^{(Confession is good for the soul - The Pope (in white hat) shakes hands with Ms Gillard)}

At the bottom of Page 5 of the transcript of her Slater and Gordon exit interview, Gillard makes a stunning and important observation - almost a confession -  about the Victorian based AWU Members Welfare Account:

that was the bank account which been operated by the Bob Smith team as its re-election fund, so it was the bank account into which payroll deductions had been paid by Bob Smith's supporting officials.  After the ruction that led to Bob Smith leaving, that bank account continued to be maintained as the re-election fund, it became the re-election fund for the Bruce Wilson team.

From June 1992 Bruce Wilson was continuously in Victoria first acting then confirmed in the State Secretary role.  Gillard herself refers to the mid-1992 ructions that led to Bob Smith leaving and confirms the timing of Wilson's arrival

PG - ....did you say mid 92 that he transferred to Melbourne?

JG     That's right.

In fact Wilson was in Melbourne in the Victorian State Secretary role before the 23 June 1992 incorporation of the Workplace Reform Association in WA.

Given Gillard and Wilson were an item it can't have escaped her attention that the WA leadership team had indeed fractured. That event should have led to the winding up of the association if Gillard's explanation of its purpose was true.

Having just gone through the months of hoops to get Wilson's reelection fund in WA set up as an incorporated association, she doesn't raise an eyebrow when Wilson moves to Melbourne and uses a run of the mill bank account just like everyone else.  And just like he was actually using in WA for his reelection fund.

The real significance of Gillard's revelation comes later in the exit interview.

Gillard claims to have no knowledge of whether or not the AWU Workplace Reform Association had bank accounts.  She claims to have no knowledge of its operation.  And by her own explanation, Wilson was no longer in WA operating a WA election fund by February 1993 at the very latest when Ralph Blewitt formally became WA Secretary.

With the Wilson team fractured the association she set up should have been wound up.

But in September 1995 she told Peter Gordon she couldn't categorically rule out that renovations to her home "weren't paid for by the union or by the Association or whatever".

She claims not to know whether the association had a bank account.  She claims not to know of its operations.  She states categorically that by early 1993 Wilson wasn't using it as his election fund - and thus it shouldn't been wound up.

But in September 1995  she can't rule out her renovations having been paid for from that particular slush fund.

That's because she knows they were.  Athol James confirmed Bruce as the source of the cash and he agreed it could only have come from one place.

And Gillard knew all about that.  Because she set the Association up for Bruce and Bill Ludwig, she fought for its incorporation and she received financial benefits from it.

Every touch leaves its trace.