Power cut to Vic desal plant

Victoria's controversial desalination plant has been relying on generator power for several weeks. Source: AAP

VICTORIA'S controversial desalination plant has been relying on generator power for several weeks, with electricity shut off due to a problem with cabling.

Two cable joints were found to be performing below specification and needed to be repaired, plant spokesman John Ridley said.

Electricity to the Wonthaggi plant has been shut off while the repairs take place.

"Because the plant is not producing any water, it is of no consequence and the systems to maintain the plant have all been supplied by the standby generators which are there for that reason," Mr Ridley told AAP.

"Once the cable is fully operational again, which will be very soon, days rather than weeks as I understand it, then everything will be absolutely fine."

Electricity is needed to run pumps to maintain the plant, he said.

The cause of the cabling problem is being investigated.

The $6.1 billion desalination plant, which provides a drought-proof water supply to Melbourne and Geelong, was built under the previous Labor government and had massive cost blowouts.

It began operating in 2012 but the government has placed a zero-gigalitre order for the past two financial years.

A decision on a 2014/15 order is due by April.

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Cruise ship returns with sick toll at 700

A cruise ship on which nearly 700 passengers and crew fell ill has arrived home in the US. Source: AAP

A CRUISE ship on which nearly 700 passengers and crew fell ill has arrived at its home port in the US after a Caribbean voyage was cut short by the outbreak.

One woman aboard the Explorers of the Sea yelled, "We made it!" as the ship docked Wednesday at New Jersey. Other passengers, with blankets wrapped around them, stood on deck to watch the ship pull in.

The cause of the outbreak is yet to be determined.

Bill Rakowicz of Canada said he suffered from vomiting, pain and diarrhoea and that his experience was simply "awful".

The US Centres for Disease Control and Prevention said its latest count puts the number of those sickened at 630 passengers and 54 crew members. The ship was carrying 3050 passengers.

Health investigators suspect norovirus, but lab results are not expected until later this week.

If norovirus is to blame, it would be one of the largest outbreaks in last 20 years, the CDC said. A 2006 norovirus outbreak on a Carnival Cruise Lines ship also sickened close to 700.

Norovirus - once known as Norwalk virus - is highly contagious. It can be picked up from an infected person, contaminated food or water or by touching contaminated surfaces. It causes bouts of vomiting and diarrhoea for a few days.

The CDC said it recommended to cruise operator Royal Caribbean that people who still have symptoms be housed in nearby hotels or seen at medical facilities before travelling home.

CDC investigators boarded the ship during its US Virgin Islands Port call on Sunday. They said no single food or water source or other origin has been identified.

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Treasury Wines tank on share market

Treasury Wine Estates has issued a profit warning in the wake of weaker than expected sales. Source: AAP

TREASURY Wine Estates has been hammered on the stock market, with its shares falling by 20 per cent after it issued a profit downgrade due to weaker sales in Australia and China.

The company behind Penfolds and Wolf Blass has cut its full year earnings forecast from between $230 million and $250 million to between $190 million and $210 million.

It expects first half earnings, which will be announced in February, to be between $41 million and $46 million, down from $73 million last year.

Treasury Wine shares fell to $3.64, their weakest price in almost two years, wiping $589 million from the value of the company.

Weaker than expected sales in Australia, following the company's decision to lift prices on some products and focus less on Christmas promotions, had contributed to the profit downgrade, it said.

A decline in Chinese demand for premium wine had also hit sales volumes.

Treasury Wine also said it had continued to reduce shipments to the US while increasing investment across the group, especially in Asia.

The profit downgrade is the latest in a string of bad news for Treasury Wine, which last year poured more than $35 million worth of excess or aged commercial stock down the drain in the US.

The controversial move, which was part of a broader $160 million writedown, ultimately led to the departure of chief executive David Dearie.

Law Firm Maurice Blackburn and litigation funder IMF last October announced funding of a class action against Treasury Wine, alleging the company misled the market and breached its continuous disclosure obligations in its communication of the financial impact of over-stocked US distributors to investors.

On Thursday, Maurice Blackburn managing principal Ben Slade said the latest profit downgrade raised "questions of transparency" about the company's operations.

"TWE's announcement this morning suggests that continuous disclosure requirements may not have been complied with," he said in a statement.

"We are confident that the company's shock $190 million downgrade announcement in July last year was indicative of such a breach. It may have happened again."

