Corruption experts have confirmed Labor’s Building Cooperative Workplaces Bill builds in the risk of corruption on Commonwealth procurement contracts.
After fresh warnings from anti-corruption barrister Geoffrey Watson SC today, the Albanese Government must abandon its union tax on Commonwealth procurement contracts.
Mr Watson, whose Rotting from the Top report exposed corruption and criminal infiltration within the CFMEU in Victoria, has today warned that “the power to give an EBA was concentrated in the hands of a few people, and that meant it was very, very easily corrupted”.
Mr Watson warned that the changes could mean the Commonwealth was closed to anyone who didn’t have a deal with the unions, noting “if you don’t have an EBA, you may be shut out from contracting.”
Mr Watson also warned of the inevitable consequences: “People will pay bribes to get EBAs. People will solicit bribes to give EBAs.”
Mr Watson and his corruption findings go to the heart of Labor’s proposal. Instead of reducing the importance of enterprise agreements in determining access to government work, Labor’s legislation would make them a factor in awarding taxpayer-funded contracts and grants.
After everything uncovered in the CFMEU scandal, the lesson should be to reduce the potential for corruption in taxpayer-funded work, not increase it.
Government procurement should be based on value for taxpayers, capability and performance, not whether a business has done a deal with a union.
The Coalition reiterates its calls for Labor to split its Fair Work Commission reforms from unrelated procurement provisions that would effectively embed a national CFMEU tax.
Perhaps today’s warnings from Mr Watson are the reason why Labor and the Greens have voted against establishing a Senate inquiry into corruption in the construction industry.
