Downer elected SA Liberal party president

Former foreign minister Alexander Downer has been elected president of the Liberal Party in SA. Source: AAP

FORMER foreign minister Alexander Downer has been elected unopposed as the president of the South Australian Liberal Party.

Mr Downer replaces Grant Chapman who has held the position for the past three years.

His appointment was confirmed at the party's annual meeting in Adelaide on Saturday.

Mr Downer said the challenge for the party was to ensure the election of a Liberal government in South Australia in March next year.

"In the last few months this party has shown rather surprising, but very welcome, unity," He said.

"If we can maintain this sense of unity, focus on a single goal and a determination to achieve that goal then we'll have a great victory."

Mr Downer said the election would not be easy and the party had to ensure it retained its marginal seats and picked up marginal seats from the Labor government.

At the last election in 2010 the Liberals won the popular vote but failed to win a number of key seats it needed to form government.

"So it's not about the number of votes, it's about the number of seats," Mr Downer said.

Prime Minister Tony Abbott congratulated Mr Downer on his appointment, describing the former minister as one of the great performers in former prime minister John Howard's government.

"I know he is absolutely the man to lead and guide the party as you approach the vital (state) election in March of next year," Mr Abbott told the annual meeting.

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Vic house prices soar to record highs

Melbourne house prices have hit record levels after a successful three month period on the market. Source: AAP

MELBOURNE house prices have reached record levels after a successful three month period on the property market.

The city's median house price jumped nearly nine per cent to $595,000 in the September quarter, figures from Real Estate Institute of Victoria (REIV) suggest.

The median house price was $35,000 higher than the previous peak of $559,000, recorded in December 2010.

REIV chief executive officer Enzo Raimondo said buyers are taking advantage of low interest rates resulting in the increased demand.

"Sustained growth in previous quarters has also instilled further confidence in the property market in Melbourne," Mr Raimondo said.

He warns that this level of growth may not be sustained over an extended period of time.

Melbourne's units and apartments reported steady growth of 4.8 per cent, to $481,500. Homes in Balwyn recorded the biggest price hike, with a 26.8 per cent rise to $369,600 in three months.

Suburbs with the strongest growth in median prices this quarter were Balwyn, Brighton East, Ascot Vale, Balwyn North, and Footscray.

The median house price in regional Victoria saw a 0.8 per cent increase to $308,000 with Geelong, Ballarat and Bendigo the key regional centres for buyers.

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No charges for driving on US jet survivor

A firefighter who ran over and killed a survivor of the Asiana Airlines crash will not be charged. Source: AAP

THE US firefighter who ran over and killed a survivor of the Asiana Airlines crash in San Francisco was unaware she was responsible for the girl's death at the time of the incident.

San Mateo County District Attorney Steve Wagstaffe said on Friday that the firefighter was responding to the burning Boeing 777 when the truck she was driving unknowingly rolled over Ye Mengyuan.

Investigators believe Ye was laying prone on the tarmac and covered in firefighting foam.

Wagstaffe said Duckett would not be charged criminally.

The San Francisco Fire Department chief declined to discuss the 16-year-old's death, but said in a prepared statement that firefighters likely saved the lives of many critically wounded passengers.

In all, 304 of the 307 people aboard the Boeing 777 survived the July 6 crash.

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Man charged over Sydney box cutter attack

A man has been charged with stabbing another man with a box cutter in a car park in Sydney. Source: AAP

A MAN has been charged with stabbing another man with a box cutter in a car park in Sydney's southwest.

Police say the two men aged 28 and 30 met in the car park in Lakemba last Monday, apparently to discuss an argument they'd had the previous day.

The younger man was allegedly stabbed multiple times in his head and body but managed to drive himself home and was taken to hospital where he got stitches.

The 30-year-old was arrested and charged on Friday.

He is due to appear at Parramatta Bail Court on Saturday.

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Activist Malala meets Queen at reception

The Pakistani schoolgirl shot in the head by the Taliban met with the Queen at Buckingham Palace. Source: AAP

SCHOOLGIRL Malala Yousafzai, who survived an assassination attempt by the Taliban, spoke to the Queen about the importance of education when they met at Buckingham Palace.

The 16-year-old was shot in the head in Pakistan last October after campaigning for the right of girls to go to school without fear, in a part of the country where Islamic fundamentalists were trying to impose a strict form of Sharia law.

Malala was one of the guests at a reception for commonwealth, youth and education hosted by the Queen and the Duke of Edinburgh on Friday.

She was reduced to laughter by a comment from the Duke, who quipped that in the UK, people want children to go to school to get them out of the house. Malala covered her face while in a fit of giggles at his joke.

The teenager, accompanied by her father Ziauddin, gave the Queen a copy of her book, I Am Malala, during their meeting in the palace's White Drawing Room, telling her: "It is a great honour for me to be here, and I wanted to present you with this book."

Accepting the gift, the Queen replied: "That's very kind of you."

Malala told the Queen she was passionate about every child having a right to an education, everywhere around the world.

She added: "Especially in this country as well.

"I have heard about many children that can't go to school, and I want to continue our work."

Ziauddin Yousafzai also spoke to the Queen and Duke about their past visits to his home country.

Malala was flown from Pakistan to the UK for emergency treatment after the attack. Surgeons who treated her said she came within inches of death when the bullet grazed her brain in the attack on a school bus.

She was treated at Queen Elizabeth Hospital in Birmingham and has now settled in the city with her family. Since the attack, she has addressed the United Nations and been nominated for the Nobel Peace Prize.

Princess Beatrice and the Duke and Duchess of Gloucester were also present at the reception, attended by 350 guests from academic institutions around the world.

It included a performance from the Commonwealth Youth Orchestra and choir.

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Stars help open US performing arts centre

LA's Wallis Annenberg Center for the Performing Arts has been opened with a black-tie gala. Source: AAP

MOST community performing-arts centres open with the mayor in attendance, maybe a few local business owners.

Not in Beverly Hills.

The opening of the city's Wallis Annenberg Center for the Performing Arts was celebrated with a black-tie gala on Thursday night that drew scores of stars, including Kevin Spacey, Charlize Theron, Jodie Foster, Amy Adams, Demi Moore, an apparently pregnant Gwen Stefani, her husband Gavin Rossdale and many others.

"It's such an artistic community here," said Adams, who sat near actress Maria Bello.

