Ministers have been privately considering plans to cut back on health inspections to fight avian flu, as well as a swath of other animal welfare and farm inspections, even though a new bird flu strain has been found in the UK and is considered to pose a significant risk to the poultry sector.

Papers leaked to the Guardian show the cuts were discussed at a meeting on 20 November among civil servants at the Department for Environment, Food & Rural Affairs.

The report stated: “It is potentially feasible to shift disease surveillance for AV from farms to slaughterhouses, making this form of inspection the default option.”

It recommended that the elimination of the burden “would be beneficial for farmers and lead to 349 fewer on-farm visits”. The inspections are designed to look for avian flu strains in poultry.

The drive to cut animal welfare inspections comes from the Cabinet Office-led deregulation drive known as the Red Tape Challenge.

The Guardian’s source said the document had been commissioned by the government and was discussed at stage 6 of the Red Tape Challenge last week, the “Star Chamber” meeting.

The leaked paper examines the feasibility of reducing 45 forms of animal welfare, farm and environmental inspections including checks for salmonella, TB, and brucellosis. The document looks at cut-backs for inspections covering honeybee health, intensive pig and poultry farms, tree felling, animal poisoning, and certification of seeds and free-range eggs.

In some cases the paper proposes responsibility for inspections be shifted from the government agencies to the industry.

The Red Tape Challenge states proposals will be reviewed by a ministerial “Star Chamber” with the presumption that burdensome regulations would disappear go unless they could be justified.

Any plan to cut back on farm inspections for avian flu is controversial since last week the UN Food and Agriculture Organisation (FAO) warned that Germany, the Netherlands and the UK had confirmed that the avian influenza virus strain H5N8 had been found in poultry farms. German authorities had also found the virus in a wild bird.

H5N8 has not been confirmed, so far, to infect people, the FAO said. However, it is highly pathogenic for domestic poultry, causing significant mortality in chickens and turkeys.

Maria Eagle, the shadow environment secretary, said: “It is deeply worrying that in the same week that government vets confirmed a case of bird flu in Yorkshire, government ministers were considering plans to end all future bird flu inspections on farms.

“This government’s ideological obsession for deregulation is not only damaging for the future of the food industry, it is putting public health at risk.”

The environment department said: “These are not policy ideas developed by government. [They] come from a report written by external consultants.”

Options under consideration included:

• Using “non-vets” to test for bovine TB among cattle.

• Removing farm testing for brucellosis in sheep and goats, so eliminating 800 visits a year lasting up to an hour each. The paper warns the downside could be “the potential impact on disease-free status and export industry”.

• Placing all responsibility on farmers to do salmonella test sampling. The plan would cut the need for 744 government inspectorate visits lasting one to two hours. The change could “increase the risk of non-compliance and disease outbreak”.

• Transferring responsibility for poultry, meat and marketing inspections to an approved external body. The document suggests “government could lobby industry assurance schemes take responsibility, since this is a consumer protection issue”.

• Abandoning government responsibility for egg inspection, packaging and wholesale premises, including free-range status and stated class and size of egg. This would shift responsibility for 2,745 inspections a year from government to the industry but lead to more cases of incorrect marketing. Marketing compliance rate for eggs is judged to be 95% now, and for farm egg packers, 85%.

• Ending inspections of plant health and seed control amounting to 363 visits a year.

• Abandoning tree-felling licence applications so reducing 570 farm inspections but possibly “undermining government requirements on restocking and policy on forestry management”.

• This article was amended on 26 November 2014. The original incorrectly stated that the report had been written by civil servants. It was actually commissioned by Defra but written by external consultants.