Sunbury level crossing removal will kick off probe into Big Build corruption

A royal commission is an official inquiry established to investigate serious matters of public importance. It can gather evidence, question witnesses and examine documents before reporting findings and recommendations. This commission is focused on the integrity of Victoria’s major public and civil infrastructure construction projects.

Its opening investigation concerns the Gap Road level crossing removal in Sunbury. Commissioners will examine the June 2022 work stoppage, a meeting at CFMEU offices, and the arrangements made when work resumed. They will ask what those arrangements cost, who paid, and what the state knew and did.

The inquiry is led by Commissioner Christopher Kourakis. About two dozen witnesses are expected, including construction industry figures, government officials and CFMEU representatives. Former premier Daniel Andrews and former premier Jacinta Allan may also be called. The findings could clarify whether government pressure, union influence and project decisions compromised public infrastructure delivery.

Gap Road was chosen because the project allegedly shows how the CFMEU gained influence over Victoria’s Big Build. The commission will examine whether union demands, government actions and project management decisions changed who controlled work on major public infrastructure. That makes the site a focused test of wider corruption allegations.

The project contains several concrete issues. After a June 6 and 7 work stoppage, a consortium including CPB and John Holland agreed to transfer coverage from the AWU to the CFMEU. The CFMEU also demanded that BK Labour become the labour-hire provider. Officials allegedly pressured the consortium, while builders warned the change could add $2 million.

The inquiry will question what caused the stoppage, what happened at the June 7 meeting, and what followed. It will also examine safety representatives, labour-hire and traffic-management changes, and possible wider traffic-control campaigns. This could show whether Gap Road was an isolated dispute or part of a broader system.

The Gap Road project was covered by an Australian Workers Union enterprise agreement until June 2022. Work stopped on June 6 and 7. The commission will investigate what caused that stoppage and whether it was connected to the CFMEU’s later demands. Work resumed after a June 7 meeting at CFMEU offices.

After the meeting, a consortium including CPB and John Holland agreed to transfer control from the AWU arrangement to the CFMEU. CFMEU leader Joe Myles reportedly demanded that BK Labour be installed as the project’s labour-hire provider. The union also sought CFMEU health and safety representatives on the site.

This shift mattered because it changed both union coverage and the project’s labour arrangements. Builders reportedly warned officials that the changes would increase labour-hire costs by $2 million. The royal commission will examine who made the deal, who paid for it, what it cost and what state officials knew or did. Allan has denied claims that she pressured the consortium.

The CFMEU is the Construction, Forestry and Maritime Employees Union, described here as the construction union. The AWU is the Australian Workers Union. At Gap Road, the AWU’s enterprise agreement initially governed the project. The CFMEU later sought control after the June 2022 work stoppage.

The reported change involved more than a union switch. A consortium including CPB and John Holland agreed to transfer control to the CFMEU after a June 7 meeting. CFMEU leader Joe Myles reportedly demanded that BK Labour become the project’s labour-hire provider. The union also sought its own health and safety representatives.

BK Labour was therefore the preferred labour-hire company in the new arrangement. Its owner, Bernard Kearney, pleaded guilty in July to creating a false document connected with suspicious financial transactions. He received a $3000 fine without a conviction. The commission will examine these arrangements, their cost, who paid, and what government officials knew and did.

Representatives of CPB and John Holland reportedly warned government officials that changing Gap Road’s arrangements would be expensive. They said switching coverage from the AWU to the CFMEU, together with using the CFMEU’s favoured labour-hire company, would add $2 million to labour-hire costs.

The alleged increase was linked to the project’s changed labour structure. After the June 2022 stoppage, the consortium agreed to transfer control to the CFMEU. The CFMEU also insisted that BK Labour take over the contract. The inquiry will examine the arrangements made after the June 7 meeting and whether the extra expense was accepted under pressure.

The $2 million warning matters because the project used public infrastructure funding. The commission says it will ask what the arrangements cost, who paid for them, and what the state knew and did. Its findings may establish whether the additional cost reflected legitimate project needs or an improper transfer of value.

Victoria’s Big Build is a vast infrastructure program and the Labor government’s signature legacy over 12 years in office. It includes more than 70 level crossing removals, the Metro rail tunnel, the West Gate Tunnel and the North East Link toll roads. Together, the projects cost more than $100 billion.

The scale explains why control over contracts, labour and site access matters. The article reports that the CFMEU gained power to say who worked on some sites, including associates with alleged links to outlaw motorcycle gangs. Gap Road is being examined as a possible example of how that influence developed.

Geoffrey Watson, SC, estimated that corruption on the Big Build cost Victorian taxpayers $15 billion in his report for the Queensland Commission of Inquiry into the CFMEU. The Victorian royal commission will test allegations through evidence and witness testimony. Its opening hearings are scheduled to run for two weeks, with about two dozen witnesses expected.

Normally, governments award major infrastructure through a documented procurement process. Contractors compete against stated requirements, including price, capability, safety and delivery plans. Agreements then define responsibilities, costs and performance standards. Government departments oversee delivery, while auditors, regulators and independent reviewers check spending, safety and compliance. These are general public-sector practices, not specific findings in this article.

Competition matters because it can expose poor value and reduce the risk of one organisation receiving special treatment. Independent safety checks can identify hazards without relying solely on project managers or unions. Financial checks can test invoices, labour-hire costs, conflicts and contract changes. Clear records also help investigators reconstruct decisions later.

The Gap Road allegations show why these controls matter. The commission will examine a union change, a preferred labour-hire firm, safety representatives and an alleged $2 million extra cost. It will also ask what the state knew and did. Strong oversight can protect workers, taxpayers and confidence in future projects.