Victim of Pemex explosion death toll to 38

MEXICO'S federal Health Department says another person injured by last week's explosion at the headquarters of the country's state-owned oil company has died, raising the death toll to 38.

A statement issued on Friday says 19 people remain hospitalised, two of them in critical condition.

The January 31 blast at one of the buildings at the Petroleos Mexicanos complex in Mexico City also injured 120 people.

Executives at Pemex have said a water-heating system may have leaked methane gas into a tunnel beneath the headquarters for more than seven months.

They say the blast could have been set off by a maintenance crew's improvised lighting system.

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Gillard has a bite of bet-losing NZ apple

UPHOLDING her end of a two-year-old bet on the Rugby World Cup has left a bitter taste in the mouth of Prime Minister Julia Gillard.

Ms Gillard made a bet with New Zealand's Prime Minister John Key on the outcome of the 2010 Rugby World Cup - a deal that would see the leader of whichever country lost eat an apple from the winning country.

Luckily for Mr Key, the All Blacks reigned supreme.

The bet was symbolic of the end of Australia's 90-year ban on New Zealand apples, following a World Trade Organisation ruling that it must allow imports.

Ms Gillard finally honoured the bet during dinner with Mr Key, his wife Bronagh, and Ms Gillard's partner Tim Mathieson in Queenstown, New Zealand, on Friday night.

"I'd have to say, of course, Australian apples are better," Ms Gillard said.

She added that Mr Key had tried to serve her New Zealand apples on multiple occasions.

The two leaders laughed over the bet when they posed with the Cricket World Cup trophy in Queenstown on Saturday.

The two countries will share hosting rights to the event in 2015.

Despite the New Zealand Black Caps' poor performance of late, Mr Key said he was hopeful they could take out the cup in two years' time, but admitted Australia was in a stronger position.

While Ms Gillard was backing the Aussie side, she said she would not be making any more bets on sport with Mr Key.

"I think I've learnt my lesson," she told media, with a laugh.

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UK keeps rate low despite recession threat

The Bank of England has voted to keep its key interest rate on hold at a record-low 0.5 per cent. Source: AAP

THE Bank of England has voted to freeze its key interest rate at a record-low 0.5 per cent and maintain the level of its quantitative easing (QE) cash stimulus, despite the threat of a triple-dip recession in Britain.

The central bank said in an unexpectedly long statement that its Monetary Policy Committee (MPC) had voted to maintain its emergency QE stimulus at STG375 billion ($A572 billion).

The BoE said overall economic activity in Britain had been "broadly flat" over the past year, despite worries that the economy could be heading for the third recession in five years.

The stimulus has been used to try and help boost economic output, which unexpectedly shrank by 0.3 per cent in the final quarter of 2012. However, the economy flatlined over the entire year with zero growth.

Across in Frankfurt, the European Central Bank also opted to maintain its main interest rate at a record-low level of 0.75 per cent, amid ongoing debt strains in the crisis-hit eurozone.

The central bank said 12-month inflation would rise further in the near-term and could remain above its two per cent target for the next two years. However, it was then forecast to return to "around" the target as price pressures fade.

Policymakers also mulled withdrawing QE stimulus, to pull inflation lower, but decided it would risk endangering any recovery. QE can risk stoking inflation as it is tantamount to printing money.

Thursday's decisions were in line with expectations and came as incoming BoE governor Mark Carney called for the bank to ready plans for a smooth eventual withdrawal of QE stimulus to avoid major disruption on markets.

Canadian central bank chief Carney - who succeeds BoE boss Mervyn King in July - set out his views on QE before a group of cross-party MPs on parliament's Treasury Select Committee.

"The bank will need to design, implement and ultimately (manage an) exit from unconventional monetary policy measure in a manner that reinforces public confidence," Carney said in written testimony to the committee.

"The exit needs to be achieved without disrupting the gilts (bonds) market," he said ahead of the latest decision.

Quantitative easing involves a central bank creating cash to buy assets such as government and corporate bonds, with the aim of boosting lending by retail banks and stimulating economic activity.

