"Funding decisions should be open and rigorous. Instead, the process is opaque and murky so it's hard to disentangle the arguments. In this case, they're not even making an argument, they're just saying we're going to do it."
Nigel Bickle, head of the Provincial Development Unit, said the PGF had robust processes to assess the quality of all applications.
"The terms of reference for the Independent Advisory Panel clearly state that the panel will not give advice on manifesto commitments. However, projects that are to be funded through the $30 million contingency will still need to go through the PGF application process, before going back to ministers for consideration," Bickle said in a statement.
NZ Thoroughbred Racing chief executive Bernard Saundry told RNZ it was "fantastic that New Zealand First, through our Racing Minister Winston Peters, will be delivering on a promise he made before the election".
Saundry said 50,000 jobs were supported by the industry, which was worth $1.6 billion to the economy.
The industry was hoping for three new all-weather tracks, which cost about $10 million each.
"We're not expecting all the money. If we get a 50-50 deal with the Government, it shows we've both got aligned interests," Saundry said.
Jones told the Herald he and Peters would sit down once a report into the racing industry was released next week, but officials would ensure the process was robust.
John Messara's Report on the New Zealand Racing Industry will be released on August 30.
"The independent appraisal committee, chaired by Roger Finlay, might take a peek at it but this is something that has its roots in the coalition deliberations. I'm conscious that the chair, Mr Finlay, is associated with the racing industry. All potential conflicts of interest will be observed in the process of the board," Jones said.
Jones said the three projects were the only ones to come out of coalition negotiations and there would be no more.
"It's a smallish figure over the broad spread of projects and in no way does it represent a fatal blow to the robustness of the overarching kaupapa."