Fresh debate as NSW celebrates

THE hoisting of two flags - potent symbols of the nation's divided past - triggered fresh debate about reconciliation on Saturday, as Australia's newest citizens looked forward to life in the lucky country.

Almost 3800 people from nations around the world - including some from war zones - became Aussies in NSW on Saturday, starting new chapters as part of their adopted nation's future.

Across the nation, 17,059 people from 145 countries became Australians in 430 citizenship ceremonies.

But as NSW celebrated Australia Day - marking 225 years since the First Fleet landed in Sydney - it was the fractured past, not the vaunted future, that caused debate.

Celebrations began early in Sydney, the sun barely up over the Opera House, when the Aboriginal and Australian flags were raised over the Harbour Bridge.

It was the first time the two banners have flown together on the iconic landmark on Australia Day.

NSW Aboriginal Affairs Minister Victor Dominello said the flag-raising was a step towards reconciliation.

"I'm not saying that it's perfect. There is still a long way to go," he told reporters.

"But we are definitely on the right path."

But there was dissent.

Former Australian Democrat senator Andrew Bartlett wrote on Twitter: "26th Jan: anniversary of Britain establishing their colony of New South Wales. Nothing for the rest of us (or First Peoples) to celebrate."

NSW Premier Barry O'Farrell quickly replied: "Except that your home state (& others) were opened up & carved out of NSW by people who lived here #getagrip."

Mr Bartlett retorted: "Carved up rather than 'carved out'."

It was a small skirmish on a day when most new Australians were intent on celebrating the present and the future.

For some, gaining citizenship was merely confirmation, a rubber-stamping of long-term faithfulness to the land Down Under.

Ex-Londoner Debbie Smith arrived in Australia 22 years ago on holiday and never left.

"Probably after about five years, you begin to feel assimilated to the country," she told AAP.

"If we're playing England, I still feel Australian."

For others, gaining citizenship was the culmination of long-held dreams.

South African-born Michael and Kim Parker, and their children Liam and Aiden, always wanted to make Australia home.

"Four years ago today we were walking along through the park and my cousin tapped me on the shoulder and said 'mate you could be up there one day on that stage getting your citizenship'," Mr Parker told AAP.

"So the dream has come true and we're here today."

Elsewhere, people were simply intent on having a good time, apparently oblivious to both the old and the new.

Gold Coast residents Andrew Lamond and Marshall Dudley drove overnight to Sydney with two friends from the US.

"We had to show them what Australia Day is all about so we got in the car and left," Mr Lamond said at a cafe in George St.

Mr Dudley instructed his California mates Amanda Smith and Maria Kosuzmenko how to celebrate.

"You shouldn't be drinking water, for a start," he said around 9.30am as he moved their water glasses off the table.

"I've already had a beer."

Thousands of people flocked into Sydney CBD to witness free shows, including The Wiggles unveiling their new line-up at Hyde Park.

Revellers began bagging the best spots in parks and reserves around the city, with eskies full of ice cold drinks, portable barbies and plenty of snags.

Sydneysider Doreen Carter was with her family in Hyde Park at 8.30am (AEDT) and planned to spend the day enjoying the free entertainment.

"It's one of the few days, other than Christmas, where we get the whole family together and just concentrate on enjoying ourselves," she said.

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North NSW told to prepare for floods, wind

RESIDENTS in northern NSW are being told to prepare for floods and damaging winds as the remnants of ex-tropical cyclone Oswald begin to affect the region.

Oswald has already brought severe flooding to northern and central coastal areas of Queensland,leading to hundreds of evacuations.

Authorities say the full brunt of the weather system should start to hit northern NSW late on Saturday (AEST).

The State Emergency Service (SES) has sent flood rescue and storm teams to the mid-north coast and north coast in readiness.

"With many people travelling around the northern parts of the state over the Australia Day long weekend, holidaymakers should consider the severe weather conditions in their travel plans as many major roads and highways could be cut off by floodwater," SES commissioner Murray Kear said.

The Bureau of Meteorology (BoM) has warned of possible flooding on rivers from the Queensland border down to the Lower Hunter Valley.

It issued a severe weather warning on Friday, saying there'll be heavy downpours throughout those areas from Saturday night.

