Abbott gets to work on stopping the boats

Tony Abbott has defended his plan to turn back asylum seeker boats, amid criticism from Indonesia. Source: AAP

THE Abbott government insists it will honour its election promise to stop asylum seekers arriving by boat despite Indonesian opposition to its controversial plan to turn back vessels.

Mr Abbott says the coalition "absolutely, totally" respects Indonesia's sovereignty despite comments by Indonesian MP Tantowi Yahya that the turn-back policy is "offensive", "illegal" and could jeopardise good relations between the countries.

"I have no argument with anyone in the Indonesian establishment or parliament," Mr Abbott said in Sydney on Thursday.

"My argument is with people smugglers and my point to the people smugglers is 'the game is up'."

Mr Abbott said he is confident his coalition government will be able to work effectively with Indonesia, as former coalition governments had done.

Not everyone in Indonesia feels the same.

"The policy which is going to be implemented by Mr Abbott clearly ... annoys our sovereignty as independent country," Mr Yahya told ABC television.

And Indonesia's Foreign Minister Marty Natalegawa said last week that Jakarta was opposed to Mr Abbott's plan to turn boats around - as well as his proposal to buy Indonesian fishing boats to stop them falling into the hands of people smugglers.

Labor MP Matt Thistlethwaite says Mr Yahya's comments accurately reflect the Indonesian government's position on Mr Abbott's policy.

"This is quickly turning into a diplomatic disaster for the new government," Mr Thislethwaite said.

But Australian National University foreign policy specialist Andrew Carr says the Indonesian MP's remarks may really be aimed at a domestic audience.

"This is an issue that does have some resonance with the Indonesian population," Dr Carr told AAP.

"Traditionally, that has not been as much a factor in (Australia's) international relations with Indonesia and I don't think it will be a major factor here."

Mr Abbott will use his first international trip as prime minister to visit Jakarta to hold bilateral talks with President Susilo Bambang Yudhoyono on September 30. Trade and people smuggling are expected to be at the top of the agenda.

Mr Abbott repeatedly said during the recent federal election campaign he wanted his first international visit as prime minister to be to Indonesia and that his government would be focused on Asia.

Meanwhile, Deputy Chief of Army Angus Campbell was formally tasked on Thursday with leading operations against asylum-seeker boats under Mr Abbott's Operation Sovereign Borders policy.

The former SAS commander will report directly to immigration minister Scott Morrison and coordinate the 16 departments and agencies that deal with refugee boats.

Mr Morrison met with Lieutenant General Campbell shortly after his appointment.

"The Australian people want that stopped and they have tasked this government to get that job done," Mr Morrison said in Canberra.

"We won't let them down."

Lieutenant General Campbell replied: "There's some work to do."

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Large fire engulfs Vic factory

FIRE crews are battling a large blaze at a Melbourne carpet factory that is sending thick, black smoke into the air.

About 30 CFA and MFB crews are fighting the fire, in Dandenong South.

The factory is fully engulfed in fire, a CFA spokeswoman said.

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WA govt lashed for credit rating downgrade

THE West Australian opposition is accusing Premier Colin Barnett of reneging on a pre-election promise to not privatise a power utility.

It's also calling for the sacking of Treasurer Troy Buswell.

In the wake of WA losing its AAA credit rating with Standard & Poor's, WA Labor leader Mark McGowan on Thursday called Mr Buswell a "clown" and a "joker" who should be made to pay a price for trashing the state's finances.

Mr McGowan also accused the premier of going back on a February 21 pledge not to privatise Western Power, given Mr Buswell told Fairfax Radio on Thursday that power, port and water utilities were potentially on the block as the Liberal-led government sought to reduce debt.

Mr Barnett said he was only responding to a specific question at a media conference about privatising Western Power, and maintained it would not be sold.

"There will be extensive asset sales, not only because of the downgrade by Standard & Poor's but at this stage we're spending $7-8 billion a year on assets and projects and the like," Mr Barnett told parliament.

"And as we continues as a state to accumulate more and more, there's nothing particularly wrong with disposing some of the established and income-earning assets."

Mr Barnett said Australian superannuation funds would buy the assets and he didn't think there was anything wrong with that.

"The state has billions of dollars worth of assets. It's continually buying and selling assets.

