Stoush sign of chaotic government: Abbott

THE stoush between federal Resources Minister Martin Ferguson and Independent MP Rob Oakeshott is just another example of a "divided and dysfunctional" Labor government, says Opposition Leader Tony Abbott.

Mr Ferguson accused Mr Oakeshott of making a "baseless attack" on his integrity in a newspaper article and had begun a legal action against him.

But after a chat with Prime Minister Julia Gillard early on Saturday morning, the defamation case was dropped.

Mr Abbott said the matter was further evidence of a chaotic government.

"Apparently the prime minister has been giving Martin Ferguson his instructions and it seems to be just further evidence of a divided and dysfunctional government," he told reporters in Melbourne.

"(The government) seems to be fighting with everyone and this is just more evidence of that."

Mr Ferguson said in a statement released on Saturday that he had intended to settle the matter privately with Mr Oakeshott.

"It was always my intention and expectation that this matter, so far as it directly concerns Mr Oakeshott, would be settled privately without the need for any public disclosure," he said.

"Consistent with my initial expectation, I will not pursue legal action against him."

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Chair of casino assessment team appointed

NSW Premier Barry O'Farrell has appointed an independent chairman to oversee the next stage of James Packer's bid for a new Sydney casino.

David Murray, former chief executive of the Commonwealth Bank, will be in charge of the assessment team looking at the Crown Limited proposal for a $1 billion hotel and VIP gaming resort at Barangaroo.

Mr O'Farrell stressed that the move to the second stage of the government's unsolicited proposals process "does not necessarily guarantee final approval" of the complex.

"I am determined to act in the best interests of taxpayers and that's why the NSW government has appointed a respected businessman like David Murray," he said.

"The appointment of Mr Murray as independent chair will give the community confidence in the process and probity of the consideration of the Crown proposal."

The casino will only be approved if the review team finds that it will "deliver positive net benefits and a fair return for NSW taxpayers", the premier stressed.

Mr Murray was chief executive of the Commonwealth Bank of Australia from 1992 to 2005 and has more recently been chairman of the Future Fund. He stepped down from that role last April.

He now acts as a senior adviser for Credit Suisse and is the chairman of the International Forum of Sovereign Wealth Funds.

Mr Murray, who was made an officer in the Order of Australia in 2007, was born in NSW and lives in Sydney with his family.

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Chair of casino assessment team appointed

NSW Premier Barry O'Farrell has appointed an independent chairman to oversee the next stage of James Packer's bid for a new Sydney casino.

David Murray, former chief executive of the Commonwealth Bank, will be in charge of the assessment team looking at the Crown Limited proposal for a $1 billion hotel and VIP gaming resort at Barangaroo.

Mr O'Farrell stressed that the move to the second stage of the government's unsolicited proposals process "does not necessarily guarantee final approval" of the complex.

"I am determined to act in the best interests of taxpayers and that's why the NSW government has appointed a respected businessman like David Murray," he said.

"The appointment of Mr Murray as independent chair will give the community confidence in the process and probity of the consideration of the Crown proposal."

The casino will only be approved if the review team finds that it will "deliver positive net benefits and a fair return for NSW taxpayers", the premier stressed.

Mr Murray was chief executive of the Commonwealth Bank of Australia from 1992 to 2005 and has more recently been chairman of the Future Fund. He stepped down from that role last April.

He now acts as a senior adviser for Credit Suisse and is the chairman of the International Forum of Sovereign Wealth Funds.

Mr Murray, who was made an officer in the Order of Australia in 2007, was born in NSW and lives in Sydney with his family.

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21 injured in chemical spill in NZ tannery

TWO people are in a critical condition and 19 others have been injured after breathing in hydrogen sulfide following a chemical spill at New Zealand's only leather tannery.

Emergency services were called to Tasman Tanning Company in Whanganui just before 5pm (1500 AEDT) on Friday following a chemical spill.

Whanganui District Health Boards spokeswoman Sue Campion told AAP on Friday evening that two people were in critical condition after breathing in hydrogen sulfide and were being flown to Wellington Hospital.

