10 May 2016

Hon. Peter Wellington MP Speaker Queensland Parliament Alice Street BRISBANE QLD 4000

Dear Mr Speaker

t write in relation to comments made in the House during the last sitting week by Hon. Grace Grace MP in her capacity as Minister for Racing where the minister deliberately misled the House on more than one occasion and may have also breached Ministerial Guidelines.

These comments were in rela tion to the recent appointment of Mr Steven Wilson as Ch::iir of the new Queensland Racing Board . I want to emphasise that my concerns are about the Minister's actions in relation to her potential conf lict of interest in making this appointment and her subsequent comments in Parliament, ancl not t11e appointee himself.

Mr Speaker, I submit that in tabling this correspondence, Ms Grace has deliberately misled the House and is in contempt of the Parliament, in breach of Standing Order 266 of the Standing Rules and Orders of the Legislative Assembly.

There are three elements to be proven in order to establish that a member has committed the contempt of deliberately misleading the House:

1. The statement must have been misleading: 2. The Member making the statement must have known, at the time the statement was made, that it was incorrect; and 3. In making the statement, the Member intended to mislead the House.

On 20 April 2016, I asked the Min ister the following question without notice:

"'My question is to the Min ister for Racing. As a minister of the crown, did the minister disclose a direct personal financia l relationship with Mr Steven Wilson to the Integrity Commissioner prinr tn the minister 's recommendation of Mr Wilson's appointment being taken to cabinet? If so, will she now table the disclosure?"

In response . the Minister stated that:

"'I thank the honourable member for the question. I am not sure exactly what she means by-and I am trying to think of her actual words-a personal direct financial relationship with a publicly listed company. I fail to understand how that becomes a personal financial investment or relationship when it was disclosed on the Register of Members' Interests. My husband and I die! have a few shares in Wilson HTM, I think ii may have been, wl1ich is a publicly listed company and able to be bought by anybody in this House, and that was clearly identified on the register. How that becomes a personal private financial relationship is honestly beyond me. As soon as I was appointed minister. I sold those shares in fine with the ministerial guidelines. My updated details on the Register of Members ' Interests clearly show that those shares and anything that could have been a conflict with me being appointed as Minister for Racing were all sold and I have discarded all of those shares.

Mr Speaker, W ilson HTM is not a publicly listed company and is not listed on the Minister's Register of Membel"'s Interests. A quick search of their website (Wilson HTM Investment Group) lists them as a "privately owned financial services house comprised of three main client-focused teams".

A copy of the Minister's Register of Members' Interests lists her shareholdings or controlling interest in a company named Flagship Investments. I enclose a copy of the Member's Register of Members' Interests for ease of reference.

The company now known as Flagship Investments Limited was previously known as Hyperion Flagship Investments Limited from 29 July 2005 to 17 October 2012, Wilson Investments Taurine Fund Limited frnm 27 September 2002 to 28 July 2005, Wilson Investments Taurine Fund Limited from 26 October 2000 to 26 September 2002 and originally known as WAM Australian Equity Fund Limited from 23 September 1997 to 25 October 2000. From 21 July 2000 to 15 October 2007 , the Minister served as a director of the company. Mr Wilson was also a director from 26 September 1997 to 4 Juno 2009. I enclose a copy of the organisation details and previous directors list, for ease of reference.

At the time of the appointment of the Minister to the Board of Flagship Investments, Mr Wilson was the Chairman of the company. I enclose a copy of an extract of the Chairman's repori in the 2000 Annual Report, for your reference, in which fllfr Wilson says the following:

'·tam also delighted to announce the recent appointment of Ms Grace Grace to the Board. Ms Grace is currently Assistant General Secretary of the Queensland Council of Unions and holds a number of company and government board positions. I look forward to her contribution based on her extensive experience in business, union and community-related activities."

