https://www.afr.com/politics/federal/labor-scandal-spreads-to-nsw-20200619-p554a4Labor scandal spreads as NSW MP quits
Patrick Durkin, David Marin-Guzman and Tom McIlroy
Jun 19, 2020 – 4.17pm
More Labor scalps are set to fall after Victoria's industrial branch-stacking scandal spread to NSW, with Labor MP Julia Finn quitting the NSW shadow cabinet on Friday.
Federal Labor deputy leader Richard Marles called it a "horror week" for Labor but rallied behind under-siege fellow MP Anthony Byrne despite speculation the party could still cut Mr Byrne loose after the Eden-Monaro byelection.
The fallout from the scandal continues to widen as Victorian Labor Premier Daniel Andrews opened talks with trade unions to attempt to quash a revolt over the federal takeover of Victorian Labor.
NSW Labor leader Jodi McKay with Granville MP Julia Finn, who has quit shadow cabinet after being named in a branch stacking investigation. She resigned on Friday but maintained her innocence. AAP
In NSW, Ms Finn maintained her innocence but said she had informed Labor leader Jodi McKay she would stand aside as Labor's spokeswoman for carers and consumer protection, after being named in an internal investigation into branch stacking in western Sydney.
"I maintain my innocence of any wrongdoing," she said in a brief statement.
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The NSW investigation, led by former Queensland state secretary Evan Moorhead, found Ms Finn had breached party rules, but no adverse findings were made against her.
Ms McKay said seven people had been found charged with "unworthy conduct" and would face a NSW Labor Party tribunal.
The branch-stacking scandal exposed by The Age and 60 Minutes has already claimed the scalps of three Victorian government ministers, including dumped Labor minister and right-wing powerbroker Adem Somyurek,
It also triggered the federal takeover of Victoria Labor which unions are branding an "unprecedented power grab".
The Australian Financial Review can reveal that Mr Andrews is in talks with the powerful bloc of trade unions to ensure they are given a "seat at the table" for Labor's national conference to influence both the party's policy and power.
Premier of Victoria Daniel Andrews speaks to the media this week as the Labor crisis escalates. Darrian Trainor
The bloc – which includes union forces from both the left and right of the Labor union factions including the CFMEU, Health Workers Union, retail union, plumbers' union and Transport Workers Union – are threatening legal action in response to the federal takeover.
The bloc is seeking legal advice from Maurice Blackburn – the union law firm which has previously acted for expelled Labor member John Setka – although would be unlikely to act given Maurice Blackburn chairman Steve Bracks has been appointed the administrator for the takeover.
"We are law-abiding unions who don't branch stack and pay our fees, so a lot of people are peeed off about this unprecedented power grab," one union official from Labor's Industrial Left said.
Transport Minister Jacinta Allan told reporters on Friday: "That's a matter for them, that's a matter for those parties who are considering this."
Labor is also facing the threat of legal action from Mr Somyurek, who is vowing he is serious.
"I am very serious about taking the legal action in relation to the unlawful recordings," he texted the Financial Review.
Ms Allan said: "That's a matter for that individual who is no longer a member of the Labor Party. The actions of that individual speak for themselves."
Deputy Labor leader Richard Marles (here next to leader Anthony Albanese) is standing by Anthony Byrne. AAP
A deluge of leaked text messages from Mr Byrne about Labor heavyweights have been leaked to the media in the wake of the fallout, including former NSW senator Sam Dastyari, who was called a "crooked, corrupt f---".
"Albo has spoken with Anthony about that language. I'm not about to defend it," Mr Marles said. "I absolutely think that Anthony Byrne has a very important role to continue to play in politics."
Even Australia's Home Affairs Minister Peter Dutton threw his support behind Mr Byrne, who is considered a China hawk.
"I certainly like him and I think he's done a great job in the Intelligence Committee," he said.
Senior Labor sources played down speculation that forces were mobilising in Labor's Socialist Left faction to dump federal Victorian senator Kim Carr, who was elected in 1993 from Victoria and may be under threat in the Labor power shake-up.