 230km/h.

The Fiji government urged people in low-lying areas to take shelter on higher ground.

A number flights in and out of Fiji have been cancelled or delayed.

Cyclone Evan caused widespread destruction in Samoa, killing four people and displacing about 4000.

New Zealand Red Cross has deployed a specialist team of five delegates and an emergency grant of $NZ10,000 to help deal with the damage in Samoa.

Air New Zealand is allowing all passengers flying from Auckland to Apia between December 17 and December 30 to take one extra piece of checked luggage, up to 23kg, free of charge, though the extra baggage won't travel until after Christmas while the planes carry relief supplies.

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Kiwi runs out of optimistic puff

THE New Zealand dollar fell in local trading as investor optimism ran out of puff from the Federal Reserve's plan to print more money and the Bank of Japan looking likely to follow suit after the weekend's election.

The kiwi fell to 84.34 US cents at 5pm in Wellington from 85.54 cents at 8am and 84.56 cents on Friday in New York.

The trade weighted index was little changed at 75.26 from 75.31 last week.

Investors' appetite for higher yields has dwindled at the start of this week, with stock markets flat across Asia as Hong Kong's Hang Seng fell 0.4 per cent in afternoon trading and Australia's S&P/ASX 200 index down 0.2 per cent.

New Zealand's currency rallied through the tail-end of last week after the Fed embarked on a fourth round of quantitative easing and the Liberal Democratic Party won a sweeping mandate in Japan on the promise of more market intervention.

Departing Bank of England governor "Mervyn King said 2013 could be the year of the currency wars - QE4 was probably enough to tip most of them over the edge", said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional.

"The kiwi's going to struggle to get down as people are attracted by the higher yield."

The kiwi was little changed at 80.03 Australian cents from 80.04 cents last week.

But it rose as high as 71.33 yen after Japan's LDP and junior partner New Komeito won at least 320 of the 480 seats in the lower house in Sunday's election, a two-third majority.

The currency traded at 70.84 yen at 5pm in Wellington from 70.57 yen last week.

It fell to 64.13 euro cents from 64.24 cents on Friday in New York and 52.20 British pence from 52.31 pence.

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Tax reform to top agenda at treasurer meet

TAX reform will top the agenda when Treasurer Wayne Swan meets his state and territory counterparts on Monday but his government is holding firm against any major changes to the GST.

The Standing Council on Federal Financial Relations is expected to discuss stamp duty on home sales and the recent GST review led by former premiers Nick Greiner and John Brumby when it meets in Canberra.

Mr Swan said on Sunday tax reform isn't the exclusive job of the federal government.

"All levels of government must do their share of the heavy lifting - a point I'll be making to my state and territory counterparts tomorrow," the treasurer said in his weekly economic note.

Mr Swan singled out state stamp duties on home sales for particular scorn, saying they discourage people from relocating for work and make it harder for people to upsize or downsize as their families change.

But Mr Swan has made it clear the government remains opposed to raising the rate or broadening the base of the goods and services tax.

"It's wrong to pretend that jacking up the GST is the holy grail of tax reform," he said.

"While it has become an accepted part of the tax mix and its integrity should be protected, the fact is it is a regressive tax - those on lower incomes pay a larger proportion of their incomes on it than those on higher incomes."

Extending the tax on food, health and education would hit those on the bottom 20 per cent of incomes much harder, he said.

The GST rate has been 10 per cent since it was introduced in mid-2000, and fresh food, education and health products are exempt.

The GST review proposed a number of refinements to the tax's distribution arrangements.

Queensland, NSW, Victoria and WA put in a joint proposal to the review arguing for a population-based distribution of GST funds, which would slash money going to smaller states.

The federal government's Minerals Resource Rent Tax (MRRT) will also be on the treasurers' agenda.

Mr Swan has also called on Australians to submit their ideas and priorities for next year's budget.

But people should keep in mind the pressures on government revenue, he said.

"That means proposals for budget spending should ideally be accompanied by proposals for equivalent savings," he said.

Submissions should be sent to Treasury's Budget Policy Division or emailed to prebudgetsubs@treasury.gov.au no later than January 31.

The budget will be handed down on May 11.

AAP ag/w

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Treasurers to discuss tax reform

TAX reform will top the agenda when Treasurer Wayne Swan meets his state and territory counterparts on Monday but his government is holding firm against any major changes to the GST.

The Standing Council on Federal Financial Relations is expected to discuss stamp duty on home sales and the recent GST review led by former premiers Nick Greiner and John Brumby when it meets in Canberra.

Mr Swan said on Sunday that tax reform isn't the exclusive job of the federal government.

"All levels of government must do their share of the heavy lifting - a point I'll be making to my state and territory counterparts tomorrow," the treasurer said in his weekly economic note.

Mr Swan singled out state stamp duties on home sales for particular scorn, saying they discourage people from relocating for work and make it harder for people to upsize or downsize as their families change.

But Mr Swan has made it clear the government remains opposed to raising the rate or broadening the base of the goods and services tax.

"It's wrong to pretend that jacking up the GST is the holy grail of tax reform," he said.

"While it has become an accepted part of the tax mix and its integrity should be protected, the fact is it is a regressive tax - those on lower incomes pay a larger proportion of their incomes on it than those on higher incomes."

Extending the tax on food, health and education would hit those on the bottom 20 per cent of incomes much harder, he said.

