Election spending spree eroding trust: senator

AN ELECTION campaign spending "arms race" is leading the two main political parties to rely more heavily on donations from businesses, wealthy individuals and interest groups, eroding public trust in the political system, the Special Minister for State, John Faulkner, says.

Releasing a green paper on electoral law reform yesterday, Senator Faulkner said campaign fund-raising in recent years had created perceptions that donors were able to exert undue influence over politicians.

"The perception of undue influence can be as damaging to democracy as undue influence itself," Senator Faulkner said.

"It undermines confidence in our processes of government, making it difficult to untangle the motivation behind policy decisions.

"Electors are left wondering if decisions have been made on their merits."

Senator Faulkner said the Federal Government was determined to have legislation regulating election funding in place before the next federal poll and was considering measures ranging from banning donations to boosting taxpayer funding.

The green paper argues that donations, campaign spending and public funding are all linked as spiralling spending on electioneering means public funding accounts for just 20 per cent of the Labor and Liberal parties' financial resources.

It estimates the ALP's campaign spending has increased from $4.1 million in 1984 to $19.4 million in 2004 while the Liberal Party's spending rose from $4.2 million to $22 million.

After taking inflation into account, this represented real increases of 116 per cent and 136 per cent, respectively.

The paper says spending by political parties could be capped, reducing the incentive to raise money from private donations.

The paper points to the British system where parties cannot spend more than £20 million ($45 million) in the year before an election and to the US where parties can agree to limit spending in return for public funding.

Caps could be imposed on the size of donations with a view to reducing the influence of large donors. Donations from property developers, organisations that seek government contracts, lobbying firms or tobacco, alcohol and gaming companies could be banned.

Alternatively, all private donations could be banned in conjunction with increased public funding.

The paper says a key challenge is the growing influence of so-called third parties - interest groups that spend significant sums campaigning - such as the ACTU which funded advertisements against the former Howard government in the lead-up to the 2007 election.

Senator Faulkner said the Government would consider public comments on the paper. He would also continue discussions with state and territory governments about similar reforms at a state level.

A spokeswoman for the NSW Premier, Nathan Rees, said he welcomed the green paper because he was committed to making his Government more transparent and accountable.

Quote: "The perception of undue influence can be as damaging to democracy as undue influence itself," Senator Faulkner said. Unquote.

The argument that the two parties Lib/Lab represent opposed ideals and policies, one, perhaps, of the Right and the other of the Left, is a foolish idea acceptable only to the doctrinaire and academic thinkers. Instead, the two parties should be almost identical, so that the Australian people can 'throw the rascals out' at any election without leading to any profound or extreme shifts in policy?

Taxi drivers blockade Melbourne CBD

Taxi drivers who are protesting against the fitting of safety screens in their cabs are being hit with parking fines.

Police have started writing fines for any taxi that is stopping traffic in Spring Street.

One person has been arrested for hindering police while one cab has been towed for blocking the street.

The drivers are protesting about a State Government decision forcing them to install safety screens in their cabs.

The blockade has caused major traffic disruptions for the second consecutive day.

The driver's spokesman Ange Goutsiolis says the Premier, John Brumby must meet with the drivers today or they will step up their protest.

"If we do not get an answer, if we don't talk to Brumby, mark my words, mark my words, we will block the whole city off," he said.

Taxi driver Clive Bundy says most cabbies do not want the screens and will not install the screens they are being forced to buy.

The State Government refused to overturn its policy after yesterday's protest against the screens blockaded Spring Street.

The Transport Minister met with the protesting taxi drivers yesterday, but is refusing to meet them again.

Fire Brigades managers corrupt: watchdog

Two NSW Fire Brigades managers engaged in corrupt conduct by pursuing dishonest schemes that enabled them to receive $2.4 million in payments, the Independent Commission Against Corruption has found.

Under the schemes, which ran between 2005 and 2007, companies controlled by Christian Sanhueza received $6.07 million from the NSW Fire Brigades for upgrades, repairs and maintenance of fire stations.