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MP says give 'measly' $25m to SPC

Federal cabinet will discuss a proposal to co-invest in SPC Ardmona's fruit processing operations. Source: AAP

PRIME Minister Tony Abbott has used the rejection of taxpayer support for fruit processor SPC Ardmona to set an important "marker" for how his government will deal with requests for industry assistance.

The 93-year-old Victorian company wanted a $25 million federal grant, topped up by $25 million from the Victorian government and its own $150 million investment, for new product development and technology to prop up its operation.

But after three hours of debate in federal cabinet on Thursday, Mr Abbott said the plan was rejected because it was not the government's job to restructure a particular business.

The decision, which workers and growers fear will lead to the operation's closure, comes weeks after Holden's bid for support was rejected and its parent company General Motors announced the end of car production in Australia in 2017.

"The decision that came from the cabinet today does set an important marker," Mr Abbott said.

"This is a government which will make sure that the restructuring that some Australian businesses need, that some Australian sectors need, is led by business, as it should be."

The government's role was to create the right climate for business, he said.

Mr Abbott said SPC Ardmona - owned by food giant Coca-Cola Amatil - was a strong business with the resources to allow it to restructure.

The company advised the government it was prepared to invest an extra $161 million into the business and renegotiate its enterprise bargaining agreement.

Mr Abbott said the company's present EBA had conditions "well in excess of the award", including a wet allowance and generous redundancy provisions.

However SPC Ardmona managing director Peter Kelly said the company would review its business plans.

"This is an unexpected and extremely disappointing decision by the coalition, particularly after the enormous support we have received for our business plans from the local community and beyond," Mr Kelly said.

Acting Opposition Leader Tanya Plibersek said the government had failed in its fundamental role - to protect jobs and bring on new investment.

"First they forced General Motors Holden out - now they are sending SPC Ardmona to the wall," Ms Plibersek said.

Labor pledged at the 2013 federal election to provide the $25 million grant.

If the plant closes, it is estimated 1500 direct and 2700 indirect jobs could be lost in the Shepparton region.

Shepparton mayor Jenny Houlihan said workers faced an unknown future.

"The $25 million that the government refused to let go today will be eaten up in unemployment benefits," she said.

Australian Manufacturing Workers' Union national secretary Paul Bastian said workers had been improving productivity, but other factors were affecting the business, such as the dumping of cheap imports and the high dollar.

"The government directly and indirectly subsidises mining, agriculture, finance, fisheries and other important Australian industries and yet it is continually cutting investment in manufacturing," Mr Bastian said.

"Soon, when we go to the supermarket ... there will be nothing left made in Australia."

Victorian Opposition Leader Daniel Andrews said if state premier Denis Napthine could not convince Mr Abbott to stump up $25 million for SPC Ardmona, he struggled to see how Dr Napthine could secure $300 million for Toyota as it considers its future.

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Police given bus CCTV after woman pinned

A woman has died in hospital after being pinned under a bus for two hours in Sydney's CBD. Source: AAP

AFTER the death of two pedestrians on the same day in Sydney, police are urging the public to be more careful crossing roads.

A 51-year-old Granville woman died on Wednesday night after being hit by a bus in Sydney's CBD. She was trapped in its axles for two hours before emergency services freed her and she died only hours after undergoing emergency surgery.

Earlier that day, an 83-year-old man died instantly when he was hit by a truck in Monterey in southern Sydney while crossing the road.

NSW Police Traffic and Highway Patrol operations commander Stuart Smith said the deaths were tragic.

"It was a dreadful day on NSW roads," he told reporters on Thursday.

Superintendent Smith said crash investigators are looking into both accidents, including CCTV footage from the State Transit bus as well as an examination of traffic and pedestrian control records.

"It's a complex calculation that can only be provided once a re-enactment is provided," he said.

Police say the bus was turning right when it struck the woman, and the 70-year-old driver was provided with counselling.

"We believe he is a very experienced driver with the State Transit Authority," Supt Smith said.

He could not comment on whether jaywalking was a factor in the accident but reminded pedestrians and drivers to look out for each other.

"It is a place where we all need to be aware and to keep a proper lookout," he said.

He warned people about the dangers of jaywalking and using electronic devices such as mobile phones and MP3 players.

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Rice farmers add to Thai govt woes

Thai caretaker PM Yingluck Shinawatra is facing a challenge from more than a million rice farmers. Source: AAP

BESIEGED by anti-government protests in Bangkok for the past three months, embattled caretaker Prime Minister Yingluck Shinawatra is facing another challenge in the countryside, from more than a million angry rice farmers.

