Residents flee as Qld's Dalby floods

RESIDENTS in the southeast Queensland town of Dalby are fleeing floodwaters as the expected peak of 3.2 metres could go even higher.

Western Downs Mayor Ray Brown says water from the Myall Creek started entering homes when the level reached 2.8m.

"Power has been off to some homes since 4.30pm (AEST), which is what we knew would happen when water flooded in, and residents and the travelling public are being moved to safe areas," he told AAP just before midnight on Saturday.

The peak was expected to be 3.32 metres before midnight but could go higher, Mr Brown said.

Dalby Showgrounds has become a safe area but Mr Brown said it wasn't a fully-fledged evacuation centre.

Visitors to the area had moved their caravans from camp grounds to the showgrounds.

"Residents in southeast Queensland have been given flood warnings, with people in the Lockyer Valley told to evacuate if needed.

An emergency alert was issued for the Lockyer Valley region, west of Brisbane, on Saturday night.

The Lockyer Valley regional council has advised residents to monitor the situation and evacuate themselves if necessary.

Flooding is expected for Forest Hill, Laidley, Glenore Grove and areas downstream.

An emergency flood warning has also been issued for Banana Shire Council.

"There is an imminent threat through a Grevillea Creek flood," a statement from the Department of Community Safety said at 10.30pm on Saturday.

"There is an immediate threat to life or property. Leave the area now or go to higher ground."

It's another blow to residents who experienced significant flooding on the Australia Day weekend and a severe flood two years ago.

The council is also monitoring the nearby towns of Chinchilla and Moonie which are on flood alert.

Heavy rain has also fallen in the regions around Mackay, Bundaberg and Rockhampton on the state's central coast and the Gold Coast in the southeast.

Forecasters expect about 100mm of rain to fall on Bundaberg in the next 24 hours.

The Bureau of Meteorology has advised the rain will continue in the short term and there will be heavy falls later this month.

It has issued 13 flood warnings, most of which are for the state's southeast region.

Bureau of meteorology senior hydrologist Andy Barnes said late on Saturday the impact of the floods affecting the state were relatively minor at the moment.

"It's fairly widespread flooding affecting quite a few catchments," he said.

"Although we'll see continued rain over the southeast for about the next 12 hours it won't be too intense.

"At this stage we're not expecting there to be any real worsening of the situation we've got."

Mr Barnes said moderate to heavy rain may fall on Sunday, but that that is expected further west to where most of the flood warnings have been issued.

Meanwhile the government is keeping a close eye on its dams in the southeast.

Water Supply Minister Mark McArdle says releasing water from the dams will reduce the risk of flooding.

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Pedestrian dies in Latrobe road accident

A WOMAN has died after being hit by a car while crossing a road in the Latrobe Valley in eastern Victoria.

Police said the woman was crossing the road at Morwell when she was hit by a west-bound car on Princes Drive just before 7.30pm (AEDT) on Saturday.

She was critically injured and taken to hospital, where she later died.

The driver of the car was taken to hospital for shock.

He is helping police with their investigation.

Anyone with information is asked to contact Crime Stoppers.

The incident takes Victoria's road toll to 41, compared to 50 at this time last year.

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Melbourne fugitive siege enters day two

A POLICE stand-off with convicted rapist Antonio Loguancio in Melbourne's north has entered its second full day.

Loguancio has been holed up in a house in Justin Avenue in Glenroy since about 7pm (AEDT) on Friday.

Police say they are intent on negotiating a peaceful outcome and will take as long as they need.

They describe Loguancio as a significant risk to the community after breaching a supervision order by assaulting his partner before going into hiding.

He threatened to harm himself and others after making contact with police while on the run.

Loguancio had been released on a supervision order after being jailed for 12 years for multiple counts of rape, assault and other offences.

Loguancio, who is alone in a bungalow on the property, emerged at one stage during Saturday, but it's not known if he is armed.

Although he emerged from the house with an object strapped to his body, police have been unable to establish if it was a firearm.

AAP m

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Titanic II a tribute to lives lost: Palmer

MINING magnate Clive Palmer has told British critics of his plan to build a replica Titanic that it's "bulls***" to suggest he's simply seeking publicity.

And he's denied inappropriately making money from the 1912 tragedy that cost over a thousand lives, arguing his Titanic II will be a tribute to them.

Some 1500 people died when the original Titanic sank on its maiden voyage from Southampton to New York.

At the London launch of Titanic II the first question fired at Mr Palmer was from a reporter with Southampton's daily newspaper.

The city still mourns 550 seafarers lost on the passenger liner.

"There are some concerns, putting it bluntly, that you are making money on the back of 550 dead," the Southampton reporter said at the Ritz Hotel.

Mr Palmer replied: "I haven't made any money yet and we still may not make any money."

The Mineralogy owner went on to argue Titanic II would actually be a tribute to those who lost their lives.

