AIBP granted leave to seek quashing of deboning ban

Anglo-Irish Beef Processors has taken a High Court challenge to the Minister for Agriculture's refusal to allow it restart some meat deboning operations, which would attract EU refund payments, at its Co Limerick plant.

The court heard yesterday that all intervention deboning operations at the Rathkeale plant were suspended by the Minister from October 16th, 1991. From November 1996, the company was allowed resume certain deboning operations including commercial deboning.

The company then asked the Department of Agriculture to provide the necessary supervisory staff for the recommencement of Special Export Refunds (SER) deboning.

However, in a letter from the Secretary General of the Department of Agriculture, on June 10th, 1999, the company was informed that the Department "does not believe that adequate controls can be exercised at AIBP Rathkeale for the purposes of the SER scheme".

The letter added: "The Department is obliged to ensure that the financial interests of the European Community are protected at all items and in this regard must offer guarantees to the European Commission as to the regularity of payments made. In this particular case, I am not satisfied that such guarantees can be given . . . "

Mr Michael Collins SC, for AIBP, applied yesterday for leave to challenge that decision in judicial review proceedings.

In an affidavit, Mr Gerry Thornton, deputy chief executive of AIBP, said the Rathkeale plant was EU approved. He said suspension of intervention deboning operations in 1991 was based upon alleged irregularities at the plant, allegations which AIBP never accepted were well founded. AIBP had take legal proceedings regarding them.

Mr Thornton said the company had written to the Department from 1993 in an effort to resume deboning operations. In November 1996, it was permitted, subject to certain conditions, to restart commercial deboning. AIBP had met those conditions.

AIBP continued to pursue the Department about recommencing SER deboning. AIBP had responded to the Department's requests in relation to upgrading and veterinary requirements and imposed stringent control procedures. However, the company was informed on June 10th that the Department would not permit it to resume SER deboning.

Mr Thornton said he believed the Department's response was unreasonable and unlawful. AIBP had met every request or demand and the Department had made a decision of critical significance to the company. AIBP was left with no option but to conclude the Department's decision was made in an effort to penalise the company for other irregularities about which the Department had complained of in the past, "none of which have been proven and which are unrelated to Special Export Refunds".

No beef company had ever lost the SER facility except during an investigation into SER work and no such investigations ever occurred at Rathkeale. AIBP had agreed a meat protocol with the Department and there had been no problems regarding that. There was no basis on which it could be assumed that staff at Rathkeale would not discharge their functions properly or that their supervisors would not properly operate the agreed protocol.

If the Department failed to co-operate with AIBP the plant could not claim SER in respect of boneless beef, Mr Thornton said. The Department was required under EU laws to put in place whatever staff were necessary.

Mr Justice O Caoimh granted leave to AIBP to seek orders quashing the decision set out in the June letter and requiring the Minister to provide such facilities as are necessary to restart deboning operations. The company also secured leave to seek declarations that the decision is unreasonable, made for improper purposes and contrary to natural and constitutional justice and that the Minister is obliged, under the European Treaty, to provide AIBP with the facilities necessary for deboning SER beef at Rathkeale.