A seven per cent cut in prize money is one of the measures announced by Horse Racing Ireland following a reduction in funding to the racing industry.
Minister for Finance Brian Lenihan dropped the Government's backing in the Horse and Greyhound Fund in 2009 by €6.6million in his Budget speech last month.
In response, HRI are introducing a range of cost-saving initiatives, a reduction in prize money of €4.2million to €56.5million, a freezing of grant aid to organisations they support, a pay freeze for staff and restrictions on racecourse capital development projects.
HRI's chief executive Brian Kavanagh said: "Irish racing and breeding has shown consistent growth in recent years.
"Today Ireland's breeding industry is the third largest in the world and Irish trained horses have won two thirds of the Group One Flat races run in Britain and Ireland this year.
"Central to this growth and success has been the long-term security of funding provided by the Horse and Greyhound Racing Fund."
The Irish horse racing and breeding industry employs over 16,500 people directly and indirectly and 1.5million people go racing in Ireland every year.
Kavanagh went on: "While cutbacks are regrettable, they are unavoidable in the current climate.
"An improvement in the economic environment and the continuation of secure, long-term funding are central to a return to growth in the industry.
"HRI is already working with Government to achieve this aim and in particular to ensure the resumption of the racecourse capital development programme as soon as possible."