Minister defends handling of watchdog boss

Federal Employment Minister Michaelia Cash insists she acted as soon as the building watchdog chief admitted to breaching workplace laws.

Minister for Employment Michaelia Cash

Michaelia Cash has defended the way she handled the resignation of the building watchdog chief. (AAP)

Employment Minister Michaelia Cash has used a Senate committee hearing to defend the way she handled the resignation of the head of the building and construction industry watchdog.

Senator Cash insisted she acted as soon as Nigel Hadgkiss informed her on September 12 that he had breached Fair Work Act laws between January 2014 and July 2016.

She alerted Prime Minister Malcolm Turnbull on the same day and the pair agreed Mr Hadgkiss' position as Australian Building and Construction Commission chief was untenable.

Mr Hadgkiss resigned from his role the next day, having admitted to recklessly misrepresenting union rights on ABCC posters and in handbooks.

The minister told the hearing her media adviser learned of the allegations on August 22, 2016.

But she told Labor senator Doug Cameron she did not act at the time against Mr Hadgkiss because the claims were unproven and he was entitled to the presumption of innocence.

"I assume you'll be doing a press conference after this asking Mr Shorten to stand aside in relation to the allegations that have been made against him - that donations were not properly authorised when he was in charge of the AWU," Senator Cash said.

"Or is it that they are merely allegations at this stage and he should be afforded due process?"

The construction union - which eventually agreed to a joint statement of facts with Mr Hadgkiss - issued a media release on August 22, 2016, claiming the building watchdog material was reckless and illegal.

However, the union later withdrew the media statement after Mr Hadgkiss told AAP the allegations remained unproven and any media commentary could "improperly influence the course of any proceedings".

The committee was told Mr Hadgkiss' legal costs were covered by the taxpayer.

Labor senator Doug Cameron, who estimated the costs as being at least $400,000, asked how the payment was justified.

Senator Cash said she had received advice from her department that the payment was in accordance with a sub-section of a legal services direction, which allowed for partial support to be provided "if the employee acted reasonably and responsibly".

Asked whether she believed Mr Hadgkiss had acted reasonably and responsibly, Senator Cash said she relied on departmental legal advice and that of the Australian Government Solicitor.

"It's not for me to pre-empt what the Federal Court found," she said.

Departmental official Jeremy O'Sullivan told the committee Mr Hadgkiss had been found to be "careless", but that did not represent a higher level of culpability.

The minister said cost of the legal support had not yet been determined.


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