NSW govt to extend home owner grant

Next week's NSW budget will extend eligibility criteria for a first home owner grant. Source: AAP

THE NSW government has freed land for 6600 new homes in Sydney's northwest and will extend the first home owner grant in this month's budget.

Land at Marsden Park North, Richmond and Blacktown has been released or rezoned for housing, Premier Mike Baird announced on Saturday.

The Marsden Park land has space for 4000 new homes and is close to where the North West Rail Link is being built, while the land at Blacktown is on an old golf course.

"In western Sydney, there is a massive housing boom occurring and the unlocking of up to 6600 new housing lots at three sites will boost housing supply and make homes more affordable," Mr Baird said in a statement.

The government claims 100,000 new homes have been built across NSW since the March 2011 election.

Treasurer Andrew Constance also announced that the June 17 state budget will extend eligibility criteria for the first home owner grant by $100,000.

It means first-time buyers who purchase new properties worth up to $750,000 will qualify for the $15,000 payment. The previous threshold was $650,000.

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Missing trio in Tassie bush found

THREE men missing in central Tasmanian bushland have been found safe and well.

Police were alerted on Friday four men staying in the Waddamana area, near Bothwell, might have become lost.

One of the men was later found safe and well but police held significant concerns for the others and launched a helicopter search early on Saturday.

By Saturday afternoon, all men were found safe and well.

"All parties were exhausted but did not require any medical treatment," Tasmania Police said in a statement.

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NZ's North Island rattled by 5.1 quake

NEW Zealand's central North Island has been rattled by a 5.1 magnitude quake.

The 76km deep earthquake was centred 20km west of Ohakune, in the Tongariro National Park, just before 4pm on Friday.

Thousands reported feeling the moderate quake on the GeoNet site, with people as far afield as Central Otago town Palmerston reporting a shake.

The GeoNet website is run by the Earthquake Commission and GNS Science.

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Settlement in WA baby flu vaccination case

A CONFIDENTIAL settlement has been reached between pharmaceutical manufacturer CSL Ltd and a five-year-old West Australian girl who became severely disabled after receiving a flu vaccination.

Saba Button was about to celebrate her first birthday in April 2010 when a GP injected a 0.25ml dose of CSL 2010 Fluvax into her left arm.

As a consequence of the vaccination, she suffered hypoxic brain injury and severe disabilities.

Her life expectancy has been significant shortened and she will require constant care for the rest of her life.

With her mother Kirsten Button acting as her representative, Saba launched proceedings against CSL, claiming substantial compensation for the loss and damage she suffered as a result of receiving the vaccination.

CSL filed a defence denying any liability to Saba and claiming that the State of Western Australia and the state's health minister were responsible for any compensation due.

CSL also cross claimed against the state and the minister for a contribution in the event its defence were to fail.

The State and the minister filed a defence to the cross claim denying any liability in the matter.

The claim and cross claim were privately mediated, resulting in the parties making a settlement deed.

On Friday, Federal Court of Australia Justice Michael Barker approved the agreement.

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Newman to defend Palmer court action

Queensland Premier Campbell Newman (pic) will defend a defamation suit taken by Clive Palmer. Source: AAP

QUEENSLAND Premier Campbell Newman has stood by claims Clive Palmer tried to buy his government, saying the public deserved to know how the businessman-turned-politician operates.

Mr Newman's lawyers on Wednesday lodged a defence against a statement of claim for defamation the Palmer United Party leader made against him last month, seeking $1.1 million in damages.

Mr Palmer alleges the premier has damaged his reputation by describing him in a press conference in April as "a guy who tried to buy ... my government".

But in the defence claim, Mr Newman's lawyers say the comment was in the public interest.

"The public had an interest in receiving information that might lead them to ask (how Mr Palmer) ... in his capacity as a businessman sought to influence government decision making in relation to his business interests," the defence documents read.

