Commission shows need for industry bodies

Prime Minister Tony Abbott says evidence presented to the unions royal commission shows the need for new industrial watchdogs.

Mr Abbott said he would not comment on Labor leader Bill Shorten's appearance at the commission, but called for unions to be made more "honest" by passing legislation for a registered organisations commission and the Australian Building and Construction Commission.

"We need to strengthen our institutional arrangements so that the kinds of things we've seen highlighted at the royal commission can't happen in the future," Mr Abbott told reporters at Grafton on Thursday.