"This slow-moving weather system will reach the far northeast on Saturday bringing heavy rainfall, before moving south to the mid-north coast and adjacent ranges on Sunday and Monday," BoM regional director Barry Hanstrum said.

There's also likely to be gale force winds from Sunday.

Mr Hanstrum said communities likely to be affected include Ballina, Byron Bay, Grafton, Coffs Harbour and Port Macquarie.

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UK PM 'doesn't want country called Europe'

British PM David Cameron believes more unification would not be the answer for the European Union. Source: AAP

BRITISH Prime Minister David Cameron wants nothing to do with a United States of Europe, an idea that's gaining currency as the countries that use the euro struggle to fix their debt crisis.

But what if it's a choice between a single country called Europe or a splintered continent? Cameron is determined to avoid that scary scenario.

A day after he shook up Europe's political landscape by offering British citizens the prospect of a vote on whether to stay in the 27-country European Union, Cameron insisted on Thursday he wants Britain to remain a part of the bloc but that more unification would not be the answer.

"To try and shoehorn countries into a centralised political union would be a great mistake, and Britain would not be a part of it," he said at the World Economic Forum in the Swiss resort of Davos.

In an interview with The Associated Press afterwards, Cameron insisted said he wanted to make Europe "more open, competitive, flexible - so that we can secure Britain's place within it".

"I think it is eminently achievable," he said.

Many in the EU, particularly among the 17 countries that use the euro, are on a drive for closer political unification, and that's raised particular concerns recently in Britain, which has often viewed the bloc through a business prism.

"If you mean that Europe has to be a political union, a country called Europe, then I disagree," said Cameron. On Wednesday, Cameron put an end to months of speculation by revealing he intends to hold a referendum on Britain's membership of the EU, if he wins the next general election, expected in 2015.

But many politicians in Europe think closer political ties are exactly what is needed to maintain continental unity in the face of a debt crisis that's laid bare fundamental flaws in the euro.

Some even think Europe's end-game has to be to resemble the United States of America. Countries would be so tied together in their economic and social fabric to make war inconceivable.

After decades of bit-by-bit integration, the links are now so tight many European leaders refuse to publicly acknowledge a British exit is a possibility.

Several accuse Cameron of putting the bloc at risk to deal with domestic political problems. His Conservative Party has a hardcore element that is highly sceptical of the EU, while an anti-EU party, the UK Independence Party, is gaining ground in the polls most notably at the expense of Cameron's Conservatives.

Italian Premier Mario Monti said Britain should set aside ideology and look at its membership in the EU with "pragmatism, which should be a British attitude of mind".

He argued that Britons, for all their hostility to EU regulations and bureaucracy, benefit so much from the single market they would be scared to leave - a ready access to markets and over half a billion people would be a gamble too far.

Most of British business appears to want to stay in the EU but out of the integrationist drive - but the question is whether that can be achieved.

"The vast majority of businesses across the UK want to stay in the single market, but on the basis of a revised relationship ... that promotes trade and competitiveness," said John Langworth of the British Chambers of Commerce.

He was among 56 British business leaders who issued a public letter to the Times of London on Thursday complaining about demands from Brussels and calling for "a more competitive, flexible and prosperous European Union that would bring more jobs and growth for all member states".

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NZ dollar gains against weak yen

THE New Zealand dollar was firm against a weak yen on a day in which Prime Minister John Key noted the benefits of a strong currency and economists reiterated that it will be strong for much of 2013.

The kiwi was at 75.67 yen at 5pm, having traded as high as 75.70 yen from 75.30 yen at 8am. That compared to 75.24 at 5pm on Thursday.

But it fell to 83.63 US cents at 5pm from 83.80 cents at 8am and 84.32 cents at 5pm on Thursday.

The focus in afternoon trading was on Bank of Japan policy meeting minutes. Reuters reported that member Koji Ishida proposed cutting the interest rate for the bank's fixed-rate market operation and other loan schemes to 0.03 per cent from 0.1 per cent.

That and another measure were turned down but the debate underlined the pressure the Japanese central bank is under to ease monetary policy more aggressively to help pull the economy out of deflation.

