Deal on pig plants near to being finalised

TALKS: THE GOVERNMENT and pig processors were last night attempting to finalise a package that would see the reopening of the…

TALKS:THE GOVERNMENT and pig processors were last night attempting to finalise a package that would see the reopening of the country's pork plants, probably on Friday.

The sides had been in negotiation since Monday after member factories of the Irish Association of Pigmeat Processors refused to reopen until they had received an assurance of financial assistance for losses.

All of the major pig processing plants had closed down and Siptu reported 2,000 of its members were out of work by yesterday and that they were facing an uncertain future.

However, about 100 small abattoirs across the State were operating and slaughtering pigs from farms where the owners could prove to the health authorities no link with contaminated feed from the Millstream Recycle facility in Co Carlow.

READ MORE

Late last evening sources close to the talks, sessions of which have been led by Taoiseach Brian Cowen, said the plants were looking for an indemnity fund to protect them from a claim of reckless trading.

Since the weekend they have been claiming its members are not in a position to resume slaughtering until the cost implications arising from the Government decision on a pigmeat recall are addressed.

Their bottom line was that emergency financial assistance was required from the Government immediately because the processors had already lost up to €200 million because of the recall.

It is understood a financial framework was agreed between the sides but the processors wanted all claims against them passed on and processed and paid by the State which it holds responsible for the closure of the industry.

The processors went in with an opening demand on Monday night for €200 million upfront and the Irish Farmers' Association, representing the pig farmers, sought an additional €8 million.

This, according to one of the negotiating team, "went down like a lead sinker" and the talks almost broke down by 11pm, when the sides agreed to adjourn until Tuesday morning.

Since then there has been steady progress with the State offering to buy back recalled product and the easing of the controls on product which had not been exposed to contaminated feed but produced since September 1st, when the contamination is thought to have started.