Prince wows Sydney on first official visit

Prince Harry has arrived at Sydney's Garden Island Naval Base for the International Fleet Review. Source: AAP

HE may like to party, but Prince Harry was all business as he greeted adoring fans, inspected warships, and met the prime minister and his family on his first official visit to Australia.

Thousands of Harry fans turned out to catch a glimpse of the fourth-in-line to the British throne in Sydney as part of the International Fleet Review.

The 29-year-old prince is the big drawcard of the eight-day navy extravaganza, which marks 100 years since the Royal Australian Navy fleet sailed into Sydney Harbour.

Dressed in a white tropical dress uniform of the British Army and a blue Army Air Corps beret, the 29-year-old began the day by saluting naval officers before being greeted by navy Vice Admiral Ray Griggs at Sydney naval base Garden Island.

Captain Wales, as he's known in the British military, then boarded the HMAS Leeuwin where Prime Minister Tony Abbott, Defence Minister David Johnston and a host of other dignitaries were waiting for him.

After being welcomed on the harbour by a 100 gun salute, Harry spent the next few hours on board HMAS Leeuwin inspecting the warship fleet alongside Governor General Quentin Bryce.

The prince's appearance on the harbour coincided with a dazzling display by navy aircraft and helicopters, thrilling thousands lining the foreshore.

Back on land and donning a crisp navy-coloured suit, blue tie and white shirt, Harry turned his attention to his Sydney fans.

Making a surprise appearance at the Rocks, there were screams, smiles and waves as the red-haired prince emerged from his car at Sydney Harbour to greet a heaving crowd of fans.

In the 10-minute stop, Harry shook hands and said hello to hundreds who were hugging the barricades in an effort to see him.

Linda Wickens handed him a stuffed dingo as a present for his nephew Prince George.

The prince then stopped for a quick photo with her 12-year-old daughter Annabel who summed up the experience in one word: "awesome".

From there, the prince took a boat to Kirribilli House, where he was greeted by Mr Abbott, his wife Margie and daughters Bridget and Frances.

They posed for official photographs and walked through the gardens before greeting a crowd that had gathered at the gates of the prime minister's Sydney residence.

"What do you think of your new neighbour?" Harry asked one of the locals, referring to the newly-elected Mr Abbott.

Inside, the prime minister reflected on the special day, joking that Prince Harry appealed to even those Australians who aren't royalists.

"Prince Harry, I regret to say not every Australian is a monarchist," he said.

"But today everyone feels like a monarchist."

The prince is understood to be later hosting a private function for injured veterans of Afghanistan, a cause he actively supports.

He is due to leave Sydney for Perth on Sunday morning for the next leg of his Aussie tour.

The Fleet Review's Fireworks and Lightshow Spectacular is due to start at 7.30pm (AEST) at Sydney Harbour.

Up to one million people are expected to gather on the foreshore for the event.

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US extends visa law for Iraqi war aides

President Barack Obama has approved special visas for Iraqis who risked their lives to help America. Source: AAP

US President Barack Obama has signed into law a measure providing special visas for Iraqis who risked their lives to help the United States.

The special visa has allowed more than 12,000 Iraqi contractors, interpreters and others who aided US efforts, and their family members, to move to the US since 2007.

It expired earlier this week, with about 2000 applications still pending.

In a rare instance of bipartisanship, both chambers of congress passed the measure within hours of each other this week.

The program was created during the worst years of the Iraq war, with Iraqis who helped US forces facing targeted killings and death threats.

The goal was to resettle them in the US faster than the general refugee process might allow.

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Irish voters consider scrapping senate

An Irish referendum on a proposal to abolish the country's senate has had a low turnout. Source: AAP

VOTER turnout has been low in an Irish referendum on whether to abolish the country's upper house of parliament.

As polling stations closed at 10pm on Friday - with counting due to start on Saturday morning - the percentage of those casting their ballots was estimated to be less than 40 per cent.

An electorate of 3.1 million were eligible to have their say.

Latest opinion polls suggested a majority of voters would back Prime Minister Enda Kenny's call to get rid of the Seanad, or senate, in a historic move that would hand power exclusively to the lower house.

A poll in the Irish Times on Monday put the Yes vote - in favour of abolition - at 62 per cent, with 38 per cent backing the retention of the upper house, after excluding those who were undecided.

But more than a fifth of the electorate were undecided at the start of the week, while another 8 per cent said they did not intend to go to the ballot box.

Results in the referendum are expected by around mid-afternoon on Saturday.

The Taoiseach says abolition would create a leaner, more effective and more accountable system.

Opponents, led by the largest opposition party Fianna Fail, say the Seanad is necessary to serve as a government watchdog and to hold the ruling cabinet ministers to account.

The Irish parliament, the Oireachtas, is currently made up of the lower house, the Dail, from which government operates, and the upper house, the Seanad.

The senate has 60 members, with most elected from vocational panels by local councillors and by university graduates.

Eleven are appointed by the prime minister, generally ensuring a government majority.

It is not the first time the Irish have toyed with abolishing their upper house.

Eamon de Valera gave it the chop in 1936 when he was prime minister, before bringing it back a year later.

Historically, many senators tend to be politicians who failed to gain election in a general election or those hoping to win a seat in the lower house at a future election.

The upper house is the less powerful house of parliament, often reduced to rubber-stamping legislation from the lower house.

Its ability to delay bills passed by the lower house for 90 days is its most powerful function, but that has only occurred twice in 75 years.

Comparable upper houses have been abolished in New Zealand, Denmark and Sweden.

Irish voters are also being asked whether the state should set up a Court of Appeal.

Fine Gael, Labour, Fianna Fail and Sinn Fein have all backed the court proposal, which could result in more basic appeals from the High Court going to the Court of Appeal instead of the Supreme Court.

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Gunmen kill 15 Libyan soldiers

GUNMEN have attacked a Libyan military post southeast of the capital Tripoli, killing 15 soldiers, an official and Libya's state news agency report.

The attackers rode vehicles topped with machine guns, the military official said.

The highway between the towns of Tarhuna and Bani Walid, on which the post was located, was closed immediately after the attack in an attempt to track down the attackers.

The official said the attack took place at Wishtata area, 60 kilometres from the entrance to Bani Walid, early on Saturday.

The town was one of the last strongholds for supporters of Muammar Gaddafi in the country's 2011 civil war, and was besieged again by pro-government militias last year.