"It's significant that 100 years later we should be mature enough to pay tribute to those people," he said.

"If I'm dead in 100 years time and someone wants to spend some money commemorating my life and the things I've done I'll be very happy about that."

Mr Palmer insisted many descendants of those involved with the original Titanic had expressed interest in travelling in the same cabins their relatives had stayed in.

Titanic II is due in 2016 to retrace the original ship's planned route.

When it reaches the point where the Titanic sank "it'll be very symbolic for the world", Mr Palmer said.

In a "metaphysical" sense the replica would be carrying the hopes and dreams of generations who left Europe to find a better life in the United States.

To those suggesting the whole endeavour is a hoax to generate publicity the Queenslander declared: "It's bulls***."

"We're building four (iron ore) ships now bigger than the Titanic at the shipyard.

"I'm not somebody with no money."

British Titanic Society president Bob Pryor says the people of Southampton don't believe anyone should "play around" with the name Titanic.

"The idea of sailing a replica into Southampton - down there they are absolutely horrified by the idea," Mr Pryor told AAP.

Locals are afraid there'll be an inappropriate "song and dance" when Titanic II reaches the point where the original sank.

"Mr Palmer has got to prove them wrong," Mr Pryor said.

The society president is himself excited to see a replica being built.

But the man who's made many Titanic models, including one that's 12-foot long, is sad to hear Titanic II won't have fake rivets on her hull.

"It's going to look very bare without them," Mr Pryor said.

"They are almost like a signature of the ship."

Mr Palmer on Saturday announced replica rivets weren't needed.

"We want the best technology - we don't want to appear that we've got the worst technology," he said.

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Two killed in blasts at Somali restaurant

AT least two people have been killed and several wounded in twin attacks at a restaurant on the popular beachfront of Somalia's capital Mogadishu.

The blast, the latest in a string of attacks in the war-ravaged city, reportedly included a car bomb followed shortly after by an attacker wearing a suicide vest packed with explosives.

"There was a big explosion from a car, then as people rushed towards the area after the blast, a suicide bomber with a vest exploded himself," said Mohammed Abdullahi, a businessman who was inside the restaurant when the attack took place.

He saw the dead bodies of two security guards, and said at least nine other people were wounded.

"Many people who were wounded ran away after the explosion, so more might have been injured," he added.

The explosion took place on Friday close to Mogadishu's famous Lido beach, which is usually crowded on weekends with families enjoying the beach, playing football or swimming in the Indian Ocean waves.

"There was a heavy explosion, and then a short time later there was another," said policeman Ali Mohammed, who was near the scene of the attack.

One person was killed in a similar car bomb blast in the area last month.

No group immediately claimed responsibility for the blast, but al-Qaeda-linked Shebab insurgents have launched a series of guerrilla-style attacks in Mogadishu in recent months.

The insurgents have vowed to topple President Hassan Sheikh Mohamud, who took office in September after being chosen by the country's new parliament.

But the once powerful Shebab are on the back foot inside Somalia, having fled a string of key towns ahead of a 17,000-strong African Union force which is also fighting alongside Somali soldiers.

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Spill at UK plant sends Scotch into sewer

A MASSIVE spill at a Chivas plant has sent the smell of spirits flowing through a Scottish sewer and sorrow coursing through the hearts of Scotch whisky fans.

Chivas Brothers Ltd spokeswoman Jennifer Stevenson says the group is investigating what she described as an "accidental loss" of spirit at the company's bottling plant in Dumbarton, Scotland on February 26.

She declined to estimate how much of the bulk whisky had been lost, saying only that it was less than the 18,000 litres mentioned in media reports.

Bulk whisky can be used in various ways, and it wasn't immediately clear which Chivas brand the liquid was meant to fill.

Stevenson said on Friday she did not want to comment on the spill's circumstances until the company had completed its investigation.

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Hundreds protest in Delhi over sex assault

HUNDREDS of protesters have clashed with police outside a New Delhi hospital where a seven-year-old victim of sexual assault was admitted earlier in the day.

Angry youths hurled stones at buses and police, who then used batons to break up the demonstration outside the hospital which is located in a low-income neighbourhood, India's NDTV channel reported.

"The protesters were angry over the assault on the little girl and were demanding that police act against the culprit," the police official told AFP on Friday.

The official, who asked not to be identified, said the second-grader was sexually assaulted on Friday morning while at school.

After police were called, the child was taken to hospital and later discharged.

"The crowds have dispersed and the situation is normal," the official said.

Police are investigating the case, he added.

Three men - two school-teachers and a security guard - have been detained for questioning, local media reports said.

India has seen a surge in anti-rape demonstrations in recent weeks after thousands took to the streets to protest against police inaction following the fatal gang-rape of a 23-year-old student on a Delhi bus in December.