After paying subcontractors, Mr Sanhueza received at least $1.4 million and his associate, Clive Taylor $1.01 million, ICAC found.

As a result of its inquiry, ICAC said it had found "systemic weakness" in the NSW Fire Brigades and made 14 "corruption prevention recommendations" to minimise or prevent similar corrupt conduct and improper work practices from recurring.

Earlier, ICAC referred the receipt of the corrupt proceeds to the NSW Crime Commission, which obtained restraining orders against Mr Sanhueza and Mr Taylor.

Subsequently, the Supreme Court has "made a proceeds assessment order" against Mr Sanhueza for $950,000 and has sought to forfeit assets of Mr Taylor - a farm at Merriwa, two flat-screen television sets and a laptop computer, ICAC said.

The NSW Fire Brigades had no effective method of costing a capital works project, ICAC noted in its report, released earlier today.

"The budget allocation process offered the corrupt project managers their opportunity," ICAC said.

Reports ICAC also made corruption findings against Fire Brigades contractor Rasem Guirguis, who gave both men gifts of televisions and laptop computers for awarding him work.

Another man, Soliman Hanna, was found to have acted corruptly by giving Mr Sanhueza and Mr Taylor $1000 each for awarding him work.

Patricia Xuereb, another Fire Brigades employee, was found to have improperly provided confidential information to Mr Sanhueza.

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RailCorp corruption 'extraordinary'
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Rail rorts: ICAC recommends charges
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Something is rotten in the state of NSW
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Alcohol ads must go: Della Bosca

THE NSW Health Minister, John Della Bosca, will seek tougher restrictions on alcohol advertising at a meeting of health ministers today as NSW hospital figures revealed a huge rise in the number of drunk young people being treated in emergency departments.

Mr Della Bosca said a Federal Government report found that a total advertising ban could reduce drinking by 25 per cent and road fatalities by 30 per cent. It could also cut the social costs of alcohol abuse by $3.86 billion.

"The Garling report, released last week, advises that we need to focus on prevention when dealing with the health and well-being of children and young people.

"We need to avoid creating a new generation of binge drinkers and to do that we need to use preventive strategies such as restricting alcohol advertising.

"The cost of alcohol abuse to the community nationally is estimated to be more than $15 billion, which is mostly made up of sickies, road accidents and health care."

Mr Della Bosca said he would call for tougher advertising restrictions at the Australian health ministers' conference in Brisbane.

"According to NSW Health data, since 2000, the biggest increase in alcohol-related emergency department admissions has been among 18 to 24-year-olds, up 130 per cent, while female admissions within that group have risen 200 per cent.

"While law enforcement and licensing controls are powerful means to target alcohol abuse, related crime and antisocial behaviour - and NSW is taking strong action on this front by legislating mandatory 2am lock outs - we also need preventive strategies."

Mr Della Bosca said a National Drug Strategy Household Survey found that more than 72 per cent of people aged 14 or older supported a blanket ban on alcohol advertisements. Almost half supported banning alcohol sponsorship of sporting events.

"Alcohol advertising is among the most sophisticated and persuasive I have seen and it is increasingly clear alcohol companies are not prepared to take a responsible approach on this matter.

"Anyone sitting down to watch the cricket on TV this summer is bombarded with an endless stream of advertisements for beer and spirits. It is time we took the influence that alcohol advertising can have on our younger people seriously."

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Alcohol-related hospital visits rise
Alcohol-related hospital visits rocket, with young women the worst.

Brumby confronts booze culture on streets
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Message on a bottle for binge drinkers
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Alliance tackles drunken violence
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Binge drinking teens: 'two deaths a week'
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Calls for binge warnings on alcohol packaging
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Nationals MP resigns over shoving incident

New South Wales Nationals MP Andrew Fraser has resigned from the Opposition frontbench after shoving a colleague in a late night session of Parliament.

The Member for Coffs Harbour was involved in a heated conversation with Labor MP John Aquilina last night when a colleague, Katrina Hodgkinson, placed a hand on his shoulder and attempted to pull him away.

Mr Fraser explained his version of events to Parliament this morning.

