Aussie MP threatened over escort scandal

Leader of the Australian Labor Party and Prime Ministe Julia Gillard. Photo / AP

Australian Federal MP Craig Thomson says he, his family and staff have received death threats after allegations he misused union funds on escort services.

A Fair Work Australia (FWA) investigation report found Mr Thomson - the former national secretary of the Health Services Union (HSU) from 2002 until his election as a Labor MP in 2007 - misused almost $500,000 in members' funds on escort services, cash withdrawals and electioneering.

Mr Thomson, the member for the NSW seat of Dobell, has denied any wrongdoing and vowed to fight the alleged contraventions of workplace laws and union rules in the Federal Court.

In his first statement on the issue to parliament on Monday, Mr Thomson read from emails and letters and transcripts of the phone call received.

"Go cut your wrists or better still hang yourself," Mr Thomson read.

"You are dead - a bullet between the eyes will save taxpayers money."

Mr Thomson pointed to the opposition benches and press gallery as he said: "You have unleashed the lynch mob. And you have fanned it. And for that you all ultimately are responsible."

Mr Thomson said he had professed his innocence since the allegations were first raised more than thre years ago.

Mr Thomson said he had wanted to make a statement for some time but on the advice of colleagues, friends and legal counsel had not done so.

In hindsight he regretted that, but said he didn't realise the matter would drag on for almost four years.

"I'm very conscious that in the eyes of many of the public I've already been charged, convicted and sentenced," he said.

- AAP