More recently, Libya has been hit by a months-long wave of attacks targeting military officers, activists, judges and security agents. Much of the violence is blamed on armed groups with their origins in the anti-Gaddafi rebel movement.

The official spoke on condition of anonymity according to the regulations.

The Libya News Agency said another five soldiers were wounded.

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Keysar Trad to launch love poetry book

Muslim community spokesman and polygamy supporter Keysar Trad is releasing a book of love poetry. Source: AAP

OUTSPOKEN Muslim community spokesman Keysar Trad is making a foray into the literary world, releasing a book of love poems.

Mr Trad, who has previously said polygamy should be recognised, will launch his book Forays of the Heart at Glebe, in Sydney's inner-west, on Sunday.

The poems are described as "paeans of unrequited love directed at women other than his wife".

The well-known Australian Muslim said the poetry was written in a "sense of fantastical lyrical compulsion".

"I felt the need to share them so that others can benefit from these journeys," Mr Trad said.

The book is due to be launched by Liberal MP Philip Ruddock.

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Leighton faces market backlash

Investors continue to sell out of construction giant Leighton after allegations of corruption. Source: AAP

MORE than $957 million has been wiped off the market value of construction giant Leighton as investors worry about the impact of corruption allegations.

Analysts are warning the company faces a potential cashflow crisis if clients react to media reports of bribes being paid for overseas contracts, and cancel non-binding agreements with Leighton.

The company's shares lost another 80 cents, or 4.6 per cent, on Friday to $16.74.

That follows a 10.4 per cent fall on Thursday, when Fairfax Media reported senior executives at Leighton were aware of bribes paid in order to win contracts in Iraq, Indonesia and Malaysia.

Leighton says its directors have always carried out their duties with appropriate care and diligence, while former chief executive Wal King has denied he knew of alleged corruption in the company's operations in Iraq.

Deutsche Bank analyst Craig Wong-Pan said the major immediate implication for Leighton was damage to its reputation, which could start costing it new contracts.

"If clients say 'we don't want to associate with a company that has those instances of corruption', there could be less contracts awarded to Leighton," he told AAP.

The $400 million it was owed for the Iraqi oil pipeline contract in Basra, the subject of corruption claims, was also under threat.

"I just see that there's increased risk to them collecting the full amount," Mr Wong-Pan said.

Analysts from Morgan Stanley, Citigroup and Macquarie Equities also said they were concerned about threats to the $500 million of cashflow the company had targetted this year if it struggled with collecting cash from offshore clients.

Its $42 billion pipeline of work in hand was also at greater risk, IG market strategist Evan Lucas.

"Those contracts are under agreement but they are not necessarily binding agreements that can be cancelled - so they could actually lose some of that pipeline," he said.

Collecting unpaid debts was a problem for Leighton before Thursday's reports, with $500 million in net project underclaims sparking criticism from analysts earlier in the year.

The company's forecast $520 million to $600 million underlying full year profit was under threat, Mr Lucas said.

"If you don't have cashflow coming in, then you can't make profit," he said.

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Planned Qld coal ports in doubt

Plants to build two central Queensland coal ports are in doubt due to a downturn in the coal market. Source: AAP

PLANS to build two central Queensland coal ports are in doubt due to a downturn in the coal market.

However, proponents of the ports, at Dudgeon Point near Mackay and Port Alma at the mouth of the Fitzroy River near Rockhampton, say the plans will go ahead if the market recovers.

Both projects are still seeking government approvals.

North Queensland Bulk Ports Corporation, which is developing Dudgeon Point along with Indian coal giant Adani, says progress is continuing "but at a slower pace".

"The Environmental Impact Statement for the project is currently paused," a statement from the firm said.

"The coal market is down as is the current appetite for investment in infrastructure of this type."

Bulk Ports said they will continue finalising environmental studies as the firm doesn't want to be caught out if the market improves.

The port will have the capacity to export up to 180 million tonnes of coal each year.

Peter MacTaggart of Mitchell Ports, which is developing Port Alma, told News Corp Australia the project won't go ahead until demand increased.

"At the moment our customers are telling us that their priority is cutting costs rather than expanding, and we won't be going ahead until there's the demand for it."

Once completed, up to 22 million tonnes of coal per year would be exported from the port.

Environmental groups are calling on Federal Environment Minister Greg Hunt to stop all mega-ports along the Queensland coast.

Of particular concern is the Port Alma project as it would be built on the pristine Fitzroy River Delta, the largest estuarine ecosystem feeding into the reef.

"We're calling on the Australian and Queensland governments to work together and rule out this totally unnecessary development once and for all," WWF spokesperson Richard Leck said.

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GrainCorp decision due in December

The government will decide on the takeover of Australia's largest grain handler by December 17. Source: AAP

TREASURER Joe Hockey has given the new federal government more time to consider the implications of a takeover of Australia's largest grains handler, GrainCorp.

A decision on a $3.4 billion offer from US grain giant Archer Daniels Midland (ADM) will now be made by December 17, Mr Hockey said.

"Given the size of this transaction and the complex nature of the issues involved, I have decided to extend the statutory time period," he said.

"This will allow sufficient time for the new government to carefully consider all the relevant issues and advice from the Foreign Investment Review Board before making a decision."

The Nationals are opposed to the sale, as it would mean ADM, Cargill and Glencore would control almost 60 per cent of Australia's wheat shipments and put most of the nation's grain export infrastructure in foreign hands.

The Australian Competition and Consumer Commission said in June it would not oppose the $3.4 billion takeover.

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Malaysia extends detention without charge

MALAYSIA has extended the legal period of detention without charge, in a move criticised by some as a revival of tools for political repression.

Parliament agreed on Thursday to extend the period to two years at the end of an all-night session, according to Home Minister Ahmad Zahid Hamidi, who sponsored the controversial bill.

The current limit is 72 days, under the Prevention of Crime Act of 1959. The new limit will apply if deemed to be in the interest of public order, public security or the prevention of crime.

Zahid said the amendment was aimed at giving the police more teeth in fighting crime and not aimed at quelling political dissent.

But opposition legislators and human rights advocates denounced the amended law as a return of the Internal Security Act, which allowed detention without trial for prolonged periods.

The Act was criticised as a tool to repress political dissent, and was repealed in 2011 as part of Prime Minister Najib Razak's reforms.

"Malaysia is taking a huge step backwards on rights by returning to administrative detention practices much like the draconian Internal Security Act," said Phil Robertson, deputy Asia director at Human Rights Watch.