Hydrogen sulfide - a colourless, poisonous and flammable gas - can damage lungs and affect breathing.

Ms Campion said 19 others suffered minor to moderate injuries and were being treated at Whanganui Hospital.

About 20 firefighters were at the scene.

Media reported the emergency service staff were wearing chemical suits and there was a strong smell in the air.

Tasman Tanning Company, which started in 1953, employs about 200 staff.

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Royal duty officer 'discharged gun'

A SCOTLAND Yard investigation has been launched after a British policeman believed to be guarding the home of the Duke and Duchess of Cambridge accidentally discharged a gun while sitting in an unmarked car.

Nobody was injured when the officer, who was sitting in the vehicle with another policeman, let off the shot while on duty in north Wales last week.

A Met Police spokesman said: "Shortly before 1pm on Wednesday, October 24, an on-duty MPS police officer unintentionally discharged a firearm while in an unmarked police vehicle.

"The round damaged the floor of the vehicle. Another on-duty officer was in the vehicle at the time of the incident. Neither officer was injured.

"The officers were on duty in north Wales at the time."

Both the officers are attached to specialist operations, the Met said.

The spokesman said the Met's directorate of professional standards has been informed of the incident and the officer concerned has been removed from firearms duty pending the outcome of inquiries.

Prince William, or Flight Lieutenant Wales as he is known in his capacity as an RAF search and rescue helicopter pilot, captains Sea King helicopters from his unit's base at RAF Valley in north Wales.

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Santoro unaware of donation allegations

FEDERAL Liberal Party vice-president Santo Santoro and former Queensland Liberal Party president Michael Caltabiano have cast the party into controversy, with police investigating their links to a slush fund.

Mr Santoro, a politician turned lobbyist, is confident he complied with electoral laws.

His own party referred him to police, along with sidelined Queensland transport director-general and former Liberal party executive Michael Caltabiano, over allegations they mishandled donations from Brescia Investments.

Mr Santoro said he only heard about the allegations in the media and is unable to specifically respond.

"However, I am confident that my fundraising activities as a federal vice-president of the Liberal Party, and previously, are completely compliant with all relevant electoral laws," he said in a statement.

The Australian newspaper says the allegations relate to political donations by the private investment company Brescia Investments, which has links to both men.

It's alleged the company financed a long-running slush fund for select candidates and MPs within the Liberal Party and later within the LNP.

The Australian cited documents showing Brescia Investments declared to the Queensland Electoral Commission that Mr Caltabiano received a $20,400 donation in 2009.

LNP officials have reportedly told police they were unaware of the donation.

The Australian also said that in 2006, Brescia extended a private loan to then Howard government minister Santoro as he was in the midst of a share-buying spree that led to his 2007 resignation for failing to disclose the investments.

Mr Santoro, who is now federal Liberal Party vice president, told the newspaper he had declared the loan at the time and had since repaid the money.

"There was nothing political about that loan, it was a commercial transaction which was declared at the time," he said.

Queensland Premier Campbell Newman admitted on Friday he'd known about the LNP's worries for weeks and he had "no concerns whatsoever" over the matter being referred to police.

Mr Newman, who hand picked Mr Caltabiano for his transport position, remained silent on the issue, despite Mr Caltabiano stepping aside from his role last Thursday over separate matters.

The Crime and Misconduct Commission (CMC) is investigating possible official misconduct relating to the appointment of Arts Minister Ros Bates's son, Ben Gommers, as a liaison officer in Mr Caltabiano's department.

Meanwhile, parliament's ethics committee is considering three matters, including whether Mr Caltabiano misled a budget estimates hearing about whether he had a previous professional relationship with Mr Gommers.

Mr Newman said he doesn't know if Mr Caltabiano has offered to resign and he has avoided him over the past few weeks.

"I in no way want to be accused of contaminating any investigation," Mr Newman said.

He also said he doesn't regret choosing Mr Caltabiano for the plum transport job, and congratulated him for sorting out the department.

