NSW select committee criticises Rosehill redevelopment in final report

A scathing inquiry report into the proposed redevelopment of Rosehill Racecourse has criticised NSW Premier Chris Minns’ involvement in the urban transformation scheme and cast doubt on its ability to make a “significant impact” on the state’s housing accord targets.

The report, released on Friday by a parliamentary committee chaired by Liberal member Scott Farlow, flags concerns about Mr Minns’ conduct with the Australian Turf Club, the owner of the course and the proponent of the redevelopment.

The committee has referred the report to the state’s Independent Commission Against Corruption on alleged conflict of interest concerns surrounding the Premier’s friendship with Steve McMahon, the ATC’s head of government relations.

“The use of ‘meet and greet’ to describe the meeting of Mr Steve McMahon and the Hon Chris Minns MP, Premier, on October 30 2023 is inaccurate, misleading and does not adequately describe the purpose of this meeting,” the report’s Finding 2 states.

“It is inappropriate given the longstanding friendship of Mr McMahon and the Premier and the nature of the matter discussed at the meeting.

“Ministerial diary disclosures should properly disclose the purpose of meetings.”

Finding 3 states: “There was significant conflicting evidence regarding the proposal to develop Rosehill Racecourse, including unanswered questions surrounding the involvement of the Premier.”

The ATC has pitched redeveloping western Sydney’s Rosehill, situated some 23km west of the CBD, into a new residential precinct with 25,000 homes, green space and a new Sydney metro station.

The ATC, a private company, would partner with construction firms to deliver the development, and the NSW government is assessing the plan.

But the report casts doubt on the merits of the proposal.

“The evidence before the committee did not demonstrate that the proposal to develop Rosehill Racecourse presented immediate monetary value for the NSW taxpayer or would, alone, make a significant impact in meeting NSW national housing accord targets,” Finding 10 states.

“It may, however, provide wider economic and social benefits and make a positive contribution to resolving a chronic housing shortage in Sydney.”

The report also notes the prospect of relocating Rosehill to the Brick Pit site at Olympic Park was unlikely to secure approvals.

“The Brick Pit site at Sydney Olympic Park is highly unlikely to be able to accommodate a racetrack due to environmental factors, including the endangered status of the resident green and golden bell frog population and the ongoing instability of land at the site,” Finding 8 states.

Finding 9 states there are no other “viable or feasible sites” that have been identified for another racetrack in metropolitan Sydney.

A leak from the committee on Wednesday had wrongly said Mr Minns had been referred to ICAC, sparking an angry reaction from the Premier who denied any wrongdoing.

“The significance of this referral is that anyone in the state can make a referral to ICAC,” he said on Thursday.

“Anyone in the state can make a referral to ICAC, anyone.

“Whether you’re a parliamentarian, whether you’re a former member of One Nation … anyone can.

“So the bloke on the corner in Kogarah in my street can make a referral to ICAC.

“It doesn’t mean that they are conducting an investigation.

“And I’m going to leave their processes up to them, but I think there are some basic points that need to be put on the table.

“I believe this is a good idea for Sydney, but it’s still up to ATC members.

“No one is alleging any private gain has been made by anyone, either in the government or outside the government.”

NewsWire does not suggest that Mr Minns has acted improperly.

Mr Farlow revealed in a foreword to the report the leak the Mr Minns had been referred to the ICAC had been referred to parliament’s privileges committee for investigation.

“It is disappointing that this legitimate step of the committee was disclosed to the media prior to the tabling of this report,” he wrote.

In a press conference following the report, Mr Farlow said the committee had “not being able to ascertain the origins of this deal” due to “conflicting evidence”.

He also said the government had not put the proposal through proper “probity” measures.

“The government, in their haste for a big announcement, threw caution to the wind and threw out many of the proper probity processes that we would expect from what would be one of the largest real estate deals in NSW history,” ,” he said.

He also reiterated the committee had not found evidence the redevelopment would increase housing production “to a dramatic extent”.

The report contains dissenting opinions from independent member Mark Latham and Labor members Bob Nanva, Sarah Kaine and Peter Primrose.

The Labor members state the evidence provided to the inquiry had only “strengthened” government members’ view that the Rosehill proposal was a “once-in-a-lifetime opportunity” to uplift housing supply in the state.

“What makes this proposal unique is that just four landholders privately own an entire precinct of 90 hectares, a precinct which already aligns with the expansion of the Sydney Metro,” the members state.

“Having taken more than half a year of the committee’s time, concerns repeatedly raised by particular committee members have not been established by the evidence.

“They remain mere assertions, presented as facts, by vocal opponents of the proposal.”

The ATC will determine whether to proceed with the proposal or abandon it.