"It's really nice to bring the arts that inform the film community to Beverly Hills. It's nice to have it in our backyard."

Joe Jonas, Josh Duhamel, Sherry Lansing, Nicole Richie, Courteney Cox, James Caan, Jason Bateman and Suzanne Somers also attended the opening-night gala. The mayor of Beverly Hills was on hand, too, thanking the centre's namesake benefactor for "saving our city from being a cultural wasteland."

The new facility, which has been under construction for a decade, takes over the city's original 1933 post office building. It now boasts two theatres and will host concerts, plays, dance performances and drama classes for young people.

Keeping with the building's original theme, Spacey, John Lithgow and Diane Lane helped inaugurate the new 500-seat Goldsmith Theater by reading letters from Groucho Marx, Tennessee Williams, Peter Tchaikovsky and others.

A dinner of filet mignon over white truffle risotto followed the performance, along with a fashion show by event sponsor Salvatore Ferragamo and a performance by Italian tenor Vittorio Grigolo.

Public performances by the Martha Graham Dance Company begin at the Wallis centre next month.

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Cat loses leg after being shot in WA

The RSPCA is investigating after a cat's leg was amputated after being shot with a rifle in WA. Source: AAP

AN 18-month old cat has lost a leg after it was shot with a rifle in Western Australia.

Stella was found limping by her owner when she returned to her Broome home on Thursday, the RSPCA says.

Bullet fragments were found in the cat's right front leg by a vet.

"Due to the severity of its injuries the leg had to be amputated," RSPCA chief David van Ooran said in a statement.

"Stella the cat is currently recovering well and should be well enough to go home (on Saturday)."

Mr van Ooran added he was "disgusted to see defenceless animals being deliberately killed or injured."

The RSPCA is also investigating the shooting of a horse with a shotgun and cases where dogs, pelican, ducks and cats were shot with arrows.

"Penalties for this kind of offence can range from a $2000 minimum fine up to a $50,000 fine and five years' imprisonment," Mr van Ooran warned.

Anyone with information about the animal attacks is asked to contact the RSPCA.

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Sun reporter charged with MP's phone theft

A BRITISH tabloid reporter and a member of the public are facing charges linked to the theft of a mobile phone belonging to a member of parliament.

Sun journalist Nick Parker is accused of one count of receiving stolen goods and one of unauthorised access to computer material, while Michael Ankers, 29, faces one count of theft.

"The CPS has today authorised the Metropolitan Police to charge Nick Parker with one offence of receiving stolen goods and one offence of unauthorised access to computer material," said Gregor McGill, a senior lawyer at the Crown Prosecution Service (CPS).

"We have also authorised the police to charge Michael Ankers, 29, from southwest London, with theft."

Both men will appear at Westminster Magistrates' Court on November 6.

The full charges that Parker, 52, from Twickenham, faces allege that between October 17 and 21, 2010 he dishonestly received stolen goods, namely a mobile phone belonging to MP Siobhain McDonagh.

He is also charged with causing a computer to perform a function with intent to secure unauthorised access to a program or data held in a computer, knowing that such access was unauthorised.

It is alleged that Ankers stole the mobile phone on or around October 17, 2010.

McGill said prosecutors had decided there was insufficient evidence to charge another suspect in relation to the case.

Labour MP McDonagh, who has represented Mitcham and Morden since 1997, had her mobile phone stolen from her car in Colliers Wood in southwest London on October 17, 2010.

The accusations against Parker and Ankers bring the number of people charged under Operation Tuleta, a Scotland Yard investigation into claims linked to various alleged privacy breaches, to three.

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Malaysia must back off threats: Xenophon

INDEPENDENT Senator Nick Xenophon has called on the government to press Malaysia to back off threats against students who attend an event featuring opposition leader Anwar Ibrahim this weekend.

Senator Xenophon said the level of paranoia from the Malaysian government was just extraordinary.

"The Australian government needs to make it absolutely clear to the Malaysian government as a matter of urgency some time on Friday that these threats are completely unacceptable," he told ABC's 730 on Thursday.

"These students have a right to attend this forum involving Malaysia's opposition leader without any fear of retribution."

Mr Ibrahim, a longtime opponent of the Malaysian government who was jailed for nine years on trumped up sodomy charges, will speak at the Adelaide Festival of Ideas on Saturday.

But Malaysian students in Australia had been warned against attending.

An email from the student adviser at the Malaysian consulate in Sydney reportedly told Malaysian scholarship students to stay away.

"I wouldn't hesitate to take stern action to those scholars who are involved. You know really well what you have signed into," the email said, according to ABC television.

Senator Xenophon, who was barred from entering Malaysia in February and is now banned from returning there, said Mr Ibrahim was an impressive figure who had been jailed, victimised and defamed by the Malaysian government.

"There needs to be a guarantees by the Malaysian government that this threat will be withdrawn and there will be no consequences," he said.

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Nestle posts 4 per cent rise in sales

Nestle has posted a modest four per cent increase in sales for the first nine months of 2013. Source: AAP

SWISS food and drink giant Nestle has posted a modest four per cent increase in sales of dozens of its household name brand products for the first nine months of 2013.

The Vevey, Switzerland-based company, whose business reflects the global economy, said on Thursday it had sales of 68.4 billion Swiss francs ($A78.22 billion) through September, up from a restated 65.7 billion Swiss francs during the same period in 2012.

The world's biggest food and drink company had previously reported its nine-month sales in 2012 as 67.6 billion Swiss francs through September, up from 60.9 billion during the same period in 2011.

"Our real internal growth has regained momentum and is broad-based across categories, price points and geographies. Most notably, Europe continues to grow and Asia and Africa have picked up speed," Nestle Chief Executive Paul Bulcke said.

The news sent shares in Nestle up by more than two per cent to 63.30 francs in Thursday morning trading.

But the maker of Nescafe, Jenny Craig and Haagen-Dazs, which last year at this time reported that its sales growth had slowed to 11 per cent in the first nine months of 2012, acknowledged some headwinds in a statement issued before the opening of the Zurich exchange.

"Today's challenging environment is the right time for us to further reinforce the fundamentals of our business: those which drive growth like innovation, distribution and consumer engagement, and those which drive operational performance like strengthening our portfolio, improving our resource allocation and increasing our structural efficiency," Bulcke said.

"We expect our continued growth momentum to enable us to deliver around five per cent organic growth for the full year," he added, "together with an improvement in margins and underlying earnings per share in constant currencies."

