Prosecutions are likely from a Garda investigation of the importation of sheep into the State, the Dail was told.
The Minister for Agriculture, Mr Walsh, said the investigation was into allegations that meat plants agreed to or acquiesced in the delivery of imported live sheep from their plants to farms in the Republic.
He told Fine Gael's agriculture spokesman, Mr Alan Dukes, that the gardai were pursuing the investigation "with all urgency" and "my information is that there will be prosecutions", under a number of headings.
However, he said there was no evidence available to Department staff that sheep were illegally imported, because it was virtually impossible to effectively establish the origin of sheep presented for slaughter in the absence of a tagging and movement-control system. Tagging, which had been resisted for a number of years had now been in place since June 21st.
A veterinary laboratory in Athlone, which reopened 18 months ago after £1.3 million was spent on rebuilding it, still has 77 building "snags".
Mr Walsh said he had been unaware of the problem until it was drawn to his attention by Opposition spokesmen. The Minister said the snags would be dealt with.