The Department of Agriculture and Rural Development is examining a European Commission ruling that it will have to recover £1 million plus interest from Gaelic Ferries, a shipping company which transported live cattle to the continent in 1997/98.
The Commission, which was asked to investigate the grant by Compassion in World Farming, the animal welfare group, found that the grant was illegal under EU single market legislation. It ruled that the Irish authorities must recover the £1 million paid, plus interest, within two months.
A Department spokesman said that the grant was given to the company to start a live export service at a time when no alternative direct service existed.
Ms Mary-Anne Bartlett, director of CIWF Ireland, said that her organisation was pleased that the European Commission had ruled that it was illegal to subsidise a ferry service carrying live animals to the continent.
