Gillard's ex on the AWU slush-fund

Former boyfriend of Prime Minister Julia Gillard, Bruce Wilson. Picture: Robert Mckell Source: The Daily Telegraph

PRIME Minister Julia Gillard advised how to fill out forms for the incorporation of a union association differently after it was first knocked back for registration, her former boyfriend last night claimed.

The association Ms Gillard later described as a "slush fund" was successfully incorporated after the forms were changed, Bruce Wilson said after blaming a technical issue for registration failure.

"I went to her and said `look can you fix it whatever it is that needs to be fixed.' It wasn't a big issue, it wasn't like oh jeez, let's call in half the Slater and Gordon crew it was a simple matter that needed to be done, she did it, end of story," he told the ABC's 7.30.

"Simply there was some forms that needed to be filled out in a different manner. It was a bit like going and asking for example this form didn't look right...what do we need to do. She made the necessary changes, I told her Ralph was going to then re lodge the forms and she said if that's the case I better fill this out.

"That is where everybody makes a fuss now because she has got handwriting on the form. It is not a real big deal to be honest with you."

Ms Gillard only wrote on the front page the words Australian Workers Union - Workplace Reform Association, Mr Wilson said.

In a bizarre revelation, Mr Wilson claimed former union bagman Ralph Blewitt, with whom Mr Wilson established the association, had taken money from it and buried wads of cash in his backyard.

"I know this sounds crazy but he had been packaging it up and burying it in his backyard, of all things," Mr Wilson claimed.

"I said he better dig it up and get it back into the bank. He showed me a package of money that had been destroyed, it had been in his garden or some such thing and got moist."

Mr Wilson, who did not go to the police over the backyard cash burial, said he felt sorry for his former partner and claimed renewed scrutiny of the association which he said had seven or eight objectives, including the election of union officials, was politically motivated.

A home in Fitzroy bought in Mr Blewitt's name was purchased with $100,000 from the Association but he said it was not wrong and the money had not come from the union members.

He also said that while he didn't recall giving a union employee $5000 to put in Ms Gillard's account, he said he may have.

"Did I ask Wayne Hem to do that? Perhaps, specifically can I recall it? No I can't," he said.

"The only thing that may have happened and I am not saying it did or it didn't, I simply don't recall is the $5000. Wayne was a nice enough guy, I have no reason to be at odds with him if he said that happened then perhaps it did. I just don't recall it."

He denied giving any money from the association to Ms Gillard.

It came after Ms Gillard's former law firm Slater and Gordon released a statement detailing why it hadn't told police or the AWU about claims of misconduct involving Mr Wilson which emerged in 1995.

Slater and Gordon also revealed that in the wake of the affair it had to drop the AWU as a client to avoid a conflict.

Legal advice obtained by the firm confirmed disclosure of information "to the union would have represented a conflict between the interests of the union and the interests of the official.

"Slater and Gordon ceased acting for both clients after it became aware of this conflict situation."

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