Growth expectations hit 3-year low

EXPECTATIONS for Australia's economic growth have slumped to a three-year low, weighed down by a tumble in consumer confidence following the federal budget.

The Westpac/Melbourne Institute Leading Index fell sharply in May, pointing to a significant loss of momentum in economic growth.

Westpac senior economist Matthew Hassan said it was concerning that all components of the index - including measures of consumer confidence, employment, commodity prices, and US industrial production - contributed to the fall.

"The fact that the slowdown is corroborated across all components is a strong indication that a genuine slowdown is underway," Mr Hassan said.

The index, which indicates the likely pace of economic activity three to nine months into the future, fell to -1.16 per cent in April from 0.03 per cent in March.

It was the weakest reading since late 2011, when the Reserve Bank of Australia began cutting rates, consumer confidence had slumped heavily and Europe's sovereign debt crisis was in full swing.

Mr Hassan said the decline was linked to a sharp fall in consumer confidence after the federal budget, which outlined a raft of tough spending cuts.

A drop in commodity prices, such as iron ore, and slowing growth in US industrial production also took a toll.

Some of the factors dragging the index down could be temporary, Mr Hassan said.

"The post-budget fall in consumer sentiment may be something that reverses and US industrial production was probably affected by weather conditions earlier this year," Mr Hassan said.

"But even allowing for those, the fact that we are getting the same consistent signal across the components does suggest there is an underlying slowing in momentum happening."

The slowdown was occurring against a backdrop of weaker global growth in 2014, he said.

Falling commodity prices reflected weaker demand from China, while the tough budget and a cooling of the housing market were also having an impact.

The sharp loss of momentum in the index would encourage the RBA to maintain its 'on hold' stance on interest rates, Mr Hassan said.

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NSW hikers survived huddled under a rock

A SYDNEY couple in their 60s has survived a freezing night in the Snowy Mountains by huddling together under a large rock.

With the weather deteriorating, police had grave fears for the 62-year-old woman and 65-year-old man, who left Thredbo village on Tuesday morning to go bushwalking.

The woman called triple zero just before 3pm on Tuesday, saying they were lost.

Although overnight temperatures at the mountaintop plunged to -16C, the pair walked back to Thredbo village and arrived just before 9am on Wednesday.

"They were fit and well, remarkably, considering the weather they endured," Superintendent Rod Smith told AAP.

"Including windchill, it got down to -16C, winds up to 100km/h, heavy rain and snow on the peaks - it doesn't get much worse than that," he said.

The couple, from Sydney's inner west, were able to find shelter under a large rock among trees out of the weather.

They were resting in their lodge on Wednesday afternoon.

Bushwalkers have been reminded to take precautions at this time of year because the weather in alpine regions can turn quickly.

"We were here this time last year under similar circumstances, and unfortunately haven't found (the bushwalker) from last year," Supt Smith said.

Canadian student Prabhdeep Srawn, 25, went missing in the Snowy Mountains in May 2013.

He was last seen at Charlotte Pass village on May 13, 2013, before heading off on a bushwalk to Mt Kosciuszko.

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Vic mine 'told not to expect CFA help'

The operators of the Hazelwood mine didn't see models showing it could be threatened by bushfires. Source: AAP

MINE workers were told not to expect help from the Country Fire Authority as they prepared to battle a blaze in a Victorian coal mine, an inquiry has heard.

The Hazelwood mine's services superintendent David Shanahan said he saw no CFA presence at the mine as he recorded smouldering and flames on February 9, apart from one fixed-wing aircraft that dropped retardant on the site.

He told an inquiry into the 45-day blaze that non-essential sprinklers were turned off in disused areas of the mine so water could be conserved to protect the mine's critical infrastructure.

After noticing a blaze on the mine's disused northern batters [sloping mine walls], he attempted to create a "protective wall of water" by spraying the area, before attending a meeting where he said it was discussed that the CFA had not responded.

"It was mentioned, don't expect to see a lot of support given the priorities the CFA had on them at the time," Mr Shanahan said on Tuesday.

"We were still waiting to get response from the CFA.

"We knew they had some bigger issues with defending the town of Morwell."

He said someone at the meeting had had contact with the CFA but he didn't know who.

Counsel assisting the inquiry Peter Rozen read a statement from Mr Shanahan on the lack of CFA presence.

"You say that you didn't see any CFA personnel in or around the incident control centre at that time and up until this point did not see any CFA trucks within the mine throughout the entire afternoon," Mr Rozen said.

Mr Shanahan said this was correct.

He said resources had initially been diverted away from the disused northern batters, which is where the fire took hold.

"There was a decision made to turn off some of the area that didn't impact the assets," Mr Shanahan said.

"The decision was made with the limited number of people still available. I went across there myself and turned off some of those unnecessary sprays to try and get more water into the critical infrastructure areas."

Mr Shanahan had been in his job barely a week when the fire broke out in the mine.