Yingluck's Pheu Thai Party won the last general election in 2011 on a populist platform anchored by a pledge to buy every single grain of rice grown by farmers at above-market, fixed prices.

Two and a half years later, the government is now faced with a debt of about 100 billion baht ($A3.4 billion) to 1.4 million farmers who have yet to be paid for their main rice crop, sold to the government in October.

The main opposition party is boycotting the election, so Yingluck's party is expected to win comfortably even with the rice problems.

"Farmers in Phichit are apathetic about the polls," said Banjong Phichitwilailert, a community leader.

"The candidates haven't been campaigning here because they are afraid that they won't be able to answer our questions."

Thousands of farmers in Phichit, 310 kilometres north of Bangkok, are owed 7 billion baht for their crop, Banjong said.

"About 10,000 farmers were paid this week, but 40,000 are still owed money," he said.

In neighbouring Phitsanulok province, rice farmers' groups have given the government until Friday to assure payment.

"On Friday we will meet with the governor," said Piak Phusrithaet.

"If he doesn't guarantee payments we will either shut down City Hall or march on Bangkok. We have been waiting for our money for four months."

Yingluck's caretaker government is trying to arrange loans from commercial banks to pay the farmers before the elections but observers doubt the full 100 billion baht can be raised quickly.

Farmers are only one group causing a headache for the government over the rice scheme.

Earlier this month, the National Anti-Corruption Commission opened an investigation into Yingluck for failing to halt the scheme.

On January 16, it brought corruption charges against former commerce minister Boonsong Teriyaporn and 14 other officials for their involvement in the program.

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Swimmer missing in NSW river

A search is underway in the Hawkesbury River north of Sydney after a swimmer failed to surface. Source: AAP

A SEARCH is under way for a swimmer missing in the Hawkesbury River north of Sydney.

Police say a group of friends were swimming in the river, west of the Windsor Bridge, just before 6pm (AEDT) on Wednesday when a man got into difficulty.

Emergency services were called to the scene after the man, believed to be 22, failed to surface.

A police helicopter and PolAir are searching the area.

Police divers are en route.

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New treatment may help ADHD sufferers

NUTRIENTS may become a new treatment option for ADHD sufferers after a study found the treatment was much more effective than placebo.

The University of Canterbury trial is the first to show the benefits of micronutrients for ADHD (Attention Deficit Hyperactivity Disorder) sufferers is not just due to the placebo effect, the author of the study Professor Julia Rucklidge said.

She said trial participants often get better as they're being cared for by clinicians, so it was important to compare micronutrients with placebo.

About five per cent of Kiwis suffer from ADHD and some children can't tolerate or don't respond to regular medications.

"The study needs to be replicated before we can give clear advice to people affected by ADHD," Dr Rucklidge said.

"However, if replicated, it will offer people with ADHD another treatment option."

Dr Rucklidge said participants taking the nutrients had no adverse effects.

Nutrients have been used as a treatment for a range of ailments, particularly mental illness, for decades, but there is a lack of scientific research to support the treatment, she said.

"As such, many scientists and clinicians have dismissed nutrients as a viable way forward due to this unfortunate history."

Dr Rucklidge plans to run a similar trial with ADHD children, and is also testing the benefits of nutrient treatments for people with depression, sleep problems and addictions.

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Debate on urban projects helpful: Access

EDS: Not to be used until 0001 AEDT, Thursday January 30

By Colin Brinsden, AAP Economics Correspondent

CANBERRA, Jan 30 AAP - At a time of a fading mining investment boom, Deloitte Access Economics is pleased to see policymakers discussing Australia's creaking urban infrastructure.

The independent forecaster's latest Investment Monitor highlights the peaking nature of the resource-related investment spending with definite projects in the final months of 2013 posting the biggest drop since the depths of the 2008-2009 global financial crisis.

However, Deloitte Access Economics partner Stephen Smith notes in the report on Thursday that public infrastructure, particularly for transport, has been the focus of considerable discussion in Australia over the past few months.

The federal government has directed the Productivity Commission to examine major infrastructure projects, drawing organisations such as Infrastructure Australia, the Reserve Bank of Australia and the Business Council of Australia into the debate.

"That the state of Australia's creaking urban infrastructure is stirring the passions of Australian policymakers gives hope that a more efficient system of identifying, assessing, financing and constructing public infrastructure may be in store," Mr Smith said.

"However, there is also a risk that any policy changes are designed with short term growth risks rather than the longer term sustainability of infrastructure spending in mind."

