On Monday it was revealed that the ACT Greens had opted not to support the territory government's five-year memorandum of understanding (MOU) with Thoroughbred Park which is in the process of being renewed for the next five years.

The agreement would see the ACT government provide a minimum of $7.5 million in funding every year for the period of the MOU.

ACT Greens spokeswoman for animal welfare Jo Clay pushed for the funding to instead be used to address "major social and environmental problems" in Canberra such as housing affordability, homelessness, and climate change, and was critical of the lack of public procurement process.

"It is disappointing that the ACT Greens have an alternate view in not supporting the current MOU continuing given that we are a major contributor to the ACT in terms of employment and economic activity and that the ACT government receives significant revenue from the racing industry," Thoroughbred Park's acting chief executive Matt Kolek told The Canberra Times.

"The ACT racing industry is a progressive industry leader in the area of equine welfare, and we generally have a good working relationship with the ACT Greens and do in fact align in many areas in the equine welfare space.

"The ACT Labor party made a commitment to continue the MOU for five years in the lead up to the last ACT election and we welcome the fact that they are following through on that commitment. We note that the ACT Liberal party also made similar commitments.

"We will look to work constructively with all parties across the political spectrum over the coming years to ensure the continued viability of the industry in the ACT."

Mr Kolek said the negotiations with the government to finalise the MOU are ongoing but they expect them "to conclude in the coming days".

"It will be similar to the last agreement, and we have been working with government on a range of KPIs to maximise the benefit of the agreement to both the industry and the government," he said.

Mr Kolek said if Thoroughbred Park was to lose all - or a portion of - the proposed funding, the impact would be devastating to the region.

"The industry would no longer be viable in the ACT," he said.

"This in turn would have a range of negative impacts across the ACT more generally, including the loss of over 400 full time equivalent jobs across the territory, the loss of $55 million in gross territory product to the ACT economy, and with this, the potential impact on all the businesses that provide ancillary and equine welfare services to the industry in the ACT which without a racing industry may not be viable.

"The racing industry in the ACT already receives the lowest per capita funding of every jurisdiction in Australia. ACT racing only receives a fraction of the per capita funding received by other racing jurisdictions across the country.

"We are also the only jurisdiction where revenue generated by a Point of Consumption Tax is not shared with the local racing industry."

Mr Kolek explained that the proposed government funding would go towards maintenance of its infrastructure, supporting animal welfare initiatives, stewarding, revenue diversification strategies, and ensuring its venues and facilities are utilised by the whole ACT community.

Since 2013 the ACT government has had the MOU with Thoroughbred Park in Lyneham.

The chief executive argued that the racing industry is misunderstood.

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"We are a highly regulated industry, both from within the industry itself, and by government," he said, before calling for a portion of the Point of Consumption Tax.

"It is often not understood that the ACT Government levies a Point of Consumption Tax on wagering turnover in the ACT. The bulk of this revenue is generated from wagering on the racing industry," Mr Kolek said.

"According to the budget estimates, the Point of Consumption Tax will provide the ACT with between $17 million and $20 million per year over the next three years. During the five years of the MOU that is in the vicinity of $90 to $100 million in revenue to the ACT [government].

"The industry has for many years been in discussions with the ACT government about being allowed a share of [those] funds generated by the country's horse racing industry."

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