September 1, 2011

The High Court has given the Gillard government a massive kick in the guts when it is already writhing on the political floor.

The government has huge policy issues on its hands after the court scuttled the Malaysia Solution - namely, what to do with the asylum seekers who were supposed to be flown there and how to replace the deterrent the ''people swap'' was supposed to represent.

It also has a worsening problem of perception. This is another example of apparent Labor incompetence.

''The Commonwealth government is on very strong legal grounds,'' Immigration Minister Chris Bowen insisted last month.

Really?

Clearly, he didn't know what he was talking about. The government was too gung-ho and, if the advice was convincing, it was also bad. If the Commonwealth's legal experts can't anticipate the High Court, they might need a refresher course in the law. While its impression initially was that the case would be won, later on the government became increasingly worried.

The Malaysia Solution had been conceived as the ultimate quick and clever fix. If you put aside the doubtful morality of sending people off to be dealt with by another country with a dubious human rights record, it looked almost too good to be true - and it was.

The deal was born of desperation but in failure it has added to the general air of disaster and disarray surrounding the government. Its collapse has also been embarrassing for relations with Malaysia. The court stressed that its judgment about the legality of the minister's action did not involve any view on whether Malaysia met relevant human rights standards or treated asylum seekers appropriately. But inevitably, the judgment will be seen as reflecting on Malaysia.

The government's options now are all practically difficult or impossible and politically unpleasant.

It could try to change the law to lower the bar, so it would be possible to send people to Malaysia. But to do that it would have to get support from either the opposition or the Greens (and from some independents in the House), and that's almost certainly impossible. It could proceed with Manus Island - which is now being prepared to process asylum seekers - and hope that passes the High Court test. But that will take some time to get operating. Or, it could cop the ultimate humiliation and go for the Nauru solution - again assuming that could stand up to a challenge.

The government looked shell-shocked yesterday, even though it had started to expect the worst. The hasty cabinet meeting and the fact it could not rule anything out showed how devastating this is.

Fixing asylum seeker policy and stopping the boats was one of the promises Julia Gillard made when she overthrew Kevin Rudd (the others were dealing with climate change and the mining tax).

She has failed spectacularly, with the East Timor project aborted by that country and now the Malaysia Solution having been shot down.

She and Bowen have talked about the need to send a message to the people smugglers. Thanks to what now has been exposed as an ill-prepared policy based on flaky legal advice, they have sent a message, all right. That is, ''Come on down''. Unless the government can produce some spectacular fall back, that message will resonate loud and clear among those running the people smuggling trade.

Michelle Grattan is Age political editor.

High Court Rejects Malaysia Deal

Jeremy Thompson

Updated September 01, 2011 14:38:50

Former Labor powerbroker Graham Richardson predicts a dire political future for Julia Gillard.

Video: Government scrambles after Malaysia deal scuttled (ABC News)

Related Story: Asylum strategy in tatters after court ruling

Former Labor minister and party powerbroker Graham Richardson says Julia Gillard will be "finished" as Prime Minister before the next election.

Mr Richardson was speaking on Melbourne radio station 3AW in the wake of the High Court's decision to reject the Government's Malaysian solution for asylum seekers and in light of rock-bottom opinion polls.

"It's way too late for her," Mr Richardson told 3AW.

"There's no way she can turn this around. You've got to say it gets worse for her every single day, never gets better, just gets worse."

Mr Richardson painted a dire picture for his former party, saying there are now "no good options" for Labor.

"The reality is those three independents [Tony Windsor, Rob Oakeshott and Andrew Wilkie] have a deal with Julia Gillard, not with the Government, and not with the Labor Party," he said.

"They've always indicated that if you change leaders the deal's off, so you go straight out of Government if you change leaders."

But he said the deal with the independents would only give Ms Gillard a temporary stay of execution as leader.

Mr Richardson predicted independent Andrew Wilkie would withdraw his support if his pokie reform bill is not passed by the middle of next year.

"I'd say it [Gillard's leadership] has got 10 months or so to run - but I can't see it running much longer than that," he said.

"It's damaging the psyche of too many Australians and over time that can damage the country, because that will make people retreat more into themselves and spend less."

He said the Malaysian solution was an "odd" contradiction for the Government.

"It always relied upon as a basis saying the Malaysians were terrible and it was a really shocking place to go, and if you don't have the right credentials to come here we'll send you to Malaysia - it's like saying we'll send you to hell," he said.

"The Malaysians were pretty amazing to me to ever accept it."

Hockey attack

Meanwhile, Shadow Treasurer Joe Hockey also targeted Ms Gillard, saying the buck stopped with her on the failed swap deal.

"She said she was going to stop the boats, she said one of the reasons that she politically executed Kevin Rudd was because she wanted to have a solution to stop the boats," Mr Hockey told ABC radio in Melbourne.

He said he was "outraged" about the Malaysia solution "from a humanitarian perspective".

"Human beings are not football cards. You don't swap them. And that's what Julia Gillard and her Government tried to do. We'll give you 800 and you give us 4,000," he said.

"Now we find we are receiving 4,000 [and] it's going to cost us $200 million to receive those 4,000."

Mr Hockey said Australia's reputation in the region was "in tatters".

"Not only did we insult the East Timorese by not asking them about the East Timor Solution, not only did we offend the Papua New Guineans by saying we're going to reopen Manus without getting government approval from them, not only did we stop food supplies to Indonesia overnight, we've now entered into a deal with Malaysia and the Government has acted ultra vires (beyond their powers)," he said.

"How extraordinarily embarrassing for us."

Labor stalwart says Gillard 'finished' - ABC Newcastle NSW - Australian Broadcasting Corporation

UPDATED Milanda Rout From: The Australian

August 31, 2011 3:26PM

THE Gillard government's "Malaysian Solution" has been thrown into disarray after being ruled unlawful by the High Court.

The judgment of the full bench, handed down to a packed courtroom in Canberra, found Immigration Minister Chris Bowen's declaration of Malaysia as a country to which asylum-seekers could be sent for processing was “invalid”.

Chief Justice Robert French said the court ordered Mr Bowen and his department be restrained from sending asylum-seekers to Malaysia.

“The declaration made ... was made without power and is invalid,” Justice French said.

The ruling is a massive blow for the Gillard government, which had hoped the Malaysian refugee swap would be the deterrent it needed to halt the flow of asylum-seeker boats to Australia.

If the government now abandons the plan, it will still be bound under the deal to accept 4000 extra refugees from Malaysia, while being unable to send 800 asylum-seekers there for processing.

Related Coverage

• DENNIS SHANAHAN: Asylum-seeker solution in tatters

• RULING: Summary of the judgment

• IN FULL: High Court judgment

• Malaysian swap deal ruled unlawful Perth Now, 58 minutes ago

• Refugee ruling may not be clear-cut The Australian, 5 hours ago

• High Court to decide on Malaysia deal Adelaide Now, 7 hours ago

• It's safe to expel kids, court hears The Daily Telegraph, 7 days ago

• Malaysia swap deal faces more delays The Australian, 7 days ago

Today's ruling effectively makes permanent an injunction granted over three weeks ago to 41 asylum-seekers who had appealed against their forced transfer to Kuala Lumpur from Christmas Island.

They were to be the first group of asylum-seekers to be moved to Malaysia after the government's formal signing in July of the deal to send 800 boatpeople to Malaysia, in return for 4000 confirmed refugees.

The High Court also found today that unaccompanied asylum-seekers under the age of 18 could not be lawfully taken from Australia without the minister's written consent.

The full bench found the minister could not validly process asylum-seekers in a third country unless that country was bound under law to provide effective protection for them while their refugee status was determined.

The court found processing countries must also provide asylum-seekers with “effective procedures for assessing their need for protection”, and provide protection for certified refugees pending their resettlement or return to their home countries.

“On the facts which the parties had agreed, the court held that Malaysia is not legally bound to provide the access and protections the Migration Act requires for a valid declaration,” the court said in a statement.

