Two dead after strong Burma quake

A POWERFUL earthquake has struck Burma, reportedly leaving at least two dead and five missing, and sparking panic in the central city of Mandalay.

"According to the information we have so far, two people died and three were injured because of the earthquake, while five are still missing," an official in the capital Naypyidaw said on Sunday, asking not to be named.

He said the missing were workers flung into the Irrawaddy River when the quake shook the bridge they were building in an area north of Mandalay, the country's second-largest city.

One man died and three were injured by buildings collapsing in a small town in central Sagaing region. A woman was also killed by falling debris from a brick wall in a village north of Mandalay.

The shallow 6.8-magnitude quake hit around 116 kilometres north of Mandalay at a depth of just 10 kilometres, the US Geological Survey (USGS) said. It initially put the magnitude of the quake at 7.0.

It was followed by a series of strong aftershocks.

"I ran from my bed carrying my daughter out to the street. There were many people in the road. Some were shouting and others felt dizzy," Mandalay resident San Yu Kyaw said.

"People are now scared of more earthquakes. Especially those who live or run businesses in high-rise buildings are desperate and don't know what to do," he said.

Construction standards are generally poor in Burma, one of Asia's most impoverished nations.

A large crack stretching from the second to the sixth floor of Mandalay's highest building, the 25-storey Mann Myanmar Plaza, appeared after the quake, a local resident said.

He said people were afraid to enter the structure and it remained closed.

The USGS issued a yellow alert, saying "some casualties and damage are possible" but that the impact should be relatively localised.

The quake hit at 7.42am (local time) and was followed by two shallow 5.0-magnitude aftershocks within 20 minutes, according to the USGS.

"The quake was quite strong. I was shopping in the market at the time and I saw women crying in fear when they felt it. We expect more quakes are coming. Everybody is afraid," said 23-year-old Win Win Nwe, a resident in the small town of Shwebo, north of Mandalay.

She said there were fears that several people had been injured in a nearby town.

It comes little more than a week before US President Barack Obama is due in Burma on a historic visit, as the West begins to roll back sanctions to reward a series of dramatic political reforms under President Thein Sein.

The quake was felt in neighbouring Thailand, including in the capital Bangkok, according to reports on social media websites.

It struck around 572 kilometres east of the Bangladeshi capital of Dhaka, one of the world's biggest cities.

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Denmark to scrap world's first fat tax

Denmark's government will scrap a fat tax it introduced a little over a year ago in a world first. Source: AAP

DENMARK'S government will scrap a fat tax it introduced a little over a year ago in a world first.

"The fat tax and the extension of the chocolate tax -- the so-called sugar tax -- has been criticised for increasing prices for consumers, increasing companies' administrative costs and putting Danish jobs at risk," the Danish tax ministry said in a statement on Saturday.

"At the same time it is believed that the fat tax has, to a lesser extent, contributed to Danes travelling across the border to make purchases.

"Against this background, the government and the (far-left) Red Green Party have agreed to abolish the fat tax and cancel the planned sugar tax."

Denmark's centre-left minority government is made up of the Social Democrats, Social Liberals and Socialist People's Party, and requires support from other parties to pass legislation in parliament.

The government and the Red Greens reached the agreement as part of their negotiations on the 2013 budget bill.

The previous right-wing government introduced the fat tax in October 2011 to limit the population's intake of fatty foods.

According to the Danish National Health and Medicines Authority, 47 per cent of Danes are overweight and 13 per cent are obese.

"Now we need to try to do something else to address public health," Food Minister Mette Gjerskov said, news agency Ritzau reported.

The fat tax has been levied on all products containing saturated fats -- from butter and milk to pizzas, oils, meats and pre-cooked foods -- in a costing system that Denmark's Confederation of Industries has described as a bureaucratic nightmare for producers and outlets.

The measure added 16 kroner ($A2.62) per kilo of saturated fats in a product.

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Four kids linked to shopping centre fire

The fire at North Mackay engulfs the Toys R Us store. Picture: Seven News Source: Supplied

A MASSIVE fire that gutted four shopping outlets in north Queensland has been brought under control.

The "enormous fire", which destroyed most of the Toys R Us, Clark Rubber and Autobarn stores, was put out about 3pm and firefighters were hosing down remanent flames.

