Hansard debates

Anthony CARBINES (Ivanhoe – Leader of the House, Minister for Police, Minister for Community Safety, Minister for Victims, Minister for Racing) (10:49): I move:

That this bill be now read a second time.

I ask that my second-reading speech be incorporated into Hansard.

Incorporated speech as follows:

The Victorian Government is committed to supporting the long-term sustainability of the Victorian Racing Industry (VRI).

The VRI contributes $4.7 billion to the Victorian economy annually, including $501 million in taxation revenue, and supports over 34,500 full-time equivalent jobs. It operates within the context of an ever-evolving racing landscape, and it is important to ensure that entity arrangements that govern the industry remain fit-for-purpose and that public confidence is upheld in the racing integrity framework.

The Bill will amend the Racing Act 1958 (the Racing Act) to:

• Enhance Victoria’s racing integrity framework by amalgamating the functions and powers of the Racing Integrity Commissioner (RIC) and the Victorian Racing Integrity Board (VRIB) into a new integrity assurance body, the Racing Integrity Commission Victoria (the Integrity Commission)

• Establish Greyhound Racing Victoria (GRV) and Harness Racing Victoria (HRV) as public companies limited by guarantee

• Make amendments to improve the operations of the Victorian Racing Tribunal, and

• Make miscellaneous minor amendments to improve the operation of the Racing Act.

The Integrity Commission

Robust racing integrity systems are integral to the ongoing success of the Victorian Racing industry.

The office of the RIC was established in 2010 to provide independent assurance of racing integrity across the three codes. The functions of the RIC include powers to audit the performance of the integrity systems of the code bodies and to act as a quasi-ombudsman in responding to complaints in relation to racing integrity. The RIC also holds significant board of inquiry powers.

The VRIB was established in 2019 to provide additional assurance of racing integrity within the controlling bodies.

The RIC and VRIB have successfully operated side by side over the past 5 years to provide racing integrity assurance of the delivery of integrity services by the codes. Whilst their activities have complemented each other, the similarity of some functions has led to confusion within the industry regarding the relative responsibilities of each body.

The amalgamation of the functions and powers of the RIC and VRIB into the new Integrity Commission will streamline and enhance the provision of racing integrity assurance within the industry.

The establishment of the Integrity Commission is consistent with the government focus on removing duplication and focusing on excellence in service delivery as advocated in the government response to the Silver Review.

Importantly, the responsibility for the day-to-day delivery of racing integrity services will remain the responsibility of the three racing controlling bodies – Racing Victoria, GRV and HRV.

The Integrity Commission will be comprised of the statutory office of the RIC, which will be retained due to the nature of its investigatory and inquiry powers, and a small three-person board. VRIB will be abolished.

The existing functions and powers of the RIC will remain largely the same but will be broadened to:

• Recognise that the RIC will also perform the duties of the Chief Executive Officer of the Integrity Commission

• Extend audit powers to cover racing integrity matters, including an assessment of controlling bodies performance against racing integrity policies, procedures, plans, and budgets

• Broaden the RIC’s function to also investigate complaints made by a senior member of an integrity department of a controlling body in relation to integrity matters which are internal to the controlling body. This will ensure that any complaints considered by the former VRIB can still be investigated.

The Bill also contains a requirement for controlling bodies to provide an annual integrity plan to the RIC each year. The adequacy of this plan can be audited as part of the RIC’s audit function.

The RIC will be required to consult with the Integrity Commission before exercising its audit function and prior to conducting an own motion inquiry. This will provide an additional level of oversight of the performance of some of the RIC’s functions.

One of the main functions of the Integrity Commission board will be to provide oversight of performance of the RIC’s functions and powers, and compliance with the policy and procedures set down by the board. While the RIC will act independently of the board in the conduct of inquiries and investigations, they will be accountable to the board in terms of the performance of its functions and exercise of its coercive powers.

