GOLDEN Vale's chief executive, Mr Jim O'Mahony, survived motion of "no confidence tabled at a meeting of the Golden Vale Co-op late last week, The Irish Times has learned.

The motion, which was proposed by the former Golden Vale chairman, Mr Denis Wallis, was defeated by 42 votes to 18, according to industry sources. It came a week after the agribusiness group revealed that it bad to pay £3.1 million in milk super levy arrears to the Department of Agriculture.

A spokesman for Golden Vale last night confirmed that the motion was tabled and defeated at last Friday's meeting, but declined to discuss the matter further.

The board of Golden Vale Coop, which comprises about 70 farmer suppliers, does not hold shares in the public limited company (plc), but most of its members are shareholders on an individual basis.

The co-op board also has the power to elect members of the plc's board.

The "no confidence" motion came at the end of a three hour meeting at Charleville, Co Cork, and some board members are thought to have left before the vote took place, possibly so that they would be home in time for milking. It is not known if any members abstained.

Mr Wallis, who was first elected to the board of Golden Vale Coop in 1981, was chairman of Golden Vale from its formation as a public limited company in 1990. He retired from the plc earlier this year but continues to sit on the board of the co-op.

When his retirement was announced last September, Mr Wallis declined to comment on reports that he had decided not to seek re-election because of friction between himself and Mr O'Mahony.

The two men are understood to have differing views over some of the changes implemented at the company in recent years.

Late last month Golden Vale announced that it had paid £3.1 million to the Department of Agriculture because it incorrectly calculated its super levy milk bill over a two year period. A Department of Agriculture audit discovered the miscalculation and the shortfall was paid with interest.

Golden Vale is likely to attempt to recoup the £3.1 million from about 1,000 of its farmer suppliers. But the collection of funds is likely to take place over the medium to long term as farmers' incomes have been hit by falling milk prices and the beef crisis.