Government decision flawed, claims Greencore

THE Government had no power under the relevant EC regulations to dictate to Greencore how it should spend some €145.5 million in restructuring aid following the rationalisation of the European sugar industry and Greencore’s withdrawal from sugar production here, the High Court was told yesterday.

In adopting virtually all of the findings of economic consultants Indecon in their report on the consequences of rationalisation of the Irish sugar industry, the Government and Minister for Agriculture had adopted a “fundamentally misconceived” approach as to how the EC regulations for rationalisation of the sugar industry should be interpreted, Michael Collins SC, for Greencore, said.

The Government had failed, when making itsdecision in July last year, to even consider the losses to Greencore in relation to assets write-offs and income losses into the future as a result of withdrawal from sugar processing, counsel said.