"Is that privatisation? I don't know - you can choose your definition."

When Mr McGowan called it a fire sale, asking if the government would be in a weak negotiating position, Mr Barnett shot back: "It could be weaker - you could be in charge of negotiations".

Mr Buswell said ports would not be sold "in totality".

"But there are plenty of assets that sit within WA ports that we could look to sell."

He said asset sales would only solve part of the problem - namely too much spending and not enough income.

Mr Buswell said the key was major reform of the public sector, but acknowledged job culls would be met with fierce resistance exemplified by Thursday's teacher rallies.

"If the public response to what I think is some minor changes to the education system is anything to go by, we're going to have a heck of a time getting those public sector reforms through but they're critically important."

Talkback callers lashed the treasurer for saying on Wednesday the downgrade was a wake up call for the public and its expectations of government.

"Mr Buswell has got a nerve," one said.

The caller said it wasn't the public who wasted money on the botched Muja power station refurbishment, or gave hefty pay rises to government media advisers and the Water Corporation chief.

Another caller described Mr Barnett as "stark raving mad" for pushing unaffordable major infrastructure projects.

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Fmr Qld race boss worked for gambling firm

BOB Bentley doesn't think holding senior positions at Queensland Racing and a betting firm at the same time ever led to a conflict of interest.

Mr Bentley was the first witness called before the Queensland Racing Commission of Inquiry into horse, greyhound and harness racing industries under the former Labor government.

He was grilled on Thursday about his time as chairman of the racing body between 2002 and 2012, specifically because he was a Tatts Group director at the same time.

Counsel assisting James Bell QC said that, under a deal, Tatts paid to use Queensland Racing information for it's betting businesses until 2008.

Tatts then began to withhold fees which eventually amounted to $91 million.

Tatts' actions were raised with Queensland Racing chairman Mr Bentley, who sought advice on whether they were allowed.

He asked a Tatts director whether the firm's actions were legal and the director told Mr Bentley they were under the deal.

"I see nothing wrong with that," Mr Bentley told the inquiry.

"Where else was I going to ask."

Mr Bell responded: "You could ask a lawyer, who's representing the company (Queensland Racing) you're the chairman of."

Mr Bell also tabled a deed the former chairman had signed in 2011, which gave four Queensland Racing board members a substantial raise in entitlements, including waiving the notice period for their resignations.

All four received substantial payouts upon quitting the board days after the Liberal National Party came to power in 2012.

The deed gave Mr Bentley legal indemnity and stipulated that Queensland Racing would pay his legal fees.

Mr Bell questioned whether he had done that because he knew he'd gone too far with the board entitlements.

"We suspected that if ... the government had changed (after the election) then this very thing (an inquiry) may very well happen," Mr Bentley said.

"Our detractors (political opponents) are very skilled at this sort of thing."

At one point Mr Bentley explained how he'd sought legal advice to end speculation about a conflict of interest arising from him holding senior positions at Queensland Racing and Tatts simultaneously.

"I asked, 'let's put this issue to bed, let's get proper advice and do it'," Mr Bentley said.

Mr Bell replied: "Did that get it put it to bed?".

"Nothing in racing ever gets put to bed if someone's got a problem," Mr Bentley replied.

The inquiry is set to continue on Friday.

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Barnett bites back at striking teachers

TEACHERS in Western Australia have been accused by Premier Colin Barnett of disrupting hundreds of thousands of children and families with "a strike for the sake of having a strike".

In an unprecedented alliance, three unions have called on 10,000 angry teachers, education assistants, library staff, lab technicians, cleaners and gardeners to attend a two-hour stop work meeting on Thursday.

They are protesting the loss of 500 education jobs, a freeze on teacher numbers and reduced funding for special programs to improve literacy, numeracy, attendance and behaviour.

But in a combative retort, Mr Barnett said the strike was unnecessary and unjustified.

"This is a strike for the sake of having a strike - what are they striking over? They are the best-paid teachers in Australia," Mr Barnett told parliament.

"It will cause distress to parents, and so many parents will be angry on Thursday if they go on strike. They will be fearful for the care of their children, that is the reality."

The State School Teachers Union, United Voice and the Community and Public Sector Union have directed members to attend stop-work meetings at Gloucester Park and in country areas.

