A speech by Mr Paschal Phelan on changing trends in the European beef industry led to Mr Phelan being asked by beef baron Mr Larry Goodman to join Anglo-Irish Beef Processors in 1980, the High Court heard yesterday.

Mr Phelan said he then held an important position with CBF, the Irish Meat and Livestock Board, and was approached by Mr Goodman after he had addressed a CBF International Beef Symposium. During his address, Mr Phelan said he had urged that the industry become market instead of production led, and had addressed issues including the growing demand for vacuum-packed and added-value products.

He said Mr Goodman had asked him afterwards whether he "really believed all that stuff" and they had talked about changing trends in the industry. Mr Goodman had asked to meet him and they did so at a later date.

They had met in their cars outside one of the gates to Dublin's Phoenix Park. Mr Phelan said Mr Goodman had asked would Mr Phelan be interested in joining him. Mr Phelan had said he would think about it and after another meeting, agreed to join for a substantial salary.

He had found Mr Goodman businesslike and courteous, Mr Phelan said. He had later worked as general manager of AIBP in Bagenalstown, Co Carlow and with AIBP, Cahir, Co Tipperary.

He left AIBP in 1983 with a view to setting up a deboning plant. By 1984, he had an interest in a meat factory in Bandon, Co Cork, and had acquired another plant at Omagh, Co Tyrone. In 1985, he was in Jordan discussing entering an agreement with a Middle-Eastern businessman, Mr Zacharia El Taher, in relation to establishing a deboning plant at Ballymahon. They had also agreed to make an offer for the former Clover Meats plant at Clonmel.

Yesterday marked Mr Phelan's first time to give evidence in the continuing legal actions involving himself and his former partner in the Master Meats group, Mr Zacharia El Taher; Mr Larry Goodman, several Master Meat companies and others. The actions have been underway before Mr Justice Murphy for 53 days, but evidence only began yesterday.

In his action against Mr Goodman and Mr Taher, Mr Phelan - who founded the Master Meats group of companies - is claiming multimillion-pound damages. He claims there was a conspiracy on the part of the defendants to force him out of Master Meats.

Earlier yesterday, Mr Phelan (50), said he was the second eldest of 17 children, and had grown up near Rathdowney, Co Laois. His father was a farmer, accountant, manager of the local co-op and a Fianna Fβil Councillor. Six of his siblings were involved with the Master Meat companies in one form or another.

He had secured two honours in the Leaving Certificate. He did not want to be a farmer, but went to Australia with a friend in 1970.On his return to Ireland in 1975, he joined CBF. He got a "top job".

All he knew about the meat industry then was derived from his years working on the home farm and from the Farmers Journal.

He was initially the CBF representative in Milan. At the time, the Irish were seen as sloppy suppliers and there was a particular problem because, although Irish beef tasted better, it, being grass-based, had substantially more fat than the Italian product. He focused on the trade end and persuaded a supermarket chain to promote Irish beef - with "tremendous" success.

He had met Mr Nasser El Taher, son of Mr Zacharia El Taher, at a food fair in Paris in 1977 or 1978. He got on fine with him and learned the Jordanian meat market was effectively managed by Mr Zacharia El Taher.

Mr Phelan continues his evidence today.