The government dismissed the accusation.

"We provided certain provisions as a check and balance including the set-up of the Crime Prevention Board," Zahid said. Approval by the top-level, five-member board would be required for each case of prolonged detention.

The premier "ordered the attorney-general to make sure that the government will not be implicated of trying to abuse power," he said.

But Robertson maintained that "Prime Minister Najib is backing methods that do little to curtail crime but threaten everyone's liberty."

Senior opposition legislator N Surendran, said the passage of the bill jeopardised the freedom of every Malaysian citizen.

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The Gambia pulls out of Commonwealth

THE Gambia has pulled out of the Commonwealth of Nations, accusing the organisation of "colonialism".

"The government has withdrawn its membership of the British Commonwealth. The Gambia will never be a party to any institution that represents an extension of colonialism," the government said in statement delivered on national television late on Wednesday.

The move marks the first African departure from the group in 10 years. Zimbabwe withdrew its membership in 2003.

The Gambia joined the 54-strong association, mostly made up of former British colonies, in 1965, shortly after gaining independence.

The move is designed to "further cut ties with Britain", regional political analyst Abdou Aine told DPA from Dakar.

According to Gambian government figures, about half of the 100,000 tourists who holiday on the country's sandy shores each year are British.

Despite ongoing reports of human rights violations and limited freedom of the press, the Gambian government has invested heavily in tourism.

Foreign holiday-makers account for about a fifth of the tiny country's economy.

President Yahya Jammeh, who came to power in a 1994 coup, is known for announcing controversial plans and ideas without warning.

Last year, the 48-year-old leader used a national address during a Muslim holiday to announce plans to execute death row inmates. The decision was widely condemned by rights groups and members of the international community, including the British government.

In 2007, Jammeh claimed he could cure HIV and Aids through herbal treatment that requires patients to abandon anti-retroviral therapy.

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Woman drowns after NT houseboat sinks

A WOMAN has drowned after a houseboat sank on the Mary River, east of Darwin.

Police attended just before 5pm (CST) after receiving reports that strong winds from a storm front tipped over one houseboat that was moored to another.

Police believe the woman was trapped under water in the capsized vessel.

Duty Superintendent Daniel Shean said members of the group dived in the water to recover her and began CPR.

They then took the woman in a tinny to the boat ramp where they met police.

Police continued resuscitation until paramedics arrived but the woman was unable to be revived.

The other eleven members of the group are accounted for and safe.

Police are investigating the incident on behalf of the coroner.

The Mary River is about 100 kilometres east of Darwin.

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Leighton's King denies knowing of bribes

Former Leighton Holdings boss Wal King denied knowledge of the company's alleged corruption in Iraq. Source: AAP

FORMER Leighton Holdings boss Wal King has denied he had knowledge of the construction giant's allegedly corrupt dealings in Iraq.

Fairfax Media has reported senior Leighton executives, including Mr King, were aware of alleged kickbacks paid to a Monaco firm with close ties to Iraqi officials that awarded the company a $750 million oil pipeline contract.

The allegations caused Leighton shares to suffer their heaviest one-day fall in more than two years, losing $2.04, or 10.4 per cent, to $17.54.

The fall wiped almost $700 million from the company's market value.

But Mr King has denied the claim, and says he is seeking legal advice.

"I deny the allegations that I had any prior knowledge of circumstances in Iraq," he told ABC Radio.

Corruption allegations involving Leighton are not new.

The company referred accusations it paid bribes in Iraq to the Australian Federal Police in November 2011, before making the issue public three months later.

But senior executives had not previously been linked to alleged illegal payments.

In a statement, Leighton said it was still cooperating with the AFP on the ongoing investigation, and wasn't aware of any new allegations or instances of a breach of its code of ethics.

"The directors of Leighton's subsidiary companies and of Leighton Holdings are aware of their responsibilities and have at all times executed their duties with the appropriate care and diligence, and in the best interests of each relevant company," it said.

Federal Greens MP Adam Bandt criticised the AFP over the length of time its investigation has taken.

In response, the AFP said the Leighton investigation remained a priority, but the process of investigating claims of foreign bribery was a complex and lengthy one.

Leighton sacked a senior executive in July 2012 after its own investigation into the alleged breach of its code of ethics in Iraq.

The company has also launched court action against a former employee to recover $5.6 million for alleged breaches of contractual and fiduciary duties relating to the construction of a barge in Indonesia.

It says it has since changed its management structure and tender process.

"That Leighton self-reported the matter which is the subject of the AFP's investigation ... is evidence of the culture of integrity and openness that has been established across the Leighton Group," the company said.

"The company is focused on ensuring that its values are consistently applied across the Leighton Group and any deviation from those values will not be tolerated."

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Baby found dead outside WA daycare centre

AN 11-month-old baby boy has been found dead in a vehicle outside a Perth daycare centre.

The boy was found in a vehicle outside the daycare centre in Helena Valley, in the foothills of Perth's Darling Scarp.

Ambulance and police were called to the centre just after 4pm (WST).

WA police say investigations are under way into how the boy died and no further information was available.

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Bishop leads new push on Fiji

Fiji's transition back to democracy was high on the agenda when Julie Bishop met her NZ counterpart. Source: AAP

FOREIGN Minister Julie Bishop is leading a new push to bring Fiji in from the diplomatic cold and get bilateral relations back on track.

The Pacific island nation was high on the agenda when Ms Bishop held talks with New Zealand counterpart Murray McCully in Auckland on Wednesday.

"Our collective position, our joint position, is that we want to see a normalising of relations as soon as possible," Ms Bishop said after the meeting.

Ms Bishop has long argued that Australia should seek to re-engage with Frank Bainimarama's military-led regime, rather than seek to isolate it further.

While she wants to see Fiji hold credible elections as soon as possible, she has also signalled she would be willing to make concessions to encourage the transition back to democracy.

"We're very keen to identify the date of the proposed elections. Once we can establish when the elections will be held there are many things that we can offer," she said.

Fiji has pledged to hold elections by September 2014 but is yet to name a date.

AAP understands a further relaxing of Australia's sanctions could be on the table if Fiji makes progress in the coming months. New Zealand further relaxed its sanctions last month.

Ms Bishop met with Fijian Foreign Minister Ratu Inoke Kubuabola on the sidelines of a United Nations gathering in New York last week and is understood to be in regular contact with him.

She's also keen to see the two countries exchange senior envoys for the first time in four years.

