Prime Minister Tony Abbott says federal Labor must decide which side it's on when it comes to the issue of trade union corruption.
(Transcript from World News Australia Radio)
The government wants the return of the Australian Building and Construction Commission following new claims of union corruption and bullying in the industry.
Mr Abbott has questioned Labor's motives after the opposition said there's no need for the Construction Commission to be resurrected as current laws already cover the building and construction industry.
Amanda Cavill reports.
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The building industry has been hit by controversy following reports that union officials are making corrupt deals to help companies linked to organised crime secure construction contracts.
According to media reportsVictoria's desalination plant and the Barangaroo development in Sydney are among a number of projects that companies connected to major crime figures are involved in.
The reports implicate a number of Construction, Forestry, Mining and Energy Union members in New South Wales and Victoria in corrupt deals, including bribery and extortion.
The CFMEU has confirmed it recently sacked an organiser on the grounds of misconduct.
The federal government says the media report highlights the pressing need for the industry watchdog, the Australian Building and Construction Commission, to be re-established.
The Commission was replaced with a Fair Work inspectorate by the previous Labor government, and Labor and the Greens are now blocking legislation for a new Commission in the Senate.
But Labor's Richard Marles says there's no need for a such a commission because the previous Labor government introduced laws governing union transparency.
"Commissions are about unearthing a plethora of criminal activity giving rise to a whole range of prosecutions. That's their point. 66 million dollars was spent by the former Howard government in this industry which didn't result in a single prosecution at all. And it speaks everything about the way in which the Liberal Party seek to politicise what is a very serious issue and what needs to be dealt with by the relevant authorities. The relevant authorities are not politicians, not political forums. The relevant authorities are the police and that's where this matter ought to lie."
Federal Opposition leader Bill Shorten and Labor's workplace spokesman, Brendan O'Connor, have deep links to the union movement.
Mr Shorten led the Australian Workers Union and was supported by unions, including by the CFMEU, in the recent Labor leadership contest.
Before entering Parliament, Brendan O'Connor was assistant national secretary of the Australian Services Union and is the brother of CFMEU national secretary Michael O'Connor.
Mr Abbott says the construction industry has had an unfortunate history of corruption, illegality, thuggery and standover tactics.
He has told Fairfax Radio, the new reports demonstrate the need for the Building and Construction Commission to be resurrected, and the Opposition Leader must support it.
"The issue for the Labor Party and Mr Shorten is "who's side are they on? Who's side are they on?" Are they on the side of law abiding citizens, or are they on the side of people with a tendency to break the law? Are they on the side of getting to the bottom of this, or do they want to support a culture of cover up? This is a very serious question."
When he was John Howard's Workplace Minister Mr Abbott established the Cole Royal Commission into the construction industry, which led to the Building and Construction Commission being set up.
Before the election Mr Abbott said he would institute a judicial inquiry into the building and construction industry and has not ruled out establishing a Royal Commission into the latest allegations.
But president of the Australian Council of Trade Unions Ged Kearney says a Royal Commission is not needed.
"Tony Abbott, by suggesting that we need a Royal Commission because of these allegations, is absolutely absurd. Taxpayers' money would be wasted, 100 million dollars would be spent on what is nothing but a political witch hunt. A political stunt designed to take power away from unions, to actually attack workers, to attack unions, and to divert attention away from the fact that his government has no policies that will actually help workers."
Employment Minister Eric Abetz says there needs be a thorough investigation into the industry and the unions involved.
Senator Abetz says he finds it interesting that the union movement wants to block an inquiry.
"Well it's interesting that it's the same union officials that have been opposed to the Australian Building and Construction Commission that were opposed to the Cole Royal Commission about ten years ago when all the evidence that came out then. It's the same people now that are opposed to any suggestion of an inquiry or indeed the reintroduction of the Australian Building and Construction Commission. But guess what they are opposed to that as well. That is why I don't think the Australian people will listen to those arguments. All their feathers have now been plucked out, there's nothing left to fly with."
Senator Abetz has declined to give a time frame for when any inquiry might take place, saying the government will make announcements in due course.
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