The BoE's main lending rate has stood at the record-low 0.5 per cent since March 2009, when it also embarked on its radical stimulus policy.

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Foreign troops at Mali's rebel-held mount

FRENCH and Chadian troops have pushed to the far northeast of Mali, up to the mountain range where Islamists fighters are thought to be holed up with seven French hostages.

The joint force arrived late on Thursday at the town of Aguelhok, 160km north of the town of Kidal, near Mali's border with Algeria, Malian sources said.

Nearly a month after France sent in the first fighter jets and attack helicopters, it has largely driven the rebels into remote mountains in the far northeast. But the threat from the rebels is still very real.

"French and Chadian soldiers have left Kidal and are currently patrolling in Aguelhok," Malian Captain Aliou Toure told AFP.

"The French and Chadian soldiers left in strength by road," said an official with the administration in Kidal. "They arrived at Aguelhok and are then heading for Tessalit." Tessalit lies even closer to the Algerian border.

Both towns had been targeted with repeated French air strikes over the last few days aimed at knocking out Islamist bases there, French military spokesman Colonel Thierry Burkhard said.

The two towns lie in the Adrar des Ifoghas massif, in the far northeast, a craggy mountain landscape honeycombed with caves, where the insurgents are believed to have fled with seven French hostages.

One of the Islamists groups, the Movement for Oneness and Jihad in West Africa (MUJAO), said in a message to AFP Thursday that it had "created a new combat zone" by organising attacks on military convoys and placing landmines.

A landmine blast on Wednesday between the northern towns of Douentza and Gao killed four civilians.

An officer with Mali's paramilitary police initially said the four dead were Malian soldiers, but later said they were civilians returning from market.

That explosion came after a similar blast in the same area on January 31 claimed the lives of two Malian soldiers.

"MUJAO is behind the explosion of two Malian army cars," the group's spokesman Abu Walid Sahraoui said in a text message to AFP.

He called on Malians to stay away from main roads, which he said had been heavily mined.

French-led forces continue to come under attack in reclaimed territory, including rocket fire directed at them Tuesday in Gao, the largest city in the north.

The shift to guerrilla tactics by the al Qaeda-linked groups, which for 10 months occupied Mali's vast desert north, came as France sought to hand over its four-week-old intervention to UN peacekeepers.

France had moved in as the rebels pushed south, sparking fears that they might try to advance on the capital, Bamako.

Large numbers of troops from France, Mali and Niger have been patrolling Gao, and French helicopters have been monitoring the road between Gao and Douentza, 400km to the southwest.

Paris is keen to hand over the military burden of an operation the defence ministry said has already cost France 70 million euros ($A91.90 million) , with the figure rising by 2.7 million euros every day.

France now has 4,000 troops in Mali, as many as it had in Afghanistan at the peak of its deployment in 2010.

After announcing plans to start withdrawing its soldiers in March, France on Wednesday called for a United Nations peacekeeping force to take over.

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City circle trains closed on the weekend

INNER Sydney train stations including Central, Town Hall and Circular Quay will be shut down over the weekend for trackwork.

RailCorp says major cleaning work will take place at Redfern, Central, Town Hall, Wynyard, Circular Quay, St James and Museum stations on February 9 and 10.

RailCorp will also complete infrastructure upgrades including the installation of new track, signals and overhead wiring.

Buses will replace trains on the City Circle and Airport lines, while other lines have been modified.

Commuters are urged to allow for extra travel time and to check CityRail's website for information.

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Govt ordered to release Hobbit documents

The Ombudsman has ordered NZ ministers to release documents about the Hobbit movie deal. Source: AAP

THE Ombudsman has ordered the NZ government to release documents about the deal it struck to ensure the Hobbit movies were made in New Zealand.

Radio New Zealand applied for the documents in November 2010 under the Official Information Act but ministers refused on the grounds they were commercially sensitive.

The broadcaster appealed the decision and on Thursday Ombudsman David McGee ruled 18 documents, including emails between Hobbit director Sir Peter Jackson and government officials, must be released.