Anger has been rising since the post-budget revelation that as many as 500 education assistants and support staff will lose their jobs as a result of a funding reallocation for WA schools.

The state government insists the cuts are not happening, pointing to a $300 million increase in funding for education this year, saying the budget is higher now than before the Liberals came into power.

Sharyn O'Neill, director general of WA's Department of Education, said it was not yet clear how many schools may shut on Thursday, but she was anticipating it would be only a handful.

"It is too early to speculate on the numbers of staff involved. It is possible that I may have to endorse the closure of some schools if they cannot provide adequate supervision for students," Ms O'Neill said.

State School Teachers' Union president Anne Gisborne said she wanted the premier to acknowledge the issues his reform would present to hundreds of schools.

"We have got a belligerent premier and a belligerent minister who are holding the line that there will be no cuts and everything will be hunky dory," Ms Gisborne said.

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Abuse inquiry hears of Scouts NSW failings

SENIORS members of Scouts NSW knew a disgraced scouts leader was working with children, but they failed to alert authorities, urging him to resign from the organisation quietly.

A series of failings by the scouts movement, and police, emerged during the second day of the royal commission into child sex abuse in Sydney on Tuesday, which is investigating the actions taken by various organisations over convicted pedophile Steven 'Skip' Larkins.

Larkins was last year jailed for the aggravated indecent assault of two boys, as well as child pornography possession and forging documents.

But from the 1990s, rumours were circulating in the Hunter region about his inappropriate behaviour, including that he had cavorted with children in the showers and made a scout lay on his chest while he and the boy were alone in a tent.

In 1997, after complaints were made about Larkins giving kids lollies at a swimming pool, he was removed from having face-to-face contact with children, former regional commissioner of the Hunter Scouts, Allan Currie, told the inquiry on Tuesday.

"This type of publicity, as you would realise, is something that we in Scouts Australia can well do without," Mr Currie said in a letter to Larkins, which prompted counsel assisting the commission, Gail Furness SC, to query if Mr Currie was more concerned about the scouts' reputation.

"Probably," Mr Currie replied, before adding he was new to the job and had no training in such matters.

In 1997, a boy known only as AC, came forward to police with allegations he had been sexually abused by Larkins.

But the inquiry heard the police investigation took more than a year, before the boy's mother was wrongly informed the DPP was not prepared to proceed with the case.

By the time that issue was rectified, the victim had decided he no longer wanted to proceed.

The police officer in charge of the investigation, Sergeant Nigel Turney, conceded the delay was not acceptable and he should have informed the scouting organisation of the allegations in writing.

But he said the allegation was "at the lower end" of that type of offence.

"Yes, it involved a child, but you'd also have to look at the seriousness of the allegations," he said.

In 2000, a former scout known as AA told a scout leader that Larkins had indecently assaulted him.

Larkins was then suspended from the movement.

That same year, Larkins gained employment with the Hunter Aboriginal Children Services (HACS), of which he went on to become general manager.

Peter Olah, then chief executive of Scouts Australia NSW, said he informed police and community services about the abuse allegations but didn't hear back.

It was another three years before Larkins was persuaded to resign from the Scouts.

Mr Currie told the inquiry he knew Larkins was working in the "youth area".

"(It was) suggested that he could resign but if he wanted to appeal he could, but if anything came out that was defamatory to him it could cause some jeopardy to his employment," Mr Currie said.

Larkins resigned shortly afterwards.

Mr Olah said he was also aware Larkins was working for HACS, but said he could not remember if he alerted DOCs or police.

"I think I had taken reasonable steps to see Mr Larkins brought to justice and to protect those who were exposed to him," he said.

But when asked if he felt the scout movement had failed elsewhere, Mr Olah replied, "In terms of children being hurt? Absolutely."

The hearing continues.

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Appeal court sides with Alcoa over Apache

ALUMINIUM giant Alcoa has had a win in its bid to recoup more than $100 million from gas producer Apache over the massive explosion at the Varanus Island plant in 2008.

The disaster slashed the state's domestic gas supplies by about a third and dented its economy to the tune of an estimated $3 billion.

And an official report into the explosion said a 30cm pipeline, maintained by Apache, ruptured and exploded at the shoreline because of corrosion, a risk that was "not only foreseeable but to some extent foreseen" by the company.

