Liberal lead narrows in McEwen

THE margin is tightening in the nation's closest election race in the Victorian seat of McEwen.

Liberal challenger Donna Petrovich narrowly leads Labor incumbent Rob Mitchell, with just 142 votes separating them at lunchtime Saturday.

This has narrowed from Friday, with almost 85 per cent per cent of the vote counted.

In Victoria's other close contest, between Liberal Sophie Mirabella and independent Cathy McGowan in Indi, the latter's lead is widening.

On Saturday, Ms McGowan led by 805 votes with more than 88 per cent of the ballots tallied.

Mrs Mirabella this week ruled herself out of a cabinet post in the Tony Abbott government, saying her decision allowed the new prime minister to choose his ministry without waiting for the result in her seat.

Counting continues Saturday and Sunday.

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United honours $5 tickets after web glitch

US flight company United Airlines says it will accept tickets it mistakenly sold this week for next to nothing.

A pricing error on the company's website on Thursday left lucky travellers paying only the security fee of $5 ($A5.40) or $10 ($10.80) on domestic flights.

"We've reviewed the error that occurred yesterday and based on these specific circumstances, we will honour the tickets," the company posted on micro-blogging website Twitter.

Some of the tickets - such as from east coast cities to Hawaii - would normally have cost close to $1000.

The company did not say how many tickets had been sold at the wrong prices.

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Death toll in US floods rises to four

Colorado has received more than its normal annual rainfall in a single day, leaving four dead. Source: AAP

A FOURTH body has been recovered after floods in the western US state of Colorado, as the area received nearly half its normal annual rainfall in a single day, reports say.

Officials in Boulder County, in the northeast of the state, recovered the body of a woman swept away after leaving her vehicle on Thursday, Sheriff Joe Pelle said, according to CNN.

The body of a man who left the same car had already been recovered.

An estimated 38 centimetres of rain fell on the area on Thursday.

About 80 people in Boulder have been reported missing, CNN reported, quoting a local sheriff department spokeswoman.

President Barack Obama declared a state of emergency for Boulder and the nearby counties of El Paso and Larimer, the Federal Emergency Management Agency (FEMA) said.

The declaration orders federal aid to supplement state and local response efforts.

The National Weather Service issued a flood warning and said flooding and heavy rain would continue late on Friday.

Several areas were under evacuation orders, the Denver Post reported.

The Rocky Mountain National Park was closed to visitors, according to the park's website, and the University of Colorado cancelled Saturday's scheduled football game.

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Aquila Resources rebounds into profit

AQUILA Resources has rebounded into profit as it offloads assets and plans to bring its Eagle Downs project into production by 2017.

Aquila said 2012-13 profit was $317 million following a loss of $238,000 in the prior year.

The company said asset sales replaced coal sales as the primary source of income during the year, with the sale of three assets resulting in a net gain of $491 million.

Aquila sold a 50 per cent stake in its Isaac Plains project and a 24.5 per cent interest in Belvedere.

The company said its Eagle Downs project was scheduled for production in the first half of 2017.

"Any short-term profits will likely be generated from the sale of non-core assets," the company said.

In June Aquila carried out redundancies at its Perth and Brisbane offices as well as its Eagle Downs and West Pilbara operations.

The company said it had not been able to agree with its joint venture partners on the fiscal 2014 budget, resulting in minimum expenditure continuing to apply for the West Pilbara project in the coming financial year.

At 1120 AEST Aquila shares were four cents, or 1.8 per cent, lower at $2.18.

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Recount no good, result is rigged: Palmer

CLIVE Palmer says he doesn't know whether there's much point requesting a recount in Fairfax because Australia's electoral system is "rigged".

The mining magnate was on Friday ahead in the Sunshine Coast seat by 1132 votes.

But his lead has been eaten away by Liberal National Party opponent Ted O'Brien since the counting of postal votes began.

Mr Palmer has told AAP he'll wait until most votes are tallied before considering whether to request a recount.

However he isn't convinced one would make much difference.

"I just don't know. All I know is that it is rigged," said Mr Palmer, who has called for a full review of electoral processes which he claims are open to corruption.

"A recount is not relevant - it is the integrity of the Australian Electoral Commission that is. And a recount won't change that. Whether I win or lose, the system needs to be fixed."

