NEWS that the Government is to replace the over 30-month rule with a BSE testing scheme was widely welcomed this week.

It will not only allow beef from older cattle to enter the UK food chain but should also re-open export markets.

The National Beef Association expects the decision will allow cows born after August 1, 1996, to be sold into the food chain from autumn next year.

The association welcomed the move as the first major step in allowing the UK beef industry to "cast aside the BSE chains which have bound it since March 1996".

The Government announced on Wednesday that it was to replace the OTM rule with a rigorous BSE test for cattle.

The number of clinical cases has fallen by 99pc from a peak of 37,000 in 1992. Of the 183,000 total confirmed cases since 1986, more than 95pc were detected before 2000.

The number of new clinical cases is at its lowest rate ever - only 73 this year up to November 15, the vast majority of which were in cattle born before August 1996.

The removal of specified risk material (SRM) - the main public health protection measure which is estimated to remove more than 99pc of infectivity in cattle - will continue to be rigorously enforced by the Meat Hygiene Service.

In addition, cattle born on or before August 1, 1996, will remain permanently excluded from the food chain.

The Food Standards Agency said the OTM rule was no longer proportionate to the risk and should be replaced by a robust and independently audited testing regime. Only cattle which record a negative result will be sold for human consumption.

Margaret Beckett, Secretary of State for Environment, Food and Rural Affairs, said the protection of public health remained the priority.

"It is encouraging that the BSE epidemic in cattle has declined to its current low level, but we must remain vigilant and ensure that strict controls remain in place," she said.

The Government will consult relevant bodies and the final switch-over will not happen until the FSA confirms the testing system is robust.

"We will also work in Brussels to ensure that beef from UK cattle born on or after August 1, 1996, can be exported as soon as possible after it becomes eligible for sale in the UK," said Mrs Beckett.

Health Secretary John Reid has agreed to the new testing system and Sir John Krebs, FSA chairman, was pleased ministers had now accepted the agency's advice.

The Government said changes to the OTM rule were unlikely to occur until the latter half of 2005 and there would be no changes in export restrictions until late 2005.

However, the National Beef Association hoped the first cow beef would reach the market next July, to avoid the autumn culling season when market pressure would be all the greater.

Andrew George, Liberal Democrat shadow agriculture secretary, welcomed the announcement but regretted the Department of Health had held up the process earlier this year.

The change should help to open European markets to British beef. "Countries like France, which have stood in the way of British exports, now have no justification to do so," he said.

The Government would have to ensure that lifting the ban did not flood the UK red meat market.

Douglas Chalmers, the Country Land and Business Association regional director North, said the announcement was positive news for both the producer and the consumer.

"It recognises the very high standards by which our beef is produced," he said. "Importantly it means that we will be able to reduce our dependence on food imports, and to satisfy the increasing demand for this type of beef."

It had to be the first step in removing the export ban.

Tim Bennett, NFU president, welcomed the decision and urged a speedy evaluation of the testing procedures and implementation of the necessary legislation.

Miss Anne McIntosh, Vale of York MP and shadow environment minister, said the rule had cost the taxpayer £360m a year and the cattle industry £100m a year.

"This is very good news for the beef industry in the Vale of York," she said, "It will provide an economic boost by generating a realistic price for producers."