Federal Labor Senator Doug Cameron is today expected to give evidence at a corruption inquiry into a mining licence issued by former New South Wales minister Ian Macdonald.

Yesterday the Independent Commission Against Corruption (ICAC) heard that Senator Cameron was against stripping Mr Macdonald of his preselection.

Labor's leader in the NSW upper house, Luke Foley, said Mr Macdonald then struck a deal to stay in office until 2009.

He said Mr Macdonald was known in the Labor party as an 'agent' of Eddie Obeid and had the nickname "Obeid's left testicle".

Mr Foley told the inquiry he had often received complaints from senior figures in the NSW Labor government about Mr Macdonald's conduct and that he had 'lost his moral compass'.

But the inquiry also heard Labor Senator Cameron voiced his opposition to stripping Mr Macdonald of his preselection at a 2006 meeting in a Chinese restaurant.

Mr Foley told the ICAC that Mr Macdonald also had the support of senior mining union officials.

The ICAC is investigating the Doyles Creek licence which Ian Macdonald awarded to former union boss John Maitland in 2008.

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