"But I am concerned about these issues raised," he said.

"If there is a police investigation and a (Crime and Misconduct Commission) investigation and an ethics inquiry, guess what? Someone is going to work out what's gone on here and I think we should wait and see."

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Ten completes sale of Eye outdoor ad arm

TELEVISION broadcaster Ten Network Holdings said on Thursday that it had completed the long-anticipated sale of its Eye Corp outdoor advertising unit.

The buyer, which was reported several weeks ago, is Outdoor Media Operations (OMO), the owner of oOh!media, which is an Australian outdoor advertising specialist.

OMO is controlled by Champ Private Equity.

The $113 million sale price compares with a reported higher sale price offer of about $145 million only few months ago.

The agreement to sell Eye includes Eye's operations in Australia, New Zealand, US, UK and Indonesia.

OMO, with the assistance of Ten, intends to on-sell the US and UK operations of Eye to appropriate third parties.

Ten shares closed down one cent at 27 cents on Thursday, a fresh record low.

Ten in October launched a wide-ranging cost-cutting program, including cutting up to 100 jobs. Ten recently revealed a $13 million loss for the year ending August 31.

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Study slams defence inquiry processes

THE Australian Defence Force's (ADF's) internal inquiry processes are excessively complex, take too long and the overall cost isn't known, which means it's likely to be too much, a defence study says.

The study, commissioned by ADF chief General David Hurley and secretary Duncan Lewis, was conducted internally to assess the current systems and make recommendations for improvements.

It surveyed 1678 defence managers and commanders, more than three-quarters of them currently involved in managing and overseeing various inquiry procedures, showing this remains an integral part of day-to-day defence business.

Those procedures are defined as inquiries, a fact-finding process to inform decision making, investigations which determine criminal or civil liability, and reviews which reconsider decisions already made.

That can range from assessments on whether to write off debts through to investigation of allegations of fraud, unacceptable behaviour and safety and security incidents.

Managers said the optimal system should feature simplicity, timeliness, transparency and fairness, which were often absent from the current systems.

"Given the consensus that the current system is complex and not capable of producing timely outcomes, Defence is almost certainly not achieving best value for money," the study said.

It noted that various elements of defence culture had been examined time and time again over almost two decades.

They included external inquiries into sexual harassment, treatment of women and military justice.

"These inquiries illustrate a long history of issues that have continuously plagued defence in terms of its culture, the military justice system and complaint handling and inquiry processes," it said.

A consequence of that had been piecemeal reform, and that had produced much of the complexity of the current system.

One consequence has been "command disempowerment", which was cited by Roger Gyles QC in his inquiry into misconduct aboard HMAS Success.

He said discipline problems on the ship stemmed from commanders perceiving themselves as unable to act because of the complex nature of procedures.

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BSkyB shareholders to grill James Murdoch

JAMES Murdoch will come under attack from shareholders at BSkyB's annual meeting after the telecoms watchdog called his "competence" and "attitude" into question.

Murdoch stepped down as BSkyB chairman amid fears that the News International phone-hacking scandal would damage the firm, but he stayed on as non-executive director.

Shareholder group Pensions Investment Research Consultants (PIRC) has urged shareholders to vote against his re-appointment because of the criticisms levelled at Murdoch by communications regulator Ofcom.

Murdoch is not considered to be independent as his father Rupert Murdoch is the ultimate controlling shareholder through News Corporation, the group said.

"Although Ofcom stated that the evidence available to date did not provide a reasonable basis to conclude that James Murdoch deliberately engaged in any wrongdoing, it was severely critical of him," a statement from PIRC said.

Meanwhile, BSkyB is expected to unveil on Thursday a 2 per cent rise in operating profits to STG300 million ($A469.67 million) and a 4 per cent rise in revenues to STG1.7 billion in its first quarter as it added 49,000 net customers.

Ofcom hit out at Murdoch's failure to uncover problems at News International earlier during its review of Sky's broadcasting licence in the wake of the hacking allegations.

The regulator determined that BSkyB was "fit and proper" to hold a licence, but Murdoch was spared no criticism in its concluding report.