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Benedict starts new life with TV, snooze

BENEDICT XVI has begun his life of retirement by watching a bit of television, getting a good night's sleep and reciting the rosary, the Vatican says, a day after his resignation.

After bidding the faithful a final emotional farewell on Thursday, the Pope had dinner and then watched television news broadcasts about his departure.

"He really appreciated the coverage," spokesman Federico Lombardi said on Friday, adding: "A Pope can also appreciate good media work in his heart".

Afterwards, the Pope Emeritus paced up and down a long reception room, the Hall of the Swiss, overlooking Albano Lake in his new temporary residence of Castel Gandolfo near Rome in the final moments of his eight-year pontificate.

"He then retired for prayer and rest," said Lombardi, who still referred to the ex-pontiff as "Pope" on the first day of a popeless interim for the Catholic Church ahead of a conclave this month to elect a successor.

Lombardi said the Pope had brought a few books with him on theological and historical themes including one titled Hans Urs von Balthasar's Theological Aesthetics: A Model for Post-Critical Biblical Interpretation.

The Vatican spokesman also revealed that Benedict - an accomplished pianist - has been playing the piano more frequently in the run-up to the resignation although the piano remained silent on the night of his departure.

"The Pope slept really well. This morning he celebrated mass," Lombardi said, adding that later in the day Benedict would probably have lunch and recite the rosary on a quiet walk in the gardens of Castel Gandolfo palace.

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No VC for Simpson or 13 other diggers

THE Victoria Cross won't be awarded retrospectively to World War I digger John Simpson or a dozen others, despite calls for their gallantry to be rewarded.

The Defence Honours and Awards Appeal Tribunal has concluded no award of the VC or any other medal should be made to the 13 soldiers and sailors who were the subjects of its year-long inquiry.

The tribunal's decision, released on Friday, is supported by the federal government, after the cases were reviewed by independent experts.

"For reasons of process, for reasons of history, for reasons of fact, it is not appropriate to award retrospectively a Victoria Cross," the parliamentary secretary for defence David Feeney told AAP.

In the 454-page report, the tribunal chaired by former attorney-general's department secretary Alan Rose found it wasn't possible for Australia to recommend honours in the imperial awards system.

It is possible to make retrospective recommendations in the Australian system, which replaced imperial honours in 1991, but only if there's a clear case of maladministration or the emergence of compelling new evidence.

"Extreme practical difficulties, such as gathering reliable evidence about past actions as well as the problem of second-guessing the commanders of the time make retrospective recognition difficult and likely to damage the integrity of the Australian honours and awards system," the tribunal said.

The inquiry into the vexed issue of retrospective VC awards to long-dead servicemen, some of whose deeds occurred almost a century ago, began last April.

It considered 11 former sailors and two soldiers from three wars. Among them was Private John Simpson Kirkpatrick, known as John Simpson, famed for transporting wounded men from the Gallipoli frontline to field hospitals on his donkey.

Despite an abundance of gallantry, none of the 99 VCs awarded to Australians has ever gone to a sailor.

The tribunal concluded that contrary to some submissions, there was no British bias against Australians.

Statistically, far fewer VCs go to sailors, with only 53 of 1354 imperial VCs going to members of Britain's Royal Navy.

A number of submissions suggested awarding a VC to the Unknown Soldier in lieu of unrecognised acts of gallantry.

The tribunal disagreed, citing former prime minister Paul Keating's 1993 speech that recognised the very ordinariness of the Unknown Soldier and argued he should not stand above any of the 102,735 listed on the Australian War Memorial's Roll of Honour.

The VC is awarded for exceptional conduct.

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Draft plan for Rookwood Cemetery released

THE NSW government has released a draft plan to better manage Rookwood Cemetery in Sydney's west.

The plan involves ensuring environmental impacts are managed, heritage values are protected, and the use of burial resources is sustainable.

The operation and visual appeal of the cemetery would also be enhanced under the plan.

"This is the next step of the NSW government's most significant cemeteries reforms in over 100 years," NSW Primary Industries Minister Katrina Hodgkinson said in a statement.

Ms Hodgkinson said the plan was developed with the involvement of all the former denominational trusts at Rookwood Cemetery, the new Rookwood General Cemeteries Reserve Trust, the Catholic Metropolitan Cemeteries Trust and other stakeholders.

"I am now seeking comment on the draft plan from the broader community before it is adopted," she said.

The historic Rookwood Necropolis cemetery has been in operation since 1867 and is the largest multicultural necropolis in the southern hemisphere.

The draft management plan will be advertised for six weeks and submissions should be made by April 12.

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British American Tobacco profit soars

BRITISH American Tobacco, the world's second-biggest maker of cigarettes, has announced a 24 per cent hike in annual net profit.

