The story's a bit of a non-starter really; notice the government haven't really said anything at all on the issue, its just a suggestion, and even DEFRA's quote is very vague and refers to all research on lamb mortality.
The idea would be a helpful one its true; it would help hunts across the country, reduce the pressure on hunt staff and farmers, and it would annoy the antis because prosecutions would be hard to come by. But its not repeal, repeal is the only thing that will really help, and repeal is needed.
I'm in two minds as to whether the implementation of this, say next year, would be a good or a bad thing. It would probably be the only thing we'd get before the election, and if you look at what the antis are saying, they are terrified that enough 'weak' anti-hunt MP's will be persuaded into voting for it that it will pass. It would weaken the Hunting Act, and perhaps pave the way for acceptance of its complete repeal post-2015, but on the other hand if we're not careful it could be seen to have dealt with the hunting issue once and for all, making repeal an impossibility.