In her answer to rny question without notice on April 20, the Minister further stated that:

"Any suggestion is offensive and is insulting to a fine Oueenslander who has outstanding credentials to take on the role of chairman of Racing Queensland. I did consult the Integrity Commissioner - - because I also have shares in a fund manager called Hyperion. You buy shares and you have no control over how that is invested .. ,

The Minister received the shares in the company due to her role as a Director of the company, a role in which she was appointed to by the then Chairman, Mr Wilson.

During debate on the Racing Integrity Bill 2015 on 21 April 2015, the Minister further stated t11at:

.. , want to put this on the record very clearly: there is no business relationship between myself and Steve Wilson . There never has /Jeen and there never will be in the future . . ,

My questions to the Minister were to seek assurance for the racing industry and also the Parliament of Queensland, that the Minister had followed the advice of t11e Ministerial Handbook in relation to managing direct or indirect conflict between Ministerial responsibilities and private interests.

However, through the Minister's own responses to th is matter-, I am of the belief that she has misled the HoLJse. It is quite clear that at the very least, the Minister had a business relationship with Mr Wilson. He was Chairman of the Board when she was appointed a director of Flagship Investments in 2000. They both served as a director on the Board of that company from 2000 to 2007. That fact alone would qualify for the definition of a business relationship.

Regarding the question as to whether the Minister sougl1t th e advice of the Integrity Commissioner, I draw your attention to the following statements from the Minister.

In her answer to the question without notice on 20 April , the Minister said:

"/ did consult the Integrity Commissioner - because I also have shares in a fund manager called Hyperion. You buy shares and you have no control over how that is invested. I wanted to be sure - not because of the question of the member of Currumbin - that if I held on to those, because I had no direct influence on how the funds were invested, I was not /Jreaching ministerial guidelines. It came back that I was not."

Subsequently, during debate on the Racing Integrity Bill 2015, I asked the Minister to table the response from the Integrity Commissioner to ensure that any confl ict of interest that has been reported in the newspapers has been appropriately managed and disclosed

The Minister, on April 21 stated that:

"I have nn letter frnm the Integrity Cnmmissioner to table because there is no conflict and there is no business relationship. · I do not see how the Ministei- could give the advice on Wednesday 20 April that ''it came back that she was nof' (in breach of ministerial guidelines), when on the Thursday 21 April she said that she has no letter from the Integrity Commissioner.

In making your determination, I draw your attention to the following statement on the Integrity Commissioner's website:

"A// requests must be in writing and should contain sufficient information to allow the Integrity Commissioner to evaluate the issues concerned. If necessary, the Integrity Commissioner can ask for further information. Requests should be sent by post or email marked private and confidential.

The Integrity Commissioner will respond in writing. If postecl, the reply will be sent by registered post and bear a privacy marking on the envelope."

In light of the matters I have raised , I respectfu lly ask that you consider th is matter and whether it should be referred to the Ethics Committee for further investigation.

I will correspond my other concerns about the Minister's integrity for Mr Wilson's appointment directly to the Integrity Commissioner.

Yours Sincerely,

GRACE. lonazia Grace !Grace) (Brisbane Central)

1. Shareholdings or controllin,-i interest in companies [7(2}(a)(i})

11. Interests in real estate [7(2)(g))

14. Savings and investment accounts [7(2)U))

15. Gifts received valued at over $500 (7(?.}(k)J

17. The source of any other income over $500 per annum [7(2)(m)]

18. Other assets over $5,000 {7(2)(n)]

19. Membership of any political party, trade or professional organisation; or office holder; or financial contributor over $500 per annum (7(2J(o)]

Flagship Investments

Fortitude Valley, 653m2• family home. joint owner; New Farm, 581m2, investment house, joint owner; New Farm, 407m2, investment house, joint owner

Savings account x 3 - CBA; cheque accounts x 2 - CBA; savings accounts x 2 - NAB; term deposit accounts x 2 - CBA

Virgin velocity program; tickets x 2 - Queensland Ballet; tickets Rugby Test Match - Laing O'Rourke