The report shows the value of definite projects - those under construction or committed - dropped by almost $25 billion over the December quarter, the most significant quarterly fall since the December quarter 2008. Definite projects over the year were down 1.2 per cent.

Mr Smith said not a single new liquified natural gas (LNG) project began construction over 2013, although there was a further $2 billion cost blowout for the Gorgon LNG project.

The value of planned projects - those under consideration or possible - rose by more than $17.5 billion over the quarter.

However, a $40 billion increase in the value of projects under consideration was partly offset by a $22.3 billion fall in the value of possible projects.

Overall, the total value of projects at their various stages fell 0.8 per cent compared to the September quarter - or $7.4 billion to $866.3 billion - to be down 9.2 per cent over the year.

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Aust could take big role in nuke security

IT'S the nightmare terror scenario: an extremist group building its own atomic bomb and detonating it without warning in Sydney or New York.

A new study by the Australian Strategic Policy Institute (ASPI) says it's tempting to think that the risks of nuclear terrorism are overblown.

"They aren't," ASPI says.

"If terrorists were able to overcome the still relatively significant challenges involved in the fabrication and successful detonation of an improvised nuclear device, the consequences could be catastrophic."

Authors Dr Tanya Ogilvie-White and Dr David Santoro said there were three pathways to nuclear terrorism.

Terrorists could acquire a ready-made bomb from military stocks; acquire materials to make their own improvised bomb; or they could attack or sabotage an existing nuclear facility or transportation to release radioactive material.

The paper says there's low-risk of such attack in Australia, although in 2005 police arrested a group of Islamic extremists who planned to attack the Lucas Heights reactor. But an attack anywhere in the world would still have consequences for Australia.

ASPI said Australia had internationally well-regarded technical and diplomatic expertise in non-proliferation.

Yet the former Labor government had cancelled the flagship Regional Security of Radiological Sources Project, launched in 2004.

Under that program, international experts worked under Australian leadership with regulatory bodies across South-East Asia to secure dangerous radioactive sources used in the health and industrial sectors. They also worked to develop plans to respond to nuclear attacks or sabotage.

ASPI said the government should now launch a new nuclear security strategy, including relaunching the Regional Security of Radiological Sources Project.

At a modest cost of around $2 million a year this would reduce the danger of nuclear terrorism and give Australia an international leadership role.

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Fire burning at Wattle Hill in Tasmania

RESIDENTS of Wattle Hill in Tasmania's southeast are on alert for an out-of-control bushfire.

An emergency warning issued for the bushfire was downgraded to a watch and act alert at 6pm (AEDT) on Tuesday.

However, the Tasmania Fire Service says the fire may put Wattle Hill and residents within the junction of White Hill Road and Wiggins Road, including the areas of Wharmbys Creek and Wiggins Creek, at high risk.

It says the bushfire is not controlled and embers and ash may be falling on Wattle Hill.

The area between Forcett and Copping is not under immediate threat, it says.

Crews have been fighting several fires on a day with a total fire ban across the state.

Fire danger ratings reached severe across much of the Derwent Valley and the southeast of the state on Tuesday.

Tasmania Fire Service chief officer Mike Brown said fire conditions were catastrophic at Bushy Park at one point on Tuesday afternoon.

"The fires today had significant potential to impact on several communities," Mr Brown said.

"But our planning and assignment of strike teams, together with our local crews and aircraft support did much to jump on many fires before they developed."

Several fires on the west coast and central highlands started due to lightning last week escaped their containment lines.

"Some 35 bushfires started in a 24-hour period and under very difficult conditions," he said.

Fire conditions should ease from this evening, he said.

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Toyota workers need vote on changes: Abetz

The federal government will intervene to allow Toyota workers to vote on changes to work conditions. Source: AAP

THE federal government will intervene to allow Toyota workers to vote on proposed changes to its industrial relations policy, Employment Minister Eric Abetz says.

Toyota is seeking to add various clauses in its enterprise agreement to improve productivity.

Among these are reducing the "Christmas shutdown" period from 21 days to 10 days, reducing the number of paid days' leave to attend union delegate training from 10 days a year to five days in the first year and two days in subsequent years, and removal of paid "wash up time".

"It is clearly in the public interest that the workers be allowed to vote on Toyota's proposed variations and determine their own destiny," Senator Abetz told guests at The Sydney Institute on Tuesday.

