LEGISLATION has been passed for a new-look racing industry in Queensland and the appointment process is about to begin. The only real concerns emanating from some in the industry relate to integrity and some of the identities being tipped for key positions.
Revelations made under Parliamentary privilege during debate on the Racing and other legislation Amendment Bill 2012 were very damning for the previous Bob Bentley Board, especially over the golden handshake controversy and the key roles now enjoyed by Malcolm Tuttle and Paul Brennan at a company that was awarded major contracts by the former RQ.
Below is the extensive Hansard debate from the Queensland Parliament.
RACING MINISTER STEVE DICKSON:
I thank the Health & Community Services Committee for its prompt consideration of the Racing & Other Legislation Amendment Bill 2012 and I note that the committee tabled its report on the bill on 22 November 2012. I table of the copy of the government’s response to that report.
Tabled paper: Health and Community Services Committee: Report No. 14—Racing and Other Legislation Amendment Bill 2012, government response. I am pleased to note that the Health and Community Services Committee has recommended the passage of this bill. I note that the committee has asked that I consider a number of matters and I am happy to respond to each of those and provide information to the parliament.
REGIONAL REPRESENTATION WOULD CREATE PROBLEMS FOR INDUSTRY
I note that the committee has asked me to consider regional representation issues when providing advice to the Governor in Council about the appointment of members to the control board. The issue of mandating regional representation on the control board and the all codes board was given careful consideration in the development of this bill, but the key objective is to have persons with the required qualifications and experience on that board. It becomes far too problematic to start mandating in legislation that specific regions or stakeholder groups be represented on any of these racing boards. What happens if it is mandatory that a person in regional Queensland, who is specifically appointed to a board because of their residence, moves to live on the Gold Coast? Maybe they get removed? But what if they are moving for only three to six months? Are they still regional representatives or not? This is just one simple example of the complexities involved in having to mandate representation in legislation. Although regional representation has not been mandated, I will be encouraging as many people as possible from rural and regional Queensland to apply for positions on the racing boards. To ensure the widest possible applicant pool from rural and regional areas, board positions will be advertised in newspapers throughout regional Queensland and in Queensland Country Life.
The people who will ultimately be appointed to the boards need to have the support and confidence of the wider Queensland racing industry. This lack of endorsement from the industry was one of the key weaknesses of the former governance model, which has been addressed. People interested in being considered for appointment to the racing board will need to be endorsed by the industry’s licensees, racing clubs and industry associations or other stakeholder groups. In addition to extensive advertising in regional areas, I will also be writing to all of the racing clubs and stakeholder groups across the state and asking them to encourage people who fit the selection criteria to put themselves forward as candidates. Country and regional Queensland has many people who have the requisite skills and experience to contribute to the strategic management of the industry. In fact, their particular experience in addressing the challenges faced by rural and regional racing would
be a valuable addition to the governance structure of the racing industry. I encourage such people to apply for a position on the racing boards.
As for probity checks, the committee has sought further information on the probity check proposed for candidates who have lived and worked outside of Australia. All candidates that the selection panel identifies as appropriate for appointment will be required to complete a personal probity form. Anyone supplying false, misleading or incomplete disclosure, and this includes information from overseas sources, may be prosecuted. Overseas residents will be required to provide a police report or clearance from the appropriate authority in the jurisdiction in which they reside. Candidates will be required to provide a summary of their work and business history regardless of where it was, including the details of all directorships of corporations, businesses conducted solely by the candidate or in partnership, and details of all past and present employment. The personal probity form requires the disclosure of any conviction or investigation undertaken by a law enforcement agency either within Australia or overseas. Law enforcement agencies include, but are not limited to, state, federal and overseas agencies such as police services, crime authorities, crime commissions, commissions against corruption, securities and investment commissions, customs services, taxation offices, competition and consumer authorities and gaming authorities. Each candidate is also required to provide a consent and authority for further information that may be required to be obtained by the chief executive.
The committee has requested further information on the costs associated with the reforms that are contained in the bill and who will be liable for those costs. The establishment of the Queensland All Codes Racing Industry Board and the three individual control boards is expected to provide significant savings to the industry. The boards will be statutory bodies and, therefore, members will receive a lower remuneration level than would be expected by companies formed under the Corporations Act. Remuneration levels must be endorsed by cabinet and recommended to the Governor-in Council. So it would be inappropriate for me to pre-empt any such decision making. However, rest assured I will not be recommending anything that will cost the racing industry more.
All employees, assets and liabilities of Racing Queensland Ltd will be transferred to the Queensland All Codes Racing Industry Board and it is expected that there will be no significant cost associated with that transfer.
RACING DISCIPLINARY BOARD TO REPLACE FIRST LEVEL APPEALS BOARDS
The Racing Disciplinary Board will replace the first level of appeals boards currently appointed by the control body. Although the cost of the Racing Disciplinary Board will be borne by the industry, it is not expected to cost significantly more than the current appeals structure run by Racing Queensland. However, like all appeal mechanisms, the cost will be dependent upon the workload, which is directly attributable to the decisions made by the control body.
The Racing Integrity Commissioner is a new part-time position and the cost will be borne by the industry. This position exists only because there is a racing industry. That is why it is necessary. The commissioner’s remuneration levels must be endorsed by cabinet and recommended to the Governor in Council. So it would be inappropriate for me to pre-empt what that level may be.
It should be noted that in the financial year 2011-12 Racing Queensland Ltd received product fees of $138 million. The benefits to the integrity and credibility of the industry from having the commissioner’s independent oversight will far outweigh any associated cost.
In relation to recommendation No. 4 of the committee’s report, I note the committee’s recommendation that proposed section 113AW be amended to specifically provide that self-incrimination is a reasonable excuse for failing to comply with a notice under proposed sections 113AU or 113AV. Proposed Section 113AW provides that a person need not comply with the requirement to answer a question or produce a document if they have a reasonable excuse. In determining whether the power to override established common law rights has been provided in legislation or whether an incidental power may be implied, the courts have regard to common law principles of statutory interpretation. The common law is well settled in this area. While an act of parliament may override common law rights, it is settled law that any such power must be conferred expressly and unambiguously. This is why when it is intended that the privilege against self-incrimination be removed by legislation, the legislation must expressly and unambiguously change the common law. This approach can be seen clearly in the Crime and Misconduct Act 2001 where the privilege against self-incrimination is specifically addressed and the act states that in certain misconduct investigations a person is not entitled to refuse to answer a question on the ground of the self-incrimination privilege. As section 113AW does not, and does not intend to, remove the excuse of self-incrimination, this excuse is available for a person to use. Section 113AW has been purposely drafted broadly so as to permit a range of other established common law excuses to also be used, such as the right to claim legal professional privilege.
There are many situations that may arise where a person may have a reasonable excuse not to comply with a direction from the Racing Integrity Commissioner and none of these have been specified either. For example, a person may have been provided with a written notice to appear before the Racing Integrity Commissioner and on the way to the hearing suffer a medical emergency that prevents their appearance. This is, I would suggest, another example of a reasonable excuse that would apply but has not been specifically identified. The common law privilege against self-incrimination entitles a person to refuse to answer any question, or produce any document, if the answer or the production would tend to incriminate that person. This established excuse is available to any person appearing before the Racing Integrity Commissioner and it is considered that there is no reason to amend the section as currently drafted.
BILL FULFILS LNP GOVERNMENT COMMITMENT TO REPLACE RQL
This bill fulfils the Queensland government’s election commitment to remove Racing Queensland Limited as the control body for racing; establish the Queensland All Codes Racing Industry Board and individual control boards for the three codes of racing; transfer appropriate racing integrity functions to government by establishing the Racing Disciplinary Board and the Racing Integrity Commissioner; provide a more competitive environment for Queensland bookmakers by allowing them to take bets via the internet and at approved off-course premises; and extend the Racing Industry Capital Development Scheme from 2014 to 2015 by amending the Wagering Act 1998. I commend the bill to the House.
LABOR SUPPORTS THE BILL BUT HAS A NUMBER OF RESERVATIONS
Mr BYRNE (Rockhampton—ALP) (4.12 pm): I rise to speak in relation to the Racing and Other Legislation Amendment Bill 2012. At the outset I wish to indicate the opposition’s support for the bill. The opposition will be supporting the bill despite having a number of reservations in relation to it. We have always maintained the belief that the LNP’s commitment to pulling apart Racing Queensland Limited and reinstigating three control bodies would be a destabilising and very expensive demerger for the racing industry. The demerger of RQL into three separate control bodies will cost the LNP more than $1.3 million in efficiency savings that existed with a single racing control body. With this bill the LNP government is implementing an additional layer of bureaucracy and red tape by demerging RQL into three separate control bodies and then establishing an overarching Queensland All Codes Racing Industry Board. For a government that was elected on a platform of reducing red tape, introducing another level of bureaucracy into the racing industry seems somewhat extraordinary. The $1.3 million in efficiency savings which were realised through only having one control body could have been spent by the LNP government on conducting extra race meetings or allocating more prize money in the same way as the previous Labor government spent such savings, but instead the LNP will put the money towards additional red tape and bureaucracy. I also note that with this bill the LNP government is transferring the integrity functions which are undertaken by the control body to the government, but this process will still be paid for by industry. I bet the proposal went down well with industry, making them pay for something that they no longer have any power over. In the political climate we have in Queensland at the moment, where every day we see new integrity and accountability questions raised about numerous members of the LNP government, the LNP government is transferring more integrity responsibility back to itself. The original reason racing integrity functions were removed from government and made the responsibility of the racing industry was a hangover from the ‘Minister for Everything’, Russ Hinze, and his improper grip on the racing industry. We are seeing Queensland politics slide back into the murky pre Fitzgerald days. On the same day we see a poll indicating that more than half of Queenslanders do not trust this LNP government, it is convenient and coincidental that the LNP government is granting itself more integrity powers. The bill also proposes the minister has more involvement in and power over the operations of the control body. Again this echoes the ghost of Russ Hinze who, as racing minister, had absolute control over the industry. At a time like this it would be a disaster to take the racing industry back to the uncoordinated arrangements of the past. I also note the bill ensures that the control bodies will be provided with the necessary powers to manage the industry, but it mentions nothing about the funding to establish and manage these processes. In fact, the department briefing identified no extra funding would be provided to the board structures even though the amount of board positions will go from seven to 11 members. The department briefing also identified that despite the LNP advocating this model for years, as recently as a couple of weeks ago, on 7 November, they had no idea how this was going to be funded. Many of the costs associated with the structure, including the remuneration details of appointments to the all-codes board and the control boards, as well as the costs associated with the Racing Integrity Commissioner, had not yet been decided and I accept the comments made by the minister earlier.
CONSULTATION PROCESS RAISES CONCERNS ABOUT THIS LEGISLATION
Today we are debating a bill without the full details of how it will be funded and how the minister will pass the costs on to administer the integrity functions of the industry. This also seems highly suspicious for a government whose integrity is questioned by the people of Queensland on a daily basis. The opposition will follow with interest how the minister approaches the integrity functions and how the changes in relation to legal representation and appeal rights will work practically.
Section 9CO of the bill also precludes the minister giving directions to the control board to request specific allocations of race days by the all-codes board. It appears the minister is also not lawfully allowed to allocate prize money for races. This is despite the minister speaking about the LNP election commitment to support country racing with $1 million a year to fund an additional 20 race meetings over the next four years. I fail to see how the minister will deliver this election commitment and also ensure the boards comply without breaching section 9CO of the bill. The farce that this parliament has become is that we find ourselves in a situation where an LNP election commitment seems to breach a piece of the LNP legislation which, funnily enough, was also an LNP election commitment. The consultation process for this bill also raises concerns about the future of racing in Queensland. The bill was introduced to the parliament on 1 November and submissions to the Health and Community Services Committee closed on 12 November. I am concerned about the lack of consultation which has been a hallmark of this government. But what is also concerning is that the period of consultation spanned the Melbourne Cup Carnival. Because the Melbourne Cup Carnival attracted such a great proportion of the Queensland racing industry, the period of consultation was held at the worst possible time for the industry. It raises the question of whether the LNP government selected these consultation dates specifically over the Melbourne Cup period to avoid scrutiny of the bill by the industry.
