Qld laughs off claims of GST windfall

THE Queensland government has laughed off claims by Canberra that the state has scored a "windfall" of $700 million in the annual carve-up of GST revenue.

Treasurer Tim Nicholls says figures released on Friday were already in the Queensland budget and are "not new news or a windfall".

"No new funds are available and in fact the Federal Government is clawing back health payments to the tune of $103 million," Mr Nicholls said in a statement.

Senior government minister Craig Emerson said the independent Commonwealth Grants Commission's latest assessment was a "great boost" to Queensland.

The commission has proposed Western Australia's GST share be cut by more than half a billion dollars because of its booming mining sector.

Queensland, it said, should get $700 million more because of the impact of lower coal prices and a sluggish property market on its economy.

Mr Emerson says Premier Campbell Newman has run out of excuses for his savage cuts to jobs and services.

"Stop sacking nurses and other frontline service providers," Dr Emerson told reporters in Canberra.

Treasurer Wayne Swan said Mr Newman should put the money back into frontline services.

"This massive funding injection will be a welcome boost to Queensland, particularly after the vicious cuts undertaken by the Newman LNP Government over the last 6 months," he said.

"In light of this windfall, the Federal Government is calling on the Newman LNP Government to immediately reinstate the frontline health and education services they have so savagely cut."

But Mr Nicholls shrugged off both comments as utterly ridiculous.

"The previous Labor Government left Queensland's finances in an unsustainable position, with debt heading towards $85 billion and a deficit of $5.5 billion," he said.

"While we know Queensland's share of GST will rise from 19.9 per cent to 21.5 per cent, we still don't know how much we will actually receive because Federal Treasurer Wayne Swan is refusing to reveal the total size of the GST pool.

"Their ineptitude is now impeding the States' ability to plan their budgets."

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Pakistan man arrested for Kashmir attack

A PAKISTANI and a local man have been arrested in connection with a Kashmir attack in which men pretending to be cricketers killed five paramilitary personnel.

The militant, identified as Abu Talha, is a resident of Pakistan's Multan district in Punjab. He was arrested on Thursday night in the old quarter of the state capital, Srinagar, police said on Friday.

A Kashmiri, Bashir Ahmed, was also arrested on Thursday in the border town of Uri on charges of aiding the perpetrators of Wednesday's attack in Srinagar.

Two militants were shot dead in the attack, the first in the area for three years.

On Thursday, federal Home Minister Sushil Kumar Shinde told Parliament the two dead militants appeared to be of Pakistani origin and diaries recovered from them contained Pakistani phone numbers.

Pakistan has denied any link to the attack. Hizbul Mujahideen, an Islamist separatist group based in Pakistan, had claimed responsibility.

More than 45,000 people have been killed in Kashmir, a region claimed by both India and Pakistan, since the late 1980s.

New Delhi has accused Islamabad of aiding militants, a charge Pakistan has denied.

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Japan set to accept child abduction treaty

JAPAN is moving closer to accepting a long-delayed treaty on child abductions.

The cabinet on Friday gave approval to the 1980 Hague Convention, which requires children be returned to their usual country of residence if they are brought to the country during the collapse of an international marriage.

Japan is the only member of the Group of Eight major industrialised nations that has not joined the convention.

Hundreds of non-Japanese parents, mostly men, have been left without recourse after their estranged partners took their children back to Japan.

Unlike Western nations, Japan does not recognise joint custody and divorce courts usually award custody to mothers.

Chief Cabinet Secretary Yoshihide Suga said following cabinet approval, the government would swiftly submit the necessary legislation to parliament.

"It is important for our country to join the Hague Convention that sets international rules on dealing with illegal kidnapping of children, now that the numbers of international marriages and international divorces have increased," he said.

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Abbott vows to 'engage' with Aborigines

Tony Abbott says the state of indigenous Australians constitutes a "stain on our soul". Source: AAP

TONY Abbott says a coalition government would have a "new engagement" with indigenous affairs, including constitutional recognition of Aboriginal people as the first Australians.

Speaking in Sydney, Mr Abbott said indigenous affairs will be a priority and focus for a coalition government if it's elected to govern at September's federal election.

"I want a new engagement with Aboriginal people to be one of the hallmarks of an incoming coalition government - and this will start from day one," he told a Sydney Institute function.

Mr Abbott said in the first 12 months of taking office the coalition would seek bipartisan support to amend the constitution to acknowledge indigenous Australians.

"An acknowledgment of Aboriginal people as the first Australians would complete our constitution rather than change it," he told the audience, which included NSW Premier Barry O'Farrell and indigenous leader Warren Mundine.

