Donation law concerns cost me job: Davis

CHRIS Davis says he was sacked as Queensland's assistant health minister partly because he raised concerns about changes to political donation laws.

Premier Campbell Newman sacked Dr Davis this week, saying his decision to speak out against some aspects of the government's agenda had breached the Westminster principle of cabinet solidarity.

Dr Davis had publicly raised concerns about reforms to the Crime and Misconduct Commission and new work contracts for doctors.

On Friday, he told the ABC he believed there was another factor in his dismissal.

He said he had raised with the premier his concerns about the government's move to ease restrictions on political donations, and he believed that played a part in the decision to dismiss him.

He cited revelations at the NSW corruption inquiry as proof powerful interest are involved in politics and it would be naive to think similar forces weren't at play in Queensland.

"You only need to look across the border to NSW to actually see under current arrangements how there are a number of very powerful interests in any political system," he said.

"We have at the moment on the table a great relaxation of caps and donations and so on, just at the same time the new premier of NSW, Mike Baird is actually saying that he needs to nail shut the back door to government because it is actually causing so much damage.

"You don't make an investment in business unless you make a return on it. You'd be naive to think that the political gene pool changed when you crossed the border from NSW to Queensland."

Dr Davis said he was not offered the chance to offer his resignation when he met with the premier this week, and instead was sacked.

He said he believed there'd been a number of complaints made against him, and the premier felt compelled to send a message.

"I think it was a signal on a number of fronts. I think it was not just a technicality of the cabinet solidarity message, I think I had trod on some very powerful toes," Dr Davis said.

"It doesn't sting me so much but if you look at social media there has been a lot of concern about what sort of message it sends in terms of our style of government in Queensland, our tolerance, I guess, of democracy."

Dr Davis did not say if he would contest the next election as a member of the Liberal National Party, saying his pre-selection was a matter for the party.

A spokesman for the premier told the ABC Dr Davis never raised any concerns about electoral donation laws with either himself or Attorney-General Jarrod Bleijie and any claim that he did was completely wrong.

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Tinkler faces ICAC over pollie donations

Nathan Tinkler tells ICAC, he gives to political parties because he's a great guy. Source: AAP

NATHAN Tinkler has told NSW's donation rort inquiry he gives to political parties because he's "such a great guy", not because he thinks his largesse will buy favours.

The Independent Commission Against Corruption (ICAC) is probing more than $400,000 in payments to alleged NSW Liberal slush fund EightByFive, including $66,000 by the former mining mogul's racehorse business, Patinack Farm.

Counsel assisting the inquiry Geoffrey Watson SC alleges the money was funnelled through Patinack from another Tinkler business, development firm Buildev, and that Mr Tinkler was trying to win support for a lucrative coal loader on the Newcastle foreshore.

Mr Tinkler told the ICAC on Friday he "didn't know about Eighty By Five" until the company hit the headlines, courtesy of the inquiry that has now toppled four Liberal MPs and two NSW ministers.

Nor did he accept suggestions he arranged for two employees and their partners to donate $5000 apiece to the Nationals to sidestep laws that cap individuals' electoral donations.

But he has admitted to a $45,000 personal donation to the Nationals and handing over $50,000 to a Newcastle group manoeuvring to oust then-ALP MP Jodi McKay at the 2011 NSW election.

Mr Tinkler also signed off on $53,000 in payments to another alleged Liberal front group, the Canberra-based Free Enterprise Foundation.

"You share it around," he said.

Mr Watson didn't buy it, asking: "Why would you give that away if you weren't getting something in return for it?"

"Because I'm such a great guy," the witness quipped.

"I've never had a political favour in my life."

He also said he was "quite annoyed" when he learned the financially troubled Patinack had been spending thousands each month on an EightByFive retainer, ostensibly for marketing services and political advice.

But Mr Watson said it was a crooked deal designed to subvert NSW electoral funding laws, which ban developers making political donations, and signed off by Mr Tinkler himself.

"You knew, Mr Tinkler, didn't you, that Buildev was paying money into a campaign associated with Liberal Party politicians and funding it under a subterfuge," he said.

"No I didn't," Mr Tinkler replied.

Emails obtained by ICAC show Buildev executive Darren Williams was seeking advice in 2010 on "which entity" to give Mike Gallacher - the former NSW police minister allegedly in on the scam - and was told by his colleague David Sharpe Mr Tinkler should have the final say.

