Fresh debate as NSW celebrates

THE hoisting of two flags - potent symbols of the nation's divided past - triggered fresh debate about reconciliation on Saturday, as Australia's newest citizens looked forward to life in the lucky country.

Almost 3800 people from nations around the world - including some from war zones - became Aussies in NSW on Saturday, starting new chapters as part of their adopted nation's future.

Across the nation, 17,059 people from 145 countries became Australians in 430 citizenship ceremonies.

But as NSW celebrated Australia Day - marking 225 years since the First Fleet landed in Sydney - it was the fractured past, not the vaunted future, that caused debate.

Celebrations began early in Sydney, the sun barely up over the Opera House, when the Aboriginal and Australian flags were raised over the Harbour Bridge.

It was the first time the two banners have flown together on the iconic landmark on Australia Day.

NSW Aboriginal Affairs Minister Victor Dominello said the flag-raising was a step towards reconciliation.

"I'm not saying that it's perfect. There is still a long way to go," he told reporters.

"But we are definitely on the right path."

But there was dissent.

Former Australian Democrat senator Andrew Bartlett wrote on Twitter: "26th Jan: anniversary of Britain establishing their colony of New South Wales. Nothing for the rest of us (or First Peoples) to celebrate."

NSW Premier Barry O'Farrell quickly replied: "Except that your home state (& others) were opened up & carved out of NSW by people who lived here #getagrip."

Mr Bartlett retorted: "Carved up rather than 'carved out'."

It was a small skirmish on a day when most new Australians were intent on celebrating the present and the future.

For some, gaining citizenship was merely confirmation, a rubber-stamping of long-term faithfulness to the land Down Under.

Ex-Londoner Debbie Smith arrived in Australia 22 years ago on holiday and never left.

"Probably after about five years, you begin to feel assimilated to the country," she told AAP.

"If we're playing England, I still feel Australian."

For others, gaining citizenship was the culmination of long-held dreams.

South African-born Michael and Kim Parker, and their children Liam and Aiden, always wanted to make Australia home.

"Four years ago today we were walking along through the park and my cousin tapped me on the shoulder and said 'mate you could be up there one day on that stage getting your citizenship'," Mr Parker told AAP.

"So the dream has come true and we're here today."

Elsewhere, people were simply intent on having a good time, apparently oblivious to both the old and the new.

Gold Coast residents Andrew Lamond and Marshall Dudley drove overnight to Sydney with two friends from the US.

"We had to show them what Australia Day is all about so we got in the car and left," Mr Lamond said at a cafe in George St.

Mr Dudley instructed his California mates Amanda Smith and Maria Kosuzmenko how to celebrate.

"You shouldn't be drinking water, for a start," he said around 9.30am as he moved their water glasses off the table.

"I've already had a beer."

Thousands of people flocked into Sydney CBD to witness free shows, including The Wiggles unveiling their new line-up at Hyde Park.

Revellers began bagging the best spots in parks and reserves around the city, with eskies full of ice cold drinks, portable barbies and plenty of snags.

Sydneysider Doreen Carter was with her family in Hyde Park at 8.30am (AEDT) and planned to spend the day enjoying the free entertainment.

"It's one of the few days, other than Christmas, where we get the whole family together and just concentrate on enjoying ourselves," she said.

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North NSW told to prepare for floods, wind

RESIDENTS in northern NSW are being told to prepare for floods and damaging winds as the remnants of ex-tropical cyclone Oswald begin to affect the region.

Oswald has already brought severe flooding to northern and central coastal areas of Queensland,leading to hundreds of evacuations.

Authorities say the full brunt of the weather system should start to hit northern NSW late on Saturday (AEST).

The State Emergency Service (SES) has sent flood rescue and storm teams to the mid-north coast and north coast in readiness.

"With many people travelling around the northern parts of the state over the Australia Day long weekend, holidaymakers should consider the severe weather conditions in their travel plans as many major roads and highways could be cut off by floodwater," SES commissioner Murray Kear said.

The Bureau of Meteorology (BoM) has warned of possible flooding on rivers from the Queensland border down to the Lower Hunter Valley.

It issued a severe weather warning on Friday, saying there'll be heavy downpours throughout those areas from Saturday night.

