Shorten dismisses dire Labor poll

Bill Shorten says the federal election will be decided by voters, not opinion polls or newspapers. Source: AAP

FEDERAL Education Minister Bill Shorten says the election will be decided by Australian voters, not opinion polls or newspapers.

Mr Shorten brushed off Saturday's Fairfax-Nielson poll, which after preferences gives the coalition a six-point lead over Labor - 53 per cent to 47 per cent.

"This election will not be decided by newspapers or by opinion polls, it'll be decided by the will of 15 million people voting," he told reporters at a Queensland Teachers Union meeting in Brisbane.

Mr Shorten also made a speech to delegates where he praised teachers and talked up the benefits of Labor's Better Schools plan, saying it was ironic that a lot of Australians would be lining up to vote in school halls built by the Labor government.

"These are good projects and we should never let be taken away from us some elements of the conservative media or those ignorant, book-burning, anti-education rabble who seek to become the government of Australia - the coalition," Mr Shorten told the crowd, which responded with a booming "here, here".

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Factory ablaze in southeast Melbourne

FIRE crews are responding to a large factory fire in Melbourne's southeast.

Metropolitan Fire Brigade crews were called to the brick and metal premises just after 7pm (AEST) on Saturday to find flames going through the roof.

About 13 fire truck crews are tackling the blaze.

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Flood kills 76 in northeast China city

A RIVER flood triggered by torrential rains has killed 76 people in a northeast Chinese city, state media says.

The official Xinhua News Agency said a memorial service was held on Saturday in the city of Fushun for the victims.

It said another 88 people remained missing as of Friday.

It quoted Fushun mayor Luan Qingwei as saying the flood was the worst in decades for the city, where a river cuts through the downtown area.

A statement by Fushun's municipal government has declared Saturday as a city-wide day of condolence and that all public entertainment activities should be halted for the day.

Fushun, located in a mountainous area, has been hit hard by floods ravaging China's northeastern provinces.

Dozens more have been reported killed by floods elsewhere in the region.

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Search on for NT crocodile victim

NORTHERN Territory police are searching for a man who is believed to have been snatched by a crocodile.

Senior Sergeant Peter Lindfield says police received reports about 4pm (CST) on Saturday that the 24-year-old had been attacked by a crocodile while he swam at Mary River, about 110km from Darwin.

"Officers from the Water Police Section and Territory Response Group are currently at the scene of the attack and are searching for the man and the crocodile," Sergeant Lindfield said in a statement.

An employee at the Mary River Wilderness Retreat says the man and a friend had ignored warnings not to go in the water.

"Two local boys decided to go swimming, we tell people to stay away from the water, they obviously went against this (and) a man was taken," Erin Bayard told News Corp Australia.

"We say to everybody it's full of crocs.

"It's one of the most populated rivers in the Territory, every couple of kilometres there is a large croc."

A police spokeswoman told AAP that officers and wildlife rangers would search through the night.

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Shorten wins high praise from Hawke

Former PM Bob Hawke says Labor Minister Bill Shorten (pic) has "future leadership qualities". Source: AAP

EDUCATION and Workplace Relations Minister Bill Shorten has won high praise from former prime minister Bob Hawke as a person with "future leadership qualities".

Mr Hawke said Mr Shorten had a strong academic background coupled with experience in both the union movement and as a senior minister and backed the suggestion that the former union boss could be a future Labor leader.

"He did a marvellous job in the leadership of the trade union movement, protecting and advancing the interests of the working people of this country," Mr Hawke told reporters on Thursday.

"So the answer is obviously yes."

Asked if Mr Shorten would be a better leader than prime minister Kevin Rudd, Mr Hawke said comparisons were "invidious".

"The truth is that Bill has had a longer experience in the Labor movement and the trade union movement and has had more experience, therefore, in dealing with people at an individual level," Mr Hawke said.

"That would mean his relations with his colleagues would always be easy."

Mr Hawke's comments came after a speech to Labor members and supporters in Adelaide where he urged them to seek out undecided voters ahead of the September 7 election to emphasise Labor's record on economic management, education and national security.

