Jane Hume (Victoria, Liberal Party) Share this | Hansard source

I was having a cup of coffee with an old school friend the other day whose family runs a building business. I said to her, 'You surely have seen an improvement in behaviour on your worksites since this administration of the CFMEU began?' She said no, in fact it's gotten worse. She said it has actually got to the stage now where the CFMEU are laughing because they have realised just how powerless the government is. In fact, the administrator they have put in place has allowed the CFMEU to become more permissive, not less permissive. The corruption, the bikie gangs, the underworld figures, the cartel kickbacks—all of this is running rife, and it's happening in my home state of Victoria. We know this because we understand that this is pushing up the cost of construction. It's pushing up the cost of construction in Victoria. No wonder we have seen so many cost blowouts on our infrastructure projects—the West Gate Tunnel, the North East Link. The list goes on. Wait until we get to the Suburban Rail Loop; heaven help us with what is going to happen there.

The latest exposes, including on 60 Minutes, confirmed what all of us have known all along—that the CFMEU remains entangled with figures like John Setka, Mick Gatto and associates of its Victorian head, Zach Smith. I was very pleased to see that Zach Smith has finally stepped away from the executive of the Labor Party, because the idea that the Prime Minister could sit shoulder to shoulder with a man who associates with these figures that are intricately connected to criminal behaviour is unthinkable. But there are still cash flows, there are still kickbacks and there are still cartel levers, and, until they are cut off, this problem will only deepen. Corruption will remain rife, the bikie gangs will flourish, criminal behaviour will continue and our construction sites will remain unsafe and highly inefficient for taxpayers.

The administrator, Mr Irving KC, was appointed specifically to clean up the CFMEU and restore integrity, but the fact that he has been so ineffectual and potentially enabling has shocked us all. There was a union official named Mr Charles Farrugia who went public and called out that administrator as someone who actually protects figures like John Setka rather than removing them. The administrator has elevated people who have later been exposed as being corrupt, such as Mr John Perkovic. He was promoted to deputy leader, only to be removed after cartel kickback allegations. This is quite extraordinary. In the 60 Minutes episode that I'm sure we have all watched by now, Mr Gatto gave Mr Perkovic a gold bracelet. Did the administrator know about this? Was he aware? This isn't just a one-off incident. This is a pattern of behaviour, a pattern of corruption, and it's not being stopped; it's being recycled.

Workplace Relations Minister Rishworth has tied her reputation to this administrator's performance. Heaven help Ms Rishworth because, if that is the case, she is in all kinds of strife. She's described the administrator's actions as the strongest possible response and says she has full confidence in him. I do not think that that confidence is shared. I know it's not shared by the coalition. I don't think it's shared by Australians, because they're the ones that are paying the price for this ongoing corruption.

The Fair Work Commission told this Senate that they would have grave concerns if Mr Setka remained an influence within the CFMEU, yet there has been irrefutable evidence that Mr Smith meets with Mr Setka socially, he plays cards with him and he maintains contact with him. This isn't reform. This is business as usual for the CFMEU.

The parliament established the administration of the CFMEU, and the parliament deserves the ability to scrutinise the effectiveness of that administration. We were promised 'the strongest possible action'. That is not what we have seen. This corrupt and criminal union—and this is not a disparagement of all unions. That is absolutely not what we are saying. Unions have an important place in civil society. But this union is bad to its core. The public interest is clear. The corruption must be removed, and Labor's self-interest is what is getting in the way. Australians are not fools. They see this corruption being exposed by journalists. It's time the government got on with the job of delivering— (Time expired)