FARMERS claiming they were unaware they had to reapply for a special milk quota within a time limit yesterday began a High Court action against the State and the Minister for Agriculture.
Mr James O'Reilly SC, for the farmers, said his clients' predecessors were dairy producers who entered into two EC schemes in the late 1970s and early 1980s.
In return for partial compensation for income loss, their predecessors undertook not to produce milk for four years in the case of one scheme and five years in the other.
The EC milk quota regulations, effective from April 1984, confined milk production in the State by reference to milk production in 1983. As the predecessors in title had not produced any milk during 1983 they were not entitled to a milk quota.
Mr O'Reilly said a European Court of Justice decision held that farmers who entered into the two schemes could expect to return to milk production at the end of those schemes and that the milk quota regulations had frustrated their expectations.
As a result the EC introduced a regulation in 1989, and each plaintiff or someone acting on behalf of their predecessor in title applied for the special (SLOM) quota but were refused.
Following another Court of Justice hearing, the Minister for Agriculture decided to implement new regulations in August 1991. The plaintiffs were unaware of their entitlements as they saw no notice relating to the scheme. They did not re-submit applications forms and were deemed ineligible.
The farmers in their statement of claim allege the Minister did not adopt fair procedures and failed to notify them of their entitlements. They sought an order directing the Minister to allocate a quota to them and damages.
The State and Minister denied the farmers' claims or that they were in breach of Community law. They denied the farmers would have been entitled to the special quota under the 1991 regulations even if they had applied in time or that they had suffered damage.
The hearing continues before Mr Justice Barron today.