A Co Wexford company facing claims of €32 million over supplying animal feed containing harmful dioxins has claimed the feed was grossly contaminated by recycled fuel oil.
Millstream is suing Gerard Tierney and Newtown Lodge Ltd for €36 million to cover Millstream’s own losses resulting from the dioxin controversy plus the claims against it. Millstream claims light fuel oil purchased in Northern Ireland and supplied to it by the defendants contained dioxins banned since the 1970s.
The presence of those substances was consistent “with reckless and perhaps criminal behaviour”, Millstream director Robert Hogg said. An extensive Garda investigation was continuing in relaiton to Mr Tierney and his contacts from the North of Ireland, he added.
The contamination in December 2008 resulted in a recall of all Irish pork products after pig meat on several farms was found to have between 80 and 200 times more dioxins than the recognised safety limit. Many animals were slaughtered and compensation costs for Ireland alone are estimated at more than €180 million.
Millstream, Clohamon Mills, Bunclody, itself facing some 18 court claims, today applied to the Commercial Court to admit its action against Mr Tierney, The Paddocks, Selandia, Newtown Park Avenue, Blackrock, Co Dublin, and Newtown Lodge Ltd, with registered offices at Philipsburgh Avenue, Fairview, of which Mr Tierney is a director.
Millstream claims it had no means of discovering the fuel oil contained the banned substances - polychlorinated byphenyls (PCBs) - and it is entitled to be indemnified by the defendants against the various claims against it. It said it had not tested the feed for PCBs because these were banned in the 1970’s and do not occur naturally.
In an affidavit, Mr Hogg claimed Mr Tierney had represented himself as having lifelong expertise in the food business, controlled Newtown Lodge and used it to invoice Millstream for oils with invoices using Mr Tierney’s own address.
Mr Hogg said his company was “devastated” at finding itself at the centre of the dioxin controversy, which had very serious effects for the Irish meat industry.
Millstream bought recycled vegetable oil from the defendants from September 2006, Mr Hogg said. About April 2008, he was told this would no longer be available from a plant in Castledermot and Mr Tierney recommended the use of recycled fuel oil.
He claimed Millstream did use that oil for a time until intermittent problems with a burner led it to change suppliers. He believed this oil was purchased by Mr Tierney in the North of Ireland as, when Millstream complained about its quality, it had
received visits from a Fergus O’Neill, who appeared connected with the supply of oil to Mr Tierney, and a Mr Joe Finucane whom, Mr Hogg believed, was a colleague or employee of Mr Tierney. Millstream received its final load of product from Mr
Tierney/Newtown on October 3rd 2008, Mr Hogg said.
Subsequent investigations revealed this fuel oil contained seven dioxins, ten furins and 12 PCBs which caused the contamination of the animal feed product, Mr Hogg said. He believed Newtown was not at any material time licensed to deal in mineral
oils and may have been used solely for invoicing purposes by Mr Tierney.
Because of the contamination, Millstream lost most of its customers but had since managed to salvage most of its business, Mr Hogg said. With insurance cover extending to a maximum €6.5 million, Millstream was in separate proceedings proposing a scheme of arrangement which would result in that 6.5 million being divided between those who have brought proceedings against Millstream and would also involve a stay on legal actions against it.
Today, on the application of Stephen Lanigan O’Keeffe, for Millstream, Mr Justice Peter Kelly admitted the action against Mr Tierney and Newtown to the Commercial Court.
