The Government will defend its position in relation to the EU sugar compensation fund against Greencore's legal challenge, a spokesman for the Minister for Agriculture, Mary Coughlan, said yesterday. Una McCaffrey reports.
The spokesman said the Minister's original decision to allocate €47.1 million of the €145 million fund to farmers and contractors had been the correct one.
Greencore, which has long argued that it should receive 90 per cent of the money, did not comment on its move, aside from confirming that a judicial review of the decision was being launched.
The company also said that it was ready to submit its own plan to the Government on how it would spend the money it believes is due. The deadline for this submission is Monday.
This restructuring plan will detail the various financial obligations that the company sees itself incurring as a result of the sugar exit.
It is also likely to restate Greencore's argument that it is entitled to almost all of the compensation funds available.
In the judicial review proceedings, Greencore is challenging the Minister's right to make the decision on compensation as opposed to the decision itself.
The firm is likely to be particularly unhappy, however, at Ms Coughlan's ruling that the €98 million awarded to it should be allocated in a particular way.
Some argue that Greencore may have been more comfortable with Ms Coughlan's position if this allocation had not been prescribed, but the company has never said this publicly.
The Irish Farmers' Association (IFA), for its part, will be present as a notice party at any court proceedings.
The association was tight-lipped on the matter yesterday, with its sugar beet chairman Peadar Jordan simply noting Greencore's decision on behalf of growers.
The association is thought to have concerns that the action will delay payouts due to its members.
In common with the two main players, the IFA will have taken what it perceives to be the best legal advice on the matter.
Ms Coughlan made her original decision with the help of independent consultants, Indecon. She will also have had the benefit of legal advice throughout the process, like Greencore.
On Monday, the company should find out whether the matter will be heard by the High Court or the Commercial Court, with its preference thought to be for the latter.
