Business leaders in Mitchelstown yesterday expressed disappointment at the failure of Cork County Council to obtain an interim injunction preventing co-op giant Dairygold from going ahead with the planned transfer of its administration offices from north Cork to Cork city.

Mitchelstown Business Association chairman, Mr Tony Lewis declined to comment on the specifics of the case but reiterated his belief that Dairygold should not proceed with its move of 80 administration staff from north Cork to the Cork Airport Business Park.

"The courts have to do what they have to do and we respect that, but looking at Dairygold's position on this, we believe it's an absolute disgrace that it's come to this - that a rural company is moving its administration and abandoning its heartland in this manner. And it's even more disgraceful that they are entering into clear conflict with the planning authority, clear conflict with community, and clear conflict with their workers, who have worked so hard and so loyally for so many years."

Mr Lewis was speaking after Mr Justice Quirke refused an application by Cork County Council for an interim injunction seeking to prevent Dairygold from going ahead with the move of its administration staff to the Cork Airport Business Park.

Counsel for Cork County Council, Mr David Holland, SC, had argued that such a move would constitute a change of use and a breach of the planning permission that attached to the business park, which was owned by private developers and was supposed to attract new enterprises from abroad. It was not designed to enable existing industry to relocate while the planning permission granted was for internationally trading services, he said.

Dairygold did not intend to carry on any international trading services as they would not be trading their services at all because they traded in goods. Dairygold was not a services enterprise but rather a manufacturing enterprise, said Mr Holland.

Dairygold's counsel, Mr Eamon Galligan, SC, said the company had, in the past week, moved its entire technology equipment to the business park building. The owner of the building had not been notified of the legal proceedings, he added.

Mr Justice Quirke said the High Court generally approached interim injunctions with caution. It was not an appropriate case for an interim injunction and he returned it to January 24th, but he cautioned the co-op that, if it moved before then, it would do so "at their own peril".

Afterwards, a Dairygold spokesman welcomed Mr Justice Quirke's decision and said the company remained confident that its proposed move was in accordance with the planning permission of the Cork Airport Business Park.

"We're very confident of our legal advice and of a successful outcome to the case - we believe that we are legally entitled to operate our head office administration from Cork Airport Business Park and we will be doing so as planned from Monday next," he said.