Mr Palmer said it appeared ballot papers in Fairfax have been tampered with.

He wants the AEC to give him the names of electoral officials who signed ballot papers and specimens of their initials.

On Tuesday, Mr Palmer predicted he would lose Fairfax because of unfair electoral processes, including voting irregularities and ballot security.

He said it was surprising that identification wasn't required to vote and that voters were given pencils, not pens, to fill in ballots.

He has threatened to have his party's two Senate bound candidates block legislation unless electoral reform is promised.

AAP has sought comment from Mr O'Brien.

The AEC has said its processes are robust and won't comment on Mr Palmer's allegations.

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Albanese stands against Shorten

ANTHONY Albanese has decided to stand for the Labor leadership, meaning rank and file members will help choose the party's parliamentary leader for the first time.

Chris Bowen will be Labor's interim leader until the vote is decided.

The contest of two or more candidates triggers a ballot of rank-and-file Labor members, as well as caucus, with both groups having an equal say in the leadership.

"While this important process is underway, we won't stop holding the government to account and I'm very glad to have been appointed interim leader while this process is underway," Mr Bowen told reporters in Canberra after Labor caucus met for the first time since their election defeat.

"The Labor Party has a choice between two very good candidates. Two very good candidates with a vision for Australia.

"Today the Labor Party begins the process of becoming a bigger, more transparent, more open, more democratic party.

In the meantime, Mr Bowen said shadow cabinet would consist of those who formed the executive in the outgoing government.

"I've asked Richard Marles to be acting shadow minister for defence as well as being shadow minister for trade over the next month."

The new process of electing their leader brings the party in line with similar movements around the world, he said.

"It means the new Labor leader will have more legitimacy than any other political leader in Australian history," Mr Bowen said.

"They will have been elected by the whole Labor party, by every eligible rank and file member, as well as by the parliamentary caucus."

Grassroots members will vote first and then caucus will conduct a ballot without knowing the result of the community poll.

Mr Bowen said former prime minister Kevin Rudd had indicated he would return to the backbench and it was up to him whether he remained in parliament.

Some Labor MPs have called for Mr Rudd to quit parliament to draw a line under the divisive Rudd-Gillard years but Mr Bowen was not doing that.

"He should be given the respect due to a former leader of the Labor Party and a former prime minister," Mr Bowen said.

"He is still a relatively young man, with I think things to offer the nation.

"It's up to him whether he chooses to provide that service through being in parliament, or through other mechanisms."

Mr Bowen was confident the campaign would be conducted in a mature fashion that would not damage either candidate.

"They both indicated that if any of their supporters launch any personal attacks on the other candidate, then they will be dealing with that."

As interim leader Mr Bowen will not be publicly endorsing either Mr Albanese or Mr Shorten.

"My role as interim leader is to keep the focus on the government over the next month," he said.

Mr Bowen didn't put his name forward because he believed his best fit was to make himself available as shadow treasurer.

He said the candidates were in discussion with the party's national secretary George Wright on who would pay for their travel around the country during the campaign.

It was yet to be determined if the ballot for Labor party members would happen through postal or electronic means, he said.

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Consumer confidence at three-year high

The coalition election victory and record-low interest rates have boosted consumer confidence. Source: AAP

CONSUMER confidence has soared to an almost three-year high, propelled by record low interest rates and the election of a coalition government.

The Westpac Melbourne Institute Index of Consumer Sentiment, released on Wednesday, increased by 4.7 per cent in September to 110.6 - its highest point since December 2010.

Westpac chief economist Bill Evans said although the survey was mostly conducted before Saturday's election, between September 2 and 8, it was clear the election outcome played a big part in the confidence boost, along with record low interest rates.

"This is a very strong result," Mr Evans said.

"It was really only the last day of the survey that covered the actual election result although media coverage pointed strongly to a coalition victory throughout the survey period.

"I think it is reasonable to conclude that the election result played an important, if not leading, role in this strong boost to consumer sentiment.

"The result is comparable with the boost to the index in March 1996 when the coalition was returned after 13 years in opposition."

CommSec chief economist Craig James said confidence usually lifted before and after elections.

