IN THE SADDLE JENNY SHEPPARD 10/9/2007 THE State Government has refused to bow to pressure to provide financial relief to the crippled racing and breeding industry despite the Federal Government yesterday announcing $110 million for equine influenza rescue. The federal Agriculture Minister, Peter McGauran, unveiled the fund to help workers in the troubled industry. It includes $20 million for workers such as farriers and horse transport operators who have lost their jobs or their income because of the flu. Payments will be on a sliding scale from a daily rate of $60 a horse for Sydney thoroughbred trainers to $20 a horse for commercial non-racing horses in NSW, the ACT and Queensland. It will be administered by the relevant governing bodies in each state and territory. A further $200,000 will go to non-government, not-for-profit equestrian organisations. As of Sunday, 3502 horses on more than 330 NSW properties had tested positive for the flu, with another 4802 suspect horses on almost 600 properties, figures from the NSW Department of Primary Industries showed. Mr McGauran said the package was in addition to $4 million the Federal Government had already provided. "The assistance announced today will ease the immediate financial burden that workers, horse-dependent business owners and equestrian organisations are suffering as a result of the standstill measures still in place in the ACT, NSW and Queensland," he said. The NSW Government has maintained that it is contributing its fair share through its efforts to contain the flu. A spokesman for the Gaming Minister, Graham West, said the State Government welcomed the response from the Federal Government but NSW was spending more than $1 million a week on biocontainment. Sydney trainers, including those at Randwick, which has been isolated since evidence of the flu was found there on August 30, welcomed the federal funding. Warwick Farm and Rosehill racecourses have remained free of the flu but a trainer, Chris Waller, said he held little hope that would remain the case. Thoroughbred racing returned to Sydney on Saturday with a "phantom" 10-race meeting at Warwick Farm and a betting auditorium at Canterbury Park for punters. Only Warwick Farm-trained horses were allowed to compete. The Federal Government might still face a compensation claim over the horse Equine Influenza outbreak that has devastated the Australian racing and equestrian industry, despite the announcement this week of a $110 million assistance package for those affected by the outbreak. Racing and equestrian leaders welcomed the assistance, saying it would help thousands of people whose livelihoods were affected by equine influenza which has caused a standstill on horse movement throughout the ACT, NSW and Queensland and cost the industry millions of dollars. Canberra Racing chief executive Peter Stubbs said the aid would help many of the people the industry and encourages industry members to apply for assistance. Australia’s Equestrian Federation is advising its members to follow suit. Both industries saying that no one could predict how long the crisis would last, and further income support might be needed later. If this disaster lasts longer than the predicted three months, the Government will have to supply ongoing support. A compensation claim against the Government is highly probable if the inquiry into the first outbreak of the disease in Australia finds it emanated from Sydney's Eastern Creek quarantine centre. Certainly preliminary investigations seem to point in this direction. Racing NSW chief executive Peter V'Landys has been the powerbroker in the fight for financial assistance since the crisis began on August 25 and said it was imperative help was available now to keep people in the industry when it gets back on its feet. "We are very appreciative of the gesture by the Federal Government," Mr V'Landys said. "They have shown compassion, they have also shown economic intelligence. We support 160,000 participants and there is $11.7billion wagered, so not only have they been compassionate, they are protecting their investment in a very, very important industry for the Australian economy. "At the end of the day, we have reserved our right to seek compensation if it is proved the disease emanated from Eastern Creek." The first case of influenza in Australia was detected in a stallion at the Federal Government's Eastern Creek quarantine station. This stallion is one of a consignment of some of the world's most valuable thoroughbred sires on stallion duties during the northern hemisphere breeding season, known as the shuttle stallions. Eastern Creeks centre remains locked down and the prospect of stallions serving mares this season is remote. The package includes a wage supplement payment for workers involved in horse dependent industries who have lost their jobs or most of their income. It will be the equivalent of the Newstart Allowance but applicants will not have to undergo assets or activity tests. Equestrian’s Olympic disciplines are going to be amongst the hardest hit with this week the Adelaide Royal Show going ahead with no horse events, the Melbourne Royal Show has announced it will run with no horse events, September’s Sydney Three Day Event and the Adelaide four star three day event scheduled for November have both been cancelled, the three Jumping World Cup qualifying events to be held in South Australia this month have been cancelled, the NSW State Jumping Titles have been cancelled. The International Dressage to be held in Sydney for Australia to qualify a dressage team for next year’s Olympics has been cancelled. All of these events are important qualifying events towards selection in the 2008 Equestrian Olympic Teams.