Parliamentary Updates

20 August 2024

I rise in this consideration in detail stage to, in particular, support the amendment moved by the member for Wentworth. It is an important one to recognise that any members appointed by the administrator need to be meet a fit-and-proper-character test. I think that it is incredibly important in the circumstances of why we are here with legislation. The allegations of criminality of the CFMEU in recent times have been deeply troubling and have been going on for quite some time. The Construction, Forestry and Maritime Employees Union, or CFMEU, is one of the biggest and most influential unions in Australia, but, when this union is in the news, it is far too often for the wrong reasons. Allegations of intimidation tactics, shutting down work at multiple infrastructure projects, bullying, harassment, intimidation, even leading figures within the union being accused of domestic violence and now these current allegations in relation to organised crime links—these are all particularly troubling. There are now also allegations of outlaw motorcycle gang members acting as delegates and being involved in government funded projects, including the $100 billion Big Build Victorian infrastructure plan. These are all incredibly concerning. The alleged criminality is almost certainly ensuring costs escalate on projects. That is particularly concerning in this environment of high inflation.

The consequences are very real: a less-productive economy, slower construction time and cost blowouts. Since 1982, no fewer than four royal commissions have investigated at least some part of the construction sector, so this bill is the start of a process to clean up a union that for far too long has operated effectively without accountability. It means the CFMEU will be forced to accept an administrator. The administration period can last up to five years and will need the recommendation of the administrator to end it. It is definitely the time to act, and I certainly welcome the action of the government. It's a good first step, but we do need to replace the ABCC.

Whilst that body didn't work as intended, it is clear there must be some sort of monitoring body for the building and construction sector. There needs to be some version of an oversight committee, and industry reps are putting forward investigations. It will need to have clear parameters and investigative powers, including criminal prosecution. It remains to be seen how effective administration will be, so we must remain vigilant. It remains to be seen if the administration process will be enough to clean the house and clear out all those elements of the CFMEU after a pretty diabolical history. I note that I had discussions with the minister about an amendment to improve this legislation as the bill commenced in the other place. It was handed to Senator Pocock and successfully adopted, so I thank the government and Senator Pocock for considering that aspect, which was that the minister must follow the administrator's advice about whether to place the union into or out of administration. It does ensure some protection from the decisions being overly politicised; they will instead be on the advice of the administrator.

I support this bill and I support the amendment moved by the member for Wentworth. I think this is very important. I thank the government for their positive engagement, but I do urge the government to do more, especially in considering what oversight body will need to be put in place to ensure the criminality that we've seen in this sector can never happen again.