Andrew Bragg (NSW, Liberal Party, Shadow Assistant Minister for Home Ownership) Share this | Hansard source

I present the explanatory memorandum and I move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

As it stands, the disgraced CFMEU will play a key role in Labor's Housing Australia Future Fund (HAFF). This cannot take place.

This Bill would amend the Housing Australia Future Fund Act 2023 to prohibit the HAFF from investing into housing assets or entities financed by Cbus Super.

By inserting an additional limitation in the HAFF's governing legislation, this Bill will prohibit investments into housing-related projects that Cbus has or will invest in.

The Bill reaffirms that the HAFF is an ineffectual solution to the housing crisis, which shows that Labor has given up on home ownership.

It was recently revealed that the agency tasked with delivering the HAFF, Housing Australia, has spent $30 million of tax payer funds on external consultants and executive salaries despite not yet delivering a single completed house.

Labor is not only promoting institutional home ownership at a time when it has never been more difficult for Australians to break into the housing market, but its HAFF is also yet to deliver a single home.

Cbus' formal and legal affiliation with the CFMEU has made it an untenable party with which to do government business.

Allowing Cbus and its affiliate union, the CFMEU, to participate in the HAFF further risks the integrity of taxpayer funds locked in the misguided scheme.

In November 2022, before the scheme had even been legislated, Wayne Swan committed $500 million of Cbus members' money to the HAFF.

The CFMEU currently has three board members on the Cbus board. This includes CFMEU National Secretary Dave Noonan, who is also on the board of Cbus Property. Following allegations of thuggery, organised crime and corruption, no steps have been taken at Cbus to remove those board members.

This also follows allegations from state and federal detectives that CFMEU NSW State Secretary Darren Greenfield boasted to corrupt building firms that he could secure them lucrative contracts on major construction projects financed by Cbus because of his influence at the fund. The Australian Financial Review reported that Greenfield previously told a building company owner he would exert his influence over Cbus to ensure the fund instructed the lead contractor to use subcontractors favoured by the CFMEU.

The CFMEU's thuggery and corruption has had a significant impact on construction costs.

Numerous sources, including the Real Estate Institute of Queensland, have highlighted that the conditions of the CFMEU Enterprise Bargaining Agreements are leading to a 30% increase in construction costs.

The consequence is that construction of the homes we need to fix the supply crisis becomes more expensive and slower.

Despite purporting to take a hard-line against the criminality in the CFMEU, Labor has refused to consider deregistering the union. Labor and Cbus have refused to recognise any issue with CFMEU representatives sitting on the board of a $94 billion fund. Cbus has refused to cut its ties with the CFMEU. This is despite Labor suspending its affiliation with the construction arm of with the CFMEU, and its national executive supposedly banning any donations.

On 14 August 2024, the Australian Prudential Regulation Authority (APRA) ordered Cbus to conduct an independent review of whether their CFMEU-linked directors were fit to remain board members of Cbus, noting its concern about recent allegations of CFMEU misconduct. With-respect-to the allegations, APRA said they are concerned about the potential impact on trustees", given the CFMEU is a shareholder of the trustee of Cbus and has three of its members on the board.

Meanwhile Cbus has paid $1.25 million to the CFMEU during the 2022-23 FY according to their disclosures. This included $233,000 to the Construction and General Division (Victorian Branch) of the CFMEU. I urge APRA to investigate these payments.

Labor knows that the CFMEU cannot be trusted in the construction industry. The Hon. Tony Burke MP made the following statement in relation to the allegations:

It is abhorrent and it is intolerable. I said that we'd take strong action to address these issues and we are … There can be no place for criminality or corruption in any part of the construction industry.

The Hon. Bill Shorten MP also commented:

The clear evidence emerging is there's a level of penetration in some parts of the construction sector by organised crime which is far beyond acceptable.

But Labor has not acted on Cbus. This Bill takes action to protect taxpayers' money from corrupt union influence by banning any Cbus involvement with the HAFF.

From this Bill, the expectation is that there will be no payments sourced from the HAFF to Cbus or housing related entities financed by Cbus. The drafting is intended to extend the prohibition to follow through to the payments end of the HAFF scheme.

Furthermore, one of the conditions of the prohibition is that the CFMEU must be an entity under administration.

I call on the new Housing Minister, Claire O'Neil, to show leadership and maintain integrity over taxpayer funds by supporting this bill banning Cbus from any involvement in the HAFF. Labor must axe Cbus from the HAFF.

It's time for the Parliament to act. The Parliament must protect taxpayer funds from being funnelled into the hands of criminal elements at the CFMEU via Cbus.

I commend the Bill to the Senate.

I seek leave to continue my remarks later.

Leave granted; debate adjourned.