It was a contrast to Mr Key's observation that a strong NZ dollar reflected strength in the country's terms of trade.

He said that the high kiwi made goods cheaper for consumers.

His comments come as BNZ economists put an end-year target of 81 US cents on the kiwi, suggesting it will be high for some time.

The kiwi was at 80.08 Australian cents at 5pm, unchanged from its level at 8am, and down slightly from 80.17 at 5pm on Thursday.

The kiwi was also at 62.61 euro from 63.32 on Thursday.

The trade-weighted index was at 75.42 from 75.64.

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AOTY need not be instant advocate: Rush

Outgoing Australian of the Year Geoffrey Rush says recipients of the award should enjoy the honour. Source: AAP

THE next Australian of the Year should enjoy the honour and not feel compelled to become a crusader for a cause, says outgoing recipient Geoffrey Rush.

The acclaimed actor said there was too much pressure on those who receive the accolade to put it to active use.

"They're being honoured for what they've done, not what they have to do, and they should really respect that," he said.

"The media does tend to force it, and always ask: 'What are you going to do with it?'"

He said past recipients such as pop group The Seekers were right to accept the award as recognition for their musicianship, without feeling obliged to use it as a campaign platform.

But he acknowledged those who chose to capitalise on the profile afforded by the award, such as mental health advocate Professor Patrick McGorry, should feel free to do so.

Reflecting on his year in the role, Mr Rush said it was an honour to bring greater recognition to the Australian arts community.

"It's been amazing. The arts never get that kind of attention," he said.

"I'm one of two people who've been acknowledged for stage and screen work, that being Robert Helpmann and myself, and then for screen work it's Paul Hogan.

"And that's it."

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Music legends honoured at Aus Day lunch

KYLIE Minogue finally has the stamp to confirm she's Australian pop royalty.

Minogue is among 10 Australian music legends featured on a new edition of Australia Post stamps unveiled at an Australia Day lunch in Brisbane on Thursday.

The others are AC/DC, Cold Chisel, INXS, John Farnham, Men at Work, Ian "Molly" Meldrum, Olivia Newton-John, Paul Kelly and The Seekers.

"Nothing is more important to us than to be recognised by our fellow Australians, our countrymen and our families, who are all Australian," INXS drummer Jon Farriss told the crowd at the launch.

"And for that reason we're very honoured."

Queensland Premier Campbell Newman said the tribute was a great way to mark Australia Day.

"When we hear either INXS or Men At Work playing in a London pub or a Boston tavern, my gosh you're proud," he said.

Mr Newman also said he felt stirred by the music of indigenous Australians.

"It is an amazing land and it gets inside your soul," he said.

"And when I hear Aboriginal music - the didgeridoo - and I see the cultural performances of so many Aboriginal people... that becomes part of me as well, and I take that wherever I go around the world.

Queensland's biggest Australia Day celebrations will take place at Brisbane's South Bank parklands on Saturday.

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Netanyahu wins but weakened by centrists

Benjamin Netanyahu's rightwing Likud-Beitenu list has won the Israeli election by a narrow majority. Source: AAP

ISRAELI Prime Minister Benjamin Netanyahu is expected to remain in power despite the poor showing by his Likud-Beiteinu list, which will push him into an alliance with the centrist Yesh Atid, the surprise winner of Tuesday's vote.

According to exit polls, Likud-Beiteinu, the joint list uniting Netanyahu's Likud with the hardline nationalist Yisrael Beiteinu, suffered a serious setback, winning just 31-33 mandates in the 120-seat Knesset, down from 42 in the outgoing coalition.

The centrist Yesh Atid, launched in April 2012 by former TV anchor Yair Lapid, made an unexpectedly strong showing, becoming the country's second party with 18-19 deputies, ahead of the centre-left Labour, with 15-17.

In a swift turnaround, Netanyahu promised to build a coalition which was "as broad as possible".

He also called Lapid, telling him: "We have an opportunity to do great things for Israel. The election campaign is behind us, and we can now focus on action for the benefit of all of Israel."

Overnight, the 49-year-old former media star with a polished appearance has been transformed into Israel's newest kingmaker.