"I brushed my colleague's arm aside inappropriately," he said.

"As a result, I've apologised to my colleague and I apologised to the [Lower] House. I've offered my resignation as shadow minister to the Leader of the Opposition, Barry O'Farrell."

Mr O'Farrell says he has accepted Mr Fraser's resignation in line with his determination to raise standards in public life.

The Speaker of the NSW Legislative Assembly is investigating the incident that was captured by house cameras.

Previous offender

Mr Fraser was suspended from Parliament for eight weeks in 2005 for trying to throttle Labor MP Joe Tripodi.

He later apologised and blamed his actions on his frustration with the Government's lack of action in preventing deaths on the Pacific Highway.

The premier at the time, Morris Iemma, labelled him a "disgrace to democracy".

Mr Fraser eventually regained the position of Nationals deputy leader, but was dumped in favour of Adrian Piccoli six weeks ago in the wake of the party's loss in the Port Macquarie by-election.

He has now resigned as Opposition spokesman on Primary Industries, Road Safety and Rural Affairs.

HEP C in Australian Prisons out of control

Figures showing that Hepatitis C infection rates in Australian prisons are out of control have sparked fresh calls for needle exchange programs in gaols.

The research, to be published in The International Journal of Infectious Disease, puts the number of South Australian prisoners infected with the disease at 42%, with a staggering 60% of women prisoners testing positive to the virus.

This is compared to infection rates among the general public of under two percent.

If left untreated Hep C can result in liver disease or complete liver failure and can be fatal in rare cases.

To help combat the virus, many communities offer needle exchange programs to help make sure drug users don't share needles, but these programs are not available in Australian gaols.

Deakin University health researcher Dr Emma Miller is behind the study of Hepatitis C infection rates in gaols, and she says providing inmates with clean fits is a no-brainer.

To hear this 2SER interview click here:

Greens call for uranium mining be reinstated

The WA Greens will move an urgency motion in the Upper House calling on the Government to immediately reinstate the ban on uranium mining in Western Australia.

The Premier, Colin Barnett, announced the ban had been formally lifted last week, and that mining leases would no longer contain a clause excluding uranium mining.

Greens MP Giz Watson says the Government does not have a mandate for its position, given that the Liberal Party only won 24 seats in the Lower House, compared with Labor's 28.

"They didn't win the election, let's get this clear.," she said.

"They formed a minority Government with the Nationals. Now the Nationals didn't run on a policy of open slather uranium mining in this state. The Nationals ran on a policy of royalties to regions."

Bligh won't budge on smacking code

The Queensland Government says it will not change a controversial section of the criminal code that allows "reasonable force" to be used when disciplining children.

The State Government reviewed 200 cases in response to concerns that parents were using discipline as a defence for abusing their children.

Premier Anna Bligh says the review showed parents who use excessive force are being charged and penalised accordingly.

Quote:"Reasonable force" by picking up a young child and moving them out of danger is okay but reasonable force by assaulting them is not. Anyone who assaults another person is committing a crime. Governments should not make crimes legal. Hence child abuse.

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NZ passes anti-smacking law
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End Physical Punishment of Children
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Driver gets $55K payout after affair with MP

The Tasmanian Premier, David Bartlett, has announced a settlement with the driver who had an affair with former Cabinet Minister, Paula Wriedt.

Ms Wriedt attempted to commit suicide in August when she learned the driver, Ben Chaffey, had lodged a claim with the Government.

Mr Chaffey's lawyers had threatened to pursue a sexual harassment claim.

The Premier says Mr Chaffey has agreed to a one off payment of $40,000, as well as reimbursement for up to $15,000 in legal and medical fees.

Mr Chaffey will also be offered another job in State Government but on a lower salary.

Ms Wriedt was sacked from the front bench six weeks after her suicide attempt.

She is still on leave and has not announced if she is returning to Parliament.

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Tas Premier sacks Wriedt
Tasmanian Premier David Bartlett has sacked Paula Wriedt from his Cabinet.

