Confusion over why PM cancelled Bali trip

The federal government won't say why Prime Minister Tony Abbott cancelled a trip to Indonesia. Source: AAP

LABOR is demanding to know why Prime Minister Tony Abbott cancelled a planned trip to Indonesia, accusing him of further straining the relationship with one of Australia's closest neighbours.

Arrangements were being made for Mr Abbott to visit Bali early next week, where he'd been invited by Indonesian President Susilo Bambang Yudhoyono to attend a regional forum on open government.

But the trip has been put on ice, with speculation an asylum seeker operation underway northeast of Australia could be the reason behind the last-minute decision.

The prime minister's office has not confirmed why the visit was junked just days before the two leaders were expected to meet on the sidelines of the conference.

The invitation was seen as an opportunity to salvage relations damaged after a spying scandal late last year that saw Indonesia suspend high-level co-operation with Australia.

Shadow foreign affairs spokeswoman Tanya Plibersek is calling for answers.

"Rejecting this invitation at this late stage really does put extra strain on the relationship," she told reporters in Sydney on Saturday.

"It's very important that the prime minister discloses the reasons that he's really not going."

It's understood the trip was deemed too politically risky while Australian authorities were in the process of intercepting an asylum seeker vessel heading towards the mainland.

Turning back or towing an asylum seeker boat to Indonesia during the prime minister's visit could have caused embarrassment President Yudhoyono, sources say.

The Australian Greens said Mr Abbott's "cruel" asylum seeker policy had robbed Australia of a real chance to mend ties with Indonesia.

"That's the extent of the embarrassment that Tony Abbott is to Australia both domestically and internationally," Greens leader Christine Milne told reporters in Hobart.

"He's hoist on his own petard."

Finance Minister Mathias Cormann said there was nothing unusual or remarkable about the decision to cancel the trip, suggesting the impending budget was the reason.

"The prime minister is obviously very focused on his responsibilities here in Australia, 10 days out from our first budget," he told Sky News on Saturday.

Labor frontbencher Ed Husic rejected this explanation, accusing him of undermining Australia's foreign interests by snubbing Indonesia.

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Man abducts, attacks Qld woman in her car

A MAN has attacked a woman after jumping in her car at a north Queensland car wash and telling her to drive to an industrial area.

Police say the woman was cleaning her car in the early hours of Saturday morning when a man jumped in and told her to drive to a nearby industrial area.

When they stopped he snatched the keys from the ignition and the pair began to struggle.

But the sight of a patrolling police car caused the man to run away.

The woman was taken to hospital with cuts and abrasions to her face, back, legs and an injury to her arm.

Police are searching for the man.

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NSW police minister stands down

NSW Police Minister Mike Gallacher has stood down following evidence at a corruption inquiry. Source: AAP

NSW Police Minister Mike Gallacher has stood down from the ministry, pending the outcome of the NSW corruption watchdog's explosive inquiry into banned donations.

The announcement was made by barrister Arthur Moses SC at the Independent Commission Against Corruption hearing in Sydney.

He asked counsel assisting Geoffrey Watson SC to confirm he would pursue a corruption allegation against Mr Gallacher.

"Oh, yes," came Mr Watson's prompt reply.

"My learned friend has said that - I assume - having given it some thought," Mr Moses said.

"Having stated that, then the position of the minister, which will be announced shortly, (is that he) will stand aside as minister pending the outcome of the inquiry."

NSW Premier Mike Baird is expected to release a statement shortly.

The corruption watchdog earlier heard a top executive at Nathan Tinkler's Buildev group had Mr Gallacher and former Liberal frontbencher Chris Hartcher "on tap", thanks to tens of thousands in secret donations.

Mr Gallacher is the second cabinet minister and fifth Liberal MP to be sidelined as a result of the current inquiry, dubbed Operation Spicer.

The developments come only weeks after Barry O'Farrell's shock resignation as premier for providing misleading testimony at ICAC over an unregistered $3000 bottle of wine.

Mr Watson on Friday accused Mr Tinkler associate Darren Williams of hatching a corrupt scheme with Mr Gallacher and Mr Hartcher to funnel $66,000 from Buildev to the NSW Liberal Party.