"This slow-moving weather system will reach the far northeast on Saturday bringing heavy rainfall, before moving south to the mid-north coast and adjacent ranges on Sunday and Monday," BoM regional director Barry Hanstrum said.

There's also likely to be gale force winds from Sunday.

Mr Hanstrum said communities likely to be affected include Ballina, Byron Bay, Grafton, Coffs Harbour and Port Macquarie.

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Strauss-Kahn faces call girl in court

Former IMF boss Dominique Strauss-Kahn has come face-to-face with a call girl as part of a probe. Source: AAP

DISGRACED former IMF boss Dominique Strauss-Kahn has come face-to-face with a call girl in the latest stage of a probe into charges that he procured prostitutes for sex parties.

The one-time favourite to be French president was confronted with the escort girl as part of prosecutors' attempts to assess their different versions of events that have led to him being charged with "aggravated pimping as part of an organised gang", judicial sources said.

"All I can tell you is that a confrontation took place in a respectful atmosphere and we are not at all unhappy," one of the Socialist politician's lawyers, Henri Leclerc, said after the four-hour hearing on Thursday.

The legal team failed in a December bid to have the pimping charges dismissed in the only outstanding case against their client.

Strauss-Kahn last month agreed on a financial settlement with a New York hotel maid whose 2011 allegation of sexual assault forced him to resign from his IMF job and wrecked his chances of becoming president.

Strauss-Kahn admitted a sexual encounter took place but insisted it was consensual. A criminal investigation into the incident collapsed after the maid changed her version of events.

French prosecutors, however, are convinced they have a case against Strauss-Kahn in what is known as the "Carlton affair".

It centres around allegations that business leaders and police officials in Lille operated a vice ring supplying girls for sex parties, some of which are said to have taken place at the city's Carlton Hotel.

The case took a colourful twist this week when Dominique Alderweireld, a convicted pimp widely known as "Dodo la Saumure (Dodo the brine)" became the 10th person to be charged with aggravated pimping. His nickname is a reference to the curing liquid used for mackerel, which is French slang for pimp.

The Carlton case is one of a series of probes launched in the aftermath of Strauss-Kahn's arrest in New York.

French writer Tristane Banon accused him of trying to rape her in 2003. Investigators concluded that while there was evidence of sexual assault, the alleged attack had occurred too long ago to be prosecuted.

Strauss-Kahn was also investigated over an allegation that he had taken part in the gang rape of a Belgian prostitute. The case was dropped when she recanted and said she had consented to sex.

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Birnie sentence decision after WA election

A SENTENCE review for serial killer Catherine Birnie is expected to be completed in early March but a decision can't be made until after the West Australian election.

The Prisoners Review Board began the review on Friday and is scheduled to hand its report to Attorney General Michael Mischin around March 2.

But with the government in caretaker mode at that time, Mr Mischin can't make his final decision on Birnie's future until after the state election on March 9.

Under law, Birnie's life sentence is reviewed every three years.

Former Attorney General Christian Porter, who left state politics for a tilt at the federal arena, in March 2010 decided Birnie would not be placed on parole or put into a re-socialisation program.

WA's attorney general in 2007, Jim McGinty, said Birnie should never be freed from jail.

Birnie and her late partner David Birnie raped, stabbed and clubbed to death four victims in their Willagee house, in Perth's southern suburbs, in 1986.

They were caught only when one of their intended victims escaped after they abducted her at knifepoint.

The pair were handed strict-security life sentences for the murders and David Birnie hanged himself in his protective custody Casuarina Prison cell in 2005.

She wasn't allowed to attend his funeral.

A 2007 review of Birnie, who is serving her sentence at Bandyup Women's Prison on Perth's north-eastern outskirts, found she was at low risk of reoffending but her release was rejected because of the extreme nature of her crimes.

Birnie, now 60, left her husband and six children in 1985 to live with David Birnie.

She did not marry him but took his surname.

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Collingwood's Williams denies assault

COLLINGWOOD AFL young gun Marley Williams has pleaded not guilty to an assault charge and will face a trial in a West Australian court later this year.

Williams was charged over an incident at a nightclub in his home town of Albany in WA's southwest in late December.

Police allege Williams, 19, got into an argument about 1.30am (WST) with a 29-year-old man.

The other man was ejected from the venue, and when Williams left he saw the man outside.

