Rudd's Hobart announcement deflating

PRIME Minister Kevin Rudd's affection for Tasmania seems a lot stronger than Labor's spending commitment to the troubled island state.

There was great expectation ahead of the prime minister's visit on Saturday, following big spending coalition promises for the state amid rising unemployment and an ailing economy.

But in Hobart all that was on offer was a vague promise from a re-elected Labor government to spend $5 million on a showground redevelopment, leading to 140 jobs.

"We still have a big challenge here is Tasmania and jobs are number one and core here in the island state," Mr Rudd told reporters at Hobart Showground, in the seat of Denison.

To soften the blow, Mr Rudd championed his "love" for Tasmania and said Labor was committed to the state's future, citing the launch of the National Broadband Network as proof of its backing.

"When there's a jobs problem in Tasmania we are there to step in and help," Mr Rudd said.

Asked when the jobs would flow from the funding announcement, Mr Rudd said he didn't want to get into the "micro-planning" of the project.

The commitment follows a promise by Opposition Leader Tony Abbott in Tasmania earlier in the week to pay employers to they hire people who have been on the Newstart allowance for six months or more and continue to employ them full time for at least six months.

The pilot plan would cost $6.5 million over the forward estimates to create 2,000 jobs.

Denison is held by independent Andrew Wilkie who is expected to retain the seat at the September 7 poll.

Labor's candidate Jane Austin is contesting the seat.

"I have never been a critic of Mr Wilkie and I don't intend to be a critic now, but what I'm saying is that in an election everyone deserves to have a choice," Mr Rudd said, in a half-hearted endorsement for Ms Austin.

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Obama pledges overhaul on surveillance

President Barack Obama is pledging to overhaul US secret surveillance. Source: AAP

PRESIDENT Barack Obama is pledging to overhaul US secret surveillance, promising greater oversight and transparency and insisting he has no interest in snooping on ordinary citizens.

Weeks after former US contractor Edward Snowden leaked details of widespread snooping on private internet and telephone use, Obama stood firm on Friday in denying any abuse but acknowledged he needed to address growing concerns.

"All these steps are designed to ensure that the American people can trust that our efforts are in line with our interests and our values," Obama told a news conference.

"And to others around the world I want to make clear once again that America is not interested in spying on ordinary people," he said.

Obama said he would ask Congress to reform one of the most controversial sections of the Patriot Act passed in the aftermath of the September 11, 2001 attacks - Section 215, which gives the government access to telephone and other records of its citizens.

In a newly declassified memo, the Justice Department said the program recorded data - such as duration and numbers - of phone calls feared to involve "terrorists" but did not record the conversations.

Obama also called for the start of debate in the court that authorises surveillance, which now only receives requests from the government without hearing any counter-arguments as is customary in virtually all of the US judiciary.

Obama said the administration would make a greater effort at transparency, including by starting a website that describes intelligence activities.

And he said he would appoint a board of outside experts who will look more closely at surveillance programs and issue a report by the end of the year.

Controversy has grown since Snowden, a former US government contractor who fled to Russia, revealed some of the more sweeping aspects of US surveillance on citizens' internet searches and telephone records.

Obama, who cancelled a summit with Russian President Vladimir Putin in part over Russia's decision to grant asylum to the 30-year-old, insisted that he has always tried to prevent abuse of surveillance programs.

"I don't think Mr Snowden was a patriot," Obama said.

But Obama said of the Patriot Act: "Given the scale of this program, I understand the concerns of those who would worry that it could be subject to abuse."

On July 25 the House of Representatives rejected a bid to cut funding for some National Security Agency programs by a surprisingly narrow 205-217 vote, with an unlikely coalition of conservative Republicans and liberal members of Obama's Democratic Party voicing concern about citizens' privacy.

Representative Justin Amash, a libertarian Republican, said he hoped Obama was "serious" about reforms and vowed that dozens of lawmakers would press ahead.

But he wrote on Twitter that Obama's "claim that he was planning to reform these surveillance programs prior to the leaks is laughable".

A spokesman for House Speaker John Boehner, a Republican whose support will be critical to any reforms, criticised Obama.

"Much of any public concern about this critical program can be attributed to the president's reluctance to sufficiently explain and defend it," said the spokesman, Brendan Buck.