STAKE-HOLDERS SILENCED AND NOT ALLOWED CONSULTATION ON LEGISLATION
Another indication that the LNP government is attempting to avoid scrutiny of the bill is that they cancelled with no warning a public committee hearing at which members of the industry would have been able to ask questions about the legislation. Racing industry representatives arrived at Parliament House to attend the public hearing, ready to give evidence before the committee. However, they were soon to learn that the committee was cancelled with no warning. Sadly, that meant the industry was not able to give the evidence that it wished to communicate to the committee. It is rather disgraceful that members of the community and the racing industry have been silenced and not allowed the opportunity to raise any issues they have with this legislation and ask questions of the committee. This is yet another example of the LNP government stifling the democratic processes in Queensland. Under this government, no proper community consultation exists in Queensland. The industry’s concerns deserve to be heard, instead of being brushed aside by the arrogant LNP government.
The opposition is also concerned about the perceived watering down of the Police Commissioner’s ability to advise the minister on the intelligence the commissioner may have in relation to the appointment of a board member. The bill appears to remove section 23(3) (c), which allowed the Police Commissioner to write in a report ‘other relevant information to which the commissioner has access’. This means that the commissioner was able to advise whether a person was in debt to organised crime figures or had overseas convictions in areas of fraud or race fixing, for example. During the departmental briefing, much was made by the LNP committee members of the potential for unsuitable people who had adverse histories overseas being able to obtain a board position and what impact this could have on the local industry. The change in the bill means that the commissioner may not be lawfully entitled to provide this other information, including overseas criminal histories. The commissioner may have access to information other than criminal histories in the form of verified intelligence reports. The bill introduced by the minister looks to keep the commissioner quiet on this information. Any infiltration of the boards by unsuitable members may test the integrity of the industry and I can only hope the lack of consultation will not let someone untoward slip through the cracks, which would cost the state millions of dollars. Despite the line of questioning during the departmental hearing by LNP members, it seems they chose not to highlight this potential problem in the final report and bring it to the attention of the minister.
This is another example of the LNP’s tactics to silence some elements of the fragile backbench. We all know the way that members of the Legal Affairs and Community Safety Committee who dared to highlight problems with the boot camp and body corporate bills have been treated recently. Again, bullyboy tactics are stifling democratic debate in Queensland.
Concerns were also raised in submissions about the regional representation of the board members. Despite the minister’s commentary on that the matter, regional Queenslanders have already been burnt by what they believe is a Brisbane-centric LNP government and they are questioning whether the city Liberals have any real regard for their concerns. Those involved in country racing may well like to write to the minister and see how he will deliver on his promise for regional board representation.
The opposition supports the changes to the Wagering Act 1998 and the Interactive Gambling (Player Protection) Act 1998, which brings the bookmaking activities of Queensland bookies into line with other states and other new competitors in the industry. We also support the bill permitting bookmakers to use the internet to conduct bookmaking. We respect that people in the community enjoy gambling and we wish the Queensland industry well as it begins to compete against its interstate and international rivals. The key to a sustainable gambling industry is ensuring that all players in the industry act in a responsible way. We understand match and race fixers will test the integrity of the gambling industry and we have seen plenty of examples over the years, not just in racing but also in other sports. We will ensure the minister sets up proper systems and processes to detect those types of fraudulent activities. The racing industry and the sports betting industry rely on transparent and accountable industries. I wish the stakeholders in the racing industry all the best as they work through these changes. The opposition will be supporting this bill.
ASSURANCES THAT CONSULTATION ON THE LEGISLATION WAS FAR AND WIDE
Mr DOWLING (Redlands—LNP) (4.24 pm): Today I rise in support of the Racing and Other Legislation Amendment Bill 2012. At the outset, I commend the minister for bringing this legislation forward. Over the recent past, racing has had, for want of a better analogy, a chequered history and the amendments within this legislation will start to address the ongoing issues within the industry. In talking to the report, I begin by thanking the members of my committee for their work in preparing this report to the parliament. In particular, I thank Sue Cawcutt, the research director, Lee Archinal and Kathleen Dalladay, the principal research officers, and Ms Dianne Christian, the executive assistant. Those ladies really did put a lot of time and effort into this. I took offence at the comments of the member for Rockhampton who, in his contribution, said that we had closed the committee meeting, the briefing and the hearings, and that we had not engaged in consultation. I assure the minister that the engagement and the consultation was far and wide. We contacted numerous stakeholders and key industry groups. They are actually listed in the report. I draw the attention of members to that list of people who made submissions, although we went beyond that. We engaged, we phoned people, we e-mailed people. We got everyone we possibly could who we thought had a valid contribution to make. At the end of the whole process, one person was able and prepared to come and address the committee. We felt that was not a suitable or satisfactory outcome. One further person actually just turned up at parliament, because they thought the thing was on. The presentation was by invitation. It is not just a speak-easy where people can wander in. We are a little more professional and a little more sophisticated than that in the committee arena. To say that it was shut down and there was no warning are inflammatory comments that were certainly embellished beyond belief. Certainly they are not a reflection of what happened.
LNP WANTS THE BEST PEOPLE NOT NECESSARILY REGIONAL REPRESENTATION
I am pleased that during his contribution the minister addressed a number of the issues raised quite legitimately by the committee. The minister has gone through quite comprehensively the issue around recommendation 2, relating to regional representation on the board. In simple terms, the minister has summed it up: we want the very best people in that role, no matter from where they come, for the overall benefit of the industry and we will search far and wide. Recommendation 3 and recommendation 4 were covered beautifully and I thank the minister for his contribution.
I put on the public record my thanks to the submitters who contributed: the Rockhampton Trainers Association; the Australian Jockeys Association, Queensland branch; the Gold Coast Harness Racing Club; Wayne Dossetto; the Eastern Downs Racing Association; the Townsville Turf Club Incorporated; the Australian Bookmakers Association; the Marburg Pacing Association; Stephanie Houghton; Racing Queensland Limited; the Townsville Greyhound Racing Club Incorporated; Gerard Betros; the Queensland Racehorse Owners Association; and the Breeders, Owners, Trainers and Reinspersons Association Queensland Incorporated. I am sure, Mr Deputy Speaker, that you would agree that the spread of submissions comes from across the state, from large and small, and from interested individuals. Again, it is fair to say that due diligence was done comprehensively. I am sure everyone is aware that I will no longer be the chair of the committee. I will miss the Health and Community Services Committee.
Mr Hathaway: We’re going to miss you, too, Peter.
Mr DOWLING: I am pleased to hear that. I leave them in good hands and in good shape. I recognise my replacement. While I hope he cannot replace me, I know he will do the same job as I did in that role. I commend the member for Kallangur. He has taken over the reins of that committee.
DR FLEGG: A good member, too.
Mr DOWLING: He is a very good member. With those few comments, I commend the bill to the House.
REV FOR PREVIOUS BOARD FOR ALTERING CONTRACTS OF LOYAL SERVANTS
Mr DAVIES (Capalaba—LNP) (4.29 pm): I too rise to speak to the Racing and Other Legislation Amendment Bill 2012. I am pleased today to highlight the good work this government is doing in relation to the Board of Racing Queensland and its support of the Racing and Other Legislation Amendment Bill 2012. It is important to highlight the good work this government is doing because it is in stark contrast to that of the previous regime. In fact members of my electorate who frequent the Capalaba greyhounds and those who work at the track, like Ross and Nigel, will be very interested to know of the activities undertaken by the former board of Racing Queensland. I will now take this opportunity to outline some of the many examples that illustrate clearly the strong need to reform the racing industry.
As a member of the HCSC it was quite shocking to hear of the wheeling and dealing and shifty deals that seemed to be part of RQL’s, and ultimately Labor’s, DNA. Let us start with the former board of RQL agreeing to alter the employment contracts of four of RQL’s top executives, including the addition of a clause that allowed an increase in salary of 30 per cent. I am not sure how the mates on the board actually came to 30 per cent being an appropriate figure considering there was no independent benchmarking, no linking of increases to KPIs. The retention payments were not linked to any definable performance targets either. But let us not get too bogged down with the intricacies—we have a lot to cover—suffice to say that two executives who stood to benefit financially from the change in their employment and conditions were directly involved in the negotiation process. Two days after the state election all four executives resigned from RQL and promptly received separation payments totalling $1.8 million. That is right, $1.8 million.
A government member: Shameful.
Mr DAVIES: It is shameful. This figure includes 14 months salary, redundancy payments and leave entitlements. Those who stood to benefit did and the interests of those who were supposed to be looked after were shafted, as was noted in the Auditor-General’s report. But why are we surprised when we note which prominent AWU man was involved on the board— no doubt hand-picked by the former leader of our state and the overseers of this debacle, Labor—‘Big’ Bill Ludwig. ‘Big’ Bill Ludwig’s history of manipulation within the Labor political realm is well documented. If any members need a refresher course, I am sure the member for South Brisbane would be happy to give them a detailed history and an update. So aside from the gross conflict of interests and golden handshakes that would make the executives of Lehman Brothers proud, we can now—
Government members interjected.
Mr DAVIES: It is true. It is unbelievable. We can move onto the financial mismanagement. The 2001-12 annual report makes very bleak reading. Some highlights include the company’s expectation to post a loss of $14 million, driven by such factors as a payroll—it seems to be in Labor’s DNA—which expanded by over $4 million. This can largely be attributed to a strategy of centralised control. Clearly ‘Big’ Bill Ludwig and his mates on the board were borrowing from Labor’s play book on that one. Nothing beats a big old-fashioned deficit. In fact, this is more than bleak reading, this report stands as a damning indictment of the RQL board and executive’s performance as well as the former government who oversaw this travesty. I would not be able to speak to members about the RQL borrowings straight out of Labor’s play book in all honesty unless they had wasted money as well. Well, fortunately, they did. This theme of reckless financial mismanagement, so ably displayed by the former government, was again followed by their mates on the RQL board when they delivered $10.6 million of infrastructure that will have no comparative financial returns and will instead burden the industry for years and years to come.
I only have a limited time available so I will not continue to speak about the $150 million worth of infrastructure contracts provided to a single firm without appropriate tenders being undertaken, which is in blatant contrast to their own procurement policy requiring all work in excess of $10,000 to be competitively tendered to at least three suppliers. Instead, I would like to take the time to remind the House how this government is taking measures to ensure this will not happen again. Changes are being made to enable industry participants to finally have a voice. Firstly, this government will reform Racing Queensland as the controlling body for the three codes of racing and establish the Queensland All Codes Racing Industry Board to fulfil yet another election commitment and continue this government’s record of delivery. In establishing a new body to control these three codes, the new board will have representatives from each code of racing and independent members chosen following recruitment and selection processes. Again, this is in stark contrast to the actions of the previous lot. This is to ensure that each code of racing has adequate representation and accountability in their new roles and enable the board to have the powers and functions required to manage the three codes of racing. In addition to its control functions, the new board will provide advice to the government on strategic issues that face the industry and facilitate negotiations with regard to strategic issues and agreements such as major capital expenditure priorities funding distribution and administration of the conduct of racing.
One of the other highlights of the bill that the minister has brought before the House is that it will actually bring bookmakers in Queensland into line with bookmakers in other states. It will allow them the same opportunity to use internet facilities and therefore compete with their interstate counterparts.
This government is committed to being open and accountable. These are measures that are not easy but are necessary to bring the industry back to a place of sustainability after so many years of irresponsible errors from the previous government. This bill is about restoring trust in the racing industry in Queensland. I commend this bill to the House. I commend the minister for bringing about really important reform. Racing is a big part of the Queensland economy. Throughout the committee process the focus on country racing was very evident. As someone who has links to the country, I think it is really important that we restore country racing back to the place it should be in Queensland. I commend the bill to the House. I commend the minister.
