Progress being made in talks on pig industry closures

The Taoiseach Brian Cowen has told the Dáil that progress is being made in talks between the Government and pig-meat processors.

The two sides have been locked in negotiations for the past two days over compensation for the dioxin contamination crisis.

Processors are refusing to reopen their plants until a compensation deal is agreed. Mr Cowen said he had not given up hope of securing compensation from the European Union, even though the European Commission has effectively ruled out the move.

Mr Cowen told the Dáil today that he was "confident of achieving an outcome that will facilitate the early resumption of processing".

Thousands of jobs are hanging in the balance while the industry remains shut down.

Mr Cowen has defended the way in which the Government is dealing with the crisis.

Fine Gael leader Enda Kenny accused Mr Cowen and his colleagues of having no plan to address the fallout from the recall of Irish pork and bacon products.