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Vegemite up, if GST rate increased

Kevin Rudd warned the price of a jar of Vegemite will rise by about 50 cents if GST is increased. Source: AAP

PRIME Minister Kevin Rudd says the price of an average jar of Vegemite will rise by about 50 cents, if the rate of the GST is increased.

Mr Rudd was on Friday attempting to warn Australians a Tony Abbott-led government would extend the GST to food, and/or raise the rate from 10 per cent.

Based on a higher rate of 12.5 per cent, the price of a carton of eggs would rise by 77 cents, a $4.17 jar of Vegemite would cost $4.69 and two litres of milk would be 54 cents more.

"I just think we called it for what it is," Mr Rudd told reporters in Melbourne.

"All I'm doing .. is saying if that's the case then people should know that that's 50 cents extra on a jar of Vegemite."

The opposition has denied it's planning to raise or extend the scope of the GST.

If it wins government, Shadow treasurer Joe Hockey agrees a planned broad-ranging tax review could look at the GST.

He also says any further proposals would be "taken to the people".

But Mr Rudd pointed to John Howard, saying the former Liberal leader had said Labor and the Democrats had punched a hole through the coalition's GST when they took out food.

"They are saying loud and clear there's a problem leaving food out," Mr Rudd said.

Mr Rudd also said he had not been briefed on Western Australia's budget, which forecasts the state getting a dwindling share of the commonwealth GST revenue.

He confirmed Labor wouldn't change the GST or the way GST revenue was distributed.

But he argued Mr Abbott appeared to say one thing in WA and a different thing in Tasmania.

"In Perth Mr Abbott says quietly to WA folks 'don't worry we are going to change the GST distribution system'," he said.

"Then (he) runs down to the Hobart and says 'by the way, nothing happening here, I'm not going to change a thing'."

Mr Rudd also said he had no plans to change the minerals resource rent tax (MRRT) despite revenues not living up to initial expectations.

"I am very concerned about the current state of the global economy and proposing a new tax change to the mining industry now the China mining boom is coming off," Mr Rudd said.

He said Treasury has worked through the numbers with the various mining companies, and he is sticking with their advice.

Reports also suggest Rio Tinto is asking for a refund on its initial MRRT payments.

"What I remember about Rio, in partnership with various other interests in the country, it embarked upon a wholesale campaign to destroy the resources super profits tax as it was back then," he said.

"I will leave everyone to their own conclusions about the extraordinary campaign of 2010."

Mr Rudd also reminded Mr Abbott that he has four days before Treasury and Finance release their independent assessment on the budget and economy with the Pre-election Election and Fiscal Outlook (PEFO) on Tuesday.

"Four days ... for him to come clean on the $70 billion of cuts to jobs, health and education he has in his back pocket," Mr Rudd said.

Mr Abbott has repeatedly denied that the coalition's budget has a $70 billion black hole, while confirming on Friday that he will be using PEFO to calculate the opposition's election promises.

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WA man jailed over girl's bashing murder

A MAN who fatally bashed a 14-year-old girl's head in with a rock after a two-day drinking binge has been sentenced to a minimum of 12 years in prison.

Karlton Attwood, 21, who was in a relationship with the girl, pleaded guilty to murdering her after a drunken argument at Newman, in Western Australia's remote north, last year.

WA's Supreme Court was told the girl had hit Attwood with a stick as they walked along a road, and he retaliated by picking up a large rock and striking the girl at least four times.

The teenager, who was not named for cultural reasons, suffered horrific injuries to her head and defensive injuries to her hands and arms.

Attwood left her body in the bush after failing in an attempt to carry her to his house.

After covering her with a blanket, he fell asleep with the girl's head in his lap, and when he awoke, she was almost certainly dead.

In interviews, Attwood said he had drunk 15 cans of full strength beer on the night before the attack, and 10 cans of beer and bourbon on the night the girl died.

Justice Michael Corboy said while it was accepted Attwood did not intend to kill the girl, her violent death was a tragedy that had devastated her family.

"You acted in a rage for more than just a moment - against a girl who was vulnerable and unable to protect herself," Justice Corboy said.

Attwood was sentenced to a mandatory life sentence, with a minimum of 12 years in prison.

He is also likely to receive tribal punishment on his return to the Newman area, Justice Corboy said.