Ofcom said: "We consider that the events set out above raise questions regarding James Murdoch's competence in the handling of these matters and his attitude towards the possibility of wrongdoing in the companies for which he was responsible."

As well as PIRC, investment campaigners FairPensions have called for Murdoch to resign in light of Ofcom's comments.

The charity, which promotes responsible and ethical investment in UK pension funds, has set up a petition calling for Murdoch to step down.

Catherine Howarth, FairPensions chief executive, said: "Non-executive directors of major British companies are responsible for oversight of management on behalf of shareholders, including pension savers.

"Whatever Murdoch's talents as an executive, his failure to ask difficult questions over phone hacking shows he lacks of the requisite skills for this role on BSkyB's board.

"Shareholders and the wider public have a clear interest in his departure."

Ofcom launched its review of Sky after Murdoch and News Corporation, which owns 39 per cent of its shares, were engulfed in the hacking scandal which led to the closure of News Corp's News of the World.

Murdoch had no involvement with News International until the end of 2007, almost a year after the sentencing of News of the World's royal editor Clive Goodman and private investigator Glenn Mulcaire for phone hacking.

But after he took over as chief executive he received an email suggesting that criminal activities were more widespread, although he claimed that he failed to read the correspondence fully.

News Corp defended Murdoch at the time of September's Ofcom report, arguing that the statements relating to his actions as an executive and director were "not at all substantiated by evidence".

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Jail the priority for paedophiles: premier

ENSURING that paedophiles found to be abusing children in schools are sent to jail is a factor in how each case is handled, South Australian Premier Jay Weatherill says.

In a spirited defence of how the government dealt with a case from 2010, Mr Weatherill said it was important that parents were informed of any allegations.

"If I was a parent in these circumstances and there was somebody who had been a perpetrator in the midst of my children, I would want to know about it," he told state parliament on Wednesday.

But he said it was also important not to jeopardise the chances of a successful prosecution.

"There are things to balance and one of the things we need to balance is to make sure we lock up these people when they perpetrate these evil crimes," Mr Weatherill said.

"One of the factors that bears on your capacity to lock someone up is not to taint the chain of evidence."

The premier's comments came after the government ordered an independent investigation into how education officials handled the case of a man charged with a child sex offence while working at a school care program.

Mark Christopher Harvey was jailed in February for unlawful sexual intercourse with a young girl in 2010 while she was attending his out-of-hours care program at an Adelaide primary school.

Harvey was removed from his position when the charges were brought against him, but a mother of children who also used the care program has since come forward saying parents were never informed of the allegations.

Education Minister Grace Portolesi told parliament on Tuesday the decision not to inform the wider school community followed advice from police.

But police said the principal of the school was told that she should consult with the education department to formulate a method of advising the school community.

"The principal was also advised that it was not the role of the police to inform the school community," a police statement said.

Ms Portolesi said on Wednesday the apparent difference of opinion was a cause for concern.

"That's why I have asked that an independent review investigates and reports to me in relation to this matter," she said.

Ms Portolesi also conceded that it was not mandatory for parents to be informed of any child sex allegations, with each case considered on its individual circumstances.

Opposition Leader Isobel Redmond said getting to the bottom of who said what to whom did not require an independent inquiry.

"It should be capable of resolution within a couple of hours of following the paper trail," she said.

Ms Redmond said the opposition also believed there should be a strict policy of informing all parents at a school where abuse allegations had been raised.

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Qld uranium could be exported through reef

THE Queensland government says it would consider shipping uranium through the Great Barrier Reef if a new advisory committee made the recommendation.

The comments come as the United Nation's environmental arm considers whether to list the reef as a World Heritage site in danger.

In a report earlier this year, UNESCO identified shipping as one of the most pressing threats to the reef's future.

The Queensland government this month lifted a long-standing ban on the mining of uranium in Queensland, despite saying before and after the March election it had no plans to do so.

