Ban Ki-moon arrives in China for talks

UNITED Nations Secretary-General Ban Ki-moon has arrived in Beijing for high-level talks with Chinese officials on North Korea, Syria and other issues, his spokesman says.

Ban will meet Chinese President Xi Jinping, Premier Li Keqiang and senior foreign policy officials during his stay, spokesman Martin Nesirky said.

Ban "expects to discuss a wide range of matters pertaining to peace and security, such as the situation on the Korean Peninsula, Mali and Syria," Nesirky said in an e-mail to AFP.

Ban will also meet China's Foreign Minister Wang Yi and Cabinet member Yang Jiechi, Foreign Ministry spokesman Hua Chunying confirmed on Tuesday.

"The two sides will exchange views over international and internal issues of common interest," she said.

"China's position on the Korean peninsula nuclear issue is consistent and clear," Hua said.

"China is committed to peace and stability on the Korean peninsula, as well as the settlement of the issue through dialogue and consultation."

US President Barack Obama said China was taking a tougher line against North Korea's nuclear program as he credited new president Xi with taking more responsibility in the world.

UN diplomats also said that the worsening Syrian conflict and North Korea would top Ban's list of discussion topics in Beijing.

"Ban has taken a hard line on Syria, where China has sided with Russia. But North Korea is also an urgent problem for everyone," a UN Security Council diplomat, who spoke on condition of anonymity, told AFP.

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Port to go, NSW public sector to tighten

NSW Treasurer Mike Baird says his budget will show a continuation of efforts to manage expenses. Source: AAP

THE world's largest port in Newcastle will be sold off by the NSW government as part of Treasurer Mike Baird's mostly prudent budget that included only a handful of nasties.

There are fears more public servants will lose their jobs as the beleaguered sector struggles to find another $750 million in savings over the next two years.

The government is also stepping up efforts to chase people over unpaid fines while doctors say a 5.2 per cent increase in health funding isn't enough to meet growing demand.

But the big announcement is that the government will sell off the state's last major port with the privatisation of the facility in Newcastle.

The 99-year lease is expected to net the government up to $700 million, half of which will be returned to the growth city north of Sydney to give it a light rail network.

The treasurer says his third budget "consolidates two years of tough decisions, two years of reform, two years of stringent expense control".

The government is estimating a smaller than expected deficit of $329 million for 2013/14, bouncing back into the black the following year by $829 million.

The figures, however, change when estimated under new accounting methods that bring NSW into line with global standards.

The new accounting standards have a return to surplus not happening until 2015/16 and a deficit of $1.89 billion for 2013/14.

The government says marketing and rating agencies will "look through that" as there is no actual change in the state's cash or debt position.

It follows years of savage cutbacks to rein in government expenditure, including an unpopular public sector wages cap and the reform of the police death and disability scheme.

And even though Mr Baird says his "tough decisions are beginning to bear fruit", the pain isn't over.

Public servants appear to have been spared the big job cuts of previous years but the treasurer has conceded more could come over the next 12 months.

"There's no number ... I am open at every opportunity to make the public sector more efficient."

The efficiency dividend and wages cap imposed on the sector is expected to net the government almost $19 billion in the six years to 2016/17.

On the plus side, 1300 businesses will be spared from paying from payroll tax next year while $302 million will speed up new home building.

A massive $60 billion will be ploughed into new roads, rail, hospitals and schools over the next four years as the government rolls out the largest urban road project and largest rail project in the country.

Unions are urging the government not to ship the promised infrastructure in from overseas in flat packs while the opposition claims families will bear the brunt of the budget's cuts to hospital resources and frontline services, despite rising revenues.

Mr Baird hailed his budget for slowing expense growth, accelerating spending on infrastructure and reducing net debt - "an extraordinary trifecta in the light of the challenges we face".

NSW Premier Barry O'Farrell told parliament the government was "living within its means".

Shadow Minister for Education and Training, Carmel Tebbutt, said the "disappointing" budget had reduced education spending from 22.4 to 21 per cent.

