PM Abbott hosts his first COAG

Prime Minister Tony Abbott will host his first COAG meeting in Canberra on Friday. Source: AAP

PRIME Minister Tony Abbott will use his first meeting with state premiers and chief ministers to start the groundwork for delivering the coalition's paid parental leave scheme.

Mr Abbott will host his first Council of Australian Governments (COAG) meeting at Parliament House in Canberra on Friday.

The coalition promised at the election to roll out a scheme to pay mothers who give birth after July 2015 up to half their annual salary for 26 weeks, capped at a salary of $150,000 a year.

COAG will discuss how the plan, costing $5.5 billion a year, will fit in with existing state public sector parental leave schemes.

Mr Abbott said during the election campaign there would be no extra cost to state governments and the national scheme would be an improvement to existing state schemes.

However, he said he wanted to have an "adult discussion" with the premiers about its details.

The scheme is to be paid for by a levy on Australia's largest businesses.

COAG will also discuss ways to fast-track and fund major infrastructure and boost jobs in manufacturing.

The manufacturing talks had been scheduled well before the announcement of Holden ceasing car production from 2017, but is now expected to take greater prominence.

Mr Abbott will talk to the premiers about his plans for a white paper on reform of federal-state relations.

The prime minister said in a speech when he was opposition leader that COAG had become "a talk shop, not a decision-making process" and the roles of the federal, state and territory governments needed to be better defined.

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Batts inquiry start date announced

THE federal royal commission into Labor's home insulation program, which cost four lives and caused extensive property damage, is set to begin before Christmas.

Former prime minister Kevin Rudd launched the $2.8 billion "pink batts" scheme in 2008 to inject cash into the economy during the global financial crisis. It ran until 2010.

The commission, which is investigating whether the then-government's practices contributed to the deaths and damage, will commence with a preliminary hearing in Brisbane on the morning of December 23.

The governor-general has appointed Mr Ian Hanger AM QC to head the inquiry.

She has also asked whether laws or practices should be altered to "prevent the recurrence of any failure identified by the inquiry".

"Four young men died while undertaking installations funded by the Home Insulation Program. There are claims of homes sustaining damage and businesses suffering financial loss," Mr Hanger said.

"This Royal Commission will investigate whether the way that the Australian government established and implemented the home insulation program contributed to these consequences."

In July, a Queensland coroner found the rushed rollout of the scheme was a significant factor in the deaths of Queensland batt installers Mitchell Sweeney, Matthew Fuller and Rueben Barnes.

In New South Wales, 19-year-old Marcus Wilson, died on his first day on the job after suffering heat stroke.

The coroner cited "inadequate" training and "lax" supervision as factors in the tragedies.

Anyone who wishes to appear before the commission as a witness must apply by 4pm (AEDT) December 18.

Further information is available at www.homeinsulationroyalcommission.gov.au

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Thai protesters cut power to PM's office

Thai protesters have cut power to Prime Minister Yingluck Shinawatra's office compound in Bangkok. Source: AAP

PROTESTERS have announced they have cut off electricity to the Thai prime minister's office compound and are demanding that police abandon the premises amid a political crisis that has dragged on for weeks.

The protesters, seeking to force the replacement of caretaker Prime Minister Yingluck Shinawatra's government before a February 2 election, have threatened to force their way in if police don't leave.

Police attempts to negotiate were rebuffed, but they did not withdraw immediately.

An Associated Press photographer inside one of the buildings said electricity had been shut off to the press office. Police confirmed that power had been cut to some buildings in the compound, collectively called Government House.

Protesters also cut barbed wire placed on top of the steel fence surrounding the compound while police stationed nearby looked on.

Yingluck was not in her offices at the time and shortly afterward gave a televised address from an unidentified location in which she announced a December 15 meeting of all sections of society to try to find a solution to the crisis.

The protest leadership has demanded a meeting with senior military and police officials, a call which has so far been rejected, at least publicly. Protest leaders did meet at a hotel with business leaders in what was billed as an effort to explain their goals.

