Ministers dispute Ispat misrepresentation claim

Counsel for several Government ministers disputed claims by the liquidator of Irish Ispat Limited, which acquired Irish Steel in 1996, that there was material "misrepresentation" of the situation at the firm's former site at Haulbowline in Cork by the ministers when seeking court orders earlier this week against the liquidator.

Mr James Connolly SC, for the ministers, made the comment yesterday when proceedings taken by his clients against the liquidator, Mr Ray Jackson of KPMG, and Irish Ispat Ltd came before Mr Justice Kelly. The proceedings were adjourned for hearing on Monday.

Mr Justice Kelly made directions for the exchange of legal papers over the weekend - including an affidavit from the Radiological Protection Institute - and directed the case would be heard by Mr Justice Smith on Monday. He also continued until Monday interim orders restraining the liquidator and Irish Ispat from vacating the Haulbowline site without making arrangements to ensure either the safe treatment or removal of radioactive materials there.

On Monday, Mr Jackson and Irish Ispat will apply to have those orders discharged. They have claimed the orders should never have been granted.

The disputed orders were granted by Mr Justice Kelly after he heard claims on behalf of the ministers that Mr Jackson was proposing to leave the Haulbowline site this week without making arrangements to ensure either the safe treatment or removal of radioactive materials there.

The orders restrained Mr Jackson and the company from leaving the site without making such arrangements.

The proceedings were taken by the Ministers for the Environment and Local Government; Finance; Enterprise, Trade and Employment; Communications, Marine and Natural Resources; and Defence. The Radiological Protection Institute of Ireland has been joined as a notice party to the action.

The case arises following the sale by the State of Irish Steel in 1996. Under the terms of sale, the premises and lands at Haulbowline island, Cork Harbour, were leased to Irish Ispat Limited for 35 years.

Irish Ispat Limited later went into liquidation and Mr Jackson was appointed liquidator. He has taken proceedings under the Companies Act to disclaim the 35-year lease.