The head of the nation's industrial watchdog refused to help or meet senior NSW police investigating Labor MP Craig Thomson, raising fresh questions over its commitment to pursue the union credit card scandal.

Documents reveal former Fair Work Australia general manager Tim Lee told fraud squad detectives it would be "inappropriate" to discuss any aspect of the allegations surrounding Mr Thomson when he was a Health Services Union boss.

This was despite a specific request from acting Superintendent John Watson in August 2011 for "any advice" into the Thomson investigation.The FWA had started its own investigation into allegations he spent hundreds of thousands of dollars using a union credit card to pay for prostitutes and personal items.

As the Fair Work Australia investigation drags into its third year, it also emerged that the costs of the inquiry will probably top $1 million, with FWA spending $321,614 in "external" costs in just eight months. This included $84,392 paid to Brisbane-based business consulting firm Enmark for "accounting" advice.

Mr Lee, a former Labor staffer appointed by the prime minister in 2009 as general manager of the industrial watchdog, was promoted to commissioner last September.

He was approached on August 24 by Supt Watson, who is fraud and cybercrime squad acting commander.

"I would appreciate any advice from you outlining the nature of the investigation that has been conducted by FWA and its status," he wrote.

A day later, the police used even firmer language: "I would like to propose a meeting to discuss certain matters of the Thomson matter."

But Mr Lee refused the approach, saying: "I do not consider it would be appropriate for me, or for any of my staff, to meet with you to discuss FWA's investigation into the HSU national office."

Senior police sources said no subsequent requests had been made for assistance from Fair Work Australia, given the tone of the letter.

Last night, the opposition threatened to haul Mr Lee before parliament to answer questions over his behaviour in the Thomson scandal.

"This is a very bad look for the Prime Minister," the opposition's workplace relations spokesman Eric Abetz said. "Ms Gillard, must explain why - on the face of these documents - Fair Work Australia refused police requests for a meeting to discuss the Craig Thomson matter. The opposition will explore having Mr Lee brought before a senate estimates committee to explain his conduct."

Fair Work Australia said Mr Lee's decision was based on legal advice that neither he nor Fair Work Australia had power to investigate potential breaches of NSW law.

Craig Thomson Scandal Snub

He is under police investigation in two states but that has not stopped Craig Thomson sending invitations to a $3000-a-head fundraiser at the prestigious Aria restaurant, without telling Labor head office about it.

The January 23 fundraiser will feature the embattled federal Labor MP Mr Thomson's Canberra flatmate and frequent public defender, Trade Minister Craig Emerson, as the main speaker, according to a flyer.

It reads: "All proceeds supporting Labor candidates."

Labor insiders yesterday admitted to confusion that Mr Thomson would hold such a fundraiser when his endorsement to run again for the seat of Dobell in a fortnight is looking very doubtful, to say the least.

A senior Labor official said yesterday that he only became aware of the fundraiser at Aria after being informed by The Daily Telegraph yesterday.

"I'm trying to have a fundraiser - as we do all the time. As far as I'm aware all MPs in NSW were told it's in their interests to have fundraising events," Mr Thomson said yesterday.

"You hold fundraisers so you can do ALP business."

He denied the fundraiser was a bid to pay back the Labor Party for the estimated $200,000 it spent bailing him out of legal fees over a defamation case to stop him going bankrupt which would have forced him to resign from parliament.

His resignation and a resulting by-election could bring down the minority Gillard government.

"It's got nothing to do with my legal fees. We have put ... an invitation out for a fundraiser ... whether (it happens), it may or may not be subscribed depending on (demand at) the time of year," Mr Thomson said.

He would not be drawn yesterday on whether he intended to attempt to run again for the seat.

"When the police investigation's finished, I will be making a decision on whether to stand or not." Mr Thomson said.

Mr Thomson is being investigated by Victorian police for allegedly using a union credit card to pay for prostitutes and thousands of dollars of personal expenses.

He and former Health Services Union boss Michael Williamson are also being investigated by the NSW Fraud Squad over allegations of misuse of funds.

Allegations include that they both received American Express credit cards for personal spending from a printing firm which had a lucrative contract with the union.

The Daily Telegraph revealed yesterday that the former head of Fair Work Australia refused to meet detectives to inform them of progress of its investigation into the matter, raising questions about how seriously FWA was taking the Thomson matter.

Meanwhile, NSW detectives flew to Melbourne recently to interview union officials about a computing company owned by Mr Williamson which secured key HSU contracts. Police said investigations were some months from completion.