NSW slashes $3 billion - deficit $917M

The NSW government has slashed more than $3 billion from its planned spending for the next four years, as today's mini-budget confirms the state will record a deficit of $917 million this financial year.

Treasurer Eric Roozendaal has handed down the mini-budget, insisting the state can withstand a dip into the red for one year, which he said had been caused by a slowing property market and a fall in GST revenue.

He said NSW was forecast to return to the black the following year with a surplus of $138 million, that is expected to grow to $573 million in 2010-11 and reaching $900 million in 2011-12.

The mini-budget process has seen the state razor gang make $3.3 billion worth of savings over the next four years, while it will rake in $3.6 billion in revenues.

The ambitious four year capital works program outlined in this year's budget has been re-prioritised but the outlay remains largely unchanged, with $56.8 billion worth of infrastructure projects to be built.

That is down $890 million from what was announced in the budget in June.
"NSW will maintain the biggest public infrastructure investment program in Australia - and we are able to do so because the government has tightened its belt," Mr Roozendaal said.

The mini-budget will also bring an end to the 10-year long electricity debate, with the three electricity retailers to be sold off, along with the sale of development sites for power generators and the transfer of electricity trading functions to the private sector.

Mr Roozendaal said the government is also considering the possible sale or lease of other assets including NSW Lotteries, its waste services, the Pillar Superannuation Administration Corporation, and the Roads and Traffic Authority's (RTA) personalised number plate business.

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NSW slumps even further into red
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New prisons deferred by SA Govt

Plans to build new prisons in South Australia have been put on hold, to save millions of dollars in borrowings.

Treasurer Kevin Foley says it is in response to global financial instability, which has already reduced the state's balance sheet by $280 million.

Mr Foley has told State Parliament a new prison at Murray Bridge will be delayed for two years and a new secure mental health facility at Mobilong and a youth training centre are also being deferred.

"The overall budget impact of delaying this project will improve the Government's net lending outcomes over the period of (financial years) 09-10, 11-12 by $359 million and will ease clearly the financial liabilities to revenue ratio for this period," he said.

NSW slumps even further into red

The state's financial woes have deepened as the global financial crisis hits the property and financial markets. NSW went into the red by $493 million last month alone.

This has dragged NSW to a $656 million cumulative deficit for the September quarter, the first quarter of the financial year.

It prompted NSW Treasurer Eric Roozendaal to warn in Parliament today that tough decisions would be made in the November 11 mini-budget.

Last week, the Rees Government disclosed that the surplus for the financial year to June was only $73 million, well short of the $700 million surplus flagged midyear.

With the slump in taxation revenues, this has made it all but impossible that the $268 million surplus forecast for this financial year, ending June 2009, would be achieved.

The mini-budget is aimed at slashing spending in light of the slump in tax revenues.

The NSW Government is also anxious to maintain the state's triple-A creditworthiness rating from credit agencies such as Moody's and Standard and Poor's.

"The Government must reduce recurrent expenses and reprioritise the forward capital program to address the shortfalls in income that are being experienced," Mr Roozendaal told Parliament.

"This means tough but necessary decisions will be announced in the mini-budget to put NSW on a sustainable footing."

Sea-level rise threat to coast

SYDNEY'S iconic beaches, coastal houses, commercial property and roads will be threatened by rising sea levels by 2050, while the city's temperature is expected to rise by at least 2 degrees, a new scientific study, launched by the Premier, Nathan Rees, reveals.

"Today, the science is in for Sydney," Mr Rees said yesterday as he proclaimed the influence of the climate sceptic and former treasurer Michael Costa at an end in NSW.

"The Costa era of ambiguity around this issue is over. Along with the rest of the NSW public, I recognise that climate change is a reality and that the NSW Government needs to prepare for it," the Premier said. "There is no longer a climate-change sceptic at the centre of government decision-making in this state".

The study commissioned by the NSW Department of Climate Change, and adopted by the Government, was carried out by the University of NSW and uses research from the United Nations' peak scientific body, the Intergovernmental Panel on Climate Change.

It examines the effect of climate change on the greater Sydney metropolitan region from the Central Coast to Wollongong, along with other regions in rural NSW. The full state study is expected to be released in January.

