Dáil Éireann debate -
Wednesday, 11 Oct 1995

Vol. 456 No. 7

Written Answers. - Beef Tendering Procedures.

Desmond J. O'Malley

Question:

36 Mr. O'Malley asked the Minister for Agriculture, Food and Forestry the reason a fine of £18,457 million pounds imposed on Ireland in respect of alleged malpractice in beef tendering procedures was imposed on the State rather than on the traders concerned; whether his Department in any way, facilitated the breaches of procedure that led to this substantial disallowance; if he will explain the breaches of procedure that are alleged by the Commission to have taken place; if there was any reduction in the penalty after the final conclusions of the Conciliation Body became available; and if he will make a statement on the matter. [14573/95]

Minister for Agriculture, Food and Forestry (Mr. Yates)

The proposed disallowance is based on the EU Commission's view that the beef intervention tendering system was not properly implemented in Ireland in 1991 and 1992. The Commission services take the view that the provision in the relevant EU regulation which prohibited the submission of several tenders by the same company for the sale of beef into intervention should have been interpreted so as to exclude tenders from companies which were linked commercially to other tenderers.

My Department is satisfied that the manner in which the tendering procedure was operated was fully in accordance with the relevant EU regulations in force at the time. It should be noted that these regulations were subsequently amended in 1993 to provide for the rejection of tenders from linked companies but this amendment cannot be applied retrospectively. A number of member states applied these provisions in a similar manner and are facing disallowances on the same basis.

My Department submitted this matter to the EU Conciliation Body which has made its recommendation to the Commission. However, the Commission services have informed my Department that, having considered the conclusions of the Conciliation Body on the issue, they cannot agree to reduce the penalty at this stage. The issue — including the conclusions of the Conciliation Body which are confidential — has yet to be considered by the Commission itself and may not be finalised for some months.