The Malta Independent 25 April 2024, Thursday
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Dairy producers file court case against government after contract was breached

Therese Bonnici Friday, 22 May 2015, 13:00 Last update: about 10 years ago

A group of dairy producers have filed a court case against the government after they did not receive the amount they had been contractually promised to upgrade their farms.

The farmers had heavily invested in their farms, after they signed agreements stating that they will be receiving funds through the EU's Animal Housing Scheme to cover 50% of the capital investment. 

But shortly after the election in March 2013, the farmers were informed that funds were not available and that the funds they were promised were being cut down. One farmer promised €75,700 was told he would only receive €21,000, while another promised €28,000 was told he was eligible for only €9,000. 

The farmers had applied for funds through The Dairy Restructuring Aid - Animal Housing Scheme 2002-2008, which was to cover up to half of expenses to develop their farms. After their applications were accepted, they invested large sums to upgrade their farms in accordance to the scheme's guidelines.

A contract was signed in 2013, but shortly after, a board appointed to revise the contract informed them the amounts received would be much lower. 

The case was filed against Parliamentary secretary for Agriculture and Animal Rights, Roderick Galdes, Environment Minister Leo Brincat and the director of Agriculture Justin Zahra. 

They are requesting the court to declare that their fundamental human right to a fair trial had been breached, that the decision taken about the promised funds was ultra vires and that the basic principles of natural justice had not been respected. They are also claiming abuse of power and breach of contract.   

Lawyers Jason Azzopardi and Kris Busietta signed the writ. 

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