Earlier this year, Nestle had cautioned that it might not be able to meet its usual target of between five to six per cent annual organic growth, a measure that removes the costs from recent acquisitions and fluctuations in currency.

In its biggest market, North America, Nestle said sales continued to grow particularly for frozen meals, pizza and snacks, despite the tough economic environment. It said cereals, Kit Kat bars, Nescafe and pet care were doing well in Latin America, despite the economic slowdown from inflationary pressures.

Europe's weak consumer demand and deflationary pressures were affecting sales, and poor summer weather resulted in a short season for ice cream, Nestle said, though Britain, Austria, Germany and Switzerland were holding up better than other areas.

There was a continuing general economic slowdown across emerging markets in Africa, Oceania and the Middle East, where local conflicts and civil disturbances disrupted several markets though Central and West Africa, and Indonesia saw strong sales growth, Nestle said.

China's sales also continued to grow, the company said, but in a somewhat slower trading environment.

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NT education minister booed at rally

HUNDREDS of protesters have shouted down the Northern Territory's education minister at a rally against cuts to education funding.

About 500 teachers, parents, and supporters gathered in front of Darwin's Parliament House on Thursday to protest against the loss of 35 teacher positions.

The NT has the worst educational outcomes in Australia, and despite significant financial investment over the past five years there hasn't been any notable improvement, Education Minister Peter Chandler says.

"We've got to do things differently," he told reporters.

"The budget is not the same as it used to be. We've got to find savings within all departments across government."

Sixty-six extra teachers will be added to teach transition to year two, he says, with the student-teacher ratio there improving from 22:1 to 20:1.

But for middle school students classes will grow from 17 to 20 students per teacher, and from 14 to 18 per teacher in high school.

The minister says the new staffing allocation formula will guarantee teacher allocations for a full year, when previously schools could lose teachers from term to term due to fluctuating enrolments.

Mr Chandler was drowned out by hecklers as he told the rally the cuts would apply next year, but would be put on hold for 2014 pending the recommendations from curriculum and indigenous education reviews.

Opposition Leader Delia Lawrie said if cuts could be deferred to 2014, they could be stopped now.

"Listen to teachers, principals and education experts who, with a singular voice, are saying you don't get better educational outcomes with fewer teachers," she said.

"It does not make sense."

The minister was presented with a bark petition painted by Gatjilayngu (Yalmay) Yunupingu, wife of the deceased Yothu Yindi frontman Dr Yunupingu, the first Aboriginal person in Arnhem Land to get a degree.

Student teacher Chris Green is about to graduate from Charles Darwin University, and told the rally that if the cuts went ahead, many graduates would have no choice but to leave the Territory in search of work.

"Losing a generation of highly talented teachers would be a disgrace, not only for students but for the Territory itself," he said.

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Several fires raging around Newcastle

Fires raging around Newcastle have forced the closure and evacuation of the airport. Source: AAP

SEVERAL out-of-control fires are raging north, south and west of Newcastle, forcing the closure and evacuation of the airport with authorities advising people in some threatened areas to leave.

There are also reports a fast-moving intense fire near Ruttleys Road at Doyalson, near Wyong, has ignited a fuel store and caused an explosion.

A 2000-hectare bushfire at Muswellbrook that's out of control was at 8.50pm (AEDT) threatening properties.

Residents have been advised to leave the area.

"Firefighters are undertaking property protection under difficult, dangerous and erratic weather conditions," the RFS says on its website.

"Residents are advised to leave now unless your property is properly prepared."

Publican Brett Jaeger said there was a "pensive" mood among the 60 people sheltering at the Caves Beach Hotel, south of Newcastle.

Several people there aren't sure whether their homes have been destroyed by fire and they can't leave to check as local roads are closed, he said.

"They're very concerned at this stage because it's a big area here with a big bushland area," he told the ABC.

"Everybody's just waiting and watching at this stage."

Emergency warnings are in place for an out-of-control 2819-hectare scrub fire at Heatherbrae and a 945-hectare scrub fire at Doyalson.

A "watch and act" alert, one level short of an emergency warning, is also in place for a one-hectare scrub fire at Glendale that is burning out of control.

A five-hectare bushfire on the Pacific Highway at Heatherbrae is being brought under control, but a "watch and act" alert has been issued by the RFS.

There has been unconfirmed property losses in the area and Rural Fire Service Commissioner Shane Fitzsimmons has warned the public the damage would be significant.

The Transport Management Centre has advised people to delay all non-essential travel through the Hunter and Lake Macquarie region with several main roads closed.

The Pacific Highway has been closed between Swansea and Wyee Road, Doyalson and the Newcastle Link Road has been closed between Lake Road and Minmi Road in Cameron Park and Wallsend.

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HSU to chase Williamson settlement

THE Health Services Union says it's determined to wring a $5 million settlement from its disgraced former boss Michael Williamson, who has apparently declared himself bankrupt.

The former HSU secretary and Labor Party president on Tuesday pleaded guilty to various charges including defrauding the union of almost $1 million.

It's reported he declared himself bankrupt on the same day.

With hopes of putting an end to "the Williamson era", the HSU also revealed it had secured a $5 million judgment in a Supreme Court civil claim.

The HSU's Gerard Hayes says the union will do what it can to claw back the money from Williamson, bankrupt or not.

For starters, it hopes to recoup what it can from Williamson's six-bedroom home at Maroubra, which went to auction on Wednesday night. But according to Macquarie Radio, the property failed to sell, with no one putting up a bid.

The three-level rendered brick home on Meagher Ave - with parquet floors, in-ground pool, wine cellar and ocean views - was expected to fetch $1.5 million.

Mr Hayes said union members could still take some comfort from Williamson's guilty plea, the civil settlement and an apology that came with it.

"He's in survival mode and manoeuvring however he can," he told AAP.

"At least the apology is an acknowledgment that he's done what he's done."

In addition, under the civil settlement, the union will not have to pay Williamson's $1.1 million superannuation and $600,000 of claimed leave entitlements.

"This is 1.7 million that is not flowing out of the union," Mr Hayes said.

The agreement was brokered through mediation by former federal attorney-general Robert McClelland, the HSU says.

In the apology, Williamson said he wished to "place on record my sincere apology to all of you".

"You placed your trust in me when I was the General Secretary and I abused that trust," he said.

