American abducted in Pakistan urges help

A 72-YEAR-OLD American development worker who was kidnapped in Pakistan by al-Qaeda more than two years ago has appealed to President Barack Obama in a video to negotiate his release, saying he feels "totally abandoned and forgotten".

The video of Warren Weinstein released on Thursday was the first since two videos released in September 2012.

Weinstein, the country director in Pakistan for J.E. Austin Associates, a US-based firm that advises a range of Pakistani business and government sectors, was abducted from his house in the eastern city of Lahore in August 2011.

In the video sent on Thursday to reporters in Pakistan including The Associated Press, Weinstein called on the US government to negotiate his release.

"Nine years ago I came to Pakistan to help my government, and I did so at a time when most Americans would not come here, and now when I need my government it seems that I have been totally abandoned and forgotten," Weinstein said during the 13-minute video.

"And so I again appeal to you to instruct your appropriate officials to negotiate my release."

It was impossible to tell how much Weinstein's statement, made under the duress of captivity, was scripted by his captors.

The video and an accompanying letter purported to be from Weinstein was emailed anonymously to reporters in Pakistan.

The video was labelled "As-Sahab," which is al-Qaeda's media wing, but its authenticity could not be independently verified. The letter was dated October 3, 2013 and in the video Weinstein said he had been in captivity for two years.

In the video, Weinstein wore a grey track suit jacket and what appeared to be a black knit hat on his head. His face was partially covered with a beard.

Al-Qaeda has said Weinstein would be released if the US halted airstrikes in Afghanistan, Pakistan, Somalia and Yemen and also demanded the release of all al-Qaeda and Taliban suspects around the world.

The White House has called for Weinstein's immediate release but has said it won't negotiate with al-Qaeda.

The videos last year showed Weinstein appealing for help from the Jewish community and Israel's prime minister.

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Donors needed to get over blood hurdle

PEOPLE are being urged to roll up their sleeves to help Australians get over one of the last hurdles of 2013.

In the lead-up to the New Year's Day holiday, the Australian Red Cross Blood Service needs to ensure it has a constant supply of platelets, a blood product often used by cancer patients.

Donations cannot be made on January 1 and the service needs 3000 Aussies to make appointments for December 31 and January 2.

Blood service spokesman Shaun Inguanzo says platelets have a shelf life of five days, which means stock collected on Friday will have expired or run out by New Year's Day, unless there's a constant flow of donations.

"In particular, we really need donors in Queensland, New South Wales and Victoria," Mr Inguanzo said.

One in three Australians would need donated blood in their lifetime, he said.

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Weekly US jobless claims drop 42,000

THE number of Americans applying for unemployment benefits dropped by 42,000 last week to a seasonally adjusted 338,000, the biggest drop since November 2012.

But economists say the figures from late November and December are warped by seasonal volatility around the Thanksgiving, Christmas and New Year's holidays.

The US Labor Department says the less-volatile four-week average rose 4250 to 348,000.

Claims had jumped 75,000 in the two weeks that ended December 14 before plunging last week.

Unemployment claims are a proxy for layoffs and are now consistent with a solid job market.

Hiring has been healthy the past four months. The economy added an average of 204,000 jobs every month from August through November, an improvement from earlier this year.

The unemployment rate fell in November to 7 per cent.

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Philippine rebels vow to intensify attacks

PHILIPPINE communist rebels have vowed to intensify attacks against government troops and build a 25,000-strong guerrilla force, but the military has mocked the target as unrealistic.

New People's Army guerrillas marked the 45th founding anniversary of their underground party on Thursday with a clandestine gathering at a mountain lair, where they invited journalists in southeastern Agusan del Sur province.

A communist rebel statement urged the Maoist guerrillas to "wipe out enemy units and seize their weapons" and "increase the number of our Red fighters to 25,000."

Military spokesman Lieutenant Colonel Ramon Zagala, however, said the rebels, whose armed guerrilla strength has dwindled to 4000, have been on a decline and would not achieve such a target due to problems such as the loss of community support and infighting.

"They're dreaming," Zagala said. "The reality is they have been on a decline due to the loss of their mass bases, surrenders and other problems."

The communist rebellion in the Philippines began in the late 1960s with a ragtag group armed with a few rifles. The movement peaked during the repressive years under dictator Ferdinand Marcos with several thousand full-time guerrillas.

Though it remains one of the world's longest-running Marxist insurgencies, the rebel movement has grown considerably weaker in recent years due to battle setbacks, surrenders and factionalism. They remain a national security concern.

Talks to end the rebellion have stalled since 2011 due to disagreements between the government and guerrillas over the release of several jailed rebel leaders.

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Canoeist missing at NSW dam

A MAN remains missing after falling out of a capsizing canoe and failing to surface at a dam in the NSW Southern Tablelands.

Police said the 21-year-old was one of three young men thrown into the water when the canoe tipped over on the Pejar Dam at Crookwell at about 7pm (AEDT) on Thursday.

The other two, aged in their late teens, managed to swim to shore and signal for help.

The 21-year-old did not surface and a search of the dam was conducted by local police, the SES and a rescue helicopter.

The two younger men were treated at the scene by paramedics and taken to Goulburn Hospital with suspected hypothermia.

The search was suspended at 9.30pm with weather conditions deteriorating and no sign of the man.

Local police, the Police Rescue Squad and SES volunteers will resume the search on Friday morning.

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Ambush in Central African Republic

SIX Chadian peacekeepers have been killed and 15 wounded after being ambushed in the Central African Republic's chaotic capital, the spokesman for an African Union peacekeeping force says.

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Target says 40 million accounts breached

TARGET says that about 40 million credit and debit card accounts may have been affected by a data breach that occurred just as the holiday shopping season shifted into high gear.

The chain said that customers who made purchases using their cards at its US stores between November 27 and December 15 may have been exposed.

The Minneapolis company said it immediately told authorities and financial institutions once it became aware of the breach and that it's teaming with a third-party forensics firm to investigate the matter.

It said it is putting all "appropriate resources" toward the issue.

Target Corp advised customers who suspect there has been unauthorised activity on their cards to call them.

"Target's first priority is preserving the trust of our guests and we have moved swiftly to address this issue, so guests can shop with confidence. We regret any inconvenience this may cause," Chairman, President and CEO Gregg Steinhafel said in a statement on Thursday.

Target is the latest retailer to be hit with a data breach problem.

TJX Cos, which runs stores such as T.J. Maxx and Marshall's, had a breach that began in July 2005 that exposed at least 45.7 million credit and debit cards to possible fraud.

The breach wasn't detected until December 2006.

In June 2009, TJX agreed to pay $US9.75 million in a settlement with multiple states related to the massive data theft, but stressed at the time that it firmly believed it did not violate any consumer protection or data security laws.

Target has 1797 US stores and 124 in Canada.

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Serco to repay $A127m for overcharging UK

THE British government says security firm Serco has agreed to repay STG68.5 million ($A127.56 million) after it was accused of overcharging on contracts to monitor offenders using electronic tags.

The Ministry of Justice says Serco will reimburse money owed on the contract and pay costs incurred by the investigation.

In July, Britain's attorney general said two firms, Serco and G4S, had charged the government millions for people they were not actually monitoring.

In a few cases, offenders they were supposedly monitoring were dead.

The revelations prompted the government to review all contracts held by Serco and G4S.

The justice ministry said on Thursday that G4S was facing further investigation by the Serious Fraud Office over problems with contracts for facilities management in courts.

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Honda tops US insurance sector safety list

HONDA has topped the US insurance industry's annual list of the safest new vehicles.

The Insurance Institute for Highway Safety on Thursday gave 39 vehicles top safety ratings for 2014. That is dramatically fewer than the 130 on the list last year because vehicles now must meet tougher standards.

For the first time, the vehicles need top crash test scores and a good front crash prevention system - such as warning systems or automatic braking - to get its highest designation.

Vehicles are now ranked as either a "Top Safety Pick" or "Top Safety Pick +" if they meet the front crash protection criteria as well.

Honda, which also owns the Acura brand, had the most winners of any car maker with eight of its vehicles making the list. The Honda Civic hybrid, Honda Accord, Acura RLX and Acura MDX all got the highest ranking. Its Honda Civic two-door and Acura TL were also ranked as top safety picks.

The list is often used by safety-minded car shoppers and by car makers in advertising.

There are eight newcomers to the list, including Infinity's Q50, the Mazda 3, Toyota Highlander and the Chevrolet Spark mini-car. The Honda Civic Hybrid and several Volvo models won the top designation on the basis of standard equipment in their vehicles.

The IIHS's rankings have been a catalyst in recent years for car makers to make their cars safer. Car makers are scrambling to bolster the front-end protection of their cars and trucks to meet the institute's offset test, which measures how well a car protects people in a crash covering only part of the front end.

For example, Toyota redesigned the midsize Camry sedan, America's top-selling car, so it could pass the test, the institute announced on Thursday. The changes helped the Camry's crash-test rating move from "poor" to "acceptable" for all models built after November 1, the institute said.

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Samsung, LG to unveil 105-inch curved TVs

SAMSUNG Electronics and LG Electronics say their curved TVs will get bigger and sport sharpness four times that of regular HD television sets.

The world's two largest TV makers will display ultra-HD TVs with curved screens that measure 105 inches diagonally in Las Vegas next month, they said in separate statements on Thursday.

The South Korean TV makers began selling curved TV sets earlier this year, made with advanced displays called OLED, measuring 55 inches (139cm).

The upcoming premium TVs will be made of LCD panels packing more than 11 million pixels, 5120 pixels wide and 2160 pixels high. But not much video content is available for the ultra-HD TV sets.