Mr Williams is accused of arranging the payments in return for favourable decisions about a lucrative coal terminal proposal at Newcastle, which he agreed was worth "a fortune" to Mr Tinkler.

"You were paying good money to get good access to politicians," Mr Watson said, as phone records showing extensive contact between Mr Hartcher, Mr Gallacher and Mr Williams were flashed before the inquiry.

"I always had good access to politicians," Mr Williams replied.

"You had them on tap," Mr Watson pressed on.

"You could ring them any time for a favour."

It is alleged the controversial donations were funnelled via Mr Tinkler's stud farm Patinack and then through a slush fund set up by Mr Hartcher's staffer Tim Koelma.

It is alleged Mr Hartcher helped "work up" the crooked scheme but that Mr Gallacher was central to the plan.

Mr Baird is in Canberra for the Council of Australian Governments meeting.

The stunning new allegations came less than 24 hours after the emergence of a damning 2010 email exchange that implicated Mr Gallacher in the unfolding cash-for-favours scandal.

In one email, Mr Williams asked an associate of Mr Tinkler, David Sharpe, "which entity will I give Mike Gallagher (sic)".

Mr Sharpe replied: "Ask Nathan as I think it's best to come through patnack (in reference to Mr Tinkler's horse stud Patinack) get right away from property minning infristructure (sic)."

Developers have been barred from making political donations in NSW since 2009.

Another email sent by Mr Williams to Patinack Farm director Troy Palmer in November 2010 carried the subject heading: "Mate can you get the payments to Tim the Liberal Party please mate as there 2 months behind (sic)".

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Cyber extortion ring busted in Philippines

DOZENS of people have been arrested in the Philippines for their involvement in a giant, global Internet "sextortion" network, local police and Interpol say.

Victims in foreign countries were lured by people in the Philippines into giving sexually explicit photos or videos about themselves online, then been blackmailed for many thousands of dollars, the authorities said in a joint press conference in Manila on Friday.

"The scale of this extortion network is massive," the director of Interpol's Digital Crime Centre, Sanjay Virmani said.

"These crimes are not limited to any one country and nor are the victims. That's why international cooperation in investigating these crimes is essential."

Philippine police chief Alan Purisima said the 58 people arrested would be charged over a range of crimes, including engaging in child pornography, extortion and using technologies to commit fraud.

It was not immediately clear whether all 58 arrested were Filipinos, although authorities initially made no mention of any foreigners who may have been directly involved in the Philippines.

However, authorities emphasised the Philippines was not the hub of the global sextortion network, only that the current investigation had focused on the Southeast Asian nation.

Purisima said the scam typically involved someone posing as an attractive, young lady making contact with people overseas via Facebook and other social media, then seeking to establish a relationship with them.

"After getting acquainted with the victims ... they engage in cybersex, and this will be recorded unknown to the victims," he said.

"They then threaten to release it to friends and relatives."

He said victims had paid between 500 Philippines pesos ($A12) and 500,000 pesos ($12,075).

While he said elderly men were often targeted, children were also victims.

A Scottish police chief who also briefed reporters at the press conference said one boy in Scotland had committed suicide after being extorted.

He said the boy was 17 when he killed himself.

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Pink batts costings were 'drawn on napkin'

The royal commission into the Rudd government's home insulation program resumes on Thursday. Source: AAP

THE costings for Labor's home insulation program were drawn on the back of a napkin by a senior politician, possibly Kevin Rudd, and an industry representative, a former government contractor claims.

Troy Delbridge, a technical advisor for the scheme, has told a royal commission how he learned about the napkin when he asked a departmental colleague to see the program's costings.

Under-cross examination by counsel assisting Keith Wilson, Dr Delbridge said the senior politician who wrote on it might have been Mr Rudd.

"It was one the prime minister's inner circle, whether it was himself I'm not sure," Dr Delbridge told the inquiry.

"It was the kind of message that was going around that was 'you didn't hear that from me'."

Dr Delbridge said he believed the industry representative was Insulation Council of Australia and New Zealand (ICANZ) chief executive officer Dennis D'Arcy.

He said he ended up being provided with a basic spreadsheet of the costings, which he may still have.

Earlier, Dr Delbridge told the inquiry he was seen as a squeaky wheel, who was told to basically shut-up, when he raised concerns about safety aspects of the home insulation program.

