Royal commission into Victorian construction sector could boost Labor’s chances at state election, expert says

Ben Carroll said the creation of a royal commission into alleged corruption in the construction sector – including on Big Build projects – would be his ‘first action’ as Victorian premier. Photograph: Asanka Ratnayake/Getty Images View image in fullscreen Ben Carroll said the creation of a royal commission into alleged corruption in the construction sector – including on Big Build projects – would be his ‘first action’ as Victorian premier. Photograph: Asanka Ratnayake/Getty Images Royal commission into Victorian construction sector could boost Labor’s chances at state election, expert says Commission promised by new premier would be an ‘important signal’ for voters that the government was acting on alleged corruption Get our breaking news email, free app or daily news podcast Victorian voters heading to the polls will probably get a taste of the evidence heard by a royal commission – including how taxpayer funds were used on Big Build projects – but it could actually help Labor’s standing, an integrity expert says. William Partlett, an associate professor of law and a fellow at the Centre for Public Integrity, said the commission promised by the new premier, Ben Carroll, would be an “important signal” for voters that the government was taking action. Shortly after being sworn in on Tuesday, Carroll said the creation of a royal commission into the construction sector would be his “first action” as premier. This follows sustained pressure to investigate alleged corruption on the government’s Big Build infrastructure projects. 6:11 ‘Change starts today’: Ben Carroll delivers first speech as Victoria’s premier – video Carroll said the commission’s terms of reference would be “exhaustive”, and it would be established “as soon as possible”, suggesting it could hold hearings before November’s state election. “Whether it’s the top-tier companies, whether it’s subcontractors, whether it’s businesses or unions, these terms of reference will be thorough,” the premier said. Carroll also said a special prosecutor would be appointed to work in parallel to the royal commission, and that the Independent Broad-based Anti-corruption Commission will be bolstered with follow-the-money powers. It comes after his predecessor, Jacinta Allan, had resisted calls for a royal commission into allegations that organised crime figures and bikie gangs infiltrated major infrastructure projects, including the Big Build. Partlett told Guardian Australia the decision to hold a royal commission was not surprising, given the pressure the former premier was under from the Labor caucus over the issue. “In some ways it was probably the downfall of [Allan] in her failure to call that because it did seem that many wanted that to be called,” Partlett said. The Big Build is the state’s infrastructure program that has, since 2015, given about $109bn in public money for more than 180 projects, including the Metro Tunnel, level crossing removals and the Suburban Rail Loop. Many of the projects had suffered cost blowouts, which Allan had previously said was due to inflation, supply chain disruptions and rising labour costs. Her claims came in response to reporting by the Age that money from the projects was being paid to gangland figures, and alleged union corruption was adding premiums of up to 30% to major project budgets. Allan later acknowledged there had been criminality in the projects but said it was best for police to investigate any allegations of wrongdoing. A report by the Centre for Public Integrity’s director, Geoffrey Watson SC, tabled during a Queensland inquiry into the CFMEU, found that “the flood of government money” had made the Big Build “ripe for corruption”. That included “ad hoc corruption on the part of former organisers and delegates” as well as “a more organised or systemic corruption involving collaboration by some elements in the CFMEU with outlaw motorcycle gangs and other crime outfits,” Watson wrote. The report stated a labourer’s job on the Big Build was so lucrative that a market was allegedly created where corrupt organisers and delegates bought and sold the jobs, and alleged the government “knew and had a duty to know” about wrongdoing but chose to do “nothing about it”. Partlett said the terms of reference for the commission need to be “as broad as they can be” to include private organisations, the unions, institutions and government officials. The commission should also use its coercive powers to get to the bottom of the allegations in an open and transparent way, he said. He said it was important that the commission begin sooner rather than later, and would have some potential impact on the election. “The fact that the Labor party now is showing that it has interest in tackling these issues is an important signal … they are willing to accept something has gone wrong.” Partlett said Labor getting in before the election allows them to set the terms of reference, and no one in the integrity sector would like to see it turn into “a demonisation of unions”. “They can make it an inquiry into the construction sector that is done in a responsible way. It doesn’t demonise the unions, but then at the same time tries to understand what went wrong here.” Explore more on these topics Victorian politics Labor party Ben Carroll Jacinta Allan news Share Reuse this content