In relation to a controversial deal between Thiess John Holland and the AWU over the Eastlink project, Mr Stoljar said the commission should find there was an agreement that the joint venture pay $100,000 plus GST to the union each year for the duration of the project.

He said the genesis of the agreement was a proposal by Mr Shorten to Stephen Sasse in late 2004 that the joint venture provide financial support to the AWU in relation to the dedication of an organiser or organisers to the project.

He said the proposal was not the subject of a concluded agreement at the time the contract was let and Mr Rzesniowiecki and Mr Melhem assumed primary conduct of the negotiations.

 ''At some point, most likely shortly after the 2005 EBA was finalised, Julian Rzesniowiecki and Cesar Melhem agreed on a sum of $100,000 per year,'' he said.

''Shortly thereafter, Julian Rzesniowiecki and Cesar Melhem determined that the payments pursuant to the agreement would be effected by the AWU issuing invoices to TJH described as services that the AWU might provide to the joint venture.

''The commissioner should find that an agreement in these terms was implemented by payment of invoices issued by the AWU, many of which were false invoices.''

Mr Stoljar said Mr Shorten did not deny discussions regarding the arrangement, but said he did not recall any such discussion.

"Mr Shorten says that there were discussions during the course of negotiations with Mr Sasse about dedicating organisers to the site and providing various services,'' he said.

''Thirdly, Mr Shorten's understanding of the benefits of the above exercise was that it would play a role in achieving industrial stability on a site that might otherwise be at risk of problems caused by more militant unions.''