Katy Perry quizzes Abbott on gay marriage

The coalition is set to pledge $38m to upgrade Hobart airport in a jobs and growth plan. Source: AAP

OPPOSITION Leader Tony Abbott stepped up his Tasmanian campaign with an offer of a tailor-made plan to boost the state's economy by investing in infrastructure and transport.

As the Liberals target the two key Labor-held Tasmanian seats, Bass and Braddon, Mr Abbott announced the second phase of the coalition's plan to lift the state out of its "dire" circumstances, by spending $438 million upgrading Hobart International Airport and the 176km-long Midland Highway.

He also promised $24 million for a new Centre for Antarctic and Southern Ocean Research.

Tasmania has the highest jobless rate in Australia at 8.2 per cent, little economic growth and it's unacceptable that it also has the lowest life expectancy in the country and the lowest average wages, Mr Abbott said.

"Over the last few years, in particular, it really has become pretty dire down here," Mr Abbott told reporters in Launceston in Bass on Thursday.

"Tasmania shouldn't be like this.

"We have a growth plan that has been tailor-made for Tasmania."

Mr Abbott blamed "Labor-Green governments" in Hobart and Canberra for Tasmania's predicament.

The opposition leader pledged $38 million to expand Hobart International Airport and improve its freight and aircraft handling capacity.

An extra 500m of runway would be built and would secure the city as a world centre for Antarctic and Southern Ocean research by providing a gateway to large, heavily-laden aircraft on their way south.

The airport project could create 200 jobs.

The coalition's also promised $400 million to upgrade the Midland Highway.

The initiatives build on last week's $6.5 million announcement to support 2000 long term jobless into work by offering subsidies to businesses.

Earlier in the day, Mr Abbott found himself in a wrangle of words with US singer Katy Perry over his stance on gay marriage.

Mr Abbott was on Sydney radio interviewing Perry who was speaking from the US when the singer turned the tables and started firing questions herself, taking the Liberal leader to task over his opposition to reform of the Marriage Act.

"Look, I love you as a human being but I can't give you my vote," Perry told Mr Abbott.

Mr Abbott used the same interview to nominate Perry's song Hot 'n' Cold as his anthem.

"It's a catchy tune, there are some interesting lyrics," Mr Abbott told reporters in Hobart.

Shadow treasurer Joe Hockey later suggested the song, which begins "you change your mind like a girl changes clothes", was a reference to Prime Minister Kevin Rudd.

"Katy Perry was talking about someone else. Tony was talking about Kevin Rudd," he said.

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Tokyo shares end down 2.12%

TOKYO shares have fallen 2.12 per cent, as a stronger yen helped pull down the market and questions swirled about whether Tokyo would usher in a corporate tax cut.

The benchmark Nikkei 225 index on Thursday lost 297.22 points to 13,752.94, while the Topix index of all first-section shares fell 1.67 per cent, or 19.52 points, to 1,151.82.

Investors turned cautious after Finance Minister Taro Aso expressed doubts about the possibility of a fresh corporate tax cut.

The comment came as a response to a recent media report that Prime Minister Shinzo Abe had told government agencies to study the possibility to encourage private sector investment.

Aso pointed out that much of Japan's business establishment pays no corporate taxes and reducing the tax rate "would do little to help the Japanese economy".

Chief Cabinet Secretary Yoshihide Suga also denied that Abe has issued such an instruction.

The comment prompted investors to dump the US dollar for the yen, seen as a safe haven currency.

But a higher yen generally weighs on Tokyo shares as it makes Japanese exports more expensive overseas.

The Tokyo bourse was also dragged down by Wall Street's weak showing and rekindled jitters about the end of the US Federal Reserve's stimulus program.

The Dow Jones Industrial Average ended down 113.35 (0.73 per cent) at 15,337.66.

The Nikkei also fell on profit-taking after the index's sharp two-day runup.

Trading was thin, with many players away for summer vacation, traders added.

"There are almost no wholly new trading incentives to speak of and participation rates are set to stay low until the Obon holiday season plays out," Naoki Fujiwara, fund manager at Shinkin Asset Management, told Dow Jones Newswires.

Among major shares, Toyota lost 1.56 per cent to Y6,310, Sony fell 1.60 per cent to Y1,968, and Mitsubishi UFJ Financial Group fell 1.14 per cent to Y605.

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Three hurt in Chile as truck explodes

A truck loaded with gasoline has exploded at a service station in Chile, injuring three people. Source: AAP

A TRUCK loaded with gasoline has exploded at a service station in Chile, injuring three people and sending a shockwave across a 10-block area.

