The European Commission has ruled out an emergency compensation package for Ireland’s pork industry in wake of the pig meat contamination scare which has thrown the industry into disarray.
European Commission agriculture spokesman Michael Mann said today: “There is no basis on which we can pay out money to compensate people from European funds for destroying the meat”.
“We do not have a legal basis for that,” he said.
Talks to resolve the crisis caused by the recall of all Irish pork products after the weekend discovery of potentially-dangerous dioxins, known as PCBs, in pigmeat resumed at the Department of Agriculture today.
The Government said it would seek EU funding or co-funding for a compensation package for the pig industry which yesterday laid off more than 1,000 workers because of the dioxin contamination scare.
Taoiseach Brian Cowen expressed the hope that a package could be devised that would reflect the cost of removing and destroying product and the destruction of pigs on the farms involved.
But Mr Mann said today Ireland could offer compensation out of its own Exchequer coffers, including up to €7,500 for each affected farmer over a three year period, or establish that the contamination was an exceptional circumstance allowing the Irish Government to cover 100 per cent of the cost.
“But the idea of the Commission sending some European money is not a possibility,” he said.
Talks chaired by Mr Cowen between representatives of the pig industry and the Government adjourned last night shortly after 10pm with a department spokesman saying “some progress” had been made.
Pig processors had yesterday refused to reopen their slaughtering lines until compensated for the loss of trade caused by the recall. They demanded that the Government compensate them by buying up returned product worth at least €200 million.
Their decision to lay off hundreds of workers and put others on protective notice increased pressure on the Government to reach a settlement for losses the industry estimated could run to €500 million when lost overseas markets were taken into account.
Mr Cowen said the recall of pork products had taken place on the basis of upholding the reputation of the Irish food industry and our export markets in particular.
The talks last night took place against the background of a breakthrough in the investigation into the source of contaminated pig feed.
A press briefing in Dublin was told yesterday that "inappropriate" oil was used in a burner used in the heating process of waste food at Millstream Recycling in Co Carlow.
The Environment Protection Agency is inspecting similar plants in the country to ensure they were using the proper oil to heat-treat waste food.
Chief veterinary officer of the Department of Agriculture Paddy Rogan said plans were being drawn up to slaughter and destroy 100,000 pigs which were being held on the 10 pig farms on which contaminated feed was used.