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Order in Council containing terms of reference

Commissions of Inquiry Order (No. 1) 2013

Short title

  1. This Order in Council may be cited as the Commissions of Inquiry Order (No. 1) 2013.

Commencement

  1. This Order in Council commences on 1 July 2013.

Appointment of Commission

  1. UNDER the provisions of the Commissions of Inquiry Act 1950 the Governor in Council hereby appoints the Honourable Justice Margaret White AO, from 1 July 2013, to make full and careful inquiry in an open and independent manner in relation to the operations of the former racing control bodies in Queensland (the relevant entities) being Racing Queensland Limited ACN 142 786 874 (RQL) and its predecessor bodies which amalgamated in July 2010 (Queensland Racing Limited ACN 116 735 374, Greyhounds Queensland Limited ACN 128 067 247 and Queensland Harness Racing Limited ACN 128 036 000), and their controlled entities, including Queensland Race Product Co Limited ACN 081 743 722, over the period 1 January 2007 to 30 April 2012 (the relevant period) with respect to:
      1. the adequacy and integrity of, and adherence to, the procurement, contract management and financial accountability policies, processes and guidelines for the relevant entities including measures to ensure contracts awarded delivered value for money; and
      2. the events surrounding the contractual arrangements between the relevant entity or entities and Contour Consulting Engineers Pty Ltd to manage contracts on behalf of those entities; and
      3. whether the resulting contracts were underpinned by sound procurement practices and whether appropriate payment policies and processes were implemented and were adhered to;
    1. the adequacy and integrity of, and adherence to, management policies, processes and guidelines and the workplace culture and practices of the relevant entities, in particular RQL, and the appropriateness of the involvement of the Boards of those relevant entities in the exercise of functions by the executive management team and other key management personnel, including the officer holding the position of company secretary and those involved in integrity matters;
    2. the adequacy and appropriateness of RQL’s corporate governance arrangements, in particular:
      1. whether RQL, its directors, the executive management team and other key management personnel, including the officer holding the position of company secretary, acted with integrity and in accordance with RQL’s constitution, in the best interests of the company and the racing industry;
      2. whether RQL, its directors, the executive management team and other key management personnel, including the officer holding the position of company secretary, operated consistently with relevant applicable State and Commonwealth policies and legislation, including the Racing Act 2002 and the Corporations Act 2001 (Cth);
      3. the policies, rules and procedures to identify and manage potential and actual conflicts of interests and to minimise the risks of directors and executives improperly using their position and information obtained for personal or financial gain;
      4. the adequacy of employment contracts in restraining former directors and executives from seeking employment with RQL’s preferred contractors and suppliers;
    3. whether there was sufficient and appropriate oversight by the responsible Minister, executive government and chief executive, including under the provisions of the Racing Act 2002, for the operations of the relevant entities;
    4. the events surrounding the renegotiation of employment contracts of four RQL senior executives, Chief Executive Officer Malcolm Tuttle, Director of Integrity Operations Jamie Orchard, Director of Product Development Paul Brennan and Senior Corporate Counsel and Company Secretary Shara Reid (nee Murray) in 2011 and resulting payouts on their voluntary termination in March 2012 under those contracts, and whether the directors and senior executives acted consistently with their responsibilities, duties and legal obligations, with reference to the key findings of the Auditor-General in his Report to Parliament, Racing Queensland Limited: Audit by arrangement, tabled in July 2012;
    5. the arrangements between Queensland Race Product Co Limited and the Tatts Group (comprising Tatts Group Limited ACN 108 686 040 and each of its subsidiaries, including TattsBet Limited ACN 085 691 738), and formerly UNiTAB, concerning fees paid by the Tatts Group for Queensland wagering on interstate races through TattsBet, in particular;
      1. how Queensland Race Product Co Limited responded to the introduction of race information fees;
      2. whether the Boards of the relevant entities and/or Queensland Race Product Co Limited sought expert legal advice or other advice regarding the effect on fees payable by the Tatts Group to Queensland Race Product Co Limited as a consequence of race information fees being introduced and if not, why this advice was not sought;
      3. the reasons why any expert advice sought at any time following the introduction of race information fees was or was not acted upon; and
      4. whether the directors and senior executives of both the relevant entities and Queensland Race Product Co acted in good faith and consistently with their responsibilities, duties and legal obligations and the best interests of the company at the material time race information fees were introduced, or at any other time and whether their actions may have been influenced by any conflict of interest in being both a director of the relevant entities and/or Queensland Race Product Co Limited and/or the Tatts Group or by a relationship with any other person, or whether they used their position/s to gain a personal advantage;
    6. the events surrounding the approved transfer of funds by the former Queensland Government to RQL’s infrastructure trust account in February 2012, on what basis the transfer was made, whether any improper influence was exercised by RQL directors, and if the transfer was appropriate and justified; and
    7. any other relevant matter relating to the relevant period or otherwise that the Commissioner considers necessary.

Commission to report

  1. AND directs that the Commissioner make full and faithful report and recommendations on the aforesaid subject matter of inquiry, and transmit the same to the Honourable the Premier by 30 September 2013.

Commission to make recommendations

  1. IN making recommendations the Commissioner should consider any recommended legislative and/or organisational changes to promote good corporate governance, integrity and a transparent and accountable culture for the new control body for racing in Queensland – the Queensland All Codes Racing Industry Board established under the Racing Act 2002 (trading as Racing Queensland).

Application of Act

  1. THE provisions of the Commissions of Inquiry Act 1950 shall be applicable for the purposes of this inquiry except for section 19C – Authority to use listening devices.

Conduct of Inquiry

  1. THE Commissioner may hold public and private hearings in such a manner and in such locations as may be necessary and convenient.

Endnotes

  1. Made by the Governor in Council on 23 May 2013.
  2. Notified in the Gazette on 24 May 2013.
  3. Not required to be laid before the Legislative Assembly.
  4. The administering agency is the Department of Justice and Attorney-General.