Cyprus shellshocked over eurozone bailout

RESIDENTS of Cyprus have reacted with shock after the government agreed to a 10 billion euros ($A12.62 billion) bailout that includes an unprecedented levy on all bank deposits.

The debt rescue package, agreed with the eurozone and International Monetary Fund early on Saturday morning after around 10 hours of talks in Brussels, is significantly less than the 17 billion euros Cyprus had initially sought.

It includes 5.8 billion euros to be raised through the bank deposit levy of up to 9.9 per cent, which will apply to everyone from pensioners to Russian oligarchs and tens of thousands of British expats.

At the same time, a "withholding tax" would be imposed on interest on bank deposits, and Cyprus will have to hike corporate tax to 12.5 per cent from 10 per cent and sell off state assets to help balance the public finances.

Though it was reached too late for Cyprus newspapers the bailout deal prompted some to queue up outside banks to withdraw cash from ATMs.

But analyst Sony Kapoor cautioned that there was no point, tweeting: "Dear Cyprus bank depositors, the time to line outside ur banks was last week, no point now."

A flood of angry comments flowed on the internet.

"The Cyprus deal is exactly why I don't keep money in the bank anymore. Brussels can commandeer your cash. Just like that," one person wrote on Twitter.

Government spokesman Christos Stylianides tried to calm shell-shocked Cypriots saying: "The situation is serious but not tragic, there is no reason to panic."

The levy will see deposits of more than 100,000 euros hit with a 9.9 per cent charge when lenders reopen their doors after a scheduled public holiday on Monday. Under that threshold and the levy drops to 6.75 per cent.

Co-operative bank branches, which, unlike the main lenders, usually open for business on Saturdays, kept their doors closed as their systems were shut down, officials said.

One furious customer reportedly parked his digger outside one such branch in the seaside resort of Limassol, claiming the government had "tricked" him into believing deposits were safe.

Cyprus - which accounts for just 0.2 per cent of the combined eurozone economy - is the fifth country to secure a debt rescue package from its eurozone partners in the three-year debt crisis.

The price tag is very small compared with two rescues for Greece worth some 380 billion euros, Ireland's 85 billion euros, Portugal's 78 billion and 41 billion for Spanish banks.

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Booze ban lifted for school fundraisers

Every school in Queensland will be able to serve alcohol at fetes and other fundraising events without a liquor permit under state plan to reduce paperwork 'headaches'. Source: adelaidenow

EVERY school will be able to serve alcohol at fetes and other fundraising events without a liquor permit.

The state will scrap the long-held requirement for schools and community groups to apply for a liquor permit for raffles and "low-risk" fundraising events of up to eight hours such as fetes and trivia nights.

Not-for-profit community events such as golf days, race days and rodeos will also be exempt under the plan.

The new laws are expected to be introduced to State Parliament next week.

"Social events are often held to raise money and schools and community groups shouldn't have to incur the cost of applying for the licences and go through all the paperwork," Attorney-General Jarrod Bleijie said.

"This is just common sense. Many of these regulations and requirements are unnecessary and cause headaches for groups planning an event."

Not only are those holding events such as trivia nights and fetes required to apply for the permit under the current system but they must also ensure a person with a Responsible Service of Alcohol certificate is on site during the event and, in some instances, security guards, he said.

Mr Bleijie said this created costs and paperwork for events he described as "essentially a group of mums and dads getting together trying to raise money for their school P&C".

"It is important to maintain accountability in the interest of the community, but I think it is also important to look at where processes can be simplified in relation to small events," he said.

Mr Bleijie said the change would cost the Government between $200,000 and $300,000 a year in lost revenue but it would also free up bureaucrats to focus on more important concerns.

Currently the Government hands out about 4000 community liquor permits a year.

There were 106 applications relating to school fetes last financial year and 281 relating to football clubs.

Brisbane Rotary Club vice-president Keith Watts, who is in charge of applying for liquor licences for his cubs raffles and fundraising events, welcomed the move that he said would mean more money would go to those who need it most.

P&Cs Queensland state president Dan Smith described the change as a positive step.

"Anything that helps people raise funds in an appropriate way is always going to be good if it reduces red tape ... (but) people still need to do their risk assessments and make sure they are doing the right thing," he said.

Mr Bleijie said nursing homes and hospitals would also no longer need to hold a liquor licence to serve two standard drinks per person to patients and residents under the changes.

Submissions to the Government's liquor licensing discussion paper, which raises the prospect of scrapping pub and gambling bans on Good Friday, Christmas Day and Anzac Day, closed on Friday.

The paper also raised other areas of potential change including earlier opening hours for bottleshops and allowing bigger bets on poker machines.

Smaller retailers are pushing for a ban on the sale of alcohol on supermarket shelves to be scrapped as well.

The Government is expected to make a decision on those changes in coming months.

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Hospital mistakes have a high price

TAXPAYERS have been forced to fork out hundreds of thousands of dollars after blunders at Queensland public hospitals led to more than 500 lawsuits being lodged against Queensland Health between July 1, 2010, and December 31, 2012. Source: Herald Sun

TAXPAYERS have been forced to fork out hundreds of thousands of dollars after blunders at Queensland public hospitals left a baby severely brain damaged, a woman unaware she was dying of breast cancer, and a patient without an unnecessarily amputated leg, new reports show.

More than 500 lawsuits were lodged against Queensland Health between July 1, 2010, and December 31, 2012, but fewer than a third were finalised and just nine reached settlements, according to documents obtained by The Sunday Mail under Right to Information laws. The failure to detect a woman's breast cancer resulted in the largest payout, of $610,000.

Lawyers specialising in personal compensation say they receive an average of two calls a day relating to medical negligence, but very few result in legal action, not because it can't be proven, but because it's not cost-effective.

Bennett and Philp Lawyers director Mark O'Connor said the system was geared against the disadvantaged - namely the aged, people on disability pensions, and stay-at-home mothers who were unlikely to return to the workforce.

"If someone has a damages claim worth less than $63,991 after July 1 last year, they can recover their legal costs, but less than that, no matter how valid the claim is, the most you can get back is $3210 - that's if your claim is worth more than $38,391. Below that you don't recover any legal costs at all," Mr O'Connor said.

"If you have a pensioner who suffers an injury in a public hospital that gives them a few months of grief, no matter how legitimate the claim is, the action almost certainly won't be pursued because you won't get the opportunity to recover any of the legal costs. Any legal costs come out of the damages and it's just not worthwhile."

Mr O'Connor said the difficulty with health litigation was exacerbated by the fact doctors were loath to give evidence against each other.

"Health applications are extremely difficult for a lot of reasons because lawyers who investigate claims are captive to expert opinion from other doctors and that's often difficult to get," he said.

The Sunday Mail's Right to Information investigation. The cost of medical mishaps.

"If I have a claim against an orthopaedic surgeon from Queensland I would have to source that opinion from NSW or Victoria because it's such a collegiate profession."

Health Minister Lawrence Springborg said the cases of improper treatment were a small portion of Queensland public hospitals' annual caseload.

"The Government regrets these incidents and believes the small number of people who are harmed are entitled to have their claims addressed through QGIF (Queensland Government Insurance Fund) and the legal process," he said.

"Unfortunately, false claims are made from time to time and for this and other reasons, careful consideration of each case is necessary."

alison.sandy@news.com.au

The Sunday Mail'sRight to Information investigation. The cost of medical mishaps.

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$20m fraud paid for his escort's high life

Lavish gifts: Belinda Leonard was paid generously for her services by Damian O'Carrigan, whose secret life we reported on earlier. Source: The Courier-Mail

Lavish gifts: Belinda Leonard was paid generously for her services by Damian O'Carrigan, whose secret life we reported on earlier. Source: The Courier-Mail

THE high-priced call-girl caught his eye on an escort website and became an expensive obsession that only ended when he was arrested for a record $20 million fraud.

For eight years Belinda Leonard was the secret lover of Leighton Contractors finance manager Damian O'Carrigan, attending to his every beck and call, court documents reveal.

In return, he lavished her with extraordinary gifts, including a 21ha property, a new house and car, overseas trips and the unfettered use of a credit card.

Ms Leonard used the credit card to rack up an estimated $1.4 million in bills, it is claimed.

The Sunday Mail first revealed details of O'Carrigan's incredible double life last month after his wife Julie told of her devastation at discovering his deception. O'Carrigan pleaded guilty in November last year to stealing $20 million from Leighton and is due to be sentenced next month.

Leighton has separately launched a civil action against O'Carrigan and others as it tries to trace and recover its stolen funds, targeting his assets and gifts to family and friends.

Initially, Ms Leonard was referred to as an "acquaintance" in the civil court case but documents filed this week detail her long-running relationship with O'Carrigan.

Like O'Carrigan's wife, Ms Leonard says she had no idea he was using stolen money to pay for his lavish lifestyle.

In an affidavit filed in court, she claimed she was working as an escort "to both female and male companions" on $3000 to $4000 a week in 2004.

O'Carrigan answered her advertisement on website Australian Babe around that time and began paying for her services "on a twice-weekly basis", she claimed. Two to three months later he asked her to work exclusively for him.