The inquiry earlier heard mine operators were not given access to state government modelling that showed the mine could come under threat from two nearby bushfires.

The fire in a disused section of the Hazelwood mine burned for 45 days from February 9 and shrouded the nearby town of Morwell in smoke and ash for weeks, forcing some residents to leave.

The inquiry continues.

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Rogerson treated like a dog: lawyer

ROGER Rogerson's lawyer says the disgraced former policeman has been "treated like a dog" after being forcibly taken from his Sydney home for questioning over the alleged murder of university student Jamie Gao.

"We're back to the Gestapo days now," a handcuffed Rogerson said as he was escorted by detectives through a media scrum outside his home in Sydney's southwest.

He was taken to Bankstown police station where he was later joined by his lawyer Paul Kenny.

Detective Inspector Mick Sheehy and Detective Inspector Russell Oxford, who were unable to track down Rogerson in Queensland on Monday, also arrived at the police station.

Rogerson was meeting with Mr Kenny on Tuesday morning when police swooped, banging on his door and surrounding his Padstow Heights home.

Mr Kenny said he would be calling NSW Police Commissioner Andrew Scipione to complain about his client's treatment.

"He was treated like a dog. I've never seen conduct like this by NSW police," Mr Kenny said.

"This is like something off a TV show, but a bad TV show."

Mr Kenny said Rogerson, 73, was just about to head off to a meeting with police when the officers arrived.

"Police starting smashing at the door and a number of them came into Mr Rogerson's office where we were having a legal conference to make arrangements to go into the city," he said.

"I was just about to call Superintendent (Luke) Moore to let him know we were on our way."

Mr Kenny said Rogerson would be defending any possible charges.

"It was just very distressing and disturbing ... just the way they spoke to Mr Rogerson, it's most unnecessary," he said.

But NSW Police said in a statement that they were not satisfied with Rogerson's arrangements and decided to arrest him.

Fellow former Sydney detective and self-titled whistleblower Glen McNamara was charged on Monday with Gao's murder.

Police allege Mr Gao was killed last Tuesday after a drug deal went wrong.

Mr Kenny said earlier on Tuesday said that Rogerson was shocked at being linked to the murder.

He also appealed for calm, telling journalists Rogerson wanted to avoid any media hysteria.

"We don't want any OJ Simpson situation," he said.

Rogerson is one of the most infamous policemen in NSW history.

The highly-decorated detective was dismissed from the force in 1986 before being convicted of conspiring to pervert the course of justice.

His police career was later depicted in the ABC drama series Blue Murder.

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Man burned in Sydney shop fire

A MAN has serious burns after a large fire broke out in a busy northern Sydney shopping plaza.

The fire was started after a gas main caught alight on Monday afternoon at the front of a shop in Lane Cove, Ian Krimmer from NSW Fire and Rescue said.

A man in his early 20s suffered serious burns to his lower body and was taken to Royal North Shore Hospital, an ambulance spokesman told AAP.

Six fire crews are battling the blaze and working to move people out of nearby shops.

There are concerns the fire could spread to the adjoining shops.

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NSW to build artificial reefs in Sydney

TWO artificial reefs will be built off the coast of Port Botany in southern Sydney to boost recreational fish numbers.

The NSW government will spend more than $2 million on establishing the reefs in a move that's been described as great news for anglers.

The reefs are expected to attract popular recreational fish such as snapper, kingfish and morwong.

"The proposed reefs will complement a number of existing estuarine artificial reefs within Botany Bay, adding to its reputation as a haven for recreational fishing," NSW Minister for Primary Industries Katrina Hodgkinson said on Monday.

The reefs will be constructed using at least 60 concrete modules, three to five metres high, and will be lowered 40m to the sea floor.

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Six Aussies arrested over illegal gambling

Six Australians have reportedly been arrested in Thailand over an illegal gambling operation. Source: AAP

SIX Australians and a New Zealander have reportedly been arrested in Thailand over an illegal gambling operation.

Police used an undercover informant to place bets at the Ned Kelly Bar at Valentine's Guest House in Pattaya on May 10, the Pattaya Mail reported.

The bets were made on Australian horse races broadcast over the internet onto large-screen televisions.

Police raided the bar this month and arrested New Zealander Philip Smith, 59, who is allegedly the operator, and six Australians.

Smith told police he had been accepting bets and paying according to the website rate, while receiving a commission, for a long time.

The bar's Thai owner escaped.

The majority of gambling is illegal in Thailand.

The arrests come eight months after police and officials arrested 12 Australians and four Britons on charges of betting on Australian horse races.

The Thai military took control of the government in a coup on Thursday following the imposition of martial law across the country earlier in the week.

Australia's Department of Foreign Affairs and Trade said there had been no requests for consular assistance following the latest reported arrests.

