Union bigwigs, paid meetings with lobbyists: Inside how Qld government does business

As Brisbane emerges as a world class Olympic city, the cost of doing business in modern-day Queensland does not come cheap when you have a powerful union movement dictating industrial play. Peter Gleeson investigates.

It’s a $4 billion project set to transform the northern CBD riverbank, the crowning glory in Brisbane’s emergence as a world class Olympic city.

With Brisbane’s 2032 Olympics a decade away, Queen’s Wharf will be a focal point for the millions of people visiting and the billions watching around the world.

It is being developed as part of a joint venture deal between Sydney-based Star Entertainment Group and Hong Kong-based Chow Tai Fook Enterprise and Far East Consortium and is on schedule to be fully operational by 2025.

Yet the Courier Mail understands that the cost of doing business in modern-day Queensland does not come cheap when you have a powerful union movement, with close links to the Palaszczuk Government, dictating the industrial play.

Combine that with a policy of doing business with companies that are seen as “friendly’’ to the Labor Party – those who pay for the privilege of Ministerial access – and it’s easy to see why some major businesses steer clear of the Sunshine State.

Star Entertainment and its partners have made several ‘concessions’ to unions to keep the Queen’s Wharf construction on schedule. Picture: NewsWire / Sarah Marshall

To ensure the Queen’s Wharf seven-year construction phase goes to plan, Star and its partners agreed to several union-imposed “concessions’’.

The first was a deal brokered with United Workers Union boss Gary Bullock, the leader of the union movement in Queensland, where Star agreed to allow the union on-site at its existing two casinos in Brisbane and the Gold Coast to enlist members. It’s estimated they have secured at least 500 extra members.

The second part of the deal was with the ultra-aggressive CFMEU, where Star and its partners agreed to pay construction workers about double the normal rate to ensure there were no industrial stoppages.

With their overtime, bonuses, wet weather concessions and danger money, a man or woman controlling traffic with a “lollipop’’ sign earns about $190,00 a year on the Queen’s Wharf project. Carpenters take home $268,000 a year. In return, the CFMEU agreed not to strike and they have honoured their promise.

While much has been made in recent months of a lack of integrity within the Palaszczuk Government, it is the level of sophistication and guile imposed by the unions on the public and private sector that raises serious questions.

Unions work for outcomes that allow them to grow their membership. Their clip is from membership fees and the add-on benefits around industry superannuation and insurance. In return, they donate huge amounts of money to Labor to help them to keep winning elections.

By helping them to win elections, they have enormous power, controlling the Left wing faction of the Labor Party.

Secretary of the United Workers Union Gary Bullock. Picture: NCA NewsWire / Dan Peled

Unions are not subject to the same disclosure laws required by lobbyists, nor do their donations attract the same attention as those made by developers.

With Left faction members outnumbering other factions, they control preselection outcomes, and who will be Ministers.

So when a union comes to a Cabinet Minister, especially one they have championed, the Ministers take notice.

Unions contribute millions of dollars each year to Labor Party election campaigns at local, state and federal level. It’s estimated they pumped at least $12 million into Labor’s last state election win.

To gauge the influence they have, the so-called Mangocube email affair explains the reach.

Transport Minister Mark Bailey and senior Electrical Trade Union figures exchanged emails about who should get a position on an energy board.

The emails specifically referred to the ETU’s preference. Those emails had nothing to do with union membership and everything to do with the power attached to getting certain people on a government board.

Transport Minister Mark Bailey was cleared by the CCC over the Mangocube affair. Picture: NCA NewsWire / Dan Peled

The email exchange was conducted outside official government correspondence channels, which is against Ministerial guidelines. Bailey was investigated by the Crime and Corruption Commission and cleared.

A Labour source said:

“Ministers are the puppets of the unions, not the other way around, as most voters think.

“These people owe their political careers to the unions. The unions get what they want and in return they donate vast sums of money to the Labor Party and individual election campaigns.

“The stuff I hate the most is the way they jack up the price of government projects under the guise of workplace health and safety.

“That’s taxpayer moneys being siphoned off.’’

While union involvement is a massive part of how this government does business with companies, so too is the contentious role of so-called lobbyists.

Lobbyists are hired by companies to open the door to Ministers, and influence them to get better results.

It is a murky, clouded dark art and the ethical and moral challenges attached to lobbying – especially in Queensland – is part and parcel of doing business with government.

