The Big Story

The unfolding story has more than a touch of the Whitlams about it – and just imagine the headlines if this was about a politician on the other side.

MP Craig Thomson paid to save Julia Gillard

Andrew Clennell

NSW Labor paid more than $90,000 of MP Craig Thomson’s legal bills and gave him a loan because he would have brought down the Gillard government if he went bankrupt.

A senior Labor source said: "We paid because if he hadn’t he’d be bankrupt (which would render him ineligible to remain in parliament)."

The Daily Telegraph yesterday revealed Sussex St gave Mr Thomson more than $40,000 for legal bills after he dropped a defamation action over claims his union credit card was used to procure prostitutes.

Labor sources have now confirmed the figure was in excess of $90,000, with tens of thousands more as a loan.

Mr Thomson would not comment yesterday, while Prime Minister Julia Gillard’s office also would not comment on whether it had asked NSW Labor to pay his bills.

Read the story at The Telegraph

UPDATE:

The Australian:

Federal MP Craig Thomson has admitted the Labor Party has paid his legal bills

LABOR MP Craig Thomson has admitted he was given a "sum of money" by the ALP’s NSW branch to pay his legal bills after claims his former union credit card was used to pay for the services of prostitutes.

The Member for Dobell updated the register of members’ interests last night, well after the allowable 28 day time limit for making such a declaration. …

It’s understood the register of interests was amended following inquiries from the newspaper [The Telegraph]. …

Labor is desperate to avoid a by-election in Mr Thomson’s seat, fearing it could bring down its fragile minority government.

Prime Minister Julia Gillard yesterday expressed her confidence for the NSW backbencher.

"I have complete confidence in the member for Dobell," she told parliament.

Source: The Australian