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The Craig Thomson affair is the Australian political scandal revolving around findings that the Australian federal politician Craig Thomson used the funds of the Health Services Union to pay for personal expenses including travel, meals, entertainment, prostitutes and his own election campaign. As the Labor government of Prime Minister Julia Gillard depends on his vote, a crisis has developed over his continued presence in Parliament.

Thomson's vote in a hung parliament

Both the ALP and the Liberal-National coalition won 72 seats in the 2010 Australian federal election. Government was decided by the six independents and minor party members, with four of the six siding with the ALP led by Prime Minister Julia Gillard. If one of those four changed his vote, the government would cease to enjoy majority support. Since the election, the Coalition has lost one member (Peter Slipper, sitting as an Independent and elected as Speaker) and gained one (Independent Tony Crook joining the Coalition from 8 May 2012).. Independent Adam Wilkie withdrew his support in January 2012 but Speaker Peter Slipper was suspended on 8 May 2012 and may not vote until he is cleared of civil charges or relinquishes his position. (By tradition, a Speaker may not vote in Parliament unless occupying the Speaker's chair, and then only in the event of a tied vote.)

Although Craig Thomson was forced out of the ALP on 8 May 2012 (reducing the government's numbers to 71 against the Coalition's 72), he indicated that he will continue to vote with the ALP. Assuming a vote of confidence, as threatened by Opposition leader Tony Abbott, and that crossbenchers Bob Katter and Andrew Wilkie voted against the government, the vote would be lost with Deputy Speaker Anna Burke casting her vote from the chair to break a 74-74 tie.

However, if Thomson resigned or was suspended from Parliament, the Coalition could expect to win a vote of no-confidence in Julia Gillard's government.

Credit card spending on escorts

The most sensational allegation against Craig Thomson is that he used his union Mastercard to procure prostitutes. The Fair Work Australia report listed four occasions on which this had occurred.

Cash withdrawals

Thomson withdrew a total of $103.338.70 in cash from his union-supplied Mastercard:

Thomson stated that "it was just sometimes more convenient...to pay in cash" and cited the example of an Aboriginal "welcome to country" ceremony where the fee could only be accepted in cash. He also gave an example where money would be withdrawn prior to a trip to Melbourne (page 278). He also said that any unspent cash would be returned along with the receipts to bookkeeper and financial controller Belinda Ord (page 279). Ord, when questioned on this point, was unable to remember any occasion when cash had been returned (pages 280-281). Thomson's personal assistant Ms Nurten Ungun states that she received no documentation on such cash withdrawals (page 283).

Thomson made cash withdrawals totalling $3771.60 from his union credit card during a period of annual leave in Europe from 20 May to 24 June 2004. Thomson stated that he attended meetings relating to HSU business in London during this period. There is no evidence of any approval for this expenditure nor any evidence or report of union activities during this time. Thomson stated that he made a written report on his overseas travel, but when Fair Work Australia made a formal request for a copy, there was no response.

Fair Work Australia identified three occasions on which Thomson travelled to Melbourne and used his union credit card to pay for hotel accounts which included telephone calls from his room to escort agencies. On these occasions Thomson also made large cash withdrawals from his union credit card.

Thomson was invited by Fair Work Australia to comment on these matters but responded that on legal advice that he "decline(d) the opportunity to respond to your specific questions."

2007 election campaign

Expenditure after leaving HSU

Investigations into irregularities

Role of external bodies

NSW ALP

ACTU

Federal ALP

Prime Minister

During Question Time on 16 August 2011, Prime Minister Julia Gillard was asked if her confidence in Craig Thomson was based on a thorough investigation of his credibility. She replied, "I have complete confidence in the member for Dobell. I look forward to him continuing to do that job for a very long, long, long time to come."

Timeline

2002

Thomson is elected as the National Secretary of the HSU.

2007

24 November

Thomson is elected to the federal House of Representatives as member for the Division of Dobell, New South Wales for the Australian Labor Party at the 2007 federal election.

2008

11 December

HSU national secretary Kathy Jackson engages forensic accountants to investigate allegations of impropriety around Thomson's use of a union-issued corporate MasterCard.

2009

6 April

Australian Industrial Registry commences an inquiry into the National Office of the HSU seeking information on possible breaches of union rules or Workplace Relations regulations under legislation.

