Suspected drug ring busted in Canberra

Police have raided 10 north Canberra properties, uncovering what they say is a major drug syndicate. Source: AAP

A MAJOR drug ring has been busted in the national capital, with a Canberra man set to face court charged with trafficking drugs.

ACT Policing raided several north Canberra properties on Friday afternoon where they seized $200,000 worth of illicit drugs, cars and cash.

They found 728 grams of cocaine, a methylamphetamine-suspected substance, tablets suspected to be ecstasy, and steroids.

Police believe the operation cracked a major drug syndicate operating in the capital.

A 28-year-old man will appear in court on Saturday charged with drug trafficking.

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Iran billionaire executed over $2.8b fraud

A BILLIONAIRE businessman at the heart of a $US2.6 billion ($A2.8 billion) state bank scam, the largest fraud case since Iran's 1979 Islamic Revolution, has been executed, state television reports.

Authorities put Mahafarid Amir Khosravi, also known as Amir Mansour Aria, to death at Evin prison, just north of the capital, Tehran, the station reported.

The report said the execution came after Iran's Supreme Court upheld his death sentence.

The fraud involved using forged documents to get credit at one of Iran's top financial institutions, Bank Saderat, to purchase assets including state-owned companies like major steel producer Khuzestan Steel Co.

Khosravi's business empire included more than 35 companies from mineral water production to a football club and meat imports from Brazil.

According to Iranian media reports, the bank fraud began in 2007.

A total of 39 defendants were convicted in the case. Four received death sentences, two got life sentences and the rest received sentences of up to 25 years in prison.

The trials raised questions about corruption at senior levels in Iran's tightly controlled economy during the administration of former President Mahmoud Ahmadinejad.

Mahmoud Reza Khavari, a former head of Bank Melli, another major Iranian bank, escaped to Canada in 2011 after he resigned over the case.

He faces charges over the case in Iran and remains on the Islamic Republic's wanted list.

Khavari previously admitted that his bank partially was involved in the fraud, but has maintained his innocence.

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Gunmen fire inside El Salvador bus, kill 6

Police in El Salvador say gunmen boarded a bus in a town near the capital killing six people. Source: AAP

POLICE in El Salvador say gunmen boarded a bus in a town near the capital and opened fired on passengers, killing six.

National police director Rigoberto Pleites said another five people were wounded during the Friday bus attack in the town of San Luis Talpa near San Salvador.

Pleites said witnesses told police the assailants were gang members dressed in uniforms similar to those issued to road maintenance workers.

He said investigators haven't confirmed they belonged to a gang.

Police Commissioner Mauricio Ramirez said there have been threats of increased violence in the country in the coming days, but he didn't provide any other details.

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WA man, 69, jailed for life over murder

A 69-YEAR-OLD Perth man has been sentenced to life in prison for repeatedly stabbing his house mate during a drunken argument.

John Henry Waterfall was found guilty of murdering Fifita Mailau, 56, at their Mount Lawley house, which they shared with two other people, in March 2013.

The West Australia Supreme Court heard on Friday that Mr Mailau was an abusive and violent person.

In sentencing, Justice Ralph Simmons said Mr Mailau had called Waterfall names that he found "deeply insulting" as they argued.

"You felt you had no alternative but to deal strongly with the deceased, if you and the others were not to be vulnerable to bad behaviour from the deceased in the future," he said.

The court heard Waterfall grabbed a knife from his bedroom and returned to the kitchen where he repeatedly stabbed Mr Mailau in the neck and abdomen.

"You were very angry. Some of the stab wounds were very deep," Justice Simmonds said.

"A number of them on their own were capable of killing him and one went into his heart."

The knife remained in Mr Mailau's chest after the final stabbing, the court heard.

Waterfall must serve at least 16 years behind bars before he will be eligible for parole.

Outside court, Detective Sergeant Paul Thornton said the men had been drinking very heavily.

