Cover image courtesy of The Image Is Everything
When the session opened the Committee took evidence from public servants Kiersten Fishburn, Secretary of the Department of Planning, Housing and Infrastructure, and Terry O’Brien, Director of the Office of Racing, both of whom stated their department’s procedural involvement in matters subsequent to the announcement of the proposed sale made on December 7, last year. Not a tremendous amount leaked out that we didn’t already know and certainly nothing headline worthy.
It was then the turn of former ATC Chairman Matthew McGrath who provided very broad background information on how the Club had undertaken and funded a significant number of capital works, and just why they retained a large debt with Racing New South Wales.
McGrath sat alongside trucking magnate and former Australian Jockey Club Chairman Ron Finemore who offered his take on the sale from a business owner’s perspective.
Matthew McGrath | Image courtesy of the Australian Turf Club
They were followed by the final witness of the day, James Cullen, Chief of Staff for the Premier Chris Minns who spent the majority of his time behind the microphone defending the probity around the meeting arranged between the ATC’s Head of Membership and Corporate Affairs Steve McMahon and the Premier.
Outside of when parliament sits this was the final opportunity for those looking to score political points over the Minns government to land a blow, and it was the trio of Senators, Wes Fang from the Nationals, Damien Tudehope for the Liberals and Independent Mark Latham who took Cullen to task over the arrangements surrounding the October 30 meeting between McMahon and the Premier, the pair having enjoyed a long-time friendship with the former also a member of the Labor party.
The ‘McMullen principle’
When requested Cullen had twice declined to attend previous hearings applying the ‘McMullen principle’ that ministerial staff members should not be compelled to appear before parliamentary committees.
In the end he appeared having been served a summons to do so, but his demeanour and responses suggested he clearly wasn’t happy being interrogated.
James Cullen
The three Senators persistently grilled Cullen over why he had chosen the ‘meet and greet’ option in the diary system when they believed the Premier’s office was aware of a potential $5 billion sale of the racecourse, and that the diary entry deserved a more comprehensive and transparent description.
An exasperated Latham finally put it to him “You haven't answered that question as to why it wasn't listed for what it was, an honest assessment that it was a meeting with Steve McMahon to discuss the sale of Rosehill.”
A flustered Cullen ‘stonewalled’ responding, in a manner most politicians would have given a nod of approval to, “We fully complied with the record keeping requirements, including the diary disclosure obligations. I've already given that evidence, and I'm comfortable.”
Latham finally turned to the Chair Senator Scott Farlow seeking action on a witness he felt was “misleading and not being honest and direct in his answers”, although Farlow declined to act at the time.
Mark Latham
Earlier, McGrath’s opening statement pointed out that under his Chairmanship the ATC had been able to self-fund roughly $100 million worth of capital works, the majority of which, he said, was spent on welfare outcomes for horses and participants.
He also said that after consultation with Racing NSW the Club took out a $29 million loan from the regulator to enlarge the original Winx Stand design. That loan was for a 15-year term but McGrath explained it was on track to be repaid within eight years.
Repaying the $99 million loan
McGrath also advised that there is a $99 million loan from Racing NSW outstanding from 2011, a carrot used to bring the merger of the AJC and STC to fruition. He explained that the loan is only repayable should the ATC sell a core asset like a racecourse, something Racing NSW CEO Peter V’Landys touched upon when he gave evidence at the Committee’s second sitting.
It follows then that should Rosehill be sold off Racing NSW would be entitled to the first tranche of funds to repay the loan.
In fairness to McGrath he did put his hand up as being at the forefront of installing the somewhat maligned current funding model.
“In 2018 I signed a 15 year agreement with Racing NSW to ensure the success of the ATC. It guaranteed the minimum of $90 million per annum to the ATC. This is an agreement based on what was best for the club and industry.”
There are plenty in the industry that will argue that just six years on that model is redundant.
“In 2018 I signed a 15 year agreement with Racing NSW to ensure the success of the ATC. It guaranteed the minimum of $90 million per annum to the ATC. This is an agreement based on what was best for the club and industry.” - Matthew McGrath
On several occasions the Committee sat behind closed doors to deliberate matters, but should nothing of note transpire that should be the final time the Committee sits.
The Committee has then been charged with tabling a report before parliament before the recently revised date of December 6th.
