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Council concern over £3m. damages claim Tom Kelly reports A £3M. damages claim against Mayo County Council is listed for hearing in the High Court in Dublin later this month. Two gold prospecting companies, Andaman Resources and Glencar Explorations, have issued writs against the council seeking compensation for losses they sustained while a ban on gold mining in the region was in place. The prohibition has since been found to be illegal by the High Court and this resulted in the two mining firms pursuing compensation claims for major losses. If the appeal is successful, it will have profound financial implication for the council. Members of the authority voted five years ago by a 22 to 8 majority to include in the County Development Plan a blanket prohibition against the extraction of minerals from a 300 square mile area around Clew Bay and including Croagh Patrick. That decision was taken despite expert advice to the contrary. When the decision was challenged in the High Court by the two mining companies, the council was told they had exceeded their powers by including the restriction in the plan. It cost the council over £100,000 in legal costs to defend the action. Mayo County Manager, Mr Des Mahon, opted not to appeal the verdict to the Supreme Court. Now the council are facing a claim for damages which could be as high as £3m. if the action is successful. The proceedings are scheduled to come before the High Court on Thursday, November 27th. Mr Mahon gave an updated report on the matter to members of the council at Monday's estimates meeting. Mr Johnny Mee, a member of the authority, said there would be grave implications for the council's finances if the claim was successful. There was a suggestion that the possible damages may be levied on the 22 members who voted in favour of the gold mining ban back in 1992. But, according to Mr Mee, the likelihood of that happening was remote. Mayo County Council is also involved in another major legal battle. Leading development firm, SIAC, is appealing to the Supreme Court over the decision of the council to grant the contract to Mulkearns Limited for the construction of the Ballinrobe Sewerage Scheme. |
