THE LNP Government has set aside a budget of $3 million for a Commission of Inquiry to begin in July into the running of the racing industry in Queensland when Labor was in power.

Attorney General Jarrod Bleijie announced the terms of the inquiry today confirming that it would look at procurement of processes, Government arrangements with the Board and former directors of Racing Queensland and contracts that were awarded.

No Commissioner has yet been chosen for the inquiry which will run from July 1 to September 30.

The Attorney-General said:  

"I am concerned about the lack of appropriate processes in awarding contracts in the racing industry," said Mr Bleijie.

"For example I have heard of one company that won tens of millions of dollars' worth of work, however only one of its 37 contracts allegedly went to tender.

"We have an obligation as a State Government to get to the bottom of this and to get to the heart of this."

He said it was "too early to say" what the outcome of the inquiry might be, or if anyone could face charges.

HERE is a story on the Commission of Inquiry into Racing announcement from the combined sources of FAIRFAX MEDIA and AAP:

FIRST it was child protection, then the health payroll, followed by the CMC – now the Queensland racing industry will be put under the microscope.

Racing minister Steve Dickson and Attorney General Jarrod Bleijie announced a full commission of inquiry into how the racing industry was run under the previous government.

A budget of $3 million has been set aside for the inquiry, which will start on July 1 and run until the end of September.

"The only way we will get to the truth of these matters and the heart of the issue is a full commission of inquiry," Mr Bleijie said.

Mr Bleijie said the commission would be directed to examine the tender process, including how the contracts were awarded particularly in relation to Contour Consulting Engineers Pty Ltd.

The adequacy of Racing Queensland's corporate governance and financial controls would also be investigated.

The inquiry would examine reported renegotiation of employment contracts of Racing Queensland senior executives and any potential conflicts of interest between Racing Queensland directors, Racing Queensland Limited, Tatts Group and Queensland Product Co Limited.

Mr Bleijie said he had "had concerns for a number of weeks now" and after speaking to Cabinet, decided a full inquiry was the best way forward.

"This was $150 million of taxpayer money," Mr Bleijie said, adding that Queenslanders had a "right to know" what their money had been spent on.

Mr Bleijie said a commissioner had not yet been chosen, but the government had "some people in mind".

The state government had previously commissioned an audit from accountancy firm Deloitte.

News Limited reported the audit found million of dollars worth of contracts were allegedly awarded to Contour Consulting Engineers without going to tender.

Mr Bleijie said of the 37 contracts allegedly awarded to Contour, only one went to tender.

He referred to the alleged $20 million worth of payments awarded to the company in the last days of the Bligh government as a seemingly "last minute cash dash" before the election.

He said this would be a matter for the inquiry to look into.

Before Mr Bleijie announced the inquiry, former Racing Queensland boss Bob Bentley said he welcomed the chance to put a full stop to the issue.

"We'll get it our on the table once and for all," he said.

"People making all these accusations will have to put up or shut up now."

Earlier, Premier Campbell Newman said there had been too many complaints "for us to ignore this any longer".

This is the fourth inquiry Mr Bleijie has called in the past year.

The Tim Carmody-led child protection inquiry had a budget of $9 million.

The health payroll inquiry headed by Richard Chesterman had a budget of $5 million, although Mr Bleijie said it had run "well under budget".

The Ian Callinan-chaired inquiry into the Crime and Misconduct Commission cost approximately $311,000.

"What price do you put on justice, we are trying to get to the truth of these matters," Mr Bleijie said.

"I think it is money well spent."

STORY SOURCE: COMBINED RESOURCES OF BRISBANE TIMES (FAIRFAX MEDIA) & AUSTRALIAN ASSOCIATED PRESS.