The Fairyhouse authorities report the Department of Agriculture have assured them there is no danger of a foot-and-mouth outbreak in a farm just two miles form the racecourse, but the disease crisis has already cost the racecourse valuable festival sponsorship.

The Fairyhouse manager, Dick Sheil, is anxiously awaiting advice from both the Irish Horseracing Authority and the Department of Agriculture as to whether or not the four-day Easter festival can go ahead as hoped on April 15th-18th.

Currently the festival's main sponsors, Irish Distillers, who back the Powers Gold Label Irish Grand National, are still backing the event but other sponsors have dropped out.

Sheil confirmed yesterday: "Some sponsors have pulled out, saying they don't want to be involved. Irish Distillers have been very generous in their support, but I would hope to get some indication of whether we can proceed at Easter or not in the next day or two."

Sheep were slaughtered on four farms in Co Meath over the weekend, including a farm at Caulstown, which is less than two miles from Fairyhouse. Sheil reported: "The Department have assured me there is no outbreak and it was purely a precautionary measure. I was talking to the Disease Control Centre in the Department and they said sheep transferred there from a farm in Longwood may have had some contact with that farm in Co Armagh."

The chances of transferring the Irish Grand National to another date in early May have not been dismissed by the Fairyhouse authorities but neither has the Easter date been ruled out completely.

"The Minister, Joe Walsh, has referred the matter to his Expert Committee and we are taking a certain solace from the fact he hasn't said no. But if there is an appetite among all sectors to move to another date we would be happy to facilitate them," Sheil said.

The uncertainty surrounding Fairyhouse was just part of the general anxiety within racing over the weekend about the possibility of restarting the sport on the April 14th.

Yesterday the Minister for Agriculture Joe Walsh said: "Our very first priority is that this disease doesn't spread to the rest of the country."

A spokesman for the Department of Agriculture has already emphasised what he called "the rule of thumb" relating to a relaxation of restrictions only 30 days after the last confirmed outbreak.

The IHA have stated they will talk with Department officials as soon as possible but already speculation is turning to the possible impact of the crisis on the flat season, which was due to start in Ireland yesterday, if foot-and-mouth spreads in this country.

An IHA spokesperson ruled out a meeting with Department officials today but said: "The plan is to meet at some stage this week to work out the protocols about what would have to be in place for a resumption of racing."