Ms Leonard's role was "to provide him with sexual services, companionship and other tasks", the affidavit stated. She would accompany O'Carrigan to company events, look after pets at his marital property, advise on racehorse trainers and shop for clothes.

O'Carrigan told her he made a fortune trading opals and that Leighton paid him $400,000 a year plus bonuses, she wrote.

"Between 2006 and the date I became aware of the allegations in these proceedings, I was required to attend the Fortitude Valley unit at least three times a week," Ms Leonard wrote. "These meetings could be at any time or any frequency and it was simply a matter of waiting for (O'Carrigan) to telephone."

In her affidavit she stated O'Carrigan made a call to her last October to say he had been accused of stealing at work.

"Prior to the telephone conversation ... (O'Carrigan) at no stage ever informed me that the funds provided to me and made available for me to use were the result of any illegitimate conduct."

In 2006 Ms Leonard wanted a 21ha property at Mt Pleasant, northwest of Brisbane.

O'Carrigan wrote in an affidavit filed in court that he spent $800,000 on the land, house, mortgage and additions.

He estimated he also spent $50,000 on overseas trips for Ms Leonard and $100,000 on imported horses and gave her a Citibank credit card.

david.murray@news.com.au

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Anglican leader to skip pope inauguration

THE new leader of the world's Anglicans, Justin Welby, will miss the inauguration of Pope Francis next week as he will be on a "pilgrimage of prayer", his residence has announced.

Welby, who became Archbishop of Canterbury last month, will be represented at Tuesday's inauguration mass at the Vatican by Britain's Archbishop of York, John Sentamu.

"Dr Sentamu will travel to Rome on the Archbishop of Canterbury's behalf on Monday in time for the celebrations the following day," Lambeth Palace said on Saturday.

Welby, leader of the world's 80 million Anglicans, will meanwhile be continuing a "journey in prayer" which he started last Thursday.

The tour encompasses five cities and six cathedrals in his province of Canterbury, which covers southern England.

On Saturday the journey took Welby to London, where he stopped to pray at various locations including St Paul's Cathedral.

A statement on his website said anyone was welcome to join the journey.

"Gather in the morning, pray for the whole day, or drop in whenever you have time," it said.

Welby's own official enthronement ceremony takes place next Thursday at Canterbury Cathedral.

Cardinal Kurt Koch will represent the new pope at Welby's enthronement.

Welby, a former oil executive, takes over as Archbishop of Canterbury from Rowan Williams, who led the Anglicans for the last decade.

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Tense Zimbabwe votes on new constitution

ZIMBABWEANS have voted on a new constitution that would pave the way for crucial elections in a country plagued by political violence.

Voters are expected to roundly back the text, which would introduce presidential term limits, beef up parliament's powers and set elections to decide whether 89-year-old Robert Mugabe stays in power.

Mugabe has ruled uninterrupted since the country's independence in 1980, despite a series of disputed and violent polls and a severe economic crash propelled by hyper-inflation.

The new draft constitution is part of a internationally-backed plan to get the country back on track. It is supported by both the veteran president and his political nemesis Prime Minister Morgan Tsvangirai.

But that has not prevented incidents of violence as activists keep one eye on the general election slated for July.

Shortly before polls in the constitutional referendum opened on Saturday, gunmen - later identified as plainclothes police detectives - seized a member of Tsvangirai's Movement for Democratic Change from his home southeast of Harare.

Police spokeswoman Charity Charamba told AFP Samson Magumura had been arrested on charges of attempted murder in connection with a recent firebomb attack that injured a Mugabe ally.

But MDC Finance Minister Tendai Biti said police could not confirm where Magumura was being held.

As he cast his vote on Saturday, Mugabe, whom many blame for past unrest, urged Zimbabweans to ensure the referendum proceeded peacefully.

"You can't go about beating people on the streets, that's not allowed, we want peace in the country, peace, peace."

Mugabe also used the opportunity to castigate the West, vowing they would not be allowed to monitor the upcoming general election.

"The Europeans and the Americans have imposed sanctions on us and we keep them out in the same way they keep us out," he said.

Casting his ballot, Tsvangirai expressed hope that a positive outcome would help catapult the country out of a crisis that has been marked by bloodshed and economic meltdown.

"I hope it sets in a political culture where we move from a culture of impunity to a culture of constitutionalism," he said.

Official results of the referendum are expected to be released within five days of the vote.

The new constitution would for the first time put a definite, if distant, end date on Mugabe's 33-year rule.

Presidents would be allowed to serve two terms of five years each, meaning that, elections permitting, Mugabe could rule until 2023, by which time he would be 99-years-old.

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Swiss tourist gang-raped in India: police

A SWISS female tourist was gang-raped in central India in front of her husband, police say, renewing the focus on the issue of sexual violence against women in the South Asian nation.

The woman was on a cycling trip with her husband in impoverished Madhya Pradesh state when seven to eight men attacked the couple late on Friday while they were camping, sexually assaulting the woman and robbing the pair, police said.

The attackers "tied up the man and raped the woman in his presence", local police official SM Afzal told AFP, adding that they stole 10,000 rupees ($A179) and a mobile phone from the woman.

The attack comes just months after thousands took to the streets to protest against India's treatment of women following the fatal gang-rape of a 23-year-old student on a bus in New Delhi in December.

"We are deeply shocked by this tragic incident suffered by a Swiss citizen and her partner in India," the Swiss foreign ministry in Bern said in a statement.

The Swiss ministry said its diplomats in India were in contact with local authorities and that it hoped the attackers would be "swiftly identified and would appear before a court to answer for their actions".

The couple were on their way to the tourist destination of Agra, home to the iconic Taj Mahal monument, in northern India when they stopped to camp for the night.

Indian media reports said the men were wielding sticks when they attacked the couple around 50 kilometres from Orchha, a popular foreign tourist destination in Madhya Pradesh.

The Swiss woman, aged about 40, was released on Saturday from hospital, authorities said.

Swiss Ambassador Linus von Castelmur has spoken to the victim and assured her "of all possible help", the Press Trust of India reported.

Some 20 people have been detained and were being questioned over the incident, senior local police officer DK Arya told the news agency.

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Berlusconi's lawyers seek to move trials

SILVIO Berlusconi's lawyers have filed motions to change the jurisdiction of two trials nearing verdicts in Milan.

Berlusconi's lawyers claim the Milan courts are biased against the former premier and sought on Friday to move the trials to Brescia, also in the Lombardy region.

Berlusconi's defence has been at loggerheads with the Milan courts as they have petitioned to delay hearings due to Berlusconi's hospitalisation for an eye inflammation.

Both courts have demanded exams by court-appointed doctors, enraging members of Berlusconi's party who allege judges are trying to sideline him politically.

Italy's magistrates association has denied the allegations, which it says undermine the judges' independence.

Milan courts are hearing Berlusconi's sex-for-hire trial and his appeal on a tax fraud conviction.

Berlusconi is expected to be released from the hospital later on Friday.

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Bruni takes revenge on 'penguin' president

FORMER first lady Carla Bruni has reportedly taken a swipe at French President Francois Hollande, depicting him as a bumbling buffoon with no manners in a song that features on her new album.

The lyrics of The Penguin were released on Friday and immediately interpreted as an attack on the man who succeeded her husband, Nicolas Sarkozy, as France's leader.

The former supermodel sings: "He takes on the airs of a king/but I know, the penguin/doesn't have the manners of a lord.

"Hey penguin!/If one day you cross my path again/I will teach you, penguin/I will teach you to kiss my hand."

French media saw the lyrics as a reference to Hollande's frosty treatment of his outgoing predecessor on the day he took over as president, notably declining to accompany Sarkozy to the car that carried him away from the presidential Elysee palace.

In French, describing someone as a penguin implies they are both clumsy and a little ridiculous in the manner of a clown or a buffoon.

The Penguin is one of the tracks on Little French Songs, Bruni's fourth album, which is due to be released on April 1.

It also includes a song, Chez Keith et Anita (At Keith and Anita's place), in which Bruni, a former girlfriend of Mick Jagger, depicts the drug-fuelled lifestyle of Rolling Stones guitarist Keith Richards and his longtime girlfriend, Anita Pallenberg.

The new album is Bruni's first since 2008's Comme Si De Rien N'Etait (Simply). Her musical career was put on hold while Sarkozy was in office.

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Turkish Airlines to buy up to 117 Airbuses

TURKEY'S national carrier Turkish Airlines says it will buy up to 117 planes from the European aircraft manufacturer Airbus, with deliveries scheduled between 2015 and 2020.

"The airline's board of directors announced 117 air planes will be joined to the existing fleet," the airline said in a statement announcing the deal estimated to be worth $US9.3 billion ($A9.00 billion) at catalogue prices.

The order centres on Airbus' A320 medium-haul family and includes firm orders for 82 planes and an option for 35 additional planes. The plane maker said engine selection would be made at a later date.

Most of the orders are for more fuel efficient planes in the A320 stable including the bestselling A320neo which is due for delivery in late 2015.