The government secured the three movies by changing employment laws and beefing up the tax rebate sweetener for the productions.

Unions fought the law changes and the Labour Party accused the government of chequebook legislation.

In his 29-page ruling Mr McGee says the information in the documents doesn't pose serious commercial risks.

Ministers must hand over the documents on or before March 1 unless the cabinet overrules Mr McGee by invoking a veto which was introduced in 1987 but has never been used.

The first of the Hobbit trilogy, An Unexpected Journey, premiered in Wellington in November and has been a huge success internationally.

NZ Prime Minister John Key says production generated 3000 extra jobs and New Zealand gained priceless tourism publicity.

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8.0 quake hits Solomons, generates tsunami

A MAJOR 8.0 magnitude earthquake is feared to have flattened villages in the Solomon Islands and triggered a tsunami with destructive potential for Pacific nations' coasts, monitors say.

Tsunami watches were in effect as far afield as Hawaii, the Pacific Tsunami Warning Centre said, and New Zealand was also on guard. But monitors said there was no threat to Australia.

The US Geological Survey said the quake struck at 1212 AEDT on Wednesday near the Santa Cruz Islands in the Solomons, which have been hit by a series of strong tremors over the past week, at a depth of 5.8 kilometres.

A powerful aftershock of 6.4 magnitude was also recorded.

"Sea level readings indicate a tsunami was generated," the Hawaii-based Pacific centre said.

"It may have been destructive along coasts near the earthquake epicentre and could also be a threat to more distant coasts."

Locals in the Solomons capital Honiara, 580 kilometres from the epicentre, said the quake was not felt there, but some villages were destroyed, according to a hospital director.

"The information we are getting is that some villages west and south of Lata along the coast have been destroyed, although we cannot confirm this yet," the director at Lata Hospital on the main Santa Cruz island of Ndende, told AFP.

A staff member at the Solomons National Disaster Management Office said officials were concerned about the eastern province of Temotu.

"That's the province, which if it is going to have an effect, then they will be the first people to be impacted," the official, who did not wish to be named, told AFP.

"They felt the quake."

He said first reports from the area were that there was a tsunami wave, but he had no further information.

He added that the national disaster operation centre had been activated and they were trying to contact those in Temotu province.

In 2007, a tsunami following an 8.1-magnitude earthquake killed at least 52 people in the Solomons and left thousands homeless.

The tsunami warning was in effect for the Solomon Islands, Vanuatu, Nauru, Papua New Guinea, Tuvalu, New Caledonia, Kosrae, Fiji, Kiribati, and Wallis and Futuna.

Australia's earthquake monitoring agency and the Pacific centre said a wave measuring three feet (90 centimetres) had been recorded at Lata, on the main Santa Cruz island of Ndende.

"We know that a tsunami has been created," Geoscience Australia seismologist David Jepsen said.

He said depending on the location of the quake, bigger waves could hit elsewhere.

"It's a big earthquake anyway in terms of just the shaking," he said.

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Greens urge Burke to back CSG bill

ENVIRONMENT Minister Tony Burke is being urged to support an Australian Greens bill giving him more power over coal seam gas (CSG) approvals, after expressing frustration at NSW for rejecting new national protections.

Key independent MP Tony Windsor is demanding the Commonwealth impose stricter environmental assessments on his home state to protect water quality, telling Fairfax Media "it's D-Day" and NSW isn't serious about the issue.

Mr Burke on Wednesday voiced his frustrations at NSW demands for a different set of rules on CSG mining, saying he was exploring "all the options" to force the state to support new federal protocols.

Greens environment spokesman Larissa Waters urged Mr Burke to adopt her 2011 bill adding a 'water trigger' to federal laws.

The trigger, which Mr Windsor is also calling for, would give the government greater approval powers based on the potential impact on water resources.

"The beauty of my bill is that it doesn't rely on the states agreeing," Ms Waters told reporters in Canberra.

