Newman backs racing inquiry to call Bligh

A series of Labor powerbrokers, including former premier Anna Bligh, could be called to front a Commission of Inquiry into the operation of Queensland's racing industry. Source: The Courier-Mail

QUEENSLAND'S racing industry will be investigated by a Commission of Inquiry that is expected to call on a group of former Labor powerbrokers, including ex-premier Anna Bligh.

Premier Campbell Newman told reporters this morning at Parliament House he supports the inquiry.

"We continue to see these allegations of misspending of tax-payer funds and we also hear stories in the media about a failure of process in giving contracts, and there have been many complaints that have directly been made to members of government," he said.

However, he did not indicate who he thinks should be called before the inquiry, saying it was a matter for the Commission of Audit to decide should they agree to establish one today.

"It remains to be seen what happens," he said. 

Attorney-General Jarrod Bleijie will today formally recommend the inquiry to Cabinet following a series of stories in The Courier-Mail raising questions about decisions worth more than $200 million taken within the racing industry.

The newspaper's stories have focused on the former Racing Queensland Limited regime led by chairman Bob Bentley and a board of directors including Labor powerbroker Bill Ludwig. RQL reported to a series of ministers over the reign of the Beattie and Bligh governments.

Mr Bleijie said the Newman Government had also received numerous allegations.

EDITORIAL: Money mystery in racing

Former Queensland Racing director Bill Andrews is calling for a judicial inquiry into the industry. Picture: Adam Smith

"The Newman Government has been inundated with allegations in the past few weeks that have convinced me a full inquiry into the industry is necessary," Mr Bleijie said.

"I am concerned taxpayers' and racing industry money may have been squandered by the previous racing administration under the Labor Government. I am concerned about the lack of appropriate processes in awarding contracts in the racing industry.

"For example, there are allegations one company was awarded 37 contracts, of which only one went to tender."

The wide-ranging inquiry is expected to examine RQL's actions and the interaction with relevant Cabinet ministers during a series of controversial decisions including:

• A $20 million transfer of taxpayer funds to RQL's infrastructure trust account in the final days before the dying Labor government went into caretaker mode.
• Funding deeds between RQL and the Government for more than $60 million of works in key Labor electorates in the month before the 2012 election.
• RQL's award of more than 30 contacts to Sunshine Coast engineering firm Contour Consulting, most without a tender. RQL has said they were awarded because Contour was a preferred, specialist contractor.
• Contractual payouts given to senior staff who resigned within days of the 2012 election. Two of those staff immediately went to jobs at Contour Consulting.
• The decision by Queensland Race Product Co - a non-profit subsidiary of RQL - to authorise almost $100 million worth of deductions for agency costs by gaming giant Tatts Group, against subsequent RQL legal advice.

Former RQL director Bill Andrews last week called for an inquiry, labelling the Product Co decision a "disgrace" that involved a "hell of a lot of money".

Racing Minister Steve Dickson said he strongly supports the inquiry, which is expected to include cross examinations under oath of key figures within the industry and the former government.

This could include any conversations or direction given by Anna Bligh about the industry in her role as premier.

"The racing industry is vital to the Queensland economy; we need to know what has gone on under the former Government and former industry bosses," Mr Dickson said.

"Questions need to be answered, allegations need to be brought to light."

He said the government has worked hard to clean up racing in Queensland and wanted an industry the state could be proud of - one that was open, transparent and accountable.

"The integrity of Queensland's 30,000 strong racing industry is paramount," he said. "This inquiry is about ensuring the longevity of the racing industry and ensuring it is an industry Queenslanders can trust."

Further details including sitting dates and who will head the inquiry are expected to be announced in the weeks ahead.

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Payroll inquiry leads to focus on one man

The Queensland Health payroll inquiry is investigating how a simple $6.19 million payroll contract, signed in 2007, led to a $1.2 billion bill for Queensland taxpayers.
  Source: The Courier-Mail

AFTER two weeks of evidence, the narrative emerging from the Queensland Health Payroll Inquiry has developed a strong focus on one man - Terry Burns.

The inquiry wrapped up its first two-week session at lunchtime yesterday, after 10 days poring over the lead-up to the worst deal Queensland ever negotiated.

The inquiry, led by retired Supreme Court Judge Richard Chesterman, QC, is investigating how a simple $6.19 million payroll contract, signed in 2007, led to a $1.2 billion bill for the Queensland taxpayer.

Mr Chesterman had described the accepted facts of the deal as "notorious", noting the payment to successful contractor IBM jumped to $37 million by the time the system was implemented, while government costs ballooned to $64 million.

Premier Campbell Newman has estimated the cost of the entire exercise which left thousands of Queensland Health workers under and over paid will cost the state $1.2 billion.

