``We have witnessed this weekend amongst the worst violence that I have ever seen in my policing service of 40 years,'' Mr Moroney told reporters. ``Never in my working life did I ever imagine a mob, a drunken mob, turning on a woman, an innocent woman who happened to stray into their path.''

Mr Scully said: "There appears to be an element of white supremacists and they really have no place in mainstream Australian society, those sort of characters belong in Berlin 1930s,'' he said. `I'm horrified that amidst that large crowd were pretty much people who have pretty ugly views.'' Mr Moroney said he had been asked by NSW Premier Morris Iemma to explore additional measures to boost police powers in response to threats of violence.

This could include a new street policing unit and restrictions on alcohol, which played a large role in the riots, he said.

'Real' locals shocked

Diana Kontoprias, who runs a gelato bar near the beach, witnessed most of violence yesterday. She told ABC Radio "real locals" were disgusted by the events. "They were so embarrassed, so shocked of how the day unfolded," she said.

"It was a disgrace, I don't think anyone in the local area agrees with what happened yesterday." Terrorism, gang rapes behind riots: MP

Federal Liberal backbencher Bruce Baird, whose Cook electorate takes in many of the suburbs affected, said tensions had been simmering within the primarily Anglo-Saxon community against people of Middle Eastern descent for some time. He said many locals were angry, particularly after six women from the area were killed in the 2002 Bali bombings. "Where this riot took place is actually the site of where we've got the Bali memorial for these women," Mr Baird told ABC Radio.

Asked if the riots were revenge for Bali and September 11, Mr Baird said: "I think so." "I think there's been increasing emphasis on terrorism and our security," he said.

"There has been high-profile rape cases in Sydney and of course, the Sutherland Shire itself is very much an Anglo-Celtic enclave and during the week it is pretty much Anglo and on the weekends there are lots of visitors that come from elsewhere."

20 injured, 16 arrested More than 20 people have been injured and 16 arrested as race-fuelled violence spread through Sydney's beachside suburbs overnight.

But NSW Premier Morris Iemma says police are in control of the situation. A series of apparent revenge attacks - including two stabbings - occurred overnight following the unrest at Cronulla, where more than 5000 people gathered yesterday.

Drunken mobs within the crowd yelled racist chants and chased down and bashed people of Middle Eastern appearance at the beach in an extended show of violence. Police and an ambulance crew were also assaulted as racial tensions peaked. A total of 25 people, including two ambulance officers, were injured, about 40 cars were vandalised and an Australian flag was burned during the mob scenes.

Police said 16 people had been arrested across Sydney and charged with 42 offences. Mr Iemma today described the behaviour as "stomach turning" and said it would not be tolerated.

"I saw yesterday people trying to hide behind the Australian flag, well they are cowards whose behaviour will not be tolerated," Mr Iemma told Channel Nine. "That was the most disgraceful, disgusting behaviour that I've ever seen." Mr Iemma said he planned to bring together community leaders for discussions about how to prevent further violence.

Police had the resources and the equipment to deal with the violent scenes, he said. Police were forced to use capsicum spray and batons in their battle to subdue the Cronulla rioters, who pelted officers with bottles and stomped on patrol cars.

Later, a 23-year-old man was injured and more than 40 cars smashed with baseball bats in an apparent revenge attack at Maroubra, in Sydney's east. A group of about 60 men of Middle Eastern appearance and armed with baseball bats smashed the windows of parked cars about 9pm (AEDT). The group then clashed with local group, the Bra Boys, outside the Maroubra Bay Hotel.

A 23-year-old Maroubra man was taken to Prince of Wales hospital after he was stabbed with a sharp implement, believed to be a stick or nail, in the hip. Later, a second 23-year-old man was stabbed in the back by a group of males, described as being of Middle Eastern appearance, at a golf club at Woolooware, in Sydney's south.

He was taken to hospital in a serious condition. Riot police were also called to Brighton-le-Sands, in Sydney's south, overnight to control a group of about 200 brawling youths who had reportedly thrown projectiles at police. Twelve people were arrested at Cronulla. They will face Sutherland Local Court at a date to be fixed.

AAP