"Axing the jobs of another 315 high school staff is the worst possible strategy when we are meant to be promoting greater Year 12 retention," she said in a statement.

She said the budget for school infrastructure remained at the same level as 10 years ago, despite higher enrolments and the need to upgrade physical assets.

Meanwhile, Greens MP and spokeswoman on Family and Community Services, Jan Barham, said the homeless had been neglected in the budget, which had been an opportunity to deliver much-needed increases for services that support disadvantaged and vulnerable groups.

"Keeping families safe and together and ensuring they have a stable home are fundamental aims that needed more investment than this Budget delivered," Ms Barham said in a statement.

The NSW Teachers Federation welcomed confirmation that the Gonski schools agreement would be funded over the next six years, but was unhappy that tertiary students would suffer as a result.

"The Gonski agreement will provide significantly increased funding to public schools and distribute it more fairly to the students who need it the most," said Teachers Federation President, Maurie Mulheron.

"It is bitterly disappointing, however, that TAFE colleges will continue to suffer funding cuts and students face increased course fees to offset the costs of the Gonski agreement."

Mr Mulheron said the government should be looking to raise revenues through taxation reform and other measures, rather than cutting public services.

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Australia on notice to protect reef

UNESCO has postponed a decision on whether to list Australia's Great Barrier Reef as "in danger". Source: AAP

THE Great Barrier Reef will be listed as an "in danger" World Heritage site next year if new developments along the Queensland coast aren't restricted.

The World Heritage Committee has told Australia it must present a plan on how to protect the reef from increasing coal and gas extraction and shipping.

If improvements aren't made the reef could be listed as "in danger" when the committee meets in June next year.

Although Australia has made some progress, "some issues still need to be addressed more forcefully", Marc Patry, program specialist at the UNESCO World Heritage Centre, said at its meeting in Cambodia on Tuesday.

WWF Great Barrier Reef spokesman Richard Leck, who attended the committee meeting, says the state and federal governments have been put on notice.

"They have 12 months to take these recommendations seriously or risk the Great Barrier Reef being listed on the World Heritage list of shame," he said.

The committee also had some good news, noting Australia's commitment to improving water quality.

Both Federal Environment Minister Tony Burke and Queensland Environment Andrew Powell welcomed the decision.

"I am pleased that the final report takes into account more recent commitments by the government to safeguard the reef," Mr Burke said.

This includes a further $200 million for the next stage of the Reef Rescue program and continued scientific research to protect the reef, he said.

Mr Powell said the state government had worked hard over the past year to address concerns raised by the UN's environmental arm.

This includes scaling back plans for a multi-cargo port at Abbott Point near Bowen, improving water quality and reducing nutrient run off from farms.

However, environmental groups say more needs to be done.

"The committee is essentially saying: 'things aren't good enough, you have to do better'," Felicity Wishart, from the Australian Marine Conservation Society, said.

"We're still seeing the Queensland government fast tracking developments and we're still seeing the Australian government failing to stop that."

Greenpeace says the proposed dredging of three million cubic metres of sand to expand Abbott Point must be stopped to protect the reef.

"This is exactly the kind of destructive development that has the world worried about the future of the Great Barrier Reef," spokeswoman Louise Matthiesson said.

A study led by the Australian Institute of Marine Science last year found that between 1985 and 2012 the reef had lost half of its coral cover.

The main culprits were tropical cyclones, crown-of-thorns starfish and coral bleaching.

An in-danger listing for the reef would admit Australia to an undesirable club that includes the likes of the Democratic Republic of Congo, which has all five of its World Heritage sites on the danger list.

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Australian soldier hurt in chopper landing

An Australian soldier has been injured in a Black Hawk helicopter landing in Afghanistan. Source: AAP

AN Australian soldier has been injured in Afghanistan after a Black Hawk helicopter slammed to the ground.

The unnamed special operations member was one of five Australians on board when the helicopter made a "hard landing" 55kms east of Tarin Kowt on June 11, the Defence Department has reported.

