Victorian premier blames ‘inflation not corruption’ for Big Build cost blowouts amid fresh allegations

Victorian premier Jacinta Allan said calls for a royal commission into alleged Big Build corruption was ‘a call for delayed action’. Photograph: Diego Fedele/AAP View image in fullscreen Victorian premier Jacinta Allan said calls for a royal commission into alleged Big Build corruption was ‘a call for delayed action’. Photograph: Diego Fedele/AAP Victorian premier blames ‘inflation not corruption’ for Big Build cost blowouts amid fresh allegations Jacinta Allan resists calls for royal commission into state’s infrastructure projects as pressure mounts following new reports Follow our Australia news live blog for latest updates Get our breaking news email , free app or daily news podcast Jacinta Allan has resisted growing calls for a royal commission into alleged corruption on Victoria’s $100bn Big Build, declaring “inflationary pressures on projects is not corruption”. It comes after an investigation by Nine newspapers and 60 Minutes reported allegations that money from the state’s Big Build infrastructure projects was being paid to gangland figures and that the state government was warned about cost blowouts due to Construction, Forestry and Maritime Employees Union (CFMEU) demands. Nine’s Building Bad investigation reported that infrastructure companies repeatedly warned the Victorian government between 2022 and 2024 that CFMEU demands had inflated labour costs on the Metro Tunnel . Sign up for the Breaking News Australia email The leaked consortium’s report, referenced in Nine’s Building Bad investigation , warned the state government about cost blowouts by 22% above what would be required under existing industry norms in Victoria. It estimated $196.4m of its labour costs were driven wholly by union-backed staffing and outlined how contractors were forced to add on additional non-productive workers. The consortium stated it caved to the CFMEU’s demands with the Labor government’s backing, Nine reported. Allan was the minister who oversaw the state’s Big Build program between 2018 and 2023 before becoming premier. Speaking at a press conference on Monday, Allan said she had not read the consortium’s report. Referring to the reporting about the Metro Tunnel, Allan said union members cost more because their wages came with “better” and “safer” conditions. “That is a cost, but that is a cost that is about supporting those workers to do this work to deliver projects,” she said. Allan said “fair wages” for union worker were part of the inflationary pressures on projects like the Metro Tunnel. “Inflationary pressures on projects is not corruption,” she said. The Nine investigation also revealed that money from the state’s Big Build infrastructure projects continues to flow to gangland figures after an almost two-year attempt by the government to clean up corruption. Asked if corruption was still occurring on the Big Build, Allan said she accepted that allegations had been made and that those who “claim to have evidence” should refer it to Victoria pol