Mr Abbott said a constitutional amendment meant people would know that Aboriginal people "will never be regarded as just a historical footnote to modern Australia".

"Done well, such an amendment could be a unifying and liberating moment," he said.

He also said a coalition government would handle indigenous affairs within the Department of Prime Minister and Cabinet.

"This means that along with Nigel Scullion as minister, there will be, in effect, a prime minister for Aboriginal affairs," Mr Abbott said.

He committed to address "deep disadvantage" in indigenous Australia by visiting remote Aboriginal communities each year, as well as by getting doctors and teachers to take longer postings in communities.

A coalition government would also expand an indigenous job program to fund job-training trials developed by Andrew Forrest and Warren Mundine, he said.

Mr Abbott promised there were "better days to come" for indigenous affairs.

"Should the coalition win the election, Aboriginal people will be at the heart of a new government, in word and in deed," Mr Abbott said.

Earlier on Friday, Mr Abbott adopted the words of former Labor prime minister Paul Keating, saying the state of indigenous Australians constitutes a "stain on our soul".

"We certainly have to do it better in the future than we have done it in the past," he told ABC radio.

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Most Asian markets higher, yen down

MOST Asian markets have closed higher and the US dollar has climbed against the yen as Japan's central bank nominees appear set for approval by Parliament.

Traders seemed broadly unimpressed by another record for the Dow on Wall Street that was fuelled by upbeat economic data, while better-than-expected Australian jobs numbers on Thursday were not enough to keep Sydney shares positive.

Tokyo rose 1.16 per cent, adding 141.53 points to hit a four-and-a-half year high of 12,381.19, while Seoul gained 0.12 per cent, or 2.40 points, to 2,002.13.

However, Sydney lost 1.18 per cent, or 60.2 points, to end at 5,032.2.

Hong Kong and Shanghai both closed 0.28 per cent higher.

The Hang Seng Index added 62.53 points to 22,619.18. The Shanghai Composite Index added 6.31 points to 2,270.28.

Regional markets are experiencing a correction following recent gains that have been fuelled by growing confidence in the global economy.

However, the morning's losses were reversed in some markets thanks to late bargain-buying.

Investors have been spooked by a string of figures out of China suggesting the pick-up after last year's growth slowdown may not be as strong as first thought.

On Wall Street the Dow edged up 0.04 per cent in an ninth straight day of gains, its longest winning streak for 16 years.

US traders took heart from a report showing a stronger-than-expected rise of 1.1 per cent in retail sales in February from January, though that was partly due to higher petrol prices.

The data lifted the US dollar in New York, where it finished at Y96.14 on Wednesday. The greenback sank to as low as Y95.68 in early Tokyo trade but rebounded in the afternoon to Y96.37 in the afternoon.

The US unit got a lift in later trade after the men tapped by Tokyo to run the central bank passed their first vote in parliament.

Governor nominee Haruhiko Kuroda and his proposed deputies Kikuo Iwata and Hiroshi Nakaso are strong advocates of the aggressive monetary easing that has seen the yen weaken in recent months. They are expected to pass an upper house vote on Friday.

The euro bought $US1.2951 and Y124.80 against $US1.2956 and Y124.56.

In Sydney, shares dipped after a strong set of jobs numbers that, despite being positive, analysts said could dampen any new measures to boost the economy.

The Australian Bureau of Statistics said the seasonally adjusted unemployment rate held at 5.4 per cent last month, defying most forecasts of a rise to 5.5 per cent, while 71,500 jobs were created, much higher than the 10,000 forecast.

Macquarie Bank senior economist Brian Redican said the numbers were "extraordinary", adding: "With that kind of employment growth there is no rationale for cutting rates."

Oil prices eased, with New York's main contract, light sweet crude for delivery in April, rising 35 cents to $US92.87 a barrel and Brent North Sea crude for April delivery shedding 15 cents to $US108.37.

Gold was at $US1,588.44 an ounce at 0810 GMT (1910 AEDT) compared with $US1,592.78 late on Wednesday.

In other markets:

- Wellington rose 0.92 per cent, or 39.95 points, to 4,381.10.

Fisher & Paykel Healthcare was 3.4 per cent higher at NZ$2.71, while Fletcher Building added 2.4 per cent to NZ$9.15.

- Manila closed 1.21 per cent lower, shedding 81.85 points to 6,694.71.

Ayala Corp. fell 1.61 per cent to 550 pesos, SM Investments dropped 2.09 per cent to 1,075 pesos and Philippine Long Distance Telephone was off 3.64 per cent at 2,860 pesos.