TV makers hope the launch of the new hardware technology will fuel the growth of content. Japan's Sony Corp, among the industry players betting that the ultra-HD images will become the new standard, is working on both gadgets and movies in ultra-HD, also known in the industry as 4K.

Asian TV makers are trying to excite shoppers with new display technology but limited video content in ultra-HD resolution and price tags will likely limit their appeal. Samsung and LG kept mum on prices.

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US existing-home sales drop for 3rd month

THE number of people who bought existing US homes in November declined for the third straight month.

Higher mortgage rates have made home-buying more expensive, while the lingering impact of the October government shutdown may have deterred some sales.

The National Association of Realtors said home sales fell 4.3 per cent to an annual rate of 4.90 million.

That's the weakest pace since December 2012, and the first time since April that the pace has slipped below 5 million.

Still, the association projects that total sales this year will be 5.1 million.

That would be the strongest since 2007, when the US housing bubble burst.

The median sales price of an existing home was $US196,300 ($A222,350) in November, a slight decrease from October but 9.4 per cent higher than a year ago.

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Report questions UK rendition role

BRITAIN "may have become inappropriately" involved in some cases of rendition of suspected terrorists, a report by the aborted inquiry into British complicity in torture has found.

Sir Peter Gibson's investigation has found 27 areas that need further investigation in relation to interrogation, rendition and the way officers were trained.

The report said British intelligence agencies witnessed mistreatment of detainees, but were reluctant to raise their concerns because they feared jeopardising relations with their international counterparts.

It also questions whether the government could and should have done more to secure the earlier release of detainees from Guantanamo Bay.

The inquiry was axed earlier this year after fresh criminal investigations were launched into allegations involving Libyan victims, but its validity had already been called into question when campaigners and human rights lawyers pulled out, claiming it lacked credibility.

Sir Peter published an interim report on Thursday, which contained some redactions for "national security reasons", setting out the case for the investigation to be resumed.

"The inquiry would have wished to examine when the government came to understand the scope of the US policy and whether the government and its agencies responded adequately once they became aware of renditions, or proposed renditions, of British nationals and UK residents," it said.

"There is an issue as to whether the government and the agencies may have become inappropriately involved in some cases of rendition, and whether an adequate policy was formulated and guidance issued to personnel, addressing the extent to which it was proper for the UK to support or assist renditions carried out by other countries."

Rendition is the practice of sending a foreign criminal or terrorist suspect covertly to be interrogated in a country with less rigorous regulations for the humane treatment of prisoners.

The inquiry also found that while no formal request was put to the UK, records showed the government was aware that US officials were considering the use of Diego Garcia, an island in the British Indian Ocean Territory, for holding or transiting detainees between November 2001 and January 2002.

Documents obtained by the investigating team found evidence of a "reluctance" to raise issues about treatment for fear of damaging work with other intelligence services.

"A theme that runs through a number of the lead cases considered by the inquiry is whether treatment issues, such as sleep deprivation, hooding, and media reports of waterboarding, were raised appropriately with the relevant liaison partners responsible for the detention and treatment in question," the report states.

"Documents provided to the inquiry show that in some instances there was a reluctance to raise treatment issues for fear of damaging liaison relationships or that when these issues were raised, only limited details were provided.

"The documents show that there are some instances where UK officers continued to engage with detainees held by liaison partners in various locations after ill-treatment had either been witnessed or alleged and then reported to Head Office."

It said it wasn't clear from the documents provided to the inquiry that anything was done following a concern raised by officers.

On January 16, 2002, the then prime minister Tony Blair told the House of Commons anybody who was captured should be treated humanely in accordance with the Geneva Convention and proper international norms.

By January 18 Mr Blair appeared to have begun to have doubts about the treatment of the detainees and annotated a note calling for it to be made clear to the US that torture would be "unacceptable".

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UK man wins ruling in royal will case

A MAN who believes he may be the illegitimate son of the late Princess Margaret has won an important High Court ruling which could aid his quest to see the contents of the will of the Queen's sister and that of Queen Elizabeth the Queen Mother.

Jersey accountant Robert Brown, 58, is seeking to prove he is Princess Margaret's secret child and that she hid a pregnancy in 1955.

The royal wills were drawn up around the time of Margaret's death in 2002 and were "sealed" to keep their contents secret.

On Thursday, Brown was granted permission to seek judicial review of a refusal to allow him access under the Freedom of Information Act 2000 (FOI) to documents he says show there was a "secret judicial process" for sealing Royal wills.

Giving him leave, Mr Justice Phillips said at London's High Court there were "compelling" constitutional reasons to allow Brown's legal challenge to go ahead and that was not altered by a past Court of Appeal observation that his claim to be Princess Margaret's son was "scandalous and irrational".

The judge said the case gave rise "to important points of principle and practice" regarding open justice and the public interest.

They related to how the courts dealt with statutory provisions and rules "in relation to a particular class of litigant".

"I am absolutely delighted," Brown said.

"It is an important day for the fundamental principles of open justice and the rule of law.

"Historically, it has been very clear that the monarchy should not have secret communications with the court.

"I am delighted that I have got this far and constitutional issues have been reopened and the points I have raised have been recognised as arguable."

Of his claim to royal parentage, he said: "Hopefully I am not a nutcase. I am either right or I am wrong."

Brown has said he will never give up the battle to prove his royal heritage.

He believes he was born to Princess Margaret in 1955 and his father was possibly Robin Douglas Home.

He claims that the later stages of her pregnancy were covered up with the use of body doubles and that he was sent to Kenya to be brought up as the child of Cynthia and Douglas Brown in Nairobi.

He believes the documents he wants disclosed will reveal that Buckingham Palace, the attorney general and a senior judge acted together to maintain secrecy around the Queen's sister's last testament, which, he hopes, contain details of his birth.

His claims were dismissed by lawyers for the royal family in a previous court hearing as that of "a fantasist seeking to feed his private obsession".

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US unemployment aid applications surge

THE number of people seeking US unemployment benefits rose 68,000 last week to a seasonally adjusted 368,000, the largest increase in more than a year.

The surge in first-time applications could be a troubling sign if it lasts. But it likely reflects the difficulty adjusting for delays after the Thanksgiving holiday.

The Labor Department said on Thursday that the less volatile four-week average rose 6,000 to 328,750. That is close to pre-recession levels and generally a positive sign for job gains.

Applications had tumbled in recent weeks to nearly six-year lows, partly because of a late Thanksgiving holiday that may have distorted the government's seasonal adjustments. Economists believe this week's jump in claims was a dose of payback for those declines.

"What the seasonals give in one month they have to take back the next, hence today's number," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

Applications for unemployment aid are a proxy for layoffs. A steady decline over the past year suggests that fewer Americans have lost their jobs.

Economists will track the next few weeks closely to see if that trend is reversing, or if the surge is a temporary blip caused by seasonal adjustments.

The recent drop in layoffs has coincided with a pickup in hiring. The economy has added an average of 204,000 jobs a month from August through November, up from an average of 146,000 in May through July.

Employers added 203,000 jobs last month and the unemployment rate dropped to a five-year low of 7 per cent, the government said on Friday.

Four straight months of robust hiring have raised hopes that 2014 will be the year the economy returns to normal.

As more Americans draw a pay cheque, incomes and consumer spending generally increase. About 70 per cent of economic activity comes from consumer spending.

However, the unemployment rate remains above the historic averages of 5 per cent to 6 per cent that are associated strong job markets.

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Nigella judge in Cameron rebuke

JURORS in the trial of two former personal assistants accused of defrauding Nigella Lawson and Charles Saatchi have been warned to ignore comments made by British Prime Minister David Cameron about the celebrity cook.

Judge Robin Johnson told jurors in the trial of Elisabetta and Francesca Grillo at Isleworth Crown Court in London that it was "of regret" when public figures commented about someone involved in a trial and urged them to only decide the case based on the evidence in court.

The Grillo sisters are accused of abusing their positions by spending STG685,000 ($A1.2 million) on credit cards belonging to the celebrity couple to buy designer goods and luxury holidays for themselves.

Elisabetta Grillo, referred to as Lisa, 41, and sister Francesca, 35, each deny a single count of committing fraud by using a company credit card for personal gain between January 1, 2008, and December 31 last year.

The judge told the jury of five women and seven men that he had been shown a number of press reports about comments made by Cameron about Lawson.

"They centre on the prime minister commenting about a prosecution witness, Ms Lawson, during an interview with a journalist.

"It is of regret when people in public office comment about a person who is involved in a trial which is in progress."

He said the defendants felt "aggrieved" by the comments, even though they did not specifically deal with matters in the trial, adding: "The fact they they may feel aggrieved is not without justification."

He told jurors: "You will realise that what public figures may feel about this case or a witness in this case can have no bearing on your own views."

He urged them to heed instructions given at the start of the trial.

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Fewer US homes entering foreclosure path

THE number of US homes entering the path to foreclosure or winding up repossessed by lenders has fallen to levels not seen in more than six years.

While foreclosures remain a concern in select states, the trend is the latest sign foreclosures are becoming less of a national factor on the housing recovery and more of a state and metropolitan-area concern.

Lenders initiated foreclosure action against 52,826 US homes in November, down 10 per cent from the previous month and a drop of 32 per cent from November last year, according to new data from foreclosure listing firm RealtyTrac Inc.

The last time the tally of monthly foreclosure starts was lower was in December 2005, the firm said.

Foreclosure starts increased last month on an annual basis in 15 states, including Pennsylvania, Delaware, Maryland and Oregon.

While fewer homes entered the foreclosure pipeline in November, the number of homes completing the foreclosure process also declined.