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Australian snorkeller dies off Fiji resort

A 36-year-old Australian man has died while snorkelling off Fiji's coral coast. Source: AAP

A 36-YEAR-OLD Australian man has died while snorkelling off Fiji's coral coast.

The man was staying with a friend at a five-star resort on the west coast of the main island Viti Levu when he went snorkelling alone on Saturday.

He was reported missing by the resort, Outrigger on the Lagoon Fiji, about 7.45pm when he hadn't returned his snorkelling equipment and his belongings were found on the beach.

"The person in question was snorkelling late in the evening and did not return to his accommodation," general manager Peter Hopgood said.

Resort staff and local fishermen searched until after midnight and were back out again at first light on Sunday.

The man's body was found by locals from a neighbouring village at 9.50am on Sunday, washed onto the coral reef.

His body was taken to a morgue at nearby Sigatoka.

The resort said it was working closely with local authorities while the Australian High Commission was in the process of communicating with the dead man's family.

It extended "heartfelt condolences" to the man's family and friends.

In a letter to guests, it asked them to "refrain from entering the ocean after dark".

Australian authorities had little to add.

"The department is aware of the death of a 36-year-old Australian man in Fiji," said a spokesperson for the Department of Foreign Affairs and Trade in Canberra.

It's the second death of an Australian in Fiji this month.

Ten days ago, Sydney father-of-three Mark Hardaker, 40, was killed in a collision between two boats while holidaying with his family.

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Toronto mayor in rehab: Canadian clinic

A Canadian rehab facility has confirmed it's treating Toronto Mayor Rob Ford for substance abuse. Source: AAP

A REHAB facility in a small Ontario town has confirmed that Toronto Mayor Rob Ford is undergoing treatment at its clinic.

GreenStone Clinic Muskoka in Bala, Ontario, said Ford consented to having the facility confirm his stay.

Ford announced late last month that he was seeking treatment for an alcohol problem after a new video surfaced that appeared to show Ford smoking a crack pipe late last month.

It was the latest twist in the ongoing saga of Ford, whose notorious and frequently filmed behaviour led the city council to strip him of most of his powers after he admitted last year that he had smoked crack in a "drunken stupor" and was depicted on video threatening to "murder" someone.

There was speculation about whether the embattled mayor of Canada's largest city was in rehab after he was spotted taking photos with residents of a small town neighbouring Bala last week.

A few days later, the mayor's car was impounded after a Muskoka resident was arrested behind the wheel and charged with impaired driving.

Last week marked a year since a video emerged that appeared to show the mayor smoking crack cocaine.

Months later, Ford admitted to trying the drug while drunk and to using drugs while in office.

In another videotaped incident the mayor used obscene Jamaican slang words and criticised Toronto's chief of police.

The Globe and Mail said last month a drug dealer had shown two of its reporters video of Ford allegedly smoking what was said to be crack in the basement of his sister's home.

The paper said it paid $US10,000 ($A10,820) for frame grabs showing Ford holding a copper pipe.

The Toronto Star also published details of "two nights of utter debauchery" involving Ford at a Toronto nightclub.

Despite Ford's ongoing erratic behaviour, he says he's running for re-election in October.

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Budget will pass eventually: PM

Tony Abbott says he won't compromise on his budget as pressure mounts from all sides. Source: AAP

PRIME Minister Tony Abbott says he won't surrender his budget in the face of pressure to compromise over its most unpopular measures.

Mr Abbott is confident the coalition's first budget will pass the Senate because the alternative would be a double dissolution election.

Senior government ministers have signalled compromising on key budget reforms such as higher education interest rates and the GP co-payment, amidst a fierce public backlash and a hostile Senate.

Continuing the budget sell on Saturday, Mr Abbott said his team "absolutely" understood the "iron necessity" of sticking with difficult and unpopular budget measures.

"We are not going to surrender our budget commitments," Mr Abbott told reporters in Adelaide.

But negotiations were inevitable.

"You have got to negotiate your legislation through the parliament," he said.

Mr Abbott was confident that the government would get the budget through the Senate in the end, because the alternative would be a double dissolution election.

"Because let's face it, there have been many governments over many years that have had to negotiate budgets through the Senate.

"The only time that wasn't successfully done ... that was a different bill in 1975."

Last week, Mr Abbott appeared to back away from a threat to hold a double dissolution election after earlier signalling incoming Senate cross-benchers would be unlikely to keep their seats if there was a new election.

Labor, the Greens and Palmer United Party have vowed to block changes such as the Medicare co-payment and pension cuts.

Education Minister Christopher Pyne, who has faced a slew of student protests this week over university deregulation measures, has signalled compromising on some reforms.

He said it was in recognition the government did not have a majority in the upper house.

"We will of course seek to consult and negotiate with the minor parties and the crossbenches to ensure these important reforms are delivered," Mr Pyne said in a statement to AAP.

The industry is also being consulted to "refine the details" of the changes, with two higher education stakeholder working groups providing feedback.

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