Williams then allegedly punched the man, who was taken to Albany Regional Hospital with a broken jaw.

The footballer was charged with assault occasioning bodily harm.

On Thursday in Albany Magistrates Court he pleaded not guilty via video link from Melbourne.

The case has been scheduled for mention in March.

The footballer asked to be excused from appearing via video link on that date, but the request was rejected by the court. No date for the trial has been set.

Despite the not guilty plea, the Magpies have chosen to make Williams work with the Salvation Army's soup van on the streets of Melbourne as punishment for his involvement in the late-night scuffle.

Collingwood coach Nathan Buckley announced last week Williams would help the Salvos for the next 10 weeks until the home-and-away season kicks off.

"We just feel it's a good opportunity for Marley to see a different side of things, and we'll be supporting him with our leaders attending each week as he goes through that community service, which we think is appropriate," Buckley said.

Williams joined the Magpies last year as a rookie and played six senior games. He has been promoted to the senior list.

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British PM faces global elite on EU plan

UK PM David Cameron is set to face top politicians and business leaders at The World Economic Forum. Source: AAP

BRITISH Prime Minister David Cameron faces a frosty reception from the global elite at the annual Davos meeting after his vow to hold a referendum on Britain's membership of the EU.

The World Economic Forum in the snowy Swiss ski resort which begins on Thursday will see top politicians and business leaders pursue talks on whether they have seen the back of the global financial crisis.

But that theme threatens to go off-piste, with both Cameron and his finance minister, George Osborne, due to speak one day after the British leader angered his main European partners with his plan for a referendum by the end of 2017.

German Chancellor and EU powerbroker Angela Merkel is also scheduled to address the annual forum, along with a host of other leaders from the 27-nation bloc that Cameron described as needing wide-ranging reforms.

His referendum vow has complicated things at a time when the politicians and business leaders at Davos had hoped that Europe's economy might have finally turned a corner after the three-year eurozone debt crisis.

International Monetary Fund chief Christine Lagarde said on Wednesday there had been stabilisation in the markets while Italian Prime Minister Mario Monti said things had changed from a year ago.

Monti also said that he believed the British public would vote to stay in the EU in any referendum such as the one Cameron promised in his long-awaited speech in London on Wednesday.

Cameron will, however, be seeking support from fellow European leaders for his plans to renegotiate the terms of Britain's troubled EU membership before giving the British public a vote on the new agreements.

The European reaction has been cold so far, with the continent's power couple France and Germany both warning Britain it could not expect to pick and choose its rules.

Cameron - who speaks at 2030 AEDT, followed by Osborne four hours later - will hope Merkel keeps up the conciliatory note she sounded immediately after his speech, saying she was prepared to hear his "wishes" and calling for "compromise".

Merkel will speak at Davos later on Thursday (0015 AEDT Friday), while Monti, Irish Prime Minister Enda Kenny, Dutch premier Mark Rutte and their Polish counterpart Donald Tusk are also due to address the forum.

A broader global outlook will also feature at Davos on Thursday, however, with UN Secretary-General Ban Ki-moon, Microsoft tycoon Bill Gates, and Jordan's Queen Rania joining up with Cameron to discuss development goals for the future.

The crisis in Mali, where French forces are helping African troops fight Islamist militants, will also be discussed while Israeli President Shimon Peres and deputy prime minister Ehud Barak are to address the forum.

No formal decisions are taken at Davos but corporate deals are often sewn up on the sidelines and presidents and prime ministers huddle to thrash out pressing issues.

The invitation-only meeting is also known for its informal luncheons and lavish cocktail parties, often hosted by corporate sponsors and with exclusive guest lists, where political and business leaders can network and mingle.

For its annual invasion from the world's most powerful people, the snow-covered resort goes into lockdown, with around 5000 police and military guarding the venue and helicopters buzzing overhead.

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BP fears for staff missing in Algeria

BRITAIN'S BP says it fears the worst for employees still unaccounted for in the Algerian hostage siege as authorities searched for five missing foreigners and tried to identify seven charred bodies.

The oil giant, one of three companies running the desert gas plant at In Amenas, plans to hold a minute's silence at its offices across the world on Wednesday for the victims of the four-day standoff with Islamist militants.