No one was injured.

Much of North Mackay was in lockdown when an emergency situation was declared, causing major traffic chaos with local streets in gridlock.

Fire crews rush to fight a blaze at a shopping centre in North Mackay. Picture: Seven News via Twitter.

At 4pm, police lifted the emergency situation and reopened all roads, but a public safety order is still in place because of police concerns about toxic smoke from burning chemicals in some of the shops.

Were you there? Did you witness the fire? Email pictures and news tips to pictorial@qnp.newsltd.com.au

A police spokeswoman confirmed four juveniles were in police custody in relation to the incident.

Four children were arrested in relation to a fire in Mackay.

One is understood to be a 15-year-old girl.

The fire, first reported to police at around 11.45am, saw Toys'R'Us, Autobarn and Clark Rubber totally engulfed by flames and a huge smoke plume cover the area.

Up to ten fire crews were called to Greenfields Boulevard to fight the blaze, which continued burning for almost five hours after the first Triple-Zero call was made.

A fire at Mackay destroyed several buildings in a shopping centre.

Busy Saturday trading at the Toys R Us Mackay saw a mass evacuation from the building, and at 1.20pm, the roof of the Toys R Us was reported to be caving in.

The Bruce Highway at Nebo and all surrounding streets were closed.

Motorists are advised to avoid the area.

A fire at Mackay destroyed several buildings in a shopping centre and caused a huge smoke plume in the area,

More to come...

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Bikies say arrest figures exaggerated

Rebels national president says there is no organised criminal elements within the outlaw motorcycle club.

THERE is no organised criminal element in the Rebels outlaw motorcycle club, its national president says, and the police have overstated the arrest figures in a recent crackdown on the organisation.

In a rare move, Rebels head Alex Vella has called an emergency press conference at the club's main clubhouse at Bringelly, in Sydney's southwest.

The club is outraged over figures published this week by the Attero taskforce, comprising 14 law enforcement agencies across Australia.

Attero kicked off last February and announced this week its operations had resulted in more than 330 arrests, leading to more than 500 charges being laid against Rebels members.

"My lawyers tell me it was only 77 of them (arrested)," Mr Vella said on Saturday.

He also said most of the offences were minor traffic violations.

There were no organised criminal operations within the club, Mr Vella said, but individual members had been known to break the law.

"I didn't say we we squeaky clean," he said.

"In every family you've got a black sheep."

Police had been targeting the Rebels for the past the three years, he said, and the club expected a backlash from Saturday's media conference.

"I can assure you, in the weeks to come, we're going to pay for this," Mr Vella said.

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Aust shares close lower

THE Australian share market closed lower, with negative global headwinds reducing investors' risk appetite.

At the close on Friday, the benchmark S&P/ASX200 index was down 21.8 points, or 0.49 per cent, at 4,462.0, while the broader All Ordinaries index was down 19.7 points, or 0.43 per cent, at 4,482.5.

The market was fairly flat for the week, down only four points.

On the ASX 24, the December share price index futures contract was four points lower at 4,482, with 29,962 contracts traded.

There were weak overseas leads from the US and Europe due to concerns about America's looming "fiscal cliff".

Automatic tax increases and spending cuts are set to take effect in January if the Democrats and Republicans cannot reach a budget deal over the nation's deficit.

Delays in releasing relief funds for debt-ridden Greece also hurt sentiment.

However intraday market lows in Australia and regional markets in Hong Kong and Japan were eased by some positive inflation data out of China, raising hopes of central bank monetary easing there to stimulate the economy.

"There were a number of negative events unfolding across the market today, which left traders looking for defensive plays as opposed to taking on new positions in risk assets," CMC Markets senior trader Tim Waterer told AAP.

"The fiscal cliff concerns in the US, concerns in Europe and the situation there with Greece, banks going ex-dividend here, negative headlines around Origin Energy, but the index still came off lows after the Chinese CPI numbers."

National Australia Bank descended $1.06, or 4.3 per cent, to $23.81 and Westpac weakened 76 cents, or 2.9 per cent, to $25.17 after trading without dividends.

Among the other major banks, ANZ added 19 cents to $24.56 and Commonwealth Bank gained 64 cents to close the week at $58.82.

