Written by Keely McKitterick
Cover image courtesy of the Australian Turf Club
We reflect on an intense last week of political discussions concerning horse racing in New South Wales. The ATC has delayed the last two Member Forums scheduled for the upcoming week, Racing Minister David Harris is intensely questioned in parliament over several matters, while different parliamentary members raised doubts about the legitimacy of the sale of Rosehill.
Wednesday
Premier Minns takes a step back on the sale of Rosehill
The week of political heat on racing’s decision-makers began at Wednesday’s Budget Estimates hearing with Premier Chris Minns raising several potential stumbling blocks regarding the sale of Rosehill Gardens, shifting from the initial optimistic tone set throughout the press announcement in December.
Minns emphasised critical issues, including “the disposal of property, the size of the rezoning or the density of housing, how much open space is available, what the links are, and contact with the Metro line.” According to Minns, these factors might be “a dealbreaker for one or both of those sides,” casting doubt on the ambitious project’s feasibility.
Premier Minns restated the conditional nature of the government’s support, saying, “If it were to come to fruition it would be a great opportunity for NSW, again (I) made it clear on the date, at the time when the announcement was made that this is not a done deal.”
The Premier’s parliamentary inquiries addressed concerns about the project’s scope and its implications for the community and the racing industry. Despite the potential benefits highlighted by the proposal, such as significant housing additions near transport links and possible enhancements to the state’s racing infrastructure, Minns’ statements reflect a cautious perspective.
Minns’s candid acknowledgment of potential “irreconcilable differences” and his emphasis on the need for ATC member support highlight the complex path ahead for the Rosehill Racecourse proposal.
Adding to increasing speculation, The Telegraph reported on Saturday that the NSW Transport Minister says she has not seen the memorandum of understanding signed between the government and the ATC.
Meanwhile, Champion Trainer Chris Waller’s recent update to clients indicates his dissent remains firm, saying: “What’s been disturbing to me is it has been that flawed and that off-beat towards the betterment of the community, let alone racing, it’s just not funny. It’s as simple as that.”
Thursday
Hard questions directed to the Racing Minister on Rosehill sale
Racing Minister David Harris faced intense scrutiny during a NSW parliamentary estimates hearing on Thursday regarding various issues.
Independent MP Mark Latham first expressed concerns over the proposed sale of Rosehill Racecourse and criticised Harris for what he perceived as a lack of leadership within the racing community. Harris consistently emphasised the required independence of the sale process and the authority of the ATC members in determining the future of Rosehill.
Latham questioned the Minister’s lack of involvement, stating, “But, as Racing Minister, have you got an opinion on the sale of the second most important asset for thoroughbred racing in New South Wales? Racing people are stunned that the Racing Minister would have so little involvement in this.”
He further inquired, “What is corrupt in you sitting down as Racing Minister with someone like Chris Waller, who is flagging he’ll move to another state, to do everything you can to keep him here in New South Wales? What’s the problem with that? Isn’t that your job?”
Despite Harris reiterating the importance of member-led decision-making, Latham challenged the advice that no involvement from the Racing Minister was procedurally correct, given several ministers attended the press conference.
“Minister, why doesn’t this advice apply to the Premier?” said Latham, given Minns addressed media on December 7.
“Why doesn’t it apply to Minister Haylen… Why doesn’t it apply to Treasurer Mookhey… Why doesn’t it apply to Minister Scully, who is trying to build in the housing—the 25,000 housing—as part of his housing plan?”
After extensive questioning, Harris conceded that he had, in fact, only received probity advice in the days leading up to budget estimates, rather than at the time of the ATC announcement. He hinted at potential involvement with the racing industry if the proposal impacted broader racing operations in the state.
Latham then raised concerns about the feasibility of constructing 25,000 homes on the Rosehill site and the reality that the $5 billion windfall from the development would not be an immediate payment.
“Do you have a view on that feasibility?” he pressed. “The ATC is saying they’ll raise $5 billion, but that is contingent, it seems, on 100 60-storey towers at Rosehill.”
“The ATC is saying they’ll raise $5 billion, but that is contingent, it seems, on 100 60-storey towers at Rosehill.” – Mark Latham
He then probed Harris on operational decisions by Racing NSW, particularly regarding asset investment and their alleged $125 million property portfolio, and pressures on regional race clubs.
“Would you be of the opinion that it’s better to spend $125 million on upgrading Warwick Farm and keep Rosehill, rather than spending that money on lucerne farms and inner-city apartments?” Latham asked.
“Are you happy with the Racing NSW treatment of provincial and country clubs, who are complaining they’re under pressure to spend money they haven’t got and, if they don’t do it, they’re threatened with being replaced by an administrator?”
Racing NSW Board appointment process under scrutiny
The NSW parliamentary estimates discussion then focused on the appointment process of the pending Racing NSW Chair, questioning the close relationship between Peter V’landys, Racing NSW CEO, and John Dumesny, a selected Racing NSW board election panel member who happened to be V’landys’ successor as NSW Harness Racing Club CEO following a 16-year working relationship.
Latham raised concerns to Harris regarding potential conflicts of interest due to the close personal and professional ties between Dumesny and V’landys.
“Minister, on what basis did you choose Mr Dumesny and, given your earlier statement about a supreme concern about probity, weren’t you worried about the close personal relationship he has with Peter V’landys, who is employed by the board?”
