THE Irish taxpayer will have to bear the cost of fines by the EU for irregularities in the Irish beef trade in the early 1990s, it was officially admitted yesterday. The EU is demanding over £100 million.
The Minister for Agriculture, Mr Yates, confirmed yesterday a special inter Departmental group was set up to see if the fines, which are being disputed, could be clawed back from the beef processing industry.
"The clear finding of that group was that it would not be legally possible to recover, in the form of a general levy, either under European or national law, such a fine," said Mr Yates. "Therefore, there is no legal basis for the cost recovery in a direct way.
A levy by the Italian government on the fruit and vegetable sector in a similar case was deemed illegal by the European Court.
However, he said there was a way for the Government to charge companies the full cost of meat inspection fees and meat hygiene fees in factories. The administrative costs of policing through veterinary, technical and other officers were currently subsidised and he proposed to end this subsidy.
Under present arrangements, he said, this would generate an extra £4.5 million per year. Companies would be billed on the number of Department staff in factories and the factories would not be allowed to increase inspection levies which farmers pay.
He said the regulation, part of a package which he placed before the Cabinet yesterday, should be seen in the context of gross revenues from meat plants of about £1 billion annually.
The Minister said this new charge was being levelled at the entire industry. It should not be seen as a punishment" because of the Department's inability to recover EU fines.
Mr Yates said the Cabinet had agreed to new anti fraud measures for the industry which would include a Bill to protect the financial interests of the EU. This Bill would include improved procedures for inspection and seizure of documents and computer records. It would also include changes in the rules of evidence to ensure all relevant evidence and documentation were not excluded.
He said it would also implement a blacklist which would prevent "non reliable operators" from receiving EU and national supports.
He also announced a new executive unit to deal with EU payments, a strengthening of the special anti fraud unit and a plan to inter change control staff at factories every four years when agreement is achieved with unions.
The Irish Meat Processors' Association, representing factories, last night accused the Minister of reneging on an agreement on inspection fees last June. It accused Mr Yates of choosing the soil option of passing to the industry the cost of an inefficient service rather than grasping the nettle and sorting out the deficiencies in the system.
The Irish Farmers' Association - it will be protesting outside the Dail today on cattle prices - said the levy on the industry was an outrageous attack on the farming sector" and it would be fought tooth and nail.
Mr Peter Cassells, of the Irish Congress of Trade Unions, said the EU fines should be recovered from those who gained most in that period. The PAYE sector should not be asked to pay it and he was seeking an urgent meeting with Mr Yates to outline ICTU opposition to the burden being placed on the taxpayer.
The EU is expected to make its final decision on the fine next week.