Shares in Australia's largest electricity retailer and ASX top 20 company, Origin Energy, hit their lowest level since early 2008 amid a profit downgrade and debt worries.

The market wiped more than $650 million from the market capitalisation of Origin, closing down 63 cents, or 5.7 per cent, at $10.42.

Global miner BHP Billiton dropped 21 cents to $34.46, and Rio Tinto sagged 66 cents to $58.69.

Rare earths miner Lynas Corporation was in a trading halt as it prepared to raise capital. Lynas last traded at 80.5 cents.

Among other stocks, stockfeed and salt supplier Ridley Corporation was 1.5 cents lower at $1.115 as it agreed to acquire meat renderer BPL Melbourne (BPL) in Victoria for $77 million.

The price of gold in Sydney closed at $US1,737.02 per fine ounce, up $US18.16 from $US1,718.86 on Thursday.

National turnover was 1.4 billion securities worth $6.7 billion, with 400 stocks down, 492 up and 364 unchanged.

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Lynas seeks $200m for rare earths plant

ANALYSTS remain unimpressed by rare earths miner Lynas's financial position despite this week's legal win that will allow it to operate a rare earths plant in Malaysia.

Deutsche Bank and JP Morgan have warned of difficulties and shortfalls in achieving free cash flows and the possibility of further delays to the plant.

The miner said on Friday it will tap investors for as much as $200 million of fresh capital to finish building the facility.

After long delays due to opposition on environmental grounds, Lynas on Thursday received Malaysian court permission to begin operating a controversial processing plant in Gebeng, Malaysia.

The Kuantan High Court ruled against Malaysian activists that had sought an injunction against Lynas' temporary operating licence for the plant.

The extra funds raised will be used for working capital and general corporate purposes during the commissioning and ramp-up at the Lynas Advanced Materials Plant in Malaysia.

Deutsche Bank warned clients that legal proceedings against the Malaysian Atomic Energy Licensing Board's decision were continuing.

Further delays brought downside risks to first cash flow, still an estimated five months away, it said.

Lynas can access only another $80 million in debt, with Deutsche Bank estimating that it requires $120 million to fund the plant.

"Any other funding will need to come from forward sales or equity in our view," it said.

It has a sell recommendation on the stock, while JP Morgan warns Lynas needs to finalise new working capital imminently.

Lynas said in a statement on Friday that the capital raising would give it positive cash flows to meet capital expenditure requirements and provided a significant cash buffer to allow for unforeseen events.

The capital raising will involve a fully underwritten institutional placement to raise up to $150 million and a partially underwritten share purchase plan available to all existing shareholders to raise up to $50 million.

The plant on the country's east coast would be the biggest outside China and is considered important to breaking China's 95 per cent stranglehold on global supply, with rare earths having a range of hi-tech uses such as in hybrid cars and computers.

Lynas rejects opponents' claims that radioactive waste from the plant would be harmful to humans.

Malaysia previously hosted Mitsubishi's rare earth processing plant until 1992, which some residents say has caused health problems including birth defects and cancer.

Lynas shares are in a trading halt and due to resume trading on Monday.

The raising is underwritten by JP Morgan.

Lynas last traded at 80.5 cents.

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Qld jobless rate still at GFC levels

QUEENSLAND'S jobless rate is continuing to hover at levels not seen since the global financial crisis.

The latest figures from the Australian Bureau of Statistics (ABS) show that Queensland's seasonally adjusted jobless rate for October eased to 6.2 per cent from 6.3 per cent in September.

Unemployment in the state peaked during the global financial crisis at 6.3 per cent in September 2009.

Opposition treasury spokesman Curtis Pitt said the employment figures had taken a king hit from the Newman government's first budget, which detailed 10,600 redundancies in the public service.

Mr Pitt said the state's unemployment rate had gone up only after the Liberal National Party (LNP) government was elected in March.

"That's hardly surprising when we have a state government that has focused entirely on mass sackings, savage cuts to frontline services and funding cuts for community organisations," he said in a statement.

"That slash-and-burn approach does nothing to instil confidence in local and regional economies."

Treasurer Tim Nicholls is not downbeat over the result and has described the state's economic outlook as bright.