"Alcohol in this situation was probably the main factor contributing to the tragic circumstance," he said.

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Abbott urged not to 'wink' at Indonesia

An Indonesian newspaper has warned PM Tony Abbott against winking when he visits Jakarta. Source: AAP

PRIME Minister Tony Abbott has been warned to keep his winking" out of diplomacy, with the infamous gesture now also making headlines in Indonesia.

The wink - Mr Abbott's response while listening to a 67-year-old talkback radio caller who said she was working on an adult sex line to supplement her pension and pay her healthcare bills - has been shared globally on social media.

It has been interpreted in many ways, with the prime minister himself describing it as a "mistake".

The Jakarta Post newspaper says in Indonesia, his wink could be seen as suggestive of arrogance.

In its editorial on Friday, titled 'Abbott's wink: what's the joke?', the influential English-language newspaper noted, "In the eyes of many Indonesians, the PM is not averse to being insensitive."

Relations between Indonesia and Australia quickly deteriorated after Abbott came to power, as he demonstrated he was going to be much tougher with his neighbour than the Labor Party had been.

In doing so, he is perceived by many Indonesians to be extremely arrogant.

The newspaper says Mr Abbott can expect Indonesia's next president to be less accommodating than Susilo Bambang Yudhoyono.

Winking and smiling while listening to Indonesia's complaints will cost him diplomatically, it says.

Mr Abbott is tipped to visit Jakarta next month, his first trip since Indonesia suspended cooperation with Australia late last year over spying claims.

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China mine tycoon sentenced to death

A Chinese mining tycoon has been sentenced to death for leading a crime gang that killed rivals. Source: AAP

A FORMER Chinese mining tycoon has been sentenced to death for leading a crime gang that killed rivals, a state news agency reports, in a case that revealed ties between organised crime and politicians.

Liu Han is former chairman of energy conglomerate Sichuan Hanlong Group in the southwestern province of Sichuan, which owns stakes in Australian and US mines.

He disappeared in March 2013, temporarily disrupting deals to finance mine development in Nevada and Australia, before police announced he had been detained.

The death sentences for Liu Han and his brother Liu Wei were the first in trials of their 36-member gang by a court in the central province of Hubei, the Xinhua News Agency said.

Chinese President Xi Jinping has launched an anti-corruption crackdown that has ensnared senior politicians and influential businessmen.

Many of the Sichuan cases are believed linked to Zhou Yongkang, a former member of the Communist Party's Standing Committee, the country's ruling inner circle.

He is now believed to be a target of the wide-ranging graft investigation.

The Liu brothers and their associates have been charged with 15 crimes, including murder, assault, illegal detention, blackmail and operating casinos.

Prosecutors say their criminal activities, dating back to 1993, helped them amass 40 billion yuan ($A6.9 billion) in assets with businesses in finance, energy, real estate and mining, Xinhua has said.

The gang is accused in the deaths of nine people, five of whom were shot, according to earlier reports.

Police seized hand grenades, a half-dozen submachine guns, 20 pistols and other firearms.

Liu Han ranked No. 148 in 2012 on Forbes magazine's list of the richest Chinese businesspeople, with a fortune estimated at $US855 million.

He told The Wall Street Journal in 2010 that an investor once shot up his car after suffering losses in a deal.

The group is accused of fostering ties with politicians in Sichuan that helped Liu Han win appointment as a delegate of the provincial advisory body for three terms, according to earlier Xinhua reports.

Among the accused are three officials in city-level police and prosecutors' offices in Sichuan, Xinhua said.

It said Liu Wei's testimony showed the officials received money and gifts as well as weekly parties with illicit drugs.

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Woodside weighs options for cash stash

WOODSIDE Petroleum chief executive Peter Coleman says he needs time to consider options for excess cash after the company's exit from the $US2.5 billion Leviathan project.

The announcement on Wednesday that Woodside would not buy a stake in the giant Israel-based gas project sparked speculation about a capital return to shareholders.

