Andrew Wallace (Fisher, Liberal Party) Share this | Hansard source

The Turnbull government's priority is to promote economic growth and improve Australia's competitiveness on the world stage. Why? Because only through ensuring our nation has a stable and well-regulated business environment can we provide jobs and career opportunities for Australians. It is for these reasons that the government remains committed to pursuing policies and reforms that improve productivity and grow our national economy. Two of those reforms include issues that are near and dear to my heart: changes to the way registered organisations operate and the reinstatement of the Australian Building and Construction Commission.

There are currently 110 registered organisations that represent more than two million members. Between them they have annual revenue of $1.3 billion and they own or control $2.2 billion in assets. The majority of these registered organisations are not-for-profit and operate to supposedly serve the interests of their members. In many cases, registered organisations and their branches command significant financial resources. As is the case with any corporation in Australia, it makes sense that the registered organisations act requires a high level of financial oversight by officers to ensure that funds are used legally, responsibly and to benefit their members. It is also reasonable to accept that members and the broader community have high expectations regarding conduct of officers in charge of financial matters. In other words, it is expected that they act in the best interests of their membership at all times and conduct their business in an open and transparent manner. Let's not forget that registered organisations in Australia are given special privileges, like being income tax exempt. So it is reasonable that they should be accountable.

Unfortunately, there is evidence that some registered organisations do not meet their financial disclosure obligations. The recent royal commission into trade union governance and corruption uncovered numerous cases of misuse of member funds—for example, the National Union of Workers official who spent more than $100,000 of members' money on holidays, toys, dating service subscriptions and even a tattoo. It is clear that existing laws have done nothing to prevent thousands of Australia's lowest paid workers from being ripped off. The only way to ensure this does not continue to happen is to apply proper standards of governance to registered organisations—the same rules that apply to Australian corporations.

As part of the coalition's commitment to improving productivity and strengthening Australia's economy, reform must also come to the building and construction industry because it is one of the largest industries and employers in our nation. It employs one in 10 Australians and represents eight per cent of our GDP. The ABCC will return the rule of law to the industry and that will be music to the ears of the many thousands of workers who have been forced to submit to the will of those in the union movement who believe that they are above the law. There are in excess of 100 CFMEU officials before the courts. So far, the courts have imposed more than $8 million in fines for those in the CFMEU who are breaking the law. Large building contractors are currently free to lock out smaller contractors in the industry by discriminating against those who do not have a particular type of EBA favoured by them and/or the unions.

Since the ABCC was abolished by the Leader of the Opposition in 2012, the rate of disputes in the construction sector has increased by 40 per cent. It is clear that reform is desperately needed to improve productivity and grow our national economy. We must press on with important reforms, including those that will improve how registered organisations and the building and construction industry operate.

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