The liquidator of Irish Ispat Ltd (formerly Irish Steel) of Haulbowline, Cork, which is in voluntary liquidation, has asked the High Court to allow him disclaim an Environmental Protection Agency (EPA) licence, which requires a number of conditions relating to environmental safety to be observed at the site.
It is claimed the licence imposes an excessive financial burden on company creditors.
Last May, the court was told that radioactive waste on the lands would be moved to nearby Rocky Island, following an agreement between a number of Government ministers and the company liquidator, Mr Ray Jackson.
The earlier hearing was told that the Government had "grave concerns" that the liquidator was to leave the site on May 22nd last without, it was alleged, making adequate arrangements in relation to radioactive material, security and other matters at the site.
Mr Jackson, in the May hearing, had rejected the claims. He had strongly criticised applications made for restraining orders. He said that, despite regular communication with officials acting for the ministers involved, there had been no intimation to him of any grave concerns on the part of the ministers regarding arrangements about waste.
Yesterday, Mr John Gleeson SC, for Mr Jackson, said his client had brought proceedings against the State and the EPA, seeking to disclaim the EPA licence. Two other applications related to claims by the State against the liquidator and the company seeking certain reliefs under the Waste Management Act.
The court was being asked for an order to disclaim the EPA licence granted on June 22nd, 2001, to Irish Ispat. The resolution supporting the appointment of Mr Jackson as liquidator was passed by members and creditors on June 28th. The licence had been applied for two years before but was only issued six days before the winding up.
Counsel agreed with Ms Justice Carroll that the EPA wanted any monies available to the liquidator spent on the terms of the licence, while the liquidator wanted to preserve more monies for the creditors.
Mr Gleeson said the conflict was between two statutory provisions. The EPA was seeking to become a new species of creditor, which was not provided for in the Companies Act.
If the licence was not disclaimed, it would be a new departure from the long-established method of winding up a company and would create all kinds of precedents for the management of companies in liquidation.
Mr Gleeson said the court would be satisfied that a licence issued by the EPA could be regarded as property within the meaning of Section 290 of the 1963 Companies Act for the purposes of Mr Jackson's disclaimer application.
Counsel said the argument would revolve around the liquidator contending that section 290 was designed by the Oireachtas to cater just for such property in an insolvent company and was designed to protect the interests of creditors.
There was a legislative provision which had the effect of continuing a licence for three years after any activity had ceased.
The hearing is expected to last for three days.
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