‘NEGLECT AND MISMANAGEMENT’ CORNERSTONE OF RACING UNDER LABOR
Mr DILLAWAY (Bulimba—LNP) (4.37 pm): I rise to speak today on the Racing and Other Legislation Amendment Bill 2012. I commend the Minister for National Parks, Recreation, Sport and Racing for its introduction to the House. It is a significant step that honours the Newman government’s election commitment to revive Queensland’s racing industry from its ground-trodden state. I acknowledge my colleagues and the dedicated research staff on the Health and Community Services Committee for the examination of this bill and thank all who provided submissions to the committee. In the hands of the former Labor government, we have seen a decline in the racing industry, with appalling management and a lack of strategy and resourcefulness. Unfortunately, it is just another example of the same old Labor story where negligent and mismanagement has led to the deterioration of what could be a great asset to Queensland.
The LNP government appreciates the enormous value that the racing industry presents to our state economy and recognises its importance to the 30,000 industry participants. We are committed to maximising its potential and giving these stakeholders back their voice. Racing Queensland Ltd is the current statutory control body for the racing industry, implemented under the former Labor government. Recently it released its 2011-12 annual report that revealed the extent of damage as a result of years of mismanagement of both the old RQL regime and the former government.
It is clear that Labor has driven the Queensland Racing industry into the ground. The reported loss of nearly $14 million is absolutely staggering, courtesy of the former RQL board that was headed up by Labor mates and a former union official. This loss can be traced back to the RQL payroll which increased from $12.1 million in 2009-10 to more than $16.2 million in the 2011-12 financial year. This increase was driven by the previous board’s failed strategy of centralisation and head office control that was not matched by comparative savings in local facilities plus a number of other contributing factors including the decision to seize operational control of several clubs, legal fees and the infamous ‘golden handshake’ payouts to four senior RQL executives.
Mr Costigan: What a disgrace that was!
Mr DILLAWAY: A disgrace—I take that interjection. That is not to mention the massive $10.6 million investment into stabling infrastructure at the Sunshine Coast that will never deliver a comparative financial return to the state and saddles the industry with additional burden for years to come. This irresponsible conduct by the former Labor government and Racing Queensland Ltd is shameful and at the end of the day has left Queenslanders suffering once again. This is why the LNP government is responding to the racing sector’s cry for help. We acknowledge the issues of the racing industry in Queensland prior to 2012 election. We are now honouring our commitment to rejuvenating the industry and we are looking to restoring accountability and transparency and approving the odds for the racing sector.
BRINGING RACING INTEGRITY BACK UNDER GOVERNMENT CONTROL
The Racing and Other Legislation Amendment Bill 2012 delivers on these promises and amends the Racing Act 2002 with several policy objectives. This bill delivers three main achievements that will restore life and prosperity to Queensland Racing: firstly, the removal of Racing Queensland Ltd and establishing the Queensland All Codes Racing Industry Board as well as a separate code specific control board for each of the three codes of racing—thoroughbred, harness and greyhound; secondly, the implementation of a Racing Disciplinary Board and a Racing Integrity Commissioner; and, thirdly, the provision that will allow bookmakers to use internet based technologies to conduct their business both at the racecourse and at other off-course premises.
The removal of Racing Queensland Ltd is vital to bringing racing integrity back under government control. In its place three code independent boards will be established for thoroughbred, harness and greyhound racing to better represent the interests of the industry. The racing boards will be responsible for reviewing and making recommendations regarding allocation of race dates and prize money, providing advice to enhance their specific code rules of racing, and undertaking ongoing consultation with code stakeholders and developing a five-year rolling infrastructure plan for their code.
To combat the potential for an ‘empire-building’ board membership that unashamedly took place under the old regime, members will only be able to serve a maximum of two three-year terms. In addition, to ensure members of the board are truly representative of the sector and to uphold the integrity of the industry, only applicants who can demonstrate that they have the support of one or more licensees, racing clubs, industry associations or other relevant stakeholder groups will be eligible for appointment.
This structure will restore control to the 30,000 people in the racing sector, giving participants a real voice in the future direction of their respective codes. To maintain unity and cohesion of the racing industry as a whole, the Queensland All Codes Racing Industry Board will function as the principal racing authority for the three codes of racing. Their responsibilities for general management for relevant codes will include acting as the principal racing authority for the purposes of satisfying national and international racing authority’s governance and regulatory requirements, addressing issues that affect the racing industry as a whole such as wagering negotiations and television rights deals, facilitating negotiations between two or more control boards about issues affecting the relevant individual codes, and providing administrative and corporate support to code specific boards to enable them to deliver their functions and meet their objectives. This format allows for transparency and accountability but most importantly restores control to the stakeholders of the racing industry and giving them a voice.
The Newman government has received overwhelming support for this new governance structure from the racing industry that is highly critical of the previous government ignoring the abuse of power and mismanagement by Queensland racing administrators. The Queensland Jockeys Association in their submission to the Health and Community Services Committee stated—
The creation of separate Boards for each Code is something that has been discussed for a number of years and is more than welcomed. It means that each Code can be in control of their destiny with the participants having a voice. Previously the participants felt dominated by Racing Queensland under the previous Government pulling the strings. The Industry had lost direction and the participants lost hope.
Supporting this view, the Gold Coast Harness Racing Club wrote—
... key aspects of racing had been ‘brought to its knees’ through disrespect, carelessness and arrogance emanating from the single control body Racing Queensland Limited.
Furthermore, the Queensland Square Trotters Association agreed that the amendments presented in this bill ‘are fully supported in principle, as there is no doubt harness racing and possibly all codes have been failed by the current structure and governance’.
And, finally, the Townsville Turf Club argued—
The industry covering all three codes, has for too long been controlled and dictated to as a whole under the current Racing Queensland Limited structure, with the proposed new board establishments providing each code with a greater level of autonomy and input into the direction of their respective code of racing.
There is no doubt that the feelings emanating from the entire Queensland racing community are those of abandonment, dissatisfaction and disappointment in the previous Labor administration. The Newman government wants to restore hope to this industry, to the sport of kings, and to reassure the 30,000 participants that they will not be forgotten under our government. They will have control once more and have the ability to direct the industry to a more positive future. This bill delivers this. This bill is the beacon of hope this industry has been waiting too long for.
I would like to acknowledge the recommendations made by the Health and Community Services Committee regarding regional representation through board membership.
In several of the submissions received, a concern was raised that, in order for the independent code boards to be truly representative of the sector, steps should be taken to ensure representation of the regions. Subsequently, the committee made two recommendations (1) that the minister consider regional representation issues when he provides advice to the Governor-in-Council in relation to appointment of members to the control boards; and (2) that the minister inform the House of the steps he will take to encourage eligible persons from regional and rural areas to seek appointment to the control boards and to respond to the industry’s desire to ensure adequate regional membership. I note that the minister addressed both of those concerns in his second reading speech.
The bill further seeks to improve the integrity, transparency and accountability of the racing industry through the establishment of a Racing Disciplinary Board and appointment of a Racing Integrity Commissioner. The Racing Disciplinary Board will deal with appeals to replace the much criticised and flawed process currently in place under Racing Queensland Ltd.
The Queensland Jockeys Association stated in their submission—
Under the present system the Control Body hold all the “aces” in obtaining legal representation or expert representatives as a result of their financial advantage compared to the average appellant ...
The Racing Disciplinary Board will address this issue, ensuring independence of decisions surrounding integrity issues in racing. The bill provides for the appointment of a Racing Integrity Commissioner to maintain the highest levels of transparency and accountability.
The future of racing in Queensland will see a marked difference from its previous history of abandonment. Under the current Racing Act, Queensland bookmakers are allowed only to take bets when present at a race meeting and are restricted to using approved telephones to take bets from customers who are not physically present. This restriction has deeply inhibited their competitiveness with their interstate counterparts who are allowed to use internet based technologies to conduct business at the racecourse and at off-course premises approved by the minister. This bill brings Queensland in line with New South Wales who for the last two years have allowed bookmakers off-course betting capabilities. Victorian bookmakers, I note, are soon to also be granted this option with other states expected to follow. These amendments will help Queensland bookmakers to continue to support the Queensland racing industry and regain a level of commercial viability in an intensely competitive national wagering market.
The establishment of the three code specific boards and the Queensland All Codes Racing Industry Board and removing Racing Queensland Ltd, establishing and transferring appropriate racing integrity functions to the government and providing a competitive environment for Queensland bookmakers will see this bill deliver on the LNP’s election commitment to rejuvenate the racing industry.
This bill delivers the changes that are so desperately required in the racing industry with the vision of a great state delivers great opportunity and a prosperous future of racing in Queensland. I once again congratulate the minister for the introduction of the Racing and Other Legislation Amendment Bill 2012. I commend the bill to the House.
Mrs CUNNINGHAM (Gladstone—Ind) (4.48 pm): It gives me a great deal of pleasure to rise and support the Racing and Other Legislation Amendment Bill 2012 and to commend the minister for these changes. It would be wrong to say I do not know which end of a horse is which, because I do know the business end from the other end and which end bites and which end kicks, but I could not say that I am a regular punter. I would not say that I am a punter at all. However, I do know that the racing industry in Gladstone not only employs a lot of people—many of whom you do not see on race day—but is also the centre of entertainment for a lot of people and, for some, entertainment in terms of wagering. So, for the community that I represent, our Gladstone Turf Club has been an intrinsic part of the community for many, many years. It has not always succeeded. It has had its ups and downs, but the current committee, headed by David Weinert and his group of people, have worked tirelessly on a voluntary basis to get the turf club back on track, and they have done an amazing job.
Mr Costigan: Good old Ferguson Park.
PREVIOUS GOVERNMENT DID ‘NOTHING FOR QUEENSLAND RACING’
Mrs CUNNINGHAM: That is it; Ferguson Park. It has not been helped, however, by the previous government. The changes to the legislation that transferred all of the power to Queensland Racing did nothing for country racing. I was discussing the matter with my parliamentary colleague the member for Townsville, and he was saying how the racing industry withered on the vine. From Gladstone’s point of view it did not wither on the vine; it was Tordoned by Queensland Racing.
Other members have talked about the construction of the Queensland Racing Board and its activities and actions which I would 100 per cent support. The actions of that board in relation to country racing, in particular, were appalling, distasteful and unacceptable. The Gladstone Turf Club has been reduced to five race days a year, and it is supposed to survive on that. It does such a good job. I think they are called ghost race days. Is that what they call them?
Mr Costigan: Phantom.
Mrs CUNNINGHAM: Phantom race days, okay. Well a phantom is a ghost.
Government members interjected.
Mrs CUNNINGHAM: That is okay. I am in the right stall. The club needs to improve on that number of race days. The quantum of racing has been taken by Rockhampton and, to a lesser degree, Yeppoon. I think if you look at the history of the Gladstone Turf Club it shows its bona fides for increased racing days. It is responsible, it is visionary and it is innovative. I think somebody like David—and I have not spoken to him about this so I could be poking my nose in where it is not welcome—would be an incredible asset to a new board. It is appropriate that the minister have some involvement in the racing industry. The government and we as a parliament are responsible for racing in terms of regulation and ensuring the appropriate running of races and oversight of wagering, but it is also appropriate because it affects so many people’s employment and recreation.
I am sure that you will find out quickly enough if your involvement is unwarranted, unwelcome or inappropriate. You will get the message because that is the way the racing industry is. They speak with a big brick bat. However, they are decent people in the main. I have never met anyone whom I would not regard as a decent person. Certainly in relation to my electorate they are wonderful people who just want to see racing and its ancillary interests survive and grow.
