The Government has said it would 'robustly' defend Greencore's High Court action over what it alleges was interference by the State into how the company should allocate €145.5 of European Union aid.
Greencore was awarded the money as restructuring aid after the rationalisation of the European sugar industry and the company's withdrawal from the Irish market.
On July 12th, however, the Government ordered that the money should be divided between sugar beet farmers and contractors, environmental costs, redundancy payments and pension fund requirements.
Speaking today, Minister for Agriculture Mary Coughlan said the Government would 'robustly' defend the action.
This decision, Greencore claims, ignored the losses that it incurred, is in breach of EC regulations and partially unconstitutional.
Greencore claims that it will face costs of between €206m and €311m because of its halting of production here.
The company argues that it should have been allowed present its own restructuring proposal before the State chose to intervene. It has chosen to continue with that plan and will present it on or before Monday July 31st.
In a statement this afternoon Irish Farmer's Association Sugar Beet Chairman Peadar Jordan simply acknowledged the news and said that "sugar beet growers will be represented in court at the judicial review".
Beet farmers and contractors were awarded €47.1m in the Government's allocation.