Embattled MP slams 'mob rule'

Craig Thomson. Photo / Wikimedia Commons

A sensational and rowdy session of Parliament yesterday failed to ease the Australian Government's agonies over allegations of financial misdeeds by Wellington-born MP Craig Thomson.

Using parliamentary privilege Thomson accused a union rival of framing him, attacked the credibility of his main accusers, and charged Coalition MPs with trampling on democracy.

In an emotional, hour-long statement to the House of Representatives which at one stage brought the embattled MP close to tears, Thomson protested his innocence and launched bitter attacks against the "mob rule" of political opponents who had "trashed the rule of law".

"You have unleashed the lynch mob, and you've fanned it - and for that you are all ultimately responsible," he said.

Thomson also attacked the conduct of sections of the media, including a Channel Seven team that had "hovered under the bathroom window while my pregnant wife was having a shower".

"You have trashed the presumption of innocence."

Thomson's statement outlined his defence against allegations that he misused funds while national secretary of the Health Services Union before entering Parliament.

The allegations, detailed in a 1100-page report presented to the Senate after a four-year investigation by industrial watchdog Fair Work Australia, claim Thomson misused more than A$400,000 ($520,000) of union money on prostitutes, travel and other expenses, and funding for his campaign for Parliament.

Thomson has been suspended from the Labor Party until the claims are resolved and sits as an independent, although he continues casting his crucial vote for Labor.

Thomson's statement failed to answer the allegations to the satisfaction of many commentators and critics, but it did raise significant doubts and reinforced a majority view that Parliament should leave the claims to be tested by the legal process.

He said that in the eyes of many of the public he had already been charged, convicted and sentenced, and read examples of abusive letters and emails: "Go cut your wrists or better still, hang yourself ... you are dead ... a bullet between your eyes would save taxpayers money."

Thomson defended his time with the HSU, saying he had introduced for the first time proper accounting and budgetary rules and oversight to a union scarred by factional infighting and lack of financial accountability.

He said this had angered the NSW and Victorian branches, and attacked the credibility of both Fair Work Australia and his main accusers, HSU national secretary Kathy Jackson and Michael Williamson, now stood aside as president and under investigation.

Thomson said Jackson drove a union-funded Volvo, the union allegedly paid for gym and childcare, she had taken numerous overseas trips, and had been given an A$84,000 golden handshake when her branch was merged into the new HSU East branch.

He also said the Fair Work Australia report was the work of one man based on unproved assertions that the organisation would not release for fear of defamation, and which had handed it instead to a Senate committee for release under parliamentary privilege. The committee had released the 1100-page report within hours of receiving it.

Thomson said Jackson's partner, Michael Lawler, was Fair Work Australia deputy president but had not stepped aside during the investigation.

He said many of the breaches alleged in the report had misconstrued the union's rules, which he said had been followed, with spending approved by the national executive.

Dealing with allegations he had spent more than A$6000 on prostitutes, Thomson said he had many enemies in the union and had received many threats and intimidations.

He said the most significant was one by union official Marco Bolano, to the effect that he would "seek to ruin any political career that I sought and would set me up with a bunch of hookers".

"This was a threat that started in Kathy Jackson's office. The rant went right down the corridor, and was witnessed by many people."

The threat had been reported in writing at the time.

Bolano denied the allegations in a statement, and Jackson said Thomson's claims were "pathetic".

On the use of his credit card and driving licence to hire prostitutes and incur other expenses, Thomson said their details were well known within the office, although he had difficulty explaining the use of his phone.

But he said he was with other people or out of town when three of the seven alleged brothel visits were claimed to have occurred, and urged police to view CCTV footage escort agencies were required to keep of clientele.

Thomson also said probes by NSW and the Australian Electoral Commission had found no evidence of wrongdoing.

SPENDING SCANDAL

MP Craig Thomson (above) is alleged to have misspent more than A$400,000 ($520,000) on prostitutes, political campaigning and other unauthorised expenses while national secretary of the Health Services Union.

A Fair Work Australia report detailed 156 alleged breaches which, if proved, could force Thomson - now suspended from Labor and sitting as an independent - from Parliament.

The Opposition wants to eject Thomson to erase Labor's wafer-thin majority and force an election.

But New South Wales police and Electoral Commission investigations failed to find criminal offences, no charges have been laid, and Thomson continues to protest his innocence and vote with Labor.

GOVT RETURNS SERVE IN MUD-SLINGING

The Government has struck back at the Opposition's attack on embattled MP Craig Thomson after allegations of assault, homophobia and breaches of parliamentary rules against Liberal politicians.

Opposition Leader Tony Abbott has accused Prime Minister Julia Gillard of political cynicism by continuing to rely on Thomson's "tainted" vote for the survival of her fragile minority government.

Labor has repeatedly charged the Opposition with hypocrisy because of its support for Liberal MPs also accused of - and in some cases found guilty of - various offences.

A complaint has now been lodged with the police against Liberal Senator Bill Heffernan, alleging assault against a member of NSW's Energy Minister Chris Hartcher's staff.

In a statutory declaration published in News Ltd newspapers, Ray Carter alleged that Heffernan had pushed him into a chair with a blow to the shoulder, saying: "I didn't know you were a poofter". Trade Minister Craig Emerson said Abbott should expel Heffernan or admit to double standards over parliamentary conduct.

"If Mr Abbott applied his own principles he'd refuse to accept Senator Heffernan's tainted vote, he will stand him down from chairing the relevant Senate committee and he will move to dismiss Senator Heffernan from the Liberal Party," he said.

The Government's attack continued in Parliament yesterday, when Leader of the House Anthony Albanese said Liberal Sydney MP Craig Kelly had been accused of failing to declare company directorships, and potential liabilities and possible criminal charges arising from the collapse of his family company.

Albanese said there were reports of Mr Kelly acting as a solicitor while a member of Parliament.

He said Kelly would have committed serious contempt against Parliament if he was found not to have reported any income or conflicts of interest.