Craig Thomson Sends Invitations To A $3000 A Head Fundraiser At Aria Restaurant, Without Telling Labor HQ

Having quietly killed off his $3000 a head fund-raiser, Labor's head office no doubt thought its embattled federal MP Craig Thomson would keep a low profile yesterday.

But Mr Thomson was having none of it. Mr Thomson, the subject of three concurrent investigations into allegations that he misused credit cards when a union official, was set to hold a fund-raising lunch yesterday at a swish harbourside Sydney restaurant.

But when details of the event and the cost of the tickets appeared in the media, the event was cancelled.

Yesterday Mr Thomson said the prospect of guests being photographed going into the restaurant was one reason the lunch was cancelled. He refused to say whether he had instructions from head office to pull the pin on the event.

Despite the cancellation of the fund-raising extravaganza, Mr Thomson managed to anger Labor officials by putting himself in the public eye by writing an opinion piece on the backflip by the Prime Minister, Julia Gillard, on poker machine reform. The headline act for the fundraiser, the Trade Minister, Craig Emerson, did not mention the cancellation of the event when asked about it on ABC radio yesterday. ''I'm not doing a fund-raising function for Craig Thomson tonight,'' he said.

When asked if that was because details of the $3000 a head event were incorrect, Mr Emerson said: ''Well, I either am doing a fund-raising function for Craig Thomson tonight, or I am not doing a fund-raising function for Craig Thomson tonight. I think I would know. The answer is that I'm not doing a function for Craig Thomson tonight."

Mr Emerson's spokeswoman later said both offices were working on possible dates for a future event.

The opposition seized on Mr Thomson's appearance in print to raise questions about the length of time Fair Work Australia has taken to look into allegations that as a union official he used his work credit cards on prostitutes and other personal expenses.

''I think all of this stinks to high heaven,'' said the Opposition Leader, Tony Abbott. He told Macquarie Radio the agency had been looking at the allegations since April 2009 but a formal investigation did not start until March 2010.

''It does look like someone is leaning on someone to protect this member and protect this government,'' he said. The Coalition has formally requested an explanation from the industrial regulator about the three years it has taken to investigate the Thomson matter.

Meanwhile, NSW police are investigating separate corruption allegations which concern Mr Thomson and the boss of the Health Services Union, Michael Williamson, receiving secret commissions from a contractor to the union. Both men have denied the allegations.

The head of the NSW fraud squad, Detective Superintendent Col Dyson, said yesterday that Strike Force Carnarvon was ''progressing well''.

"Investigators are in possession of a very large quantity of financial documents and these are undergoing detailed forensic accounting analysis," he said.

Mr Thomson said he had heard nothing from the police and was re-scheduling his fund-raiser. He said any funds raised would go not towards legal fees but be put in an ALP account.

ALP Finds It Can't Keep Maverick Member Down

The formal investigation by Fair Work Australia into the Health Services Union has made adverse findings against key union officials including the president, Michael Williamson, the national secretary, Kathy Jackson, and the former national secretary Craig Thomson, now a federal MP.

The three were notified last month that the workplace regulator intended to make adverse findings against them.

They were given several weeks to respond formally to the allegations. After considering their responses, the regulator will release its final report.

Mr Williamson said in a text message yesterday that his lawyers had not finalised his responses but the allegations against him were ''bread and butter stuff''.

Mr Thomson denies receiving anything from the regulator.

Ms Jackson said she had not known she was being investigated. ''I am outraged by the contraventions being alleged against me,'' she said.

''I will prove that they are utterly without foundation. If I had been given an opportunity to answer them before now, when a draft report has been prepared, I am sure I would not be facing them.''

It is understood that some of the allegations against Mr Williamson and Ms Jackson relate to administrative breaches, such as failing to comply with financial reporting obligations, and are not as serious as those against Mr Thomson, who is accused of using his position for personal advantage.

The allegations against him were received by Fair Work Australia's predecessor, the Australian Industrial Registry, in April 2009. The regulator did not start a formal investigation until March 2010. It was overseen by Terry Nassios.

Appearing before a Senate estimates hearing last February Mr Nassios said he had interviewed 12 people about the allegations. But Labor senators prevented him saying whether Mr Thomson was one of them.

Mr Thomson was with the union for 20 years, rising to the position of national secretary before being elected the MP for Dobell in 2007. He was re-elected in 2010.

An independent audit by BDO Kendall after Mr Thomson's departure found that during his five years as national secretary his union credit card had been used to withdraw cash advances totalling $101,533.

The advances ranged from $100 to $600 and occurred every few days for five years until November 2007.

