Kiwi-born MP accused of using credit card at brothel

Craig Thomson. Photo / Supplied

Australian Prime Minister Julia Gillard's razor-thin majority is in jeopardy as sex-spending allegations swirl around a New Zealand-born member of her government.

New South Wales police have received a complaint Labor MP Craig Thomson may have misused a union-supplied credit card when he was in charge of the Health Services Union. Police have also received a separate allegation in relation to the use of taxpayer funding for a community newsletter.

Thomson, who was born in Wellington, vehemently denies any offences.

The opposition Liberal Party is looking for a new candidate for the federal seat of Dobell as it tries to force out Thomson and spark a byelection.

Thomson has come under increased pressure over the spending allegations from his period as leader of the Health Services Union with claims the money was spent on prostitutes.

He has admitted authorising a $3077 charge to his credit card which was made to a brothel in April 2005.

"I didn't know it was an escort agency," he said.

Thomson said the union reached a settlement with another man which resulted in a payment being made on his card. He has yet to explain why mobile phone records show phone calls to Sydney escort agencies.

The shadow attorney-general George Brandis said he believed there were grounds for a criminal prosecution.

- Herald on Sunday/AAP