This will provide assurance that the RIC acts lawfully and properly in the performance of their functions.

The Integrity Commission will also be able to receive and deal with complaints about the performance of the functions and exercise of the powers of the RIC.

The Integrity Commission may accept complaints from someone who is the subject of, or affected by, a decision, finding or recommendation made by the RIC during an investigation or inquiry, where that complaint is made within one year of the outcome of the investigation or inquiry.

The Integrity Commission is not required to accept all complaints and may reject a complaint if it is trivial, not genuine or does not meet other criteria specified in the Bill. The Integrity Commission may also refer a complaint to other people or bodies if appropriate.

Following consideration of the complaint the Integrity Commission can determine if the complaint is made out and what, if any, action is warranted. This may include making recommendations to the Minister, including that the RIC be removed.

The Integrity Commission will undertake other functions to ensure there is no gap in racing integrity assurance following the abolition of the VRIB.

The Integrity Commission will undertake the important function of considering and providing advice on any disciplinary action that a controlling body proposed to take against a senior member of an integrity department in relation to integrity matters which are internal to the controlling body. This continues to ensure that senior integrity staff within controlling bodies are free from undue influence from other senior members or Board members in carrying out integrity related duties.

It will monitor developments and trends related to racing integrity to inform its oversight of the RIC and any advice that it might provide to the Minister, RIC, or controlling bodies. The Integrity Commission will also have the authority to provide advice to controlling bodies on specific racing integrity issues if the Board considers it appropriate to do so.

The Integrity Commission board will be comprised of three members, appointed by the Governor in Council on the recommendation of the Minister for Racing. The board members must have the skills, experience and sufficient knowledge of any of the codes to carry out the functions of the board.

The Bill sets out eligibility criteria that precludes certain persons from being appointed to the board, including a person with a position in a code body or those with a proprietary interest in a racehorse, standardbred or racing greyhound.

Operationally a single body of staff in will support the operations of the RIC and the Board.

The Bill allows the department to recover the costs of the Integrity Commission from the controlling bodies. This is consistent with the approach taken to the former VRIB and consistent with the wider government principles that those who benefit from the service should pay for it.

The Bill will enhance natural justice principles by introducing an express right for a person subject to an inquiry or investigation by the RIC to seek legal advice and be represented.

Transition of GRV and HRV to companies limited by guarantee

The existing governance arrangements for Victorian thoroughbred, harness and greyhound racing are an artifact of policies at the time of their establishment.

From 1871 until 2001, thoroughbred racing in Victoria was controlled and administered by the Victoria Racing Club (VRC), a privately constituted association. In 2001, the Victorian Parliament passed legislation to facilitate the creation of a new governing body for thoroughbred racing in Victoria – Racing Victoria (RV).

At the time Parliament noted that the body vested with powers to govern thoroughbred racing in Victoria should be independent, accountable, and totally committed to the task of developing, encouraging, promoting and managing the conduct of thoroughbred racing in the state. Accordingly, RV was established as a public company limited by guarantee.

By contrast, greyhound and harness racing in Victoria have been administered and controlled by statutory entities since 1954 and 1946 respectively.

At the time of their establishment many of the key business planning powers and functions critical to racing operations were subject to ministerial or other government control. This included the distribution of monies to those bodies and racing clubs and the setting of race dates. Under these conditions it was sensible for the greyhound and harness code bodies to be set up as government entities.

However, the key accountabilities and responsibilities of the greyhound and harness code bodies have changed in recent years in response to industry conditions and governance arrangements.

While GRV and HRV do have some regulatory and advisory functions, the bulk of the code bodies’ responsibilities in the current day have little alignment with those highlighted by the government as typically undertaken by public entities.

It is critical that these important industries, that provide significant employment in regional Victoria have governance arrangements that are fit for purpose and enable them to innovate and operate as demanded by their commercial environments.