This bill will also review and make recommendations regarding the allocation of race dates and prize money. I would again encourage the minister to have a look at Gladstone. We are not one of those TAB racing places, but I think they deserve to have that reviewed. I am referring to TAB races when it is a bigger race day. I know that we have more people attending races than a number of the bigger clubs in Queensland. I am not talking about the south-east corner. If you talk to David and others in Gladstone about how much they have grown the sport and the recreational side of it, there has been talk for so many years. When Russell Cooper was the minister, there was talk of relocating the turf club to a more appropriate site where they can have a grass track. They are still running on dirt. There was talk about relocating to a grass track and having a training track inside—a multi-user facility. It has gone nowhere because previous ministers would not guarantee that the club would get the proceeds of the sale from the track back to allow for a relocation and rebuild. Queensland Racing told them that if the site was sold—and it is a prime real estate site because it is right next to the major shopping centres; admittedly, it is also right next to a cemetery, but it is a well kept cemetery and there are not going to be noise issues—the money would go to Queensland Racing. However, Queensland Racing would not guarantee that the Gladstone Turf Club would get the benefit of that sale so the club was stymied no matter which way it turned, and it did not deserve that because it is a great club which has worked so hard to grow and succeed. I cannot stress that enough.
The committee recommended that the minister consider regional representation issues when providing advice to the Governor in Council about appointments. I would again encourage the minister to look not just at the major centres like Rockhampton, Mackay, Townsville and Cairns but also at some of the smaller centres like Gladstone to be able to get a more rounded board, to be able to speak for all of those facets of racing. We also have another club in my electorate, the Calliope Jockey Club. It has one race meeting a year. That is what it was reduced to—one. It is also a brilliant group of people. It has combined with Polocrosse and the horse-jumping people. Dressage?
Mr Hathaway interjected.
Mrs CUNNINGHAM: Pony club and that type of facility. It also needs a review. The previous racing board would talk about improving standards at race clubs, reduced race meetings and said, ‘You have to find the money yourself to be able to make these improvements.’ It was setting these clubs up for failure when they worked tirelessly for success. The Gladstone Turf Club is certainly the most well organised and the biggest in my electorate, but the Calliope Jockey Club is also a wonderful bunch of people who have improved facilities. It wants to keep racing going. I am certain it would be interested in more than one race meeting a day but I cannot speak on its behalf. It is a wonderful country race club. They are salt of the earth people. I look forward to the changes in this legislation that will give some ownership back to racing in all of its forms—whether it is greyhound, harness or horse racing. It will give some ownership back to those various areas of racing, but it will make the people involved feel re-empowered. That is what has been missing. They have been told what to do and not given a voice. I commend the minister for these changes, even though I admit that I am not personally heavily involved in racing. I acknowledge that the committee also raised a concern about self-incrimination, but in the minister’s reply he indicated that the proposed section—that is, section 113AW—does not abrogate the privilege against self-incrimination. That is an important defence. I commend the minister for these changes. I believe it will be good for the Queensland Racing industry to have a voice—to have a minister who wants to be involved and who does not want to abrogate himself from his responsibilities. I wish him success. I wish the Queensland Racing industry and, in particular, Calliope racing and the Gladstone Turf Club success.
Mr HATHAWAY (Townsville—LNP) (4.57 pm): I rise today as a member of the Health and Community Services Committee to speak in support of our report No. 14, Racing and Other Legislation Amendment Bill 2012.
Mr Ruthenberg: And a fine member you are.
Mr HATHAWAY: Thank you. I note for the record that this was what I thought was a relatively easy piece of legislation for the committee to review. Indeed, in the report one would think it received unanimous concurrence from the HCSC and its members supporting the legislation and recommending its passage. I must admit that I was rather surprised by the member for Rockhampton, who obviously sat in our committee meetings and had a totally different view. I have to question why if a committee member wants to make a reservation they do not put it in writing instead of at the eleventh hour noting their reservations in this format. I will go on further. I thought it was going to be easy but I should have understood that it would not have been. It is rather interesting given the track record of the previous Labor government, which in 2010 made amendments to the Racing Act 2002 and amalgamated the three previous control boards—thoroughbreds, trots and dogs—into the one body which then saw gross mismanagement and arrogance in the extreme by the control board to the industry that is supporting about 30,000 people, both direct and indirect employees of the sector.
NEED TO ENSURE ADEQUATE REGIONAL REPRESENTATION FOR RACING
I strongly support the report from the committee. In particular, I make mention of recommendations 2 and 3, and these will go to most of my discussion this afternoon. The committee recommended that the minister considers regional representation issues when he provides advice to the Governor-in-Council about the appointment of members to the control boards. Likewise, the committee also sought from the minister the steps that he will take to encourage eligible persons from regional and rural areas to seek appointment to the control boards and to respond to industry’s desire to ensure adequate regional representation. This is particularly important to members of this House from regional areas. I include specifically my former colleague from the committee, the member for Barron River, and also my colleagues from Cairns, Whitsunday, Burdekin and the like. I thank the D-G for his response to the committee’s questions which specifically outlined the recruitment process and the reference to regional representation.
My interest in country racing, I have to admit, is entirely selfish because it is very, very important to country communities. Country racing, as the member for Gladstone pointed out, was allowed to wither on the vine under the previous administration. Contrast this with the promises of the Newman government, our commitment to the legislation and also our budget commitment of $4 million across the forward estimates—and the member for Rockhampton should be here listening to this—to rejuvenate country racing with up to 80 race meetings through the establishment of three new programs, that is, the Showcase Country Series, Celebrate Country Series and Sustain Country Series, which I believe have already begun. To date extra race meetings have been scheduled for Kilcoy, Roma, Innisfail, Beaudesert, Goondiwindi, Bell, Tambo, Esk, Mareeba, Herbert River, Alpha and Gladstone, and I welcome the minister’s support for country racing. Any one of us from the regions will easily tell you how important these race meetings are to our local clubs and our community. We heard earlier from the member for Gladstone in that regard.
The member for Mackay—and I think he was a minister in the previous government—was complicit in the demise of racing in our state through the formation of Racing Queensland Ltd. He allowed them to deal in the equity of the clubs and strip them of their assets. He is not there and he was not there before for country racing at all. This government, in contrast, is committed to ensuring that country racing clubs again become the rallying point for their communities, and this is really important. The races enable people to get together on a social occasion and have a flutter if they so choose; I do not support gambling but I did win on Melbourne Cup Day. They are also about getting into the social environment, dressing up to the nines and fashions on the fields. They are about opportunities for businesses to advertise their wares. This is what country racing is about and it draws these communities together. But I do digress.
Mr Bleijie interjected.
Mr HATHAWAY: I accept the interjection from the Attorney-General. The Attorney-General will understand that I have never, ever won fashions on the field. However, back to the point of representation on the control boards. This was very important in a number of the submissions that were made to the committee, including those from the Townsville Turf Club and the Townsville Greyhound Racing Club in my area. This might seem a bit strange, because I recall the member for Rockhampton talking about the lack of consultation in his speech during the second reading of this bill.
There are three major racing agencies within Townsville—Townsville Amateurs, the Townsville Turf Club and the Townsville Greyhound Racing Club. As a member of the committee, I did what every local member should have done when this bill was introduced in the House—I got in touch with them and made sure they had the bill and the explanatory notes and I suggested they consider making a submission. I had a 66.6 per cent success rate with that. I am not sure what the member for Rockhampton did, but that is what you do as a local member—you get out amongst your organizations and you talk with them to find out what they think about it.
Whilst I thank the member for his comments in regard to recommendations 2 and 3 and I also note the D-G’s formal response to the committee, I do understand the merit based and the arms-length recruitment plan that we will have for the appointees to the control boards. I understand it is very necessary that they have the requisite skills, knowledge and attitudes to ensure that racing across the three codes and across the all-code board can move forward in this state. However, I point out to the minister the absolute key importance, from a regional perspective, of ensuring some regional representation on either a code specific or the all-code board.
I draw the House’s attention to section 3 of the Townsville Turf Club’s submission to the committee where they pointed out that in thoroughbred racing there are 122 race clubs across this great state. South-East Queensland and the Downs area contain 36 of the 122 race clubs, and all the areas outside the south-east and the Downs area contain the rest, which is 86 for those people who cannot do the mathematics. The large geographical area north of the Capricornia and the Central West contains over a third of Queensland’s thoroughbred race clubs, and that includes three TAB clubs. That is why this is important to the regional racing community.
I also note for the House and in particular for those opposite—who would not understand open and transparent accountability in government if it was a bus and it came smashing through the doors this afternoon—how we have translated this into action. We have established the Racing Disciplinary Board and the Racing Integrity Commissioner to ensure that racing in Queensland is open, has integrity and will move forward for all the components of our industry. Likewise, I welcome the opportunity for Queensland bookmakers. This government is about removing red tape. This government is about setting the stage for business. We are about ensuring that Queensland bookmakers can compete on a level playing field. I welcome the fact that they will become more competitive with their interstate colleagues through this legislation. We will enable our bookmakers to use internet based technology to conduct their business both at the racecourse and after meeting a minimum requirements level off course.
As usual, I would like to acknowledge the terrific support that we had from the committee secretariat. They worked tirelessly and in a very quick fashion and provided us with all of the information. I would also like to acknowledge our outgoing chair, the member for Redlands, and welcome our new chair to the committee. I thank the minister for introducing this bill to the House and also for his comments on the second reading. I commend the bill to the House.
LACK OF INTEGRITY UNDER BENTLEY BOARD DESCRIBED AS APPALLING
Mr SHUTTLEWORTH (Ferny Grove—LNP) (5.08 pm): I rise in the House this afternoon to discuss the merits of the Racing and Other Legislation Amendment Bill 2012. We should not at this point underestimate the passion of the racing industry in Queensland, and neither should we overlook the commitment we made to the state of Queensland to review this industry and to ensure that our amendments are undertaken with a deliberate mindset to address the wrongs of the previous maladministration of this vital industry.
Before I outline the benefits of this bill, I feel it essential at this point to highlight to the House just a few of the many examples where under the stewardship of the previous administration we have witnessed an appalling lack of integrity and where the self-serving, feathering of one’s own nest was typical run-of-the-mill methodology of those opposite. On 27 March 2012, just three days after the electors throughout Queensland sent a fairly clear message, the Courier-Mail reported a story with the heading ‘LNP examines payouts as Racing Queensland Officials Malcolm Tuttle, Jamie Orchard, Paul Brennan, Shara Reid quit’. The article stated—
The exodus at RQ— Racing Queensland—started on day one of Labor’s demise.
Racing Queensland chairman Bob Bentley confirmed last night that all four will be paid out the remainder of their contracts.
What we now know is that in August 2011 the former board of Racing Queensland agreed to alter the employment contracts of the four aforementioned top executives, including the addition of a material adverse change clause and a 30 per cent pay increase. Within two days of the 24 March election Racing Queensland Limited was lumbered with the enormous payout of $1.858 million, which was inclusive of 14 months salary, redundancy payments and leave entitlements. It is important to note that the executive payments were not benchmarked to industry or linked to performance outcomes and the introduction of these changes was undertaken by individuals who were directly affected by subsequent changes.
Of course, this was just the icing on the cake. There are numerous examples of financial mismanagement, too. The former Labor administration’s financial standards were all too evident within Racing Queensland Limited. Racing Queensland was at the brink of destruction. In the recently tabled annual report, Racing Queensland Limited outlined how they are expecting to post a $14 million loss this year. A number of factors contribute to this forecast not the least of which was the centralisation of control, the building up of bureaucracy and loss of efficient processes.
GOLDEN HANDSHAKE EXECUTIVES NOW WORKING FOR CONTRACT FIRM
Of course, the effect of this magnificent golden handshake contributes in excess of $1.35 million above budgeted costs. We could also review the process that the board used, which was questionable at best. We hear of a number of contracts awarded to a single engineering firm valued at $150 million without competitive tendering. This is in complete contrast with Racing Queensland Limited’s procurement process, which stipulates that works in excess of $10,000 are to be competitively tendered. Alarmingly, two of the executives who were integral to this process were recipients of the magnificently generous golden handshake and are now employed in senior positions of the same engineering firm. Is it any surprise that the racing industry, an industry that employs many thousands of Queenslanders and supports many families throughout this great state, looks to this LNP government with great confidence and comfort knowing that we are the government that is able to provide a secure future with true accountability and transparency?