"The main reason for the lift in sentiment is removal of uncertainty and a perception that the economy will get back to normal with consumers and businesses spending, investing and employing again," Mr James said.

"Certainly, there are few reasons for people to be glum with interest rates and unemployment at historically-low levels."

Mr James said the survey showed consumer conservatism was thawing, with people now less willing to use spare cash to pay down debt.

HSBC chief economist Paul Bloxham said the political uncertainty ahead of the election had dampened business sentiment, which in turn, led to consumer uncertainty about job prospects.

The turnaround in confidence meant the Reserve Bank may not need to cut rates further, he said.

"An improvement in sentiment is a much needed part of Australia's great rebalancing act," he said.

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Aussies hurt, guides killed in PNG

Tour leader Christina King. Source: Supplied

FOUR Australian trekkers have been injured, two of their guides hacked to death and another five badly injured when bandits attacked them on the first night of a trek in Papua New Guinea's highlands.

The group of seven Australians, one New Zealander and their local porters were setting up camp on the first night of a walk on the Black Cat track when they were attacked by a group of men armed with bush knives and machetes.

The group were on an organised walk with PNG Trekking  and were setting up camp at dusk in the village of Banis-Donki, about 200km north of Port Moresby, when they were ambushed.

Two PNG porters were hacked to death in the attack, which happened on Tuesday. Five others were seriously injured.

The Australians and New Zealander - who live in NSW, Victoria and Queensland - were all assaulted.

Four received knife wounds. Their injuries are not life-threatening. The group, in shock and many with injuries, then trekked back to Wau in the dark, leaving the porters in Banis-Donki.

"They have cuts and abrasions and are in shock,"  PNG Trekking boss Mark Hitchcock told News Corp.

Bandits have attacked a group of Australian and New Zealand trekkers in PNG, killing two local porters.

He said they hoped to airlift the group from Wau back to Port Moresby on Wednesday.

"They are taking stock but want to stay together," he said.

Mr Hitchcock said that while he didn't want to speculate on the cause of the attack he confirmed "all the trekkers had everything stolen".

He said that while four of the eight Australian trekkers were injured in the attack they were "all able to walk off the track by themselves".

The group fled from the village, where they had been staying for only a few hours before they were attacked.

"They had arrived into the village about one o'clock in the afternoon and had set their tents up," Mr Hitchcock said.

Armed bandits attacked an Australian trekking group in the PNG highlands, killing two guides.

"The attack occurred somewhere between three and four o'clock."

"The first village they went back to is quite some distance as well…they were met there at 8 o'clock at night.

"We mobilised assistance from a nearby mining joint venture and they sent medics as well as local porters."

Helicopters have been sent to airlifted the injured porters from the village.

"They all have knife wounds,'' said Morobe Mining Joint Venture (MMJV) spokesman Stanley Komunt, referring to the porters.

"We want to get them out quickly," Mr Hitchock said.

"We are deeply shocked by what happened."

Mr Hitchcock said police had sent a helicopter carrying four specialist police officers to the scene of the attack and the trekking group were expected to arrive in Port Moresby this afternoon.

"They're in transit now from Lae to the Bulolo airport. They should be getting in to the hospital between two and three this afternoon.

"They'll be in Port Moresby overnight.

"It's a shock for tourism in New Guinea...the trek is nowhere near the other treks people do in New Guinea.

"The incident is an isolated incident."

Daniel King, husband of trek leader Christie King, said: "Everything's okay, in terms of the group.

"A few of them have cuts and bruises and stitches. We have a plan now to get them out."

The Australian High Commission will meet with the group when they return to Port Moresby.

Elmore Lumpay was the medical officer on duty at the Lae International Hospital when the call came through about the attack.

"We organised a team to go up right away," Mr Lumpay said.

"They told us it was a bad attack.

"There is a surgeon up there as well as a nurse.

"The surgeon called us and said they would be here sometime today with the tourists...they only have minor injuries."

Mr Lumpay said that he had heard the PNG nationals were all still at the site as they were "too injured to be moved".

POSSIBLE MOTIVE

Dr John Garap, who has a medical clinic in Morobe Province, said he suspected local jealousy was behind the attack.

"I suspect (the violence) was probably between the tribes themselves. They were probably arguing over whether they should have taken turns being carriers for the trekkers," he said.