The two nations agreed last year to exchange high commissioners, signalling a thaw in a relationship that has been frosty since military strongman Frank Bainimarama seized power in a 2006 coup.

The Gillard government last year appointed respected career diplomat Margaret Twomey to the role, and hoped she would begin in February.

Fiji initially agreed to the appointment but subsequently refused to let her into the country, effectively ending the new era in diplomatic relations before it began.

Ms Bishop has confirmed she still wants Ms Twomey, a senior officer with the Department of Foreign Affairs and Trade who served most recently as Australia's ambassador to Russia, to fill the position.

Fiji kicked out Australia's last high commissioner, James Batley, in 2009, accusing him of meddling in local politics.

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Holden deal a challenge, says minister

Federal Industry Minister Ian Macfarlane (C) says it will be a challenge to save car maker Holden. Source: AAP

IT will be "one hell of a challenge", but Federal Industry Minister Ian Macfarlane wants Holden to continue to build cars in Australia for the next 100 years.

He's not sure how much money the federal government can offer to help save the company or where it will come from and he's urged its US parent General Motors to be patient.

A deal, he says, could take some time and if it comes will be the last handout from the commonwealth.

The minister says everyone involved needs to put politics aside and understand that there will be "one shot at this".

"This is one hell of a challenge. One hell of a solution is required," Mr Macfarlane told reporters after touring Holden's plant in Adelaide on Wednesday.

Holden boss Mike Devereux welcomed the minister's commitment to finding a solution but declined to detail just what that might involve.

The company secured an agreement last year for $275 million in government funding but was now thought to need close to $500 million before committing to develop and build two new car models from 2016.

Mr Devereux says the tour and talks are about educating the minister on just how efficient the Elizabeth plant could be.

"This is a world-class facility, building world-class cars in a very difficult environment," he said.

"The discussions that we're going to have begin today and those discussions are likely to be ongoing."

South Australian Premier Jay Weatherill said the state government wanted Holden to have a secure future, not just for the benefit of the local economy, but to ease the concerns of thousands currently employed in the auto sector.

"There are people that are sitting around their kitchen tables at the moment just worrying about their futures," he said.

"We want to settle that. We want them to know they have a long-term future at this plant and in all the associated industries."

Mr Macfarlane says saving Holden is not just about money and the federal government intends to press on with a review of all car industry assistance by the Productivity Commission.

He says the government will also stand by its election policy to cut $500 million from auto industry support.

"It won't break the car industry. I'm confident I can get around that," he said.

"I'm not concerned about the next six months, I'm not concerned about the next three years.

"My goal is to see Australian cars built here for 100 years."

But the minister says the industry has to become internationally competitive and survive without ongoing government help.

"The next car plan I hand down will be my last car plan," he said.

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Fear grips west Myanmar, 5 Muslims killed

Sectarian violence in Myanmar's Rakhine state has claimed the life of a 94-year-old Muslim woman. Source: AAP

TERRIFIED women and children are hiding in forests and security forces are patrolling tense villages in western Myanmar, residents say, after sectarian clashes which left five Muslims dead.

President Thein Sein was expected to visit the violence-racked area as part of his first official visit to Rakhine state since a wave of religious bloodshed erupted there last year.

Sectarian bloodshed has overshadowed internationally praised political reforms and piled pressure on the former junta general, who took power in 2011.

The US said it was "deeply concerned" about the latest unrest and urged authorities to respond "decisively", in a statement issued by its embassy in Yangon.

Around 800 Buddhist rioters torched homes and attacked local Muslims in a village in the area of Thandwe on Tuesday, according to the authorities.

"The death toll rose to five - four men and a woman," a Rakhine police official who did not want to be named told AFP on Wednesday, adding that the victims were all killed during Tuesday's violence.

A 94-year-old Muslim woman, who suffered stab wounds, was among the dead.

Four Rakhine Buddhists were injured in clashes and a fifth was missing, while 59 houses and a mosque have been torched since tensions flared on Saturday, police said.

Around 250 people have been killed and more than 140,000 left homeless in several outbreaks of inter-religious violence around the country since June 2012, mostly in Rakhine.

A local Muslim official told AFP that police had fired warning shots but could not control the mob.

"We are disappointed that we have a government that is unable to provide security for us," the official, Myint Aung, told AFP.

"We are living in fear. Many people, including women and children, are hiding in the forest nearby," he said.

Thein Sein held meetings with members of Buddhist and Rohingya Muslim communities during his two-day tour.

In a message to a multi-faith conference, which was carried in state media on Wednesday, Thein Sein lamented "instigations fuelling minor crimes into conflicts between the two communities and two religions".

"Such instability based on religion and race harms and delays the state reforms and tarnishes the national image internationally," he warned.

Four major Myanmar Muslim organisations released an open letter to Thein Sein late Tuesday calling on the government to take urgent law-enforcement action.

"The concerns of minority Muslims around the country have reached peak levels. They feel they have no security," the letter said.

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SA Greens senator backs party leader

Greens Senator Sarah Hanson-Young (L) has reaffirmed her support for party leader Christine Milne. Source: AAP

SOUTH Australian Greens Senator Sarah Hanson-Young has reaffirmed her support for leader Christine Milne at the same time urging the party to reconnect with voters.

After her return to the federal parliament was confirmed on Tuesday, Senator Hanson-Young clarified comments she reportedly made after last week's party room meeting that backed Senator Milne as leader and Adam Bandt as her deputy.

A Fairfax Media report said Senator Hanson-Young commented that the party had just returned a leader who would have the Greens "marching to a slow death".

But she told reporters on Tuesday that her comments related to the party's results at the recent federal election and the need to reconnect with voters.

"We've got to refocus our energy, refocus our work as a party to reconnecting with voters for the next three years," she said.

"That's what those comments were in relation to."

Senator Hanson-Young said she endorsed last week's party room vote.

"I endorse the leadership team and I want to get on with reconnecting with voters," she said.

"Christine Milne was re-elected unopposed to lead our party. I support that."

But Senator Hanson-Young said that after an election result where the party had lost ground, it needed to find out what voters wanted to hear from the Greens.

"We can't be complacent about that," she said.

With the Senate result in SA finalised on Tuesday the Australian Electoral Commission said voters had elected two Liberal Senators, Corey Bernardi and Simon Birmingham, Labor's Penny Wong, Senator Hanson-Young, popular independent Nick Xenophon and Family First's Bob Day.