"The A320 Family with its economic benefits combined with superior cabin comfort will greatly contribute to meet our ambitious growth plans," said Faruk Cizmecioglu, Chief Marketing Officer at Turkish Airlines.

The purchase was smaller than a much rumoured order for 150 planes and hinted at by France's trade minister during a visit to Turkey in January.

Unlike other ailing carriers in Europe, Turkish Airlines is in an aggressive push to become a global airline player, putting itself in direct competition with Middle Eastern rivals Emirates and Qatar Airways.

In December, the airline passed orders for 15 long-haul A330 planes from Airbus and 15 777-300ER from Boeing. In February the airline followed up with a firm order for two more A330-300s.

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Another 800 dead pigs in Shanghai river

SHANGHAI has fished another 809 dead pigs out of its main waterway, bringing the total carcasses found this week to 8300 in a scandal highlighting China's troubles with food safety.

The swine effluent discovered flowing down the Huangpu river - which supplies a fifth of the commercial hub's drinking water - has added the country's most popular meat to a growing list of food items rocked by scandal.

"As of 3pm today, another 809 floating dead pigs have been fished out," Shanghai authorities said on FRiday on their Weibo account, a service similar to Twitter.

It gave assurances that authorities had not found any substandard pork products on the market and were closely monitoring water quality.

Shanghai has blamed farmers in neighbouring Zhejiang province for casting pigs thought to have died of disease into the river upstream, although officials from the area have admitted to only a single producer doing so.

Pork accounted for 64 per cent of total meat output last year, and China's increasingly wealthy urban residents consumed 21 kilograms of the meat per person in 2011.

Despite laws against the practice, animals that die from disease in China can end up in the food supply chain or improperly disposed of.

China faced one its biggest food-safety scandals in 2008, when the industrial chemical melamine was found to have been illegally added to dairy products, killing at least six babies and making 300,000 people ill.

Cheap recycled cooking oil is available nationwide, made illegally from leftovers scooped out of restaurant drains. Amid public disgust, authorities arrested more than 30 people over its sale, but the practise continues.

In another recent incident, the American fast-food giant KFC faced controversy after revealing that some Chinese suppliers provided chicken with high levels of antibiotics, in what appeared to be an industry-wide practice.

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Man drops appeal against UK race murder

ONE of the two men jailed for the racist murder of black teenager Stephen Lawrence has dropped his appeal against conviction, UK authorities have confirmed.

Gary Dobson was given a life sentence at the Old Bailey in January last year.

The second man, David Norris, is continuing his battle against conviction.

There will be a hearing in his case at the Court of Appeal in London. A date has not yet been set.

A Judicial Office spokeswoman on Friday confirmed Dobson had abandoned his renewed application to appeal his conviction.

Last summer, applications for permission to appeal by both men were rejected by a single judge who considered the papers from the case.

But Dobson and Norris, who are both in their 30s, still had the right to renew their applications before a panel of judges sitting at the Court of Appeal.

The trial judge, Justice Treacy, described the murder as a "terrible and evil crime".

He urged police not to "close the file" on catching the rest of the killers after the Old Bailey heard that a gang of five or six white youths set upon A-level student Stephen in Eltham, south-east London, in 1993.

He said the murder was committed "for no other reason than racial hatred".

"A totally innocent 18-year-old youth on the threshold of a promising life was brutally cut down in the street in front of eyewitnesses by a racist, thuggish gang," he told the pair.

The breakthrough in the investigation came when a cold case team of forensic scientists was called in.

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N. Korea test-fires short range missiles

NORTH Korea's military has fired short-range missiles into the East Sea (Sea of Japan), Yonhap reports, at a time of heightened tensions following Pyongyang's recent nuclear test.

A single unit of the North's military test-fired the missiles, presumed to be KN-02, estimated to have a range of about 120km, the report on Friday said.

"The launch was seen as testing its capability for short-range missiles. It seemed to be conducted on a military-unit level, not at a national level," said a military source in Seoul cited by the South Korean news agency.

The tests came a day after North Korea's leader, Kim Jong-un, oversaw a live-fire artillery drill near the disputed Yellow Sea border with South Korea, as the South's prime minister visited the flashpoint area.

The area has witnessed bloody North-South clashes in the past and, with military tensions at their highest level for years, is seen as the prime location for another confrontation.

Kim made an inspection tour of the same artillery units last week that was widely covered by state TV and the Korean Central News Agency (KCNA).

North Korea has threatened to unleash a second Korean War - backed by nuclear weapons - in response to UN sanctions imposed after its third atomic test in February and joint South Korea-US military manoeuvres.

So far, the land and sea border dividing the two Koreas has remained calm, if tense, and the South has dismissed the North's threats as a crude attempt to put "psychological pressure" on Seoul.

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One dead, several injured in unit blast

An explosion has destroyed a unit on George St, Beenleigh. Picture: Marc Robertson Source: The Courier-Mail

A MAN, 52, has died, several people were injured and residents evacuated after a unit explosion in Beenleigh, south of Brisbane.

Police said about  9.15pm, an explosion occurred in a unit on George Street that is believed to have been caused by a gas bottle.

A 52-year-old man was pronounced dead at the scene, and a man, 47, suffered significant burns and is in a serious condition in the Royal Brisbane Hospital.

Four other people were treated for shock and minor injuries at the scene.

An explosion has destroyed a unit on George St, Beenleigh. Picture: Marc Robertson

The unit block has been evacuated, and emergency accommodation has been set up at the Beenleigh PCYC for 16 residents that cannot return home, police media said.

Police will guard the scene at the unit complex in Beenleigh overnight. The scene will be further examined by specialist units today.

An explosion has destroyed a unit on George St, Beenleigh. Resident are evacuated from the units. Picture: Marc Robertson

A crime scene has been declared in the block of 16 units.

The residents of the complex have been evacuated and will not be able to return for up to two days, a police spokesman said.

 George Street between Boundary and Bougainville streets is closed with traffic diversions in place.

An explosion has destroyed a unit on George St, Beenleigh. Picture: Marc Robertson

 Neighbouring homes rattled after the huge bang which one woman said sounded like a bomb.

"It was extremely loud, having never heard a bomb I thought that was what it was," she said.

"The whole building shook, I couldn't tell what it was but I stayed safe inside."

An explosion has destroyed a unit on George St Beenleigh. A resident is evacuated from the units. Picture: Marc Robertson

Another resident in the street said he heard the huge bang around 9pm.

"I heard the explosion, then went outside and could see the fire," he said.

"The street then filled with fire and police"

On social media residents in Beenleigh and neighbouring suburbs said they heard the explosion and felt the shudder.

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Body of disabled boy found in WA

THE body of a 15-year-old intellectually disabled teenager has been found in rough terrain in Western Australia's Kimberley region.

The Aboriginal boy was reported missing on Wednesday morning in the vicinity of La Djadarr Bay, north of Broome, in difficult terrain and high temperatures.

Police said the teenager's body was found on Thursday afternoon.

They were not immediately able to provide further details, but said there were no suspicious circumstances in the boy's death.

A report was being prepared for the coroner.

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RBA plays down surge in jobs growth.

A RESERVE Bank of Australia official says the large surge in employment growth in February will not, by itself, have an impact on the interest rate outlook.

Total employment surged by 71,500 in February - the largest monthly increase since July 2000 and was much higher than the 8,000 increase the market was expecting.

The unemployment rate remained at 5.4 per cent for the third month in row, figures released by the Australian Bureau of Statistics showed on Thursday.

RBA assistant governor (economic) Dr Christopher Kent said the employment data was surprising.

"Our forecast has been for a gradual edging higher in the unemployment rate," he said in a speech to the Australian Institute of Building at the University of Technology, Sydney.

Dr Kent was asked how many months of good jobs figures would mean an end to the interest rate reduction cycle.

"I don't have an exact number, it's going to be very hard to predict," he said.

"I would personally think we don't turn things around on the basis of one month's number, this figure could be a little overstated.

"You don't put too much on one month's number, the labour market is very important, it's not the full story."

The RBA has kept the cash rate steady at three per cent at its two board meetings in 2013 after cutting it four times in 2012.

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Honda recalls vehicles for braking issue

Honda is recalling vehicles for brakes that can suddenly kick in when the driver isn't braking. Source: AAP

HONDA is recalling nearly 250,000 vehicles, including 1000 in Australia, for brakes that can suddenly kick in when the driver isn't braking.

No crashes have been reported related to the defect.

The affected vehicles were produced from March 2004 to June 2006.

The affected models include the Acura RL, Acura MDX, Pilot, Odyssey, Legend, StepWgn and Elysion.

The problem is caused by electronics and wiring in the vehicle-stability-assist system.

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Wild cyclonic weather to hit Lord Howe

A tropical cyclone is expected to cause extreme winds and surf on Lord Howe Island. Source: AAP

A TROPICAL cyclone is expected to pass close by Lord Howe Island on Friday morning, lashing the island with damaging winds and surf, the weather bureau says.

The Bureau of Meteorology (BoM) said on Thursday night that the category two cyclone was tracking south in the northern Tasman sea, and would pass to the east of the Pacific island on Friday morning.

