Vol. 550 No. 5
54 Proinsias De Rossa asked the Tánaiste and Minister for Enterprise, Trade and Employment her plans to hold an investigation into whether the mergers and monopoly legislation may have been breached in the take-over of a company (details supplied) especially having regard to allegations that were made in a recent court case; and if she will make a statement on the matter. [9465/02]
I am aware of the legal proceedings to which the Deputy refers and also of the fact that one of the parties concerned was willing to accept, for the purpose of those particular proceedings, that he controlled the Master Meats Group in 1987. I take it that the Deputy is referring to a merger notified to the Minister on 14th September 1988 under the Mergers Act relating to the acquisition by Master Meats Anstalt – a Liechtenstein company – of Paschal Phelan's 50% shareholding in Master Meats.
In the 1988 notification it was stated that the acquiring company was backed by "Middle Eastern interests" but no further information was given as to the principals behind the company. There was a considerable amount of urgency associated with the notification as the company was in financial difficulties and the proposal was cleared by the Minister that same day. It subsequently came to light that Mr. Phelan's business partner, Mr. Taher, had previously sold his 50% stake in Master Meats to another Liechtenstein company – Taros Anstalt – in April 1987. It also emerged that the shareholders of Taros Anstalt were a Mr. Schneider, Mr. Mansur and a Mr. Hardman and that negotiations on their behalf were conducted by Mr. Larry Goodman.
The takeover of Master Meats and related issues was the subject of an investigation by the Fair Trade Commission in 1989. In giving evidence to the commission, Mr. Goodman stated that that he was not a beneficial owner of shares in Master Meats and that the Minister had been made aware of the identities of the three shareholders before the 1988 transaction was notified. However, my Department has no record of any meetings between the Minister and Mr. Goodman in that regard.
The more recent history regarding these matters is that on 14 November 2000 Paschal Phelan initiated proceedings in the High Court against Messrs Goodman and Taher claiming a conspiracy to force him out of the company. During a preliminary court hearing Paschal Phelan's lawyers lodged a notice of motion for discovery of certain documents held by my Department relating to the 1988 notification. Mr. Goodman's counsel then said he would be willing to assist the court in accepting, for the purpose of those particular proceedings, that Mr. Goodman controlled the Master Meats Group in 1987.
I am concerned about the implications of this and I have asked my officials to examine all the issues involved and to take legal advice in pursuing the matter.
Question No. 55 answered with Question No. 47.
Question No. 56 answered with Question No. 25.
Question No. 57 answered orally with Question No. 8.
