NSW north coast to get NBN: Gillard

Prime Minister Julia Gillard has announced the rollout of the NBN to the far north coast of NSW. Source: AAP

MURWILLUMBAH will be the first of many towns on the NSW north coast to be connected to the national broadband network under the next stage of the rollout, Prime Minister Julia Gillard has announced.

During a visit to the town, Ms Gillard said construction to 5000 homes and businesses would begin in the 2015/16 financial year, as part of a soon-to-be-released three year plan for the fibre network.

"Murwillumbah will be the first of a number of communities in this region to see the benefit of fibre to the premises," Ms Gillard told reporters on Saturday.

"(The NBN) will not only transform our economy, enable us to bring services, including health and education services, to people in new ways, but it will end the burden of distance for regional communities including regional communities here in the far north coast of NSW."

11.51 | 0 komentar | Read More

Fire at Myanmar refugee camp kills 42

AT least 42 people have died and dozens have been injured in a fire at a camp for Myanmar (Burma) refugees in northern Thailand, the provincial governor says, giving an updated toll.

"The latest death toll we can confirm through military walkie-talkies is 42," Mae Hong Son provincial governor Narumol Paravat told AFP by telephone on Saturday.

The toll from Friday's blaze was likely to rise further as rescue workers searched the area.

11.51 | 0 komentar | Read More

Tip off helps smash Sydney ice syndicate

Police have smashed a large drug syndicate following raids across Sydney. Source: AAP

A LARGE Sydney drug syndicate has been smashed and two kilograms of ice worth a million dollars seized, thanks to a tip off from the public.

After months of investigations by a police task force, officers this week raided several homes and business and arrested six men.

The string of arrests began when a man was searched in a Parramatta laneway about 1pm (AEDT) on Thursday.

Undercover police allegedly found a kilogram of ice (methylamphetamine) and $265,000 on the 56-year-old.

Detective Acting Superintendent Anthony Bell said the latest seizure meant the task force had now seized a total of two kilograms of ice, worth $1 million in street value, since being alerted to suspicious activity.

"Late last year detectives ... received information from a member of the public in relation to possible drug activity through metropolitan Sydney," Supt Bell told reporters in Sydney on Friday.

"As a result of our efforts through Strike Force Nichelsen we have dismantled what we believe was a syndicate involved in the ongoing supply of a large amount of methylamphetamine throughout Sydney."

The 56-year-old Mays Hill man was charged with a raft of drug supply offences, refused bail and is due before Parramatta Local Court later on Friday.

Soon after his arrest police searched eight businesses and homes across Sydney.

Inside one home in Smithfield, police allegedly found an amount of chemicals used in the manufacture of prohibited drugs.

Another one of the search warrants on a karaoke bar in Aird Street, Parramatta, found a handgun.

Following the raids five men were charged with supplying a large amount of methylamphetamine and other drug-related offences.

A 48-year-old Ashfield man, a 48-year-old Campsie man and a 26-year-old Baulkham Hills man have been refused bail and are due before Burwood Local Court on Friday.

A 51-year-old Strathfield man was refused bail and will appear at Parramatta Local Court on Friday and a 21-year-old Granville man has been refused bail to appear at Bankstown Local Court later on Friday.

Police and Customs have also seized 1.3 tonnes of ContacNT, a pharmaceutical drug with high levels of pseudoephedrine that is used to make ice.

11.50 | 0 komentar | Read More

Martin Ferguson resigns from cabinet

Kevin Rudd supporter Martin Ferguson (pic) has resigned from PM Julia Gillard's cabinet. Source: AAP

KEVIN Rudd supporter Martin Ferguson has resigned from Prime Minister Julia Gillard's cabinet.

Mr Ferguson, who was the minister for resources and energy, and for tourism, made the announcement in Canberra on Friday.

He's the second cabinet minister to stand down.

Fellow minister Chris Bowen resigned on Friday morning as minister for tertiary education.

Simon Crean was sacked on Thursday by Ms Gillard, who retained her leadership unopposed at a caucus meeting following Mr Rudd's decision not to stand.

Mr Ferguson said he had come to his decision after considerable thought and had informed Ms Gillard of his intention.

"I have a view it is the only honourable thing to do," he told reporters.

Mr Ferguson supported Mr Rudd's challenge in February last year, when he said he was worried about the direction of the party.

"For those reasons I would have voted for Kevin Rudd yesterday and Simon Crean (as deputy) to try and give this party a fresh start," he said.