8 April

The Sydney Morning Herald breaks a story alleging that Craig Thomson used union credit cards to pay for prostitutes, withdraw over $100 000 in cash and fund his election campaign for the federal seat of Dobell. Then Deputy Prime Minister Julia Gillard says, "an independent audit is the best way to get to the bottom of the allegations against Mr Thomson."

2010

February

Thomson initiated defamation proceedings against both the Health Services Union and against the publisher of the Herald, Fairfax Media.

26 March

Terry Nassios delegated by Fair Work Australia to commence an investigation into the affairs of the National Office of the HSU.

2011

April

In proceedings in the New South Wales Supreme Court prior to Thomson's defamation hearing, Fairfax Media claims that subpoenaed records show that details of Thomson's driver's license had been noted on the credit card receipt, that phone records show that Thomson's phone had been used to call two phone numbers associated with a Sydney escort agency and that mobile phone records show that Thomson had travelled from his constituency to Sydney on one of the nights on which one of the impugned charges to the credit card had been made.

Shortly before the defamation trial is scheduled to commence, notice of discontinuance is filed on Thomson's behalf with the New South Wales Supreme Court. Thomson claims that he has reached an out-of-court settlement with Fairfax Media and continues to deny any allegation of impropriety made against him; Fairfax Media claims that Thomson had "dropped" the case and maintains all allegations made against him. It is subsequently revealed that the Australian Labor Party had contributed towards Thomson's legal costs in the actions.

August 2011

In a radio interview Thomson states that he had approved payments made by the Health Services Union to a Sydney escort agency but denied having used the card to pay for prostitution. Rather, he said, another man (who he declined to identify) had used his credit card to pay for escort services and may have forged Thomson's signature in the process and produced a copy of his photo drivers licence as identification; he claimed that unidentified man had subsequently repaid $15,000 to the Health Services Union.

16 August

During Question Time, the Prime Minister Julia Gillard is asked about Thomson: "I have complete confidence in the member for Dobell," Gillard says. "I look forward to him continuing to do that job for a very long, long, long time to come".

18 August

Fair Work Australia reveals it is investigating whether Thomson misled the initial probe into allegations his former union credit card was used to pay for prostitutes. Additionally, court documents in the Fairfax defamation case showed that Thomson's mobile phone had apparently been used to call escort agencies on several occasions in 2005 and 2007.

23 August

Thomson resigns as chair of the House of Representatives Standing Committee on Economics. On the same day, the New South Wales Police Force confirmed it would complete an "internal assessment" to determine whether or not "a criminal offence has occurred".

7 September

A spokesman for New South Wales Police confirms that they would not be conducting a formal investigation or laying charges, but indicates the case had been referred to Victoria Police as the HSU's financial controls were conducted in Melbourne.

2012

28 April 2012

Julia Gillard tells Thomson it is no longer appropriate for him to sit in the Labor caucus. She announces that she is moving to lift a "dark cloud" over Parliament and that "a line has been crossed about the ability of Australians to confidently say that they have respect in our Parliament."

Thomson requests suspension of his ALP membership and states that he would sit on the crossbenches as an independent.

May

A three year investigation by Fair Work Australia of improprieties in the use of union funds describes $6 000 spent on escorts, $103 000 withdrawn as cash advances from union credit cards, and $270 000 spent on Thomson's 2007 election campaign. Fair Work Australia has commenced proceedings against Thomson in the Federal Court. Thomson has called the 1,100 page report, tabled on 7 May 2012 in the Senate, "nothing short of a joke".