On its website, BoM said the island off the NSW coast could expect "damaging surf, heavy swells and abnormally high tides" through the rest of Thursday and Friday.

This included wind gusts up to 150km/h until the early hours of Friday, it said.

BoM advised that the cyclone would weaken as it passed by the island.

It also said heavy rain caused by the cyclonic conditions would probably cause flash flooding overnight.

Residents and holidaymakers on Lord Howe Island were being warned to bunker down as the cyclone approaches.

Luke Hanson, the manager of the largest guest lodge on the island, said the conditions were "scary" as the cyclonic winds headed for the island.

"This cyclone's a direct hit, this will be the first time we've been whacked by a category two," Mr Hanson told AAP by phone.

"Everyone's a bit nervous, we've been getting all the guests settled, they've all had an early dinner and gone to bed, and they're just going to ride out the night.

"They don't come to Lord Howe Island in March thinking they're going to get hit by a cyclone."

He said residents had been strapping down outside furniture and sandbagging in preparation for the weather to worsen overnight.

Meanwhile, a high seas weather warning has been issued for Tropical Cyclone Tim, which is currently about 500km east northeast of Cairns.

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Man's body found near Broken Hill

THE body of an elderly man has been found near Broken Hill in outback NSW.

Police said two elderly men, aged 81 and 78, went missing on Wednesday near Broken Hill after leaving the isolated mining town in a four-wheel drive.

Police told AAP on Thursday night that a search for the men was launched on Thursday, and the vehicle was located on Thursday.

One of the elderly men was found deceased near the vehicle while the other man was found alive, they said.

The 4WD may have become bogged, police said.

The ABC reports that the men were on a prospecting trip in a remote part of the region.

It also reports that the man who was found alive has been taken to hospital and is in a stable condition.

In a statement, police said the 4WD was found in remote country known as Euriowie, about 70km north of Broken Hill, about 1.45pm (AEDT) on Thursday.

Police say a report will be prepared for the coroner.

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UK, France prepared to arm Syrian rebels

FRANCE and Britain are ready to arm rebels in Syria, even without full support from the European Union, French Foreign Minister Laurent Fabius says.

UK government sources said on Thursday that no decision had been taken to seek the lifting of the EU arms embargo on Syria, but "all options" remain on the table.

Prime Minister David Cameron hinted earlier this week that Britain could decide to ignore the arms ban and supply weapons to rebels fighting Bashar Assad's regime, telling MPs that he hoped the EU would act together if it became necessary, but "it's not out of the question we might have to do things in our own way".

Cameron is visiting Brussels for a summit with other EU leaders, but Downing Street said Syria was not expected to feature on the agenda.

It is understood that Britain wants to see what impact is achieved by the recent move to supply "non-lethal" assistance - including armoured cars, body armour and secure communications equipment - before further decisions are taken.

Fabius on Thursday suggested London and Paris could ask for an EU meeting planned for May to be brought forward, possibly to the end of March.

Speaking to France Info radio, Fabius said Britain and France were asking the Europeans to lift the arms embargo "so that the resistance fighters have the possibility of defending themselves".

If unanimous EU support for lifting the measure is lacking, the French and British governments would decide to deliver weapons, Fabius said, adding that France "is a sovereign nation".

"We must move quickly," he said.

Responding to Fabius's remarks, a UK foreign office spokesman said: "Our objective is clear - an end to the violence and a political transition to a more democratic Syria through a political solution.

"As it stands, the political track has little chance of gathering momentum unless the regime feels compelled to come to the negotiating table. They need to feel that the balance on the ground has shifted against them.

"The foreign secretary has been clear he hasn't ruled out any options for the future."

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Govt lets down defence victims: taskforce

THE head of a taskforce investigating alleged abuses in the defence force says he's disillusioned with the federal government's failure to act on claims - and thinks victims may be too.

DLA Piper taskforce leader Gary Rumble told a Senate Foreign Affairs Defence and Trade hearing on Thursday that he was disappointed none of the matters raised in a 2012 report had been acted on.

Law firm DLA Piper was commissioned to examine abuse allegations following the Skype scandal at the Australian Defence Force Academy (ADFA) in 2011 and uncovered 775 plausible abuse allegations across every decade since the 1950s. The earliest related to events in 1951.

"I am deeply concerned that the government's lack of action and decision last year may have distressed individuals who were hoping for some response to their specific issue (and) worn down the willingness of those who told their stories ... to continue to be involved," Dr Rumble said.

He said he was worried the lack of action would encourage perpetrators and potential witnesses to think they could escape punishment.

Dr Rumble said the taskforce had been directed to write a second report for the Chief of the Defence Force and Service Chiefs but only the defence minister, Stephen Smith, had seen it.

Mr Smith wrote to him saying it would not have been appropriate for anyone other than him to see the report.

Earlier on Thursday, Mr Smith told parliament new complaints to the taskforce's hotline had been building steadily since it opened last November.

At March 4, there had been 1041 complaints.

Just over 780 were made by personal phone call and in voicemail messages, while 260 were sent by email.

Taskforce chairman, retired judge Len Roberts-Smith, told Mr Smith there was no realistic prospect of its work being completed within the initial 12-month term, so the government has agreed to a six-month extension, with the taskforce now due to conclude its investigations by the end of May 2014.

As well, there will be an end-of-May 2013 deadline for new allegations to be made.

The taskforce is examining individual allegations, which if sufficiently substantiated could allow victims to claim up to $50,000 in compensation.

It is also considering whether a full royal commission is needed to address outstanding allegations at ADFA in the 1990s and allegations of sexual and other abuse of naval cadets at the former navy training centre, HMAS Leeuwin, which operated from 1960-84.

The taskforce said it appeared the abuse at Leeuwin occurred in the 1960s and 1970s.

"Much of the alleged bullying and violence appears to have been unreported," Mr Smith said.

Shadow Defence Minister David Johnston slammed the federal government's "snail pace" response and the way in which Mr Smith has handled the issue as if it were an "afterthought".

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Office affair drove wedge in business

An artist's sketch of Gerard Baden-Clay during day one of the committal hearing in Brisbane. Source: The Courier-Mail

GERARD Baden-Clay's disgruntled business partners told him to choose between his wife and his mistress after the affair began to affect their real estate agency, a court was told.

In a third day of evidence in a committal hearing at the Brisbane Magistrates Court, former partners of the real estate agent told of his "on again, off again" affair with colleague Toni McHugh.

The court also heard from a forensic expert who said Baden-Clay's wife Allison, 43, could not have died from an overdose of anti-depressant medication because there was only a "therapeutic dose" in her system when she died.

Baden-Clay, 42, is charged with murdering the mother of his three children and interfering with her corpse on April 20 last year.

The court was told Baden-Clay had many conversations with his former business partner from Century 21 Westside, Phillip Broom, about the affair with Ms McHugh.

Mr Broom said Baden-Clay spoke of needing a bigger car to ferry around both his own children and Ms McHugh's.

"At some points Gerard was leaving his wife to be with Toni, at other points he was leaving Toni to remain with his wife," Mr Broom told the court.

"As complex as it was in nature, it was confusing to me as to whether or not they were in the throes of an affair, had cooled off in their affair (or) had rekindled their affair."

But defence barrister Peter Davis said Mr Broom's business relationship with Baden-Clay "didn't end well"

.

"You obviously don't like him ... do you?" Mr Davis asked Mr Broom.

"You want to say that you're just giving honest evidence here - but you're here to sink the boot in, aren't you?"

Mr Broom disagreed, saying he and Baden-Clay had a "healthy respect" for each other's business skills.

Baden-Clay's other business partner, real estate agent Jocelyn Frost, told the court she was also aware of the affair.

"Certainly that was one of the main reasons the partnership failed at the end," she said.

"We asked him to either leave his wife or leave Toni or we wouldn't continue on."

Dr Robert Hoskins, a senior forensic medical officer with Queensland Health, said he did not believe Allison had enough of the anti-anxiety medication sertraline in her system to have killed her.

"Given the level in the blood, it would be exceptional (if she'd died from it)," he said.

"It's never happened before at that level."

Dr Hoskins also gave evidence about scratches on Baden-Clay's face, neck, shoulder, chest and hand - photographed by police on April 20 after he reported his wife missing.

The court heard Dr Hoskins examined photos of Baden-Clay's injuries to give his opinion on whether they were caused by shaving or someone's fingernails.

"You concluded that they had all the hallmarks of being caused by fingernails," Crown prosecutor Danny Boyle said to Dr Hoskins.

Dr Hoskins agreed, saying the deeper gouges on Baden-Clay's face looked as though they were at least six hours old when they were photographed on the morning Allison was reported missing.

But some smaller scratch marks in the same area looked fresher and could have been made by a razor blade, he said.

Asked by Baden-Clay's defence barrister whether he could rule out the larger marks being caused by shaving, Dr Hoskins said: "I think it's extremely, highly implausible, but I wouldn't rule it out absolutely."