I now return to the amendment bill. I will begin by highlighting how our amendments will provide the industry with the certainty that they seek. The objectives of this bill are to remove Racing Queensland Limited as the control body for thoroughbred, harness and greyhound codes of racing; establish a Queensland all-code board and three separate control boards; and permit Queensland bookmakers to utilise the internet to undertake bookmaking. The Queensland thoroughbred racing, the Queensland harness racing and the Queensland greyhound racing boards will be established as code-specific control boards and will be vested with the powers necessary to ensure that the specific board will be sufficiently empowered to undertake the management of their racing code.
The primary task of the control board is to undertake the actions directed by the all-codes board in terms of strategic direction to review or recommend meeting dates, allocation of prize moneys as recommended by the all-codes board and interfacing with the industry stakeholders to facilitate optimum outcomes within each of the industry codes. As a result of this bill the industry stakeholders will feel empowered to address specific concern facing their specific code of racing. For too long through the dysfunctional centralised bureaucracy each sector of this industry has felt voiceless and constrained. These newly empowered control boards will develop and review strategic plans and a rolling five-year infrastructure plan for their code of racing in conjunction with the overall direction of the all-codes board.
There was a concern raised about the level of rural and regional representation on the three-member board. The department response to this concern is a well considered one. Criteria and enforced memberships of boards often result in less than optimum outcomes. It is, therefore, thought that the membership of the board should only be the ‘best fit for purpose’ rather than putting in place regional location requirements. Well qualified and experienced regional individuals will be encouraged to apply to ensure a balanced representation is possible, but it is not necessary to accept substandard membership simply to satisfy a regional representation. All that said, the committee does recommend that there are processes in play that encourage and support regional applications. If there are individuals from the region with suitable skills identified, it is recommended that the minister consider the regional location as an added benefit to the applicant’s consideration.
Mrs Frecklington interjected.
Mr SHUTTLEWORTH: Absolutely nothing! With the three control boards established, the three chairs will become members of the overarching all-codes board. This board will be responsible for developing the strategy for the overall industry, pursuing challenges facing their individual industry or all codes, and identifying priorities with regard to capital expenditure and future developments. In addition to the chairs of the control board, there are two additional members who must have experience in relevant areas of need such as law, business, financial management, marketing or racing. The appointments to the board and the executive positions will be staggered to ensure that there is a well maintained management succession and consistently maintained transfer of industry knowledge.
There are other aspects of the bill that are also very important components in ensuring that the industry re-establishes confidence in their own industry’s future. This confidence may come through the fact that their industry will now compete on a more level playing field when compared to other jurisdictions. This comes about because of the amendment to the wagering and bookmaking components of this bill. Across various states bookmakers enjoyed a staggering 150 per cent increase in revenue between 2005 and 2011. However, in Queensland bookmakers lost 40 per cent over the same period. This is in no small part attributed to the antiquated laws we have in regard to the use of internet for bookmaking activities. Thankfully, this is addressed in this bill and bookmakers will now be able to use telecommunication systems and, therefore, ensure that they are able to compete with bookmakers throughout other states. Other amendments will ensure that the interactive gambling act current tax rate of 50 per cent will be reviewed to comply with other bookmaking taxation levels. There will also be the capacity to take off-course wagers, further increasing the competitiveness of our Queensland bookies.
The last aspect I wish to address is the integrity functions of the racing industry. Most importantly, this function will be undertaken by an independent arbiter who will be separate from the racing industry. There is also provision within the bill to ensure a level playing field whereby if an aggrieved person chooses to employ counsel, the control body may employ counsel. However, if the aggrieved person chooses not to employ counsel, the control body cannot either. This should ensure that the perceived financial disadvantage between the control board and an individual is not a determining factor due simply to the capacity to employ counsel. A true level playing field through an independent disciplinary board does provide the racing industry with increased confidence about the management of the disciplinary and appeals process.
In closing, I would like to thank the secretariat for their outstanding support of our committee and also acknowledge the efforts of our previous chair, the member for Redlands, Mr Dowling. I thank the minister and his department for the level of consultation undertaken and the confidence he is returning to this vital industry of the state of Queensland. I commend the bill to the House.
REMOVAL OF RACING QUEENSLAND LIMITED ‘THE BESET NEWS OF ALL’
Mr KNUTH (Dalrymple—KAP) (5.17 pm): I support this legislation. The policy objectives of the bill state, in part—
remove Racing Queensland Limited (Racing Queensland) as the control body for the thoroughbred, harness and greyhound codes of racing;
I never thought I would see the day. I think that is great news for Queensland Racing in general but especially for country racing. I believe deep down that when I was elected in 2004 it was partly due to starting a petition supporting country racing. Back then I saw many country race clubs in my electorate such as the iconic Mingela close due to funding being cut. Over 2,000 people attended that race meeting. Likewise, Georgetown held three race meetings a year but funding was cut for Georgetown and it closed down. Also Capella had its great race meeting closed. Jericho’s great race meeting closed down as well. Alpha, which held another great racing meeting, closed after funding was withdrawn. I say to the minister that the good news is that Alpha is now setting up another meeting. A bloke named Kevin Wiltshire, who was a former president of the Jericho race club—and Jericho is right beside Alpha—is kick-starting that club. They are hoping to hold a race meeting by next year, which is good news.
I believe that the previous board, particularly under Bob Bentley, completely gutted country racing—full stop. The devastating effects on country racing will take a long time to recover from. There was a network of race meetings that jockeys and trainers would attend year in and year out and they could travel from one meeting to another. When the number of meetings was reduced and there was less funding provided, the jockeys and trainers started to lose heart. There was no incentive for them. Even the local graziers played a big part in ensuring there were horses to train for that special event every year—year in and year out.
In relation to country racing, I can honestly say that in the past the support from government was absolutely pathetic but the support from the people is alive and well. People want to go to race meetings. I cannot speak for city racing, but I see the races in Brisbane and I see the Melbourne Cup on TV. The support from the people for country racing is alive and well. For example, this year 3,000 people turned up for the amateur races at Charters Towers, 6,000 people turned up for the Mount Garnet races and last year there were 2,000 people at the race meeting in Moranbah. The social interaction and the economic spin-offs keep those communities alive. They thrive on it and look forward to those special events, year in and year out. Take that away and you take away the lifeblood of those rural communities.
I alert the minister to something we have to be very careful of. The Moranbah North race meeting attracts 2,000 people. Anglo coal provides great sponsorship. Previously, Queensland Racing would see that there was a race meeting in Mackay on the Thursday and would not allow those horses to race at Moranbah on the Saturday. The Mackay race meeting is important, but it is held on a Tuesday and is attended by about 30 people whereas the Moranbah meeting attracts 2,000 people. We had to fight extremely hard to change that situation.
One of the policy objectives of the bill is ‘to ensure that the minister responsible for racing has more involvement in, and power over, the operations of the control body’. I believe that that should carry some weight. As a result of unfavourable decisions made by Queensland Racing in the past, so many communities were completely kicked in the guts. A racing event that attracted 2,000 or 3,000 people would suddenly be cancelled for particular reasons. I cannot give all of the reasons of the previous racing body that completely discriminated against country racing.
One of the things hurting country race meetings is security. Country race meetings cover a broad area. There is a lot of area to manoeuvre. The cost of providing security for a race meeting is sometimes $30,000 to $40,000. The clubs just do not have the funds to provide that, especially when they have to put up railings and comply with other types of regulation. As a result, special events such as Dog A Hog and the Peeramon pig hunt are lost. Organisers struggle to stage those events because of security issues. In the same way, it is hurting many race clubs. I commend the minister on this bill. It is good legislation and I fully support it. It is about time it happened.
LEGISLATION RESPONSIBLE FOR ‘BRINGING RACING BACK INTO THE COUNTRY’
Mrs FRECKLINGTON (Nanango—LNP) (5.23 pm): It is with great pleasure that I rise to speak in support of the Racing and Other Legislation Amendment Bill 2012. I congratulate the Minister for Racing for eventually bringing racing back into the country—how it should be for Queensland country racing. It is great to see a government that actually delivers on its promises.
We have promised the Queensland people that we will rejuvenate Queensland’s racing industry, because we recognise the enormous value that the three codes of racing—thoroughbred, harness and greyhound—have in our economy, our society and our community. The valuable racing industry employs more than 30,000 people and supports 130 community based clubs. Several of these clubs, and one of the most important clubs in Queensland, are actually based in the Nanango electorate, hence why I thought it essential that I speak on this bill. The Nanango electorate is home to the great race clubs of Kilcoy, Esk, Nanango and Kumbia and the Burrandowan Picnic Race Club—fantastic country race clubs that are in the position they are in because of the hardworking community members who are the good constituents of my electorate.
When I put up my name as a candidate to represent the Nanango electorate I met some amazing people. One of the first couples I met was Tammy and Craig Fritz from the Maringandan produce store. This couple said to me that their little business of training up horses for harness racing had been stripped under the Bentley administration. Then I went down to Esk and I met Darren and Rebecca Ebert, who have the butcher shop there. They are also involved in the harness-racing industry. They felt that their industry had been completely stripped under Racing Queensland Ltd. I had discussions with great people who had built up race clubs like the Esk race club. People like Dr Tony Fitzgerald have worked tirelessly for that club, which was stripped bare and left with just one race meeting per year. I thank the minister for giving the Esk race club another meeting, which will be held on 22 December. As part of getting in the Christmas spirit, I encourage everyone to come along. Esk is not that far away from this chamber. That race day will be a fantastic day on which we can celebrate in the lead-up to Christmas.
I also congratulate hardworking people like Con Serle and the race club at Kilcoy, which has also been very lucky to get a much needed extra race day. It is wonderful. The minister has already attended a Kilcoy race day and was very well received. Everyone on that day was congratulating him for seeing the importance of country racing and appreciating what it does for our community. It brings people back.
People from all over the state come back for our country race days. I also want to congratulate the Kumbia Race Club. As everyone knows, at the recent Kumbia races we were fortunate enough to have in attendance the Premier, the racing minister and several other ministers including our Attorney-General, who entered the Fashions on the Field. The lovely wife of the Minister for Local Government judged the Fashions on the Field, hence why the Attorney-General unfortunately could not win! The wonderful thing about that is that we were able to show this government how important country race days are. Thousands of people turn up and spend money, whether it be in the dress shops or other local shops or even just getting their hair done. It all helps our community. Kumbia now has not only the Melbourne Cup feature race day but also a race meeting to be held on 1 June 2013. I encourage everyone to get out to Kumbia to enjoy a special race day.
This bill will remove Racing Queensland Ltd—what a fantastic idea of the minister and this government—and establish a code-specific board for each of the three codes of racing. The new three-person control boards—the Queensland Thoroughbred Racing Board, the Queensland Harness Racing Board and the Queensland Greyhound Racing Board—will be provided with powers and functions to assist the new Queensland All Codes Racing Industry Board to properly manage these three codes of racing. As a previous speaker has said in this House today, there is a wonderful opportunity to get people from the regions onto these boards. We have amazing people in the regions who have spent their lives supporting their community through their local race club. I encourage the minister to embrace regional people who put up their hands to go onto these boards so that we can cover the whole of Queensland.
I do not need to repeat—but I will—that after 20 years the tired Labor government abandoned country racing. It abandoned every form of racing and completely destroyed the racing industry, and we are building it back up again. Already within this first short period we have been in government we have seen the rejuvenation of country racing, and I can only congratulate the minister and our government for that. The amendments proposed in this bill will restore confidence in this industry in Queensland. It is just a wonderful feat. Amendments to the Wagering Act will extend funding for the Racing Industry Capital Development Scheme from 2014-15 to ensure that our government can deliver our $110 million infrastructure promise for racing venues across Queensland. This will provide a much needed economic boost for this important industry. Again, I congratulate the minister for this very important bill that will do so much for my electorate of Nanango. I commend this bill to the House.