The GST rate has been 10 per cent since it was introduced in mid-2000, and fresh food, education and health products are exempt.

The GST review proposed a number of refinements to the tax's distribution arrangements.

Queensland, NSW, Victoria and WA put in a joint proposal to the review arguing for a population-based distribution of GST funds, which would slash money going to smaller states.

The federal government's Minerals Resource Rent Tax (MRRT) will also be on the treasurers' agenda.

Mr Swan has also called on Australians to submit their ideas and priorities for next year's budget.

But people should keep in mind the pressures on government revenue, he said.

"That means proposals for budget spending should ideally be accompanied by proposals for equivalent savings," he said.

Submissions should be sent to Treasury's Budget Policy Division or emailed to prebudgetsubs@treasury.gov.au no later than January 31.

The budget will be handed down on May 11.

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Japan election candidates make final pitch

HUNDREDS of candidates vying for a seat in Japan's parliament made their final pitches on Saturday in an election expected to see the return of the country's old guard.

Opinion polls show the Liberal Democratic Party on course for a convincing victory in Sunday's lower house election, with Prime Minister Yoshihiko Noda set to pass into history as the sixth consecutive one-year premier.

Hawkish LDP leader Shinzo Abe is predicted to return to the premiership, a job he held without much distinction in 2006-7, in a move that may herald a hardening of Japan's foreign policy at a time of heightened tensions with China.

As light rain fell over Tokyo, some of the over 1,500 candidates running in the poll stood before train stations to make final pleas to voters, while their staff held banners with the candidates names and parties printed in bold typeface.

Abe donned a white windbreaker to speak with with voters in Wako-city, Saitama prefecture, north of the capital, reiterating his promise to reform Japan's education system, Kyodo News said.

Abe has pledged in previous campaign speeches to "repair the Japan-US alliance and firmly defend our territorial soil and waters".

In one of the last gauges of the public mood before Sunday's vote, polls published Friday showed the LDP and its junior coalition party set to achieve a possible two-thirds majority in the lower house ballot.

That would hand Abe a mandate to try to fulfil his campaign pledge of bolstering Japan's military and coastal defences, particularly on the Tokyo-controlled Senkaku islands, which Beijing claims as the Diaoyus.

On Thursday Japan scrambled fighter jets after a Chinese plane entered airspace over the Japanese-held chain. Tokyo said it was the first time a Chinese state-owned plane had breached its airspace.

North Korea's rocket launch earlier this week could also boost the right-wing vote in a country that lives uneasily next door to an unpredictable Pyongyang.

Polls indicate that despite a strong current of anti-nuclear feeling since the March 2011 tsunami sparked reactor meltdowns at Fukushima, an array of smaller parties promising an atomic exit may struggle to gain traction.

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17y/o Vic drink driver nabbed

A 17-YEAR-OLD learner driver has been caught drink driving and speeding in his mum's car on the first day of a Victoria Police road safety blitz in the lead-up to Christmas.

The boy was pulled over in Carrum Downs, in Melbourne's southeast, about 1.20am (AEDT) after being clocked travelling at 112km/h in a 70km/h zone.

He also returned a blood alcohol reading of 0.139 per cent. Learner drivers must have a zero blood alcohol content.

The Carrum Downs boy had his learner's permit suspended for 12 months and received penalty notices for offences including drink driving, failing to have headlights on a vehicle and speeding.

The teen was one of 36 drink drivers caught on the first day of Operation Break Up.

The police campaign is targeting alcohol and drug driving, speed, fatigue and driver distraction during the high-risk pre-Christmas period.

Across the state, police detected 1261 traffic offences and 113 crime offences.

They conducted 9748 preliminary breath tests and 106 roadside drug tests, which found five drug drivers.

Police also detected:

- 39 disqualified/suspended drivers

- 58 unlicensed drivers

- 150 unregistered vehicles

- 376 speeding offences

- 123 mobile phone offences

Operation Break Up runs until 23 December.

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Facebook to meet Victoria police

A FACEBOOK representative will meet with Victoria's police chief over concerns the social media site's users are a "mob" that incites hatred and undermines the criminal justice system.

Chief Commissioner Ken Lay confirmed on Friday that since he publicly criticised the company's response to major cases, he had been contacted by Facebook's head in Southeast Asia.

"I'll be meeting with him in the next few weeks to have a chat about some of my concerns," Mr Lay told Fairfax Radio.

Earlier this year, Mr Lay attacked Facebook for failing to quickly remove hate pages that could have threatened the high-profile prosecution of Adrian Ernest Bayley, the Melbourne man accused of raping and murdering ABC staffer Jill Meagher.

"They've got a social responsibility, this mob," Mr Lay said in October.

Bayley, 41, had at least six Facebook pages - devoted to revealing his background - posted on Facebook for days before they were finally deleted.

He is still in custody and awaiting his next court appearance in January.

Law enforcement authorities have similar concerns about other hate pages, including some that target accused killers, a page that targeted a senior traffic policeman, and the continuing problem of trolls who litter victims' memorial pages with offensive content.

Australia's attorneys-general met earlier this year to discuss how best to tackle social media when users can easily skirt around court publication bans and prejudice someone's right to a fair trial.

Facebook has previously said it would remove content when "it violates local law".

Mr Lay said his Facebook meeting has been scheduled for the first week of January.