"Tonight I announce that I have decided to intervene in support of Toyota's workers being allowed a say as soon as possible on the proposed variation."

He said the clauses should not have been proposed for the agreement in the first place.

He said 1586 working days, or about $370,000 in wages, are lost by a clause that would allow a half day on the last day before shutdown.

If all 69 of the company's union delegates took the full 10 days' paid leave for education activity, this resulted in 690 working days lost, or about $150,000 in wages, he said.

"These are just two instances of how more than 2000 working days worth of productivity could be re-injected into Toyota immediately," he said.

"Management needs to accept responsibility.

"But it is deeply troubling that the employees' right to vote on proposed variations has been frustrated."

Senator Abetz also used his speech - titled "Industrial Relations after the Thirty Years War" - to criticise the previous Labor government's economic record.

He accused Labor leader and former industrial relations minister Bill Shorten of granting "an unseemly range of union wish-list claims", while former Prime Minister Julia Gillard played "Santa Claus" to union demands.

"Every union boss, like a child writing to Father Christmas, presented their wish list to the government, which was duly granted," he said.

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People smuggler behind deadly trip jailed

A people smuggler behind a deadly boat journey to Australia in 2012 has been jailed for seven years. Source: AAP

A PEOPLE smuggler behind a journey to Australia that ended with up to 90 lives lost at sea has been jailed for seven years by an Indonesian court.

Prosecutors on Tuesday recommended up to 15 years in jail for the Pakistani man, known as Bilu, who they said organised a journey on a vessel that sank in the Sunda Strait in 2012.

Also known as Hasan Bilu and Jawed Muhmud, Bilu was arrested in Jakarta in May last year in a breakthrough joint operation between Australian and Indonesian authorities.

In a Jakarta court on Tuesday, prosecutors argued for a maximum of 15 years jail for people-smuggling charges and a fine of up to 1.5 billion rupiah ($A139,500).

The court heard Bilu had been charging asylum seekers around $US5000 per person to make the perilous trip to Australia.

The 54-year-old was found guilty, and a panel of three judges sentenced him to seven years' jail, with a fine of 800 million rupiah ($A74,400) that could alternatively be converted to an additional six months' jail.

In sentencing, chief judge Nasir Simanjuntak said Bilu had caused the deaths of numerous people and that he had not been frank with authorities.

In his favour, the judge said Bilu had been polite in court, had a wife and child, and had never been in trouble before.

Bilu's lawyers said their client accepted the sentence and would not appeal.

He is believed to have admitted to arranging the passage of four asylum-seeker boats, but is suspected of far deeper involvement in people-smuggling ventures.

He had been identified by another man who was jailed in Indonesia last year for his part in sending asylum-seeker boats to Australia, including the one which sank in 2012, causing the deaths of 90 people.

Dawood Amiri is serving six years in jail after pleading guilty to arranging the unstable vessel, which capsized in the Sunda Strait.

Of the 200 passengers on board, 110 survived.

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Ambos brace for busy week as temps soar

HEALTH, fire and emergency services in Australia's southeast are bracing for a heatwave for a second time this year.

But while the Bureau of Meteorology warns of serious heat, it may not be as gruelling as the earlier heatwave during which Adelaide earned the dubious label on January 16 of being the hottest city on Earth that day.

Senior meteorologist Simon Allen says they are both significant heatwave events.

"The second one probably won't be quite as severe as the one we had a couple of weeks ago, I think, but they are both very significant," he told AAP on Tuesday.

Victoria and the ACT are putting on extra ambulance and firefighting crews.

South Australia is already at peak resources, with 13,500 volunteers at the ready for the fire danger season.

In Victoria, residents are being warned that some parts of the state can expect a week-long heatwave with temperatures hovering above 40C in some areas from Thursday until Tuesday.

Ambulance Victoria has rostered on extra staff after workloads for ambulance crews soared by 25 per cent during the mid-January heatwave.

"The demand will be huge again," Ambulance Victoria operations manager Paul Holman said.

Residents in the ACT have been warned of a week of extreme heat with temperatures expected to stay in the high 30s.

The ACT Ambulance Service will put an extra crew on roster but doesn't expect major resource shortages.

In South Australia, firefighters have dealt with minor new blazes across the sweltering state, while firefighting operations are continuing at Bangor in the Southern Flinders Ranges and at Billiatt in the Riverland.

Fire bans across the state forced the closure of 11 schools on the day most children returned to school after the holidays.