"We've used world's best science to understand what will happen in different parts of this state so we can start planning now for the future," Mr Rees said. "We will all have to change the way we live to some degree."

The study finds that bushfires are likely to be more intense while rainfall may become more erratic, creating water shortages. But while winter rains decline, intense summer rain in parts of Sydney could increase flash flooding.

This, combined with higher temperatures, is expected to put the state's emergency services and health services under stress.

The study has enormous implications for urban planning, building standards and flood-risk mapping as well as agriculture. It finds by 2050 the expected sea level rise is likely to be 40 centimetres, reaching 90 centimetres by 2100. While the figure sounds deceptively small, a one-centimetre sea-level rise can cause erosion effects of up to one metre.

The projections would mean changes to the Sydney coastline, including the harbour, Parramatta River and the Georges River, said Professor Andy Short of the University of Sydney's coastal studies unit.

"Beaches with a low gradient like Narrabeen, Dee Why and Curl Curl are going to be the most heavily affected," he said.

This sea-level rise would also affect river estuaries and bays. As seawater invades estuaries, fish populations are likely to decline and water birds disappear.

A senior scientist with the Department of Climate Change, Peter Smith, told the forum, "Where you've got a hard promenade at beaches like Manly, you can expect a reduction in beach shape and the actual width of the beach. In some cases, beaches will possibly disappear."

The temperature rises, coupled with more erratic rainfall, are expected to hit southern NSW hardest, said Gary Allan, the project leader for climate risk management in the NSW Department of Primary Industries in NSW.

"In the Riverina, we have to consider the possibility of fairly significant change to agricultural practices as we have known them," he said.

Mr Rees said he would strongly support the federal Carbon Pollution Reduction Scheme and bring forward spending on energy efficiency measures to cut greenhouse gas emissions that cause climate change.

He said a proposed $63 million energy efficiency program to help low-income households cut their emissions would start next month in Orange and Bathurst, and move to Sydney early next year.

The plan, which had been flagged by the previous climate minister, Verity Firth, will affect up to 200,000 people including pensioners, public-housing tenants and Aborigines.

Prison officers to stage 24-hour strike

NSW prison officers will stage a 24-hour strike over fears the government is planning to privatise prisons and prisoner transport services.

NSW Public Service Association (PSA) general secretary John Cahill says officers will stop work at 10pm (AEDT) on Tuesday and hold a protest rally outside NSW parliament on Wednesday morning.

Mr Cahill says the government is market testing plans to sell off Parklea and Cessnock correctional centres, as well as aspects of court security and prisoner escort.

"Our concern is that Treasury will push to have these vital services privatised in the November 11 mini-budget as they search for cost savings," he said.

"The message to the government from frontline prison officers is that this proposal would undermine security both within jails and in the broader community."

Mr Cahill said privatisation of prisons interstate and overseas had shown that assaults on officers had increased and security had been compromised.

"Prison officers are seeking a clear indication from the NSW government that privatisation is not on the agenda.

"The message to the premier (Nathan Rees) is that the state's prison service is at breaking point and the proposed response of privatisation and casualisation will only make matters worse."

Comment was being sought from the government.

Assess ambulance chief over bullying: report

A report into the troubled NSW ambulance service today recommended that the CEO, Greg Rochford, urgently meet the NSW Minister for Health, John Della Bosca, to assess his performance after a disturbing inquiry into bullying and harassment in the service.

The draft report into the management and operations of the Ambulance Service of NSW had recommended Mr Rochford be replaced but that was not supported by all members of the upper house committee.

The chairwoman of the committee, Robyn Parker said after tabling the report that the inquiry into the service showed that ambulance management and government had "brushed under the carpet" serious issues affecting the mental health of paramedics for 10 years.

She said there were nine suicides of which the inquiry knew.

She said Mr Rochford appeared to be "completely unaware" of the extent of bullying and harassment in the service.

"He came and said he was saddened and distressed. Well, this has been going on for 10 years," she said.

"I think if this Government ignores this once more I think we will have a terrible situation."

