QC: RHI claimants admitted subsidy let them cut prices

Tony McGleenan QC highlighted comments by one of the members of the Renewable Heat Association Northern Ireland (RHANI), which is taking the case, when she appeared before MLAs in January.

Eilane Shaw, who was speaking on behalf of mushroom growers, told MLAs that 90% of mushroom farmers in Northern Ireland had installed biomass RHI boilers.

She said: “This investment reduced our growing costs by 4%, which was a substantial margin. That has been critical to allow our growers to remain competitive and compete with the Polish mushrooms that are being imported.”

That, Mr McGleenan said, was a prime example of what the scheme had not been designed to do. He said that it showed “the potential for market distortion through state aid” and that the scheme was never envisaged as a way to “allow producers to drop their prices”.

He added: “There are other sectors – poultry, other industrial sectors which may be enjoying a similar advantage”.

He said that presented “multiple risks” to the department which could be found in breach of EU law.

The judge interjected to say that when the law was changed in January the key factor cited was the cost to the public purse, and state aid “wasn’t a major factor in their thinking”.

The QC said that it was a factor in their thinking, even if not publicly stated.

The judge responded that it “wasn’t front and centre of the minister’s mind” or the Assembly’s mind, to which Mr McGleenan responded that it was “certainly an issue”.