I really don't know the answer to your final question, FlicketyB. I just wish we could get some help from professionals in the field. The chap from Natural England is doing his best to find out more but this was his last report via email on 4th November : "Specialist advice on the control of dog’s mercury is proving to be difficult to find but I’ve a couple of avenues to explore yet." I have already tried writing to the RHS (who replied) and Countryside Magazine (who haven't) to ask for more specialist information and interest in the situation.
Re the bluebells, we do have a few but only in the lower area of the hillside I think (not fit enough these days to survey all the area personally). I suspect that intensive bluebell growth would actually prevent the dog's mercury from spreading. Sadly there seems to be no plant capable of putting up a fight where it is spreading. I'm not sure if it is spreading on the council site but even if it is it would be of less concern there as that land doesn't get grazed but is cut by large lowers which cannot access our site because of the boundaries and steepness of the hillside.
Our dog, like many, enjoys chomping on various herbage from time to time so we keep her under strict supervision or on the lead when in that area of our garden.