Victorian Health Infrastructure Minister Melissa Horne has publicly broken ranks with Premier Jacinta Allan over allegations of improper government interference on a hospital project, describing the claims as 'alarming' and demanding assurances from the state's infrastructure authority.
In a letter to the head of the Victorian Infrastructure Delivery Authority (VIDA), Horne expressed deep concern about reports published by Nine newspapers alleging that government officials pressured public servants to dismiss a plastering contractor from the Royal Victorian Eye and Ear Hospital project due to disapproval by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU).
Minister's Response and Assurances Sought
Horne shared her letter on Facebook, stating she sought assurances from VIDA in response to 'extremely serious allegations.' She wrote: 'These allegations of interference are deeply concerning and neither I, nor my office, have had any contact with the CFMEU whilst I have been the minister responsible for health infrastructure.'
The minister noted the project was completed before her appointment and that she was not the relevant minister at the time of the alleged events. She requested confirmation that VIDA Health, as successor to the Victorian Health Building Authority (VHBA), has not directed the removal of contractors or subcontractors on health infrastructure projects except when legally permitted.
Premier's Position Contradicted
Earlier on Tuesday, Premier Jacinta Allan dismissed the Nine newspaper report, stating it had 'no basis' and that there was 'no evidence or basis for that claim.' Allan said she had received advice that a dispute existed between the head contractor and subcontractor on the hospital project, which did not involve the government and was resolved through mediation resulting in the parties 'parting ways.'
Horne's public intervention signals fractures within the Victorian government over handling corruption allegations on infrastructure projects, less than five months before the state election scheduled for November. The premier continues to resist calls for a royal commission into corruption on government building projects, arguing it is not the most effective way to create cultural change.
Broader Context of Construction Sector Oversight
Horne's letter highlighted that the Allan government has already taken steps to protect infrastructure projects from illegal conduct, including bolstered powers for the Labour Hire Authority and the launch of a dedicated complaints body and police taskforce. She requested advice on 'further steps' to strengthen oversight of subcontractors, including additional checks prior to appointments.
The Nine newspaper report quoted former VHBA executive director Stephen King, who alleged he was pressured to sack the plastering contractor for the Royal Victorian Eye and Ear Hospital, completed in 2024. The contractor was reportedly in a dispute with the CFMEU at the time.
Leaders of the police taskforce established to tackle corruption on the 'Big Build' have told Nine Newspapers they lack the power to effectively investigate many allegations involving the construction sector, as some alleged wrongdoing is not a crime. They also cited difficulty finding witnesses due to fears of retaliation for cooperating with law enforcement.