All told, lenders took back 30,461 homes last month, down 19 per cent from October and a decline of 48 per cent from November last year, RealtyTrac said.

Overall, completed foreclosures sank to the lowest level since July 2007, the firm said.

The number of homes repossessed by banks increased on an annual basis in only five states: Delaware, Maryland, Connecticut, Maine and Iowa - all states where the courts must sign off on foreclosures, a factor that typically draws out the process longer than in other states.

Some of the decline in foreclosure activity last month was due to a seasonal slowdown as the end of the year draws near. That could mean a bump in homes sold at auction or repossessed by banks early next year, said Daren Blomquist, a vice president at RealtyTrac.

"Regionally and locally, there are going to be some jumps in foreclosure numbers in 2014, but nothing we anticipate will threaten the housing recovery," Blomquist said. "It's very safe to say that the foreclosure crisis is over and behind us."

The decline in foreclosures has come about as more homeowners are keeping up with their mortgage payments. At the same time, the US housing market has emerged from a deep slump, aided by rising home prices, steady job growth and fewer troubled loans dating back to the housing-bubble days.

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US retail sales rise 0.7 per cent

US consumers ramped up spending in November on cars, appliances and furniture and made more purchases online, signalling growing confidence in the economy during the holiday shopping season.

The Commerce Department says retail sales rose 0.7 per cent, the biggest gain in five months. October's figure was also revised higher to 0.6 per cent.

Two straight months of healthy sales suggests steady hiring is encouraging Americans to spend more this holiday season, particularly on big-ticket items.

Car sales jumped 1.8 per cent and furniture purchases rose 1.2 per cent.

Excluding the volatile categories of cars, petrol and building materials, sales rose a solid 0.5 per cent in November.

Americans also are shifting more spending to online and catalog retailers.

Online and catalog sales rose 2.2 per cent last month, the most in nearly 18 months.

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US retail sales rise 0.7 per cent

US consumers ramped up spending in November on cars, appliances and furniture and made more purchases online, signalling growing confidence in the economy during the holiday shopping season.

The Commerce Department says retail sales rose 0.7 per cent, the biggest gain in five months. October's figure was also revised higher to 0.6 per cent.

Two straight months of healthy sales suggests steady hiring is encouraging Americans to spend more this holiday season, particularly on big-ticket items.

Car sales jumped 1.8 per cent and furniture purchases rose 1.2 per cent.

Excluding the volatile categories of cars, petrol and building materials, sales rose a solid 0.5 per cent in November.

Americans also are shifting more spending to online and catalog retailers.

Online and catalog sales rose 2.2 per cent last month, the most in nearly 18 months.

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US unemployment aid applications surge

THE number of people seeking US unemployment benefits rose 68,000 last week to a seasonally adjusted 368,000, the largest increase in more than a year.

The surge in first-time applications could be a troubling sign if it lasts. But it likely reflects the difficulty adjusting for delays after the Thanksgiving holiday.

The Labor Department said on Thursday that the less volatile four-week average rose 6,000 to 328,750. That is close to pre-recession levels and generally a positive sign for job gains.

Applications had tumbled in recent weeks to nearly six-year lows, partly because of a late Thanksgiving holiday that may have distorted the government's seasonal adjustments. Economists believe this week's jump in claims was a dose of payback for those declines.

"What the seasonals give in one month they have to take back the next, hence today's number," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

Applications for unemployment aid are a proxy for layoffs. A steady decline over the past year suggests that fewer Americans have lost their jobs.

Economists will track the next few weeks closely to see if that trend is reversing, or if the surge is a temporary blip caused by seasonal adjustments.

The recent drop in layoffs has coincided with a pickup in hiring. The economy has added an average of 204,000 jobs a month from August through November, up from an average of 146,000 in May through July.

Employers added 203,000 jobs last month and the unemployment rate dropped to a five-year low of 7 per cent, the government said on Friday.

Four straight months of robust hiring have raised hopes that 2014 will be the year the economy returns to normal.

As more Americans draw a pay cheque, incomes and consumer spending generally increase. About 70 per cent of economic activity comes from consumer spending.

However, the unemployment rate remains above the historic averages of 5 per cent to 6 per cent that are associated strong job markets.

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Cate Blanchett nominated for Golden Globe

CATE Blanchett had better find a gown to wear to the Oscars, although Hugh Jackman, Geoffrey Rush and Chris Hemsworth likely won't have to worry about tuxedos.

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Shark blamed for NSW surfer's injuries

A SURFER who showed up at a NSW mid-north coast hospital with cuts to his hand and leg has received a surprising diagnosis: shark attack.

Police say the 26-year-old was in the water at Port Macquarie about 6.15pm (AEDT) on Thursday, when he felt something hit his right hand.

When the man discovered cuts to his right hand and blood on his leg he took himself to Port Macquarie Hospital, where doctors told him his wounds were consistent with a shark bite.

"He did not see a shark and was unaware at the time that he could have been bitten by one," NSW police said in a statement.

The man was treated for puncture wounds to his hand and a laceration to his leg, but was expected to be released.

Police said the northern end of Shelley Beach, where the suspected attack happened, was isolated and not widely used.

Officers could not find anyone else in the water when they visited the beach.

An expert is now set to visit Port Macquarie to try to identify the species of shark involved.

The suspected attack came just five days after Port Macquarie teenager Zac Young was killed by a shark while body-boarding further up the NSW coast.

The 19-year-old was in the ocean with three friends at Riecks Point, near Coffs Harbour, on Saturday when a shark bit off his legs.

He died shortly after his friends managed to drag him to shore.

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Manufacturing decline is limited: report

AUSTRALIA'S manufacturing sector has faced difficult economic conditions over the past decade but new research has pin-pointed a sharp downturn in overall productivity to just three key areas.

A staff working paper by the Productivity Commission found that while investment in manufacturing has risen over the long term, hours worked and employment in the sector have declined.

The report found no "overarching systemic reason" for the decline in manufacturing's rate of multi-factor productivity growth.

It declined by 1.4 per cent a year between 2003/04 and 2007/08 compared with 1.3 per cent productivity growth a year between 1998/99 and 2003/04.

"However, three of its sub-sectors - petroleum and chemicals, food and beverages, and metal products - collectively accounted for two-thirds of this decline between cycles," the report released on Friday shows.

One influence has been from the appreciation of the Australian dollar and changing competitive conditions.

It also noted that there has been a lag between new capital investment in these sub-sectors and the output from that investment.

In particular, additional investment in petroleum refining to meet new environmental standards, while improving the quality of outcomes, did not raise output.

Changes in consumer preferences have also had an impact on productivity, such as significant growth in smaller-scale bakeries that use more labour-intensive processes.

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Trade not aid key to Asian support: Abbott

TRADE, not aid, should be Australia's policy when it comes to assisting Asian neighbours, Prime Minister Tony Abbott said, as the opposition called for an inquiry into his government's $4.5 billion aid program cuts.

Speaking in Melbourne on Thursday night, Mr Abbott said foreign aid should be better targeted and Australia should help developing nations stand on their own feet.

He said the growing economic strength of the region needed to be matched in Australia by strengthening of the economy.

Australia's international clout doesn't rest on the size of its aid budget, but on the size of its economy, Mr Abbott said.

"As far as possible, Australian aid should be designed to enable other countries to stand on their own two feet as quickly as possible," Mr Abbott said.

"Trade, rather than aid, is the best way to sustainably boost poor countries' prosperity."

He said reducing the rate of increase in the aid budget would enable the government to ensure it was being targeted effectively.

His comments followed an announcement by Labor senator Ursula Stephens the opposition would be referring plans for $4.5 billion of cuts to Australia's international aid program to a Senate Committee for inquiry.

The matter will be moved in the Senate on Monday.

Deputy Opposition Leader Tanya Plibersek said Australians deserved to know why the government had decided to slash aid funding and where the cuts would be made.

"We know Australians support a strong international aid program. Australia is a rich, generous country that can afford to lend a helping hand," Ms Plibersek said.

Mr Abbott also spoke about the importance of fostering strong relationships with the booming economies of China, India and Japan and in particular, Indonesia, which he said was Australia's, "important overall relationship."

He said the media made the relationship with Indonesia difficult.

"Being Indonesia's "trusted partner" is easier said than done, given the media's tendency to play to stereotypes and past disagreements over East Timor," Mr Abbott said.

On Thursday, the government agreed to a six-point plan aimed at repairing relations with Indonesia two weeks after the suspension in co-operation on November 26.

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Boy dies in Queensland road accident

A SEVEN-YEAR-OLD boy has died in hospital in north Queensland after his bike and a car collided.

He was riding at the intersection of Hans Christian Street and Brownsey Court at Sarina on Thursday afternoon when the accident happened.

He was taken to the Mackay Base Hospital, where he died a short time later, police say.

The woman driving the car wasn't injured.

Investigations are continuing.

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Blue Mountains families want repair action

SOME 70 Blue Mountains families who lost everything in the October bushfires are on track to have their blocks cleared, ready for rebuilding, just in time for Christmas.

NSW Services Minister Andrew Constance on Thursday night fronted residents who lost their homes seven weeks ago when flames ripped through bushland communities west of Sydney, promising 60 blocks will be cleared by late January.

But he told AAP the clearing operation could come earlier - December 23 - for about 70 NRMA-insured families.

Local councillor and teacher Brendan Luchetti says for those residents who lost their homes, a fresh start is "the Christmas present they really want".

More than 200 homes were lost in the fires, but locals say despite promises of a speedy response from government at the height of the fire emergency, not a single block has yet been cleared.

Mayor Mark Greenhill wants an apology from the O'Farrell government, which has been negotiating with insurers.