- Taipei fell 0.55 per cent, or 43.75 points, to 7,951.76.

Leading integrated circuit chip design house MediaTek shed 2.7 per cent to Tw$343.0 while Taiwan Semiconductor Manufacturing Co was 0.48 per cent lower at Tw$104.0.

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Japan lower house endorses Kuroda for bank

The lower house of Japan's parliament has endorsed Haruhiko Kuroda to become central bank governor. Source: AAP

THE lower house of Japan's parliament has endorsed Haruhiko Kuroda, a finance ministry veteran and president of the Asian Development Bank, to become central bank governor.

Kuroda, 68, has vowed to "do whatever it takes" to achieve a two per cent inflation target and end deflation.

The ruling Liberal Democrats have already won support for Kuroda from the main opposition party, which controls the upper house. MPs there are due to approve Kuroda's appointment on Friday.

Technically, however, Thursday's vote allows Kuroda to only stand in for current Bank of Japan governor Masaaki Shirakawa after he steps down on March 19. Another vote is required to make his appointment permanent.

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Nepal chief justice sworn in as interim PM

Nepal has sworn in Chief Justice Khilraj Regmi to head an interim government until the elections. Source: AAP

NEPAL'S chief justice has been sworn in as head of an interim government tasked with steering the country towards elections after a cross-party deal broke a 10-month deadlock.

The leaders of four major parties reached agreement late on Wednesday to appoint Khilraj Regmi to lead an interim administration to oversee what would be the second national polls since the end of a civil war in 2006.

The election in theory should be held by June 21, but analysts are sceptical the vote will go ahead within the scheduled timeframe.

A legal challenge to Regmi's appointment was launched soon after his appointment on Thursday, and a breakaway Maoist faction has called for a strike to protest against the agreement.

Regmi, whose official title is chairman of the interim election council of ministers, will hold several ministerial portfolios.

Nepalese politics has operated in a legislative vacuum since May when the parliament, which had doubled as a constitution-drafting body, was dissolved.

Political infighting, which included a split in the ruling Maoist party last year, has confounded efforts to implement a peace plan meant to rebuild the country after a 10-year civil war.

The deal has settled some of the most contentious issues, including the make-up of a truth and reconciliation commission and how to integrate former Maoist fighters in the army.

But while all parties say they want the elections to take place in June, there is already talk they could be pushed back.

"If things get out of control, we will defer the elections until November," Ram Chandra Paudel, a leader of the main opposition Nepali Congress, told reporters after the deal.

A challenge to the legality of Regmi's appointment was scheduled to begin before a special bench in the Supreme Court on Thursday.

Some of the strongest opposition to the agreement has come from a breakaway Maoist faction, some of whose supporters clashed with police in Kathmandu.

Dev Gurung, a leader of the faction, announced a five-hour protest strike.

"The leaders of four parties struck a deal in the middle of the night. It's fascist, undemocratic, and anti-national so we will protest it," said Gurung.

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Woman fights bus firm on wheelchair access

A woman has won a legal bid in the Federal Court against an interstate bus company. Source: AAP

A WOMAN has won her legal bid against an interstate bus company, with a court finding it discriminated against her by not having wheelchair access on any of their fleet.

Julia Haraksin took Murrays Australia Limited to court after it refused to take her from Sydney to Canberra in August 2009.

At the time, Murrays - a top-end bus and coach service - had no wheelchair accessible coaches in its fleet.

Ms Haraksin claimed Murrays contravened the federal Disability Discrimination Act and the Discrimination Standards for Accessible Public Transport.

In a judgment handed down on Thursday, judge John Nicholas found the company had directly discriminated against Ms Haraksin by failing to make the "reasonable adjustment" of deploying vehicles equipped with wheelchair access.

"As a result of that failure the applicant was treated less favourably than other people would have been treated had they sought to travel between Sydney and Canberra," Justice Nicholas said.

"In these circumstances, I am satisfied that the respondent discriminated against the applicant."

Murrays, which defended the action, argued in a hearing in 2011 that it was relying on a defence of "unjustifiable hardship", saying it would cost a total of $23 million to convert all of its 154 coaches.

But Justice Nicholas said that there was no evidence before him that changing the fleet would have imposed an unjustifiable hardship.

Speaking outside the court, Ms Haraksin said the win proved that people with a disability can "take on a big bus company for doing the wrong thing ... and be successful".

Murrays general manager Damian Lee said since 2009 the company had taken steps to ensure it was compliant with the Disability Discrimination Act and the standards.