“Malaysia is not a party to the Refugees Convention or its protocol. The arrangement which the minister signed with the Malaysian Minister for Home Affairs on 25 July, 2011 said expressly that it was not legally binding.

“The parties agreed that Malaysia is not legally bound to, and does not, recognise the status of refugee in its domestic law.”

Debbie Mortimer SC, acting for the group of asylum-seekers, had argued the government's policy was not lawful because Malaysia was not a signatory to the UN refugee convention and therefore did not provide enough legal protection.

She told the High Court during a two-day hearing that the plaintiffs were at risk of persecution in Malaysia due to their religious beliefs.

Ms Mortimer also questioned whether Mr Bowen had the power under the law he relied upon to forcibly remove people to another country.

“Fundamental rights are at stake . . . liberty, freedom of movement . . . and freedom from assault,” she said.

“The proposed conduct of the commonwealth intervenes with all three of these rights.”

Ms Mortimer also claimed Mr Bowen would breach his role as guardian by sending unaccompanied minors to Malaysia.

But Commonwealth Solicitor-General Stephen Gageler SC, acting for Mr Bowen, argued Malaysia needed only to guarantee it would not send refugees back home to fulfil protection obligations.

He previously told the court that although Malaysia was not a signatory on UN human rights conventions, “the Malaysian authorities generally co-operate with the UN High Commissioner for Refugees”.

There are 335 asylum-seekers on Christmas Island who were awaiting expulsion to Malaysia under the deal, including 57 unaccompanied minors.

The government's last hope for an offshore processing solution now appears to be Papua New Guinea, which recently agreed to allow the reopening of a mothballed Howard government detention centre on Manus Island.

Prime Minister Julia Gillard said earlier this month she believed the government would beat the challenge to its Malaysian plan.

“We believe we have a legally sound case and once those proceedings conclude then people should assume that they are liable for transfer to Malaysia,” she said.

High Court rejects refugee swap deal | The Australian

Whatever other MPs say to him, however sympathetic and well meaning they might be, Craig Thomson is on his own and needs to act in his own interests.

The Australian public have a healthy cynicism about politics.

They reckon that politicians are all much the same and nothing much that they do comes as any surprise. Naturally if there is a bit of scandal in the air then, if they have time, they might follow the latest controversy.

But despite the usual cacophony, the electorate are not so stupid as to think that the latest evidence of the misdemeanours or otherwise of politicians is more important than what is happening about the economy. The economy is what really counts because it affects the hip-pocket nerve; jobs and living standards.

So when it's announced that 1,400 jobs are to be lost and when people hear that international economic turmoil might impact on them personally then the public expect our politicians to be talking about the real issues that worry them. And they don't want to hear some shallow bandaid response; they want to see the Government deal with the substantive issues.

Last week instead of being on a real economic message in a substantive way, the Prime Minister tinkered by giving an ex-politician $1,000 a day to demonstrate she was doing something useful even though she was basically doing nothing and spent most of her time giving her full confidence to the man at the centre of a political scandal.

Because Ms Gillard does not focus on what the public want, they naturally don't want her. So having set the record for Labor's lowest-ever primary vote, she will soon beat her own record.

Abbott is doing better. The PM has at least three problems. Firstly, Ms Gillard is incompetent. Secondly, she can't extricate herself from Thomson. And thirdly, Mr Abbott is focussed on stopping a new tax that will cut living standards. He could be even further ahead if he had more economic policy instead of the new tax he is proposing for a more generous paid parental leave scheme than the one just introduced by Labor.

On the Thomson issue the PM needs to act and not obfuscate. She should be doing something about the issue at the centre of the scandal - the apparent misappropriation of union funds.

Fair Work Australia (FWA) seems to have been dragging its feet for years by not properly supervising the finances of some registered organisations including the Health Services Union (HSU). The HSU referred its auditor's reports and legal advice at least two years ago to FWA.  How does FWA explain the delay? As the HSU thought matters should be referred to the police, how does FWA explain that it did not adopt the same approach? And why is the Government intending to exempt the head of FWA from attending Senate committee hearings?

Instead of offering unlimited support to Thomson the PM would be smarter to give herself some wriggle room and say that she will initiate a full and independent inquiry into FWA to make sure that union members are properly protected and that FWA fulfils all of its duties.

This inquiry would not be a substitute for the full independent review promised when the Fair Work Act was introduced but it would be a lot better for her to be seen supporting union members who feel they have been ripped off than just mouthing 100 per cent support for Craig Thomson.

It is no fun being at the centre of scandal and very tough on family members. I do not know what Thomson did or otherwise. He can't expect a presumption of innocence; no-one gets that unless the police lay charges. In politics, the court you face is the court of public opinion and usually the media are the principle prosecutors and judges. It might be unfair, it might be rough justice, they might exaggerate, and sometimes not get the facts right but that is our system.

I have had first-hand experience of this.

My mistake was to give a telecard pin number to one of my teenage children to use in case of an accident or something equally dire on a trip he was taking. I apologised for that error of judgement but I was not to know of the consequences. My son never had an accident and so I never thought about it again until five years later. I had stopped using the telecard, thanks to having a mobile phone. For five years, Finance never informed me that they were paying huge bills in my name. A fraud investigator from Telstra rang my office and told me that his calls to the Finance Department got nowhere so he thought he would ring me direct to ask about the obvious fraud on my phone. I initiated an inquiry, I asked for the police to be involved, I informed the PM in writing, I paid for the approximately $1,000 of calls made by my son over the five years and also paid about $49,000 for calls made fraudulently by persons unknown to me or my son. Labor and Liberal MPs, including senior cabinet ministers, came to me privately and expressed support on the grounds the fraud could have happened using anyone's pin number.

I answered any question. Craig Thomson has not.

Craig Thomson's best course of action is to spell out what happened and then cop the consequences. He is going to wear this saga for the rest of his life; whatever happened is all going to come out. If others were involved, as he claims, then he can't afford to wait while his reputation is shredded day in, day out.

There is no point for him to take any notice of Julia Gillard; the political reality is that her interests and the interests of other members of the Caucus are different to his interests.

Whatever the MPs say to him, however sympathetic and well-meaning they might be, and I don't doubt he has the goodwill of friends in the Labor Party, he is on his own and needs to act in his own interest.

That's politics; it can be a tough and unrelenting business.

The Honourable Peter K Reith was a senior cabinet minister in the Australian government from 1996 to 2001 and then a director of the European Bank for Reconstruction and Development from 2003 to 2009.

In the court of public opinion, Thomson's on his own - The Drum Opinion - Whatever other MPs say to him, however sympathetic and well meaning they might be, Craig Thomson is on his own and needs to act in his own interests. (Australian Broadcasting Corporation)

Phillip Coorey

August 30, 2011

"The only certainty is that if they don't pull off this reform, I will withdraw my support" ... independent MP Andrew Wilkie, centre. Photo: Alex Ellinghausen

THE federal independent MP Andrew Wilkie says he and the Liberals have been discussing the issue of preferences in his Tasmanian seat of Denison, amid speculation of a push by the opposition to convince him to abandon support for the Gillard government.

Senior Liberals confirmed to the Herald yesterday that the party would most likely give its preferences to Mr Wilkie if he abandoned the government.

But they rejected suggestions a specific deal had been offered, saying that would amount to inducement, which is not allowed.

''We would be unlikely to preference Wilkie if he hangs on to the government for the next couple of years,'' a senior Liberal said.

''But if the government changes, then we would be much more inclined to support Wilkie than Labor.''

Mr Wilkie meets regularly with the Opposition Leader, Tony Abbott, as well as senior shadow ministers to discuss portfolio-specific matters.

He declined to say yesterday with whom he had discussed preferences or the details of the discussions.

''The matter of preferences comes up very occasionally during broader discussions with members of the Liberal Party,'' he said through a spokeswoman. ''But there have been no preference negotiations, nor do I anticipate preferencing any party at the next election.''

Of the senior Liberals contacted, all claimed never to have raised the issue with Mr Wilkie.