His credit card had also been used at a Sydney brothel and two escort agencies and to pay restaurants and bars and for personal items.

Mr Thomson is understood to have denied any wrongdoing during his compulsory examination by the regulator, which later refused a request by NSW Police for the contents of the interview.

Mr Thomson is also the subject of an inquiry by the Victoria Police about allegations that he misused his union credit card.

He and Mr Williamson are also the subject of a NSW Police investigation into allegations that they received secret commissions from a supplier to the union. Both have denied any wrongdoing.

The federal opposition has targeted Mr Thomson because of the government's precarious situation. Should Mr Thomson be forced to quit his seat, the government is likely to fall. But he would not have to resign unless convicted of a crime carrying a one-year jail term.

The maximum penalty for a breach under the fair work legislation is a $2200 fine. But allegations of criminal offences can be referred to the Director of Public Prosecutions.

Adverse Findings Against Thomson

Fake emails, cyber sabotage and claims the Health Services Union is like a Stalinist state are just the latest developments in the strife-riven union where head office has engaged an investigator to track down and punish dissenting union members.

It all started last month when a group of disaffected members, concerned about how the union was using their annual $40 million membership fees, sent an email to as many members as they could saying, ''Are you an HSUeast Member? Are you concerned by the recent events? Would you like to know more about where your membership money is going?'' This was followed by an invitation to join ''a state-wide information sharing forum via email''.

The reaction from the NSW head office, already embroiled in two police investigations and an inquiry by the workplace regulator, was brutal.

On January 17, the acting general secretary, Peter Mylan, emailed members saying, ''The Union is extremely concerned as to what appears to be a deliberate breach by person or persons in obtaining your email address without your express approval''.

Mr Mylan said an investigator had been appointed and that ''the perpetrators' (sic) of these unsolicited/unauthorised emails will shortly be known'' and disciplinary action would follow.

The following day, Mr Mylan sent a newsletter to all members reiterating that the ''unsolicited'' emails were illegal and improper. Mr Mylan is the HSUeast's acting head while his friend, Michael Williamson, is on fully paid leave while NSW police investigate allegations of wrongdoing levelled against him and a former official, Craig Thomson.

Those allegations included that Mr Williamson and Mr Thomson received secret commissions from a major supplier to the union and that Mr Williamson had failed to declare his ownership of a company which had a million-dollar contract to supply computers and IT services to the union. The Herald received a deluge of angry emails sent to Mr Mylan. ''While you are running around making a hue and cry about possible breaches to my privacy by the disclosure of my email address, you are ignoring an even bigger problem - the possible misuse of MY hard-earned money, paid in union dues over the past 14 years,'' said one member in an email to Mr Mylan.

Another pointed out that head office was not concerned about members' privacy when emails and SMSes went out asking them to vote for Mr Williamson's son, Chris, who was competing in the Battle of the Bands.

Whistleblower Kathy Jackson, the union's national secretary, also sent a reply to Mr Mylan's newsletter asking for it to be forwarded to all members. ''In a union in Australia it is part of the right of members to communicate with one another about matters that affect them industrially or that affect their union. Mylan's position is deeply undemocratic and should be seen for the disgrace that it is,'' she wrote.

''Mylan needs to understand that a union like HSUeast is not a Stalinist state where the senior officials get to exercise complete control over the information that gets to the rank and file,'' wrote Ms Jackson.

From a fake email account set up in Ms Jackson's name, ''Kathy'' implored members to stop sending unsolicited emails. Mr Mylan did not reply to the Herald's calls or email.

Union Members' Email Protest Sparks Backlash From Head Office

The head of the embattled Health Services Union launched a sensational claim last night that the federal government may be interfering in the Fair Work Australia investigation of Labor MP Craig Thomson.

The secretary of HSU, Kathy Jackson, told the ABC's 7.30 program that she "suspects" the government has intervened to stall the inquiry into claims Mr Thomson misused union funds. The Labor government relies on Mr Thomson's position as an MP to hold onto government.

Ms Jackson, who has set up a website, also called for an independent inquiry into the goings-on at Fair Work Australia.

Fair Work Australia, an independent statutory body, has been investigating Mr Thomson over claims he used union credit cards to pay for prostitutes.

Asked to comment on claims by the Opposition Leader Tony Abbott, that the government had ordered a "go-slow" on the inquiry to protect its MP, Ms Jackson said, "Anything is possible".

Pressed on whether she was accusing the government of interference, she said she had no evidence, but added: "I suspect it because of what I'm hearing around town."

