Vol. 573 No. 2
16 Ms Shortall asked the Tánaiste and Minister for Enterprise, Trade and Employment the basis of the recent settlement announced by her regarding the long running legal action against the State by a company (details supplied) relating to the supply of beef to Iraq; and if she will make a statement on the matter. [24498/03]
The resolution of the cases at issue here was announced on 19 September. That followed an approach to my Department of behalf of Goodman Holdings in June of this year. Detailed discussions were held in the intervening period involving officials of my Department and legal teams representing both sides. Those discussions were informed by my determination that nothing could or would be entered into which might in any way inhibit the discharge of my political responsibilities in relation to public accountability and transparency.
The finalisation involved agreement of both parties to the following: the company agreed to definitively withdraw its claim against the State for an amount of approximately €100 million; contested premium payments to the value of €1.47 million, which were made by the company in 1988, have been retained by the State and will not be refunded; an action taken by the State against the company for the repayment of approximately €5.046 million, a sum which the State was contractually obliged to pay at the time to a bank under the provision of the short-term finance for exports scheme, has been withdrawn. However, in the event that Iraqi debtors make compensation in this respect – a possibility, which should not be totally ruled out – the State will recoup its debt in full or in part. Each side agreed to bear its own legal costs.
For the taxpayers, the outcome is highly satisfactory. As the responsible Minister, I am also satisfied with the outcome and wish to recognise the efforts of the team that, under my authority and direction, acted for the State and achieved such a positive outcome.