"Unfortunately the events of yesterday were not what we have hoped for.

"The caucus has made the decision. I respect that decision."

Mr Ferguson said by resigning he was giving the prime minister and the ALP the opportunity to regain the Labor legacy of reform and embrace an approach which looked after all Australians.

"In doing so, seek the best position for the party I have been a member for 35 years to win the next election," he said.

He also gave credit to Labor stalwart Mr Crean, who had planned to run for the deputy leader spot and called for the spill.

"I thought what he did yesterday was courageous. It was about trying to give the party a fresh start," he said.

"For this reason, I would have supported him."

Mr Ferguson said Labor needed to "reclaim the legacy of the Hawke and Keating governments".

"(The legacy of) being a reforming government, " he said.

He hoped the current government had learned from the "mistakes" made during the development of mining tax debate in 2010, which in part led to Mr Rudd losing the leadership to Ms Gillard.

"You don't have to agree but you need to consult, argue it out, and work out a balance in society," he said.

"That is what I learned as a young trade union official."

Mr Ferguson is one of the only ministers to have remained in the same portfolio since the election of the Rudd government in 2007.

He said he would stand for election for his seat of Batman in September and remain in parliament for the full term if elected.

Mr Ferguson said he had spoken to very few people about his decision to stand down.

"This is a personal decision, and having made it I sat down today and re-read my first speech," he said.

The final paragraph was along these lines: "If I leave parliament with the same sense of dignity and standing that that my farther did, having left school at 13 gone on to be a bricklayer and deputy premier of NSW then I will have achieved something and maintained my dignity and honour."

He said it was not an easy decision to resign but it was honourable and he did not resile from it.

Asked if Labor had enough time to gather itself ahead of the September 14 election, Mr Ferguson said it would be "very easy, if there's a will".

As resources minister, he was deeply involved in the government's highly controversial 2010 resource super profits tax proposal, which was scrapped for the minerals resource rent tax.

"The mining dispute we created was our own mess, because of a failure to consult," he said.

He said what followed was a campaign focused on class war.

"In my opinion, once that started, we lost the capacity to get an earlier and better outcome from those negotiations," Mr Ferguson said.

Separately, a decision to take away from caucus the right to select the front bench - a decision made by Mr Rudd - was a major error.

"If anything, I suppose, it undermined the capacity for people to stand up and argue issues out, because they thought if you actually expressed an alternative view under the prime ministerial selection, then you undermine your career," he added.

11.50 | 0 komentar | Read More

Large grassfire heading to Winchelsea

A FAST-MOVING fire is expected to encroach on the southwest Victorian town of Winchelsea.

The 350-hectare grass and scrub fire which began near Inverleigh is burning out of control and creating spot fires approximately one to two kilometres ahead, the CFA says.

It was expected to hit Winchelsea and Buckley between 1.45pm (AEDT) and 3.45pm on Thursday.

Northerly winds at nearby Geelong are gusting up to 63km/h.

A wind change is expected in the next five hours, which may cause the fire to change direction towards Wurdiboluc and Modewarre, the CFA says in a watch-and-act message.

Residents are urged to follow their bushfire survival plans.

Meanwhile, lightning strikes have sparked a number of fires in Victoria's west.

One larger fire at Lake Mundi burnt 27 hectares of bushland in Strathdownie State Forest.

Thunderstorms and strong winds are expected to continue throughout the day, creating potential for further fires, a joint CFA and DSE media release said.

11.51 | 0 komentar | Read More

Abbott calls motion of no confidence

Opposition Leader Tony Abbott (pic) called for a motion of no confidence in PM Julia Gillard. Source: AAP

OPPOSITION Leader Tony Abbott has called for a motion of no confidence in Prime Minister Julia Gillard.

Mr Abbott said his motion was about the decent, honest, hard-working people of Australia who deserve a strong, stable and confident government.

"This is about reassuring the Australian people that we are a great people and we are a great country, just momentarily let down by a very poor government," Mr Abbott said.

"(This is) an incompetent and chaotic government which just gets worse and worse with each passing day, let alone each passing day."

Mr Abbott said not only did the coalition have no confidence in the prime minister but now some of her ministers had no confidence.

"This is a government in deadlock," he said.

"This is a government in crisis.

"A house divided against itself cannot stand."

Mr Abbott said a poor government had lost its way and most of its MPs were embarrassed.

"There has been policy failure after policy failure from this government," he said.

Mr Abbott pointed to Labor's failing in border control, the live cattle trade, school halls, the budget deficit and the national broadband network.

