Labor has pledged to establish an inquiry into Australia's bugging of the East Timor government during oil and gas resource negotiations culminating in the prosecution of a whistleblower and his lawyer.
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The opposition's Senate business leader Katy Gallagher has also demanded Attorney-General Michaelia Cash explain the ongoing case against Canberra lawyer Bernard Collaery.
Labor's motion requiring the attorney-general to provide the chamber with an explanation before the end of the month was effectively defeated on Thursday with a tied vote.
"In government, we will ensure an inquiry into the circumstances of the intelligence operation conducted by the Australian Secret Intelligence Service in Timor-Leste and the subsequent decision to prosecute Witness K and his lawyer, Mr Bernard Collaery," Senator Gallagher earlier said.
"Further, Labor calls on the attorney-general to provide an explanation to the Senate of the public interest in continuing to prosecute Mr Collaery."
Crossbencher Rex Patrick wanted parliament's legal committee to examine the circumstances of the prosecution.
Senator Gallagher disagreed and instead flagged a Labor government would change the law so ASIS operations could be referred to the Inspector-General of Intelligence and Security for inquiry.
Witness K was in June was spared jail. The former ASIS officer instead received a three-month suspended sentence after admitting to conspiring to reveal classified information.
It related to Australia's bugging of the East Timorese cabinet room in 2004 as the two countries negotiated a carve up of oil and gas reserves.
Collaery is continuing to fight allegations he unlawfully shared classified information about the operation.
Australian Associated Press