Hodson death theory rests on dead gangland figure Carl Williams

The Victorian coroner must consider the reliability of what late crime boss Carl Williams told police about the 2004 murders of police informant Terence Hodson and his wife, an inquest has heard.

The theory that detective Paul Dale ordered Williams to arrange the killing of Mr Hodson rested on statements Williams made to police, counsel assisting Christopher Winneke told the inquest into the deaths.

Mr Hodson and his wife, Christine, were found shot dead at the rear of their Kew home in May 2004, months before he was due to give evidence against Mr Dale and detective David Miechel over a burglary at a drug stash house.

Williams told police Mr Dale asked him to kill Mr Hodson for $150,000 and he then contracted Rodney Collins to carry out the killing, Mr Winneke told the inquest on today.

Williams was trying to arrange a deal for himself and others at the time, Mr Winneke said.

"He wanted to do the best for himself," he said.

Mr Dale and Collins were charged with murder in 2009 but the charges were dropped the following year when Williams was killed in prison.

Both Mr Dale and Collins, a convicted hitman, have denied involvement in the shootings.

Mr Winneke told the inquest that because Williams was seen as an unreliable witness, a significant amount of effort went into corroborating what he said, in particular his statement that he met with Dale at Hillside on May 6 when Mr Dale allegedly asked him to kill Mr Hodson.

"A significant amount of what Williams did say was corroborated," Mr Winneke said.

Collins and Williams were in contact and met following the Hillside meeting between Mr Dale and Williams. However, it appeared it was Collins seeking a meeting with Williams, Mr Winneke said.

"It doesn't therefore necessarily follow that Williams sought out Collins as a result of a conversation with Dale," Mr Winneke told the Victorian Coroners Court.

Collins is serving a prison sentence for an unrelated double murder.

Mr Winneke said there was clear evidence other people had a motive to kill Mr Hodson, including drug kingpin Tony Mokbel.

"There was evidence that suggested other people, including Tony Mokbel, had a motivation to kill Hodson," Mr Winneke said.