He says the government could have moved faster by engaging a single contractor to clear up fire-affected properties and reconciling costs with insurers later.

"It's a hodge-podge, piecemeal approach," he told AAP.

"I think possibly there was a bit of penny-pinching going on; looking for a cheaper option, rather than the faster option."

Mr Constance, who on Monday was handed oversight of the Blue Mountains clean-up, which is being coordinated by ex-Rural Fire Service boss Phil Koperberg, acknowledged locals were hurting.

"Obviously I'm very sorry that the delays occurred," Mr Constance told AAP.

"My hope is now that we are moving through and I'm optimistic that we will see this progress incredibly quickly."

There were emotional scenes as locals spoke of their distress at waiting for burned-out homes to be cleared away.

"I'm one of the ones where people say, 'You're one of the lucky ones', because my house is still standing," Winmalee resident Fran Elston said.

"I don't feel like I'm one of the lucky ones ...

"Seven weeks is a long time when you have lost everything.

"Seven weeks is a long time when I hate walking out the front door, because all I see is ash."

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Deposit outflows from Cypriot banks slow

CYPRUS' central bank says deposit outflows from the bailed-out country's banks have slowed to their lowest level in 10 months.

Figures released on Thursday show overall deposits at the end of October to be at 47.3 billion euros ($A71.2 billion), just 163 million euros less than the previous month.

Another encouraging sign was that deposits from non-EU country residents increased to 12.1 billion euros, up by 406.6 million euros from a month earlier.

That's the first such increase since March, when Cyprus agreed on a painful rescue deal with other eurozone countries and the International Monetary Fund.

The agreement sanctioned a grab from the savings of uninsured depositors in Cyprus' top two banks.

To prevent a run, authorities imposed capital controls that have since been partially relaxed.

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Britain scales back loan program

THE Bank of England has scaled back a loan program meant to spur economic recovery, amid fears that cheap mortgages could inflate a housing bubble.

The Fund for Lending program was launched in June last year by the bank together with the Treasury to help homes and businesses emerge from the crisis.

But starting in January, the plan, which offers cheap finance to banks to encourage lending, will only be available to small- and medium-sized businesses.

House prices have gathered momentum since the plan was announced, with average prices rising 6.8 per cent in the year to October.

Bank of England Governor Mark Carney says that acting now reduces the likelihood of larger interventions later.

While he didn't see any immediate threat, he says the "concern is where this could go".

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Syrian troops retake rebel-held town

THE Syrian army has retaken a mainly Christian town near the capital Damascus, a week after Islamist rebels seized it.

The army regained full control of Deir Attiyeh in the Damascus countryside "after eliminating the last dens of terrorists there", the state-run news agency SANA reported on Thursday.

The pro-opposition Syrian Observatory for Human Rights confirmed the seizure.

Deir Attiyeh, with a population of about 25,000 people, is situated on a strategic route linking Damascus to Homs in central Syria.

The area was captured by al-Qaeda-linked groups of the Islamic State of Iraq and the Levant and Al-Nusra Front last week, reported the Britain-based Observatory.

Troops loyal to President Bashar al-Assad have claimed advances into rebel-held areas near Damascus in recent months.

Further north, at least six people were killed and more than 35 wounded when a surface-to-surface missile fell overnight in the city of al-Raqqa, according to the Observatory.

The Syrian Co-ordination Committees, a group of activists reporting violence on the ground, said a Scud missile had landed in a market in the jihadist-controlled city, leaving at least 40 people dead and 220 injured.

There was no official comment.

Syria's crisis started in March 2011 with pro-democracy protests, which soon developed into a devastating war after al-Assad's regime attempted to quell the demonstrations.

The UN estimates that more than 100,000 people have been killed in the conflict.

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Sri Lanka starts counting civil war dead

SRI Lanka's government has started counting the dead, wounded and missing in its quarter-century civil war amid international pressure to conduct a credible investigation into war crimes allegations.

It comes two years after a local war commission recommended a census to determine the number of civilian deaths in the civil war that ended in 2009.

Tens of thousands are said to have perished in just the last few months of the fighting.

Government census official A J Satharasinghe said some 15,000 workers will go house-to-house asking about war victims for the count to be completed on December 20.

Sri Lanka is under pressure over its delay to implement the recommendations of the Lessons Learnt and Reconciliation Commission, which includes a local inquiry into allegations of war abuse.

Countries including the US and Britain have warned that Sri Lanka could face an international war crimes investigation if it fails to conduct its own inquiry.

The UN Human Rights Council has passed two successive resolutions calling for an inquiry, and human rights chief Navi Pillay is expected to submit her findings from a visit to Sri Lanka at the council's session next March.

Sri Lankan troops in May 2009 defeated Tamil Tiger rebels who had fought since 1983 to create an independent state for the country's ethnic minority Tamils.

The government expelled international aid workers and UN staff from the war zone in the last stages of the fighting and blocked independent journalists, making it impossible for outsiders to know the extent of civilian deaths.

According to a UN report, as many as 40,000 Tamil civilians may have died in the last few months of the fighting, which the government disputes.

Sri Lanka's government insisted that not a single civilian was killed, until 2011 when it acknowledged some deaths.

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Ryanair opens new destinations for 2014

LOW-FARE airline Ryanair has announced new routes for next northern summer.

The budget carrier will be operating from Stansted airport to 12 new destinations, including Basle, Bordeaux and Bucharest.

The no-frills airline, which has launched something of a charm offensive in recent weeks, will also be increasing frequencies on 17 routes next summer, including to Milan, Rome, Berlin, Barcelona and Dublin.

Other new destinations from summer 2014 include Dortmund, Lisbon, and Prague.

The increases are part of Ryanair's long-term agreement with Stansted's owners Manchester Airports Group (MAG).

The new flying programme will see Ryanair offer an additional 1.3 million seats, taking the airline's capacity at the Essex airport to 14.5 million passengers.

Ryanair chief executive Michael O'Leary says the new routes and increased frequencies will sustain more than 1300 on-site jobs at Stansted.

MAG chief executive Charlie Cornish says the announcement is "fantastic news for Stansted, the region and the passengers who rely on the airport".

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Aussie tour a long shot for Python show

MONTY Python haven't ruled out eventually touring their reunion show to Australia although John Cleese has joked it would be easier to travel to another planet.

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Greece predicts return to growth in 2014

GREECE'S deputy finance minister says the economy is expected to emerge from its recession and grow slightly next year.

Christos Staikouras said on Thursday that the 2014 budget projects economic growth of 0.6 per cent next year.

He spoke as he presented the budget, submitted to Parliament moments earlier by Finance Minister Yannis Stournaras.

Staikouras said the economy is expected to contract by four per cent this year, slightly less than the originally expected 4.5 per cent.

He said the conditions are being created for Greece to return to the international bond markets next year.

It has been priced out of them by high interest rates since 2010, and relies on international rescue loans.

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UK PM 'following' escort agency on Twitter

British Prime Minister David Cameron has been following a high-class escort agency on Twitter. Source: AAP

BRITISH Prime Minister David Cameron has been following the exploits of a high-class escort agency on Twitter.

One of the prime minister's official accounts was linked to the Carltons of London's feed on the micro-blogging site, technology news website The Register found.

It claims to be London's "finest luxury boutique escort agency" catering for the needs of a "select and small group of elite gentlemen".

The agency also offers a corporate service for those looking to secure a big deal who "need something special to swing them in your favour".

But Downing Street indicated the agency may have first been followed under Gordon Brown's premiership.

The @Number10gov account is the official Twitter feed for the office of the Prime Minister and automatically followed anyone that chose to follow it until 2009 - while the former Labour leader was in power - when the practice was stopped.

"We have stopped following this particular account," a Downing Street spokesman said.

"Prior to 2010, an auto-follow process was used, meaning that @Number10gov automatically followed anyone who followed the account. This was common practice at the time for many corporate accounts, but was discontinued in 2009.

"As a result of this legacy, the @Number10gov account follows almost 370,000 accounts and we have taken steps to un-follow as many as possible that are inactive, spam or inappropriate. This work is ongoing."

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Cyclone warning issued for southern India

A TROPICAL cyclone over the Bay of Bengal is likely to hit coastal areas of India's southern state of Andhra Pradesh over the next 24 hours, with evacuations set to begin soon, officials said on Thursday.

Cyclone Helen is predicted to bring winds of up to 120km/h, as well as heavy rainfall.

Storm surges of up to 1.5 metres at the time of landfall are expected near the city of Machillipatnam on Friday afternoon, India's Meteorological Department said.

The storm was expected to cause "extensive damage to thatched roofs and huts. Minor damage to power and communication lines due to uprooting of large trees", the IMD said in a statement.

Fishermen have been warned not to venture out to sea.

State disaster management official VK Ekbote said the storm was changing course, and evacuations would begin on Friday once officials were able to confirm precisely where it would make land.

The storm is expected to be significantly less intense than Cyclone Phailin, which hit India's Orissa and Andhra Pradesh states last month, with wind speeds of over 200km/h, claiming 40 lives.

Cyclones often form over the Bay of Bengal, bringing widespread destruction and flooding to India's southern and eastern coasts.

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UK police free women held as slaves

Dream end on MCG comes to ashes

A MULTIPLE sclerosis sufferer has hit out at the rejection of her dying wish that her ashes be scattered on the hallowed turf of the MCG.

Train lines shut on New Year's Eve

NEW Year's Eve revellers from Melbourne's west and parts of country Victoria will have to catch buses home as train lines are shut down.

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Pedestrian dies in crash near Townsville

A PEDESTRIAN has died after being hit by a car at Nome, near Townsville.

