Costigan Commission

The Costigan Commission (officially titled the Royal Commission on the Activities of the Federated Ship Painters and Dockers Union) was an Australian royal commission held in the 1980s.

Alleged criminal activities, including violence, associated with the Painters and Dockers Union
OutcomeEstablishment of the National Crime Authority
InquiriesRoyal Commission on the Activities of the Federated Ship Painters and Dockers Union
CommissionerFrank Costigan, QC
Inquiry period1980–1984
Constituting instrumentRoyal Commissions Act 1902 (Cth)
Links to Final Reports at aph.gov.au: Volume 1; Volume 2; Volume 3; Volume 4; Volume 5; Appendicies

Headed by Frank Costigan QC, the Commission was established by the Australian government on 10 September 1980 to investigate criminal activities, including violence, associated with the Painters and Dockers Union after a series of investigative newspaper articles that deatiled a high level of criminality. The union was represented by prominent Melbourne criminal lawyer Frank Galbally.[1] The Commission was seen by many as politically motivated, in keeping with a long-running anti-union agenda pursued by the governing party of the day.[2]

However the Painters and Dockers Union was notorious for its criminality and the Costigan Commission investigated numerous crimes, including a string of murders, vicious assaults, thuggery, tax-fraud networks, drug-trafficking syndicates, intimidation and more. Frank Costigan QC found the union since 1971 had "a positive policy of recruiting hardened criminals", who were essentially outsourced "to any dishonest person requiring criminals to carry out his project". The Commission noted 15 murders in which Painters and Dockers members were either involved, or in which the murder was related to union activities.

As the Commission's investigated further it found money laundering occurring on an industrial scale, extensive fraud on the social security and pension systems, and usage of the so-called bottom-of-the-harbour tax evasion scheme. Enquiries then started to lead away from union activities towards investigation of so-called "bottom of the harbour" tax evasion schemes. These involved the asset-stripping of companies to avoid tax liabilities and, although facilitated by criminals among the Painters and Dockers Union, the practice benefited wealthy individuals.[3]

The union

The Royal Commission's investigations soon revealed that many members of the union were involved in a wide range of criminal activities. Costigan observed that "The Union has attracted to its ranks in large numbers men who have been convicted of, and who continue to commit, serious crimes", and that "violence is the means by which they control the members of their group. They do not hesitate to kill".[4] Included in the crimes of Union members were "taxation fraud, social security fraud, ghosting, compensation fraud, theft on a grand scale, extortion, the handling of massive importations of drugs, the shipments of armaments, all manner of violence and murder". Despite the union's members being "careless of their reputation, glorying in its infamy", that very reputation attracted "employment by wealthy people outside their ranks who stoop to use their criminal prowess to achieve their own questionable ends".[5]

Broader investigations

In 1984, the Fairfax newspaper The National Times published leaked extracts of the Commission's draft report which implicated a prominent Australian businessman codenamed the "Goanna" in tax evasion and organised crime, including drug trafficking, pornography, and murder. Australia's richest man, media magnate Kerry Packer revealed himself to be the subject of these allegations, which he strenuously denied.[6]

Packer's own Bulletin magazine had been instrumental in the calls for a Royal Commission into the union. Packer's counter-attack was led by his counsel Malcolm Turnbull (later the Prime Minister of Australia) and accused the Commission of a misuse of power.[7] No charges were laid against Packer, and in 1987 Australia's Attorney-General Lionel Bowen formally dismissed the allegations.[6] However, mystery still surrounds Packer's receipt of a supposed "loan" of A$225,000 in cash from a bankrupt Queensland businessman. When questioned by the Commission, Packer testified, "I wanted it in cash because I like cash. I have a squirrel-like mentality".[8] Packer was therefore codenamed the "Squirrel" in the Commission's case studies, but the National Times changed this to "Goanna" to preserve anonymity.[9]

The Commission concluded in 1984, and the revelations of organised crime led to the establishment of the National Crime Authority.[10] The Commission also recommended changes to criminal law to deprive criminals of the profit from their crimes.

At Kerry Packer's state funeral in February 2006, his son James stated that the Packer family had never forgiven Costigan for what they took to be a smear. Costigan publicly responded that, as Royal Commissioner, he simply investigated, and did not make allegations or prosecute.[11][12]

Outcome

Although the Costigan Commission found extensive and numerous illegal activities by the Union it was not deregistered.

Rather the biggest achievement was as a direct result of the Commission was the establishment of a permanent body called the National Crime Authority, now called the Australian Criminal Intelligence Commission (ACIC), to investigate criminal enterprises and crimes.

References
  1. "A supreme advocate at criminal law". The Sydney Morning Herald. 29 October 2005. Retrieved 2 March 2019.
  2. "Editorial update". The Queensland Lawyer. Thomson Reuters (Professional) Australia Limited. 3 September 2012.
  3. "Costigan finds 'major fraud scheme'". The Canberra Times. 58 (17, 546). Australian Capital Territory, Australia. 13 October 1983. p. 1. Retrieved 3 March 2019 – via National Library of Australia.
  4. "THE COSTIGAN REPORT". The Canberra Times. 59 (17, 932). Australian Capital Territory, Australia. 2 November 1984. p. 13. Retrieved 3 March 2019 – via National Library of Australia.
  5. Costigan, Francis Xavier (1984). Royal Commission on the Activities of the Federated Ship Painters and Dockers Union, Final Report, Volume 3 (PDF). Australian Government Publishing Service. pp. 119–120.
  6. "Packer cleared of Goanna allegations". The Canberra Times. 61 (18, 802). Australian Capital Territory, Australia. 27 March 1987. p. 1. Retrieved 3 March 2019 – via National Library of Australia.
  7. "Packer begins legal action". The Canberra Times. 59 (17, 971). Australian Capital Territory, Australia. 11 December 1984. p. 1. Retrieved 3 March 2019 – via National Library of Australia.
  8. McClymont, Kate (11 July 2005). "Missing: a mate with a loan for Packer". Sydney Morning Herald.
  9. "Packer denies crime ties". The Canberra Times. 59 (17, 898). Australian Capital Territory, Australia. 29 September 1984. p. 1. Retrieved 3 March 2019 – via National Library of Australia.
  10. "National crime body to take over from Costigan inquiry". The Canberra Times. 58 (17, 572). Australian Capital Territory, Australia. 8 November 1983. p. 1. Retrieved 3 March 2019 – via National Library of Australia.
  11. Shiel, Fergus (21 February 2006). "Costigan hits back at criticism". The Age.
  12. "Costigan hits back at Packer 'ignorance'". Sydney Morning Herald. AAP. 20 February 2006.
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