"I apologise unreservedly to all of you for my actions, which were not in keeping with the position I formerly held."

He says he will "have to live with this matter until the day I die" and urged members "not to desert the union".

Williamson faces up to 30 years in jail.

A date for his sentencing will be set on October 25.

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Row grows over Qld sex offender jail terms

Queensland Attorney-General Jarrod Bleijie announced plans to amend legislation over sex offenders. Source: AAP

QUEENSLAND Attorney-General Jarrod Bleijie is on a collision course with civil libertarians and lawyers after announcing plans to strip courts of the power to set indefinite jail terms for some sex offenders.

He wants to rush through parliament, as early as Thursday, changes that would give him the power to say which sex offenders should be locked up until they die.

Mr Bleijie has the backing of child protection advocate Hetty Johnston, who says judges worry too much about offenders' civil rights.

"Unfortunately it is the civil rights of sex offenders that take precedence over the rights of the community and children to be safe," the Bravehearts founder said.

But Australian Council for Civil Liberties president Terry O'Gorman said the move was "legislative lunacy" and urged a judicial rebellion.

Queensland Law Society (QLS) president Annette Bradfield also questioned the move and other legislation recently rushed through parliament in the dead of night.

Mr Bleijie insists it is legislation of last resort that would only be used to keep the worst of the worst in jail.

"Some of these people just can't be rehabilitated. They should never be released from prison," he said on Wednesday.

Mr Gorman accused the attorney-general of dictating to judges and called on the judiciary to stand up to him.

"This is the latest piece of legislative lunacy from an attorney-general who refuses to consult with anyone other than those who agree with his views," he told AAP.

Mr O'Gorman said it was the second time in two days that Mr Bleijie had ridden roughshod over Queensland's judicial system.

Laws passed by parliament on Wednesday morning mean judges now have to sentence bikies convicted of serious crimes to years of additional jail time, simply because they are gang members.

Ms Bradfield said the QLS was concerned at the lack of consultation over proposed legislation and at the executive wielding powers to give criminals added jail time.

"Judges are trained to make those determinations and politicians simply don't have the qualifications or the experience in those regards," she said.

Opposition Leader Annastacia Palaszczuk has accused Mr Bleijie of wanting to be "judge and jury" and called for him to quit.

"Yet again we are seeing the arrogance of this government, which wants to do anything and everything with its massive majority," she told parliament.

"Democracy is under direct attack."

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Italy may send Nazi's body to Germany

Clashes have broken out in Italy outside a Nazi war criminal's funeral which had to be suspended. Source: AAP

ITALY says it has contacted Germany over what to do with the body of Nazi war criminal Erich Priebke, as Rome commemorates the 70th anniversary of the round-up of its Jewish community.

Clashes erupted in a town near Rome on Tuesday as a Catholic ultra-conservative sect tried to stage a funeral for the unrepentant former SS officer who was convicted for a massacre of 335 civilians.

The funeral was cancelled by a police order after some neo-Nazi sympathisers broke into the seminary in Albano Laziale and tried to stage a rally as hundreds of protesters outside shouted "Assassin!"

The coffin was then driven to a military airport outside Rome during the night after Priebke's lawyer and friend, Paolo Giachini, gave up his power of attorney for the funeral arrangements.

"We are planning to resolve the situation today. We are in contact with Germany," Rome prefect Giuseppe Pecoraro told reporters on Wednesday.

"We had to cancel the funeral yesterday because there was a risk that it could have become a neo-Nazi demonstration," he said.

The German foreign ministry said it had received no official request from Italian authorities to take in his mortal remains.

But a spokesman for the mayor of Priebke's birthplace of Hennigsdorf, near Berlin, told Germany's RBB radio the town would refuse the body.

There were angry scenes during the halted funeral in Italy on Tuesday, with police detaining at least two people and protesters seen fighting with bottles and chains.

A rock was later thrown at the windscreen of the van driving Priebke's coffin to the airport.

Protesters had earlier kicked and spat on the hearse as it arrived for the start of the funeral.

The Holocaust denier died on Friday at the age of 100 and has provoked outrage even in death with the Vatican issuing an unprecedented order forbidding any Catholic church in Rome from holding his funeral.

He had been living under house arrest in the Italian capital after being extradited in 1998 from Argentina, where he had fled with a Vatican travel document soon after World War II.

Priebke had wanted to be buried in Argentina next to his wife but the government there earlier said it would not accept the body.

Jewish groups and relatives of the people he executed said he should be cremated and his ashes scattered to erase every trace.

There is concern that a burial could create a pilgrimage point for neo-Nazi sympathisers.

The furore comes at a particularly sensitive time in Italy on the anniversary of the round-up of the Jews from the Rome Ghetto on October 16, 1943.

More than 1,000 Jews were taken away to concentration camps and only 16 returned.

As Rome held a day of remembrance, mayor Ignazio Marino said Priebke was "a violent executioner".

"Rome could not accept the funeral of a man who actively took part in the massacre of 335 people, shooting them in the back of the neck," he said.

The Gestapo ordered the mass killing in the Ardeatine caves near Rome as retaliation for a partisan attack which killed 33 German soldiers.

They shot 10 Italians for every dead German, and five more brought to the caves by mistake.

Italian President Giorgio Napolitano, wearing a white kippah skullcap, attended a solemn ceremony at the Ghetto synagogue with Holocaust survivors, as the head of Rome's Jewish community called on Italy not to forget its past.

"The Italy which gave birth to Fascism has a duty to nurture memories, for itself and Europe," Riccardo Pacifici told hundreds gathered.

He also called on parliament to approve a bill outlawing Holocaust denial.

Later Friday officials are due to place a plaque at platform one at Rome's Tiburtina station, where - six days after the round-up - 1024 Jews were put on trains for the camps.

The ceremony will wind up with a torch-lit procession around the Ghetto, organised by the Sant'Egidio Catholic community.

"Today is the day to remember what happened 70 years ago, to remember the wound, the tragic moment in the history of our city," Marino said.

Pope Francis also issued a message saying: "We must not lower our guard against anti-Semitism and racism wherever they come from".

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US pins hopes on Senate leaders

The White House has rejected the latest effort by Republicans to resolve an impasse over the budget. Source: AAP

THE US is hours from a fateful fiscal deadline, with a chaotic political stand-off threatening to trigger a debt default and rock the global economy.

