Inquiry in doubt after NSW parly prorogued

Critics have vowed to push ahead with a parliamentary inquiry into NSW's $5.3 billion electricity sale despite government attempts to kill it off by shutting down parliament.

The future of the inquiry was thrown into doubt on Wednesday morning when Premier Kristina Keneally announced Governor Marie Bashir had prorogued parliament.

The shock move, which came two months earlier than expected, means the parliamentary session has now officially been brought to a close.

Opposition Leader Barry O'Farrell immediately accused the government of trying to derail the upper house inquiry ahead of the state election in March.

But Christian Democratic Party MP Fred Nile and the Greens later obtained advice from the clerk of the upper house that the inquiry could go ahead.

Mr Nile, the chair of the upper house committee that will investigate the controversial sell-off, announced hearings would begin the week of January 17.

He said the parliamentary committee would meet as planned at 2pm (AEDT) on Thursday, to set the terms of reference.

"I think it was a bit like a poker game, a bluff, they thought by doing that, everybody said 'that's it, no committee inquiry'," he said.

"But I've made inquiries and advice from the clerks. There is nothing to stop the committee meeting."

While Labor MPs Greg Donnelly, Luke Foley and Kayee Griffin will attend Thursday's meeting, the government pointed to Crown Solicitor's advice that committees can't sit once parliament has been prorogued.

A spokeswoman for Ms Keneally would not say if the government will challenge the legality of the inquiry, which could see the dispute dragged through the courts.

Mr Nile said Treasurer Eric Roozendaal, who is in the US on government business, had called him on Tuesday to express his concerns the inquiry might jeopardise the second tranche of the sale.

The so-called gentrader rights of Macquarie Generation and Delta's NSW central coast power stations will be completed early in the new year.

The first tranche of the sale was controversially announced by media release just before midnight on Tuesday last week.

The resignation of eight board members from Eraring Energy and Delta Electricity, in a last-minute protest over the deal, further soured the sale.

Under the power sell-off TRUenergy has paid $2.035 billion for retailer EnergyAustralia and the right to trade the output generated by Delta West.

Origin Energy paid $3.25 billion for smaller retailers Integral Energy and Country Energy, together with the trading rights for Eraring Energy.

The opposition, Greens and business lobby have criticised the partial privatisation, saying the government hasn't realised the full value of the assets, and that the sale would lead to less competition.

Both Ms Keneally and Mr Roozendaal have defended the sell-off, saying the assets sold for "well above" their retention value.

They have also dismissed opposition calls for a judicial inquiry into the sale, but said they would welcome the scrutiny of the state's auditor-general.

Source http://news.smh.com.au/breaking-news-national/inquiry-in-doubt-after-nsw-parly-prorogued-20101222-195gx.html

Fake POW to spend time behind bars in Qld

An elderly man will spend Christmas behind bars for lying about being a prisoner of war in order to scam welfare payments.

Arthur "Rex" Crane, 84, posed as a World War II veteran for 22 years before his deceit was finally uncovered in 2009 by a military historian who thought his story didn't add up.

Before his fraud was exposed, however, the former president of the Ex-POW Association of Australia claimed $689,491 in commonwealth war pension and disability payments.

He was not entitled to $464,409 of that amount.

Crane pleaded guilty in the Brisbane District Court to defrauding the commonwealth and obtaining financial advantage by deception.

He was sentenced on Tuesday to four years' jail, but will be released on a good behaviour bond after just six months.

Judge Marshall Irwin also ordered Crane repay $413,869 which is still outstanding, but said his age meant it was unlikely the full amount would ever be recouped.

The court was told Crane started offending in 1988 as a way of maintaining a friendship he had developed with two ex-POWs.

The lie soon spiralled out of control, and the court was told Crane conducted extensive research to back up claims he had been involved in a volunteer guerilla force against the Japanese at the age of 15.

He said he had been captured and tortured by the Japanese and sent to work on the Thai-Burma Death Railway during WWII.

In reality, he had never served in the military.

Military historian Lynette Silver investigated Crane in 2009 after he delivered a speech at the POW War Memorial in Ballarat, Victoria.

Ms Silver had researched the "stay-behind" groups set up in Malaya and Singapore to operate behind Japanese lines and knew that Crane's claims could not be true.

"I'd done so much work that I knew the names of everybody and I knew he wasn't one of them," she told reporters outside the Brisbane District Court.

"I was absolutely shell-shocked to think that somebody could have risen to that level in the community and for 22 years milked the public purse on a totally and permanently incapacitated pension."

Di Elliott told reporters her father had never received a cent from the government despite being held as a prisoner.

"He died in 1975 of his war injuries, and it wasn't recognised as war injuries back in those days.

"My dad had been through it and got nothing and this man hadn't been anywhere near it and received all that money and accolades from all his POW mates - it was very difficult," Ms Elliott said of the court hearing.