"It just gets worse and worse," he said.

Mr Abbott said he had seen enough of politics and enough of good people on both sides of politics to have some respect for the Labor Party.

Mr Abbott said it was time for Ms Gillard to go.

"For your party's good, you should go. For the nation's good, you should go," he said.

"We are a great people, we are a great country, I very much fear we can never reach our potential under this prime minister."

Opposition deputy leader Julie Bishop said the independent and Green MPs whose support allowed Ms Gillard to form a government now needed to search their consciences and decide whether that support should continue.

"The Australian people deserve so much better than this prime minister," she said.

Ms Bishop said no matter who won the leadership ballot for Labor, there would be no stability.

"Clearly the ALP is riven down the middle. There are irreconcilable splits between factions, between camps. It is deep, it is personal, it is vicious and it will not go away," she said.

Ms Gillard said this was the same "negative dummy spit" for the opposition leader and his deputy that they have been engaged in since the 2010 election.

"The leader of the opposition just had an opportunity to indicate to the Australian people, if he chosen to take it, what his vision was for the country," she said.

"Instead, because he is unable to do that, he filled the space with the only thing he knows how to do, and that is negativity, his bitterness and politics of personal assault."

Ms Gillard said this was the same "negative dummy spit" from the opposition leader and his deputy that they have been engaged in since the 2010 election.

"The leader of the opposition just had an opportunity to indicate to the Australian people, if he had chosen to take it, what his vision was for the country," she said.

"Instead, because he is unable to do that, he filled the space with the only thing he knows how to do, and that is negativity, his bitterness and politics of personal assault."

Ms Gillard listed the government's achievements in office, including growing the economy and bringing Australia through the global financial crisis.

"We've always understood that our nation faces a huge challenge, with instability in the global economy and reshaping of our economy through the high Australian dollar," she said.

"Day after day, piece after piece we have met that challenge to create jobs for Australians - more than 900,000 of them - and we will continue to create jobs."

Ms Gillard said her government wasn't done yet.

"We have got more to do," she said.

Ms Gillard said a Labor government would always work to ensure the benefit and spread across the nation.

"That is our mission, that is our creed," Ms Gillard said.

"That is what Labor governments do, that is what this Labor government has done.

"It is what it has done under my prime ministership and it is what it will do under my prime ministership from this day forth."

Ms Gillard said her government would "fight and fight and fight" until the election in September.

"We will prevail in that election because the choice will be so clear and the right path for a stronger, smarter, fairer future will be so clear as well."

The motion to suspend parliamentary business for a motion of no confidence was lost with votes split 73 in favour and 71 against, but short of the overall majority required.

Ms Gillard listed the government's achievements in office, including growing the economy and bringing Australia through the global financial crisis.

"We've always understood that our nation faces a huge challenge, with instability in the global economy and reshaping of our economy through the high Australian dollar," she said.

"Day after day, piece after piece we have met that challenge to create jobs for Australians - more than 900,000 of them - and we will continue to create jobs."

Ms Gillard said her government wasn't done yet.

"We have got more to do," she said.

Ms Gillard said a Labor government would always work to ensure the benefit and spread across the nation.

"That is our mission, that is our creed," Ms Gillard said.

"That is what Labor governments do, that is what this Labor government has done.

"It is what it has done under my prime ministership and it is what it will do under my prime ministership from this day forth."

Ms Gillard said her government would "fight and fight and fight" until the election in September.

"We will prevail in that election because the choice will be so clear and the right path for a stronger smarter fairer future will be so clear as well."

The motion to suspend parliamentary business for a motion of no confidence was lost with votes split 73 in favour and 71 against, but short of the overall majority required.

Meanwhile, the opposition's leader in the Senate Eric Abetz moved a no confidence motion in the government.

He told the Senate an historic day that should have focused on the national apology to forced adoption victims had been pushed aside by the "blood lust of Labor".

Government leader in the house Anthony Albanese asked if they could finish sitting early on Thursday.

This would allow Labor MPs time for last minute vote haggling ahead of the leadership spill.

Opposition frontbencher Christopher Pyne said Labor MPs should be given a seven week break.

"To give the government, that is crumbling before our very eyes, the opportunity should the prime minister be replaced, or even if prime minister is not replaced, to start regrouping and focusing on what matters to Australians today," he said.

11.51 | 0 komentar | Read More

Time for supermarkets talks over: farmers

THE peak farmers' body is stepping up pressure on the federal government to stop major supermarkets abusing their market power.