But Mr Coleman refused to commit to a special dividend on Thursday, saying capital could be directed to new projects.

"I think it's too early for me to give a commitment one way or the other as to what we'll do," Mr Coleman told media during an investor day briefing in Sydney.

Mr Coleman said management would take options to Woodside's board "in the not too distant future".

He did not rule out a return to Leviathan in the future, saying the Israeli field remained a world class asset.

The decision to forego the option to take a stake was driven by "surface issues" including taxation, he said.

Woodside emphasised new exploration and cost discipline in its presentation to investors, with Mr Coleman saying the company would not pursue assets that could not make a commercial return.

Investments would be in the $1 billion to $5 billion range and funded by debt, he said.

While the Western Australian Browse project is to be the key driver of growth for the company, Mr Coleman said Woodside had renewed its focus on exploration - an area that had been weak - by bringing in new expertise.

"We had developed an organisation that was technically and process-wise world class but we didn't have any oil finders," Mr Coleman said.

Australia remains the core territory for Woodside but it is now seeking to balance its assets with exploration in Africa, South America and Canada and projects in Ireland, New Zealand and Myanmar (Burma).

Media reports on Thursday suggested Woodside was considering a takeover of Papua-New Guinea-focused Oil Search.

Mr Coleman said while PNG was on Woodside's radar, companies and assets in the island nation were too expensive to add value at present.

Mr Coleman said he did not feel pressure to deliver a major project as investors were focused on earnings-per-share value rather than increased production at any cost.

Woodside chief financial officer Lawrie Tremaine said a forecast rise in free cashflow would allow the company to continue its strong dividend payout ratio - currently 80 percent of underlying net profit after tax "for the foreseeable future".

Woodside shares gained 49 cents or 1.19 percent to $41.72 on Thursday.

Morningstar resources analyst Mark Taylor said the oil and gas sector had benefited from a general rise but there was also some relief around the exit from Leviathan.

"I think that was a flawed strategy," he said.

Mr Taylor said Woodside should focus freed-up capital on new exploration around its Australian assets.

"I think they should really be pumping their existing assets for all they are worth," he said.

Mr Taylor was not supportive of a capital return to shareholders, saying the current dividend ratio was enough.

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Alleged Sydney drug syndicate behind bars

Four Chinese nationals on student visas have been caught up in a massive drug sting in Sydney. Source: AAP

THEY came to Australia on student visas but stayed on illegally and allegedly became part of a criminal syndicate to prop up their lives abroad.

Now three Chinese nationals are facing long jail terms after a major police sting.

Enhua Huang, 24, Reng Chen, 22, and Zhiq Lin, 22, were among seven people arrested on Tuesday after police found 15kg of pseudoephedrine in Auburn in Sydney's west.

The drug haul is part of almost 60kg of the drug precursor police and customs have found across Sydney in the past month.

Police allege the three men had come into the country on international student visas but, at the time of their arrest, were in Australia illegally.

A fourth man, 23-year-old Hai Hui He - an Australian citizen - was also arrested.

All four were charged with large commercial drug supply while another woman, also a Chinese national, was taken to Villawood detention centre.

Two men were released pending further inquiries.

According to court papers, police allege Chen and He, a father of two from Auburn, were both part of a criminal network and relied on drug supply to support their lifestyle.

All four men charged were refused bail in Burwood Local Court on Thursday.

Detective Superintendent Scott Cook said police had seen a pattern where people who came to Australia on student visas became caught up in a gangster lifestyle.

"They are not necessarily students," the Organised Crime Squad commander told reporters.

"A lot of them get caught up in criminality and a lot of them are used by established criminal networks to enter the gangster lifestyle.

"That may not be the case for these individuals but that is the pattern we have seen."

On top of the pseudoephedrine haul, police seized two kilograms of ice, $870,000 worth of heroin and an SKS assault rifle from the criminal syndicate.

