BY MALCOLM FARR, NATIONAL POLITICAL EDITOR
From: news.com.au November 28, 2012 8:42AM
Deputy opposition leader Julie Bishop defended meeting with self-confessed fraudster Ralph Blewitt. Picture: File Source: AAP
The Government is demanding the sacking of Deputy Liberal Leader Julie Bishop over a telephone conversation she had with former "bagman" Ralph Blewitt.
And the Opposition will accuse Prime Minister Julia Gillard of having lost the trust of her own troops after her back down on a UN vote on Palestine.
The Government today will attempt to put on a positive policy front with important legislation on school funding reform and constitutional recognition of indigenous people.
The Aboriginal and Torres Strait Islander Peoples Recognition Bill will start alerting voters to the bipartisan push for recognition in a referendum.
But the savage exchange of accusations over credibility and integrity will ensure the Parliament ends the year on a decidedly partisan tone.
Ms Bishop, chief prosecutor of the Prime Minister over her "slush fund" role as a lawyer 17 years ago, yesterday did not mention the phone call when asked of her contacts with Mr Blewitt, a former Australian Workers' Union official Ms Gillard gave legal advice to in the '90s.
She said she had spoken to Mr Blewitt once, in person, for 10 minutes last Friday. However, the Government is claiming Ms Bishop also had the telephone conversation last Wednesday while she was in Perth.
"If true, she has out and out lied," said a Government source today.
Opposition sources today did not deny the telephone call but said while Ms Bishop had spoken to Mr Blewitt for 10 minutes, Ms Gillard had been his "close associate" for four years.
Mr Bishop today denied telephoning Mr Blewitt but could not reject Labor claims she did speak to him when a third person called.
Ms Bishop said she had never telephoned Mr Blewitt and he had never telephoned her. But she left open the possibility she might have spoken to him when a third person called her.
"Earlier last week (former shock jock) Michael Smith called me while I was driving in Perth and said he was at dinner with someone who wanted to speak to me," said Ms Bishop in a statement.
"That person did not identify themselves and said he was pleased that the AWU fraud was being raised in Parliament. I said that would continue to be the case and my mobile phone dropped out at that point.
"Michael Smith did not call back and I do not know to whom I spoke."
She said that in contrast, Ms Gillard counted Mr Blewitt "among her best friends during the time when a massive fraud was being perpetrated against the AWU".
"The Prime Minister should also answer the question as to whether there has been any contact from any member of her government with (Ms Gillard's former boyfriend) Bruce Wilson," she added.
"I encourage all unionists with knowledge about corruption to contact the police and I am also happy to take their calls."
Mr Blewitt has confirmed he was the person Ms Bishop spoke to, telling the Nine network the call was made last Thursday.
The Opposition will today focus on Julia Gillard's back down, as revealed by news.com.au yesterday, over a vote to elevate the status of Palestine in the United Nations, seen as a move towards statehood.
Ms Gillard wanted Australia to side with Israel and the United States and vote against the move, but after a series of passionate debates in cabinet and outside she was convinced to back an abstention instead.
A senior Opposition source today said that not only had Ms Gillard been rolled but "her ministers are lining up to leak about it".
"It shows that Julia Gillard lacks authority as well as being untrustworthy," said the source.
Labor sources have denied Ms Gillard's leadership was at stake hut have confirmed she was forced to change her stance.
In Parliament today the Prime Minister and Schools Minister Peter Garrett will introduce legislation to reform funding for schools.
Influential independent Tony Windsor today urged bipartisan support for the legislation which he said could end 40 years of division on private and public school funding.
"This is the first piece of policy that I've seen that tends to take away that division," Mr Windsor told ABC radio.
Indigenous minister Jenny Macklin is handling the constitutional recognition legislation which is aimed at getting parliamentary support for and commitment to the issue.
The Government has also moved to establish a Joint Select Committee to progress Indigenous constitutional recognition and report back early next year.
The Government expects Parliament to back the Act of Recognition legislation soon after that report.
Government demands sacking of Deputy Liberal Leader Julie Bishop | News.com.au
