Greencore to see Government documents on sugar aid

A High Court judge has directed that Greencore plc should be given all documents related to the Government's decision on how …

A High Court judge has directed that Greencore plc should be given all documents related to the Government's decision on how the company should allocate €145.5 million in restructuring aid for the sugar industry following Greencore's withdrawal from sugar production here.

Mr Justice Peter Kelly today admitted the challenge by Greencore to the Government decision into the Commerical Court list and made directions relating to the exchange of legal documents between the sides.

Among the documents to be given to Greencore include a report prepared for the Government by Indecon economic consultants on the consequences for various interests of the Greencore withdrawal from the sugar industry.

The Government side is also to be given a copy of Greencore's own proposals as to how the restructuring aid should be allocated, the judge directed.

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That plan was submitted by Greencore today, which was the deadline date, and its proposals are expected to differ fundamentally from those advanced by the Government.

After making the directions, the judge returned the proceedings to October 6th next.

On Friday last, Greencore secured leave to bring proceedings alleging unlawful interference and objective bias by the Government.

Grencore said it was "appalled" by the decision of July 12th last that some €47.1 million restructuring aid go to sugar beet farmers and contractors, €28.4 million to employee redundancy payments in line with Labour Court recommendations, €20 million for environmental and demolition costs and €50 million for pension fund requirements and other payments.

Greencore claimed the Government's decision is "fundamentally legally flawed" and in breach of relevant EC regulations adopted to give effect to the reform of the sugar regime in the EU.