Ms Jackson said she had long asked why the inquiry was taking so long. "Why are we still waiting for answers? Why are we in this position? We need this to end."

Union: Thomson Probe Hampered

The federal opposition has renewed its calls for the industrial umpire's report into embattled Labor MP Craig Thomson to be made public.

A spokesman for Fair Work Australia yesterday said the investigation into Mr Thomson and the Health Service Union's finances might not be publicly released.

Since 2009, Fair Work Australia (FWA) has been examining allegations of financial irregularities at the union formerly headed by Mr Thomson, now the MP for the NSW seat of Dobell.

It's been claimed Mr Thomson used union credit cards for prostitutes, lavish meals and cash withdrawals - claims he denies.

The backbencher's vote is crucial to the survival of the Gillard minority government.

Opposition frontbencher Scott Morrison said there was "a real stench" surrounding the government on the issue.

"It is very hard for the Australian people to have any confidence in a process which is clearly being delayed by extensive periods of time," Mr Morrison told reporters in Sydney today.

"There is a very real perception out there that if this matter is not concluded properly, then this government has to answer questions about what are they seeking to cover up."

Mr Thomson was holding the government together by a "very slender thread", Mr Morrison added.

"We want to see this matter finalised and resolved. We want to see the report made public. We want to see this investigation completed," he said.

'A Real Stench': Thomson Report Must Be Released, Insist Opposition

The former head of the government's industrial relations watchdog has been ordered to appear at a Senate estimates hearing next Wednesday and will face a grilling over what the opposition says has been three years of inaction relating to an investigation into the embattled Labor MP Craig Thomson.

The opposition leader in the Senate, Eric Abetz, confirmed to Fairfax Media today that directives had been sent to the former Fair Work Australia commissioner, Tim Lee, and the statutory body's communications manager, Judy Hughes, to attend next week's estimates hearings as the Coalition prepares to probe the government over "credibility issues".

Mr Thomson, a former official with the Health Services Union, is being investigated by Fair Work Australia over allegations of misconduct and the misuse of an HSU credit card - claims which Mr Thomson has denied.

The opposition has criticised the length of the ongoing investigation - which began in 2009 - accusing Fair Work investigators as either "administratively incompetent" or engaged in a "deliberate go-slow", according to Senator Abetz.

"This is three going on four years of inaction by Fair Work Australia," he said. "We will be looking for answers why this has taken longer than a Royal Commission."

The Opposition Leader, Tony Abbott, has vowed to pursue the Thomson affair in question time when Parliament resumes today.

Mr Thomson also believes the investigation has dragged on, saying last week that he is looking forward to being cleared of any wrongdoing.

"I've co-operated with Fair Work Australia," Mr Thomson said. "I spoke with them 18 months ago and I have done nothing wrong. We are looking forward to its conclusion.

"It's taken a long time and the sooner it is cleared up the better."

The opposition will attempt to uncover details of communications between the Prime Minister, Julia Gillard's office, her minister's offices and Fair Work Australia during the Senate estimates hearings.

Senator Abetz said a series of emails released under freedom of information laws revealing an email exchange between Rhys Davies, the press secretary of former workplace relations minister Chris Evans and the Fair Work Australia communications manager, Judy Hughes, would be of particular interest.

In the exchange of emails, Davies asked Ms Hughes if claims made by the Seven Network that Labor MP Craig Thomson lied to FWA were true.

In one of her replies, Ms Hughes sent Mr Davies a draft media statement issued to journalists that said there was no new inquiry into Mr Thomson.

Mr Davies replied, "Thanks that's awesome should minimise any run it gets in the morning."

The national secretary of the HSU, Kathy Jackson, called last week for an inquiry into the Fair Work investigation and raised the possibility of government interference into the process although she has not been able to provide evidence to support her claim.

"There needs to be a competent, external inquiry into the goings-on at Fair Work Australia," Ms Jackson said. "Why has it taken so long? Why are we still waiting for answers? And why are we in this position? We need this to end."

Allegations made by a former economist who worked for the union have since surfaced that claim Ms Jackson destroyed crucial documents that would have exonerated Mr Thomson.

Labor MP Deb O'Neal - who represents the Central Coast electorate of Robertson, next to Mr Thomson's seat of Dobell - said today that she was confident of retaining her seat at the next election despite the controversy swirling around her parliamentary colleague.

Former Fair Work Boss Before Senates Committee

Opposition leader Tony Abbott will today deliver his strongest attack yet against the Fair Work Australia investigation into allegations Labor MP Craig Thomson misused his former union credit card.

