The Government yesterday confirmed that the Cabinet has decided to take the European Commission to the European Court of Justice over its ruling that Coillte may not continue to receive EU forestry premiums intended for farmers.

Coillte had expected up to £30.5 million (€38.7 million) in funding for the 2000-2006 period and will be forced to repay up to £3.7 million in back payments. The dispute has arisen over whether Coillte should be treated as a semi-state or private company.