"The road that they were walking on is an old wartime track. It's very mountainous and goes through several villages and I think they (the locals) were arguing that they should have taken turns in assisting the trekkers across the mountain as porters."

The 60-year-old GP, who was educated in Queensland, said the trekking company contacted him after the incident.

"There was an incident last night and a helicopter was going out there to pick them up," he said.

"One of the relatives of the trekking team wanted me to recommend an emergency facility for them.

"I have not treated them but I referred them to the emergency department of the Angau General Hospital in Lae.

"I think they basically just had first aid and then were transferred to Port Moresby on their way to Australia."  

Meanwhile Kokoda Track trekking company operator and NSW Liberal MLC Charlie Lynn said he believed a serious attack was "an inevitability".

"I believe that what has happened on the Black Cat Track is a direct result of the failure of the Australian Government to appreciate that more Australians will want to follow the footsteps of our veterans in PNG," Mr Lynn said. "They have a duty of care to ensure they can do it safely and that the wartime integrity of the places they will visit is protected."

"This is something that was inevitably going to happen.

"They've refused to listen to people who've had experience in PNG."

It is unknown how many bandits were involved.

BLACK CAT TRACK

THE WORLD'S MOST DANGEROUS PLACES

The Department of Foreign Affairs and Trade has recommended trekkers avoid the Black Cat track.

Read the advice on New Guinea here.

The Black Cat track is a rough overland track in Morobe Province. It runs from the village of Salamaua on the coast of the Huon Gulf, south into the mountains to the township of Wau, about 220km north of Port Moresby.

The track started out in the 1920s and 30s as a trail for prospectors seeking to get rich on the gold in Wau.

They traveled from the port Salamaua on a treacherous three to four-day hike through leech-infested territory, a trail that has been described by trekking agencies which run walks in the area as "suitable only for masochists and Israeli Paratroopers".

It is an area rarely frequented by tourists.

Mr Hitchock said there had never been any trouble in the past on the trek.

"This has shocked us all," he said.

It was the scene of bitter fighting between Australian and US troops and Japanese forces in 1943. It is regarded as one of the most arduous walks in PNG.

Earlier this year, then home affairs minister Jason Clare and coalition immigration spokesman Scott Morrison walked the track, accompanied by a pair of wounded soldiers.

Violence against foreigners is not unknown in PNG. In April, an Australian man was killed and a woman gang raped by a mob in the Western Highlands.

Robert "Bob" Purdy, 62, from Melbourne, died instantly after being shot at point blank range when a group of up to 10 men confronted him at a house on the outskirts of Mt Hagen.

The men then raped a female guest at the house.

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Abbott makes boat plan top priority

Prime minister-elect Tony Abbott is expected to lay out his "stop the boats" plan next week. Source: AAP

PRIME minister-elect Tony Abbott is expected to lay out his "stop the boats" plan next week, after the swearing in of his new frontbench.

Mr Abbott on Wednesday met with the secretary of the Defence Department Denis Richardson, defence chief General David Hurley and vice chief Mark Binksin in Canberra.

The Abbott government's border protection strategy - codenamed Operation Sovereign Borders - will be led by a three-star general, who is yet to be named and could be a two-star officer from the army, navy or air force promoted into the new role.

Mr Abbott has already had initial talks about his government's priorities and co-operation with Indonesian president Susilo Bambang Yudhoyono and Papua New Guinea's prime minister Peter O'Neill.

It is expected Mr Abbott could visit Jakarta just before attending the APEC leaders' forum in Bali from October 7-8.

Mr Abbott has made it known his border protection policy will be the first cab off the rank after his new ministry is sworn in early next week.

The policy is expected to include escorting boats back to Indonesian waters where it is safe to do so, toughening visa conditions and offshore processing.

Mr Abbott said at the defence briefing on Wednesday that "economic strength, social cohesion and national security" were core government policy.

"Our armed forces are certainly not large by international standards but they are universally admired as being as good as anyone in the roles that we play and that is very much to your credit," he told the chiefs.

"I hope you will let your services know that the new government wishes to work in ways which will respect their professionalism and which will improve their capabilities."

Mr Abbott is also putting the finishing touches to his frontbench, which could be announced at the weekend before being sworn in early next week.