The aircraft was not engaged in combat leading up to the crash.

On return to base, the crew was assessed with one soldier found to be suffering concussion.

"While the wounding doesn't appear to be of a serious nature, all precautionary measures are taken before soldiers are returned to duty," said the soldier's commanding officer in a statement.

All other Australian personnel travelling in the helicopter have since returned to duty.

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Boston suspect's widow hires lawyer

The row over where to bury a suspected Boston bomber has escalated as more cities reject the idea. Source: AAP

AS the quest to find a resting place for the body of Boston Marathon bombing suspect Tamerlan Tsarnaev drags on, his widow continues to face questions from federal authorities and has hired a criminal lawyer with experience defending terrorism cases.

Katherine Russell has added New York lawyer Joshua Dratel to her legal team, her lawyer Amato DeLuca said.

Dratel has represented a number of terrorism suspects in federal courts and military commissions, including Guantanamo Bay, Cuba, detainee David Hicks, who attended an al-Qaeda-linked training camp in Afghanistan.

Dratel's "unique, specialised experience" will help ensure that Russell "can assist in the ongoing investigation in the most constructive way possible," DeLuca said in a written statement.

He said Russell, who has not been charged with any crime, will continue to meet with investigators as "part of a series of meetings over many hours where she has answered questions".

An FBI spokeswoman wouldn't comment when asked whether Russell is co-operating. DeLuca has said Russell had no reason to suspect her husband and his brother in the deadly April 15 bombing.

Tamerlan Tsarnaev and Dzhokhar Tsarnaev, ethnic Chechen brothers from southern Russia living in Massachusetts, are accused of planting two shrapnel-packed pressure-cooker bombs near the marathon finish line, killing three people and injuring about 260.

Dzhokhar, who was captured hiding in a tarp-covered boat outside a house in a Boston suburb, was charged with using a weapon of mass destruction to kill. Their mother says charges against them are lies.

Tamerlan Tsarnaev was killed in a getaway attempt after a gun battle with police and no burial place has been found for him yet.

His body was released by the state medical examiner on May 1 and has been in limbo since.

In Washington, the first in a series of hearings was planned on Thursday to review government's initial response to the bombing, what information authorities received about the brothers before the bombings and whether they handled it correctly.

The hearing on Capitol Hill comes less than three weeks after Dzhokhar Tsarnaev's arrest.

The FBI and CIA separately received vague warnings from Russia's government in 2011 that Tamerlan Tsarnaev and his mother were religious militants.

Russell, Tamerlan Tsarnaev's wife, had wanted his body turned over to his side of the family, which claimed it.

Nineteen days after his death, cemeteries still refused to take his remains and government officials deflected questions about where he could be buried.

On Wednesday, police in Worcester, west of Boston, pleaded for a resolution, saying they were spending tens of thousands of dollars to protect the funeral home where his body is being kept amid protests.

"We are not barbarians," Police Chief Gary Gemme said.

"We bury the dead."

Peter Stefan, whose funeral home accepted Tsarnaev's body last week, said on Tuesday that none of the 120 offers of graves from the US and Canada has worked out because officials in those cities and towns don't want the body.

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East West Link is a con: Vic opposition

The Victorian treasurer says the government won't fund the entire cost of the East West Link road. Source: AAP

VICTORIANS won't be able to use the East West Link tunnel to drive to work for decades, the opposition says.

The state government has pledged almost $300 million for the $6-8 billion East West Link and says the federal government could jeopardise the project if it refuses to contribute $1.5 billion to the toll road.

In his budget reply speech, shadow treasurer Tim Pallas said the government's 2013/14 budget was based on funding of less than four per cent for a toll road.

"Let me tell you something: you don't drive to work on a procurement plan," Mr Pallas told parliament on Thursday.

"And that's all this is - that's the big con in this heartless budget."

Mr Pallas ridiculed the government's plan for the road saying at this rate Victorians won't be able to use the link until 2067.

"That's five years after the Jetsons perfected flying cars," he said.

