Winds ease fire threat, but blow out power

STRONG winds have blown away much of South Australia's fire risk, but also torn down trees and left thousands without power.

A cool southerly change, which came after temperatures soared past 40 degrees, rolled in on Friday and brought wild wind gusts that remained until Saturday afternoon.

"The winds are over but we're still dealing with a number of tasks," State Emergency Service (SES) State Duty Officer Bob Stevenson said on Saturday.

The city's eastern and southern suburbs were worst hit, he said, with many powerlines down and crews having to respond to more than 650 calls for help.

One downed tree took seven people around four hours to cut up and remove from the street.

Around 8000 homes have lost power, many in the Adelaide area.

Police said the weather conditions were extreme with multiple intersections losing power and debris striking cars, pedestrians and cyclists.

The winds had also stirred up a serious bushfire, which threatened Tintinara homes and lives in the state's southeast.

But CFS firefighters managed to contain the blaze by late evening after it burned through about 1000 hectares.

Only the Flinders region was listed as a extreme bushfire risk on Saturday with the rest of the state rated high to severe.

Elsewhere in the country, conditions have cooled in Sydney and Melbourne after scorching temperatures baked both cities.

The fire danger is rated as low across much of Victoria and there are no fire bans in place.

In NSW, fire bans are listed in four central districts.

Hot and dry northerly winds have resulted in a severe fire danger to Queensland's Channel Country while severe conditions are also forecast along WA's northerly coast.

A bushfire that had been burning for four days in the Pilbara near the North West Coastal Highway is now under control.

The fire is deemed suspicious.

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Suspected NSW drug house goes up in flames

POLICE are investigating a blaze at what's believed to be a suburban Sydney drug lab.

Firefighters arrived at the Yagoona house, in the city's southwest, just after 6am (AEDT) on Saturday to find it well alight.

No one was inside, police say.

The flames were extinguished and a crime scene established at the Marion Street home.

Police say they located equipment inside the house that is suspected of being used to manufacture prohibited drugs.

Investigations continue, with Fire & Rescue NSW Hazmat officers helping determine what sparked the fire.

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Security scare at NSW parliament house

Police have rushed in and grabbed a man from a car after a stand-off outside NSW Parliament. Source: AAP

POLICE have averted a potentially explosive situation after overpowering a man who allegedly threatened to set a car alight outside the NSW Parliament.

The man at the centre of a two-hour siege early on Friday afternoon was known to police and was a regular visitor, it's been confirmed.

The stand-off began shortly before midday (AEDT) on Friday when guards at the main entrance of parliament, on Macquarie Street in Sydney's CBD, noticed a man in a white sedan acting suspiciously.

For over two hours the man, a 58-year-old from the Wollongong area, passed lists of demands from inside the car to plain-clothes police negotiators.

Hundreds of city workers gathered at the police cordon as Macquarie Street and Martin Place was blocked off and parliament went into partial lockdown, before the siege ended dramatically just before 2pm.

There were loud bangs and flashes as up to a dozen heavily armed tactical officers swarmed the vehicle, firing a canister of gas inside and smashing the car's windows before dragging the man into custody.

Police officers and firefighters could be seen removing a device from the car before conducting tests on the vehicle.

NSW Police Assistant Commissioner Mark Murdoch told reporters the man had a container of flammable liquid, which AAP understands was believed to be petrol, which he was threatening to set alight.

Mr Murdoch praised the quick actions of police.

"When that man attempted to light a cigarette lighter, wind the windows of the car up with what we believe to be a container of flammable liquid in the vehicle, those officers put their lives on the line this afternoon and they resolved the situation in a peaceful manner," he said.

The man was receiving medical attention for minor cuts suffered in the struggle with police, Mr Murdoch said, but compared to the threats he was making those injuries were "very, very minor in the scheme of things".

He said a major incident at lunchtime in the centre of the CBD was of obvious concern.

"The mere fact we're in front of our state parliament, in the middle of Sydney in the middle of the day - certainly that posed a risk," Mr Murdoch said.

"(But) at no time was any member of the community at risk, no one in any building was at risk and importantly no members of parliament were at risk because of this incident.

"We were very comfortable at all times that we had the measure of the fellow."

Mr Murdoch could not confirm reports the man had sought a meeting with Premier Barry O'Farrell, who stayed inside parliament throughout.

But he did confirm the man was a "regular visitor" to the parliamentary precinct.

"He was making certain demands of the police but we weren't in a position to meet those demands, nor were we ever in a position to entertain them," he said.

"Our whole tactic was to contain and negotiate with the man.

Macquarie Street has now been reopened to traffic.

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Doubt cast over child safety at NSW YMCA

THE YMCA may be asked by the royal commission into child sexual abuse to look at whether two of its NSW senior managers are fit to run a child-safe organisation.

At a hearing of the commission in Sydney on Friday, the counsel assisting the commission, Gail Furness, cast doubts over whether the YMCA NSW was a child-safe organisation and whether its chief executive was fit to run it.