The woman died at the scene when she was hit on the Bruce Highway at about 9pm (AEST) on Thursday, police said.

The woman driving the car was taken to Townsville Hospital for observation.

The highway was closed for several hours and the Forensic Crash Unit is investigating.

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On-the-run terror suspect suing Britain

A TERRORISM suspect who escaped British surveillance by disguising himself in a burka is suing the government over alleged torture, it's been revealed.

Mohammed Ahmed Mohamed evaded police surveillance last week by changing his Western-style clothes for a burka while he was visiting a mosque in London.

British counterterrorism police and secret services have launched a major search for the 27-year-old, who is believed to have fought abroad for al-Shabaab, the militant Somali rebel group.

His case for damages from the British government emerged at the High Court on Thursday, when a judge handed down an interim ruling in his case and his anonymity was lifted due to his disappearance.

Before he went on the run, Mohamed and another man had filed a claim against the Foreign Office, Home Office, Ministry of Defence and the Attorney General, alleging they had consented or acquiesced to their detention and torture by Somaliland authorities in January 2011.

British "officers and agents ... by their acts and omissions, procured, induced, encouraged or directly caused, or were otherwise complicit in" the detention of Mohamed and his co-claimant, the court papers said.

The judge in the case said that both were British citizens of Somali descent.

Mohamed had travelled to Somaliland in 2007 and was returned to Britain in March 2011, after his arrest and alleged torture.

British Home Secretary Theresa May had applied for a control order against him prior to his detention in Somaliland, Mohamed said, showing that May knew he was about to be detained.

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Huntsman spider found at UK warehouse

A FEARSOME-LOOKING giant spider common in Australia has given workers at a British warehouse a fright after travelling over from Asia.

The 17-centimetre-long huntsman spider came over to East Sussex after stowing away in a shipping container packed with BMX parts in Taiwan.

It is believed to have been locked up for six weeks as the container made its way thousands of miles across the oceans before reaching the UK.

Shocked staff at Seventies BMX Distribution in St Leonards-on-Sea discovered the arachnid lurking in their delivery while unpacking the boxes.

Warehouse manager Joe Woodburn said he thought the spider was plastic at first as it wasn't moving.

"My mate saw it on the box I was holding. He froze and couldn't get his words out fast enough," Woodburn said.

"...the minute it was in the sunlight it started to warm up and it was running around and jumping up the side of the box."

RSPCA inspector Zoe Ballard was called out to deal with the animal, but admitted she was not the biggest fan of eight-legged creepy-crawlies.

"I got the call through as collection of a tarantula, but as soon as I saw it I knew it wasn't a tarantula," Ms Ballard said, adding she's been called out to collect a scorpion in the past, but has never come across a spider like it before.

"I managed to secure the spider in the container and took it to the RSPCA's wildlife centre nearby, but I must admit I was worried all the way that it would get out and escape in my van."

The spider has now been housed at Drusillas Zoo Park in Alfriston, near Eastbourne, but RSPCA inspector Tony Woodley said it does not generally pose a big threat.

"Huntsman spiders can give you a nasty bite, but they aren't likely to cause too much harm unless you suffer an allergic reaction," he said.

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Controversial health website launched

PRIVATE health fund nib has launched a controversial website that allows patients to rate the cost and service levels of health practitioners.

The searchable Whitecoat website is open to all Australians and lists 30,000 "extras" providers such as optometrists, dentists and chiropractors.

"Whitecoat represents a new way of connecting consumers and providers," says the fund's Rhod McKensey.

It is particularly useful for people who have moved to a new area or need a treatment for the first time.

The 13,000 comments featured so far have been collected from clients over the past 12 months and are 90 per cent positive, he says.

The fund says it has consulted widely to overcome issues and providers will be able to opt out of the ratings and comments.

But some health organisations are concerned the ratings system will be unfair and that the site breaks advertising guidelines.

The Australian Dental Association has advised members not to participate at all.

"We can't see the benefit," says vice president Dr Carmelo Bonanno.

Cost comparisons are difficult because treatments might appear the same but might involve different materials and different degrees of difficulty, he says.

"We also have concerns about breaching advertising guidelines for dentists."

The Dietitians Association of Australia is advising its members to opt out of the rating and comments section.

"A directory showing people what's available in their area is fantastic," says spokesperson Kate Di Prima, and accredited practising dietician.

But she is concerned the ratings system will reflect the subjective view of a single person and there are too many variables for valid price comparisons.

"A consumer-driven health profession that embraces choices is the future," says Chiropractors' Association of Australia CEO Andrew McNamara.

He is concerned, however, that the site complies with health profession guidelines.

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Australian bulls mistreated in Mauritius

MORE video of apparent cruelty to Australian animals has emerged, this time of bulls being mistreated in Mauritius.

After releasing footage of sheep being treated cruelly in Jordan in October, Animals Australia is claiming breaches of live export regulations have been committed in Mauritius after bringing it to the attention of the Department of Agriculture.

The animal welfare group's investigators filmed Australian bulls being dragged on and off trucks by ropes, falling onto concrete, collapsing in exhaustion and distress, and being restrained and slaughtered during the Festival of Sacrifice.

Animals Australia also said it had gathered evidence of Australian cattle being loaded on trucks and transported out of the approved feedlot for private and backyard slaughter, breaching the federal government's Exporter Supply Chain Assurance Scheme (ESCAS) brought in after the Indonesian abattoir scandal in 2011.

The department said it had started investigating the claims.

Animals Australia said the exporter involved, International Livestock Exports - under investigation for ESCAS breaches in Kuwait in January - had reported the breaches to the department, but the animal welfare group dismissed that as an attempt to mitigate penalties.

The company was being sought for comment.

Animals Australia's legal counsel Shatha Hamade said the cruelty endured by the bulls was horrendous.

"Without strong regulatory sanctions, exporters will not take their legal responsibility seriously," Ms Hamade said.

"The only way that this will not be repeated is fear of consequences ... loss of export licence by exporters or the associated loss of the supply of animals for importers."

Independent MP Andrew Wilkie, who described last month's Jordan revelations as sickening, said Animals Australia's latest footage was further proof that ESCAS had failed and that the live export trade should be stopped.

"The live export trade is systemically cruel, not in Australia's economic interests and contrary to the vast majority of public opinion," Mr Wilkie told AAP.

Prime Minister Tony Abbott said the footage from Jordan was disturbing but added the government would not make policy "on the basis of one or two media reports", while Agriculture Minister Barnaby Joyce said halting trade to that market would only harm farmers.

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US unemployment benefit applications fall

THE number of people seeking US unemployment benefits fell 9,000 to a seasonally adjusted 336,000 last week, bringing applications to pre-recession levels.

The Labor Department said on Thursday that the less volatile four-week average dropped 9,250 to 348,250.

The average was elevated by the 16-day partial government shutdown and backlogs in California that occurred because of computer upgrades.

Weekly applications have fallen for four straight weeks. Applications are a proxy for layoffs.

The decline suggests companies are cutting very few workers.

Still, they are not hiring many new ones.

Falling applications are typically followed by more job gains, but hiring has slowed in recent months, rather than accelerated.

The economy added an average 143,000 jobs a month from July through September. That's down from an average of 182,000 in April through June, and 207,000 during the first three months of the year.

October's jobs report, to be released on Friday, likely will look even weaker.

Economists expect that employers added just 122,000 jobs, and the unemployment rate rose to 7.3 per cent, according to FactSet.

But much of the weakness in October's jobs report will likely reflect the temporary impact of the shutdown.

Most economists expect any spike in the jobless rate will be reversed in November.

The economy was strengthening ahead of the shutdown, the government said on Thursday in a separate report.

Growth accelerated at a 2.8 per cent annual rate in the July-September quarter, up from a 2.5 per cent rate in the April-June quarter.

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Bank of England keeps rates unchanged

THE Bank of England has decided to keep its key interest rate at a record low of 0.5 per cent as it monitors the economy's strengthening recovery.

The Monetary Policy Committee also voted on Thursday to refrain from pumping more money into the economy. The bank has so far pumped STG375 billion ($A636.83 billion) into the economy since January 2009.

The decision had been widely expected because of the bank's new "forward guidance" policy, which new Governor Mark Carney introduced this summer.

The guidance offers markets, individuals and businesses a clear steer on where interest rates will be in coming months.

Carney has indicated rates will remain low until unemployment - currently at 7.7 per cent - drops significantly to a 7 per cent threshold.

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Sven lover 'sold story for STG300,000'

FORMER England manager Sven-Goran Eriksson's mistress received STG300,000 ($A509,000) to sell her story to two Sunday newspapers, a UK jury has been told.

Faria Alam, 47, began an affair with Eriksson while working as a secretary at the FA and the Old Bailey has heard "first details" emerged when the News of the World hacked their phones.

After she was fired because of the relationship in September 2004, publicist Max Clifford cut a deal for the News of the World (NotW) and Mail on Sunday to give her STG150,000 each for her side of the story, the court heard.

In a statement read out in court, Alam said Eriksson started pursuing her shortly after she joined the FA in April 2003.

The affair began after he took her on dinner dates and then lunch in a private dining room in London, the court heard on Thursday.

"I was impressed - I would say in the office I was going for longer lunches. I'm not sure if they knew I was going with Sven," she said.

The court heard that Alam's phone was hacked by private investigator Glenn Mulcaire on behalf of the NotW in June 2004.

After returning that month from Euro 2004 with the England team, Eriksson told his lover that there were reporters who knew about the relationship and Alam "freaked out".

In an attempt to avoid publicity, the pair flew out to Eriksson's native Sweden, but when they arrived at his home there were reporters waiting, forcing them to stay indoors all weekend.