In a previous confrontation, police withdrew from the prime minister's compound to allow the demonstrators in without a fight. That withdrawal came after two days of increasingly violent standoffs. Since the latest unrest began last month that left five people dead and nearly 300 injured.

The street fighting was suspended when both sides agreed it would dishonour the occasion of King Bhumibol Adulyadej's birthday last week.

Looking for a way out of the crisis, Yingluck dissolved the lower house of Parliament on Monday and called for early elections. Her foes, however, insist she step aside to make way for an interim appointed government, an action that cannot be taken under the country's constitution.

They claim that Thai politics is hopelessly corrupt under the influence of Yingluck's billionaire brother Thaksin Shinawatra, who was ousted in a 2006 military coup after being accused of corruption, abuse of power and disrespect for the country's constitutional monarch.

To carry out reforms, they want to institute a less democratic system where the concept of one-man, one vote would no longer apply because they believe the masses are not well enough educated to choose responsible leaders. They also say the poor sell their votes.

Thaksin's supporters say he is disliked because he has shifted power away from Thailand's traditional ruling class.

Thaksin and his allies have easily won every national election since 2001, relying on the support of the rural majority and urban poor, who benefited from his populist policies. The opposition Democrat Party, which has allied itself with the protests, has not won an election since 1992.

Yingluck's ruling party won the last vote two years ago in a landslide, and is likely to be victorious in any new ballot.

Protest leader Suthep Thaugsuban this week has been declaring that his movement has more legitimacy than the government, which he claims has acted against the constitution.

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Gaddafi's son appears in Libyan court

THE son of late dictator Muammar Gaddafi has briefly appeared before a militia-backed court in western Libya, only to have the proceedings against him adjourned until the end of February.

Since the end of Libya's 2011 civil war, Seif al-Islam Gaddafi has been held by a militia in Zintan, which has refused to hand him over for a separate trial in the capital, Tripoli - a sign of the central government's weakness.

In Tripoli, he is being tried in absentia along with 39 other Gaddafi regime figures, including notorious spymaster Abdullah al-Senoussi, for alleged crimes during Libya's conflict.

Seif al-Islam is also wanted by the International Criminal Court in The Hague on charges of crimes against humanity.

The only Gaddafi son in custody, Seif al-Islam looked healthy during his brief appearance in the Zintan court. Wearing a blue prison uniform, he replied with a "no" when the judge asked him whether he had any requests.

The hearings were then adjourned until February 27 because the judge demanded that "other suspects" be brought in.

In the Zintan trial, Seif al-Islam faces charges of attempting to escape prison and insulting Libya's new flag. These charges are linked to a meeting he had in June 2012 with an ICC delegation that was accused of smuggling documents and a camera to him in his cell. The four-member team from The Hague was detained by Zintan rebels but released after the international tribunal apologised and pledged to investigate the incident.

The Zintan charges are separate from both those by the ICC, which indicted Seif al-Islam for the murder and persecution of protesters in the uprising that ultimately toppled his father's regime, and those by the Tripoli court.

Thursday's hearing was held amid tight security measures, with several masked policemen guarding Seif al-Islam inside the courtroom.

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Two die after being hit by cars in Vic

TWO people have died in hospital after being hit by cars in separate crashes in Melbourne's north.

A 29-year-old woman died in hospital on Thursday afternoon after being hit by a car on the weekend.

A passerby found her with life threatening injuries in the inner northern suburb of Thornbury about 2.50am (AEDT) on Sunday.

She was taken to Royal Melbourne Hospital where she died on Thursday afternoon.

A man, 19, from Reservoir, is assisting police with their inquires.

An elderly man also died in hospital on Thursday after being hit by a car in Brunswick East last month.

Investigators believe the 82-year-old from North Fitzroy was crossing Nicholson Street near Barkly Street when he was hit by a north-bound car on the afternoon of November 8.

Victoria's road toll stands at 224 compared to 271 at this time last year.

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Boat race pest wins appeal to stay in UK

Australian boat race protester Trenton Oldfield has won an appeal to stay in the UK. Source: AAP

BOAT race protester Trenton Oldfield has secured a victory over the British government that wanted to deport him while simultaneously declaring his family could never live in "racist" Australia.