NSW Police Commissioner Andrew Scipione had a stern warning for criminals.

"If you think it has been tough to do your business until now, you ain't seen nothing yet," he said.

Chen and He will appear in Burwood Local Court on July 7.

Huang and Lin will appear in the same court on July 17.

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Miners, feds step up pressure over strike

Fortescue Metals has warned it could cut jobs if a threatened strike at Port Headland goes ahead. Source: AAP

AUSTRALIA'S biggest iron ore miners and the federal government have stepped up pressure to prevent a strike at Australia's largest export port.

Tugboat workers are threatening to strike at Port Hedland for up to a week over pay and leave entitlements, a move mining giant BHP Billiton says could force it to halt production and cost up to $700 million.

Talks between the Maritime Union of Australia (MUA) and tug operator Teekay Shipping are deadlocked following 11 months of discussions over pay and leave entitlements.

BHP has flagged that it may use national interest laws to prevent the strike while Fortescue Metals Group, another port user, could also intervene.

It comes as the federal government sent officials to Port Hedland to monitor the situation in a bid to protect Australia's most valuable export industry.

Employment Minister Eric Abetz would not say at what point the government would intervene in the matter, but called on opposition leader Bill Shorten to step in and speak to the MUA.

"To prejudice the goose that is laying the golden egg for us would be economic vandalism at its worst and that is why Bill Shorten needs to intervene," Mr Abetz told reporters in Perth on Thursday.

Mr Abetz said Chinese steel mills did not have to take iron ore from Australia and would look elsewhere if supply became unreliable.

Mr Shorten said the worst news for the dispute was that the minister would not act.

"Minister Abetz seems to have forgotten that he's the minister and this is his responsibility," Mr Shorten said.

Meanwhile, Fortescue Metals has threatened to stand down workers if the strike goes ahead.

Chief executive Nev Power said the industrial action would threaten the livelihoods of thousands of Australians and cost millions of dollars in lost government royalties and tax revenues.

MUA WA Assistant Secretary Will Tracey says he cannot understand why the industry is prepared to lose $100 million a day when the whole Enterprise Bargaining Agreement would be worth less than $1 million.

"Both industry and the government are trying to create the impression that these deckhands work only a fraction of the year, in an attempt to portray the MUA as unreasonable and justify a political attack on the union and Australia's industrial relations laws," Mr Tracey said.

Morningstar analyst Mark Taylor added that Fortescue workers would still need to be paid if they were stood down and job cuts were unlikely.

"Perhaps Fortescue doesn't want to say how much it's going to cost them per day because they're obviously in much tighter financial circumstances than BHP or Rio Tinto and it's probably partly political," he said.

A strike would mean lost sales for BHP, Fortescue and Atlas Iron which are already under pressure with iron ore prices slumping to 20-month lows and below $US100 a tonne.

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NZX 50 drops to month low

THE NZX 50 Index has dropped to a month low as investors await evidence of earnings growth that would justify a fully priced bourse.

Fisher & Paykel Healthcare fell ahead of reporting annual earnings on Thursday, while Ryman Healthcare declined after earnings this week met expectations.

The benchmark index fell 26.318 points, or 0.5 per cent, to 5108.573 on Wednesday.

Within the index, 31 stocks fell, nine rose and 10 were unchanged. Turnover was $116 million.

The NZX 50 has advanced 7.9 per cent this year, outperforming Australia's S&P/ASX 200 Index's 1 per cent gain and Japan's Nikkei 225 14 per cent decline.

F&P Healthcare dropped 1.4 per cent to $4.16, and has gained 7.8 per cent this year.

Ryman Healthcare, the retirement operator which reported annual earnings on Monday, slid 1.7 per cent to $8.30.

"People are deciding that perhaps the New Zealand market has run too far - we've got GDP growth that has accelerated to a point now where it's not going to continue to accelerate," said Paul Harrison, managing director at Salt Funds Management.

