The north-west regional president of IBEC, Mr Peter Mulrine, welcomed the announcement by the Tanaiste of a jobs task force for Donegal, but called for further steps to redress what he described as the region's "economic imbalance".

"There must be a political commitment to retain objective one status for the north-west and for the provision of additional supports to address the region's infrastructural problems, especially air access to the region," he said.

Meanwhile, SIPTU representatives and Fruit of the Loom management are due to meet today to discuss the ongoing situation at the plant. SIPTU's regional secretary Mr George Hunter called on commentators not to talk up the crisis.

"The company faces a difficult situation, no less so its workers. However, apart from 53 jobs which we have been advised are definitely going, we have not been advised of any other job cuts as of now," he said.

Mr Hunter said SIPTU expected the company to advise it in advance if there was going to be any bad news and to provide an opportunity for negotiations.