ACCI chief executive officer Andrew McKellar interview on Sky News with host Cheng Lei

ACCI chief executive officer Andrew McKellar interview on Sky News with host Cheng Lei

20 February 2026

Topics: CFMEU, calls for an independent inquiry, Victorian government

Transcript:

Cheng Lei:

Joining us is the Chief Executive of the Australian Chamber of Commerce and Industry. Andrew McKellar. Hi there, Andrew. Always good to see you. What do you think of the state government's stance on this?

Andrew McKellar:

Hello Lei great to be with you. Look, the longer this goes, I think the more concerning it is. It is, I think really worrying that the Victorian government just appears to be obfuscating on this issue. There's been a lot of evidence there for a long while, and I think what's coming to light now shows that the government really has dithered on this. I think there's a couple of potential interpretations or explanations for what has happened, but either way, it's not good. And certainly there needs to be transparency. We need to have an independent inquiry. We need to follow the lead that the Queensland government has provided in this case. And if that's not done by the Victorian government, then it needs to be done federally.

Cheng Lei:

What are your members saying? What is a body like you, how does it feel about business confidence when you have major redactions from this report into massive corruption?

Andrew McKellar:

Well, I think it calls into question, the process that has been undertaken. We've said all along that a number of things needed to be done. We supported the appointment of the administrator. We said that was a good first step. We've always said there needed to be an independent inquiry. There needs to be an effective regulator in place with enforcement powers with the resources to enforce the law. We need to ensure that the standards in terms of who is a fit and proper person who has access to work sites on behalf of the union, that those standards are lifted so that we don't have people coming out of prison one week and turning up on a work site the next week as a health and safety delegate. And if all of that fails, then you've got to have the opportunity or the power there to deregister the union. So from a business point of view, we're looking at this. We're seeing that this is costing taxpayers a lot of money. One of the areas in the Australian economy where productivity is the worst, it's in construction and utilities, and this is one of the reasons why that sector is performing as badly as it is.

Cheng Lei:

And what do you make of the rationale coming out of the state government so far saying that some of the material wasn't sufficiently well-founded or tested. That's why they were taken out. And that a royal commission isn't necessary.

Andrew McKellar:

It simply doesn't wash. It's not credible. The evidence is there. It's growing by the day. We're seeing coming out of the inquiry process in Queensland that that's uncovering more evidence now. And the Victorian government has been implicated in this. So you really have to ask yourself, why is the Victorian government not acting? It can only be a couple of explanations for why that is the case. Neither of those offer any comfort at all. So really the Victorian government has to take action. It has to put in place an independent inquiry with sufficient powers to draw out this evidence and to restore public confidence. If that doesn't happen, then really the federal government has to step in and draw a line and take action on its own account.

Cheng Lei:

What's it going to take to either have action at the state level or the federal level? Because I get the sense that if we wait this out, there'll be another news headline and people will be distracted.

Andrew McKellar:

Well, I think this issue is not going away. We've seen this has been going now for more than a year, well over a year. Sure. From time to time it drops out of the news, but it's coming back regularly. There is a process in Queensland and that is bringing evidence forward. So I think we will continue to see that happen. But the longer that the Victorian government just obfuscates on this issue, the worse it is going to be. It's already very bad. And I think the risk is if they don't take action, then the public has really got to ask questions because I think there's got to be a major loss of confidence in the capability, in the competence of the Victorian government if they're not addressing those issues. And if it's not competence, that's the issue. Then you've got to question whether there's another motivation that is causing them not to ask those proper questions.

Cheng Lei:

What motivation would that be? You want to spell it out for our viewers?

Andrew McKellar:

Is it intentional? And if it's intentional, then it amounts to corruption. And if you're going to cover up corruption to that extent, then you have to ask the question, is somebody implicated in that? Are they trying to cover for a given reason? And at the moment, this is looking like the mother of all coverups.

Cheng Lei:

What sort of behind the door discussions do you think are taking place right now, the state government, about what to do with this?

Andrew McKellar:

Well, I'm sure at some level there will be people within the state government who are really questioning and saying, can we afford to have this going on? They're coming into a state election later this year. Do they want this sort of major question mark and distraction hanging around the government? But ultimately, someone has to take responsibility. Somebody has to stand up and lead on these issues. So I think there would be a lot of pressure within the government and around the government as to whether or not they can continue to afford to let this drag on and continue to give the impression to the public that they are not serious about taking action for something that appears to have cost taxpayers at least 15 billion dollars. It could be double that amount for all we know and the questions around integrity and the permeation of corruption throughout the system.

Cheng Lei:

Yeah, stand up or stand down. Thank you so much for your time as always, Andrew McKellar.

Andrew McKellar:

Thanks Lei. Thank you.

Cheng Lei:

Chief Executive of the Australian Chamber of Commerce and Industry.