Ireland’s largest mushroom producer group, Commercial Mushroom Producers, has launched a High Court action against the Department of Agriculture over an alleged €12m loss in funding since 2011.
The CMP case claims that due to the Department’s “incorrect application of the EU’s Fruit and Vegetable producer organisation scheme”, Irish mushroom growers have lost in excess of €12m in funding since 2011.
CMP alleges that this has resulted in a loss of employment, a stagnation of research and development investment and a loss of competitiveness to other European growers.
It says the sector “urgently needs the establishment of a new national policy framework to secure its development into the future”.
The Department of Agriculture is the competent authority responsible for administering the EU’s fruit and vegetable producer organisation scheme in Ireland. CMP says it received 93% (€5.9m) of the EU funding it was entitled to in 2010. It claims that since 2011 it has only been able to access around 25% of its entitlement, receiving just €2.4m in 2013.
We have tried and failed to engage with the Department over several years to resolve this serious issue and have been left with no option but to pursue legal action
CMP also claims that under the Department’s current approach:
The sector will continue to lose potentially €6m each year in direct funding. CMP mushroom growers have been placed at a considerable competitive disadvantage to their European counterparts. For example, mushroom growers from the UK, Holland and Poland have accessed over 90% of the EU funding available to them while CMP was only able to access approximately 25% of its entitlement. A significant number of producers have felt they had no option but to close their businesses and exit the market completely. A number of other Irish member producers have already left CMP to join UK-based producer organisations. Commenting on the legal challenge, Donal McCarthy, chief executive of CMP, said: “We have tried and failed to engage with the Department over several years to resolve this serious issue and have been left with no option but to pursue legal action. The Department’s dual responsibility is to administer the scheme to develop the sector and to police it to ensure all applicants are compliant.
“For the last five years the Department has engaged in policing which goes far beyond what is mandated by the relevant EU regulation and has paid no regard to CMP’s entitlement to EU funding and the Department’s corresponding responsibility to support sector development.”
Failure to have case admitted to Commercial Court
On Monday 13 June, the day it launched its High Court action, the plaintiff, CMP, failed in its petition in front of Justice Brian McGovern to have its case heard in the Commercial Court.
After hearing from both sides in the case, Justice McGovern, sided with the counsel for the Department of Agriculture, who claimed the case was not urgent as the plaintiff was seeking redress for payments dating back to 2011.
“This action is not just based on a 2014 payment, it dates back further than that,” he said.
Justice McGovern therefore deemed that the case was “not of sufficient urgency” to be admitted to the list of cases destined for the Commercial Court, which generally hears cases within 12 to 18 months.
As a consequence the plaintiff will be given a date for the case to be heard in the High Court, meaning it may take more than two years for the case to be heard.
CMP
Commercial Mushroom Producers is an EU-recognised fruit and vegetable producer organisation representing more than 50 mushroom grower businesses. It is one of only two producer organisations in the country. Its members had a turnover of €210m in 2014 and support around 3,000 jobs through direct and indirect employment.
CMP supplies more than 50% of all mushrooms sold in the UK retail sector, mostly grown in Cavan, Monaghan, Tipperary and the midlands counties.
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Mushroom grower warns of staff shortage as industry expands
Ireland’s largest mushroom producer group, Commercial Mushroom Producers, has launched a High Court action against the Department of Agriculture over an alleged €12m loss in funding since 2011.
The CMP case claims that due to the Department’s “incorrect application of the EU’s Fruit and Vegetable producer organisation scheme”, Irish mushroom growers have lost in excess of €12m in funding since 2011.
CMP alleges that this has resulted in a loss of employment, a stagnation of research and development investment and a loss of competitiveness to other European growers.
It says the sector “urgently needs the establishment of a new national policy framework to secure its development into the future”.
The Department of Agriculture is the competent authority responsible for administering the EU’s fruit and vegetable producer organisation scheme in Ireland. CMP says it received 93% (€5.9m) of the EU funding it was entitled to in 2010. It claims that since 2011 it has only been able to access around 25% of its entitlement, receiving just €2.4m in 2013.
We have tried and failed to engage with the Department over several years to resolve this serious issue and have been left with no option but to pursue legal action
CMP also claims that under the Department’s current approach:
The sector will continue to lose potentially €6m each year in direct funding. CMP mushroom growers have been placed at a considerable competitive disadvantage to their European counterparts. For example, mushroom growers from the UK, Holland and Poland have accessed over 90% of the EU funding available to them while CMP was only able to access approximately 25% of its entitlement. A significant number of producers have felt they had no option but to close their businesses and exit the market completely. A number of other Irish member producers have already left CMP to join UK-based producer organisations. Commenting on the legal challenge, Donal McCarthy, chief executive of CMP, said: “We have tried and failed to engage with the Department over several years to resolve this serious issue and have been left with no option but to pursue legal action. The Department’s dual responsibility is to administer the scheme to develop the sector and to police it to ensure all applicants are compliant.
“For the last five years the Department has engaged in policing which goes far beyond what is mandated by the relevant EU regulation and has paid no regard to CMP’s entitlement to EU funding and the Department’s corresponding responsibility to support sector development.”
Failure to have case admitted to Commercial Court
On Monday 13 June, the day it launched its High Court action, the plaintiff, CMP, failed in its petition in front of Justice Brian McGovern to have its case heard in the Commercial Court.
After hearing from both sides in the case, Justice McGovern, sided with the counsel for the Department of Agriculture, who claimed the case was not urgent as the plaintiff was seeking redress for payments dating back to 2011.
“This action is not just based on a 2014 payment, it dates back further than that,” he said.
Justice McGovern therefore deemed that the case was “not of sufficient urgency” to be admitted to the list of cases destined for the Commercial Court, which generally hears cases within 12 to 18 months.
As a consequence the plaintiff will be given a date for the case to be heard in the High Court, meaning it may take more than two years for the case to be heard.
CMP
Commercial Mushroom Producers is an EU-recognised fruit and vegetable producer organisation representing more than 50 mushroom grower businesses. It is one of only two producer organisations in the country. Its members had a turnover of €210m in 2014 and support around 3,000 jobs through direct and indirect employment.
CMP supplies more than 50% of all mushrooms sold in the UK retail sector, mostly grown in Cavan, Monaghan, Tipperary and the midlands counties.
Read more
Mushroom grower warns of staff shortage as industry expands
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