Victorian premier accused of ‘nonsense’ for blaming inflation amid gangland allegations over cost blowouts
Summary
Victoria’s Premier Jacinta Allan said cost increases in the state’s Big Build projects were due to inflation, not corruption. However, experts and investigations claim that union demands and payments linked to gangland figures have caused large cost overruns and call for a royal commission to investigate.Key Facts
- Victoria’s Big Build infrastructure projects have seen major cost increases, reaching over $100 billion in total.
- Premier Jacinta Allan says inflation and fair wages for union workers explain higher costs, not corruption.
- An integrity expert, Geoffrey Watson SC, says blaming inflation alone is “nonsense” and calls for a royal commission to investigate corruption.
- Reports show that union demands raised labor costs on the Metro Tunnel project by around 22% above normal levels.
- Contractors were forced to add extra non-productive workers due to union pressure, driving labor costs higher.
- Investigations revealed money from these projects has been paid to gangland figures, despite government attempts to clean up corruption.
- Allan has not read the leaked report detailing these issues but said investigations and law enforcement have powers to act.
- The Labor government previously supported meeting the union’s demands during the projects.
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