Phone records show Mr Williams rang Mr Tinkler four minutes later.

Asked on Friday what they might have discussed, Mr Tinkler joked: "Probably footy scores."

During two hotly anticipated hours in the witness box, Mr Tinkler was both feisty and playful - though at lunchtime was heard to remark: "This is some of the most boring s*** I've ever seen."

However, he was emphatic when questioned over claims he offered former Newcastle MP Ms McKay a bribe to win her support for the coal loader - and that when she turned him down, he funded a leaflet campaign to "destroy" her.

"Definitely not," he said.

"I never took this to her, I never asked for her support."

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Truck driver's arrest sparks SA drug bust

THE arrest of a truck driver in NSW has led to a drug bust in South Australia.

Police on Wednesday stopped a truck on the Sturt Highway, near Gol Gol, and found six bags of cannabis weighing about 160 grams, leading them to charge the 42-year-old driver.

Information about the arrest was shared with South Australia Police (SAPOL).

Members of SAPOL's Heavy Vehicle Enforcement Section on Friday searched the truck driver's home in Albert Park, SA, and allegedly located about two kilograms of dried cannabis, an amount of cash and a number of firearms.

The man was rearrested and charged with trafficking cannabis and firearms offences.

NSW Police Traffic and Highway Patrol Operations Commander, Superintendent Stuart Smith, said officers will continue to target the heavy vehicle industry to curb drivers and operators who break the law.

" ... whether that's through unsafe driving practices or criminal activities such as transporting drugs across borders," Supt Smith said in a statement.

The man was granted conditional bail to appear in Wentworth Local Court on July 8.

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Trial for academic over indecency claims

Criminologist Paul Wilson is ordered to stand trial for allegations he indecently treated two girls. Source: AAP

QUEENSLAND criminologist Paul Wilson has been ordered to stand trial over allegations he indecently treated two girls in the 1970s.

The former head of criminology at the Gold Coast's Bond University was on Friday committed to stand trial on six charges of indecent treatment of girls under 17.

After three days of witness testimony Brisbane Magistrate John Costello ruled there was enough evidence to commit the 73-year-old to trial.

Wilson pleaded not guilty to the charges.

The trial is expected to take place in the District Court in Brisbane at a date to be set.

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Abbott hits back over state budget riot

Prime Minister Tony Abbott is confident he can get controversial budget measures through parliament. Source: AAP

PRIME Minister Tony Abbott has told the states they must accept there are "swings and roundabouts" when it comes to federal money.

Angry state and territory leaders have organised a meeting for this Sunday in Sydney to discuss the federal budget's $80 billion cut to school and hospitals funding.

The meeting comes as Labor and the Greens are poised to block many of the federal budget measures, with the government left to horse-trade with new Senate cross benchers after July 1 to pass a new Medicare co-payment and pension and welfare changes.

The next state leader to face an election, Victorian Premier Denis Napthine, said he had a long and strong conversation with Mr Abbott on Thursday about the budget.

"We have from between 2014 and 2017 to absolutely shake the federal government from their top to their bottom so they understand their responsibility to meet their share of public hospital payments," the Liberal premier said.

Mr Abbott told parliament he had made it clear to all the states and territories that in 2017/18 there would be a "lower rate of increase" in funding.

"Not a cut," he said.

Arguing that road funding was boosted in the budget, Mr Abbott said: "As far as the states are concerned there are swings and roundabouts."

Treasurer Joe Hockey backed up the prime minister, saying the states would still receive $400 billion in the six years from 2017 for schools and hospitals once agreements signed with the previous Labor government expire.

"It is not cost-shifting because we don't run the schools or hospitals," he said.

Opposition Leader Bill Shorten accused the prime minister of "deceit", having promised before the election no cuts to health or schools, no new or raised taxes and no changes to pensions.

He said modelling from NATSEM (National Centre for Social and Economic Modelling) showed that some families would lose $6000 a year by 2016 because of budget measures.

Labor would fight for those families.

"If you want an election try us ... bring it on," he said in his budget reply.

Mr Abbott and Mr Hockey admitted getting the budget through the Senate could take some horse-trading, but said Labor should pass the legislation and take responsibility for leaving the books in a mess.

"I've got some advice for Tony Abbott ... why don't you horse-trade away your paid parental leave scheme and leave the pensioners alone," Mr Shorten said.

Labor has yet to decide whether to support a temporary income tax rise for people earning more than $180,000 a year, but it will oppose the Medicare co-payment, pension changes and the fuel tax lift.