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Banksia had problems for years: receiver

BANKSIA Securities was facing financial problems for at least three years before it collapsed owing investors $660 million, receivers for the company say.

McGrathNicol partner Tony McGrath said the beginning of the failure of the company could be traced back to the start of the global financial crisis "three, four, five" years ago, and its lending practises had not kept pace with changing market conditions.

Some 600 of about 15,000 affected investors, many of whom live in regional Victoria, were told at a meeting on Friday they would get back 65 cents in the dollar at most, but it could take up to three years to pay all the money.

The first distribution of 20 cents in the dollar was made last week and Mr McGrath said he hoped investors would receive 50 cents in the dollar by next September.

Any remaining money would take longer to realise, due to the difficulty of the loan portfolio, he said.

Investors at the meeting in Kyabram, central Victoria, took issue with how much the receivers are being paid, with the latest report to debenture holders showing they have been paid $1.6 million since being appointed seven weeks ago.

But Mr McGrath said he was comfortable with the amount they were charging, given the way his business was conducted and the outcomes achieved.

Banksia Securities is a subsidiary of Kyabram-based non-bank lender Banksia Financial Group.

Mr McGrath also flagged the possibility of legal action against Banksia's directors and auditors over potential conflicts of interest and negligence.

"I think there are some issues that I'm concerned about," he told reporters after the meeting.

In particular, Mr McGrath is investigating the relationship between the Banksia group and the Banksia Mortgage Fund.

He said investors' money was siphoned into the fund, which then lent it to other parties.

Mr McGrath said there was also an "obvious issue" around the role of the auditor, who signed off a $24 million surplus for the company just months before it collapsed with massive debts.

"That's quite a significant change that requires addressing," he said.

Mr McGrath said any potential legal action - either by the receivers or as a class action by investors - would have to be weighed against the potential outcome and the ability of those being sued to pay.

He also said McGrathNicol were in constant communication with the Australian Securities and Investments Commission (ASIC) about Banksia Securities.

Investors in a second failed Banksia Financial Group fund, Cherry Fund Ltd, are expected to get back 55 to 70 cents in the dollar.

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Screaming match in Vic parliament

THE last question time of the year in the Victorian Parliament's lower house has descended into a screaming match, with a Labor MP kicked out for repeatedly calling the speaker a disgrace.

Speaker Ken Smith cited Labor MP Danielle Green, the member for Yan Yean, after she yelled at him repeatedly: "You're a disgrace!"

Ms Green began her tirade as Labor MPs stormed out of the Legislative Assembly midway through question time after Mr Smith refused to allow a question relating to controversial Liberal MPs Geoff Shaw and Bill Tilley.

The government then used its numbers to have Ms Green suspended from the house for the rest of the day.

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PM apologises to Pike mine families

NEW Zealand Prime Minister John Key has personally apologised to the families of the 29 men killed in the Pike River mine disaster.

But they took little solace from Mr Key's words at a meeting in Greymouth on Thursday, as they continue to campaign for the bodies of their loved ones to be retrieved from the mine where they have lain since the November 2010 gas explosions.

"People were upset at the way government had handled things," said Bernie Monk, who acts as spokesman for most of the families.

The families had an opportunity to air their views and they did, he said.

"They asked a lot of questions. In fact the families gave the prime minister a fair going over.

"He apologised to each one in person."

International experts the families engaged concluded it was feasible to re-enter the mine, but this clashed with advice the government had received.

Mr Monk hoped the experts could thrash it out, and believed it would be accepted if both groups agreed there was no safe plan to enter the mine.

"Then we would walk away from it," he said.

"But we cannot move on until there has been at least an attempt to get into the mine."

Lawyer for the families, Colin Smith, said there was obvious frustration at this lack of progress.

A big positive of the meeting, however, was the government's commitment to implement all the recommendations of the royal commission into the disaster.

Mr Key told reporters that if the families or Solid Energy could come up with a safe and credible plan to go into the drift, the government would help fund it.

But he didn't think that it would ever be possible to go deep into the mine where many of the miners were believed to be working when the explosions occurred.

"I told them in plain English that all the advice I've had in my office has always been that it will not be possible to get in the mine's workings itself," he said.

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Indian sitar legend Ravi Shankar dies

THE legendary Indian sitar player Ravi Shankar, a major influence on Western musicians including The Beatles and the Rolling Stones, has died at the age of 92, Indian television has reported.

Shankar, the father of the American singer-songwriter Norah Jones, died in a San Diego hospital where he had travelled to undergo surgery, the CNN-IBN network reported on Wednesday.

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NSW top cop praises slain officer Anderson

NSW Police Commissioner Andrew Scipione has remembered slain policeman Bryson Anderson as a loving husband and father, a prized friend and colleague and "a thoroughly good bloke".

The 45-year-old father of three was stabbed after responding to a dispute between neighbours at Oakville, in Sydney's northwest, on Thursday.

Detective-Inspector Anderson was a tenacious and committed police officer, driven to pursue offenders for the darkest and most serious of crimes, Mr Scipione told more than 1000 mourners at a funeral at St Patrick's Cathedral in Parramatta on Wednesday.

Yet he retained the extraordinary empathy, compassion and concern for the victims of those crimes.

Mr Scipione said Det Insp Anderson would posthumously receive the first clasp to the National Medal and the third clasp to the NSW Police Medal.