It goes on to detail a meeting with Deputy Premier Jeff Seeney in 2012 where Mr Palmer wanted him to allow the development of "Port Palmer" at Abbot Point and give him exclusive access to a rail corridor to the Galilee Basin.

"(He said) he had paid substantial sums to the LNP to have the LNP elected and that he had a lot more money to support the LNP in the future," it read, adding Mr Seeney refused the offer.

Mr Newman's lawyers also claimed former Liberal National Party MPs Carl Judge and Alex Douglas received "substantial gifts" from Mr Palmer and his companies to switch allegiances.

The premier said Mr Palmer didn't complain to the police or Crime and Misconduct Commission about his comments or even seek an apology.

Mr Palmer has denied claims he offered donations to the LNP for favourable treatment.

"Campbell Newman is simply telling untruths or he has been told lies by Deputy Premier Jeff Seeney and is using them to try and defend the defamation action," Mr Palmer said in a statement on Thursday.

"This is nothing more than a desperate attempt by desperate people to discredit me."

Mr Newman said his last donation to the LNP was in 2010 - two years before the Newman government was elected.

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Qld to absorb pensioner, senior cuts

The Queensland government will absorb all federal concession cuts to pensioners and seniors. Source: AAP

QUEENSLAND'S pensioners and seniors will be better off after the Newman government backflipped on concessions.

The federal government cut $223 million for water, electricity and rate concessions over four years, and the Tuesday state budget only picked up 10 per cent of the shortfall.

The grey army took the Newman government to task on talk-back radio and on Thursday Premier Campbell Newman announced he'll now fund the full gap.

"We're not only listening to Queenslanders, but we're acting within the space of two days to reinstate the full level of pensioner and senior concessions," he told parliament.

Government backbenchers Sean Choate and Neil Symes Tweeted that Mr Newman had "directed" the treasurer Tim Nicholls to come to the table, but Mr Choate has since said it was a poor choice of words.

Mr Nicholls said he was "absolutely not" overruled.

While the treasurer didn't say when he changed his mind, he had listened to the Queensland Council of Social Services at a breakfast on Thursday morning.

"It is better for us to relieve pensioners and concession card holders of the worry," Mr Nicholls said.

To pay for the shortfall, Queensland would consider withholding or recoup funding from commonwealth programs they ask states to contribute to.

Opposition Leader Annastacia Palaszczuk said the misstep won't be quickly forgotten.

"The ink isn't even dry on this budget and the premier has scrambled to save his own political skin," she said.

"He made a choice in his budget where he could help Queensland pensioners or hurt them.

"He chose to hurt them."

The opposition delivered its budget reply speech on Thursday.

Exactly how Labor would pay down Queensland's $80 billion debt won't be revealed until closer to next year's election.

The Newman government has given voters an ultimatum - $33 billion worth of assets must be sold to fund new infrastructure and pay down debt.

Ms Palaszczuk says it is a political strategy tailored to create a slush fund to buy votes.

It would lead to higher charges and an "Americanised economy" of low wages and no job security, Ms Palaszczuk said.

Labor would hold onto assets and use their revenue to lower debt and invest in new infrastructure.

But a detailed strategy wasn't released in Ms Palaszczuk's budget reply speech on Thursday.

"We will be releasing a comprehensive plan ahead of the next state election to pay down the increase in general government debt under the Newman government," she told parliament.

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Timing wrong on new fighter news: ADA

A DEFENCE lobby group believes the government got its timing wrong in announcing plans for $12 billion worth of jet fighters then embarking on budget cuts to education, health and social services.

There are many in the community who think this expense is the reason for their budget pain, the Australia Defence Association (ADA) says.

The plan to buy 58 more F-35 joint strike fighter aircraft was announced on April 23, during the leadup to the May 13 budget.

ADA says the government failed to properly explain that this would be funded from already programmed defence budget allocations over decades.

"As a consequence, many thought the touted $12 billion acquisition cost was being made from this year's budget alone rather than over decades and was therefore the cause of this year's belt tightening," ADA said in a post-budget commentary.