Residents in Adelaide face temperatures soaring to 40C on Friday and hovering around that mark during the weekend. Temperatures are not expected to exceed the 44.2 degrees reached earlier in January.

On Monday, Adelaide will cool slightly to 39C.

Meanwhile in Tasmania, firefighters have been battling an out-of-control blaze in the state's southeast, on day of a total fire ban across the state.

The Tasmania Fire Service says the fire may put Wattle Hill and residents within the junction of White Hill Road and Wiggins Road, including the areas of Wharmbys Creek and Wiggins Creek, at high risk.

It says the bushfire is not controlled and embers and ash may fall on Wattle Hill.

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Nauru slams reports of island chaos

THE Nauru government has slammed reports about chaos on the tiny island nation as irresponsible, arrogant and even racist.

In a statement on Tuesday, the government maintained it was calmly going about its business and moved to set the record straight on what it said were sensational and inaccurate reports in the Australian media about chaos on the island and constitutional problems.

Nauru was not in "chaos", there are no constitutional issues and the rule of law is operating and respected, the government said.

Irresponsible reports that suggested otherwise displayed a culture of international bullying, arrogance and even racism, it said.

Nauru's government has been under pressure to explain why it sacked its chief justice Geoffrey Eames and only magistrate Peter Law, both Australian citizens.

The statement on Tuesday said some critics of that decision had direct links to the two Australian men.

"This is exactly the sort of cronyism that the Nauru government is stamping out," it said.

The government also said the Nauru opposition had moved a no-confidence motion against the government on Tuesday which was defeated on the floor of parliament by a majority of 11 votes to seven.

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Aussie student raped in Sri Lanka: reports

A YOUNG Australian woman is believed to have been raped during a trip to a coastal town in southern Sri Lanka.

The Department of Foreign Affairs and Trade (DFAT) did not give details of the incident but says it is in contact with a woman in the south Asian nation.

"We are providing consular assistance to a young Australian woman in Sri Lanka," a spokeswoman told AAP on Monday.

"The individual seeks privacy at this time."

Local news site ColomboPage reports the woman told police in the southern town of Ambalangoda that she had been raped on a beach by a tourist guide.

The site reports she is an Australian National University (ANU) student and was in the country as part of a group of 15 Australian students.

"The Ambalangoda Police says the suspect has fled the area and investigations are underway island wide to arrest him and to produce him before the court," the site reported.

An ANU spokesman said the university was aware of media reports and was investigating the incident.

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Man injured in Australia Day attack

A man has suffered a cut to his head in an unprovoked Australia Day attack at Bondi Beach in Sydney. Source: AAP

A MAN has suffered a cut head in an unprovoked Australia Day attack on a street in Sydney's east.

Police said the 24-year-old victim was standing on the footpath on Campbell Parade at Bondi when an unknown man pushed him in the chest then punched him in the head, about 9pm (AEDT) Sunday.

The 24-year-old fell to the ground and struck his head on the pavement, police said in a statement.

He was taken to St Vincent's Hospital with a laceration on the back of his head.

The attacker fled the area with two other people in a silver 4WD.

Detectives are looking for a male who's described as Caucasian, 190cm tall, about 17 years old with short brown hair.

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NT man charged with murder

A MAN has been charged with murder following the death of a man at a house in the Northern Territory.

A 20-year-old man has been remanded in custody after the body of a 29-year-old man was found in Larapinta on Sunday.

Emergency services were called to a house, west of Alice Springs, at around 1pm and found the dead man.

The 20-year-old was taken into police custody a short time later.

He will appear in the Alice Springs Magistrates Court on Tuesday.

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Put taxes on budget repair agenda: Access

A LEADING economist is urging the federal government to make sensible repairs to the budget and believes it's "dumb" to leave taxes off the agenda.

The government has a Commission of Audit working on recommendations to cut commonwealth spending, faced with the potential of a decade of budget deficits and ballooning government debt.

The Commission was due to deliver its initial interim report by Friday, but was granted another two weeks by Treasurer Joe Hockey.

In his latest business outlook released on Tuesday, Deloitte Access Economics economist Chris Richardson says the focus needs to be on sensible repair of the budget.

"All programs need to be assessed on merit, rather than just focusing cuts on the newest programs," Mr Richardson says.

"Taxes need to be on the table too; it's dumb to pretend they can't be touched."

While the government has promised a review of the tax system, its recommendations would be taken to the next election in 2016.

The potential for government cutbacks to address the budget black hole, along with the continued caution of businesses and households, should keep overall economic growth a bit below a trend rate of 3.25 per cent through to late 2015.

