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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