Algeria's government said 37 foreigners of eight different nationalities and an Algerian were killed in the siege by the hostage-takers, who were demanding the release of Islamist prisoners and an end to France's intervention in Mali.

"The gas complex is so big that we are still in the process of looking for bodies, especially those of missing foreigners," said an official at the sprawling plant, 1300 kilometres southeast of Algiers.

BP chief executive Bob Dudley warned that there could be little hope for four missing employees of the British company.

"We have been gravely concerned for these colleagues and feared one or more fatalities among their number," he said. "It is with great sadness that I now have to say that we fear the worst for them all."

There was still no news about five missing foreign hostages and authorities are trying to identify seven burned bodies, an Algerian security source told AFP.

Algerian TV station Ennahar broadcast what it said was newly emerged video of the hostage-takers, in the open air outside a building in the complex.

The grainy footage showed two gun-toting men in camouflage fatigues. At one point a closely packed group of five or six people appear, their heads showing above a wall, but it is unclear if they are hostages.

The plant, a vital part of Algeria's money-spinning natural-gas industry, is being brought back on stream but questions remain about the Algerian government's handling of the crisis and the shockingly high body count.

Canada's government hauled in the Algerian ambassador to demand proof of official claims in Algiers that two Canadians were among the 29 militants killed by security forces, who brought the standoff to a bloody end on Saturday.

The governments of Japan and Malaysia both expressed frustration at a lack of information about the fate of their nationals and pressed for more clarity from Algiers, as the repatriation of victims' bodies and survivors continued.

The Japanese public have been traumatised by the loss of at least seven nationals in the attack, the country's biggest loss of life at the hands of militants since 9/11, and the government is unable to account for three others.

The Algeria tragedy touched many countries. Six Filipino hostages are known to have died, along with three Americans, three Britons and others.

White House spokesman Jay Carney was asked in his daily briefing whether Washington shared earlier criticism and disquiet raised by Japan and Britain over aspects of the Algerian government's conduct.

"The blame for this tragedy rests with the terrorists who carried it out, and the United States condemns those actions in the strongest possible terms," Carney said, avoiding a direct answer.

"We will remain in close touch with the government of Algeria to gain a fuller understanding of what took place so that we can work together to prevent tragedies like this in the future," he added.

The government has said special forces managed to free 685 Algerian and 107 foreign hostages, most of them on Thursday, during a first rescue operation.

Security has been heavily beefed up at the plant, which is being guarded by the army, while security has been doubled at other energy installations across the country.

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Aust CPI rose 0.2% in Dec qtr

The Australian Bureau of Statistics has released inflation figures for the December quarter. Source: AAP

THE price of Australian consumer goods and services rose 2.2 per cent in the year to December, a slower rise than economists had expected.

The consumer price index (CPI), a key measure of inflation, rose 0.2 per cent in the December quarter, after rising by 1.4 per cent in the September quarter, the Australian Bureau of Statistics said on Wednesday.

The CPI was expected to rise by 0.5 per cent in the December quarter for an annual rate of 2.5 per cent, according to an AAP survey of 15 economists.

The Reserve Bank of Australia has a target range for annual inflation of two to three per cent, and the latest figures will inform its February 5 interest rate decision.

The cash rate is currently at three per cent following the RBA's decision to cut by a quarter of a percentage point in December.

Seasonally adjusted CPI rose 0.5 per cent in the December quarter, and was up 2.2 per cent in the 12 months to December.

The trimmed mean CPI rose 0.6 per cent in the December quarter, for an annual growth rate of 2.3 per cent, data from the ABS showed.

The weighted median CPI rose 0.5 per cent in the December quarter, for an annual rise of 2.3 per cent.

The ABS calculates the trimmed mean and weighted median measures on behalf of the RBA, which uses them to gauge the underlying trend in inflation.

Unlike the headline CPI, the RBA's underlying measures are subject to revision due to the seasonal adjustment of some of their components.

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Elderly man dies at Sydney beach

AN elderly man has died after being pulled unconscious from the water at Balmoral Beach in Sydney's middle harbour.

The man, believed to be aged in his 70s, was pulled from the water shortly after noon (AEDT) on Tuesday, police said.

Paramedics attempted to resuscitate him but he died at the scene.

Police are not treating the death as suspicious and will prepare a report for the coroner.