But Mr Richardson says the "Big Daddy" of negatives facing the economy is what he describes as the "construction cliff" - the peaking of resource-related investment and its fall from heady heights.

This is already hitting business with soft revenues and stagnant profits.

However, he says there are some "powerful positives" in play for the Australian outlook.

"The (Australian) dollar is finally starting to take its foot off the throat of Australia's economy," he said.

At the same time, the US recovery is accelerating, China is hitting its growth targets, and there is a growing dividend in export volumes from Australia's newly built mines.

Still, an overall weak economy should keep interest rate rises at bay until 2015.

"With the world's central banks winding back their stimulus, the Australian dollar will remain under pressure in 2014 and 2015," Mr Richardson said.

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No action over Nigella drug-taking

UK police will take no further action against TV cook Nigella Lawson after she told a court that she had taken drugs, Scotland Yard says.

The Metropolitan Police said a specialist team had examined all the evidence relating to the 53-year-old's confessions during the fraud trial of her two former assistants, but has concluded there will be no further action.

Self-styled domestic goddess Lawson revealed during the trial of Elisabetta and Francesca Grillo that she took Class A drug cocaine with her late husband John Diamond when he found out he had terminal cancer, and in July 2010 when she claimed she was being "subjected to intimate terrorism" by her former husband, Charles Saatchi.

In a statement, Scotland Yard said there were "serious public interest concerns" about the message a prosecution would send to potential witnesses and victims in the future, and could deter people from being candid with police and the court.

"The decision has been taken based on a number of factors, including the need for police action to be proportionate, whether further action would be in the public interest, and after consultation with the Crown Prosecution Service," the statement read.

"There are serious public interest concerns about the message any prosecution would send out to potential witnesses and victims in the future.

"Whilst witnesses clearly cannot simply admit to any offence under oath without consequences, this has to be balanced with the requirement for victims and witnesses to tell the truth."

During the trial of the Grillo sisters last year, Lawson told jurors she had tried cocaine, but said the idea that she was a habitual user of the Class A drug was ridiculous.

The TV star said she was "not proud" but would rather be "honest and ashamed" about what she had done.

She also admitted that she began taking cannabis in the last year of her marriage to multi-millionaire Saatchi.

Saatchi claimed in an email that Lawson's drug use meant she allowed their former assistants to spend what they liked.

The message said: "Of course now the Grillos will get off on the basis that you... were so off your head on drugs that you allowed the sisters to spend whatever they liked and, yes, I believe every word they have said."

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India celebrates Republic Day

Millions have watched a display of India's cultural diversity during national day celebrations. Source: AAP

MILLIONS of Indians have watched a display of the country's military power and cultural diversity amid tight security during national day celebrations.

Japanese Prime Minister Shinzo Abe was a special guest at Sunday's parade in the Indian capital, the highlight of the annual Republic Day festivities.

Schoolchildren, folk dancers, and police and military battalions marched through New Delhi, followed by the military hardware display and folk dances. India adopted its democratic Constitution on January 26, 1950.

Similar parades were held in Indian states, including Jammu-Kashmir and Manipur, where separatist militants don't accept Indian rule and called for general strikes.

Four low-intensity explosions marred the celebrations in Imphal, the capital of remote northeastern Manipur state, but did not cause any damage or casualties, police said.

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Luminaries speak and Sydney sky lights up

MARIE Bashir has given her final Australia Day address as governor of NSW in a ceremony marking the end of official Sydney festivities for the national holiday.

Tens of thousands of spectators packed Darling Harbour on Sunday night to watch the day's celebrations peak with a dazzling fireworks display.

Professor Bashir, who is set to retire in September, sailed into Cockle Bay aboard the Admiral's Barge before taking a lap of honour in front of cheering children waving Australian flags.

She told the crowd Australia Day was an opportunity to rejoice and give thanks but also to commit to helping those who were doing it tough.

"We should not slip into complacency, for there is still much to do to address the challenges of those who need our additional support: the marginalised, those who are coping with poverty," Prof Bashir said.

"As we have done in the past, we should meet those challenges with joy and with success."

Indigenous footballer Adam Goodes, who on Saturday was named 2014 Australian of the Year for his leadership in the fight against racism, delivered a video address.

The 34-year-old spoke about the hard work, discipline and sacrifice it took for him to go from country kid to AFL superstar and said he hoped others could follow in his footsteps.