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Nudgee students lucky after NT crash

A QUEENSLAND teacher and seven students are lucky to have escaped serious injury after their four wheel drive rolled at least three times on a remote Northern Territory road.

The year 10 students from St Joseph's College, Nudgee were on a school excursion about 230km west of Alice Springs when the accident occurred on Wednesday afternoon.

Police say the teacher, who was driving, lost control of the 4WD and it rolled at least three times on the Mereenie Loop Rd.

Nudgee principal Daryl Hanaly says the teacher and students were treated for bruises and scratches in hospital, but the most serious injury is a suspected fractured ankle.

"We are indeed a very fortunate community to have this accident and not to have any significant injury or fatality," he told AAP.

"We've done all the things which you'd expect us to, we've contacted all parents at the school and started bringing the boys involved home."

When asked if the school would investigate the accident, the principal said they were obliged to do so.

"It's a workplace health and safety issue, we certainly met all the requirements prior to the trip, we went thought a risk assessment and so on," Mr Hanaly said.

"We currently are awaiting the police report."

"But we will conduct our own investigation, absolutely.

Police were investigating the cause of the crash, but said that alcohol and speed were not factors.

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'Cruelty' behind preference deals: Milne

THE major parties have moved closer together on "cruelty" and that will be reflected in their preference deals, Greens leader Christine Milne says.

The coalition is reportedly considering an agreement with the ALP that would put the Greens last in the minor party's most winnable lower house seats, Melbourne and Grayndler.

The move would mean Greens deputy leader Adam Bandt facing an uphill battle to hang onto his party's only House of Representatives seat.

The Greens are also given a chance in Anthony Albanese's Sydney seat of Grayndler, which the deputy prime minister holds by 4.2 per cent.

Senator Milne said the major parties were moving closer together on policy.

"They are close together on cruelty to refugees and their horrible solution of warehousing people on Manus Island and at Nauru," she told reporters in Hobart.

"They're very close together in terms of destroying the Tarkine (wilderness in Tasmania).

"They are close together in terms of refusing to lift Newstart, they're refusing to support single parents.

"They have moved together on all those things so it wouldn't be surprising if they preferenced each other ahead of a progressive alternative."

Senator Milne said voters should make their own decisions about who to give their preferences to on polling day.

"If you want to have an Australia that is respected internationally, which is a caring society and which looks after the environment, then the Greens are the obvious choice," she said.

The Greens are meanwhile urging independent Senator Nick Xenophon to do a preference swap in South Australia to head off a coalition bid to take control of the Senate.

SA Greens Senator Sarah Hanson-Young is fighting to retain her seat with the final SA spot likely to go to her or the third candidate on the Liberal ticket.

Former Greens leader and party heavyweight Bob Brown was in Adelaide on Thursday urging Senator Xenophon to do a preference deal to ensure both the "progressive" senators were returned.

"I'm calling on Nick Xenophon to make it clear that he will be giving preferences to Sarah ahead of the coalition," Dr Brown said.

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China fines baby formula firms

CHINA has fined six mostly foreign baby formula companies a total of $US108 million ($A120.7 million) for price-fixing, the official Xinhua news agency reports.

The firms fined were Mead Johnson and Abbott from the US, Dumex, a subsidiary of France's Danone, Friesland of the Netherlands, New Zealand giant Fonterra - at the centre of a health scare this week - and China's Biostime, Xinhua said on Wednesday, citing the National Development and Reform Commission (NDRC).

In a corporate statement, Mead Johnson said it had been handed a penalty of 204 million yuan ($A36.88 million).

Biostime said in a filing to the Hong Kong stock exchange that it had been given a 163 million yuan ($A29.47 million) fine.

Fonterra, which has had to recall products in several countries this week over a botulism scare, was fined 4.5 million yuan ($A813,000), it said.

It cooperated fully with Chinese authorities and accepted their decision, it said.

"The investigation leaves us with a much clearer understanding of expectations around implementing pricing policies which is useful as we progress our future business plans," Fonterra's president for Greater China and India, Kelvin Wickham, said in a statement.

He added that Fonterra's fine was "in the lowest range" of the penalties handed out.

The NDRC, China's top economic planner, launched the investigation into high prices it said resulted from a monopoly-like situation, mostly targeting overseas firms. Several of them announced price cuts last month.

