FORMER High Court judge Ian Callinan expects to uncover the source of an equine influenza (EI) outbreak but is unlikely to make any recommendations on

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FORMER High Court judge Ian Callinan expects to uncover the source of an equine influenza (EI) outbreak but is unlikely to make any recommendations on compensation for the multi-billion dollar racing industry.

Mr Callinan met with federal Agriculture Minister Peter McGauran in Canberra today to settle the terms of reference for an inquiry the Government has ordered into the outbreak.

The recently-retired judge, a former chair of the Queensland TAB, said he would make recommendations to help prevent another EI outbreak and expected to find out how the disease entered Australia last month.

"I would hope so," he said, adding that most cases of litigation he dealt with as a judge were concerned with investigating and determining the cause of a problem.

The Australian Racing Board (ARB) says families affected by the ban on horse movements should be entitled to compensation if the inquiry finds a fault in the quarantine process.

The inquiry comes as Prime Minister John Howard admitted the ARB some years ago had raised with the Government its concerns that changes to quarantine laws could allow diseases such as EI to enter the country.

The disease was discovered in a stallion at Sydney's Eastern Creek quarantine centre on August 23 and spread through Queensland and New South Wales, forcing the cancellation of the Sydney spring racing carnival.

It was revealed today that the ARB had written in 2004 and 2005 to then federal agriculture minister Warren Truss outlining its opposition to quarantine changes, in particular the use of private veterinarians to inspect horses coming into the country.

Mr Howard today denied the Government had ignored advice that quarantine guidelines were not strict enough, saying the Government was satisfied with the changes.

"We considered that view (of the ARB) and decided that view was not properly based," Mr Howard said.

Labor leader Kevin Rudd said it was suspicious that the Callinan inquiry was announced just as the ARB's letters were made public.

He said the Government should have addressed the issues raised sooner.

But Mr McGauran said the issues had been addressed at the time. He also said he found it "quite curious" the ARB had raised them again now after being silent for two years.