Building tsar loses bid to block files on dispute with staffer

The construction watchdog ­has tried to bar the ­release of files about a dispute between a ­lawyer and boss.

On the docks: Fair Work Building and Construction inspectorate director Nigel Hadgkiss in Hobart.

The construction watchdog ­yesterday tried to bar the ­release of documents relating to an internal dispute between a ­lawyer and boss Nigel Hadgkiss, in the Federal Circuit Court.

Lawyers for the Fair Work Building and Construction ­Inspectorate asked the court to ban journalists from The ­Australian and The Age and Labor ­senator Doug Cameron from ­accessing material in the ­application by long-serving ­solicitor Susan Haslam.

Ms Haslam petitioned the court for judicial review of the ­decision by the director of FWBC to demote her, after an alleged workplace incident involving a junior staff member last year. The Australian revealed FWBC spent over $50,000 briefing law firm Ashurts in the last three months of 2015 to defend the matter.

Dominic Fleeton, acting for FWBC, yesterday urged judge Grant Riethmuller to limit access to the documents, claiming ­reasons given for viewing the ­material were not “compelling” enough. Judge Riethmuller ­refused to make the order, saying that to suppress the file could ­“create an air of secrecy” about the court, against the principle of “open justice”.

“The media, in particular, should be able to report proceedings and view the material before the court and report on the outcome of court proceedings in a meaningful way,” he said.

But Judge Riethmuller said Ms Haslam’s application, which was “not as clear as one would ­ordinarily expect in this type of proceedings”, contained possible hearsay, which could lead to ­defamation proceedings.

He ordered Ms Haslam to amend and refile the application within 14 days and gave FWBC two weeks after that to apply to strike out any of the amended document.

Judge Riethmuller, who urged FWBC to mediate the dispute ­privately to avoid a long and costly delay, said he would consider releasing the documents after they were amended, adjourning proceedings to April 21.

Ms Haslam initially named Mr Hadgkiss in the application but later agreed to amend the respondent to “Director” of FWBC after a request by the agency’s lawyers.

An FWBC spokesman said after the hearing other agency ­employees were mentioned in the documents. “We have a duty of care to those other employees to protect their interests. And as the judge said, the documents were not put together in a manner which was fit for court and they could be considered defamatory.”

The Coalition has vowed to ­replace FWBC with the stronger Australian Building and Construction Commission scrapped by Labor. Malcolm Turnbull pledged to introduce legislation to restore the ABCC next month, after it was voted down by the Senate last year.