Greencore judgment to be given on June 14th

The High Court will give judgment on June 14th on the challenge by Greencore to the Government's decision on how €145.5 million in restructuring aid should be allocated following the rationalisation of the European sugar industry and Greencore's withdrawal from sugar production here, the High Court was told yesterday.

The seven-day hearing before Mr Justice Frank Clarke concluded this week, and the judge reserved his decision to June 14th.

Greencore has alleged unlawful interference and objective bias by the Government in directing how the company should allocate the €145.5 million in European Commission restructuring aid.

The action has been brought by Greencore Group plc and Irish Sugar Ltd, trading as Greencore Sugar, against the Government, the Minister for Agriculture and Food, Ireland and the Attorney General.

The Irish Farmers' Association, as representative of the sugar beet growers, and the Machine Contractors' Association, are notice parties.

Greencore wants to overturn the Government's decision of July 12th that some €47.1 million in restructuring aid go to sugar beet farmers and contractors, €28.4 million to employee redundancy payments in line with Labour Court recommendations, €20 million for environmental and demolition costs, and some €50 million for pension fund requirements and other payments to demonstrate a "sound economic balance" between the elements of the restructuring plan.

It claims the Government's decision is "fundamentally legally flawed" and in breach of EC regulations of 2006 adopted to give effect to the reform of the sugar regime in the EU.

It contends the Government failed to take into account adequately or at all Greencore's own losses resulting from the major reform of the EU sugar market announced in November 2005 and had relied on a report by international economic consultants Indecon.

The defendants have denied the claims.