The National Farmers' Federation (NFF) on Wednesday said it was time for a mandatory code of conduct for supermarkets, as efforts to develop one voluntarily had failed.

After months of discussion with the giants Coles and Woolworths and other retailers, NFF president Jock Laurie says the group has "lost confidence" a voluntary code can deliver what producers need.

"We want to put some clout in this, so let's move it to the next step," he told reporters in Canberra.

The last thing the NFF wanted was to impose more red tape or compliance costs on the agricultural sector.

But the back and forth bickering wasn't resolving the situation and it was time for the government to get tough.

"Let's actually cut out all the rubbish and get down and find out what the facts are," Mr Laurie said.

He said this didn't mean the NFF was walking away from discussions with retailers.

A mandatory code would strengthen measures to stop supermarkets misusing their power, possibly through mandated financial penalties.

Importantly, it would address concerns about contract negotiations between farmers and retailers.

The NFF has also suggested setting up an ombudsman-like figure to independently resolve disputes.

11.51 | 0 komentar | Read More

Syria regime, rebels trade chemical claims

THE US and UN are attempting to verify claims and counterclaims by Syrian troops and insurgents that chemical weapons have been used for the first time in the two-year conflict.

NATO supreme commander Admiral James Stavridis, decrying the deteriorating situation, said in Washington on Tuesday that NATO members are mulling plans for possible military action in Syria.

However he stressed that any intervention would only occur with a UN security council resolution and agreement from the alliance's 28 members.

His comments came after Syrian state media reported that "terrorists fired rockets containing chemical materials on Khan al-Assal in Aleppo province," with Information Minister Omran al-Zohbi calling the attack a "dangerous escalation."

Deputy Foreign Minister Faisal Muqdad said 31 people had been killed, and state media added that around 100 more were injured.

The insurgents denied the charges and accused regime forces of a deadly long-range missile attack that caused "breathing problems".

The Russian foreign ministry said it had "information" from Damascus that insurgents used chemical weapons, and expressed concern such weapons falling into the hands of rebels "complicates further the situation in Syria."

In Washington, White House spokesman Jay Carney said the US has "no evidence to substantiate the charge that the opposition has used chemical weapons."

State Department spokeswoman Victoria Nuland said US ambassador to Moscow, Michael McFaul, would be seeking clarification from the Russian authorities.

United Nations Secretary General Ban Ki-moon "remains convinced that the use of chemical weapons by any party (in Syria) under any circumstances would constitute an outrageous crime," the UN said.

UN spokesman Martin Nesirky said the UN was "aware of the report" that chemical weapons had been used in Syria, but said "we are not in a position to confirm it."

Britain said that if the reports of chemical weapons usage were true it would "revisit" its approach to the two-year conflict.

Syrian state television showed ambulances arriving at a hospital in Aleppo carrying the wounded, with medical officials and residents saying the attack involved "toxic gas".

"We have neither long-range missiles nor chemical weapons. And if we did, we wouldn't use them against a rebel target," rebel Free Syrian Army spokesman Louay Muqdad said.

"We understand the army targeted Khan al-Assal using a long-range missile, and our initial information says it may have contained chemical weapons."

The Syrian Observatory for Human Rights said a ground-to-ground missile had been fired at an army position in Khan al-Assal, killing 16 soldiers and 10 civilians.

The watchdog was unable to say if the missile contained chemical materials.

The international community has expressed repeated concern that Assad's regime might use chemical weapons against the rebels, and also that they could fall into the hands of militants.

Some 70,000 people have been killed in over two years of fighting in Syria, with millions displaced by the fighting. The Observatory said at least 112 people were killed on Tuesday alone in violence throughout the country.

11.51 | 0 komentar | Read More

Drugs found after Vic raid on bikie house

DRUGS have been found during police raids on bikie hubs in the Victorian city of Geelong.

Detectives searched the Bandidos clubhouse and another property connected to the bikie group on Tuesday.

They have already found a small amount of illicit drugs, police say.

The detectives are still scouring the properties in the Geelong area.

There have been no arrests.

The raids are part of Operation Resound, a major disruption strategy run out of the anti-bikies Echo taskforce, in a bid to stop bikie violence before it occurs.

Bikie gang incidents prompted Victorian police to issue a warning the Bandidos had "declared war" on rival group the Hells Angels.

11.51 | 0 komentar | Read More

Bullying 'part and parcel' of social media

YOUNG Australians have accepted bullies and trolls as an inevitable part of using social media websites, new government research suggests.

