The Government has moved quickly to distance itself from controversial comments directed at Fruit of the Loom by the Minister for Tourism, Sport and Recreation and Donegal TD, Dr Jim McDaid.
Government sources said that Dr McDaid had "got a bit carried away, perhaps unwisely." Speaking to The Irish Times yesterday, the Minister withdrew his criticism of the company and stressed that his reference to "fly-by-night" multinationals was not directed at Fruit of the Loom.
In a radio interview earlier Dr McDaid was highly critical of the international operations of Fruit of the Loom. Its record, in terms of sustaining jobs in the US, was "abysmal" where its management "say one thing and do another," he said.
Dr McDaid said his comments had not been directed at all of Ireland's multinational companies. "There is no doubt that Fruit of the Loom has had a commitment to Donegal and that people here have benefited from the company's presence here," he said.
Speaking on RTE's Morning Ireland yesterday about the Fruit of the Loom decision to remove three executives from the running of its Irish operations, Dr McDaid said the dispute had created great uncertainty in his Donegal constituency.
His criticism of the company was largely based on a recent editorial on Fruit of the Loom in the Wall Street Journal which highlighted the group's growing tendency to move large-scale production units from the US to cheaper locations, mainly in Mexico and the Caribbean.
He said: "I would have every reason to be concerned if the policies being pursued in the US were to be pursued here."
The Minister added, however, that while he was glad to hear that IDA Ireland had received assurances about the continuing operation of the Donegal and Derry plants, he remained concerned about the long-term future of the Irish companies.
Dr McDaid's comments will have proved embarrassing for IDA Ireland.
The IDA Ireland chief executive, Mr Kieran McGowan, said the dispute between Fruit of the Loom and three directors was an internal matter. He assured the company's 3,500 Irish workers that it would have no bearing on their jobs.
"IDA Ireland is absolutely adamant that this is a dispute the top management have with the European and US operations.
"We have been reassured and the Tanaiste has been reassured that there is no question of job losses or that the viability of the plants is in question," Mr McGowan said.
The Tanaiste, Ms Harney, is due to meet the Fruit of the Loom chief operating officer, Mr Dick Lappin, in Chicago this month. This meeting has been scheduled for some time as part of her anaiste's visit to the US to talk to existing and potential investors.
Negotiations between Fruit of the Loom and the three Irish directors who have been served with redundancy notices are continuing.
The company's Irish managing director, Mr Willie McCarter, sales director, Mr John McCarter, and finance director, Mr Seamus McEleney, have applied to the High Court for an injunction to block the company's attempt to make them redundant.
The application has been adjourned for two weeks. But it is widely expected that they may agree on an acceptable package before the matter reaches court.