Thanks to Liberal preferences, Mr Wilkie narrowly won the safe Labor seat at the 2010 federal election. If he is to retain the seat at the next election, it is most likely he will again need Liberal preferences, especially if he wins the most primary votes with the Liberal candidate second and the Labor candidate third.

One senior Liberal said Mr Wilkie was aware that at the moment Labor was so unpopular that its candidate would most likely come third in Denison.

Of the four lower house crossbenchers keeping Labor in power, Mr Wilkie is seen by the Liberals as the one most likely to abandon the government before the full term.

Appearing on the ABC's Insiders program on Sunday, Mr Wilkie reiterated that he would abandon the government by the end of May next year - more than a year before the next election is due - if Parliament had not passed legislation allowing the Commonwealth to override the states to mandate pre-commitment technology on poker machines.

The legislation is unlikely to pass and the Coalition opposes it, but Mr Wilkie said it was part of the deal he had signed with the Prime Minister, Julia Gillard, and it was non-negotiable.

''The only certainty is that if they don't pull off this reform, I will withdraw my support,'' Mr Wilkie said.

He then said he would support any motion of no confidence in the government moved by the Opposition Leader, Tony Abbott.

This would trigger an election which, based on the current polls, would put Mr Abbott in power.

One of the senior Liberals said it was hoped that Mr Wilkie would abandon the Gillard government before the May 2012 deadline, should its standing continue to deteriorate.

''If the government continues to be such a rabble, he could decide 'it's not working for me' and withdraw his support,'' the senior Liberal said.

''No one would have a clear majority and the Governor-General would call an election.''

Coalition pressure building on Wilkie

Andrew Clennell and Steve Lewis From: The Daily Telegraph

August 30, 2011 12:00AM

More allegations ... Labor MP Craig Thomson. Source: PerthNow

 

THE Health Services Union paid tens of thousands of dollars to Craig Thomson in a settlement last year despite him facing an investigation into the alleged use of union funds for prostitutes.

The revelation means the MP received $150,000 from NSW Labor for his legal fees against Fairfax following his dropped defamation action - and tens of thousands more from the HSU in a settlement after the allegations.

Mr Thomson had been suing the HSU for defamation and for an alleged $190,000 in entitlements for leave he claimed he was owed which the union withheld after the credit card allegations came to light.

Mr Thomson is being investigated over his alleged spending on union credit cards, including allegedly hiring prostitutes and making more than $100,000 in cash advances.

The withdrawals from the card, which occurred during Mr Thomson's time as national secretary from 2002 to 2007, formed part of the information the HSU referred to Fair Work Australia in 2008, a year after Mr Thomson entered federal parliament. But last year the union settled the actions Mr Thomson had taken against it, paying him tens of thousands of dollars, sources have confirmed.

Related Coverage

• Union, Labor cash to scandal MP Adelaide Now, 9 hours ago

• How HSU money flowed to Labor The Australian, 10 hours ago

• NSW key to Thomson scandal The Daily Telegraph, 2 days ago

• War over Thomson dossier The Australian, 4 days ago

• HSU decides on Thomson action The Australian, 6 days ago

The Daily Telegraph has already revealed NSW Labor spent more than $150,000 on Mr Thomson's legal fees when he dropped a defamation action against Fairfax.

Senior Labor sources have said they paid Mr Thomson's fees amid concerns he would go bankrupt, which would have seen him ineligible to remain in parliament and could have brought down the federal government.

Many union sources are puzzled as to why the Fair Work Australia investigation into the allegations has taken two years, without a result.

Sources said they were concerned the inquiry had not interviewed several people on the Health Services Union's national executive.

In relation to the settlement, one source said: "There were a number of people on the executive who didn't want him to be paid anything."

Mr Thomson's wife, radio newsreader Zoe Arnold, has taken time off from her radio station Sea FM on the Central Coast amid the scandal.

Ms Arnold, who is heavily pregnant, stopped work earlier than planned as she coped with the stress of reading stories about Mr Thomson on air.

MP Craig Thomson took union payout | thetelegraph.com.au

Emma Pollard and Chris O'Brien

Updated August 29, 2011 12:37:11

Photo: Sole survivor: Foreign Minister Kevin Rudd (AAP: John Pryke)

Foreign Minister Kevin Rudd would be the only federal Labor MP left in Queensland if an election was held today, according to the latest opinion poll published in Brisbane's Courier Mail newspaper.

The Galaxy poll has found support for Prime Minister Julia Gillard's Government has plummeted in Queensland, with the party holding only 23 per cent of the primary vote.

The paper says Labor's support has plummeted by 10 points since last year's election.

Labor trails the Coalition 37 per cent to 63 per cent after preferences, an eight-point swing against the Government which would make Mr Rudd the only Labor MP to keep his seat if the swing was uniform across the state.

Mr Rudd leads Ms Gillard as preferred prime minister by a huge 44-point margin, 62 per cent to 18 per cent.

The survey of 800 Queenslanders was conducted late last week.

Galaxy spokesman David Briggs says several factors have led to a record low result for federal Labor in Queensland

Mr Briggs says there has been no good news for the federal ALP for some time.

"We're seeing voters becoming disillusioned with the minority government in Canberra - unpopularity surrounding the carbon tax and unpopularity regarding the Malaysia deal," he said.

"It's all going pear-shaped for Labor and I think the [Labor MP] Craig Thomson problems that they're encountering is just the cream on the top of the cake."

Queensland Premier Anna Bligh says voters can be harsh on governments when tough decisions are made.

Ms Bligh says her federal colleagues still have two years to turn things around.

"These are tough times for governments around the country," she said.

"When you're doing tough things and making big decisions, people are often pretty harsh in their judgement.

"There's a long way to go before we see a federal election and I'm sure there'll be a number of issues by the time we get there that will influence ultimately how people vote."

Ms Bligh offers no explanation for Queensland voters preferring Mr Rudd over Ms Gillard.

"That's a matter you'd have to ask voters because obviously they do," she said.

Rudd last man standing in Labor rout: poll - ABC News (Australian Broadcasting Corporation)

Misha Schubert August 28, 2011

"The only thing I wouldn't do is sell my arse - but I'd have to give serious thought to it" ... Abbott. Photo: Andrew Meares

THE way Tony Windsor recalls it, Tony Abbott begged crossbench MPs to make him prime minister, joking ''the only thing I wouldn't do is sell my arse - but I'd have to give serious thought to it''.

In interviews to mark the anniversary of their decision to back Julia Gillard to run the country, independent MPs have revealed startling new details of their reservations about the Opposition Leader, including that joking plea.

And Bob Katter - one of the crossbenchers who backed Mr Abbott - is now deeply disenchanted, accusing the Liberal leader of welching on a deal to put up laws mandating ethanol in petrol.

Mr Katter says the Coalition's failure to put up the laws before the Greens took control of the Senate fills him ''with a deep sense of disquiet'' over whether Mr Abbott can be relied on. ''If you weren't going to keep your agreement, you must bear the consequences of having a question mark over you and your undertakings,'' he said.

Mr Windsor recalls feeling alarm and pity when Mr Abbott revealed the depth of his personal desire to become prime minister.

''I remember him saying: 'Tony, I would do anything for this job. The only thing I wouldn't do is sell my arse, but I'd have to give serious thought to it,''' he said.

His fellow crossbench MP Rob Oakeshott also recalls Mr Abbott begging for the job but would not comment publicly about this gag.

Mr Abbott's spokesman rejected the recollection yesterday. ''Tony did not make that comment,'' he said.

On Mr Windsor's view that Mr Abbott wanted the job too much, he said: ''Tony Windsor was saying the exact opposite in October last year.''

He refused to be drawn on Mr Katter's allegations, saying Mr Abbott ''is not going to run a commentary on the independents''.

Mr Oakeshott said his decision to back Labor was made on the style, personality and character of the two leaders because there was scant ideological difference between the two major parties.

''I think it is revealing, his call for an early election. He is on paper committing to a full three-year term and a more consensual style of polity,'' he said.