ADA said general community ignorance or apathy explained much of this.

But that was no excuse for the media commentators and others who claimed that changes to social security were somehow linked to acquisition of replacement fighters.

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Shipyards warned projects may go overseas

THE federal government has warned local shipbuilders it could look overseas for new frigates if they don't lift their game in constructing three new air warfare destroyers.

The $8.5 billion AWD project is now running almost two years late and costing $360 million more than planned, with shipbuilders performing well below international standards.

Finance Minister Mathias Cormann says the project is in serious trouble and getting worse.

A remediation plan - the third for AWD - aims to get it back on track, starting with "the urgent insertion" of an experienced shipbuilding management team into prime contractor, the government-owned ASC.

Construction of ship modules will then be re-allocated among three firms doing this work .

"This is a final opportunity to get this right - there's no two ways about it," Senator Cormann told reporters in Canberra on Wednesday.

Defence Minister David Johnston warned there might not be local capacity for future projects if Australian firms couldn't achieve acceptable productivity.

"I don't believe the government will support an enterprise that cannot deliver productively," he said.

That includes eight new vessels to replace the Navy's Australian-made Anzac frigates.

Under the AWD project, launched in 2007, the Navy will field three high-tech warships able to defend vast areas of ocean against aircraft and missile attack.

But costs are over target and first ship, HMAS Hobart, will be delivered in March 2016 rather than December 2014.

A review conducted by former US Navy secretary Don Winter found a range of problems including inadequate management and contractor performance - in line with an audit office report and regular reviews by UK consultant First Marine International.

World benchmark for warship production is 60 man hours per tonne. Hobart is coming in at 150 man hours per tonne.

In its review of ASC and sub-contractors BAE Systems in Melbourne and Forgacs in Newcastle, FMI found in all but a few measures they were outside performance benchmark standards.

Under contract arrangements, cost over-runs are met half from Defence and half from final success fees to contractors.

Senator Cormann confirmed the commonwealth and taxpayers would face some costs.

"We will seek to minimise whatever exposure there is for the government and for the taxpayers," he said.

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Modelling missing on Medicare co-payment

Indigenous health advocates say a proposed Medicare co-payment is breaching human rights. Source: AAP

THE Abbott government did no modelling on how its $7 Medicare co-payment would impact on emergency departments, despite doctors and the states warning patients may inundate hospitals to avoid it.

Doctors groups such as the Australian Medical Association have for months said a GP co-payment would cause some to delay going to the doctor, and could instead drive them into hospital emergency wards.

But health officials have revealed they did not undertake any modelling on whether a co-payment would cause a spike in hospital visits.

Instead they relied on analysis of the introduction of quicker four-hour targets for emergency department visits, which showed the measure did not create the feared "honeypot" for traditional GP clients.

The revelation shocked Greens Senator Richard Di Natale, who said the four-hour access target was "a completely different scenario" to the co-payment.

"You asked if we'd modelled what might occur with the introduction of a co-payment - we haven't done that," deputy health secretary Kerry Flanagan told a Senate estimates hearing in Canberra.

May's budget lifted restrictions on hospitals charging patients for GP attendances to address state and territory concerns.

However, most have already ruled out introducing such a payment.

"Some states and territories have already come out and said they're not intending to do that but it is up to the states and territories to make those decisions," Ms Flanagan said.

Earlier on Monday a prominent indigenous health advocate said the Abbott government was breaching human rights with the co-payment.

Julie Tongs, from the Winnunga Nimmityjah Aboriginal health service in Canberra, said the charge would have a major impact on the centre.

"Health is a human right. And by doing what they are doing they are taking away that human right," she said.

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No tax hike or service cuts in Qld budget

Union protesters will rally to speak out against expected assets sales in the Queensland budget. Source: AAP

THERE will be no tax increases or service cuts in the Queensland budget, Treasurer Tim Nicholls says.