"This is about what sort of country we're going to be, what sort of society we're going to be," he said.

"Whether we're going to be a society of equal opportunity, whether we're going to be a country which maximises its opportunities for growth and whether we're going to be a country which takes a constructive lead in the region and the world in creating a more harmonious society."

Mr Shorten said Mr Hawke was one of Australia's greatest ever communicators.

"Every political party wishes they had one but Labor is the only one who has a Bob Hawke," he said.

Opposition finance spokesman Andrew Robb said Mr Hawke's praise for Mr Shorten was a massive vote of no confidence in Mr Rudd.

"Mr Hawke's public intervention today demonstrates a complete lack of confidence in Mr Rudd's leadership by a revered Labor Party elder," Mr Robb said in a statement.

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Fairfax seeks new revenue sources

Fairfax Media will create marketing businesses as it chases new revenue sources. Source: AAP

FAIRFAX Media will create marketing businesses to chase new revenue streams after weak ad markets and declining revenues contributed to a $16.4 million full year loss.

The result was an improvement from a $2.7 billion loss in the previous financial year, helped by $118 million in cost cutting and an 80 per cent reduction in net debt to $154 million.

But the company did incur a $406 million impairment charge on the value of its regional and agricultural businesses.

Revenue declined by 9.5 per cent in its key metropolitan media business - which includes the Sydney Morning Herald, The Age and the Financial Review Group.

Revenue in its regional publications declined by 7.5 per cent, and 4.7 per cent in New Zealand.

Chief executive Greg Hywood acknowledged the tough conditions, but said Fairfax would continue to cut costs in its traditional print operations and invest in new digital revenues.

"In these tough times this media company will not blink," Mr Hywood said.

"We're responding to difficult conditions by transforming our operations, evolving the way we engage with customers and audiences."

Mr Hywood said Fairfax would pursue new revenue in three areas - online marketing services to small business; events management (expanding on ventures such as Sydney's City To Surf fun run); and content marketing, with a new business to be set up in coming months.

He declined to say what earnings from the new "revenue adjacencies" would be.

The company launched metered paywalls for news websites in July, and Mr Hywood said 68,000 new digital subscriptions had been added with "minimal impact" on site visit numbers.

Within Fairfax's metro media business, print and digital news and classifieds revenue suffered a 16.7 per cent decline.

Metro print ad revenue fell 25 per cent while digital income, from online news, classifieds and transaction sites such as RSVP, increased 3.4 per cent.

Radio, including Perth's 96fm and Melbourne's 3AW, was a strong point for the company, with a 7.7 per cent rise in underlying ad revenue and underlying earnings up by 35 per cent.

BBY analyst Mark McDonnell said Fairfax's management had done well in cost cutting but revenue declines remained a problem.

"Everything they have done has been credible and creditable but I'm still struggling to find where the point is that they are going to stabilise their earnings line," he said.

Mr Hywood said further cost cutting was to come.

Mr Hywood received no bonus on top of his $1.6 million fixed salary, with no senior executives received bonuses as short term financial benchmarks were not met.

Fairfax shares closed 0.5 cents higher at 58.5 cents.

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Sydney teacher sorry for Facebook pics

A SYDNEY teacher who posted pictures of his students on Facebook is remorseful over his behaviour, the NSW Department of Education says.

John Pheeney, an experienced teacher at Hurstville Public School, has outraged parents after posting several photos of his students on Facebook, the Seven Network reports.

Some parents are asking for Mr Pheeney to be stood down, it reports.

But the Department of Education says an investigation into the matter has already been completed and parents have been notified.

"When brought to its attention, the department responded quickly to this matter by informing the teacher that his behaviour was unacceptable and directing him verbally and in writing to remove the photos of students from his social networking site," the department said in a statement.

"The teacher is remorseful for his behaviour.

"This is the first complaint about the teacher's personal or professional conduct in a career of more than 20 years with the department."

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Rowdy audience dominates Swan's debate

A rowdy crowd dominated Wayne Swan's (L) first candidates's debate of the campaign in Brisbane. Source: AAP

A ROWDY crowd dominated former treasurer Wayne Swan's first candidates's debate of the campaign.

