The Federal Government's decision to allow beef to be imported from countries that have had outbreaks of mad cow disease could put 300 000 people out of work in a week, a Senate inquiry has heard.

The Upper House's rural, regional affairs and transport references committee is examining the government's decision to relax beef import restrictions.

In October last year, the government announced that from March 1, 2010, it would import beef from countries that are able to demonstrate they have appropriate controls in place to ensure beef products coming into Australia are free of BSE (Bovine Spongiform Encephalopathy) - or mad cow disease.

"Such a move would put 300 000 out of work in a week," a submission from the Australian Beef Association to the inquiry said.

"No government in the world did this when BSE broke out within their borders," the association said.