"My bill would clearly say that the federal government has responsibility to look at the water impacts of coal seam gas mining.

"In effect it would not bypass the states but would be an additional check and balance."

Mr Burke said the new federal CSG protocols would overhaul the approvals system so the government would pay for scientific analysis, not the mining companies.

"Queensland and Victoria, South Australia as well, have fully signed up to rules that guaranteed that information is part of their system," Mr Burke told reporters.

"I am deeply concerned as to why... NSW is wanting to do fewer checks than other states."

Mr Burke said the government was seeking advice on whether to introduce new laws giving him greater powers over the states.

"(However), I don't have a determined view as to whether that's a correct path to go or not," he said.

He denied he was being forced to take a tough stance against NSW by Mr Windsor, on whose vote the government relies.

"The frustration with NSW on this one has been building for some time," Mr Burke earlier told ABC Radio.

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Newman doesn't want towns cut off again

QUEENSLAND Premier Campbell Newman says steps must be taken to make sure no communities are cut off during natural disasters such as the state's recent floods.

Several towns south of Gladstone were unable to communicate with emergency services as rivers were peaking last week.

Mr Newman said the road problems and communications breakdowns that occurred should not be allowed to happen again.

"The roads were cut; the communications were cut," he told reporters during a visit to Gladstone on Tuesday.

"That's what I'm talking about now, about how we can in the future try to ensure that we can have communications that are there for emergencies; that we try to ensure that roads are not cut, isolating people in that way.

"We're not just going to sort of accept that's the way it should happen in the future."

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RBA leaves cash rate on hold

The Reserve Bank left the cash rate on hold at 3.00 per cent at its February board meeting. Source: AAP

THE Reserve Bank of Australia (RBA) has kept the cash rate at three per cent, saying that fears about global economic growth have abated.

The decision was widely expected by the market, especially after the release of better economic data from China and the US in recent weeks.

The previous interest rate move was a quarter of a percentage point reduction in December. In 2012 the central bank cut the cash rate by total of 1.25 percentage points.

In a statement accompanying the decision, RBA governor Glenn Stevens said the fiscal cliff in the US has been avoided, Chinese growth had improved and the financial pressures in Europe have eased.

"Sentiment in financial markets has continued to improve, with risk spreads narrowing and funding conditions for financial institutions becoming more favourable," Mr Stevens said after the RBA's first board meeting for the year.

"In Australia, most indicators available for this meeting suggest that growth was close to trend in 2012, led by very large increases in capital spending in the resources sector, while some other sectors experienced weaker conditions.

"Looking ahead, the peak in resource investment is approaching. As it does, there will be more scope for some other areas of demand to strengthen."

Mr Stevens said the full impact of the four interest rate cuts in 2012 would take more time to become apparent.

"There are early indications of a pick-up in dwelling construction; and savers are starting to shift portfolios towards assets offering higher expected returns," he said.

"On the other hand, the exchange rate remains higher than might have been expected, given the observed decline in export prices, and the demand for credit is low, as some households and firms continue to seek lower debt levels."

Three per cent is the lowest the RBA's cash rate has been since early October 2009, during the global financial crisis.

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Gillard seeks new spark for Labor

Labor has sworn in six new ministers ahead of the start of the parliamentary year. Source: AAP

PRIME Minister Julia Gillard is starting the 2013 parliamentary year with a new Labor team as latest opinion polls show the government trailing the opposition.

The Labor front bench, which was reshuffled after the retirements of Attorney-General Nicola Roxon and Senate leader Chris Evans, was sworn in at Government House on Monday morning.

On Monday afternoon, cabinet minister Stephen Conroy is expected to be endorsed at a caucus meeting to replace Senator Evans as government Senate leader.

Finance Minister Penny Wong is expected to replace Senator Conroy as deputy Senate leader.

Governor-General Quentin Bryce swore in the six new ministers and three parliamentary secretaries, ahead of parliament resuming for the year on Tuesday.

The key promotions are cabinet secretary Mark Dreyfus to attorney-general and Mike Kelly into the defence materiel portfolio.