He has already signalled there won't be major changes from his shadow ministry lineup.

One frontbencher whose position is in doubt is Sophie Mirabella, who could lose her Victorian seat of Indi.

If veteran MP Bronwyn Bishop is elected Speaker, she will also create a vacancy.

Work is under way on creating an indigenous advisory council, chaired by former ALP president Warren Mundine.

Climate change policy is also the subject of talks with the public service, with multiple layers of environmental and industry bureaucracy likely to be shrunk.

Mr Abbott has yet to make a decision on where he will live, but Sydney's Kirribilli is the more likely choice while The Lodge in Canberra undergoes lengthy maintenance and renovations.

Two asylum seeker boats have arrived since Saturday's election with a total of 149 people on board.

They were intercepted on Sunday near Darwin and Christmas Island.

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Coalition cancels plum posting for Bracks

The Abbott government has been accused of pettiness after it axed Steve Bracks' diplomatic posting. Source: AAP

LABOR has accused the incoming Abbott government of being petty and vindictive after it axed a plum diplomatic posting for former state Labor premier Steve Bracks.

Julia Gillard's government appointed Mr Bracks in May to be Australia's next consul-general in New York.

He was due to take up the posting this month but incoming foreign minister Julie Bishop has cancelled it.

The former Victorian leader says Department of Foreign Affairs and Trade (DFAT) Secretary Peter Varghese called him to tell him of Ms Bishop's decision on Monday night.

Mr Bracks issued a statement saying he had spent the past month consulting with business and government leaders in preparation for the job. He says he now intends to seek work in the funds management sector.

"I wish the foreign minister-elect every success with her new appointment for this position and I will be making no further comment at this time," Mr Bracks said in a statement on Tuesday.

Labor's acting foreign affairs spokeswoman Tanya Plibersek condemned the move and called on incoming prime minister Tony Abbott to immediately reveal who he plans to send in Mr Bracks' place.

"This decision is both petty and vindictive," Ms Plibersek in a statement.

"It is telling that the first act of an Abbott government is to play party politics in international affairs.

"It also reflects a new low in diplomatic practice."

She pointed out that when Labor won government in 2007 it allowed former Liberal minister Amanda Vanstone to complete her posting to Italy.

Labor also appointed former Liberal leader Brendan Nelson as ambassador to the European Union and Tim Fischer as ambassador to the Vatican.

"By any measure, Steve Bracks is eminently qualified to serve as consul-general," Ms Plibersek said, pointing to his experience as both a state leader and a respected businessman.

But incoming Attorney-General George Brandis said Labor had given Mr Bracks the job as "a gift".

"Mr Bracks has no obvious credentials for that job," he told Sky News.

Incoming coalition minister Malcolm Turnbull criticised Labor for making appointments such as Mr Bracks' "literally on the eve of the beginning of the caretaker period".

In fact Labor appointed Mr Bracks on May 17, while Ms Gillard was prime minister and about two and a half months before Kevin Rudd called the election and the beginning of the caretaker period.

Ms Bishop said at the time she would review the appointment if the coalition won government.

Mr Bracks was the second former Labor premier that Bob Carr appointed to a prestigious post as foreign minister. He named former South Australian leader Mike Rann high commissioner to London last year.

Fellow former Victorian premier Jeff Kennett denied the decision was vindictive, saying Mr Bracks was a political appointment made when an election had already been called.

"This was a political appointment by a person who was still very political, was involved in this campaign, who hadn't taken up his post, so it's sour grapes," Mr Kennett told ABC radio on Tuesday.

Victorian Labor leader Daniel Andrews says Mr Bracks was excited about his new role and his axing is bitter and petty.

"At a time when Julie Bishop's attentions I would've thought would be rightly focused on issues like Syria, the fact that she can even find time to play these petty partisan games, it's not a great start for Tony Abbott and for Julie Bishop," he told reporters.

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NSW property dug up in hunt for Jasmine

Police forensic experts are excavating a NSW property as they search for a woman missing since 2009. Source: AAP

POLICE forensic experts are using earth moving equipment to dig up a property in northern NSW as they search for a young woman who has been missing for four years.