Liberal National Party (LNP) stalwarts and rusted-on Labor supporters constantly interjected during a lively debate between Mr Swan and LNP opponent Rod McGarvie.

They scoffed at Mr Swan's claims about the growing economy and booed Mr McGarvie when he spoke of the need to rein in spiralling government debt.

Neither candidate delivered a knockout blow, but the pair were certainly more exciting than their leaders.

Mr Swan became unstuck when asked if could guarantee no cuts to services under Labor, saying "I can guarantee all our plans already costed".

There were also howls when Mr McGarvie suggested that because of Labor's marine parks "Asian fishing boats can come in there (the Coral Sea) and rape and pillage".

But Mr McGarvie pulled out the big guns on Mr Swan when he read quotes he'd made about Prime Minister Kevin Rudd when he was still a backbencher.

The moderator then asked Mr Swan if he was comfortable serving under Mr Rudd.

"I'm happy to serve," he replied.

"Under Rudd," asked the moderator, some partisan members of the crowd joining in.

"I'm doing it now," a seemingly annoyed Mr Swan said, to cheers of other audience members.

Mr McGarvie then stumbled when he said the government needed to run healthcare more efficiently, like a business.

"We don't live in a business, we live in a society," Mr Swan replied, to wild cheers from the obvious parts of the room.

But overall both candidates carried themselves well, despite almost constant audience interjections.

Mr Swan seemed very confident, while relative newbie Mr McGarvie held his ground impressively.

"I really enjoyed that debate, it was terrific," Mr Swan told reporters afterwards.

Mr McGarvie thought his first candidates' debate had been enjoyable.

"It was an interesting time, it was my first time to do something like that," he said.

There was no clear winner, but many in the crowd had made up their minds about who they would vote for before they arrived anyway.

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Rudd set out to be feisty: Abbott

TONY Abbott says Kevin Rudd set out to be feisty and confrontational during their second leaders debate.

He and Mr Rudd faced off in a second leaders' debate of the election campaign, taking questions from undecided voters in a "people's forum" at Brisbane Broncos Club on Wednesday.

The pair clashed numerous times.

In one exchange Mr Abbott had a crack at the prime minister as Mr Rudd hounded him about the coalition's paid parental leave scheme.

"Does this guy ever shut up?" Mr Abbott asked, drawing laugher and applause from the audience.

When asked about his jibe later, Mr Abbott said Mr Rudd was being hostile and "certainly doing a lot of talking".

"I guess that's his way," he told reporters after the debate.

"I think he set out to be pretty feisty tonight.

"I think he set out to try to be a little bit confrontational."

Mr Abbott admitted he was a little "keyed up" before the debate.

He wouldn't say who he thought won the debate, but thought it was a great opportunity for members of the public to make up their minds.

The audience thought differently.

A Sky News poll showed that among the 105 undecided voters participating in the forum, 33 remained undecided at its conclusion.

Mr Abbott took a narrow lead with 37 backing him, while Mr Rudd garnered 35 supporters.

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33 killed in bus accident in Malaysia

A PASSENGER bus has plunged into a deep ravine while travelling downhill near a Malaysian highland resort, killing 33 people, an official said.

Sixteen people survived the accident, which occurred on a winding slope in central Genting Highlands, a popular destination that houses Malaysia's sole casino on Wednesday, said fire department official Azizan Ismail.

The bus, which fell about 60 metres into the ravine, was carrying mostly Malaysians and several tourists believed to be from the Middle East, Azizan said.

He said one body had been recovered from the bus, with 32 more bodies remaining inside the vehicle.

The cause of the accident was not known. The bus driver was among those believed killed, Azizan said.

More than 200 firefighters, police and medical officers used ropes and cranes to reach the bus, which had been heading to Kuala Lumpur, Malaysia's main city.

The cause of the accident was not known. The bus driver was among those killed, Azizan said.

