Royal commission probes Victorian construction sector amid allegations of union influence and labour hire practices
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A Victorian royal commission has begun public hearings into alleged corruption in the state’s building industry, examining the role of the CFMEU, labour hire firms and former transport minister Jacinta Allan.
The first day of public hearings for a Victorian royal commission into alleged corruption in the building sector commenced in Melbourne, with commissioner Christopher Kourakis outlining procedures before counsel assisting Chris Young KC opened the session. The inquiry will scrutinise the Gap Road project, a former level-crossing removal that was delivered through a partnership known as the Rail Network Alliance rather than the state’s usual team.
Young presented a briefing note for then-transport and infrastructure minister Jacinta Allan, highlighting several themes that emerged from written submissions. These include concerns that safety and entry powers were used as industrial leverage, that labour-hire arrangements may have facilitated the placement of non-working health-and-safety representatives, and that the defunding and abolition of the Australian Building and Construction Commission coincided with increased site stoppages.
The commission sent requests to 99 companies, organisations and other entities for voluntary submissions on any corruption, criminal conduct or serious misconduct. Forty-five responded, three declined and the remainder have not yet replied. Submissions have ranged from detailed accounts of alleged organised-crime involvement and fraudulent invoicing to statements the commission considers unsubstantiated.
Young noted that more than 20 witnesses have been compelled to testify and that the commission possesses powers to compel documents. He warned that intimidation of witnesses is a serious criminal offence and that any threats will be referred to Victoria Police.
Among the issues under review is the alleged pressure exerted by Allan’s office, when she was transport minister, on the consortium delivering Gap Road to engage with the CFMEU. A source claimed the minister’s office asked whether the union could be involved, leading to a meeting with union leader Joe Myles and a subsequent deal that used a labour-hire firm favoured by the union.
The inquiry has already gathered extensive material, receiving 28 public submissions, holding 24 hearings, issuing 121 notices to produce documents, receiving 51 enquiries and collecting 110,688 documents. Recommendations under consideration include licensing of the industry or labour-hire firms, a “fit and proper person” test for industrial and safety roles, and the establishment of a dedicated regulator.