CFMEU takeover could lead to cost blowout of major projects North South Corridor and Women’s and Children’s Hospital, Opposition says

Completing the North-South Corridor and new WCH could blow out by $315m, the Opposition says, after a union takeover. But the government says they’ve got a critical fact wrong.

The cost of finishing the North-South Corridor and building a new Women’s and Children’s Hospital could blow out by hundreds of millions of dollars after a takeover of the local construction union, it is claimed.

Costings by the opposition, which it says have been independently checked, claim the projects could cost up to $315m extra if the CFMEU secures a 30 per cent wage rise.

But the state government has dismissed the costings as a baseless “guesstimate”.

The new dispute emerged as the Liberals prepare to introduce legislation that would establish South Australia’s own construction watchdog, after the federal government vowed to abolish the Australian Building and Construction Commission.

The union has indicated it would push for wage rises after the John Setka-led Victorian branch formally took over the SA branch earlier this month.

Opposition Leader David Speirs said “we could be on the cusp of witnessing our biggest projects crumble to nothing more than rubble”.

Concept designs of the Torrens to Darlington section of the North-South Corridor. Picture: Supplied

“These costings are accurate and have been independently verified by a world-renowned firm, so we know they are spot on,” he said.

“John Setka’s infiltration of our construction industry is going to tack on hundreds of millions on to government projects like the North-South Corridor and the new Women’s and Children’s Hospital.”

Mr Speirs said it was now especially important builders and workers on construction sites in SA were protected by an independent body.

“The establishment of an SA watchdog means we can make the building and construction industry fair and productive while upholding the law,” he said.

“Local industry leaders have been outspoken about their fears and the negative impact Setka’s CFMEU will have on construction in South Australia.”

CFMEU SA branch secretary Andrew Sutherland said the Australian Building and Construction Commission was a “failed regulator that actually reduced productivity in the construction industry”.

“The Liberals … are again playing chicken little trying to frighten up support for policy made on the run by relying on ‘back of the napkin’ quality guesstimates. The sky is not falling in,” he said.

Transport and Infrastructure Minister Tom Koutsantonis said the CFMEU was not the union that had carriage of major projects involving tunnelling – it was instead the responsibility of the Australian Workers Union.

He said “this is modelling that has been conducted expressly for political purposes – by and for the Liberal Party”.

“The former Liberal government was told while in office by the independent auditor, Infrastructure SA, that there were major risks associated with its costings for the Torrens to Darlington project,” Mr Koutsantonis said.

“It’s laughable that they’re now concerned about input costs – when the Malinauskas Labor Government is fixing its mess.”

On the proposed legislation for a state-based construction watchdog, Mr Koutsantonis said the Liberals had threatened to “go it alone” on a state-based Building and Construction Commission as far back as 2019 “but they never followed through with it”.