How a former judge helped the Hawke government survive Ivanov affair

FORMER High Court judge Michael McHugh was pivotal in saving Bob Hawke's government from a security scandal.

Former High Court judge Michael McHugh saved Bob Hawke's government from a security scandal involving KGB spy Valery Ivanov and former ALP national secretary David Combe, it has been revealed.

FORMER High Court judge Michael McHugh was pivotal in saving Bob Hawke's government from a security scandal.

As a barrister, Mr McHugh gave the former prime minister private advice on managing the 1983 Combe-Ivanov affair.

Mr McHugh's views on the security crisis are contained at length in Blanche d'Alpuget's new book, Hawke: The Prime Minister, serialised in The Australian today.

The book reveals that when ASIO briefed Mr Hawke on the links between former ALP national secretary David Combe and Soviet KGB operative Valery Ivanov, the prime minister feared his government might be finished. Mr Hawke was convinced that "if this blows, we'll only last one term".

For the first time, Mr McHugh discloses the private advice he gave Mr Hawke. It came after Mr McHugh's wife, Jeanette, a Labor MP, brought home to her husband that "the government's life" depended upon a favourable finding from royal commissioner Robert Hope.

When Mr McHugh, representing the government, read ASIO's phone intercepts, he was alarmed because it had "a very weak case to argue" against Mr Combe. As a result, he asked for a meeting with the prime minister that also included attorney-general Gareth Evans.

"Gareth Evans wanted a government counsel to control the case for the whole government," Mr McHugh said of tactics before the royal commission. "But I could see big problems a conflict of interest between ASIO and the government. In the end, ASIO might have to wear the blame from the government's point of view.

"I didn't want to be in a position where (I was representing both parties) . . . And Bob said to me: 'Is it your professional judgment that ASIO be separately represented?'

"And I said, 'Yes'. And he said, 'Well, it will be' - and Evans didn't like it. It was obvious from his face. But it turned out to be the right thing."

In December 1983, the royal commission's report exonerated the government and found Mr Combe's relationship with Ivanov had "serious implications for national security". The Hawke government had been saved.

Mr Combe told The Australian yesterday he was not concerned by revelations in D'Apulget's book: "I have moved on with my life. I've had two careers since then."

After leaving politics, Mr Combe, 67, was Australia's senior trade commissioner in western Canada and Hong Kong during the mid-1980s to early 90s. He then joined the wine industry, and was credited with building the export business of Penfolds and Southcorp during his time as head of European operations from August 1991 to June 2001. He is currently on the board of Evans & Tate winery.

Additional reporting: Jodie Minus