The use of foil insulation was among his concerns.

When asked whether there was any discussion early in the program about whether certain insulation products shouldn't be used, he said the suitability of foil was discussed.

"Absolutely, and foil was the main example of that," he told the inquiry.

"We actually considered the banning of foil from the program because of the risks."

The three Queensland tradesmen who died under the scheme were installing foil insulation.

The $2.8 billion home insulation program has also been linked to the death of a NSW tradesman and more than 200 house fires.

The royal commission before Ian Hanger QC continues.

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Toronto mayor seeks substance abuse help

Toronto Mayor Rob Ford will go on leave to seek help for substance abuse, his lawyer says. Source: AAP

TORONTO Mayor Rob Ford will take a leave of absence to seek help for substance abuse, his lawyer says, as a report surfaced about a second video of the mayor allegedly smoking crack cocaine.

The Globe and Mail newspaper reported on Wednesday it had viewed a second video of Ford smoking what appears to be crack cocaine in his sister's basement.

The national newspaper reported two Globe reporters viewed the video from a self-professed drug dealer showing Ford taking a drag from a pipe early on Saturday morning.

The video is part "of a package of three videos the dealer said was surreptitiously filmed around 1.15am, and which he says he is now selling for 'at least six figures'," the paper reported.

News reports of the existence of an earlier video of Ford apparently smoking crack first surfaced last May, igniting a media firestorm around Ford.

The latest crack tape report comes as Ford's lawyer, Dennis Morris, said the mayor will take a leave of absence for substance abuse. Ford is seeking re-election in the October 27 vote.

Morris said he spoke to Ford earlier on Wednesday and said Ford accepted he had a problem.

"He acknowledges he has a substance abuse problem and he wants to do something about it," Morris told The Associated Press.

Ford, who launched his campaign for re-election earlier this year, acknowledged last year after months of denials that he smoked crack in a "drunken stupor" after police said they obtained a video that appears to show him smoking crack. The video has never been released to the public.

Ford has lurched from one scandal to another, becoming a national embarrassment for many Canadians.

The mayor has refused to resign, despite mounting pressure after a string of incidents, from public drunkenness to an appearance in another video that showed him threatening "murder" in an incoherent rant.

Toronto's city council has stripped him of most of his powers.

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Gold stars at refurbished Perth Mint

THE biggest, heaviest and most valuable gold bullion coin in the world is the centrepiece of a new permanent exhibition at the refurbished Perth Mint.

The piece is one tonne of 99.99 per cent pure gold - making it worth more than $50 million.

The coin, which is 80 centimetres in diameter and more than 12cm deep, depicts a red kangaroo surrounded by rays of sunlight.

West Australian Premier Colin Barnett said the $5.5 million redevelopment of Perth Mint, which was completed in two stages, was the biggest since it was founded 115 years ago.

Other items on display in the exhibition include more than $25 million worth of natural and refined gold, a rare opportunity to handle a solid gold bar worth more than $500,000, gold pours, the minting of Australian precious metal coins, and a multimedia heritage tour.

Perth Mint was established as a branch of Britain's Royal Mint in 1899.

Its primary functions of refining gold from the eastern goldfields and striking gold coinage continues today but at its refinery near Perth Airport, with precious metal coins struck onsite at the mint.

The Mint, which attracts almost 80,000 visitors a year, also issues the nation's official bullion and commemorative coins.

In 2012-13, Perth Mint refined more than 300 tonnes of precious metals, reported close to $3 billion worth of holdings in its depository, and sold 4.3 million gold, silver and platinum coins.

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WA's shark cull ends, but may return

The trial of WA's shark culling program is concluding, and could extend for a further three years. Source: AAP

BAITED drumlines that have caught more than 100 sharks off the West Australian coast are being pulled from the water with the conclusion of the state government's culling trial.

Data from the Department of Fisheries for the period from January 25 to March 16 shows 31 sharks were killed while a further 14 were found dead on hooks, including two mako sharks.

The vast majority of those caught were tiger sharks, but a blacktip and dusky whaler were also caught and released alive.

No great white sharks, which are responsible for most fatal attacks on humans, were caught.

While the controversial catch-and-kill policy targeted great white, bull and tiger sharks bigger than three metres, all but two of those that were found dead on hooks were smaller, including the makos, which measured only 1.7m and 2m.