Earnings after tax grew to STG3.84 billion ($A5.73 billion) in 2012 from net profit totalling STG3.1 billion a year earlier, the maker of the Dunhill, Kent, Lucky Strike and Pall Mall brands said in an earnings statement on Thursday.

"BAT delivered strong profit growth in 2012, achieved through good pricing and an outstanding improvement in operating margin, partially offset by adverse exchange rate movements," chairman Richard Burrows added in the statement.

"Despite the difficult trading conditions in many parts of the world, particularly southern Europe, these results demonstrate the company is in excellent shape and we remain confident that our strategy will continue to deliver superior shareholder returns."

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German inflation slows to 1.5%

INFLATION in Germany, Europe's biggest economy, slowed to its lowest level in two and a half years in February, official figures show.

The cost of living in Germany increased by 1.5 per cent on a 12-month basis this month, down from 1.7 per cent in January, the federal statistics office Destatis calculated in a preliminary estimate on Thursday.

The last time the annual inflation rate was lower was in October 2010, when it had stood at 1.3 per cent.

Using the Harmonised Index of Consumer Prices (HICP), the ECB's inflation yardstick, the rate of inflation in Germany also eased to 1.8 per cent in February from 1.9 per cent in January, Destatis said.

The ECB defines price stability as increases in HICP of close to but just below 2.0 per cent.

Preliminary inflation data are calculated using consumer price data for six of Germany's 16 federal states.

Final data, based on statistics for all 16 states, are scheduled to be published on March 12.

Destatis gave no indication as to the cause of the slowdown in inflation this month.

But Newedge Strategy analyst Annalisa Piazza said the regional data pointed to moderating price pressures from food and consumer goods.

And "the overall picture of moderating inflation remains intact", Piazza said.

Postbank Research economist Thilo Heidrich said he expected slowing inflation to bottom out in the coming months as the economic recovery gathers steam.

"It should settle down at just under 2.0 per cent. For the whole of 2013, we're projecting an annual average of 1.7 per cent," Heidrich said.

By contrast, Jennifer McKeown at Capital Economics said she saw German inflation "falling to below 1.0 per cent before the end of this year as energy inflation slows and the core rate remains subdued".

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Gunmen kill journalist in Pakistan

UNIDENTIFIED attackers shot dead a senior local journalist in Pakistan's lawless northwestern tribal region on Wednesday, witnesses said.

Malik Mumtaz, who worked for the Geo television channel as well as English and Urdu newspapers from the same media group, was shot in Miranshah, the main town of North Waziristan tribal district.

The tribal areas along the Afghan border are a haven for Islamist militants, but the Pakistani Taliban condemned the murder of Mumtaz, who was president of the local press club and had reported on the area for more than 20 years.

"Gunmen opened fire on his vehicle when he was driving back to his home and he died on the spot," a local intelligence official told AFP, requesting anonymity.

Noor Behram, the president of the Tribal Union of Journalists, confirmed the killing and announced one week of mourning.

A spokesman for Pakistani Taliban militants condemned the killing and denied any involvement by the umbrella Tehreek-e-Taliban Pakistan (TTP) faction.

"He was a good reporter and was serving tribal people, we condemn his killing and salute his services for tribal people," TTP spokesman Ehsanullah Ehsan told AFP by telephone from an undisclosed location.

Mumtaz is survived by his wife, two sons and one daughter.

According to the press campaign group Reporters Without Borders, Pakistan was the third deadliest country for journalists last year, behind Syria and Somalia, with 10 killed in connection with their work.

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Aged facility evacuated due to Vic floods

WILD weather in country Victoria has lifted the roof off a shopping centre, left motorists stranded and led to the evacuation of an aged care facility.

The State Emergency Service (SES) has received more than 200 calls for help since midnight Tuesday (AEDT) as flooding and strong winds hit parts of the state.

About 70 of the requests were from Shepparton where five people were trapped in their vehicles due to flooding.

There were 12 calls for help at Rushworth in the state's northwest, where 25 people were evacuated from a flooded aged care facility on Wednesday night.

High winds also forced the roof off the IGA supermarket next door, SES spokesman Toby Borella said.

The Bureau of Meteorology (BoM) has issued a severe weather warning for heavy rain for people in the northern country, north central, north east, west, central and South and East Gippsland areas.

Senior BoM forecaster Dean Stewart said heavy rain had lashed the Benalla and Shepparton areas in northeast and northern Victoria.

Shepparton received 38mm of rain between 6.30pm and 9.30pm (AEDT).

Mr Stewart said the rest of north east Victoria is likely to experience heavy rain overnight with the chance of thunderstorms.

"It's still going to rain pretty hard through parts of northeast Victoria, and places like Mount Hotham could get quite a bit more overnight," he said.

Since 9am Wednesday (AEDT), Benalla has received 76mm of rain, Mt Hotham 69mm and Mt Bulla 61mm.