Associate Professor David Wells, head of forensic medicine at the Victorian Institute of Forensic Medicine, also said the large scratch marks on Baden-Clay's face were most likely made by fingernails.

"The injuries that I'm seeing in this image, a number of broadly parallel abrasions ... do not represent incised wounds ... (that) one would, associate with a sharp object," he said.

Prof Wells said he also looked at photographs of Allison's fingernails and was of the opinion they were long enough to cause injuries of a "gouging nature".

The court also heard from Sue Heath - a friend of politician Dr Bruce Flegg.

Dr Flegg gave evidence on Tuesday about hearing screams on the night of April 19 while he was talking on the phone to Ms Heath. He also told the court of having to refuse Baden-Clay's request for a substantial loan.

Yesterday, Ms Heath told the court she had loaned Baden-Clay a mobile phone.

She had initially told police in a statement that she had done so without the knowledge of Dr Flegg.

"That's not quite right," Ms Heath said of the statement.

"We did discuss it.

"We agreed that I'd lend him the phone."

She said she had taken the phone to Baden-Clay's parents' home and left it there for him.

She also told the court that before Allison's death she had been asked by Dr Flegg to call Baden-Clay and break the news that they could not help with his request for money.

"He was quite distressed," she said.

"He obviously had problems.

"I actually felt Bruce was not in a position to have that kind of money."

The hearing continues on Monday.

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It was a nice feed, but just a little saltie

LUNCH TIME: Eric the 2m saltie has a go at swallowing a juvenile croc carcass. Source: Cairns Post

IT'S a croc-eat-croc world out there - especially on the Daintree River.

Passengers on board a recent wildlife cruise were treated to something a little different when they witnessed a 2m salivating saltie munching on a much smaller juvenile croc.

Solar Whisper Wildlife Cruise owner David White said the croc, nicknamed Eric, was fishing along the edge of the river bank. "Eric was swimming and fishing along the edge of the mud, probably waiting for fish or crabs to move, and acting normal, so we kept on moving," he said.

"When we came back past we saw him with a much smaller 2011-model baby crocodile in his mouth.

"He had obviously killed it and was attempting to swallow it but it was just a little too big, so he swam away with it.

"When we saw him a few days later he had a big belly so he must have finished it.

"It doesn't matter what it is, if a croc sees something move they will go for it.

"It probably happens quite often but we just don't really see it."

Visit cairns.com.au to see the full story

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Cyclone Tim to form off Cairns today

QUEENSLAND'S third cyclone of the season is tipped to form late this morning 450km northeast of Cairns and become a Category 1 or 2.

Meanwhile, its predecessor Cyclone Sandra has turned spiteful, increasing in power and bearing down on Lord Howe Island, 600km off the coast of central NSW.

Lord Howe is in for a battering, with wind gusts up to 150km/h as Sandra winds up briefly to Category 2 as it meets another weather system near the island tomorrow.

Sandra is expected to pass slightly east or even hit Lord Howe and beef up for less than 12 hours before gradually weakening into a low.

The north Queensland storm to be called Tim was travelling at 22km/h yesterday and is forecast to continue moving east-southeast at least into the weekend.

Initially following roughly the same track as Sandra, it will likely mean yet another mauling for southeast Queensland beaches, which have been smashed by a succession of big seas since January.

Weather Bureau severe weather forecaster Tony Auden said the storm was being driven away from the coast by a strong monsoon flow.

"It'll head that way for a few days but there is some potential for intensification. After that, it's too far off to call," he said.

"The good thing is that the environment doesn't appear too favourable for it to become a really intense system."

The storm's formation is expected to be hit by unfavourable winds and dry air being pushed north by the influence of Cyclone Sandra, which was travelling at 15km/h.

Mr Auden said it was not unusual for cyclones to ease or re-gather strength as with Sandra, nor travel so far south. At least every other year cyclones travelled as far south as NSW, though they usually moved east or south of Fiji.

"People have to remember that southeast Queensland has had a quiet run in terms of cyclones but they have come this far plenty of times before," he said.

"This one could go very close to Lord Howe and we've put a warning out for them."

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US retail sales surge 1.1pct in February

US retail sales have picked up sharply in February despite a payroll tax hike, driven largely by a surge in petrol prices, government data shows.

Retail and food services sales rose 1.1 per cent from January, the Commerce Department reported, much stronger than the 0.5 per cent increase estimated by analysts.

The department revised upward the January increase in retail sales to 0.2 per cent.

The February gain was the biggest in five months, pushing year-over-year sales up 4.6 per cent from February 2012.

Petrol sales at the pump jumped 5.0 per cent, after a 3.6 per cent rise in January, as petrol prices soared over the period.

Car sales rebounded, rising 1.1 per cent after falling 0.3 per cent in January, and building materials and garden supplies sales increased 1.1 per cent.

Excluding car sales, which tend to be volatile month-over-month, retail sales rose 1.0 per cent, double the gain expected.

Online shopping rose 1.6 per cent.

The robust February numbers came despite consumers' smaller pay packets after the January 1 expiration of a payroll tax cut.

The report suggested resiliency in consumer spending, which accounts for 70 per cent of US economic activity.

"At least so far, the increase in taxes has had minimal impact on household spending, showing that the economy retains a lot of momentum," said Joel Naroff of Naroff Economic Advisors.

Growth was not broad-based. Consumers cut back spending on furniture and home furnishings and in department stores, sporting goods, book and music stores, and restaurants and bars.

Core retail sales, those excluding cars, petrol and building materials - a better indication of the pace of consumer spending - were up 0.4 per cent.

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US stocks slip despite strong retail sales

US stocks have slipped in early trade despite a strong report on retail sales in February.

Fifteen minutes into trade, the Dow Jones Industrial Average was down 24.91 points (0.17 per cent) to 14,425.15.

The broad-based S&P 500 slipped 3.43 (0.22 per cent) to 1549.05, while the tech-rich Nasdaq Composite Index lost 7.69 (0.24 per cent) to 3234.63.

Retail and food services sales in February rose 1.1 per cent from January, the Commerce Department reported, much stronger than the 0.5 per cent increase estimated by analysts.

The retail sales are "another marker reflecting an encouraging pickup in economic activity," said Patrick O'Hare of Briefing.com.

The result "is clearly a source of relief for the equity market," O'Hare added.

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Alcohol problems up due to policies: FARE

ALCOHOL-RELATED violence and hospitalisations have risen significantly because successive NSW governments have failed to implement evidence-based policies, researchers claim.

The Foundation for Alcohol Research and Education (FARE) has on Thursday released a report examining the effect policies from a 2003 government summit have had on alcohol-related incidents across NSW over the past decade.

Since then, there has been a 37 per cent increase in hospitalisations attributable to alcohol, a 16 per cent increase in alcohol-related assaults and a 37 per cent spike in domestic violence linked to alcohol, the report says.

"What's happened since 2003 is we have made alcohol cheaper, more affordable and more available and we've seen a resulting increase in alcohol-related harms," FARE chief Michael Thorn told AAP.

More licensed premises trading for longer hours have contributed to the problems, he added.

There were also some improvements highlighted by the report.

Road accidents where alcohol was a factor dropped by 34 per cent and deaths involving alcohol fell 8 per cent.

But Mr Thorn is not happy with the figures and believes much more can be done.

"If they look at the evidence and act on those policies where the evidence is at its strongest, then they will have an impact on reducing alcohol-related harm," he said.

Public education programs, CCTV and tweaks to responsible service guidelines don't work, Mr Thorn said.

"There's no research evidence that (they) make any difference at all in changing behaviours, reducing harm, reducing alcohol consumption."

The most effective way to reduce alcohol-related problems is to limit supply and access.

This can be achieved by imposing closing times on licensed venues and raising the cost of drinks, Mr Thorn said.

Ahead of another alcohol summit on Thursday, Mr Thorn has called on the government to implement a 12-month statewide trial of a 3am lockout.

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Church sex diploma shocks Swedish parents

A "SHAGGING diploma" given to youths at a Swedish Lutheran Church confirmation camp has proved too much for parents who have complained that their 14-year-olds are too young for sex.

After attending a course entitled Love and Sexuality, the teenagers in the southeastern town of Ronneby were given a certificate stating they were "qualified for sex".

Vicar Mats-Ola Nylen said the course had been organised by a man purporting to come from the Swedish Association for Sexuality Education (RFSU), but the church later found out he hadn't worked for the organisation in years.

Suspicions were raised after parents complained to Nylen about the certificates, saying their teenage children weren't ready for sex.

They were also upset over the use of colloquial phrases like "giving someone a blow job".

"The whole camp revolves around different aspects of friendships and relationships," Nylen told AFP, adding that he felt betrayed by the man, who wore a t-shirt from RFSU at the event which took place over the weekend.

"In the past, young people have complained that the church doesn't talk about these issues."

The vicar had asked to listen in on the session but had been asked to stay away by the man, who said having the vicar there would have had an "inhibitive" effect on participants.

Giving 14-year-olds a certificate saying they were ready to "shag" was sending a mixed message, Nylen said.

"Under Swedish law you don't have a right to engage in sexual activities until you're 15," he noted.

