LAST year's foot and mouth outbreak cost the nation's economy more than £8 billion, according to the National Audit Office (NAO).

The bill to the taxpayer came to more than £3 billion; the cost to the private sector, mostly tourism, was more than £5 billion.

The NAO report said little prior consideration had been given to the impact on non-farming businesses of a large-scale epidemic, and the blanket closure of footpaths had a very severe effect on the rural tourism industry.

The NAO said urgent action was needed to produce better contingency plans. And research was needed into effective measures for tackling foot and mouth, including vaccination, and also into the efficacy of biosecurity measures, including the need for footpath closures.

The NFU agreed proper research was needed into the effectiveness of vaccination for dealing with any future outbreak, and felt better contingency planning was needed to deal with such a major outbreak.

Yorkshire Tourist Board Chief Executive David Andrews said: "The admission that little prior consideration was given to the impact on non-farming businesses caused by the closure of footpaths is welcome and the recommendation that research should be undertaken into the effectiveness of footpath closures also has my support.

"However, making recommendations is one thing, having recommendations accepted and implemented is another matter."

Edward Leigh, chairman of the powerful Commons Public Accounts Committee, said the Government had been completely unprepared for the outbreak.

DEFRA Secretary of State Margaret Beckett said the Government agreed with the report's conclusions that, while many things were done right, there were also lessons to be learned.

Updated: 10:01 Thursday, June 27, 2002