AAP mi/je

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Beijing restaurant sign triggers fury

A SIGN at a Beijing restaurant barring citizens of nations involved in maritime disputes with China - along with dogs - has triggered a wave of online outrage among Vietnamese and Filipinos.

The Beijing Snacks restaurant near the Forbidden City, a popular tourist spot, has posted a sign on its door reading "This shop does not receive the Japanese, the Philippines, the Vietnamese and dog(s)."

Photographs of the controversial sign have gone viral in Vietnamese-language forums and featured heavily in Philippine newspapers and websites on Wednesday.

Vietnam's state-run Tuoi Tre newspaper ran a story saying the sign had "ignited online fury". It claimed many Vietnamese feel this is another example of Chinese "extreme nationalism that deserves to be condemned".

"It's not patriotism, it's stupid extremism," Sy Van wrote in Vietnamese in a comment under the story, published on the paper's website.

The sign provoked thousands of posts on Vietnamese social networking sites and newspaper comment threads.

"This is teaching hate to the younger generation," Facebook user Andrea Wanderer wrote in Vietnamese. "The owner of the restaurant has obviously been brainwashed by their government," added Facebook user Chung Pham.

Filipinos greeted the photo with a mixture of fury and amusement.

"Blatant racism at Beijing Restaurant," journalist Veronica Pedrosa wrote in one widely-shared tweet, while Facebook user Rey Garcia used a comment thread on a news site to retort: "Who cares, they almost cook everything, even foetus and fingernails."

Vietnam and the Philippines are locked in a longstanding territorial row with China over islands in the South China Sea. China and Japan have a separate acrimonious dispute over islands in the East China Sea.

The sign's wording is particularly inflammatory as it recalls China's colonial era, when British-owned establishments barred Chinese from entering.

A sign supposedly reading "No Dogs and Chinese allowed" became part of Communist propaganda after it was said to have hung outside a park in Shanghai when Western powers controlled parts of China.

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South Africa unveils tough budget

SOUTH Africa finance minister Pravin Gordhan has unveiled a bootstraps budget of spending curbs and increased "sin taxes" for Africa's largest economy, predicting slow growth and a swollen budget deficit.

Gordhan told parliament that growth would be a modest 2.7 per cent this year and the government's budget deficit would hit 5.2 per cent amid "enormous" challenges facing the country.

"South Africa's economic outlook is improving but it requires that we take a different trajectory to move it forward," said Gordhan.

Growth had previously been forecast to hit 3.0 per cent this year.

The minister said that a growing economy - and widening the tax base - was the best way to address the budget shortfall.

"All of you must pay a little more tax thank you very much," he said to mixed reactions from MPs.

But he admitted, "the growth outlook for the next three years has weakened, and government's net debt is now expected to stabilise marginally higher than 40 per cent of" gross domestic product.

To close the 16.3 billion rand ($A1.77 billion) gap in tax revenue versus previous estimates, in the short term he announced cuts to planned spending of 10.4 billion rand over three years.

He also announced an increase in fuel levies as well as taxes on beer, wines, spirits and tobacco, while announcing some tax incentives for consumers and youth employment.

A carbon tax will be increased from 2015.

More tax increases may well be on the way.

"There will be significant adjustments in revenue, which means that taxes may go up later," he said.

Gordhan presented his 2013 budget under pressure to provide assurance on South Africa's path after credit rating downgrades from all three major agencies in recent months.

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AirAsia profit soars, bullish on outlook

AIRASIA, Asia's largest low-cost carrier by fleet size, says its fourth-quarter profit has jumped 168 per cent year-on-year amid increased passengers.

AirAsia said in a statement that net profit for the quarter ending December 31 stood at 350.65 million ringgit ($A111.42 million), up from 130.68 million ringgit in the same quarter the previous year thanks to "a seasonally strong quarter".

Revenue for the quarter was a record 1.41 billion ringgit, up 10 per cent, as more people flew the airline, which increased its aircraft in Malaysia to more than 60.

"It has been another good quarter and overall a great year for AirAsia as we continue to defy the industry in terms of operational and financial performance," said Malaysia AirAsia chief executive officer Aireen Omar.

For the full financial year, AirAsia recorded a 238 per cent jump in net profit to 1.88 billion ringgit despite a 1.0 per cent rise in the average fuel price this year.

Its 2012 revenue increased by 11 per cent to 5.0 billion ringgit.

Group chief executive officer Tony Fernandes was bullish about the year ahead as AirAsia expands its model - no frills and keeping operational costs low.

"The aviation landscape is constantly changing with high fuel prices and new competition, but through all these challenges AirAsia will continue to defend our leadership titles," he said.

AirAsia has grown rapidly since Fernandes, a former record industry executive, bought the failing airline in 2001. It initially had only two aircraft in operation.

