A construction company official approved a $250,000 payment to ensure industrial peace on the $95 million National Gallery of Victoria (NGV) refurbishment, the building industry Royal Commission heard yesterday.
Baulderstone Hornibrook construction manager Graham Milford-Cottam was sacked for failing to gain authorisation for the payment to a middleman promising to help strike a workplace deal with electrical workers, the inquiry heard.
Mr Milford-Cottam had previously overseen Melbourne's huge Colonial Stadium project which, he said in a statement to the commission, was plagued by industrial disputes, with one Electrical Trades Union (ETU) shop steward the cause of the problems.
In late 2000, the ETU refused to sign a site agreement for the NGV improvements unless shop steward Adrian McNamara officiated on the project.
Baulderstone refused, instead negotiating with consultant Peter Barker to convince the ETU to agree to a site agreement without its "difficult" shop steward.
Counsel assisting the commission, James Renwick, told the hearing Mr Barker met Dominic "Mick" Gatto, who had convictions for offences including burglary, assaulting police, possessing firearms, and obtaining financial advantage by deception.
"Mr Gatto is a well-known Melbourne figure, often mentioned in the press," Mr Renwick said.
Mr Barker also met with David Hedgcock, who runs a company providing security and crowd control and who has firearms, theft and assault convictions.
Mr Renwick told the commission ETU Victorian secretary Dean Mighell signed the site agreement on December 27 in the presence of Mr Barker and Mr Gatto.
Two days later, Mr Barker showed Mr Milford-Cottam the signed agreement before demanding $250,000 for his services.
The commission heard the payment was made without the approval of Baulderstone Hornibrook's southern region director Hedley Davis who had earlier vetoed the plan.
In evidence today, Mr Davis said that, when challenged, Mr Milford-Cottam said he feared for his wellbeing if he did not approve the payment.
"His response was that we should pay, and he expressed some concerns about it, that people associated with this ... deal were the sorts of people that break legs, were his words," Mr Davis said.
However, under questioning from counsel assisting the commission, Richard Tracey, QC, Mr Milford-Cottam denied he was under any pressure to make the payment.
"The man was due the money," he told the hearing. "He was entitled to be paid - I paid him."
The company sought the resignation of Mr Milford-Cottam, an employee of 13 years' standing, and announced in a memo to staff: "After a serious disagreement in management processes, Graham (Milford)-Cottam has agreed to leave the company. His resignation is immediate."
Source: AAP