"Our market has gotten highly valued now, and we really need some strong results from companies.

"Looking at that Ryman result the other day, people are used to them exceeding expectations and they didn't."

Rival retirement village operator Summerset Holdings Group dropped 2.8 per cent to $3.46, while Metlifecare was unchanged at $4.21.

Diligent Board Member Services, the governance app maker, led the benchmark index lower, dropping 3.9 per cent to $4.25.

Trade Me Group, the online auction site, was the day's best performer, rising 2.9 per cent to $3.61 after dropping to a two-year low on Tuesday.

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PM says sex line wink a response to host

PRIME Minister Tony Abbott says he was just reacting to his radio host when he winked and smiled in response to a talkback caller who said she resorted to phone sex work to make ends meet.

One of the calls Mr Abbott took on Melbourne radio on Wednesday was from a chronically ill grandmother and pensioner named Gloria, who said she worked on a phone sex line to pay her bills.

The prime minister immediately winked at ABC presenter John Faine following the admission from the woman, who said she would have to find at least $850 more a year following a federal budget including contentious Medicare co-payments.

A spokeswoman for Mr Abbott told Fairfax Media the wink was to assure the presenter he was happy to proceed with the call, but the Prime Minister later told Perth's 6PR radio that he was simply reacting to Faine's facial expression.

"It was a reaction to John, really," Mr Abbott told Fairfax radio.

"Obviously it was an interesting call from someone who had an interesting story.

"John was smiling at me and I responded to him."

He dismissed claims the Medicare co-payment for an individual's first 10 visits to the GP each year was unfair.

"Is it fair and reasonable to charge people $5 or $6 even if they're pensioners for their PBS drugs?

"Why is it somehow grievously wrong to ask people to make a similar contribution when they go to the doctor?"

Mr Abbott also rejected the suggestion the debt levy represented a broken election promise, given he admitted it was a tax and had promised voters there would be no new taxes or big surprises.

"I'm not saying it's not a new tax - I'm saying we haven't broken any of our fundamental commitments.

"I think we're getting on with the job of keeping all of them.

"I appreciate there are a lot of people running around saying that we've broken commitments.

"These things are in the judgment of the commentariat.

"I'm very comfortable with this. I think it's what this country needs now."

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Xie said 'I hate you all to death': court

GRANDFATHER Yang Fei Lin says his relationship with accused killer Lian Bin "Robert" Xie became splintered over his slain son's assets in the months after five Lin family members were murdered in their Sydney home.

At one point things got so heated, he said, that Xie yelled: "I hate you all to death."

Xie is accused of creeping into the home of his brother-in-law Min Lin and sister-in-law Lily Lin in North Epping in the early hours of July 18, 2009.

The crown says he was motivated by bitterness when he killed Min, Lily, her sister Irene and their two sons Henry, 12 and Terry, nine, with a hammer-like weapon.

Xie has pleaded not guilty.

For the second day, Mr Lin gave evidence in his son-in-law's trial explaining how after the killings and before Xie's arrest that fractures began to form.

Speaking through an interpreter, Mr Lin became animated as he recounted one argument in September 2009, in which he said Xie became "really angry".

"(He) jumped up and shouted 'Why do you think there are two families now? I hate you all to death'," Mr Lin recalled.

"(Robert) said: 'Get out of my house, get out of my house', and I replied, 'You're a bastard'."

By the end of 2009, a dispute about the guardianship of the surviving member of the family and the assets of their dead son, Min, was in full swing.

Mr Lin said Xie questioned why he would not give any of the inheritance to his wife Kathy.

Mr Lin said he and his wife Feng Qing Zhu replied: "We are not dead yet. How can you fight over the assets with us?"

Mr Lin said he believed his son had assets totalling more than $2 million at the time of his death.

The court has previously heard Xie and Kathy had not worked steady jobs since moving to Sydney in 2005.