"Impressive as they are, the bare facts I have recounted do Detective Inspector Bryson Anderson little justice," he said.

"Bryson the man transcended in achievements and in potential any chronology of this type."

"He showed initiative and leadership, intelligence and perseverance, dedication and humility, and memorably, a ready smile and an engaging way.

"A proud husband and father, a keen motor cyclist, an active participant in sporting clubs, and, invariably, a superb police officer.

"He lived for the community, died serving it and deserved much better."

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Auditor again questions NSW govt figures

THE NSW auditor-general has questioned the revaluation of 27,000 school buildings after their total value increased by $8 billion but those built under a federal stimulus program fell by more than $660 million.

Just weeks after Auditor-General Peter Achterstraat found a $1 billion error in the state's June budget figures, he has again raised concerns about accountancy methods used by the state government.

His latest audit raises doubts about what he called a "flawed" revaluation of 27,000 school and TAFE buildings, conducted by the Education Department earlier this year, particularly the significant fall in Building the Education Revolution (BER) structures.

The replacement cost of the department's building stock rose from $26.5 billion to $34.6 billion under the evaluation, but the value of the Rudd government BER buildings dropped by one third from $1.9 billion to $1.2 billion.

Mr Achterstraat called for the department to review its revaluation methodology to confirm the figures, saying it had been unable to provide "sufficient evidence" to back the construction costs used.

"There were flaws in the process used and more work is needed to support the values recorded," Mr Achterstraat said in a statement on Tuesday.

"This work may confirm the value of the buildings is correct, or it may highlight shortcomings in the revaluation process."

"The significant decrease in cost attributed to new BER buildings in the revaluation process may be due to actual costs paid for BER buildings being too high, construction prices may have been higher during the period of the BER program, or replacement cost rates used in the revaluation process may be incorrect."

In October, Mr Achterstraat found the deficit of $337 million for 2011-12 announced in this year's budget should in fact be a surplus of $680 million.

The embarrassing billion-dollar turnaround was attributed to 37 mistakes - errors in spreadsheets, data entry, end-of-year accruals and reconciliation processes.

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Man jailed for leaving victim quadriplegic

RETIRED cabinet-maker Kenneth Weger was the type of bloke who was quick to offer a visitor a beer.

But he didn't get a chance to be hospitable to former boarder Daniel Charles Hughes, who rendered Mr Weger a quadriplegic by repeatedly stabbing him and leaving him for dead in his Adelaide backyard.

Hughes, 25, was jailed for at least five years in the South Australian Supreme Court on Tuesday.

The chef had pleaded guilty to an aggravated offence of causing serious harm to Mr Weger with intent, after stabbing him six times in the neck in February 2011 at the retiree's Marion home.

Outside court, the 70-year-old victim said Hughes had "ruined two lives" and was "an idiot".

But Mr Weger's daughter Amy stressed that her father still had sympathy for his assailant and worried about the younger man's future.

Now confined to a nursing home, her father had previously been outgoing, lived independently, travelled and would have a drink with anyone.

"If Daniel hadn't stabbed him, I bet the next words would have been 'have a beer'," she said.

"We just hope that Daniel can do his time and come out the other end a better person."

In setting a maximum term of eight years, Justice Michael David said Hughes had consumed an inordinate amount of alcohol and ingested drugs before going to Mr Weger's home looking for accommodation.

Defence barrister Adam Richards said when Mr Weger moved towards Hughes, the young man mistakenly believed he was making a sexual advance.

He impulsively stabbed him using a paring knife he had in his pocket for an innocent purpose - to scrape a bundle of scratchies he had been given for his birthday, Mr Richards said.

In a victim impact statement read to the court on his behalf, Mr Weger said he was now stuck in a nursing home looking at four walls.

"I can't leave when I want and it feels like I have lost my freedom," he said.

"It has completely stuffed up my retirement.

"I have lost everything."

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Thrift Shop still No.1 on ARIA chart

US rap duo Macklemore & Ryan Lewis continue to top the ARIA singles chart with their hip-hop parody Thrift Shop.

Behind the rap duo is Swedish House Mafia's single Don't You Worry Child, up one spot to No.2, while Taylor Swift's I Knew You Were Trouble has also moved up a spot to take the third position.

English singer Olly Murs has jumped 15 places to break into the top five with his single Troublemaker at No.4.

The week's biggest mover is Scream & Shout by will.i.am, featuring Britney Spears, which has jumped 27 spots to No.5.

Their success pushes X Factor winner Samantha Jade's debut single What You've Done To Me to No.6, just ahead of Little Talks by Of Monsters and Men.

Korean pop singer Psy's global sensation Gangnam Style has fallen one place to No.8.

Ed Sheeran's Give Me Love is up six spots to No.9, while Ke$ha's single Die Young rounds up the top 10.

Canadian crooner Michael Buble's Christmas album has topped the ARIA albums chart, knocking Guy Sebastian's record Armageddon off pole position to No.5.

Behind Buble is One Direction's Take Me Home.

Swift's Red holds steady at No.3, while Rod Stewart's holiday album Merry Christmas, Baby, is up three spots to No.6.

Meanwhile, the Bee Gees' 50th anniversary collection, Mythology, is back in the top 10, up eight spots to No.10.

The top two in the country chart are unchanged with Swift and Lee Kernaghan in first and second place respectively.

