Slipper Crisis Rocks Julia Gillard As Speaker Peter Slipper Steps Aside

By David Crowe
The Australian
April 23, 2012

www.theaustralian.com.au/national-affairs/in-depth/slipper-crisis-rocks-julia-gillard-as-speaker-peter-slipper-steps-aside/story-fndckad0-1226335755251

[with video]

JULIA Gillard has lost crucial ground in federal parliament as she seeks support for next month's budget after a sex and fraud scandal forced Peter Slipper to step aside as Speaker of the House of Representatives.

The Prime Minister faced new doubts over her political judgment and her ability to pass contentious reforms, including budget cuts.

Mr Slipper announced the move to stand aside late yesterday to limit the damage from a sexual harassment claim and an investigation into his parliamentary expenses, as he declared his innocence on both counts.

The developments sacrificed Labor's vital buffer on the floor of parliament and triggered frustrations within caucus yesterday over Ms Gillard's decision last November to appoint Mr Slipper when there were already questions over his behaviour.

The government expressed confidence last night it could tough out a parliamentary challenge, reckoning it would survive even if Tony Abbott won the support of crossbench MPs such as Bob Katter and Andrew Wilkie.

Mr Slipper's position is to be taken by Labor Deputy Speaker Anna Burke, who could use her casting vote to defend the government in the event that both the Coalition and Labor gain 74 votes in a confidence motion in the lower house.

The government is counting on a quick investigation into Mr Slipper's financial claims being completed within weeks, clearing the way for him to be reinstated before parliament resumes on May 8, when the budget is announced.

Mr Slipper lost another position last night when the Australian leader of the Traditional Anglican Communion, John Hepworth, asked him to vacate his role as a priest and chancellor in the church.

The developments rocked the government over the weekend after revelations that one of Mr Slipper's former advisers, James Ashby, had lodged a statement of claim in the federal court alleging sexual harassment.

Mr Slipper is separately facing an investigation by the Finance Department into his taxi expenses, leading to allegations of fraud that are also being assessed by the Australian Federal Police.

The scandal over the Speaker appears set to continue today with the expected release of the statement of claim lodged in the civil suit in the Federal Court last Friday, which is said to include details of harassing text messages to Mr Ashby.

Mr Slipper flew into Australia from Los Angeles yesterday morning as senior government figures, including Wayne Swan and Infrastructure Minister Anthony Albanese, rebuffed calls for him to step down, arguing that he deserved the presumption of innocence.

The government's defence triggered Coalition accusations of double standards in the light of Defence Minister's Stephen Smith's insistence last year that Commodore Bruce Kafer step aside as commandant of the Australian Defence Force Academy because of his handling of a sexual assault scandal at the institution.

Hours after the Treasurer's comments, Mr Slipper issued a statement acknowledging the need to protect democratic institutions and revealing he would step aside.

Mr Slipper's statement denied both the allegations in the civil suit and the suggestions of criminal behaviour with his expenses.

Mr Slipper cited the allegations of criminal behaviour as the reason for his move yesterday.

"Once it is clear they are untrue I shall return to the speakership," he said.

"In relation to the civil matter, there will be an appropriate process that will resolve the matter in due course."

The decision does not spare the government from controversy over the scandal, as Mr Slipper continues to collect a $275,000 salary while not sitting in the chamber.

Mr Ashby's court claim could drag on for months even if Mr Slipper returns to his position after the fraud allegations are resolved.

That would expose Ms Gillard to further Coalition taunts for standing by a scandal-prone MP in order to shore up votes in parliament, the accusation levelled against her in regard to the embattled Labor backbencher Craig Thomson.

Labor prepared for that outcome yesterday by arguing that Malcolm Turnbull kept his position in the Howard government ministry while facing a civil claim over HIH Insurance, while earlier Michael Wooldridge remained health minister when disputing a civil defamation case.