A spokeswoman for RFSU, Josefin Morge, said the organisation stopped using the sex certificates in 2007, and that they had been part of a campaign "not primarily geared at youths".

Although the man no longer worked for RFSU, he had been hired on several occasions by the congregation with no complaints, said Pelle Ullholm, head of RFSU's outreach programs.

Young people who had more information weren't "necessarily sexually active at a younger age, but possibly at a later age," he said.

The man who held the course was not available for comment.

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Cardinals to begin historic conclave

CARDINALS are preparing for the start of an historic conclave to elect a new pope after Benedict XVI's shock resignation, with the odds favouring a Western conservative to lead the Catholic world.

At a grandiose mass in St Peter's Basilica the cardinals prayed for unity in the Church - a stark reminder of the infighting that often overshadowed Benedict's eight-year pontificate.

The 115 scarlet-robed cardinals burst into thunderous applause when the dean of the College of Cardinals, Angelo Sodano, publicly thanked the "beloved and venerable" Benedict in his homily.

As the cardinals prepared for the conclave, rainstorms drenched thousands of pilgrims watching the momentous event on four giant screens in St Peter's Square.

One barefoot man in a sackcloth habit knelt on the cobblestones in the pouring rain and was joined by another pilgrim who bowed his head in prayer, as a hymn echoed across the square.

The Princes of the Church will be cut off from the outside world inside the Vatican walls until they have made their choice in a centuries-old ritual - much of it carried out in Latin.

They took to Twitter to say their goodbyes to their online flock before the conclave, where jamming devices will block any communications.

"Last tweet before conclave: May Our Father hear and answer with love and mercy all prayers and sacrifices offered for fruitful outcome. God bless!" South African cardinal Wilfrid Napier said.

The cardinals have to swear not to reveal anything about their talks on pain of excommunication.

They will enter the Sistine Chapel in a procession under Michelangelo's famous frescoes starting at 1530 GMT (0230 AEST), chanting to invoke divine guidance.

The cardinals are then set to hold a first round of voting after which the ballots will be burnt in a special stove in the chapel.

The smoke famously turns white if there is a new pope but the Vatican has already said it expects the smoke from the burning of Tuesday's ballots to be black, indicating no pope has been elected.

Among the candidates, three have emerged as favourites - Italy's Angelo Scola, Brazil's Odilo Scherer and Canada's Marc Ouellet - all of them conservatives like "Pope Emeritus" Benedict XVI.

But there are more names in the rumour mill including cardinals from Austria, Hungary, Mexico, the Philippines, South Africa and the United States.

Bookmakers said Scola was the favourite, followed by Ghana's Peter Turkson and Scherer.

Irish bookmaker Paddy Power and Britain's William Hill said Scola's chances had improved dramatically and both gave the Milan archbishop odds of 9/4 to be the next pope.

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US stocks open with dip after bull run

US stocks have opened lower as investors take a pause after a series of gains took the Dow to a record close for five days in a row.

Five minutes into trade, the Dow Jones Industrial Average was down 6.60 points (0.05 per cent) at 14,440.69.

The broad-market S&P 500 fell 1.95 points (0.13 per cent) to 1554.27, while the tech-rich Nasdaq Composite dropped 10.13 points (0.31 per cent) to 3242.74.

With no major economic data on the calendar, "the major averages could take a breather today as investors look to take profits following a recent string of gains," Wells Fargo Advisors said in a market note.

On Monday, US stocks brushed off an early move toward a correction and posted modest gains. The Dow added 0.4 per cent to finish at an all-time high of 14,447.29. The S&P 500 rose 0.3 per cent to 1556.22, nine points shy of its record close, and the Nasdaq climbed 0.3 per cent to 3252.87.

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Tunisian man immolates amid govt crisis

A CIGARETTE vendor has suffered severe burns after immolating himself in an act of desperation on a Tunis street hours before MPs were to vote on a new government to pull Tunisia out of political crisis.

Officials named the man as 27-year-old Adel Cadre and said he hails from an extremely poor family in Teindable in northwestern Tunisia. He arrived in the capital a few months ago to look for work.

"This is a young man who sells cigarettes because of unemployment," witnesses quoted Cadre shouting before he set himself on fire on the steps of the municipal theatre on Habib Bourguiba avenue - epicentre of the 2011 uprising that toppled ex-dictator Zine El Abidine Ben Ali.

Passers-by rushed to douse the flames but not before Cadre had suffered serious burn wounds. He was still conscious when he was rushed to the Ben Areas hospital by emergency services.

Officials said Cadre, who eked out a living peddling cigarettes in the streets of Tunis, was a broken man.

"His life is not in danger but he has third-degree burns to the head and the back," emergency services spokesman Mango Caddie said.

"He was demoralised. His father died four years ago. He has three brothers and the family is very poor."

The number of people committing suicide or attempting to take their own lives has multiplied in Tunisia since a young street vendor set himself on fire on December 17, 2010, in a drastic act of protest against police harassment.

Mohamed Bouazizi's death in the town of Sidi Abused ignited a mass uprising that toppled Ben Ali the following month and touched off the Arab Spring uprisings across several countries in the Middle East and North Africa.

Economic and social difficulties were the key factors that brought down Ben Ali's regime and two years since he fled from Tunisia unemployment and poverty continue to plague the north African country.

The economy was badly affected by the revolution, which paralysed the strategic tourism sector, although the country is out of recession and posted 3.6 per cent growth in 2012.

Unemployment remains high at about 17 per cent, especially among young graduates.

In addition to economic hardships, Tunisia is grappling with a political crisis that has been exacerbated by the daylight murder on February 6 of Chokri Bailed, a leftist opposition leader.

Parliament was to meet later Tuesday to debate a new cabinet line-up headed by premier-designate Ali Larded of the Annealed. Officials said a vote could be delayed until Wednesday.

The new cabinet was formed as part of efforts to resolve the political impasse, which last month brought down the government of Aimed Jabali.

The MPs are also to vote on a timetable for the adoption of a new constitution and the staging of legislative elections.

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Crisis not over, Bundesbank warns

THE eurozone debt crisis is not yet over, even if calm appears to have returned to the financial markets, the Bundesbank warned on Tuesday as it set aside billions of euros in new risk provisions.

"Even if reform policies are kept to, the necessary adjustments in the crisis countries are still going to take years," the head of the German central bank, Jens Weidmann, told a news conference.

"The growth rates seen before the crisis, which were partially artificially inflated, will not be achievable for a long time," he said.

Weidmann also complained that policymakers in some countries still lacked a clear direction.

"The reform process has stalled in France; in Italy, the elections have cast a question mark over it; and the situation in Cyprus is even less clear," he said.

"The crisis is thus not over, despite the calm that has returned to the financial markets in the interim," the central bank chief insisted.

Turning to Germany, Europe's biggest economy which has managed to escape the recession that many neighbours still find themselves in, Weidmann said: "the German economy was still in good shape ... despite the difficulties in many European partner countries."

Nevertheless, the long-running crisis "represents the most significant risk for the economy in Germany," Weidmann warned.

"Only some of the confidence lost as a result of the crisis has been recovered so far," he noted.

As the year progressed, growth could be expected to become stronger, but this would depend on the absence of further shocks to confidence, he argued, insisting that it was up to politicians, not Europe's system of central banks to solve the crisis.

The Bundesbank's net profit for last year rose only slightly from a year earlier, because the central bank had decided to set aside billions of euros more in risk provisions, Weidmann continued.

The bank's 2012 net profit amounted to 664 million euros ($A849.27 million), compared with 643 million euros in 2011.

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Chevron reaffirms 2017 target on oil, gas

CHEVRON Corp has reaffirmed it will meet its target for a large increase in oil and natural gas output in 2017.

The US oil giant, outlining its medium-term investment strategy to analysts, said it would hit 3.3 million barrels a day of oil-equivalent in 2017, up from 2.6 million barrels a day in 2012.

Chevron also said it had "momentum" for growth beyond 2017.

Chevron pointed to a range of large "mega-projects" that will enable the boost in output, such as the $52 billion Gorgon liquefied natural gas project in Australia and a number of large deepwater projects in the Gulf of Mexico.

Chevron's investment program comes as oil majors including ExxonMobil boost capital spending to advance a new generation of projects to make up for declining oil and gas fields. Chevron has boosted its 2013 capital budget to $US36.7 billion ($A35.89 billion), up from $34.2 billion in 2012.

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N.Korea nuke strike only if threatened: US

NORTH Korea would likely only use nuclear weapons if it perceived a threat to its survival, but the United States remains uncertain how Pyongyang would define such a threat, the US intelligence chief says.

"Although we assess with low confidence that the North would only attempt to use nuclear weapons against US forces or allies to preserve the Kim (Jong-un) regime, we do not know what would constitute, from the North's perspective, crossing that threshold," James Clapper, director of national intelligence, said in an annual report to Congress on global security threats.

But the United States faces a challenge trying to discern North Korea's strategic calculations when it comes to its nuclear weapons.

"We do not know Pyongyang's nuclear doctrine or employment concepts," the report said.