To that end, the Bill dissolves the statutory authorities of GRV and HRV and provides for the establishment of two new bodies to control the harness and greyhound racing industries in Victoria. These new bodies will adopt the same legal structure as RV, as public companies limited by guarantee, providing consistency in regulatory settings across the three codes of the Victorian racing industry.

While the new harness and greyhound companies will not be statutory authorities, they will continue to deliver the same core functions as the current entities.

The new companies will have the function to, amongst other things:

• Act as the bodies that control and regulate the Victorian greyhound and harness racing industries respectively in Victoria

• Make and adopt rules for participation in, and the control, supervision and regulation of their respective industries

• Undertake activities to protect integrity and promote participant and horse and greyhound welfare respectively within their industries, and

• Undertake commercial activities conducive to the promotion and development of their respective industries.

The Bill includes appropriate safeguards to ensure the operations of the new bodies are aligned with government policy objectives. This is a similar approach to that taken by government when RV was established in 2001.

The Bill sets out specific requirements for the constitutions of each company. This includes specifying the core objectives of the company that are essential to the proper management of the harness and greyhound racing industries and the governance framework that the companies will adopt.

The Minister for Racing will be empowered to appoint directors to the boards of the companies and remove a director or reconstitute the boards in specific circumstances.

Corporations Act displacement provisions

The Bill also includes specific provisions that ensure that there is appropriate oversight of future changes to the company constitutions, and that the companies continue to operate within the initial parameters established by the Parliament.

Specifically, the Bill requires that the companies must notify the Minister of any special resolution to modify or repeal the company constitution, or a provision of the constitution. If the Minister receives such a notification, they must cause a copy of it to be laid before each House of Parliament. Parliament may, on or before the 6th sitting day of that House after a copy of the notification is laid before it, resolve to disapprove the special resolution.

The government notes that this conflicts with Section 136(2) of the Corporations Act 2001 (Cth) that provides that a company may modify or repeal its constitution by special resolution. Consequently, the Bill includes provisions that declare the proposed new section 38B and 66B of the Racing Act 1958 to be Corporations legislation displacement provisions for the purposes of section 5G of the Corporations Act.

The Bill also provides the companies with the power to suspend the members of a committee or other managing body of a harness racing club (new section 38I) or a greyhound racing club (section 77) and may appoint a fit and proper person to be the administrator of the club. While this maintains the current powers set out in the Act, it is inconsistent with Chapter 5 of the Corporations Act 2001 (Cth) that deals with external administration.

The Bill recognises this and declares that those provisions are Corporations legislation displacement provision.

Transitional provisions

The Bill includes transitional provisions to enable an efficient transfer of powers and functions from the GRV and HRV statutory authorities to the newly certified companies.

Specifically, the Bill provides amongst other things that various rights, properties, liabilities, proceedings, rules of racing, decisions of the respective GRV and HRV boards, and existing arrangements and agreements relevant to the GRV and HRV statutory authorities immediately before commencement of the new companies are preserved and vested in the new companies.

The Bill also deems that a person who was employed by GRV/HRV immediately before the commencement day will transfer to the new companies on the same terms and conditions as those that applied to the employee as an employee of old GRV/HRV immediately before the commencement day.

Operational improvements to the Victorian Racing Tribunal (the Tribunal)

The Bill also makes various other amendments to improve and modernise the operation of the Act, including the qualification and composition provisions for the Tribunal.

The Tribunal plays a pivotal role in upholding integrity within Victoria’s racing industry, addressing disciplinary matters across thoroughbred, harness, and greyhound racing.

It is responsible for hearing appeals relating to steward’s decisions to impose penalties on racing industry participants under the various Rules of Racing and to determine charges relating to serious offences under the Rules of Racing.

It is vital that these matters are dealt with in a timely and efficient manner.

