Fruit of Loom outlook worsens

The breakdown in relations between the Tanaiste, Ms Harney, IDA Ireland and Fruit of the Loom chairman and chief executive officer, Mr Bill Farley, has made the outlook for job losses in Donegal "more negative", he said last night.

Speaking to The Irish Times Mr Farley said he would like to see IDA Ireland "show some flexibility" and work in a spirit of co-operation with the company in its current difficulties.

"I am concerned as to why the focus is on the grants. This will be decided at some point, even if it gets to a court of law. The focus should be on what we can do to minimise the job losses," he said. Mr Farley added that while he had enjoyed a good relationship with Ms Harney and IDA Ireland officials over the past year, he was surprised at the tone of their weekend meeting.

"The issue seems to be so politically charged. I'm a businessman representing a large company and a lot of shareholders. I have to act in their best interests. It shouldn't be about scoring debate points, it's about people's lives and jobs."

Mr Farley stressed that he was "sensitive" to the concerns of the workers in Donegal.

No future meetings have been arranged between the company and IDA Ireland. The Tanaiste has offered the services of an arbitrator to break the deadlock, but Mr Farley has rejected that offer. He said he wanted to negotiate directly with IDA Ireland.

Ms Harney defended her tactics, saying her aim had been to maximise jobs and she had always made this clear to Mr Farley. She added that she was open to exploring any options that would resolve the issue. "It is important that we pointed this out to the company so that when they are considering their options they know exactly what their commitments are, but our attitude has always been about seeking to maximise employment," she said.

Regarding the repayment of grants, she said this was "legally enforceable" and that she and the IDA had been very surprised that it had arisen as an issue. Ms Harney and the IDA contend that Fruit of the Loom owes £6 million in grant repayments for failing to achieve certain job targets and if there are redundancies they will owe a further £5 million. The amounts are being disputed by the company which said it obtained legal advice. It is understood the company's liabilities in relation to repayment of grants to IDA Ireland, where job targets were not met, were outlined by the previous Government..