Irish pork payout seen lower than expected

Ireland's compensation bill for the pork contamination crisis is set to be up to EUR70 million (US$87.49 million) lower than originally estimated.

The discovery of dioxins above safety limits led to all Irish pork products being temporarily withdrawn from supermarket shelves across the world in December 2008.

According to the Dail Public Accounts Committee, the government had set aside EUR200 million (US$250 million) for compensating pork producers whose products were destroyed - but now would have to pay out much less.

Department of Agriculture secretary-general Tom Moran said the final cost was likely to be in the region of EUR140-150 million (US$174.99-187.52 million) - with EUR20 million (US$25 million) of this sum coming from EU funds.

Moran said that the department was leaving no stone unturned in its efforts to recover money from pig meat producers whose losses were partly covered by their insurance policies.

However, he said he could not comment on whether the state would be able to recover money from the animal feed processing plant at the centre of the contamination scare, because that was the subject of legal action.