Jacinta Allan has admitted that criminals have infiltrated some of Victoria’s largest construction projects – but has again rejected growing calls for a royal commission into alleged corruption involving unions and labour hire companies.
In an opinion piece published in the Age on Thursday night, the premier wrote that “we now know that criminals operated on some of Victoria’s construction sites” during projects dubbed by the Labor government as the Big Build.
“There was violence, intimidation and organised criminal behaviour. That is shocking and unacceptable. It should never have happened,” Allan said.
“It does not represent the overwhelming majority of decent, dedicated, proud union workers on these projects. But it still happened. I accept that.
“I’m deeply sorry that it happened on projects funded by the Victorian people. Now the question is how we stop it happening again.”
But Allan wrote that a royal commission into the rorts would not solve the issue, despite repeated calls to hold one – including by Geoffrey Watson SC, who was appointed by the CFMEU’s administrator to investigate allegations of corruption and criminal offences within the union, and former Victorian ombudsman Deborah Glass.
“Australia held a royal commission into trade unions in the last decade,” Allan wrote. “It cost $46 million, went after workers, achieved only one criminal conviction, and didn’t change the culture.
“If the goal is another report, another royal commission will deliver one. If the goal is changing behaviour on worksites, changing the culture is the answer.”
Her piece was published after allegations were made that money from the Big Build was being paid to gangland figures and that the government was warned about cost blowouts due to CFMEU demands.
While her op-ed acknowledged there had been criminality, Allan did not address claims – also published in the Age this week – about her time as transport infrastructure minister.
It was reported that state government officials told a rail consortium that the then minster wanted it to cut a deal with the CFMEU over a level crossing removal project. This reportedly resulted in the union forcing its preferred labour hire company on to a level crossing removal site.
It was separately claimed that ministerial pressure was applied from Allan’s office in a 2022 dispute between the CFMEU and a rail infrastructure partnership that involved large contractors and government agencies.
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In her piece, Allan said it was best for police to investigate any allegations of wrongdoing.
“We gave Victoria Police stronger powers to investigate this criminal conduct. They have now laid more than 90 criminal charges,” she wrote.
“We gave the Labour Hire Authority stronger powers to cancel construction licences. It has done so for 164 firms. The CFMEU was put into administration, and I kicked them out of the Victorian Labor Party.
“Construction companies working on government projects are now required to report suspected criminal behaviour, workers have stronger whistleblower protections, and state agencies share intelligence with the federal government so nothing falls between the cracks.”
Jess Wilson, the state opposition leader, also wrote in an Age opinion piece published on Thursday night that a royal commission was needed to expose how $15bn “of Victorians’ money has been rorted” and “to ensure it never happens again”.
“Labor’s Big Build has become a hunting ground for organised crime, standover men, and corrupt union bosses,” she wrote.
