KEY POINTS:
The NSW racing industry stands to lose "tens of millions of dollars" and its breeding activities disrupted as the equine influenza (EI) virus scare spreads.
NSW Primary Industries Minister Ian Macdonald has confirmed that 16 horses have initially tested positive for equine influenza (EI) at two Sydney locations
and another six were showing signs of the virus.
Eleven of the infected horses were in lock down at Centennial Park, in Sydney's east, and the other five at a quarantine facility at Eastern Creek, in the city's west.
At least six horses that have been to those facilities in recent days have travelled to stables in regional Nowra, Parkes and Maitland.
Two of the horses at Parkes were showing signs of EI but tests have yet to confirm their infection.
Testing was also being carried out at the Nowra and Maitland sites.
"We do know that a number of horses that have left Centennial Park and travelled to other parts interstate are suffering flu-like systems," Mr Macdonald said.
"It's a very serious situation."
The exclusion zones around the two Sydney facilities have today been doubled to 10km to protect the industry's livelihood.
"The problem with this disease is that around 40 per cent of foals die if they come into contact with it," Mr Macdonald said.
"It will mean disruption of breeding activities in the thoroughbred industry as well as providing a lot of difficulty for the industry to manage."
The minister said police would issue severe penalties to people caught transporting horses following a statewide equine "standstill" issued early this morning by the government.
It was the first time that Australia had an outbreak of EI, Mr Macdonald said.
The Department of Primary Industries (DPI) chief veterinary officer Dr Bruce Christie has further heightened concerns by telling media today that people who have come into contact with the horses were not at risk of infection but could spread the disease.
"In a lot of cases these people have gone into multiple places," Dr Christie said.
"It's a massive problem for the horse industry."
Following the closure of Sydney's Royal Randwick racecourse this morning and all other racing facilities across the state, Mr Macdonald estimated that the shutdown would last at least two weeks and cost "tens of millions of dollars".
"You close down that industry, it's going to be in the millions of dollars each week for sure," Mr Macdonald said.
"There's no doubt that it's a disaster for the horse industry at this point in time.
"It comes on the cusp on their spring carnival and it's a great blow to them."
Also under threat were horses under the command of the NSW Police Force, stabled near Centennial Park.
It was not known whether mounted police will be available to fend off expected large-scale protests at next month's APEC summit in Sydney.
Specific permits to release the horses for duty may be issued if there was no risk of spreading EI, Mr Macdonald said.
"The aim would be to see that that will be optional through APEC but it will be subject to the same sort of restrictions and discussions that we have to go through in relation to this outbreak across the state," he said.
More than 200 DPI staff have been directed to horse facilities across NSW to issue tests for the infection.
Mr Macdonald estimated that 5000 thoroughbreds were in training around NSW and another 40,000 throughout Australia were at risk of the disease.
- AAP