Jasmine Morris, 24, was last seen outside a South Grafton supermarket at 3pm on October 6, 2009 and her family reported her missing on October 20.

On Tuesday forensic experts were working with an earth moving contractor to excavate parts of the property.

Ms Morris, also known as Jasmine Moore, was wearing a long black cotton skirt, purple top and thongs when she was last seen.

She is of Caucasian appearance, with an olive complexion, about 155cm tall, around 55kg, with shoulder length, black hair and brown eyes.

Police have renewed their calls for and information about her disappearance.

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Elders to cut workforce by 10 per cent

Struggling rural services company Elders will slash its workforce by 10% as part of $25m of cuts. Source: AAP

STRUGGLING rural services company Elders is set to axe about 150 jobs, or about 10 per cent of its workforce, as it re-organises and refinances its business and reduces its debt.

Elders chief executive Malcolm Jackman on Tuesday said the job losses would occur across all of the company's operations.

"It became pretty obvious in the first half of this year, with the very tough seasonal conditions that we operated under, that the cost structure in the business was not sustainable," Mr Jackman said.

"What we've done is reset the nature of the organisation, the management structure, the management style inside the organisation, so that we can deliver a sustainable profit through really tough seasons."

Elders is aiming to cut operating costs by more than $25 million, from April 2014.

A small number of rural and regional branch offices will be closed or consolidated into larger nearby branches.

Elders said it had agreed to terms with its financiers on renewing and extending its debt facilities to December 31, 2014.

Mr Jackman said the sales process for Elders' agricultural business was off the table now that refinancing was in place.

"We are now in the process of managing the business on a go-forward basis where it will be a listed agricultural pure play business," he said.

Elders in August sold its Futuris automotive interiors business, using the sales proceeds to cut its net debt to $272 million.

The group has almost completed the wind-down of its forestry assets and has agreed in principle with insurer QBE to reduce Elders' equity holding in the joint-venture Elders Insurance to 10 per cent, from 25 per cent.

Mr Jackman said the final exit from the forestry sector was a "zero sum" game that would not yield any extra cash for the company.

"The wind-up will be negative to neutral on cash - it's a small amount of money," he said.

He said QBE had asked that the financial outcome of Elders' reduced equity in the insurance business be kept confidential.

Elders also said it continued talking with parties that had expressed an interest in a recapitalisation of the company.

Mr Jackman did not yet have specific information on the size of a possible recapitalisation.

"We have different styles of parties who are looking at it from different angles," he said.

On the trading outlook, Elders said seasonal conditions in the sheep and wheat belts of southern Australia had improved throughout the winter and early spring.

Sheep and lamb prices had lifted, and sales of fertiliser and agricultural chemicals had improved.

Beef sales volumes in Asia, especially China, remained strong.

Elders said it expected to report an underlying net loss for 2012/13 of $32 million to $39 million.

Shares in Elders were 1.5 cents, or 15.79 per cent, higher at 11 cents at 1131 AEST.

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CSG company fined over death of NSW worker

A COAL seam gas mining company has been fined $120,000 over the death of a worker who was hit in the head by a pipeline.

Bruce Austin, 57, died after he was struck in the head by a pipeline during work at a coal seam gas mining site near Narrabri in northern NSW in August 2009.

Eastern Star Gas, which has since been taken over by mining giant Santos NSW, pleaded guilty to breaching occupational health and safety laws by failing to ensure workers were not exposed to risk while working on the site, which was being run by a subcontractor.

The Industrial Court of NSW heard Mr Austin was contracted to help try and pull a piece of pipeline out of the ground and that, shortly before he was struck in the head, he was directed to sit some distance away from the operation.

However, shortly after the chain that was pulling the pipe broke, Mr Austin was found unconscious on the ground.

He died later in hospital from massive head injuries.

In a judgment handed down last Friday, Justice Conrad Staff said it was "obvious and foreseeable that there was a risk of injury to any person at the site if struck by a recoiling pipeline".

"Although (Eastern Star Gas) had systems of work that were capable of ensuring safety, it failed to adopt its own procedures to check that there were safe work methods in place in respect of the activities being undertaken at the site," he said.

"It did not attend the site and it did not take the necessary steps to ensure that there was proper supervision."

He said "simple and effective measures" could have been taken to prevent the accident.

