On Tuesday, Ben Carroll announced his first major decision as Victorian Premier: calling a Royal Commission into the construction sector.
It comes after widespread calls for former Premier Jacinta Allan to hold a Royal Commission, amid allegations of corruption in Victoria’s Big Build initiative.
Carroll said the announcement is part of a “new direction” for the state.
So, why is the construction industry under such intense scrutiny?
Background
The CFMEU is one of Australia’s largest unions, representing more than 115,000 members across construction, manufacturing, and shipping.
In 2015, the Victorian Government launched its $100 billion ‘Big Build’ road and rail infrastructure program.
It includes projects such as the Metro Tunnel train line and major road upgrades.
The projects require a large number of tradies, which is where the CFMEU comes in.
The Victorian CFMEU was a registered member of the state branch of the Labor Party.
It donated more than $3 million to the party during the 2022 election.
In 2024, the CFMEU in Victoria was placed under administration after a Nine Network investigation uncovered alleged links between criminal figures and the CFMEU’s construction division.
The CFMEU administrator asked barrister Geoffrey Watson to investigate possible corruption in the union.
Allan asked Labor leadership to remove the CFMEU’s construction wing from the party that year.
Allegations
After the Nine reporting, the Queensland Government launched an inquiry into the CFMEU.
Watson gave evidence to the inquiry from his investigation, and submitted his reports.
He said the Big Build meant the CFMEU in Victoria was able to negotiate high salaries for its workers, and that “the flood of government money... made the Big Build ripe for corruption.”
Watson alleged the conditions of the Big Build allowed for CFMEU “collaborations... with outlaw motorcycle gangs (OMCGs)”.
He told the inquiry “building sites [were] converted by OMCGs into drug distribution centres”.
Watson cited evidence that “potential workers had to ‘donate’ $100 in cash” to CFMEU officials to be put on “lucrative” weekend night shifts.
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The same week, Nine newspapers reported the CFMEU administrator had redacted parts of Watson’s report on the Victorian wing of the union.
One redacted section alleged $15 billion of Government money had “been poured directly into the hands of criminals and organised crime gangs”.
Watson’s allegation has not been tested in court.
Political issue
The Victorian Opposition had previously called for a Royal Commission, renewing its calls following Watson’s allegations.
They asked for it to be able to investigate: the cost of alleged misconduct and funding to OMCGs; and the Government’s culpability and knowledge.
In response, Allan said Labor does “not support the calls,” while fellow Labor MP Tim Richardson called the $15 billion claim “unfounded and untested.”
Allan also said previous Royal Commissions on other topics “didn’t deal with the issues, quite clearly, because it remained an issue after that Royal Commission had concluded.”
Last week, Opposition Leader Jess Wilson said the “only way to clean up corruption” is “with a Royal Commission” that “only a Liberals and Nationals Government will deliver”.
Last Monday, Allan stood by her position, saying: “I am focused on taking strong action now... Anyone calling for a Royal Commission is calling for action delayed, not immediate action.”
Announcement
On Tuesday, Carroll’s “first action as Premier” was to call a Royal Commission into the construction sector.
He also announced the establishment of a Special Prosecutor, to work alongside the Royal Commission.
At a press conference on Wednesday, Carroll said he wants “no stone unturned.
Whether it is top-tier contractors, subcontractors, labour hire, government, unions.”
What’s next?
Carroll said in his first speech on Tuesday that more details will be released “in the coming days.”
This will include appointing a person to run the Royal Commission (the Commissioner), and instructions, known as terms of reference.
Previous Victorian Royal Commissions have taken upwards of a year, meaning this one will still be in its early stages at the state’s November election.
Carroll also made a point in his speech to differentiate himself from previous Premiers, saying: “I am not Daniel Andrews; I am not Jacinta Allan.”