''What happened? I thought when he put something in writing, it mattered. Even those written agreements are questionable.''

Of the six crossbench MPs, Mr Katter was the only one to cast doubt that he made the right call last year - but he would not transfer support to Ms Gillard.

''I have found Julia to be a very pleasant person and privately a very sensible person, so I don't like saying that as a Prime Minister she has just failed,'' he said.

In the original decision, four of the six - Adam Bandt, Andrew Wilkie, Mr Oakeshott and Mr Windsor - backed Ms Gillard. Mr Katter and Tony Crook backed Mr Abbott.

Mr Wilkie has voiced disquiet over Ms Gillard's expressions of confidence in the Labor MP Craig Thomson, who is fighting claims that he misused his credit card while a union leader to pay for prostitutes.

Mr Wilkie said he ''could not ignore the fact that there is a large number of serious allegations and a prima facie case is amassing'' but he wanted Ms Gillard to remain prime minister.

''The support of the four key crossbenchers is as solid as ever,'' Mr Wilkie said.

''I have been a little surprised by that, particularly Tony [Windsor] and Rob [Oakeshott]. I think they were more open-minded early in the piece but, as time has gone on, I think their support for the government has strengthened, partly because they have been treated quite badly by the opposition.''

The day Abbott bared his soul

Royce Millar and Ben Schneiders

August 27, 2011

Click to play video

The Coalition seizes on reports the Government called the Industrial Registrar to see if Craig Thomson was being investigated two years ago.

FINANCIAL records for the period of Craig Thomson's reign over the beleaguered Health Services Union are missing, a major impediment to investigations by authorities into the credit card scandal threatening Julia Gillard's government.

Well-placed health union sources told The Saturday Age yesterday that industrial umpire Fair Work Australia and an external auditor of the union in 2008 had found in separate investigations that records for the period 2002 to 2007 had ''disappeared''.

Fair Work has been probing the financial management of the national office of the union under Mr Thomson since April 2009 when a request was lodged with its predecessor, the Australian Industrial Registry.

Craig Thomson Photo: Nic Walker

New South Wales police are also investigating following a referral this week by the current national secretary, Kathy Jackson.

Last night Ms Jackson said there were ''a lot of records missing from the organisation''.

Mr Thomson, Labor member for the federal seat of Dobell, is accused of having misused his union credit card while an HSU official, with spending on escort services and unexplained cash withdrawals worth more than $100,000.

A health union insider said yesterday that Fair Work Australia had blamed missing records when asked about the delays in completing its investigation.

It remains unclear why the records are missing or who is responsible for this.

HSU insiders with long-standing concerns about its management yesterday confirmed that the union's bookkeeping was poor, with one describing financial reports to the executive and wider union as a ''joke''.

However, a copy of a 2008 audit of the union by Melbourne chartered accountants Dick and Smith reveals that:

■ Mr Thomson continued to use his union mobile phone and credit card after he was elected to Federal Parliament in November 2007, spending $5480 on his credit card and $2095 on his mobile after November 24, 2007.

■ HSU funds were also used in 2007 to donate $10,000 to Dads in Education, a charity of which Mr Thomson became a director in 2009.

■ A promise of $39,000 in union funds was made to the Central Coast Rugby League club, located in Mr Thomson's Dobell electorate. It is unclear if the money was actually paid.

The audit found that a ''lack of documentation'' for many transactions made it ''impossible for us to definitively state what many of these expenditures were''.

Prime Minister Gillard was yesterday forced to defend reports that her chief of staff, Ben Hubbard, had asked questions of Fair Work Australia about its investigation of the HSU before the allegations against Mr Thomson became public.

Opposition Leader Tony Abbott jumped on the report. But the government produced evidence that the Industrial Registrar had contacted Mr Hubbard only after the allegations about Mr Thomson were made public, on April 8, 2009.

However, it remains unclear when Mr Hubbard first telephoned the then registrar, Doug Williams. Ms Gillard said yesterday neither she or Mr Hubbard, had any ''active recollection'' of when contact first occurred on the Thomson case.

Mr Williams was quoted as saying: ''I recall receiving a phone call [from Mr Hubbard] in early 2009 concerning inquiries that I had initiated into the Health Services Union.''

Last night Mr Williams told The Saturday Age he had nothing further to add.

On Thursday angry powerbrokers were canvassing the union's exclusion from the party's state conference.

But the ALP's powerful administrative committee last night failed to act against the union.

With KATHARINE MURPHY

Thomson records missing

Kate McClymont

August 27, 2011

Besieged ... MP Craig Thomson. Photo: Andrew Meares

THE Health Services Union is threatening to implode over the Craig Thomson credit card scandal, with the bitter infighting between the union's factions bringing more trouble for the Gillard government.

A dirt-encrusted shovel, a none-too-subtle underworld code for ''dig your own grave'', was left on the doorstep of union general secretary Kathy Jackson's Melbourne home yesterday.

And the Herald can reveal that many of the union's financial records, relating to the period of Mr Thomson reign, have disappeared.

Ms Jackson said there were a ''lot of records missing from the organisation.'' It is unclear why the documents for the period between 2002 to 2007 are missing or who is responsible for this.

Ms Jackson spoke to reporters yesterday despite receiving a phone call from Michael Williamson, the union's national president and an ally of Mr Thomson, on Thursday night to tell her she no longer had authority to talk to the media. The Victorian police are investigating the shovel incident, which has left Ms Jackson was outraged.

''Who are these blokes? Spivs and standover merchants,'' she told the Herald. ''The HSU national executive represents the members, not factional quislings in Victoria.''

Speaking to AAP, she added: ''I'm a big girl. I didn't expect this sort of stuff would have occurred but it has, it's unfortunate and I'm moving on. If the person who has done this thinks they can intimidate me … they've picked the wrong girl.''

It is not suggested Mr Williamson was involved in the shovel incident.

Ms Jackson is under attack by elements within the union for not only authorising the original 2008 inquiry into Mr Thomson's expenses but for this week helping the NSW fraud squad by forwarding the results of the union's initial investigation.

That inquiry revealed that Mr Thomson used his union credit card to make more than $100,000 in personal expenditures, including on prostitutes and expensive lunches.

The union, which represents hospital and aged care orderlies and clerks, has 70,000 members and an annual turnover of $16 million.

According to an official Labor Party website, Labor heavyweight Mr Williamson, 58, is credited with turning the union around.

If real estate is anything to go by, the union appears to be awash with money, having spent more than $16 million on property purchases in the past five years. Most of the purchases are in an office block in Pitt Street, in Sydney's city centre.

The union broke a Melbourne record of price per square metre when it outlayed $4.65 million for its national headquarters in 2007. Mr Williamson is also credited with using his ''entrepreneurial skills'' to bring new services for union members, the ALP website claims.

Among those services are an array of IT, computer and mobile systems which are provided to the union by Mr Williamson's IT company, United Edge, which has offices on the same floor as the union in the Pitt Street building. Among United Edge's clients, according to its website, are trade unions and patient care organisations.

Mr Williamson is also a director of Imaging Partners Online, which provides off-site radiology services to both private and public hospitals. Last year Mr Williamson spent $522,000 buying a beach house at Lake Macquarie, having previously spent $470,000 buying the adjacent block.

The well-connected Mr Williamson is a former president of the Labor Party and is vice-president of the party. His daughter, Alex, is a media adviser in the Prime Minister Julia Gillard's staff. Mr Williamson did not return the Herald's call.

Union erupts after underworld message

Sean Nicholls and Lenore Taylor

August 27, 2011

Challenged over calls ... federal shadow attorney-general, George Brandis. Photo: Jacky Ghossein

THE federal shadow attorney-general, George Brandis, phoned his NSW counterpart, Greg Smith, to discuss the possible prosecution of the Labor MP Craig Thomson two weeks before his call to the NSW Police Minister, Mike Gallacher, which sparked claims of political interference.

The Herald revealed that Senator Brandis called Mr Gallacher on Friday last week to inform him he would send the NSW Police Commissioner, Andrew Scipione, a dossier of information relating to Mr Thomson's alleged use of a union credit card to purchase escort services.