Mr Pallas said Labor believed in a reliable health system and a strong education system.

Treasurer Michael O'Brien continued to spruik the budget on Thursday, saying the state won't fund the entire cost of the road link because it cannot afford to lose its AAA credit rating.

He said if the state lost its AAA rating, it would increase the cost of borrowing money for other projects and would mean less money is available for yearly spending.

"If it's the old argument of, you've got AAA rating so why don't you borrow your head off, well the fact is if you borrow your head off you won't keep your AAA rating," he told ABC radio.

"And we need to keep that AAA rating because otherwise the interest costs we will be paying on our borrowings will be much higher."

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Abbott commits to NSW tunnel

Opposition Leader Tony Abbott has committed to funding a NSW tunnel from the F3 to the M2 motorway. Source: AAP

INFRASTRUCTURE looks set to become a key issue in the lead-up to the September poll after both sides of federal politics made solid commitments to fund a vital tunnel link for Sydney.

The NSW government is close to striking a deal with federal Labor on funding for the eight-kilometre project linking NSW's F3 and M2 motorways.

Under the plan, both levels of government would invest up to $400 million, with construction to start as early as next year.

The rest of the $3 billion needed would be provided by a private company that would recoup funds through a toll.

Infrastructure Minister Anthony Albanese said it was the "missing link" in the city's road network.

"There's no doubt that this is an important road for Sydney and it's important that infrastructure development be progressed in terms of dealing with traffic congestion in Sydney."

Mr Albanese is set to meet with Mr Gay this week, who said discussions had so far been "friendly and we're close but we're not there yet".

NSW Treasurer Mike Baird said it was important not to overcommit the state, while Premier Barry O'Farrell refused to be drawn on whether Transurban wanted to increase the toll on the M7 to pay for the new road.

"I've always believed that those people who enjoy the benefit of a toll road are the people who should pay the toll," he said.

Federal central coast MP Craig Thomson earlier told AAP that cash for the tunnel would be included in next Tuesday's budget.

"It's something commuters on the central coast have been looking forward to for some time," said the Labor-turned-independent member for Dobell.

Mr Abbott weighed into the matter, saying his government was committed to the four-year project, which involves a tunnel from the F3 near Hornsby under Pennant Hills Road to the M2.

"We will get this link built," he said.

"(It) will mean shorter travel times, reduced congestion and safer roads.

"It also means reduced freight costs for all trucks that use this important national road corridor."

Mr Abbott said he would release the full details of the funding commitment prior to the next election.

Infrastructure Partnerships Australia chief executive Brendan Lyon said it welcomed a consensus in Canberra that would put real funding on the table.

"The matching commitments also point to infrastructure being a key federal election issue, with voters increasingly frustrated by congestion and other symptoms of the nation's infrastructure ills," he said.

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Sony posts first annual profit in years

STRUGGLING Japanese electronics giant Sony says it has booked its first annual net profit in five years, offering a glimmer of hope for the former market leader.

But Sony's jump back into the black was largely due to fluctuations in the value of the yen and gains from a string of asset sales - including unloading its Manhattan office building for more than $A988.19 million - while its television and electronics business continues to struggle.

After Sony published its latest earnings on Thursday, the firm's chief financial officer Masaru Kato said years of losses had left management with one mission: "We were determined to report a profit no matter what."

Earlier this month, the firm said dozens of senior executives including chief executive Kazuo Hirai, who was appointed last year, would forego their annual bonuses to atone for a slump in Sony's electronics unit.

The decision came after the maker of PlayStation game consoles and Bravia televisions launched a massive corporate overhaul to stem losses. Thousands of jobs were cut and assets were sold.

"Sony has taken some drastic streamlining measures under new management," said Nomura Securities analyst Shiro Mikoshiba.

"Now the focus is on whether it can generate more profits."

Japan's electronics sector has suffered myriad problems including slowing demand in key export markets, fierce competition from lower-cost overseas rivals, a strong yen, and strategic mistakes that left its finances in ruins.