Hopes that congress would agree to raise the government's borrowing authority as required by midnight on Wednesday (1500 AEDT Thursday) rested with last-gasp talks in the Senate - with America's top-notch credit rating on the line.

Any deal though would have to make it through the Republican-led House of Representatives, where conservative Tea Party lawmakers have thwarted previous compromise efforts in a bid to undermine Democratic President Barack Obama.

If congress fails to raise the $US16.7 trillion ($A17.56 trillion) debt ceiling in time, the US Treasury would begin to run out of money to meet all US obligations and slip towards a historic default.

Such a scenario could badly damage the US recovery, saddle American consumers with higher interest payments and send economic shock waves into fragile global economies.

In Asia, stocks fell early on Wednesday as investors kept an eye on the American impasse.

Hopes for an exit strategy rest with talks between Senate majority leader Harry Reid and Republican minority leader Mitch McConnell.

The two old foes saddled up after manoeuvring by the House on Tuesday dissolved in chaos. Republican Speaker John Boehner proved unable to win support from his caucus and unwilling to use minority Democratic votes to raise the debt ceiling and reopen the US government after a two week shutdown.

In the face of the deadline, the US political system, divided between Obama's Democrats and Republicans who run the House, has virtually ground to a halt.

Major world powers have been left looking on in dismay at the brinkmanship in Washington, unable to do anything to protect their own economic interests, with many deeply invested in US Treasuries - hitherto seen as one of the safest global safe havens.

Amid rising anxiety on the markets, the financial rating agency Fitch put the US on warning for a downgrade from its top-grade AAA spot.

Despite the deepening impasse, Obama said he still expected the issue would be resolved in the end.

"My expectation is that this gets solved, but we don't have a lot of time," he told an ABC television affiliate in New York.

"What I'm suggesting to the congressional caucus is to avoid any posturing ... do what's right, open the government and make sure we pay our bills."

What was essentially a wasted day, with precious few hours to spare on Tuesday, unfolded as House Republicans tried to extend US borrowing authority until February 7 and reopen the government until December 15.

Several draft bills would have constrained aspects of Obama's signature healthcare law - and in effect stood no chance to pass the Democratic-led Senate.

But Boehner used the measures to try to corral the Tea Party faction and to pressure the Senate - but in the end was unable to amass sufficient Republican votes to even put the measures on the floor.

Senate talks, which had been on hold all day pending developments in the House, were quickly resumed on Tuesday evening.

Leadership aides on both sides said they were "optimistic" that an agreement was within reach.

"We're making very, very good progress, we're not there yet, but we're getting real close," said Democratic senator Chuck Schumer.

"I think the markets should feel pretty good about what's going on here tonight."

Republican congressman Charlie Dent of Pennsylvania told CNN: "I believe that John Boehner will likely be in a position where he will have to essentially pass the bill that is negotiated between senators McConnell and Reid, and I believe that the House will first pass it and send it to the Senate."

The likely Senate deal would require Democrats to make a minor concession on Obamacare. But the provision would fall well short of the drive to delay or defund the historic law which prompted Republicans to launch the government shutdown strategy and to use the debt ceiling hike as leverage.

Earlier, Reid furiously accused Boehner of seeking to save his own political skin at the expense of the US.

"Let's be clear: The House legislation will not pass the Senate," Reid said. "I am very disappointed with John Boehner, who would once again try to preserve his role at the expense of the country."

Boehner may once again on Wednesday be left with the unenviable choice that has come to define his speakership in Washington's divided government.

Does he stick with the Tea Party faction of his party, and possibly save his job but risk culpability in sending the US economy into a first default of modern times?

Or does he try to pass a compromise plan acceptable to Senate Democrats and Obama, with the help of minority Democratic votes - a scenario that could fritter away his party power-base and possibly cost him his job?

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Snitching bikies can avoid long jail terms

A Queensland government plan to lock up criminal bikies in a super jail could lead to more crime. Source: AAP

BIKIE gang members can avoid the extraordinary jail terms threatened by new laws in Queensland if they turn informer.

The laws being rushed through state parliament will hand bikies engaging in serious criminal activity such as murder or dangerous drug possession an extra 15 years of mandatory jail time.

The penalties for bikie gang office bearers are even harsher: an extra 25 years on top of their initial sentence.

And those sentences could be served in a special maximum security jail which the government has proposed to specifically house the state's worst bikie criminals.

But in what Premier Campbell Newman says will be an effective way to gather intelligence, jail time will be waived if an offender gives authorities information about bikie gangs and their criminal activities.

"The only way they can get off those additional mandatory penalties is essentially to provide information that's of use to the police to help bring down the gang," Mr Newman said.

The government was also seeking royal assent to list all bikie gangs as criminal organisations, including the Finks, the Rebels, the Bandidos and the Hells Angels.

If a new gang is created, the government can add them to the list based on police evidence.

Mandatory prison sentences, laws banning bikies from owning, operating and working in tattoo parlours and hefty jail terms for assaulting police are the first anti-bikie laws the Newman government are expected to pass in parliament on Tuesday night.

Attorney-General Jarrod Bleijie said it would be up to jurors to determine whether an offender was a member of a criminal gang, or a "vicious lawless associate."

"Where you may currently under law face a five-year sentence (for grievous bodily harm), it can potentially be a 25 to 30-year sentence (for gang members)," he told reporters.

"This is where the deterrent kicks in."

Mr Newman said severe penalties would also apply to three or more gang members caught gathering together.

"We are going to make every effort to completely destroy these gangs. We are not joking," Mr Newman said.

The premier admitted gangs were well-resourced and he expected legal challenges in the High Court, but said the government had been very careful and the Solicitor General heavily involved in drafting the laws.

Criminologists and critics fear the government's taking it too far.

Former Gold Coast detective Terry Goldsworthy says the proposed laws are unfair, and set a dangerous new precedent for double standards in Queensland.

He says there's now one set of rules to deal with bikies who commit crimes, and another set for others who commit exactly the same offences.

Australian Council for Civil Liberties president Terry O'Gorman says the bikie jail wouldn't work as there's no evidence to back the government's claim bikies are using their jail time to recruit members, peddle drugs and intimidate prison staff.

"If there is a problem, concentrating them in one area is bound to magnify the problem if there is indeed a problem," Mr O'Gorman told AAP.

The state opposition said the laws should have been reviewed by a parliamentary committee before being put to parliament.