The story of their relationship appeared in the NotW on July 18, 2004, but Ms Alam was not named and a picture of her outside her flat in south east London did not show her face.

When the news broke, Eriksson asked her "How do you want to deal with the situation?" and she said: "I will deny it."

Despite her denials, she was fired from her job as PA to then-chief executive of the FA David Davies in September 2004 but remained in contact with Eriksson for months afterwards.

Mulcaire has already admitted phone hacking.

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US man denies mailing guns to Australia

A US man has denied he posted an assault rifle and a 9mm pistol to buyers in Australia.

Adam Joseph Bunger, 33, was arraigned in the District Court in Bowling Green, Kentucky, on Wednesday accused of using encrypted German-based website Black Market Reloaded to find buyers in Australia, the UK and other nations for guns.

An international investigation began in June when authorities in Sydney inspected a package sent via express post from the US and discovered a Star Echeverria, Modelo Super 9mm pistol hidden inside an Xbox game console.

In July, authorities allege two more packages sent by Bunger, one bound for Australia containing a disassembled assault rifle hidden in a DVD player and the other containing an "Uzi style pistol", headed to a UK address, were seized.

Bunger, from Bowling Green, entered not guilty pleas to charges of exporting firearms contrary to US law and dealing in firearms in foreign commerce while not a licensed importer, manufacturer or dealer.

Bunger's trial is set for December 16.

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MPs don headscarves in Turkish parliament

FOUR female MPs with the Islamic conservative AK party have broken a long-standing taboo by wearing headscarves in the Turkish parliament.

The last time an MP wore a headscarf in parliament was in 1999, when parliamentarian Merve Kavakci caused an uproar by her appearance in one.

Her actions led to her losing her seat in parliament and her Turkish citizenship.

Prime Minister Recep Tayyip of the AK party last month overturned the ban on Islamic headscarves except in courts of law and the security forces.

The September 30th move was a part of a package of political reforms aimed at strengthening democracy, including granting greater freedoms for the Kurdish minority.

The reforms were announced months after mass protests against Erdogan's perceived authoritarian governing style and ahead of elections next year.

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Safe assumption phone was tapped: Carr

BOB Carr says while he was foreign minister it was a "safe assumption" to operate as though his phone calls were being monitored.

Mr Carr's comments come after media leaks from former US intelligence contractor Edward Snowden revealed that German Chancellor Angela Merkel, and other foreign leaders, had their personal phones tapped by the US National Security Agency (NSA).

The revelation has created an uproar in Germany and across Europe amid conflicting reports as to whether US President Barack Obama knew of the eavesdropping.

When asked by ABC's Lateline on Thursday whether he operated under the assumption that his calls were being monitored while he was Australia's foreign minister, Mr Carr said it was a "safe assumption".

"In travelling in some parts of the world, one felt that advice more pressing than in other parts of the world," the recently retired NSW senator said.

Mr Carr, who was foreign minister under the former Labor government, says the lesson to be learned out of the leaks is whether allowing security agencies to pursue "adventurous objectives" is worth the potential loss of prestige.

"The Americans are going to have a vigorous debate about whether their national interest has been compromised by a too adventurous activity from intelligence agencies set up, strengthened, and strongly resourced after September 11," he said.

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UK Trial told Brooks, Coulson had affair

FORMER News International chief executive Rebekah Brooks and ex-News of the World editor Andy Coulson had an affair for at least six years, a jury has heard.

Prosecutor Andrew Edis has told jurors at the Old Bailey that in February 2004, when the pair were both working at the media giant, they had been having a relationship for some years.

He says a letter was found on Brooks's computer from February 2004, that made the relationship clear.

Edis said: "The point that I'm going to make in relation to that letter is that over the relevant period, what Mr Coulson knew, Mrs Brooks knew too. And what Mrs Brooks knew, Mr Coulson knew too - that's the point.

"Because it is clear from that letter that, as of February 2004, they had been having an affair which had lasted at least six years."

Edis told the court that the pair had been having an affair dating back to around 1998, spanning the period covered by their phone-hacking conspiracy charge.

The court heard that the letter - apparently written by Brooks in response to Coulson trying to end the affair - included a declaration of her love for her colleague.

Edis told jurors he was not revealing the affair to deliberately intrude into their privacy or to make a "moral judgment".

"But Mrs Brooks and Mr Coulson are charged with conspiracy and, when people are charged with conspiracy, the first question a jury has to answer is how well did they know each other? How much did they trust each other?

"And the fact that they were in this relationship which was a secret means that they trusted each other quite a lot with at least that secret and that's why we are telling you about it."

He says the revelation is likely to attract a "great deal of publicity" and may draw some "unfair, unkind and unnecessary" comment.

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Permira snaps up UK's Dr Martens

BRITISH boot brand Dr Martens has been snapped up by private equity firm Permira in a STG300 million ($A507.14 million) deal, ending more than 50 years of family ownership.

It means the boots - footwear of choice for generations of skinheads, punks and students - will join a stable of brands which also includes Hugo Boss and New Look.

The Northamptonshire-based Griggs family, who have been making shoes since 1901, will retain control of around 20 per cent of the business.

Dr Martens employs 700 people worldwide, including 350 in the UK, and its products are sold in 63 countries.

The deal, expected to complete in January, will see Permira take control of parent company R Griggs.

Chief executive David Suddens says the brand's authenticity and the millions of customers who have used "Docs" as a symbol of self-expression for over half a century are what makes Dr Martens unique.

"The Permira funds respect that heritage and want to support the management team in nurturing it," Suddens said.

Cheryl Potter, partner and head of the consumer sector team at Permira, says Dr Martens is an iconic brand with a passionate fan base of followers.

Dr Martens has enjoyed a revival in fortunes in recent years as a new generation of stars such as Miley Cyrus, Emma Watson and Agyness Deyn took up the "bovver boots" whose popularity - once espoused by the likes of The Who's Pete Townshend - had been on the wane.

The deal follows reports of the Griggs family looking to exit the business after more than five decades running the brand that last year made STG15.3 million pre-tax profits on revenues of STG110 million, following an abortive sale attempt last year.

Permira is thought likely to try to expand Dr Martens' online and store presence into new international markets.

The Griggs family started producing the Dr Martens boots in 1960 after the development of a revolutionary new air-cushioned sole by the Germans Klaus Martens and Herbert Funck.

It still pays an annual fee to the families of the two men.

Production was moved to Asia, but the original Northamptonshire factory was reopened in 2007 to produce vintage styles.

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Roma family removals probe in Ireland

IRELAND'S police watchdog will review the cases of two Roma families having children removed from their homes amid claims they could not prove their identity.

Two reports have been ordered on the controversial action by gardai and health officials after a seven-year-old girl was taken from her south Dublin home for 48 hours and a two year-old boy from his home in Athlone in the Midlands overnight.

Both children were subsequently proven to be members of the families with the girl returned home after DNA tests.

The police watchdog, the Garda Siochana Ombudsman Commission, said it has not received any complaints but has demanded copies of a report by the Commissioner Martin Callinan.

"We have requested this in order to inform ourselves fully of the circumstances of events so that we can take an appropriate position," a spokesman for the Ombudsman said.

Separately, the Ombudsman for Children Emily Logan will investigate why the children were removed from their families.

She will be furnished with two reports - from Mr Callinan and the Health Service Executive (HSE) - in two weeks time.

Both youngsters have blonde hair and blue eyes while their parents have darker complexions and hair, which is not out of the ordinary in the Roma community.

Amnesty International threw its weight behind calls from one of the families for an independent inquiry.

Colm O'Gorman, spokesman for the organisation in Ireland, said responses to reported child protection concerns needed to be proportionate and non-discriminatory.

"If it is found that the authorities' actions were discriminatory, steps must taken to ensure this is not repeated. There must be a public apology to the Roma families for the wrongdoing.

"The eyes of the world are now on Ireland, and the Government must show institutional discrimination will not be tolerated."

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Spain's unemployment rate falls

THE number of unemployed people in Spain dropped by 72,800 to 5.9 million in the third quarter, pushing the unemployment rate down to 25.98 per cent.

The drop in the number of jobless people in the third quarter, compared to the same period in recent years, was the sharpest since 2005, the National Statistics Institute reported in its Labour Force Survey on Thursday.

Employment rose by 39,500 to 16.82 million in the July-September period, marking the first rise in the third quarter of a year since 2010, with the labour force participation rate hitting 59.59 per cent, the Labor Force Survey said.

The unemployment rate for men in the second quarter was 25.50 per cent, while the jobless rate for women was 26.55 per cent.

The youth unemployment rate - calculated for those younger than 25 - was 54.39 per cent in the third quarter, down 1.75 percentage points.

The number of households with all members of the labour force unemployed fell by 13,400 in the July-September period, but it still stands at a high 1.8 million, the report said.

The Bank of Spain said in its latest economic bulletin Wednesday that the country climbed out of recession in the third quarter, growing 0.10 per cent from the previous three-month period to end a streak of nine consecutive quarters of contraction.

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Bad bushfire conditions set to linger

BUSHFIRE-WEARY NSW residents shouldn't expect any respite just yet, with dangerous fire weather expected to linger for at least another three days.

Scores of fires continued to burn around the state late on Thursday as the bushfire crisis entered its second week.

But none burned at emergency level overnight.

A Rural Fire Service spokesman has warned that warm weather and strong winds were expected to plague the state until early next week at the least.

He conceded some residents may become "frustrated" after days of being urged to leave their homes, then being allowed to return.

But he pleaded for locals in bushfire-affected areas to continue to heed official warnings because the danger remained real.