"I was shy growing up. I've learnt over time, and a large part of that learning is about standing up for things I believe in," Goodes said.

"I really hope people are inspired and find the courage to stand up for themselves in the way that I was able to do."

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NT police search for boy taken by croc

A crocodile is believed to have taken a 12-year-old boy missing from a Northern Territory billabong. Source: AAP

A CROCODILE is believed to have taken a 12-year-old boy missing from a Northern Territory billabong.

Another boy, also 12, swimming in the billabong was bitten by a crocodile, police say.

Police and Park Rangers are conducting a search and rescue mission by land and boat after being alerted to the incident at Kakadu National Park on Sunday afternoon.

Acting Commander Michael White said police believed the missing boy was taken by a crocodile as he and a number of other young boys were swimming in the billabong.

"One other boy, also aged 12, was bitten on the arm by the crocodile and has received medical treatment from attending St John Ambulance members," Mr White said.

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Richie, Cyrus perform at Clive Davis gala

JOHN Fogerty performed with the Foo Fighters and Jennifer Hudson. R. Kelly debuted a tribal song in tribute to Nelson Mandela. And Miley Cyrus basically called the audience old.

Clive Davis' annual pre-Grammy gala drew stars who are set to shine at the Grammy Awards on Sunday in the US and featured performances from musical dynamos including Lionel Richie and newcomers such as Lorde and Macklemore & Ryan Lewis.

Neil Diamond, Taylor Swift, Rihanna, Metallica, Joni Mitchell, Stevie Wonder, Smokey Robinson and Rod Stewart were among the A-listers who attended the Beverly Hilton for the four-hour event.

Cyrus opened her set with the upbeat Get It Right, which didn't earn a rousing applause.

"I hope y'all feel better than y'all look," said Cyrus, sporting a mini-dress under her fluffy coat.

"Maybe this song is better for this crowd," she said before performing Dolly Parton's Jolene, which earned the 21-year-old a louder applause.

Robin Thicke had the night's funniest moment when he sang Blurred Lines with Pharrell Williams and T.I., who danced happily onstage. Even Jane Fonda danced along.

Most of the performers impressed: Thicke and wife Paula Patton stood up the entire time Fogerty killed on the guitar; Richie got the crowd up during Easy and All Night Long (All Night); and R. Kelly was backed up by African dancers, a drummer and a choir.

Celebrities mixed and mingled: Swift's table included R&B singer Tyrese; Gloria Estefan sat with Cyndi Lauper and the Osbournes; and Alicia Key hung out with Jamie Foxx.

The crowd sang happy birthday to Keys, who celebrated her 34th birthday on Saturday.

Davis, 81, closed the night with videos of performances of Whitney Houston.

"We all know that Whitney was the greatest contemporary singer in the world," said Davis, who discovered Houston and launched her career at his annual pre-Grammy gala.

"I don't want the world to forget that, and I don't know anyone in this room to forget that."

Houston died the night before the 2012 Grammy Awards.

The 56th annual Grammy Awards will air live from the Staples Center on Fox8 with the red carpet arrivals at 10am.

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Uni students want more say on services

STUDENTS still aren't getting enough say in how their money is spent on university services but their union is hopeful that will improve.

A National Union of Students (NUS) report finds the funding situation at three-quarters of student organisations has improved since the introduction of the student services and amenities fee (SSAF) two years ago.

But less than one in four organisations said they'd recommend their university's method of consulting on how to spend the money in 2013.

This was a big drop from the previous year.

As well, only four out of the 31 student organisations surveyed said they got more than half the SSAF money their university collected.

NUS president Deanna Taylor said the guidelines around student consultation on how to spend the money were not clear.

Many universities were putting together committees to decide on spending SSAF funds that were stacked with university representatives at the expense of students.

Other concerns were the lack of transparency and clear timetables for consultation.

"We need students to be having a very loud and clear voice in how their money is spent so that we make sure it goes to what they want it spent on and they get the most out of the fee," she told AAP.

"We just need to keep reminding universities to engage in meaningful consultation and to respect the wishes of student representatives."

But she was hopeful new guidelines starting in 2014 would improve the situation.

The $273 annual services and amenities fee was instituted in 2012.

It can only be spent on certain campus services, not including political causes, and can be added to a student's HECS-HELP debt.

The NUS found the most common student-run services funded were student newspapers, advocacy services, sporting and non-sporting clubs, concerts, and university diaries.

The most common services jointly run by students and universities were orientation activities, international student support, welfare, and bookshops.

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