Genting Highlands attracts thousands of domestic visitors and foreign tourists from Singapore, China and other countries every week. Serious accidents are rare on the relatively well-maintained roads leading to the area's main resorts.

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Tourists safe from WA bushfire

ABOUT 200 tourists have returned to their accommodation after a bushfire in Western Australia's Kimberley region forced them to take refuge in nearby administration buildings.

The fire near the five-star Kooljaman Tourist Resort at Cape Leveque was reported just before 2pm (WST) on Wednesday, prompting an emergency warning from the Department of Fire and Emergency Services (DFES).

The department said on Wednesday night there was no longer a threat to lives and property.

Guests who relocated to the administration area as the fire threatened the resort were allowed to return to their accommodation.

The bushfire was moving slowly in a northwesterly direction, the DFES said.

The fire was out of control but containment lines had been constructed to protect lives and property, it said.

About 15 volunteer firefighters and local Bardi Jawi Rangers are on the scene fighting the fire and strengthening containment lines.

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Rudd, Abbott in frank election debate

KEVIN Rudd and Tony Abbott had a frank exchange at the second leaders' debate, as the prime minister turned up the heat on the costing of the coalition's paid parental leave scheme.

The opposition leader was narrowly voted the winner by the 105-member audience of undecided voters - 37 to 35, with 33 still undecided - at Brisbane's Broncos Leagues Club on Wednesday night.

But he caused a stir when Mr Rudd wouldn't give up an attack on the coalition's $5.5 billion a year plan to give working women six months paid parental leave capped at $75,000.

"Will this guy ever shut up?" said Mr Abbott, attracting laughter from the audience.

The Liberal leader later said Mr Rudd had deliberately set out to be feisty and confrontational, but admitted he too was a little "keyed up" before the people's forum.

Mr Rudd used the debate to probe his opponent on plans to cut health funding and how the coalition would pay for the parental leave scheme.

Mr Abbott said the independent Parliamentary Budget Office (PBO) had signed off on the funding - which includes a 1.5 per cent levy on more than 3000 companies, the scrapping of Labor's scheme and "consequential adjustments".

Pushed for detail, Mr Abbott said "about a half" of the annual price tag would come from the business levy.

"So it will mean cuts for the other half, which is $2.5 billion worth of cuts to jobs, health and education," Mr Rudd said. The PBO analysis hasn't been publicly released.

The prime minister asked Mr Abbott whether he would commit to the $20 billion health and hospitals deal with the states.

"Of course there will not be cuts to the hospitals," Mr Abbott said.

Labor campaign spokeswoman Penny Wong believed Mr Abbott's performance showed the "real" opposition leader.

"The unscripted, negative, aggressive man who would be prime minister," Senator Wong said.

Asked what his version of the Howard-era Work Choices industrial relations policy would be called, Mr Abbott revived his 2010 pledge that the hardline policy was "dead, buried and cremated".

Mr Rudd said the coalition had yet to give a "convincing reply" to questions about the protection of penalty rates and overtime.

But Mr Abbott did commit the coalition to saying where it stood on Labor's bank levy before the September 7 election.

While he didn't like it, there was a "serious budgetary position" to consider.

Both leaders were asked about the low quality of candidates contesting the federal election.

Mr Rudd said there had been a problem with the "lowness of parliamentary standards".

Mr Abbott admitted a couple of his own candidates had "not exactly covered themselves in glory so far in this campaign".

"But I am confident that people can grow, develop and mature," he said.

Mr Abbott said this forum had been more lively than the previous election debate.

"It's 'People 1 - Journos nil' perhaps," he said.

Mr Rudd is expected to visit Geelong on Thursday to meet with car industry workers and talk about disability care.

Mr Abbott will start his day in Brisbane.

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European stocks drop at open; London loses

EUROPE'S main stock markets have fallen at Tuesday's open, with London's benchmark FTSE 100 index down 0.65 per cent at 6,423.57 points.

Frankfurt's DAX 30 sank 0.85 per cent to 8,294.87 points and the CAC 40 in Paris shed 0.43 per cent to 4,066.36 compared with Monday's closing values.

