Confusion over why PM cancelled Bali trip

The federal government won't say why Prime Minister Tony Abbott cancelled a trip to Indonesia. Source: AAP

LABOR is demanding to know why Prime Minister Tony Abbott cancelled a planned trip to Indonesia, accusing him of further straining the relationship with one of Australia's closest neighbours.

Arrangements were being made for Mr Abbott to visit Bali early next week, where he'd been invited by Indonesian President Susilo Bambang Yudhoyono to attend a regional forum on open government.

But the trip has been put on ice, with speculation an asylum seeker operation underway northeast of Australia could be the reason behind the last-minute decision.

The prime minister's office has not confirmed why the visit was junked just days before the two leaders were expected to meet on the sidelines of the conference.

The invitation was seen as an opportunity to salvage relations damaged after a spying scandal late last year that saw Indonesia suspend high-level co-operation with Australia.

Shadow foreign affairs spokeswoman Tanya Plibersek is calling for answers.

"Rejecting this invitation at this late stage really does put extra strain on the relationship," she told reporters in Sydney on Saturday.

"It's very important that the prime minister discloses the reasons that he's really not going."

It's understood the trip was deemed too politically risky while Australian authorities were in the process of intercepting an asylum seeker vessel heading towards the mainland.

Turning back or towing an asylum seeker boat to Indonesia during the prime minister's visit could have caused embarrassment President Yudhoyono, sources say.

The Australian Greens said Mr Abbott's "cruel" asylum seeker policy had robbed Australia of a real chance to mend ties with Indonesia.

"That's the extent of the embarrassment that Tony Abbott is to Australia both domestically and internationally," Greens leader Christine Milne told reporters in Hobart.

"He's hoist on his own petard."

Finance Minister Mathias Cormann said there was nothing unusual or remarkable about the decision to cancel the trip, suggesting the impending budget was the reason.

"The prime minister is obviously very focused on his responsibilities here in Australia, 10 days out from our first budget," he told Sky News on Saturday.

Labor frontbencher Ed Husic rejected this explanation, accusing him of undermining Australia's foreign interests by snubbing Indonesia.

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Man abducts, attacks Qld woman in her car

A MAN has attacked a woman after jumping in her car at a north Queensland car wash and telling her to drive to an industrial area.

Police say the woman was cleaning her car in the early hours of Saturday morning when a man jumped in and told her to drive to a nearby industrial area.

When they stopped he snatched the keys from the ignition and the pair began to struggle.

But the sight of a patrolling police car caused the man to run away.

The woman was taken to hospital with cuts and abrasions to her face, back, legs and an injury to her arm.

Police are searching for the man.

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Cyber extortion ring busted in Philippines

DOZENS of people have been arrested in the Philippines for their involvement in a giant, global Internet "sextortion" network, local police and Interpol say.

Victims in foreign countries were lured by people in the Philippines into giving sexually explicit photos or videos about themselves online, then been blackmailed for many thousands of dollars, the authorities said in a joint press conference in Manila on Friday.

"The scale of this extortion network is massive," the director of Interpol's Digital Crime Centre, Sanjay Virmani said.

"These crimes are not limited to any one country and nor are the victims. That's why international cooperation in investigating these crimes is essential."

Philippine police chief Alan Purisima said the 58 people arrested would be charged over a range of crimes, including engaging in child pornography, extortion and using technologies to commit fraud.

It was not immediately clear whether all 58 arrested were Filipinos, although authorities initially made no mention of any foreigners who may have been directly involved in the Philippines.

However, authorities emphasised the Philippines was not the hub of the global sextortion network, only that the current investigation had focused on the Southeast Asian nation.

Purisima said the scam typically involved someone posing as an attractive, young lady making contact with people overseas via Facebook and other social media, then seeking to establish a relationship with them.

"After getting acquainted with the victims ... they engage in cybersex, and this will be recorded unknown to the victims," he said.

"They then threaten to release it to friends and relatives."

He said victims had paid between 500 Philippines pesos ($A12) and 500,000 pesos ($12,075).

While he said elderly men were often targeted, children were also victims.

