FARMERS have finally settled their dispute with the Government over a huge bill they were left with following the foot-and-mouth clean up operation.

The Northumberland and Durham Machinery Ring had been involved in a lengthy wrangle with Defra over its costs which reportedly ran into six figures.

The ring, a farmers co-operative of about 300 members, rented out machinery and labour which was used at the height of the crisis for a number of tasks including helping to dispose of the thousands of animal carcasses left from culls carried out across the region.

It is understood to have sought legal advice and complained that it was facing a cash flow crisis when Defra stopped payments without warning.

The Northern Echo has learnt that both parties have now reached a compromise over the claim - more than two years after the North-East was declared free of foot-and-mouth disease.

Richard Ellison, the National Farmers Union regional director in the North-East, said: "We are pleased that on this occasion these difficulties have been sorted out and the matter resolved.

"But we are aware that there are still people with issues outstanding and believe that the people involved in all manner of operations including cleansing and disinfection should be reimbursed on the basis of the figures agreed with Defra.

"There have been concerns from Defra about the size of some bills they received, but equally some of those undertaking the jobs feel the goalposts were moved."

David Maughan, chairman of the North Riding and Durham NFU, said: "There has been a complete log jam when it comes to many people being paid for the work carried out."

No-one was available for comment at the machinery ring which is a non-profit making organisation, based in Crook, County Durham. But a statement released by Defra said: "NDMR and DEFRA are pleased to announce that they have resolved their contractual dispute relating to charges for services provided during the foot and mouth disease outbreak."