The head of the NSW Fraud Squad, Detective Superintendent Col Dyson said that Mr Thomson was arrested on Thursday because he refused an invitation before Christmas to surrender himself. Craig Thomson leaves Wyong Court. Credit:Mick Tsikas ''I believe that from reading the warrant he was invited to travel to Victoria to surrender himself prior to Christmas, he didn’t do that,'' Supt Dyson told reporters. Supt Dyson described Mr Thomson’s demeanor as calm: ''He’s accepted what’s been said to him, he hasn’t argued.'' Mr Thomson was bailed to appear before the Melbourne Magistrates Court on February 6.

"Every fibre of my being is screaming out to say how wrong this is," he said outside the Wyong Local Court. He said he would be "vigorously defending the charges". "As I have said from the start, I have done no wrongdoing," he said. The Victorian police have spent almost 18 months investigating claims that Mr Thomson improperly used Health Services Union funds to spend on prostitutes, air travel, entertainment and cash withdrawals in excess of $100,000. In October last year police raided Mr Thomson's Bateau Bay home as well as his electorate office.

They took away large boxes of material. Mr Thomson been ordered to advise police within 24 hours of a change of address or if he plans to travel interstate or overseas unless he is travelling to Canberra for his parliamentary duties. Another condition of bail prohibits him from contacting any person, directly or through a third party, whom he allegedly engaged for sexual services. Mr Thomson's lawyer, Chris McArdle slammed the process of the arrest and said his client would plead "not guilty" to all of the charges. Mr McArdle denied the NSW police account, saying Mr Thomson had only been invited to go to Victoria for an interview.



“It is untrue to say we were invited to go and surrender our client for arrest,” he told ABC TV. “If we had been given that invitation, we would have done so.”

Mr McArdle was scathing that there was a television camera crew outside Mr Thomson's house and office since 7am when Mr Thomson did not know of his arrest until 1pm. "He has been taken completely by surprise." He also questioned the number of police that came to arrest the independent MP. "It took five policemen to arrest him. [Mr Thomson] must be a karate expert and I didn't realise that," he said. Mr Thomson was national secretary of the HSU from 2002 until 2007 when he was elected to Parliament. Earlier last year he was suspended from the ALP and has been sitting as an independent in Parliament since that time. Mr Thomson, who has continued to maintain his innocence, is expected to apply for bail. He is also facing civil proceedings in the Federal Court of Australia relating to allegations that he improperly used union funds for his own benefit.

Arrest raises questions of 'judgment' for PM Opposition Leader Tony Abbott was alerted to the news about Mr Thomson during the question and answer session of his National Press Club address. "We have certainly respected, or tried to respect, the rule that you do not comment on the specifics of cases which are currently before the courts and we will respect that rule," Mr Abbott said. But the Opposition Leader said the matter raised questions about the judgment of Prime Minister Julia Gillard, who he claimed ran a "protection racket" for Mr Thomson. He said the opposition would continue to pursue those judgment questions.

Mr Thomson has been suspended from the Labor Party but it would be damaging for the federal government if charges are laid against him. Coalition workplace relations spokesman Eric Abetz has questioned whether Prime Minister Julia Gillard knew about Mr Thomson's arrest before she announced the election date yesterday. "[Ms Gillard might] like to tell us whether she had any pre-warning in relation to this arrest and her decision to call the election date yesterday," Mr Abetz said on ABC TV. He said that while it was important "we constrain our comments" while the matter was before the courts, it was right for the Coalition to pursue the question of the Prime Minister's judgment regarding Mr Thomson. "She has been acting as the chief defence counsel for Craig Thomson now for a number of years," he said.

While touring flood-affected Bundaberg, Ms Gillard said the matter was ''something for the police''. ''I’ve heard that there are media reports about this and I don’t know anything about it,'' she told reporters. ''I’ve been focused here on what’s happening in these communities.'' When asked if she had any prior knowledge about the arrest she said: ''Of course not.'' Thomson entitled to presumption of innocence

Trade Minister Craig Emerson would not be drawn on whether the independent MP should stand at the next election.

"Let the investigative processes continue without political interference," he told Sky News, adding that Mr Thomson was entitled to the presumption of innocence. "There has been no finding of guilt against Mr Thomson." Mr Thomson has strenuously denied allegations he misused union funds to pay for prostitutes, air travel, entertainment and cash withdrawals when he was the HSU national secretary from 2002 to 2007. He would be disqualified from Parliament if he was convicted of a criminal offence that carried a jail term of one year or more. Victorian police had not contacted him since they raided his home and electorate office on the NSW Central Coast in October last year.

HSU national president Chris Brown said that the union had received the news about Mr Thomson’s arrest on Thursday, “like everyone else." ''Given the investigation that has been under way for well over 12 months, it is probably not surprising that it has got to this stage,'' he told reporters on Thursday. ''Craig Thomson has always said he looked forward his day in court. Obviously he will have that opportunity now to try and clear his name. If not, and he’s convicted, for the HSU, it means that the people who have wronged the union will be brought to account. And we look forward to that.'' Mr Brown, who said he had not talked to Mr Thomson for eight or nine months, did not expect the process to be finalised before the end of the year. Loading

with Leesha McKenny, Daniel Hurst, Nick Ralston, Judith Ireland

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