Matt O'Sullivan (WA, Liberal Party, Shadow Assistant Minister for Fisheries and Forestry) Share this | Link to this | Hansard source

The Senate will now consider the proposal, under standing order 75, from Senator Kovacic, which has been circulated and is also shown on the Dynamic Red:

That, in the opinion of the Senate, the following is a matter of urgency:

The continued serious allegations of corrupt and criminal conduct within the CFMEU under administration under the Albanese Labor Government and the Administrator's failure to take appropriate action.

Is consideration of the proposal supported?

More than the number of senators required by the standing orders having risen in their places—

With the concurrence of the Senate, the clerks will now set the clock in line with the informal arrangement made by the whips.

Maria Kovacic (NSW, Liberal Party, Shadow Assistant Minister to the Leader of the Opposition) Share this | Link to this | Hansard source

I move:

That, in the opinion of the Senate, the following is a matter of urgency:

The continued serious allegations of corrupt and criminal conduct within the CFMEU under administration under the Albanese Labor Government and the Administrator's failure to take appropriate action.

I believe it is a matter of urgency for us to consider and investigate the allegations of criminal conduct and corruption within the CFMEU and the challenges within its administration. The latest expose a couple of weeks ago on 60 Minutes confirmed what many of us had worried about with this administration, and that is that those individuals who have vested interests and who, for a long time, have influenced that organisation continue to wield that influence—figures like John Setka, Mick Gatto and the associates of the CFMEU's Victorian head, Zach Smith.

We are pleased to see that, over the last week or so, Mr Zach Smith has resigned from the ALP National Executive. It is right that he has done that.

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

Great pressure from the coalition.

Maria Kovacic (NSW, Liberal Party, Shadow Assistant Minister to the Leader of the Opposition) Share this | Link to this | Hansard source

It was wonderful pressure, as Senator McKenzie has noted, from the coalition, including members in the other place, such as Mr Tim Wilson, and Senator McKenzie, me and Senator Hume. Many of us have spoken on this. It is very important, but what we need to do now is continue to ask the question as to why Mr Zach Smith still sits on the National Construction Industry Forum, which provides advice to Minister Rishworth. Minister Rishworth is silent on that. She hasn't answered any questions in relation to that.

She's also still silent to questions from Mr Tim Wilson, from the other place, that were sent to her over a month ago in relation to these allegations—complete silence. We have had in this chamber, on a number of different occasions, obstructions to attempts set up a Senate inquiry into the administration of the CFMEU. We will persist with that. We will keep persisting because it is really important for Australians to have an understanding of what is going on within that administration and to be reassured that it is being effective, and, if it is not being effective, then it needs to be held to account. There is nothing unreasonable about that—nothing whatsoever.

That administration was set by this place, the Parliament of Australia, and this Senate should have the right, via its committee process, to scrutinise the function of that administration when there's information coming to light, via the media and whistleblowers, that suggests the criminal and corrupt conduct has been ongoing during the administration. We're not talking about matters that occurred before the administration. We're talking about matters ongoing after the administration had been established.

We've also had some commentary that this is an attack on everyday CFMEU rank-and-file members. It is absolutely not. They deserve this inquiry into this administration. They deserve to know whether the union movement, to whom they pay their dues, is actually doing work in their best interests or is still a protection racket for vested interests. Anybody that truly values the work of those workers would be supporting this inquiry, because this inquiry would do one of two things. It would expose and stop the ongoing criminal and corrupt conduct, or it would lay the matter to rest, and we could go, 'There's nothing to see here.' But we know that's not going to happen, because we have seen so many allegations around the ongoing kickbacks, the ongoing underworld activity and a cycle of corruption that keeps going.

Mr Zach Smith ordered one of his organisers to meet with Mick Gatto. How can we explain that as being a normal part of an organisation? I asked those questions to the Fair Work Commission in Senate estimates. We also asked the question of whether or not Mr Zach Smith was still meeting with Mr Gatto, and the Fair Work Commission said they would have grave concerns if that were the case. Guess what? It was the case. Further to that, the administrator knew about it before the meetings. So we want to know what else the administrator has known about. We want to know what else they have turned a blind eye to. And we also want to know what Minister Rishworth has known, what the Prime Minister has known and when they knew it.

Josh Dolega (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

The Albanese Labor government does not tolerate corruption, criminality and violence in any part of the construction industry.

Opposition Senators:

Opposition senators interjecting—

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

But you do. You actually do!

