THE region's farming leaders last night welcomed a decision to ease restrictions on the movement of animals imposed because of the foot-and-mouth outbreak.

The Government's chief veterinary officer, Debby Reynolds, announced that from midnight yesterday, the movement of animals directly from farms to slaughterhouses, and the collection of dead animals, would be permitted under licence outside the affected area.

The ban on all other movements, such as sending animals to market, remains in force.

The move came despite livestock on a third Surrey farm adjacent to one of the previously-infected premises being culled on suspicion of foot-and-mouth. Cows, sheep, pigs and goats were destroyed.

Dr Reynolds also confirmed that the strain of virus found on the second farm was the same as that discovered on the first.

Experts said on Tuesday that there was a strong probability that the source of the outbreak was the nearby Pirbright laboratory site.

Dr Reynolds said it was still very early to say if the outbreak was under control. "We have got two infected premises and a new premises that has been culled on suspicion," she said. "The risk of spread outside is low but not negligible."

The decision to relax restrictions was based on her own risk assessment, not out of financial concerns, she said.

Farmers can now make arrangements with their abattoir or livestock mart, which will operate a booking system with slaughterhouses, to help clear the backlog of cattle, sheep and pigs.

Peter Kendall, president of the National Farmers' Union (NFU), said it was a "measured and very necessary first step" towards getting the industry back to normal. But he said: "It is as vital as ever that livestock farmers remain vigilant, check their stock regularly and report anything suspicious immediately."

Richard Ellison, regional director for the North-East NFU, said the move would ease pressure on the livestock industry.

Farmers had seen their income dry up, costs increase and, in many instances, available space squeezed to bursting point - particularly on pig units where there is a faster turnover of animals, he said.

The NFU would now try to resolve animal welfare issues.

Mr Ellison said: "We have already been lobbying the government on the need for further movement licences to be made available, for example for cows about to calve and animals stranded in fields with a shortage of fodder."

The North-East director of the Country Land and Business Association, Angus Collingwood-Cameron, said: "Now the cash can start flowing again there is no excuse for buyers to reduce prices and for supermarkets to import meat."

Kim Haywood, director of the Hexham-based National Beef Association, also called on buyers not to exploit farmers. She said: "Beef stocks at both retail and processing level have run down as a result of slaughter suspension, and the current export ban should not impact on prices because less than three per cent of prime beef production is sold overseas."