THE federal government has agreed to pay some of the legal costs incurred by former Speaker Peter Slipper's defence of civil proceedings brought by his former staffer James Ashby.
Acting special minister of state Gary Gray says the funding will close an "insurance gap" which left Mr Slipper subject to legal costs resulting from the Federal Court action.
The gap arose because the proceedings began before management of liability insurance arrangements for federal MPs and senators took effect on July 1.
This meant Mr Slipper was unable to access the coverage.
"I have decided that it is appropriate to use the act of grace mechanism ... to cover this gap in insurance coverage," Mr Gray said in a statement on Friday.
This means the government will pay Mr Slipper's net legal costs from the Federal Court matter and the subsequent appeal.
Any payment will be net of amounts Mr Slipper recovers from other parties.
If Mr Slipper is able to recover indemnity costs against the other parties, the government may not have to pay anything at all.
Indemnity costs are usually awarded in cases involving misconduct, such as an abuse of process.
Mr Gray pointed to the judgment released in December by Justice Steven Rares in the original Federal Court hearing in Sydney.
Justice Rares said he was satisfied the proceedings - based around allegations of sexual harassment - "were an abuse of the process of the court".
"I have reached the firm conclusion that Mr Ashby's predominant purpose for bringing these proceedings was to pursue a political attack against Mr Slipper and not to vindicate any legal claim he may have," the judge said.
Mr Ashby's case was dismissed.
He is appealing the dismissal on several grounds, including that the judge erred in his findings.
Mr Ashby's solicitor, Michael Harmer, has also appealed claiming the judgment contained serious adverse finding impacting his professional reputation.
The appeal judgment will be handed down at a later date.
Mr Slipper resigned as Speaker of the House of Representatives after a series of lurid text messages between him and staffer Mr Ashby were made public through court documents.
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