The Australian Communications and Media Authority's (ACMA) study of 1500 children in NSW and South Australia showed one in five 14 and 15-year-olds have been bullied on the internet.

That's a slightly higher rate than found among other juvenile age groups.

But children of all ages said suffering or witnessing bullying is now an unavoidable part of social media sites, with the potential anonymity afforded to users a key driver of the abuse.

"It's sort of part and parcel of it all. You use social networks and you're going to see cyber bullying," one child told the ACMA.

The communication watchdog's senior adviser Rosalie O'Neale said 14 and 15-year-olds are most vulnerable to online bullying because many don't have the social skills to manage difficult situations online.

The age group was also identified as the most likely to engage in risky online behaviour, including becoming friends with or exchanging information with strangers.

Ms O'Neale believes slightly older children are less vulnerable because they are "less insular" and generally spend a little more time on other activities, including schoolwork.

Youngsters do take action against trolls and bullies, with some either defending victims or asking the perpetrators to stop, the ACMA found.

"The good news is that these young people are prepared to stand up and speak out about cyberbullying," ACMA deputy chairman Richard Bean said.

The overall level of online bullying was found to be steady, despite increased participation online.

The findings, part of the ACMA's Cybersmart online safety initiative, were presented at the sixth World Congress on Family Law and Children's Rights in Sydney on Tuesday.

11.51 | 0 komentar | Read More

Qld hunt still on for would-be abductors

POLICE are no closer to finding two men who tried to abduct a nurse in Brisbane, after a vehicle tracked to Toowoomba turned out to be the wrong one.

Police now say there's no link between the Toowoomba vehicle and the abduction attempt in Brisbane on Saturday night.

Officers had said they had spoken to the owner of the car, who had named two men who borrowed the vehicle over the weekend.

On Monday, officers stepped up efforts to find those responsible.

They released an image of one of the men, who grabbed the 36-year-old nurse as she walking near the Princess Alexandra Hospital on Saturday night.

The man pressed a sharp implement into her side, threatened her and told her to get into the car, where a second man was waiting.

A passing vehicle gave the woman a chance to get away.

The man who grabbed the woman fled on foot, and the second man took off in the car.

Police say they're still looking for the car, described as a white, silver or grey sedan.

The man who accosted the woman is described as about 173cm tall, with a solid build and a dark complexion. He was clean shaven with a vertical scar on the lower left side of his cheek.

The second man, who was standing beside the car, also had a dark complexion. Both were wearing jeans and hooded jumpers.

Police are appealing for witnesses to come forward.

11.51 | 0 komentar | Read More

Cannabis helps the dying, NSW inquiry told

PEOPLE at the end of their lives should have access to cannabis to manage pain and improve quality of life, an inquiry has heard.

The drug could also be used to treat people with chronic pain so long as it was carefully managed using dose control and regular assessment, said Professor Michael Cousins, director of the Pain Management Research Institute at the Royal North Shore Hospital.

However, he told the NSW parliamentary committee more research was needed into the long-term side effects of cannabinoids.

Asked if there was enough evidence to support giving the treatment to terminally ill people, such as those with late stage cancer or AIDS, Prof Cousins replied, "Absolutely ... we should be doing something now.

"In view of the lack of options we currently have I think it's very important that we take advantage of this option."

The committee is investigating the feasibility and safety of using cannabis as a medicine, and the legal implications of supplying cannabis to patients.

Addressing the inquiry on Monday, Saxon Smith from the Australian Medical Association said there was growing evidence certain cannabinoids were effective treating chronic pain and could help people with multiple sclerosis and Parkinson's disease.

"However, the results of long term medical use are not understood at this point in time," he said, adding the drug could lead to psychosis and depression.

"That is is something that we feel needs to be a watching brief at this time."

Dr Saxon said the AMA backed the use of synthetic cannabinoids rather than smoking cannabis.

Professor Jan Copeland, director of the National Cannabis Prevention and Information Centre, said there had been a spike in cannabis use in countries where it had been legalised.

She also warned it was "a drug of addiction" and research supporting its medical use was "moderate at best".

11.51 | 0 komentar | Read More

Defeated Kenyan PM challenges poll result

Outgoing PM Raila Odinga has lodged a petition to challenge the outcome of the Kenyan election. Source: AAP

OUTGOING Kenyan Prime Minister Raila Odinga has lodged a petition with the country's top court to challenge the outcome of the presidential election that saw him defeated by his rival Uhuru Kenyatta.

