John Pesutto: ‘Our plan will tackle cost blowouts and misconduct on Victorian major projects’

The state opposition is pushing to introduce a new body to crack down on cost blowouts on Victoria’s multi-billion dollar transport projects.

The state opposition would introduce a new construction watchdog to monitor cost blowouts on Victoria’s multi-billion major project pipeline.

In a move that could spark a war with the state’s construction unions, John Pesutto’s shadow Cabinet this week signed off on reinstating a Victorian code of practice for the building and construction industry.

They also agreed to establish a new body, Construction Enforcement Victoria, to monitor compliance with the code.

Mr Pesutto said the policy was aimed at cracking down on cost blowouts that have added an estimated $38bn to Victoria’s record debt level which is currently forecast to hit $178bn by 2027.

The opposition would introduce a new construction watchdog to monitor cost blowouts on major projects.

Cost blowouts that have added an estimated $38bn to Victoria’s record debt level. Picture: David Caird

Blowouts have impacted dozens of major projects including the North East Link, West Gate Tunnel and the Metro Tunnel.

The new code would be modelled on one spearheaded by Ted Baillieu after he came to government in 2010 but scrapped by Daniel Andrews in 2015.

It specifically targeted construction unions and rising building costs, tackling freedom of association, the right not to join a union and strike pay.

The proposed new code, agreed to on Monday, would cover similar issues as well as industrial action, prevention of collusive practices and dispute settlement.

“Whether on the North East Link, West Gate Tunnel or the Suburban Rail Loop, Labor’s mismanagement of major projects is adding tens of billions of dollars to Victoria’s record debt and fuelling inflationary pressures across the economy,” Mr Pesutto said.

“Victoria cannot afford the waste and mismanagement to continue. By setting a construction Code of Practice and establishing a new watchdog to monitor compliance, our plan will tackle cost blowouts and misconduct on Victorian major projects.”

Shadow Minister for Industrial Relations, David Hodgett, said the new code would enable the government to muscle up to the unions.

“Under the Code contractors, both big and small, who stand up for lawful conduct against union demands can look forward to the full support of a Pesutto Government,” he said.

The West Gate Tunnel is one of the projects plagued by cost blowouts.

John Pesutto says ‘Victoria cannot afford the waste and mismanagement to continue’. Picture: David Crosling

“By establishing a clear industry standard supported by a new watchdog, the Liberals and Nationals’ plan will help restore integrity to major projects and tackle the causes of blowouts to deliver better outcomes for Victorians.”

“Every Victorian is paying the price for Labor’s mismanagement of major projects which is seeing higher costs, longer delays and continued instances of misconduct and illegal behaviour.”

Last week the Opposition referred explosive allegations by the Labor-aligned Australian Workers’ Union of dodgy deals, standover tactics and alleged corruption on Victoria’s Big Build sites to the state’s Independent Broad-based Anti-corruption Commission.

The AWU has raised concerns with Transport Infrastructure Minister Danny Pearson including building companies being overlooked for contracts despite lower bid costs, due to industrial relations threats, and workers being targeted and harassed due to union affiliations.