"I call on political leaders to work with me, together, to form the widest possible government which will include moderate elements from the left and the right to bring about real change," Lapid told supporters at his Tel Aviv campaign headquarters.

"It is the party of normality. We have gathered all the components of society with the hope of changing things in Israel," said Shai Piron, number two on Yesh Atid's list.

Israel's army radio said given the results Netanyahu "has no choice but to offer Yair Lapid one of the three major portfolios - defence, foreign affairs or finance".

Lapid has become "the most important player in the political system", agreed Haaretz columnist Yossi Verter.

"Since he doesn't see himself as prime minister - and it's hard to see him putting together a coalition even if he did - he has two choices: become head of the opposition, or the most senior and influential minister in the third Netanyahu government," he wrote.

"If the exit polls are accurate, Netanyahu, Lapid and Bennett between them have 62 seats - enough to form a government. Such a government could implement many desperately needed reforms: changing the system of government, drafting the ultra-Orthodox, passing a responsible budget."

Netanyahu's natural allies are the right-wing and religious parties, among them the far-right nationalist religious Jewish Home, which won 12, as well as the ultra-Orthodox parties, Shas and United Torah Judaism, which won 11-13 and six seats respectively.

The new centrist HaTnuah of former foreign minister Tzipi Livni, which campaigned to restart peace talks with the Palestinians, was seen taking seven, with 6-7 for the leftwing Meretz, and 8-11 for the three main Arab parties.

Final results are not expected to be released until the early hours of Wednesday.

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Weak CPI gives RBA room to cut rates

The Australian Bureau of Statistics has released inflation figures for the December quarter. Source: AAP

THE Reserve Bank of Australia has plenty of room to cut interest rates again after official figures showed inflation remains near the bottom of its target range.

But the central bank is widely expected to keep the cash rate on hold at its February board meeting.

Australia's consumer price index (CPI) rose just 0.2 per cent in the final three months of 2012, to be up 2.2 per cent for the year, figures released by the Australian Bureau of Statistics on Wednesday show.

Underlying inflation was at 0.55 per cent for the December quarter and 2.3 per cent for the year.

The biggest price rises of the quarter were in the communication and insurance and financial services sectors but these were offset by falls in the cost of healthcare, furniture and food and drinks.

The RBA has a target range for annual inflation of two to three per cent and economists say the latest figures mean it has plenty of room to cut interest rates if necessary.

"On the back of these numbers the odds of a rate cut have gone up a little bit," JP Morgan Australia chief economist Stephen Walters said.

"It's not enough to argue that the RBA has to cut the cash rate at the first opportunity but if they think it is necessary, which is debatable, then they have certainly got an excuse with this inflation data."

But many economists think the RBA will keep the cash rate on hold at its February 5 meeting.

RBC Capital Markets senior economist Su-Lin Ong expects the RBA to wait until April to cut again.

"We think maybe they will wait for a bit more data, given they cut by 50 basis points late last year," she said.

She said the RBA will want to see how the economy fares over the next few months.

"But these figures clearly give the RBA scope for further interest rate cuts if (economic) growth disappoints, which we think it will."

The RBA cut the cash rate a quarter of a percentage point in December to 3.0 per cent and has delivered 1.75 percentage points in cuts since November 2011

Futures markets have priced in only a 35 per cent chance of a February rate cut, but expect up to two more 0.25 percentage point cuts by the middle of 2013.

But CommSec economist Savanth Sebastian said recent signs of improvement in both the domestic and global economies mean the RBA may not feel the need to cut again.

"While the Reserve Bank will debate another rate cut at the February board meeting, the recent improvement in the global economic outlook, rising share markets, healthy house prices and improving confidence levels may stay board members' hands," he said.

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Carelessness as deadly as arson: police

CARELESS behaviour on days of high fire danger can be just as deadly as arson, police have warned, as Victoria heads for another dry spell.

Assistant Commissioner Stephen Fontana has called on Victorians to ensure they're not doing anything that could spark a blaze as the weather heats up again on Thursday.

"What is of real concern is that when we look at a large number of fires they've been started through the careless activity of others," Mr Fontana told reporters in Melbourne on Tuesday.