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Former HSU boss pleads guilty to fraud

Disgraced former HSU boss Michael Williamson admitted he defrauded the union out of almost $1m. Source: AAP

DISGRACED former Health Services Union boss Michael Williamson faces 30 years in jail and civil action by his former union for fraudulently pocketing almost $1 million.

Williamson pleaded guilty on Tuesday to four fraud-related charges arising from his conduct while he was president of the HSU.

The former ALP national president initially faced 50 charges but, in light of his guilty plea, the remainder were withdrawn.

Some will still be taken into account in sentencing and Williamson faces as long as 30 years behind bars.

He also faces paying back some, if not all, of his ill-gotten gains.

The HSU will launch civil proceedings against him in an attempt to claw back some of the $1 million he got away with.

"Now that he has pleaded guilty, what it does is open the possibility of recovering some of the funds on behalf of the union," HSU president Chris Brown told AAP.

Williamson pleaded guilty in the Downing Centre Court to creating false invoices for work performed by CANME, a company registered in his wife's name.

The work was never done but court documents showed the HSU still made 22 payments each worth $15,385 to a CANME bank account.

According to the statement of agreed facts, Williamson used the funds deposited in the CANME account to maintain his family's lifestyle, including paying private school fees, mortgage payments and clothing.

He pleaded guilty to defrauding HSU out of $338,470 - the total amount paid to CANME between July 2006 and June 2009.

He also pleaded guilty to defrauding printing firm Access Focus out of $600,000 in cash between December 2006 and February 2010.

The charge relates to Williamson proposing Access Focus inflate its invoices to the HSU and provide him with secret payments in the process.

A guilty plea was also entered with regard to recruiting Carron Gilleland to hinder the police investigation by destroying American Express statements.

Court documents revealed Mrs Gilleland, the director of a business with her husband that printed a HSU magazine, provided credit cards to Williamson at his request, and later to former MP Craig Thomson and HSU staffer Cheryl McMillan.

Williamson told the Gillelands in 2012 how to destroy Amex statements.

Chief Magistrate Graeme Henson committed Williamson's case to the Sydney District Court on October 25, where a sentence date is expected to be set.

Whistleblower and former HSU national secretary Kathy Jackson said a judicial inquiry was still needed.

"(I felt) relief to say the least but more important I think there is a case for a judicial inquiry to be heard," she told AAP.

Ms Jackson said there were many things outside the scope of a police investigation that an official inquiry could deal with, including the influence of factions.

HSU NSW secretary Gerard Hayes said the most difficult period in the HSU's history was now over.

"Our members deserve a union they can be proud of," he said.

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Qld compo changes to be rushed through

The Queensland government says changes to the workers compensation scheme will protect employers. Source: AAP

SOME Queenslanders injured at work will no longer be able to sue their employers under reforms to be rushed through state parliament.

Bosses will also be able to access job applicants' workers compensation history.

Unions, the opposition and lawyers say parts of the shake-up are unjustified and unfair, especially when the state's workers compensation scheme, WorkCover, made half a billion dollars profit last financial year.

Attorney-General Jarrod Bleijie unveiled the changes on Tuesday and declared the legislation "urgent" so it bypasses scrutiny by a parliamentary committee and is passed this week.

The most controversial changes would give employers access to the claims history of job applicants.

Critics say the move could lead to discrimination, but the government says it will red flag those who've rorted the system.

Penalties for those who make fraudulent compensation claims will increase.

And a worker would no longer be able to sue their employer if their injury causes just five per cent or less impairment.

A bipartisan parliamentary committee recommended against a threshold, but the former WorkCover chairman wanted a 10-15 per cent cap.

In defending the changes, Mr Bleijie said Queensland would have the lowest threshold to access common law damages in Australia, with the exception of the ACT.

"The changes aim to strike a better balance between providing appropriate benefits for injured workers and ensuring the costs incurred by employers are reasonable," he said.

"Having a competitive premium will encourage more investment into our great state."

Lower-end common law claims accounted for around half the payouts in the scheme.

Queensland Council of Unions president John Battams says half of all injured workers will now be denied the right to sue an negligent employer.

"Even a small degree of permanent impairment can have a devastating effect on a worker's future employment prospects," he said.

"Without an appropriate, independently adjudicated payout many of these workers and their families face a life of poverty."

The Australian Lawyers Alliance (ALA) said WorkCover's annual report, released late on Monday, proved the changes were unjustified.

"WorkCover profits are up, common law claims are down and Queensland has the second lowest premiums in Australia," the ALA's Queensland president Michelle James said in a statement.

"The total cost of common law claims was also down more than $50 million compared with the previous year.

"That's not a scheme rife with unworthy claims."

Shadow treasurer Curtis Pitt said the changes were yet another rush job by a government intent on avoiding the usual scrutiny.

"No wonder they are getting to be known as the know-it-all Newman government," Mr Pitt said.

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McCann appeal sparks huge response

UK police are focussing on a man with dark hair who was seen the night Madeleine McCann disappeared. Source: AAP

A NEW British police television appeal about the 2007 disappearance of British girl Madeleine McCann in Portugal has triggered an unprecedented public response, the BBC says.

UK detectives who have spent two years raking over the case published new electronic images of men they want to trace, plus a reworked timeline of events leading up to Madeleine's disappearance.

Police said the appeal, broadcast on Monday on BBC TV's Crimewatch, triggered more than 300 calls and 170 emails from the public.

They are keen to find one man seen carrying a young child in the Algarve resort of Praia da Luz on the night of May 3, 2007, around the time Kate McCann discovered her eldest daughter was missing from their holiday apartment.

London's Metropolitan Police said the man was of "vital importance" in their quest to discover what happened to Madeleine, who vanished just a few days before her fourth birthday.

"It's been a truly unprecedented response," Crimewatch editor Joe Mather told BBC radio.

"There were lots of calls from British people who were in Praia da Luz around the time of Madeleine's disappearance who'd never previously spoken to the Met.

"Several callers mentioned the same name" for the man seen carrying a child, he said.

"It is a long shot but it's remarkable how often results are possible even several years down the line.

"The ability to rule people out of an investigation or out of a timeline can be almost as significant as being able to name potential suspects.

"There were genuinely useful calls."

Detective Chief Inspector Andy Redwood, the senior investigating officer in the case, said his team had had a "revelation moment" that put the spotlight on other possibilities.

