Speaking to The Standard on day two of the carnival Dr Napthine said the annual three day event was going from "strength-to-strength" and the prize money needed to reflect its success to draw more horses and trainers.

"It is incredibly successful in terms of participation, enthusiasm and worldwide coverage," he said.

"We now need Racing Victoria to step up and raise the prize pool."

Dr Napthine said all ordinary races needed to increase from $35,000 to $60,000.

"We also need about three or four races each day at $100,000-plus," he said.

"The features should also increase to $300,000 or $400,000."

Dr Napthine said the time was ripe to plump up the prize purses.

"If Racing Victoria want to get behind a success story they need to increase prize money across the board," he said.

"$35,000 is a normal prize amount at an every-day country event.

"For a carnival like this the starting prize money should be $60,000.

"Racing Victoria has the money. This carnival delivers in terms of money, so they need to step up their game."

Dr Napthine said the carnival boosted Warrnambool's economy to the tune of $13 million each year.

"This is a fantastic event," he said.

"It's also good for the local economy and the local community. It not only puts Warrnambool on the map across Australia, but across the world."

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