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Japan sets two per cent inflation target

JAPAN'S central bank has pledged more aggressive action to boost the economy, including setting a two per cent inflation target.

The Bank of Japan said it would conduct "open-ended" asset purchases to help achieve the goal of breaking out of a long spell of deflation.

Prime Minister Shinzo Abe had urged the central bank to ease monetary policy to help the recession-struck economy escape from years of falling prices.

Whether the effort will succeed remains to be seen: the central bank has not achieved even its one per cent inflation target, with price increases hovering below 0.5 per cent for the past two years despite surges in energy costs.

The central bank described its inflation goal as a "price stability target".

""Under the price stability target, the bank will pursue monetary easing and aim to achieve this target at the earliest possible time," it said.

But it said it would also "ascertain whether there is any significant risk to the sustainability of economic growth, including from the accumulation of financial imbalances."

Among the risks are a ballooning public debt, already well over twice the size of Japan's gross domestic product.

Abe's government is seeking to spur growth through heavy government spending on public works and other projects and through monetary easing. The announcement by the central bank was in line with expectations.

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Five people treated at Sydney Orica site

FIVE people have been treated for dizziness, vomiting and nausea at an Orica site in Sydney's southwest.

Paramedics rushed to the Orica site in Villawood following a report that fumes could be smelt outside the Villawood site on Monday at 10.29am (AEDT).

A NSW Ambulance spokesperson confirmed five people had been treated for a range of symptoms, including dizziness, vomiting and nausea.

All five, who were Orica employees, declined hospital treatment, a company spokesperson said.

The warehouse is a depot and stores a number of chemicals.

An internal investigation has been launched and and the NSW Environment Protection Authority has been notified.

The incident comes as Environment Minister Robyn Parker said Environment Protection Authority (EPA) will meet with Orica this week to address community concerns about its Port Botany facility.

The government is being urged to launch an investigation into whether land around the Port Botany plant is contaminated with mercury.

Orica later said it had temporarily suspended operations at its Villawood warehouse as it investigated the source of the odour.

It has also notified the EPA, WorkCover and emergency services.

The company confirmed that seven employees had been referred for precautionary medical tests.

"Orica is continuing to investigate potential sources of the odour including working with the EPA to investigate potential offsite sources," it said in a statement.

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PNG opposition 'point scoring': Manus MP

PNG's opposition has launched a legal challenge against asylum seeker processing on Manus Island Source: AAP

PAPUA New Guinea's opposition is just trying to score points by mounting a legal challenge against an Australian refugee processing facility, a Manus Island MP says.

PNG's opposition leader, Belden Namah, on Sunday announced a legal challenge to the Manus facility.

But Manus MP Ronnie Knight says Mr Namah should have announced his opposition to the site during the last term of government, when he was Prime Minister Peter O'Neill's deputy.

"It's just point scoring," Mr Knight told AAP.

"If the shoe was on the other foot and he was prime minister, he would be pushing for Manus.

"It's been done before and it worked, and there was a political decision to stop it. We feel if (processing) is not done here, it will be done elsewhere."

AAP is seeking comment from Attorney-General Kerenga Kua.

In a conversation before Sunday's announcement, Mr Kua said he had invited the opposition to sit down with him to discuss the centre, but has not had a reply.

Lawyers acting for Mr Namah filed a summons with PNG's National Court on Friday.

The injunction seeks to have the current detainees released and to prevent the government from receiving or detaining any more asylum seekers from Australia.

Mr Namah said in a statement that he regretted taking the action against the PNG government, but he believed the processing centre was unconstitutional.

"The ministers of the O'Neill-Dion government have now received a summons to appear and defend their conduct in the National Court," he said in the statement.

Mr Namah said the detainees on Manus were being held illegally in PNG.

"We will take this matter as far as necessary to ensure that the values of our nation's constitution are upheld," he said.

"This legal challenge also attempts to remedy the many abuses of PNG law and of ministerial powers which have given rise to the situation on Manus."

He said the opposition challenged the right of the government to force people seeking refugee status in Australia to enter PNG, where they were being held "illegally and indefinitely under inhumane conditions".

The motivation for the court challenge has also drawn comment in Australia.

Labor parliamentary secretary Mark Dreyfus questioned why it was occurring.

