Corruption in the Building Industry

18 September 2024

I note the speech of the Member for Liverpool and, as a former student of Bonnyrigg High School who has two kids there currently, I also acknowledge Mr Bryce. He has done a fantastic job. The building industry, one of the cornerstones of our economy, has long been beset with dodgy dealings, corruption and blatant disregard for safety and ethical standards. However, if we expect to clean up the industry with some old‑fashioned union bashing, we are delusional. To ignore the rest of the industry is disingenuous and does a disservice to the community. A cancer can only be genuinely cured when we rid it from the entire body. Let me be crystal clear: I have zero tolerance for corruption and criminality anywhere. My record as a councillor and my time in this place makes that very evident.

Despite the many column inches, prime‑time exposes and hot air from the shock jocks, we still see bad actors cutting corners, bending the rules and putting profits ahead of people across the entire construction industry—and that is happening all over the world. The word "Grenfell" is permanently etched into our collective consciousness. What was once the name of an unassuming tower block in London is now a symbol of greed, incompetence and lack of oversight in the building industry—and the tragic location where 72 lives were lost. The inquiry into Grenfell recently handed down its final report. Chair Sir Martin Moore‑Bick stated, "The simple truth is the deaths that occurred were all avoidable."

The inquiry put the blame squarely at the feet of systematic dishonesty by multimillion-dollar companies and decades of failure by governments. It is a morbid reminder of what happens when we allow weak regulations to go unchecked and unchallenged in the absence of a strong union movement. Thankfully, we have not seen a similar tragedy here, but we do continue to deal with the fallout from flammable cladding. Names like Opal Tower and Mascot Towers point to the local consequences of weak regulation and corner cutting. In recent years we have seen stories of dodgy certifiers, the exploits of Jean Nassif and the firebombing of friendlyjordies' home. Last month a Sydney property developer was exposed in a damning case of money laundering linked to a tax avoidance scheme. Ultimately he was forced to repay $11 million.

Just this weekThe Guardian revealed that two individuals convicted of dishonesty offences have been allowed back into the real estate industry within the usual 10-year prohibition period. Gaps in the law have allowed convicted money launderers back into the industry. Hundreds of complaints were lodged involving agents operating without a licence. Investigators found multiple agents selling properties without being listed on public registers. My own community of Leppington, which has shouldered a significant share of the State's housing growth, has not been spared the horror stories. My office has been inundated with reports of shonky builders—one of which I will have more to say about soon.

The Government acknowledged those issues last November in Leppington, when the Premier, the Minister, the Building Commissioner and I announced an expansion of the Building Commissioner's powers. While those important changes were a response to past scandals, they also had an eye on the future. At that announcement the Premier said:

We're delivering more homes across the state, but we won't let quantity get in the way of quality.

Tackling the housing crisis is one of the cornerstones of this Government's agenda. Transport oriented developments, first home buyers grants, more rights for renters, reforms to the planning process and the biggest investment in social housing we have ever seen will assist people to enter the housing market. However, the Government also recognises that this will increase the need to keep shonks out of the industry. But we cannot do it alone. Unions like the CFMEU play a crucial part in holding the industry to account. They advocate for safer working conditions, fair wages and higher standards in construction.

Without the strength of organised labour, there is little to no counterbalance to the power of the almighty dollar that many developers flagrantly wield. We must stamp out corruption and criminality across all elements of society, including the entire building industry. We must also hold everyone to the same standards—whether they wear a hard hat on a construction site or an Armani suit in the boardroom. The building industry must be cleaned up from top to bottom, and that means better regulation, a commitment to putting people before profit and, most importantly, strong and reputable unions.