NSW Greyhound racing faces tougher penalties for offences such as live baiting to be enforced by a powerful new integrity body funded by the industry's commercial operations.
However, an initial proposal to cap the number of greyhounds bred for racing in NSW to 2000 a year has been rejected by a panel established to advise the government on how to reform the industry.
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NSW Premier Mike Baird announces the NSW greyhound industry will be given "one final chance" under a new regime in October 2016. Vision courtesy ABC News24.
The cap was offered by the industry last year as it fought for survival after a special commission of inquiry found up to 68,000 greyhounds were slaughtered as "wastage" in the past 12 years "because they were considered too slow to pay their way or were unsuitable for racing".
But the panel, led by former premier Morris Iemma, has instead recommended a strict licensing and registration regime that would see dog owners pay an upfront bond and annual payments for each animal.
![Greyhound racing in NSW is set to be overseen by a new integrity body.](/web/20170216153813im_/http://www.smh.com.au/content/dam/images/g/s/0/n/i/8/image.related.articleLeadwide.620x349.gue90d.png/1487212680029.jpg)
RSPCA chairman Steve Coleman â a panel member â said the recommended regime was designed "to ensure that a human can be linked to every greyhound at every part of its life".
Mr Iemma said a cap "wouldn't be practical at this stage" in the absence of a national approach to greyhound racing numbers.
He said the panel had found the greyhound industry can continue to operate in NSW provided its recommendations are adhered to.
The changes would ensure that "in essence NSW becomes best practice for greyhound racing and for animal welfare when it comes to the greyhound racing industry".
Racing minister Paul Toole said the government would respond to the report's 122 recommendations in due course.
The panel report was commissioned last year by then premier Mike Baird after he backed down on an initial push to close down the industry after concerted industry and media pressure.
The proposed new three-commissioner Greyhound Welfare and Integrity Commission would act as regulator and operate independent of government.
It would have "a broad range of investigative powers" to enter and search public and private premises and use in prosecutions evidence gathered by covert surveillance authorised by a court warrant.
The panel says Greyhound Racing NSW should be stripped of regulatory functions and oversee the sport's commercial operations.
The regime would introduce "strict controls on euthanasia" and restrictions on small animals such as rabbits and possums that could be used as lures being kept where greyhounds are raced or kept.
The chief executive of the NSW Greyhound Industry Racing Alliance, Brenton Scott, highlighted a recommendation that the industry should receive a greater share of TAB racing turnover under the inter-code agreement.
But the NSW Greens rejected the panel's report as "just a political compromise".
"There is no way any regulator can reform an industry so rotten to the core," said Greens MLC Mehreen Faruqi.