Tuesday, 17 February 2026
Questions without notice and ministers statements
Construction industry
Please do not quote
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Questions without notice and ministers statements
Construction industry
Bev McARTHUR (Western Victoria) (13:16): My question is to the Treasurer. Last week it was revealed in the Watson report that the CFMEU has cost the Victorian taxpayer at least $15 billion out of a total Big Build spend of $100 billion. Fair Work Commission general manager Murray Furlong also said on oath at a federal hearing last week that of the 15 per cent cost blowout ‘that figure is consistent with what I’ve heard from officials from the Victorian government’ and that inflated costs may have gone up to 30 per cent. You have been a minister in this government for seven years, you are a former Attorney-General and you are the current Minister for Industrial Relations and the Treasurer. How did your government’s officials know about this level of corruption when you did not?
The PRESIDENT: Before the minister answers, you can only direct your question to one portfolio that the minister currently holds, so is it to the Treasurer?
Bev McARTHUR: The Treasurer.
Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (13:18): I thank Mrs McArthur for her question – although, Mrs McArthur, the way you have framed your question is confirming facts that have not been confirmed, so I do take issue with the way that you have assessed your question. But in any event, your question contains a claim that is a claim that was removed from the report by the independent administrator, who supported that with a statement that said he was ‘not satisfied that they were well founded or properly tested’. Mrs McArthur, it is well known – and I think we have had the conversation in this chamber before – that the cost escalations within the construction industry have very much been driven by things such as increased wages because of labour shortages and indeed increased costs in relation to raw materials. Fortunately, some of that is starting to come off, but –
Georgie Crozier interjected.
Jaclyn SYMES: President, I take issue with the interjections of Ms Crozier, and I would ask her to withdraw.
The PRESIDENT: Ms Crozier, can you withdraw?
Georgie Crozier: I withdraw the fact that I said the Treasurer is corrupt. I withdraw.
Jaclyn SYMES: Thank you. It would be an opportunity to bring some other people’s comments in relation to this matter to the chamber. The economist Saul Eslake has said that ‘the engineering construction implicit price deflator – a measure of price growth used by Australian Bureau of Statistics – showed costs in Victoria went up by 36.8% between December 2014 and September 2025’.
David Hayward, professor of public policy and social economy at RMIT University, said there does not seem to be any reason to believe criminality was as financially significant as the redacted Watson chapters suggest. He said overruns were largely due to increased materials and equipment costs and issues with particular projects, which is exactly how I commenced my answer to Mrs McArthur’s question.
Bev McARTHUR (Western Victoria) (13:20): Well, Minister, the redacted section of the Watson report says that:
There is no doubt the government knew about the rising problem – but it is equally clear that the government did nothing about it.
Minister, the press knew, the public knew, the workers knew, the strippers knew, the drug dealers knew, the bikie gangs knew, Mick Gatto knew, the departmental officials knew, so how can you still look Victorians in the eye and say you did not know?
Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (13:21): Mrs McArthur, you are conflating issues of criminality, which we take extremely seriously. As I have said in this chamber before, there is zero tolerance for criminal and illegal behaviour on any government worksite, and that is why we have acted in that regard. You are conflating the issue of criminality with the fair wages and conditions of hardworking construction workers who have been delivering the projects that Victorians rely on.
Members interjecting.
The PRESIDENT: Order! Questions get asked, and then the side of the chamber that has asked the question just starts yelling. Seriously, people should listen to the answers.
Jaclyn SYMES: As I was saying, Mrs McArthur, before I could not hear myself answering, any criminality should be reported in the appropriate way. Victoria Police are responsible for responding to corruption. But as you have indicated, this government has taken action – decisive action – to ensure that we have the systems in place to ensure that referrals can be made in the appropriate way.