Asian equities mostly fell on Tuesday after another weak lead from Wall Street, as speculation mounts the US Federal Reserve will soon start to scale back its stimulus program, dealers said.

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No consular help for Freedom Flotilla

Foreign Minister Bob Carr says a group of Australians sailing for Indonesia are risking jail time. Source: AAP

FOREIGN Minister Bob Carr says a group of Australian activists planning to sail to Indonesia to highlight the fight for Papuan independence will receive no consular assistance whatsoever if they are jailed.

The stern warning came as representatives from the so-called Freedom Flotilla - three yachts with about 20 Australians and West Papuans aboard - continued to insist they would proceed with their protest.

They are expected to arrive in the city of Merauke in about a fortnight, without authorisation or proper documents.

But Senator Carr, who was in Jakarta on Tuesday for regional talks on people smuggling, said the group had received numerous warnings not to proceed with their plans.

Senator Carr said a formal letter had been sent to the organisation on Tuesday informing them that local laws and penalties would apply in Indonesia and Papua New Guinea.

The members of the group could face up to five years in prison for immigration and other offences if they entered Indonesian waters without approval.

"We've given them this warning. Therefore, should they end up in prison as a result of breaching the law of Indonesia or Papua New Guinea we've got no obligation to give them consular support," Senator Carr said.

"The penalties are clear. The penalties will apply and there is no intervention Australia can make and the provision of consular support where people have received explicit warnings is not an obligation."

Senator Carr said members of the flotilla were perpetrating a cruel hoax on the people of the Papuan provinces, by suggesting Papuan independence was on the international agenda.

"We recognise Indonesia's sovereignty over West Papua," he said.

"There's no way any Australian government, Labor or coalition, would give any support or encouragement to an enterprise of this type. We are opposed to it and we're advising against it."

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Labor, coalition battle over leave scheme

LABOR has seized on the coalition's inability to say how it will fund a $5.5 billion a year parental leave scheme as evidence spending cuts will be hidden until after the election.

Opposition Leader Tony Abbott and senior coalition frontbenchers could not specify how the scheme would be funded, or the role of the states, when quizzed about it on Tuesday.

The coalition, which opinion polls say will win government on September 7, offers women six months' leave on full pay, capped at $75,000, plus superannuation for each baby born from July 1, 2015.

Part of the funding will come from a 1.5 per cent levy on about 3000 companies, the scrapping of Labor's existing scheme and an end to "double dipping" by federal public sector workers.

Prime Minister Kevin Rudd said the coalition's budget management was a key question for voters.

"Every day this is like a train wreck unfolding," he said while campaigning in Brisbane.

"You've got huge challenges on the costings.

"Mr Abbott, because he believes he's already won this election, believes he can arrogantly not tell ordinary Australians where he's going to cut."

Mr Abbott said the scheme was "fully funded and fully costed" and rejected criticism it was a "Rolls Royce" scheme.

"This isn't a question of being generous - it's a question of being fair," he said.

However, he declined to say what proportion of the scheme would be funded by the company levy or commit to a cost-benefit analysis.

Shadow assistant treasurer and campaign spokesman Mathias Cormann said it had been costed at $6.1 billion over the forward estimates and at $5.5 billion a year "once it is in train".

Further funding details would be released "in the normal course of events".

"Contrary to what Labor is asserting, there will be no cuts, absolutely no cuts, in any other programs to fund our paid parental leave scheme," Senator Cormann said.

The states have been drawn into the debate because their public servants would have the option of shifting to the federal scheme, meaning there could be some shift of funds to the commonwealth.

West Australian Liberal premier Colin Barnett was adamant WA wouldn't contribute any money to the federal scheme.

However, the WA government on Tuesday said it understood a federal coalition government would fund the "gap" between its scheme and state schemes.

South Australian Labor premier Jay Weatherill said he was in the dark about the details, but Queensland and NSW have said they will back it.

Mr Abbott said he would have an "adult discussion" with the premiers after the election if he won.

Education Minister Bill Shorten said the release of the coalition's costings - expected in the final week of the campaign - would be a turning point for Labor's fortunes.

