Paul Guerra urges Vic to shed ‘gangster’ reputation, calls for transparency on major projects

Victoria must throw off its reputation as “a gangster state” after allegations of coercion, kickbacks and criminal influence on taxpayer-funded building sites, the state’s peak body has said.

Victoria must shed its unwanted reputation as “a gangster state” following revelations of kickbacks and coercion on building sites, the state’s peak business body says.

Victorian Chamber of Commerce and Industry chief executive, Paul Guerra, has called for urgent bipartisan action to flush out corruption in the construction sector and to force transparency around workplace deals and contracts for Big Build projects.

The Chamber has released a 10-point plan to clean up the industry and safeguard the economy, following allegations militant union the CFMEU has been using coercion, kickbacks and criminal influences to take over taxpayer-funded sites.

“There is an overarching view out there at the moment that has to be quelled; Victoria has been described as a gangster state,” Mr Guerra said.

“That’s not a reputation that we want.”

Victorian Chamber of Commerce and Industry chief executive Paul Guerra says Victoria must kick off its gangster reputation. Picture: Jake Nowakowski

Mr Guerra said there should be an independent whistleblower line established to ensure all allegations were flushed out, while the Fair Work Commission should be bolstered to focus on this area, with an immediate review of major state government contracts.

He said the focus should be across the industry, not just the CFMEU.

“If there is any company (where there is) credible evidence around corruption, they should be suspended immediately. It’s not acceptable for anyone to operate in a corrupt way.”

Mr Guerra said there should be transparency on cost and contract prices on major deals, including public disclosure of business cases.

This would ensure budget blowouts are better identified and explained rather than “hidden in the background”.

“Significant overruns will sound alarms,” he said.

A bipartisan approach, across state and federal governments and oppositions, should be pursued, in a bid to ensure what happened in the 1980s and “seems to have recurred” does not happen a third time.

Mr Geurra says there should be an independent whistleblower line established to ensure all allegations were flushed out. Picture: Jason Edwards

In a bid to ensure that large-scale firms do not allow issues to fester or operate on their jobs, Mr Guerra said people in responsible positions – meaning directors and senior executives – should be required to report quarterly on conflicts, knowledge of corruption, and bribery.

“I borrowed this from my time working for an American multinational; I had to sign it and every time I signed the form I had to think about what I had seen in that period.”

Rules on building sites should be reinforced regarding freedom of association and the right to have agreements with unions or non-union agreements, while a review of the EBA issuing process would “ensure a level playing field”.

The Chamber has released plan to clean up the industry following allegations the CFMEU has been using coercion, kickbacks and criminal influences to take over taxpayer-funded sites. Picture: AFP

He said if there was not a multifaceted approach to a critical industry, it would damage the economy.

“The costs are going to explode to a point where you can’t afford to do anything.

“You have got two parts here, you have got bad actors and bad practices; we are saying let’s deal with both.

“Our reputation as a state to do business in is being hurt as a result of these findings.

“There will be businesses looking to set up in Australia right now and they’ll come to Melbourne and read what’s going on, and choose other locations.

“We need this cleaned up and we need it cleaned up quickly.”