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Queensland’s Crime and Corruption Commission (CCC) has been asked to investigate the state's racing body, as the Queensland Government warns that the industry body is in a financially unsustainable position.

With Racing Queensland facing a $28 million loss, Queensland Racing Minister Bill Byrne has highlighted an "overly optimistic" and even "naive" culture within the racing body.

Speaking yesterday (16th July) Minister Byrne advised that four matters had been referred to the CCC, but he would not go into detail.

He told media "let's just say they're not being referred to the CCC for matters associated with tiddlywinks.

"We're talking about substantive serious issues, and that's the way they're being treated."

Minister Byrne added that the matters were not related to the greyhound live baiting scandal, which has seen 68 charges laid against 25 people, including some for serious animal cruelty offences.

However, the issues were not uncovered until the MacSporran report, compiled by consultants KPMG, which began in the wake of the live-baiting greyhound scandal.

Miniser Byrne, who was sworn in as Racing Minister the same day the ABC aired its investigation into live-baiting in the greyhound industry earlier this year, said he had "no inkling" of any issues until KPMG was sent in.

Racing boards have been sacked and a KPMG consultant, Ian Hall, has been appointed to run Racing Queensland, in the wake of an inquiry into the scandal.

Minister Byrne said they have discovered poor management practices, unrealistic expectations of revenue growth, and generous prize money and subsidies.

He explained “these combined factors have led to a perfect storm of financial unsustainability,

"The reality is simply this: Racing Queensland has been operating at a loss and Government and industry need to make some tough decisions.

A loss of $28 million is predicted in 2015/16, a worse result than the $21 million loss predicted in June.

Interim administrator Hall warned that wagering revenues have flattened while expenses have grown.

He stated “it's clear that the current position of Racing Queensland is untenable (and) can't continue in this current way."

Hall indicated that cuts to prize money could not be ruled out, adding "obviously it's the largest expense and everything's on the table to be looked at and considered.”

Minister Bryne also advised that the current Queensland Government had been unaware of these serious issues until recently, concluding “right up to the point of when Ian (Hall) went into Racing Queensland, I was completely unaware of the financial issues facing Racing Queensland.

"So if there is any upside to the greyhound inquiry, it has revealed these matters to me, which I was completely unaware of."

Racing Queensland will also be undertaking an industry consultation during August and September 2015 with the aim of developing a plan for a sustainable future for the racing industry.

Click here for more information on this consultation.

16th February 2015 - ABC LIVE BAITING REVELATIONS TO BE ‘EXTREMELY DAMAGING’ TO AUSTRALIAN GREYHOUND RACING INDUSTRY

9th June 2014 - EAGLE FARM RACECOURSE SET FOR $22 MILLION UPGRADE

10th February 2014 - QUEENSLAND RACING INQUIRY FINDS INDUSTRY PLAGUED WITH PROBLEMS

16th July 2013 - GOLD COAST TURF CLUB TO COOPERATE WITH QUEENSLAND RACING INQUIRY

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