Sam Dastyari’s resignation stage managed for Kristina Keneally, Julie Bishop says

Julie Bishop says the Senator’s resignation should take effect immediately, suggesting Labor had created a “backstop’’ for its Bennelong candidate.

Foreign Minister Julie Bishop called for Senator Dastyari’s resignation to take effect immediately, suggesting Labor had “stage managed” Senator Dastyari’s exit as a “back-stop” for Kristina Keneally in case she doesn’t win Bennelong on Saturday.

“The people of Bennelong deserve better than a candidate who’s just shopping around looking for a seat in the Senate or in the Lower House,” Ms Bishop said.

“First, Sam Dastyari should resign effective immediately. He shouldn’t receive another cent in salary from the Australian people.

“Second, Bill Shorten should say what discussions he’s had with Kristina Keneally about getting her to fill the Senate spot should she not win in Bennelong.”

Meanwhile, Finance Minister Mathias Cormann says Senator Sam Dastyari had resigned because he was causing damage to Labor’s political interests on the eve of the important by-election.

Senator Dastyari this morning announced that he does not intend to return to the Senate in 2018.

His resignation follows weeks of speculation about the future of his parliamentary career, after damaging details of his relationship with Chinese Communist Party-linked billionaire Huang Xiangmo emerged.

“This was yet another failure by Bill Shorten, in terms of his leadership, because Sam Dastyari resigned. Bill Shorten did not sack him,” Senator Cormann said.

“Sam Dastyari should have left weeks ago. He should have Left weeks ago. Bill Shorten refused to take action against him even when his frontbenchers were calling on Sam Dastyari to resign.

Minister for Finance and Deputy Leader of the Government in the Senate, Senator Mathias Cormann, speaks about the resignation of Sam Dastyari in Sydney today. Picture: AAP

“The timing of this is clearly driven by Bill Shorten’s perception of Labor’s political interest.”

Senator Cormann said there was a “world of difference” between the $20,000 Liberal Party campaign donation Huang Xiangmo made to him, and the payments Senator Dastyari personally received from Mr Huang and another Chinese business.

“Both the Labor and Liberal Parties receive donations in the context of elections,” Senator Cormann said.

“All of those donations are lawful and declared, consistent with our disclosure rules. I have met many Australians, including many people around Australia, including that particular gentleman.”

Amid fears the Turnbull government’s rhetoric on foreign donations may be damaging their prospects among Chinese voters in Bennelong, Senator Cormann said Chinese Australians were highly valued members of the Australian community.

“Our relationship with China is an important relationship in which we engage standing up for Australia’s interests, all Australians - Chinese Australians included - expect their government to stand up for the national interests. That is what we’re doing,” Senator Cormann said.

“Obviously, from the Australian Government’s point of view, our relationship with China is a very important relationship. It is a relationship in which we engage, standing up for our national interest.”

‘Sam has done the right thing’

Bill Shorten says disgraced Labor senator Sam Dastaryi has recognised that his parliamentary career is “going nowhere” and done the right thing in resigning.

Mr Shorten defended his handling of the Dastyari matter, saying he had removed Senator Dastayri from Labor’s front bench 14 months ago.

Senator Dastyari was restored to the position of deputy Labor whip in the Senate just five months later.

“More recently, two weeks ago, again I demoted him over poor judgement,” Mr Shorten said.

“There’s no doubt in the days since then Senator Dastyari — and he had discussions with others including myself — has recognised both publicly and privately his career was going nowhere. I think he’s done the right thing. I want to say that he is a decent person and loyal Australian.

“I don’t for one minute accept the government’s characterisation of him being a traitor to Australia.

“I think the government needs to use this opportunity to drop their China-phobic attacks and get on the issues affecting everyday Australians.”

Mr Shorten said it was Senator Dastyari’s decision to resign.

“I think you would appreciate, the Labor Party or any political party can demote MPs but the Senator was elected by New South Wales and has to make the decision to resign. He has,” Mr Shorten said.

“I won’t go into all my discussions but for the record ultimately this was his decision and I support and commend his decision.”

Labor refuses to rule out a Keneally Senate parachute

Mr Shorten refused to rule out the possibility that Labor’s candidate for the Sydney seat of Bennelong, Kristina Keneally, could be parachuted into Senator Dastyari’s Senate seat should she lose Saturday’s by-election.