Earlier this month, the state government applied to the commonwealth to continue the program for three more years.

That would see up to 72 baited drumlines set one kilometre off the metropolitan and southwest coast between November 15 and April 30, starting this year, and would be reviewed in 2017.

Last week, WA's Environmental Protection Authority opened a four-week public submission period on the planned extension, despite declining to formally assess the trial program even though a record number of public submissions - more than 23,000 - had been received.

The new proposal was also referred to the Commonwealth Department of the Environment, with a decision about whether it will undertake a separate assessment expected next month.

Premier Colin Barnett said the policy, which he still refused to label a cull, had been a success with authorities learning more about sharks and there being no bi-catch.

"I think it has been a success, and maybe there'll be a fair bit of contention about that, but we have caught some very large sharks close into popular swimming areas," he told ABC radio on Wednesday.

The premier said people would be surprised, if not horrified, that off Floreat beach alone there were two sharks caught over 4.2 metres.

"That's twice the length of [2.11m-tall AFL footballer] Aaron Sandilands," he said.

"I mean, these are very large, mature sharks.

"They were tiger sharks. They are proven around the world to be a dangerous shark."

Mr Barnett added that the behaviour of some people who objected to the policy was poor.

"I welcome the debate, but some of the behaviour has simply been vulgar and obscene," he said.

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Plane catches fire at Perth Airport

A PLANE has made an emergency landing at Perth Airport after a suspected engine fire erupted shortly after take-off.

The Cobham Aviation flight landed safely after the mid-air incident on Tuesday, a Perth Airport spokeswoman confirmed.

Witnesses have reported seeing the flames coming from the right engine.

The Perth Airport website shows that a Cobham Aviation flight was scheduled to depart at 10.45am for Barrow Island.

Pictures have emerged on social media of a plane with an engine appearing to be on fire, but it has not been confirmed as the plane involved in the emergency.

The aircraft is currently being assessed at the airport.

Cobham operates aircraft on behalf of Qantas regional subsidiary QantasLink.

A spokesman for the regional carrier said a statement would be issued later on Tuesday.

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Donor was told 'no one will know': ICAC

THE NSW builder whose $5000 payment to an alleged Liberal Party front company sparked a sensational inquiry says a fundraiser for NSW MP Chris Hartcher urged him not to declare the donation.

Matthew Lusted told the corruption watchdog he decided to stand for Liberal preselection in the federal seat of Dobell after a chance meeting with then Opposition Leader Tony Abbott at a steakhouse on the eve of Australia Day, 2011.

"He encouraged me to consider it," Mr Lusted told the Independent Commission Against Corruption (ICAC) on Tuesday.

"And eventually I did."

Mr Lusted was ultimately beaten to the Dobell preselection by Karen McNamara, who he claims "gloated" that as campaign manager for Darren Webber's 2011 state parliament tilt at the seat of Wyong, she raised $200,000, though she declared less than $100,000.

Days earlier, Mr Lusted says, he had met with Hartcher associate Ray Carter, who asked him to "contribute for the boys who are standing on the coast".

The "boys" were Mr Hartcher and NSW Central Coast MPs Chris Spence and Mr Webber, all of whom have been banished to the crossbench over the controversial donations.

It is alleged that Mr Carter arranged for the money to be paid not to the Liberal Party but to "sham" company EightByFive.

Documents show Hartcher staffer and EightByFive founder Tim Koelma billed Mr Lusted's company for $4545.46 plus GST for "Products and services as agreed".

Mr Lusted said he did not realise the money had been funnelled in this way until he attempted to declare the $5000 donation to the Electoral Funding Authority and one of his staff was unable to find a record of it.

"I had a gut feeling something was not right," Mr Lusted told the ICAC in a statement.

But he says Mr Carter reassured him that the apparent discrepancy would go away, telling him: "No one's going to find out about anything. You've got nothing to worry about."

"I wonder if he thinks that now," Mr Lusted mused.

Counsel for Mr Koelma has suggested Mr Lusted is lying to the ICAC "as a form of retribution for having not been preselected" in Dobell.

The inquiry into political donations continues.