Two of those hurt were in serious condition after the accident in Vina del Mar in central Chile, said Jose Pedro Nunez, governor of the Valparaiso region on Tuesday.

Police evacuated the entire block as firefighters spent two hours dousing the flames, which engulfed the service station and some nearby homes, sending a giant plume of gray smoke over the neighbourhood.

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Dutch prince to be buried near mother

The Dutch palace announced Prince Friso who died this week will be buried near his mother's castle. Source: AAP

DUTCH Prince Friso is to be buried near his mother's castle, days after he died from injuries sustained in a 2012 skiing accident, the palace said.

"His royal highness prince Friso's burial will take place on Friday afternoon on August 16 at a private ceremony in Lage Vuursche," a statement said on Tuesday.

King Willem-Alexander's brother Friso died on Monday, aged 44, around 18 months after after he was left brain-damaged and comatose by an avalanche while skiing in Austria.

Friso will be buried at the Stulpkerk church in Lage Vuursche, around 30 kilometres southeast of Amsterdam, the palace said.

The tiny hamlet is where his mother Princess Beatrix, who abdicated as queen in April, has a castle where she intends to spend her retirement.

There had been speculation that Friso might be buried at the Nieuwe Kerk in Delft, outside The Hague, where most members of the royal House of Orange are laid to rest, or at the Oude Kerk in the same town, where he was married.

Friso in 2004 married Mabel Wisse Smit, giving up his claim to the throne as well as his Royal House position after it emerged that his future wife had withheld details of her previous relationship with a Dutch drug baron.

As a result, Friso, who was fourth in line to the throne, was excluded from the line of succession.

Friso was injured while skiing in the Austrian Alps in February, 2012.

He was an experienced skier but nevertheless ventured off-piste with a friend while the avalanche risk warning was at four on a scale of one to five.

His friend was unhurt, but Friso spent around 20 minutes under the snow before rescuers pulled him out.

He is survived by his wife Mabel and their two daughters, Luana, 8, and Zaria, 7.

A memorial ceremony will be held for Friso later in the year, the palace said.

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Abbott touts sex appeal of candidate

Opposition leader Tony Abbott has pledged $100 million to address mobile phone coverage black spots. Source: AAP

SEX appeal has become an electoral asset for the coalition according to Tony Abbott.

On his first trip to the key marginal seat of Lindsay in western Sydney, the Opposition Leader was asked how Liberal candidate Fiona Scott compared with her coalition predecessor Jackie Kelly.

"They're young, they're feisty and, I think I can probably say, have a bit of sex appeal," Mr Abbott told reporters.

Ms Scott laughed uncomfortably and took it in her stride, but the comment predictably caused a stir on twitter.

Among dozens of comments, activist group GetUp tweeted "The 1950s called, and even they don't want this kind of sexism back".

Labor, however, steered clear of it.

"I think I will raise my bat and let that go through to the keeper," deputy prime minister Anthony Albanese responded when asked about Mr Abbott's comment.

Lindsay switched hands in 2007 to Labor's David Bradbury, who holds it with just a 1.1 per cent margin.

While he was campaigning side by side with Ms Scott, Mr Abbott appeared keen to keep his distance from the candidate for the nearby seat of Greenway, Jaymes Diaz, who made headlines around the world for forgetting the six points he said constituted the coalition's plan to stop boats.

Mr Diaz joined other Liberal candidates for the region at a rowdy campaign rally launching the "Tony Abbott western Sydney" bus - a big blue bus with Mr Abbott's head printed three metres high on the side.

But somehow he didn't quite fit on the small stage beside Mr Abbott, Ms Scott, two sitting Liberal MPs and four other candidates.

There was distinctly less cheering from the blue-clad crowd when Mr Abbott introduced "Jamie Diaz, a professional from western Sydney" compared to the cheers for other candidates.

After the speeches, Mr Diaz scurried into a waiting car while reporters lobbed questions at him about the six-point plan.

He was just interested in campaigning, he said.

From the bus launch it was a quick hop over the road to catch up with Penrith Panthers players to discuss ball-handling skills.

Between tossing a footy around and catching some kicks Mr Abbott promised $12 million for the Panthers' sport and community centre, matching the same pledge made by Labor's sitting member David Bradbury in June.

He also pledged on Tuesday $100 million to help fix mobile phone black spots in regional Australia.