Mr Nicholls said the Queensland economy was forecast to grow by four per cent this financial year and his budget, released in September, predicted 15,000 jobs would be created.

But he said difficult economic circumstances were facing all states.

"Sticky unemployment data is not unique to Queensland," he said in a statement.

"We are seeing other states, resource and non-resource, experience increases in unemployment.

"This demonstrates the difficult economic conditions."

The jobless rate nationally held steady at 5.4 per cent in October.

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Whale calf still entangled off Sydney

NSW wildlife officers have suspended until morning a bid to disentangle a whale calf seen dragging ropes and buoys as it swam with its mother off Sydney.

The pair were spotted in Sydney Harbour on Thursday afternoon, prompting a National Parks and Wildlife Service (NPWS) operation to free the calf.

A crew assessed the calf off Long Reef, on the city's northern beaches, but the presence of the protective mother and a third whale, along with fading light and approaching stormy weather, forced them to call a halt to the operation.

The whales are expected to head south along the coast on the annual humpback migration.

NPWS marine fauna program co-ordinator Geoff Ross told AAP the ropes tangled around the whale's flukes were not life threatening at this stage.

Disentanglement crews along the coast have been alerted to be ready for an intercept on Friday.

Mr Ross said the NPWS would be helped by the police air wing, other aircraft and whale spotters on the shore.

"We would hope to be able to mount a disentanglement operation as soon as we find out the location in the morning."

Mr Ross said disentanglement crews would likely use a technique employed by whalers in the past.

"That is to attach a length of 100-metre line on the existing entanglement and to that attach inflatable buoys.

"That slows the animal down and tires it out and allows our boat crews to approach, put cameras under the water and have a look at the entanglement."

Mr Ross said the crews could then pick which ropes needed to be cut off first to ensure they fell away safely from the animal.

Shona Lorigan from the Organisation for the Rescue and Research of Cetaceans of Australia (ORRCA) said the group's volunteers would be "on the headlands" along the coast early on Friday to spot the whales.

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NZ champ accused of dealing steroids

A CHAMPION body builder has been remanded in custody accused of dealing performance and image enhancing drugs, including anabolic steroids.

Phil Musson, 44, appeared in Christchurch District Court on Wednesday afternoon, following his arrest earlier in the day.

Court documents allege Musson, a personal trainer, was selling his own brand of performance and image-enhancing products that he made himself and packaged up in pills and vials.

Crown prosecutor Anselm Williams said Musson first appeared in court in May on 291 charges possession and supplying performance and image enhancing drugs.

He was due in court on Thursday on those original charges, brought by the Ministry of Health and police, APNZ reports.

However, police intercepted two packages sent by him in October, and it's alleged they contained more drugs.

Musson faces seven new charges relating to the sale of unapproved Phoenix Biotech brand tablets and vials.

Judge Gary Macaskill refused Musson bail, saying the alleged offending occurred while on bail for other matters which he said amounted to "blatant behaviour".

Musson was remanded in custody without plea until Thursday when he will appear in court on the original 291 charges.

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Barnett wants $1 billion lawsuit dropped

PERTH businessman Len Buckeridge should drop his billion-dollar lawsuit against the state government over a private port development and get on with the project, West Australian Premier Colin Barnett says.

Lawyers for Mr Buckeridge have lodged a claim in the WA Supreme Court, blaming the government for his consortium's decision to abandon the private bulk shipping and container port near Kwinana, in Perth's south.

Mr Barnett told ABC radio on Wednesday that it would cost the state millions of dollars in legal fees if it were sued for $1 billion.

"Where would that billion dollars come from?" he said.

"In reality, if he was successful, it would come out of education, health (and) services for disabilities.

"I don't think for a moment Len Buckeridge wants to do that."

Mr Buckeridge claimed several state governments had failed to honour a 2000 agreement allowing a consortium led by the Buckeridge Group of Companies (BGC) to build and operate the port at James Point.

His lawyers say the government's decision to prevent construction of a container-handling facility makes the project unviable.

Mr Barnett said he supported the construction of the berth but not the offshore container facility.

He said he did not want a "huge chunk" of Cockburn Sound turning into a parking area for ships and containers.

"I would hope Len would drop all this nonsense and get on and build his bulk products port, or berth, because it is needed," Mr Barnett said.

