Coalition backtracks to support Labor’s controversial Racing NSW bill

The Coalition has backed NSW Labor’s controversial new laws to extend Russell Balding’s term as chair of Racing NSW despite insisting its support was contingent on the powerful body coming under greater scrutiny.

In a chaotic day for the Coalition,the opposition scrambled to finalise its amendments on Tuesday,after vowing to only support the extension of Balding’s tenure on the condition that Racing NSW be subject to the parliament’s budget estimates process and audits by the state’s auditor-general.

NSW Opposition Leader Mark Speakman says Racing NSW should face stronger governance.

NSW Opposition Leader Mark Speakman says Racing NSW should face stronger governance.AAP

However,in a major about-face,the Coalition voted with the Minns government in the lower house late on Tuesday night after the Opposition’s proposed amendments were ruled out of order.

Most crossbench MPs opposed the new law,including Member for Sydney Alex Greenwich,who successfully amended the bill to ensure the recruitment process to appoint the next chair of Racing NSW begins six months before Balding’s term expires.

Labor’s bill will now move to the upper house,where Opposition racing spokesman Kevin Anderson said the Coalition would again attempt to move its amendments.

The Liberals and Nationals were bitterly split on whether to back Labor’s bill,which would see Balding,a former ABC managing director,remain as chair for an extra two years,taking his time on the Racing NSW board to an unprecedented 14 years.

After a divisive joint party room meeting on Tuesday,the Coalition agreed to amendments to Labor’s legislation which would see Racing NSW face far tougher governance measures.

Speaking after the meeting,Speakman said the Coalition had “formed the view that we are justified in supporting the legislation on the basis that Racing NSW has performed extraordinarily well”.

“Mr Balding has been a very successful chairman,and we think it’s in the interest of the racing industry and the state generally for that to continue for a couple of years. But we would like to see some stronger governance structures in place for Racing NSW,” Speakman said.

“One of those is to subject Racing NSW to the auditor-general. We’d also be seeking an amendment to have statutory review of the legislation generally in the next six months,and we’re also suggesting that Racing NSW should be subject to scrutiny by parliament.”

Speakman said that could include being subject to so-called standing order 52s – which is an order of parliament for documents – as well as appearing at budget estimates.

Racing Minister David Harris’ office did not respond to questions.

Harris needs to rush through extraordinary new laws in this final week of parliament to re-appoint Balding before his term expires on December 19.

The government has been warned it faces a legal challenge if it pushes ahead with extending Balding’s term.

Harris was sent a legal letter from commercial firm Arnold Bloch Leibler on behalf of peak body Thoroughbred Breeders NSW last week,warning Balding should not be appointed without a merit-based selection process

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Alexandra Smith is the State Political Editor of The Sydney Morning Herald.

Max Maddison is a state political reporter at The Sydney Morning Herald.

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