Dairy giant Norco says more than 170 employees will be stood down in flood ravaged Lismore and more jobs remain at risk despite a $35 million federal government grant.
Norco's ice cream factory, which sits on the banks of the Wilsons River, was smashed by floodwaters early this year.
The repair bill was initially estimated at $70 million.
The co-op has now been offered more than half of the total funding pool available under the Anchor Business Support Grants Program.
Norco declined to be interviewed by the ABC today but in a statement said the offer did not support any of the three project options submitted as part of its application.
"We estimate the total cost of the flood to Norco to be $141.8 million," it said.
"This includes restoring our facilities to how they were pre-floods, the cost of clean-up and damage, inventory and workforce costs, as well as further flood mitigation works."
The statement said the government grant "falls well short" of what is required and that if an alternative solution cannot be found, "it's likely that 240 jobs will be permanently lost from the Lismore community".
Mass sacking to proceed
Norco has confirmed that despite the $34 million rescue package, they will go ahead with plans to stand down the 170 ice cream factory staff next Friday.
Management told staff all major financial decisions needed to be fully ratified by the board before a formal announcement could be made regarding the factory's future.
It said the government's bespoke financial wage support funding ended on September 23.
Brad Pidgeon from the Australian Manufacturing Workers Union said it was seeking urgent meetings with Norco management.
"We have requested a meeting with Norco next Thursday, even though it is a public holiday," he said.
Mr Pidgeon said there were also plans to hold a mass meeting for all workers the following day.
Backing big business
The Anchor Business scheme is worth almost $60 million, with about three quarters of that coming from the Commonwealth, and the NSW government tipping in $15 million.
It was designed to ensure some of the region's larger employers stayed in the Northern Rivers.
Norco was an early beneficiary, receiving two tranches of Commonwealth funding that allowed it to keep paying factory staff.
It received $5.7 million in March, and further funding was provided in July to allow 170 employees to be retained for a further 10 weeks.
That funding is due to run out at the end of next week.
Staff 'anxious'
The Nationals' federal member for Page, Kevin Hogan, lobbied for funding to assist Norco in the weeks following the floods.
He would not be drawn on what today's funding offer might mean for the co-op's future in Lismore.
"I certainly don't want to pre-empt what their decision is or where they're at," Mr Hogan said.
"But if any package, not just this one, if more money is needed to go into that package or any other, then that needs to happen."
Mr Hogan said he was concerned for the future of the 170 ice-cream factory staff still employed by Norco, many of whom were temporarily working at other local organisations.
"I'm sure they feel quite anxious about their livelihoods and their jobs as they should," he said.
"But I don't want to pre-empt Norco's response because I haven't officially spoken to them.".
Other successful applicants have welcomed the funding announcement.
Sunshine Sugar CEO Chris Connors said the $12.6 million in government funding had come at a critical time and would help to cover a shortfall in insurance cover.
"We need these funds to keep ourselves viable," he said.
The company has already spent $44 million on repairing all three mills damaged in flood waters.
"We have spent the money and it is pretty tight, but with this grant now, things are going to be much easier for us," Mr Connors said.
Other organisations offered support, including North Coast Petroleum ($4 million), the Williams Group Australia ($3.6 million), Multitask Human Resource Foundation ($3.3 million) and welfare group Social Futures ($900,000).
The successful applicants have 14 days to respond to the offers.
The federal Minister for Emergency Management Murray Watt, and the NSW Deputy Premier Paul Toole, declined interview requests today.