The big loser from the poll was sitting Labor Senator Don Farrell, who will lose his spot when the new Senate comes into effect in July.

Senator Hanson-Young said the new Senate, which would include candidates from the Australian Motoring Enthusiast Party and a number from the Palmer United Party, would be an interesting mix of people.

"But that's what the Australian people have delivered," she said.

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Two dead, six in hospital after NSW crash

TWO people are dead and six more are in hospital after a fiery truck crash on Sydney's northern beaches.

Witnesses have described the chaos that unfolded after the fuel tanker and cars collided on Mona Vale Rd at Mona Vale on Tuesday afternoon.

The tanker exploded, sending towering flames and billowing black smoke into the air.

Two people were killed and six people were taken to Royal North Shore Hospital, suffering injuries including head trauma and burns.

Three patients were in serious conditions while three others were stable, a NSW Ambulance spokeswoman said.

Mona Vale Road was closed as 10 ambulances and two emergency service helicopters rushed to the scene.

"It was like a bomb went off," said a local man who lives about 200 metres from the crash scene and only gave his name as Lee.

The 36-year-old told AAP that in the moments after the explosion there was "probably a fire trail 50 to 70 metres long".

He said that just after the truck crashed he saw the driver kick his way out of the windscreen.

"We told him to keep running," he said.

"He looked pretty bashed around.

"If it's only two people deceased its a miracle."

NSW Ambulance Deputy Commissioner Mick Willis said the first paramedics to arrive were confronted with a horrific scene.

Police are still investigating what caused the crash.

"We really are in the early stages of investigation and it is a challenging scene as you can see," Manly Police Superintendent Dave Darcy told reporters at the crash site.

According to NSW Roads and Maritime, in the past 17 years there have been five fatal crashes on the stretch of road.

Mona Vale Road remained closed on Tuesday night between Pittwater Rd and Powder Works Rd.

Motorists were being advised to use Pittwater Road, Wakehurst Parkway and Forest Way instead.

Bus routes 182, 185 and 197 are also being diverted away from Mona Vale Road.

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Winds batter NSW and Vic, man dies on roof

A SYDNEY man has been apparently electrocuted and roofs have been ripped from houses as high winds lash NSW and Victoria.

NSW Police found a 31-year-old man injured on the roof of a Bexley property about 3.30pm (AEST) on Tuesday.

Paramedics tried to resuscitate the man, but he died at the scene.

Police said initial inquiries suggest electricity may have played a part.

The strongest winds in the state were recorded at Thredbo where a gust clocked in at 135 km/h.

However, winds of up to 140 km/h have battered Victoria bringing down powerlines and trees.

Electricity companies are battling tough weather conditions as they continue to restore power to almost 19,000 properties throughout the state.

More than 150,000 homes and businesses experiencing outages early on Tuesday.

Thousands of homes and businesses throughout NSW were also hit by power blackouts.

The State Emergency Services (SES) in NSW and Victoria have received a flood of calls as a result of the wild weather.

Since 8am, the NSW SES has responded to 700 jobs, most of which are for roof damage and fallen trees.

The Central Coast is one of the worst hit areas and a home in Long Jetty had its roof ripped off.

SES spokeswoman Danielle Wearne said the roof damaged other homes and ended up in the middle of a road.

A roof was also ripped off a home at Avalon on the Northern Beaches and at a mosque on the Central Coast.

The SES said a large tree had come down on a house on NSW's south coast and another tree had partially blocked the Princes Highway at Batemans Bay.

SES Victoria were called to about 3500 jobs on Monday night and Tuesday.

Altona, Frankston and Wyndham were among the worst hit areas in greater Melbourne, SES spokesman Toby Borella said.

"Fairly widespread, lots of trees down, lots of traffic hazards, lots of building damage as well, as a result of these damaging winds," he told AAP.

A severe weather warning for damaging winds is still in place for southeastern NSW and the ACT.

However, Bureau of Meteorology forecaster Chris Webb said winds had already eased.

"The winds have already eased pretty significantly but the back edge of the front is still going through with the possibility of wind gusts in the next one or two hours but it will ease off in the evening," he said.

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US health insurance program rolls out

MILLIONS of Americans will be able to shop for the first time on the insurance marketplaces that are at the heart of President Barack Obama's health care reforms.

They are entering a world that is supposed to simplify the mysteries of health coverage but could end up making it even more confusing, at least initially.

Whether consumers will be pleased with the experience, the premiums and the out-of-pocket costs of the plans offered to them will finally start to become clear.

Tuesday's rollout comes after months of build-up in which the marketplaces, also known as exchanges, have been both praised and vilified.

Illustrating the heated political disagreements over the law, the opening of the exchanges comes the same day as the shutdown of the federal government, led by congressional Republicans who want to block the health insurance reforms from taking effect.

The shutdown will have no immediate effect on the insurance marketplaces that are the backbone of the law, because they operate with money that isn't subject to the annual budget wrangling in Washington.

The marketplaces opening in all 50 states represent a turning point in the US approach to health care, the biggest expansion in coverage in nearly 50 years.

The Obama administration hopes to sign up seven million people during the first year and has a goal of eventually signing up at least half of the nearly 50 million uninsured Americans.

But if people become frustrated with predicted glitches in the computer-based enrolment process and turn away from the program, the prospects for Obama's signature domestic policy achievement could dim.

"The promise of the law is that no one will go bankrupt because of medical bills," said Neera Tanden, president of the Center for American Progress, which helped work for passage of the law. "It won't happen in the first day or the first year. But when the law is fully operational, it will provide an economic benefit to roughly 30 million Americans."

Tanden cautioned against rushing to judge the marketplace's success on its first-day performance.

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Qld draws line in the sand for bikies

Queensland plans to ban bikies who break the law from gathering in groups and wearing colours. Source: AAP

QUEENSLAND'S government has "drawn a line in the sand" for Gold Coast bikies, but it could get washed away like the glitter strip's beaches.

Attorney-General Jarrod Bleijie wants to ban bikies who break the law from gathering in groups, wearing colours and working in or owning tattoo parlours.

He also wants to confiscate their motorbikes and vehicles.

"We have drawn a line in the sand and said enough is enough," Mr Bleijie told reporters on Monday.

The government has cracked down after two bikie brawls in the popular tourist area on Friday night.

An extra 50 officers will be on the Gold Coast every day for the next month and Police Minister Jack Dempsey will also push the federal government to enact tougher unexplained wealth and firearms laws.