Mr Austin's widow, Ann Austin, described how her husband, a loving grandfather of eight, was "the glue that bound the family together".

She said Eastern Star Gas had behaved in a "cavalier" manner towards her and her family, and had never bothered to speak to them.

"The realisation to her and her family that occupational health and safety policies were not put in place was devastating," Justice Staff said.

Justice Staff noted that since Santos NSW had taken over Eastern Star Gas, they had put their own comprehensive health and safety policies in place.

"In my view, Santos' OHS policies are of some significance in determining the appropriate penalty and in assessing whether there is a likelihood that a similar incident would occur in the future," he said.

He fined the company $120,000.

The maximum penalty for such an offence is $550,000.

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Sydney dance teacher faces more charges

A SYDNEY dance teacher accused of child pornography and sex abuse offences has had 16 more charges laid against him.

Grant Davies, 39, ran a dance studio in Sydney's inner west with his sister, and trained performers for hit productions including Billy Elliot.

He was charged in May with a string of child sex and pornography offences, and has been in custody ever since.

Those charges related to students at the dance studio who were aged between nine and 14 at the time of the alleged offences, police have said previously.

In July, 36 new charges were filed against him and on Monday Burwood Local Court was told 16 fresh charges had been laid.

In the brief hearing, a lawyer for the crown said there was a "significant amount" of material in the 800-page evidence brief, including three volumes of text messages.

Davies, who appeared via audio visual link, was formally refused bail.

Wearing a plain green t-shirt and sporting shoulder-length blond hair, Davies showed little emotion during the mention.

He is due back before the same court on November 4.

Davies now faces a total of 63 charges.

The most recent charges include allegations of aggravated indecent assault, aggravated sexual assault and procuring a child for pornographic purposes, according to papers filed at court.

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PNG open to review of Manus deal

PNG Prime Minister Peter O'Neill says the Abbott government must respect the asylum-seeker deal. Source: AAP

PAPUA New Guinea Prime Minister Peter O'Neill says he expects a Tony Abbott-led government to respect the asylum-seeker processing arrangements made with former prime minister Kevin Rudd.

But Mr O'Neill says he is open to the scheme being reviewed.

"The resettlement program (asylum-seeker deal) and the infrastructure development program associated with this, negotiated and agreed to with the Rudd government, was done with the Australian government, not a political party or individual," Mr O'Neill told the Port Moresby-based The National newspaper.

"I would expect the incoming government to respect it.

"If there is a policy shift, or if the Australian government under Prime Minister Abbott wants this reviewed, we will welcome it."

The previous Rudd government was criticised for rushing the deal.

There are currently 680 single adult male asylum seekers being held at Lombrum naval base on Manus.

The processing scheme - which would see a series of camps built on Manus island - has caused divisions in the peaceful PNG province, with locals complaining they have been left out of the loop on building and procurement contracts.

Landowners last week blocked access to a dump site being used by the asylum-seeker facility inside Lombrum naval base, and to a gravel pit used by Australia.

Chey Scovell, chief executive of the PNG Manufacturers Council, said he expects the Abbott government to build on Labor's relationship with PNG.

"When (incoming foreign minister) Julie Bishop came up here as the shadow minister, she took the time to meet with a number of people here in business and gave strong assurances that she was going to pay attention to PNG," he told the Post Courier.

The Manufacturers Council has in recent weeks been critical of the deal after it was revealed Australia will only source 50 per cent of its labour force from PNG.

No such agreement exists for the procurement of building materials for the camps.

Local Manus MP and Vice-Minister for Trade Ron Knight, who had all but withdrawn support for the deal following tensions on the ground, is optimistic about the new Australian government.

"Now I think we have a bit more leeway for them to come to us and see what we can achieve out of this," he said.

"I hope Scott Morrison becomes immigration minister.

"We've talked about this before and if he gets that portfolio it will be really good to be able to talk with him."

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Joyce behind Truss as Nationals leader

Nationals MP Barnaby Joyce insists Warren Truss (Pic) can stay leader of his party. Source: AAP

THE Nationals' Barnaby Joyce has successfully made the switch to parliament's lower house but says Warren Truss will remain party leader as long as he wants to.