"Things like using slashers, cutting hot grass on extremely hot days, causing sparks, driving vehicles in long grass."

He said some people had thrown cigarette butts out their windows and caused fires, while others were using machines like angle-grinders that create sparks.

"Some of these fires have got out of control," Mr Fontana said.

"These fires are just as dangerous as those that are deliberately lit."

Police hold fears about new fires starting on Thursday as firefighters continue backburning around the 62,000-hectare central Gippsland blaze.

A state control centre spokesman said 600 firefighters, 130 trucks and 13 aircraft were working to strengthen containment lines around the massive Gippsland fire burning around 200km east of Melbourne.

"We're trying to get those control lines (strong) prior to weather increasing on Thursday and Friday," the spokesman told AAP.

Firefighters are also working on 11 small fires in a state forest, about 13 kilometres east of Orbost, sparked by lightning storms overnight, with six currently under control.

The Bureau of Meteorology has forecast a maximum temperature of 37C for Thursday while the CFA has declared most of the state to be at a very high or severe fire danger risk.

Mr Fontana said there will be increased police patrols on Thursday.

He called on anybody who sees suspicious behaviour to ring triple-zero.

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Former Allcoe chairman dies on ski trip

THE former head of collapsed company Allco Finance Group, David Coe, has died while on a skiing trip in the United States.

Friends of Mr Coe on Tuesday confirmed Mr Coe, 58, died of a suspected heart attack while in Aspen Colorado in the past 24 hours.

His friend of two decades investment banker and arts patron Simon Mordant said he had dined with Mr Coe and his wife Michelle just before Christmas.

"I'm in deep shock at the loss of a dear friend," Mr Mordant told AAP.

"David was one of the most generous and loving people I have met and a close friend."

Mr Mordant said he and Mr Coe worked together on the redevelopment of the Sydney Museum of Contemporary Art.

Allco was a global financial services business listed on the Australian Stock Exchange and headquartered in Sydney.

It was one of the highest profile corporate failures during the financial crisis and went into voluntary administration in November 2008 with debts of about $1.1 billion.

AAP

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Builders still struggling: survey

STRUGGLING builders are bracing for another tough year, after sales and profits fell in the last three months of 2012 and many in the industry struggle to obtain access to finance.

A survey of more than 400 builders and contractors conducted by Master Builders Australia shows the sector is expecting the shed jobs early this year as businesses struggle with falling sales and profitability.

The survey's index measuring current business condition fell from 47.4 to 45.2 in over the three months to December.

A reading below 50 indicates a decline in activity over the quarter and a lower reading indicates a greater decline.

The index measuring builder's intentions regarding staff numbers and the use of subcontractors over the next six months fell to 37.0, indicating builders expect to reduce the size of their workforce.

The survey also showed the sector was suffering a credit crunch with nearly 40 per cent of business reporting a lack of access to finance as a constraint on their business, the highest percentage since the global financial crisis.

The survey results will be unwelcome news for the Reserve Bank of Australia, which is counting on the construction sector to pick up in 2013 to offset a drag on the economy following the expected peak in the mining investment boom.

Master Builders Australia chief economist Peter Jones said the survey showed builders needed greater support from the RBA, which has cut the cash rate 1.75 percentage points since November 2011.

He believes further interest rate cuts are needed.

"Interest rate cuts over the past year appear to have failed to boost the confidence of new home buyers," he said.

"The Reserve Bank has pointed to the building industry to help boost the non-mining sectors of the economy, but this does not look likely unless macroeconomic policy becomes more accommodating."

Mr Jones also called on federal governments to do more to support the sector, through a short term increase to the first home-owners grant.

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Gandhi seeks to woo 'young and impatient'

Rahul Gandhi has called for change to meet the aspirations of India's "young and impatient". Source: AAP

RAHUL Gandhi, newly named to the No.2 post in India's ruling Congress party, has delivered a powerful call for change to meet the aspirations of the nation's "young and impatient" population.

"We have to rethink and transform our system and the country," Gandhi, 42, told party members on Sunday as Congress ended a three-day brainstorming session in the northwestern city of Jaipur ahead of a general election next year.

