Jonathon Duniam (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Employment, Senator Cash, and I note the minister's answers given yesterday. I ask: is the minister aware of recent reports about payments from registered organisations to certain political campaigns?

Michaelia Cash (WA, Liberal Party, Minister for Women) Share this | Link to this | Hansard source

I thank Senator Duniam for his question and, yes, I am. This morning we saw the extraordinary reports that, when he was National Secretary of the Australian Workers Union, the Leader of the Opposition, Mr Shorten, was allegedly delegated the power in 2006 to unilaterally donate AWU funds—that is, the membership fees of thousands and thousands of workers—to political campaigns of his choice. And what did he do? Well, he did make donations. When Mr Shorten was national secretary he gave $25,000 of his union's money to none other than himself. That's right; Mr Shorten used his position at the AWU to donate members' money—members' money that he was entrusted as the national secretary to use in their best interests—to his own safe seat campaign for parliament. This, colleagues, is of course eerily similar to the actions of another former Labor member of parliament, Mr Craig Thompson. Mr Craig Thompson was national secretary of the Health Services Union in 2007. Mr Bill Shorten was national secretary of the AWU at the same time. Mr Craig Thompson ran for parliament in 2007. So did Mr Shorten. Mr Thompson spent union members' money on his own political campaign. So did Mr Shorten. But there's one key difference: at least Mr Thompson fronted the parliament and gave an explanation as to why. It may not have been a very good explanation, but at least he told the parliament why. Mr Shorten still needs to explain on what authority he gave money—AWU money—to his own election campaign.

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Duniam, a supplementary question.

Jonathon Duniam (Tasmania, Liberal Party) Share this | Link to this | Hansard source

What risks are there in a registered organisation donating money to the political campaigns of its own staff?

Senator Hanson having entered the chamber

What on earth?

Honourable senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Senators, order! Senators, I've been advised by the clerk via the attendant that the identity of Senator Hanson was established before she entered the chamber. I'm just going to reflect on the mode of dress that Senator Hanson is using. We'll continue with question time.

Michaelia Cash (WA, Liberal Party, Minister for Women) Share this | Link to this | Hansard source

When a registered organisation donates to the political campaigns of its own staff, there is an obvious perception of a conflict of interest. Most organisations would try and avoid this entirely. But Mr Shorten, on the other hand, appears to have happily ensured his union's money was directed to his own election campaign. Again, he needs to answer the question: on what authority did he authorise the donation to his own campaign? Mr Shorten needs to come clean and produce the documents to demonstrate he did not break his union's own rules. Everyday Australians are entitled to ask: 'If Mr Shorten could be so reckless with his own union's money, how can he be trusted with the Australian economy?'

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Duniam, a final supplementary question.

Jonathon Duniam (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Can the minister outline what action the government is taking to improve the governance of registered organisations and prevent the inappropriate use of members' money?

Michaelia Cash (WA, Liberal Party, Minister for Women) Share this | Link to this | Hansard source

The Turnbull government believes that registered organisations should spend their funds in the best interests of their members, not promoting the political careers of their officials. Mr Shorten's actions show he was very happy to use AWU members' funds to help further his own political aspirations, possibly in contravention of his own union's rules. The Turnbull government takes these matters seriously. That's why we passed legislation establishing the Registered Organisations Commission last year to ensure unions and employer groups have similar levels of accountability and transparency as companies. We have improved the disclosure requirements relating to personal interests for officers of registered organisations, along with financial accounting and disclosure obligations. We will always adhere to ensuring that the highest possible standards are set by registered organisations.