Mr Gallacher subsequently called Mr Scipione and then called Senator Brandis again the next day about the matter. Mr Gallacher and Senator Brandis have described their contact as ''courtesy'' calls, but the revelations caused the Prime Minister, Julia Gillard, to imply that Senator Brandis tried to apply political pressure to force an investigation.

The opposition has been pushing for a criminal conviction against the former union official as it could force him out of Parliament and cause a byelection in his seat of Dobell. Labor would most likely lose that byelection and, consequently, government.

Mr Smith confirmed yesterday he had also received a phone call from Senator Brandis to discuss a possible investigation of Mr Thomson. He said Senator Brandis called him on August 3 to alert him the Herald would be running a story revealing that Senator Brandis would ask the NSW Director of Public Prosecutions to pursue criminal charges.

''I told him the DPP would not be able to act until they were given a brief of evidence,'' Mr Smith said. ''There has been no contact - by myself or anyone in my office - with the DPP on this issue.''

Senator Brandis said last night he contacted Mr Smith to alert him to the Herald story.

The federal Attorney-General, Robert McClelland, said yesterday: ''I know Mr Smith to be a decent man and obviously I don't know the contents of the conversation.

''I can only repeat the warning I gave in Parliament this week - that politicians aren't prosecutors and Senator Brandis should be very wary of crossing the line.''

Mr McClelland told Parliament it was ''quite irresponsible for any politician to take a course of action that has the potential to tarnish the public's perception of that complete impartiality''.

Coalition allegations that Ms Gillard knew of the affair before it became public because of a telephone conversation between her chief of staff and the industrial registrar were undermined yesterday by publicly available information about the call.

Answers provided by the government in Parliament last year, and by Fair Work Australia to a Senate estimates committee, show the phone call between Ms Gillard's chief of staff, Ben Hubbard, and the then Industrial registrar Doug Williams occurred on April 8, 2009, the day allegations concerning Mr Thomson were first revealed in the Herald.

Mr Hubbard had been told an investigation into the allegations was under way and had asked whether Ms Gillard, then the workplace relations minister, could say that an inquiry was under way if she was asked about the report. According to the answers there was no other communication between Ms Gillard's staff and the office.

The Trade Minister, Craig Emerson, said yesterday that the Opposition Leader, Tony Abbott, has ''maliciously and knowingly smeared the Prime Minister'' with the allegations.

Thomson twist: Brandis called A-G before minister

Nick O'Malley August 25, 2011

 

Interview with Tony Abbott

Posted August 25, 2011 11:52:37

Lyndal Curtis questions federal Opposition Leader Tony Abbott over the Coalition's pursuit of embattled Labor MP Craig Thomson.

What is Mr Thomson accused of?

The former national secretary of the Health Services Union is accused of using his union credit card to pay for prostitutes, and to withdraw $100,000 in cash for his election campaign for the federal seat of Dobell. He denies the claims.

What happens next?

For now, Mr Thomson stays put and the government grits its teeth. The Health Services Union says it will co-operate with the NSW police and provide material. The union should have a lot of material too, given that it has conducted its own investigation and had Slater & Gordon go over its books. The matter is already with the fraud squad, which is now sure to mount a serious investigation.

Could Mr Thomson face charges?

Yes. But even if the police did recommend charges it is likely to be at least a year before a court decision. Mr Thomson would only automatically lose his seat should he be convicted of an offence warranting a custodial sentence of more that 12 months.

What about the government?

The police investigation might actually provide some political respite to the Prime Minister, as rather than having to daily reaffirm her support for a man facing such damning accusations, Ms Gillard and other government members will be able to defer questions until after the investigation.

Why is the HSU's co-operation with the police so important?

Though the allegations that Mr Thomson misused or stole HSU funds have been public knowledge since the Herald reported them in April 2009, police action was difficult without the union complaining. The union, no doubt aware that should a single federal Labor seat fall the government was doomed, did not complain. But with the increasing political pressure - in particular a letter and dossier sent by the shadow attorney-general, George Brandis, on Monday - police acted.

Why did the HSU change its mind?

The national secretary, Kathy Jackson, said the union had turned to the police in part because of new material that had come to light. Over the past two weeks the Herald has revealed that though Mr Thomson denies allegations - suggesting that his card was used by someone else - phones from hotel rooms he had hired were also used to contact escort agencies. It was reported that the Labor Party helped pay for legal bills arising from his aborted legal action against the Herald.

Allegations and investigations

Phillip Coorey, Anna Patty, Sean Nicholls

August 26, 2011

THE besieged Gillard government has accused the opposition of attempted political interference in the Craig Thomson case.

With the NSW Fraud Squad not expected to announce until next week if it will launch an investigation into allegations of credit card misuse by Mr Thomson during his time as the national secretary of the Health Services Union, legal experts have questioned whether a criminal offence had occurred.

Senior Labor figures in Victoria have threatened recriminations against the HSU. Sources said they were looking at ways to deal with the union.

Daryl Melham and Craig Thomson yesterday. Photo: Andrew Meares

Ian Dobinson, a criminal law lecturer at the University of Technology, Sydney, said it was unlikely Mr Thomson would face a fraud charge under the NSW Crimes Act as suggested by the federal shadow attorney-general, George Brandis.

It would need to be proven there had been dishonest deception in the way a financial advantage had been obtained, and this was unlikely to be proven.

''This position is based on the facts as we currently know them and at best what we have now is an inappropriate use of a union credit card [just another type of corporate credit card],'' he said.

''He may be in breach of union rules and even Fair Work provisions but there is no fraud.''

Alex Steel, an associate professor of law at the University of NSW, said Senator Brandis had demonstrated a poor understanding of NSW law by suggesting charges of larceny and fraud under s 192E of the NSW Crimes Act.

Larceny charges applied only to the taking of physical property, not to credit card debts.

Fraudulent appropriation only applies if a person has obtained physical property honestly but later dishonestly decides to keep it or ask for a reward. Embezzlement would not apply to the incurring of credit card debts or the obtaining of services.

Under fire again yesterday, the government pounced on revelations in the Herald that on Friday last week, Senator Brandis rang the NSW Police Minister, Mike Gallacher, to tell him he was going to refer the matter to the police.

Mr Gallacher then rang the Police Commissioner, Andrew Scipione, who later announced the matter was being assessed.

Senator Brandis and Mr Gallacher argued yesterday the phone calls were courtesy calls only but the government implied pressure had been brought to bear.

''Senator Brandis has dialled up a Liberal Party mate … and then that person has called the Police Commissioner,'' Julia Gillard said.

The Premier, Barry O'Farrell, defended Mr Gallacher. ''Contacting the police commissioner to say he is about to get a

letter from a senator, there's no impropriety being suggested there and I don't think there's an issue,'' he said, adding: ''I stand beside my Police Minister''.

Mr Gallacher told the NSW Parliament Senator Brandis had informed him ''out of courtesy'' he intended to write to Mr Scipione. ''I told him writing to the commissioner directly was the correct course of action,'' he said.

Soon after, on Friday night, he was attending a police dinner which Mr Scipione could not attend as he was recovering from a medical procedure and called him to ''check on his recovery''.

''During the course of that conversation I indicated as a courtesy that [Senator Brandis] was going to write to him regarding the Thomson matter,'' he said.

''The commissioner indicated that if he did receive any correspondence it would be treated like any other referral.''

He explained he called Senator Brandis again on Saturday afternoon to inform him to write directly to Mr Scipione.

Ms Gillard did not answer directly when asked if she believed Mr Thomson but said she maintained confidence in him.

She accused the opposition of ''stinking hypocrisy''. The Opposition Leader, Tony Abbott, said the Prime Minister lacked integrity.

The police are assessing material referred to them by Senator Brandis and the union.

The union's national secretary, Kathy Jackson, told the ABC she believed the use of the credit card for prostitutes and other unauthorised services was a crime.

