Chris Steel told a Legislative Assembly inquiry on Tuesday the government was continuing to negotiate the memorandums of understanding with the ACT's racing clubs.

"I think it's fair to say that we are committed to talking to the racing industry about what they're going to deliver in terms of the racing to the community and other supports around animal welfare around memorandum of understanding going forward, and those conversations have been very fruitful thus far," Mr Steel said.

The opposition spokesman on gaming and racing, Mark Parton, had asked Mr Steel whether the government had considered banning thoroughbred or harness racing at a cabinet level, given public support for the move from Greens Attorney-General Shane Rattenbury.

Mr Steel said he would not discuss confidential cabinet discussions but "of course" there had been consideration of the issue.

"We're continuing the process at the moment of negotiating the next memorandum of understanding with the racing clubs at the present time. We're looking forward to those negotiations coming to a conclusion later on in the year," he said.

Mr Steel also brushed off questions from Mr Parton about whether a horse racing ban would be used as a "bargaining chip" in future discussions with the Greens about forming coalition governments in the ACT, saying the agreement for the current term had already been struck.

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"This is wild speculation about something that we are certainly not committed to do. This is just absolute rubbish, Mark, coming out of your mouth," he said.

Mr Steel said work was also underway to update animal welfare codes of practice for the racing industry in line with animal sentience laws passed by the Legislative Assembly in September 2019.

Mr Rattenbury used a Facebook post on Melbourne Cup Day 2021 to say the Greens wanted to abolish the cruel and inhuman use of animals for sport, recreation and entertainment.

"The ban on greyhound racing in the ACT was a big win for animal welfare, and the Greens are committed to maintaining this ban in the ACT," Mr Rattenbury's post said.

"There are legitimate questions over animal welfare in the horse racing industry and the Greens will advocate for a review into animal welfare impacts of horse racing in the ACT, including a national royal commission into cruelty and abuse in horse racing.

"Sport that exists purely for betting purposes doesn't need to involve raising and discarding these magnificent animals."

Mr Rattenbury called for a ban on ACT-based greyhound racing in February 2016, following a 2015 Four Corners program that exposed the serious mistreatment of animals in the greyhound industry.

Chief Minister Andrew Barr in July 2016 announced the ACT government would ban the sport, then in line with a decision of the NSW government that was prompted by the findings of an 800-page special commission report.

The ACT in 2017 became the first Australian jurisdiction to ban the sport, despite significant public pressure and a legal challenge from the industry.

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