Mr Oldfield on Monday successfully appealed against Home Secretary Theresa May's decision to kick him out of the country on the grounds that his presence was "not conducive to the public good".

Immigration tribunal Judge Kevin Moore, in overturning the deportation order, said Mr Oldfield was an asset to Britain.

"There is no doubt in my view to your character and commitment and the value you are to UK society generally," the judge said.

Mr Oldfield, originally from Sydney, has a British wife, Deepa Naik, 36, and a five-month-old baby daughter.

He's lived in the UK for more than a decade.

The Australian, 37, swam into the path of the Oxford and Cambridge rowing crews as they raced down the Thames in April 2012 to protest against elitism.

He was subsequently jailed for seven weeks.

"Australia is a particularly racist country," Mr Oldfield said on Monday when explaining that if deported he would be separated from his family.

Mr Oldfield said Ms Naik, who is of Indian descent, had never visited Australia and couldn't live there because some Indians in the community had suffered violent attacks.

There was also everyday "passive water-cooler racism", he said.

"Our home is here. Australia is on the other side of the world."

Mr Oldfield said when he disrupted the boat race he'd recently returned from Canada after seven months caring for his father-in-law who was dying from cancer.

He was saddened to realise wealthier people could afford better drugs and have a better quality of life when gravely ill.

"I was vulnerable in terms of realising how short life can be," Mr Oldfield said before breaking down in tears.

"I was very emotional. When you walk around London you see pockets of deprivation that still exist. I think I was heartbroken."

More than 250 staff and students from Oxford and Cambridge signed a letter of support ahead of Monday's hearing.

Two professors gave evidence that Mr Oldfield's work as an activist and independent publisher added to the debate about inequality.

A further 23 people wrote character references and were present at the tribunal.

The Australian's lawyer, Stephanie Harrison QC, insisted the 2012 protest was an isolated incident.

"It won't be repeated, he has learned his lesson," she said.

But Home Office representative Darren Morley insisted Mr Oldfield broke the law by endangering himself and others, and it was appropriate for the government to reject his spousal visa.

"The whole country saw this ... there's a need to be firm against this type of behaviour," he said.

Mr Oldfield's solicitor Natalia Garcia said outside the tribunal it was extremely unusual for an immigration judge to allow an appeal on the spot.

It was proof of her client's good character and contribution to the UK, she told reporters.

Judge Moore's full determination will be delivered within 10 days.

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QBE suffers rating downgrade

Insurer QBE has had its credit rating downgraded, and its shares have continued to plunge. Source: AAP

INSURANCE giant QBE has had its credit rating downgraded due to its forecast of a $250 million loss for the 2013 calendar year.

Moody's downgraded QBE's issuer and senior unsecured debt ratings to Baa2, from Baa1.

The downgrade reflects the company's weakened profitability, internal generation of capital and measures to cover its debt servicing, Moody's said.

QBE on Monday announced a series of writedowns and provisions on the various north American businesses it has acquired since 2006, which will lead to the loss for the year.

The company's share price fell heavily again on Tuesday, losing $1.18, or 9.8 per cent, to $10.82.

Almost $5.7 billion has been wiped from QBE's market value since it announced the writedowns.

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Surf race teen drowned but not knocked out

An autopsy on the body of surf life saving competitor Matthew Barclay shows he died from drowning. Source: AAP

AN autopsy conducted on teen surf life saving competitor Matthew Barclay shows he died from drowning, with no sign he was knocked out by his board.

Matthew died during an under-15 board race which went ahead at the 2012 Australian Surf Life Saving Championships on the Gold Coast after several other events had been abandoned because of the rough conditions.

The championships' under-15 area referee Jenny Kenny told the inquest into Matthew's death that the board race was originally going to be held on March 29.

However, Ms Kenny said event organisers decided on the morning of March 28 to hold the board race that day after postponing the swim, board rescue and tube races because of unfavourable conditions at Kurrawa Beach.

