Labor pounce on second staffer conflict

Federal Minister Nigel Scullion is under fire over a staff member cited for conflict of interest. Source: AAP

LABOR has vowed to continue probing a second Abbott government minister over conflict of interest allegations.

William "Smiley" Johnstone resigned as an adviser for Indigenous Affairs Minister Nigel Scullion after it was revealed he was also chief executive and majority shareholder of the Indigenous Development Corporation.

Senator Scullion has defended Mr Johnstone's employment, saying his sole role of devising the school attendance strategy meant his private activities did not create a conflict of interest.

But Opposition Senate Leader Penny Wong says Mr Johnstone's employment showed an "arrogant disregard" for the standards for ministerial staff.

Senator Scullion told the Senate on Thursday there had been "a couple of items that required follow up" in Mr Johnstone's private interests disclosure, filed at the time of his employment.

Five months later, that process was still under way when a media inquiry forced Senator Scullion's office to address the potential conflicts and ask Mr Johnstone to "amend some of his personal affairs".

Mr Johnstone never intended to stay on fulltime and chose to resign, Senator Scullion said.

Senator Wong promised to explore that in more detail.

"The Australian people are entitled to know why not one but two ministers in this chamber happen to have staff who have interest in the portfolio that they administer."

In February, Assistant Health Minister Fiona Nash's staffer Alastair Furnival resigned over conflict of interest allegations.

Mr Furnival had a shareholding in his wife's public relations company, which has links to the junk food industry.

Unlike the case of Mr Furnival, who was accused of ordering the removal of a Health Department healthy food-rating website, there are no allegations Mr Johnstone made calls that affected his private interests.

The Abbott government's revised guidelines for ministerial staffers require divestment from private companies with a direct interest in their minister's portfolio.

The standards also forbid directorship of any company without written agreement of their respective minister and of the Special Minister of State.

Senator Wong asked Special Minister of State Michael Ronaldson if he had provided a written agreement regarding Mr Johnstone's employment on Thursday, which he took on notice.

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