Their probe focused on the time between 8.30pm, when the McCanns left their three children in their apartment to dine with friends at a nearby tapas restaurant, to when Kate McCann discovered Madeleine was missing at 10pm.

They established that a man seen carrying a child near their apartment at 9.15pm by a friend of the McCanns, was almost certainly an innocent British holidaymaker collecting his own daughter from a nearby creche.

That put the spotlight on other events leading up to 10pm.

The new e-fits of the man whom police are especially keen to trace were drawn up based on descriptions from different witnesses. They said the blonde-haired child did not seem in distress.

The witnesses described the man as white, between 20 and 40 years old, with short brown hair, of medium build and height and clean-shaven. One image shows him with a fuller jaw than the other.

Police said they were working on the theory that the abduction could have been planned and were also interested in tracing "one or two" fair-haired men who had been seen "lurking" around the apartment complex before Madeleine's disappearance. Witnesses said the men were speaking German or Dutch.

They also speculated that the youngster may have disturbed a burglary, pointing to a sharp increase in local break-ins in the months leading up to the incident.

The appeal will also be broadcast in Ireland, Germany and The Netherlands - though there are no plans to show it in Portugal.

Redwood was to visit The Netherlands on Tuesday and Germany on Wednesday.

German public broadcaster ZDF's Aktenzeichen XY program will on Wednesday show the images of the key man police want to trace.

The force announced it was offering a new reward of up to STG20,000 ($A33,881) for information leading to the prosecution of McCann's abductor.

Portuguese authorities closed their investigation in 2008, but the Met Police spent two years reviewing the case at the British government's request and opened their own probe in July this year.

The operation has interviewed more than 440 people and identified 41 "persons of interest".

During Crimewatch, the McCanns, who launched a global media campaign to find their daughter, said they were still optimistic she could be traced.

"We're feeling hopeful," said father Gerry McCann.

"These cases can get solved", he said, citing instances where long-lost people have been found.

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Parliament to sit over four weeks in 2013

PARLIAMENT is likely to be recalled in a month's time, with four sitting weeks before Christmas.

AAP understands the 44th Parliament will first sit on November 12, with the Tuesday sitting a largely ceremonial affair.

This includes swearing in members, electing a Speaker and a speech by the governor-general.

There will be four sitting weeks before Christmas, split into two fortnights with a break in between.

One of the weeks will include Senate estimates hearings.

Under the previous parliamentary timetable, which was dropped once the election was called, an estimates week was due to be held in late October.

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Redfoo without an artist on X Factor

LMFAO frontman Redfoo said he was "gutted" to be the first coach to lose all his artists on The X Factor.

Redfoo's tenancy as an active coach was exhausted after Jiordan Tolli, the last of his three under-24 female singers, was eliminated on Monday night.

Tolli missed out on making the final four after losing out to mixed group Third Degree in a sudden death sing-off.

"I am gutted. I am upset, but that's life," Redfoo said during the Seven Network's live telecast.

"We went 100 per cent and Jiordan gave it her all in every performance."

The decision to send Tolli home was eventually made by the viewers after the coaches, for the second week in a row, were evenly split on who to eliminate.

With the judges unable to decide, the result reverted back to the votes that were cast by the viewers.

But with Tolli out of the competition, Redfoo will be able to vote and comment objectively.

He did have praise for winners Third Degree, who were pieced together from the solo artists who were eliminated after bootcamp, saying they were good but are inconsistent.

Third Degree, consisting of two females and one male, are coached by former Rogue Traders' leading lady Natalie Bassingthwaighte and are the only band in the final four.

The other final four contestants are Queenslander Dami Im, who is under the guidance of Dannii Minogue, and under-24 males Taylor Henderson and 14-year-old Jai Waetford.

Henderson and Waetford are being mentored by Irish Crooner Ronan Keating.

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Shorten lags on parliament experience

BILL Shorten isn't the least experienced opposition leader of the past 40 years, but he's not far off.

Since the Liberals' Billy Snedden failed to oust Labor prime minister Gough Whitlam, only three opposition leaders have had less time in parliament before taking their party's top job.

Mr Shorten was elected as the member for Maribyrnong in November 2007, giving him less than six years experience in parliament before winning Sunday's historic rank-and-file and caucus vote.

Bob Hawke had the least experience.

Mr Hawke had just two years and four months in parliament before he became Labor leader and took the party to its historic 1983 election win.

The Liberals' John Hewson was an MP for only two years and eight months when he assumed the top job, holding on for four years before being dumped after losing the "unlosable" 1993 election.

Malcolm Turnbull made the jump from business to politics in just under four years before he became Liberal leader. He lasted just over a year before being replaced by Tony Abbott.

Even the opposition leader often portrayed as having the least experience in recent years, Labor's Mark Latham, had been in parliament for almost 10 years.

Mr Shorten's six years in parliament is well below the almost 20 years held by Malcolm Fraser, or the 16 years of former Labor leader Kim Beazley.

Mr Shorten will take heart from Mr Hawke's rapid assent to the prime ministership, as well as Kevin Rudd's relatively short eight years in parliament before he became opposition leader and ultimately PM.

But the fate of most opposition leaders is the scrap heap, particularly those who assume the job straight after an election win.

In the past 40 years, no first-up opposition leader has gone on to be prime minister.

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Facebook opens office in Israel

Facebook says it's opening its first office in Israel after acquiring an Israeli technology startup. Source: AAP

FACEBOOK says it is acquiring an Israeli mobile technology startup and opening its first office in Israel.

Facebook said in a statement on Monday that Israeli mobile utility application developer Onavo would help the social media giant create better mobile products and help connect more people around the world to the internet.

Onavo was founded three years ago and produces technology that compresses content so mobile users can use more data. The Tel Aviv-based company also has an office in California.

Israeli media reported that Facebook is buying the company for more than $US100 million ($A106.41 million) and that it was Facebook's largest acquisition of an Israeli company. Facebook declined comment.

Facebook has bought two Israeli companies in recent years, but employees were transferred to Facebook's US headquarters.

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Let the Labor renewal begin: Shorten

The Labor Party will announce the result of the caucus and leadership ballot on Sunday. Source: AAP

NEW federal Labor leader Bill Shorten is prepared to force a parliamentary showdown with the coalition government over the carbon tax.

