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Labor refers Liberal, National MPs to police in new rorting claim

The Labor Party has referred a number of Liberal and National Party MPs to Victoria Police for investigation, claiming they inappropriately used electorate office staff for political campaigning during normal business hours.

Deputy Premier James Merlino announced the move on Sunday night, as pressure builds on the Labor government to stand down MPs being investigated over the misuse of almost $400,000 of taxpayer funds before the 2014 election.

In a move dismissed by a Coalition spokesman as "laughably desperate", Mr Merlino said he had referred 18 members and former members of the Parliament of Victoria to police. They include shadow treasurer Michael O'Brien and shadow attorney-general John Pesutto.

He said the evidence provided to the police showed clear political campaigning by electorate office staff.

"I have also requested that Victoria Police investigate the leave status of ministerial staff employed by the former Napthine government during the 2014 Victorian election campaign," he said in a statement.

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"It’s clear that a significant number of ministerial advisors did not take leave during the caretaker period and instead worked at the direction of then Liberal Party state director, and now convicted criminal, Damien Mantach.

"This allowed the Liberal Party to access taxpayer-funded expenditure in the order of $2 million for the Liberals’ re-election campaign.

"The Liberal Party and National Party refused to have the behaviour of their own MPs investigated by the Ombudsman – they can no longer hide from that scrutiny."

Victoria Police confirmed it had received a letter from Mr Merlino requesting police investigate payment of government ministerial staff during the election campaign period of 2014.

"This complaint will be assessed in the usual manner by Crime Command," a spokeswoman said.

A Coalition spokesman called the letter laughable.

"This is a laughably desperate stunt from a desperate Premier who has six ministers under police investigation," the spokesman said.

Two politicians named, John Pesutto and Louise Staley, weren't MPs at the time alleged misconduct took place.

Meanwhile, Opposition Leader Matthew Guy stepped up the pressure on the Andrews government on Sunday, demanding that six Labor ministers named in the so-called "red shirts" rort abstain from cabinet meetings.

He said those named in a damning Ombudsman's report should stand down.

"That’s the only way Victorians can have full trust that there’s no conflict of interest occurring in closed-door meetings of the Victorian cabinet,” Mr Guy said.

On Friday, police announced they would reopen their probe into the Labor rorts, four months out from the November poll.

And the opposition on Friday infuriated the government by moving a motion calling on Premier Daniel Andrews to stand down ministers named in the report into Labor’s conduct in the 2014 election campaign.

Mr Guy said there would be further motions moved in Parliament, with just four sitting weeks remaining until Victorians go to the polls on November 24.

“The next four weeks will be quite willing. That’s because the Parliament can’t have trust in the integrity of the government.”

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On Saturday, Mr Andrews told reporters there was no need for ministers involved in the police investigation to stand down. The government also confirmed those ministers will continue to attend cabinet meetings.

In March, ombudsman Deborah Glass released a report that showed Labor had misused $388,000 in public funds by paying casual electorate officers for part-time political campaigning in breach of parliamentary rules.

Labor has repaid the money.