The Irish minister for finance, Charlie McCreevy, told the Irish Parliament that the commissioners were investigating the circumstances surrounding the application, issue and use of General Agreement on Tariffs and Trade (Gatt) licences to import South American beef at a reduced rate of duty. Officials will try and establish whether there is any connection between the 16 companies that have obtained the licences.

It is illegal for connected companies - including companies with common shareholders or which have common management or premises - to apply for more than one beef importation licence. The department of agriculture told the EU Commission last year that there were no connections between the companies.

The EU's revenue commissioners are also investigating the matter after meeting representatives of Olaf (Office Europeen de Lutte Anti-Fraude) in February last year. According to Ireland's Sunday Business Post, Olaf has not involved the department of Agriculture in its investigation.

The allegations could represent a blow to the reputation of the Irish beef industry, which has picked itself up three years after the BSE disaster that rocked the EU beef industry. At the start of 2004, Ireland had 10 export markets for beef - a far cry from the 21 markets available in 1996 but better than the six markets of early 2001.