Chairman of the government's new uranium mining implementation committee, and Central Highlands councillor Paul Bell, revealed on Wednesday that all options are being examined, including shipping the ore from Great Barrier Reef ports.

The committee will also look at whether uranium could be transported on the Adelaide to Darwin rail line, for export through either of those cities.

Natural Resources and Mines Minister Andrew Cripps says the whole point of establishing the committee is to get the best possible advice about how the uranium industry can recommence in Queensland.

"If the committee comes back and recommends that we identify locations for the transport of uranium products out of Queensland, obviously I'd be very positive about that," he told reporters.

"We need to identify the facilities and the locations where that could be done safely, as far as environmental standards and workplace health and safety standards are concerned, and that's the whole purpose of appointing this implementation committee."

Mr Cripps said the committee's advice will help guide the recommencement of the industry in an orderly fashion and in a safe way for all Queenslanders.

Mr Cripps said it was unfortunate that Queensland Conservation (QC) had turned down an invitation to join the committee.

QC director Toby Hutcheon said being a committee member wouldn't allow his group to challenge the decision to restart uranium mining as it was "an implementation committee, not a feasibility committee"

"We were invited and we declined," he said.

"We don't believe there is a case for it in Queensland, the reality is the government should have done a feasibility study to find out the economic, social and environmental implications before making the decision."

Mr Hutcheon said the economic factors didn't stack up and QC didn't believe uranium mining would actually go ahead in Queensland.

"The government is talking up the economic opportunities, when at the same time you've got the world's biggest uranium deposit at Olympic Dam being mothballed because there's no demand," he said.

"Western Australia allowed uranium mining in 2008 and not a single mine has been built."

However Mr Hutcheon was still worried about the potential impacts of any uranium exports through the Great Barrier Reef.

"If a ship runs aground on the reef not only does it do damage physically, but if it's containing radioactive material like uranium ore that adds massively to the threat faced by the reef," he said.

In a June report, UNESCO was highly critical of Australia's management of the Great Barrier Reef.

It said coastal development, ports and shipping were among the most pressing threats, and there was no overall plan for the future sustainable development of the reef.

The Queensland and federal governments are currently compiling a strategic assessment of the entire reef area in response to UNESCO's concerns.

The report is due to be presented to the UN body early next year.

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NT releases documents to back King sacking

NORTHERN Territory Treasurer Robyn Lambley has released documents to back her decision to sack the chair of Power and Water Corporation.

On Tuesday Ms Lambley flagged higher power and water costs for Territorians, saying tariffs had been well below the national average.

The government-owned Power and Water Corporation had lost millions of dollars and was a major drain on public finances, the government said.

On Tuesday Ms Lambley sacked the corporation's chair, Judith King.

She said she had learned of serious financial problems with Power and Water and of correspondence between Ms King and the then treasurer Delia Lawrie, who is now now the NT opposition leader.

She said Ms King had been unable to effectively communicate with the government how serious the situation was.

On Wednesday Ms Lambley released to the media letters between Ms King and Ms Lawrie.

In one letter dated April 28 last year Ms Lawrie hinted power prices would have to rise, saying tariffs for electricity, water and sewerage were to be reviewed on a basis for financial and commercial sustainability.

One day later Ms King wrote and said electricity, water and sewerage projections showed a revenue shortfall of $60 million to $80 million each year.

On April 30 this year Ms King again wrote to Ms Lawrie and said the financial sustainability of the corporation remained "a significant challenge" without revenue increases, cost reductions or deferral of capital investments.

In parliament on Wednesday Ms Lawrie said that while in government the Labor Party had chosen not to pass on the full power and water price rises recommended in a report because it wanted to keep the costs of living low.

"You (Ms Lambley) have shown you care more about turning Power and Water into a profit-making enterprise rather than the essential services deliverer that it is," she said.

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Seven in court over Vic drug bust

EDS: Changes keyword from Clandestine

By Melissa Iaria

MELBOURNE, Oct 29 AAP - Compiling evidence against seven men charged over one of Victoria's biggest ever drug labs may be delayed because of the sheer scale of the operation, a court has been told.