But a tumble in the yen in recent months - losing about a fifth of its value against the dollar since November - has helped Japan's exporters, making their products more competitive overseas and boosting the value of repatriated foreign income, inflating their bottom line.

Sony said the weaker yen boosted results in its film division, as demand for its digital cameras, video cameras and televisions remained weak, although Sony's CFO said he expected the TV business to turn a profit in the current fiscal year.

Japanese firms - including Sony rivals Sharp and Panasonic which report their full-year results over the next week - have struggled in the low-margin TV business where foreign rivals have proved tough competition.

On Thursday, Sony said it earned Y43.03 billion ($A429.21 million) for the fiscal year to March, reversing a 456.66 billion yen loss a year earlier.

Sales in the period were 6.8 trillion yen, up 4.7 per cent on-year, Sony said, adding that it expected to post a net profit of 50 billion yen in the current fiscal year to March 2014 on sales of 7.5 trillion yen.

Sony's expected revenue in the current fiscal year was "primarily due to the depreciation of the yen and an increase in sales in the electronics businesses," it said.

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Nathan Tinkler faces fresh legal action

Liquidators have begun legal action against Nathan Tinkler and the directors of Mulsanne Resources. Source: AAP

LIQUIDATORS and a major creditor have begun legal action against Nathan Tinkler and the directors of Mulsanne Resources over allegations of insolvent trading and breaching their duties.

The action was launched over a share placement agreement that was approved by Mulsanne Resources' shareholders at a general meeting on July 12 last year.

In February, Mr Tinkler faced two days of questioning in a NSW Supreme Court examination of his personal finances by liquidators for Mulsanne Resources.

Mulsanne was wound up over a $28.4 million debt.

The chief creditor, Blackwood Corporation, and liquidators initiated legal action on Thursday, almost three months after the liquidator conducted public examinations of Mr Tinkler, fellow director Matthew Keen and the former company secretary Aimee Hyde.

"The liquidator has formed the view that there is a case to answer for insolvent trading and breach of directors' duties," Blackwood Corporation company secretary Patrick McCole said in a statement.

He said the liquidator could seek compensation against the directors and officers if the court found them liable for insolvent trading.

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NSW neighbours win holiday rental ban

GOSFORD Council has failed its constituents by not resolving the issue of an illegal holiday house rental in Terrigal, a judge has ruled.

At the Land and Environment Court on Thursday, Justice Rachael Ann Pepper ruled that Rhonda Bennic's short-term holiday letting of her 6-bedroom house was unlawful because the property is located in a 2A residential zone.

Her next-door neighbours John and Rosemary Dobrohotoff told the court that the house, which can sleep up to a dozen people, had regularly been used for parties and bucks' nights involving strippers and escorts, with noise and anti-social behaviour continuing until the early hours.

The house has been used for short-term holiday rentals since 2006, and Ms Bennic has owned it since 2011.

Justice Pepper said Gosford Council had failed to resolve the issue locally.

"In my opinion, it amounts to an effective abrogation of the council of its duties," she said.

"By leaving it to the court to determine this important issue, the council has failed to do one of its core functions and has failed its constituents."

She said letting the house to short-term guests was prohibited under the current zoning laws.

"This decision may cause a degree of inconvenience for property owners" in the area, she said.

Mrs Dobrohotoff told the court she grew increasingly anxious as weekends and holidays drew near, and often took her family away from their home at those times to avoid the disturbance.

In her ruling, Justice Pepper said the property did not qualify as a dwelling as it was not being occupied in the same way a family or another group would live in it.

But she found that the fault was not entirely Ms Bennic's, as she had never been told by Gosford Council that it was illegal to rent out her property.

She awarded the Dobrohotoffs an injunction preventing the house from being rented out for periods of less than three months, but delayed it until the end of June so as not to impose unnecessary financial hardship on Ms Bennic.

Mr Dobrohotoff told reporters outside the court he welcomed the finding.

"We are pleased to have this outcome, which will have positive effects on the health and welfare of our family, as well as the other families in our neighbourhood," he said.

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