Senior Labor figures in Victoria were considering a possible ban on the HSU from taking part in the party's key policy and powerbroking forum, the state conference. They were looking at using the union's alleged failure to file audited reports to Fairwork Australia as a pretext for its exclusion from the conference.

with Royce Millar

Thomson unlikely to be charged, experts say

Sean Nicholls August 25, 2011

THE NSW Police Minister, Mike Gallacher, is being accused of improperly interfering in the Craig Thomson affair after he phoned the Police Commissioner, Andrew Scipione, to discuss calls for an investigation into the Labor MP soon after being contacted by the opposition Senator George Brandis.

The Herald has learnt that Mr Brandis phoned Mr Gallacher last Friday to alert him of his intention to write to Mr Scipione asking him to investigate allegations that Mr Thomson used a union credit card to pay for escort services.

Mr Gallacher has confirmed he returned Mr Brandis's call and then telephoned Mr Scipione that evening to discuss what he had been told by Mr Brandis. The NSW opposition police spokesman, Nathan Rees, said the telephone calls by Mr Brandis and Mr Gallacher created the perception of political interference.

''Senator Brandis's actions are utterly inappropriate and compromise the Minister for Police,'' he said. ''The Police Minister should never have taken the call or had the discussion. For the minister to then phone the commissioner about this matter is a grave error of judgment. It clearly compromises the assessment of the material by the police. There is a separation of powers for good reason and the Police Minister has clearly breached it.''

In a statement, Mr Gallacher's spokesman said the minister called Mr Scipione to tell him ''that the federal shadow attorney-general, George Brandis, had advised he intended to write directly to the NSW Commissioner of Police''.

A spokeswoman for Mr Scipione confirmed the conversation and said: ''There was no other discussion on the matter.''

But Mr Rees said Mr Gallacher needed to give a full explanation of his discussions.

''It is now incumbent on the Police Minister to reveal exactly the nature of the discussion with Senator Brandis and exactly what he has said to the Commissioner,'' he said.

Mr Brandis wrote to Mr Scipione on Monday with a dossier of information about Mr Thomson, requesting that the NSW police investigate the matter.

Senator Brandis has taken the lead role in prosecuting the case against Mr Thomson for the federal opposition, which has been pushing for a criminal conviction against the former union official as it would force him out of Parliament and cause a byelection in his marginal seat of Dobell.

Labor would most likely lose that byelection and, consequently, government.

Police agreed to ''assess'' the dossier, which is being handled by the fraud squad and expected to take several days before deciding whether an investigation is warranted. Mr Brandis's office did not respond to a request for comment yesterday.

The Prime Minister, Julia Gillard, said that an investigation by Fair Work Australia and the police assessment should be allowed to run their course.

Police Minister rang Scipione about Thomson investigation

Michelle Grattan August 25, 2011

Prime Minister Julia Gillard leaves the House after terminating question time yesterday. Photo: Andrew Meares

WHEN people hear government members mouthing exactly the same lines on issues, it's because they've all learnt them from their daily ''round the world'' cheat sheets. One Labor MP yesterday inadvertently shared them, by leaving the notes on an opposition seat in Parliament.

Yesterday's brief had a response for almost everything - especially lots of answers on the embattled MP Craig Thomson. As usual, it had been put together after staff, rising at an ungodly hour, scanned the overnight and morning media.

If quizzed on a report that Mr Thomson lobbied a business to give his former wife a job, the answer was: ''I'm not across the details, but it seems to me I haven't seen many weaker front pages in my time.''

Then, ''if pushed'': ''His ex-wife didn't get the job, so I'm not sure there's much to talk about here.''

On whether enough work was done in checking out Mr Thomson before the election: ''Craig is a hard worker for his local community. Obviously that's a big factor in preselections.''

There were lines on the latest death in Afghanistan, and a lot on asylum seekers. If asked about the plane waiting on Christmas Island to transfer asylum seekers to Malaysia - assuming the government wins the High Court case - MPs were advised to say: ''This is a prudent arrangement that achieves value for money for taxpayers' dollar expenditure.''

Bonuses for BlueScope executives, volatile financial markets, Libya, Qantas, dangerous dogs and same-sex marriage were all covered.

If asked ''hasn't your climate policy failed to move voters?'' the required response was ''the test of our plan to cut pollution isn't a newspaper poll''.

And on Opposition Leader Tony Abbott, ''he's behaving like a two-year-old'' in refusing to stick to the convention of pairing a Coalition MP for an absent government MP when the carbon bills are voted on.

Also under the heading ''Abbott'' - presumably to be pushed with or without a question - ''At the end of the day, you can't take the bloke seriously.''

Singing from the same old sheet

August 25, 2011

WHERE'S Hans Christian Andersen when you need him?

If he were to compose a modern Australian version of The Emperor's New Clothes, he'd have to leave the entire Parliament naked.

It's an alarming prospect, of course, but the level of of pomposity, hypocrisy and vainglorious pretension on display yesterday fairly cried out for the clear-eyed innocence of a child to point out that ''they're not wearing any clothes''.

A friend in need: Embattled MP Craig Thomson receives a supportive hug from fellow Labor MP Richard Marles during a procedural vote yesterday. Photo: Andrew Meares

As Opposition Leader Tony Abbott, having asked but a single question, rose to demand the suspension of standing orders so that he could stretch Prime Minister Julia Gillard on the rack over her continued support for Craig Thomson (the bearer of the credit card that mysteriously found its way into a succession of bawdy houses) he cloaked the moment in see-through sanctimony.

''It is with considerable reluctance that I move for the suspension of standing orders,'' he oozed.

Piffle. Mr Abbott was about as reluctant to create the opportunity to torment Ms Gillard as an evil child might be to pin a fly to a corkboard.

It took no imagination at all to comprehend that Mr Abbott's cant was so exposed he wasn't even wearing his budgie smugglers.

Ms Gillard, having spent the past week swearing she had boundless confidence in the said bearer of the credit card - a form of progressive disrobing, you might conclude - sensibly chose to disappear altogether from the House of Representatives chamber at this point.

As Mr Abbott and his enthusiastic sidekick Christopher Pyne frothed their way through their tag-team condemnation of Ms Gillard for failing to force Mr Thomson to show his wares, it was left to the government's Anthony Albanese to roll up his sleeves, preparing to defend his Prime Minister's honour.

Mr Albanese, it turned out, hadn't stopped at rolling up his sleeves. By the time he had finished bucketing Mr Abbott for ''hypocrisy writ large'', Mr Albanese was butt naked, too.

He and his colleagues have been seeking plaudits over recent days for feigning to politely tiptoe around the matter of a Liberal senator, Mary Jo Fisher, who is facing charges of having shoplifted goods valued at $92. No longer.

The only parliamentarian facing charges, Mr Albanese thundered, was a Liberal, and it was for shoplifting, and the charges had been kept secret for two months after they were laid.

This, apparently, made Mr Abbott a dreadful fraud for pursuing Mr Thomson, though the parallel between the alleged shoplifting of $92 in goods and Mr Thomson's spot of bother - a union credit card that had inexplicably racked up thousands of dollars for the services of sporting girls and a gift of $90,000 or more from the generous NSW Labor Party - wasn't necessarily obvious.

When the tawdry matter had been talked to an unsatisfactory conclusion and the government had predictably used its numbers to refuse Mr Abbott's demand for a suspension of standing orders,

Ms Gillard miraculously reappeared.

Question time, she announced, was over. The opposition, having asked only one question before its stunt, didn't deserve any further questions.

That left Ms Gillard with not a thread to wear, for it was equally obvious she didn't want to face another question about her confidence in the bearer of the amazing credit card.

Sadly, Hans Christian Andersen put in no appearance, there was no child to point out the bare-bottomed cheek of all concerned and, sadder still, this was no fairy tale.

Cloaked in hypocrisy, our elected display their cheek

By ABC's Barrie Cassidy

Updated August 25, 2011 07:00:52

For decades, many parliamentarians of all persuasions have been rorting privileges like travel and accommodation, printing allowances and overseas study tours. (Thinkstock: Getty Images)

Nobody had any doubt just on a year ago that the "new paradigm" of federal politics, a rare experience with minority government, would be fascinating to watch.