Mr Lin said he had told Xie prior to the murders that they weren't happy about that, to which he replied: "Well everyone has their own different lifestyles".

The court heard that in the year before Lily's death, Mr Lin found her diary that had a series of entries about a man called "Rob".

"Having been trained by Rob these years, and lived with him 'together' made me a lot more familiar with him ... I hate to part with him," she wrote in one entry.

Mr Lin said he confronted his daughter-in-law about it, saying "my family does not have extra-marital affairs".

He said Lily wouldn't tell him who Rob is, simply saying he was "from the pyramid selling business".

The court has previously heard that Lily suffered from a mild mental illness and would occasionally believe she was having affairs with men.

The trial continues.

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ICAC on hold following Hartcher departure

Geoffrey Watson SC has apologised for his conduct while examining Chris Hartcher at the ICAC. Source: AAP

SOME politicians take the high road after a stint before the NSW corruption watchdog.

Chris Hartcher chose the low road - the basement carpark, in fact.

The sidelined ex-Liberal energy minister beat a hasty retreat from Independent Commission Against Corruption (ICAC) offices on Tuesday afternoon, refusing to speak to journalists and shielding his face from the cameras.

His departure marks the end of two combative days of evidence, and the start of a two-month interlude in the ICAC's cash-for-favours inquiry.

Operation Spicer has heard Mr Hartcher masterminded the creation of "sham" company EightByFive, which allegedly issued fake invoices to disguise illicit political donations from property developers including Sydney's Gazal family and former coal mogul Nathan Tinkler's Buildev.

He is also accused of using his own nephew to launder $4000 in Liberal Party donations through his old law firm and then through a business run by the partner of long-time aide Ray Carter, before "pocketing" the cash.

On Tuesday he denied instructing Mr Carter - who has admitted to soliciting donations from banned political donors in the lead-up to the 2011 state election - to lie to the inquiry.

Barrister James Trevallion put it to Mr Hartcher that he showed up at Mr Carter's house unannounced in November last year after ICAC investigators began circling.

"You said to him that you wanted to get your stories straight in respect to the $4000 because you knew it was likely to become an issue at ICAC," Mr Trevallion said.

"And you told him that he should say, if he was asked, that he kept the money himself."

"I reject that absolutely," Mr Hartcher shot back.

Under cross-examination from his own counsel, Mr Hartcher slammed suggestions from counsel assisting, Geoffrey Watson SC, that he leaked details of the notorious $3000 bottle of Grange that brought down former NSW premier Barry O'Farrell.

"I deeply resent that question being asked and it was completely untrue," he said.

"Mr Watson, you recklessly asked that question."

Tempers had cooled since Monday's evidence, when the verbal sparring between Mr Watson and Mr Hartcher became so heated Commissioner Megan Latham ordered the parties to "back off right now".

"I could try and blame it on the fact that I'm tired, or I could try and blame it on the fact that I'm red-haired. I'll just leave it at this: I apologise for what I did and I will try and correct my conduct," Mr Watson told Ms Latham on Tuesday morning.

The inquiry has now been suspended to allow evidence that allegedly implicates former NSW police minister Mike Gallacher in the donation rort scandal, to be further investigated.

Mr Hartcher was excused from the witness box - but not from his summons, meaning he may be recalled when proceedings resume on August 4.

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No rate change on RBA's horizon

The minutes of the RBA's most recent meeting show that interest rates aren't moving any time soon. Source: AAP

BORROWERS can rest assured that interest rates aren't going anywhere any time soon, with the federal budget expected to restrain economic growth.

The Reserve Bank has, yet again, indicated it has no plans to change the cash rate, which remains at a record low 2.5 per cent.

In the minutes of its May meeting, released on Tuesday, the board judged it was prudent to leave rates on hold while they continued to have the "expected effects" on economic activity.

"A sustained increase in dwelling investment was in prospect, consumption had strengthened a little and business conditions were around average levels," the RBA said.