North Korea leader Kim Jong-un has threatened to "wipe out" a South Korean island amid fresh international pressure and new sanctions over the North's nuclear weapons and missile tests.

While much of the North's rhetoric has been dismissed as bluster, the latest threat to the border island of Baengnyeong, which has around 5000 civilian residents, appears credible, analysts say.

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Litvinenko suspect 'pulls out' of inquest

THE chief suspect in the polonium poisoning of Russian dissident and ex-security agent Alexander Litvinenko says he will take no further part in the British inquest into the death, blaming London's decision to keep some sensitive material secret.

Russian MP Andrei Lugovoi said his legal representatives would no longer take part in the inquest or present evidence, claiming that he had lost faith in the British justice system.

"I am forced to announce that I am pulling out of the coroners' inquest and will not take part in it any more," Lugovoi said at a news conference, flanked by his lawyer.

The fact-finding inquest into Litvinenko's death - which does not rule on guilt - is expected to begin later this year. So far there have been pre-inquest hearings.

Lugovoi blamed his decision on British Foreign Secretary William Hague's request to keep some of the evidence secret in the interest of national security.

"There is the position of Britain to make it secret and there is my position: not to take part because it has been made secret, because I don't see the point," he said.

"The whole process looks like a farce."

Hague's decision has also prompted complaints from British media and Litvinenko's widow Marina, whose lawyers have argued the block is a cover-up to improve relations with Russia after it emerged in the pre-inquest review that Litvinenko worked for British spy agency MI6.

The inquest will examine the possible involvement of Lugovoi and another Russian, Dmitry Kovtun, in Litvinenko's death as well as the possible involvement of Russian state agencies, according to a website on the inquest set up by Britain.

The former spy and now MP for a nationalist party has been named by British police as the chief suspect in Litvinenko's 2006 murder after apparently drinking tea laced by polonium, but Russia refuses to extradite him in a row that has strained ties.

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Sharks, manta rays win trade protection

SEVERAL shark species and the manta ray have won international trade protection in a move hailed by conservationists as a breakthrough in efforts to save them from being wiped out by overfishing.

The deal at a major wildlife conference in Bangkok on Monday marked a rare victory in the fight by environmentalists to reverse a slump in populations of sharks - the world's oldest predator - due to rampant demand for its fins.

Rather than a complete ban, the 178-member Convention on International Trade in Endangered Species (CITES) voted to restrict cross-border trade in the oceanic whitetip, the porbeagle, three types of hammerheads and the manta ray.

The agreement, which must still be formally approved by the CITES plenary session, delighted conservationists who warn that Asia's voracious appetite for shark fins is causing their population to plunge.

"The tide is now turning for shark conservation," said Elizabeth Wilson of Pew's Global Shark Conservation Campaign.

"With these new protections, oceanic whitetip, porbeagle, and hammerhead sharks will have the chance to recover and once again fulfil their role as top predators in the marine ecosystem."

Monday's deal would require countries to regulate trade by issuing export permits to ensure their sustainability in the wild, otherwise they could face sanctions by members of CITES, a global treaty which protects some 35,000 species.

Under the CITES framework, however, a party may ask to reconsider the decision at the plenary session, as happened in 2010 when an initial agreement to control international trade in the porbeagle was later overturned.

Conservationists say sharks are slow to reproduce and may become threatened with extinction without better monitoring and management.

"During their lifetimes they have relatively few offspring and they only start reproducing at a relatively late age - they're more like mammals in many ways than fish," said Colman O'Criodain, an expert with the WWF.

Asian nations led by Japan and China - where shark fin soup is considered a delicacy - tried in vain to block the proposals, which were pushed by countries including Brazil, Colombia and the United States.

If the deal gets final approval, the five species would join the great white shark, the whale shark and the basking shark, which already enjoy international trade controls. Members would have 18 months to introduce the new measures.

The CITES meeting is also discussing how to tackle illegal trade in ivory and rhino horn with environmentalists calling for wildlife trade sanctions against countries that fail to take sufficient action.

A proposed ban on international trade in polar bears was rejected last week, with opponents warning that it would distract from the bigger threat from global warming.

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Frenchman to proclaim new pope to world

THE honour of announcing the next leader of the world's 1.2 billion Catholics will fall to French cardinal Jean-Louis Tauran, who will proclaim the outcome of the conclave from St Peter's Basilica.

The Bach-loving former Vatican diplomat will speak in Latin on a porch over St Peter's Square after the conclave of cardinals announces a new pope has been elected by sending out white smoke from the Sistine Chapel.

"Annuntio vobis gaudium magnum. Habemus papam! (I announce to you a great joy. We have a pope!)", Tauran will say and then announce the name of the elected cardinal and the papal title he has chosen.

The 70-year-old from Bordeaux has the official title of "cardinal proto-deacon", meaning he is the most senior cardinal from the order of deacons.

The college of cardinals is divided up into three orders: bishops, priests and deacons.

Tauran used to be the top Vatican official for inter-religious dialogue. He previously served as head of the Vatican's diplomatic service and travelled the world for late pope John Paul II.

His own election is seen as highly unlikely but if this happens then it would fall to another cardinal to announce his name in front of the cheering crowds in St Peter's and TV cameras from around the world.

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Greece appoints new privatisation chief

GREECE has appointed its third privatisation chief in less than a year as it struggles to speed up delayed state asset sales to meet bailout goals.

The head of Greece's main water provider EYDAP, Stelios Stavridis, was brought in to spearhead a lagging push to raise 2.6 billion euros ($A3.3 billion) in asset sales this year.

The previous privatisation head resigned on Saturday amid an investigation into his previous position as head of Greece's main power group PPC.

A prosecutor had previously pressed criminal charges against the PPC board over a 2007 power plant construction contract that ran over budget.

The general secretaries of the ministries of finance and development - who previously sat on PPC's board - also stepped down.

The blow came as Greece is in the midst of an audit by international creditors over reforms, including privatisations, that are needed to unlock a new slice of loans this month.

The Greek government had previously pledged to meet, if not exceed, its annual privatisation target this year.

The first official tasked with heading the Greek state privatisation agency resigned in July 2012, citing a lack of government support and planning delays.

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S Africa dragging victim 'in fatal crash'

A MOZAMBICAN taxi driver who was dragged behind a police van and died in custody was in a car accident that killed five schoolchildren just days before his death, a South African court has heard.

Mido Macia, 27, faced charges of culpable homicide over the incident, a lawyer defending the nine policemen charged with his murder said at a bail hearing on Monday.

The defence appeared to argue that some of Macia's injuries uncovered by an autopsy may have been a result of the accident, after prosecutors earlier said Macia was brutally abused before and after his arrest late last month.

No more details about the car accident were given.

Bystanders on February 26 filmed Macia being manhandled, handcuffed to the back of the van and dragged hundreds of metres through the streets of Daveyton, a town east of Johannesburg.

Just over two hours later he was found dead in his cell, with extensive injuries, including cuts and bleeding on the brain, in a case that shocked South Africa and the world.

At Monday's bail hearing, the court heard about the extent of his injuries.

"The deceased died of internal injuries that demonstrate the degree of violence inflicted," said prosecutor December Mthimunye, reading from an internal police investigator's affidavit.

On Friday, the nine policemen said at a hearing at Benoni magistrate's court they were not guilty.

They said Macia, a minibus taxi driver, had assaulted a policeman while resisting arrest after being confronted for parking his taxi on the wrong side of the road.

The driver of the police van claimed he drove away to escape the angry crowd that had gathered, and did not know Macia was being dragged behind.

None of the accused explained how the Mozambican ended up cuffed to the van or dead in his cell.

Footage of the incident went viral and cast a spotlight yet again on the conduct of South Africa's police force.

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Icahn in Dell confidentiality agreement

CORPORATE raider Carl Icahn says his investment firm has entered into a confidentiality agreement with Dell, which is facing a battle over its plans to take the computer maker private.

The agreement will allow Icahn access to detailed financial information which is not publicly available.

A brief statement issued by Icahn said the agreement was signed on Sunday.

"Icahn Enterprises looks forward to commencing its review of Dell's confidential information," the statement said.

Icahn has taken a stake in Dell and is opposing the buyout plan led by founder Michael Dell, claiming it undervalues the company, according to documents released by Dell.

Icahn on Friday told AFP he is doing what he has always done: pressing companies and chief executives to perform better and reward investors better.

"What we do by shaking up a large number of companies that need shaking up is very salutary for our economy," Icahn said in an exclusive telephone interview.

"Many of our companies, but with many exceptions, are run by CEOs that should not be running them," Icahn said. "And as a result, these corporations are not as productive as they should be."

Some reports indicate other offers could be made for Dell which are higher than the $US24.4 billion ($A24.02 billion) buyout. Icahn's letter last week suggested a special dividend paid to shareholders would be a better plan.

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EU bans comestics tested on animals

AFTER years of trying, the EU has finally put into effect a complete ban on the sale of cosmetics developed through animal testing.

The EU has progressively clamped down on animal testing since the 1990s and banned most such products in 2009, but it left a few exemptions for several toxicity tests which will now cease.