The group now has a total fleet of 120 A320s and has set up subsidiary budget carriers in Indonesia, the Philippines, Thailand and Japan.

The airline, one of the biggest customers for European aircraft maker Airbus, is expecting 360 more aircraft to be delivered by 2026.

Last week it announced a new airline joint venture with India's Tata conglomerate.

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Horsemeat scandal reaches Hungary

THE Europe-wide horsemeat scandal has reached Hungary after an announcement by the country's food safety authorities that undeclared horsemeat had been discovered in packets of "beef" lasagne.

"Beef lasagne containing horsemeat has been discovered in Hungary," said Gyorgy Pleva, director of Hungary's National Food Chain Security Office in a statement to state newswire MTI late Monday.

"It was inevitable that Hungary would be unable to avoid the fallout from the horsemeat scandal," he said.

The case is the first discovery of undeclared horsemeat in Hungary since the scandal erupted in January when horse DNA was detected in beefburgers in Britain and Ireland.

Since then, supermarkets across the continent have pulled prepared meals from their shelves, and the scandal's effects felt as far away as Hong Kong where an imported brand of lasagne has been withdrawn from stores.

The lasagne was imported into Hungary by the Danish company Nowaco and produced by the Luxemburg-based firm Tavola, a subsidiary of Comigel, the French firm which supplied frozen lasagne found to contain up to 100 per cent horsemeat to British supermarkets.

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New pope must lead reforms after scandals

THE next pope must drive through reforms in the wake of scandals that have hit the Roman Catholic Church, the former head of the Church in England and Wales says.

Cardinal Cormac Murphy-O'Connor, the former archbishop of Westminster, said Pope Benedict XVI's successor must be "capable of the kind of reform and renewal that are needed in the church".

"The pope's own house has got to be put in order," Murphy-O'Connor told a press conference in London.

"As you know there have been troubles in recent years. These have got to be addressed."

Controversies are swirling around the conclave to elect a replacement for Benedict following the pontiff's shock resignation on February 11 -- only the second of its kind in the Church's 2,000-year history.

On Monday, Britain's most senior Catholic cleric Cardinal Keith O'Brien resigned as head of the Church in Scotland following claims that he made sexual advances towards priests, and said he would not take part in the conclave.

O'Brien denies the allegations, which date back to the 1980s, but apologised to anyone offended by "failures" during his ministry.

Murphy-O'Connor said he was "saddened" by O'Brien's resignation - which leaves Britain without a vote in the conclave - and insisted that the Vatican had not put pressure on him to step down.

"That was his decision to do so. He wasn't forced to do so, he wasn't asked to do so," Murphy-O'Connor said, adding that O'Brien was "a very honest man" who denies the allegations.

"Those matters will be investigated," he told journalists, adding that the scandal is "very damaging" for the Catholic Church in Scotland.

Campaigners are also calling for several cardinals linked to the pedophile priest scandals that dominated Benedict's reign to give up their votes in the conclave.

The climate of intrigue has been further stoked by rumours that Benedict's resignation could have been linked to an explosive report on the "Vatileaks" scandal, which exposed corruption and conflicts in the Church.

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Ikea meatball producer finds no horsemeat

THE producer of Swedish furniture giant Ikea's trademark meatballs says it has found no horsemeat in the product in which Czech authorities claim to have discovered traces of equine DNA.

"Out of 320 tests performed in the last three weeks, none contain horsemeat," said the chief executive of Dafgaard, Ulf Dafgaard.

In addition to testing the ingredients used, the contents of products that were ready to be sold had been analysed by the company and by an external laboratory, he added.

"We continue to perform further tests," Dafgaard said in a statement.

Dafgaard said it had unsuccessfully tried to contact the Czech lab that found the horsemeat in Ikea's meatballs to obtain more information about the amount involved.

The Czech veterinary watchdog, the State Veterinary Administration (SVA), said on Monday it had found horsemeat in meatballs supplied to Ikea and in burgers made in Poland that were imported by Denmark-based food chain Nowaco.

One-kilogram bags of frozen meatballs had been pulled from the shelves in 24 countries, Ikea said on Tuesday.

The countries were Poland, Austria, Hungary, the Dominican Republic, Britain, Portugal, Finland, Germany, Italy, Denmark, the Netherlands, Belgium, Romania, Slovakia, the Czech Republic, Sweden, Thailand, Spain, Bulgaria, Greece, Hong Kong, France, Cyprus and Ireland.

Ikea is the latest group to become caught up in a Europe-wide scandal over the presence of horsemeat in ready-made dishes that erupted in January when horse DNA was detected in beefburgers in Britain and Ireland.

Nestle, which last week was forced to yank products off the shelves in Spanish and Italian supermarkets after detecting horsemeat in deliveries from a German supplier, said on Monday it would stop buying all products from Spanish group Servocar after traces of horse were discovered.

