Tanaiste pledges ' fair' IFI redundancies

The Tánaiste pledged in the Dáil that the 620 workers losing their jobs at Irish Fertilizer Industries (IFI) would receive "reasonable and fair" redundancy payments.

Ms Harney said it would be a matter for the liquidator and the employees and their representatives. "I have discussed, on a number of occasions, with the other shareholder [ICI] the need to ringfence a sum of money and to make sure that the workers got a reasonable and fair redundancy. And that remains the position."

Earlier, the Labour leader, Mr Ruairí Quinn, pressed the Taoiseach to reform the law relating to redundancy payments. "Will the Taoiseach do something real instead of shedding crocodile tears?" The Fine Gael leader, Mr Enda Kenny, said that half a week's wages in compensation for those aged under 41 years, and one week's pay in respect of each year's service for those aged over 41 years, was inadequate, given the years of service diligently provided by workers for the cause of their employers.

Mr Joe Higgins (Socialist Party, Dublin West) said Mr Ahern should intervene immediately "to guarantee a massively increased level of redundancy payments to all workers who are being thrown out of their jobs by employers closing firms."

Mr Ahern said that Ms Harney had completed a review of the statutory redundancy scheme and a report was before the Government this week. "The social partners have made it clear already that this is a priority area for them in the talks on a new agreement. We are committed to improving the scheme, which is dated and deficient." Ms Harney said it was a matter of extreme disappointment that, despite the efforts of so many involved, it had not been possible to find a solution to the severe financial difficulties at IFI.

"Clearly, this will be devastating news for the workforce, their families and for the local communities involved. I have already taken steps immediately to ensure that everything possible is done to assist those concerned to find alternative employment as quickly as possible. FÁS will immediately be looking at what needs to be done in Cork and Arklow, with the priority being to provide whatever retraining might be necessary."

She added that the joint shareholders had been very supportive of the company, including the provision of €34 million two years ago. "Indeed, the value of the exchequer support for NET and IFI has amounted to €750 million in present-day terms."

Ms Harney and Mr Ahern came under sustained Opposition pressure at various times in the House yesterday, as deputies demanded Government action on the loss of more than 600 jobs. A Government backbencher, Mr Ned O'Keeffe (FF, Cork East) said the "workers have been thrown in the waste heap".

Mr Ahern said what had happened was a tragedy for the workers. "Unfortunately, it did not prove possible to produce a viability plan and, in the face of continued mounting losses, there was no alternative in the view of the board." Mr Higgins said it was a scandal that €188 million was paid in interest to the banks over a 12-year period on borrowings to €164 million by NET when it should have been used for reinvestment and diversification in IFI.