Four thousand jobs in the lucrative thoroughbred industry could be lost if the Government backs calls for funding to be slashed, experts have warned.

A report by the Irish Thoroughbred Breeders' Association claimed its business poured one billion euro into the economy last year.

And it found the 1% betting tax paid 37 million euro back into government coffers after courses and festivals received grants worth 61 million euro.

Leading trainer John Oxx, who has potentially the world's most valuable stallion, Sea the Stars, in his Curragh stables, warned of the dangers of budget cuts.

"Ireland needs to support all of our indigenous industries and the thoroughbred industry is one which brings significant overseas income to Ireland," Mr Oxx said. "Ireland is a world leader in the equine industry and any move to cut funding to this industry would have a negative effect on all involved including trainers, jockeys, apprentices, stable staff and administrative staff - the majority of whom are based in rural areas where alternative employment is difficult."

The report, compiled by former Fine Gael Finance Minister Alan Dukes, said 22,000 people were working in the industry last year and huge numbers would find it hard to find work in another sector if funds were cut.

Mr Dukes said the volume of bloodstock sales has dropped by about approximately 65% in the last two years.

The report said funding was small compared to our nearest neighbours. Britain pays 110 million euro through the betting levy while France pays in 736 million euro through the state-run betting system.

The report stated: "Any further reduction in support would have a magnified effect on prize money and other industry services and on the attraction of Ireland as a vital centre for the industry.

"Any measures that further reduced this attraction would be short-sighted in the extreme and would entail a grave risk of displacing breeding and training activity from Ireland to France and the UK. This would seriously endanger the primacy which Ireland has built on the foundation of generations of dedication and experience, with a negative effect on rural development."