In his letter, Mr Bowen said ­Professor Harper's involvement in Liberal Party fund-raising events "raises at the very least, clear perception issues around the independence of the government's policy review". "It also raises concerns around the effective politicisation of access to the chair of a government review. "If . . . ­Professor Harper is involved as a ­drawcard in this Liberal Party fund-raising event, I believe it to be an error of judgment on your part." Initially, Professor Harper refused to stand aside, saying the event would help with his review. "We're in listening mode and I'm happy to listen to everybody,'' he told The Australian Financial Review.

"I'm happy to hear what people have to say, including supporters of the ­Liberal Party.'' But later on, he withdrew, telling Mr Bowen he was invited to attend the function before being appointed to the review panel. "This is an independent panel and the independence of both the panel and the review is of the highest importance to me,'' he said. "I have this afternoon informed the organisers of my decision to withdraw from the event in the interests of preserving the independence of the Competition Policy Review and the Panel." By the time Professor Harper withdrew, Mr Hockey has written to Mr Bowen, saying he had no involvement with the organisation of the event and any involvement Professor Harper had was a matter between him and the forum. However, he defended Professor Harper's integrity. "I note that Professor Ian Harper is an eminent Australian who has served governments of both political persuasions for a number of decades,'' he said.

"In my experience, Professor Harper has served with distinction and without partisanship in his various government roles." There was unexpected criticism of the growing practice of both major ­parties in which business pays for privileged access to senior politicians when the chief executive of the Business Council of Australia, Jennifer Westacott, condemned it on Wednesday. "This idea of getting money for a meeting, I think erodes public ­confidence in political institutions,'' Ms Westacott said. This week, Fairfax Media reported that one example was the North Sydney Forum, the fund-raising arm in Mr Hockey's electorate, which was charging thousands for exclusive access to Mr Hockey in return for political ­donations paid as membership fees. Loading

The details of who has access are not released. Mr Hockey slammed as "repugnant'' any suggestion he was engaging in anything improper and called in his lawyers. Read more at AFR.com