For big firms, lobbyists with Labor or former Labor links are the preferred conduit. Businesses know that to get access to Ministers – the decision-makers – they must employ a well connected lobbying firm.

Deputy Premier Steven Miles. Picture: Liam Kidston

The big lobbying forms work on retainers. Success fees are banned in Queensland but big retainers like $20,000 a month are normal.

If they get a project up and running, with the help of a lobbyist, retainers are a small price to pay for the ultimate outcome.

On the Gold Coast recently, a major developer convinced the office of Local Government Minister Steven Miles to increase the size of its development SkyRidge by 468 lots.

Locals say the traffic implications for residents of increasing the size of the development by 15 per cent are likely to be dire. Perron Group hired lobbyist firm Anacta and they met with Mr Miles’ people on December 22 and the extra lots were announced on December 31.

A spokeswoman for the Deputy Premier said the original development approval for SkyRidge given on 19 March 19, 2015, anticipated a maximum of 3,500 dwellings.

She said, to date, larger lots had been developed meaning that target wouldn’t be reached.

But then “a minor change” was approved to allow some areas in the western half of the site to be developed as smaller lots.

“This approval does not increase the anticipated maximum number of dwellings,” the spokeswoman said.

“The original traffic impact assessment and the provision of infrastructure has always been based on a maximum of 3,500 dwellings.

“The original development application was publicly notified.”

Anacta is run by former Labor state secretary Evan Morehead. The Parliament’s economics and governance committee is currently looking at the issue of lobbyists, which under the current Act, are required to sign a lobbyist register.

Former Labor state secretary turned lobbyist Evan Moorhead. Picture: Lyndon Mechielsen

Lobbyists are required to comply with a Lobbyists Code of Conduct, which codifies the ethical obligations and responsibilities of lobbyists seeking to influence government policy and decision making, while representing the interests of a third party for financial reward.

According to a submission put to the parliamentary committee by the Office of the Integrity Commissioner, ethical lobbying is widely regarded as a legitimate activity as part of a contest of ideas in the democratic process.

“However, there are inherent risks associated with the commercial nature of lobbying,’’ the submission says.

“Lobbyists are often former politicians, ministerial staff or senior government representatives and are perceived by members of the public to have personal influence over key decision-makers often because of their pre-existing political associations and ties.’’

According to sources, another favoured tactic by business is employing former politicians in key roles when they exit politics. Expensive gifts are also common, although many are returned now under the gifts register.

A senior Labor source told the Courier Mail that the Left faction of the Labor Party had, until recently, never controlled anything, but now it “runs the show’’.

“Under (former premier Peter) Beattie and (former AWU heavy Bill) Ludwig, they kept the rogue elements of the Left under control,’’ the source said.

“Now they are gone, their numbers are gone and the Left run the show. They’re loose. They think they can get away with anything and everything.

“And with the backing of Blocker (Gary Bullock), they pretty well can. The problem for (Annastacia) Palaszczuk is that if she moves on somebody like (Mick) de Brenni, who let’s face it is a liability, they will move on her.

“Doesn’t matter how popular she is, and this integrity stuff has exposed her badly. The bottom line is that the Left faction are out of control and they don’t care about integrity because they don’t understand its significance.

“Look at the Ministers who have got into strife. Bailey, Miles, de Brenni. Jackie Trad. They’re all from the Left.’’

Housing and Public Works Minister Mick de Brenni. Picture: Brendan Radke

Another senior Labor official likened the Queensland cabinet to the Japanese kabuki Theatre, where the actors are done up in extravagant clothes and makeup.

“When they appear on stage they are done up nicely and look amazing,’’ the source said.

“But go back stage before they put their outfits and makeup on and they’re actually ugly people. That’s what you’ve got in Queensland right now. Ugly people who put on a facade in public.’’

The LNP’s 2012-15 Newman tenure was not immune to susceptibility.

However, it is interesting to compare overtures from its former biggest donor, billionaire Clive Palmer, for a railway line on one of his projects, which was rebuffed by the Newman Government.

“We knocked Clive back, on probably the biggest test of our ethics, and it probably cost us the election,’’ an LNP source said.

“I believe had we approved that rail line and Clive was happy we would not have lost. He skewered Campbell (Newman). We’d still be in government today. On that score, you know, the whatever it takes score, Labor is way ahead of us.’’