Thomson investigation to be probed

15 Feb 2012, 9:09 pm   -   Source: AAP
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Mr Thomson, who holds the NSW seat of Dobell, denies using union credit cards for prostitutes and cash withdrawals between 2002 and 2007. (AAP)

Mr Thomson, who holds the NSW seat of Dobell, denies using union credit cards for prostitutes and cash withdrawals between 2002 and 2007. (AAP)

The length of two investigations involving the Health Services Union will be reviewed by a private firm. 

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Fair Work Australia's (FWA) investigations into the Health Services Union (HSU) will be independently reviewed after the agency conceded it had taken an unreasonably long time.

FWA has spent almost four years probing the union's finances in two separate examinations - one into a Victorian branch and another national investigation.

The national investigation covers allegations federal Labor MP Craig Thomson misused his credit card when he was the union's national secretary and complaints involving other union officeholders.

Mr Thomson, who holds the NSW seat of Dobell, denies using union credit cards for prostitutes and cash withdrawals between 2002 and 2007.

FWA acting general manager Bernadette O'Neill agreed on Wednesday the industrial relations umpire's initial inquiries and subsequent investigations had taken an "unreasonably long time".

The length of the probes had prompted legitimate concerns, Ms O'Neill said.

She defended the time frames, saying the investigations were unprecedented in terms of size and complexity.

But she said an independent review of the investigations would be conducted by private firm KPMG, despite her conclusion there had been no political interference.

"I am aware of the allegations that there has been political interference in the investigations and take them very seriously," Ms O'Neill told a Senate estimates hearing in Canberra.

"I have absolutely no reason to conclude that there has been any such interference in the investigations."

The investigation into the Victorian entity, known as Victoria No 1 branch, was concluded on December 23 and Ms O'Neill received the findings in early January.

It found 25 breaches of the union's rules.

"In broad terms, the findings relate to the keeping and lodgement of required financial records and statements and the general duties in relation to the financial management of organisations," Ms O'Neill told the Senate education, employment and workplace relations committee.

She said she will now consider whether to apply to the Federal Court to impose civil penalty provisions or to refer the matter to the Commonwealth Director of Public Prosecutions in relation to criminal offences.

The report will not be made public because it contains material which may be deemed defamatory about individuals, she said.

Opposition workplace relations spokesman Eric Abetz said as much of the final reports as possible should be made publicly available, even if some sections had to be edited out.

The coalition seized on the issue during question time, putting several questions to the government about the national inquiry, its length and calling on it to come clean about ministerial contact with FWA.

Prime Minister Julia Gillard dismissed the coalition's call to set a time frame on the review of the investigations as "pathetic muckraking", repeating her assertion it would be improper to intervene in the workings of an independent agency.

The national investigation, which has been conducted concurrently with the Victorian branch matters, is set to wind up on March 5 when final responses are due from Mr Thomson and four other individuals.

Mr Thomson is understood to have received a set of questions which he has referred to a legal team.

The MP is also keen for the matter to be over, reiterating he has done nothing wrong and has been cleared of any wrongdoing by NSW police in a separate inquiry.

"There is clearly no benefit for me or for the government for this case to go on as long as it has," Mr Thomson said.

"From a personal point of view, the sooner the investigation is finished, the better."

The FWA's report is not expected to be finalised until mid-year, and may not be made public.

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