"I think when you've got the opposition leader in Papua New Guinea bringing a proceeding in the Supreme Court ... it does smack of politics," he told Sky News on Monday.

PNG's National Court is yet to set a date to hear the challenge, while court officers say the case is unlikely to be heard in January.

Greens senator Sarah Hanson-Young told reporters in Adelaide on Monday she will visit Manus Island next week seeking a "full and frank" inspection of the detention facilities.

She said she hoped the PNG and federal governments would co-operate with her request.

She wouldn't comment on the PNG legal system but said it was clear that "punishing" refugees for seeking protection was a breach of international law.

The senator said it was very concerning that Australian taxpayer dollars were being spent on a facility on Manus Island in which children were reportedly witnessing suicide and self-harm attempts.

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PM attends Greig memorial service

Tony Greig's wife has given a tearful tribute to the former England cricket captain at the SCG. Source: AAP

WITH a tearful tribute, a lot of laughs and a smattering of broad-brimmed hats, Tony Greig was given a fitting farewell at the SCG on Sunday.

The former England cricket captain and respected commentator died on December 29 in Sydney after suffering a heart attack during a battle with lung cancer.

On Sunday, he was given a touching memorial led by his wife Vivian, who broke down during her goodbye speech.

"He could make anything sound special and make anyone feel special," Vivian told the audience of 300.

"He gave us confidence when we faltered, he gave us strength when felt drained.

"He gave us laughter when we felt like crying. But most of all he gave us love.

"It's a great privilege and honour to have been Tony's wife."

Greig was a man whose stature was not limited to his imposing frame and whose impact extended far beyond his achievements on the cricket pitch.

In the stands of the SCG, commentary doyen Richie Benaud sat side by side with Greig's old sparring partner Bill Lawry, who delivered the eulogy - and drawing large applause for his Billy Birmingham-inspired impressions of Greig and Benaud.

Highlighting the influence Greig had on a varied cross section of the international game, England champions Ian Botham and David Gower recorded messages, while letters were passed on from Indian legend Ravi Shastri and Sri Lankan hero Arjuna Ranatunga.

They all painted a picture of a genuine cricket tragic born on the eastern cape of South Africa, who became a champion England allrounder before settling in Australia.

But above all they described a man who had a deep appreciation of the game.

"Where did his allegiance lie? His allegiance lay with the sport of cricket," Vivian said.

"He loved watching attacking cricket. He loved watching the Aussies every summer.

"He loved watching Arjuna Ranatunga lead his side in the early '90s.

"He honoured any side that honoured the game."

Greig was remembered as one of the game's great innovators who spearheaded the World Series cricket movement alongside Kerry Packer and embraced technology - to much amusement on occasion.

Vivian recalled a story she felt encapsulated the bravery - and stupidity - of her husband's love of the new.

"He loved innovation," she said.

"Firstly as a player wearing a leather scrum cap, and later a crash helmet as a sensible form of protection.

"Quite early on, I asked him why he didn't wear a helmet in his career and he patiently explained that he felt it took away from the test of courage to face a fast bowler.

"Then came (Australian pace duo Dennis) Lillee and (Jeff) Thompson and he reconsidered the helmet.

"I was appalled. (I said) 'You mean to tell me that it took over 100 years after someone had invented a box before you came along to think about protecting your head?.

"That told me a lot about male priorities but it also showed me Tony was pretty smart, and brave, to wear a helmet."

Lawry described Greig's ability to spend hours in front of his laptop keeping up to date with every seemingly insignificant match report from the corners of the planet - much to the amusement of his less thorough ally, Lawry.

Prime Minister Julia Gillard attended the service, lauding Greig, who died in December after battling lung cancer, as "a towering cricket figure".

Both the Australian and Sri Lankan squads were in attendance, as were current and former Australian stars Shane Watson, Brett Lee and Andy Bichel.

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Motorist critical after driving into river

A MAN is in critical condition in a Perth hospital after driving his car into the Swan river.

The man was rescued by three police officers after his white vehicle plunged off the Barrack Street jetty at around 10.30am (WST).

Witnesses said the car drove to the edge of the jetty near Barrack Street, paused and then accelerated into the water.

Police who arrived at the scene dived in and extricated the man from the car, before performing resuscitation on the waterside.

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