Victorian premier blames ‘inflation not corruption’ for Big Build cost blowouts amid fresh allegations

Victorian premier Jacinta Allan said calls for a royal commission into alleged Big Build corruption was ‘a call for delayed action’. Photograph: Diego Fedele/AAP View image in fullscreen Victorian premier Jacinta Allan said calls for a royal commission into alleged Big Build corruption was ‘a call for delayed action’. Photograph: Diego Fedele/AAP Victorian premier blames ‘inflation not corruption’ for Big Build cost blowouts amid fresh allegations Jacinta Allan resists calls for royal commission into state’s infrastructure projects as pressure mounts following new reports Follow our Australia news live blog for latest updates Get our breaking news email, free app or daily news podcast Jacinta Allan has resisted growing calls for a royal commission into alleged corruption on Victoria’s $100bn Big Build, declaring “inflationary pressures on projects is not corruption”. It comes after an investigation by Nine newspapers and 60 Minutes reported allegations that money from the state’s Big Build infrastructure projects was being paid to gangland figures and that the state government was warned about cost blowouts due to Construction, Forestry and Maritime Employees Union (CFMEU) demands. Nine’s Building Bad investigation reported that infrastructure companies repeatedly warned the Victorian government between 2022 and 2024 that CFMEU demands had inflated labour costs on the Metro Tunnel. The leaked consortium’s report, referenced in Nine’s Building Bad investigation, warned the state government about cost blowouts by 22% above what would be required under existing industry norms in Victoria. It estimated $196.4m of its labour costs were driven wholly by union-backed staffing and outlined how contractors were forced to add on additional non-productive workers. The consortium stated it caved to the CFMEU’s demands with the Labor government’s backing, Nine reported. Allan was the minister who oversaw the state’s Big Build program between 2018 and 2023 before becoming premier. Speaking at a press conference on Monday, Allan said she had not read the consortium’s report. Referring to the reporting about the Metro Tunnel, Allan said union members cost more because their wages came with “better” and “safer” conditions. “That is a cost, but that is a cost that is about supporting those workers to do this work to deliver projects,” she said. Allan said “fair wages” for union worker were part of the inflationary pressures on projects like the Metro Tunnel. “Inflationary pressures on projects is not corruption,” she said. The Nine investigation also revealed that money from the state’s Big Build infrastructure projects continues to flow to gangland figures after an almost two-year attempt by the government to clean up corruption. Asked if corruption was still occurring on the Big Build, Allan said she accepted that allegations had been made and that those who “claim to have evidence” should refer it to Victoria police. Allan defended her administration, saying: “There is no evidence of government corruption on the Big Build.” Allan said she was confident Victoria police and the Labour Hire Authority had been given sufficient powers to address any wrongdoing, saying over the last two years the authority had cancelled 164 construction industry licenses while police had laid 93 charges. “After all this time, if there is any evidence of any allegation of criminal behaviour that includes corruption and extortion, I don’t understand why that wouldn’t immediately be reported to Victoria police,” she said. Victoria’s opposition leader, Jess Wilson, on Monday said Nine’s reporting demonstrated that “the corruption continues to happen today”. “Payments are continuing to underworld figures under premier Jacinta Allan’s watch,” she told reporters. Alla continued to resist calls for a royal commission, saying it equated to “a call for delayed action” and would not lead to cultural change on work sites. Victoria’s former ombudsman, Deborah Glass, and the former commissioner of Independent Broad-based Anti-Corruption Commission Robert Redlich said in a joint statement that a royal commission was urgently needed. Federal deputy opposition leader, Jane Hume, on Monday called for a royal commission – pointing to Queensland’s commission of inquiry into the CFMEU – and a funding pause on the state’s infrastructure projects. “I do believe that you need to remove the corrupt elements before you can continue to give taxpayer money to these projects,” she told ABC radio. Allan dismissed Hume’s call for a halt to the projects, saying that “would see tens of thousands of workers put off the job immediately”. A report by barrister Geoffrey Watson SC, tendered during the Queensland inquiry in February, estimated Big Build corruption involving the union had cost Victorian taxpayers up to $15bn. The Allan government rejected the figure as “unfounded” at the time. During an interview with the ABC’s 7.30 program this month, Allan refused to provide a figure of how much CFMEU corruption had cost the state. The Big Build began in 2015 after the election of the Daniel Andrews-led Labor government. It includes major road and rail infrastructure projects such as the recently opened Metro Tunnel and the contentious Suburban Rail Loop. Explore more on these topics Victorian politics Victoria Jacinta Allan Australian trade unions news Share Reuse this content