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

My question is to the Minister representing the Prime Minister, Senator Wong. The Victorian Labor government has been forced to establish a royal commission into corruption and organised crime in the construction industry. The Commonwealth has committed $30 billion to the Victoria's Big Build projects. Integrity expert Geoffrey Watson told a Senate inquiry no Commonwealth ministers or agencies had approached him to investigate his evidence that there was $15 billion worth of corruption on the Victoria's Big Build projects. Will the Prime Minister demand that every Commonwealth funded project be examined by the royal commission in Victoria, or is he prepared to let billions of dollars escape scrutiny simply because the federal Labor government might find itself under the microscope?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) | Link to this | Hansard source

I thank Senator Mckenzie for the question. As I think I have indicated to her and perhaps to Senator Cash in relation to similar questions over the previous months, this government does not tolerate corruption, criminality and violence in any part of the construction industry. We have taken action to clean up the industry. I have spoken in this place about the work that the administrator has undertaken with multiple referrals from police and regulators and over 100 active investigations. In relation to the incoming royal commission and special prosecutor, which I think was the majority of the primary question, I note that the Victorian government has announced plans for the royal commission. We certainly will continue to work with the Victorian government as details emerge. You would be aware we have been asked questions previously about what Minister King has done to ensure no corruption on government projects, and I remind the Senate that we have ensured that Minister King has written to her state and territory counterparts on multiple occasions, reinforcing their obligations, including the need to report instances of suspected criminal behaviour or corruption to the relevant regulator and to the department. She has also written to government, business enterprises involving 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 department. We have sought assurance that procurement and contracting parties are achieving value for money off public funds. (Time expired)

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

Senator Mckenzie, first supplementary?

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

On 30 June, the Prime Minister said he had received assurances from the then Premier of Victoria, Jacinta Allan, that Commonwealth funding was not reaching organised crime. Did the Prime Minister ask Geoffrey Watson about corruption on Commonwealth funded projects? If not, why not? Or did the Prime Minister simply accept former premier Allan's word only for Labor's new premier, Ben Carroll, to conclude the allegations were so serious we needed a royal commission? (Time expired)

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) | Link to this | Hansard source

There are quite a number of aspects of that question, some of which go to what discussions were had between the former premier and the Prime Minister, as well as what discussions the Prime Minister had with Mr Watson. I'm not in a position to answer either of those, but I can indicate the policy position that I have outlined earlier, which is that we do not tolerate corruption or criminality anywhere and certainly not on construction sites, and, in addition to the work that was undertaken by Minister Watt when he was in the portfolio, in relation to the appointment of an administrator and the actions that Minister King has undertaken, which I have outlined, the government has sought to deal with both the allegations of criminality inside the union and also the ethical use of Commonwealth government funds.

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

Senator McKenzie, second supplementary?

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

If the Victorian royal commission finds that organised crime or corrupt operators profited from Commonwealth funded projects, will the Prime Minister commit to recover every taxpayer dollar, disclose every affected project and hold every responsible minister to account?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) | Link to this | Hansard source

With respect, Senator Mckenzie, you are asking me to speculate—

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

No, I'm not.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) | Link to this | Hansard source

No, you are asking me to speculate on the finding of a royal commission which has not commenced and has not made any findings. We will, of course, engage with Victoria in relation to the royal commission, and we will await the royal commission doing its work as it should. We will approach this in the way that I've outlined—that we believe there is no place for criminality or corruption on construction sites. Of course, the government would always look at the findings of a royal commission and take appropriate action.

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

I advise the chamber that Senator Payman has passed her question to Senator Thorpe.