"The board considered that the current accommodative stance of policy was likely to be appropriate for some time yet."

The outlook for the global economy hadn't changed, the RBA said, while the Australian economy appeared to have picked up a little over the past two quarters, as expected.

But the board said overall growth in coming quarters was likely to be below trend as growth in exports was expected to slow and mining investment continued to decline.

Growth would also be impacted by "fiscal consolidation", policy changes such as spending cuts and new taxes in the federal budget, which had yet to be released when the RBA met two weeks ago.

JP Morgan chief economist Stephen Walters said the minutes confirm that the RBA believes the economy's transition away from mining investment is a "work in progress".

"Officials seem hopeful that the economy is evolving pretty much as forecast, but don't seem to have a high degree of conviction around this assessment," he said.

"There was acknowledgment that auction clearance rates are fading and that demand for home loans, previously booming, had stabilised."

Mr Walters said the outlook for interest rates would hinge on how consumers and businesses react to last week's budget, and that another rate cut was possible.

"So far, indications are the reaction is pretty ugly; we expect a double digit fall in the (Westpac) consumer confidence reading tomorrow," he said.

CommSec chief economist Craig James said monetary policy was balancing fiscal policy.

"In a macro sense the budget isn't a major drag on the economy but the perception of hurt from budget changes is impacting confidence to a greater extent than the reality of the actual decisions," he said.

"The next interest rate decision on June 4 will be super-important... because the Reserve Bank will be able to give its judgment on the fiscal contraction associated with the federal budget and the implications that this poses for interest rate settings."

CommSec still expects a rate hike in late 2014 or early 2015, he said.

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"Everything is gone": Lin grandfather

THE morning after five members of his family were murdered, grandfather Yang Fei Li received a call from the alleged killer telling him "something terrible has happened".

He began silently praying for everything to be okay.

It wasn't long until he discovered "everything was gone".

Speaking through an interpreter, Mr Lin told the Supreme Court on Tuesday about the day he learnt his son Min Lin, 45, his wife Lily, 44, her sister Irene, 39, and his grandchildren Henry, 12, and Terry, nine, had been killed in their North Epping home.

He said the night before the discovery on July 18 2009, had been spent like any other Friday family get together at the grandparents' house.

His grandson Henry complained of having broken shoes, and his wife, Feng Qing Zhu had given him $50 for winning a badminton competition.

Mrs Zhu had even tried to get Henry to stay the night but the 12-year-old said he needed to play the sport first thing in the morning.

All in all, it was a harmonious, quiet, normal night, Mr Lin added.

The next morning, everything changed.

He got a call from their son-in-law Lian Bin "Robert" Xie, saying, "something terrible has happened to the Lin family," Mr Lin recounted.

"I asked, 'What happened? He said, 'I can't say it now ... get here by train as soon as possible'."

After Xie agreed to pick him and his wife up, Mr Lin recalled: "I didn't say anything even when I was in his car; I was silently praying that nothing bad had happened to my family."

Xie has been accused of carrying out the five murders with a "hammer-like" weapon. He has pleaded not guilty.

When they arrived at the Lin family home in Sydney's northwest, Mr Lin said he was told Lily, her sister Irene and the two children had died.

At this stage, however, his son Min's death had not been confirmed.

"I was always wondering if my son Min had been abducted," Mr Lin said.

It was only when the family were later taken to hospital to see a social worker that they were told nobody had survived.

"We were really heartbroken. Very sad. Everything is gone," Mr Lin said.

Earlier on Tuesday, Mr Lin told the court that before the "five members of my son's family were murdered we had a normal and good relationship with my daughter (Kathy) and her husband".

However, after the killings he said disputes concerning his son's inheritance and the guardianship of the sole surviving member of the Lin family began.

The trial continues.

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WA won't meet funding shortfalls: Barnett

THE Western Australian premier concedes the federal government's planned public hospital funding cuts will start having an impact from July 1, but the state won't cover the shortfalls.