Keith Urban's record The Story So Far is up two spots to No.3, while The Essential Johnny Cash compilation is down three spots to No.9.

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Older students drinking at risky levels

A survey has found older high school children are continuing to drink alcohol at risky levels. Source: AAP

OLDER high school children are continuing to drink at risky levels but alcohol use by younger teenagers is dropping, a new national survey shows.

A survey of 25,000 Australian secondary school students, carried out every three years, found about one in five pupils were "current drinkers", having consumed alcohol in the past seven days.

The number of 12- to 15 year olds classified as current drinkers dropped from 17 per cent in 2008 to 11 per cent in 2011, the Australian Secondary Students' Alcohol and Drug survey has found.

The proportion of 16- and 17 year olds who drank in the past week dropped slightly, from 38 per cent in 2008 to 33 per cent in 2011.

But there was little difference in the number of those drinking more than four drinks on one occasion during that seven-day period, at 16 per cent in 2011 compared to 18 per cent three years ago.

Cancer Council Victoria chief executive Todd Harper said the fact that older students were still binge drinking at similar levels to 2008 was concerning.

"It means another generation is inheriting risky drinking behaviour," Mr Harper said in a statement.

"Drinking in teenage years is linked to higher risks of alcohol dependence problems in young adulthood, and excessive consumption is, in turn, a cause of many chronic illnesses such as cancer," he said.

About 45 per cent of those 16- to 17-year-old current drinkers intended to get drunk on most occasions when they consumed alcohol, Mr Harper said.

He said the government needed to address the availability of cheap alcohol and its promotion to young people, particularly during live television sport coverage.

Parents were the most common suppliers of alcohol to students deemed current drinkers, the research found.

Pre-mixed spirits were the preferred alcoholic drink among females while males preferred pre-mixed drinks and beer.

Meanwhile, the percentage of younger students who were considered current smokers dropped to the lowest level since the survey began in 1984.

Only four per cent of 12-15 year olds were current smokers in 2011 compared to seven per cent three years' earlier.

But rates among 16-17 year olds were stagnant at 13 per cent in 2011, the same figure recorded in 2008.

Almost half the students who smoked got cigarettes from friends but 18 per cent bought them over the counter, despite bans on selling cigarettes to under-18s.

Mr Harper said the survey showed graphic warnings on tobacco packaging and an increase in smoke-free areas had made a significant impact.

Cannabis was the most commonly used illicit substance among secondary school students.

The research was led by Cancer Council Victoria's Centre for Behavioural Research in Cancer and also involved commonwealth, state and territory health departments.

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Treasurer Swan to spruik Aust in India

DEPUTY Prime Minister Wayne Swan will meet senior government and business officials in India this week to boost Australia's long-term possibilities with the Asian nation and the region.

It is understood the treasurer will hold talks with his Indian counterpart, Finance Minister Palaniappan Chidambaram, as well as with economists and senior business leaders from Indian and Australian firms to discuss the opportunities in the region.

"While much of the advanced world is still facing very tough times, the shift in economic activity from west to east means the long-term prospect for our own region remain bright," Mr Swan said in his weekly economic note on Sunday.

"India is, of course, critical to those prospects."

Mr Swan's visit to India follows Prime Minister Julia Gillard's trip in October.

The Asian nation is Australia's fourth largest export market, with goods and services sold to India worth $13.12 billion in the 2011/12 financial year.

India is the fifth largest foreign investor in Australia.

Education is a key link in the relationship between the nations, with more than 48,000 Indian students studying in Australia this year, Mr Swan says.

"But we also want to see our own students learn more about the region and gain the skills they need to make the most of the opportunities that will flow as the middle-classes in countries like India grow rapidly," he says.

The Indian economy is forecast to expand at an average rate of 6.75 per cent annually to 2025 as set out in the recent Asian Century White Paper, Mr Swan says.

India posted its slowest economic growth rate in a decade, 5.3 per cent in the year to September 30, with economists forecasting an improvement next year.

Australia released its latest economic growth data last week, with the economy expanding at 0.5 per cent for the September 2012 quarter for an annual rate of 3.1 per cent.

This was a slowdown from an annual rate of 3.8 per cent in the 12 months to June 30, official data showed.

Mr Swan said it was not surprising growth slowed and incomes eased following sharp falls in commodity prices in the quarter, Europe slipped back into recession and Japan, Australia's second largest export market, had a sharp contraction.

But the economy continues to show great resilience, as shown by the 0.2 percentage points drop in the national jobless rate to 5.2 per cent in November, the treasurer says.

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Kidnapped US doctor rescued in Afghanistan

US soldiers killed seven Taliban insurgents in a pre-dawn raid to rescue a kidnapped American doctor in eastern Afghanistan on Sunday, the NATO force in the war-torn country says.

The mission was launched when intelligence showed that Dr Dilip Joseph was in "imminent danger of injury or death", NATO's International Security Assistance Force said in a statement.

Joseph was abducted on December 5 by Taliban insurgents in the Surobi district of Kabul province.

"Today's mission exemplifies our unwavering commitment to defeating the Taliban," said General John Allen, the commander of US and ISAF forces in Afghanistan.

"I'm proud of the American and Afghan forces that planned, rehearsed and successfully conducted this operation. Thanks to them, Dr Joseph will soon be rejoining his family and loved ones."

Joseph was now "undergoing evaluations", the statement said, without giving further details.