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MH370 search being scaled back: PM Abbott

A report into the flight MH370 disaster is understood to recommend real-time tracking of aircraft. Source: AAP

THE search for missing Malaysia Airlines plane MH370 is being scaled back, Prime Minister Tony Abbott has announced.

He says 52 days after the plane disappeared with 239 people on board, the search is now entering a "new phase" focused on searching the ocean floor.

It is now "highly unlikely" that any aircraft debris will be found on the ocean's surface, he says.

"By this stage, 52 days into the search, most material would have become waterlogged and sunk," he told reporters.

He acknowledged the "tremendous work" of air crews from eight nations who have contributed to the air search.

The Bluefin-21 will continue to be used in the operation, Mr Abbott said.

However, an intensified search will involve different technology.

"In particular, using specialised sidescan sonar equipment towed behind ships to scan the seabed for evidence of aircraft wreckage," the prime minister said.

The Australian government, in consultation with the Malaysian government, would be willing to engage one or more commercial companies to undertake the work, he said.

He said that would cost an estimated $60 million and Australia would seek contributions from other nations.

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US storm system kills five

Officials say a tornado has killed at least two people and destroyed buildings in Oklahoma. Source: AAP

A TORNADO system that ripped through the central and southern United States has left at least five people dead, officials say.

Four people were killed as the storm ripped through suburbs of Little Rock, Arkansas, Matt DeCample, a spokesman for Arkansas Governor Mike Beebe said on Sunday night.

The large tornado stayed on the ground as it moved northeastward for at least 48km, with television footage showing badly damaged buildings and vehicles.

A separate tornado from the same storm system moving through the central and southern US killed one person in the small Oklahoma town of Quapaw.

Authorities earlier had said two were killed in Quapaw. Sheriff's dispatcher Kelli Soechs declined to explain the discrepancy.

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Palmer won't back lifting pension age

The Palmer United Party will not support any pension age increase, says leader Clive Palmer. Source: AAP

CLIVE Palmer says his party won't support a rise in the pension age, which has been a major focus of pre-budget speculation.

Treasurer Joe Hockey last week described any increase in the pension age as an "inevitability", but stopped short of confirming his first budget will lift it to 70.

Mr Palmer, whose Palmer United Party will soon hold the balance of power in the Senate with other crossbenchers, said he would not back a rise in pension age.

"I just couldn't employ Joe Hockey or Tony Abbott at 69, no matter how competent they are," Mr Palmer told ABC Television on Sunday.

"They wouldn't have a good future and I wouldn't invest the time in training them because they would be retiring the next year."

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Abbott won't rule debt levy in or out

PM Tony Abbott has refused to comment on reports his government may soon introduce a debt levy. Source: AAP

PRIME Minister Tony Abbott has refused to comment on reports his government may soon introduce a debt levy to tackle the budget deficit.

Based on the Queensland flood levy, News Corporation says a "one off" tax will be introduced in Treasurer Joe Hockey's May budget.

The levy would be targeted at high income earners, with the tax thresholds yet to be decided by the government.

The government's commission of audit has also recommended scrapping Family Tax Benefit B payments aimed at single income families, News Corporation said.

Mr Abbott said he was not going to get into the business of ruling things in and ruling things out of the May 13 budget, but the coalition had committed to fixing the "fiscal disaster" left by the Labor government.

Australia had debt and deficits "stretching out as far as the eye can see", he told reporters in Brisbane.

"It's important that the mess be tackled," the prime minister said on Sunday.

"Now we are going to do it in ways which are faithful to the commitments that we made to the Australian people.

"We will do it in ways which are fair, which are equitable, and which I believe will be seen to be fair by the Australian people."

Labor says the levy would breach Mr Abbott's pre-election commitment not to impose new taxes.

"Make no mistake, this will be the biggest broken promise of all," shadow treasurer Chris Bowen told reporters in Sydney.

"Tony Abbott told the Australian people he would cut taxes and he specifically said he would introduce no new taxes."

Mr Bowen accused Mr Hockey of creating a "conflated budget emergency".

"But that doesn't justify a tax on Australian families who would pay the cost for this breach of promise from Tony Abbott," he said.

But Mr Abbott said the government would keep its election commitments.

"A very important commitment was to get the budget back on track to a sustainable surplus, but we will do that in ways which keep faith with our commitments to the Australian people in the election campaign," he said.

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