The Department of Agriculture says it will defend its decision to grant-aid a livestock service between Ireland and the Continent when shipping services refuse to carry animals.
The European Commission has asked the Government to explain why it has given State aid to the cattle ferry service operated by Gaelic Ferriers between Cork and Cherbourg in France.
An EU spokesman said the commission has questions about the compatibility of State aid with the common market. It has ordered Ireland to present all information to allow for an assessment of the aid within 30 days.
The Government, prompted by the Department of Agriculture, agreed to pay £1 million to Gaelic Ferries to operate the MV Purbeck, which gives priority to livestock carriage. When Irish Ferries suspended services to France for the winter season, Irish exporters found they could not get their livestock trailers on British-based ferries operating on the Irish Sea.
The Irish Farmers' Association came out in support of the Government's move yesterday and said its president, Mr Tom Parlon, will take up the matter with the EU's agriculture ministers in Strasbourg next week.
The Minister for Agriculture, Mr Walsh, yesterday described as "very useful" talks his officials have had with the Egyptian authorities on beef and live cattle imports to that country. He also said he had been assured by the supermarket group Tesco that there would be no repeat of the negative campaigning against Irish beef in Britain.
He described the Tesco campaign, which was published in the British trade press as part of a "Buy British" beef campaign, as "over the top" and "intolerable". Tesco had sought a meeting with the Minister, which took place earlier this week.