The problem with reception issues was nicely illustrated by Mr Abbott's inability to phone West Australian MP Don Randall to chide him for having suggested the coalition might not keep all its election promises.

"I've been trying to call Mr Randall but there's no mobile phone reception out here," he told reporters at the Colo Heights RFS station in the Wollemi National Park.

But the leader was sure Mr Randall knew what he had said was wrong.

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Abbott dismisses Labor GST scare

OPPOSITION Leader Tony Abbott says Labor's scaring the "bejesus" out of voters over the coalition's tax plans but the prime minister's not letting the issue go.

Labor's claim that the opposition is planning to raise the 10 per cent GST or broaden it to food has dominated the first nine days of the election campaign.

It's trying to use the debate to gain the edge on the coalition, which is leading 51-49 per cent in two-party terms according to the latest Essential poll.

Mr Abbott campaigned in western Sydney and stressed again that the GST wouldn't change under his government.

"Grow up, get real, the GST is not going to change, full stop, end of story," Mr Abbott said on Tuesday.

"Let's not play these sorts of games, we all know this is a desperate Labor party that is running around trying to scare the bejesus out of people."

Kevin Rudd, who was campaigning in Townsville, said Mr Abbott was in damage control over his planned tax review.

"My challenge is simply this ... if you are not planning the possibility of increasing the GST or extending it to food then just rule it out," the prime minister said.

"But the fact that you won't rule it out and are insisting it's part of the review I think says it all."

Mr Abbott couldn't rule out participants to the review making references to the consumption tax.

The GST rumble continued as the departments of Treasury and Finance released the final pre-election set of budget and economic projects, igniting a fresh spat over the coalition's policy costings.

The Pre-Election Economic and Fiscal Outlook (PEFO), which parties use as the base for their costings, confirmed the government's own forecasts including a deficit of $30.1 billion this financial year.

Mr Rudd said it was "D-Day" for the coalition to announce its own budget bottom line.

"It's fundamental for the Australian people to know where Mr Abbott's $70 billion worth of cuts to health, education and jobs are going to fall," he said.

The opposition denies the $70 billion figure and suggestions of cuts to health and education.

It gave no specific time frame for its costings release, saying only that it would be well before the election and follow careful consideration of the PEFO numbers.

Mr Rudd used his north Queensland visit to announce $30 million to train and improve the skills of 5800 workers in sectors like child care, aged care and disability services.

Mr Abbott announced $100 million for up to 250 mobile-phone towers to fix communications black spots, particularly in regional areas.

Meanwhile, the major parties are bickering over follow-ups to Sunday's leaders debate, narrowly won by Mr Rudd.

The Liberals want two town hall-style forums in Brisbane and Sydney, which would be hosted by Sky News and made available to all TV networks.

Mr Abbott said journalists had enough opportunity to ask questions.

"It's time for the people to have a go," he said.

Labor wants a Sunday night event hosted by Seven and a breakfast debate hosted by Nine, both of which would involve social media platforms like Twitter.

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Gluten free definition worries specialist

A BID to relax the definition of gluten free food is potentially dangerous, says a specialist who is so worried he has written to the Medical Journal of Australia.

Dr Geoffrey Forbes, a gastroenterologist at Royal Perth Hospital, says Coeliac Australia is making a mistake to lobby for an increase in the amount of gluten that food can contain and still be classified as gluten free.

Since 1995 Australian food has needed to contain "no detectable gluten" to be classified as gluten free, he says.

However, new technology has resulted in fewer foods passing the test, so Coeliac Australia and the Food and Grocery Council have lobbied Food Standards Australia New Zealand to increase the threshold to less than 20 parts per million.

Other countries have accepted the higher benchmark, but Dr Forbes says it will not be safe for all patients.

"Some patients are more sensitive to gluten than others.

"I accept Coeliac Australia's point that as the sensitivity of food testing improves it makes it harder and more costly for a manufacturer to label food as gluten free."

However, he believes the problem can be solved with threshold of three parts per million, which is the accuracy level of the current generation of testing devices.

He says Coeliac Australia provides invaluable support and advice to patients, but he does not agree with its interpretation of the scientific literature.

However, Coeliac Australia says its view is based on sound research accepted in the UK, most of Europe and Canada.

It has been approved in the US within the past two weeks and is also the view of the World Health Organisation, says spokesman David Sullivan.

He says all packaged food that claims to be gluten free should need to give additional information about the actual level of gluten.

"We want people to be able to consume food safely at an affordable cost and also have some variety.

