Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Infrastructure, Transport, Regional Development and Local Government—I thought it was someone else; I think it's Minister McCarthy. Recent revelations show CFMEU controlled construction projects cost around 30 per cent more. Australian taxpayers are being forced to pay more to deliver congestion-busting, productivity-enhancing and life-saving infrastructure than they should as a result of state Labor government sweetheart deals with the CFMEU. Other critically important projects are being left unfunded as a result of costs and delays and overruns for existing projects. Minister, has Minister King asked her department for advice on the powers available to her to ensure taxpayer funds for the construction of public infrastructure projects have not been misappropriated or spent on unlawful activity, given the recent revelations about the CFMEU?

Malarndirri McCarthy (NT, Australian Labor Party, Minister for Indigenous Australians) Share this | Link to this | Hansard source

I thank Senator McKenzie for her question. We certainly have been on the record to say that the behaviour we have seen from the construction division of the CFMEU is unacceptable. We've seen Senator Watt introduce a bill this morning. We have zero tolerance for this behaviour and have taken the strongest action possible to eliminate it through appointing independent administrators. Across government we have supported the Fair Work Commission in appointing independent administrators to the construction division of the CFMEU. We have asked the Fair Work Ombudsman to undertake a targeted review of all enterprise agreements made by the Victorian branch of the construction division of the CFMEU.

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

I rise on a point of order on relevance—direct relevance . It was a simple question about the infrastructure funding from the Commonwealth government to state government and the procurement of CFMEU controlled projects.

Sue Lines (President) Share this | Link to this | Hansard source

Thank you, Senator McKenzie. I was going to go to the question, but I'll take your point of order, Senator Wong.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

On the point of order, the senator in her question also made a set of political assertions. The minister is entirely able to respond to the assertions in relation to the CFMEU.

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

On Senator Wong's point on my point of order, I'm happy to submit the preface of my questions to actual fact-check. They are not political statements.

Sue Lines (President) Share this | Link to this | Hansard source

Senator McKenzie, that is a debating point. Your question had a considerable amount of preamble, which the—

Opposition senators interjecting—

Order! There was considerable preamble to your question, and the minister is being directly relevant. Minister McCarthy, please continue.

Malarndirri McCarthy (NT, Australian Labor Party, Minister for Indigenous Australians) Share this | Link to this | Hansard source

I was getting to it, Senator McKenzie. The minister has introduced new requirements on states and territories, as part of the funding agreement on infrastructure, and reinforced assurances on Commonwealth projects. Where the Commonwealth is jointly funding projects with states and territories, the minister has written to state and territory counterparts to convey the expectation that any information regarding improper or criminal conduct by entities related to projects delivered under the National Land Transport Act 2014 be reported immediately to the relevant regulator.

The minister has also embedded new assurances and protections in the federation funding agreement that the Commonwealth has negotiated with the states, which was finalised on 11 August. The FFA outlines the states' and territories' responsibility to ensure value for money for public funds and engage delivery partners who prioritise ethical practices, and the shared responsibility to support initiatives to improve productivity in construction. The new FFA responds to findings from the independent strategic review and the independent review of the National Partnership Agreement, which the minister undertook in response to irresponsible and unsustainable spending occurring under the previous government.

Sue Lines (President) Share this | Link to this | Hansard source

Senator McKenzie, first supplementary?

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

In the May budget, the government allocated $10.1 billion to pay states more money for infrastructure cost blowouts. This included an extra $5 billion to Victoria alone, with not one additional kilometre of road upgraded as a result. How much of these infrastructure cost blowouts are attributable to CFMEU controlled project overruns?

Malarndirri McCarthy (NT, Australian Labor Party, Minister for Indigenous Australians) Share this | Link to this | Hansard source

Well, if there is one group responsible for cost increases and project delays in this country, it is the Liberals and Nationals. They spent a decade making oversized and undercooked infrastructure commitments across the country. They started building the Inland Rail without knowing—

Opposition Senators:

Opposition senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Order! Minister McCarthy, please resume your seat.

Opposition senators interjecting—

Order! Minister McCarthy, please continue.

Malarndirri McCarthy (NT, Australian Labor Party, Minister for Indigenous Australians) Share this | Link to this | Hansard source

Building costs have been increasing for a range of reasons, including a shortage of skilled labour and the increasing price of building materials due to supply chain issues. Wages and enterprise bargaining agreements are not the key drivers for inflation in this country.

Sue Lines (President) Share this | Link to this | Hansard source

Senator McKenzie, second supplementary?

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

The protection racket continues. Minister, can you provide a guarantee to parliament that no Commonwealth infrastructure funds have been spent unlawfully by the CFMEU or CFMEU affiliated persons?

Malarndirri McCarthy (NT, Australian Labor Party, Minister for Indigenous Australians) Share this | Link to this | Hansard source

The minister is looking at all these matters and seeking advice.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I ask that further questions be placed on the Notice Paper.