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Gympie braces for flooding

RESIDENTS of Gympie in southeast Queensland have been warned to prepare for flooding as the Mary River peaks following heavy rainfall in the Sunshine Coast hinterland.

Gympie Mayor Ron Dyne said the river was expected to reach 13 metres before midnight and peak at about 16 metres by 9am (AEST) on Tuesday, which would see some businesses in Gympie's CBD inundated.

He urged residents and visitors to put safety first.

"I urge people to take heed of weather warnings, stay indoors if they can, drive to the conditions, and avoid flooded or closed roads," Mr Dyne said in a statement.

Heavy rain was forecast over a 600km stretch of Queensland coast, from Gladstone to the NSW border.

Flash flooding alerts have been issued for a number of areas including Gladstone, Gympie, Kingaroy, Hervey Bay and Fraser Island.

Flooding is also possible on the Gold and Sunshine Coasts as well as Brisbane and Ipswich.

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I could have been destroyed: Turnbull

FORMER opposition leader Malcolm Turnbull has admitted he could have been destroyed by his political setbacks, but says he is a stronger and wiser person for surviving the "furnace" of life in Canberra.

In a frank admission on ABC's Q&A program on Monday night, Mr Turnbull said "when you have these big collisions and cataclysms in your life ... they either break you or they make you a wiser stronger person".

Mr Turnbull lost the leadership of the opposition to Tony Abbott in 2009, and soon afterwards announced he wouldn't recontest his Sydney seat of Wentworth before changing his mind.

"There are a lot of people who have been destroyed by political setbacks and I could have been - it was very, very gut-wrenching, it was devastating," Mr Turnbull said.

"It's a devastating business, a terribly cruel business, politics. Because all of your mistakes and blunders are out there in the public arena. You've got nowhere to hide. There is not an ounce of privacy."

The coalition's communications spokesman said it was his family who "miraculously" got him through his political lows, and "I am a stronger and wiser person as a result".

"Believe me it is a furnace, politics is a furnace, and it either breaks you or it makes you," he said.

Mr Turnbull said there was now no chance of him leading the Liberal Party - "probably ever" - and predicted Mr Abbott would win the 2013 poll.

Commenting on a comeback by Kevin Rudd, he said the Labor Party appeared determined to keep the former PM out of the top job despite it being "screamingly obvious" he was more popular than Julia Gillard.

"It's quite interesting from a sort pathological point of view, that the hatred for Rudd among some quarters in the Labor Party is greater than the natural human instinct for survival," he quipped.

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Syria says ready for talks with rebels

THE Syrian regime is ready for talks with armed rebels and anyone who favours dialogue, President Bashar al-Assad's foreign minister says, in the first such offer by a top Syrian official.

Foreign Minister Walid al-Muallem was in Moscow on Monday for talks with Russian counterpart Sergei Lavrov, whose country is one of the few big powers to still maintain ties with Assad's regime.

Russia has renewed calls for rebels and regime to engage in direct negotiations to end the two-year conflict that has killed tens of thousands of people, warning that pressing for a military victory risked destroying Syria.

"We are ready for dialogue with all who want dialogue, including those who are carrying arms," Muallem said at the talks with Lavrov.

"We still believe in a peaceful solution to the Syrian problem," said Muallem, pointing to the creation of a government coalition that would negotiate with both the "external and internal opposition".

Lavrov said alongside Muallem that there was no alternative to a political solution to the two-year conflict agreed through talks.

He warned there was no point for the sides trying to fight towards a "victorious end" and warned Assad's regime not to give into what he termed "provocations".

Russia has also been working on agreeing a trip to Moscow, possibly in early March, by the head of the Syrian opposition National Coalition Ahmed Moaz al-Khatib.

However the rebels have now pulled out of talks with foreign powers in protest at the international community's inability to halt the bloodshed.

While Khatib has offered to talk to regime officials without "blood on their hands", the National Coalition has said Assad and the top military command cannot be part of any solution.

The Muallem-Lavrov talks came a day before Russia's top diplomat meets new US Secretary of State John Kerry in Berlin for the first time, with the Syria crisis topping the agenda.

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Chainsaw used in break and enter

TWO men have used a chainsaw to break into a home in Arundel, southeast of Brisbane, before threatening an occupant with a firearm, police say.

The men broke into the home about 3.30pm (AEST) on Monday and threatened a 50-year-old man before all five occupants of the home escaped onto the street, police said.

The two offenders then fled in a vehicle.

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John Kerry embarks on Europe, Mideast tour

AMERICA'S top diplomat John Kerry has started his first official trip as secretary of state, a marathon get-acquainted tour of America's closest allies in Europe and the Middle East.

A plane carrying the new US secretary of state and his team took off from Joint Base Andrews outside Washington about 7.15am (2315 AEDT) on Sunday.

