Unions and management at the Ispat steel plant in Cork meet today to see if the 400 jobs at the plant can yet be saved. The Tanaiste, Ms Harney, has said she will seek clarification from the parent company, Ispat International, in London on Friday next.

The union/management talks in Cork are seen as the last chance remaining of saving the Haulbowline steel plant, which has been owned by the Indian company since 1995. They will be chaired by Mr Kevin Foley of the Labour Relations Commission.

Mr Joe O'Flynn, SIPTU regional branch secretary, said yesterday the £2.9 million (€3.68 million), 21-month savings package, which the Ispat unions had put to the company before last week's closure, offered a real prospect of allowing the plant to continue in Cork.

He said it appeared that the "significant and unprecedented" gesture by the 400 Ispat workers had not been clearly understood by management. Today's talks, he added, were aimed at bringing home to Ispat how important the plant was to the Cork harbour area.

Ms Harney said that while she had sought a meeting with Ispat International in London, nothing had been confirmed as yet. She said she was anxious to discuss the future of the Cork plant with senior officials in London "to see if we can rescue as much of Ispat as possible".

The way Ispat had abruptly announced the closure of the plant without giving the required one month's notice was "unusual", Ms Harney said, but she did not want to get bogged down in technicalities when the most pressing issue was to see if the plant could be saved.

The Tanaiste ruled out further Government funding for the Cork steel plant, which had received well over £100 million from the Exchequer in its long and troubled history prior to the Ispat take-over from Irish Steel. In any case, EU law would prevent financial assistance from the State.

Environmental concerns would have to be high on the agenda if the plant continued to operate, Ms Harney said. She said that, under the sale arrangement with Ispat made by the State in 1995, £2.6 million had been earmarked for remedial work at the plant.

According to Ispat, losses at the plant are running at £750,000 a month. Prior to the closure announcement, workers had been asked to accept a 10 per cent wage cut, a ban on overtime and new production targets.

The unions were preparing a response to the demands when management closed the plant.