Master Builders NSW is calling on the Australian Government to establish a federal Royal Commission into the CFMEU and broader allegations of misconduct, corruption and criminal behaviour in the construction industry.
The call follows a rolling series of scandals brought to light by the Queensland Commission of Inquiry and media investigations that have exposed allegations of the union’s corrupt and criminal conduct in Victoria, undermining confidence in the rule of law, fair competition for government funded projects and inflated prices paid by taxpayers for infrastructure including schools and hospitals.
Mathew Pollock, Chief Executive of Master Builders NSW said, “the scale and seriousness of the allegations warranted the highest level of independent scrutiny with the necessary powers to get to the root cause of alleged corruption and criminality.”
“For more than a decade, Australia's construction industry has paid a heavy price for a culture of unlawful conduct, intimidation and corruption associated with elements of the CFMEU. The cost has not simply been borne by builders and contractors—it has been borne by every Australian taxpayer.
“Setka style union deals have cost the country more than $500 billion in lost productivity. For that money we could have high speed rail along the east coast, fund Snowy Hydro 2.0 or build more than a million new homes,
“Recent reports that industry figures have suffered death threats, mental health crises and suicide attempts would not have come to light without the Queensland judicial inquiry. It is merely the tip of the iceberg and enough is enough,
“Australia ultimately needs a strong, independent construction industry regulator with the powers and resources necessary to uphold the rule of law and ensure compliance across the sector. But before we determine what that regulator should look like, we must first understand precisely what went wrong.
“Royal Commissions have previously been called by Federal Governments when substantial evidence emerges of damaging behaviour outside of community standards. They provide the powers, transparency and independence necessary to examine the full extent of these issues and make recommendations to restore public confidence,
“While the Federal Government’s placement of the CFMEU into administration was a necessary first step it cannot provide a complete solution. The Administrator has removed some of the union’s most notorious officials and brought a measure of stability to an organisation facing serious allegations, but it lacks the broad investigative powers available to a Royal Commission. Nor does the administration process have a mandate to fully examine how criminal activity, corruption, bullying and intimidation were permitted to flourish over such a long period.
“The construction industry is a pillar of the Australian economy and is facing significant challenges, including labour shortages, rising costs and the urgent need to increase housing supply. Taxpayers cannot afford to have misconduct and unlawful behaviour driving up costs, delaying projects and undermining confidence in the industry,
“A federal Royal Commission would help ensure the construction industry remains focused on delivering homes, infrastructure and jobs while upholding the highest standards of integrity.”
“We call on the Federal Government to act swiftly and establish a federal Royal Commission with broad terms of reference and the resources necessary to conduct a comprehensive examination of the CFMEU, corruption, criminality and misconduct in the industry,”
Media contact: Ben Carter | Head of Government Relations, Marketing & Corporate Affairs | 0447 775 507 | bcarter@mbansw.asn.au