References

1. Grattan, Michelle. "Threat to PM's numbers". The Age. Retrieved 10 May 2012.
2. "Coalition claims 72 seats as Nationals MP Tony Crook joins". News.com.au. News Limited. 05 May 2012. Retrieved 14 May 2012. {{cite news}}: |first= missing |last= (help); Check date values in: |date= (help)
3. Ireland, Judith (9 May 2012). "Government survives as Wilkie withdraws support". National Times. Retrieved 15 May 2012.
4. "Political leaders deny Slipper cover-up". Radio Australia. 24 April 2012. Retrieved 15 May 2012.
5. "Embattled Thomson suspended from Labor Party". ABC News. 29 April 2012. Retrieved 15 May 2012.
6. Maiden, Samantha (29 April 2012). "Independent MP Andrew Wilkie warns Slipper crisis could trigger early election Read more: http://www.news.com.au/national/slipper-trigger-for-early-election/story-e6frfkvr-1226341738171#ixzz1uttyAyCW". The Sunday Mail. Retrieved 15 May 2012. {{cite news}}: External link in |title= (help)
7. Kerr, Christian (30 April 2012). "Labor's House of Representatives numbers dwindle to 70". The Australian. Retrieved 15 May 2012.
8. Nassios, Terry. "Investigation into the National Office of the Health Services Union, Escort Services" (PDF). Report of the Delegate to the General Manager of Fair Work Australia. Fair Work Australia. pp. 463–505. Retrieved 10 May 2012.
9. Nassios, Terry. "Investigation into the National Office of the Health Services Union" (PDF). Report of the Delegate to the General Manager of Fair Work Australia. Fair Work Australia. pp. 277–289. Retrieved 10 May 2012.
10. Nassios, Terry. "Investigation into the National Office of the Health Services Union" (PDF). Report of the Delegate to the General Manager of Fair Work Australia. Fair Work Australia. pp. 338–347. Retrieved 10 May 2012.
11. Nassios, Terry. "Investigation into the National Office of the Health Services Union" (PDF). Report of the Delegate to the General Manager of Fair Work Australia. Fair Work Australia. pp. 495–505. Retrieved 10 May 2012.
12. McClymont, Kate (12 May 2012). "Thomson's alternative reality didn't fit the facts". Sydney Morning Herald. Retrieved 16 May 2012.
13. ^ Sheehan, Paul (22 August 2011). "Thomson saga sinks Labor into the abyss". Sydney Morning Herald. Retrieved 16 May 2012.
14. "Mr Craig Thomson MP Dobell". ABC News. Retrieved 24 January 2010.
15. "Commonwealth of Australia Legislative Election 24 November 2007". Retrieved 24 January 2010.
16. ^ "Craig Thomson union credit card rort paid for brothels". Smh.com.au. 8 April 2009. Retrieved 21 August 2011.
17. ^ Nassios, Terry. "Investigation into the National Office of the Health Services Union" (PDF). Report of the Delegate to the General Manager of Fair Work Australia. Fair Work Australia. pp. 26–70. Retrieved 10 May 2012.
18. "MP silent on 'credit card rort'". Smh.com.au. 9 April 2009. Retrieved 21 August 2011.
19. "Craig Thomson|$1million union damages". Smh.com.au. 18 February 2010. Retrieved 21 August 2011.
20. "MP's defamation case settled". Abc.net.au. 28 April 2011. Retrieved 21 August 2011.
21. "MP linked to prostitutes". Smh.com.au. 7 December 2010. Retrieved 21 August 2011.
22. ^ "Labor MP drops case against Fairfax". Smh.com.au. 6 June 2011. Retrieved 21 August 2011.
23. "The gloat may cost". Blogs.news.com.au. Retrieved 21 August 2011.
24. Forton, Danny (16 August 2011). "Labor MP Craig Thomson a protected species: Tony Abbott". The Australian. Retrieved 21 August 2011.
25. Jeremy Thompson (2 August 2011). "MP admits authorising escort payments". Abc.net.au. Retrieved 21 August 2011.
26. "Thomson in new credit card probe".
27. Business, prostitute calls made on the same night with Thomson's phone, The Sydney Morning Herald, 23 August 2011.
28. Johnson, Chris: Thomson vacates committee chair, The Canberra Times, 24 August 2011.
29. "NSW Police to assess allegations MP Craig Thomson misused his union credit card". AAP. 23 August 2011.
30. Police rule out Thomson investigation, ABC News, 8 September 2011.
31. Carroll, Adam (29 April 2012). "Gillard boots Thomson from ALP". Sunshine Coast Daily. Retrieved 10 May 2012.
32. "Embattled Thomson quits Labor party". ABC News. 29 April 2012. Retrieved 29 April 2012.
33. Lane, Sabra. "Fair Work report finds Thomson misused union funds". Australian Broadcasting Corporation. Retrieved 7 May 2012.

External links

• Template:PDFlink

• Political controversies in Australia