The report also recommended that Mr Della Bosca and the Director-General of NSW Health Debora Picone meet Mr Rochford quarterly to review progress in relation to reducing bullying and harassment in the service and that the progress be reported to Parliament in the same way that the fire and police services are required to do.

Ms Parker said so many officers contacted the committee in a distressed state that a mental health protocol was established to deal with them.

"This inquiry found that management and government had failed to act over 10 years. Dozens of reviews, dozens of reports and ambulance officers [are] still continuing to suffer from bullying and harassment," she said.

"We have a senior management and successive health ministers who want to brush this under the carpet. This report says enough is enough."

But deputy chairwoman Christine Robertson said that government members of the committee did not agree with many of the report's conclusions.

She described the report as "one sided" because it did not recognise the operational change already achieved and because a lot of evidence was confidential.

The inquiry received 261 submissions, twice that of the recent parliamentary inquiry into Royal North Shore Hospital.

A spokesman for the Health Minister said: "The minister already meets with Mr Rochford regularly and they discuss key performance indicators for the Ambulance Service."

He said he had not had the opportunity to read the report as yet.

Opposition health spokeswoman Jillian Skinner said the Government must not ignore this report because the service was "stretched to breaking point".

"If the Premier [Nathan Rees] wants to get real he needs to force his Health Minister [John Della Bosca] to act on all of these recommendations as a starting point," she said.

Rise in deaths of children at risk

THERE has been a surge in the number of deaths of children at risk in NSW in 2007, despite a $1.2 billion funding injection into the Department of Community Services over the previous five years.

The revelation came at an estimates hearing at State Parliament yesterday, as an inquiry is finalising its recommendations as to whether the Government is doing enough to protect children at risk.

The Minister for Community Services, Linda Burney, said yesterday 156 children at risk had died in 2007, up from 114 in 2006. In all cases, the children were known to DOCS as being at risk.

For several years the number of deaths of children at risk has hovered at 100-110 a year. Criticism over the continued high level of deaths led last September to the Wood inquiry, headed by retired Supreme Court judge James Wood, QC. It is to report its findings by year end.

The number of deaths of children at risk is usually disclosed by the Ombudsman, Bruce Barbour, although Ms Burney said yesterday she had told him that if asked during the committee hearings, she would disclose the data.

Ms Burney pointed to the "significant increase" in the number of deaths, which would be of public concern.

"The most frequently-recorded risk factors in reports about children and young people who died in 2007 were domestic violence and parental substance abuse," Ms Burney told the parliamentary committee hearing. "These issues seriously erode our children's safety, accompanied by a third social problem, mental health issues for parents."

Of the 156 deaths, 72 were from natural causes, 18 were babies who died of sudden infant death syndrome, known as SIDS, eight were suicides, eight died in car accidents, five drowned, three died from fires, three from accidental choking or smothering, 11 died in uncommon circumstances such as from a snake bite, four died from fatal physical assaults, and the remaining 19 died due to causes unknown or undetermined.

In all, 55 per cent were involved either directly, or their sibling, in instances of domestic violence in the three years before their death, and there was also 55 per cent in cases where there was suspicion of parental substance abuse, and 24 per cent showing parental mental health concerns

"The Opposition has been calling for a royal commission into DOCS for quite some time," the Opposition spokeswoman on community services, Katrina Hodgkinson, said. She blamed the department for not working closely with other government agencies, a culture of bullying in the department, and a "revolving door of junior ministers" handling the portfolio for the chronic problems.

During the committee hearing, the director-general of the Department of Community Services, Jenny Mason, said that despite successes in hiring more case workers, staff turnover remains high, at 8.9 per cent in 2006-07.

Related:

Children needing protection 'has tripled'
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Child removal rate similar to Stolen Generations
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Mental illness more prevalent among youth
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Taking the scalpel to DOCS
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Cabinet minister police sex probe

Senior Victorian state cabinet minister Theo Theophanous has stood down pending the results of a police investigation into an allegation that he sexually assaulted a young female worker at Parliament House.

