A cattle exporter claimed yesterday his company lost £500,000 because of the alleged mistaken view of a former agriculture minister, Mr Ivan Yates, and his officials in 1997 that the Egyptian market had reopened and problems had been "sorted out".
Mr Gerard Purcell, managing director of Purcell Bros Ltd, is challenging a claim by the Department for payment of almost £63,000. The amount was the security required by the Department before it issued an export licence for the shipment of 1,700 cattle.
In the High Court yesterday Mr Purcell and his company secured leave from Mr Justice Smyth to seek declarations and an order prohibiting the Department from getting £62,917.
Mr Adrian Hardiman SC said the Egyptian market for live Irish cattle exports had closed in January 1997 and remained closed. The problem related to veterinary certification issues.
In an affidavit, Mr Purcell said the minister, in a press release of June 6th, 1997, entitled Re-opening of Egyptian live trade confirmed, had announced that the Egyptian authorities had agreed to allow imports of Irish cattle ready for slaughter.
Shortly before that, Mr Purcell said, he and other exporters were in the Department when the minister told them: "It's open. It's all sorted out".
On June 27th, Purcell Bros Ltd notified the Department of its intention to export 1,700 live steers to Egypt. The company chartered a ship. The Department pointed out that the issue of veterinary certification remained to be finalised with the Egyptian authorities and said it would be premature to arrange for cattle loading on July 2nd, 1997.
Despite this, the Department granted the company an export licence on July 3rd, 1997. Because the shipment never took place, Mr Purcell said, his company lost about £500,000.
In October 1997 the Department claimed the company was liable for the full forfeiture of the export licence. The Purcell company was told that if it did not pay up, the Department would be required under EU rules to seek the amount from the guarantor, Anglo-Irish Bank, Mr Purcell said.
The Department had claimed in April this year that the press release had stated that, while the Egyptian market was likely to reopen, the details of veterinary arrangements had not been finalised and there was no definite date for the resumption of trade.