Tony Abbott to launch inquiry into AWU 'slush fund'

JULIA Gillard and a raft of senior Labor figures could be grilled by a judicial inquiry into the union slush fund scandal involving her former boyfriend.

Former PM Julia Gillard may have to front an inquiry into the AWU scandal if Tony Abbott is elected on September 7.

JULIA Gillard and a raft of senior Labor figures could face being grilled by a judicial inquiry into the union slush fund scandal involving her former boyfriend.

Senior Coalition figures confirm an Abbott Government would establish a royal commission-style inquiry into the alleged misuse of up to $1 million in funds from the Australian Workers' Union.

It would have powers to compel witnesses to give evidence, with senior Coalition figures naming the former Prime Minister as one of the key political figures who would be required to appear.

Ms Gillard has consistently denied any wrongdoing.

Last night, former Attorney-General, Rob McClelland - who helped to reignite the 20-year-old scandal when he gave a statement to parliament in mid-2012 - pledged to "co-operate" with any investigation.

Documents filed in the Melbourne Magistrates Court confirm Ms Gillard is a focus in the ongoing police investigation.

The court issued a search warrant in May 2013 directing police to search Slater & Gordon's Melbourne premises. They seized documents including "personnel files relating to Julia Gillard including her invoices/billings, time sheets and travel records".

They also seized "partnership meeting documents pertaining to Julia Gillard and the (AWU)".

Ms Gillard provided legal advice to her then boyfriend and former AWU official, Bruce Wilson, who was described in court as the "primary subject" of the long running inquiry.

The former PM helped to establish the Australian Workers' Union Workplace Reform Association.

Ms Gillard described this vehicle as a "slush fund" during an exit interview from Slater & Gordon in 1995.

A spokesman for Ms Gillard said she had no comment on the matter.

The former Labor leader has maintained that the allegations against her were a "smear" while Mr Wilson - who now lives on the NSW north coast - has cleared Ms Gillard of any wrongdoing.

Kevin Rudd, campaigning in Tasmania, also declined to comment on the scandal.

"I have nothing to add to this as it is an ongoing investigation," the PM told reporters.

Mr McClelland has returned to work as a partner at law firm Turner Freeman after quitting politics.

In the mid-1990s, he provided legal advice to a former AWU joint national secretary Ian Cambridge as he tried to investigate the alleged misuse of union funds.

Mr McClelland said the law firm had not been asked to hand over any documents relating to the AWU matter.

"But of course, Turner Freeman and I personally would co-operate with any police or other investigation into the matter," he said.

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