Immigration resting on a housing fix, says CFMEU boss Zach Smith

CFMEU boss Zach Smith says Labor’s social licence to continue with the country’s immigration program ‘will collapse fast’ if it doesn’t adopt an ambitious ­agenda to fix the housing crisis.

CFMEU national construction division secretary Zach Smith has challenged the government on immigration and housing. Picture: Aaron Francis

CFMEU boss Zach Smith says Labor’s social licence to continue with the country’s immigration program “will collapse fast” if it doesn’t adopt an ambitious ­agenda to fix the housing crisis.

Mr Smith accused the government of being “way too timid” in its attempt to close the gap of 750,000 social and affordable dwellings currently needed across the country.

The government has faced fierce criticism from the Coalition and interest groups on the soaring numbers of international students and migrants coming here while it faced a strapped housing market.

Mr Smith on Tuesday told the National Press Club the Albanese government was staring down a “nasty political stink bomb” as its immigration agenda clashed with housing stress and a cost-of-living crisis hitting Australian families.

“If we do not build the homes to keep up with our growing population then the social licence for immigration will collapse and it will collapse fast,” he said.

“You can already see parts of the Coalition, rudderless and desperate, poking at this nasty political stink bomb. What I'm proposing is the only way to defuse it.”

The union on Tuesday launched its campaign demanding a super profits tax to provide the half-trillion-dollar investment needed over the next two decades to build almost 53,000 homes a year, confirming it would take the proposal to Labor’s national conference in Brisbane in August.

Mr Smith said he had not asked for Anthony Albanese’s permission to move a motion at the conference calling for Labor’s endorsement of a super profits tax on businesses with a turnover of $100m. “The CFMEU didn’t seek the Prime Minister’s blessing for this campaign,” he said.

“We’ve mentioned the idea.”

The Australian revealed Mr Albanese this month warned Labor’s powerful policy forum – which was responsible for putting together the draft policies to be debated at the conference – that he wanted the latest draft of the platform to go through without major challenges.

Australia will experience the biggest two-year population surge in its history, with an extra 650,000 migrants across this financial year and next driving a 900,000 jump in the number of residents. At the same time, vacancy rates across the country are averaging about 1 per cent.

While issuing a warning over the loss of “social licence” to continue with the immigration program without a super profits tax, Mr Smith said he was not proposing to “turn off” the migration tap, which was critical to sectors including construction.

Opposition Treasury spokesman Angus Taylor said raising taxes and “sapping private sector incentive” was no way to solve Australia’s housing crisis. “Given the close links between the CFMEU and the Labor Party, the government must immediately rule out breaking yet another promise on tax,” he said.

A spokeswoman for Treasurer Jim Chalmers would not say whether the proposal would be looked at: “The government has been absolutely clear about our priorities when it comes to tax reform: making super concessions fairer and more affordable, ensuring multinationals pay their fair share of tax here in Australia, and our announced reforms to the petroleum resource rent tax.”

On other motions the CFMEU would put to the national conference – at which MPs, unionists and party members decide on the policy platform to take to the next election – Mr Smith said he would “not rule out” raising issues the union had with nuclear power when it came to the AUKUS deal.

“In respect to the AUKUS debate, our union is yet to take a position on that. We will no doubt have to consider it between now and the national conference,” he said. “I would say our union, along with the vast majority of trade unions, have had a longstanding position which would be broadly described as anti-nuclear.”

Foreign Minister Penny Wong said ALP conferences were conducted “in full public view”, and ”often people give very impassioned speeches”.