MUNCE BAN:HONG KONG, AUSTRALIAN RELATIONSHIP STRAINED

Mr Winfried Engelbrecht-Bresges, the Chief Executive Officer of the Hong Kong Jockey Club ("the Club"), has today responded to the decision by Racing New South Wales (Racing NSW) not to fully reciprocate the decision of the Racing Stewards to disqualify Christopher James Munce from racing for a period of 30 months to expire on 1 September 2009.

When licensed by the Club for the 2005/2006 Racing Season, Christopher Munce agreed to voluntarily submit to the Rules of Racing and Instructions of the Hong Kong Jockey Club. On 1 December 2008, Christopher Munce pleaded guilty to breaching a number of Rules of Racing, including Rules 150 and 151(9) which were in operation at the time he agreed to be bound by the Rules of Racing.

Prior to the conclusion of the Racing Stewards inquiry, Christopher Munce was advised of his right of appeal against the decisions to disqualify him from racing on all 36 counts of breaching the Rules of Racing. He acknowledged that he understood his right of appeal against the decisions of the Racing Stewards. No appeal was lodged with the Club by Christopher Munce or his legal advisors by the prescribed time. The decision of Racing NSW not to reciprocate the penalty of 30 months disqualification from racing without Christopher Munce having exhausted his right of appeal in Hong Kong is disrespectful to the core values of due process.

Following the decision of the Racing Stewards on 1 December 2008, the Club wrote to Racing NSW, the racing jurisdiction which had previously issued Christopher Munce a jockey`s licence, and formally advised them of the penalties issued against Christopher Munce. At the same time, the Club requested Racing NSW to reciprocate the penalties imposed by the Racing Stewards. This request was submitted in accordance with Article 10 of the International Agreement on Breeding, Racing and Wagering ("the Agreement"), of which both Hong Kong and Australia are signatories. In correspondence today from Mr V`landys, the Chief Executive Officer of Racing NSW to Mr Jamie Stier, Chief Stipendiary Steward of the Hong Kong Jockey Club, he advised that "Racing NSW is NOT a party to that agreement. The Club is surprised to learn that whilst the Australian Racing Board is a signatory to the Agreement, Racing NSW as a Principal Racing Authority, and therefore a member of the Australian Racing Board, is not a party to that Agreement.

The objectives of the Agreement, amongst others, is "to enhance public confidence in the integrity of the sport of racing�" and to coordinate and harmonise approaches across the world of racing and breeding to promote the growth of the international dimension." Article 10 of the Agreement provides that "When a ban is imposed, the Horseracing Authority must immediately advise the Horseracing Authority of the country where the �rider is registered or licensed, of the original ban and subsequently of the result of any appeal hearing and, if deemed necessary, request that reciprocation of the penalty be applied. The ban will then automatically apply in that country, subject to any special conditions required by the laws of natural justice in that country (Emphasis added).

In its Press Release, Racing NSW has advised that the penalty of 30 months disqualification will not be reciprocated because the penalty is tied to a breach of a criminal offence under the criminal code of the Hong Kong SAR that does not exist under Australian law. The Club`s belief, however, is that similar legislation is in existence in New South Wales.

The Agreement addresses Rules of Racing and makes no reference to criminal conduct. The Agreement also specifically addresses the laws of natural justice being observed. In Racing NSW`s Press Release, Mr Peter V`landys acknowledges that the laws of natural justice have been observed by the Club by stating that he "wanted to make sure that it is clearly understood that Racing NSW fully respects the professionalism of the Racing Stewards of the Hong Kong Jockey Club in their handling of this matter. This is reflected in the decision we have taken to reciprocate these penalties." By reciprocating the penalties imposed on Christopher Munce for breaching Rules of Racing 155(7) and 59 (3), Racing NSW has acknowledged its obligations as a Principal Racing Authority in Australia, a country which is a signatory to Article 10. It is worth noting that during the Racing Steward`s inquiry, neither Christopher Munce nor his legal advisors raised any issues of natural justice relating the disciplinary proceedings or the handling of the matter. Indeed, the Racing NSW Press Release makes no specific mention of natural justice.

Irrespective of the fact that Christopher Munce was convicted of a criminal offence in The Hong Kong SAR, the penalty of a 30 month disqualification from racing arose from a breach of the Rules of Racing in that the criminal conviction specifically related to horse racing.

The Club believes that the unprecedented decision of Racing NSW not to reciprocate the penalty of 30 months disqualification from racing on Christopher Munce is in breach of the International Federation of Horseracing Authorities` principle that penalties will automatically be reciprocated whenever natural justice has been afforded. This decision has the potential to undermine the integrity of horse racing internationally and threatens the relationship between Australia and Hong Kong. The Club firmly believes the decision will negatively impact on the current level of cooperation between major racing jurisdictions to uphold the integrity of and public confidence in horse racing.