Racing NSW could face the additional scrutiny of parliamentary estimates, the Independent Commission Against Corruption and the auditor-general under a Bill put forward in the NSW Parliament.
The Thoroughbred Racing Amendment (Racing NSW Accountability) Bill 2024 was first presented in the NSW Legislative Council on Wednesday by Independent MP Mark Latham.
Latham, who is on the parliamentary Select Committee looking into the proposal to redevelop Rosehill racecourse, has been an outspoken critic of the operations of Racing NSW.
The Bill is the latest to attempt to use his position as an Upper House MP to push for greater oversight of the racing regulator.
It was presented a day after the publication of Racing NSW board minutes from a meeting last November, which raised questions about the role the regulator wanted to play in the Australian Turf Club’s proposal to redevelop and sell off Rosehill racecourse, said to be worth at least $5 billion.
The minutes, published by the parliamentary committee set up to investigate the Rosehill sale, indicate the Racing NSW board was “concerned that the provision of such a large sum to the ATC without any controls might be unwise and offer no guarantees for the NSW Thoroughbred Racing Industry as a whole”.
“Having further considered the matter the Board resolved to endorse the proposal in principle subject to further negotiations with NSW Government. Further, Racing NSW to have oversite (sic) over the majority of the proceeds of the sale after providing a reasonable sum to the ATC (with a proviso that those funds only be used for racing and racing infrastructure),” the minutes said.
There are legitimate questions if this is consistent with the evidence given by Racing NSW CEO Peter V’landys to the Select Committee in August. Under oath, V’landys said Racing NSW wanted oversight over how the ATC spent any funds, but that it never “sought all the money”.
Asked about discussions with the Cabinet Office about the make-up of the ATC board, V’landys said: “We said that because the ATC is going to receive so much money, they should have relevant skill on that board in order to manage that money.
"If we were going to take the money, why would we want somebody on that board that had the relevant skill?” he said.
“The board minutes at Racing NSW, which I can table for you, show exactly that. We said that we want oversight. Because my previous chairman's concern was - which I shared - is that we didn't want to see the money spent on members' indulgences like ski chalets and resorts in Fiji and resorts in Paris.”
Bren O’Brien
Separate from the publication of the board minutes, Latham stepped up his crusade to provide greater transparency from Racing NSW in the Legislative Council.
“Unaccountable to a Minister, unaccountable to ICAC, unaccountable to the Auditor-General, unaccountable to this House through budget estimates and the SO52 call for papers, Racing NSW always had the potential to become a law unto itself, to misuse its supreme powers of licensing, investigation and regulation of the NSW racing industry,” Latham told parliament on Wednesday.
“And this is what has happened. The solution is the transparency and accountability measures in this Bill.”
Latham’s proposed measures closely mirror those put before parliament last November by the opposition when the Minns government was trying to pass an amendment allowing the extension of the board terms of then-Racing NSW chairman Russell Balding.
In that instance, the measures were passed by the Upper House, only for Racing Minister David Harris to withdraw the bill at the last moment, ending Balding’s tenure and preventing additional scrutiny from being imposed.
Latham wants the extra measures put in place, pre-empting any recommendations made by the Select Committee, while he also wants a mandated regular review of the Thoroughbred Racing Act.
"Racing NSW always had the potential to become a law unto itself, to misuse its supreme powers of licensing, investigation and regulation of the NSW racing industry." - Mark Latham
The power and function of Racing NSW has featured heavily in the Select Committee hearings, but Latham fears that action to curtail the regulator may be lost among the melange of issues raised.
“The Select Committee has one meeting left, a deliberative on the 29th of November, where it will finalise its report and say it's run out of time for doing something about Racing NSW. These Select Committees, of course, have a sunset built into them,” Latham said.
Latham also lodged a statement of public interest in support of the Bill.
“The Bill is considered the most effective way of making Racing NSW accountable and ending its abuse of power. Other than the Minister for Racing sacking the board and senior management and starting again, there is no other feasible pathway,” he wrote.
Warwick Barr
While it is likely to garner the support of the crossbench, the Bill would require at least the support of the Opposition to progress - and that is far from guaranteed.
Latham also used parliamentary privilege to raise several allegations sent to him by whistleblowers, including one which questioned Racing NSW’s access to Jobkeeper payments during the pandemic, as well as how it determined fringe benefits taxes in relation to its obligations to the Australian Tax Office.
He also raised an accusation of Racing NSW interference sent to him by former Godolphin Australia managing director Vin Cox, that V’landys had tried to pressure him into running Anamoe in the Golden Eagle rather than the Cox Plate in 2022.