Xinhua said that three companies - Wyeth, which is owned by Swiss giant Nestle, Japan's Meiji, and Chinese firm Beingmate - had been exempted from punishment in the inquiry.

The NDRC said they provided important evidence and carried out active self-rectification, it added.

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Qld jail worker accused of raping inmates

A QUEENSLAND prison worker accused of raping female inmates has been granted bail.

Police allege the 51-year-old trade instructor forced himself on prisoners at the Brisbane Women's Correctional Centre.

He's been charged with three counts of rape and 12 counts each of sexual assault and abuse of office.

He also faces charges of attempted sexual assaults and attempting to procure a sexual act by intimidation.

The man was granted bail in the Brisbane Magistrates Court on Wednesday and his case was adjourned until August 28.

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al-Qaeda sparked US embassy closures

INTERCEPTS between al-Qaeda chief Ayman Al-Zawahiri and the leader of the group's Yemen affiliate sparked Washington's closure of US missions overseas and a global travel alert.

The New York Times said in its online edition on Monday that the electronic communications last week revealed that Zawahiri had ordered Nasser al-Wuhayshi, the head of al-Qaeda in the Arabian Peninsula, to carry out an attack as early as last Sunday.

CNN, meanwhile, reported that Zawahiri told Wuhayshi to "do something", causing officials in both Washington and Yemen to fear an attack was imminent.

As a result, roughly two dozen US diplomatic posts were closed across the Middle East on Sunday.

The State Department, acting "out of an abundance of caution" has extended some of the closures, saying 19 diplomatic outposts will remain shut until Saturday.

Al-Qaeda in the Arabian Peninsula is seen by Washington as the most active branch of the jihadist network.

Several US allies, including Britain, France, Germany and Norway have also announced closures of some of their missions in the region.

The US closure list includes 15 embassies or consulates that were shut on Sunday - the fifteenth anniversary of Al-Qaeda's attacks on US embassies in East Africa - as well as four additional posts.

Lawmakers in Washington described the threat level as very serious.

Michael McCaul, chairman of the House Homeland Security Committee dubbed the intelligence "probably one of the most specific and credible threats I've seen, perhaps, since 9/11".

Saxby Chambliss, vice chairman of the Senate Intelligence Committee, said that the level of chatter among alleged terrorists was "very reminiscent of what we saw pre-9/11".

General Martin Dempsey, chairman of the US Joint Chiefs of Staff, told ABC News the threats were "more specific" than previous threats, although the exact target was unknown.

ABC News cited an unnamed US official as saying there was concern Al-Qaeda might deploy suicide attackers with surgically implanted bombs to evade security.

The posts to be closed include Abu Dhabi, Amman, Cairo, Riyadh, Dhahran, Jeddah, Doha, Dubai, Kuwait, Manama, Muscat, Sanaa, Tripoli, Antananarivo, Bujumbura, Djibouti, Khartoum, Kigali and Port Louis.

New closures were announced in Madagascar, Burundi, Rwanda and Mauritius. The outposts that are reopening include those in Afghanistan, Algeria, Bangladesh, Mauritania, Iraq and Israel.

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Victorians heed anti-smoking messages

Victoria's smoking rates have hit an all-time low with fewer young people taking up the habit. Source: AAP

ANTI-SMOKING advertising, bans on tobacco marketing and increased education have helped drive Victoria's smoking rates to a record low.

Cancer Council research shows the number of people smoking regularly - either daily or weekly - has dropped to 13.3 per cent for 2012, down 1.1 per cent on 2011.

Cancer Council Victoria CEO Todd Harper was pleased with the downward trend, but said continued efforts could result in decreasing the regular smoking rate to nine per cent in the near future.

"What's pleasing in recent years is that rates of decline are continuing - in fact they have stepped up," he said.

"The fact that we are not seeing any slowing shows the impact of the things that we are doing; increasing price, reducing tobacco industry marketing, smoke-free environments and public education are all having their impact."

Quit Victoria executive director Fiona Sharkie said they were working hard to put themselves out of a job, and praised the federal and state governments on their anti-tobacco measures.

"We are keeping the price of cigarettes high, continuing to run anti-smoking television advertisements and providing more smoke-free areas. That's the key to bringing the smoking rate down," she said.

Victorian Health Minister David Davis recommitted to the government's promise to outlaw smoking at children's playgrounds, skate parks and children's sporting events later this year.

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