Ms Gillard, who flew into Singapore last night for official meetings today before flying to Gallipoli for Anzac Day, issued a statement endorsing the Speaker's decision.

"It is also appropriate for all parties to note the processes under way and treat them with respect," she said.

Labor came under pressure to act on the matter after Mr Wilkie declared on Saturday that Mr Slipper should stand aside.

Mr Wilkie tore up his political pact with Ms Gillard in January after the government reneged on his poker machine reforms, highlighting Labor would rely on Mr Slipper's vote instead.

Regional independent Tony Windsor said Mr Slipper should have the presumption of innocence, a view also expressed by Greens deputy leader Adam Bandt, another of the crucial votes Labor needs in the lower house. Mr Bandt said he did not want parliament turned into a court.

Rob Oakeshott, the regional independent who expressed an interest in becoming Speaker when Ms Gillard formed her government in September 2010, did not respond to requests for comment.

Caucus members praised Ms Gillard yesterday for her handling of the affair, but some expressed frustration over her decision to appoint Mr Slipper last November and sacrifice his predecessor, Harry Jenkins, a popular Labor MP.

"I would have thought they would have checked things out about Peter Slipper before they put him into the job," one caucus member said.

Mr Abbott said yesterday that rumours about Mr Slipper's behaviour had surfaced before Labor chose to make him the Speaker.

"We are left with huge question marks over the judgment and the integrity of the Prime Minister," the Opposition Leader said.

"The Prime Minister forced Harry Jenkins to leave the speakership so that Mr Slipper could assume the speakership in a squalid and tawdry attempt to shore up her numbers, a squalid and tawdry deal which has now ended in tears."

Voters would again question the Prime Minister's standards and integrity, Mr Abbott said.

"This is a Prime Minister who has consistently shown that the only standard that counts for her is what will protect her embattled government, what will shore up her numbers in a very shaky and fragile parliament," he said. "As this day ends, we are left with huge question marks over the judgment and the integrity of the Prime Minister.

"She cannot afford to wash her hands of this, as she has washed her hands of the Craig Thomson matter."

Labor and Coalition sources indicated yesterday, after briefings from the House of Representatives clerk, that Mr Slipper could not vote in parliament while he was stood aside. This meant he could not enter the lower house unless he took the chair, The Australian was told.

Mr Slipper's absence forces Labor to rely more heavily on Mr Bandt, Mr Oakeshott and Mr Windsor and their written agreements with Ms Gillard.

The Coalition has 72 seats including West Australian National Tony Crook and could seek support from Mr Wilkie and Mr Katter to vote against the government, but this would lead to only a tied vote that Ms Burke could resolve in Labor's favour.

Labor sources said Ms Gillard did not speak to Mr Slipper yesterday, although the government's leader in the lower house, Anthony Albanese, was central to yesterday's outcome.

The government insisted that the criminal matters surrounding Mr Slipper could be resolved within weeks by the Finance Department, heading off any police action and leading to the Speaker being restored to his position before budget day on May 8.

The AFP confirmed it was looking into the suggestion that Mr Slipper made false expense claims.

"The AFP is aware of the new allegations of fraud and will be taking action to assess this information," the police said last night.

Greens leader Christine Milne said the Speaker of the house was a "very senior role which must command respect".

"At the same time, the presumption of innocence must be respected," she said in a statement.

The Australian leader of the Traditional Anglican Communion, John Hepworth, yesterday told The Australian Mr Slipper would be asked to stand down while the allegations against him were investigated.

"It is right for anyone accused of serious misconduct in public life, whether in church life or political life, to stand aside until the processes of justice reach a conclusion," Archbishop Hepworth said.

"As Peter Slipper's archbishop, I applaud his decision to stand aside as Speaker, and am seeking a similar decision in relation to his public functions in the church."

Mr Slipper was ordained a priest in 2008, having been a deacon since 2003, climbing the ranks to become the chief legal adviser to Archbishop Hepworth.