For every litre of milk sold by home-delivery in Canberra, 0.9 cents is going to the Transport Workers Union as part of a deal brokered with the vendors and the ACT Milk Authority in 1993 to settle an industrial dispute.
More than $150,000 has been paid to the union by the vendors and reimbursed by the authority in the form of allowing higher prices for milk.
The money is still being paid, but is now described as a consultantcy and the authority and the union say it is for services that have stood up to detailed scrutiny and competitive tender.
However, according to documents received by The Canberra Times, the matter has been referred to the Australian Federal Police by the head of the Chief Minister’s Department, John Walker, apparently of his own motion based on legal advice because the government is in caretaker period.
Mr Walker has asked the police to investigate whether the payments are “”inappropriate and possibly illegal payments to the union to ensure industrial harmony”.
The ACT secretary of the TWU, Trevor Santi, said he was unconcerned because the payments had been thoroughly scrutinised and were for consultantcy services for advice on industrial relations, legal matters and occupational health and safety. The TWU had tendered below two others offering the same advice.
Continue reading “1998_02_february_milk deal”