Probe into Vic building industry begins

An investigation has begun into alleged links to organised crime and bikie gangs within the Victorian building industry.

But there is no power to compel people to give evidence, with the state attorney-general hoping that a wish not to see the industry return to “the bad old days” will be enough to encourage cooperation in the industry.

Construction code compliance director Nigel Hadgkiss, who was deputy commissioner of the now abolished Australian Building and Construction Commission, will head the investigation and provide an interim report to the state cabinet by October 15.

He has been asked to investigate the Construction Forestry Mining and Energy Union (CFMEU) blockade of Grocon’s Emporium site and whether there were any breaches of industrial and other laws.

The inquiry is to be held behind closed doors, with no public hearings.

Master Builders Association executive director Brian Welch urged members to report any information on criminal activity or standover tactics.

“If we don’t act now to try and prevent illegal action in our building industry, how many more major projects are going to be under threat?” he asked.

“Construction projects and jobs are on the line if the unions continue to hold our industry to ransom.”

Attorney-General Robert Clark said the Grocon blockade was symptomatic of broader problems in the industry.

“There were certainly serious concerns that were on the public record about what went on with the West Gate Bridge dispute, the involvement of bikie gang elements there, the presence of thuggery and intimidation that even Prime Minister Julia Gillard condemned,” Mr Clark told reporters.

“The government has been concerned for a long time that we are heading back towards the bad old days of thuggery and intimidation and standover tactics in the Victorian building and construction industry.”

Victorian Employers’ Chamber of Commerce and Industry executive director of industry policy Richard Clancy said the CFMEU’s blockade highlighted the need for an inquiry.

“Victoria cannot afford the economic and reputational damage that results from thuggish and unlawful behaviour,” Mr Clancy said in a statement.

“It is impacting on Victoria’s reputation as a place in which to build things and do business”.

Mr Hadgkiss, who last month said Melbourne had the worst construction industry in Australia in terms of intimidation and crime, is to hand an interim report to state cabinet by October 15.

His final report is due by the end of March next year.

Comment was being sought from the CFMEU.

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