The following letter, written to the auditors of the MRC is published with the permission from the author, Mr. Jack Campbell, MBE. We have bolded what we believe are significant sections and deleted the author’s address. At the time of this posting, no response to this letter has been received! We are also informed that a meeting between Council and the MRC occurred this afternoon.
14th December 2010.
Morton Watson and Young – Chartered Accountants
51 Robinson St,
Dandenong 3175.
Dear Sirs,
Re: The Caulfield Racecourse Reserve Trustees.
I write to you as auditors of the Caulfield Racecourse Reserve Trust drawing your attention to some apparent irregularities. As you know the Trust has, since 1858, controlled Crown Land now worth well over $1 billion for the purpose of not only a racecourse but also a public recreation ground and a public park. The Trust was criticised by The Legislative Council’s Select Committee on Public Land Development, which produced a final report in September 2008. One would presume the Trust would take cognisance of the report, which was chaired by David Davis, the Minister for Health and Ageing.
I now respectfully draw your attention to the following, and ask for your comment:
1. The Grandstand (Head) Lease to the Melbourne Racing Club (MRC) expires in September 2012. The final 3-year renewal, which could have proceeded (following due notice) in September 2009, has not been effected. It follows that there is no lease, and a monthly tenancy of this Crown Land by the MRC is not legal and its occupation should cease.
2. Notwithstanding point 1, the Grandstand (Head) Lease seems to only cover the Crown Land north of the racetrack, in which case the MRC has no right to sub-lease either the Western or the Neerim Road areas, or to use the ‘flat’ for training, car parking and other commercial ventures.
3. The sub-lease to Monash University has expired and the documentation is missing.
4. The sub-lease to Hore-Lacy of the ‘Western Stable’ complex is also missing and has probably expired.
5. A newly executed lease (23rd April 2008) for the Neerim Road Stables is also missing, and it would appear that Freedman Brothers and Mitchell have already broken their lease by vacating the leasehold. The remaining trainers are Mason and Aquanita Racing who, without the MRC having a legal head lease, may be occupying the Crown Land illegally.
6. The Deed of Maintenance and Development executed 17th February 1997 seems to have fallen behind in its reporting and the MRC’s annual development plans seem to be routinely altered at the sole whim of the MRC.
7. State Government permission is sought and granted for buildings and works to proceed despite no current valid lease between the Trustees and the MRC.
8. An anachronism of the past is that the Trustees accounting period is calendar rather than financial, and the amount of rent, and when it is due from the MRC, is vague and indeterminate. $180,000 p.a. seems to be the amount, giving a return of less than 0.02% on the real estate value. What is clear, however, is no monies are returned to the community.
9. Without consulting the community the Trustees have indicated an intention to issue a further Grandstand Lease in September 2012, and have asked the MRC for a ‘wish list’ to ensure they get whatever their ‘heart’ desires. (The previously negotiated ‘Communiqué’ between the MRC and Council is ineffective. If the MRC is to retain control of this land fresh and sincere negotiations are essential to provide a direct and positive benefit to the community.)
I am sure you are familiar with the Select Committee’s report, but for your ease of reference here are some of its recommendations:
RECOMMENDATION 5.8
That the Government investigates:
• the history, membership structure, responsibilities and current arrangement of the Caulfield Racecourse Reserve Board of Trustees, particularly in relation to its duty to uphold not just horse racing, but all the purposes of the reserve in the original Grant;
• the purpose to which money raised by horse racing has been used;
and
• ways in which the Government can ensure that the Board of Trustees operates in an open and transparent manner and in accordance with the terms of the Grant.
RECOMMENDATION 5.9
That the Master Plan for the Caulfield Racecourse Reserve redevelopment be the subject of wide public consultation incorporating the municipalities of Glen Eira, Stonnington, and Port Phillip.
RECOMMENDATION 5.10
That the Minister for Planning strongly consider appointing community members and/or people with park and recreation expertise as nominees of the State Government to the Caulfield Racecourse Reserve Board of Trustees to provide a balanced representation of interests and expertise.
RECOMMENDATION 5.11
That the day-to-day management of the Caulfield Racecourse Reserve, by delegation from the Trustees to the Melbourne Racing Club, be reconsidered.
At the hearing it became apparent that some Trustees did not even know the boundaries between the MRC’s freehold land and the Crown Land which they control and govern.
On the 27th November last year the Minister for Sustainability and the Environment, the Hon Gavin Jennings, told Parliament … “that there might be some lingering concerns about the way in which this public reserve may be opened up to the community. In terms of my responsibilities as the Minister for Environment and Climate Change who deals with the land element, I wanted to be satisfied that the net benefit of this would derive a community benefit and that there would be the potential once and for all to make sure that the community is aware this is a public reserve and not, as it may have been perceived for decades, a private space.
“We are unswerving in our determination to ensure that there is a public benefit derived from this public reserve.” (Hansard, my emphasis.)
Finally, fundamental breaching of the Crown Grant provides that the authorities may ‘re-enter upon the said land … and to hold possess and enjoy … as if this Grant had not been made’.
Yours faithfully,
A. J. E. Campbell
Glen Eira Debates 