After the opposition lashed Colin Barnett for skipping the gathering, the Liberal leader said he had "very good reasons".

GST distribution wasn't on the agenda and that is the key issue facing WA, so he will attend the next Council of Australian Governments meeting later this year, where it will be discussed before Prime Minister Tony Abbott.

There is "an unnecessary sense of panic" about the cuts, he added.

Mr Barnett previously said he was in no rush to discuss the health and education budget cuts because they wouldn't kick in for several years.

But on Monday, he admitted some impact would be felt, particularly in health, from the start of the new financial year.

"There are some National Partnership Agreements that it appears the Commonwealth may not continue. If that is the case, they will finish - the state is not in a position to pick up that gap in funding," Mr Barnett said.

"Some of the states - NSW and Queensland in particularly - at previous COAG meetings did special deals with the Gillard government. They can hardly be surprised that those deals have disappeared."

He flagged potential changes to eligibility for pensioner cards and health-care cards.

"Under the worst scenario, there would be $24 million less coming to WA. We would maintain our commitment, but we're not going to pick up any reduction in commonwealth entitlement."

While he previously said Mr Abbott had not flagged the funding changes at the previous COAG meeting, he claimed the prime minister had foreshadowed states and territories taking increased responsibility for education and health.

"Everyone agreed that was the way to go."

According to Mr Barnett, Mr Abbott also said there would be some compensatory arrangements, with the Commonwealth taking on increased responsibilities in other areas.

While WA hospitals faced a $196 million funding cut over the next four financial years, the overall impact of the federal budget on the state was positive, including "a slightly better position on GST ... and some funding in particular areas".

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Second death after Vic car crash

A SECOND person has died after a speeding car crashed into a Victorian suburban garage.

Three men were out getting food when the driver lost control and hit a pole before smashing into the garage of a Dromana home on Sunday night.

A man died in hospital about 4pm on Monday, a Victoria Police spokeswoman said.

It follows the death of a 28-year-old back-seat passenger, who police said was not wearing a seatbelt.

After the accident, the driver, 31, and other passenger, 27, were both airlifted to The Alfred hospital with head injuries.

Police were unable to reveal the identity of the second deceased man.

Detective Inspector Bernie Rankin said the car was well above the speed limit in the lead up to the accident.

"The driver for some inexplicable reason is exceeding the speed limit and the consequences have been rather dire," Det Insp Rankin said on Monday.

"It is a situation that is totally avoidable."

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Sacked minister to remain in LNP

QUEENSLAND'S sacked assistant health minister will remain a member of the Liberal National Party despite speaking out against aspects of the government's agenda.

There had been speculation Chris Davis could be kicked out of the LNP after a party room meeting on Monday.

The Member for Stafford was stripped of his cabinet position last week after speaking out on subjects including changes to the Crime and Misconduct Commission and new work contracts for doctors.

Dr Davis has since claimed concerns he raised with Premier Campbell Newman about plans to ease restrictions on political donations were a factor in his sacking.

Mr Newman has rejected Dr Davis's claims.

After the party room meeting on Monday, a spokesman for Mr Newman told AAP Dr Davis would remain a member of the LNP.

Deputy Premier Jeff Seeney said Dr Davis apologised at the meeting, ABC radio reports.

Earlier on Monday, several LNP ministers publicly chastised the doctor for his public statements.

"What Chris has to realise is that if you continue to cry wolf, you'll eventually lose credibility," Housing Minister Tim Mander told reporters.

"It's no good roaring like a lion in public and being as meek as a mouse in the party room."

Energy Minister Mark McArdle and Local Government Minister David Crisafulli echoed the Mr Manders' statements.

"Dr Davis has got a job to do right now and that is to get back and work for his electorate. Full stop. End of story," Mr Crisafulli said.

Dr Davis is expected to make a statement about his future in the party this week in parliament.

He hasn't returned AAP's calls.

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