SIPTU has claimed that a new poultry processing plant for Summerhill, Co Meath, announced by the Taoiseach last month, will result in jobs being lost in a sister company based in Co Cavan, where over 300 people are employed by the Carton Group's hatchery and poultry processing plant in Shercock.

The new company, Manor Foods, is BES assisted and will be locating on a new site. Announcing the expansion, Mr Bruton said the project is being supported by Forbairt and Feoga grant funding of £1.026 million. Mr Bruton also said it would involve new investment totalling £3.1 million and would increase the Carton Group's employment to 573 over the next three years.

The move prompted an angry response from SIPTU's Cavan secretary, Mr Patrick McKiernan, who said it would result in job displacement. "This is barefaced State aid assisting a company to relocate jobs into another county," he said. A number of union members and workers in the Shercock plant have expressed their concern that the 28 jobs losses being sought by the company and the down grading of 10 full time jobs is the beginning of the end. Carton is the main employer in the Cavan village.

The chief executive of the group, Mr Padraig Cribben, said that while the Carton Group owns the Shercock plant, it is not the main shareholder in the Summerhill development.

"It is partly funded by BES monies. We are currently in discussion with SIPTU and the issues involved have been referred by them to the Labour Relations Commission."

"We have outlined to the union and workers the reason why this development is taking place. I would dismiss rumours of political reasons and would not get involved with them."

In relation to concerns that this is the start of the down grading of the Shercock operation he said no such plans are being muted.