In a 105-page submission tabled by Ms Furness, she said evidence given at an October hearing into how the YMCA handled the employment of Jonathan Lord and subsequent revelations about him showed systemic failures in the organisation.

Lord is in jail for child sex offences committed over two years while he was employed at a YMCA centre in Sydney's south.

Ms Furness said the evidence given by senior and middle management as to the extent to which they accepted responsibility did not "permit confidence in their capacity to carry out the significant reforms necessary to make YMCA NSW a child-safe institution".

Evidence given by Liam Whitley, the YMCA's general manager for children's services, "raises a serious question about whether he is a fit and proper person to hold a position of senior management in an organisation that is responsible for the care and protection of children".

Mr Whitley reports directly to NSW chief executive Philip Hare. Ms Furness said Mr Hare's evidence also raised a serious question about his appropriateness.

Ian Neil, representing the YMCA, said the assessment of whether anyone was fit and proper to hold any position required not just an evaluation of particular conduct but of other relevant conduct and of their character.

Justice Peter McClellan asked if he would be troubled by a recommendation from the commission that the YMCA considered whether the men, as persons, were appropriate to the positions they held.

Ms Furness said if the commission was prepared to make the finding that the YMCA review their appropriateness, she would not pursue it further.

After an adjournment, Justice McClellan said the commission would not itself make the finding that Mr Whitley and Mr Hare were not fit and proper to hold their positions but would consider recommending that the YMCA look at their appropriateness.

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Toll wins Coca-Cola Amatil contract

Toll has won a $380 million contract to distribute Coca-Cola Amatil's products across Australia. Source: AAP

TOLL Group has won a $380 million contract to transport Coca-Cola Amatil's beverages across Australia.

The five year contract involves bulk distribution and interstate road, rail and sea transport, and nearly doubles Toll's existing revenue gained from this work.

Toll's head of contract logistics Bruce Wilson said the contract build on the company's existing relationship with Coc-Cola Amatil.

"As a long term supplier of transport services to the beverage industry throughout the Asia Pacific region, we look forward to working with Coca-Cola Amatil to improve their supply chain," he said.

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Big paper mill fire in Sydney

AROUND 100 firefighters are battling a serious blaze at a paper mill in Sydney, with the fire spreading from stacks of paper to a three-storey building.

Three ladder appliances were deployed on Thursday afternoon to pour water on the fire near Botany Road at Matraville.

Fire & Rescue NSW Commissioner Greg Mullins said the blaze had spread from paper stacks into an adjacent three-storey building.

"We're going to be here for many hours; it's quite a serious fire," he told Macquarie Radio.

Firefighters also had to battle burning oil inside a building.

Workers were evacuated from the site but no injuries have been reported.

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Hockey highly dishonest on budget: Swan

Former treasurer Wayne Swan has lashed out at his successor for dishonesty of the highest magnitude. Source: AAP

FORMER treasurer Wayne Swan has lashed out at his successor for "dishonesty of the highest magnitude" and fiddling the budget figures, after Joe Hockey forecast four years of deficits amounting to $123 billion.

Mr Swan, now a Labor backbencher, has joined colleagues in accusing Mr Hockey of padding out the economic forecasts to paint a bleak picture of the budget.

The mid-year budget outlook forecast deficits to 2016-17 of $123 billion, $68 billion more than the pre-election outlook in August.

Underpinning the deteriorating figures are growth forecasts well below the long-run average, which Mr Swan said were being used to "make the numbers look as bad as possible".

"Out of his $68 billion in additional accumulated deficits over the next four years, $54 billion comes from his forecasting fiddle and the rest is spending decisions he's taken since being elected just over three months ago," Mr Swan wrote on his Facebook page.

"He's trying to put these large write downs all at the feet of the previous Labor government.

"This is dishonesty of the highest magnitude."

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Bega pulls out of cheese takeover battle

BEGA Cheese has pulled out of the three-way battle for control of Warrnambool Cheese and Butter.

The other Australian player in the fight, meanwhile, says it still has the best takeover offer, despite Canadian dairy giant Saputo sweetening its bid.

Bega Cheese, which started the bidding war in September, will let its bid lapse when its offer period closes on December 20.

Bega owns almost 18 per cent of Warrnambool shares, and said it would consider its options regarding that stake once its offer closes.

Murray Goulburn said on Wednesday its offer of $9.50 for each Warrnambool share "remains the highest current value offer" for Warrnambool's shareholders, before accounting for any increases in price that depend on certain ownership thresholds.

Saputo on Tuesday maintained its offer of $9.00 but has increased the amount it will pay if certain share thresholds are met. The bid is final.

Saputo's offer will rise to $9.20 if it gets more than 50 per cent of Warrnambool's shares, $9.40 if it gets more than 75 per cent, and $9.60 if it obtains more than 90 per cent.

