AM - Friday, 27 March , 2009 08:00:00 Reporter: Hayden Cooper TONY EASTLEY: The career of the Defence Minister Joel Fitzgibbon has taken a direct hit overnight from friendly fire.



In an embarrassing about-turn the Minister has admitted that when he was in Opposition he accepted two trips to China, paid for by his long time close friend, wealthy Chinese businesswoman Helen Liu.



Earlier he declared to Parliament that he'd only received minor gifts from his friend of more than 16 years.



Last night the Opposition leader Malcolm Turnbull said Mr Fitzgibbon should be sacked. That hasn't happened but the Prime Minister didn't appear to fully endorse Mr Fitzgibbon in his position as Defence Minister when he spoke to reporters in Washington, and we'll have more on that shortly.



The issue of the minister's relationship with Miss Liu came to light after allegations emerged that Mr Fitzgibbon's own department had spied on the minister.



From Canberra, Hayden Cooper reports.



HAYDEN COOPER: It's a relationship that sparked the interest of staff at Defence headquarters.



But Joel Fitzgibbon has been resolute in defending his dealings with family friend and Chinese businesswoman Helen Liu.



JOEL FITZGIBBON: No-one has ever raised any concern with me about that relationship.



HAYDEN COOPER: In yesterday's quick-fire media doorstop the minister was questioned directly on what gifts he'd received.



REPORTER: Have any of your trips to Beijing been paid by Miss Liu or any of her companies?



JOEL FITZGIBBON: I've said on a number of occasions I've had a close personal relationship for the Lius and the family for some 16 years now, and over that period of time there has been an exchange of a number of small gifts for example, on birthdays etc.



No-one has ever raised concern...



(Sound of reporter's muffled question)



No, very small gifts.



HAYDEN COOPER: But last night, a statement from the Defence Minister revealed he had misspoken.



In 2002 and again in 2005 Mr Fitzgibbon went to China, paid for by Helen Liu. Neither trip was declared to Parliament. He was also given a suit, but says that was later returned.



The minister says his failure to disclose the two trips was a mistake for which he apologises.



MALCOLM TURNBULL: Mr Fitzgibbon is a stumbler and a bungler.



HAYDEN COOPER: The Opposition Leader Malcolm Turnbull wants much more than an apology.



MALCOLM TURNBULL: This has now become a question of leadership for Mr Rudd. He has a Defence Minister that has stumbled and bungled through one embarrassing episode after another.



He's failed to pay our SAS appropriately and has not been able to provide a satisfactory explanation for the pay bungle. He has now clearly lost the confidence of his own department. And now we see he's failed to disclose very relevant gifts from a business associate in the public register.



The real question now is for Mr Rudd: Is he going to take his responsibilities as Prime Minister seriously? Is he going to leave in place a Defence Minister that has lost the confidence of the defence forces, the Defence Department and the public?



Mr Rudd must act. He must remove Joel Fitzgibbon from this position and put somebody in his place who can command confidence from the defence forces, the department and the people of Australia.



HAYDEN COOPER: Should the minister provide more information about the purpose of these trips to China?



MALCOLM TURNBULL: The minister should make a full disclosure. The only way to deal with concerns of this kind is complete accountability and transparency.



Now how can we have any confidence that we have a full disclosure from the minister when yesterday morning he said he'd made a full disclosure; by the afternoon we discover there were a number of trips that had not been disclosed? Who's to say there aren't more yet undisclosed?



Joel Fitzgibbon has stumbled and bungled through one embarrassing episode after another. It is time for the Prime Minister to lead, to take responsibility and ensure we have a Minister for Defence who has the confidence of the defence forces, the Defence Department and the people of Australia - and that is not Joel Fitzgibbon.



TONY EASTLEY: The Opposition leader Malcolm Turnbull ending Hayden Cooper's report.