[4] Fundamentally, the Code and the Guidelines were an attempt to regulate the conduct of industrial relations on construction projects funded by government, through the medium of contract rather than legislation.
On the other side, led by Victorian and WA Divisional Branch Secretaries, Martin Kingham and Kevin Reynolds, forces associated with the old Builders Labourers Federation were seeking to exert greater influence within the union.
These allegations were aired on the ABC 4Corners program, and widely cited by government ministers as justifying the calling of a royal commission.
[6] In April 2001 the Minister for Workplace Relations, Tony Abbott, asked the Employment Advocate to provide a report "regarding behaviour in the building industry".
[7] The report alleged that, "ill willed" people have ample opportunities to "cause major disruption to a site" by misuse of occupational health and safety procedures.
The report alleged misuse of various industry funds, including trust funds established to preserve employee entitlements such as leave pay and superannuation: "There have been allegations that senior union appointed trustees have sought to influence the investment decisions of at least one of these trusts for political and/or industrial purposes."
Most dramatically, the report alleged that union officials accepted secret commissions, engaged in bribery, and criminal corrupt conduct.
On 29 August 2001, the Governor-General issued Commonwealth Letters Patent pursuant to "the Constitution of the Commonwealth of Australia", the Royal Commissions Act 1902 (Cth) and other enabling powers" appointing The Honourable Justice Terence Cole RFD QC as the sole Commissioner[9] and the commission's terms of reference.
The commissioner was directed "...to inquire into certain matters relating to the building and construction industry..."[10] Subsequent to the Royal Commission, Cole was appointed as an Officer of the Order of Australia in 2005 for "service to the judiciary, particularly judicial administration, to reform of the building and construction industry, and to the community through the Australian Naval Reserve and conservation and arts organisations.
[15] At the opening of public hearings in October 2001, the Commission published a proposed 'practice note' which would govern how parties were to be granted leave to appear before it.
The first, brought in the name of Martin Kingham and others, was conducted on behalf of the Victorian Building Unions Divisional Branch of the Construction and General Division of the CFMEU.
The second, brought in the name of Andrew Ferguson and others, was conducted on behalf of the NSW Divisional Branch of the Construction and General Division of the CFMEU.
The Court rejected the contention that the Commissioner by the First Report made findings which directly and adversely affected the interests of the applicants.
On 25 March 2004, the Minister announced that the taskforce would become a permanent body, and would 'continue to operate until the Building and Construction Industry Improvement Bill is passed by this Parliament',[35] and the ABCC established.
The Building and Construction Industry Improvement Bill 2003 was tabled in Parliament;[36] with an Explanatory Memorandum circulated by Minister.
[45] The Act enabled the establishment of an independent statutory authority, the Office of the Australian Building and Construction Commissioner (ABCC).