A MEAT company which claims it was effectively put out of business by a European ban on its innovative products has been given new hope.

A top judge today (Thursday, May 23) said he would refer the Newby Foods dispute to the European Court of Justice, in Luxembourg.

The company, based in Newby Wiske, near Northallerton, says its business was destroyed when the Food Standards Agency "keeled over" under pressure from the European Commission.

The Agency imposed a temporary moratorium on Newby producing de-sinewed meat from beef and lamb bones in April last year.

The company claims that although the FSA accepted the de-sinewed meat carried no health risks whatsoever, it allowed itself to be "bullied" by EU threats that certain British meat products could be banned from European shelves.

At a judicial review hearing in the High Court in London the company has been arguing that the regulator was wrong to “cave in”.

And after a tense hearing Mr Justice Edwards Stewart came to the company's aid when he indicated that he will send the case off for a definitive decision to be reached by the European Court of Justice. He will give written reasons for that decision at a later date.

Now the case is expected to return to the High Court in June when Newby Foods will seek an interim injunction. If granted that would allow it to continue trading pending the Luxembourg court's decision - which could take months to materialise.

Newby Foods claims the FSA’s stance on the issue has cost 40 jobs and more than £5m in wasted investment.

During the case, Mr Justice Edwards-Stewart, said he was "very sympathetic" to Newby, which has been licensed by the FSA since 2003.

The company’s counsel, Hugh Mercer QC, said the FSA's decision to "close down an industry without due process" was unlawful, as was the Commission's interpretation of EU regulations.

But Clive Lewis QC, for the FSA, insisted the regulator had acted lawfully and the decision brought the UK "into line" with the Commission's stance.

He added: "The FSA considered that if the Commission were to seek to impose safeguard measures of any description, that would have a catastrophic effect on the reputation to the UK meat industry."