Investment property x 2

Toyota .f:IAV4; Holden Crewman Ute

ALP; CPSU; NUW; ASU Services; Together; IRSQ; Valley Chamber of Commerce; llal;an Chamber of Commerce; New Farm Rotary Club; New Farm State School P&C; New Farm Neighbourhood Centre; Qld Aids Council; Windsor State School P&C; Teneriffe Festival

32

Current & Histori cal Company Extract FLAGSHIP INVESTMENTS LIMITED

ACN 080 135 913

I

1 Organisation Detalis

[ Current Organisati on Details

Name: FLAGSHIP INVESTMENTS LIMITED

ACN:

ABN:

Registered in:

Registration date:

Next review date:

Name start date:

Status:

Company type:

Class:

Subclass:

080 135 913

99080135913 Queensland

23/09/1997

23/09/2016

18/10/2012 Registered

Australian Public Company

Limited By Shares

Listed Public Company

'*DISCLOSING ENTITY''

I Previous Organisation Details from 29/07/2005 to 17/10/2 012

Nan1e: HYPERION FLAGSl-'. IP INVESTMENTS LIMITED.

Name start: 2910712005 Status: Registered

Company type: Australian Public Company

Limited By Shares Class:

Subclass: Listed Public Company

Previous Organisation Details from 27/09/2002 to 28/07/2005 - - -- . .

Name: WILSON INVESTMENTS TAURINE FUND LIMITED

Name start: 26/10/2000

Status: Registered

Company type: .A.ustralian Public Company

Limited By Shares Class:

Subclass: Listed Public Company

I Previous Organisation Details from 26/10/2000 to 26/09/2002

Name: WILSON INVESTMENTS TAUR!NE FUND LIMITED

Name start:

Status:

Company type:

Class:

Subclass:

26/1 0/20JO

Registered

Australian Public Company

Limitecl By Shares

Unlisted Public Company

Previous Organisation Details from 23/09/1997 to 25/10/2000

Name: WAM AUSTRALIAN EQUITY FUND LIMITED

Name start: 23/09/1997 St2tus:

Company type:

Class:

Subclass:

Address Details

07 April 2016 AEST 01:57:!53 PM

Registered

Australian Public Company

Limited By Shares

Unlisted Public Company

Document Number

028181533

020967712

DP0148P :

016551693

013614553 1

Document Numb~r j

Current & Historical Company Extract FLAGSHIP INVESTMENTS LIMITED

ACN 080 135 913

Start date: 09/08/2006

Officeholders and Other Roles --- _ .. - --Director

Secretary

Name: HENRY ROBERT SMERDON

Address: 17 Cornell Street, ROBERTSON OLD 4109

Born: 10/07/1946, BRISBANE, OLD

Appointment date: 21/09/2000

Name: EMMANUE~ CLIVE POHL

Address:

Born:

Appointment date:

161 Sir Bruce Small Boulevard, BENOWA OLD 4217

30/11/1953, JOHANNESBLRG, SOUTH AFRICA

26/09/199/

Name: DOMINIC MARTIN MCGANN

Address: 96 Kadumba Sireet, YEROl\'GA OLD 4104

Born: 31/12/1961, PORT HEDLAND, WA

Appointment date: 08/10/2009

Name: SOPH!A Ml rCHELL

Address: 16 Childs Street, CLAYFIELD 01.D 4011

Born: 22/08/1967, ARM!OALE, NSW

Appointment date: 11i06/2008

Name: BRIAN EDWARD JONES

Address:

Born:

Appointment date:

53 John Road, f:HERRYBROOK NSW 2126

14/06/1952, JOHANNESBURG, SOUTH AFRICA

19/10/2015

Previous Director Name: PATRICK CORRIGAN

Address: Unit 6, 33 Moana Road, DARLING POINT NSW 2027

Born: 09/09/1932, , CHINA

Appointment date:

