Julia Gillard grilled on Australia Workers Union file dates

THE opposition has challenged Julia Gillard's declaration that she did not know anything further about the workings of an AWU "slush fund".

THE opposition has challenged Julia Gillard's declaration that she did not know anything further about the workings of an AWU "slush fund" after she helped set it up for her then boyfriend in 1992.

Opposition Deputy Leader Julie Bishop asked the Prime Minister in parliament yesterday about a power of attorney dated February 4, 1993, that Ms Gillard signed, giving her then boyfriend, AWU boss Bruce Wilson, legal control over a property transaction involving his friend, self-confessed slush fund bagman Ralph Blewitt.

Ms Bishop told parliament Mr Blewitt had stated publicly he did not sign the power of attorney on that date and he did not sign it in Ms Gillard's presence.

The power of attorney was used to help secure a mortgage of $150,000 borrowed through Slater & Gordon, Ms Gillard's then employer, for the purchase of a property at 85 Kerr Street, Fitzroy, in early 1993. The balance of the money required, as well as stamp duty, came from cheques drawn directly from the slush fund.

Ms Gillard attended the auction with Mr Wilson and was involved in the conveyancing for the property.

Mr Blewitt has admitted to fraud over the fund, the Australian Workers Union Workplace Reform Association.

In question time, Ms Bishop called on the Prime Minister to "come clean on her ongoing involvement in the AWU slush fund, the year after she claimed she had no involvement".

Cheques totalling almost $100,000 from the AWU Workplace Reform Association, which Ms Gillard subsequently admitted was a "slush fund" in an interview with a Slater & Gordon partner, were allegedly funnelled into the purchase of the  $230,000 Fitzroy terrace house.

Ms Gillard had helped set up the association 12 months earlier but she did not open a file on Slater & Gordon's computer system and did not disclose it to partners of the firm, nor to the firm's client, the AWU.

In a news conference on August 23, the Prime Minister said she had helped set up the fund, but denied any wrongdoing and insisted she had not been aware of its working until serious claims of fraud were made in 1995.

In parliament yesterday, Ms Bishop asked: "Why won't the Prime Minister inform the house why she said on August 23 she had no involvement when this proves that 12 months later she did?"

Ms Gillard said she had dealt with these questions at the August 23 press conference.

She accused the opposition of being focused on "sleaze and smear".

"I stand by those truthful statements," Ms Gillard said. "I refer her to my extensive press conference, where I dealt with all of these issues in a great deal of detail."

Ms Bishop also questioned why Ms Gillard and then fellow Slater & Gordon lawyer Bernard Murphy were advising Mr Blewitt in a defamation action against AWU officials in late 1993. Mr Blewitt told The Australian the defamation action was vital to silence dissenters because if they had succeeded in ousting him the secret slush fund would have been exposed.

Ms Gillard again said she stood by her August 23 press conference.

Ms Bishop told The Australian she was examining a significant pile of documents and would continue to press Ms Gillard for a parliamentary explanation of her involvement in the fund.