‘Chilling effect’: Concerns raised over Racing NSW conduct at Rosehill inquiry

The state’s powerful privileges committee has raised “serious concerns” about the conduct of Racing NSW during last year’s Rosehill inquiry but found insufficient proof that it interfered with witnesses.

After a months-long investigation, the multi-party committee issued a report about the behaviour of the racing industry regulator three days before the running of the $20 million The Everest at Royal Randwick, the flagship event of Sydney’s spring carnival.

It was released as news emerged that Julia Ritchie, a former director of the Australian Turf Club and vocal opponent of selling Rosehill Gardens racecourse, was booted off a luxury boat cruise on which the barrier draw for The Everest was held on Sydney Harbour on Tuesday night.

Sydney racing’s week of weeks is also taking place in the shadow of turmoil in the $3.3 billion industry after Racing NSW threatened to replace the race club’s board with an administrator.

The NSW privileges committee’s probe was centred on letters sent by senior Racing NSW personnel to MPs conducting last year’s parliamentary inquiry into the proposed $5 billion sale of Rosehill for housing.

The correspondence provided details of former staff it believed were behind confidential evidence highly critical of the organisation and included allegations of impropriety against two former employees.

Labor chair Stephen Lawrence said “this committee has serious concerns that Racing NSW has engaged in conduct that may have had the effect of deterring potential inquiry witnesses from coming forward to give evidence for fear of reprisals – the so-called ‘chilling effect’.”

The committee, on which Labor has four of eight members, did not find Racing NSW in contempt, citing a lack of conclusive evidence that it uncovered the identity of witnesses or actively sought to deter others from coming forward and saying its actions had not significantly hampered the Rosehill inquiry.

But it delivered a strong reprimand to the organisation, whose long-time chief executive is Peter V’landys.

The report said it was “deeply inappropriate to provide such detailed adverse allegations to the select committee, and it reflects poorly on Racing NSW as an organisation”.

“This committee has concerns about the potential for such behaviour, if repeated, to deter potential witnesses from coming forward to any future inquiry for fear of being targeted for adverse treatment,” Lawrence wrote.

Concern was also raised about similar material provided by Racing NSW being aired on radio by broadcaster Ray Hadley the day after the matter was referred to the privileges committee.

“While not making any finding about this, the committee considered it a significant and questionable coincidence,” the report said.

Racing NSW denied it had attempted to identify or influence prospective inquiry witnesses.

It also categorically denied passing information directly or indirectly to Hadley.

“Racing NSW wishes to again reiterate that it has the greatest of respect for the NSW Parliament and the privileges committee,” a Racing NSW spokesperson said.

“Accordingly, Racing NSW is pleased that the privileges committee has found that no action should be taken against Racing NSW.

“Firstly, unsubstantiated aspersions were made about Racing NSW by disgruntled ex-employees and disqualified participants. Naturally, Racing NSW believes that we should have been provided due process and natural justice to show that these claims and aspersions were false and without substance.

“Racing NSW doesn’t understand how one party can make unsubstantiated aspersions without the other party being given the opportunity to show that they were complete fabrications.”

Racing officials and wealthy slot holders gathered, meanwhile, for a glitzy on-water function for The Everest barrier draw, among them owners of Hong Kong sprint sensation Ka Ying Rising, the favourite for the world’s richest race on turf.

But the welcome was not laid out for prominent horse owner and breeder and Save Rosehill campaigner Ritchie, who had arrived as a guest of Peter Tighe, a co-owner of retired champion racehorse Winx and Everest runner War Machine.

Ritchie, who was the first female member of the former Australian Jockey Club and served on the ATC board between 2014 and 2022, was among those who gathered at King Street Wharf to board the $15 million super yacht The Jackson, on which the barrier draw for The Everest took place.

According to sources with knowledge of events, speaking on the condition of anonymity, Ritchie made her way onto the vessel but was told by Racing NSW chief operating officer Graeme Hinton that her name wasn’t on the guest list and left before it disembarked.

She had gone as Tighe’s plus-one but was informed that invitations were non-transferable. In his RSVP, Tighe had said he was bringing his wife, Patty, with him, but according to sources, she couldn’t attend, so he asked Ritchie along as his guest instead.

A Racing NSW spokesperson said Ritchie was asked to leave the function as she was not on the invitation list and had provided the name of another guest on arrival.

“At last year’s Everest barrier draw, Ms Ritchie attended despite being uninvited, taking the invite of another guest. On this occasion no action was taken,” the spokesperson said.

“Ms Ritchie had also attempted to attend Racing NSW’s function at the Championships in April despite not being on the invite list for that event either.”

Ritchie and Tighe declined to comment.

Ritchie appeared at last year’s Rosehill hearings and was a strident critic of the plan to sell the track for housing for $5 billion, which was eventually voted down by club members in May.

The barrier draw cruise left Darling Harbour at about 6.45pm, returning around three hours later.

V’landys and members of Racing NSW board were on the yacht along with Australian Turf Club chairman Tim Hale and other club directors and executives.

The racing industry was rocked on the eve of the Everest carnival last month when Racing NSW issued the ATC with an extraordinary with a show cause notice, citing financial and governance issues.

Racing NSW said it had had to bail out the club on multiple occasions and raised particular concern about the ATC’s ability to repay a $30 million loan with the Commonwealth Bank due in late 2026, as well as about unspecified alleged code of conduct breaches by directors.

The ATC has been given until Friday week to formally respond but in a notice to members last week Hale declared the club was asset-rich, financially strong and solvent, saying many matters raised by the regulator went back 15 years and did not involve the current directors.

The club has only four board members following the exit of chairman Peter McGauren and the resignations of directors Ben Bayot and Natalie Hewson in September.

Bayot and Hewson quit in September after ATC chief executive Matt Galanos was sacked.

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