Dutton threatens RICO-style racketeering laws in CFMEU crackdown
Peter Dutton will press Labor to support US-style racketeering laws that would give new powers to police to tackle organised crime in the construction industry and combat alleged CFMEU-linked corruption.
Peter Dutton will press Labor to support US-style racketeering laws that would give new powers to police to tackle organised crime in the construction industry and combat alleged CFMEU-linked corruption.
As the Albanese government referred the latest allegations of corruption and violence to police, Workplace Relations Murray Watt rejected the need for national racketeering laws and insisted that implementing the Coalition’s call to deregister the CFMEU would hand control of the union to criminals.
Describing the CFMEU as a “modern-day mafia operation”, Mr Dutton claimed organised crime figures were essentially running the construction sector, and the allegations represented the “biggest corruption scandal in our country’s history”.
He said if the Coalition won the looming federal election, his government would set up a new Australian Federal Police-led taskforce, deregister the union, reintroduce the building watchdog, tighten the fit-and-proper-person test for entering building sites, increase penalties and bring in changes based on the Racketeer Influenced and Corrupt Organisations (RICO) laws in the United States.
Pattern of criminal behaviour
The laws would carry new offences that would allow police to target groups that engage in a pattern of criminal behaviour.
“By targeting groups that engage in a pattern of criminal behaviour, these offences will put police in the position where they can target the criminal organisation and its leadership,” he said.
“This means the bosses and kingpins of groups such as outlaw motorcycle gangs can be jailed even if they distance themselves from the crimes their organisations commit.”
Opposition workplace relations spokeswoman Michaelia Cash said current Australian laws empowered police to target only a person committing a crime, but the US laws define a pattern of law-breaking behaviour as “two offences in the last 10 years”.
“So a pattern of behaviour under RICO laws is fundamentally different to the ordinary meaning of the word pattern of behaviour. What that then means is this: the organisation itself, regardless of who committed the offence, is able to be prosecuted,” she said. “It is a fundamental difference.”
‘Sickening and appalling’
Senator Watt said he had referred “sickening and appalling” allegations aired on the Nine Network’s 60 Minutes program on Sunday night to the AFP, including claims of gender-based violence and that building companies were “paying off” outlaw motorcycle gangs via “dummy” companies on infrastructure projects to stop industrial action.
But he said “we don’t need to import an American racketeering law – we already have our own laws under the Criminal Code which deal with supporting or directing a criminal organisation”.
“Peter Dutton’s reckless plan for the CFMEU would hand control of the union back to the very criminals we are beginning to remove,” he said.
“Deregistering the union would allow it to operate without any regulation, with the worst elements free to run rampant on construction sites again.”
Members are ‘real victims’
CFMEU national secretary Zach Smith said the union was “not a criminal gang”, claiming it was “our members (who) are the real victims of any criminality or corruption within the industry”.
Victorian Premier Jacinta Allan has denied allegations her government covered up alleged CFMEU-linked corruption and organised crime infiltration within its taxpayer-funded infrastructure projects.
She said on Monday that Victoria Police would establish a taskforce to investigate fresh allegations of criminality within the state’s Big Build projects.
“Operation Hawk will investigate these new allegations, but also pursue a focus on organised crime, on criminal behaviour that may be taking place across worksites here in Victoria,” Ms Allan said.
Ms Allan said the government would establish a complaints agency for whistleblowers and strengthen co-ordination between federal and state bodies.
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