Meanwhile, a Liberal candidate whose personal website contained lewd and sexist content has resigned, after Mr Rudd challenged Mr Abbott to disendorse him.

Kevin Baker, contesting former Labor minister Greg Combet's NSW seat of Charlton, was forced to shut down his "Mini-Mods" forum site for car enthusiasts.

The site contained references to incest, domestic violence, racism and child abuse.

Finance Minister Penny Wong later said Mr Abbott's scheme was falling apart.

She said the Parliamentary Budget Office had found the net revenue impact of the 1.5 per cent levy would reap $4.7 billion over three years - $2 billion in 2015/16 when it is due to start.

"This is far less than the various figures used by the coalition over the last two days," she said in a statement.

The PBO costing indicated the levy would fund just 36 per cent of Mr Abbott's scheme, she said.

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Syria Kurds, jihadists in fresh battles

FRESH battles have broken out in strategic, majority Kurdish areas in Syria, as jihadists and the main Kurdish party fight each other for control.

In the northeastern province of Hasakeh, "clashes broke out at dawn pitting the Committees for the Protection of the Kurdish People (YPG) against the Islamic State of Iraq and the Levant (ISIS), Al-Nusra Front and other battalions," said the Syrian Observatory for Human Rights on Tuesday.

The fighting hit Dardara, Hmeid and Jafa villages, and others surrounding the strategic town of Ras al-Ain, near the Turkish border, the watchdog said.

The fighting comes days after jihadists linked to Al-Qaeda pressed a fresh offensive to take control of majority Kurdish areas.

Violence has been so fierce in recent days that some 30,000 Syrians, mostly Kurds, have fled to neighbouring Iraq, the UN said on Monday.

The massive exodus late last week appeared to be the biggest since around 9,000 Syrians crossed into Turkey in November.

"There is a war for territory, control and oil," said Havidar, a Kurdish activist from Ras al-Ain, who added that the town is important because it is a key gateway from Turkey into Syria.

Other flashpoints are home to oil and agricultural resources that both the YPG and the jihadists want to control, he told AFP.

The Kurdish Democratic Union Party, the largest in the area and the group that dominates the YPG, has announced plans for autonomy in Kurdish areas.

Elsewhere in Syria, canon fire by troops loyal to President Bashar al-Assad against the rebel-held Tariq al-Bab neighbourhood of the northern city of Aleppo killed four people, said the Observatory.

A projectile "launched by regime troops against a popular market in the Tariq al-Bab area killed four people, including a child, and wounded seven others," it said.

Syria's war, which the UN says has claimed more than 100,000 lives in 29 months, has morphed from a protest movement demanding Assad's fall into a complex civil war.

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Kogan 'muscled' out by telco heavies

Budget retailer Kogan Mobile says it has been "muscled out" of the industry by "telco heavyweights". Source: AAP

BUDGET mobile phone retailer Kogan Mobile says it has been "muscled out" of the industry by "telco heavyweights".

Telstra announced on Monday it will terminate Kogan customers' 3G network access some time in the next 30 days, essentially killing the company.

The move was prompted when ispONE, who supplied Kogan with 3G services purchased wholesale from Telstra, entered voluntary administration on Monday, severing their contracts.

Kogan and Telstra were not able to negotiate a direct supply agreement, unlike supermarket ALDI, who were likewise serviced by ispONE.

Kogan said it had made "numerous and concerted" efforts to convince Telstra to continue servicing its customers.

"We're devastated," the company wrote on its website.

It claimed to have been the victim of a power play by established telcos upset with Kogan stealing their customers.

"When over 100,000 people took their services to Kogan Mobile, in such a short space of time, it attracted a lot of attention.

"Frustratingly, it appears like the telco heavyweights may be determined to take their former customers back ... by force."

Telstra said existing Kogan customers would be moved to a temporary seven-day plan at some stage over the next month, after which their service will be cut off.

They will not be able to top up their credit but Kogan will offer pro-rata refunds to any customers with credit remaining when their service is terminated.