Murray Goulburn said there was a significant risk Saputo would not achieve the 50 per cent, 75 per cent or 90 per cent ownership level required to trigger its offer increases.

"This risk is heightened due to the presence of a number of industry participants on WCB's share register, who currently own approximately 46 per cent of WCB in total," Murray Goulburn said.

As well as Bega Cheese's holding, Murray Goulburn has over 17 per cent, and Kirin-owned Lion about 10 per cent.

Saputo currently has nearly 17 per cent but WCB shareholders who accepted the Saputo offer before December 17 have withdrawal rights.

Murray Goulburn's bid of $9.50 is conditional upon it obtaining more than 50 per cent of Warrnambool shares.

It has also filed an application with the Australian Competition Tribunal for authorisation to merge with Warrnambool on the grounds that a merger would be of public benefit.

The tribunal is expected to make a decision by the end of February.

Murray Goulburn managing director Gary Helou has urged Warrnambool shareholders to wait until the outcome of the merger application authorisation so that Murray Goulburn's offer can be considered on its merits.

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NSW govt to appeal IRC super decision

THE NSW government will appeal a decision by the industrial umpire that public sector workers should be paid superannuation on top of their 2.5 per cent wage cap.

Treasurer Mike Baird said the Industrial Relations Commission (IRC) had on Tuesday upheld a union application for workers to be paid superannuation in addition to any wage increase, rather than be included in the 2.5 per cent cap that was set by the government.

Mr Baird said the decision failed to take into account the state of NSW's finances.

"Public sector wages make up almost half the state budget so it is critical that we continue to deliver wage increases that are both fair for employees and affordable for NSW," he said in a statement.

If the IRC's decision was left unchecked and superannuation increases were not absorbed into the government's existing wages policy, Mr Baird said expenditure could increase by $860 million over the forward estimates.

He said the government would appeal the IRC's decision.

"We make no apologies for taking every effort to control spending, while ensuring fair and affordable wages are provided across the public sector," he said.

Unions NSW Deputy Assistant Secretary Mark Morey said the IRC simply upheld the government's own legislation on wages, which capped increases at 2.5 per cent.

Had the government been successful, he said public sector workers would have seen wage increases of 2.27 per cent.

"There has been significant cuts to public sector employment and jobs over the last two-and-a-half years," he told AAP.

"Workers are already taking on more work but are getting paid less."

Mr Morey said the government had run a "capacity to pay" argument at the IRC, but this had not been successful.

"We will certainly have a look at what they are seeking to appeal the decision on," he said, vowing unions would continue to fight.

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NBN rollout is scattered: Switkowski

TELSTRA management has directly contradicted claims by its workforce that the company's copper network is in disrepair, a Senate Select Committee into the National Broadband Network has heard.

Under questioning from Greens Senator Scott Ludlum, Telstra director of government relations Jeff Shaw would not guarantee an audit of its copper network would be conducted ahead of its sale to the Australian taxpayer.

"They are matters that will be discussed in the context of negotiations," Mr Shaw said.

Key parts of a strategic review into the NBN presented by Mr Turnbull last week have been blacked out - including an estimation of the cost of Telstra's copper network.

The committee heard two weeks ago from Telstra staff, who said 70 per cent of the network's joiners were being patched up with plastic bags, gaffer tape and gel to protect parts of the network contained in pits.

Mr Shaw on Tuesday refuted the figure.

"Do you want to hazard a statistic," Senator Ludlum asked.

"I can't," Mr Shaw said.

Earlier, NBN Co executive chairman Dr Ziggy Switkowski told the committee he would not "buy into" questions asking him to guarantee internet speeds.

"One of the problems I have found in reviewing the past is there has been a too-quick take-up of words like 'guarantee'," Mr Switkowski said.

"It's clear after four years of the NBN, guarantees have lost currency."

Committee chair Senator Stephen Conroy repeatedly asked Mr Switkowski if the roll-out was being deliberately slowed.

Liberal Senator Anne Ruston accused the chair of trying to verbal Mr Switkowski.

"We have inherited a somewhat dissatisfied group of partners who are dissatisfied with us, who have slowed deployments," Mr Switkowski said later.

"There's no change in the current strategy. We are rolling out fibre to the premises where we can.

"We have a machine ... that is running at four or five thousand (homes) a week, which it was during Senator Conroy's time."

The coalition on Thursday released a strategic review of the NBN, which found that under Labor's plans, the rollout would miss its 2021 target by three years and cost $73 billion - up from $43 billion - to complete.

Mr Switkowski said the rollout had been largely scattered, and involved many contractors doing sub-critical work.

The committee heard that divisions within NBN Co had been providing different sets of figures on the same subject.

The review also found the government would not be able to meet its pledge of delivering 25 Mbps to all Australians by 2016, and its NBN plans would cost 40 per cent more than the $29.5 billion estimated in April.

Mr Turnbull said the coalition remained committed to limiting its equity investment in NBN Co to $29.5 billion, with the excess cost to be made up through debt.

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