The directors of a Co Louth company were alarmed when they discovered there was a strong likelihood they were storing green tallow which could contain BSE genetic material on behalf of the State and a private company, the High Court was told yesterday.
Mr Henry Craig, one of the directors of Irish Edible Oils Limited, of Drogheda, said they had traversed the Internet for information about the product. As a result of their research, they were apprehensive about the tallow material in their storage tanks.
Mr Craig was giving evidence on the third day of an action in which his company is suing Monery By-Products Ltd of Crossdoney, Co Cavan, for alleged outstanding storage fees.
The court has heard that IEOL began storing "green tallow" in 1997.
This was the lowest grade which traditionally came from the gut of animals and would be refined for animal feed and soap. In all, they stored over 5,400 tons on behalf of the Department of Agriculture and Monery.
IEOL alleges that, in 1999, it discovered it was storing tallow from the renderings of "specified risk material" which, the company claimed, was derived from those parts of cattle believed most likely to carry the risk of BSE virus.
Ms Justice Carroll has been told there appeared to be differing views as to whether the material was hazardous. At European level it was regarded as hazardous but at Department of Agriculture and Environmental Protection Agency level, it was not regarded as hazardous.
When IEOL decided to increase the fees for storage, Monery said it wished to remove the tallow before the new fees became effective. The dispute led to court proceedings.
Yesterday, Mr Craig said that following its researches it had contacted various agencies at home and abroad querying the regime that should be adhered to in the removal of the material. A May 2000 EU regulation had designated the material as hazardous.
At that time, Louth County Council had said that moving the material without agreement would result in IEOL being liable to prosecution. The company's hands were tied at that time.
On October 5th, 2000 Louth County Council had written to IEOL rescinding its decision to refuse to allow the material to be moved.
Mr Craig said Monery decided, seven months later, to move the material.
Monery sent a letter to Mr Craig in May 2001 stating it could only assume that IEOL's continued obstruction of the removal of the tallow was motivated by a claim for substantial fees for as long as the product remained in the IEOL tanks.
The hearing continues today.