Meat firms owned by Mr Larry Goodman "dishonestly" pretended beef worth £80 million (€102 million) was Irish when they knew it originated in Uruguay, Brazil, Northern Ireland and other EU states, a court judgment stated yesterday. The beef was allegedly insured under the State's export credit scheme and Mr Goodman's companies are seeking to sue the State over the removal of the insurance cover in 1989. They claim cover of about £100 million was based on alleged verbal agreements with the

Yesterday the Master of the High Court, Mr Edward Honohan, delivered a judgment on an application for discovery of documents made by the State against Anglo Irish Beef Processors International, Goodman Holdings and Anglo Irish Beef Processors Sarl.

Detail "now admitted as fact" by the Goodman firms "shows a considerable proportion of non-Irish beef as having been exported," Mr Honohan said. "It will be seen that of the £125 million still due to the insured [Goodman firms] under the supply contracts allegedly covered by the two informal insurance contracts (November 1987 and October 1988), over £50 million pertains to beef sourced in Uruguay and Brazil, and over £30 million to Northern Irish and other EU beef."

State insurance cover guaranteed a certain percentage of the money due would be paid if Iraq defaulted, to which the beef was being exported. Goodman firms claim £86 million from the State arising from the withdrawal of the cover. Counsel for the firms, Mr Ian Finlay SC, has said they will deny they expressly represented that all beef supplied under the letters of credit was or would be produced in the Republic.

Mr Honohan said the companies claimed they secured insurance cover of $30 million in November 1987, and £80 million in October 1988 although "no written proposals were alleged and no policy documents issued. Such premia as were paid were allegedly unsolicited".

Letters of credit to the Goodman firms from Iraq were dishonoured. Mr Honohan said the firms have admitted they knew some beef came from outside the Republic. The State wants access to company documents concerning the origins of beef exported despite the admission by Goodman firms that non-Irish beef was exported under the scheme and that they knew this at the time.

"In my view, the defendant's case [the State] cannot be improved by proof of the actual quantities [of non-Irish beef] involved," Mr Honohan said. He granted the State's application.