Victorian Premier Jacinta Allan has rejected growing calls for a royal commission into the state's $100bn Big Build infrastructure project, blaming inflationary pressures rather than corruption for cost blowouts. Integrity expert Geoffrey Watson SC described her stance as 'nonsense'.
Allegations of Gangland Ties and Cost Blowouts
Nine newspapers and 60 Minutes reported that money from Big Build projects was allegedly paid to gangland figures, and the state government was warned about cost blowouts due to demands by the Construction, Forestry and Maritime Employees Union (CFMEU). A leaked consortium report estimated $196.4m of labour costs on the Metro Tunnel were driven by union-backed staffing, with cost blowouts 22% above industry norms.
Premier's Defense and Rejection of Royal Commission
Allan declared on Monday that 'inflationary pressures on projects is not corruption,' adding that union members' wages come with 'better' and 'safer' conditions. She resisted calls for a royal commission, calling it 'a call for delayed action' that would not lead to cultural change. Allan noted that Victoria Police and the Labour Hire Authority had cancelled 164 construction licenses and laid 93 charges over two years.
Expert and Opposition Criticism
Geoffrey Watson SC, a director of the Centre for Public Integrity, said blaming inflation solely was 'nonsense' and reiterated calls for a royal commission. Victoria's opposition leader Jess Wilson stated that 'payments are continuing to underworld figures under premier Jacinta Allan's watch.' Former ombudsman Deborah Glass and former IBAC commissioner Robert Redlich jointly said a royal commission was urgently needed.
Federal Pressure and Cost Estimates
Federal deputy opposition leader Jane Hume called for a royal commission and a funding pause on infrastructure projects. Allan dismissed this, saying it would put 'tens of thousands of workers off the job immediately.' A report by Watson estimated Big Build corruption involving the CFMEU had cost Victorian taxpayers up to $15bn, a figure the Allan government rejected as 'unfounded.'
Background on Big Build
The Big Build began in 2015 under the Daniel Andrews-led Labor government and includes projects like the Metro Tunnel and Suburban Rail Loop. Allan oversaw the program as minister from 2018 to 2023 before becoming premier.