Cease date:

Name:

Address:

Born:

Appointment date:

01/05/2009

06/11/2015

JUSTINE STANDISH HICKEY

55 Teneriffe Drive, NEW FARM OLD 4005

27/01/1967, SYDNEY, NSW

05/10/2006

Cease date: 08/10/2009

Name:

Address:

Born:

Appointment date:

STEVEN MONTEITH WILSON

116 Dornoch Terrace, HIGHGATE HILL QLD 4101

12/08/1954. BRISBANE, OLD

26/09/1997

Cease date: 04/06/2009 -

Name: IGNAZIA GRACE

Address:

Born:

Appointment date:

Cease d<Jte:

Name:

Address:

Cl April 2016 AEST 0'1:57:53 PM

199 Arthur Street. TENERIFFE OLD 4005

12/08/1958, BRISBANE, OLD

21/07/2000

15/10/2007

RUSSELL BRUCE MCCRORY

11 Napier Street, ST LUCIA OLD 11067

Document Number

016528327

1E4818B90

5E2215955

1 E4490011

7E7395572

1 E5401789.'

;

023230729 1

012780448 I I

016546075

013794312

3

/

Chairman's Report I a111 plcast2 ro prcsi:n[ chi: third J\i:n u~o.I ]{cpon of chc company for rhe year ended

30 J ll llC' 2000.

Ir is especblly pleasing to review rh~ year's perfornmKc agai1~s1 rhe company objectives of

ac11ieving rhe highesc possible real race of n:rnrn wirhin specilk risk para111e1crs, pres~rving nnd

enh.111Ling die real \•:tlui: ofi 11vtst111e1m ;rnd providing .1harcholdcrs with a fully franked dividend.

I n rcga rcl ro ratl." oirett;rn and value ofinvc.mnrnrs, c~rnings per shari: for the period hav.:

incr~ascd by 71.8% to ~J0 . 5 cent; per sh ~:r, \':ith Net Asscr V:illlc ri~i ug co~ J.3.1 per sh:ire.

from$ 1.06 per shm:, a 24.4% increase. SIJJrdrnlders ~re rcilping rhe re\\"onds of,., so lid

portfolio ol' investmem;. Indeed, ~10,000 invested in \\/.1\1\.-f Au,tr:d ian Lquiry Fum: Limi;ed

ac che cimc: of rhe l't:bl ic Share Offn in lvhird1 1998 \•;,iuld k wonh SI .'i,200 .u

30 June 2000.

Shareholders ha\·e also b.:ndi ·ccd fro m a 3.3 crncs per share fully fra:1kcd Jividtnd in

I 99'J-200Ll. During rhe period c!1e Compa!l)' ~'rablish:d a Dividend Re'nwMmtnr f'lrn, which

prol'ide; a runvcnienr, low-co.H means of ~lquiring addi1ion,1: slw:cs. I encour.1gc .1hard1olc!ers

10 consider pilrticiparing i11 this Plan.

Like a ll stock marker im·,·stlllt ll[S, invesror; c.111 expi"cr \'O~ari l iry i:1 rlw ro111p.111y's pcrr~>r111:111cc .

however afce1 mo re ch;111 2 ye:irs of opcrnic11 our i'und man:1g<:r h.1s .~hown it is pmsibk 1·0

achi~\'t above-;Jvcwgc r~turns \virhour t"Xccssive risk.

ln pro\·iding a tim11c m:rlook. the Man:;ging D irccwr h:t> com111enrcd 011 che ecu:iornic growth

cycle bo th in Austra lia and tht.: United Srari:~ and che likd)' !110\'emems in i1m·resc r.ircs m·c·r

the next 12. mond1s. Thesi: facrors :ire indeed c r i cic~I ro cquicy markcc \",ilL:arions.

l am ~ lsu dd iglHcc.I to a11nounce chc rc<:enr ;tpp11intment ollvb Cra.:c· Ci ace ro che BuarJ.