Brendan O'Connor takes over the immigration ministry, while Chris Bowen replaces Senator Evans as minister for tertiary education and skills.

Labor candidates had gathered in Canberra on Sunday for a briefing with Ms Gillard and strategists ahead of the September 14 federal election.

However, two polls published on Monday, following a week of scandal and intrigue, have deflated expectations of a possible election win.

The Galaxy poll shows the coalition on 54 per cent of the two-party vote.

Labor's primary vote of 35 per cent puts it 13 points behind the Liberal-National position.

The Newspoll has Labor's primary support at 32 per cent and the coalition's vote at 48 per cent.

The two-party vote was 56-44 to the coalition.

Ms Gillard's support as preferred prime minister fell from 45 per cent to 41 per cent, while Mr Abbott's support rose six points to 39 per cent.

It is the closest preferred prime minister result since September 2012, and the highest result for Mr Abbott since July.

The polls were conducted after the arrest last week of former Labor MP Craig Thomson over the alleged misuse of union member funds, disquiet over the two ministerial retirements and the surprise announcement of an election date seven months out.

Senior Liberal Christopher Pyne says voters have woken up to Ms Gillard and Labor.

"The prime minister has had a horror start to the year," Mr Pyne told Sky News.

"It couldn't really get much worse."

Cabinet minister Anthony Albanese said as the election draws closer voters will more closely scrutinise the opposition's "failures".

"I am very confident we can turn it around," Mr Albanese told ABC Radio.

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Ciggie smugglers fined almost $8 million

Two men have been fined nearly $8 million for smuggling illegal tobacco products into Australia. Source: AAP

TWO Sydney men have been fined nearly $8 million for smuggling prohibited tobacco and cigarettes into Australia.

Customs and Border Protection says Dory and Ronnie Karam tried to import a container with a declared cargo of shoes on August 2, 2007.

Customs officers found 150,000 cigarettes and 12,926 kilograms of unprocessed tobacco leaf inside.

In the NSW Supreme Court on Friday, the Karams were convicted of attempted smuggling and other offences and fined $7,954,914, customs said in a statement.

National Manager of Investigations, Kingsley Woodford-Smith, warned of the seriousness of cigarette smuggling and importing illicit tobacco.

"This was an attempt to deprive the government of legitimate revenue," Mr Woodford-Smith said.

"The large penalty incurred should be a warning for others thinking of committing similar crimes."

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Release boys in Tassie detention: Milne

MORE than 100 young asylum seekers at the Pontville detention centre in Tasmania should be released into the local community, Australian Greens leader Christine Milne says.

"They should be cared for in the community. They should be able to go to school and that is the best place for them," Senator Milne told reporters in Hobart on Sunday.

Senator Milne said she was confident Tasmanians would look after the 127 boys.

"Get them to school, and show them the humanity that we all show our own children," she said.

The government reopened the Pontville centre to relieve pressure on the onshore processing network late last year.

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More help for Qld flood clean-up

Queensland Premier Campbell Newman has announced two new appointments to lead the flood clean-up. Source: AAP

TWO more disaster co-ordinators have been announced to lead clean up efforts after the Queensland floods.

Premier Campbell Newman says Colonel Don Cousins will be responsible for the Northern Queensland region and Brigadier Bill Mellor for the Southern Queensland region.

It was announced last week that Deputy Police Commissioner Pointing would co-ordinate efforts in the Bundaberg/North Burnett region.

Mr Newman said increasing the number of co-ordinators allowed them to have a sharper focus on the communities they were responsible for.

"Each region has unique needs, and with the volume of work required, it makes sense that we divide responsibilities and spread the load," he said.

"The recovery will be a massive job and as each day passes we see more that needs to be done in towns and cities across the state."

Brigadier Mellor commanded the Australian Force in Somalia and was a key player in the strategic planning for the Australian intervention in Timor.

Colonel Cousins worked directly for the Chief of the Defence Force and the Chief of Joint Operations, conducting investigations in Afghanistan.

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