The premier said his government had offered Mr Buckeridge land to buy, as well as some of the transport, road access and rail access.

"But I'm not going to be giving Len Buckeridge land at zero price or heavily discounted prices," he said.

"He'll pay a proper price for land and that offer has been on the table for quite some time."

James Point spokesman Michael Hotchkin said the premier's comments on the radio were as offensive as they were untrue.

"(The company) wants to build a port in a manner consistent with the 2000 contract. No more, no less," he said.

Mr Hotchkin said if the government did not change its position, the matter would be concluded in the courts.

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Macmahon apologises for downgrade

MACMAHON Holdings has apologised to shareholders for its recent earnings downgrade, as the mining contractor undertakes a review of costs and construction projects.

Macmahon announced the downgrade last month, followed by the departure of chief executive Nick Bowen last week, as it reviews its Hope Downs 4 Rail Earthworks contract in Western Australia.

Mr Bowen is to be replaced by chief operating officer Ross Carroll.

Macmahon Holdings chairman Ken Scott-Mackenzie on Tuesday said the board shared the extreme disappointment of many shareholders as it focused on rebuilding market confidence.

"I would like to apologise to you for the recent earnings downgrade and the effect this has had on the value of your investment in Macmahon," Mr Scott-Mackenzie said.

The apology comes less than a week after the company called in lawyers to investigate a series of fake internal emails suggesting the mining contractor had received a takeover approach from a Chinese company.

It also comes three days before Mr Carroll will address the company's annual general meeting in Perth on November 9.

Mr Carroll is conducting a review of Macmahon's capital and operating expenditure as it evaluates its business mix and risk profile.

In a separate statement, Mr Scott-Mackenzie said Mr Carroll had a thorough knowledge of all aspects of Macmahon's business.

"He is well credentialled to lead the company as we work to rebuild value for our shareholders," Mr Scott-Mackenzie said.

He said Mr Bowen's total pay packet had been 19.2 per cent higher than the package negotiated with Mr Carroll.

He said Mr Carroll's new salary would be further reduced by 10 per cent for the remainder of the 2013 financial year.

Macmahon shares closed 0.5 cents lower at 30.5 cents.

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Choppers fight bushfire near houses

FIRE crews are gaining control of a fire that almost threatened to engulf properties near Inala this afternoon.

Two helicopters are currently water-bombing the blaze that broke out near Brookside Street at Doolandella just after midday.

"It looks like at the moment they're getting on top of it," the Brisbane duty manager of operations said at 4pm.

"We believe we have enough resources at this time to protect properties."

Five ground units are working under the direction of three senior officers.

A Department of Community Safety spokesperson warned a smoke hazard was affecting the area and locals who suffer from respiratory illness have been told to close their windows and doors.

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Child taken from hospital

A FOUR-WEEK-OLD baby taken from a Sydney hospital has been found safe and well in a cafe in Sydney's west.

Police were caring for the boy, who was found in a Parramatta cafe and was to be reunited with his mother.

They have arrested a 26-year-old man who is being questioned.

Police said the boy was taken by his father from the The Royal Hospital for Women at Randwick in Sydney's east at 11.40am (AEDT) on Monday.

The hospital said in a statement earlier the baby had attended the hospital with his family for an appointment.

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Police seek witnesses to Vic train crash

SPIRALLING construction costs are holding back the removal of dangerous level crossings from Victorian roads, Premier Ted Baillieu says, following a fatal crash in suburban Melbourne.

One man is dead and 13 people remain in hospital after Saturday's crash in Dandenong South in which a truck went through the boom gates at a crossing.

The crash has intensified calls to remove the 170 level crossings in Melbourne, while there are 1900 across Victoria.

Mr Baillieu said the government would like to remove all level crossings in the state, but the costs would be prohibitive.

"If a grade separation is costing $200 to $250 million, there's obviously a limit as to how many of those we can do," Mr Baillieu told reporters on Monday.

"We'd all love to have level crossings eliminated ... but we have to be realistic about it. We have put the funds in to increase the number of grade separations and to increase the number of level crossings that are being upgraded."

Mr Baillieu said the government had funded five grade separations and had more than 50 upgrades planned across country Victoria.

