Water rescue underway after Ita: Newman

Queensland Premier Campbell Newman says there have been no reports of death or injury caused by Ita. Source: AAP

THREE children and their parents have been rescued from fast-flowing floodwaters in cyclone-battered Cooktown.

"Great work by QFES Swiftwater & SES floodboat crews! 2 adults & 3 children rescued from floodwaters 10km sth of #Cooktown. #TCIta," Queensland Fire and Emergency Services commissioner Lee Johnson tweeted.

Queensland Premier Campbell Newman has urged people in north Queensland to take no chances as heavy rains continue to lash the region and flood warnings are in place.

"There is a report in the last hour and a half of a swift water rescue being undertaken at a crossing about 10 kilometres to the west-southwest of Cooktown," he told reporters on Saturday.

"I urge people again to play it safe. Stay at home, stay in shelter until this is properly over."

No injuries or deaths have been reported as a result of tropical cyclone Ita, and Mr Newman wants to keep it that way.

"I remind people that if it's flooded, forget it," he said.

Ita crossed the coast near Cape Flattery about 9pm on Friday as a category four cyclone. It has been downgraded to a category two.

The weather bureau has cyclone warnings current for coastal areas from Cape Melville to Cardwell, including Cooktown, Port Douglas and Cairns, and extending inland to areas including Mareeba and Chillagoe.

Coastal residents south of Cooktown to Cairns, including Port Douglas, are also being warned of a storm tide.

Heavy rain, which the bureau warns may lead to flash flooding, is buffeting parts of the Peninsula, North Tropical Coast and Tablelands districts.

The bureau says the rain should gradually contract southwards with the system over the weekend.

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Police van set on fire in Melbourne

A POLICE van has been set on fire in Melbourne's north.

Police say the divisional van was found smouldering and with a broken window at Reservoir on Friday night.

Firefighters quickly extinguished the blaze.

A police sedan nearby also had a broken window.

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Chinese airline to land at Vic airport

A CHINESE airline will use Victoria's Avalon Airport as a base under a new deal that could allow passengers to fly direct to China.

Victorian Premier Denis Napthine says the agreement, expanding transport operations between HNA Group Hainan Airlines in China and Linfox in Avalon, is terrific news for Geelong and for jobs.

"It initially involves regular air freight services from Avalon to China, which is really important for the government's Food to Asia Program," Dr Napthine said on Friday.

"Then we'll have a look towards passenger flights into the future."

While on a trade mission to enhance ties with Asia, the premier joined Prime Minister Tony Abbott in Shanghai for the signing of a memorandum of understanding to create the international terminal.

The deal commits Linfox to assist Hainan Airlines to begin an aviation service between Australia and China within 18 months using Avalon Airport as a base.

Opposition Leader Daniel Andrews said he had not heard about the memorandum but said trade missions were important, especially if they help to secure jobs.

"Anything that's good for jobs in Geelong, that's something that we should be trying to drive," he said.

Hainan Airlines is China's fourth largest airline with nearly 500 aircraft covering more than 570 domestic and international routes.

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Vic Labor rejects claims on Bay West port

LABOR'S plan to build a port in Victoria's west carries grave environmental risks through rock demolition and large-scale dredging, the coalition government says.

But shadow treasurer Tim Pallas denies Labor's proposed port in Bay West, near Geelong, will result in blasting at Port Lonsdale to accommodate larger ships.

"Explosives have not been used in Port Phillip Bay since the '70s," Mr Pallas said on Thursday.

He said the freight and logistics industry had signalled it was unlikely that anything above 10,000 TEU (twenty-foot equivalent unit) would ever come to Australia and therefore dredged depths would not be required.

Ports Minister David Hodgett said Labor's Bay West option would affect the environment by demolishing rock at the Heads.

"For Labor to develop a Bay West-Point Wilson port option, they would have to blast the Heads," he said.

"Good luck to Labor's environment minister that wants to blow up Point Wilson or Point Lonsdale."

A document by the Department of Transport estimates that dredging at Bay West could cause further sea level rises in the bay of at least 2cm and potentially affect the Marine National Park at the Heads.

It also estimates that a site near Point Wilson would require between 66 and 84 million cubic metres of dredged material to be removed, three to four times the recent channel deepening project volume.

Both sides of politics have pledged to sell the Port of Melbourne, but Labor wants a second container port at Bay West while the coalition favours one at Hastings.

