USED OIL from electricity transformers originating in Northern Ireland is thought to be the source of dioxin contamination of animal feed which has led to a food scare surrounding Irish pork and beef.
This emerged yesterday as it was announced by the Government that three beef cattle herds in the Republic had been found to have traces of dioxin levels above limits resulting from contaminated feed from a Co Carlow food recycling facility, Millstream Recycling.
But officials of the Department of Health and the Food Safety Authority of Ireland said at a briefing in Dublin that there was no public health concerns in relation to the beef test results - and beef would not be withdrawn from the market.
The PSNI is involved with the Environment Protection Agency and the Garda Síochána in the investigation into the source of the "inappropriate" oil used at the recycling plant where the contamination originated.
The Irish Times understands they are looking at a business operation in Co Tyrone where it is believed waste oil from electricity transformers, which should have been stored or incinerated under licence, may be involved.
Members of the Garda's National Bureau of Criminal Investigation are also investigating the origins of the oil and confirmed they had spoken to a number of people from the Carlow plant. It is understood they have told the officers they bought the oil legally and believed it was of a quality required for the processing of the animal feed.
The gardaí involved in the investigation have indicated their inquiries have not formally become a criminal matter and they are closely liaising with the PSNI to compare the version of accounts given by those in the Carlow plant with the version given by the suppliers in the North.
The PSNI confirmed to The Irish Times late last night that it was involved in an investigation into the tainting of pig and cattle feed.
In a statement a police spokeswoman said: "We can confirm the PSNI was contacted by An Garda Síochána in connection with the Garda investigation into this incident. We will give whatever assistance we can with regard to this matter."
Taoiseach Brian Cowen was involved in negotiations with the pig processors who are seeking compensation to reopen their plants with the aid of an EU package late last night.
While the Government insisted the talks were not deadlocked but ongoing, there was no imminent sign of a breakthrough. Earlier the European Commission said it would not compensate the Irish pig industry for the losses incurred .
Speaking in the Dáil, however, Mr Cowen said it was not correct to suggest that support was turned down. "An official from the European Commission has outlined its position. We are in discussion with processors to devise the parameters of a general scheme which will be submitted to the EU," he added.
He said the Government was in the process of devising a scheme that would form the basis of discussions between Minister for Agriculture Brendan Smith and EU Agriculture commissioner Mariann Fischer Böel, which took place last night.
Meanwhile, more workers in the meat processing sector were laid off yesterday. Siptu estimates that the number of workers laid off as a result of the crisis is now more than 1,800.
Some 230 workers were let go at the Olhausen facilities in Dublin, Cork, Monaghan and Galway. A further 115 jobs went at Granby Limited in Dublin, Drover Foods Limited in Wexford and Oak Park Foods in Cahir, Co Tipperary.
Mr Smith announced the results from the tests which had been carried out on 11 cattle herds were those he had hoped for. The results show that eight out of the 11 herds are clear and "three are above the proposed legislative limits for marker PCBs in beef", he added.