The Victorian royal commission into major infrastructure projects will open on Monday with the Gap Road level crossing removal in Sunbury, a project viewed as central to claims the Labor government helped corrupt union officials take control of the state's multibillion-dollar Big Build program.
The two-week block of hearings is expected to hear from about two dozen witnesses from the construction industry, government departments and the Victorian branch of the CFMEU.
The Gap Road project was covered by an Australian Workers Union enterprise agreement until June 2022. Following a work stoppage on June 6 and 7, a consortium including builders CPB and John Holland agreed to transfer control to the CFMEU, the union also insisting its favoured labour hire firm, BK Labour, take over the contract.
The commission indicated it will examine what led to the stop work, a meeting at the CFMEU's offices on June 7 after which work resumed, and arrangements made following the meeting. Gap Road project managers reportedly met with CFMEU leader Joe Myles, who demanded BK Labour be installed on the project as well as CFMEU health and safety representatives.
Inquiry witnesses will be grilled on "what the arrangements cost, who paid for them and what the state knew and did", the commission said in a statement. It will probe the appointment of health and safety representatives, changes to labour hire and traffic management providers and any wider campaigns on traffic control on other Big Build projects.
The Age's Building Bad investigation has reported representatives of CPB and John Holland warned government officials that switching coverage from the AWU to the CFMEU and its favoured labour hire company would add an extra $2 million to labour hire costs on the project. BK Labour's owner, Bernard Kearney, pleaded guilty in July to creating a false document and was fined $3000 without a conviction.
Premier Ben Carroll called the royal commission in his first act after replacing Jacinta Allan, who along with former premier Daniel Andrews may be called as witnesses. Allan, premier from September 2023 until she resigned in July this year, has denied claims that state government officials allegedly pressured the consortium to cut a deal with the CFMEU.
Commissioner Christopher Kourakis leads the Royal Commission into the Integrity of Major Public and Civil Infrastructure Construction Projects in Victoria, called following years of reporting into alleged corruption in the Victorian branch of the CFMEU under former secretary John Setka.
Analysis
Why This Matters
- The hearings could reveal how union influence allegedly inflated costs on Victoria's Big Build program, which has absorbed more than $100 billion in public money.
- Findings may lead to reforms in procurement, labour hire and oversight of major infrastructure projects across Australia.
- The process tests whether a government can hold itself and its contractors accountable after years of allegations.
Background
The Big Build royal commission was launched by Premier Ben Carroll after reports by The Age detailed alleged corruption in the Victorian CFMEU, including links to organised crime figures. The Gap Road project is the first of what are expected to be many hearings into alleged corruption on major projects such as the Metro Tunnel, West Gate Tunnel and North East Link. In a report for the Queensland Commission of Inquiry into the CFMEU, barrister Geoffrey Watson, SC, estimated corruption on the Big Build cost Victorian taxpayers $15 billion.
Key Perspectives
Commissioner Christopher Kourakis: The inquiry will investigate "what the arrangements cost, who paid for them and what the state knew and did".
Jacinta Allan, former premier: Denied claims that state government officials pressured the consortium to reach a deal with the CFMEU.
CPB and John Holland representatives: Allegedly warned officials that switching to the CFMEU and its labour hire firm would add $2 million to costs.
Geoffrey Watson, SC: "The big money generated by the Big Build was at the root of the problem in Victoria. The temptation created by the big money proved too great."
What to Watch
- Whether witnesses confirm the alleged pressure from government officials on the consortium.
- If the commission's findings lead to criminal referrals or charges against union figures or officials.
- Whether the hearings expose similar arrangements on other Big Build projects.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedThe Gap Road level crossing removal in Sunbury will open the Big Build royal commission probe.Brisbane Times - Latest News: “The Big Build royal commission will begin their inquiry with the Gap Road level crossing removal”
- SupportedHearings begin on Monday.Brisbane Times - Latest News: “A two-week block of hearings, starting on Monday”
- SupportedThe commission’s inquiry includes claims of a CFMEU takeover, labour hire arrangements and what the state knew.Brisbane Times - Latest News: “It will probe the appointment of health and safety representatives on the project, changes to labour hire and traffic management providers and any wider campaigns on traffic control on other Big Build projects – including what the state knew and did.”
- SupportedGap Road is viewed as central to claims the Labor government helped corrupt union officials take over major projects.Brisbane Times - Latest News: “The Big Build royal commission will begin their inquiry with the Gap Road level crossing removal, a project viewed as central to claims the Labor government helped corrupt union officials take over the state’s major projects.”
- SupportedThe two-week hearing block is expected to hear from about two dozen witnesses.Brisbane Times - Latest News: “A two-week block of hearings, starting on Monday, is expected to hear from about two dozen witnesses”
- SupportedThe Gap Road project was covered by an AWU enterprise agreement until June 2022.Brisbane Times - Latest News: “The Gap Road project was covered by an Australian Workers Union enterprise agreement until June 2022”
- SupportedAfter a work stoppage on June 6 and 7, a consortium including CPB and John Holland agreed to transfer control to the CFMEU.Brisbane Times - Latest News: “but following a work stoppage on June 6 and 7, a consortium including builders CPB and John Holland agreed to transfer control to the CFMEU.”
- SupportedThe CFMEU insisted its favoured labour hire firm, BK Labour, take over the contract.Brisbane Times - Latest News: “The construction union also insisted that its favoured labour hire firm, BK Labour, take over the contract.”
- SupportedThe commission will examine the stop work, a June 7 meeting at the CFMEU’s offices after which work resumed, and the arrangements made following the meeting.Brisbane Times - Latest News: “The commission indicated on Friday that it will look at what led to the June stop work on the Gap Road project, a meeting at the CFMEU’s offices on June 7 after which work resumed, and the arrangements made following the meeting.”
- SupportedJoe Myles demanded that BK Labour and CFMEU health and safety representatives be installed on the project.Brisbane Times - Latest News: “Gap Road project managers reportedly met with CFMEU leader Joe Myles, then the union’s top official on Big Build projects, who demanded BK Labour be installed on the project, as well as CFMEU health and safety representatives.”
- SupportedThe commission said it would grill witnesses on “what the arrangements cost, who paid for them and what the state knew and did”.Brisbane Times - Latest News: “The inquiry will grill witnesses on “what the arrangements cost, who paid for them and what the state knew and did”, the commission said in a statement.”
- SupportedThe Age’s Building Bad investigation reported that CPB and John Holland representatives warned officials switching from AWU to CFMEU coverage and its favoured labour hire company would add $2 million to labour hire costs.Brisbane Times - Latest News: “This masthead’s Building Bad investigation has reported representatives of CPB and John Holland warned government officials that switching coverage from the AWU to the CFMEU and its favoured labour hire company would add an extra $2 million to labour hire costs on the project.”