"These criminals, they don't have boundaries and we can't just set up a temporary fence around Queensland," Mr Dempsey said.

Deputy Premier Jeff Seeney was expecting legal challenges to the proposed laws, but said the government was ready for them.

He said the proposed laws would be put to parliament in two weeks.

When asked if the laws would intimidate bikie gangs, Mr Seeney said: "Yes, yes I do. We will pursue them."

But Bond University bikie gang expert Dr Terry Goldsworthy poured cold water on the government's "line in the sand" saying tougher laws would not deter hardcore bikie criminals.

"The more you make these people notorious, the more attraction (there is) to the outlaw psyche," he said.

"You can say to them we're going to ban your colours and we're going to bring in more draconian laws, it'll just add to their mystique."

Dr Goldsworthy added that the only way to fight bikies was by beefing up Gold Coast police numbers for an extended period of time.

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Stuntwoman gives cruising a new edge

P&O have used a stuntwoman to draw attention to its new adventure program on its cruise ships. Source: AAP

CRUISING has traditionally been viewed as a fairly sedate holiday option but on Monday P&O launched a bid to change that image - with the help of a stuntwoman.

Janene Carleton, who has performed stunts for the likes of Angelina Jolie and Jessica Biel, sped upside-down on a zip line across the Pacific Jewel's Level 14 deck as the ship stood at Sydney's White Bay terminal.

Carleton not only hooked herself to the zip line, she also posed for a Titanic moment, arms spread out at the bow of the ship, in imitation of the famous scene in James Cameron's 1997 film.

It was all to publicise the cruise company's new P&O Edge program, which gives thrill-seeking passengers on the Pacific Jewel the chance to climb, swing, race and jump.

The ship offers 20 activities including a funnel climb, flying-fox lines, high rope swings, laser tag, slack lines and Segway obstacle courses.

"We're proud to offer passengers the most comprehensive range of onboard adventure activities ever seen in the cruising world," said Ann Sherry, head of P&O Cruises.

"Whilst other cruise lines offer passengers a limited selection of activities, P&O Edge is the first to roll out a fully integrated program - something we're confident our passengers will love."

The program of activities caters for all ages, said John Sharpe of Pacific Adventures, who devised the P&O Edge program to incorporate many of the ship's existing features.

At the moment the program is available on Pacific Jewel cruises but P&O has plans to roll it out in 2014 across its fleets.

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Three boats reach Australia in past week

Three boatloads of suspected asylum seekers have been intercepted by authorities in the past week. Source: AAP

THREE boatloads of suspected asylum seekers have been intercepted by Australian authorities in the past week, and 128 people have been sent for offshore processing in line with the government's new measures to combat people smuggling.

The first vessel was found on Tuesday carrying 18 people from India, who are being interviewed in Darwin, Operation Sovereign Borders acting commander Air Marshall Mark Binskin told reporters on Monday.

The group is expected to be returned to India.

Seven West Papuans were dropped off on an Australian island in the Torres Strait on Wednesday.

"All seven persons were returned to Papua New Guinea on Thursday," Air Marshall Binskin said.

On Thursday, 70 people from a third boat were transferred to detention on Christmas Island.

Air Marshall Binskin was giving an update on border protection operations on Monday where he said 128 asylum seekers had been transferred to offshore processing centres on Manus Island and Nauru during the week.

He made only brief reference to a vessel intercepted overnight on Sunday, which carried 78 people, but was detected outside the weekly reporting period.

Immigration Minister Scott Morrison said the arrivals for the latest period included two nationality groups, which were subject to a different process to asylum seekers automatically taken to Manus Island or Nauru.

"A first group of Indian nationals is currently being interviewed by their own consular officers in Darwin and they will be removed directly back to India," Mr Morrison said.

"A second group of West Papuans were transferred back to PNG on Thursday within 24 hours of arrival under a concession provided by the PNG government under a 2003 memorandum of understanding put in place by the Howard government, to enable returns in these circumstances."

The group of seven West Papuans, believed to be a family including one child, arrived on Boigu Island on Wednesday by speedboat and said they feared persecution after being returned to PNG.

Mr Morrison said he had reached a formal agreement with his PNG counterparts to ensure the prompt return of other asylum seekers who arrived in Australia by similar circumstances.

During his visit last week to Manus Island, Mr Morrison delivered a "clear message" to detainees.

"They will not be getting what they came for," he said.

"They would remain there at that centre until they went home, or were settled in a country other than Australia.

"I confirmed that the new government had implemented a more comprehensive and strengthened set of measures that we would not be putting up with people coming to Australia illegally by boat and that they should warn others not to follow them."

Under the government's policy, asylum seekers are moved from Christmas Island to offshore detention facilities within 48 hours of their arrival.

Mr Morrison said the target was being achieved and "working well", and health checks were being undertaken.

"The most important for their welfare is their fitness to fly," he said.

Asked about vaccinations, Mr Morrison said it was his understanding these were being done on Manus or Nauru.

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Typhoon hits Vietnam, dozens missing

More than 70 people are missing after three boats sank in a powerful typhoon in the South China Sea. Source: AAP

VIETNAM has evacuated tens of thousands of people from coastal areas as a powerful typhoon that left dozens of fishermen missing in the South China Sea slammed into the country.

China deployed navy warships and aircraft to search for survivors after three Chinese fishing boats sank in rough waters whipped up by Typhoon Wutip.

More than 70 people were missing, Beijing's official Xinhua news agency reported on Monday, citing maritime authorities.

Vietnam closed schools, ordered all boats ashore and moved some 70,000 people to shelters in vulnerable areas along its central coastline, as high winds and heavy rains uprooted trees and tore the roofs off houses.

Wutip made landfall on Vietnam's central coast soon after 5pm (2000 AEST), packing winds of up to 103 kilometres per hour and gusts of up to 133km/h, Vietnam's National Hydro-Meteorological Forecasting Centre said.

Authorities scrambled to move people from areas at risk of landslides and flash floods, as soldiers joined efforts to build walls of sandbags around coastal villages.

"We have evacuated thousands of people, prepared vehicles, mobilised 5000 police and soldiers," Nguyen Duc Cuong, a local communist party official in Quang Tri province, told state-run VTV.

Torrential rain and strong winds battered neighbouring Quang Nam province, with the popular tourist town of Hoi An also affected by heavy flooding.

"This is a big typhoon with strong wind and heavy rain and we urge people to stay overnight in shelters," Nguyen Van Bong, an official in nearby Ky Anh district, told state television.

