Reform group raises governance concerns over ATC administration

A leading thoroughbred industry stakeholder group has called on the NSW government to immediately release the long-awaited Hazzard review, while questioning the role and accountability of an advisory committee established to support the administrator of the Australian Turf Club.

The Racing Reform Group (RRG) said the administration of the ATC, which occurred last week after a lengthy legal battle, heightened concerns about governance, accountability and the concentration of power within the NSW racing industry.

Central to those concerns are questions surrounding a five-member advisory committee established by Racing NSW to assist administrator Morgan Kelly.

“As for the appointment of an advisory committee by Racing NSW to “assist and support” Mr Kelly, this is also potentially problematic,” it said. “The ruling which allowed Racing NSW to put the club into administration also made clear the limits on their powers over the club.”

The group argued that while the Court of Appeal had confirmed Racing NSW’s power to appoint an administrator, the judgment also made clear that Kelly must exercise independent judgment and act in the best interests of the ATC rather than Racing NSW.

“A legitimate question is whether this five-person advisory committee – which also includes two Racing NSW board members – can have any input into decisions about the ATC given stewardship of the club is vested in the administrator (Mr Kelly) who doesn’t answer to Druitt Street (Racing NSW). And who are the advisory committee accountable to?” it asked.

“Many further questions need to be answered, including how long will administration last and how quickly will the club be returned to its members and its properly appointed board? Will the election of directors happen as expected in November?”

The committee comprises ATC chair Tim Hale, vice-chair Caroline Searcy and board member Bernie Brookes as well as Racing NSW board members Michael Crismale and Simon Tuxen.

The RRG also called for the release of the review of the Thoroughbred Racing Act being undertaken by former NSW Health Minister Brad Hazzard, arguing it could provide an important opportunity to address longstanding concerns about accountability and governance within the industry.

While expressing disappointment that the review was not permitted to examine racing’s funding model or Racing NSW’s relationship with the state government, the RRG said it expected the review would nevertheless serve as an important first step towards reform.

“We believe the Hazzard review will be an important step in ensuring everyone involved in racing can have confidence in the industry’s future governance and accountability structures,” the group said.

“It should be released at the earliest opportunity.”

Hazzard was contracted until the end of June, with his report now overdue. It has not been confirmed whether NSW Racing Minister David Harris has received the report.

Regarding the ATC administration, the RRG noted that Kelly had been working with the ATC as a consultant in April.

“Has Mr Kelly unearthed a financial black hole in the intervening months or discovered other major issues that would demand this radical action? Not that members have been told,” it said.

The RRG also challenged Racing NSW’s assertion that the administration was necessary to improve efficiency, performance and governance, arguing the regulator’s own record warranted examination.

The RRG’s steering committee comprises secretary Brian Nutt, Julia Ritchie, Helen Sinclair, Arthur Mitchell, Jason Abrahams, Will Johnson and David Walter.