“I’m ruling in (that) we will do everything we can to win,” Mr Shorten said.

“You understand as a seasoned journalist what the Liberals are saying is they want to

run the line saying Kristina Keneally running for the Senate, and give people a leave pass not to vote for her in Bennelong.

“One thing I’m certain about, people want Kristina Keneally in federal politics. Our clear plan to is to see her elected Saturday as the member.”

Mr Shorten said the decision on Senator Dastyari’s replacement would be up to the NSW Labor Party.

“It’s a Labor Party process, they will resolve it out in the New Year,” he said.

“It has to be sorted out by the New South Wales parliament. In the meantime, we say to Australians and people in Bennelong, if you want Kristina Keneally in Parliament the quickest path is to vote for her on Saturday.”

Ms Keneally said she had previously been asked by the Labor Party to run in the Senate and had declined the offer.

Shorten faces questions about $55,000 lunch with Huang Xiangmo

Senator Dastyari’s resignation comes amid news today that Mr Huang paid $55,000 to attend a lunch with Labor leader Bill Shorten.

Mr Huang’s donation to Labor was previously disclosed, but the ABC is reporting that it was linked to a boardroom lunch with the Opposition Leader in October 2015 during talks on the China-Australia trade deal.

Mr Shorten said questions about donations would need to be directed to the Labor Party.

“You have to ask the party about interest donations raised,” he said.

“We do need to tighten up our foreign donation laws. Labor’s led on this issue. I wrote to Mr Turnbull. I wrote to him six months ago and said how about you do something about foreign agents’ registration.

“I also said early this year no more money from these people, full stop. For the record, these characters donate more no the conservatives than to Labor. But that’s not the issue.”

Mr Shorten said political parties “shouldn’t be taking” money from people such as Mr Huang, and Labor no longer was.

‘Labor values tell me I should leave’

Senator Dastyari’s announced his resignation at a Sydney press conference this morning.

“Today, after much reflection, I’ve decided that the best service I can render to the federal parliamentary Labor Party is to not return to the Senate in 2018,” Senator Dastyari said.

“I’ve not reached this decision lightly, but in my deliberations, I’ve been guided by my Labor values, which tell me that I should leave if my ongoing presence detracts from the pursuit of Labor’s mission.

“It is evident to me we are at that point, so I will spare the party any further distraction.”

Senator Dastyari said his decision was motivated by his love of the Labor Party.

“I know Australia needs a Labor government and I refuse to let my personal situation put that prospect at risk,” he said.

“I have always put the pursuit of the Labor cause first.

“Reflecting on the events which led to my decision, I leave knowing that I’ve always honoured my parliamentary oath.

“I’ve always acted with integrity, and I remain a loyal, patriotic Australian.

“My parents, Ella and Nasser, fled a war-torn Iran, so that they could, like so many migrants, start a new life here as Australians.”

.@billshortenmp: In my opinion @samdastyari's career was going nowhere fast. It was a statement of the obvious that he was considering his position. He's paid the heftiest price - his career in federal politics is over. MORE: https://t.co/x0hFVhQ3rR pic.twitter.com/pjnT9JNdJt

— Sky News Australia (@SkyNewsAust) December 12, 2017

Senator Dastyari said he was proud of his achievements as a senator, listing his role in calling for a banking royal commission and exposing large multinational companies which pay no tax, as well as promoting multiculturalism.

“The Labor Party will have the time to choose my replacement ahead of the parliament returning next year,” he said.

“I will coordinate the departure with the New South Wales branch. I will continue to be an active grassroots member of the Labor Party.”

Senator Dastyari thanked Labor leader Bill Shorten, Labor senate leader Penny Wong and his Labor colleagues for their support throughout his career, as well as his staff and NSW Labor secretary Kaila Murnain.

“Finally, and most importantly, I want to thank my amazingly supportive wife, Helen, our two gorgeous daughters, as well as my extended family, and in particular, my sister,” Senator Dastyari said.

“I said earlier in this statement that I’m a patriotic Australian.

“I meant that with all my heart and I leave the Senate with nothing but good thoughts for our country and for our people.”

Senator Dastyari did not take questions following his announcement.