The high-profile former senator will return to Canberra after winning the House of Representatives seat of New England in NSW.

Mr Joyce has made no secret of his ambition to one day lead the party but says he's behind Mr Truss' leadership.

"He's supported by me, he's supported by everybody," Mr Joyce told ABC radio on Sunday.

"All the rest is all hypotheticals way, way, way, way, way down the track.

"And at that point in time I have no doubt that a whole range of people would want to be leader."

He says he has told Mr Truss that he can stay leader "for as long as he wants".

"It is absolutely essential, not for the National party but for our nation, that the experience and the capacity that Warren has is in the cabinet room," Mr Joyce said.

"He's calm and considered - that is what this nation is going to need."

Meanwhile, Mr Joyce said mining magnate Clive Palmer, who looks set to claim the Sunshine Coast seat of Fairfax, had proven himself to be "tactically extremely astute".

But he's not convinced that Mr Palmer will make a good local member.

"I just can't see Clive turning up to open the school fete and to be worrying about the issues that are at the realm of a local member," Mr Joyce said.

"He may or he may not get up at Fairfax but when he gets up, I don't know whether he's going to enjoy the job he gets."

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Jackman, Kidman plan a rest after festival

NICOLE Kidman is swapping the red carpet for a tent while Hugh Jackman is going to be a stay-at-home dad.

After a hectic year and the past few days attending the world premieres for their new movies at the Toronto Film Festival, the Australian A-Listers have declared it is family time.

Kidman is going camping in Nashville while Jackman will be spending the rest of the year at his Manhattan base doing dad duty.

"I'm getting on a plane to go back and go camping," Kidman, at the end of a day of interviews in Toronto to promote her new drama The Railway Man, told reporters on Saturday.

Kidman said her daughters, five-year-old Sunday and two-year-old Faith, wanted to go camping, so she and Grammy Award-winning husband Keith Urban will grant their wish.

Although, for the first expedition they won't be roughing it.

"It's nice camping," Kidman laughed.

"We are in a tent, but it's on a golf course.

"They are two and five so we are just starting off gently, but they did pitch the tent the other night in the backyard just to get used to pitching it."

Kidman might be a fashion icon and queen of the red carpet, but she confided she loves to rough it in the bush.

"I love that kind of camping," she said

"I like being out in the wilderness.

"I like being away, so this is one step.

"I would never go camping in a trailer park. I like to actually go into the wild or the beach or something."

Jackman, at Toronto to promote his thriller Prisoners, has made four films back-to-back with three of the movies taking him away from home. But the rest of the year will be devoted to his wife, Deborra-Lee Furness, 13-year-old son Oscar, and eight-year-old daughter Ava.

"I'm taking a break from between now and Christmas," Jackman said.

His job will be to make lunches, drop the kids off at school, and cook.

"So far I've been off a few weeks and I've played a lot of Monopoly," he said.

But don't expect gym junkie Jackman to end up with a beer gut by Christmas.

He plans to go to the gym three times a week.

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Beattie backs Shorten to lead Labor

Peter Beattie says Bill Shorten (Pic) is the right man to help Labor rebuild. Source: AAP

FAILED federal Labor candidate Peter Beattie doesn't believe Kevin Rudd's presence on the backbench will hamper the party's renewal attempts.

Mr Rudd stepped down as Labor leader after Saturday night's election defeat but will remain in parliament as the member for Griffith.

Former Queensland premier Mr Beattie has heartily endorsed Bill Shorten as the right man to help rebuild Labor.

He says the past six years of division and uncertainty played a crucial role in the election defeat and the whole party needs to get behind whoever is chosen to lead it.

But he doesn't feel Mr Rudd's presence on the backbench will undermine any new leader's reign.

"Kevin's leadership ambitions are well and truly over and he's said that himself," Mr Beattie told reporters on Sunday.

"We now move on and I would expect everyone to support the new leader."

Mr Beattie also threw his support behind the newly elected member for Rankin Jim Chalmers, claiming his victory was one of the brightest moments for the party in Queensland.

"Jim Chalmers in Rankin is one of our future leaders," Mr Beattie said.

"He's someone with enormous ability, a fantastic individual.

"The really most important thing that came out of the election in Queensland yesterday was the election of Jim Chalmers."

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