A Scottish police chief who also briefed reporters at the press conference said one boy in Scotland had committed suicide after being extorted.

He said the boy was 17 when he killed himself.

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Ramsay Healthcare founder leaves $3b

Ramsay Health Care founder Paul Ramsay has died at the age of 78 after suffering a heart attack. Source: AAP

RAMSAY Health Care founder Paul Ramsay, one of Australia's richest men, has died, leaving more than $3 billion to the foundation bearing his name.

The 78-year-old died overnight in his home town of Bowral in NSW, after suffering a heart attack while sailing in Spain a week ago.

Mr Ramsay was Australia's ninth richest person and the 499th richest person in the world, with an estimated fortune of $US3.3 billion ($A3.57 billion), according to Forbes.

"He will be greatly missed by his family, friends, colleagues, staff and doctors and anyone that knew him, throughout the world," Ramsay Health Care said on Friday.

Most of Mr Ramsay's wealth came from his 36 per cent stake in Ramsay Health Care, which has more than quadrupled in value since 2009.

Single with no children, Mr Ramsay has left the bulk of his estate, including $3.27 billion in company shares, to the Paul Ramsay Foundation.

The foundation donates to many charities and supports several medical and health research groups.

Mr Ramsay started Ramsay Health Care in 1964 when he purchased a guest house on Sydney's north shore and converted it into a psychiatric hospital.

The company was floated in 1997 and now has more than 150 hospitals and clinics across Australia, Europe and Asia.

Mr Ramsay was also chairman of regional broadcaster Prime Media Group for nearly 30 years, before stepping down recently after selling his 30 per cent stake in the company.

Mr Ramsay also owned a stake in soccer club Sydney FC and was the club's chairman from 2009 to 2012.

In 2002, he was made an Officer of the Order of Australia for services to the community.

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Abuse victim wants govt explanation

A MAN who was left for weeks without treatment for broken bones while in the care of Christian Brothers at a Western Australia orphanage says the federal government neglected its responsibility to child migrants.

Giving evidence at the Royal Commission into Institutional Responses to Child Sexual Abuse, Edward Delaney says he was told by a priest he would be forgiven for being raped by a brother if he said three Hail Mary's.

When Mr Delaney was 14, he fell while working at St Joseph's Farm and Trade School, Bindoon.

"For two weeks I cried with the pain and finally when we were staying at Moore River (the Christian Brothers holiday home) I was crying so much I was taken to Royal Perth hospital.

"It was discovered I had a broken arm and broken leg. I was patched up in plaster and sent back."

Mr Delaney - a child migrant from England sent to Australia without his mother's consent - said in his years at Bindoon, from age nine to 16, he never once saw a welfare worker.

"I believe that the Australian government neglected their responsibility to find out - they dragged us from a country, with the permission of the English government," he said.

"They dragged us here, they placed us there to make this a bigger country, and then they don't care about us.

"I want to know why."

Mr Delaney was raped by a Brother Parker while at Bindoon "about once a month for 18 months".

When he notified the resident priest, Brother Parker was shipped off to Tasmania and Mr Delaney - aged 13 - was told to say three Hail Marys and his sins would be forgiven.

The senior Brother at Bindoon - Bruno Doyle - told him not to tell anyone.

"The matter has been dealt with," Doyle told Mr Delaney, the commission heard.

"If I hear that you've told anybody, you'll be punished."

The commission was told Brother Doyle once broke the fingers on both of Mr Delaney's hands by beating him with a leather strap with a hacksaw blade sewn into it.

Mr Delaney was left with a permanent disfigurement by the attack.

After successive attacks, Mr Delaney snapped.

"Something in me just broke," he said.

"I pulled a knife and held it to Brother Doyle's throat and yelled at him 'if you ever touch me again I'll run this through your throat'," Mr Delaney said.

"Brother Doyle never bullied me again."

In a final insult, Mr Delaney was told when he left Bindoon he would never amount to anything.

At the time, the now retired investment broker took it as a challenge.

"(I) educated myself and have gone on to live a successful life," he said.

The hearings continue.