Customers will be able to transfer their phone number to another provider at any time over the next 180 days, Kogan said.

Optus has already pounced on the imminent exodus of customers, offering free additional data and call time to people who bring their number over.

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Legal blow for massive Browse gas hub

WA's premier says he will not give up on his plan for a massive gas hub in the Kimberley. Source: AAP

DEFIANT West Australian Premier Colin Barnett has attempted to shrug off the embarrassing legal defeat which places even more doubt around the proposed multi-billion dollar gas hub in the Kimberley.

Mr Barnett's dream of a massive onshore gas hub at James Price Point was dealt yet another blow on Monday, when WA's Chief Justice Wayne Martin ruled the environmental approval for the project was unlawful.

The proposed scheme was already in limbo, after energy giant Woodside announced earlier this year it would instead consider processing Browse Basin gas on a vessel stationed far offshore.

On Monday, Justice Martin gave the government another major headache, handing down damning verdicts on its environmental approval process.

Mr Barnett described the ruling as "regrettable" - and signalled the government would fight on.

"The decision relates to the process ... he did not in any way question the environmental conditions or approvals themselves," Mr Barnett said.

"All the environmental evidence and surveys and research has been done over many, many years. I am confident that still stands.

"It is now simply up to the state government to resubmit the environmental evidence and the recommendations on conditions attached to the use of James Price Point. That is, in all likelihood, what we will do."

The Wilderness Society, and Goolarabooloo elder Richard Hunter, had argued conflicts of interest in the Environmental Protection Authority (EPA) assessment process resulted in just one EPA board member - chairman Paul Vogel - making the final decision.

They also said the state's then-environment minister Bill Marmion had erred by granting his approval despite the conflicts. Chief Justice Martin agreed with both arguments.

"The minister's statement that the Browse LNG Precinct proposal could be implemented subject to conditions was not a valid exercise of the powers conferred upon the minister," the judgment said.

Peter Robertson of The Wilderness Society says the onshore project is now "dead and buried".

"Premier Colin Barnett must face facts, drop this unhealthy obsession," Mr Robertson said.

He also called on both Mr Vogel and Mr Marmion to resign, which Mr Barnett dismissed.

Mr Hunter said the ruling was also a vindication for the land's traditional owners.

"Our people are strong - we won't be bullied into a corner by the government," Mr Hunter said.

After Woodside dumped plans for a liquefied natural gas processing facility at James Price Point in April, the WA government went ahead with acquiring the land, saying it wanted to keep the area available for future projects.

Asked why the WA government would not simply abandon its bid, Mr Barnett said: "I don't give up".

It is open to the WA government to appeal against the ruling, but the Wilderness Society warned it would then cross-appeal.

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Rudd turns to health, spending cuts

Kevin Rudd and Tony Abbott are accusing each other of negative politics half way into the campaign. Source: AAP

PRIME Minister Kevin Rudd has warned the coalition would scrap GP super clinics and Medicare Local centres, as he fended off claims of running a negative scare campaign.

Heading into the third week of the campaign, Labor is stepping up efforts to persuade voters a coalition government would be a risk to jobs and services because it would have to cut public spending to fund its election promises.

Opposition Leader Tony Abbott, however, said Labor was plumbing new depths in its attacks on the coalition by making "a whole series of absolutely outlandish and false claims".

Mr Rudd took his campaign to northern NSW on Monday to launch a $50 million plan for stroke patient support.

Speaking at a Medicare Local centre, the prime minister said the coalition would shut down the facilities run by local clinicians and community leaders and sack 3000 frontline health workers.

"Mr Abbott hasn't really thought through the real impact of his cuts on real peoples' lives," Mr Rudd said.

Labor has backed up the attack with campaign advertisements showing workers standing in spotlights which are then switched off.

"This is not about negativity, it's about accountability," Mr Rudd said of the ads.

The coalition has yet to announce its health policy, but Mr Abbott said last Friday he wanted community control of public hospitals, and medical research funding would be quarantined.

Mr Abbott did not intend to cut health spending, but would be spending "money more wisely".

