Victorian Premier Jacinta Allan has acknowledged that criminals infiltrated some of the state's largest construction projects under the Big Build initiative, but she firmly rejected growing demands for a royal commission into alleged corruption involving unions and labour hire companies.
In an opinion piece published in The Age on Thursday night, Allan 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. She admitted there was "violence, intimidation and organised criminal behaviour" on these sites, which she described as "shocking and unacceptable."
Premier Apologises, But Says Royal Commission Not the Answer
Allan apologised for the criminal activity, stating, "I'm deeply sorry that it happened on projects funded by the Victorian people." However, she argued that a royal commission would not solve the issue, despite repeated calls from figures such as Geoffrey Watson SC, appointed by the CFMEU's administrator to investigate corruption, 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." She emphasised that changing behaviour on worksites requires cultural change, not another report.
Allegations of Gangland Payments and Ministerial Pressure
Allan's op-ed came after allegations that money from the Big Build was paid to gangland figures and that the government was warned about cost blowouts due to CFMEU demands. Reports also claimed that during her time as transport infrastructure minister, state government officials told a rail consortium that Allan wanted it to cut a deal with the CFMEU over a level crossing removal project, leading to the union forcing its preferred labour hire company onto the site.
Separately, it was alleged that ministerial pressure was applied from Allan's office in a 2022 dispute between the CFMEU and a rail infrastructure partnership involving large contractors and government agencies.
Government Actions and Opposition Response
Allan highlighted actions taken by her government, including giving Victoria Police stronger powers to investigate criminal conduct, resulting in more than 90 criminal charges. The Labour Hire Authority has cancelled licences for 164 firms, the CFMEU was placed into administration, and the union was expelled from the Victorian Labor Party. Construction companies on government projects are now required to report suspected criminal behaviour, and whistleblower protections have been strengthened.
Opposition leader Jess Wilson countered in her own Age opinion piece, calling for a royal commission to expose how $15 billion of Victorians' money has been rorted and to ensure it never happens again. She described Labor's Big Build as "a hunting ground for organised crime, standover men, and corrupt union bosses."
