National

Ex-minister responds to 'shocking' union threat claim

Apr 23, 2026

Grace Grace (file image) — Grace Grace denies claims she tried to bully a developer into co-operating with a rogue union. -AAP Image

A former state minister has denied claims she threatened to tear up a developer's contract for a major project if he did not co-operate with a rogue union.

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Grace Grace has come under fire from Queensland's Liberal National government after the allegation was made at the state's CFMEU probe.

It's alleged Ms Grace, the former Labor government's industrial relations minister, threatened to terminate the contract relating to a $1.6 billion Toowoomba bypass project in 2018 if the developer did not work with the union.

Ms Grace on Thursday responded to the claims aired at Queensland's Commission of Inquiry into the CFMEU.

"I deny the allegations," she told reporters.

"I will let the commission continue with its processes and all the evidence from this issue will come out at the appropriate time.

"As the matter is before the commission, that's all I can really say. I have not yet been called, but if so, I will then put my side."

Jose Sanchez - a former Acciona project director for the Toowoomba Second Range Crossing - made the allegation at the inquiry, saying Ms Grace was "aggressive".

Asked if Mr Sanchez was lying, Ms Grace said: "I am saying I deny the allegations."

Deputy Premier Jarrod Bleijie took aim at Ms Grace on Wednesday, demanding she "front up" and respond to the allegations.

"These revelations are absolutely shocking," he told parliament.

He went on the attack again in parliament on Thursday, before Ms Grace's doorstop, demanding the opposition "explain themselves".

"The opposition have said they will not be offering a running commentary on the Commission of Inquiry, but it's not good enough for them to literally run from scrutiny," he said.

Geoffrey Watson SC, whose investigation into the union triggered the CFMEU probe, was grilled over the reliability of his account on Thursday.

It emerged Mr Watson had failed to record testimony by any of his 56 witnesses, relying only on handwritten notes.

He insisted witnesses would not be frank with him if they were being recorded and became irate when challenged by Ruth O'Gorman, counsel for former union boss Michael Ravbar.

Inquiry chair Stuart Wood intervened, telling Ms O'Gorman she could rein in Mr Watson, describing him as argumentative and non-responsive.

"It's up to you how you wish to handle this witness," he said.