PM Malcolm Turnbull to introduce new laws to combat union corruption

PRIME Minister Malcolm Turnbull is preparing new laws to smash union corruption on the eve of the royal commission into trade unions handing down its findings.

TOKYO, JAPAN - DECEMBER 18: Australian Prime Minister Malcolm Turnbull delivers a speech at the National Museum of Emerging Science and Innovation on December 18, 2015 in Tokyo, Japan. Prime Minister Turnbull is on one-day itinerary for his first visit to Tokyo to discuss topics including whaling in the southern oceans and submarine contract, and broader political, strategic and economic issues. (Photo by Atsushi Tomura/Getty Images)

NEW laws to smash union corruption are being prepared by Prime Minister Malcolm Turnbull on the eve of the royal commission into trade unions handing down its findings.

The reforms under consideration include new restrictions on how members’ fees are used to bankroll the Labor Party and could even provide an early election trigger if Mr Turnbull reconsiders his intention to call an election in September or October.

A discussion paper released by the royal commission has previously called for debate on banning unions from making political donations to the Labor Party without express permission from members.

After uncovering “serious’’ evidence of lawlessness and improper use of members’ funds, including expenditure on slush funds, sex toys, KISS tickets and lingerie, royal commissioner Dyson Heydon will present his findings to the government on December 31.

The findings of the $46 million royal commission are ­expected to put fresh pressure on Labor leader Bill Shorten to tackle corruption in unions and to cut financial ties with controversial unions.

Mr Shorten, who was cleared by the royal commission of engaging in any criminal or unlawful conduct during his years with the Australian Workers’ Union, has described the royal commission as a political witch hunt.

Employment Minister Michaelia Cash and Prime Minister Malcolm Turnbull.

Employment Minister Michaelia Cash said the government will reconsider proposed legislation to improve the transparency of unions and how they use members’ money in light of the royal commissioner’s findings.

“The evidence that has been presented to date to the royal commission and the referrals that have been made to agencies are very serious,’’ she told The Sunday Telegraph.

“Numerous examples of corruption and unlawfulness have already been identified.

“The government will seriously consider the findings of the royal commission’s final report and if they warrant strengthening of the proposed Registered Organisations legislation, which Labor has ­already opposed three times, or other measures, these will be considered.”

Legislation before parliament includes new measures to tackle financial misconduct by unions, including the use of slush funds demanding greater transparency. New reforms could allow for disqualification of union leaders from office.

The Prime Minister has urged the Labor Party to come “to its senses” on union corruption, warning it will be a frontline election issue if Mr Shorten fails to act.

When he was elected earlier this year, the Prime Minister said “the idea that everything is fine and dandy in the world of trade unions is ridiculous’’.

Labor has repeatedly blocked legislation to reintroduce the Australian Building and Construction Commission to promote standards of conduct in the industry, and the Registered Organisations Bill which would impose greater transparency on unions.

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