Inquiry launched into NSW greyhound racing

A major investigation into NSW's greyhound racing industry has been launched by the Baird government amid the ongoing live baiting scandal.

Racing Minister Troy Grant said the special commission of inquiry, which will have the same powers as a royal commission, would investigate animal welfare and integrity issues.

"Today's announcement underscores (the government's) commitment to rid the industry of live baiting and ensure animal welfare and integrity are at the heart of the greyhound racing industry," he said in a statement.

The commission will be led by former High Court judge Michael McHugh who will work with the state's police, the RSPCA and the greyhound industry.

TV footage aired on ABC's Four Corners in February showed trainers tying live piglets, rabbits and possums to mechanical lures before they were mauled by the dogs.

The shocking revelations rocked the industry with Mr Grant vowing to uncover how the "horrifying" practice had occurred.

It led to the suspension of a number of trainers and forced Greyhound Racing NSW's board to step down.

The special commission of inquiry will report back by September.

"The inquiry will review the management and governance of Greyhound Racing NSW including the circumstances that contributed to serious failures in industry supervision," interim Greyhound Racing NSW CEO Paul Newson said.

NSW Greens MP John Kaye welcomed the inquiry but called for the suspension of all races until findings are handed down in September.

"Until then, the incentive for live baiting remains in place," he said.

He also called on NSW Labor to drop its proposal to hand the racing industry a tax cut if elected on March 28.