Farley launches attack on Harney and IDA Ireland

Fruit of the Loom chairman and chief executive officer, Mr Bill Farley, has launched a strong attack on the Tanaiste and IDA Ireland for their handling of the company's problems.

A spokesman for Mr Farley said he was "incensed" at the public way in which negotiations between Ms Harney and officials at IDA Ireland are being conducted and their failure to offer solutions as to how the company might minimise any job losses in Donegal.

However, the Tanaiste has again urged the company to immediately clarify how many jobs will be lost at its Donegal sewing plant. The company has stressed such an announcement will be made "when it is ready to do so". Some 700 jobs in the T-shirt manufacturing jobs are expected to be cut.

Relations between both sides have soured since the break-down of a crisis meeting on Sunday night, where substantial differences emerged.

IDA Ireland is immediately seeking the repayment of around £6 million because of Fruit of the Loom's failure to meet job targets. Moreover, if, as expected, it decides to cut 700 jobs, it will also be seeking a further repayment of £5 million.

Fruit of the Loom has insisted that, while it will meet its commitments, it does not accept that its liabilities are of the order stated by IDA Ireland.

IDA Ireland sources say that their legal advice is that the liability was confirmed by their legal advisors - it has been standard practice for the authority to get parent company guarantees on grant liabilities since 1987. The IDA is understood to have accepted that restructuring is inevitable at the plant but, as in the case with any restructuring, to insist that the company meets its liabilities to the workers and to taxpayers.

The Fruit of the Loom spokesman accused the Tanaiste of "quite skillfully" using the grants issue to "completely deflect" from both her and IDA's enormous problems in attracting industry to Donegal. At the weekend meeting, the spokesman stated that at no point had either the Tanaiste or IDA Ireland offered any suggestion on how to ease the company's problems in Ireland. However, IDA sources say that they were waiting for Mr Farley to outline his plans and that he did not do so. The organisation accepts that from time to time multinationals had to restructure.

However, the Fruit of the Loom spokesman accused the Tanaiste and Mr Kieran McGowan of behaving "like two dogs in a manger. Not once did they come up with any suggestions as to how to solve the critical problem facing the company in Ireland", he said. "They sat there simply saying we have to have our money back."

However, sources close to the Tanaiste said that she had offered to appoint an arbitrator to negotiate between the two sides, but that Mr Farley had refused to take up this offer.

Mr Farley believes the company, IDA Ireland and the Government have to work as partners to find a solution but is concerned about the stand being taken by the Government, his spokesman added.

"Mr Farley could not believe the fact that the Tanaiste opened the meeting on Sunday night by telling him that she was the minority partner in Government and that this was a very difficult issue for her. The Government has given no credit to Bill Farley for the fact that he has kept the jobs for at least 18 months longer than he should have.

"During this time he has constantly listened to this Government, the previous Government and other Irish American voices. The company should at least get some acknowledgement of this and not be used as a scapegoat for IDA Ireland's inability to get other jobs for the region."

Mr Farley is also upset that the details of sensitive negotiations between himself and the parties concerns are appearing in the media, according to his spokesman.