The federal government has stepped in to save jobs at a flood-ravaged ice-cream factory in Lismore a day before 170 workers were due to be stood down.
The Norco ice-cream factory was severely damaged by catastrophic floods in February, and the dairy co-operative's farmer members are unable to cover workforce costs while it is out of action.
An initial emergency package was due to run out on Friday, but Emergency Management Minister Murray Watt announced a $2.7 million support package for the factory on Thursday afternoon.
The 10-week package gives Norco enough time to apply for further funding from a $59.3 million business support program, set up to help employers in flood-ravaged parts of the NSW Northern Rivers region rebuild.
Norco chief executive Michael Hampson said it was a relief to break the news to 170 workers the day before they were due to be stood down.
"We hope this represents the first step in delivering greater funding outcomes for the region in order to drive a business-led recovery," he said.
There had been 240 workers awaiting news of their future, but some have moved on to other jobs.
Mr Watt said it would take time for the factory to establish a long-term plan because of the extent of the flood damage.
"This short-term financial relief also means the community, which had already been through great turmoil this year, isn't further impacted by losing one of its major employers," he said.
Under the new funding agreement, factory workers who are not part of community clean-up efforts can work for other Northern Rivers businesses to address workforce shortages in the region.
Norco is one of several major employers to call for the business support program to be doubled, saying the existing funding will not support a full economic recovery.
The initiative is majority-funded by the federal government, but delivered by the NSW state government.
Mr Hampson said rebuilding the Norco factory would depend on the level of financial support offered by the governments.
"Norco is ready and our staff are ready. I have a renewed sense of optimism for the future of the facility and we look forward to the day we celebrate its reopening," he said.