A detective from the police sexual crimes squad flew to Greece this year to interview the woman, who had complained of a serious sexual assault by Mr Theophanous.

Police sources said the alleged incident had occurred about 1999, when the woman was in her early 20s, and Parliament had been told of the investigation about two weeks ago.

The sources said several people in Victoria had since been interviewed, telephone records had been seized and a brief was being prepared for the Office of Public Prosecutions.

Mr Theophanous, flanked by his wife Rita and son Harry, last night proclaimed his innocence.

"I have no case to answer," he said. "I know that I have done nothing wrong."

Police yesterday confirmed to Mr Theophanous that they had conducted interviews about the complaint and indicated they were likely to question him soon.

Mr Theophanous, the Minister for Industry, Trade and Major Projects in Victoria, said he had decided to contact police because of "a series of rumours over the past week or so".

He telephoned Victorian Premier John Brumby yesterday to tell him he would stand down as a cabinet minister and seek leave from Parliament until police had resolved the matter.

At a hastily convened media conference in his ministerial office at 5.50pm, Mr Theophanous read a statement but refused to answer questions.

He said that although police had not told him the nature of the complaint, he had decided to stand down from cabinet to protect the Government's good name.

"I have always conducted myself with the highest degree of probity and professionalism and I hold dear the principles of ministerial responsibility and accountability," he said.

"I know that my decision to stand down will come as a shock to my extended family, my friends and to the community that supports me.

"I know they will be concerned about me and about my family, and I want to assure them that I have no case to answer.

"But I equally believe that I have a responsibility as a minister in such a successful Government to act with complete propriety and to step aside until this matter is resolved.

"Even though I know that I have done nothing wrong, the test for ministers in a government is rightly high. I believe in this. I am aware of my responsibility to protect the Government and the work that this Government has done for all Victorians."

Mr Theophanous, 60, who was born in Cyprus and has four children, asked the media to respect his and his family's privacy as they "work through this issue".

Mr Brumby said last night he had accepted Mr Theophanous' decision to stand down, adding it would be inappropriate for him to comment further as the matter was in the hands of police.

Police said last night they could not comment on the case. "It's not appropriate for Victoria Police to identify an individual under investigation until such time as they have been formally charged," a spokeswoman said.

Under an agreement that Parliament be informed of inquiries relating to MPs, police told Parliament about two weeks ago that a matter was being investigated and that police might be around the building interviewing people.

In 2005, Mr Theophanous faced an allegation that he had sexually harassed a female parliamentary worker.

The then premier, Steve Bracks, summoned Mr Theophanous for an explanation after rumours were reported that Mr Theophanous had harassed a junior parliamentary attendant by repeatedly asking her out.

Mr Bracks accepted the minister's denial of the allegations.

Abortion bill passed in conscience vote

The bill to decriminalise abortion in Victoria has passed a conscience vote of Upper House MPs by six votes.

The final vote was 23 to 17.

The decision has been welcomed by former Premier, Joan Kirner a long-time pro-choice campaigner.

Ms Kirner said she is relieved the bill passed in the Upper House.

"It was fantastic to see people from all sides of the House standing up to make sure that women were no longer potential criminals," she said.

NSW premier dumps Noreen Hay

The female Labor MP Wollongong MP Noreen Hayhas been sacked from her role as the parliamentary secretary for health.

The Premier, Nathan Rees said, historically parliamentary secretaries have come some time ... the announcement of them has come some time after the Cabinet itself.

"There is simply only so many things you can consider in any given day and that's the reason for that."

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Tas Premier sacks Wriedt

Tasmanian Premier David Bartlett has sacked Paula Wriedt from his Cabinet.

Mr Bartlett says he decided the time had come to reassign her portfolio.

He spoke to her about this but he says she was unable to make that decision.

He went to Government House this morning and asked the Governor to relinquish her responsiblities.

Ms Wriedt attempted suicide last month and admitted an affair with her driver.

The driver, Ben Chaffey, is on stress leave and is seeking a payout of more than $100,000 from the State Government.

Ms Wriedt revealed she was suffering from depression