Mr Hockey said the $7 Medicare co-payment was only about the cost of two "middies" of beer and much less than the $22 cost of a packet of cigarettes.

The Greens will support the fuel tax rise.

The treasurer rejected a challenge from shadow treasurer Chris Bowen to debate the budget at the National Press Club next week.

Delivering his budget-in-reply speech to parliament on Thursday, Mr Shorten said Labor would oppose deregulated university fees, the Medicare co-payment, the fuel tax rise and hits to pensions and the dole.

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Borders commander warns vigilance is vital

THE army general charged with preventing asylum seeker boats from reaching Australia says ongoing vigilance is vital.

There have been no successful people smuggling ventures to Australia since late December, but Lieutenant General Angus Campbell says people smugglers are opportunistic, organised criminals looking to exploit any vulnerabilities.

"To modify a well-known and very apt phrase - the price of border security is eternal vigilance," the Operation Sovereign Borders commander told an Australian Strategic Policy Institute dinner in Canberra on Thursday.

Threats to Australia's border security remain as asylum seekers bide their time in Indonesia, holding out for policy or operation changes, he said.

"There are too many prospective travellers susceptible to believing that Nauru is a town in Australia."

His team is proud to be preventing asylum seekers from drowning during dangerous voyages from Indonesia to Australia.

And Lieutenant General Campbell says safe procedures are in place, consistent with international obligations and domestic law, in relation to the policy of turning back boats.

He expressed doubt about whether authorities could have reduced arrivals without it.

The willingness of Nauru and Papua New Guinea to accept asylum seekers might not endure if the flow of people continued, he said.

Tuesday's budget allocated funds to establish a new super frontline agency, Border Force Australia, from July 2015, which the government says will absorb Operation Sovereign Borders.

The new agency will replace Customs and take on some functions of the Immigration Department.

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Uncensored Rudd reveals batts flaws

Kevin Rudd move to expose cabinet discussions about insulation scheme had a short-lived opposition. Source: AAP

OPPOSITION to Kevin Rudd's plan to reveal the innermost secrets of the federal government lasted for a little less than 16 hours.

The former prime minister's 31-page statement to the royal commission into the 2009 home insulation program was initially heavily blacked out or "redacted" at the insistence of government lawyers intent on protecting cabinet confidentiality.

Mr Rudd's lawyer had insisted his client could not tell the truth about the disastrous program that claimed the lives of four young workers if he was not permitted to tell his story in full.

Resistance was strong on Wednesday afternoon but evaporated on Thursday morning, when government lawyer Tom Howe QC said the Commonwealth supported "public ventilation" of everything Mr Rudd wanted to say.

What emerged from the document was Mr Rudd's portrait of the prime minister and his ministers as entirely reliant on the information and advice placed before them by the public service - the people he described at the commission as the "wicketkeepers" of his home insulation scheme.

Starting with the reason for implementing the insulation scheme, Mr Rudd reveals that an all-weekend sitting of senior cabinet ministers - Julia Gillard, Wayne Swan, Lindsay Tanner and himself - in October 2008 was warned that Australia faced recession and a nine per cent unemployment rate if nothing was done to combat the unfolding global financial crisis.

One response was the $2.8 billion home insulation scheme, devised as a make-work scheme to boost the economy.

Much of what was initially redacted from Mr Rudd's statement is simply anything mentioning cabinet processes, however mundane, but some reveal that even after people started dying, no alarm was raised about the program.

Mr Rudd described a briefing system used by the Department of Prime Minister and Cabinet to warn cabinet about "any programs going off the rails".

The reports were colour-coded: green for "on track", amber for "maintaining close watch" and red for "in difficulty".

From its July 2009 inception to until February 2010 when its immediate closure was urged, the program was never rated anything other than green for "on track".

Among other details is Mr Rudd's recollection of a January 28, 2009, cabinet meeting that considered the rollout of the Home Insulation Program.

Issues discussed concerned timelines and costs, Mr Rudd says, but workplace safety standards never came up.

The statement also shows a public service task force was set up four days after the February 4, 2010, death of Mitchell Sweeney, who was the last worker to die during the life of the scheme.

On February 17, the taskforce advised Mr Rudd's cabinet committee of senior ministers of "significant program design risks, notably safety risks ... and the need to exit the overall program".

The same day the committee accepted the taskforce's recommendation to terminate the program.