Labor colleagues show support

Earlier, Mr Shorten released a statement after the announcement, saying that Senator Dastyari had informed him this morning, following their discussions, that he was resigning.

“I told him I thought this was the right decision,” Mr Shorten said.

“I thanked him for his service to the parliament, to the state of New South Wales and to the Australian Labor Party.

“Sam Dastyari is a good, decent and loyal Australian, and an effective parliamentarian, but his judgement has let him down and now he has paid the heaviest price.”

Mr Shorten said Senator Dastyari could be proud of what he had achieved during his time in the Senate.

“He has sought justice for the victims of banking misconduct, exposed the tax minimisation practices of multinational giants, pushed for a better deal for younger Australians and promoted an inclusive multicultural nation,” Mr Shorten said.

“Sam is also a talented and tireless campaigner – his passion, organising skills and boundless good humour has engaged a new generation of progressive activists

“I am sure Sam will continue to make a valuable contribution to our country in whatever he chooses to do.”

Labor leader in the Senate Penny Wong also thanked Senator Dastyari for his service to the parliament and the ALP and his support in the Senate.

“Sam has made the right decision in stepping down,” Senator Wong said.

“Sam brought to the Senate tenacity, determination and campaigning skills that shone a light on issues that the government would rather have swept under the carpet.

“His tireless advocacy on behalf of victims of Australia’s banks, passionate and courageous opposition to racial and religious intolerance and determination to expose multinational tax avoidance are all achievements he can be proud of.

“He had a rare ability to communicate on these issues to many who were otherwise disengaged from politics. Sam has my best wishes for the next chapter in his life.”

Labor colleagues offered their support to Senator Dastyari on Twitter.

“Sam did the wrong thing, now the right thing,” Labor finance spokesman Jim Chalmers said. “Amidst all the criticism today let’s not forget the contribution he’s made to Australia by shining a light on multinational tax avoidance, banking scandals and unfairness and injustice in our society which should trouble us all.”

Sam did the wrong thing, now the right thing. Amidst all the criticism today let’s not forget the contribution he's made to Australia by shining a light on multinational tax avoidance, banking scandals and unfairness and injustice in our society which should trouble us all.

— Jim Chalmers MP (@JEChalmers) December 11, 2017

Labor consumer affairs spokesman Tim Hammond echoed the sentiment.

“Not for the first time, can’t say it any better than my mate @JEChalmers in relation to @samdastyari. You will be missed, my friend,” Mr Hammond tweeted.

Labor agriculture spokesman Joel Fitzgibbon tweeted: “Today @samdastyari again showed his commitment & loyalty to his Party by taking his own difficult decision to resign. A great loss for Labor #auspol”

Today @samdastyari again showed his commitment & loyalty to his Party by taking his own difficult decision to resign. A great loss for Labor #auspol

— Joel Fitzgibbon (@fitzhunter) December 12, 2017

Labor competition and productivity spokesman Andrew Leigh tweeted: “Best wishes to Sam in the next phase of his career. He’s been a strong voice on multinational tax & for a bank royal commission #auspol”

Best wishes to Sam in the next phase of his career. He’s been a strong voice on multinational tax & for a bank royal commission #auspol https://t.co/ShcpUG8rmT

— Andrew Leigh (@ALeighMP) December 11, 2017

NSW Labor Secretary Kaila Murnane said the Labor movement owed a “great deal” to Senator Dastyari.

“He spearheaded the campaigns against multinational tax avoidance, for a Banking royal commission and held the Liberals to account for deals with racist minor parties including One Nation. @NSWLabor #auspol @AustralianLabor,” Ms Murnain tweeted.

Our movement owes a great deal to @samdastyari - he spearheaded the campaigns against multinational tax avoidance, for a Banking royal commission and held the Liberals to account for deals with racist minor parties including One Nation. @NSWLabor #auspol @AustralianLabor

— Kaila Murnain 🙋💪 (@kailamurnain) December 12, 2017

The background to Senator Dastyari’s resignation

Senator Dastyari is the thirteenth Senator to leave parliament since the July 2016 election.

Stephen Conroy, Chris Back and Nick Xenophon resigned, whileBob Day, Rod Culleton, Scott Ludlam, Larissa Waters, Fiona Nash, Malcolm Roberts, Stephen Parry, Jacqui Lambie and Skye Kakoschke-Moore were all forced out after contravening Section 44 of the Constitution.