She said those events were postponed because of the size of the 1.5 metre waves and the fact they were breaking far from the shore, creating a longer course.

The board races were considered safer for the conditions on March 28, she said.

"It wasn't an event in which we could see that there were any inherent dangers for the competitors," Ms Kenny told the inquest in Brisbane on Tuesday.

On Monday an event jet ski operator told the inquest he saw a loose board on a collision course with the unresponsive teen and assumed he must have been hit.

However, forensic pathologist Dianne Little gave evidence on Tuesday that while Matthew died from drowning, there was no sign the 14-year-old suffered head trauma.

Dr Little said there were grazes on his head and body but on examination she found they were inflicted after he died and were probably caused by his body buffeting against the sea floor.

She could find no evidence of natural disease, and toxicology and biochemistry tests showed nothing.

The pathologist said Matthew's lungs showed signs of mild chronic asthma, but ruled out the condition as a cause of death.

"There was absolutely nothing I could find at the autopsy that could explain why he drowned," she said.

The inquest was adjourned on Tuesday to a date to be fixed to allow time for a Workplace Health and Safety report on Matthew's death to be finalised.

Coroner Terry Ryan accepted a request by the Barclay family to include the report in the probe.

Outside court, Matthew's father Stephen Barclay said the delay was in the best interests of everybody and he expected the report to take a couple of months.

Over one-and-a-half days of evidence, the inquest heard the surf at Kurrawa was "challenging" on March 28, with a strong rip and waves up to two metres.

Gold Coast lifeguards expressed concerns for the safety of younger competitors but Matthew's race went ahead at 3.27pm.

Two jet ski operators saw him being tossed about by the powerful swell but were unable to rescue him due to the rough conditions.

Searchers did not find his body until the following day.

Matthew was the third teen to die while competing at Kurrawa during the Australian titles since 1996.

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NRMA customers stuck after power outage

ABOUT 200 people are stuck in their cars waiting for assistance after the NRMA's telephone and dispatch system was brought down in a power outage.

Long delays are expected for those needing help with their cars after power failed at the insurance company's western Sydney call centre on Tuesday afternoon, spokesman Peter Khoury told AAP.

About 200 people are stranded and less than 80 are trying to contact the company.

"We will be working through the night to get to them," he told AAP.

The dispatch system is expected to return to normal by Wednesday morning, he said.

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Young locked out of property market: oppn

YOUNG people in NSW will struggle to buy property with state government cuts to the first home buyers grants effectively locking them out of the market, the state opposition says.

Monthly loan figures for October, from the Australian Bureau of Statistics, show about seven per cent of loans taken to buy property were from first home buyers, shadow treasurer Michael Daley said.

In October 2010, the figure was around 17 per cent, he added.

"The disappointing figures follow (Premier) Barry O'Farrell's decision to dump the $7000 First Home Owner Grant and end stamp duty exemptions worth up to $17,990 for first home buyers purchasing existing homes," Mr Daley said.

"Instead, the government's New Home Grant Scheme has paid 9802 grants to property investors and existing home owners buying a second property - further putting first home buyers out of the market."

Under the changes, taxpayer's money is "assisting property speculators", Mr Daley said.

NSW treasurer Mike Baird said the government made the changes to increase the number of first home buyers purchasing new homes.

Grants for newly built homes are up 83 per cent in the six months to November compared to the same period in 2012, Mr Baird added.

A $15,000 grant, applicable for the next two years, is available to first homebuyers of new homes costing up to $650,000.

Stamp duty won't be charged on homes worth less than $550,000 and a reduced fee will be imposed upon those who purchase property for less than $650,000, Mr Baird said.

"Previous incentives to first homebuyers for existing properties simply increased mortgage sizes, as they increased demand without any boost to housing supply," Mr Baird said in a statement to AAP.

"We are unashamedly targeting first homebuyer incentives towards new homes."

The NSW property market, he said, was the best it had been for a decade.

"Increasing housing stock and choice will ease competition in the market and help to get more first homebuyers into the housing market sooner."

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