Extra time to solve Coillte pension action

A High Court judge has allowed a final opportunity to reach a legally binding agreement to tackle a €23 million deficit in the pension scheme of State forestry body Coillte Teoranta, affecting 2,000 people. If no agreement is reached, a court action by the trustees of the scheme against Coillte will proceed.

After being told yesterday a delay in finalising the agreement arose from the need to secure the approval of two Government Ministers – the Minister for Public Expenditure and Reform and the Minister for Agriculture – Mr Justice Peter Kelly noted eight weeks had passed since the action was adjourned to facilitate efforts to reach agreement.

Four weeks He would allow four more weeks but, if agreement was not reached by then, the case would proceed in the ordinary High Court list and would not be fast-tracked by the Commercial Court.

Earlier, Brian O’Moore SC, for the trustees, said the bad news was the trustees are “bitterly disappointed” a legally binding agreement had not been achieved by now. But the good news was that he believed they were “within an ace” of such an agreement.

He was proposing only two weeks be given, but the Coillte side was seeking four weeks. Shareholder approval was required for the agreement to be legally binding, he added.

Jonathan Newman BL, for Coillte, said the consent of the Ministers for Public Expenditure and Agriculture was required. There had been “tremendous” progress since the case was adjourned, but four weeks were needed because the matter was complex.

The judge said he would adjourn the matter peremptorily against Coillte for four weeks. That would mean three months had been provided for Ministerial approval to be forthcoming which was “perfectly adequate”.