The £1 million assistance referred to was provided to facilitate the operation of a ferry service to carry livestock to the Continent in the winter of 1997. During this period there was no alternative means of getting Irish livestock exports to continental European markets as no commercial ferry operator was available to carry cattle. Failure to act by providing the means by which an outlet to vital markets for Irish livestock producers would be maintained would have resulted in a serious adverse economic impact on producers and farm incomes across Ireland.
While the Commission decision has held that the aid was incompatible with the common market, the Commission, in taking the view that the beneficiaries were the Irish livestock producers and recognising that there are special circumstances in this instance, has invited the Irish Government to detail its arguments and submit its evidence on the alleged impossibility of recovering the aid granted. In light of the decision my Department has fully set out its arguments in a submission to the Commission and awaits the Commission's response.