Mushroom co-op sues for millions in 'withheld EU aid'

Mr Justice Brian McGovern refused to fast-track the application. Photo: Ronan Quinlan / Collins
Mr Justice Brian McGovern refused to fast-track the application. Photo: Ronan Quinlan / Collins

Tim Healy

A mushroom producers co-operative has sued the ­Minister for Agriculture, claiming it has suffered more than €12m losses due to alleged unlawful withholding of EU financial aid.

Commercial Mushroom Producers Co-operative Society Ltd (CMP) claims the Department of Agriculture has limited the amount of aid available to CMP on the basis of expenditure caps which, it claims, have been unlawfully applied.

CMP CEO Donal MacCarthy also said in a sworn statement the Department had unlawfully refused EU financial aid in relation to expenditure actually incurred within budget.

Paul Gallagher SC, for CMP, established in 1999, applied on Monday to have its case against the Minister fast-tracked in the Commercial Court.

Brian Kennedy SC, for the Minister, argued CMP had failed to demonstrate sufficient urgency in bringing these proceedings to entitle it to avail of fast-track procedures.

The Department was also concerned about the resources implications for its small unit dealing with these claims if it had to adhere to the fast-track procedures of the court, counsel said.

Mr Gallagher SC disputed there was any delay on CMP's part and outlined a history of correspondence and interaction between the Department and his client concerning the alleged misadministration of the financial aid scheme. This was a very difficult matter for the producers involved who would prefer not to fight with the Department and had tried over years to resolve the matter, counsel added.

Judge McGovern ruled the case had not demonstrated the necessary urgency and refused the fast-track application, meaning the action will now proceed via the ordinary High Court lists.

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CMP's legal proceedings relate to the administration by the Department of the relevant EU aid scheme between 2010 and 2016.

The loss and damage attributable to the alleged unlawful withholding of EU financial aid alone is estimated to be more than €12m, it claims.

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