Hi roosters and welcome,

Is cutting back because of money you have lost within the industry or because of your outside industry income you can't justify injecting more funds in to the industry? Perhaps a combination.

There is few Kiwis in the grand scheme of things anyway. Just 600 per year. Most, a very large majority in my experience, are bought by Aust owners. The ones that are Kiwi owned and race over here (I can barely think of an example) won't have the import fee apply as they aren't actually imports so this won't help you there.

Yes it is valuable, you are correct. It is valuable for breeders. Of course you are going to like it, there are no two ways about that. But it doesn't have everybody's interests at heart and is unfair in nature. People independent of the situation know its ridiculous.
Mightymo put the figure at 6000 yearlings a year, someone else put the figure at 600 imports a year. Forgetting that a large portion of the imports race in either WA or Vic the average field has 1 import in it. The average races won by import, (if racing was 100% even and lucky and no horse was better or worse than any other horse) would be 1 in 11. You can't blame imports for taking prize-money away from you with small figures like that. I don't think even mightymo or anyone else on your side of the ledger has blamed imports for taking your prizemoney.
If they can credits, properly sourced, then great. If not, don't wreck other things.