In Victoria this morning, during a speech to the Master Builders' Association, Mr Abbott will condemn the watchdog for the time its investigation has taken.

Mr Thomson is accused of using his Health Services Union credit card for personal gain, including for the services of prostitutes.

The Member for Dobell denies any wrongdoing and Prime Minister Julia Gillard is standing by him.

But the opposition leader insists the inquiry is taking too long and has raised the suggestion of government interference, which Ms Gillard refutes.

Mr Abbott will tell the business conference that Fair Work Australia should be eager to publish all correspondence between its investigators and the Government.

''As a former federal minister for over nine years, including three years as minister for employment and workplace relations, I do not lightly question the impartiality, competence and commitment to due process of federal agencies,'' he says.

''Hence the gravity of my concerns over the Craig Thomson investigation. For an organisation that administers an Act which aims to improve workplace productivity, Fair Work Australia's own productivity has to be questioned.''

Mr Abbott says Fair Work Australia should be eager to dispel the slightest perception of an institutional go-slow designed to protect a Labor government.

''Its investigation into Thomson is now into its fourth year: longer than the Wood royal commission, longer than the Fitzgerald inquiry, and much longer than the Cole royal commission into the building industry,'' he says.

''The Watergate investigators did their work in 18 months. The Empire State Building went from sod turning to completion in one year and 45 days. So what kind of operation is Fair Work Australia conducting here? Prime Minister Gillard promised that Fair Work Australia would be an independent umpire.''

Mr Abbott's speech this morning follows an attempt in Parliament yesterday to suspend standing orders and force Ms Gillard to give a full statement about the Thomson affair.

Shadow Minister Christopher Pyne led the Coalition charge against the Prime Minister in calling for the suspension.

But Leader of the House Anthony Albanese said Mr Abbott did not want to debate the motion himself because he knew it was a flawed argument.

''This is based on such a flimsy approach that he has not had the ticker to move it himself. He has had the manager of opposition business [Mr Pyne] stand up and do it for him,'' he said.

''The Prime Minister has been in here this week answering question after question about the economy, because that is what we are interested in on this side of the House.''

It was the second motion against the Government this week, the first week of Parliament for the year. The opposition failed to get the numbers on both counts.

Independent MP Andrew Wilkie voted with the government yesterday, but had voted with the opposition when it tried to suspend standing orders to force an explanation over the Australia Day tent embassy protest.

Abbott Lashes Watchdog Over Thomson

Police this morning raided the house of the man accused of providing secret commissions to the Health Services Union's former general secretary Craig Thomson and the union's head Michael Williamson.

Detectives from Strike Force Carnarvon executed a search warrant at the Palm Beach house of printer John Gilleland, 65, and his wife, Carron, shortly before 7am today.

Several hours later, police from the computer crime squad arrived to assist in the search of the Gillelands' house.

A Herald investigation last year revealed that Mr Williamson and Mr Thomson were provided with American Express cards by Mr Gilleland, who runs a graphic design and printing business.

The credit cards were issued in the names of Mr Thomson and Mr Williamson, but were attached to Mr Gilleland's account and the bills incurred on those cards were allegedly paid for by Mr Gilleland.

Last year, Mrs Gilleland complained to senior union officials that Mr Williamson had "run amok" with the credit card.

"He even paid his private school fees on it; this was not part of the deal," Mrs Gilleland was reported as saying.

Mr Gilleland's company, Communigraphix, which he runs from his two-storey house in Barrenjoey Road, receives $680,000 a year to produce 10 issues of the union's newsletter, the Health Standard.

Either offering or receiving a benefit as an inducement to act in a certain way in business dealings may constitute a criminal offence, which can attract penalties of up to seven years' imprisonment.

Mr Williamson, who is on paid leave from the union, and Mr Thomson, who became the federal member for Dobell in 2007, have denied any wrongdoing.

This morning's police raid is not the printer's first brush with the law.

In 1984, he and his brother, Ian, were arrested by federal police over their alleged role in using their printing company to produce counterfeit German currency.

The quality of the notes was so good that they were given a seven out of 10 rating by the Reserve Bank.

While John Gilleland was acquitted by a jury in 1986, at a subsequent trial, Ian was found guilty and sentenced to five years' jail.

Mr Thomson is subject of two other investigations being conducted by the Victorian Police and Fair Work Australia into allegations that he used his union-issued credit card to withdraw $100,000 in cash advances and to pay for prostitutes. This is a separate card to the one that was the subject of today's police raid.

Thomson Union Printer Raided Over Credit Card