Senate debates Questions without Notice
Construction, Forestry and Maritime Employees Union
Bridget McKenzie Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development
2:32 pm
My question is to the Minister representing the Treasurer, Senator Gallagher. Industry stakeholders estimate that cost blowouts linked to the CFMEU conduct on construction sites can be as much as 30 per cent. The CFMEU's involvement on Victoria's Big Build has been conservatively estimated as costing the Victoria taxpayer $15 billion. Minister, with billions of Commonwealth taxpayer dollars being allocated for infrastructure projects right across Australia, has the government quantified the cost impact of CFMEU driven practices on federally funded infrastructure projects?
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
2:33 pm
I thank Senator McKenzie for the question. I think it probably falls more appropriately within the minister for infrastructure's portfolio, but I will be as helpful as I can. We have seen the numbers that have been circulated in public. They're not numbers where I'm aware of the basis for them, but I can confirm that Minister King has written to her state and territory counterparts on multiple occasions reinforcing obligations under the federation funding agreement schedule on land transport infrastructure projects and the need to report instances of suspected criminal behaviour or corruption to the relevant regulator and the department. Minister King has also written, where appropriate, to government business enterprises involved in the delivery of Commonwealth led infrastructure projects, outlining expectations that all instances of suspected criminal behaviour or corruption are reported to the relevant regulator and/or department. We've also sought assurance that procurement—
Bridget McKenzie Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development
I have a point of order on relevance. I wrote to Minister King about this issue 18 months ago, so I understand—
Sue Lines President
Senator McKenzie, writing to Minister King is not relevant.
Bridget McKenzie Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development
No, relevance. The question was to quantify the cost impact for Commonwealth funded infrastructure projects, not on the correspondence register of Minister King.
Sue Lines President
Thank you, Senator McKenzie. I have advised many senators on many occasions before that, when you call a point of order, it's not about giving a statement. It is just drawing my attention to a point of order around a question. The minister is being relevant to your question.
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
As I said at the outset, the numbers that were cited by Senator McKenzie are not Commonwealth numbers or ones where we are aware of the basis for them. So my answer is reinforcing the action that has been taken on federal funds, where they are used on infrastructure projects that are managed by the states. The Commonwealth has consistently sent the message and reminded ministers and others about the requirements for any concerns relating to conduct or allegations of criminal activity to be reported to the regulator.
Bridget McKenzie Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development
2:36 pm
At a time when inflation remains persistently high and Australians are suffering a cost-of-living crisis, public sector demand is now at an all-time record share of the economy. Why isn't the government doing more to ensure that taxpayer funded construction projects are delivered free from coercive or inflationary practices so that public spending is not adding further pressure to prices?
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
We've made it very clear, where it involves Commonwealth funding, that projects are appropriately scoped and costed before the Commonwealth partners and provides project funding and that the project agreement clearly sets out the expectations of the Commonwealth. Where and if people have concerns—for example, if you have concerns, Senator McKenzie, about particular projects—then it's up to them to make those concerns clear, and the Commonwealth would look—
Bridget McKenzie Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development
That's what we're doing.
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
Well, not just raising a question.
No.
Sue Lines President
Senator McKenzie and Senator Hume, stop interjecting. I can't be any plainer than that. Stop.
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
The Commonwealth is fulfilling our responsibilities to make sure that projects are appropriately scoped, and, where funding is provided and we are satisfied that those businesses cases and the work that's being done scopes the project out correctly, we provide funding, and then there is a funding agreement which must be adhered to by the relevant entity.
Bridget McKenzie Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development
2:38 pm
Which doesn't mention the CFMEU. Minister, have you ever personally benefited from a donation—actual or in-kind—sponsorship or patronage from the CFMEU?
Unidentified interjection - Hansard doesn't record who said this
Hon. Senators:
Honourable senators interjecting—
Sue Lines President
Excuse me, I have Senator Wong on her feet. I expect the chamber to come to order.
Penny Wong SA, Australian Labor Party, Minister for Foreign Affairs
I have a point of order. That, in my submission, is not supplementary to the primary that was asked.
Sue Lines President
Yes, I have checked with the Clerk, and his view is that it's not related to the primary or the first question. I will invite—
Senator McKenzie, I believe that I am speaking. I will invite Minister Gallagher to answer the question in whatever way she thinks.
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
2:39 pm
The only answer I can provide there, noting that it's not linked to the earlier questions, is that all donations provided to the Labor Party are disclosed in accordance with disclosure guidelines—well, disclosure laws.