Josh Dolega (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

We've taken concrete action to—

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

Concrete is appropriate!

Josh Dolega (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

clean up the industry where the coalition and ABCC completely failed. Following multiple referrals from the Albanese Labor government, relevant federal agencies—

Matt O'Sullivan (WA, Liberal Party, Shadow Assistant Minister for Fisheries and Forestry) Share this | Link to this | Hansard source

I have Senator Ayres on his feet. Is there a point of order?

Tim Ayres (NSW, Australian Labor Party, Minister for Industry and Innovation) Share this | Link to this | Hansard source

Yes. The point of order is that there ought to be a little bit of shoosh. Senator Kovacic was heard in complete silence—not just a little bit of silence, complete silence.

Matt O'Sullivan (WA, Liberal Party, Shadow Assistant Minister for Fisheries and Forestry) Share this | Link to this | Hansard source

Thank you, Senator Ayres. You have reminded other senators that the interjections are disorderly. I'm not sure that 'shoosh' is in the standing orders, but Senator Dolega will be heard in silence.

Josh Dolega (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Following multiple referrals from the Albanese Labor government, relevant federal agencies, including the AFP, the Fair Work Commission and the Fair Work Ombudsman, have about 88 active investigations, cases, audits and reviews ongoing into the construction sector and have commenced 36 proceedings in the Fair Work Commission and the courts. State and territory police forces also have multiple investigations on foot. We have also taken tangible actions to stamp out corruption, criminality and violence within the CFMEU's construction division by appointing an independent administrator to the union.

It's clear from this publicly available material the administration has achieved more progress towards cleaning up the union in its first 15 months of operation than the coalition and the failed ABCC did in a decade, including commissioning multiple investigations by pre-eminent barristers and removing in total at least 330 individuals from their positions in the union. The coalition and the ABCC completely failed to deal with corruption. No action was taken by them to remove leaders or employees who are found to have behaved unlawfully. Unlike the coalition, the Albanese Labor government is committed to the hard work and serious work of the long-term industry reform. A key part of this work is being driven by the National Construction Industry Forum, a national tripartite body of industry leaders established by our secure jobs, better pay reforms. On 22 September the NCIF, which consists of employers, unions and government, unanimously endorsed a blueprint for the reform of the construction industry. In November, the NCIF will start work on a new joint industry charter setting out behavioural expectations for the sector.

These are not easy issues. There are no quick fixes, but we will keep working with employers, contractors, unions, state and territory governments, regulators and law enforcement agencies to clean up this vital industry.

Paul Scarr (Queensland, Liberal Party, Shadow Minister for Immigration) Share this | Link to this | Hansard source

The whole purpose of appointing an administrator to the CFMEU was to get the administrator to clean up the corruption at the CFMEU. That was the purpose, because that corruption in the CFMEU construction division is costing Australians millions and millions of dollars. In my home state of Queensland, the unlawful actions of the CFMEU have led to infrastructure cost blowouts of nearly every single major road, hospital, government building, school, university building—every single one of them had a blowout in the order of 30 per cent. That's the taxpayers' money. That's money which could have been spent on building additional roads, additional hospitals, additional schools, but, because of CFMEU corruption and because of the CFMEU's unlawful behaviour, the taxpayers haven't had the benefit of that additional spending.

The whole purpose of the administration was to fix the corruption in the CFMEU, but the administration is failing. It is failing to clean up the CFMEU. It is failing to weed out the bad actors. It is failing to do what it was appointed to do. And now it is losing the confidence of the Australian people, and action is required. Why? Because of articles like this in the Age from 25 October 2025 entitled, 'A house, a hot rod and a bashing: CFMEU sackings heap pressure on Albanese'. That's the title. This is happening after the administrator was appointed, not before. This is happening after. Let me quote from this article:

One was shown the door for taking "bribes", the other told to leave over an assault. Both contribute to a crisis engulfing the troubled union's administration.

Federal police are investigating allegations building companies paid massive bribes, including financing a $2.5 million property development and a $150,000 luxury vehicle, to a union boss—

listen to this very carefully—

recently promoted to help lead the Albanese government-backed clean-up of the scandal-tainted CFMEU.

This bloke referred to in this article was actually promoted by the administrator in the CFMEU. The administrator is meant to clean up the corruption in the CFMEU.

I go on:

The rolling CFMEU scandal has also infected NSW, with a second official there abruptly sacked days ago after this masthead—

and the Age newspaper is doing a great job in this regard—

confronted the union's administration with evidence he had engaged in a violent act in the company of a former Hells Angels bikie gang boss in late 2024.

