Queensland’s probe into the CFMEU and misconduct in the construction sector has outlined four lines of inquiry into alleged institutional corruption by the union, with one involving former state Labor minister Grace Grace.
Having already heard from the CFMEU administration, union and industry figures, the commission of inquiry returned on Tuesday to kick off another three-day block, this time to ask questions of current and former Workplace Health and Safety Queensland staff.
In his opening remarks, senior counsel assisting, Patrick Wheelahan KC, said the questions related to a case study “that there was regulatory capture of the Workplace Health and Safety Queensland by the CFMEU during the period that Ms Grace Grace was the minister for industrial relations”.
“We use the term ‘regulatory capture’ in this case study to mean a form of institutional corruption,” he continued.
“That is, in this case, Workplace Health and Safety Queensland, whose legitimate objectives are to protect the health, safety and welfare of all individuals affected by work, became improperly dominated by the interests of the CFMEU above others, and was weaponised by the CFMEU for its illegitimate industrial control purposes in the construction industry.”
This would add to three other instances of regulatory capture already detailed in part before the inquiry, or still being looked into, Wheelahan said.
Such matters included the development and implementation of the Best Practice Industry Conditions policies; a memorandum of understanding between police and the Office of Industrial Relations; and the Queensland Building and Construction Commission.
The Crisafulli government launched the $19.7 million probe after reporting by this masthead and 60 Minutes into criminality, corruption and misconduct in the union and sector nationwide.
Wheelahan said the CFMEU sought capture through improper external pressure on Workplace Health and Safety Queensland staff, and internal pressure via the union’s “misuse of its position on the Work Health and Safety Board” and “inappropriate relationships with public servants”.
The outcome of this alleged regulatory capture, Wheelahan said, was the CFMEU was “treated beneficially when compared to other stakeholders” and created a “culture of fear” that if people did not do the bidding of the CFMEU, they would suffer “detrimental consequences”.
“Evidence will be led that under the leadership of [former Workplace Health and Safety Queensland construction compliance and field services director] Helen Burgess, the CFMEU was unduly prioritised and favoured, both in terms of health and safety notices and site access,” Wheelahan said.
He said Burgess – who, the inquiry heard, was in a close personal relationship with former CFMEU state president Royce Kupsch, and is the subject of ongoing Crime and Corruption Commission investigations – also “worked hand in hand with the CFMEU” from late 2018.
The inquiry was shown a previously unpublished 2022 submission from 14 then-current and former Workplace Health and Safety Queensland staff to a corruption watchdog report into the influencing of decision-making in the state. It alleges Burgess and two “sidekicks” were “complicit in CFMEU misconduct”.
“Finally, it alleges at least a failure to act by minister Grace Grace,” Wheelahan said.
All signatories had said they were willing to give statements or be interviewed by any investigative agency, or a royal commission. The CCC told the group it would not take action against Grace due to the lack of evidence of a criminal offence.
On the broader allegations, the CCC told the signatories that anyone with allegations should make further statements to the agency. Inquiry commissioner Stuart Wood said this could be read “both ways” – that it was either up to the CCC, or the signatories, to take further action.
In a statement issued after the allegations raised against her, Grace said it would be inappropriate to comment on the inquiry, but noted that Queensland Labor placed the state-based CFMEU into administration and had supported the probe since its inception.
Workplace Health and Safety Queensland operations manager Deborah Dargan, who began her evidence on Tuesday, said investigations she had undertaken and put forward for prosecution around right-of-entry breaches stopped about the time the Palaszczuk government was elected.
At this point in 2015, priorities shifted and complaints from the union also began being treated as the highest priority for inspectors to respond to, regardless of the risk of the complaint.
After Burgess became construction compliance and field services director in 2018, this started happening more frequently, Dargan said.
Asked why this was happening, she said a colleague responsible for allocating jobs told her: “It’s what Helen wants.”
Since Burgess’ departure in late 2023, conditions had “improved significantly”, Dargan’s sworn statement said.
The inquiry continues on Wednesday.
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