Bridget McKenzie (Victoria, National Party) Share this | Link to this | Hansard source

My question is to the Minister for Employment, Senator Abetz. Is the minister aware of reports over the weekend that a Transport Workers Union slush fund was used to support the election of certain union candidates in TWU branches and in the Health Services Union? What is the government doing to ensure that union members in Australia can have peace of mind that their money is not being used to fund factional brawls?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

I can inform the distinguished chair of the Senate's education and employment committee that I am aware of the media reports this weekend. Those reports interestingly enough actually appeared in the Fairfax media. Those revelations told us about hundreds of thousands of dollars being used to fight not for trade union members but for union leaders, their fiefdoms and ALP endorsements. Given the vast amounts of money, it is clear that it is not just a benign, innocent social club type of operation; we are talking hundreds of thousands of dollars here. Indeed, in relation to the Transport Workers Union slush fund the suggestion was that it was a minimum of half a million dollars. That is not just some Christmas social club; that is a huge amount of money. It is serious money with serious consequences—money held in secret funds, in buckets and in brown paper bags.

If these activities of union officials were to be core business, one asks the question rhetorically: why wouldn't these moneys be put through the trade unions official accounts and disclosed as they lodge their returns each and every year with the Fair Work Commission? Trade union members around the country are entitled to be assured that the money that they pay to unions is on the basis of an insurance policy rather than wanting to hold hands and sing Solidarity Forevermost of these people actually sign up and pay as an insurance policy. To look after their money, we have introduced the registered organisations commission bill and we encourage Labor— (Time expired)

Bridget McKenzie (Victoria, National Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Is the minister aware of any other union slush funds that could be of concern to union members?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

Originally, the Australian people were told that the Australian Workers Union slush fund of the early 1990s was simple a one-off. But, in her exit interview with Slater and Gordon, the former leader of those opposite disclosed that slush funds were a common occurrence within the trade union movement. Then there was a degree of dissembling about that, suggesting that is not actually what was meant. But now we know, courtesy of recent revelations, that the Transport Workers Union had a similar fund, and the ETU, the CFMEU, the MUA, CEPU—and so the list goes on. It is quite clear that Ms Gillard, in her exit statement from Slater and Gordon, stated the truth, that these slush funds are endemic. They are a rip-off and workers are entitled to be protected from this sort of endemic culture of illegality and funny money. (Time expired)

Bridget McKenzie (Victoria, National Party) Share this | Link to this | Hansard source

Mr President, I have a further supplementary question. Is the minister aware of any impediments to greater accountability and transparency of registered organisations?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

Australians want, and quite rightly demand, greater accountability of their registered organisations, especially trade unions, hence the coalition's registered organisations commissions bill. Labor and the Greens are impeding this with an attempt to refer the legislation not to the Senate's legislation committee but the Senate's references committee—a complete abuse of their numbers in this place. And the reason they are doing it is because they are hopelessly compromised.

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! Senator Abetz, resume your seat. You are entitled to be heard in silence.

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

It is quite clear that the vast majority of those on the other side, chances are, in their previous careers had some understanding of these slush funds and might have some very interesting tales to tell about how these slush funds operated. We believe that those opposite are hopelessly compromised, but nevertheless we will introduce the legislation to— (Time expired)