VICTORIAN Premier Denis Napthine says there was no conflict of interest over a government decision to grant $1.5 million to a businessman with whom he owns a racehorse.
Dr Napthine says he was not directly involved in his government's decision to approve the grant to meat processing boss Colin McKenna, with whom he owns racehorse Spin the Bottle.
"It was a decision that I wasn't directly involved in," he told reporters on Monday.
But the Labor opposition says the revelations raise serious questions about the process to give Mr McKenna's Midfield Meats the taxpayer-funded grant.
Opposition Leader Daniel Andrews said the revelations came after Dr Napthine tried to do a favour for bookmaker Robbie Waterhouse by supporting his bid to operate from a prime position at the Warrnambool racing carnival betting ring, which had been denied by Racing Victoria.
In March the premier announced a $1.5 million grant from the Regional Growth Fund to help Mr McKenna's business expand, creating more than 200 jobs.
Dr Napthine said the decision was endorsed by the Warrnambool council, Regional Development Victoria and signed off by the state development minister.
Dr Napthine confirmed he is one of 10 part-owners of Spin the Bottle but says he was unaware who the others were when he first bought the share.
He said his interest in the racehorse was properly declared on the pecuniary interests register for MPs.
Labor had approved similar grants for the company during 2008 and 2009, he added.
But Mr Andrews says the premier failed to publicly disclose he owned a racehorse with Mr McKenna, who he says is Dr Napthine's friend and a Liberal Party fundraiser.
He said the matter should be investigated by the Independent Broad-based Anti-corruption Commission to see whether the grant process was of the highest standards.
"The premier may say he had no involvement in the granting of $1.5 million of Victorian taxpayers' money to his close friend, to his partner in a racehorse, to his fundraiser, but that's not good enough," he said.
"We need a proper process that's independent, fearless and gets to the bottom of this."
A government spokesman said Dr Napthine and Mr McKenna were not "mates" as has been reported in the media.
He said the two had crossed paths at a number of official functions, as would be expected considering Dr Napthine was the long standing local member and Mr McKenna was one of the region's largest employers.
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