Sources close to the Labor leader last night said the situation was “untenable”.

A senior Labor source said that Mr Shorten was “no fool”.

“He knows the situation can’t continue,” the source said.

Mr Shorten sent Senator Dastyari to the backbench almost a fortnight ago, after it emerged that he had allegedly gone to the Sydney mansion of Chinese Communist Party-linked businessman Huang Xiangmo and suggested they speak outside, so that their conversation could not be intercepted via their phones.

A partial tape of a press conference Senator Dastyari gave in July 2016 subsequently emerged, in which the Senator could be heard pledging to respect China’s position on the South China Sea, directly contradicting Labor policy.

The recent controversy follows Senator Dastyari’s sacking as Manager of Opposition Business in the Senate in September last year, following revelations that Chinese company Top Education Institute had covered a $1600 travel expense for Senator Dastyari, at his request.

It was also revealed that Mr Huang’s Yuhu group paid Senator Dastyari an undisclosed sum to cover legal expenses after the senator was sued for more than $40,000.

Yesterday allegations emerged that Senator Dastyari had tried to persuade Labor foreign affairs spokeswoman Tanya Plibersek to cancel a meeting with a Chinese pro-democracy activist.

Following last year’s controversy, Mr Shorten restored Senator Dastyari to the position of Labor deputy whip in the Senate after just five months on the backbench.

A key member of Labor’s NSW Right faction, Senator Dastyari, who is now 34, was just 26 when he was elected as General Secretary of Labor’s NSW division in 2010.

The Iranian-born senator was heavily involved in student politics, having joined the ALP at the age of 16 and become president of Young Labor.

Sam Dastyari/ China donor timeline

• August 2013: Sam Dastyari elected to the Senate to replace Matt Thistlethwaite who quit to run for a lower house seat.

• 2015: ASIO cautions Labor and the Liberals against taking donations from two businessmen - Huang Xiangmo and Dr Chau Chak Wing - suspected of being conduits to the Chinese Communist Party.

• June 2016: Dastyari defends China’s actions in the South China Sea during a press conference to Chinese journalists, attended by Huang. “The Chinese integrity of its borders is a matter for China,” he said, contradicting Labor policy outlined by its then defence spokesman just days earlier. * Details of the press conference were revealed in September 2016, at which time Dastyari said he had only “incorrectly” mumbled an answer to a question he should not have taken.

• August 31, 2016: Government documents reveal the Top Education Institute - a Chinese higher education provider - paid Dastyari’s $1670.82 excess travel bill. Dastyari admits in parliament he should have paid the bill himself. * September 5, 2016: New details emerge that Dastyari failed to declare two bottles of wine worth $700 given by big Chinese donors.

• September 6, 2016: Shorten tells off his “junior senator” but will not sack him. Dastyari bumbles through a 26-minute press conference where he admits he was wrong to have a Chinese donor pay outstanding bills. He remains defiant that he did not provide political favours in return for the payments. * September 7, 2016: Quits Labor shadow ministry and role as manager of opposition business in the Senate.

• October 2016: Met with Huang at the businessman’s Sydney mansion and reportedly told him they should leave their phones inside while they spoke outside, as a counter-surveillance measure, and warned him his phone may be tapped.

• February 2017: Appointed deputy opposition whip in the Senate. * June 2017: ABC’s Four Corners reports Dastyari lobbied for Huang to secure Australian citizenship. He says such efforts were part of his job and his office had dealt with hundreds of citizenship matters since he was elected. * November 28, 2017: Fairfax reports on the October 2016 meeting with Huang. Full audio of the June 2016 press conference emerges, contradicting the senator’s September 2016 explanation.

• November 29, 2017: Bill Shorten tells Dastyari he must resign senior parliamentary positions, including as deputy opposition whip in the Senate. Dastyari says he is “shocked” the audio does not match his recollection of what he said at the press conference.

• December 11, 2017: New reports Dastyari attempted to persuade deputy party leader Tanya Plibersek in early 2015 not to meet an activist who had upset the Chinese Government.

• December 12, 2017: Dastyari announces he will quit the Senate, “guided by my Labor values” and to prevent further damage to the party.