Harris defended the selection, emphasising the procedural steps taken to mitigate conflicts of interest, including the declaration of potential conflicts by panel members. “I understand that the process includes a declaration by any members if there is any potential conflict. I was not aware of any conflict,” Harris said.
“I was not aware of any conflict.” – David Harris
Despite Harris’s assurances, Latham remained skeptical: “You had never seen publicity in the racing media that Dumesny and V’landys are close personal friends—a working relationship at Harness Racing NSW that goes back 20 years? You were totally unaware of that?”
“Has Mr Dumesny declared a conflict that he’d be part of the selection process for the boss of his best friend?” Latham pressed.
Emma Hurst, Animal Justice MP, then joined the line of questioning, asking Harris: “Now that you do know, do you have concerns about his involvement on the selection panel?”
Harris postponed his response, indicating that he would seek advice on whether that constitutes a conflict, as V’landys himself is not a candidate. Latham then pointed out the logic that the Racing NSW CEO is employed by the person being appointed.
“Is this likely to give rise to the perception that Peter V’landys may have had some undue influence over that selection process?” Hurst asked.
Suranne Cooke’s term renewal also queried
Liberal MP Damien Tudehope then intervened, initially questioning Harris on the transparency and adherence to the Act in the selection of the Racing NSW Chair, probing whether the process could potentially favour individuals with Labor Party affiliations. Harris refrained from commenting on potential appointees: “It’s subject to Cabinet,” he responded.
“This is an opportunity for you to say that it will not be someone who has been a member of the Labor Party,” Tudehope stated.
The discussion intensified over the reappointment process of deputy Chair Saranne Cooke as a Racing NSW board member for an additional two years in December, following two completed four-year terms, with Tudehope challenging the compliance of this process with the Act’s stipulations, and Harris defending the procedure.
Tudehope’s pointed inquiries highlighted concerns over procedural fidelity and potential oversight in reappointing Cooke without convening an independent panel, as mandated by the Act.
“You should be aware of the requirements under the Act that the recommendation to extend Dr Cooke’s term must come through an independent panel. That did not happen, did it?” Tudehope pressed.
“You should be aware of the requirements under the Act that the recommendation to extend Dr Cooke’s term must come through an independent panel.” – Damien Tudehope
Harris, however, stood by the advice received and the actions taken, asserting his interpretation of the Act supported the process that was followed.
This scrutiny on Racing NSW’s corporate governance follows further concerns raised last November when the government sensationally withdrew a bill to extend Racing NSW chairman Russell Balding’s term instead of accepting amendments that tighten scrutiny of the Principal Racing Authority. Proposed measures for increased scrutiny included audits by the state auditor-general and mandating senior officials to testify annually before a budget estimates committee.
The probing exchange between Latham, Hurst, Tudehope and Harris further underscores the critical importance – and questionable application – of transparency, impartiality, and procedural integrity in the current governance of racing in New South Wales.
Friday
Australian Turf Club ‘delay’ upcoming Member Forums
The fascinating week of NSW racing news signed off on Friday with the Australian Turf Club (ATC) postponing two crucial member information sessions intended to discuss the potential $5 billion sale of Sydney’s Rosehill Gardens, amid growing controversy surrounding the proposal.
Steve McMahon, ATC’s head of membership and corporate affairs, informed members through an email on Friday that the scheduled forums for the forthcoming Tuesday and Wednesday would be delayed to a later date.
In his communication, McMahon highlighted the need for a comprehensive review of concerns raised in previous forums. He stated, “Several questions were raised during the earlier forums that we want to address to ensure you have all the necessary information. It will require some time to compile this data.”
The postponement of these forums fuels speculation that the proposed sale might be abandoned in its nascent stages. Latham referred to the sale as a ‘dead duck’ during budget estimates and advocated for an early survey of ATC member sentiment to avoid unnecessary expenditure by the government on a seemingly unpopular proposal.
“Given what we know about the concerns of ATC members and leading figures like Gai Waterhouse and Chris Waller, wouldn’t it be better for the ATC to put this to their membership before the Government wastes a lot of resources assessing something that looks like a dead duck?” Latham queried.
Simon Draper, Secretary of the Premier’s Department, acknowledged the advanced stage of the proposal, noting, “I understand… that they’ll be lodging that proposal in the near future… I understand that the turf club held some sessions with members—I don’t know if you attended it?”
Latham’s candid feedback on these sessions, “Yes, it went terribly,” reflects the unanimous disapproval articulated by ATC members in the two forums to date, highlighting the contentious nature of the discussions and the significant opposition the plan faces from key stakeholders within the racing community.
The week ahead… all eyes on Victoria
Over the upcoming week, the political focus on racing’s leadership looks set to shift southwards, as Racing Victoria’s Special General Meeting is scheduled for Wednesday.
This follows Chairman Mike Hirst’s decision to step down, announced on Friday, concluding his tenure on the board at the end of May. His board membership, extended just last October, was anticipated to end concurrently with that of another long-serving member, Greg Nichols.
“This provides an opportunity for a fresh director to join the Racing Victoria board and contribute to shaping the future of Victorian racing,” said Hirst.
In the midst of Hirst’s announcement, Racing Victoria faces a crucial juncture with the Special General Meeting slated for Wednesday, February 28. This meeting was initiated upon the request of Thoroughbred Racehorse Owners’ Association (TROA) Chairman, Jonathan Munz, who aims to oust the current RV board. RV has publicly expressed confidence in having the necessary backing to address Munz’s challenge.