Seven men, aged 26 to 44, made their first appearances in the Melbourne Magistrates Court on Monday charged with manufacturing and trafficking large commercial quantities of methylamphetamine, following a swoop at suburban Sunshine West on Friday afternoon.

All of the accused - one Canadian national, one Vietnamese national, three South Australian men and two from NSW - were remanded in custody.

Lawyers for one of the men reported their client had a rib injury, while another accused sported a black eye in the dock.

None applied for bail.

Prosecutor Sarah Kavanagh told the court a brief of evidence was due to be served on the accused by January 21, but this might be delayed.

"Given the size and complexity of the brief, it's likely an extension of time application will be made," Ms Kavanagh told magistrate Julian Fitzgerald.

Police had executed search warrants at two homes in Joan Street and Alpini Parade, Sunshine West, acting on intelligence from the Australian Crime Commission (ACC).

The accused men are Canadian national Phuon Nam Nguyen, 32; Dien Nguyen, 38, of Bossley Park, NSW; Yana Orm, 26, of Paralowie, South Australia; Somkit Chankham, 44, of Salisbury North, South Australia; Huu Thanh Pham, 39, of Bossley Park, NSW; Anousone Somchanmavong, 27, of Salisbury North, South Australia; and Vietnamese national Cuong Viet Bui, 39, of Hai Phong.

Bui had his preliminary filing hearing adjourned until Tuesday so a Vietnamese interpreter could assist him.

The charged men will face a committal mention hearing on March 4.

Their arrests followed an investigation involving Victoria Police, the ACC, Australian Federal Police and the Australian Customs and Border Protection Service.

AAP mi/mn/nl/wj

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Shark brains similar to humans: scientists

SHARK brains share several features with human brains, which could help researchers working on a shark repellant, scientists at the University of Western Australia (UWA) say.

Researchers say sharks and other cartilaginous fish have highly developed sensory systems and relatively large brains.

A special edition of the journal Brain, Behaviour and Evolution focuses on research about the brains of sharks and other cartilaginous fish, including rays and sawfish.

Editor Kara Yopak from UWA's Oceans Institute said the studies suggested people may have more in common with sharks than previously thought.

Dr Yopak said sharks and their relatives represented the earliest jawed vertebrates.

"Despite broad divergence, there are a number of common features of the brain that evolved at least as early as cartilaginous fishes and persist across all vertebrates," she said.

"For instance, one of the papers shows that with great white sharks, the area of the brain that receives visual input is quite large, and suggests the relative importance of vision in these animals is quite high.

"This information may direct researchers' efforts towards targeting the visual system when developing repellants for sharks."

Another paper suggested the cerebellum - which controlled motor movement and appeared first in early sharks - was an important evolutionary advancement that led to aspects of higher neural function in vertebrates including humans, Dr Yopak said.

AAP anr/rlm/nl

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'Darwin's saviour' dies aged 90

HE was dubbed "Darwin's saviour" for his work after Cyclone Tracy's devastation, but former Australian of the Year Alan Stretton was also an AFL footballer, war hero and lawyer.

Major General Alan Stretton died on Friday of a massive haemorrhage after a long illness.

He had been an achiever in anything he attempted, his son and prominent Canberra lawyer Greg Stretton, SC, recounted on Monday.

"He had a wonderfully full and active life and his mind was with him until the end, but unfortunately his physical health had begun to deteriorate badly," Mr Stretton said.

As well as a long career in the military, which saw him fight in World War II, the Korean War, Malaysia and Vietnam, Maj Gen Stretton found time to play as a ruckman for the St Kilda AFL team where he had his jaw broken by Jack "Captain Blood" Dyer.

He was later selected to join the Victorian basketball team, though he never played in the squad.

During his long career in the military Maj Gen Stretton rose to prominence for heading the Natural Disaster Organisation when Cyclone Tracy struck Darwin in 1974.

He flew into Darwin on Christmas Day to find that the cyclone had destroyed more than 70 per cent of the city's buildings and killed scores of people.