The ban applies to all products, wherever in the world they come from.

The European Commission has "thoroughly assessed the impacts of the marketing ban and considers that there are overriding reasons to implement it", it said in a statement on Monday.

"This is in line with what many European citizens believe firmly: that the development of cosmetics does not warrant animal testing."

EU Health Commissioner Tonia Borg said Brussels would continue "supporting the development of alternative methods and to engage with third countries to follow our European approach".

Earlier this month, Japanese cosmetics giant Shiseido said it was dropping animal-tested products, with some exceptions where such tests were the only way of proving the safety of goods already on sale.

"Our business partners that supply material to us will not rely on animal testing while we will no longer outsource such testing to outside labs," Shiseido said.

Activists have for years pressured cosmetic firms and other companies that use animal testing to find alternatives to the practice, which they say is cruel and unnecessary.

Shiseido, which dropped animal testing at its own labs in 2011, said it could ensure the safety of its products through other means, including using data from past experiments, human volunteers and other kinds of testing.

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Muscat sworn in as Malta's new PM

MALTESE Labour leader Joseph Muscat has been sworn in as prime minister after his party swept to power for the first time in 15 years in the eurozone's smallest member state.

The 39-year-old Muscat, an ex-journalist and former member of the European Parliament, scored a landslide win against the incumbent Nationalist Party of Lawrence Gonzi in elections on Saturday.

"We want to work with the opposition and all those who do not agree with us but who are willing to work with us. Yesterday, this government received a historic mandate," Muscat said after being sworn in on Monday.

Labour won 54.83 per cent against 43.34 per cent for the Nationalist Party. The rest of the vote went to the Green Party and independent candidates.

The Labour Party will have a majority of between seven and nine seats in the 65-seat parliament.

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Voters give Napthine a tick as Vic premier

HE'S been in the job less than a week but the latest poll shows Denis Napthine is the preferred premier of Victoria.

The Fairfax Media/Nielsen poll, taken on Friday and Saturday in the wake of Ted Baillieu's shock decision to quit as premier, shows Dr Napthine is well ahead of his predecessor as preferred leader by 45 per cent to 38 per cent.

He also nudged out Opposition Leader Daniel Andrews as preferred premier by 40 per cent to 38 per cent, with 21 per cent of voters uncommitted.

However, the good news stops there because voters would elect Labor - 52 to 48 - in two-party preferred terms, signalling the Victorian coalition's first one-term government since 1955.

Dr Napthine became premier last Wednesday night after Mr Baillieu's sensational departure saying he was no longer confident of his party's support.

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Melbourne motorcyclist clocked at 174km/h

A MOTORCYCLIST has had his machine impounded after he was clocked travelling at 174km/h in an 80km/h zone on the Princes Highway in Melbourne's southeast.

Casey Highway Patrol clocked the speeding Honda motorcycle at midday on Sunday at Pakenham.

The 45-year-old rider from Officer is expected to be charged on summons.

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No he couldn't: Obama brother loses poll

HIS half-brother may be the most powerful man in the world but that stardust seemed not to rub off on Malik Obama as he failed miserably to win a county governor's seat in Kenya's recently concluded elections.

Obama, 54, who shares a father with United States President Barack Obama, won just 2792 votes - some 140,000 behind the final winner - in his bid to claim the seat for his home area in western Kenya.

"He was not the winner but at least he competed," said Benson Mughatsia, returning officer for Siaya county, where Obama's ancestral home is located. "He was not last but he was still a long way off."

Standing well over six feet, Obama, who describes himself as an economist and a financial analyst, told AFP on the campaign trail he would use his contacts with Washington to bring development to the rural backwater he hoped to govern.

"Why would my people settle for a local connection when they have a direct line to the White House," he said.

Campaigning under the slogan "Obama here, Obama there", he said he dreamed of bringing chains like McDonald's to the area and launching a bid for the presidency.

Obama, who was refusing to take calls from journalists on Sunday, might have been undone by his much-vaunted refusal to give handouts, a common feature of Kenyan election campaigns where voters collect small sums of money to attend rallies.

Meanwhile, Barack Obama is facing a possible diplomatic headache in how to deal with Kenya's new president-elect Uhuru Kenyatta, who faces trial at the International Criminal Court in The Hague.

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Malta's opposition Labour wins election

MALTA'S opposition Labour party has won a general election for the first time in more than 15 years, with party leader Joseph Muscat claiming a "landslide victory" in the eurozone's smallest member.

Early results based on a sample of ballots from Saturday's vote showed Labour ahead with 55 per cent to 43 per cent for the incumbent Nationalist Party led by outgoing Prime Minister Lawrence Gonzi, who immediately conceded defeat.

The provisional results suggest Labour could clinch one of the most comfortable majorities in the 65-seat parliament since the tiny Mediterranean island became independent in 1964.

"I wasn't expecting such a landslide victory for Labour. We must all remain calm, tomorrow is another day," Muscat, a 39-year-old former journalist, said in reaction to the results.

The tiny island state is a rare example of a eurozone state with low unemployment, respectable economic growth and solid public finances.

The unemployment rate is 6.0 per cent and, according to the latest estimates, the country clocked 1.5 per cent economic growth last year.

Muscat has run a slick US-style campaign calling for change, accusing his rival of failing to ensure stability by ruling with a one-seat majority.

Originally an opponent to Malta joining the European Union, Muscat has since changed his views and is a former member of the European Parliament.

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Mandela leaves hospital after tests

PEACE icon Nelson Mandela is back home after spending a night in hospital for a "scheduled medical check-up", the South African president's office says.

"Former President Nelson Mandela has this afternoon ... returned to his Johannesburg home following a successful medical examination at a Pretoria hospital," presidential spokesman Mac Maharaj said in an emailed statement.

"The doctors have completed the tests. He is well and as before, his health remains under the management of the medical team," said Maharaj.

Mandela had been admitted on Saturday for "a scheduled medical check-up to manage the existing conditions in line with his age", less than three months after being treated for a lung infection and gallstones.

News of his latest hospitalisation sparked concern the 94-year-old had fallen ill again.

Mandela underwent treatment for a recurrent lung infection and surgery to extract gallstones over Christmas, during his longest stint in hospital since his release from prison in 1990.

He was discharged the day after Christmas and was last known to be convalescing at his Johannesburg home.

The revered statesman has not appeared in public since South Africa's Football World Cup final in 2010, six years after retiring.

Since then he has stayed out of the public eye at his rural home village Qunu in the Eastern Cape.

The last confirmed image of the statesman was a picture taken with then-US secretary of state Hillary Clinton, when she visited him last August.

At the beginning of February two of his granddaughters released a picture of a smiling Mandela sitting with his youngest great-grandson in an arm-chair.

It was taken to show his recovery after his December hospitalisation, they said while promoting their new reality show, Being Mandela.

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Karzai-Hagel event off due to security

AFGHAN President Hamid Karzai has cancelled a high-profile news conference in Kabul with new US Defense Secretary Chuck Hagel, with US officials saying the event was dropped over "security concerns".

A palace official, who declined to be named, said however the news conference had been cancelled because of "scheduling pressure", without giving further details.

Karzai and Hagel's appearance together in front of the cameras was to be a key part of the Pentagon chief's first visit to Afghanistan since he was sworn in 11 days ago and as US-Afghan ties focus on the withdrawal of foreign troops.

The start of Hagel's trip on Friday was overshadowed by a suicide bombing outside the defence ministry in Kabul.

Nine people were killed in the explosion that occurred while the defence secretary was in a briefing at a nearby US military base in the city.

Karzai also made a contentious speech on Sunday in which he said the US was in daily talks with the Taliban and that insurgent suicide attacks enabled the US-led international military force to justify its presence in Afghanistan.

"The Secretary is looking forward to meeting President Karzai," Hagel's spokesman said about their meeting, which was still on schedule. "The press conference was not cancelled because of the president's recent comments."

The decision was "reached in consultation with our Afghan partners", George Little added.

US officials travelling with Hagel said on condition of anonymity the news conference had been "cancelled due to security concerns".

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Bishop fails to sell Rolex to pay bill

A TOP Bulgarian cleric has failed to sell his gold Rolex to pay the electricity bill of his cash-strapped church, with no takers for the watch in the EU's poorest country.

Metropolitan Nikolay of the southern city of Plovdiv decided to sell the watch late last month to pay the almost 3000 leva ($A2000) power bill of the Saint Marina church.

"I'd rather go to heaven without a watch than to hell with one," the state BTA agency quoted him as then saying.

A public tender for the Rolex however failed to attract any bidders on Sunday due to its high asking price of 11,600 leva.

Bulgaria's Orthodox Church is the largest property owner in the country after the state but is short of funds to cover utility bills and its clergy receive a pittance in salary.

Nikolay's Rolex and a Lincoln car owned by his counterpart in the city of Varna have sparked angry comments in the press.

The cost of electricity in Bulgaria more than doubled in January from December, sending tens of thousands into the streets in protests that led to Prime Minister Boyko Borisov's resignation last month.

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