To that end, the Bill makes several improvements to the operational effectiveness of the Tribunal. The Bill expands the eligibility criteria for the appointment of deputy chairpersons to include former and reserve judicial officers from other jurisdictions. It also amends the eligibility criteria for appointment as a deputy chair to remove the requirement that all deputy chairs be former or current judicial officers and that each deputy chair has knowledge and experience in a specified racing code.

The amendments will require that one deputy chair is a former or current judicial officer with the other deputy chairs being Australian lawyers with at least 15 years’ experience, that have knowledge and experience in greyhound racing, or harness racing, or thoroughbred racing.

The Bill will also amend the Act to enable the appointment of up to 4 deputy chairs, improving scheduling flexibility.

Racing Victoria amendments

As previously mentioned, the Bill sets out the functions and powers for the new greyhound and harness racing companies. For consistency and greater transparency about the functions and powers of all three of the racing controlling bodies, the Bill inserts a new section 3CA into the Act that sets out the functions and powers of RV. The new section provides an explicit legislative basis for the functions and powers that were initially transferred from the Victoria Racing Club to RV in the Racing (Racing Victoria Limited) Act 2001 but were not specifically detailed within the Act.

Miscellaneous amendments

The Bill also makes miscellaneous amendments to refresh definitions, repeal obsolete terms, some of which date back to the early 1900’s, and redundant provisions. The Bill also consolidates the provisions relating to racing on ANZAC Day in section 22 of the Act and provides the Minister with the power to vary a racing club licence, or conditions attached to a racing club licence.

The Australian Grands Prix amendments

The Australian Grands Prix Act 1994 (the AGP Act) empowers the Australian Grand Prix Corporation (AGPC) to hold a range of events, including the Formula 1 Australian Grand Prix (Grand Prix) at Albert Park, the Australian Motorcycle Grand Prix (motogp), as well as approved motor sport events, and approved events ‍– being events that are not a Formula One event or a motor sport events.

The AGPC is adept in delivering world class motor sport events. For example, the Grand Prix, a pillar of Victoria’s major events calendar since 1996, provides a significant contribution to the Victorian visitor economy and holds the record for the highest attended weekend sporting event ever staged in Melbourne.

In 2025, the Grand Prix increased Victoria’s Gross State Product by $323.9 million, generated an estimated $3.08 in economic impact for the state for every dollar invested by the Victorian government and supported an estimated 1,631 annual full-time equivalent jobs through roles such as event construction and hospitality.

The AGP Act currently provides the AGPC with a range of powers in relation to hosting events. However, the AGPC is not provided with similar powers for hosting all event types and limitations have been identified on the AGPC’s ability to arrange approved motor sport events.

The Bill addresses these limitations by providing the AGPC with the following powers for approved motor sport events:

• Establishing supporting facilities, services and activities

• Charging and collecting fees for admission, whether held at the Phillip Island Grand Prix circuit, or elsewhere

• Granting, for free or other consideration advertising rights, sponsorship rights, broadcasting rights or television rights or any other rights, licences or concessions.

The Bill also enables the Minister to approve motor sport events for the purposes of section 20(e) of the AGP Act by notice published in the Government Gazette.

The amendments will ensure the AGPC has adequate powers to efficiently host approved motor sport events in Victoria and similar powers exist under the AGP Act for all events the AGPC can host. It will also enable the AGPC to leverage its expertise and vast industry connections to attract and deliver new and exciting motor sport events to the sporting and major events capital.

Without these amendments, the AGPC’s capacity to leverage the maximum economic benefit from hosting approved motor sport events including via ticket sales and granting certain commercial rights could not be realised. This would decrease AGPC’s revenue potential and would minimise the commercial viability and attractiveness of Victoria to motor sport event owners as a replacement for the motogp.

Conclusion

The amendments to the Racing Act will ensure the ongoing success and sustainability of the racing industry and uphold public confidence in the integrity framework. Amendments to the AGP Act will ensure the AGPC has adequate powers to efficiently host approved motor sport events in Victoria.

I commend the Bill to the house.