Alcoa, a major user of natural gas from the plant at its three WA alumina refineries, claims the disaster forced it to spend $138 million more than it would have under a sales agreement with Apache on acquiring gas and diesel from elsewhere.

Alcoa commenced proceedings to sue Apache in March 2011, claiming it suffered substantial economic loss.

It claims Apache Energy - the Australian arm of US parent company Apache Corporation - breached its duty of care to ensure the pipeline was well maintained and made a separate claim of negligence against subsidiary Apache Northwest, which is responsible for operating the facility.

On Tuesday, WA's Court of Appeal denied Apache leave to appeal Alcoa's claims.

Apache, which included a force majeure clause in its gas supply contract, claimed it was not liable because Alcoa was aware of the risk of a supply interruption and had no difficulty in obtaining alternative supplies.

The appeal panel, led by Justice Michael Buss, sided with Alcoa.

"Alcoa's pleading of the alleged duty of care is adequate in that it pleads ... that the total cessation of the supply of gas ... was likely to lead to Alcoa suffering substantial economic loss and damage," the summary judgement reads.

Alcoa's claim against Apache is likely to continue.

But Apache said it would consider whether to seek special leave to appeal to the High Court of Australia "in order to clarify this critical branch of the law".

"At issue is whether Alcoa is permitted to recover tort damages in addition to the contractual liquidated damages for which it contracted," Apache Northwest said.

"Alcoa is a large global company that was able to protect itself from gas supply disruption and did protect itself through contract liquidated damages, insurance, and other deliberate business strategies."

Alcoa declined to comment.

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US naval base shooting leaves 13 dead

A former US naval reservist opened fire at a Washington base, killing 12 before losing his own life. Source: AAP

A FORMER US naval reservist killed 12 people in a shooting rampage at a military base in the heart of Washington before himself being killed in a shootout with police.

Police identified the alleged gunman as Aaron Alexis of Fort Worth, Texas, who served in the navy from 2007 to 2011 before becoming a defence subcontractor for computer giant Hewlett-Packard.

US authorities probing the shooting spree at Washington's Navy Yard, which local news outlets early on Tuesday reported also injured 14, said the gunman appeared to have acted alone.

"We do now feel comfortable that we have the single and sole person responsible for the loss of life inside of the base today," police chief Cathy Lanier said late on Monday.

The Federal Bureau of Investigation (FBI) appealed to the public for information on the 34-year-old, whose military service was marked by disciplinary problems and who reportedly had once been arrested but not charged in Texas for shooting a bullet through his apartment ceiling.

"No piece of information is too small. We are looking to learn everything we can about his recent movements, his contacts and his associates," said Valerie Parlave, assistant director of the FBI's Washington field office.

The FBI released a photo of Alexis, who held the rank of an Aviation Electrician's Mate 3rd Class and had served full-time in a logistics support squadron in Fort Worth, according to the navy.

The shooting left Washington on edge and there was a security scare hours later at the White House when a man who apparently threw firecrackers over a fence at the US president's residence was swiftly arrested.

Even hours after the shooting, Alexis's motivation for opening fire, reportedly with an AR-15 assault rifle, was unclear. His four-year stint in the navy was troubled, officers said.

"There is definitely a pattern of misconduct during his service," a US military officer, who spoke on condition of anonymity, told AFP.

Friends in Texas told US media that Alexis had an interest in Buddhism and was conversant in the Thai language and had thought about moving to Asia.

Most recently, Alexis was employed as an IT subcontractor for a company called "The Experts", which was working on a Hewlett-Packard contract to upgrade equipment for an intranet network used by the US Marine Corps and navy, HP said in a statement.

The suspect's work as a naval contractor suggested he may have had a pass that could gain him entry to the Naval Sea Systems Command, which oversees ship-building programs carried out by defence firms.

It was unclear if the military or HP had been aware of Alexis' brushes with the law, including reportedly two shooting incidents, before he was hired for the IT job.

The shooting sparked a massive show of force as police and federal agents descended on the Navy Yard, which is located on the Anacostia River, less than three kilometres from the Capitol.

President Barack Obama ordered that flags be flown at half mast in the US capital until Friday as a mark of respect for the dead.

Obama called the shooting a "cowardly act" and said that America was confronting "yet another mass shooting", saying troops in the military should not have to face danger at home.