"The biggest issue for coeliacs is keeping to their diet. If that gets harder and harder to do it means more people are not complying. That has long-term health risks.

"We are looking to make it as easy as possible but still make it completely safe," says Mr Sullivan.

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Soft property market dents GPT profit

PROPERTY group GPT has blamed softening market conditions for a 6.7 per cent profit drop.

The owner of shopping centres, office blocks and business parks made a net profit of $257 million in the six months to June 30, down from $275.5 million in the same period in 2012.

Chief executive Michael Cameron said softness in the property sector was a challenge.

"Whilst GPT remains cautiously optimistic about the second half of 2013, it is clear that market fundamentals have softened in the past six months," he said in a statement.

In the six months to June, GPT completed two developments worth $690 million, including the $300 million expansion of Highpoint Shopping Centre in Melbourne's west and a $780 million tower in central Sydney, which the group has a 50 per cent stake in.

The company has forecast earnings per share growth of at least five per cent for the full year, after posting growth of 5.8 per cent in the first six months.

GPT increased its distribution to securityholders, paying out 10.1 cents per security for the six months to June, up from 9.5 cents at the same time in 2012.

GPT securities gained two cents to $3.74.

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Abbott in surplus budget pledge

Opposition Leader Tony Abbott says he's looking forward a television debate against PM Kevin Rudd. Source: AAP

BUDGIE smugglers are out, for now, but a budget surplus will be in, Tony Abbott promises.

Mr Abbott joined 85,000 others on the road between Sydney's CBD and Bondi Beach on Sunday, running with blind athlete Nathan Johnstone in the 14-kilometre City2Surf fun run.

But the Opposition Leader said joining in the run on the morning of his debate with prime minister Kevin Rudd wasn't a big shift from his usual morning routine.

"I could either run around the back blocks of Forestville or I could be out with 80,000 of my fellow Australians," he told Macquarie Radio.

Running to raise money for motor neurone disease research, Mr Abbott finished in a respectable time of one hour, 21 minutes and 16 seconds.

Earlier on day seven of the campaign, Mr Abbott and Liberal frontbencher Malcolm Turnbull announced a $15 million boost for surf clubs and a new policy to deal with drowning black spots.

Asked if he had considered making the announcement in his budgie smugglers, Mr Abbott, a surf lifesaver himself, laughed and said: "Election campaigns should be budgie-smuggler-free zones.

"You won't see me in budgies this side of polling day."

Mr Abbott also said a coalition government would return the budget to surplus in its first term, provided the Labor government's budget figures - which will get another going over in Tuesday's Pre-Election Economic and Fiscal Outlook - were correct.

"If the budget figures that the government has so far put out are correct, yes (there will be a surplus in the first term)," he said.

"But we can't guarantee what the starting point is."

He said the coalition's costings would be announced well before election day on September 7.

Labor was yet to release its full list of costings and had failed to deliver any of its promised surpluses to date, Mr Abbott added.

Mr Abbott left Sydney for Canberra to take part in the first debate of the election campaign against the prime minister.

"I'm looking forward to it because it's both of our chances to present directly to the Australian people what are our positive plans for the future," Mr Abbott said.

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Abbott must come clean on costings: PM

Kevin Rudd (pic) says Tony Abbott must outline the coalition's costings at the leaders' debate. Source: AAP

PRIME Minister Kevin Rudd has challenged Tony Abbott to stop being evasive on the coalition's costings when the pair meet for the first leaders' debate on Sunday night.

During a visit to Queanbeyan, Mr Rudd said he was "delighted about the opportunity to debate Australia's future", and claimed it was time the opposition leader levelled with the public about his plans for the budget.

Labor is trailing the coalition according to a host of polls up published over the weekend and it is critical Mr Rudd wins the National Press Club debate if he is to reclaim some of the momentum lost during the first week of the election campaign.

Mr Rudd told reporters "you can be evasive up to a certain point, I suppose" but not during the national televised debate.

"Based on today's polls if there was an election yesterday Mr Abbott would be prime minister today and therefore he can't be evasive tonight about where his $70 billion in cuts in heath, education and jobs will fall," he said.

"I think it is a pretty basic expectation of Mr Abbott."

Mr Abbott began his day ahead of the debate running in Sydney's iconic City2Surf.

Asked how he prepared for their first showdown, Mr Rudd said he had sought "a bit of divine solace" on his regular Sunday morning visit to church.

Mr Rudd said he started the day with a long walk with son Nicholas, managing to escape the TV cameras.

"I had peace and equanimity," he said.

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