Burmese illegal opium output still on rise

THE cultivation of illegal opium has increased in Burma for a sixth successive year, fuelled in part by rising demand for heroin across Asia, the United Nations says.

The upsurge comes despite a government campaign to eradicate the crop from the South-East Asian nation, which has won praise worldwide for taking major steps toward democratic reform after the long-ruling military junta ceded power last year.

Burma is the world's second-largest producer of opium after Afghanistan, accounting for about 25 per cent of global poppy production, according to the UN.

The rise in output of opium was documented in the latest annual survey by the UN Office on Drugs and Crime.

The report said farmland under opium cultivation rose by 17 per cent this year, up from about nearly 40,000 hectares in 2011 to 51,000ha in 2012.

Burma's illegal crop is farmed mostly in Kachin and Shan states. The two areas - along the country's borders with China, Thailand and Laos - have been plagued by fighting between insurgent groups and the army.

Poppy is highly lucrative for impoverished farmers in need of cash, and the fact it can fetch as much as 19 times that of rice poses a huge challenge to government efforts to eradicate it.

The estimated 690 tonnes produced in Burma in 2012 was valued at about $US359 million ($A348 million), the report said. That output was up from an estimated 610 tonnes last year.

"One probable factor behind the resurgence in opium production in South-East Asia is the demand for opiates, both locally and in the region in general," the report said.

The vast majority of consumers are in China, with opiate users in East Asia and the Pacific Ocean region accounting for about one-quarter of the world's total.

The Golden Triangle - the swath of South-East Asia where the borders of Burma, Thailand and Laos meet - produced more than half of the world's opium in 1990 and one-third in 1998.

A year later, Burma set out to become opium-free by 2014. That campaign had made considerable strides, but production has risen every year since 2006 as demand and prices grew.

The latest UN survey indicated the government had stepped up efforts to curtail output.

Citing government figures, the report said the government had eradicated poppies on about 24,000ha of land in 2012 compared with 7000ha the previous year.

The 236 per cent increase "is a significant increase on the area reported as eradicated in previous years".

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Boat people will sink budget surplus: Libs

THE federal government's predicted surplus will be blown by the cost of asylum seekers alone, the coalition says.

Immigration Minister Chris Bowen introduced two bills to parliament on Tuesday requesting appropriation of the money needed to implement the recommendations of the Houston expert panel on asylum seekers.

It comes at a cost of $1.67 billion in 2012/13 and includes $267 million to build regional asylum seeker processing centres in Nauru and Manus Island.

Opposition immigration spokesman Scott Morrison said before the mid-year economic and fiscal outlook the estimated cost of processing and accommodating asylum seekers was $4.97 billion.

"That figure today is up to $5.4 billion for this financial year and out over the forward estimates is $6.6 billion," Mr Morrison told parliament.

In the May budget the government had estimated 450 people a month would arrive in 2012/13.

That figure had blown out to 2,000 each month, Mr Morrison said.

The government has promised a $1.1 billion surplus next financial year but the opposition doesn't think it will achieve one.

"If the government wants to know where their surplus has gone when their surplus disappears, it sailed away on a boat," he said.

"The surplus has been offshore processed."

Based on the government's own policies, the 30-month average for boat arrivals was 713 people, Mr Morrison said.

"That's almost two thirds less than what we are seeing turn up every single month, this financial year."

Mr Bowen had his hands so deep in the taxpayers' pockets he could almost tie their shoelaces through their pants, Mr Morrison said.

But the coalition would support the bills despite how it felt about the policy failures of the government, he said.

In summing up, Mr Bowen said $668 million was needed bring the Nauru and Manus Island facilities up to scratch.

He said the government had always said this would be expensive and opposition claims about how simple it would be to reactivate Nauru were "patently false".

He also accused Liberal backbencher Luke Simpkins of peddling the falsehood that only Sri Lankans were being sent to Nauru.

Iraqis, Iranians Afghans and Pakistanis were also on the island, he said.

The two appropriation bills were passed without dissent and now go to the Senate.

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PM says UN does matter to Australia

PRIME Minister Julia Gillard says the United Nations does matter to Australia and now a local voice will be heard at the highest level.

