QRU puts cards on the table

By Wayne Smith, The Australian
March 01, 2007

THE battle lines between the Queensland and Australian Rugby Unions were drawn when the QRU demanded the resignation of one of its own nominees to the ARU board, David Usasz.

The Brisbane businessman was approached a month ago by QRU chairman Peter Lewis, who told him he had lost the confidence of the board because he had failed to adequately represent Queensland's interests on the national body and asked for his resignation.

Usasz requested an opportunity to address the QRU directors and did so yesterday. But when asked a second time for his resignation, Usasz said he would consider the matter.

Indications last night were Usasz would hold firm and refuse the request, backed by the other members of the ARU board. One ARU board member suggested that, far from resigning, Usasz should charge Lewis with bringing the game into disrepute.

"It would be up to David to table that charge and the ARU board would look at it," the board member said. "We would look at the conduct involved and, if there was an issue, the appropriate action would be taken."

All that would appear to be bluster, although it does provide an insight into how bitter and deep the divide between the bodies has become. Queensland is entitled to ask for a director's resignation but certainly is in no position to sack him as its board representative.

Only if there has been a breach of the corporations act, or if a director is ruled mentally unstable, can a board member be removed without his consent outside of an annual general meeting.

Lewis, when approached yesterday, issued a sharp "no comment".

Usasz, whose term expires in April next year, said it was ironic he was coming under fire for not pushing Queensland's barrow in the ARU boardroom because some of his fellow directors had gently chided him about being too pro-Queensland.

"I don't want instability in rugby but I don't want people in rugby to think I have been a puppet of Queensland," Usasz said. "I have worked hard for the game and I have financial stewardship of the Australian Rugby Championship. I told the QRU I would go and contemplate their (resignation) request and tell them in a month."

Yesterday's farcical development, which follows hard on the heels of the $10,000 fine imposed last week on Reds coach Eddie Jones, has further eroded the game's credibility with the Australian public and raises questions about the focus of administrators in this World Cup year.

At issue is whether Usasz is on the ARU board to represent Queensland's interests.

Although he was nominated 18 months ago by the QRU as its nominee - taking over from Ben Kehoe, who also was asked by Lewis to resign - Queensland has only three votes of 14 on the ARU council. As well, the ARU recently changed its constitution to introduce the notion of independent directors, owing allegiance to no particular constituency.

"Queensland's capacity to devour its own is absolutely amazing," one director said.

There is increasing speculation at national level that what the ARU views as the destabilisation campaign being run by the QRU is a mere smokescreen for Queensland's own failings, with the QRU having sustained significant financial losses in line with the on-field losses by the Reds over the past four seasons.

"They're looking down the gunbarrel and they're feeling the pressure," the ARU director said.

ARU chairman Ron Graham declined to comment last night.