THE Federal Government has ordered a 72-hour Australia-wide ban on all thoroughbred and harness racing following an outbreak of equine influenza (EI).

Other horse and pony owners have also been urged not to leave their properties with their animals.

Sixteen horses at two Sydney locations have initially tested positive for EI virus and another six are showing symptoms. NSW racing officials are working with the state Government to try to identify the source of the EI.

Race meetings were cancelled in New South Wales this morning. Racing authorities in the other mainland states followed suit soon after and all horse movement was banned.

Spring racing carnivals in Melbourne and Sydney, including the Melbourne Cup may be cancelled if the equine influenza (EI) outbreak is not contained.

"There will be a 72-hour ban on all race meetings for both thoroughbreds and harness," Federal Agriculture Minister Peter McGauran said.

"In addition there will be an order for standstill for all horses under licensed persons, also an appeal to all those with ponies or recreational horses or work horses not to leave their properties.

"There will also be an instruction to trainers not to shift beyond the front gate of their training centre."

Outbreak

Eleven of the infected horses are in lock down at Centennial Park in Sydney's eastern suburbs and another five are at a quarantine facility at Eastern Creek, in Sydney's west. The horses in question are not racehorses, but some are believed to have travelled to country shows in the past few days.

A 10km exclusion zone is in place around the Centennial Park stables, taking in nearby Randwick Racecourse where some 700 thoroughbreds are trained.

The first case of EI in Australia was detected in a stallion at the Eastern Creek quarantine station on Thursday.

The horse had travelled from the northern hemisphere and the positive test means some 80 horses will be detained at Eastern Creek and Melbourne's Spotswood quarantine stations for at least 30 days.

NSW Primary Industries minister Ian MacDonald said he hoped the precautionary measures taken by the government would minimise the potential for the disease to spread.

"The horses are not racehorses but as a precaution all horses are at a standstill while we check a number of leads and where the horses had travelled in recent days," MacDonald said.

EI is not infectious to humans but can be carried on clothing and the government also will monitor the movement of vets and staff to and from Eastern Creek.

Melbourne Cup threat

Mr McGauran could not rule out implications for this years' Melbourne Cup and Sydney’s spring racing carnival.

"All horse racing and the thoroughbred and horse industry across Australia, in all of its sectors and components, could be affected in the worst case scenario," Mr McGauran said. "But we won't allow ourselves to even consider the worst case scenario because we are working to contain it otherwise the worst case scenario will eventuate."

Mr Macdonald estimated that 5000 thoroughbreds are currently in training around NSW and 40,000 more are also at risk of the disease.

Following the closure of Royal Randwick racecourse today and all other racing facilities across the state he estimated the loss will be in the tens of millions of dollars.

"You close down that industry its going to be in the millions of dollars each week for sure," Mr Macdonald said.

Mr Macdonald said it was highly likely the current restrictions would last at least two weeks and the effect would be substantial as the racing industry approached its high season.

"There's no doubt it's a disaster for the horse industry at this point in time," Mr Macdonald said. "It comes on the cusp on their spring carnival ... it's a great blow to them."

Among the race meetings lost today were the Warwick Stakes program from Randwick in Sydney, Moonee Valley in Melbourne and Cheltenham in Adelaide.

The cost of the cancellations is expected to run into the tens of millions of dollars.

News Limited