After moving a motion of condolence over the death of Corporal Scott Smith in Afghanistan, Ms Gillard said Australia's election to a temporary seat on the UN security council showed the nation's standing at the UN was high and bilateral relationships were in good shape.

She said the UN was involved in Afghanistan and East Timor, where Australian troops were now deployed.

The UN was also dealing with some of the world's most intractable and difficult problems, including the nuclear programs of Iran and North Korea, efforts to halt fighting in Syria and the continuing fight against terrorism and extremism.

"So the UN does matter to Australia," Ms Gillard told parliament on Monday.

"And now a voice with an Australian accent will be heard at the table of security council. This is a result that all Australians can be proud of."

Ms Gillard paid tribute to everyone behind the successful bid, starting with former PM and foreign minister Kevin Rudd, his successor foreign ministers, diplomats and many others.

She also thanked Australia's AusAID workers, defence personnel and police.

"The reason our reputation is high in so many nations around the world is because they have gone there and with courage and endeavour. They have helped and I think this one is for them," she said.

Opposition Leader Tony Abbott said in any contest between Australia and other countries, the coalition was always on Australia's side.

"Australia's voice should be heard because of our values and we should always act in accordance with our values," he said.

Mr Abbott congratulated all those behind this successful bid.

"But it would be churlish of me not to give a special mention to the former prime minister, the former foreign minister Kevin Rudd whose original idea and inspiration it was and who did so much so indefatigably to bring it about," he said.

"This is a special day in the parliament for the former prime minister."

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Coalition's McKew stunt fails

AN attempt by the coalition to table a page of former Labor MP Maxine McKew's book in parliament has failed.

Deputy opposition leader Julie Bishop said Prime Minister Julia Gillard had repeatedly told parliament and elsewhere that she'd "always been" in favour of pricing carbon.

But a new book has cast doubt on Ms Gillard's version of events and called her commitment to the carbon tax into question.

The prime minister famously said before the 2010 election there would be no carbon tax under a government she led.

"How does the prime minister reconcile those statements with the revelation in Tales from the Political Trenches that she wrote to former prime minister Rudd in 2010 saying that she vehemently opposed fighting another election on introducing a price on carbon?" Ms Bishop asked on Monday.

Ms Gillard said she had dealt with the matters on the public record many times.

"I stand by my statements," she said.

"Isn't it interesting that here today we have the opposition with their tired, old fear campaigns, having a fiddle with the rear-vision mirror as they look backwards as we lead this nation to a future of opportunity and opportunity shared."

Ms Bishop sought to table page 173 of Ms McKew's book because it was a "credible and balanced account".

The move was not allowed.

"I think the author and the publishers might want people to buy it," Leader of the House Anthony Albanese said.

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Asia strategy needs joint effort: business

BUSINESS is calling for bipartisanship over the broad direction of the federal government's Asian century white paper, as Australia sets course to ramp up its engagement with Asia.

The Business Council of Australia (BCA) and Australian Chamber of Commerce and Industry (ACCI) said the challenge will be to implement the policies to fulfil the goals for 2025 of the white paper given the long time frame.

"There will be debate about the specific policy solutions to the challenges outlined in the white paper, but what is needed is bipartisanship on the broad direction," BCA head Jennifer Westacott said in a statement.

"Clearly the government must take the lead in adhering to and delivering on many of the policy commitments, but equally the business community plays a significant and critical leadership role."

ACCI chief Peter Anderson said governments, the federal opposition and the finance sector needed to follow through on goals to improve competitiveness, trade finance, Asian language and cultural learning.

"It sets the right ambition and points to more than enough economic, trade and social pathways for regional prosperity to keep both government and opposition away from the gender wars or partisan politics from now until the next election if they have enough will and discipline," he said.

But Mr Anderson said while the paper stated the "bleeding obvious", the federal government's response was a surprise packet of practical first measures.

"The exceptions are a failure to have saved the money to now afford what needs to be done, and lack of willingness to turn away from domestic policy errors that have eaten away at industry competitiveness like labour market re-regulation and the carbon tax," he said.

Accounting body CPA Australia was disappointed there was no provision in the white paper for a dedicated cabinet minister for the Asian century.

"Such a minister would enable more effective coordination at a policy and budgetary level and in doing so, ease the path to implementation," chief executive Alex Malley said.