Ms Crace is rnrrcndy As~ist;inc Gi:nerd Secretary of th e Queen;bnd Council of Unions and

holds a nnmb~r ofrnrnp;my ;mt~ go\·crnmcm bo;ird positiom. 1 lonk forw;ml co her co11 nib'.1tion

b;1scd on her cxcensi\·~ cxp,·rirrn.:e in businc;~. tmion and con1111u11icr· n:b tc·d aCli"ici~>.

Looking fo rward , rour dirc:cro;·:; ;?re mindrul nfa dcsir~ b;: many shareholciers ro move

wwards an Austr3l ian Stock Ex.:lungc I .imircd liscing of \X1i\lv1 and ;n srq1s co examine this a rc

cum:ncly undcrw:iy. \Y/ c cxpecr chis ncxr milestone ro he achic,·ed rhis ilnancial )'l'ar.

Fin:.lly, I rh:ink you fu ; ro ur ungciing support of th e comc>any and look forw.ird ro wdrnm ing

)'Ou co our Annual Gen~r;1J Jv( cc:ting.

, · ·~~~ Steven \Vilson

C/h1in1111n

Stcvt."n !\1 \V'il:>\lll ('l1.1im::111

11 Shareholde1·s

"' 1·0 •·n ·~ 1 ·}1r-cn t i-.., a.._r ,::Or- .i:y le

so lid o o rLloli o or '

in vc strn en ts"

\\I :.. ~-' /\ u s T P. A l I /, N r () u I T " r l.1 I~ [l I I M I T ( () A M N ll A I R f· P 0 R T 0 0 0

~ . - -- ........,..----- . .. ~ , . - -~

;.Table of Contents ; I ' JI' ,. ~. ~ ...... • '... - • I • ·I

Choirrnon' s Report

Monaging Director's Report

Directors' Report

Audifors' Independence Declaration

Corporate Governance Sta!emenl

Financial Repoli

Direc tors' Declara tion

Independent Audit Reporl

Shareholder lnformolion

FINANCIAL CALENDAR rlNANCIAL YEAR EN D 30 June 2007

BOOKS CLOSE 21 August 2007

DIVIDEND PAYMENT 7 Seple....,ber 2007

NOTICE OF ANNUAL GENERAL MEETIN G The Annual General Mc<:i ing of Hyper:on Flo9shi;i lr·1es·rM 'llS l 1m1:ed

WILL BE HELD AT lhe ofke of Hyp1;::rio11 rlou~ l ,;p lr.ve~lmenl!. Li 11:ted

Level 38, R'pcr.on Plozo 71 Eog I: S:rc:t Brisbone QiJ ~000

TIME .5 OD prn

DATE Thursday 8 No,·~,.,,bar '.2007

7

8

10

15

16

21

38

39

40

INVESTING IN HYPERION FLAGSH IP INVESTMENTS LIMITED lrwcslors ccin purchase shores in 1-lypcricn r lo-;iship lnvesfme11is limi1ed lhrough lhe Auslrolion Slack Exchu11g" .

ASX code, HIP

Hyperion Flagship lrwesfmen:s Limited AL\N 99 080 135 9 13 Regis•ered in Que=rslond 23 Seplemb<?r 1997

HYPERION FLAGSHIP INVESTMENTS LIMITED DIRECTORS (ircrr. leli to right) G roce Groce, Or Monnr Pohl, Herry Smerdon, Jus1ine Hickey ond 51even Wilson

Mr Speaker,

I rise on a matter of privilege.

During the last sitting week, the Minister for Racing made a number of statements in relation to her management of a potential confl ict of interest regarding a recent appointment she made to the Racing Queensland Board, and whether she had sought advice from the Integrity Commissioner.

It is my belief the Minister has deliberately misled the House in relation to these issues and made contradictory statements on Wednesday 20 April and Thursday 21 April. I wish to advise that I am writing to you about this issue.