A security source said the doctor had been involved in building clinics in Afghanistan, but details of his capture were not immediately available.

An ISAF spokesman said the rescue had been launched when multiple intelligence sources indicated that he was in immediate danger.

"We felt we had to act now," he said.

Seven of the doctor's captors were killed in the operation, which involved combined US and Afghan forces, he said.

He gave no further details of where the doctor had been held or on the rescue operation itself, saying they could be announced later in the day.

Surobi outside Kabul had been under the control of French troops until April this year, when responsibility for security was handed to Afghan forces as part of France's accelerated withdrawal from the country.

France ended its combat mission in Afghanistan last month, two years before allied nations contributing to the 100,000-strong US-led NATO force are due to depart.

Westerners are a prize target for the Taliban Islamists, who have waged an 11-year insurgency since being toppled from power in a US-led invasion in 2001.

In June, NATO special forces rescued two foreign women working for a Swiss-based charity who had been kidnapped and held in a cave in Afghanistan's remote and mountainous Badakhshan province, killing five of their captors.

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Nurse's death a terrible tragedy: PM

PM Julia Gillard has described the death of a UK nurse linked to a royal hoax as a terrible tragedy. Source: AAP

THE death of a British nurse who was duped by a hoax call from two Sydney radio jocks, to a hospital where the Duchess of Cambridge was being treated for acute morning sickness, is a terrible tragedy, Prime Minister Julia Gillard says.

Sydney 2Day FM presenters Mel Greig and Michael Christian have been taken off air after their prank call to London's exclusive King Edward VII Hospital was linked to the death of respected nurse and mother Jacintha Saldanha, 46, on Friday.

A spokeswoman for Ms Gillard described the incident as a "terrible tragedy".

"Our thoughts are with her family and friends at this time," she said in a statement on Saturday.

Communications Minister Stephen Conroy said Ms Saldanha's death was "dreadful and tragic".

"My thoughts and sympathies are with Ms Saldanha's family, friends and work colleagues at this time," he said in a statement.

Senator Conroy confirmed the Australian Communications and Media Authority (ACMA) had received complaints about the hoax call.

"The decision about whether to investigate the call for possible breaches of the commercial radio codes of practice is one for the independent regulator," he said.

Australian Greens leader Christine Milne said Australian hearts went out to Ms Saldanha's family.

"I am so sad that highly respected nurse and loved mum of two children is now dead because of radio prank. Aust hearts go out to her family," she tweeted.

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Ford recalls Fusion over faulty headlights

Ford has recalled about 19,000 brand new Fusion midsize cars to fix defective headlights. Source: AAP

FORD is recalling about 19,000 brand new Fusion midsize cars to fix defective headlights.

Reflectors in the low-beam lights on the 2013 Fusions can become hazy over time and reduce the brightness.

It's the second recall in a week for the Fusion and the sixth recall of a new Ford vehicle in the past five months.

Ford will replace the headlights for free to fix the latest problem. The company will notify owners by mail later this month.

Last week Ford recalled new Fusions and Escape SUVs with 1.6-litre engines because they can overheat, leak fluids and catch fire.

The new Escape small SUV has been recalled three other times since July.

Ford says the recalls show the company moves quickly to take care of safety problems.

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As the world ends, here come the robots

WITH the end of the world just days away, according to the Mayans at least, the rise of the robots will be confirmed this weekend at Western Australia's Curtin University.

The fourth annual Robofair, the biggest yet, will showcase the national and international advances in robotics and mechatronics with various exhibitors displaying a range of robots that could save your life or help you waste your time.

The WA police bomb squad will rub shoulders with the likes of the Curtin Robotics Club and Mars Society WA, which will obviously still be buzzing from the continuing success of the Mars Curiosity rover landing earlier this year.

Tim Keely, the engineering outreach coordinator at Curtin, said the exhibition was about how robots could help humanity, rather than replace it.

"It is to educate people about robotics and the related technology, and kids who might know Wall-E and Transformers who might have a real interest in those type of things," Mr Keely said.

"At the heart of it all robots are about us.

"What do we want, what is too dangerous for us, and what do we not want to do?"

WA's Water Corporation will show off the robots that helped out in the aftermath of the Pike River mine disaster in New Zealand in November 2010, while students of the university were working late into the night to fine-tune some creations with less serious applications.

Toby Scantlebury, Jimmy Hartanto and Xuejin Tang from the Curtin Robotics Club were working on a robotic spider and a robotic car that could be controlled via a Bluetooth-enabled phone and a 3D printer capable of "printing" with molten plastic moulded to specific shapes and specifications.

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Clarke wants Warnie for Aussie side

Michael Clarke speaks with Anthony Bell at the annual Sail With the Stars fundraiser in Sydney. Picture: Supplied Source: Supplied

Finance guru Anthony Bell and wife Kelly at the Westin hotel in Sydney. Picture: Supplied Source: Supplied

AUSTRALIAN Cricket captain Michael Clarke hasn't ruled out a Shane Warne return to the Test team for next year's Ashes in England.

Indeed, he is so serious about the possibility that he has spoken to Cricket Australia about it on several occasions.

Earlier this week, Shane Warne tweeted that he would come out of retirement if Clarke asked him to. Warne later clarified his position, saying he meant that he "could" play, not "would" play, and that the scenario was just hypothetical.