Because an alliance of Labor, the Greens and various independents had such competing interests, some condemned the concept from the start as unworkable at best and destructive at worst.

Others though, welcomed the obligatory dialogue and consensus politics that came with it.

The jury is still out, Labor supporters insist.

But it's not. If these were normal times, then the jury would as one, announce its verdict at election time. But these are far from normal times, and the jurors have been announcing their verdicts one by one for many months now. It appears all have said of the system so far - guilty - guilty on the grounds of unworkability, a lack of competence, misguided policy direction and now internal scandals. Any hope that the last remaining jurors will take a different approach is fading fast.

The evidence for that is everywhere anecdotally and in the opinion polls.

The Government made all sorts of pacts with the Greens and the independents, pacts that are now tearing it asunder.

The carbon tax is the biggest of them. In normal circumstances, if the Government had wanted to return to the issue, they would have done so with some subtlety and finesse. They would have found a way to achieve something like the same result without so blatantly flying in the face of Julia Gillard's now infamous pre-election promise. But because the Greens held government in their hands, they were able to demand of the Government their formula undiluted.

The same applied with Andrew Wilkie and the poker machine reforms. Almost all of the Labor MPs from New South Wales and Queensland would have known of the electoral poison inherent in that reform. But with government on the line, sanity was ignored. No subtlety, no finessing; an unequivocal pledge to support the new and instantly powerful member on his terms.

The first issue has dragged the Government to record lows; the second could yet be the final nail in the coffin.

But there is now another dimension to the minority government atmospheric, and it's on full display with the Craig Thomson issue. Hypocrisy!

OK, that is never in short supply, but right now it's at a chronic level.

Thomson is a backbencher. Thomson is not under scrutiny for anything he has done while a Member of Parliament. Thomson just happens to be the difference between government and opposition; and boy does that make a massive difference.

Consider this. In the first two years of the Howard government, seven ministers - yes ministers - resigned over anything from dodgy expense claims, failure to divest of shares in areas where they had an interest, or irregularities in their ministerial travel allowances.

Even allowing for some of these breaches being inadvertent, they happened while the guilty parties were in parliament; they cost not trade unionists but taxpayers money; and they were resolved when the individuals concerned quit the ministry. That's the point. They quit the ministry but not the parliament.

The one exception was Senator Bob Woods who resigned in March 1997 "for family reasons". Only later did it emerge that he had misused parliamentary privileges.

Take a look at the three ministers at the centre of the so-called "travel rorts affair" that consumed federal parliament in September 1997. Within weeks of the scandal breaking all three resigned.

But John Sharp did not leave politics until August 1998. David Jull retired at the 2007 election. And Peter McGauran hung on until April, 2008.

For decades, many parliamentarians of all persuasions have been rorting privileges like travel and accommodation, printing allowances and overseas study tours. The Auditor-General has routinely documented these breaches. Others have, like Thomson, been too slow to register changes in their pecuniary interests.

In all of these cases the taxpayers that politicians are supposed to serve, were the victims.

In Thomson's case, the abuses are between him, the Health Services Union and its members; albeit some of the most poorly paid in the country's workforce.

If a police investigation finds a criminal offence has been committed, then of course Thomson's career - and the future of the Government - will hinge on the outcome in the courts.

And even short of that, his colleagues now have a much better appreciation of his failings.

But we should not lose sight of the fact that Thomson - guilty or innocent - is being especially and uniquely persecuted because the Government hangs by a thread. Had that not been the case, would this ever have become a matter for the police?

In normal circumstances few people inside or outside the Parliament would give a toss about whether a backbencher once abused his privileges while working for a trade union movement.

That, after all, would be hypocritical. But these are far from normal circumstances.

Barrie Cassidy is the presenter of ABC programs Insiders and Offsiders.

Never mind the substance, feel the hypocrisy - The Drum (Australian Broadcasting Corporation)

By ABC's Annabel Crabb

Posted August 24, 2011 12:26:18

Photo: Government backbencher Craig Thomson has assured his parliamentary colleagues that he is innocent. (AAP: Alan Porritt, file photo)

For all the disservice modern forms of communication have done the English language, there is one great compensation. Twitter and txt-speak have given pulsing life to acronyms.

Acronyms are no longer simply the shorthand for organisations or theoretical concepts so arid that it is as much as the human brain can do just to memorise, feebly, a representative clutch of letters. On Twitter, acronyms are condensed little packets of power, a couple of letters standing in for a pungent phrase that would have been used in its longer form, had the writer not been constrained by Twitter's inflexible excess baggage prohibition.

One of my favourites is "FFS". Sure, its extended version (For F***'s Sake) is fairly seamy, and not an expression one would ordinarily use around one's mother. But I love FFS, for its pithy and very Australian blend of implied obscenity with genuine, palms-to-the-skies, you've-got-to-be-kidding exasperation.

Well, I reckon the Craig Thomson affair has reached its FFS moment.

How can you tell when a political scandal has reached its FFS moment?

The first thing to look for is the growth of absurd tentacles to the matter at hand. Like yesterday's Question Time, which absorbed itself for quite a lengthy period in the legal pros and cons of whether Assistant Treasurer Bill Shorten should be obliged to come to the dispatch box to venture an opinion on whether the money paid by the New South Wales Labor Party to keep Craig Thomson out of Queer Street should be considered part of the unfortunate gentleman's taxable income.

Anyone in the chamber who had ever even done the photocopying in a legal firm dusted off their robes for a crack at that one, with much reference to House precedent and so forth.

FFS.

The second thing to look for is the incredible opportunism that accompanies the arrival of the police. When the New South Wales Police accepted the package of material supplied by shadow attorney-general George Brandis yesterday and wearily agreed to crack it open for a look, two things happened.

The Opposition welcomed the police's acceptance of the brief as a pleasing escalation to the affair, and immediately adopted the sombre excitement of the helpful crime-scene witness. There was much talk of having "full faith" that the matter would be investigated with the professionalism for which etc etc. The Government, meanwhile, took the grateful scoundrel's approach to the news of the police's involvement. Police investigations, while hardly welcome to any politician, can provide an extremely handy little patch of moral high ground in a terrain of otherwise unrelieved swampiness. "I would love to be able to explain to you how I came to be seated with this underworld crime boss at this table covered with cocaine and paper bags full of cash, and planning approval deeds on which my signature is only just drying. But the police are investigating, and it would be very wrong of me to prejudice that process."

Yesterday, the Prime Minister explained to the House that, what with the cops being involved in the Thomson affair and everything, it was probably better for her to say nothing at all, about either the question of Mr Thomson's use of union funds or of the ALP's use of party funds to come to his rescue.

Oh, FFS.

As happens so often with political scandals, this one has jumped the shark. The furious over-prosecution of side issues obscures the only issue about which anyone sensible should give a damn: did this man use, for private use, funds that were not his to use? That is the only proper question of moral turpitude here.

Mr Thomson has assured colleagues that he is innocent. And no wrongly accused person could ever be in a better position; he has a boss compelled by circumstance to be hugely understanding, a national audience hanging on his every word and a forum - in Federal Parliament - in which he can not only mount a full explanation, but be afforded full parliamentary privilege while doing so.

If there's an explanation for all of this, let's hear it.

FFS.

Annabel Crabb is the ABC's chief online political writer.

Craig Thomson affair reaches its FFS moment - The Drum (Australian Broadcasting Corporation)

By Malcolm Farr, National Political Editor

From: news.com.au August 24, 2011 12:00AM

 

Watch: Thomson trouble continues

Embattled Labor MP Craig Thompson has stepped down as chairman of a powerful economics committee.TEN24 August 2011

TONY Abbot this morning threatened to prevent Prime Minister Julia Gillard greeting a visiting head of state to ensure she attended a debate on Labor's problem MP Craig Thomson.

