‘Direction doesn’t align’ – Kim Kelly resigns from QRIC over governance concerns

Highly regarded official Kim Kelly has quit the Queensland Racing Integrity Commission in frustration at proposed changes to the governance structure of the three codes of racing’s stewarding body in the state.

Among the 110 recommendations in the state government-ordered The Next Lap report aimed at future-proofing thoroughbred, harness and greyhound racing in Queensland is for the transfer of several of QRIC’s major functions to Racing Queensland at a corporate level.

Released last December, the Crisafulli-led Liberal National government accepted 79 of the recommendations made in The Next Lap report, including the moving of some QRIC functions to the principal racing authority.

QRIC’s deputy commissioner for the past two years, Kelly on Friday tendered his resignation, his decision first reported by Newscorp.

“I’ve got very clear views on what integrity functions look like. I’ve got clear views on what independence looks like, on what good governance looks like, what transparency looks like, and I have my concerns that the direction that Queensland racing is heading in doesn’t align with my views on those matters,” Kelly told The Straight. 

“So it’s best for all the parties for me to bow out and for those matters to be resolved by somebody other than me.”

The independent Queensland Racing Review and the authoring of The Next Lap report was undertaken by former Australian Turf Club chair Matthew McGrath for the state government.

Since its release, McGrath has subsequently been appointed chair of Racing Queensland.

Kelly said he and some colleagues had contributed to the review during the consultation process, but had no inkling of the recommendation that would follow.

“There’s concerns on my part in respect of you’ve got that hybrid model that was recommended and accepted by the government where corporate functions are to be folded into Racing Queensland,” he said. 

“Wherever you get that dependency, there has to be an automatic loss of independence. So, the antithesis of independence is dependency. 

“I’ve got very real concerns where a regulator has to rely in some part on a commercial body for those types of things like finance, like manpower, like business services type of arrangements.

“They’re matters that don’t sit well with me in the Australian landscape and I have worked in organisations where commercial and regulatory have been under the same roof, but in those sort of environments, there hasn’t been the same competition for the betting dollar and for turnover and for the hearts and minds of people, so to speak. 

“Whereas here in Queensland, you’ve not only got an internal competition between racing (codes) and other forms of gambling … you’re in competition (with other states). 

“I believe those commercial and regulatory types of considerations, if there’s a blending of those in the Australian environment, it creates an inherent conflict of interest, which can’t be mitigated against.”

The departure of Kelly, who joined QRIC as its deputy commissioner after a distinguished stint officiating in Hong Kong, will be seen by many industry figures as a blow to the integrity body, which has developed increased confidence from stakeholders and participants during his tenure.

Kelly recalled to his QRIC colleagues at a town hall meeting on Friday, while informing them of his resignation, that the sentiment towards the organisation when he took the job in September 2024 did not cast it in a good light.

“What I said was that I vividly recall when I was the chief steward in Hong Kong, I would read articles or I would read opinion pieces on QRIC and none of them were ever positive that I could see,” Kelly said. 

“In fact, it was almost like the place was the whipping boy or girl for the industry and I think that that has been turned around. 

“With my experience and my background, it has given me the opportunity to look at those sorts of things objectively. 

“I believe that there’s been a positive movement forward by the organisation and I believe that that is supported by the fact of that community perception survey where all those major metrics were up.”

Kelly intends to maintain his roles at the International Federation of Horseracing Authorities and on the Anti-Illegal Betting and Related Financial Crime Council, as well as chairing the international stewards’ conference.

“I relish those positions because they’re very important to me to do that on an honorary basis because the internationalisation of the sport is at the heart of just about everything I do and getting everybody working to the same set of rules around the world,” he said.

“And the committee has been very successful in that, I’d have to say, but there is still work to be done and I enjoy that work very much. 

“Beyond that, maybe I’ll play lawn bowls and I’ll probably take my grandsons (to the races) and hang over the fence and introduce them to what is the greatest sport in the world.

“I’ve got a love for the sport and a love for the animal and nothing changes there in that regard. But as far as the day in, day out goes, I’ll just slink back behind the curtain of anonymity.”

Queensland Racing Minister Tim Mander, who was reappointed to his position on Thursday following an Australian Federal Police investigation into alleged and later unfounded electoral fraud, thanked Kelly for his service to the Queensland racing industry.

The Crisafulli government is committed to maintaining the highest levels of integrity in the racing industry,” a spokesperson for the minister said. 

“The independent racing review made recommendations on streamlining governance in Queensland Racing to improve decision-making and reduce operational duplication following overwhelming feedback.”