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The federal government says it will seek to continue the royal commission into trade unions in the event the former High Court judge overseeing the inquiry, Dyson Heydon, stands aside after Fairfax Media revealed he planned to address a Liberal fundraiser.
And federal Opposition Leader Bill Shorten, who was hauled before the inquiry in July, says he will continue to co-operate with the royal commission, if a new royal commissioner is appointed.
The ACTU is applying for Mr Heydon to disqualify himself, claiming he is biased and cannot continue overseeing an investigation into the Liberal party's political opponents. Mr Heydon is due to rule on his own impartiality on Friday. Unions are leaving open the option of appealing any of the royal commission's findings in the High Court.
Cabinet minister Scott Morrison said on Thursday he doubted Mr Heydon would be "intimidated" or "bullied" into standing aside.
"That's what the royal commission is all about, just looking at the way that unions have frankly intimidated Australians, intimidated employers and now they want to intimidate a former High Court justice and drive him from his position," he said.
"The government's not going to be intimidated by union bullies, I don't believe that a former High Court justice is going to be intimidated by that sort of nonsense from the Labor Party."
Earlier on Thursday, Workplace Minister Eric Abetz said that the government would continue the inquiry into unions even if Mr Heydon stood down.
"My view would be that this is such important work, we have had you know four arrests already of people involved with the union movement, the commission suggesting charges against a range of other people, the Labor whip in the upper house in Victoria having to resign his position," Senator Abetz told Sydney radio 2UE.
"I would be asking my colleagues that we should continue it, of course it would be a matter for cabinet."
Mr Shorten, who has been quizzed in the royal commission over his time with the Australian Workers Union, said on Thursday he will continue to co-operate with the inquiry if a new royal commissioner is appointed.
"The key issue here is the captain's pick, the royal commissioner, and Tony Abbott," he said.
"If they find another royal commissioner, so be it."
He continued to attack the Prime Minister's judgment in personally selecting Mr Heydon to oversee the royal commission.
"I think Mr Abbott should stop leaving his captain's pick out there to do the political battering for Mr Abbott's agenda. I think Mr Abbott should step up and show some leadership," he said.
Mr Shorten, once a friend of disgraced unionist Kathy Jackson, also targeted Mr Abbott who in the past has described her as a "hero".
"How is it that Tony Abbott, who doesn't like very many people who are trade unionists, has managed to pick someone who's perpetrated and now has to repay $1.4 million back to their union. Mr Abbott's judgment is very, very bad," he said.
