An investigation into hazardous waste and radioactive scrap materials at the former Irish Steel premises in Cork Harbour found the condition of the interior of the building poses a significant hazard to the local environment until suitable controls and decontamination are carried out, the High Court was told yesterday.

The estimated total cost of rehabilitating the site has been put at €30 million and the liquidator of Irish Ispat Limited (formerly Irish Steel), Mr Ray Jackson, has argued it would be unfair to the creditors if they were to suffer the cost of those works.

Irish Ispat Ltd is in voluntary liquidation and Mr Jackson has asked the High Court for an order allowing him to disclaim an Environmental Protection Agency licence that requires environmental safety conditions to be observed at the site.

The State is opposing the application. In an affidavit, Mr Adam Cronin, a chartered engineer with the Department of Communications Marine and Natural Resources, said there were serious environmental issues arising from the activities of the company.

In particular, he believed there was a landfill site where hazardous waste had been dumped and stored on the property. The area of contaminated land was about 21 acres.

Mr Cronin said there were various risks to humans and to groundwater, surface water and the marine ecosystem from leached metals, hydrocarbons, PCBs, windblown dust, and other materials.

The costs estimate for environmental management were estimated at €30 million, with €15.95 million attributable to the actions of the company, he added.

Mr Cronin said he was advised that the Environmental Protection Agency had requested the liquidator to take steps in relation to these matters but had not done so to date.

In another affidavit, Mr Jackson said there was no dispute that the condition of the premises was such that the company had not complied with the conditions in the lease, but he had undertaken certain essential works that were necessary to avoid injury or danger and to ensure the security of the site.

As liquidator it was not his lawful function to apply the realised assets of the company to the cost of undertaking a rehabilitation of the site, he said.

He rejected the impression conveyed in replying affidavits that he had failed to take adequate measures in relation to the security and safety of the premises, Mr Jackson said. He had employed a professional security firm on a 24-hour basis and the site was not accessible to the public or others without his permission.

The case continues today before Ms Justice Carroll.