But last night, speaking to finance guru Anthony Bell in a Q and A at the annual 'Sail With the Stars' fundraiser for The Loyal Foundation in Sydney, Clarke appeared to suggest a Warne Ashes comeback was more than just a hypothetical chance.

Joking that 'there are no media in the room' Clarke spoke passionately about his admiration for the 43-year-old former Test spinner.

"Warnie is looking great and he is the fittest I have ever seen him," said Clarke.

"From the day he retired I've been trying to get him back in the team. I've asked him to come out of retirement a number of times.

"But there is a process that comes with coming out of retirement and he wouldn't be able to come out of retirement and walk straight back into the Australian team. He'd have to go and play some state games for Victoria.

"I've had the conversation with the Cricket Australia CEO a number of times over the past five years and the plan hasn't changed.

"I think he would be unbelievable if he decided to come out and play. And what an amazing mentor he would be for the team.'

Clarke has had to pull out of tomorrow night's opening round of the KFC T20 Big bash League at the SCG, due to back soreness following the third Test loss to South Africa in Perth.

Warne is playing in the Big Bash, but his commitment to the shortest form of cricket where he bowls just four over per match is a far cry from the preparations, time commitments and heavy bowling workload of an Ashes tour. 

Michael Clarke and his wife Kyly at the Sail With the Stars fundraiser for The Loyal Foundation. Picture: Supplied Source: Supplied

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Three workers killed in NZ tornado

THREE people are dead, seven are in hospital and about 150 houses are so badly damaged they are uninhabitable after a tornado cut a swathe through west Auckland shortly after midday.

Two people were killed when concrete slab landed on a truck on St Georges Road in Hobsonville, a Fire Service communications spokesman told AAP.

Civil Defence says three people have been confirmed dead, but Superintendent Bill Searle told media two were dead and they held grave concerns for another construction worker at the site where a new high school is being built.

The site was still being cleared of debris, he said.

"It's early on in the investigation and we need to make sure we get all the facts straight before we release any information (on the two deceased and missing person)."

The death toll equals the previous worst tornado, which killed three people in Hamilton in 1948 and wrecked 150 houses.

Supt Searle said the tornado trapped a small number of people in their homes, but they had since been evacuated.

Police had been knocking on doors in the area and all residents had been accounted for, he said.

Families from up to 150 damaged homes - most home to Defence Force personnel - were evacuated and most of them will be housed at the Whenuapai Air Base.

"[It was] like a knife through butter for some of those trees," said mayor Len Brown. "A powerful tornado, devastating. Trees uprooted. Clearly a major weather event."

He said it was a "real disaster and tragedy for those families and for those that are in hospital and to the families who have been made homeless".

Power has been cut to around 400 customers in the Hobsonville-Whenuapai area after trees fell on lines.

Shaken construction worker Sam Nuthall, who was working at the school site, was forced to shelter between a block wall and a truck.

"You couldn't see it coming... there was debris flying everywhere, steel getting thrown around," he told Radio New Zealand.

A Whenuapai resident Suzanne McFadden told 3News it was "five minutes of utter devastation".

"It got very muggy, very still. Suddenly the sky went very, very black, almost like night, and a huge wind came across the river.

"It ripped century-old pine trees out of the ground, it's taken roofs off houses, it's crushed cars and boats.

"The main street of our village looks like a bomb's gone off and we're all very aware that it could turn around and another one could strike," she said.

Police have set up an operations base at Whenuapai and are advising motorists to be wary of flooding and drive to the conditions.

Some flights in and out of Auckland Airport were delayed or cancelled.

The weather front moved south to Bay of Plenty where another tornado touched down about 3.20pm at Hamurana injuring one person.

Trees and power lines were downed and roofs lifted in the town on the northern shore of Lake Rotorua about 17km from Rotorua.

Fire Service shift manager Colin Underdown said it also caused some children to be evacuated from Mokoia Intermediate, and an ambulance had to collect one person who was "thrown around by the tornado".

In May last year, a construction worker in Albany was killed when a tornado struck.

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Qld jobless rate drops

QUEENSLAND'S treasurer says a drop in the state's unemployment rate is a good sign but admits monthly figures are "volatile."

The state's seasonally adjusted jobless rate fell from 6.1 to 6.0 per cent in November, Australian Bureau of Statistics figures show.

Treasurer Tim Nicholls says more than 27,000 jobs were created in the state last month, including 9000 full-time positions.

He said there were an extra 5500 plus people with a job than when the Newman government came into power.

"These figures are volatile," he told reporters.

"They do jump around from month to month.

"I think at this time of the year we are seeing a return to positive activity."

He said it was also a sign the government's red-tape and cost of living reductions were restoring confidence in the economy.

Queensland opposition treasury spokesman Curtis Pitt says the figures don't look as good when compared to the "bus-loads" of people who end up on the unemployment queue, with about 60 people a day losing their jobs.

He's doubtful the government will meet its four per cent unemployment target over six years.

"We have seen an average of 24 jobs per day created under the LNP," Mr Pitt told AAP.

"That is a long way off the more than 190 jobs per day that is required to meet the 420,000 job target the premier has set."

Mr Nicholls said the government was focussed on meeting its target.

The government has a budget plan to slash 14,000 public service positions with the latest job cuts happening at the Royal Children's Hospital.

