Australia's equine flu outbreak spreads

Sydney's premier racetrack was locked down yesterday after four horses displayed high temperatures, sparking fears an outbreak of equine flu may have spread to the multi-billion dollar racing industry.

Shares in Australian betting firms fell yesterday, with top wagering group Tabcorp Holdings Ltd saying it expected to lose about A$150 million ($124 million) in turnover after racing across the country was cancelled last weekend.

Australian Treasurer Peter Costello warned that Australia's first outbreak of equine flu would affect the national economy.

"When you take into account breeders, trainers, jockeys and race meetings, the outbreak will affect the economy," Costello told reporters.

"It is a terrible thing and our authorities are going to try and come to grips with it as quickly as they can."

The Australian government ordered a three-day ban on Friday on the movement of all horses, mules and donkeys while racing officials cancelled every major meeting in the country in a desperate attempt to prevent the spread of disease.

"Our ambition is to resume racing next Saturday," said Agriculture Minister Peter McGauran.

The racing shutdown will cost the industry tens of millions of dollars every day it is in place, said McGauran.

The highly contagious disease is not infectious to humans but has the same debilitating effect on horses as influenza has on people; causing high fevers, coughing, sneezing and lack of appetite. In rare cases, it can be fatal to horses.

Australia has some of the toughest quarantine rules in the world, but officials suspect the disease may have come from Japan, which has just been hit by a much larger outbreak.

Racing was cancelled in Japan last weekend for the first time in more than 35 years after almost 100 horses tested positive.

A total of 47 horses, all recreational horses mainly in NSW, have been diagnosed with equine flu since the outbreak was first detected last week. McGauran said the number could rise to 100.