Coillte received payment of afforestation premiums at the non-farmer rate from 1994 to 1999. The total amount paid to Coillte in premiums, for the period in question, was €8,416,243 of which 75% was paid by the European Commission and 25% by the Irish Exchequer.
In August 1999, the European Commission decided that Coillte was not eligible to receive such premiums as it did not consider Coillte to be a “private-law, natural or legal person” as defined in Regulation 2080/92. This decision was appealed but was subsequently upheld by the European Court of Justice in its judgement of 16 October 2003. The State was obliged to return the EU element of the premium payment as this was the only part covered by the decision and the European Commission was concerned only about the Community funding involved.
The EU element amounting to €6,312,182 was reimbursed to the Commission.