Judge Irwin acknowledged Crane had done some meritorious work for the ex-POW community in Australia.

However, Crane's lies had shown "little respect" to those who had been injured while serving their country.

"Your conduct can only be regarded as an insult to those who fought, those who were captured, those who were tortured and those who died," Judge Irwin said.

In a written statement released by his lawyers, Crane said he was "deeply offended" by his own conduct.

Source http://news.smh.com.au/breaking-news-national/fake-pow-to-spend-time-behind-bars-in-qld-20101221-193ry.html

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Morcombe 'person of interest' denies 'thrill kill'

A man, described as a "person of interest" in the disappearance of Daniel Morcombe at Woombye on Queensland's Sunshine Coast, has denied allegations he was involved in a "thrill kill".

The man, dubbed P2, was testifying at the Brisbane inquest into the 13-year-old schoolboy's abduction in 2003.

Earlier the man denied any involvement, telling the Coroner he believed his own brother and another "person of interest" tried to implicate him to collect reward money.

P2 was asked why a former girlfriend would tell police he was involved in a thrill kill to which he replied "I'm not a murderer sir".

He said he did not know why she would make that claim.

The inquest continues.

Source http://www.abc.net.au/news/stories/2010/12/14/3093152.htm

NSW levees hold but more rain forecast

Nearly 4,000 people remain isolated in regional New South Wales tonight as flooding continues across the state.

While the immediate flood threat has abated in some towns with river levels not reaching their expected peaks, residents are being told to brace for the worst as more heavy rain is on the way.

Some evacuated residents are even being warned they might not be allowed back into their homes until the end of the week.

The State Emergency Service (SES) says the Murrumbidgee River did not reach its expected 10-metre peak and the levee guarding the town of Wagga Wagga has held.

The same has happened in the north-west around Coonamble, where the Castlereagh River has remained steady at 5.2 metres, falling short of the predicted peak of 5.5 metres.

But SES spokesman Phil Campbell says the worst is yet to come in some areas, with the weather bureau predicting up to 100 millimetres of rain later in the week.

"Some of the river systems are receiving the worst flooding they've had in 20 years," he said.

"But if some of the projections come off for very heavy rain later this week, then we may have much more serious flooding, perhaps as much as a once-in-a-generation flood or one in 50 years.

"That really depends upon just [how] heavy this rain is and where that rain falls.

"So people should not think the worst is over yet. The worst may yet be to come and that's why it's very important to be well prepared."

While some residents evacuated from eastern Coonamble have been allowed to return home tonight, Wagga Mayor Wayne Geale says many of those who left their homes in North Wagga will not be able to return home just yet.

"I think those who have shifted out are probably having a sigh of relief at the moment, because it probably isn't going to go over the bank into their homes," he said.

"So it's really everything is on hold now to see what the next event brings."

Towns cut off

John Griffiths from the Coonamble council says the town's evacuation order has been lifted, but with heavy rain predicted later in the week, residents need to be on stand-by.

"We're expecting some fairly decent rain on Wednesday, Thursday, Friday and I would suggest to you that there is a definite threat of the floodwaters returning," he said.

He says Coonamble remains cut-off by floodwaters.

"You can't get in or out of the town unless you use the airstrip, helicopter, that sort of thing," he said.

"We probably will be 24 hours before the highway even is opened and it will be some considerable time before the highway north of Coonamble to Walgett is opened."

More than 1,500 people spent last night in alternative accommodation because of the flooding.

SES commissioner Murray Kear says emergency authorities are keeping in close contact with those residents who have refused to leave their homes.

But he has reminded them of the risk and says they are wrong to think they can evacuate at the last minute.

The Bureau of Meteorology has also issued a major flood warning for Wee Waa, in the state's north-west.

The Namoi River is expected to reach 6.7 metres sometime tomorrow, causing major flooding along Blackgate Creek, Vera's Leap and Trindals Lane.

The SES says Wee Waa is likely to be isolated, with all roads in a 20-kilometre radius cut by floodwater.

Namoi region deputy controller Andrew Galvin says local crews remain on watch.

Disaster declaration

Today Premier Kristina Keneally visited Wagga today to inspect the damage.

She said she was declaring a natural disaster in Wagga Wagga, Parkes and four other shires, meaning 34 shires across the state are on the declared list.

"It's quite humbling to witness what nature can do to a town, to property and to people's livelihoods," she said.

"And particularly if we remember that there are now 34 shires right across this state that have been affected by floodwaters, by heavy rains, and when you consider the decade that we've just lived through, it's an extraordinary change of events and change of circumstances."

Many of the disaster areas had been in drought, but now residents are facing the worst flooding in decades.

Source http://www.abc.net.au/news/stories/2010/12/06/3086115.htm