Counsel Assisting Peter Flanagan, SC, who has led the meticulous cross-examinations of most of the 18 witnesses, has broken the complex history of the deal into four components.

First is the government's initial request for a proposal; then specific tender invitation itself on September 12, 2007; then an analysis of the companies which responded and, last, the role of individuals involved.

The inquiry has heard strong evidence something needed to be done in 2007 as the state struggled to provide IT services via an agency inside the Queensland Treasury - CorpTech.

Several reviews were commissioned to determine the best path ahead, some of them partially authored by Mr Burns, who recommended the creation of positions he later came to fill.

In 2007, Mr Burns had only recently arrived in Brisbane and his role was the first work he had done in Australia, yet he was soon playing a key role in evaluating whether his old employer should win a multi-million dollar contract.

Mr Flanagan noted Mr Burns had an impressive CV, having worked in senior roles in IBM in South Africa as its top man, "as he describes it".

A key piece of evidence to emerge this week was an email written by an IBM executive, which revealed that Mr Burns was having off-the-record and on-the-record meetings with his old employer.

"Terry is almost at a stage that he is coaching us, and is already strongly recommending the position we should take in some areas," the executive says.

More revelations contained in 35 volumes of documents are expected to emerge on April 8 when the inquiry resumes with four more witnesses to be cross examined on the tender process.

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Child inquiry seeks wider terms

Tim Carmody is the head of Queensland's Child Protection Inquiry. Source: The Courier-Mail

THE Carmody Inquiry into Child Protection has taken an odd twist with the Commissioner sending off a letter to the Attorney-General today seeking to widen his terms of reference.

Commissioner Tim Carmody has written to Jarrod Bleijie seeking to widen the scope of the inquiry to better investigate what is broadly known as the Heiner Affair.

Mr Carmody, under section 3(E) of his terms of reference, has a duty to examine the adequacy of government responses into historic allegations of child sexual abuse in state-run youth institutions.

It's been suggested inside the inquiry that the effect of that section could stop Mr Carmody hearing evidence about the Heiner Affair.

Heiner relates to a 1989 inquiry run by now deceased magistrate Noel Heiner examining allegations of mismanagement at the old John Oxley Youth Detention Centre.

The incoming Goss Government shredded documents related to Heiner amid fears the inquiry was improperly constituted and the material could lead to defamation action.

Whistle blower Kevin Lindeberg has made allegations the material shredded contained allegations of child abuse.

But, after hearing from 135 witnesses and admitting 248 exhibits, the inquiry has heard little evidence suggesting the Heiner Inquiry related to child abuse.

That lack of evidence could effectively preclude Mr Carmody from further investigating the shredding, which the inquiry has heard may have been inappropriate or illegal.

In an apparent attempt to continue the investigation into Heiner, Mr Carmody has asked that 3 (E) be widened to allow him to look into government responses to both allegations of child abuse and industrial disputes at youth detentions centres.

The Government is yet to respond, but it is believed the request will be granted.

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School maths inquiry: Ask the students

STUDENTS and parents will be asked to contribute to a state inquiry into Queensland's senior science and mathematics assessment system in schools.

The inquiry, revealed in The Courier-Mail last week, will investigate claims that problems with senior assessments are impacting on the number of students studying the subjects, along with concerns about the length of "extended investigations" assignments and marking criteria.

It follows a long-running controversy embroiling the Queensland Studies Authority about assessment in physics, chemistry and mathematics.

Students have been writing up to 10,000 word assignments in the subjects, despite a recommended word length of 1000 to 1500 words.

EDUCATION: Inquiry for 10,000 word school essays

Education and Innovation Committee chair Rosemary Menkens said the inquiry, ordered by Education Minister John-Paul Langbroek, would look at the matters independently.

"This isn't a cut and dried issue," Mrs Menkens said.

"While some teachers have a problem with the current system, others think it is wonderful.

"The committee will consider whether the balance is right between long form assignments and shorter assessment tasks, as well as the differences between, and relative merits of, standards-based and numerical score-based assessment processes in these subjects."

The committee will receive initial briefings from Queensland's three schooling sectors, the Queensland Studies Authority and Professor Peter Ridd, who represents a large group of disgruntled mathematics and science teachers, at Parliament House on Wednesday and Thursday next week.

Sometime after that it will invite submissions from the general public, including parents and other interested parties.

"As well as hearing from educators, administrators, and industry groups, I hope we hear from students during the course of our inquiry," Mrs Menkens said.

Those interested in the inquiry are being encouraged to subscribe to the committee's mailing list on the Queensland Parliament website: http://www.parliament.qld.gov.au/en/get-involved/how-do-I-get-involved/email-alert

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