Concetta Fierravanti-Wells (NSW, Liberal Party, Parliamentary Secretary to the Minister for Social Services) Share this | Hansard source

Anyone reading that interim report cannot be in any doubt about why there is a need to look at governance in the union movement and in other registered organisations through the introduction of a registered organisations commission. Goodness only knows what is in that confidential volume dealing with serious criminal matters, which, as I have indicated, will not be released for fear of safety to certain witnesses and their families.

The section of the report which deals with the CFMEU concluded that there is a 'culture of wilful defiance of the law which appears to lie at the core of the CFMEU'. The report further confirms the pressing need for the legislation to counter the thuggery and lawlessness in the construction industry. In relation to the CFMEU, as I indicated, the royal commissioner referred to the spread of the culture of unlawfulness in the building and construction industry and to what he said was a 'culture of wilful defiance of the law which appears to lie at the core of the CFMEU'. These are the reasons that establishing a registered organisations commission has been listed for debate as a matter of priority in the first Senate sitting week of 2015. It is why we need this commission. This bad conduct has to be curbed.

The good news is that in this act we will establish an independent watchdog—the registered organisations commission—which will monitor and regulate registered organisations with enhanced investigation and information-gathering powers. This act will amend the requirements on officers' disclosure of material, personal interests and related voting and decision-making rights and will change grounds for disqualification and ineligibility for office. It will also strengthen existing financial accounting, disclosure and transparency obligations under the registered organisations act by putting certain rule obligations on the face of the registered organisations act and making them enforceable as civil remedy provisions. Finally, it increases civil penalties and introduces a criminal offence for serious breaches of officers' duties as well as new offences in relation to the conduct of investigations under the act. The registered organisations commission, when established, would have an important education function to assist registered organisations and their officials to understand and to work with these laws. To be clear, officials and registered organisations will be able to get advice and assistance to help them in their duties and to understand the framework. The passage of the bill will mean that the commission will be there to help and assist, but of course, if there is illegality or continued and deliberate noncompliance with the laws, the commission will have the powers available to take prosecutions and to allow the courts to decide on penalties.

In addition, we are about marrying the situation in relation to companies and unions. In short, we want to make sure that the penalty regime for ripping off shareholders is the same as for ripping off members of the unions. Why should unions be deserving of less rigor in terms of penalties? The impact on some of Australia's most hardworking workers can be just as dreadful as on shareholders. However, it should be understood that the penalties are not mandated in the bill. Whilst legislation can prescribe maximum penalties, the ultimate penalty will be always at the discretion of the court. It is, however, fair to say that the penalties are potentially heavy to send a clear message. Thuggery and slush funds are not beyond the full rigor of the law. This bill if passed will still, consistent with longstanding practice, grant the courts the ability to determine the actual penalty within the context delivered in this legislation. The seriousness test encompassed in this bill would again be left for a court of law to pass judgement on within the framework of the legislation.

Members have expressed concerns about this legislation. The only individuals who should have anything to be mildly concerned about in relation to this bill are those who are found by a court of law to have acted corruptly. I for one have absolutely no problem seeing justice brought down on those involved in criminal activity. A registered organisations commissioner will be able to support officials. Training, fact sheets and consistent information will aid in the understanding of the requirements set out in this legislation. It is only rogue officials who will have anything to fear. I look forward to seeing these individuals watched and monitored in a way that protects the many hardworking and diligent individuals who contribute their wages to supporting registered organisations that they are part of. Why are Labor and their Green alliance partners not wholly supportive of this legislation? As I indicated earlier, one only has to look at the returns from the Australian Electoral Commission to have the answer to that. Those opposite and their Green alliance partners are heavily conflicted in this matter. Of course, we saw it recently in Victoria when the newly-elected Premier, who is wedded to his union mates, introduced legislation to repeal police move-on laws. This has gone on for too long. It is time that the rorts were brought to an end. (Time expired)