Earlier media reports said the shooter had allegedly barricaded himself in a room in a headquarters building.

After the first reports of shots came at 8.20am (2320 AEST) on Monday in the headquarters building of the Naval Sea Systems Command, police arrived within three minutes and exchanged fire in "multiple engagements" with the suspect, Lanier said.

A Washington police officer was among those injured. Hospital officials said he suffered serious wounds to his legs but was expected to survive.

One employee at the Navy Yard, Patricia Ward, said she had just paid for her breakfast at a cafeteria when shots rang out.

"I was waiting for my friend to pay when we heard the gun shot. It was three gun shots straight in a row, 'pow-pow-pow'," she told reporters.

"Three seconds later it was 'pow-pow-pow'. So it was like a total of seven gun shots. And we just started running."

As helicopters swarmed overhead, police earlier blocked off intersections around the Navy Yard and patrol boats moved in near the site along the river banks.

Flights out of the nearby Reagan National Airport were briefly delayed and several schools were on lockdown until anxious parents came to pick up their children in the afternoon.

The US Senate adjourned for the day as a precaution, and Washington's baseball team, the Nationals, whose stadium is adjacent to the Navy Yard, called off its Monday evening game.

US Capitol police said in a statement late on Monday that congressional activities would resume as normal on Tuesday.

About 3000 people work at the naval facility, which dates back to the early 1800s and includes a naval history museum. The complex also has a residence for the four-star chief of the US Navy, Admiral Jonathan Greenert.

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Billabong considering new deal

THE board of troubled clothing retailer Billabong is considering a rival refinancing proposal to the deal it recently reached with a US private equity firm.

The company plans to take a loan of $US300 million from a consortium led by Altamont to help stabilise its business, overhaul its cost structure and pursue a profitable growth strategy.

Altamont will in turn take a large stake in Billabong, which made a loss of more than $500 million in the first half of the 2012/13 financial year.

The value of the company has also plunged by about 90 per cent in the past few years.

But two US hedge funds, Centerbridge and Oaktree, have approached Billabong's board with their own recapitalisation plan, which they say provides Billabong with greater flexibility to address its financial problems.

Centerbridge and Oaktree have offered to pay more than Altamont for a stake in Billabong, and say they will charge a lower interest rate on its loan to the retailer.

"Billabong confirms that the board is considering the proposal and as part of its consideration the board met with the Centerbridge/Oaktree consortium," the retailer said on Friday.

The company wants to finalise a financing package as soon as practical, it said.

Billabong shares gained 3.75 cents, or 6.8 per cent, to 58.75 cents.

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Rudd offers UN Australian support on Syria

Prime Minister Kevin Rudd has offered Australia's support within the United Nations for a full investigation into events in Syria. (Pic: Lyndon Mechielsen) Source: Supplied

PRIME Minister Kevin Rudd says the United Nations has Australia's support for an immediate investigation into the use of chemical weapons in Syria.

During a phone call to UN Secretary-General Ban Ki-moon on Friday Mr Rudd expressed Australia's grave concern about the deteriorating situation in Syria.

They also discussed what next steps the international community should consider.

The world is calling for answers amid claims Bashar al-Assad's regime used chemical weapons to massacre up to 1300 people on the outskirts of Damascus this week.

UN weapons inspectors are in Syria but have not been given permission to investigate the latest claim.

Mr Rudd offered the UN chief Australia's support for an immediate and thorough investigation.

In this photo released by the Syrian official news agency SANA, a Syrian victim who suffered an alleged chemical attack at Khan al-Assal village according to SANA, receives treatment by doctors, at a hospital in Aleppo, Syria. (AP Photo/SANA) Source: AP

"Australia calls on the Syrian government to respond positively to the Secretary-General's call for co-operation and that it provide full and unfettered access to UN inspectors currently in Damascus," he said in a statement on Friday.

He said the events were "a tragedy of unspeakable proportions".

Asked earlier whether Australia would consider committing troops to a possible international intervention in Syria, the prime minister said he is taking a "calm and measured approach".

"I take this step-by-step. I'm not in the business of making chest-beating announcements," he said.

A man carries two children away from the scene of an explosion in the northern Syrian city of Raqqa, early on August 7, 2013. (AFP PHOTO/ABDULLAH AL-SHAM) Source: AFP

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