For his efforts, Maj Gen Stretton was named Australian of the Year in 1975, when he said he wished there were 45,000 awards so one could be given to each person in Darwin.

"He will be remembered for Darwin, but also I think be remembered for his staunch opposition to the war in Afghanistan," Mr Stretton said.

During the lead-up to the Afghan war, Maj Gen Stretton addressed crowds in Melbourne and Sydney, warning that it could turn into a drawn-out conflict like Vietnam.

"One of his great gifts was that he hated bulls**t and politicians that mouthed it," Mr Stretton said of his father.

Maj Gen Stretton also practised law in Canberra for about 20 years, specialising in conveyancing and commercial law.

While he drew admirers, there were also critics of Maj Gen Stretton's role in Darwin during the Cyclone Tracy rebuild.

Local historian Peter Forrest said Maj Gen Stretton's role was overstated and promoted by the federal government of the time to cover up its inadequacies in dealing with other natural disasters earlier in the year.

"I think it is wrong to portray him as Darwin's saviour and certainly wrong to portray him as the man who reconstructed Darwin," Mr Forrest said.

"Among those who were here and very much involved in the counter-disaster effort I think there would be a very different view about Stretton than might be held in the wider Australian community," he said.

Maj Gen Stretton is survived by two daughters, Virginia Stretton and April Johnston, and a son, Greg Stretton.

Although details of his funeral are yet to be finalised, it is expected he will be farewelled with full military honours at the Duntroon Military College in Canberra on Friday.

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Australians head overseas for surrogacy

AUSTRALIANS are increasingly turning to surrogacy arrangements in India to fulfil their desire to have children, new research shows.

Hundreds of Australians are choosing India as their destination for commercial surrogacy, followed by Thailand and the United States, rather than opt for a legal arrangement in Australia which bans compensating surrogates.

Research by Surrogacy Australia, an Australian agency involved in international surrogacy, found there were 200 recorded surrogacy births in India to Australian couples so far this year, compared to 179 in 2011, 86 in 2010 and 47 in 2009.

The research included Australian government statistics, data collected from 14 large overseas surrogacy agencies and a survey of 217 Australians.

The survey of heterosexual and same-sex Australians who had considered or sought out surrogacy found many households were refinancing their homes to afford the thousands of dollars in agency and travel costs.

The average cost of surrogacy in India was $77,000 while an arrangement in the US cost on average about $176,000.

This compared to about $45,000 for altruistic surrogacy allowed in Australia.

Half of those surveyed mortgaged or refinanced their home to pay for surrogacy, while 45 per cent cut their spending.

Others took out a bank loan, borrowed from family or sold property.

Surrogacy Australia president Sam Everingham said the trend towards overseas surrogacy would continue "while Australia maintains laws and policies that make surrogacy quite difficult within Australia".

"We're getting very, very small numbers accessing surrogacy here," said Mr Everingham, who will present the research at the annual Fertility Society of Australia conference in Auckland on Monday.

Australian Institute of Health and Welfare data shows there were just 19 births from Australian surrogacy arrangements in 2009, eight in 2008 and seven in 2007.

Of the participants surveyed by Surrogacy Australia, just six had a baby following surrogacy in Australia, while four commenced an arrangement but failed and 13 were still in process.

"The research has shown that high levels of regulation within Australia and lower barriers in some overseas markets is shifting the practice of surrogacy offshore and it is a big industry," Mr Everingham said.

"The lack of legal ability to advertise or compensate a surrogate in Australia is pushing many hundreds of infertile or same-sex couples offshore."

However, Mr Everingham said new visa laws enacted by India would prevent singles, same-sex and de facto couples from entering surrogacy agreements which could lead to a drop in numbers in coming years.

But Australians might then shift their search to countries like Thailand, he said.

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Hawaii tsunami warning after Canada quake

AN earthquake that struck in the Queen Charlotte Islands region off the west coast of Canada has generated a tsunami that is heading towards Hawaii, the Pacific Tsunami Warning Center said.

