Gangsterism runs unchecked, while our governments largely refuse to act

It is widely accepted that gangster-related violence, organised crime, and related corruption are currently at their worst levels in living memory.  Shootings, arson, home invasions and stabbings are now at epidemic levels in some cities, and Australia clearly has a bigger gangster problem than most comparable developed countries.  It is hard to identify much effective action by governments but, without policy change, the problem will remain and communities will feel increasingly unsafe. 

In Australia, the economic impact of gangsterism is greatest in non-residential construction.  This is due to the sector’s economic importance, the entrenched nature of building industry corruption, and the huge impact on costs of anti-competitive behaviour and intimidation by union bullies.  These higher costs get passed on to business, taxpayers, and ultimately the consumer in the form of higher build prices and higher commercial rents.  At the same time, the standover men and their allies rake in the money.

The tobacco wars, illegal drug trafficking, bikie gang crime, and (in some areas) rampant youth crime impact differently on the community.  Their main impact is to make ordinary citizens feel unsafe.  This is because the associated violence takes place in the suburbs, is highly visible, and is heavily reported in the media.   Perversely, the tobacco wars keep cigarette and vape prices low, but in doing so they deprive government and legitimate retailers of revenue.

If you go back 50 years, Australia had a historic problem with gangsterism, but it was only in very defined areas.  It was less institutionalised than now, and far less costly to the community. 

Australia was always noted for corruption on its waterfront (involving unions like the Waterside Workers' Federation of Australiaand the Federated Ship Painters and Dockers Union).  While these unions played a role in raising poor wages and conditions, they (especially the latter) also became associated with organised criminality.  While the move from manual handling to containerisation provided a natural end to most thieving on the waterfront, the Hawke Government and the Costigan Commission put paid to the FSPDU’s involvement with organised crime and tax evasion.  The Hawke Government also helped clean up the building industry by deregistering the Builders Labourers Federation (BLF), which followed a Royal Commission into corruption by the union.

Other historic areas of gangsterism involved illegal casinos, SP betting, organised prostitution, narcotics (less prevalent back then), and police corruption.  Most of these problems were greatly diminished by either legalisation (legalised brothels, legal on-line gambling, legal casinos) or by regulation.  More widely, a lot of Australia’s economic life up until the 1970s was also infected by widespread restrictive practices and unwarranted economic regulations, since greatly eased.

In the past, both sides of politics had gangster associations.  In NSW both the Askin government (1965 to 1975) and the Wran government (1975 to 1986) were tainted by corruption allegations.  In Queensland a Royal Commission into Police Corruption exposed corruption within the Bjelke-Petersen government (1968 to 1987) and within the Queensland Police.  Some corrupt ministers were identified, while Terry Lewis, Commissioner of the Queensland Police, was convicted and jailed.

Times have changed since then. 

The Rudd and Gillard governments were somewhat bland in their reaction to the excesses of the unions, including in the building industry but didn’t seem to noticeably worsen things.  On the other hand, Coalition governments from Abbott to Morrison vigorously attempted to curb the excesses of union power, especially in construction, though targeting of Bill Shorten introduced a political taint to their efforts.

The coming to power of the (left wing) Albanese government has heralded a big change in policy.  The Albanese government has systematically dismantled most of the institutions and laws policing the construction industry, shifted away from enterprise IR bargaining, and placed little priority on the need to curb criminality within unions.  Federal Labor and their Green and Teal allies have also shown reluctance to deport non-citizen offenders. 

State Labor has had a perceived permissive attitude towards crime, especially by certain immigrant groups and Indigenous youth.  This has included policies of soft sentencing and loose bail laws, and was most noticeable in Victoria in the Andrews/Allen era, and when Labor was in power in Queensland and the NT.

The Albanese government’s IR policy has been primarily oriented towards increasing union power, and both the Albanese and (especially) the Victorian Labor governments have been minimalist in reacting to Construction, Forestry and Maritime Employees Union (CFMEU) corruption.  They largely only reacted when they were forced to, and it has taken a change of Premier for the Victorian government to initiate its own royal commission into the union.