Mr COSTIGAN (Whitsunday—LNP) (5.30 pm): I am absolutely delighted to rise in the House this evening to support the Racing and Other Legislation Amendment Bill and place on the parliamentary record my enthusiastic support for racing, in particular country racing, together with various members who have participated in the debate so far.
What is country racing? I will give members a hot tip: it is racing in the bush, it is racing in our country towns, it is racing in our provincial cities and it is part of the social fabric of these communities. Over the years I have had the pleasure of attending many country race meetings around Central and North Queensland.
Mr Symes: As seen on Facebook!
Mr COSTIGAN: I have been seen on Facebook at various racetracks as the member for Lytton points out. Those tracks include Ferguson Park in Gladstone, Pioneer Park in Emerald, Ooralea in Mackay of course, Keppel Park on the Capricorn Coast, Ben Bolt Park in Bowen and Cluden in Townsville. Ben Bolt Park in Bowen is celebrating its 150th anniversary next year.
Mr Walker: Not the Dapto dogs.
Mr COSTIGAN: Not the Dapto dogs, I might add. Over the past decade I have been to all of those tracks that I have mentioned. I should also place on record that I am a very proud member of the Mackay Turf Club and the Bowen Turf Club, with, as I said a moment ago, the latter celebrating its 150th anniversary—the oldest turf club in the oldest town in the north celebrating 150 years of racing next year at Ben Bolt Park in Bowen. It was again tremendous to be alongside so many fun-loving people from the Whitsundays at Ben Bolt Park and even further afield—places like Mackay, Townsville and the Burdekin—at this year’s Bowen Cup. The member for Burdekin is a regular there and it was great to be alongside her on that memorable day. I personally had the good fortune of co-hosting Fashions in the Field—not the first time I have done that. Suffice to say that the ladies looked spectacular and the blokes not too shabby either, although it is fair to say that it seemed to be the case that the fillies caught the attention of most observers.
As the member for Townsville remarked in his contribution to this debate, country racing is an opportunity for people to dress up, to have a punt, to have some fun. What is wrong with that—having some good old-fashioned fun, reconnecting with people you have not seen perhaps for years, essentially meeting up with your mates and having a damned good time over a few beers? Let us contrast that with Labor, who were the joy killers when it came to bush racing. I am sure the member for
Gregory and the member for Warrego will know what I am alluding to here when I start mentioning places like Jericho, Windorah, Stonehenge, Alpha and Mitchell. They were all killed off thanks to Labor and other places such as Aramac and Tambo took a hit when it came to losing race dates, as did other clubs right around Queensland. In the dark days under Labor officials of country race clubs had very little say. If they did not sign over the ownership of the club, they basically did not get a brass razoo for capital works. That is what it came to.
Back in 1989 when I worked in Bowen racing was a regular occurrence at Ben Bolt Park, but nowadays guess what? They only race four times a year—pretty ordinary, as I said earlier, considering that this is the oldest turf club in North Queensland. In the decades prior, the old bushies around the traps would remember how horses would be put on the train at places like Collinsville and railed down to Bowen because the road was not sealed in those days. The Peter Delamothe Road, as I still call it, was not sealed until 1969. Of course, that road remembers a great champion of the people of Bowen. Returning to Labor’s approach to country racing over these past two decades, we have seen two decades of waste, golden handshakes and shonky deals. You do not have to go too far to see the carnage that it left behind. In the Mackay-Whitsunday hinterland at places like Bowen River and Collinsville it is sad—very sad. My uncle Brahma Costigan first went to Bowen River in the late 1950s. Like a lot of bushies—salt of the earth people—they lament the loss of racing at Bowen River. When I was there in June this year alongside the member for Burdekin, who of course has a great history of going to Bowen River with her family and camping under the stars, you can see the look in poor old Brahma’s eyes wondering how such a good thing for the bush bit the dust. In many cases these bush clubs died because of that lack of government support and, more to the point, governments that had a mission of just shutting them down, demanding unrealistic standards at racetracks. To think that you can have an Eagle Farm or a Doomben type set up in the bush is of course pure folly. The bushies certainly know it, but Labor regrettably just did not get it.
One of the great components of the aforementioned bill is the new approach to ensuring representation for regional and rural areas—something that bush racing has been crying out for for some time. I congratulate the minister in making this possible. For country race lovers, it has been a long time coming. The other two codes of harness racing and greyhound racing have also suffered thanks to two decades of Labor in Queensland. In the early 1990s one of my old jobs was to report on the dogs at the Townsville showgrounds. At that time I was working for the Townsville Bulletin and I got one of the big jobs: no court reporting, no chasing ambos; I would be going out chasing the dishlickers on a Thursday night. They used to hold the newspaper for me. The printers would say, ‘When are you going to be back, Costigan? We want to file that copy so we can print the damn thing!’ They were great days. Sadly, there is no greyhound racing in many places in regional Queensland, including my home town of Mackay, where of course the dogs enjoyed strong support many years ago on a Thursday night—like elsewhere across the state.
QUEENSLAND HARNESS RACING BOARD ONLY REPRESENTATIVE OF SOUTH-EAST
It is the Queensland Harness Racing Board by name, but it may as well be the ‘South-East Queensland Harness Racing Board’ as far as I was concerned. You only have to look at those who used to be regulars at paceways in places like Cairns, Townsville, Mackay and Rockhampton at good old Callaghan Park. In fact, in Rockhampton people like Mel Slade, a great stalwart of the Rockhampton Harness Racing Club, still shake their head at what happened—as I do recalling years gone by when I would be only too pleased to host club functions at places like the Cambridge Hotel. Harness racing is in the blood of Mel Slade, like many others who love the trots, and I am delighted to see his granddaughter nowadays in the gig winning races and making her Poppy proud. I noted the contribution to this debate by the current member for Rockhampton, who indicated that the opposition would support the bill. How noble, because it was people like his predecessor who hurt the racing industry, causing irreparable damage in the eyes of so many observers! The member for Rockhampton even had the hide to rave on about the so-called lack of consultation on this bill. As I alluded to earlier in the debate, where was the consultation when it came to shutting down clubs like Bowen River and Collinsville?
Mr Symes: None!
Mr COSTIGAN: That is right; there was none. There is no doubt that under Labor, which prior to March this year occupied the treasury benches for 20 of the last 22 years, racing did suffer. In the case of regional communities, it was killed off in some places up and down the coast and of course areas west of the Great Divide. In this debate we have already heard about the much needed reforms to racing in Queensland and this new era being ushered in by our new Minister for Racing that will be delivered thanks to this bill.
I certainly will not double up too much on that but simply sum up this debate from my point of view by quoting the words of the minister—
The 30,000 people who rely on the racing sector for their employment will once again have a voice.
I commend the bill to the House.
LONG WAIT IS OVER FOR RAY STEVENS WITH CHANGES NEEDED FOR RACING
Mr STEVENS (Mermaid Beach—LNP) (5.38 pm): I rise today to speak to the Racing and Other Legislation Amendment Bill 2012.
I have been waiting a long, long time for this day. In fact, for the six years that I have been in parliament I have advocated strongly for this day to come. I congratulate the minister on the wonderful work that he has done in bringing this important bill to the House within the first eight or nine months of this LNP government. Being a brand-new minister for the racing industry, he has done a wonderful job in going out and assisting—and for once all three codes have been assisted— to get better legislation and to make a better life for those in the racing industry right across-the-board.
My humble experience with racing goes back to the first Melbourne Cup winner that I can remember, which was Lord Fury in 1961. That horse was an eight-year-old gelding—the last eight-year-old to win. That is why those people who this year backed Americain lost their money. In 1962, Even Stevens won the Melbourne Cup. For obvious reasons, I cleaned up in my primary school grounds. I think I won two shillings. From there I went on to be on the Richmond Diggers Race board in north-west Queensland as a 21-year-old. I loved and enjoyed country racing. I have been on the Gold Coast Turf Club racing board for 14 years.
So I have an experience and a love of a sport that was absolutely decimated by the Labor Party and the cartel of Labor mates that it put in charge. They drove the industry into oblivion. It tore my heart out to see what the Labor Party did to the racing industry. When we had this marvellous clean-out of Labor members in March, I knew that, again, racing had a friend in the LNP government.
So from there we come to this legislation. While I was in opposition I advocated for integrity and having three separate codes. Those in the industry would know that thoroughbred racing, harness racing and greyhound racing are like chalk and cheese in character. I have been involved in both the greyhound industry and the thoroughbred industry. I have never dabbled in harness racing, but there is always tomorrow. Quite clearly, those three codes have a different clientele. They have different industry participants and they have vastly different interests. This new arrangement that the minister has put in this bill of three codes with an overarching board will undoubtedly deliver the best possible outcome for all three codes.
As we know, the codes are funded primarily by the gambling dollar. That is a fact. If there is no gambling, there is no prize money. If there is no prize money, there are no horses. It is a very simple equation. We have to have participants in the industry; otherwise, there is no gambling. It is noted that in New Zealand the gambling dollar is sliding away from the racing industry. People are gambling on rugby union and rugby league. People are punting on those sports, which means that there is not the money to put back into the three racing codes.
So we have to start with a young Ray Stevens being at the races and other people enjoying going to the races with their families. Going to the races is not about the gambling; it is about enjoying the horses—those magnificent animals—the environment and the skills of the jockeys. That is what this racing bill is about.
This racing bill is very much about putting good people who understand racing and who are involved in racing in charge of racing. From the board’s point of view, we have Kevin Dixon leading the way. He has done an excellent job, in concert with the minister’s direction, in coming to this legislation today, which I know will deliver a much better industry than we had previously under the last period of Labor government—from 1998 through to 2012.
A big winner out of this LNP government has been country racing. The Premier has gone to lengths to make sure that country racing has been reinstated. I think the member for Beaudesert probably thinks his area is involved in provincial racing. There is a thriving racing industry in the Beaudesert area. We want to see that particular area come back with major training facilities and major input from people involved with horses.
To me, as a person who loves the racing industry, as a person who loves the people in the industry, this bill before the House is a great joy. Yes, there are 30,000 employees in the racing industry, but many more people—in fact, hundreds and thousands of people—get involved in the industry as their sport, as their passion. The racing industry is not just a business; it is a sport that people feel passionate about, as do people feel passionate about netball and other sports. As someone who has funded racehorses, I can assure members that very few of them make money. In fact, the last horse that I had that was any good won seven races—$90,000 and we broke square. So the racing industry is very much an industry that people have to love to be involved in and it has to be supported like all other sports and interests are in this great state.
As I have mentioned, right across Queensland hundreds and thousands of people are involved in the racing industry. For people in country areas, the racing industry is the lifeblood of their social life. In many cases it provides the only way for people throughout country areas to come together. To me, the way racing in Queensland was driven by the previous Labor regime was absolutely abhorrent and deserving of all the penalties imposed on those people should that be the case in the future.
I cannot say a lot about the bill that has not already been said. However, what I can do is implore all people involved in racing—all three codes—and particularly people who are involved in country racing, with whom I have great empathy through my upbringing, to get on board and be at one with the industry, because the racing industry has to survive in a very competitive market against other forms of gambling on other sports. That is where we are. We cannot go back. You cannot ban gambling on various interests. We have to involve people in the harness, the greyhound and the gallops industries to make sure that people want to gamble on the races because that is what they know. People tend to gamble on the things that they know. Obviously, I do not know enough about racing because I have not won very much lately.
Racing provides people with a wonderful opportunity to socialise and to be involved in a very rewarding sport. The thrills are there and, hopefully, one of these days we might even have an LNP syndicate buying a horse and winning the Melbourne Cup.
KATTER SUPPORTS THE BILL FROM A COUNTRY RACING PERSPECTIVE
Mr KATTER (Mount Isa—KAP) (5.47 pm): I rise to offer my conditional support for the Racing and Other Legislation Amendment Bill 2012. As a country lad who has been to many country race meetings, it would be remiss of me if I did not convey to the House the excitement and glamour of these events.