The transport department has estimated the cost of developing Bay West at $12.4 billion, and $9 billion for Hastings.

Mr Pallas said the estimates for the dredging material required for Hastings had not been released, but his advice was that the figures for Bay West and Hastings were broadly similar.

Mr Hodgett said Hastings was a natural deep-water port - at least 16 metres deep - and that any dredging required there would be "bare minimal".

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Bureaucrat denies he dismissed batts risk

A senior bureaucrat has told an inquiry he warned superiors the home insulation scheme wasn't safe. Source: AAP

A RUDD government staffer has denied he told insulation representatives the pink batts scheme was "all about jobs" and "we expect there may be injuries".

William Kimber, an assistant director in the home insulation policy team, says he wouldn't have made the comments.

Mr Kimber has told the royal commission into the scheme he had concerns about fires, injuries and deaths months before the July 1, 2009 rollout of the home insulation program.

He denied a claim made by another witness that he dismissed safety concerns during an industry meeting in May 2009.

"I did not say that because it is an incorrect statement and I would not have said an incorrect statement," he told the inquiry on Thursday.

He then went onto say: "Whilst the job element was important it wasn't the only factor in the government's decision to implement the program."

Insulation consultant Kevin Herbert told the inquiry last week that during the meeting a fellow industry representative said to Mr Kimber, "you're going to kill people".

Mr Herbert said Mr Kimber replied: "It's all about jobs. We expect there may be injuries."

He also claimed Mr Kimber said words to the effect of "we expect that houses will burn down".

The inquiry before Ian Hanger QC continues.

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Weak job growth to continue: govt data

WEAK employment growth is likely to continue as the federal government's jobs indicator has fallen for six straight months.

The index anticipates movements in the growth cycle of employment, with a turning point confirmed after six consecutive monthly moves in the same direction.

It fell 0.064 index points in April to minus 0.555 points.

This signalled that employment was likely to grow more slowly than its long-term trend rate of 1.1 per cent per annum over coming months, the Department of Employment said on Wednesday.

The index has four weighted components: ANZ Newspaper Job Advertisements, Dun and Bradstreet Employment Expectations, the Westpac-Melbourne Institute Leading Index of Economic Activity and the Westpac-Melbourne Institute Consumer Sentiment Index.

Official labour force data for March will be released on Thursday.

Economists expect the number of people employed to have fallen by 5000 in March compared with February with the unemployment rate rising to 6.1 per cent from six per cent.

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More relocatable units for Vic prisons

MORE shipping container-style "relocatable units" are being rolled out to boost the capacity of Victoria's prison system.

The Victorian government has announced another 27 units will be installed by August at two correctional facilities near Geelong, a gain of 81 medium-security beds.

"Relocatable units are already providing an important, immediate boost to capacity in Victoria's corrections system, and today's announcement will build on this," Corrections Minister Edward O'Donohue said on Wednesday.

"The security and design of the units will be consistent with the standard security accommodation already at Fulham and Marngoneet prisons."

The government has previously likened the units - which each house three inmates - to mining camp accommodation and has also pointed to their use in prisons in Western Australia, South Australia and New Zealand.

Expansion plans for Victoria's Loddon Prison, announced in March, include 15 of the units.

The government says it has added 1000 prison beds since 2011 with another 2500 in the pipeline, including the 1000-bed prison under construction at Ravenhall in Melbourne's west.

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US bill would end SeaWorld orca shows

SEAWORLD San Diego would have to end its killer whale shows and remove 10 orcas from their tanks under a bill inspired by a documentary blasting the marine park's animal welfare practices.

The California Assembly is holding its first hearing on the bill on Tuesday morning, with the bill's backers saying killer whales are too large and intelligent for captivity.

SeaWorld says the animals are well treated and help conservation through research.

The 2013 film "Blackfish" blames attacks and deaths of SeaWorld trainers on the mistreatment of the animals, increasing their aggression.

SeaWorld calls the film anti-captivity propaganda.

The bill by Democratic Assemblyman Richard Bloom also bans the import and export of orcas. Under his measure, SeaWorld could keep the animals it has in a larger sea pen until they die.

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Royals rest up for whirlwind tour

The Duke and Duchess of Cambridge and their baby Prince George are having a rest day. Source: AAP

THE Duke and Duchess of Cambridge and their baby Prince George are having a day of rest away from the public and media gaze after their long flight to New Zealand from the UK.

