Goodman suing State over beef from EU, Ireland

Mr Larry Goodman has said he is not seeking compensation from the State in respect of non-payment by the Iraqis for beef worth €63.5 million (£50 million) and sourced in South America.

Mr Goodman's comments follow a report yesterday of a written ruling delivered on Tuesday by the Master of the High Court, Mr Edmund Honohan.

Mr Honohan said the State is claiming that false representations were made to the Department of Industry and Commerce in the late 1980s when beef being exported to Iraq by Anglo Irish Beef Processors International, Goodman Holdings and Anglo Irish Beef Processors Sarl, was being covered by export credit insurance.

"A perusal of the figures listed (in documents supplied to the court by the companies) now admitted as fact shows a considerable proportion of non-Irish beef as having been exported," Mr Honohan said.

Of the £125 million still due to the companies under the export contracts, more than £50 million pertained to beef sourced in Uruguay and Brazil, and in excess of £30 million to Northern Irish and other EU beef, Mr Honohan said.

Following the withdrawal of export credit insurance cover in 1989, Mr Goodman's companies sued the State. The case has yet to come to court. Mr Goodman said the South American beef was always excluded from this claim.

He said his companies claim is for £81 million for Irish and EU beef and represents only 50 per cent of the total Iraqi debt which at the time was £161 million. He also said it was an important part of his contract with the Iraqis that supplies could be sourced from other European and South American countries. "This was an important safeguard should supply or health restrictions limit supplies from any country." Without this clause, his companies could have defaulted on the contract due to circumstances beyond their control. "This safeguard was fundamental and known to Minister's department who had copies of the contract." Mr Goodman said the only issue currently before the Master of the High Court was the extent of the discovery to be made in advance of the main trial.

A spokesman for the Department of Enterprise, Trade and Employment said the case would be defended vigorously. It is not expected to come to trial before late next year, at the earliest.