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Labor pounce on second staffer conflict

Federal Minister Nigel Scullion is under fire over a staff member cited for conflict of interest. Source: AAP

LABOR has vowed to continue probing a second Abbott government minister over conflict of interest allegations.

William "Smiley" Johnstone resigned as an adviser for Indigenous Affairs Minister Nigel Scullion after it was revealed he was also chief executive and majority shareholder of the Indigenous Development Corporation.

Senator Scullion has defended Mr Johnstone's employment, saying his sole role of devising the school attendance strategy meant his private activities did not create a conflict of interest.

But Opposition Senate Leader Penny Wong says Mr Johnstone's employment showed an "arrogant disregard" for the standards for ministerial staff.

Senator Scullion told the Senate on Thursday there had been "a couple of items that required follow up" in Mr Johnstone's private interests disclosure, filed at the time of his employment.

Five months later, that process was still under way when a media inquiry forced Senator Scullion's office to address the potential conflicts and ask Mr Johnstone to "amend some of his personal affairs".

Mr Johnstone never intended to stay on fulltime and chose to resign, Senator Scullion said.

Senator Wong promised to explore that in more detail.

"The Australian people are entitled to know why not one but two ministers in this chamber happen to have staff who have interest in the portfolio that they administer."

In February, Assistant Health Minister Fiona Nash's staffer Alastair Furnival resigned over conflict of interest allegations.

Mr Furnival had a shareholding in his wife's public relations company, which has links to the junk food industry.

Unlike the case of Mr Furnival, who was accused of ordering the removal of a Health Department healthy food-rating website, there are no allegations Mr Johnstone made calls that affected his private interests.

The Abbott government's revised guidelines for ministerial staffers require divestment from private companies with a direct interest in their minister's portfolio.

The standards also forbid directorship of any company without written agreement of their respective minister and of the Special Minister of State.

Senator Wong asked Special Minister of State Michael Ronaldson if he had provided a written agreement regarding Mr Johnstone's employment on Thursday, which he took on notice.

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NSW police officer charged with assault

A NSW police officer has been charged with assaulting a colleague during a domestic dispute.

The female senior constable, attached to a command in the Western Region, was summonsed to court after allegedly assaulting a police another officer during a domestic dispute.

Police say the charges relate to an incident that occurred on May 3, while the officer was off-duty.

She will appear at Wentworth Local Court on July 7.

The officer has been suspended from duty with pay.

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Sony sinks to $A1.46bn quarterly loss

Struggling electronics giant Sony says it lost 128.4 billion yen in the fiscal year to March. Source: AAP

SONY Corp sank to a 138 billion yen ($A1.46 billion) quarterly loss because of expenses related to exiting the personal computer business.

The Tokyo-based maker of the PlayStation 4 game machine, Bravia TV and Walkman digital player also reported on Wednesday a loss of 128.4 billion yen for the fiscal year through March 2014.

It had recorded a 41.5 billion yen profit the previous fiscal year.

For January-March last year, Sony had reported a 93 billion yen profit.

Earlier this month, Sony acknowledged it would end up with more red ink for the fiscal year than it had earlier forecast because of costs related to its Vaio PC operations and a drop in the value of its overseas disc manufacturing business.

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Gillard's book will be out in October

Former PM Julia Gillard says writing her memoir has been an exhilarating and cathartic experience. Source: AAP

FORMER prime minister Julia Gillard has worked through a special kind of therapy after losing her job: writing a book.

My Story will be published on October 1 by Random House Australia.

Ms Gillard said writing the memoir had been exhilarating and cathartic.

"Sometimes the words flowed quickly and easily," she said on Wednesday.

"On other occasions, days of reflection were needed to work through memories of difficult times and the resilience required during them."

She promises the book will tell the truth about what it's like to be prime minister, what happened to her and why it matters for Australia.

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Italy diplomat denies abuse in Philippines

AN Italian diplomat facing human trafficking and child abuse allegations in the Philippines has denied any wrongdoing.

Daniele Bosio, who has been suspended as Italy's ambassador to Turkmenistan, submitted an affidavit on Wednesday denying the criminal complaints and spoke briefly to reporters for the first time since his arrest on April 5 while vacationing in the Philippines.

Bosio has been detained in a municipal jail in Laguna province south of Manila since being arrested in the company of three boys aged 9-12 at a local resort.

Tears came to Bosio's eyes when more than a dozen children from a Christian school in Manila arrived to show support for him.

