Julia Gillard has asked MP Craig Thomson to quit the Labor Party and told Speaker Peter Slipper to accept a longer suspension as she moves to dispel what she says is a "dark cloud" hanging over the Federal Parliament.
Mr Thomson, who is facing allegations about the misuse of a union credit card, has been suspended from the ALP but says he remains a "Labor person" and will continue to vote with the Government as an independent MP.
Meanwhile Mr Slipper has moved to head off a possible no-confidence motion by confirming he will not be in the chair when Parliament resumes on budget night, May 8.
Gillard moves against Thomson, Slipper
- Craig Thomson suspended from the ALP
- Peter Slipper agrees not to return as Speaker on May 8
- Labor and Coalition now formally tied for numbers in the House of Reps
- But Thomson says he will vote with the Government as an independent MP
- Gillard said she had to act because "a line had been crossed"
- Tony Abbott: "If you want to disown Craig Thomson, you've got to disown his vote too."
- Key independent MPs downplaying talk of an early election
Mr Thomson, the embattled member for Dobell, on the New South Wales central coast, has been under investigation by Fair Work Australia for nearly four years over allegations he used his Health Services Union (HSU) credit card to pay for prostitutes.
Speaking to reporters on Sunday afternoon, he confirmed that he had asked to be suspended from the Labor Party after a discussion with Ms Gillard late yesterday.
"I am still a Labor person ... I will be supporting Labor's agenda ... clearly I am not going to be part of the Caucus process... but broadly I will be supporting the Prime Minister's position in terms of the reform agenda... certainly in terms of no confidence motions, supply motions," he said.
Mr Thomson said he and Ms Gillard "both had the same view as to where we should go on this, for different reasons."
And he savaged Fair Work Australia over its handling of the drawn-out investigation into allegations against him.
"It's been my position right from the start was that this should have been dealt with within six months," he said.
"Quite frankly I've had two baby daughters in the time that this has been going on.
"This is a matter that's gone on for too long ... it's almost inconceivable that we are almost four years down the track.
"There are no charges against me, there are some unsubstantiated allegations that are there... I completely maintain my innocence."
Mr Thomson's dramatic statement came after Ms Gillard addressed reporters to say she had asked Mr Thomson to stand aside for the good of the Parliament.
She also confirmed that Mr Slipper had agreed to extend his exile from the Speaker's chair.
"I have made a judgement call which I believe is right, because I want Australians to be able to look at the Parliament and respect the Parliament, and I believe a line had been crossed about the ability of Australians to confidently say that they had respect in our Parliament," she said.
Craig Thomson's career
- Craig Thomson was elected national secretary of the Health Services Union in 2002.
- He was elected as the Member for Dobell in the 2007 federal election.
- In 2008 the HSU began investigating allegations Mr Thomson used his union-issued credit card to pay for prostitution and escort services.
- The investigation also looked at claims he used the credit card to withdraw cash to bankroll his election campaign.
- Early this year Fair Work Australia completed a three-year report into Mr Thomson's conduct at the HSU.
- The findings of the report are yet to be released.
- Mr Thomson has denied the allegations.
Mr Thomson said he had called Labor's New South Wales secretary Sam Dastyari after speaking to Ms Gillard last night, and had asked him to suspend his membership.
His move is not expected to affect the fragile balance of power in the House of Representatives, because he says he will still vote with Labor.
Mr Slipper has released a statement to say he will ask Labor's Deputy Speaker Anna Burke to sit in the Speaker's chair when Parliament resumes on budget night, May 8.
Mr Slipper is under investigation over alleged use of Cabcharge vouchers and is also facing claims that he sexually harassed a male staffer.
He has denied the allegations against him.
'Tainted votes'
Opposition Leader Tony Abbott has repeated his calls for an early election, saying Mr Thomson should not be allowed to vote until the allegations against him had been resolved.
And he demanded to know why Ms Gillard had "suddenly" withdrawn her support for Mr Thomson.
"If you want to disown Craig Thomson, you've got to disown his vote too," he said.
"What does the PM know now that has suddenly forced her to disown Mr Thomson?
"This Government only survives because of tainted votes. If the Prime Minster wants to claim the high moral ground she's got to disown the vote which is now being exercised by someone facing such serious allegations.
"Mr Thomson shouldn't vote until the allegations against him are fully and completely resolved.
"In the end, this is not, as the Prime Minister claims, about the integrity of the Parliament... this is basically to shore up her numbers."
Last week the Government took the extreme step of seeking a Federal Court intervention to appoint an administrator to the Health Services Union (HSU)'s east branch.
Fair Work Australia has just completed an investigation into the HSU and Mr Thomson and is due to make its report public soon.
Mr Thomson's move to the crossbenches indicates he may be fearing the fallout from that report.
Independent Senator Nick Xenophon has told ABC Local Radio he does not expect the resignation to have any major impact on the Gillard government.
"Craig Thomson to his core is a Labor man, an ALP man," he said.
"I would be very surprised if he voted against the Government on any key votes, so I think it's business as usual.
"But it's good for the Government because he'll be seen as distancing himself from the Government, which I think the Government will welcome."
Independent MP Tony Windsor says he is not surprised by the developments, given the circumstances within Labor's ranks.
And he says there is no new ground for action against the Government in the Parliament.
"I'm not going to initiate some motion of no confidence against the Government in a duly-elected Parliament just because the numbers are tight and someone suddenly becomes an independent or there's an inquiry into someone's Cabcharge arrangements," he said.
But he says because the numbers are "precarious", there is always the chance of an early election.
"There's a lot of focus on these Craig Thomson, Peter Slipper things... there may be an early election," he said.
"I've been prepared for an early election since day one."
Embattled Thomson suspended from Labor Party - ABC News (Australian Broadcasting Corporation)
