Dyson Heydon will announce his future at the helm of the trade union royal commission on Friday, after facing calls to disqualify himself on the grounds of apprehended bias.
The decision will have political ramifications for Tony Abbott, the prime minister who set up the inquiry and has defended Heydon’s integrity, and Bill Shorten, the Labor leader who denounced the “political witch-hunt” and was called to give evidence in July about his time at the Australian Workers Union.
Heydon, a former high court judge, convened a hearing last Friday to hear applications from the Australian Council of Trade Unions (ACTU), the AWU and the CFMEU. The union representatives focused on Heydon’s initial willingness to speak at a Liberal party event, arguing it undermined his ability to be seen as impartial.
On Wednesday the royal commission confirmed Heydon would announce the decision on Friday at 10am. The decision would be webcast and the reasons for the decision would “be published online as soon as possible thereafter”.
Heydon had originally earmarked Tuesday to deliver his ruling but this was postponed because he was, the commission said, “taking the time required to consider his decision”.
Abbott has hinted that the government is prepared to consider appointing a replacement if Heydon – the sole commissioner – accepts requests from unions to recuse himself, saying that “regardless of what the royal commissioner ultimately decides, the royal commission must and will go on”.
Such a course of action could require the government to set up a new inquiry with a new commissioner or commissioners who would have to take into account previously tendered evidence.
Guardian Australia asked the commission whether Heydon had had any contact with government representatives ahead of the announcement of his decision, and whether he was intending to give them any advance notice of his decision.
A commission spokesman did not answer the questions directly but issued a general comment about making his own decision.
“The commissioner’s decision on the recusal application is a process independent of government representatives. There is no further comment,” he said.
The employment minister, Eric Abetz, said it was up to Heydon to make a decision. Asked whether the commission should continue if Heydon recuses himself, Abetz said: “Let’s see what happens, but we believe there is still very important work to be done in this space.”
The commission has been working to a December 2015 deadline for a final report to the government.
There are precedents for continuing a new form of an inquiry after the loss of a commissioner. In Queensland, a commission of inquiry into Bundaberg hospital was shut down in 2005 when the supreme court accepted applications from several hospital administrators that the commissioner, Tony Morris, had shown ostensible bias. The then premier, Peter Beattie, quickly set up a new inquiry into the state’s hospital system which was headed by Geoffrey Davies.
The fate of the royal commission into trade union governance and corruption hangs in the balance because of an outcry from Labor and unions after revelations Heydon initially accepted an invitation to be the keynote speaker at a Liberal party fundraiser, the Sir Garfield Barwick address.
Heydon pulled out of the event earlier this month. He said last week that he had “overlooked” the Liberal party connection when he was contacted by the organiser in March 2015.
He had also overlooked the fact his initial agreement in 2014 to speak at the event was conditional on the commission having completed its work, and had not read the attachments of a June 2015 email that contained an invitation and Liberal party donation information.