Local authorities will be "on duty around the clock" to ensure the area's reservoirs and vast hydro-electric dams are not damaged or made unsafe by the typhoon, he added.

People in central Vietnam said that there were already sporadic power cuts in several districts.

Vietnam is hit by an average of eight to 10 tropical storms every year, often causing heavy material and human losses, as well as frequent flooding.

In recent weeks floods have killed at least 24 people in Vietnam and claimed 30 lives in Cambodia, as well as 22 in Thailand.

Cambodian police said four people - believed to be Syrians, including two children - died late on Sunday when their car was swept away in floodwaters.

In China, President Xi Jinping called for an "all-out rescue effort" urging local authorities to "do their utmost to find the missing or stranded and minimise casualties" caused by the typhoon, Xinhua said.

Rescue efforts had been hampered by strong gales and high waves, it said.

The Chinese boats, which were together carrying 88 fishermen, sank after they attempted to navigate gales near the disputed Paracel Islands, about 330 kilometres (200 miles) from China's southern coast.

China's maritime authority on Sunday raised its alert on the typhoon to orange, its second-highest of four levels, Xinhua reported.

Storm tides might strike the provinces of Guangdong, Hainan and Guangxi, it added, citing the National Marine Environmental Forecasting Centre.

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Morrison rejects claims of boat delay

The Greens want an inquiry into the government's delayed response to the latest asylum seeker boat. Source: AAP

IMMIGRATION Minister Scott Morrison has defended Australia's response to an asylum seeker boat that sank off Indonesia as survivors claim the tragedy could have been prevented.

With Prime Minister Tony Abbott flying to Indonesia on Monday for his first overseas visit, his government is under fire for its handling of the disaster, which left up to 50 people dead or missing.

Indonesian authorities say there is little hope of finding more survivors from the boat that sank off Java on Friday, with searchers being hampered by rough seas on Sunday.

Twenty-eight people, including seven children, have so far been confirmed dead while more than 20 remain missing.

One survivor told ABC TV that a GPS location was sent to Australian authorities when multiple distress calls were made on Thursday.

"We called the Australian government for 24 hours. They were telling us 'we're coming, we're coming, we're coming', and they didn't come," he said.

"This is because of the Australian government. I want them to know that," he said of the tragedy.

The survivor has also implicated Indonesian authorities as playing a role in getting passengers to the boat.

"The army took us," he told the ABC. "The army was driving the cars."

A spokesman for Mr Morrison said suggestions Australian authorities were slow to act were "absolutely and totally wrong".

"The government completely rejects allegations of a 26-hour delay in response to this tragic incident by Australian agencies," Mr Morrison's office said in a statement issued on Sunday.

"Australian agencies acted on the information provided on this tragic incident."

Mr Morrison said initial searches failed to find the boat, which was reported to be about 25 nautical miles off the Indonesian coast.

"The Australians who work for our rescue and border protection agencies respond to all such events with great professionalism and a keenly felt sense of duty, as they did on this occasion," the statement said.

"This is a tragic event. The Australian government's thoughts and sympathies are with those affected by this tragedy. The government will continue to provide any assistance required by the Indonesian government."

Australian Greens leader Christine Milne called for an immediate inquiry into the government's involvement in the "heartbreaking" tragedy.

"I would expect that to happen before the next parliament sits," Senator Milne told Sky Agenda on Sunday.

Labor leadership candidate Bill Shorten criticised the Abbott government's approach to asylum seekers, saying "sooner or later they're going to work out that three-word slogans don't solve issues, and don't solve refugees or immigration".

People smuggling is expected to be high on the agenda when Mr Abbott meets with Indonesian President Susilo Bambang Yudhoyono in Jakarta.

Indonesia's foreign minister Marty Natalegawa last week warned any violation of his country's borders could damage neighbourly relations, in a pointed criticism of the coalition's policy to turn back the boats.

Mr Shorten accused the coalition of "bagging" Indonesia in the stand-off over asylum seeker policy.

"One of the key platforms or planks to making sure we've got a safe and sustainable policy is to have a good relationship with Indonesia," he told ABC television.

"I'm not sure that getting out and bagging the Indonesians is really helpful.

"If they can't work out that Indonesia and working co-operatively with Indonesia's important to handling the challenging issues of asylum seekers and refugees, then that's a worry."

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NSW firefighters contain most fires

FIREFIGHTERS have managed to contain a majority of the 60 bushfires burning across NSW after a day of favourable conditions.

The Rural Fire Service expects the milder temperatures and slight winds to flow into Monday but Tuesday could see more winds.

"There has been an indication from the Bureau (of Meteorology) that Tuesday may be warm and windy," RFS spokesman Brendan Doyle said.

"But we are keeping a close eye on these conditions tomorrow..."

On Sunday, firefighters remained at the Barrenjoey Headland on Sydney's Northern Beaches where a blaze broke out a day prior and threatened an iconic lighthouse.

Fire crews managed to save the structure but a nearby cottage sustained some damage.

Visitors to the headland were warned to shelter near its historic lighthouse after an access trail was cut off but no one was injured.

The fire burned through 17 hectares of bushland around Summer Bay, made famous in the long-running television soapie Home and Away.

There are still 60 fires burning across the state, but Mr Doyle said only 25 were uncontained and not threatening properties.

One major fire is still burning in the Great Lakes area.

The blaze burning through forested country near Bulahdelah has burnt more than 458 hectares.

Residents in the Markwell Valley area are urged to know what to do if the fire impacts property.

Meanwhile, a RFS truck returning from battling a blaze on the Northern Tablelands crashed on Sunday.

The truck, driving through thick smoke and haze, left the road and crashed into a tree, police said.

The driver was taken to Walcha Hospital with minor injuries.

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Kings Of Leon's new album debuts at No.1

Kings of Leon have landed their third consecutive No.1 album on the ARIA chart. Source: AAP

KINGS of Leon have landed their third straight No.1 on the ARIA albums chart after their new album Mechanical Bull debuted at the top.

The Nashville rockers' sixth studio release bumps off Keith Urban's album Fuse, which drops down two spots to No.3.

Another new entry is Drake's Nothing Was the Same at No.2, which becomes his first Top 10 entry and highest charting album all in the same week.

Jason Derulo's third album Tattoos has debuted at No.5, becoming his third Top 10 album.

Jack Johnson is down three places to No.6 with From Here to Now to You, while the fourth Top 10 debut is Jessie J with Alive at No.7.

