In July 1990 the Greiner Government set up the Gyles Royal Commission of Inquiry into the construction industry in NSW.  It ran for 19 months and cost more than $20M (1991 money).   

It delivered its final report in May, 1992.

On 27 May 1992 The Canberra Times published the following story.

During May, 1992 Gillard was in correspondence with the WA Corporate Affairs Commissioner.  It's hard to believe that the Gyles report didn't prompt her to ask more questions of Wilson.  Gillard was an IR professional and reports about the Gyles Commission were front page news.  It would have taken some effort to miss reading about his findings and recommendations. 

So read on as if you were an IR lawyer who had just been asked to set up an "unconventional" slush fund.  Any bells ringing?   Your slush fund says its purpose is to "encourage workplace reform for workers in the construction industry" (as per the 6 March 1992 ad) or "development of changes to work to achieve safe workplaces" (as per the incorporation application made on 22 April 1992) but you knew all along it was really "a slush fund to raise money for Bruce's personal election expenses".

On 28 May, 1992 The Canberra Times ran this story (click here for the full story, it's a partial grab below):

On 13 June, 1992 the following story was published - just as Wilson and Gillard awaited the arrival of their Certificate of Incorporation for their Construction Industry slushy.

In March, 1992 authorities started to lay criminal charges as a result of the Commission's findings.   This story is from Friday, 20 March, 1992.

None of the reports, recommendations, charges or widespread community outrage slowed Gillard or Wilson down one bit.   None of it triggered any questions from her.  It beggars belief.

No wonder Wilson was attracted to the construction industry.

Here's part of a speech given by John Murray of the Master Builders Association in 1998 about Commissioner Gyles's findings on the construction caper in 90-92.

As part of the Royal Commission into Productivity in the Building Industry in NSW,
Commissioner Gyles inquired into and reported on the extent of illegal activities in the
construction industry.  Whilst the phrase “illegal activities” has a wider meaning than “crime”,
a vast majority of the illegal activities found to exist by Commissioner Gyles involved criminal
conduct to some extent.  His Report was released in 1992.  Given the comprehensive nature of
the Report this paper proposes to examine his findings and to analyse what changes have
occurred since the release of his document (this speech given in 1998).

The Table of Contents for that part of his Report dealing with illegal activities included the
following:

• physical violence and intimidation;
• corrupt, improper and irregular payments;
• fraudulent conduct;
• theft;
• extortion;
• taxation;
• stoppages, bans, boycotts and secondary boycotts;
• sabotage and bomb hoaxes;
• restrictive trade practices;
• unfair practices;
• engagement of reputed professional criminals ; and
• breach of safety and award provisions by employers.

In reference to this table of contents Commissioner Gyles stated

“The table of Contents for this part of my Report gives the conspectus of the nature
and extent of illegal activities that occur within or in relation to the building industry in
NSW.  Reference to it relieves me of the necessity to summarise the types of activity
involved.  They range from physical violence and a threat of physical violence at one
end to petty pilfering of building materials at the other.  In between there is a great
variety of illegal activities, essentially economic in nature or effect, from collusive
arrangements involving giant corporations and industry associations to labour-only sub
contractors paying small amounts of graft to project managers.  Those involved range
from managing directors of large corporations to labourers on site.  No sector of the
industry has been immune.”

Commissioner Gyles specifically found that there was evidence of wide spread theft of building
materials and plant and equipment.  Scaffolding was one example that was followed up in
other hearings.  He concluded that in respect of scaffolding that there must be an active and
well organised black market in operation.

Commissioner Gyles also stated that there was strong evidence that members of trade unions
in the industry were prepared to use and threaten the use of direct industrial action and the
consequent economic harm inflicted on companies and individuals to achieve their objects for
the time being regardless of and often in breach of the law.

Perhaps most disturbingly he made the following conclusions in relation to employers in the
industry.  Commissioner Gyles stated

“there is evidence of widespread lack of integrity and probity amongst the management
of contractors and others involved in the industry...This is reflected, for example, in the
offering of dishonest inducements to union officials, workers, council inspectors,
Workcover inspectors and those able to procure work; soliciting or accepting
dishonest inducements from those seeking work; involvement in collusive and anticompetitive behaviour, including surreptitious receipt and payment of special and
unsuccessful tenders fees; the exploitation of the subsidy of a group apprenticeship
scheme; the manufacturing and use of false documents to cover up illicit or unlawful
payments; the obtaining of free or discounted work and materials, either in fraud of the
employer or the revenue, or as a result of pressure on sub contractors and suppliers;
the engagement of persons of ill repute to solve industrial or commercial problems by
actual or threatened violence or other illegal means; continuing to trade whilst
insolvent in fraud of creditors; and cutting corners and safety regulation legislation and
industrial awards requirements”.

Commissioner Gyles went on to state that some of the behaviour listed above was explained
by, if not excused by, the activities of trade unions.
Commissioner Gyles also stated

“Observance of the law and law enforcement in general play very little part in the
industry.  The law of the jungle prevails.  The culture is pragmatic and unprincipled.
The ethos is to catch and to kill your own”.

Commissioner Gyles concluded this part of his Report by saying:

“The effect of illegal activities upon the culture of the industry and upon the
commercial and industrial morality of participants in it is, in the long run, greater than
the direct economic consequences.  Once it becomes acceptable to break, bend, evade
or ignore the law and ethical responsibilities, there is no shortage of ways and means to
so.  Those who pay and suffer the other consequences of disruption  in the end are the
public”.

Much more soon.