gillard press conference, page-5

Embattled MP Craig Thomson has quit Labor, to remain in parliament as an independent

by: Imre Salusinszky and Milanda Rout
From: The Australian
April 29, 2012 11:04AM



BESIEGED federal Labor MP Craig Thomson has quit the Labor Party and will sit on parliament's cross benches.

Senior NSW Labor sources have told The Australian Online that Mr Thomson's party membership has been “suspended” at his own request.

Mr Thomson has been under investigation by police and Fair Work Australia over allegations of misusing more than $100,000 of union funds while head of the Health Services Union, including claims that a credit card issued to him was used to pay for prostitutes.

It is understood Mr Thomson and Julia Gillard spoke yesterday and agreed it would be best for the government, Mr Thomson, and his constituents in the NSW Central Coast seat of Dobell if he went to the cross bench.

Mr Thomson is due to hold a media conference on the Central Coast at 1pm, when he is expected to say he had hoped the allegations against him, regarding unauthorised credit-card use when he was a union official, could have been resolved before now.

He will say it is in the interests of the Gillard government for him to withdraw from the Labor Party while the matter drags on.

The Coalition has accused Labor of protecting Mr Thomson to maintain its slim majority in the House of Representatives. As an independent, he will still vote with Labor.

Mr Thomson's resignation from the party comes as two damning reports on the scandal-plagued HSU are due to be made public in the coming days and weeks.

Fair Work Australia has promised to soon hand over its long-delayed report to the Education, Employment and Workplace Training committee after announcing its investigation into the HSU had uncovered 181 breaches of union rules.

It had been expected that the report, which deals with allegations of union rorting against Mr Thomson and union boss Michael Williamson, would be made public by the committee, like a prior FWA investigation.

But lawyers acting for Mr Thomson last week wrote to the committee, arguing that such a release could prejudice future legal action.

“Although proceedings have not yet been commenced in respect of these matters in the report, it is clear that their commencement is imminent and release of the report and discussion or debate of is contents is likely to prejudice those proceedings,” lawyers for Mr Thomson wrote. “In particular, because of the likely impact of on witnesses and jurors.”

As a result, the chair of the Standing Committee on Education, Employment and Workplace Relations, Gavin Marshall, on Thursday wrote to the Commonwealth Director of Public Prosecutions for advice.

“The committee has been approached by the legal representatives of an interested party with a request not to publish the report on the grounds that to do so would give rise to a substantial risk of prejudice to any subsequent legal proceedings,” he wrote. “The committee has resolved to seek your advice as to the likelihood that its publication would prejudice any subsequent legal proceedings.”

Senator Marshall said the committee would be “grateful to receive this advice at your earliest convenience'.

Another independent report into the Health Services Union's scandal-plagued East branch will be distributed as early as tomorrow.

The move follows deep concern expressed by the report's lead author, Ian Temby QC, that delays would mean “deficiencies” would not be immediately addressed.

The branch's acting general secretary, Peter Mylan, has cancelled two meetings of the HSU East council where Mr Temby and his co-investigator, accountant Dennis Robertson, were due to present their findings.

Lawyers for Workplace Relations Minister Bill Shorten will tomorrow file an application to the Federal Court to have the elected officers of HSU East removed and an administrator put in charge until fresh elections can be held.

NSW police Strikeforce Carnarvon is examining claims Mr Williamson and Craig Thomson took secret commissions from graphic designer John Gilleland, who has a $680,000 annual publishing contract with HSU East.

Mr Williamson, Mr Thomson and Mr Gilleland strenuously deny the allegations.

Strikeforce Carnarvon is also exploring a $1 million-plus contract HSU East has with United Edge, an IT company of which Mr Williamson is a shareholder and director. Mr Williamson denies any conflict of interest.