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ICAC report puts NSW Labor in spotlight

Labor's corruption woes in NSW will enter the election campaign with the release of an ICAC report on Friday.

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Source: AAP


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A report to be released two days before federal Labor's campaign launch and just eight days before the election will put a spotlight on alleged corruption by NSW ALP members.

But Workplace Relations Minister Bill Shorten says it won't detract from Labor's campaign for re-election on September 7.

The NSW Independent Commission Against Corruption (ICAC) will on Friday hand down its second set of findings about the granting of controversial mining licences by disgraced former state Labor minister Ian Macdonald.

Two senior federal MPs, NSW senator Doug Cameron and former federal Climate Change Minister Greg Combet, were called to give evidence during the inquiry, which probed a coal exploration licence granted by Mr Macdonald to a company run by ex-union boss John Maitland and other businessmen.

A separate ICAC report handed down in July already recommended prosecutors look at laying criminal charges against Mr Macdonald and former Labor minister Eddie Obeid, who were found by the ICAC to have acted corruptly in relation to a coal tenement at Mount Penny.

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Federal ministers Stephen Conroy and Tony Burke were mentioned at the hearings as having enjoyed the hospitality of Mr Obeid at his Perisher Valley ski lodge.

The corruption issue is expected to damage Labor in key western Sydney marginal seats.

Mr Shorten told reporters in Brisbane on Tuesday the ALP had "zero tolerance" for corruption.

"In terms of ICAC what has happened with those couple of Labor MPs is shocking, it's ridiculous, it's a betrayal of trust," the minister said.

"I don't think it reflects the Labor cause and the Labor message in this election."

He said Prime Minister Kevin Rudd had acted to clean up the NSW ALP and voters could now have confidence in it.

ICAC's Operation Acacia investigated the awarding of the Doyles Creek exploration licence as a closed tender to Mr Maitland - a former mining union boss and political ally of Mr Macdonald - and others for a "training mine" in December 2008.

Mr Maitland allegedly received a financial windfall when the licence was sold to NuCoal in 2010.


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