"Our company in recent times has gone to great lengths and incurred significant expense to accommodate persons with disability," Mr Lee said in a statement.

Justice Nicholas said both parties have seven days to make submissions on costs.

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N Korea takes sexist swipe at president

North Korea has taken its first official swipe at South Korea's new president Park Geun-Hye. Source: AAP

NORTH Korea has taken its first official swipe at South Korea's new president, using a sexist phrase to paint Park Geun-Hye as overbearing and manipulative.

A statement released on Wednesday by a spokesman of the North's armed forces ministry said South Korean officials were engaging in a round of "warmongering" orchestrated by the "poisonous swish" of the president's skirt.

The spokesman did not use Park's name or title, referring to her only as the current "owner" of the presidential Blue House in Seoul.

"Swish of the skirt" (or "chima baram") is a common derogatory Korean term used to criticise women seen as overly bossy or domineering.

North Korea's propaganda machine had slammed Park repeatedly during the presidential campaign, warning that she would adopt the dictatorial methods of her father, the late military strongman Park Chung-Hee.

But Wednesday's official comment was the first since she was sworn in a little more than two weeks ago as the first female president of what remains a largely male-dominated country.

It also slammed recent comments by Park - that the North's obsession with nuclear weapons would bring about its own collapse - as "utter ignorance".

Handling North Korea is a major challenge for any South Korean president and, in many cases, has been the issue by which their entire presidency is defined.

Park had campaigned on a promise of greater engagement with the North, but just two weeks into her term is facing threats from Pyongyang to unleash a second Korean War backed by nuclear weapons.

Addressing a lunch function on Wednesday, Park made no mention of the sexist slight and stressed her total commitment to ensuring national security.

"I will certainly safeguard the security of the Republic of Korea and its people no matter what sacrifices it takes," Park said, using the South's official name.

"North Korea's nuclear programs are unacceptable and we will respond thoroughly to provocations," she said, while adding that she was not ready to give up her campaign pledge to build more trust between North and South.

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Cardinals start second day of voting

No new pope has been elected following a first vote by cardinals in the Sistine Chapel. Source: AAP

CARDINALS have entered a second day of conclave to elect a pope.

The 115 cardinals held a first inconclusive vote in the Sistine Chapel on Tuesday as they began the process of finding a successor to Benedict XVI.

Black smoke billowed into the night air above the Vatican, indicating no one had gained the two-thirds majority needed to become the 266th pope.

White smoke - produced by mixing the smoke from burning ballots with special flares - will eventually indicate a new pope has been chosen.

No clear frontrunner has emerged, but the three favourites are Italy's Angelo Scola, Brazil's Odilo Scherer and Canada's Marc Ouellet, all conservatives like Benedict.

"So far there is no majority, but some candidates with little support will fall out soon," an anonymous cardinal who is too old to vote told the Italian daily La Stampa.

Some analysts suggest that Benedict's dramatic act - the first papal resignation in over 700 years - could push the cardinals to take an equally unusual decision and that an outsider could emerge as a compromise candidate.

However, two-thirds of the cardinals are from Europe and North America, and the view among many experts is only someone with experience of the inner workings can reform the scandal-tainted Vatican bureaucracy, the Roman Curia.

In interviews given before the conclave, cardinals pointed to new job requirements arising from the problems facing a church that is struggling in many parts of the world with scandals, indifference and conflict.

"Managerial skills will surely be useful," Vienna Archbishop Christoph Schoenborn told La Stampa newspaper.

And in an indication of a fault line among voting cardinals between Vatican insiders and those running far-flung dioceses, Nigerian John Onaiyekan spoke of "new and innovative methods to boost collegiality".

"In this regard there is a lot of room for development," said Onaiyekan, the archbishop of the Nigerian capital Abuja.

All were appointed by Benedict or his predecessor and ideological soul mate John Paul II.

What many cardinals want is a leader who can re-ignite Catholic faith - particularly among young people - in the way the charismatic John Paul II did.

There have been calls too from within the church for a rethink of some basic tenets such as priestly celibacy, the uniform ban on artificial contraception and allowing women to be priests as in other Christian denominations.

The scandal of sexual abuse of children by priests going back decades - and the cover-up of their actions by senior prelates - also cast a long shadow on the Church that the next pope will inherit.

And in a reminder of the relentless pace of the scandal, new details emerged implicating one of the cardinals, Los Angeles Archbishop Roger Mahoney, of protecting predator priests.

Lawyers said on Tuesday the archdiocese had agreed to pay nearly $US10 million ($A9.75 million) to four men who alleged they were molested by a priest in the 1970s.

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