The Department of Agriculture was warned as far back as 1998 that sheep smuggling from Britain was so widespread that some Irish sheep producers were considering burning non-Irish registered lorries used to transport livestock.
The warning was contained in documents obtained by The Irish Times under the Freedom of Information Act, and was in a memo written by an assistant principal officer in the Department's sheepmeat division in November 1998.
The memo noted an Irish Farmers' Association official, Mr Kevin Kinsella, had said farmers were furious about the Department's inaction and claimed veterinary inspectors "must be turning a blind eye to consignments of sheep of questionable origin in meat plants".
"He warned that there was an element of [sheep producers] which were out of control and discussing as a next step the burning of lorries with non-Irish registration, which were delivering to meat plants," the memo said.
However, the documents confirm that as early as January 1998, in a letter to the Revenue Commissioners, the Department's sheepmeat division had asked that an investigation into VAT evasion be carried out as quickly as possible in response to reported smuggling operations.
"This Department is investigating these reports from a health and welfare view. I would appreciate it if an investigation could be made under the VAT regulations into the matter and a report furnished on the outcome as soon as possible," a senior official had written.
Another letter was sent to the Revenue Commissioners, dated February 18th, 1998, which noted allegations that slaughtering plants might be benefiting from VAT refunds in respect of lambs originating in Northern Ireland. The Department said producer organisations were complaining that significant numbers of lambs were being purchased in Northern Ireland by factories or their agents.
In another letter, dated February I8th, 1998, the Department complained to a Revenue official that no great progress had been made by the VAT section. In a note on August 25th, however, Ms Helen Nugent of the sheepmeat division reported progress after she phoned for an update. She noted: "On foot of the memo from the Department in February, the Revenue Commissioners carried out examinations of VAT returns from meat plants in the Dublin district. As a result of irregular activity uncovered, two large plants have agreed to settle unpaid, unreported VAT bills with the Revenue Commissioners relating to Northern lambs. Very large sums are involved in both cases. These findings have led the Revenue Commissioners to plan nationwide `swoops' on meat plants on an ongoing basis."
But in December 1998, the IFA again complained about importation of sheep from Britain. An internal report of a sheep forum meeting recorded that Mr Kinsella had pointed out that there was a belief that processors were purchasing and selling lamb from unknown sources. "This is of concern in the context of integrity of exports and for commercial and health reasons. The IFA felt the Department's veterinary inspectors at the meat plants may be stamping imported carcasses and giving the impression they are Irish," the report noted.
In January 1999 there were more complaints that the trade had resumed, and Department veterinary inspectors were informed of the requirements necessary for sheep importation.
Meanwhile, a memo by a senior veterinary official, dated March 2nd this year, outlined sheep inspection procedures at the Kepak plant, Athleague, Co Roscommon (the subject of an investigation after foot-and-mouth disease was confirmed in the North). It said all sheep to be processed in the plant were subjected to veterinary ante-mortem inspection.
It added: "It is not possible to detect where there are holes in the ears of sheep in the course of ante-mortem inspection. Even if holes were detected they do not have any relevance as Irish sheep may have, for flock identity, for breeding information purposes, tags in their ears at some stage.
"To check for tags/holes in ears it would be necessary to individually handle each sheep. This is not required under any legislation, nor is it a practical consideration as plants do not have the type of facilities, as would cattle plants, for individual animal inspection," it noted.