The majority of NSW and Queensland trainers have given up all hope of participating in this year's Melbourne spring carnival with only a handful paying up for the feature races.

First declarations for the Melbourne Cup, Caulfield Cup and Cox Plate were taken and more than 130 horses had dropped out of contention for Australia's most famous race as the full impact of the equine influenza (EI) crisis began to hit home.

Master trainer Bart Cummings' Melbourne Cup stocks diminished as quickly as EI spread with his leading hope for a 12th Cup, Empires Choice, stranded at EI-ravaged Randwick and out of the race.

Queensland Derby placegetter Sirmione and Our Flying Beauty are his only two remaining Cup hopes with both arriving in the southern capital before the movement ban on horses was enforced.

Only four NSW-trained horses not already in Victoria - Leica Falcon, Rena's Lady, Respect and Phantom Agent - remain in the Melbourne Cup mix with only one, Lachlan River, from Queensland.

"I know he probably won't get to the Melbourne Cup but I'd never forgive myself if the ban was lifted and he wasn't nominated," said Lachlan River's trainer John Morrisey.

His peers are likewise hoping for a miracle.

Racing NSW officials are only now working towards expanding race meetings in the state to include not just horses trained in-house but those from other tracks which are free of EI.

Racing NSW chief executive Peter V'Landys said they were hoping to make that happen at Rosehill on September 22 when the gates may also reopen to punters.

No spectators were allowed at the restricted Warwick Farm meeting last Saturday and none will be permitted at Newcastle this Saturday.

"We're applying for Warwick Farm horses to be transported to the Rosehill track and possibly (horses) from other areas like Kembla and Wyong," Mr V'Landys said.

"We're doing risk assessments and then we will make a formal application to the DPI (Department of Primary Industries).

"After that we might be able to look at other areas in NSW where there have been no outbreaks."

Racing NSW has also given the green light to holding barrier trials at Warwick Farm this Friday, along with Rosehill and Newcastle next week, but Mr V'Landys stressed they were also subject to DPI approval.

Harness racing was on Tuesday cleared to resume in NSW for the first time since the EI outbreak with a restricted meeting set down for Bankstown on Friday night.

In Queensland, the DPI advised a possible partial lifting of the ban on horse movement could be a reality within two weeks although the standstill currently remains.

It came as the Victorian opposition slammed their state government's security at river crossings between the NSW and Victorian borders saying a Liberal Party delegation on Monday found the crossings at Tocumwal and Barooga unmanned.

Mr V'Landys also stepped up his pressure on the NSW government to provide financial aid to the industry, calling for a 12-month moratorium on part of its 4.5 per cent gaming tax.

"We are not asking for a handout, all we are asking for is don't tax us as much as you are at the moment and provide some of that tax to get us going again, and protect your investment," he said.

"I don't believe the leaders in the state government are that economically dumb to turn their back on the third or fourth biggest industry in the state."

The NSW government collects $150 million per year from the 4.5 cents it takes from the industry for every dollar bet.

Independent researchers estimate the NSW breeding industry stands to lose $823 million if mares cannot be served this spring.

Thoroughbred Breeders' Australia (TBA) president John Messara has called for special restricted zone in the Hunter Valley breeding nursery to allow mares to be moved so they can be covered by stallions, allowing the 2007 breeding season to be salvaged.

That too rests in the hands of the DPI.

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