The headquarters of the Bank of Ireland was the target of a protest yesterday by farmer creditors of the Tralee Beef and Lamb Meat Company which closed with the loss of 70 jobs in October 2001.
Farmers who supplied the plant claim they are owed €3.5 million for stock they supplied to it through agents. They claim the bank knew the company would not be able to pay for the stock, but allowed it to continue taking meat from farmers.
However, in a statement last night the bank rejected the blame for the closure of the plant and said it could not compensate the farmers for their losses. One of the farmers taking part in the protest on Dublin's Baggot Street, Mr Donal Kelly, said credit from livestock supplied by farmers was used by the management and the banks to prop up the company for at least 12 months prior to its collapse.
"As the company's trading bank, Bank of Ireland knew fully the extent of the financial problems of the company and allowed management continue to purchase livestock from farmers, knowing that they would not be able to pay for the stock," he said.
He said Bank of Ireland had a moral obligation to the farmer creditors who were "hoodwinked" by Tralee Beef and Lamb into supplying cattle without payment.
He alleged that the bank knew the extent of the problems within Tralee Beef and Lamb Company at that time. "This is not acceptable from a bank that claims to operate to the highest corporate standards," he said.
He said the Bank of Ireland owed the 300 farmer creditors to Tralee Beef and Lamb a major part of the €3.5 million outstanding.
He added that the Irish Farmers' Association and the farmer creditors would not allow Bank of Ireland to walk away from the Tralee Beef and Lamb Company collapse. "Bank of Ireland has a moral obligation to the 300 farmer creditors and they must pay that debt," he said.
In a statement issued last night, the Bank of Ireland said it was sympathetic to the plight of the farmers.
"However, the bank rejects claims that it has any responsibility for monies still owed to farmers by the company.
"The appointment of a receiver was not initiated by Bank of Ireland," it added.
It said the bank had met with farmer representatives on a number of occasions to explain its position. "The bank cannot compensate farmers, or any other creditors, who have suffered a loss as a result of the collapse of the company," it concluded.