The initiation of proceedings today by the Fair Work Commission (FWC) to appoint an external administrator of the CFMEU should be just the start and tougher measures are needed, according to Australia’s largest and most representative business network.

The Australian Chamber of Commerce and Industry (ACCI) says appointing an external administrator on its own is “inadequate” as there are distinct limitations to the FWC’s powers.

ACCI chief executive officer Andrew McKellar says more measures are needed to satisfy public confidence that the building and construction industry is free of intimidation and corruption.

“We need a full robust, transparent judicial inquiry with all the powers of a royal commission,” Mr McKellar said.

“It’s the only way to get to the bottom of these serious allegations.”

Mr McKellar said the Fair Work Commission does not have the power it needs to gather the evidence related to allegations of criminal activity.

He said the allegations against the CFMEU further expose the decision to abolish the Australian Building and Construction Committee (ABCC) as flawed.

“There needs to be an independent properly resourced authority with the power to enforce the rule of law on building sites,” Mr McKellar said.

Mr McKellar also repeated calls for the government to keep as an option the deregistration of the construction division of the CFMEU.

“It is our strong view that deregistration must not be taken off the table, the CFMEU’s disgraceful conduct warrants a consideration about their continued existence.”

To avoid a repeat of alleged corruption on building and construction sites, Mr McKellar said the processes and policies of procurement should also be looked at.

“We remain concerned that the procurement policies and procedures remain vulnerable especially in the states and territories, where the system enables groups like the CFMEU to wield influence over major contracts.”