Governor-General Quentin Bryce is expected to tour bushfire-hit parts of the Blue Mountains, west of Sydney, on Friday.

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Appeal for UK Savile cop to come forward

A FORMER UK police officer who anonymously told journalists that he caught Jimmy Savile trying to seduce an underage girl in 1965 has been urged to come forward and speak to investigators.

The ex-Leeds Pc spoke to the Daily Mirror and the BBC under the pseudonym Paul Leonard, claiming that Savile was found parked in a lay-by with a young girl in his Rolls Royce.

He told the newspaper that the disgraced DJ said he was waiting for midnight when the girl turned 16, and threatened: "If you want to keep your job I suggest you get on your bike and f-off."

Today West Yorkshire Police appealed for the man to speak to them about the incident.

The force released a statement that said: "West Yorkshire Police are appealing for a man who spoke to the media yesterday in relation to the Jimmy Savile case to get in touch.

Previous appeals have been made for witnesses with information about Savile to come forward, but the force said they do not believe that he has made contact before.

The statement went on: "To our knowledge, Mr Leonard was not one of those who made contact. Given that Paul Leonard used a pseudonym, a false name, in his media interviews his identity or the content of what he says is very difficult to verify.

"We are however keen to speak to 'Mr Leonard' in order that this can be investigated thoroughly."

The former officer told the Daily Mirror that he had been warned off pursuing the incident by a more senior officer.

He claimed that a sergeant had said: "Shut up, son, he's got friends in high places. If you know what's good for you, you'll leave it there."

The officer told the newspaper: "There wasn't a copper in Leeds who didn't know Savile was a pervert. But he was so well-connected. He was like a superstar."

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Drug offers hope for pancreas cancer

A BREAST cancer drug can double two-year survival rates of patients with pancreatic cancer, trial results have shown.

Nab-paclitaxel, marketed as Abraxane, also increased the proportion of patients still alive after one year by 59 per cent.

It is already approved for women with spreading breast cancer who have run out of other options.

Pancreatic cancer is one of the deadliest cancers, killing 80 per cent of patients within a year.

The disease claimed the life of Hollywood star Patrick Swayze.

Data from the MPACT (Metastatic Pancreatic Adenocarcinoma Clinical Trial) study showed significant improvements when patients were treated with Abraxane in combination with standard chemotherapy.

Average survival increased from 6.7 months to 8.5 months. One year survival rates rose from 22 per cent to 35 per cent and at two years they doubled from 4 per cent to 9 per cent.

The results are published in the New England Journal of Medicine.

"Today's news represents a major step-forward in the treatment of advanced pancreatic cancer," said consultant oncologist Dr Harpreet Wasan, from Hammersmith Hospital in London, who runs a pancreatic cancer research program.

"The prognosis for these patients is exceptionally poor and, unlike many other cancers, current treatment options are limited. Based on this data, nab-paclitaxel offers patients a major new advance."

Ali Stunt, founder and chief executive of the charity Pancreatic Cancer Action, said: "Pancreatic cancer is lagging behind other cancers in terms of treatments that extend survival, but nab-paclitaxel has the potential to offer hope to patients with this deadly disease."

Abraxane's manufacturer Celgene has applied to the European Medicines Agency (EMA) for a licence to use the drug to treat advanced pancreatic cancer.

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Conditions easing for NSW firefighters

LARGE fires continue to burn across NSW, but Friday should bring a welcome change of conditions for firefighters and residents in fire zones.

While the extent of the devastation was unclear on Thursday night, one of the worst-hit areas was Springwood, in the Blue Mountains, where up to 30 homes were known to be lost.

But authorities expect the number of destroyed or damaged properties across the state will be much worse and fear lives may be lost.

Elsewhere, thousands of firefighters are struggling against about 100 blazes across the state - on the Central Coast and further north, the Southern Highlands and the south coast.

Temperatures in the low to mid 30s, with a maximum of 37 recorded near Newcastle, combined with strong winds gusting up to 102 km/h provided terrible conditions for firefighters on Thursday.

Thousand of hectares were burnt, mainly around the state's Central Coast, and authorities expect hundreds of homes to be lost.

But the weather should ease on Friday, a Bureau of Meteorology spokesman told AAP.

Temperatures should drop by about 10 degrees, with the mercury expected to hit 20-25 degrees in most parts of the state.

During the night, winds will decrease and will be negligible for most of NSW on Friday, blowing below 15km/h.

The strongest breeze is predicted to swirl at 30km/h.

"We are not expecting winds to be of any significance because of a high pressure region," the BOM spokesman said.

"Apart from humidity, all the other factors will play in the favour of the firefighters."

No serious rain is expected but showers may come for the coastal parts of the state between Monday and Wednesday.

While firefighters will be flat-out, some students will be able to take the day off, with numerous schools closed on Friday.

Winmalee Primary School, Winmalee High School, Ellison Primary School and Zig Zag Primary School in the Blue Mountains and Yanderra Primary School in the Southern Highlands weren't damaged, but fires are dangerously close to the schools, a Department of Education spokesman told AAP.

St Columba's High School and St Thomas Aquinas Primary at Springwood, Bunya Child Care Centre and Rainbow Preschool at Winmalee are also closed.

Students from Winmalee High School and St Columba's can attend other schools to sit their HSC exams, or if they can't make it safely to an alternative location they can make an application to ensure they aren't adversely affected.

Parents and students are advised by the department to contact their schools on Friday morning for further updates.

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Time for human Hendra trial: scientist

THE scientist who developed the Hendra vaccine wants to see it trialled on humans.

Almost a year after the Equivac vaccine became commercially available for horse inoculation, Professor Christopher Broder is hoping to secure funding to start human trials.

The US scientist says the Hendra virus protein, in every vaccine dose, has already been successfully tested on cats, ferrets, monkeys and horses.

The first foals recently born to horses vaccinated against Hendra also showed no complications, and Prof Broder says there's no reason why human trials can't go ahead.

"I'd certainly like to see that done," Prof Broder told AAP.

"We picked the right protein and we've been able to show in not only one animal model - but now four animal models - that there are no adverse reactions to the vaccination."

However, Prof Broder said he wasn't sure how soon he could secure funding for a phase-one safety trial.

"Whether or not those funds will become available in the next few years is anyone's guess considering the current state of research support in both the United States and Australia," he said.

Prof Broder said current testing focused on how often a horse's immunity against Hendra should be boosted.

Horses are believed to contract the virus from feed contaminated by urine, saliva or birthing fluids from flying foxes.

There's no known cure for Hendra, but the Equivac HeV vaccine aims to break the cycle of transmission and prevent human deaths.

Four people have died from the virus in Australia since 1994.

Even if the Hendra vaccine can't be tested on humans, Prof Broder is confident it will go a long way towards preventing Hendra virus in horses and people.

Every person infected with Hendra has contracted the virus from a horse, he said.

"The vaccine is going to break that chain of potential transmission and, in reality, if 90 per cent of horses end up getting vaccinated and it's taken up very well then Hendra virus is definitely not going to be a problem any more.

"And I think it has a really good chance of being that way."

Prof Broder will spend the next two weeks in Australia discussing the progress of the vaccine with government representatives and those who have been instrumental in fighting the Hendra virus.

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Warships to leave Sydney Harbour

THEY sailed, they berthed and they entertained.

Now the warships in town for the International Fleet Review will depart Sydney Harbour, marking the close of the nine-day navy event.

Those from afar off as Nigeria, India and the United Kingdom arrived a week ago and helped celebrate 100 years since the Royal Australian Navy fleet entered the harbour.

Most will depart at 7am.

Many of the ships will also go on to participate in Exercise Triton Centenary in Jervis Bay on the NSW south coast, which will see nations display warfare skills and exchange maritime views.

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Vic police vow to continue bikie crackdown

POLICE have vowed to continue their crackdown on bikies involved in criminal activities after the largest raid on a single club in Victoria's history.

Guns, ammunition, drugs and cash were seized and 13 people arrested when more than 700 police, including federal and customs officers, swooped on Hells Angels clubhouses and members' homes on Thursday morning.

All of those arrested have significant roles within the Hells Angels, police say.

They include sergeant at arms Peter Hewat, 58, who faces 13 charges at Melbourne Magistrates Court on Friday after $47,000 of cash and weapons were allegedly seized from his Craigieburn business and Mickleham home.

Police had hoped to find a high-powered AK-47 and a M1 carbine assault rifle - used in recent drive-by shootings by Hells Angels members at rival clubhouses in Hallam, Dandenong and Clayton South - but were unsuccessful.

Victoria Police Chief Commissioner Ken Lay has vowed to track them down and put pressure on the gang.

"We haven't recovered those firearms, so we will continue our operation, we will continue our work until we get those guns," he said.

Acting Assistant Commissioner Tess Walsh said the police crackdown will continue.

"Our operation is ongoing and we intend to continue to target all of those groups and individuals that are involved in criminal activities," she said.

Ms Walsh expects Hells Angels across Australia to feel the impact of Thursday's raid.

"The impact interstate has been significant and I think this type of activity and this type of show of strength puts ... all those that are involved in criminal activities on notice," she said.

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Church attempted to conceal crimes, FoI

THE Catholic Church believed it had an understanding with the NSW police in 2003 that allowed them to conceal evidence against pedophile priests, a freedom of information (FoI) document reveals.

The file, accessed through FoI laws by NSW Greens MP David Shoebridge and obtained by ABC's Lateline, documents the Catholic Church's attempt to co-opt NSW police to strike into the illegal agreement.

"Church authorities shall make available the report of an assessment and any other matter relevant to the accused's account of events only if required to do so by court order," the unsigned draft memorandum read.

