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Proceedings Begin Over Pork Dioxin Crisis

by 5m Editor
1 December 2009, at 8:45am

IRELAND - The County Wexford company at the centre of the pork dioxin scare last year has begun proceedings for €36 million against the company it says sold it contaminated oil.

RTE News reports that Millstream Recycling is alleged to have supplied animal feed containing harmful cancer causing chemicals and is itself being sued by 18 individuals and companies as a result of the contamination.

The contamination of pig feed in December 2008 led to the recall of all Irish pork products.

Yesterday, Millstream Recycling asked the Commercial Court to admit its proceedings against the company it says supplied oil contaminated with dioxins.

Lawyers for Millstream told Mr Justice Peter Kelly the oil 'must have been 40 years old'.

Millstream is taking the proceedings against Gerard Tierney from the Paddocks, Selandia, Newtown Park Avenue in Blackrock in Co Dublin, and Newtown Lodge Limited.

Millstream's director, Robert Hogg, in sworn documents submitted to the court, said that his company was supplied with light fuel oil by Mr Tierney between April and October 2008.

This oil was used to power a dryer to dry the pig feed.

Mr Hogg said subsequent investigations revealed this oil was grossly contaminated with dioxins including polychlorinated biphenyls (PCBs).

He said PCBs had been banned since the 1970s.

Mr Hogg said that he believed there was no legitimate explanation for the presence of PCBs in the oil supplied to him.

Mr Hogg is looking for €32 million for the claims lodged against him, more than €3 million for the loss and damage to his business and almost €700,000 for loss of profits, decontamination, recall costs and continuing losses.

The case is back before the court in January.

In separate court proceedings, Millstream has said it is insured for €6.5 million and is proposing to enter a scheme of arrangement with its creditors in which this amount would be shared among them.

Those proceedings are due back before the court on 7 December.