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Land shortages driving up housing prices

A SHORTAGE of available land for housing in Australia's capital cities is driving up prices.

The Housing Industry of Australia (HIA) and RP Data say the volume of land sales in the final three months of 2013 fell 1.8 per cent, while median land prices rose 4.2 per cent to the highest level in the survey's history.

HIA's senior economist Shane Garrett said the figures show that there is a serious supply shortage for the residential land market.

"For the second consecutive quarter, we have seen turnover in the market decline while at the same time lot prices have shown significant increase," he said.

"Policy makers have to act quickly to ensure that the supply of land is boosted. Doing so will greatly improve the chances of sustaining the recovery in residential construction."

The HIA-RP Data Residential Land Report also found that the median residential land value for Australia's six state capital cities rose 22.3 per cent in calendar year 2013.

RP Data research director Tim Lawless said the falling land supply combined with the upturn in the housing market would hurt housing affordability.

"With vacant land prices continuing to rise at a time when volumes have moved lower we can surmise that demand is exceeding supply which, in turn, drives prices higher," he said.

"With housing affordability coming increasingly under the spotlight, an improvement in the flow of land supply would be a welcome scenario."

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Plane catches fire at Perth Airport

A PLANE has made an emergency landing at Perth Airport after a suspected engine fire erupted shortly after take-off.

The Cobham Aviation flight landed safely after the mid-air incident on Tuesday, a Perth Airport spokeswoman confirmed.

Witnesses have reported seeing the flames coming from the right engine.

The Perth Airport website shows that a Cobham Aviation flight was scheduled to depart at 10.45am for Barrow Island.

Pictures have emerged on social media of a plane with an engine appearing to be on fire, but it has not been confirmed as the plane involved in the emergency.

The aircraft is currently being assessed at the airport.

Cobham operates aircraft on behalf of Qantas regional subsidiary QantasLink.

A spokesman for the regional carrier said a statement would be issued later on Tuesday.

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Donor was told 'no one will know': ICAC

THE NSW builder whose $5000 payment to an alleged Liberal Party front company sparked a sensational inquiry says a fundraiser for NSW MP Chris Hartcher urged him not to declare the donation.

Matthew Lusted told the corruption watchdog he decided to stand for Liberal preselection in the federal seat of Dobell after a chance meeting with then Opposition Leader Tony Abbott at a steakhouse on the eve of Australia Day, 2011.

"He encouraged me to consider it," Mr Lusted told the Independent Commission Against Corruption (ICAC) on Tuesday.

"And eventually I did."

Mr Lusted was ultimately beaten to the Dobell preselection by Karen McNamara, who he claims "gloated" that as campaign manager for Darren Webber's 2011 state parliament tilt at the seat of Wyong, she raised $200,000, though she declared less than $100,000.

Days earlier, Mr Lusted says, he had met with Hartcher associate Ray Carter, who asked him to "contribute for the boys who are standing on the coast".

The "boys" were Mr Hartcher and NSW Central Coast MPs Chris Spence and Mr Webber, all of whom have been banished to the crossbench over the controversial donations.

It is alleged that Mr Carter arranged for the money to be paid not to the Liberal Party but to "sham" company EightByFive.

Documents show Hartcher staffer and EightByFive founder Tim Koelma billed Mr Lusted's company for $4545.46 plus GST for "Products and services as agreed".

Mr Lusted said he did not realise the money had been funnelled in this way until he attempted to declare the $5000 donation to the Electoral Funding Authority and one of his staff was unable to find a record of it.

"I had a gut feeling something was not right," Mr Lusted told the ICAC in a statement.

But he says Mr Carter reassured him that the apparent discrepancy would go away, telling him: "No one's going to find out about anything. You've got nothing to worry about."

"I wonder if he thinks that now," Mr Lusted mused.

Counsel for Mr Koelma has suggested Mr Lusted is lying to the ICAC "as a form of retribution for having not been preselected" in Dobell.

The inquiry into political donations continues.

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MH370 search being scaled back: PM Abbott

A report into the flight MH370 disaster is understood to recommend real-time tracking of aircraft. Source: AAP

THE search for missing Malaysia Airlines plane MH370 is being scaled back, Prime Minister Tony Abbott has announced.

