SMALL farmers who took part in a farm development scheme during the 1980s are entitled to claim compensation from the State following the Minister for Agriculture's failure to give them increased milk quotas, the Supreme Court ruled yesterday.
On Tuesday, the court upheld an appeal by the Milk Quota Group against a High Court decision rejecting their claims.
The Supreme Court held that the farmers, having incurred heavy expenditure, found they would not get an outlet for the sale of their milk which they expected were led to believe they would.
Mr Justice Barrington said the Minister had made three decisions, none of which he was entitled in law to make in the circumstances prevailing in the Republic in 1984.
He had divided the national milk quota between the dairies and co-ops, decided not to create a national milk reserve and decided to make provision for the development farmers out of what became known as "flexi milk".
Flexi milk consisted of openings for the purchase of milk which might become available in a co-op because a producer had gone out of production or had failed to fulfil his quota. It was found that under EC rules this was not allowed.
Yesterday the Chief Justice, Mr Justice Hamilton, said the court had decided to send the proceedings back to the High Court so that that court could assess the amount of damages suffered by any of the persons who took the action as a result of the mistake in law by the Minister.
The court also made an order providing for the group's legal costs in both the Supreme and High Courts but made no order in respect of proceedings brought in the European Court of Justice.
Afterwards Mr David Thompson, of Cappamore, Co Limerick, chairman of the Milk Quota Action Group, said they had been conducting their legal battle for to years.
Some members had had to sell furniture, others had sold their farms and there had been a case where a bank's eviction order had been served on a member on Christmas Eve, he added.
"Many of these people," said Mr Thompson, "have been through incredible hardship in the intervening period. At last we have found justice."
. Agriculture industry sources said last night that upwards of 500 farmers may benefit as a result of the court's ruling.