Officials are refusing to say where the royal visitors were staying on Tuesday, but media have reported their motorcade was seen leaving Government House in Wellington after their official welcome there on Monday.

The UK's Mirror newspaper says they were "whisked off to a private residence with nanny Maria Borrallo" where they would spend two days recovering from jet lag.

Royal Visit Office spokesman Allen Walley would not comment on where the royal family were.

"They are spending private time, where they spend it is nobody's business but theirs," he said.

That hasn't stopped some media speculating on their whereabouts, with Fairfax NZ News listing seven possibilities ranging from a luxury Wairarapa lodge to a Department of Conservation hut, as well as pulling off a "double bluff" by staying at Government House to enjoy its high level of privacy.

The Edwardian two-storey building is surrounded by 12 hectares of grounds, a tennis court, squash court and swimming pool if the royal visitors want any exercise.

Regardless of where they're staying, they'll be at Government House to resume their tour duties with an informal Plunket meeting on Wednesday afternoon.

The duke and duchess will chat to other first-time parents while baby George plays with kids his own age.

The royal tour takes in eight locations around the country and is Kate's first time in New Zealand.

It's also eight-month-old Prince George's first official overseas trip. He's following in the tradition of his father who also visited the country as a baby.

The duke, duchess and Prince George are due to fly out on April 16 for Sydney to begin their 10-day Australian leg.

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Don't let Senate become a circus: Xenophon

Labor Senate leader Penny Wong says the party's results off the WA senate re-run was disappointing. Source: AAP

INDEPENDENT senator Nick Xenophon is warning his parliamentary colleagues they will be punished by voters if the new Senate becomes a circus.

Following a re-run of the Senate election in Western Australia, the Palmer United Party now forms a significant voting bloc in the upper house.

That has led to suggestions its founder, the unpredictable billionaire businessman and MP Clive Palmer, could have a destabilising influence.

Senator Xenophon said the new Senate could either work really well or be a "complete disaster".

"I think the new Senate will pose challenges to the government that they've never seen before," he told reporters in Canberra on Monday.

Earlier, Mr Palmer indicated the Abbott government would face tough negotiations on key policies such as the carbon and mining taxes, despite PUP's general support for their repeal.

Buoyed by his success in the WA vote, Mr Palmer said a deal on the mining tax was dependent on the government dumping plans to scrap welfare payments for children of dead or severely injured soldiers.

He also wants repeal of the carbon tax to apply retrospectively to its introduction in July 2012.

A decision on whether to negotiate on both will be left to his senators, Mr Palmer says.

"We haven't yet made a final decision on what our position will be," he said.

Senator Xenophon said it was not in Mr Palmer's nature to behave as others would like him to behave.

"If the Senate turns into a circus, the Australian people will punish those senators that are turning it into a circus accordingly at the ballot box."

Government Senate leader Eric Abetz says he is confident a deal can be struck with PUP on the mining and carbon taxes.

"I'm sure the Palmer United senators will come to the Senate with a sense of goodwill," he said.

Labor says Prime Minister Tony Abbott is now "hugging-up" to Mr Palmer after being critical of the billionaire miner during the WA Senate campaign.

"I think there's a bit of Palmer karma coming his way," Labor frontbencher Jason Clare said.

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Seven Network takes aim at AFP

The Seven Network has told an inquiry it suffered damage to its reputation following AFP raids. Source: AAP

THE Seven Network has told a Senate inquiry it suffered significant damage to its reputation following raids by federal police looking for evidence of a supposed deal with convicted drug smuggler Schapelle Corby.

The search warrants police used were subsequently quashed by a Federal Court judge, who found the issuing magistrate had been materially misled.

Seven West Media, owner of the network, said the warrants were executed in an extremely aggressive manner, using more than 30 armed police officers from the Serious and Organised Crime division.

The network was being investigated by the Australian Federal Police about a reported exclusive multimillion dollar deal between it and Corby, following her release on parole from a Bali prison in February.

"No such deal has ever existed," Seven has told the Senate's legal and constitutional affairs committee.

Executives from the network are appearing before the committee at Parliament House in Canberra on Monday.

The network argues the issue is not a criminal matter.

And even if there had been an agreement there was never, and could not be, any allegation or suspicion that a criminal offence had been committed by Seven West Media or any other person.

"The AFP investigation was based solely on media speculation," it said, adding the AFP made no requests to Seven about whether such a deal existed.

