THE GOVERNMENT is to seek EU financial assistance for a compensation package for the pig industry which yesterday laid off more than 1,000 workers because of the dioxin scare.
Taoiseach Brian Cowen chaired negotiations last night to resolve the deepening crisis caused by the recall of all Irish pork products after the weekend discovery of potentially-dangerous dioxins, known as PCBs, in pigmeat.
The talks at the Department of Agriculture adjourned shortly after 10pm. A department spokesman said "some progress" had been made, and the talks would resume this morning.
Pig processors and farmers attended the negotiations to seek compensation for losses suffered.
Mr Cowen, speaking during a break in the talks, said the Government would be looking for EU funding or co-funding for a compensation package.
"The purpose of what we are discussing is to create the conditions so that processing can be resumed."
He expressed the hope that a package could be devised that would reflect the cost of removing and destroying product and the destruction of pigs on the farms involved.
Pig processors had yesterday refused to reopen their slaughtering lines until compensated for the loss of trade caused by the recall. They demanded that the Government compensate them by buying up returned product worth at least €200 million.
Their decision to lay off hundreds of workers and put others on protective notice increased pressure on the Government to reach a settlement for losses the industry estimated could run to €500 million when lost overseas markets were taken into account.
Siptu, which represents large numbers of workers across the sector, said almost 850 of its members had been laid off by Rosderra Meats in Edenderry, Clara, Roscrea and Jamestown; 140 by McCarrens in Cavan, 50 by Feldhuse in Clones, and 79 by Callan Bacon in Co Kilkenny.
A further 240 workers were to be laid off by Queally Pigs in Waterford today, the union said.
The Irish Association of Pigmeat Processors said its members were not in a position to resume slaughtering until the financial cost implications arising from the Government decision on the pigmeat recall were addressed.
Mr Cowen said the recall of pork products had taken place on the basis of upholding the reputation of the Irish food industry and our export markets in particular.
The talks last night took place against the background of a breakthrough in the investigation into the source of contaminated pig feed,
A press briefing in Dublin was told "inappropriate" oil was used in a burner used in the heating process of waste food at Millstream Recycling in Co Carlow, which was used on 10 pig and 38 beef farms.
Senior Department of Agriculture inspector Dermot Ryan said the Environment Protection Agency had confirmed the company did not have a licence to use the oil used in this process.
"In such an establishment you are required to use, by law, the appropriate oil. We have established that the oil being used was not appropriate for this type of operation," Mr Ryan said.
He said the EPA was inspecting similar plants in the country to ensure they were using the proper oil to heat-treat waste food.
Chief veterinary officer of the Department of Agriculture Paddy Rogan said plans were being drawn up to slaughter and destroy 100,000 pigs which were being held on the 10 pig farms on which contaminated feed was used.
He also said tests from cattle on 38 cattle farms which had also used the contaminated material were not yet available.
Food Safety Authority of Ireland deputy chief executive Alan Reilly said the European Commission had sought an opinion on the likely health effects of the dioxin contamination.
Dr Patrick Wall, former head of the European Food Safety Authority, said the recall of Irish pork products was "an economic tragedy rather than a public health issue".