He says 52 days after the plane disappeared with 239 people on board, the search is now entering a "new phase" focused on searching the ocean floor.

It is now "highly unlikely" that any aircraft debris will be found on the ocean's surface, he says.

"By this stage, 52 days into the search, most material would have become waterlogged and sunk," he told reporters.

He acknowledged the "tremendous work" of air crews from eight nations who have contributed to the air search.

The Bluefin-21 will continue to be used in the operation, Mr Abbott said.

However, an intensified search will involve different technology.

"In particular, using specialised sidescan sonar equipment towed behind ships to scan the seabed for evidence of aircraft wreckage," the prime minister said.

The Australian government, in consultation with the Malaysian government, would be willing to engage one or more commercial companies to undertake the work, he said.

He said that would cost an estimated $60 million and Australia would seek contributions from other nations.

It will take some weeks to put in place the new contract arrangements for the underwater search.

In the meantime, teams of vessels from Australia, Malaysia and China will continue operations and an Australian aircraft will be on standby in case wreckage is found.

Mr Abbott said the new phase of the search will involve a "thorough" analysis of the probable impact zone - roughly 700km by 80km.

He reiterated Australia's pledge to do everything possible to find the plane.

"I want the families to know, I want the world to know, that Australia will not shirk its responsibilities in this area," the prime minister said.

"We will do everything we humanly can, everything we reasonably can, to solve this mystery."

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Gun, ammo in car 'a surprise to me': woman

A WOMAN charged with stealing guns from a prestigious Brisbane Catholic school insists she knows nothing about the weapons.

About 10 weapons, including rifles and shotguns, and a large amount of ammunition were stolen during a break-in at St Joseph's Nudgee College in Brisbane's north on Sunday night.

Police allegedly found one shotgun and most of the ammunition inside a car that was pulled over not long after.

Driver Cristle Ten-Bohmer (Cristle Ten-Bohmer), 27, and passenger Jason Francis Williams, 43, were arrested and charged with weapons and property offences.

"I didn't even know that the stuff was in my car," a tearful Ten-Bohmer said when she appeared in the dock at the Brisbane Magistrates Court on Monday.

"He (Williams) just rang me up and asked me to drive him."

Duty lawyer Rosemary Gilbert applied for Ten-Bohmer's bail and said her client had only met Williams a couple times and knew nothing about how the gun and ammunition came to be in her car.

Prosecutor Senior Sergeant Mark Gorton said the weapons were stolen from a secure bunker at the college's rifle range.

"The worrying thing is, if 10 guns went missing and we've only found one, there's nine guns on the street," he said.

Magistrate Christine Roney adjourned the bail application until later on Monday to allow Ten-Bohmer to be interviewed by police. Williams didn't apply for bail and his case was adjourned until Tuesday.

A spokeswoman for the college said the weapons were taken from a building that houses a student gun club, which has operated for more than 100 years.

The building is secure and regularly checked by the Queensland Weapons Licensing Branch, she said.

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Vic Premier to ask feds for help at COAG

MAJOR infrastructure funding and a greater share of GST revenue are Premier Denis Napthine's targets for the next Council of Australian Government (COAG) meeting in Canberra on Friday.

Dr Napthine said Victoria needs more support from the federal government.

"I will certainly be raising with the federal government the need for key infrastructure funding for Victoria that is improving transport efficiency, improving business productivity and delivering jobs for Victoria," he said.

"I will also be putting the case for Victoria to get a fairer share of the GST.

"We are being dudded under the current GST arrangements.

Last week, Victorian Treasurer Michael O'Brien blamed a cut in the state's GST revenue from 90 cents in the dollar to 88 cents in 2014-15 for a $32 hike in car registrations and an increase in vehicle stamp duty.

The extra charges would be used to fund major transport infrastructure in the May 6 state budget, he said.

Dr Napthine said he would also raise a recycling initiative at the COAG meeting.

"I will also be raising one of my pet topics, and that is the need for a national container deposit legislation approach."

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