The first tsunami wave was expected to arrive in the Pacific island state at 10.28pm local time on Saturday (7.28pm AEDT Sunday), the Hawaii-based centre said.

Residents were advised to evacuate coastal areas, and warning sirens sounded across the Hawaiian islands.

Centre officials told CNN that waves of one to two metres were expected.

"Basically this tsunami is pointed right at us," Gerard Fryer, the centre's senior geophysicist, said on CNN.

The tsunami waves could wrap around the islands so all shores were at risk, the centre said, adding that the tsunami could consist of multiple waves.

The warning was issued after a magnitude 7.7 earthquake struck off the Queen Charlotte Islands late on Saturday.

No reports of casualties or damage were reported on the sparsely inhabited islands.

The West Coast-Alaska Tsunami Warning Centre also issued a warning for the coasts of British Columbia and Alaska.

Emergency officials in British Columbia said a small tsunami had been recorded on a deep ocean pressure sensor, but its effect was not immediately known.

The officials urged residents in low-lying coastal areas to be alert to instructions from local officials and be prepared to move to higher ground.

The Globe and Mail newspaper reported that the US Coast Guard in Alaska was trying to warn everyone with a boat on the water to prepare for a potential tsunami, the report said.

Natural Resources Canada said in a statement that the tremor was felt across much of north-central British Columbia.

"There have been no reports of damage at this time," the ministry added.

However, experts said tremors exceeding magnitude 7.0 were extremely dangerous.

"A 7.7 is a big, hefty earthquake. It's not something you can ignore," Gerard Fryer, senior geophysicist at the Pacific Tsunami Warning Center told CNN International.

He explained that the latest tremor had occurred partly under an island, but mostly under shallow water.

"I think we have to be thankful it happened where it did," Fryer said. "It definitely would have done significant damage if it had been under a city."

The Queen Charlotte Islands, which are also known by their official indigenous name of Haida Gwaii, comprise about 150 islands north of Canada's Vancouver Island. Their total population is about 5000.

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Union raises alarm on NSW asbestos

A SYDNEY power company has defended its safety practices after a union banned work on electricity meters amid fears workers and householders may have been exposed to asbestos.

The Electrical Trades Union (ETU) has stopped working on electricity meters in homes built prior to 1983 after Endeavour Energy, which covers about 800,000 homes in western Sydney, the Blue Mountains and the Illawarra, issued a hazard warning to staff.

The ETU, whose officials are due to meet with Endeavour representatives on Tuesday over the issue, says the ban is to protect the health of the union's members.

In a statement released on Sunday, Endeavour defended its safety practices, saying the safety of its customers and workers remained its top priority.

"We issued a pre-cautionary safety alert to our workforce on Friday after one of our staff reported the presence of dust residues in customers' meter installations in older homes," Endeavour's chief operating officer Rod Howard said.

"Some older homes built before 1988 may have customer meter boards containing asbestos which is perfectly safe in its bonded form.

"If it is drilled, workers are required to remove any residue according to standard industry safety practices."

Mr Howard said homeowners were not at risk but that they should contact a licensed electrician "if they needed to access their switchboard".

In the hazard alert, Endeavour said it understood "that the composition of meter boards installed prior to 1983 includes asbestos".

The power company said there would be no work on or near contaminated boards and staff would have to wear masks when working on meter boards in older houses until a review was completed.

An Endeavour spokesman told AAP he did not know how many homes across its network had meter boards that contained asbestos.

ETU secretary Steve Butler said the work ban was imposed because its members regularly worked on pre-1983 meter boards.

"Obviously the ETU's concern is that our members may come into reasonably regular contact with this product," Mr Butler told reporters on Sunday.

The president of the Australian Asbestos Diseases Foundation, Barry Robson, called on the company to inform all of its customers that there was a possibility their power boards contained asbestos.

Ausgrid, another major power supplier, said asbestos was commonly used in Australian meter boards installed prior to 1988, but it was used in bonded form which didn't present a risk.

Essential Energy acknowledged that older meter boards might contain asbestos which could pose a risk during drilling.

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