'I got it wrong': Premier Mike Baird with Deputy Premier Troy Grant at the press conference on Tuesday. Credit:Wolter Peeters Instead, he has asked former Labor Premier Morris Iemma to chair a reform panel to report back to the government, with legislation anticipated early next year. The RSPCA, industry and government have been invited to join the panel. Mr Baird also struggled to adequately explain what prompted the back down, which came despite three months of him declaring the ban was "the right thing to do". Mr Baird and Deputy Premier Troy Grant cited feedback from the community and a briefing from the man appointed to advise the government on the transition to the industry closure, Dr John Keniry. Mr Grant acknowledged that Mr McHugh's report from his $4.2 million, 13-month-long special commission of inquiry said he had "no faith the industry could correct its collective failings".

Troy Grant addresses the media conference as the Premier looks on. Credit:Wolter Peeters But Mr Baird said Dr Keniry, during a face to face meeting in the past week, had said "there is now a deep appetite for change, for reform in the industry". He said Dr Keniry - appointed in July - had "made a plea as part of his report to us" that he strongly believes the industry is "desperate to change". Premier Mike Baird at Tuesday's media conference announcing the reversal. Credit:Wolter Peeters Dr Keniry's formal report had yet to be handed to the government but his view was formed "through extensive consultation".

Opposition Leader Luke Foley – who has been accused of political opportunism by Mr Baird for opposing the ban – said the Premier had performed "the mother of all backflips". "The Premier said that he was a man of principle, a man of conviction," he said. "Where are Mr Baird's principles today? I'm calling out a search party for them. Who's the man of principle now?" RSPCA NSW CEO Steve Coleman, who had appeared with Mr Baird just three months ago to announce the ban, said: "It's tremendously frustrating to have been so close to seeing a ban implemented only to have it pulled off the table." Mr Coleman said the RSPCA would decide within 24 hours whether to accept the invitation to join Mr Iemma's panel.

"As a regulator in the animal welfare space, we hold an obligation to be involved with future industry decisions," he said. "But given the government's recent backflip, we have to carefully consider our position." Cabinet revisited the decision to ban greyhound racing on Tuesday morning. The move followed a sustained media and industry campaign since it was announced in July - and amid disquiet within the Nationals and expectations of a large swing against the government at the November 12 byelection in Orange. The decision to ban the industry from July 1 next year followed the report of a special commission of inquiry headed by retired judge Michael McHugh. It found up to 68,000 greyhounds had been euthanised in the past 12 years because they were too slow or unable to race.

The inquiry was prompted by revelations aired by the ABC's Four Corners program about live baiting in the greyhound industry. The government has suggested the new regime will include mandatory life bans and increased jail terms for live baiting and registering greyhounds for their entire lives. There will be an independent regulator and more resources for enforcement and prosecution and animal welfare. Mr Baird said the industry and the new regime would be subject to a statutory review, the timing of which would be considered by Mr Iemma's panel. He said that review was free to recommend the industry be closed down.

Mr Baird stressed that his "personal convictions on animal cruelty have not changed at all". But asked what level of greyhound euthanasia Mr Baird would be comfortable with under a new regime, Mr Baird refused to speculate. "That's obviously something the panel will work through," he said. Mr Baird was also challenged on how the government would weed out industry members such as Sydney trainer and owner and Rebels bikie gang member Chad Achurch, who faced court on Tuesday on live baiting charges. Mr Achurch has pleaded not guilty to the charges. Loading "If you have ... the appropriate governance, the appropriate welfare protections and enforcement and penalties, you have every chance," he said.

The Greyhound Breeders and Trainers Association said it was very "appreciative and thankful" for the decision.