Kerry will visit the United Kingdom, Germany, France, Italy, Turkey, Egypt, Saudi Arabia, the United Arab Emirates and Qatar until March 6.

The first stop will be London, where Kerry will meet with senior British officials, State Department spokeswoman Victoria Nuland told reporters on Friday.

Kerry travels on to Berlin where, in addition to meeting Germans, he will encounter his Russian counterpart, Sergei Lavrov, for a tricky exchange at a time when Moscow and Washington are at loggerheads on many issues.

"Obviously, they know each other well from when Secretary Kerry was Senator Kerry, but it will be their first opportunity to sit down bilaterally as foreign ministers," Nuland said.

The marathon trip underscores Washington's new foreign policy imperative, which is subtly pivoting away from Asia and increasingly towards Europe.

Tyson Barker of the Bertelsmann Foundation think tank said that, after a first term focused on relations with Pacific countries, President Barack Obama hopes "to consolidate and retro-fit some of our legacy relationships".

Among the issues high on his agenda during the marathon series of talks is a newly announced effort to agree a mammoth free trade agreement between the United States and the European Union.

Obama announced the proposed Transatlantic Trade and Investment Partnership in his annual State of the Union address last month, and said the agreement would boost economic growth and jobs on both sides of the Atlantic.

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Vic TAFE cuts 'hit women harder'

YOUNG women and people in rural and regional Victoria are likely to be the biggest losers from state government cuts to TAFE.

The state's peak youth advocacy group has released a report on the impact of the government's $290 million cut to TAFE.

It has called for a special fund to be set up to ensure Vocational Education and Training (VET) providers can continue to offer courses for Victoria's most disadvantaged young people.

Youth Affairs Council of Victoria (YACVic) chief executive Kate Colvin said young women and people living in rural areas are likely to be the hardest hit by the funding squeeze.

She said young women and people living in the country tended to favour courses in areas such as hospitality and sport, which had had funding reduced.

Young people were also more likely than older people to be enrolled in certificate I and II courses, which were not funded at the same rate as previously.

Ms Colvin said the government was on the right track in trying to encourage young people to enrol in courses that were more likely to lead to a job.

"But the problem, we think, is that young people might choose not to do any courses at all," she said.

The YACVic wants the state government to set up an equity fund that would deliver money through a tender process open to public and private VET providers.

Providers of programs that helped young, disadvantaged students gain ongoing employment could apply for the extra cash.

"Often young people will enrol in a course and not complete it or it doesn't lead to a job," Ms Colvin said.

"There is a body of evidence that shows what it is that's needed to encourage young people to take that full pathway from studying into a job.

"Programs that deliver that should get some additional resources."

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Regional leaders sign Congo peace deal

REGIONAL African leaders have signed a deal aimed at bringing peace and stability to the eastern Democratic Republic of Congo with plans to reinforce a UN-led mission to combat rebels after years of unrest.

Eleven countries in the Great Lakes region - including those accused of stoking trouble by backing rebel groups - signed on to the accord at a ceremony in the Ethiopian capital Addis Ababa on Sunday in the presence of UN chief Ban Ki-moon.

"It is my hope that the framework will lead to an era of peace and stability for the people of the Democratic Republic of Congo and the region," Ban said, but added: "It is only the beginning of a comprehensive approach that will require sustained engagement."

The accord calls for regional countries to refrain from interfering in each other's affairs and aims to encourage the reform of weak institutions in the DRC, central Africa's largest country.

It also provides for the "strategic revision" of the UN's 17,000-man strong MONUSCO mission, which may lead to creation of a special UN "intervention brigade" to combat rebel groups and support political reforms, and the appointment of a UN special envoy.

South African President Jacob Zuma described the creation of the brigade, which will total 2500 troops, as a realistic way to quickly restore security.

DR Congo's mineral-rich east has been ravaged by conflict involving numerous armed groups for the past two decades, with new rebel movements spawned on a regular basis.

The latest surge in violence erupted last year and culminated in the rebel March 23 movement (M23) - made up of largely Tutsi former soldiers - briefly seizing the key town of Goma last November.

The presidents of the DR Congo, South Africa, Mozambique, Rwanda, Congo and Tanzania were present for the signing, along with envoys from Uganda, Angola, Burundi, the Central African Republic and Zambia.

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Explosions at house in Vietnam kill 10

VIETNAMESE state media say 10 people, including a family of seven, were killed in twin explosions at a house used to store materials for creating smoke and fire effects in film production.

Tuoi Tre news says the blasts took place on Sunday in Ho Chi Minh City, Vietnam's commercial capital.

The report says the house was owned by a pyrotechnician who worked in films, and that materials he was storing there were suspected in the blasts.

The man, known as "Phoung of Smoke and Fire", was among the 10 people killed.

According to the report, neighbours said they heard two blasts five minutes apart. They said the explosions broke the windows of nearby houses.

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