Senate debates

Wednesday, 26 November 2014

Questions without Notice

Thomson, Mr Craig

2:23 pm

Photo of Anne RustonAnne Ruston (SA, Liberal Party) Share this | | Hansard source

My question is to the Minister for Employment, Senator Abetz, and follows an extended interview last week in which former Labor member for Dobell Mr Craig Thomson insisted he was innocent of any wrongdoing as National Secretary of the Health Services Union. Can the minister inform the Senate of the costs of Mr Thomson's investigation and litigation, the extent of misconduct by officials in registered organisations and the government's solution to this issue?

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

I thank Senator Ruston for her interest in this very important topic. This week courts began hearing the appeal of former Labor member Craig Thomson against convictions for 65 dishonesty offences involving payments for sexual services, personal travel and entertainment. Not only has the Thomson affair been immensely costly for the honest, hardworking members of the Health Services Union; it has also been immensely costly to the hardworking taxpayers of Australia: $4 million in the investigation and proceedings against Mr Thomson to date.

It is important to note that the conduct in question occurred some seven to 12 years ago. Regrettably, the type of conduct highlighted in the Thomson case is not isolated. The last year has shown that there are more than just one bad apple. Indeed, there is a veritable barrel of rorts, rackets and rip-offs which have been exposed, damaging the reputation of the trade union movement—including the secret slush fund of the Victorian Labor member Melhem, who used that slush fund to bankroll his lifestyle of excess and extravagance.

The government remains extremely concerned about such misuse of union members' funds and that it is rife, and that is why we believe new regulation is required. That is why the government has introduced legislation governing registered organisations designed to protect honest union members and hold to account dishonest union officials. Labor opposition to this measure makes them culpable. The case for the passage of our registered organisations bill is now more overwhelming than ever.

2:26 pm

Photo of Anne RustonAnne Ruston (SA, Liberal Party) Share this | | Hansard source

Mr President, I ask a supplementary question. Can the minister inform the Senate if he is aware of any support or criticism of Mr Thomson's conduct as the National Secretary of the Health Services Union?

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

Criticism of Mr Thomson's conduct was near-universal with one notable exception. It was the Labor Party, which repeatedly refused to condemn Mr Thomson's conduct. Indeed, Mr Shorten as workplace relations minister said, 'Yes, I believe him.' When a motion was put to the Senate to condemn Mr Thomson's misuse of union members' funds, Labor senators voted against the motion despite the findings of the Fair Work Commission. The so-called party of workers sold out the low-paid, hardworking members of the HSU simply to cling to power at any cost—and I really do mean any cost. Senator Dastyari, when he was New South Wales Secretary of the ALP, spent $350,000 of party funds on Craig Thomson's legal bills. It is time for Labor to get over this issue and support our legislation (Time expired)

2:27 pm

Photo of Anne RustonAnne Ruston (SA, Liberal Party) Share this | | Hansard source

Mr President, I ask a further supplementary question. Will the minister advise the Senate how the government intends to protect honest union members from the type of conduct of which Mr Thomson has been found guilty and is now appealing?

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

I thank the Senator for the question. Our registered organisations commission legislation will have an educative aspect to it. It will also have a penalty aspect to it, bringing the officials of registered organisations into line with company directors. If as a company director you rip off your shareholders, you face five years imprisonment and over $300,000 worth of fines. If you are a union official ripping off union members, you only face a $10,000 fine. There is no material or moral difference between a company director ripping off shareholders and a union official ripping off union members. That is why we are bringing in this legislation. I can therefore indicate to the Senate that I am very pleased to advise that the government will tomorrow list the Fair Work (Registered Organisations) Amendment Bill 2014 for the Senate to reconsider.