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Victorian Minister Questions Premier's Handling of Project Allegations

Created at 15 Jul · 4:11 AM1 source↑ Market-relevant
IN SHORT

Victorian Health Infrastructure Minister Melissa Horne has publicly requested assurances from the state's infrastructure agency regarding alleged government interference on a hospital project, diverging from Premier Jacinta Allan's stance that the reports were baseless. The minister's actions signal internal government divisions ahead of the November state election.

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Who's Involved

Melissa Horne
Victorian Health Infrastructure Minister
Jacinta Allan
Victorian Premier
CFMEU
Union involved in allegations
Victorian Infrastructure Delivery Authority (VIDA)
State infrastructure agency
Stephen King
Former executive director of VHBA

↳ Why This Matters

The public disagreement between a minister and the premier over corruption allegations on a major government project highlights internal divisions within the Victorian government, potentially impacting public trust and the government's standing ahead of the upcoming state election. It also raises questions about the effectiveness of current oversight mechanisms for infrastructure projects.

Key facts

  • Victorian Health Infrastructure Minister Melissa Horne publicly questioned alleged government interference on a hospital project.
  • Horne's actions signal a public break with Premier Jacinta Allan's denial of the allegations.
  • The allegations involve the CFMEU and a plastering contractor on the Royal Victorian Eye and Ear hospital project.
  • Horne sought assurances from the Victorian Infrastructure Delivery Authority (VIDA) that no wrongdoing occurred.
  • The minister requested advice on strengthening oversight of subcontractors.

Victorian Health Infrastructure Minister Melissa Horne has publicly diverged from Premier Jacinta Allan's stance on allegations of improper government interference in a hospital project, seeking assurances from the state's infrastructure agency. The report in Nine newspapers alleged that the government pressured public servants to dismiss a plastering contractor from the Royal Victorian Eye and Ear hospital project due to disapproval by the CFMEU.

Premier Allan had earlier dismissed the report, stating it had no basis and that the government had received advice that the dispute was between the head contractor and the subcontractor, not involving the government. However, hours later, Horne posted on Facebook a letter she sent to the head of the Victorian Infrastructure Delivery Authority (VIDA), describing the allegations as "alarming." In her letter, Horne stated that neither she nor her office had contacted the CFMEU regarding the project and sought assurance that VIDA had not directed the removal of contractors except where legally permitted.

Horne also noted that the project was completed before she became Minister for Health Infrastructure and that she was not the relevant minister at the time of the alleged interference. She highlighted existing government measures to protect infrastructure projects from illegal conduct, including enhanced powers for the Labour Hire Authority and the establishment of a dedicated complaints body and police taskforce. The minister requested advice on further steps to strengthen oversight of subcontractors, emphasizing the public's expectation that health infrastructure projects be free from impropriety and corruption.

The allegations were reportedly based on claims by Stephen King, former executive director of the Victorian Health Building Authority (VHBA). The report also noted that leaders of the police taskforce established to tackle corruption on the state's "Big Build" infrastructure projects have expressed concerns about their limited powers to investigate certain allegations, as some alleged wrongdoing may not constitute a crime. They also cited difficulties in finding witnesses due to fears of retaliation.

Frequently asked questions

The allegations suggest government interference in a hospital project by pressuring public servants to dismiss a plastering contractor due to disapproval from the CFMEU.

Premier Allan stated that the reports were wrong, had no basis, and that the government had received advice that the dispute was between the contractor and subcontractor, not involving the government.

Minister Horne wrote to the head of the Victorian Infrastructure Delivery Authority seeking assurances that no wrongdoing occurred and requesting advice on strengthening subcontractor oversight.

The next Victorian state election is scheduled for November.

What Happens Next

01The Victorian Infrastructure Delivery Authority is expected to respond to Minister Horne's request for assurances.
02Further details may emerge regarding the police taskforce's ability to investigate alleged wrongdoing.

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Cadence

How It Developed

A report alleged government interference on a hospital project due to CFMEU disapproval.
Premier Jacinta Allan stated the allegations had no basis and were incorrect.
Minister Melissa Horne sought assurances from the Victorian Infrastructure Delivery Authority (VIDA) regarding the allegations.
Horne stated her office had no contact with the CFMEU regarding the project.
Horne requested advice on further steps to strengthen subcontractor oversight on projects.

Sources

T1
Minister breaks ranks with Victorian premier by calling for explanation for alleged wrongdoing on projectThe Guardian

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