The company's commercial director, Bruce McWilliam, told the inquiry the raids impacted adversely on the share price of Seven West Media and the network's news ratings.

"The whole heavy-handedness was unnecessary," he said, adding several of its employees were deeply upset by the raids.

Mr McWilliam said the company suffered significant damage to its corporate image because the raids implied it had committed a criminal offence.

The company was not allowed time to consult lawyers about the protection of documents covered by lawyer-client privilege.

Seven reporter Ross Coulthart, a former barrister, told the inquiry it was the first time in his career his workplace had been raided by police.

"It really did send a chill up all spines that day to see police officers with guns walking into a media institution," he said.

The inquiry heard Seven had provided police with documents before the raids.

However, those documents indicated there was further material, especially regarding "the arrangement", that Seven had not provided, the AFP told the inquiry.

"They had not fully complied with the production order," Assistant Commissioner Ramzi Jabbour said.

One document identified a number of draft agreements for payments totalling $550,000, while another was an unsigned "exclusive" agreement emailed to Mercedes Corby as agent for her sister, also for $550,000.

The two documents were retrieved during the subsequent police raids.

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Police shoot man in Brisbane

A man has been shot by police responding to a domestic disturbance on Brisbane's bayside. Source: AAP

A MAN is in a critical but stable condition after being shot by police during a domestic dispute on Brisbane's bayside.

Two police officers arrived at the Capalaba unit about 7.30pm (AEST) on Saturday.

When they tried to arrest the man, the male officer was allegedly thrown through a plate glass window and was severely cut.

It is understood a policewoman responded by shooting the offender twice in the stomach.

Police Union president Ian Leavers said the situation escalated quickly.

"She made an instant decision with the view of protecting her partner's life," Mr Leavers said.

"She is heroic. These are things where you don't get time to consider your decision, you have to make it immediately.

"We're very fortunate that we're not here at the murder of a police officer."

The injured officer is in a serious but stable condition and is expected to have surgery.

It is the second police shooting at the unit complex.

In March 2011, a policewoman shot a man in the groin who had threatened neighbours.

Mr Leavers said he was tired of violence against officers and renewed calls for mandatory sentencing for people who seriously assault police.

"If you threaten the life of a police officer you should go directly to jail," he said.

"There should be no other option."

The Ethical Standards Command is investigating.

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Talks on Japan trade deal difficult: PM

PM Tony Abbott says he's optimistic but not certain about finalising a free trade deal with Japan. Source: AAP

TONY Abbott's push to resolve free trade talks with Japan appears on shaky ground, with the prime minister admitting he's not certain of striking a deal during his visit to Tokyo.

Mr Abbott had hoped to finalise a free trade deal with Japan, Australia's second-largest trading partner, as a matter of priority on his first official visit to north Asia.

He ambitiously pledged at the September election to end years of stalemate and strike free trade agreements with Japan, South Korea and China within 12 months.

But a resolution from fierce last-minute talks in Tokyo has eluded negotiators, who have struggled all week to gain ground on several final issues.

Mr Abbott said on Sunday he was "optimistic" a deal could be struck during his stay in Tokyo, but conceded the talks had been difficult.

"This government is determined to bring them to a swift and satisfactory conclusion," he told reporters in Tokyo.

"I'm hopeful but not certain."

Trade Minister Andrew Robb arrived in Tokyo ahead of the prime minister to try and break the impasse, but after hours with Japan's agriculture minister could only say talks had entered an advanced but difficult stage.

Mr Abbott said negotiations had "meandered" under Labor after former prime minister John Howard initiated talks in 2007.

Foreign Minister Julie Bishop also blamed the opposition for neglecting the task, saying the federal government had "six lost years" to regain.

She dismissed suggestions Australia's recent victory in the UN's top court over Japan's whaling program could have stalled talks, saying both nations would "move on".

"We are hopeful of signing, or at least getting an official confirmation about the state of the Japan Australia free trade agreement," she told ABC TV.

The deadlock could be on the agenda when Mr Abbott meets his Japanese counterpart Shinzo Abe on Sunday evening for a private dinner.

Mr Abbott's visit will be formally acknowledged in a state ceremony on Monday, but the prime minister said he'd been "thrilled" at the welcome so far.

He said there was more than trade behind his visit to Japan, with an announcement on defence co-operation with the conservative Abe government expected in coming days.

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