The move will be seen as a test of democracy in Kenya, which was rocked by bloody violence after the last disputed polls in 2007, when more than 1100 were killed and hundreds of thousands were displaced.

Odinga's Coalition for Reform and Democracy (CORD) claims the poll was marred by irregularities including changes to the voter register and inflated numbers of registered voters.

They also accused the electoral commission of using "poorly selected, designed" electronic equipment to transmit the results.

With the petition, Odinga is asking the court "to set aside the results of the presidential election as announced on March 9 and the declaration of Uhuru Kenyatta as president-elect ... and declare null and void the whole electoral process," according to a CORD statement.

The party filed the suit at the Supreme Court in the capital Nairobi on Saturday after Odinga spoke to supporters and reporters outside his offices.

"I have no hesitation whatsoever in lawfully challenging the election outcome," he said.

"To do otherwise would be a betrayal of the new constitution and therefore of everything that Kenyans hold dear."

Earlier, police used tear gas to disperse around 100 people demonstrating in favour of Odinga at the court.

An AFP photographer saw one young man bleeding from a wound to the forehead. Bystanders said he had been struck by a tear gas cannister.

Kalonzo Musyoka, Odinga's running mate in the March 4 election, accused the police of being heavy-handed and said Kenyans had simply "been trying to exercise their constitutional right to freedom of movement".

But he called on party supporters to remain calm.

Kenyatta, who avoided a second-round run-off vote by the slimmest of margins to win a majority with just 50.07 per cent, beat Odinga - his closest rival - by more than 800,000 votes.

Odinga won 43.31 per cent of the votes in his third failed attempt at the top job. He said he would abide by the decision of the court and urged Kenyatta to do likewise.

The Supreme Court has 14 days in which to hand down a ruling.

11.51 | 0 komentar | Read More

Cyprus parliament meets on EU bailout deal

THE Cyprus parliament is set to hold an extraordinary session as the debt-laden government seeks to push through legislation on a painful EU bailout.

The session is being held amid anger among bank savers who would be hard hit by the plans.

President Nicos Anastasiades is due to brief MPs at 11.30am (2030 AEDT), with a tough ride for the draft expected at a full plenum from 4pm (0100 AEDT on Monday), Cypriot media said.

Ministers are in a race to thrash out draft legislation ratifying the bailout and push it through parliament before banks reopen on Tuesday after a long holiday weekend, including a pre-Easter carnival Sunday marred by the news.

On Saturday evening, the president already had meetings lined up with party leaders and the island's bank bosses.

Faced with protest calls, the president said he will address the country on Sunday to defend the controversial deal which he admitted was "painful" but insisted was the only way to save the banking sector from total collapse.

He said thousands of small businesses would also have gone bankrupt because of cash flow problems without the deal and the unprecedented bank levy attached for an EU bailout.

Savers in Cyprus banks reacted with shock and anger after the government agreed to the levy on bank deposits in return for a desperately needed 10-billion-euro ($A12.62 billion) bailout.

The debt rescue package, agreed with the eurozone and International Monetary Fund early on Saturday after around 10 hours of talks in Brussels, is significantly less than the 17 billion euros Cyprus had initially sought.

Most of the balance is to be made up through the bank deposit levy of up to 9.9 per cent - the first eurozone bailout in which private depositors are having to help foot the bill.

The government had held out against the bailout condition until the 11th hour, arguing it would risk a run not only on the island's own banks but also on those of other debt-ridden eurozone economies.

Only last Monday, Finance Minister Michalis Sarris said that a haircut on deposits in local banks would be "disastrous for Cyprus and the eurozone."

Opposition leader George Lillikas has called on his supporters to protest on Tuesday, charging that the president who was elected only last month had "betrayed the people's vote."

Even the conservative leader's partners in the ruling coalition had strong words against the deal.

"During our meeting it was stressed that the decision was... almost annihilating the Cypriot economy," said Marios Garoyian, after chairing a meeting of his centrist DIKO party.

The Bank of Cyprus, the island's largest lender, said it was "absolutely understandable and justified for public opinion to be concerned."

The levy will see deposits of more than 100,000 euros held by all residents of Cyprus hit with a 9.9 per cent charge when lenders reopen their doors. Below that threshold, the levy drops to 6.75 per cent.

At the same time, an additional "withholding tax" will be imposed on interest on bank deposits, and Cyprus will have to hike corporate tax to 12.5 per cent from 10 per cent and sell off state assets.

11.51 | 0 komentar | Read More