He said the "sensible" move restored certainty to the industry, which had been fighting for its survival, facing animal welfare advocates including the RSPCA.

"I've kept people on over the past couple years that I probably couldn't afford to but now there is a bit of confidence owners will go and buy more horses," Musgrove said.

He said the safety record was improved by imported French brush-top jumps introduced at the start of the season.

In its announcement last Thursday, Racing Victoria stated a review of the 2010 season showed a decrease in deaths and a "substantial improvement in safety and performance".

But animal welfare activists said the board's own figures showed two of the three key performance indicators, those relating to falls and the number of starters in a race, were not met and the sport should be banned.

Greens upper house MP Sue Pennicuik said the decision was a disgrace and she would continue to pursue a ban on jumps if the Greens held the balance of power in State Parliament after November.

"The only acceptable and credible outcome is to end jumps racing in Victoria as of now and forever," Ms Pennicuik said of the review.

Coalition for the Protection of Racehorses spokesman Ward Young said racing was the only sport that "allows the killing of its competitors".

"Racing Victoria has gone back on its word before, and has now done it again," Mr Young said.