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August 24, 2011

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Police probe of MP adds to Gillard's woes

AUSTRALIAN police said yesterday they were investigating whether a government member of parliament committed a crime by allegedly using a union credit card to pay for prostitutes - an accusation which, if proven, could bring down the minority government.

Prime Minister Julia Gillard clings to power with one seat, thanks to the support of one Green and three independent MPs, but her Labor government would lose if elections were held today, according to opinion polls.

Labor backbench MP Craig Thomson, a former health union boss who heads an economics committee in the parliament, has strongly denied using a union credit card to pay for brothel services before he was elected to parliament. Thomson says his signature was forged by a still-unnamed acquaintance.

Media, led by the Sydney Morning Herald, have reported in detail the use of the credit card for escort services but have not directly linked Thomson to the payments.

Thomson said he would stand down from his role as the head of the House Economics Committee as pressure on him mounted over the accusations.

"I continue to reject claims of wrongdoing. I will continue to serve as a member of the committee as it undertakes its important work," he said.

Gillard has staunchly defended Thomson, who if convicted of a crime and sentenced to a minimum of one year's jail would become ineligible to sit in parliament.

That would force a by-election which Labor, whose center-piece policies of carbon and mining taxes are deeply unpopular, would likely struggle to win.

Police said they were launching an inquiry into the claims after an opposition politician supplied them with information on Thomson.

"Shadow Attorney-General George Brandis has provided information to police in relation to a number of matters concerning a federal Labor MP," New South Wales state police said in a statement.

The police inquiry will add to Gillard's woes as she struggles badly in opinion polls. Fresh elections are not due until 2013.

A Newspoll survey in the Australian newspaper showed Labor's popularity has fallen back to record lows, down two points to 27 percent, while Gillard's own popularity was down four percent to a catastrophic 29 percent.



 

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