I am sure many members here are aware of that. To put country racing in perspective, in my electorate of Mount Isa there are 13 non-TAB clubs that race anywhere from one day to a weekend, bringing to the region thousands of visitors, plenty of money and a piece of country racing culture that is impossible to replace. Included in those races is the iconic Birdsville Races. It is for country racing that I direct my concerns about this bill.
I think this bill is a great move in the right direction. The government identified that there were huge problems in the racing industry, and I am very complimentary of that. But there still are problems in the racing industry that are very challenging. If members share an appreciation of the history, tradition and optimism found at any country race meeting in the north-west, then they will share with me the hope that this amendment bill will deliver a just and worthy investment in the future of these race meetings. Sometimes people drive for five or six hours to attend a race day. They party long and hard—usually for the weekend.
This industry is a huge direct employer. I have heard the figure of 30,000 referred to. For those down the food chain of providing services and supplies to the racing industry, it is all about the people. I encourage members who are voting for this bill to look beyond the flashing horseflesh, which carries the hopes of the punters and the dreams of its owners, and think about the little bloke sitting on the fence of the birdcage watching the thoroughbreds and probably finishing his lunch. His parents will not be far away, but it is a fair bet that this siblings are socialising with their neighbours from 150 kilometres away. As one family, they are not just part of the crowd; they are an important part of the economy which, for many country towns, is struggling.
Racing is a critical part of the social fabric of those towns. Race meetings for them—and by association the racing clubs—are like Christmas to retailers. They must make the most of it while they can. I applaud many of the aims of this amendment bill, in particular the establishment of three boards, which is a bold move and one which has been requested by industry representatives who for too long have been held to ransom for their funding by Racing Queensland. But there is a caution: the integrity of the overarching Queensland All Codes Racing Industry Board must be ensconced in legislation. Racing too often can be its own worst enemy in terms of breaches, and a credible and just control body is paramount. To that end I fully support the establishment of a Racing Integrity Commissioner. I also applaud the authors of this bill for their proposal to extend the funding of the Racing Industry Capital Development Scheme from 30 June 2014 to 30 June 2015. Capital development and infrastructure costs are often beyond the budget of many country non-TAB Queensland race clubs and this has the potential to put at risk some of its operations. In terms of prize money, it is virtually impossible to impart to the members of this House the critical role it plays in the life and future of country racing, in particular with non-TABQ meetings. In the metro and larger regional clubs, adding $10,000 prize money onto a $150,000 horse race is barely noticed, but add $10,000 to the $25,000 Cloncurry Cup and you have just handed the club a marketing windfall and given the district’s owners and trainers added incentive to make the three-hour drive from Richmond or Hughenden.
I urge members to consider the allocation of 5.32 per cent of the TABQ’s net profit to be returned to those non-TAB Queensland clubs. The challenge in the future is that that is adequately distributed to maintain an industry that offers adequate prize money. We try desperately to hold on to many of these smaller race meetings but the problem goes deeper than that because many of the trainers are struggling themselves to remain viable and to support these events. If the prize money is not there it makes it very difficult. I acknowledge these are very difficult issues for the minister and I commend the way that this has been taken on. That figure from the TAB has not been amended for many years. It has not matched the rising cost of running many of these clubs and their facilities. That will be a challenge for the future.
On the racing front it is disappointing that not one of the 15 Showcase Country Series, Celebrate Country Series and Sustain Country Series events are being in held in the north-west where there are some very popular race meetings, despite Racing Queensland’s promise to rebuild the quality of the country racing circuit in Queensland. That was disappointing, but is hopefully something that may change in the future.
I mix with a lot of trainers and jockeys in the Mount Isa area. I would not profess to be an expert in the industry. Like most people in regional areas you cannot help but have a lot to do with the industry. The main issue that came up was that the old regime under Bob Bentley was certainly not popular at all. There were not many kind words flying around country race meetings when he was at the helm. It is very welcome that there is a new regime in town. I commend the minister for that. Many people acknowledge that these clubs are struggling. There is not a lot of money around and there is a big challenge from online gambling. The gambling dollar is being spread very thin these days. That has been identified and addressed by this bill. Again I commend the minister for that.
Another comment that has been made by people in the industry is that in the past country racing has not been promoted enough in Queensland and that Victoria are leaders in the field. I pass that on. Perhaps there is scope to take a look at what they are doing there. Perhaps we can copy some models they have. All in all I think this puts us back on the right track. Hopefully we can invigorate country racing which means so much to the people in the area that I represent. I think many people acknowledge that it is a challenging industry. There are some huge problems there. The joke I like making most with my trainer friends is that there is a lot of money in horseracing. They all laugh when I say it because they are all battlers and no-one is making much money out of it. They do it for love and they provide a great platform for entertainment. Many blokes meet their wives and girlfriends at these events. They are always the big events of the year in these country towns. They form an important part of the social fabric. This bill puts racing back on the right track. I commend the minister for the work that has been put into it and commend the bill to the House.
BEAUDESERT TO EVENTUALLY BENEFIT FROM INFRASTRUCTURE PACKAGE
Mr KRAUSE (Beaudesert—LNP) (5.54 pm): I rise in support of the Racing and Other Legislation Amendment Bill 2012.
In his explanatory speech the minister has noted that there are 30,000 people in Queensland who rely on the racing sector for their employment and they will have a voice once more. Several hundred of those reside in the Beaudesert electorate so I am very happy to support this bill. I thank the minister for his assistance and attention which he has given to me since the day after the election and for delivering some results for the Beaudesert Race Club and the Beaudesert Racecourse.
In this bill we are implementing part of the LNP’s election policy commitments in respect of restructuring the racing industry and rejuvenating country racing. We are amending the Wagering Act 1998 to allow for the provision of our infrastructure funding package. That is an important package to be redirected into the industry, in particular country racing venues, and I am pleased that the Beaudesert Racecourse will be able to benefit from some of that package to support the industry in my area. There are some approximately 200 horses, perhaps a few more, that train in Beaudesert. It is a growing number. It is real thoroughbred country where a lot of people over the last couple of decades have moved in order to train and in order to set up their stables. It is close to the Gold Coast, it is close to Brisbane, it is close to Ipswich and it is also close to New South Wales. The training industry and the spelling industry, the whole equestrian industry in the electorate around Beaudesert, support a lot of jobs: trainers, stock feed retailers, vets, even farmers who sell their excess produce to trainers to feed their horses. It is very important and that is why I am glad that the minister has been able to assist.
We have a proud history of racing in Beaudesert. The first race was held in Beaudesert in about the 1880s. There were several clubs but eventually Beaudesert became the pre-eminent one. Country racing was a part of the social scene. In the seventies and eighties there were hundreds, sometimes even thousands of racegoers visiting Beaudesert Racecourse for weekday meets. Wouldn’t it be fantastic if we could go back to those years? I am not sure that we will get to that, but we certainly need to support these country race clubs.
There has been some great progress so far in the electorate. We have a new track—sand and turf. There are some new facilities going in as well. It has been recently announced that there will be fortnightly TAB meets in Beaudesert at the racetrack. That is a great boon for the local racing industry. I thank Racing Queensland Limited under its new management for that decision. I also thank the minister because I know that through my strong representations to him there has been some representations made to RQL in relation to Beaudesert.
I would like to refer to an article from the Beaudesert Times from today titled ‘All systems go at race club as work continues.’ I table the article.
The first race meet for the new Beaudesert Racecourse will be on 28 January, which is actually the Australia Day holiday. I invite all my parliamentary colleagues to come to Beaudesert and enjoy a great showcase country race day. It will be a fantastic day. Members will not recognise the facilities if they have been there before.
Mr Costigan: The Kingfishers will.
Mr KRAUSE: The Beaudesert Kingfishers will probably be in attendance, member for Whitsunday. I know a lot of the Kingfishers. They are not only a great rugby league players but also great race fans as well. You will be well at home, member for Whitsunday. The fact is that the government is supporting country racing and, in particular for my electorate, is putting Beaudesert back into a gallop. It will be a great day on 28 January. It is part of the Showcase Country Series. It is the first one; Anzac Day will be the next one. The fortnightly TAB meets are fantastic. I know that the whole community will be looking forward to that.
Of course, some issues remain to be resolved. I will be speaking with the minister about them in the future. One is the issue of tenure over racecourses. As many members will know, Racing Queensland Limited resumed tenure over many local racecourses around the state. In many communities there is a great desire to get that tenure back. They want to get return the ownership to community hands, whether it be the race club or another body. If it is not going to be in the hands of the all-codes board, we can look at alternative structures in relation to ownership. Perhaps it will not be just race clubs that are involved in the ownership of a course; we could utilise country racecourses for other community purposes, which would enable them to have a more viable future, relying not only on the racing industry but perhaps looking at other sources of income as well.
In conclusion, I will be supporting the bill. I understand the opposition will be supporting the bill as well, which is fantastic. I thank the minister for all of his assistance. I commend the bill to the House.
WON THE FIGHT TO KEEP DEAGON FOR THE GALLOPS AND FREE OF TROTS AND DOGS
Ms MILLARD (Sandgate—LNP) (6.00 pm): There is a very good reason that tonight I stand to talk about the Racing and Other Legislation Amendment Bill, which I decided to do while sitting here listening to other contributions.
It is simply because the headquarters of Racing Queensland Limited is based in my electorate of Sandgate, at Deagon. For the record, thoroughbreds have been at Deagon since 1886 and that is the way we want it to stay. I want to tell a quick story about what happened during the election campaign and about how people were terribly afraid about what was happening with the board of RQL at that time. I received an anonymous phone call from a trainer who said, ‘We need your help. No-one will help us. No-one wants to listen to us.’ I said, ‘Okay.’ From that moment, I have been involved with the trainers, with the jockeys, with the track riders, with the stable hands and, since the election, with the RQL board and the racetrack managers. Basically, the previous board wanted to move thoroughbreds away from Deagon, although they did not really know where to. They wanted to rip up people’s families and their communities. They wanted to stop a whole industry. They wanted to bring the trots and the dogs to Deagon, even though the trots and dogs industries did not want to come to Deagon. They had their own establishments, their own families and their own communities elsewhere. We had to fight to keep Deagon for the thoroughbreds. We fought really hard and we fought as a community. I was part of that fight. I am proud to say that Deagon will remain a home to thoroughbreds.
However, there is more to it than that. Now that the RQL has a new promising board and a bright future, this is about making sure that the training centre at Deagon works with the community, as it is starting to do. I put it on the record that it is already starting to work with the local men’s shed, by storing timber in its big containers. It is working with the PCYC helping with the community gardens and we are looking at having a picnic race day maybe later this year or early next year.
I put it on the record that during the election campaign we fought a really hard fight to keep thoroughbreds at Deagon. I am really proud that I joined that fight, because it is about our community. It is about the families that have trained thoroughbreds at Deagon for decades. We have families such as the Lakeys, the Murdochs and the Duffs, Greer and her husband, and Normie Stevens. Some pretty famous horses have come through Deagon, as well. I am really proud of what the government has done. I support the bill.
MINISTER WELCOMES OPPOSITION SUPPORT FOR NEW LEGISLATION
Hon. SL DICKSON (Buderim—LNP) (Minister for National Parks, Recreation, Sport and Racing) (6.03 pm), in reply: Firstly, I thank all of the members who have spoken today. All Queenslanders have a great passion for racing. What I have heard in this chamber today excites me and will create enthusiasm throughout the racing industry in this state. I thank all LNP members. I thank the Independents and it is good to see that the opposition is supporting the bill today. I will touch on a few topics before I go onto my main speech. I thank the member for Rockhampton for his contribution today.
