Prime Minister Tony Abbott announces royal commission to "shine spotlight" on alleged union corruption

Updated

Prime Minister Tony Abbott has announced a royal commission into union governance and corruption to "shine a spotlight into the dark corners" of the movement.

It will be headed by the former High Court Justice Dyson Hayden.

During the election the Coalition promised a judicial inquiry into the union movement, following allegations of corruption and links to criminal gangs.

"This Royal Commission is designed to shine a great, big spotlight into the dark corners of our community to ensure that honest workers and honest businesses get a fair go," Mr Abbott said.

"Honest workers and honest unionists should not be ripped off by corrupt officials and honest businesses should be able to go about their work without fear of intimidation, corruption (and) standover tactics."

Mr Abbott says he wants the commission to begin its work as soon as possible and will recommend a reporting date of the end of this year.

He says the Transport Worker's Union and the Electrical Trades Union have been mentioned specifically in the Commission's terms of reference because "there have been allegations involving these unions in respect of the TWU, for instance, there was allegations that a TWU slush fund was used in a Health Services Union election".

The Australian Workers Union, the Construction Forestry Mining and Energy Union, and the Health Services Union have also been mentioned.

Mr Abbott has described the terms of reference as "broad".

The Commission has been charged with investigating the integrity of the financial management of unions, the accountability of officers and whether any unions have been used for any form of "unlawful purpose".

"This Royal Commission and its work is absolutely essential to ensuring that we have genuine law observance and law enforcement in this area," the Prime Minister said.

The inquiry has been welcomed by business but rejected by unions.

"As well as looking at the specific allegations which have come to light, the Royal Commission must investigate the systemic governance and accountability failures which have given rise to such serious misconduct, criminality and corruption," Jennifer Westacott, from the Business Council of Australia, said.

"While the investigation will take some time, the parliament can act now to begin the process of stamping out bullying, corruption and misconduct on building sites by urgently passing the legislation to restore the Australian Building and Construction Commission."

"While royal commissions are a major commitment, a lot of good can come out of such inquiries. Royal commissions have been very useful in the past in identifying problems and improper behaviour and recommending solutions," said Innes Willox, from the Australian Industry Group.

But the Australian Council of Trade Unions said the terms of reference confirmed the commission would be a "political witchhunt".

"Our initial review of the terms of reference suggests they are narrowly directed at unions and will not adequately deal with corruption or unlawful behaviour by businesses or employers," ACTU president Dave Oliver said.

"This government is not genuinely interested in dealing with corruption. It is only interested in weakening unions, so that it can then begin attacking the take-home pay of working Australians."

Labor and the unions want a police investigation to deal with allegations of corruption.

Topics: royal-commissions, unions, government-and-politics, law-crime-and-justice, australia

First posted