Global law firm Baker & McKenzie said all Australian companies looking to grow their business - particularly in services such education, law, accounting and finance - need an Asian strategy.

"Building relationships at all levels is critical, from school children to business leaders and government," Australia managing partner Chris Freeland said in a statement.

"A better understanding of Asian cultures and languages, and building professional exchanges, is vital to better do business across this diverse region."

Meanwhile, National Farmers' Federation President Jock Laurie welcomed the paper's recognition of the opportunities for the agriculture sector in Asia.

"And it has recognised that to capitalise on this, greater investment is needed to boost output and research, adapt to regulatory change and build capacity," he said.

Educators also liked the skills and training thrust of the paper, saying Australian government must overhaul education funding and foreign student visa provisions.

Opposition foreign affairs spokeswoman Julie Bishop said there was nothing groundbreaking about the paper.

"I think it's a disappointing effort," she told Sky News.

Ms Bishop said the paper did contain some laudable goals.

"What's missing is the funding to back it up, or any detailed steps on how they would achieve some of the strategic visions," she said.

"There's nothing profound here, there's no insight beyond what governments are already doing."

Ms Bishop also commented on the paper's political nature.

"It's main theme seems to be that to prepare for the Asian century, we need to embrace Labor's current policies.

"I fear it's been re-written by a posse of Labor spin doctors."

Innes Willox, chief executive of Australian Industry Group, echoed the calls for both sides of politics to develop and implement a national Asia-competitive strategy.

He was disappointed a key ingredient of productive performance - workplace relations reform - was absent in the white paper.

"Yet more flexible workplace relations are critical to the realisation of productivity gains from other sources including education and training and innovation," Mr Willox said.

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Aust share market expected to open higher

THE Australian share market is expected to open higher on Monday despite lacklustre trading on Wall Street on Friday.

US markets closed mixed but were almost flat on Friday as investors weighed disappointing company earnings against a slightly better-than-expected estimate of US economic growth in the third quarter.

The Dow Jones Industrial Average closed 3.53 points, or 0.03 per cent, higher at 13,107.21 points.

The broader S&P 500 index dipped 1.03 points, or 0.07 per cent, to 1,411.94 points, and the Nasdaq Composite index added 1.83 points, or 0.06 per cent, to 2,987.95 points.

Company earnings were the main driver of the US market, with iPad maker Apple losing 0.9 per cent after missing expectations in its quarterly report.

Amazon bounced 6.9 per cent upwards despite posting a loss and cautious outlook for the holiday shopping season.

The first government estimate of third-quarter GDP (gross domestic product) growth in the US came in at 2.0 per cent, up from 1.3 per cent in the prior quarter but not enough to generate much optimism.

AMP Capital chief economist Shane Oliver said the US GDP data was okay but investors remained cautious in relation to corporate earnings.

"However, the failure of European and US shares to follow through with sharp falls as seen in several Asian share markets on Friday saw ASX (Australian Securities Exchange) futures gain 18 points or 0.4 per cent, suggesting a positive start to trade on Monday for the Australian share market after a 0.8 per cent fall on Friday," Dr Oliver said.

However, Dr Oliver said global share markets were in still in a correction/consolidation mode.

Given uncertainties regarding the US presidential election and the US economy, short-term earnings downgrades, unresolved issues in debt-ridden Europe and the Chinese leadership transition, the correction may have a bit further to run over the near term.

In Australia this week, the season for company annual general meetings continues, with the Bendigo and Adelaide Bank AGM on Monday; Commonwealth Bank, Crown and Flight Centre on Tuesday; Consolidated Media Holdings, JB Hi-Fi and Tabcorp Holdings on Wednesday; Boral, Perpetual, Transfield Services and Whitehaven Coal on Thursday; and Qantas on Friday.

On Wednesday, National Australia Bank releases its full-year profit results.

On the economic front, the Australian Bureau of Statistics releases data on building approvals for September, on Wednesday.

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Minister sick, not on holiday: Govt

THE Queensland government says Arts Minister Ros Bates is sick and not trying to avoid questions about her son.

Ms Bates, whose son Ben Gommers is linked to a senior public servant under investigation, took last-minute leave on Friday, according to the state opposition.

It's understood she will miss parliament next week and the opposition has accused Ms Bates of trying to avoid its questions.