Pink's The Truth About Love has dropped two spots to No.8 and Rudimental's Home moves up five places to No.9.

Avicii's album True plummets eight places round out the Top 10.

Meanwhile Katy Perry's Roar has spent another week at No.1 on the singles chart.

The top three all hold steady this week, with Miley Cyrus at No.2 with Wrecking Ball and Redfoo at No.3 with Let's Get Ridiculous.

The big mover is John Newman with Love Me Again, which charges up four places, pushing Derulo's Talk Dirty down to No.5.

OneRepublic spends a third straight week at No.6 with Something I Need, Lana Del Rey is down a couple of places to No.7 with her Summertime Sadness and Drake climbs a place to a new peak of No.8 with Hold On, We're Going Home.

Avicii has slipped to No.9 with Wake Me Up, while Lorde is back up two places to No.10 with her EP The Love Club feat Royals.

AUSTRALIAN SINGLES CHART

1(1) Roar - Katy Perry (CAP/EMI)

2(2) Wrecking Ball - Miley Cyrus (RCA/SME)

3(3) Let's Get Ridiculous - Redfoo (INR/UMA)

4(8) Love Me Again - John Newman (ISL/UMA)

5(4) Talk Dirty - Jason Derulo Feat. 2 Chainz (WAR)

6(6) Something I Need - OneRepublic (INR/UMA)

7(5) Summertime Sadness - Lana Del Rey vs Cedric Gervais (INR/UMA)

8(9) Hold on, We're Going Home - Drake Feat. Majid Jordan (UNI/UMA)

9(8) Wake Me Up - Avicii (UNI/UMA)

10(12) The Love Club Feat. Royals - Lorde (UNI/UMA)

AUSTRALIAN ALBUMS CHART

1(-) Mechanical Bull - Kings Of Leon (RCA/SME)

2(-) Nothing Was The Same - Drake (UNI/UMA)

3(1) Fuse - Keith Urban (CAP/EMI)

4(3) AM - Arctic Monkeys (DOM/EMI)

5(-) Tattoos - Jason Derulo (WAR)

6(3) From Here to Now to You - Jack Johnson (UNI/UMA)

7(-) Alive - Jessie J (UNI/UMA)

8(6) The Truth About Love - Pink (RCA/SME)

9(14) Home - Rudimental (WAR)

10(2) True - Avicii (UNI/UMA)

AUSTRALIAN STREAMING CHART

1(1) Roar - Katy Perry (EMI)

2(2) Wrecking Ball - Miley Cyrus (SME)

3(3) Wake Me Up - Avicii (UMA)

4(4) The Love Club EP - Lorde (UMA)

5(6) Counting Stars - OneRepublic (UMA)

6(5) Talk Dirty - Jason Derulo Feat. 2 Chainz (WAR)

7(9) You Make Me - Avicii (UMA)

8(7) Burn - Ellie Goulding (UMA)

9(8) La La La - Naughty Boy Feat. Sam Smith (EMI)

10(10) Blurred Lines - Robin Thicke Feat. T.I. & Pharrell (UMA)

AUSTRALIAN COUNTRY CHART

1(1) Fuse - Keith Urban (CAP/EMI)

2(2) The Very Best Of Slim Dusty - Slim Dusty (EMI)

3(-) The Buegrass Album - Alan Jackson (SME)

4(3) The Great Country Songbook - Troy Cassar-Daley & Adam Harvey (SME)

5(-) A.M - Chris Young (RCA/SME)

6(6) Red - Taylor Swift (BIG/UMA)

7(3) 40 Years Of Pride - Charley Pride (RCA/SME)6 (WAR)

8(6) A Hell Of A Career! - John Williamson (WAR)

9(7) Crash My Party - Luke Bryan (CAP/EMI)

10(8) The Story So Far - Keith Urban (CAP/EMI)

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Italy grapples with new Berlusconi crisis

Five cabinet ministers from former Italian PM Silvio Berlusconi's party have quit the government. Source: AAP

ITALY is mired in a fresh political quagmire after Silvio Berlusconi pushed his party's ministers to quit the fragile coalition government, a move Prime Minister Enrico Letta has called a "crazy act".

All five ministers from the People of Freedom (PDL) party on Saturday took the decision to step down at Berlusconi's urging, said deputy prime minister Angelino Alfano, the number two in government who was among the resignations.

Italy newspapers put the blame for the new government crisis squarely at the ex-prime minister's feet.

"The convict has made Italy fail," read the headline in the leftist daily Il Fatto Quotidiano, alluding to Berlusconi's conviction for tax fraud.

The centre-right La Stampa and business newspaper Il Sole 24 Ore decried "the madness" of the actions taken by the media mogul who has dominated Italian politics for most of the last two decades.

The flamboyant billionaire, who turns 77 on Sunday, dismissed as "unacceptable" a demand by Letta on Friday for parliament to express support for the government next week, in a bid to end a crisis that has plagued the bickering ruling coalition.

Now President Giorgio Napolitano will have to mediate to find a way out of the latest political impasse. He is expected to meet Letta on Sunday.

Letta's government was cobbled together following a two-month stand-off after an inconclusive general election in February.

The premier of the centre-left Democratic Party (PD) had won the confidence of financial markets by managing to keep together the improbable right-left coalition.

Italian media on Sunday speculated that if the crisis deepens there could be a reversal in market confidence, making it harder for Italy to deal with its economic difficulties and enact needed reforms.

The revolt among Berlusconi's backers boiled over on Thursday when they first threatened to resign over the former leader's legal problems.

A Senate committee was preparing to vote on whether to eject Berlusconi from the chamber after he was sentenced to a year in prison for tax fraud, a ruling that was upheld by Italy's top court in August.

Letta on Friday told a cabinet meeting tasked with approving key measures to rein in the recession-hit country's budget deficit that no further legislation would be enacted until the political crisis was resolved.

The cabinet had convened to determine how to delay a controversial planned rise in value-added tax, but the meeting ended in disarray amid the escalating tension over Berlusconi's conviction.

As a result, the VAT hike from 21 per cent to 22 per cent will go ahead, with effect from Tuesday, as economists worry that it will dampen consumption.

In encouraging the PDL ministers to resign, Berlusconi said they should not be "complicit in the latest vexation imposed on Italians by the left".

Letta retorted: "To try to justify his crazy and irresponsible act, aimed fully at protecting his personal interests, Berlusconi is... using the VAT as an alibi."

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