Firstly, I am glad to note that the opposition will be supporting our bill on this vital reform to the racing industry. Under Labor’s watch, Queensland racing had been nearly ruined. As many members have touched on today, it was absolutely decimated. I am very pleased to address the issues that the member has raised. On the issue of efficiencies and savings, the member fears that our new structure will cost more. I have given a commitment that the new governance model will not cost any more than the current RQL model. I make that point extremely clear. The RQL directors’ fees approved by Labor were $525,000 for seven directors. I think that message has been sent very clearly today. The all-codes racing and control board will cost much less.
Secondly, the member talked about the transfer of integrity functions to the government. During the election the LNP made a clear policy statement that the racing industry would pay for the integrity services, but that these would be undertaken by the government. The Newman government had a clear policy position that the key integrity functions will be run by the government. Those functions include drug control, appeals functions and functions of the Racing Integrity Commission.
Thirdly, the member raised questions about funding the new governance model. The racing industry will fund the new model, as it does now; it will just cost less. The member for Rockhampton raised issues over the powers of ministerial direction. No minister anywhere in Australia has the power to direct a thoroughbred control body on prize money or race date allocations. That is the system of racing in this country. I will work with the all-codes board to get the outcomes that are best for this industry. I hope that answers most of the questions of the member for Rockhampton. I am sorry that the member for Gladstone is not here, because I do not get enough of an opportunity to say kind things to her. She is a great stalwart of this parliament and will be for a long time to come. I acknowledge the warm contribution of the member for Gladstone on this bill. I will address some of the issues she spoke about this afternoon. Indeed, I concur with the member that the racing industry does employ a huge number of people. In fact, in Queensland the racing industry is a key industry that employs 30,000 Queenslanders. That is why the Newman government is ensuring that this industry is run properly. The member commented on volunteers. Those people give their time freely and are critical to the industry. The racing industry cannot operate without volunteers. That is why one of the primary functions of the new control board is to engage with grassroots participants.
I agree with the member for Gladstone that the attitude of the RQL towards the country sector was extremely poor indeed. Under the new governance model, one of the key functions of the control board is to consult and engage with participants, which is something the RQL simply never did. As to the member’s submission for more race dates in Gladstone, that is an issue that the Gladstone club should certainly take up with the current chair of the RQL, Mr Kevin Dixon, and the new all-codes and control boards when they are in place. The new all-codes board will have a country racing committee and the Gladstone club will have the opportunity to lobby it. The responsibility for racing infrastructure will be a key function for the all-codes board. Each control board will be required to develop a rolling five-year infrastructure plan to ensure their future is strategically put in place. I thank the member for Dalrymple for his support of this vital bill. I note his comments regarding the former government’s lack of support for country racing, which is a theme that continues to ring through again and again. Under the former RQL model, little regard was paid to engaging with the grassroots participants in the racing industry. Under the new governance model, both the all-codes board and the three control boards will have a specific responsibility to engage with stakeholders at all levels within the three codes of racing.
I thank the member for Mount Isa for supporting the bill, as most members of this House have done. He fully supports the establishment of the Integrity Commissioner. I am sure he would like to see an increase in prize money. We have done that with country racing. We have done that with the QTIS program. There is to be $2.5 million a year for the next two years. I thank the member for his support.
We will do everything we can as the Queensland government to deliver for racing.
I inform the House that the importance of this bill to the Queensland racing sector cannot be understated. If for no other purpose, these reforms are vital for a number of reasons. What the opposition failed to mention is that their apathy and the financial mismanagement of the former Labor government in handing off responsibility for running the racing industry to a bunch of their cronies has had a devastating impact on those 30,000 people I spoke about early who rely on this sector to make a living.
Since 24 March the Newman government has consistently been able to identify shortcomings in the management and conduct of the former board of Racing Queensland. First was the infamous golden handshakes for senior board members, including racing tsar Bob Bentley and union official Bill Ludwig. What we know is that in the dying days of the former Labor government the former Racing
Queensland board signed off on a deal which gave RQL top executives a 30 per cent salary increase and something called a ‘material adverse change’ clause in their contracts. That all sounds a bit clever, does it not? This clause meant that when all four executives resigned just two days after the Newman government was elected they received a separation payout totalling $1.858 million—a staggering amount of money in anybody’s language—including 14 months salary, redundancy payments and their statutory leave entitlements. Who could ever get a deal like that. You would have to be blessed. In a subsequent investigation into this matter the Auditor-General found little evidence in RQL’s board minutes that the responsibility of the directors under the Corporations Act 2001 were actively considered by the board members, particularly the requirements to act in good faith—that is a salient point—and in the best interests of the company. Those opposite really need to look at what company law is all about because they have a very dismal understanding of it. There can be no doubt that the RQL board put in place extraordinarily favourable employment arrangements that delivered these executives a sweetheart deal of the century—a collective payout of $1.858 million upon their voluntary resignations. That is incredible. Of course, when it comes to the former Labor government and anything they touch, the only consistent thing we can rely upon is their inconsistencies. With a multimillion dollar payout being handed out with free abandon, one might be led to believe the finances of Racing Queensland were in excellent shape. Unfortunately, for 30,000 Queenslanders this is simply not so.
The RQL board recently released its 2011-12 annual report which laid bare the years of mismanagement and the apathy of both the RQL regime and the former Labor government. There is no doubt that the former Labor government drove the Queensland Racing industry to the brink of destruction, as we have heard so much from so many members in this House from all sides. There is no doubt about this at all. However, this has never been clearer than when analysing the findings of the
RQL annual report, with the company this year posting a loss of $14 million, which the member for Capalaba touched on. I think I heard earlier what a great success Bob Bentley and Bill Ludwig were. How wrong they are. The size of the loss is absolutely staggering, and can only be laid at the feet of the former RQL board, headed up by Labor mates and a former union boss. Bill Ludwig’s name just keeps coming up all over this state and all over this country. He is quite an amazing fellow.
Finally, we come to the latest example of the former Labor government’s legacy when it comes to the board they put in place to run the Queensland racing industry into the ground.
I recently received correspondence from the acting chief executive officer of Racing Queensland advising that he had identified major inconsistencies during a recent review of the company’s past and proposed capital works programs. The acting CEO wrote to me stating—
A number of characteristics of these projects regarding their procurement and performance have caused concern. In addition, some recent events have added to that concern and we believe that action is now appropriate to address these concerns ...
The major concerns raised by RQL involve work performed by a single consulting engineering firm, specifically: the probity of the awarding of contracts to the company; record keeping and reporting of consulting payments made to the company; inconsistencies in the completion of the contracts by the RQL directors; and the relationships between the RQL personnel and the engineering firm’s staff.
By way of background, I advise the House that RQL has advised me that for the period from 1 July 2007 to 31 October 2012 this engineering firm had been awarded contracts and undertaken work on behalf of the consolidated entities of RQL to the value of approximately $158 million. The engineering firm was paid approximately $5.6 million in consulting fees with no record of whether they also received intercontract or subcontractor payments. RQL’s own procurement policy requires all work in excess of $10,000 to be competitively tendered to at least three suppliers. RQL’s policies also require a contractor’s register to be kept of all payments. Despite RQL paying $5.6 million to the engineering firm, RQL’s own recent review has identified that only $3.19 million was logged in the register. Woops—I wonder where the money went? No contract or engagement documents have been located for the remainder. Despite the tender policy, RQL now reports that a substantial portion of the work awarded to the company was done without RQL undertaking a competitive tender process. The acting CEO of RQL advised that he cannot identify any circumstances that would have justified a policy like this being ignored.
On 29 March 2012, the week following the state election, a letter sent by the engineering firm to RQL on 21 August 2011 was countersigned by then RQL chairman, Mr Bob Bentley. RQL’s view is that this appears to be a clear attempt to catch-up, or should I say cover-up, the approval documentation from previous payments by the director.
APPOINTMENTS FOR GOLDEN HANDSHAKE DUO TO FIRM THAT GOT THE BIG CONTRACTS
The acting CEO has also advised me that the former RQL CEO, Mr Malcolm Tuttle, and the former director of product development, Mr Paul Brennan—the two former senior RQL executives charged with overseeing the procurement process and by extension of that RQL’s close working relationship with the engineering firm and who left RQL immediately after the state election on extremely favourable terms—both now hold senior positions with the same firm at the centre of the allegations. I think I need to say that again. They were employed by the same company that they were dealing with. That is incredible.
The matters raised by the current management of RQL are serious ones and continue to reflect what appears to be a consistent pattern of behaviour from those previously charged with running the racing industry in this state. RQL has indicated to me that it is their intention to commission a special independent audit in an effort to get to the bottom of what we would all agree on face value are serious matters requiring serious investigation.
As previously mentioned, the management model put forward by the former Labor government meant that the Racing Queensland board was completely unaccountable to any authority, unresponsive to the needs of the industry and allowed to underperform in all areas of governance. The vital reform that we are putting in place marks a turnaround from the old Labor guard and we will allow the Newman government to restore accountability to the racing sector as we help rebuild the racing industry in Queensland.
I have been going around for quite some time since this bill was put forward to the House with a flow chart. I do not know if everybody has seen it yet but, if you have not, get a hold of it. We will put it on the net very shortly. What it talks about very clearly is the 30,000 people employed by this industry—the strappers, the jockeys, every single person involved in this industry. They are not going to get jobs elsewhere. We need to look after them. That is what I have heard from most members in this House today. They want to look after the racing industry, and I thank each and every one of them for that. I need you to get out there. I need you to promote racing in the state of Queensland, and I do not think any of you in this House would be opposed to doing that. That is what we should all be about. Let’s inspire the state to move forward. Racing is one component. There are so many pillars to the economy of Queensland. We have to support them all.
So moving down the flow chart to the three new Queensland boards that are being put in place—those 30,000 people get to pick the people who want to go on those boards. They endorse them. They promote them. They put them forward. That is where we are going—open, accountable and transparent. That is what the LNP promised leading into the election. That is what we are delivering. That is what we are doing here today—exactly that.
There will be three people on each of those boards. Each chairperson will step up to the Queensland All Codes Racing Industry Board and there will be two other people appointed and they will be independent. They will be financially aware people and people who have a great understanding of the racing industry. Together there will be five people on that overarching board and they are the ones in control of racing—not me and not anybody in this room. The racing industry will be in control of their own business. That is what the LNP is delivering for the racing industry here today. We are delivering what we promised to do, unlike those opposite who went to the last election promising a whole lot of things and then coming out the other side of that election and deceiving the people of Queensland. We are not going to do that. We will never do that, particularly when it comes to the racing industry. This is my portfolio. I love this industry. I think it has such opportunity. We are way behind New South Wales. We are way behind Victoria. But now we have a chance to catch up. We are a few furlongs behind but I know we can catch up in the long term.
I want to thank each and every one of you, particularly those speakers I commented on earlier, and even the opposition. I thank them for supporting this bill because I believe they know this is good for the racing industry. It is good for those 30,000 people who are indirectly employed through this industry.
I believe we have such a great future here in this state. Racing intrigued me when I first became the minister. I did not know that much about it. I do not go to the races all the time. But I tell you what—I have been to a lot of races in the last few months. It has been absolutely incredible and amazing. Deb Frecklington spoke earlier on about the Kumbia races. We were out there. We saw what the world thought about the Kumbia races. It might be just a little country town in a lot of people’s minds. But to be out there on the day to see the excitement from all the small towns in that local area and to see how they came together and how much fun they had—it is not just about spending money; it is about bringing communities together. Again, that is the point I want nobody to miss. Be it out at Kumbia, be it out at St George, be it anywhere through the state of Queensland, be it here in Brisbane—people come together to enjoy an event but more so in the country. You see families coming in—in particular, at St George and all of those surrounding areas. You just would not expect to see people coming from so far, yet I am talking about hundreds of kilometres away. They come from everywhere, far and wide. They bring their kids with them. They get together. It is like weddings and funerals. I would much prefer to go to weddings, not so much funerals. But races—that is what it is all about. That is what this bill is about.
As the Minister for Racing, I feel honoured and privileged to have heard the debate here today. I thank you one and all. I look forward to moving forward with this bill and I look forward to your support.