Craig Thomson's former wife, Christa. The MP used his parliamentary email to lobby a company on her behalf. Picture: Lindsay Moller Source: The Daily Telegraph

The threat comes as new revelations emerged that the MP used his parliamentary email to lobby Central Coast Group Training (CCGT) on behalf of his ex-wife, Christa, in March - while applying for $2.7 million in federal funding.

The Opposition was preparing to move a motion this morning forcing Mr Thomson to explain his position on claims he misuse credit cards while head of the Health Services Union.

"It's very important this matter be resolved and this boil for the Government be lanced," said the Opposition Leader demanding Ms Gillard also make a statement to Parliament.

But a senior Labor figure said: "This is complete madness."

Mr Abbott this morning threatened to deny Ms Gillard a pair - the system by which an MP with a valid to be absent from Parliament is matched with an opposing MP to maintain relative numbers.

Related Coverage

• Wilkie: MP should explain himself

• Thomson sought job for ex-wife Courier Mail, 1 hour ago
• Opposition keeps pressure on Craig Thomson NEWS.com.au, 2 hours ago
• Pressure mounts on credit card MP Perth Now, 4 hours ago
• Thomson quits key committee as pressure mounts on ALP The Australian, 4 hours ago
• Labor MP sought job for ex-wife Adelaide Now, 10 hours ago

He later relented, but has made clear the Opposition will show no mercy with future Government claims for a pair.

The Prime Minister is scheduled to formally welcome the President of the Seychelles, James Michel, who is visiting Canberra.

At the same time the Opposition is expected to move its motion to force Mr Thomson to make a public statement.

A similar motion failed on a technicality on Monday but the Opposition has been encouraged by a statement from independent Andrew Wilkie who last night said a public explanation from Mr Thomson would be in the public interest.

The Opposition has already given two pairs for today, one to Foreign Minister Kevin Rudd who is recovering from a heart valve replacement, the other to Indigenous Affairs Minister Jenny Macklin who is attending a function in Alice Springs.

That means the Opposition will have 70 votes and will need the support of all six cross benchers to make Mr Thomson speak up.

Cross bencher Andrew Wilkie said the public interest would be served by Mr Thomson "having his say in Parliament".

Mr Wilkie's calls come as new revelations emerged that Mr Thomson emailed CCGT manager Alison Cook dated March 11 this year, Mr Thomson wrote: "Hi Alison, here is Christa's resume as discussed. I will get her to give you a call."

However, CCGT management decided it would be inappropriate to give Mrs Thomson work due to the role played by her ex-husband in the funding.

Mr Thomson last night confirmed approaching CCGT on behalf of his ex-wife but said she was treated the same as other applicants.

"She did not get a job there," he said.

NSW Police are currently assessing claims presented to them by the Federal Opposition and covering Mr Thomson's time as national secretary of the Health Services Union. Fair Work Australia is investigating accusations from a workplace relations aspect.

NSW Police confirmed information was received by police in a letter from Shadow Attorney-General George Brandis.

"This correspondence has now been referred for internal assessment to determine whether a criminal offence has occurred," NSW Police said in a statement.

"As with any other matter ... standardised assessment and investigation protocols will be followed."

Mr Thomson yesterday announced his decision to step down as chair of the House of Representatives economics committee - sacrificing a $12,000 payment that goes with the position.

"The current circumstances will clearly distract from the important work of the committee," he said.

With Steve Lewis and Andrew Clennell

Tony Abbott threaten PM's state meeting over Thomson | News.com.au

Nick O'malley, Phillip Coorey

August 23, 2011

In question time ... Craig Thomson. Photo: Andrew Meares

CALLS made from Craig Thomson's mobile phone appear to cast more doubt on the embattled Labor MP's denial that he was responsible for using his Health Services Union credit card to pay prostitutes.

Since the Herald revealed the spending in 2009, Mr Thompson has denied the allegations, saying other people had access to the card and, by implication, to his mobile phone. But the Herald can reveal that the phone used to contact escort agencies was also used to call senior Labor and union figures.

Court documents show that on April 7, 2005, Mr Thomson's phone was used to call escort agencies at 11.12pm and 11.13pm, and again at 12.05 the following morning, April 8.

The same phone was used to call a media contact for the Labor MP Stephen Smith at 6.43pm and 8.25pm on April 7, and in the previous 24 hours the phone had been used to call Michael Williamson, the then general secretary of the Health Services Union.

As the Herald revealed, Mr Thomson's card was used to pay $2475 to an escort agency on April 8.

Early on the morning of August 16, 2007, Mr Thomson's phone was used to call two escort agencies. In the two preceding days the same phone had been used to contact two staffers of the Health Services Union, a close friend of Mr Thomson's and a staff member of Labor MP Mark Arbib. Also on August 15 a payment of $385 was made to an escort agency from Mr Thomson's credit card.

The shadow attorney-general, George Brandis, sent a letter to the NSW police yesterday requesting they investigate.

If Mr Thomson were charged and convicted, he would have to leave Parliament.

The Coalition would most likely win his seat in a byelection and threaten Labor's ability to maintain government.

Mr Thomson's old union has not pressed charges and Senator Brandis said people could draw their own conclusions about that. However, the union did withhold $191,000 in entitlements it owed Mr Thomson when he left to enter Parliament.

The Prime Minister, Julia Gillard, continued to express confidence in Mr Thomson.

The independents sided with the Coalition on a motion by opposition frontbencher Christopher Pyne requiring Mr Thomson to explain himself to Parliament.

Senior Labor minister Anthony Albanese accused the Coalition leader, Tony Abbott, of double standards for demanding that Mr Thomson stand down as the chairman of the House Economics Committee. Liberal Senator Mary Jo Fisher is charged with shoplifting but is still the chairman of a parliamentary committee.

In April, Mr Thomson dropped defamation proceedings against the Herald, which had alleged that he was unfit to be a federal member of Parliament because he had sworn a knowingly false affidavit in the proceedings.

Business, prostitute calls made on the same night with Thomson's phone

August 22, 2011 - 11:29AM

AAP

The federal government has dismissed as a stunt a coalition plan to refer embattled Labor MP Craig Thomson to the NSW police.

The member for Dobell repeatedly has denied using a union credit card to pay for escort services, saying it was regularly used by other people within the Health Services Union when he was national secretary.

Opposition legal affairs spokesman George Brandis says if that's the case then a police investigation is warranted.

"It is a crime in NSW to use someone else's credit card for your own personal expenses," he told ABC Radio on Monday.

"If Mr Thomson isn't telling the truth then it seems reasonably clear that at least some of the outlays from his union credit card were for personal expenses."

Fair Work Australia is investigating the union, but Senator Brandis said that inquiry was limited to industrial matters.

Labor frontbencher Anthony Albanese said Senator Brandis' police referral should not be taken seriously.

"Authorities don't need Senator George Brandis," he told reporters in Canberra.

"It is just a stunt ... which is why he is not taken seriously in terms of his position as shadow attorney-general."

Mr Albanese said he had no reason to doubt Mr Thomson's denial of any wrongdoing.

"It is the case that certain allegations have been made, the member for Dobell has denied them, this has been an issue that has been around for some period of time," he said.

"...people are innocent of any allegations until they are proven."

Mr Albanese also rejected the coalition's call on Sunday for Mr Thomson to be stripped of his economics committee chairmanship.

The minister said the only parliamentary member facing actual charges was Liberal senator Mary Jo Fisher, chairwoman of the Senate's environment committee, who is due to appear in court over allegedly stealing groceries from a supermarket.

"What we need here is a bit of consistency," Mr Albanese said.

There was no room on the parliamentary schedule this week for Mr Thomson to give a public explanation, and in any case a "very public discussion has occurred" on the matter.

Meanwhile, opposition finance spokesman Andrew Robb says Fair Work Australia appears to have been caught "seriously flat-footed" by its pedestrian approach to the issues.

He said the Australian Securities and Investment Commission should be given the power to oversee union finances.

© 2011 AAP

Govt says Thomson police probe is a stunt