Cost-cutting proposals aimed at saving 600 jobs at Irish Fertilizer Industries (IFI) will be put to the Tánaiste, Ms Harney, at a meeting today. The future of the company's three plants, in Cork, Arklow and Belfast, is under threat due to the depressed state of the fertilizer market.
Management of the company will outline a number of options open to it at today's meeting with Ms Harney, who is also Minister for Enterprise, Trade and Employment.
Unions representing workers at the three plants yesterday expressed "grave concern" that a business plan for the company, which is jointly owned by the State and chemical company ICI, would be rejected by the Tánaiste.
A request by the company in July for a €25 million cash injection from its two shareholders was refused.
Ms Harney, however, last week told a union delegation led by ICTU general secretary Mr David Begg that the Government would consider supporting a business plan for the company, provided it was viable.
In a statement yesterday on behalf of the IFI unions, Mr Noel Dowling of SIPTU said it would be a "strategic disaster" for the State to allow the company to close. If that happened, the Republic would be the only country in Europe to be totally reliant on imported fertilizer.
Mr Dowling said a viability plan to be put to Ms Harney today was supported by workers in the company. It proposed to reduce costs by €9 million next year, in addition to a €22 million reduction previously proposed.
Staff, he said, were willing to make "a major financial contribution" towards cost reduction in the company.
"The viability plan now on the table will fully offset the negative impact of a 15 per cent downturn in fertilizer prices and, furthermore, ensure that even if prices do not recover in 2003, the shareholders will get back the modest financial support now required," he said.
A spokesman for Ms Harney said the State had given €34 million to the company in the past two years and, overall, had provided funding of €750 million in today's terms.
Further funding could only be provided if a business plan was shown to be viable, he said.
Mr Dowling said closure of the company would be "devastating", particularly given the age profile of the staff, who had an average 21 years' service.
He called on farmers and workers to mount a united campaign to persuade the Government to " act immediately to assist IFI in what is likely to prove to be a short-term crisis".
