Craig Thomson penalty of $435,000 not enough: government

Turnbull government slams a $435,000 penalty judgment against former Labor MP Craig Thomson as ‘insufficient’.

The Turnbull government has slammed a $435,000 penalty judgment against former Labor MP Craig Thomson as “insufficient” and the six-year process to bring him to justice as “too slow”, urging tougher sanctions for unionists who break the law.

The former Health Services Union boss who spent hundreds of thousands of dollars in union funds on his own election campaign and on escorts, was fined $80,050 in a Federal Court decision yesterday, and ordered to pay $231,243 compensation for spending union funds on his 2007 election campaign, including $123,800 spent by staffer ­Criselee Stevens.

In a written judgment, judge Christopher Jessup said the need for “deterrence” was “magnified” in Mr Thomson’s case and stressed that he “worked in an environment where he was subject to little or no supervision, nor even surveillance, by other officers of the HSU”.

“Subordinate officials, and members, of the HSU would inevitably have regarded him as an example to be followed, most particularly in the areas of honesty and loyalty to the organisation which he served,” Justice Jessup added. Mr Thomson was ordered to pay the fine within 74 days or face further penalties.

Employment Minister Michaelia Cash seized on the decision to point out the Fair Work Commission general manager had spent more than $4 million prosecuting the case, bolstering the Coalition’s argument for changes to registered organisations laws to overhaul the “completely inadequate ... framework to ensure transparency and accountability” of unions.

Fair Work Commission general manager Bernadette O’Neill said the “decision sends a clear message” to all union officials that “a failure to meet their obligations under the Fair Work (Registered Organisations) Act ... is a serious issue and will be treated accordingly”.