Congress must listen to the voice of a "young and impatient" India to ensure they do not feel alienated from the political system, he said, a day after being unanimously voted party vice-president.

The scion of the Nehru-Gandhi dynasty, whose family has given India three prime ministers, is now second in the Congress hierarchy behind his mother, Sonia, who is president.

Rahul Gandhi's elevation represents a generational shift in Indian politics in which most of the leaders are over 60, while roughly half of the country's 1.2 billion population is under 25.

The party stopped short of naming him its candidate for prime minister, amid lingering uncertainty about his political talents and his hitherto apparent reluctance to assume a major political role.

In a speech drowned often by applause, Rahul Gandhi sought to dispel doubts about his political commitment, declaring the "Congress party is now my life".

"I will fight for the people of India with everything I have," he promised, adding he was "optimistic as we already have the building blocks for a better future".

He gave no hint of whether he wanted to be a candidate for prime minister.

But analysts said it was unlikely any other Congress leader would be fielded and his mother, who has long been seen grooming him for the post, was now expected to push him to take a bigger role in running the party.

"Congress has no other choice. It would be very difficult to name some other person because there would hardly be any consensus," said Sanjay Kumar, political analyst at the Centre for Study of Developing Societies.

The Nehru-Gandhi clan has ruled India for most of its post-independence history and many Congress members cannot conceive of the party without a Gandhi at the helm.

Newspapers predicted a showdown for the prime minister's job between Rahul Gandhi and hardline Hindu opponent Narendra Modi, the Bharatiya Janata Party (BJP) chief minister of western Gujarat state, in the 2014 election.

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Brisbane housing precinct not flood proof

QUEENSLAND'S acting planning minister says a residential development precinct under construction on the Brisbane River waterfront is not flood proof even though it was spared the devastation of floods in early 2011.

Tim Nicholls, who is also acting deputy premier, has opened a new 500-metre section of a river walk at Hamilton, on the Northshore banks of the river.

Asked if the adjacent residential precinct in his Clayfield electorate was in a flood-prone area, Mr Nicholls said planning authorities had taken flooding into consideration.

"During the floods in 2010 and 2011, I came down and inspected this part of the river and fortunately, the floodwaters didn't rise up over the banks here," he told reporters at the site on Sunday.

"That's not to say that it's flood proof, it's just to say that in that flood ... it didn't flood here.

"Obviously those things are taken into account by the planning authorities and by the builders."

Another 15,000 residents are expected to move into the area during the next decade as the former port land is redeveloped, Mr Nicholls said.

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New Zealand rocked by quakes

EARTHQUAKES have been felt around New Zealand during the weekend including a magnitude 5.2 tremor in Taranaki and one measuring 4.7 in Canterbury.

The Taranaki quake was centred 25 kilometres west of Waverley at a depth of 138km. It was recorded at 1.45pm, local time on Sunday.

GeoNet received 2239 reports from people who felt the quake throughout the country from Southland to the Bay of Islands.

The Fire Service and Civil Defence said there were no reports of damage.

More than 3000 Christchurch residents reported feeling a magnitude 4.6 earthquake on Saturday night.

It struck at 9.15pm, 20km west of the city at a shallow depth of 10km.

There were no reports of damage.

People took to social media to report their experiences, 3357 of them saying they felt the temblor on the GeoNet website.

The quake was part of a sequence the city had experienced, Mark Chadwick, the duty seismologist at GeoNet told AAP on Sunday.

He said the quake was the biggest in Christchurch this year and the aftershocks would be smaller.

"The aftershocks create aftershocks," he said.

It was followed by a quake measuring 3.6, 15km east of Methven, a township on the Canterbury plains 90km west of Christchurch, at 7.09am on Sunday. This was probably an aftershock of the original 2010 quake, Mr Chadwick said.

On September 4, 2010, at 4.35am, a quake of magnitude 7.1 struck Christchurch. It has since been followed by major earthquake events on Boxing Day 2010, February 22, 2011 and June 13, 2011.

A deep 4.7 quake also woke residents on the Kapiti Coast north of Wellington about 5am on Saturday but there were no reports of damage.

A series of light earthquakes measuring from 3.4 to 3.6 shook Tolaga Bay on the East Cape on Sunday.

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