As we all know, the horse flu outbreak is no joking matter, with more than 50,000 livelihoods affected across New South Wales, and losses in billions of dollars to racing and related industries.
The Federal Government is offering a $110 million compensation package, as well as state pledges for the industry, but key players says it's not enough.
So industry key players, PKF Chartered Accountants and Business Advisers, and Sydney law firm Clinch Neville Long Letherbarrow, are considering a class action lawsuit for compensation.
"Many businesses, individuals and their families will suffer major financial loss before a cause for the outbreak is established with many unable to recover at all. This is a prime reason for establishing a class action," says Matthew Hourn, partner at Clinch Neville Long Letherbarrow.
While the racing industry has welcomed the investigation into the cause of the outbreak, the financial losses are still the main concern.
"Equine influenza will cost the Australian economy billions of dollars and will be felt long after the outbreak is contained. Our economy relies heavily on the industry with the financial impact to be felt not only by the racing and breeding industry, but by transport companies, the hospitality industry, fashion and event promoters," says Jonathan Karlovsky, PKF Chartered Accountants partner, who believes the government is not offering sufficient compensation.
"If you consider at the Inglis Easter sale where over $148 million worth of bloodstock was sold, the Federal Government earned $14 million in GST alone from that one event, so the pittance being offered is ridiculous."
