Victorian Premier Jacinta Allan has resisted growing calls for a royal commission into the state's $100bn Big Build infrastructure project, despite new reports alleging corruption and cost blowouts linked to the Construction, Forestry and Maritime Employees Union (CFMEU). Allan on Monday declared that 'inflationary pressures on projects is not corruption', after Nine newspapers and 60 Minutes reported that money from the projects was being paid to gangland figures and that the government was warned about cost blowouts due to CFMEU demands.
Geoffrey Watson SC, a director of the Centre for Public Integrity and former counsel assisting the Independent Commission Against Corruption, described Allan's reliance on inflation as 'nonsense'. 'Inflation may have some sort of a role but it's a relatively minor one,' he said, reiterating his call for a royal commission as the only way to address the corruption. Watson was appointed by the CFMEU administrator to investigate allegations of corruption and criminal offences within the union.
Nine's 'Building Bad' investigation reported that infrastructure companies repeatedly warned the Victorian government between 2022 and 2024 that CFMEU demands had inflated labour costs on the Metro Tunnel by 22% above industry norms. A leaked consortium report estimated $196.4m of labour costs were driven by union-backed staffing, including additional non-productive workers. The consortium stated it caved to the CFMEU's demands with the Labor government's backing.
Allan, who oversaw the Big Build program as minister from 2018 to 2023, said she had not read the consortium's report. She argued that union members cost more because their wages came with 'better' and 'safer' conditions, and that 'fair wages' were part of inflationary pressures. 'Inflationary pressures on projects is not corruption,' she said. Allan defended her government's actions, pointing to 164 construction industry licence cancellations and 93 police charges over the past two years.
Opposition leader Jess Wilson said Nine's reporting demonstrated that 'the corruption continues to happen today' and that 'payments are continuing to underworld figures under premier Jacinta Allan's watch'. Allan continued to resist a royal commission, calling it 'a call for delayed action' that would not lead to cultural change on work sites.
