Paterson MP Meryl Swanson has defended herself against claims she failed to declare a conflict of interest during a Labor party-room debate over JobKeeper subsidies, describing the caucus leak as "deeply troubling".
Sydney media reported on Wednesday that Ms Swanson, the shadow assistant minister for defence, had argued in caucus that the party should stop criticising Harvey Norman for not paying back $22 million in JobKeeper money.
"We sound like we are whingeing, and people don't like it," Ms Swanson reportedly told party colleagues.
Ms Swanson's parliamentary register of interests shows she owns shares in Harvey Norman and her husband, Nick, owns a Harvey Norman store in Maitland.
An unnamed Labor source told the Sydney Morning Herald that Ms Swanson should have declared those interests to the party room.
Ms Swanson told the Newcastle Herald on Wednesday that her husband "like most Harvey Norman franchisees" had not received money under the JobKeeper scheme.
"I think it's deeply troubling that concerns raised in a closed party room are being leaked out, but that's an issue for the leader to address," she said.
"I raised concerns that we are confusing small business owners with the commercial interests of a private individual."
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She was not a "direct shareholder" in Harvey Norman, but she and her husband had a joint, self-managed superannuation fund which had shares in the retailer bought more than 20 years ago.
Harvey Norman owner Gerry Harvey has faced criticism for declining to hand back JobKeeper subsidies, despite the company's profits rising during 2020.
Ms Swanson, an ally of Hunter MP Joel Fitzgibbon on the Labor right, also reportedly told caucus that the party risked "sleepwalking off a cliff" because it was not connecting with voters.
She and Mr Fitzgibbon have said the party's dismal performance in last weekend's Upper Hunter state by-election showed it was not sending the right message on energy policy.
Paterson and Hunter are on a list of seats the Coalition will target during the looming federal election.
"It is really difficult to cut through. We need to attack harder now," Ms Swanson told the ABC in reference to how the party should be more critical of Scott Morrison and his government.
Labor's drubbing in the polls has led to NSW MPs Chris Minns and Walt Secord quitting the shadow ministry over claims a staffer for deputy leader and Swansea MP Yasmin Catley leaked a dirt file on Mr Minns.