Catholic Commission for Employment Relations executive director Michael McDonald wrote to the NSW child protection squad on June 18, 2003 seeking confirmation the memorandum of understanding (MOU) was still in place.

In response, Kim McKay from the child protection squad advised no agreement ever existed.

"The arrangements proposed by the draft MOU appear to be in direct conflict with the explicit legislative requirement of section 316 of the Crime Act," he wrote in August 20, 2003.

It's unclear how long the church had been acting according the draft MOU.

Michael Salmon, who was the Catholic Church's point of contact for police at the time, provided a statement to Lateline confirming the church had operated under the unsigned agreement.

"The church assumed it was operational, we were practicing the provisions of the MOU and dealing with the police under those provisions," he said.

"We had an understanding from police it was approved."

Mr Shoebridge says it's unclear how many cases were dealt with by the church under this assumption.

"It's likely that hundreds, if not more than that, cases were processed through this MOU," he told ABC.

"Processed in a way that didn't protect victims, didn't assist the police in prosecuting for crimes, but protected the good name of the church."

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Man stabbed after Sydney mugging

TWO men have been robbed and one stabbed on a busy west Sydney street.

A man turned up with stab wounds to a medical centre on Haldon Street, the main shopping strip in Lakemba, on Thursday night.

He was taken to St George Hospital but his injuries have been described as non-life threatening.

His uncle - who was not hurt - has told police the man was stabbed after the pair were robbed by two men on the street.

Police have established a crime scene and are urging witnesses to come forward.

09.17 | 0 komentar | Read More

Rudd to unveil outer suburbs plan

PRIME Minister Kevin Rudd is to unveil his plan to make living in the outer suburbs more affordable.

Mr Rudd, who is campaigning in Perth on Friday, will commit to appointing Australia's first Minister for Cities and will also pledge to set up a task-force to look at boosting jobs and economic growth in the outer suburbs.

He's also expected to push for better roads and transport infrastructure to be built outside major cities as a way of easing cost of living pressures.

Mr Rudd will argue that Australia's outer suburbs will be central to the country's population and economic growth.

"They are home to almost three-quarters of all Australians - yet opportunities are not shared fairly across the different suburban areas in each city," he will say.

"The Labor government will ensure more of the jobs of the future are based in the suburbs of the future, improving the livability of our outer suburban regions."

The funding for the plan is already included in the federal budget, Labor says.

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Young women have more IVF success: study

ONE in two women aged under 35 will be rewarded with a baby if they persevere with assisted fertilisation attempts, according to a groundbreaking study.

But the chances of success drop dramatically after five tries.

The University of NSW (UNSW) study is the first in the world to track national success rates for IVF (in vitro fertilisation) and is based on 2011 statistics from 35 centres in Australia and New Zealand.

A major concern is the increasing number of older women seeking treatment, with limited success.

It is important for people to start planning their family at a younger age, says lead author UNSW Professor Elizabeth Sullivan.

Although fertility treatment can be useful, it is always best to conceive spontaneously if possible, says Prof Sullivan, whose study is included in an report to be presented at a Fertility Society of Australia scientific meeting on September 1.

The overall chance for all age groups of delivering a baby is 21 per cent after one cycle of treatment, increasing to 40 per cent by the fifth cycle.

When women aged 35 and older are removed from the statistics, the success rate jumps to more than 50 per cent after five attempts.

"This is a great result. It shows the benefit of getting treatment early," says Prof Sullivan.

Around one in 25 babies born in Australia are the result of assisted fertilisation, she says and the average age of women using their own eggs in 2011 was 36.

The fastest growing group is women aged 40 and older, making up 25 per cent of the clinics' clientele.

Prof Sullivan says although older women have a very low success rate using their own eggs, they usually manage as well as younger women using donor eggs.

Donor eggs are seldom used in Australia, however.

Prof Sullivan is particularly happy with the way Australia and New Zealand have led the way in reducing the number of multiple births through using single embryo transfers.

The percentage of multiple deliveries was at 6.9 per cent in 2011, compared with more than 25 per cent in 2010 in the US.

"Australia and New Zealand have the lowest multiple birth rate in the world," says Associate Professor Mark Bowman, a fertility doctor and the president of the Fertility Society of Australia.

"Importantly, this has been achieved while the clinic pregnancy rate has remained stable."

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Hockney aide killed by acid drink

AN assistant to British artist David Hockney died after drinking acid at the painter's home, an inquest has heard.

Dominic Elliott, 23, had taken cocaine, ecstasy and temazepam before he drank the liquid and was rushed to hospital, where he died.

Elliott became ill at Hockney's home in Bridlington, in East Yorkshire, in March.

The artist was not at home at the time.

Hockney's former long-term partner, John Fitzherbert, told the hearing in Hull that he drove Elliott to Scarborough Hospital in the early hours of the morning.

He said that during the day leading up to the incident he and Elliott had smoked cannabis and drunk alcohol and Elliott had also snorted cocaine.

A pathologist told the court that temazepam and ecstasy was also found in his body.

Dr Richard Shepherd said the acid severely burned Elliott's mouth, tongue and throat before perforating his stomach.

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UK government wins Snowden case

A BRITISH court has ruled the UK government may look through items seized from the partner of a journalist who has written stories about documents leaked by former National Security Agency contractor Edward Snowden.

Lawyers for David Miranda, the partner of Guardian reporter Glenn Greenwald, said the seized items contain confidential information. It asked the High Court to prevent the government from "inspecting, copying or sharing" the data.

Instead, the court will allow the government to view the items on the condition the material is being examined on "national security" grounds. The injunction runs until August 30.

It was not immediately clear whether the court or the government would be authorised to decide what is in the interests of national security.

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Fund for slain Aussie nears $US100,000

AN online fund set up by a mate of murdered Australian Chris Lane to help pay for funeral expenses has been deluged with almost $US100,000 ($A112,000) in donations from people around the world.

When Marshall Veal, who played baseball with Mr Lane in Oklahoma, set up the fund, the goal was to raise $US15,000.

The money was to be used to pay for the cost of Mr Lane's parents, Peter and Donna, to fly to Oklahoma, pick up his body and take it back to Melbourne for the funeral.

However, the generosity will likely make it possible to set up a Christopher Lane Foundation.

As of Thursday morning (Friday AEST), the fund, launched just two days ago, has raised $US91,500.

More than 2200 people have donated as little as $US5 to the fund and the messages left run the gamut of emotions, with some angry while others are heartbroken at the tragic way Mr Lane, 22, was shot in the back last Friday in Duncan, Oklahoma, and left to die.

"My sincerest regrets that Christopher was taken from you by these three vivid examples of America's trash," Jeff Simon wrote in a message following his $US5 donation.

"Don't judge us too harshly by the dregs of our society."

James Edwards, 15, and Chancey Luna, 16, have been charged with first degree murder.

It is alleged Luna fired the shot into Mr Lane's back as he jogged along a Duncan road.

Michael Jones, 17, was the alleged driver of the car and is charged with being an accessory to murder.

Oklahoma police allege the three boys randomly targeted Mr Lane because they were bored and thought it would be fun to kill him.

The online fund can be found at: www.gofundme.com/3zktjc

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WikiLeaks 'not a front for the Greens'

Julian Assange has taken responsibility for the apparent disintegration of his WikiLeaks Party. Source: AAP

THE WikiLeaks Party has accused the Australian Greens of trying to divert voters away from it.

Julian Assange's party faced criticism earlier in the week for preferencing the Shooters and Fishers Party and Australia First Party ahead of the major parties and the Greens on its how to vote cards.

Greens Leader Christine Milne went as far as accusing WikiLeaks as "betraying" her party.

The party has rejected that claim, saying it had placed the Greens first among the major parties in all states where it has candidates.

"Milne's comments must be seen as ungracious and part of a hostile attempt to divert voters from the WikiLeaks Party," it said in a statement on Thursday.

The party warned that it wasn't a "front group for any other party, including the Greens".

WikiLeaks has both right-wing and left-wing policy goals, it says.

"The WikiLeaks Party is both a party of the left and the right in that we represent the struggle for both justice and freedom," the party said.

Meanwhile, WikiLeaks announced RMIT legal expert Dr Binoy Kampmark would now be Mr Assange's main running mate in the Senate election for Victoria.

He replaces ethicist Leslie Cannold who quit on Wednesday after a dispute over preferences, claiming the party was failing to live up to its democratic principles.

Her resignation was followed by other senior figures walking away from the party, including a number of people on its National Council.

Mr Assange, who is holed up in the Ecuadorean embassy in London, said he had spent the past two months dealing with the Edward Snowden asylum situation.

"Trying to save the life of a young man," Mr Assange told ABC television.

"So I admit and I accept full responsibility for over-delegating function to the Australian party while I tried to take care of those situations."

He said the nine-hour time difference made it difficult being party leader and he hadn't been aware of the internal problems until Wednesday morning.

"Leslie didn't speak to me to address any issues or concerns," he said.

"From my perspective, if something is serious you speak to the party leader about it before you speak to the press."

National Council member Daniel Mathews announced his resignation late on Wednesday night, citing "the recent fiasco over Senate preferences".

Mr Mathews was critical of Mr Assange for only attending one of 13 National Council meetings.

"Helping Ed Snowden is surely more important than attending a council meeting," he said in a statement.

"But still, attending one out of the first 13 National Council meetings of the party (all of which he could call into) is a fairly low participation rate in one's own party."

Senior Liberal Eric Abetz said the implosion of the WikiLeaks Party highlights the essential instability of minor parties".

"This is a salutary object lesson on the dangers of voting for minor parties," Senator Abetz said in a statement.

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