Greyhound racers are defending the industry in the wake of allegations a New Zealand trainer has been live-baiting.

The SPCA says an investigation is underway after images appeared to show dog trainer Brendon Cole stringing up a live animal on the race track - a practice outlawed in New Zealand.

Phil Holden, the chief executive of Greyhound Racing New Zealand told Mike Hosking he admits it's not a good look for the industry's reputation.

"A vast majority of our people in our industry would be bitterly disappointed in what they've seen on television last night. But they are all aware that the investigation has been ongoing."

Widespread live-baiting in Australia nearly toppled the country's greyhound racing business three years ago.

However, Holden is adamant it's an isolated incident.

"The reality is, there's no prevalence of this type of behaviour in New Zealand, and our position in relation to it is really clear. We have a zero tolerance [policy], our rules are clear that anyone caught acting inappropriately with [regards to] animal welfare will be dealt with appropriately."

However, activists are claiming there is a industry cover-ups.

A spokesperson for the Greyhound Protection League, Emily Robertson, believes live-baiting is more widespread here than we know.

"The reaction that we had to the Australian scandal would be making everything a bit hush-hush here. We do not believe in any event that this is an isolated incident."

LISTEN TO PHIL HOLDEN TALK TO MIKE HOSKING ABOVE