Junior minister Jamie Briggs said opposition to Prime Minister Tony Abbott's planned repeal of the carbon tax would show Labor had learnt nothing from defeat in last month's federal election.

But Mr Shorten, who took the ALP's top job on Sunday despite a rebuff from the party's rank and file, is undeterred.

"It is important to maintain a price on carbon pollution," Mr Shorten said.

In a pointed reference to Mr Abbott's tactics as opposition leader, Mr Shorten vowed not to wage a campaign of relentless negativity.

Labor's grassroots members were given a say in electing a party leader for the first time and 60 per cent voted for Anthony Albanese in the historic ballot.

But caucus backed Mr Shorten 55 votes to 31 and, when the two tallies were weighted against each other, Mr Shorten had 52 per cent of the vote.

Despite the conflict, the new leader is confident he has whole-hearted party support and vows to be a consultative leader.

"This ballot shows that there are still things for me to learn," he said.

Mr Shorten's election almost forced his mother-in-law, Governor-General Quentin Bryce into earlier-than-expected retirement.

Mr Abbott revealed Ms Bryce offered to resign to avoid any perception of bias.

"I have thanked her for her magnanimity but declined to accept her resignation," the prime minister said.

The Labor caucus meets again on Monday to elect a deputy leader, likely to be Mr Shorten's pick Tanya Plibersek, and members of the shadow ministry.

Mr Shorten will allocate portfolios on Friday.

Mr Albanese won't be a contender, however.

In an emotional media conference, Mr Shorten's beaten rival told his son Nathan he will instead spend time as deputy coach of the under-14 Rebels Canterbury division six-a-side soccer team.

In a sign of goodwill, former prime minister Julia Gillard, whose dumping by caucus in June was precipitated by Mr Shorten turning against her, tweeted best wishes.

"Congratulations to Bill Shorten on becoming Labor leader. A great honour! I wish Bill all the best. JG"

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Vic boy killed crossing train tracks

A teenage boy has been killed by a train in Victoria as he attempted to cross the tracks. Source: AAP

A VICTORIAN teenager killed as he attempted to cross railway tracks may have misjudged the speed of the oncoming train, police say.

The 13-year-old boy was at Riddells Creek train station, about 50km north of Melbourne, when he was hit by an express train bound for Bendigo about 2pm (AEDT) on Saturday.

Inspector Neil Cheney said it appeared the boy was attempting to change platforms.

"When they're coming at you it's hard to judge the speed and I suspect that may have been a factor," Insp Cheney told Nine News.

"It's just a terrible event all round."

The boy died at the scene.

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Mongols patch over the Finks in WA

The notorious US-based Mongols bikie gang has patched over the Finks in Western Australia. Source: AAP

A POLICE operation has confirmed the notorious Mongols outlaw motorcycle gang has patched over the Finks in Western Australia.

Police Commissioner Karl O'Callaghan flagged concerns last week about the US-based bikie gang taking over the Finks and said police had been monitoring the situation.

There were previously only three Mongols in WA and all are in prison.

There are about 12 Finks members in WA and about half are in prison, while their club house has been frozen.

Deputy Commissioner Chris Dawson told reporters on Sunday that police were monitoring all gangs and played down the threat of the Mongols, who have a violent rivalry with the Hells Angels in the US.

"Irrespective of what they call themselves, police regard them (all) as criminal gangs and will continue to treat them as such," Mr Dawson said.

Laws allowing WA police and the state's corruption watchdog to declare bikie gangs illegal were passed by parliament late last year, but have not yet been proclaimed.

The intelligence was gathered as part of a national day of action against outlaw motorcycle gangs.

Police executed search warrants throughout Perth's metropolitan area on Saturday targeting two club houses and residences in Woodvale, Aveley, Balga, Henley Brooke, Butler, Ocean Reef, Landsdale, Quinns Rock and Wilson.

Seized items included a baton, a tracking device believed to be used for vehicles, 28g of white powder that is yet to be identified, and $56,000 in cash.

Further operations were carried out at licensed premises in Fremantle, Burswood and regional areas.

Charges included disorderly behaviour, five counts of possessing a prohibited drug and possessing a smoking implement.

In a joint operation with the Department of Corrective Services, 71 prison cells occupied by gang members were also searched and prison contraband was seized.

Nationally, 53 people were charged, 79 search warrants were executed and 362 licensed premises were patrolled.

Mr Dawson said the operation was successful despite a small haul in WA.

"The outcome of the operation is not necessarily the volume of what is seized, but it's the effective policing and the gathering of any evidence," he said.

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Strong winds expected amid NSW bushfires

Properties have reportedly been damaged as an out of control bushfire continues to blaze in NSW. Source: AAP

FIREFIGHTERS are bracing for a night of strong winds and thunderstorms, as a number of homes in NSW were destroyed by bushfires.

The NSW Rural Fire Service has downgraded bushfires in Port Stephens in the state's Hunter region to 'watch and act' levels, but warns a southerly change could spread the blaze.

"It can prove to be quite problematic because there's going to be extremely strong wind gusts that come with it," a spokesman told AAP on Sunday.

"When we get a shift from the wind and it turns south which we're seeing tonight, the sides of the fires can then turn into the fronts of the fires."

Five properties have reportedly been damaged or destroyed between Salt Ash and Tanilba Bay in Port Stephens.

"We don't have solid confirmation of that yet," the NSW RFS spokesman said.

"But obviously there's been footage on the news tonight which clearly shows there have been properties destroyed."

The fires across the state come as the Bureau of Meteorology issued a severe thunderstorm warning for the mid-north coast, the Hunter region and other parts of NSW.

The bureau is urging people in those areas to move their cars away from trees and stay indoors.

Conditions are easing on the Tangory Mountain fire ground, 15km east of Singleton but authorities warn the southerly change could make the situation worse.

Once the southerly change passes tonight, firefighters expect conditions to ease considerably. They'll use the calmer conditions in the next two days to contain the remaining fires.

More than 100 firefighters are also working on controlling a large bushfire in the Webbs Creek area, near Wisemans Ferry, in the Hawkesbury region.

Meanwhile, 43 cars were destroyed near Sydney Olympic Park in Sydney's west when a grass fire spread into a carpark near an aquatic centre, Fire and Rescue NSW Superintendent Ian Krimmer told AAP.

Around 1500 people were evacuated and three people were treated for smoke inhalation.

Authorities have declared the area safe but will continue to monitor it overnight.

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