But Queensland Treasurer Tim Nicholls says the arts minister is ill.

"Minister Bates has taken leave, which was approved by the premier, on the basis of advice from her surgeon that she is unable to work following an operation," Mr Nicholls said in a statement to AAP.

The opposition would not be allowed to question Ms Bates on the subject anyway because the matter was before the Ethics Committee, he added.

Opposition Leader Annastacia Palaszczuk said Ms Bates was well enough to attend budget estimates hearings last week.

"If she can appear at estimates and sit there for hours on end, answering questions, then why can't the minister be there (next week)?" she told reporters in Brisbane on Saturday.

Mr Gommers is linked to Department of Transport Director-General Michael Caltabiano, who is being investigated over whether he misled a parliamentary committee after telling a budget estimates hearing his relationship with Mr Gommers was strictly personal.

The state government ordered an investigation after media reports found apparent evidence Mr Caltabiano had worked with Mr Gommers on the register of lobbying firm Entre Vous.

Mr Caltabiano, who was hand-picked for the transport job by the premier, stood down on Thursday on full pay.

Mr Gommers himself is currently the subject of a Crime and Misconduct Commission investigation into his employment with Mr Caltabiano's department.

Ms Palaszczuk has called for Premier Campbell Newman to sack Ms Bates if she doesn't front parliament next week.

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Asylum boat 'hijackers' sent back

FOURTEEN asylum seekers who allegedly hijacked a ship off the Sri Lankan coast in a bid to reach Australia have been found and sent home, the Department of Immigration says.

The group of Sri Lankan nationals was detected and intercepted northwest of the Cocos Islands by Australian authorities late on Thursday.

There were 15 people on board the vessel Chejan, which was involved in the allegedly hijacking incident on October 13.

Fourteen of them were returned to Sri Lanka from the Cocos Islands on a charter flight on Saturday afternoon.

One of the boat people could not be sent home on Saturday, but the department has indicated he will be deported in coming days.

The Sri Lankans held no visas and made no claims for protection, nor did they raise any issues that engaged Australia's international obligations, the department said.

The boat had been missing until it was intercepted late on Thursday north-west of the Cocos Islands by ACV Hervey Bay.

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Man accused of organising hit on wife

A MAN accused of trying to hire someone to kill his estranged wife in northern Tasmania is facing a conspiracy to murder charge.

Darryl Scott Donohue, 41, entered no plea to the charge in Launceston Magistrates Court but pleaded not guilty to another charge of stalking.

Police say a family violence order was in place after the couple split around six months ago.

"Part of his plans were he was attempting to engage a person to murder his wife," Launceston's Sergeant Darren Hill told AAP.

Sergeant Hill said no-one else was facing charges.

He said trying to hire someone to perform a "hit" was unusual in Tasmania.

"There's nothing that we could hang our hat on, that we have Underbelly-style hitmen sitting waiting for the phone to ring," he said.

"I've been in this job since 1985 and I've never received any indications that we have guns for hire."

Donohue was arrested on Wednesday and will reappear in court on October 31.

AAP d

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Qld govt to celebrate boat arrivals

QUEENSLAND'S conservative government wants to celebrate people who have arrived in Australia by boat.

But not the kind of boat arrivals some want to turn back, or have processed on Manus Island or Nauru.

Queensland's Liberal National Party government plans to chronicle the stories of migrants who came to the state by boat during what it called the golden age of sea travel.

Multicultural Affairs Glen Elmes says migrants who came by boat helped shape Queensland's social and economic profile.

He's urged them to share their stories and enrich the state's historical records.

"The initiative will shed light on Queensland's fascinating seaboard migration history, and its positive impact on our state's diverse cultural heritage," he said in a statement.

"It will let us share our stories and view our rich collection of artefacts, records and sites that tell of our rich migration heritage."

The Voyage of a Million Questions initiative takes its name from a 1959 voyage that brought 437 British migrants to Queensland.

"The journey was dubbed 'the voyage of a million questions' because passengers reportedly inundated the ship's crew and immigration officers with questions about their home-to-be," Mr Elmes said.

"Some of the recorded questions were: How do you say Mooloolaba? What is a wombat? Is Surfers Paradise a real paradise?"

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