But he repeated his call for a "fully independent productivity commission national inquiry into construction costs" which he says are limiting the ability to invest in major infrastructure projects such as grade separations at level crossings.

Police are seeking further details about incidents just before a white Western Star prime mover and the train collided at 11.42am (AEDT) on Saturday.

Police want particularly to speak with passengers who left the scene after the crash and the driver of a truck believed to have overtaken the Western Star truck shortly before impact.

"There was a white Kenworth cab-over prime mover with white curtain covering a semi-trailer that was seen crossing the railway intersection just prior to the collision," Inspector Bernie Rankin told reporters on Monday.

He said the driver of the Kenworth truck may have significant evidence that could assist police.

The premier said the Dandenong South crossing had protection measures, including boom gates, bells, lights and traffic lights, but the government would wait for a full police assessment of the accident before considering how to act.

Police also want to speak to anyone who may have seen the driver of the Western Star truck as it travelled on the South Gippsland Freeway or Abbott Road just before the crash.

Killed in the crash was a 43-year-old Cranbourne West man, who was found trapped under rubble in the front carriage.

The 30-year-old train driver was trapped in his crumpled cabin for an hour before paramedics could take him to hospital. He remains in The Alfred hospital in a serious condition.

The truck driver, a 69-year-old Narre Warren man, was interviewed and released pending further inquiries.

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Budget surplus still on track: Wong

FEDERAL Finance Minister Penny Wong says the government has proven its fiscal discipline and is on track to deliver a budget surplus in 2012/13.

Falling commodity prices and economic contraction in Asia have prompted doubts that Labor can keep its promise to deliver a surplus next year.

Senator Wong said the government responded to the revenue downgrades by finding $16 billion of savings in its budget update released last month.

"I think that shows our discipline, our fiscal discipline, and it shows the approach we take," she told ABC television on Sunday.

The government's mid-year economic and fiscal outlook also showed it was "on-track" to return to surplus, she said.

"Over the forward estimates those surpluses continue to grow," Senator Wong said.

Treasurer Wayne Swan conceded that "frail global conditions" were weighing on Australia's economy.

"This was clear with the almost $22 billion write-down in government revenues made between the budget and last month's mid-year review," Mr Swan said in his weekly economic note on Sunday.

Mr Swan, who will meet his US counterpart, Treasury Secretary Timothy Geithner, this week in Washington, warned that international economic events could quickly spill across borders.

"Flows of capital can surge or dry up almost overnight," Mr Swan said.

"Business and consumer confidence in one place can sway sentiment in another."

Despite some encouraging data in recent weeks, economic recovery in the US was still shaky, he said.

But Australia faced these global challenges from a position of strength, with the long-term prospects for the region remaining bright, Mr Swan added.

"We have an enviable combination of solid growth, low unemployment, contained inflation and low debt, with the budget returning to surplus ahead of every major advanced economy," Mr Swan said.

But opposition finance spokesman Andrew Robb said it was embarrassing to hear Senator Wong speaking of the government's "supposed fiscal discipline".

"If Labor was serious about offsetting spending why has its spending outstripped revenue by $173 billion since coming to office?" he said in a statement.

"Why did it deliver a $43 billion deficit in 2011/12 off the back of a mining boom and the strongest terms of trade in 150 years?"

Meanwhile, former prime minister Kevin Rudd has said he supports the government's "stated position on the desirability of the return to surplus".

Australia faced "very challenging fiscal challenges", with revenue not growing as much as the government would have liked, Mr Rudd told Sky News on Sunday.

"Discipline on our fundamental national accounts is important, otherwise we will be seen to be not as rigorous in the international community."

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Petrol spill closes Pacific Highway

HAZMAT crews are mopping up a spill on the NSW north coast that is expected to leave part of the Pacific Highway closed for hours.

Police say a petrol tanker and a car collided head-on on the highway north of Ballina shortly after 3pm (AEDT) on Sunday.

The car driver was flown by rescue helicopter to Lismore Base Hospital with serious injuries.

The truck driver has been taken to Ballina Hospital with non-life threatening injuries.

The crash caused one of the truck's tanks to rupture, and hazmat crews are trying to limit the amount fuel leaking onto the road.

The highway is expected to be closed for several hours and motorists are being asked to postpone travel if possible.

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