On Thursday afternoon, the counsel for DCC and Mr Jim Flavin, Mr Kevin Feeney SC, questioned Mr David McCann repeatedly about the content of an outlook statement released by Fyffes at the time of the publication of its preliminary results for the year to end October 1999. The statement was issued on December 14th, 1999, and said 2000 would be another year of growth for Fyffes.

Mr Feeney: As chief executive you were perfectly happy that the investment community could be told as of 14th December that the year 2000 would be another year of growth? You were perfectly happy that that properly and adequately informed the market?

Mr McCann: Well, in the sense that I agree with the words I was happy, yes...

F: So that when the outlook signed by the chairman, approved by a sub-committee of which you are a member, tells the public as of 14th December that there is going to be another year of growth, that was your firm and realistic belief as of that date?

McC: As I said, that is what the market was entitled to believe...

Mr Feeney interrupts and then Mr McCann continues:

I think I said in my statement that we believed at that time, or I believed at that time, that it was too early to warn the market. And the clear implication from that is that we had information that we were not putting into the statement. And that is the case.

F: So was the market being accurately and correctly informed that the considered view of the company as of 14th October 2000 was that the year 2000 would be another year of growth, was that correct information?

McC: Well, that was the information that we gave, my lord. As I have said, we had concerns at that time about the performance of the company."

....

F: I suggest you could only say that if that was your considered and proper belief as of that date?

McC: Well, our judgement at that time was that that was the appropriate thing to say to the market.

F: And it would only be appropriate to say that to the market if it was a true considered and proper view?

McC: I can tell you what we did, which was that we announced that to the market...

Later, on the same point.

McC: At that time we had heard about results for November which were poor. We had heard a view expressed as to how December might also underperform. We had plenty of worries as to how the year would turn out... W e put into the market the announcement that we did, because we thought it was too early to do anything else.

Later again.

McC: Well, we have an obligation to keep the market informed and our obligation we felt was satisfied by putting into the market the statement that we did.

Later again.

F: It is as simple a question as I can put. Was it a true annoucement?

McC: "True" somehow suggests to me, or is asking me were there lies in it...

F: Well, did you believe it? Was it your expectation?

McC: It was what we believed was the correct thing to say at the time. It is what we judged was the appropriate announcement to make.