He has been giving financial support to the school for several years.

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Missing Queensland girl found safe

Police say 3 men and a woman who abducted Queensland toddler Bella Goulding are known to her family. Source: AAP

A TWO-YEAR-OLD girl abducted from her father's southeast Queensland home has been found safe and well in a Brisbane suburb.

Bella Rose Goulding was located at Archerfield, in the city's south, on Sunday night and police say they're questioning a man and a woman.

"Investigations are continuing," the Queensland police service said in a statement.

"A man and a woman are currently assisting police with inquiries."

Bella was taken from a house at Willowbank, near Ipswich, on Saturday night and police say her abductors are known to the family.

On Sunday evening, police released the names and images of Lisa Maree Carroll, 21, and Michael Kenneth Winning, 42, saying they say may be able to assist their investigation but refusing to disclose details of their relationship to Bella.

The 8pm abduction occurred on Sancroft Street, which is near a park and the Cunningham Highway.

The girl's father Steven declined to speak publicly on Sunday.

Witnesses saw the abductors in a white Holden Commodore and a silver Mitsubishi sedan.

Further information is being sought from Queensland police.

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Militants kidnap, kill 20 Iraqi soldiers

A series of bombings in Iraq has killed 19 people, authorities say. Source: AAP

MILITANTS who attacked a military base in north Iraq kidnapping 20 soldiers later shot them dead.

The soldiers were abducted by a large group of militants in several vehicles from a small base in the Ain al-Jahash south of Mosul, and their bodies were found in the area on Saturday night, sources said.

But accounts of when the attack took place varied, with a police major and morgue employee putting it on Saturday night, while an army major general said it had taken place earlier in the week.

The police major said the soldiers had been shot in various parts of their bodies and that their hands had not been bound.

The attack comes after militants killed 12 soldiers and wounded 15 in an April 17 assault on a military base west of Mosul, the capital of Nineveh province.

The province is one of the most consistently violent areas in Iraq.

Militants opposed to the Iraqi government frequently target members of the security forces, but it is rare for such a large number of soldiers to be kidnapped at once, especially from a military position.

The killings come as Iraq suffers a protracted surge in bloodshed, the worst to hit the country since the brutal sectarian fighting that peaked in 2006-2007 and killed tens of thousands of people.

The government has repeatedly blamed the unrest on external factors such as the civil war in neighbouring Syria.

But analysts and diplomats say widespread anger in the minority Sunni Arab community over alleged mistreatment at the hands of the Shiite-led authorities has also played a major role in the violence.

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Puffing Hockey silent on cigar tax

Treasurer Joe Hockey has avoided a question about a tobacco tax after being caught having a cigar. Source: AAP

JOE Hockey probably hoped he had got away without being questioned about having that sly cigar with his finance minister.

But in any interview there is always that last question.

Twitter has been abuzz since Friday ridiculing photographs of the treasurer and Senator Mathias Cormann having a cigar after putting together their first budget.

"There's nothing like the satisfying flavour of other people's dreams ... going up in smoke!" was one tweet.

Having a puff is not illegal, but having a celebratory drag on a fat cigar when you are about to impose the budget with the toughest impact on Australians in almost two decades isn't a particularly good look.

The latest ribbing came in a more traditional form.

In an interview on Channel Nine on Sunday, political stalwart Laurie Oakes just had to ask one last question after a 15-minute grilling that covered broken promises, infrastructure, rising petrol prices and a freeze on politicians pay.

"For some reason there has been speculation on Twitter about the impact for the budget from the price of cigars. Will tobacco excise go up?" Mr Oakes teased.

Mr Hockey declined to comment on that.

"But I do note that I think in the first budget in 1901 they had taxes on opium, so I can assure you that's certainly not in the budget. There is certainly nothing to tax there," he said.

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Dozens hurt in China protest

At least 29 police have been injured in China during a protest over a proposed waste incinerator. Source: AAP

A PROTEST in eastern China over a plan to build a waste incinerator has turned violent with state media reporting at least 10 demonstrators and 29 police injured in clashes.

State-run Xinhua News Agency says 30 vehicles were overturned as protesters on Saturday set two police cars on fire and blocked a highway linking Hanzhou with another city.

One protester and a policeman have been reported seriously injured.

An official in the city's Yuhan district government confirmed the incident on Sunday but would not offer details.

An online statement posted by the district government says construction on the incinerator would not begin until the project had won public support.

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