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SA premier seeks lower power prices

SA's premier says his government will do "what it takes" to drive down electricity prices. Source: AAP

THE South Australian government will do "what it takes" to drive down electricity prices, Premier Jay Weatherill says.

Mr Weatherill has backed the actions of the state's energy regulator as electricity retailer AGL Energy seeks to challenge an interim price ruling by the Essential Services Commission of South Australia (ESCOSA).

ESCOSA has determined that businesses and households on AGL's price regulated standing contract should get an eight per cent cut in 2013, worth about $160 to the average household.

AGL has taken the issue to the SA Supreme Court arguing that ESCOSA has wrongly exercised its power under the legislation to review prices due to special circumstances.

Mr Weatherill said the state government would watch the outcome of the court case and would review its legal options.

But he said the government's priority was to ensure South Australians paid the lowest possible prices for power.

"Obviously we want a functioning electricity market and we want people to be able to participate in that successfully," Mr Weatherill told reporters on Wednesday.

"But beyond that I want the lowest possible prices for South Australian energy consumers.

"We'll do what it takes to drive those prices down."

AGL's court action on power prices comes ahead of a final price determination by ESCOSA on December 14 and could delay that final ruling.

In its fiscal 2013 earnings guidance AGL Energy said adverse regulatory pricing decisions in Queensland and South Australia would reduce underlying profit by approximately $45 million.

When ESCOSA ruled on the price cut in October Mr Weatherill called on all electricity retailers to pass on the savings to their customers, even though many businesses and households operated on market contracts not subject to the same regulation.

"It's something they can do, it's something they should do and it's something that I demand of them," Mr Weatherill said at the time.

On Wednesday, the premier again called on energy retailers to do the right thing by consumers and also backed the work of the regulator.

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HSBC to sell stake in China insurer

HSBC will sell its 15.57 per cent holding in Chinese life insurer Ping An for $A9.01 billion. Source: AAP

BRITAIN'S HSBC says it will sell its stake in China's second largest life insurer Ping An for $US9.4 billion ($A9.01 billion), as it looks to shift its focus back towards its traditional banking business.

The lender said in a statement it will sell its entire 15.57 per cent holding in Ping An Insurance Group to Thai conglomerate Charoen Pokphand Group at HK$59 ($US7.66) a share, a two per cent premium to its Tuesday closing price.

Ping An recently hit the headlines after the New York Times said last month that relatives of Chinese Premier Wen Jiabao had gained from its Hong Kong listing in 2004 by buying stock at a discount before the sale.

Ping An has denied those claims and threatened legal action against the US newspaper.

HSBC Group Chief Executive Stuart Gulliver said in the statement the Ping An sale would benefit shareholders, but added that China remained "a key market for the group".

He said the firm would "strengthen our focus on growing our own operations and building on our long-term strategic banking partnership with the Bank of Communications", China's fifth largest lender, in which HSBC has a 19 per cent stake.

The bank has been selling non-core assets as part of a broad restructuring plan designed to boost profitability.

"They can unload their non-core assets and resources to refocus on their main business, which is banking," Tanrich Securities Vice President Jackson Wong told AFP.

London-listed HSBC is also setting aside hundreds of millions of dollars as provision for fines related to possible criminal charges over money-laundering allegations in the United States.

Shares in Ping An climbed after the announcement. It was up 2.25 per cent at HK$58.95 in Hong Kong on Wednesday morning, while it rose 2.7 per cent to 38.38 yuan in Shanghai.

Last month the New York Times reported the chairman of Ping An wrote in 1999 to Wen, who was vice-premier at the time, and met his wife as the government considered a decision on whether to split up the company.

After the lobbying, it said, the government granted Ping An a waiver from a requirement that large financial companies be broken up.

Following the decision an investment vehicle - later controlled by relatives of Wen - bought shares in Ping An at a significant discount, long before most other investors could buy into it, the report said.

Ping An said of the report that "recent media coverage related to the company" contained "serious inaccuracies, facts being distorted and taken out of context, as well as flawed logic".

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Kids with disability abused more: study

DISABLED children are more than three times as likely as able-bodied children to be abused or neglected, a new report says.

The Children with Disability Australia policy paper released in Sydney on Tuesday says many abuse cases border on criminality and many go unreported because the victims were less likely to complain.

Report author Sally Robinson, from Southern Cross University, said the abuse ranged from extreme physical assaults to children being locked in rooms without windows.

There were also cases of children being pinned down by teachers trained in behaviour management by martial arts practitioners rather than behaviour management specialists, she said.

Such abuse was often swept aside and sometimes poorly recognised by people in positions to take action against it.

Reasons for under-reporting included lack of support to make a complaint, children not having the language skills to name the harm they underwent and intimidation and fear.

Dr Robinson said the vast majority of people who worked with disabled children were skilled, committed and well-intentioned.

"However, the fact remains that we know that kids with disabilities experience abuse and neglect at over three times the rate that children without disability do," she said.

The federal government's National Disability Insurance Scheme may provide an important safety net, giving people the resources they needed to overcome barriers stopping them from participating in society, Dr Robinson said.

The report recommended the government establish an independent statutory authority charged with protecting disabled children and investigating exploitation, violence and abuse.

Receiving the report on Tuesday, federal parliamentary secretary for disabilities Jan McLucas said it would help governments and the community sector prevent such abuse.

She said the report underscored the importance of the federal government's work in removing barriers for people with disabilities.

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