So we've got the fellow in Victoria who got promoted by the administrator and then had to be sacked after the media uncovered this corruption scandal, and then we have the official acting within the administration in New South Wales who had to be sacked after the newspaper presented evidence to the administrator with respect to his 'violent act in the company of a former Hells Angels bikie gang boss'. This is exactly the sort of behaviour that was occurring before the administrator was appointed. So the administration is failing.

The article goes on:

Six serving and former union insiders told this masthead on Friday, speaking on the condition of anonymity to discuss sensitive information, that a small number of other organisers still employed by the administration were strongly suspected of improperly lobbying on behalf of select labour hire companies, including those run by their relatives and close friends, in return for benefits.

That's money. Six serving and former union insiders, whistleblowers, went to the Age newspaper to try and get the administrator to do the job the administrator should be doing—namely, clean up the CFMEU. This administrator is failing to do their job. It is a matter of public urgency that a committee of this Senate, with all the powers of this Senate, looks into this disgraceful episode in the history of the CFMEU construction division.

Jane Hume (Victoria, Liberal Party) Share this | Link to 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)

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

I rise to address this matter of profound public concern and urgency, particularly on behalf of the great state—or should I say the once great state—of Victoria. The continued pattern of serious, corrupt and criminal conduct allegations within the CFMEU during a period in which the union is supposed to be under administration—an administration appointed by, supported by and politically enabled by the Australian Labor Party here in Canberra—shows it isn't working. It's clearly not working, because journalist after journalist, whistleblower after whistleblower and small business after small business are coming forward and talking about alleged criminal activity and corruption occurring on worksites with the CFMEU, bikie gangs, organised crime—I could go on and on.

Yet, despite public assurances of reform, what we're witnessing is not a clean-up by the Labor Party here in Canberra; it's an absolute cover-up. In fact today, when they could have been standing up here in the Senate and debating this issue, they've got the newest backbench senator they could find to speak for a paltry five minutes to get the debate off and then they've left the chamber. There's not a Labor senator willing to stand up and argue for the CFMEU and their behaviour or willing to argue for the work of the administrator.

It's another day and another headline regarding the CFMEU and cost blowouts on federally funded projects, especially in my home state of Victoria. As the Financial Review reported on Tuesday, the Victorian Labor government is setting aside another eye-watering $736 million for the North East Link road project. When it was first announced in 2016, the North East Link road project was projected to cost around $10 billion. That estimate then climbed to $15 billion, and by 2023 it had blown out to $26 billion. That's more than double the cost in six years. That's $2.6 billion a kilometre, making Victoria the most expensive place in the world to build roads. But it's not just Victoria that's paying for this, because every Australian taxpayer is paying for the Albanese government's commitment of $5 billion of federal funding to this project.

We know that senior engineering and construction sources quoted by the Australian Financial Review identified costly disruptions linked to the CFMEU's behaviour, inefficient site practices and an absence of competitive tendering as contributing factors to the spiralling budget. I'm looking forward to examining these issues relating to the drag on productivity in our construction sector and in public infrastructure projects in the newly set-up productivity inquiry with Senator Bragg.

What is appalling is that, if you just go a little way outside of Melbourne, our roads are crumbling in regional Victoria. I note that there are some regional Victorians in the gallery today; it's great to have you here. If the President would allow it, I bet they would be yelling about the state of our roads outside of Melbourne. Instead we're spending an additional $736 million on the North East Link road project. That would have paid for an additional five hospitals in Victoria or 15 new primary schools, which our suburbs and crowded peri-urban areas need.

But the state government in Victoria doesn't care about that. The state government, led by the appalling Premier Jacinta Allan, are more interested in keeping their mates happy in the CFMEU, keeping the kickbacks happening and keeping their cosy arrangements through procurement—wink wink, nod nod—so that everybody's pockets get lined. Who ends up paying? It's Victorians, because their roads are worse and they're not able to build the hospitals and schools they need. Who else loses? It's the Australian taxpayer.

Under federal and state Labor governments the CFMEU's toxic reach is now extending to northern Victoria in the delivery of projects like the Inland Rail. We're seeing CFMEU subcontractors prioritised over local companies, which wasn't supposed to happen under this project. Australians deserve to know what you're doing, Labor. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

The question is that the urgency motion moved by Senator Kovacic be agreed to.