THE European Commission has agreed, following the briefest of discussions, to defer for a week consideration of the £93 million Irish beef fines.
Yesterday's move was proposed by the Irish Commissioner, Mr Padraig Flynn, who said more time was needed for clarification of the details and for further consultations.
The delay will allow Mr Flynn and his cabinet to continue the intensive lobbying in which they have been engaged, but Commission sources close to both the Agriculture Commissioner Mr Franz Fischler, and the Commissioner responsible for the fight against fraud, Ms Anita Gradin, do not expect to see any change in the compromise being offered.
Mr Fischler has already agreed to a deferred, phased payment of £24 million of the £75 million fines levied for failure to control yields and quality in intervention storage. The final payments would, however, be subject to a review next year, which would take into account improvements in the Irish management system since the 1990-91 period for which the fines are being levied. Irish sources are reasonably confident that such a review would be positive.
However, Irish attempts to have reduced an £18 million fine for irregularities in the intervention tendering system are still, understood to be blocked. It is likely Mr Flynn will be working on this issue this week but, if unsuccessful, the Government has reserved the right to fine in the European Court of Justice.
At yesterday's meeting, Mr Flynn invoked Article 4 of the Commission's standing orders, which allows individual Commissioners to get one week's adjournment of matters of particular import.
Following the request, Mr Fischler said he did not see need for a delay as he did expect any new elements to the equation.
The President of the Commission, Mr Jacques Santer, acknowledged Mr Flynn's right to" seek the deferment, and was followed by the Italian Commissioners, Mr Mario Monti and Ms Emma Bonino, who argued that the opportunity should also be taken to ensure that the approach of the Commission to the fines was non discriminatory. Mr, Santer agreed.
Italy is also facing substantial fines - some £360 million - of which half are deferred payments, of fines agreed in 1994 for breaches of milk quota rules. Any easing of the pressure on Ireland will certainly prompt calls for similar treatment for Italy.
In a statement yesterday, the Connacht Ulster MEP, Mr Joe McCartin (FG), welcomed Mr Flynn's move and said he believed the Commission had moved a long way from its original position. There was "every chance" the review of the £24 million would mean it would not have to be paid, he said, and there was a strong case to be made to the European Court of Justice on the £18 million if it was not reduced.
