There could be tax breaks on the way for the racing industry.

The Labour Party agreed to work more constructively with the industry as part of its coalition agreement with New Zealand First.

Prime Minister Jacinda Ardern said it could include tax incentives such as write-downs for bloodstock.

said the racing industry has rising costs and diminishing returns so Peters is looking at tax breaks, especially when it comes to bloodstock.

"In areas where relative to other international industries if there becomes disincentives to invest in your domestic industry and more incentive to invest overseas then you've got to look at your competitiveness."

Ardern said that's been done for forestry and the film industry.

And Winston Peters is also promising the racing industry an all-weather racetrack.

The Racing Minister made the announcement last night at his speech to launch the Karaka yearling sales.

Ardern said this will also will be part of a Budget bid.

"Because of course if rain or weather causes a cancellation there is significant cost to the industry."