The opposition leader was in western Sydney on Monday to formally announce his small business and law and order policies.

"The current government in losing control of our borders, has not just failed to stop the boats but has failed to stop the guns as well," Mr Abbott said.

The crime policy includes a mandatory minimum sentence of five years for importing illegal firearms, $100 million for Customs and local gang squads and $50 million for CCTV cameras in communities.

During a visit to supporters in Liverpool, he incorrectly referred to Labor as the "former government", before quickly correcting himself.

Treasurer Chris Bowen stood by Mr Rudd's argument that the coalition cuts would drive the economy into recession.

"We've seen it in other countries when you cut and when you embark on an austerity program, then you see an impact on economic activity," Mr Bowen said.

The latest Newspoll puts the coalition ahead of Labor 54-46 on a two-party basis and Mr Abbott just two points behind Mr Rudd as preferred prime minister.

But, in a sign of hope for the government, an Essential poll has Labor and the coalition at 50-50, after a two-point drop in the primary vote for minor parties and independents.

Labor star candidate Peter Beattie, who is standing in the Queensland seat of Forde, took an optimistic view of the polls, saying Labor can stabilise and rebuild as the campaign to September 7 continues.

"Incumbent governments always go backwards in the first 10 or 11 days," the former premier said.

The opposition's health spokesman Peter Dutton dismissed as "totally false" Mr Rudd's suggestion that all Medicare Local programs would be scrapped and that 3000 frontline health staff would be sacked under an Abbott government.

The coalition continued to provide "in-principle" support for Medicare Locals and wanted to ensure that funding for patient services wasn't being diverted to administrative services, he said in a statement.

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Hong Kong stocks close 0.24% lower

HONG Kong shares ended 0.24 per cent lower on Monday following losses on Wall Street last week, while investors bet the US Federal Reserve will soon start winding down its stimulus program.

The benchmark Hang Seng Index fell 54.11 points to 22,463.70 on turnover of HK$44.31 billion (US$5.72 billion).

Market players have been intensely speculating about when the United States will begin tapering its massive $US85 billion a month bond-buying program, which has flooded markets with cash.

The Fed is due to release the minutes of its latest policy meeting on Wednesday and until then, analysts say, trade will likely remain cautious.

Steven Leung, head of institutional sales at UOB Kay Hian, told Dow Jones Newswires trade in Hong Kong would be "quite sluggish" until dealers are given clues about when a tapering might begin.

Property shares meanwhile slumped in Hong Kong after official data released Sunday showed Chinese home prices continued to rise at a steady clip.

Prices rose an average 6.7 per cent year-on-year in July, up from 6.1 per cent in June, according to calculations by The Wall Street Journal.

The data gave fresh fuel to worries that China will seek to slow the rise in prices with official curbs on the market.

Shares of residential-property builder Country Garden fell 2.6 per cent to HK$4.91 while Agile Property shares declined 2.8 per cent to HK$8.36.

Chinese shares closed up 0.83 per cent, reversing earlier losses and helped by selective buying of banking shares, dealers said.

The benchmark Shanghai Composite Index rose 17.15 points to 2,085.60 on turnover of 81.5 billion yuan ($US13.3 billion).

The market fell earlier in the day on Monday after a trading error by a securities firm last week triggered fears of tighter control over brokerages.

"Heavyweight banking stocks were higher on cheap valuations and that helped stabilise the market," Zheshang Securities analyst Zhang Yanbing told AFP.

China Minsheng Banking jumped 4.0 per cent to 9.38 yuan while Industrial Bank rose 3.43 per cent to 10.56 yuan.

internet security-related shares gained after China's stock regulator said it was investigating Everbright Securities for a trading glitch that briefly sent the Shanghai index up more than five per cent on Friday.

Software developer China National Software & Service surged by its 10 per cent daily limit to 27.20 yuan while Shanghai Baosight Software jumped 7.69 per cent to 29.12 yuan.

Brokerages ended lower, with Southwest Securities losing 3.84 per cent to 9.01 yuan and China Merchants Securities dropping 3.23 per cent to 11.07 yuan.

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