Opinion: Sweetheart deal with union sounds death knell for Annastacia Palaszczuk

There already are signs Premier Annastacia Palaszczuk’s days are numbered, and a sweetheart deal with a union could be the nail in the coffin, writes Des Houghton.

A new State Government rule book for public works in Queensland is really a handbook for union bastardry that could blow out the cost of the Olympics.

Labor’s new best-practice instruction manual will set wages up to 131 per cent above the award wage, with millions of dollars flowing to trust funds administered by the CFMEU.

A carpenter on a base rate of $194,215, for instance, will see his package balloon to $254,788 for a 50-hour week.

The new best-practice principles are mandated to apply for works over $100 million, but may apply to projects below that amount if they are declared at the discretion of the relevant minister.

The new rules are a win for the CFMEU which has suffered a decline in membership and influence within the ALP.

Labor’s new procurement rules also flout Federal Government Australian Building and Construction codes and set the stage for a major confrontation with the Morrison government.

The new rules enshrine union power at great cost to taxpayers – and is already doing so. Unions are already demanding it be applied to the third stage of the Gold Coast light rail project from Broadbeach to Burleigh Heads.

Member for Burleigh Michael Hart said that may add up to $200 million to the cost of the 6.7km link.

Gold Coast Mayor Tom Tate arrives by light rail yesterday to announce federal funding for the third stage. Picture: Glenn Hampson

Gold Coast Mayor Tom Tate got wind of Labor’s sweetheart deal and said, quite rightly, that his ratepayers would not be adding an extra cent to cover a cost blowout.

The new rules introduced sneakily under the cloak of best practice and safety would add billions to large infrastructure projects including any Olympic Games works if Brisbane’s bid is successful.

Top builders believe the Olympics is set to become the costliest project in Australian history unless the Feds reign in the outlandish demands.

Excessive union demands add 30-40 per cent to the price of government projects such as hospitals, freeways, universities, and sporting stadia.

I suspect the bizarre new union strategy may already have sounded the death knell of the premiership of Annastacia Palaszczuk.

She may have outlived her usefulness to the union movement, and I expect she will exit the political stage before her term finishes.

Palaszczuk suffered the humiliation of being relegated to backblocks of Barcaldine on May Day while her ambitious deputy, Stephen Miles, led the main union rally in Brisbane.

While Miles was given a hero’s welcome and hailed as the premier-in-waiting by unionists at the Brisbane Ekka, Palaszczuk led a small group to the dead Tree of Knowledge, perhaps a symbol of her premiership.

Hart told Parliament the sudden delay to the light rail project came with “changes to the contract conditions in line with the new policy”.

Premier Annastacia Palaszczuk and her heir apparent Steven Miles in Longreach this week. Picture: Darren England/AAP

“The minister in charge of procurement (Mick de Brenni) made a grubby deal with the CFMEU prior to the last state election,” he said.

“This is an attempt to expand pattern bargains to all government projects.

“The (light rail) project has not been signed off. It has been delayed.

“The business case has been done. It has been fully costed. Now the government is changing the rules to aid their union mates.’’

Hart tabled a letter to Auditor-General Brendan Worrall in which he called for an inquiry into light rail and other major projects.

He wants to find out how union demands will add to the costs of the Capricornia correctional centre ($240 million), the Cairns convention centre ($176 million) the Spring Creek, Gatton, correctional centre ($650 million) and the Cross River Rail project ($6.7 billion).

Hart said a push by the CFMEU top expand in regional areas had cost taxpayers dearly.

In his letter he said the partial application of the new procurement policy added $42 million to the cost of the $250 million Townsville stadium.

I’m told the union gravy train is to be extended further with new schools falling under the $100 million threshold to become declared projects to send coasts soaring.

Builders’ tenders will be invalid unless they agree to the new procurement guidelines.

De Brenni believes he can skirt the federal regulators simply by calling it a best practice quality and safety agreement and not a union agreement.

Will Prime Minister Scott Morrison let him get away with it?

Des Houghton is a media consultant and former editor of The Courier-Mail, Sunday Mail and Sunday Sun