Cabinet on Monday signed off on the budget, which will be handed down on Tuesday.

The government had been considering service cuts, tax increases or asset sales to help pay down $80 billion worth of debt and fund infrastructure.

Despite Mr Nicholls ruling out two of the three choices, he still wouldn't say whether the government will sell up to $32 billion worth of assets if it wins the next election.

"You'll have to come along tomorrow," he said.

"There will be no cuts to services, nor will there be any new taxes, fees or charges.

"It will continue our strong and methodical approach to fixing these state of Queensland's finances."

While Mr Nicholls says the Queensland government will not make cuts, the budget is expected to show the full cost of federal reductions.

The Commonwealth cancelled the $50 million paid to the states to help supply pensioner concessions for water, transport and electricity.

"Unfortunately, there will be some decisions that will have to be made where we have not been able to absorb all of the changes that have been made at the federal level," he said.

"Some of those changes may well flow through to the concessions."

Mr Nicholls is still promising a return to surplus in 2015/16 as planned, despite the projected deficit quadrupling to $2.27 billion from six months ago.

There had been a $600 million write-down in coal royalties, and Queensland is also waiting to be reimbursed a billion from the federal government for recovery work down after cyclone Yasi, Oswald and Ita.

"That is a timing mismatch that we anticipate will be cleared up over the next 18 months," he said.

Alex Scott, the secretary of the public sector union Together, expects increased royalties from coal seam gas and liquefied natural gas will negate the need for service cuts in the budget.

"We think the budget should return to surplus in 2015/16 but the government's got to be serious ... about delivering quality services for Queenslanders rather than delivering to their political donors," he told reporters.

"We don't believe there is a debt problem in Queensland.

"Return to surplus will mean the debt is serviceable and the surplus can also be directed towards debt reduction."

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Mickelson says he's co-operating with FBI

US golfer Phil Mickelson confirms that FBI agents investigating insider trading approached him. Source: AAP

US golfer Phil Mickelson has confirmed that FBI agents investigating insider trading approached him at a tournament this week.

The winner of five major championships says he has done "absolutely nothing wrong".

A federal official briefed on the investigation has said the FBI and Securities and Exchange Commission are analysing trades Mickelson and Las Vegas gambler Billy Walters made involving Clorox at the same time activist investor Carl Icahn was attempting to take over the company.

The official was unauthorised to speak about the ongoing investigation and spoke to The Associated Press on condition of anonymity.

Reports of the investigation appeared in several newspapers, including the Wall Street Journal.

Smiling as he stood before a room packed with reporters and cameras, Mickelson said the investigation had not been a distraction until FBI agents approached him after Thursday's opening round of the Memorial Tournament.

He did not offer any other details, including his relationship with Walters or any stock advice he might have received.

He said it would not affect his preparations for the US Open in two weeks, the only major he lacks for the career Grand Slam.

"It's not going to change the way I carry myself," Mickelson said after an even-par 72 at Muirfield Village left him far behind the leaders.

"Honestly, I've done nothing wrong. I'm not going to walk around any other way."

The federal official told the AP that Mickelson and Walters placed their trades at about the same time in 2011.

Federal investigators are looking into whether Icahn shared information of his takeover attempt of Clorox with Walters, and whether Walters passed that information to Mickelson.

The New York offices of the US Attorney and the FBI declined to comment.

The newspaper reports said federal officials also were examining trades by Mickelson and Walters involving Dean Foods Co in 2012.

After a brief interview, Mickelson stepped outside and signed autographs for about 20 minutes, like it was any other day at a tournament.

Fans were supportive as ever on the golf course, and Mickelson gave away so many golf balls to children that his caddie had to ask a tour official to retrieve more balls from his locker when they reached the turn.

He released a statement early on Saturday.

"I can't really go into much right now, but as I said in my statement, I have done absolutely nothing wrong," Mickelson said.

"And that's why I've been fully co-operating with the FBI agents, and I'm happy to do in the future, too, until this gets resolved."

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