€87m to keep sugar group sweet

ONE MORE THING:After a couple of years of intense haggling, the Government appears to have conceded defeat to Greencore on how the €145 million compensation due from the EU following the closure of Irish Sugar should be shared out.

The food group received a letter last week informing it that the Government's Supreme Court appeal has been withdrawn.

In June, the High Court issued a ruling that quashed a Government decision in July 2006 to allocate just €98 million to Greencore as compensation for the surrender of the State's sugar quota a year earlier. The €47 million balance was to go to sugar beet farmers and contractors.

Greencore maintained that it was entitled to 90 per cent of the EU compensation or €131 million, and took a challenge to the High Court.

In July, the Government said it would appeal to the Supreme Court but Minister for Agriculture Mary Coughlan seems to have had a change of heart and we presume a cheque is in the post. Chief executive David Dilger last month said he was "unapologetic" for pursuing the Government for the money. In his view, Greencore was legally entitled to the money and would fight tooth and nail to secure the funds.

To date, Greencore has received about €44 million from the Government and so is due a balancing cheque for €87 million. Dilger would no doubt like to bank that money before he takes his leave of Greencore next May.