SWISS-based multinational food conglomerate Nestle should pay Inverell $10 million in compensation if it goes ahead with plans to sack 170 employees and leave the town by March next year, the local mayor has said.

The company has announced it is closing the Purina Supercoat pet food factory it acquired in March 2007 to concentrate its production facilities at Blayney in central western NSW.

Inverell was reeling in shock yesterday with employees, small business operators, truck drivers and welfare agencies all concerned about what the future would hold.

An emergency meeting is to be held on

Monday.

It has been called by Member for Northern Tablelands Richard Torbay and will involve the State Government, representatives of the company, members of the community and local

business leaders.

Mr Torbay met with Nestle general manager David Grant in Armidale yesterday to discuss the issues to be covered at the meeting.

It is expected to explore options to attract new business and additional jobs to the town to soften the blow.

Of the 170 employees affected, 58 are full-time workers.

Inverell mayor Cr Barry Johnston, a representative from Member for New England Tony Windsor’s office, Andrew Cleaver (Inverell Chamber of Commerce president), Inverell Purina plant manager Wes Sims, Mr Grant and Mr Torbay are expected to attend Monday’s meeting at the Inverell Council Chambers.

“I have raised the issue with the State Government and Nestle regarding contributions to a significant investment fund to start the process immediately,” Mr Torbay said.

“I have also held discussions with the Inverell Council, the Inverell Chamber of Commerce,

President Department of State and Regional Development and Mr Windsor’s office to enlist their support with this initiative.

“Workers and their families and local businesses including freight companies will be left out on a limb unless action begins now. All options and new opportunities should be explored.”

Mr Grant said his company was fully supportive of the initiative and was keen to participate in the process.

“We have up to eight months up our sleeve and I look forward to a robust discussion on the best way forward for the Inverell community at Monday’s meeting,” Inverell mayor, Cr Barry Johnson, is going into Monday’s meeting with a request for a $10 million compensation package.

“They made assurances and they benefited from grants and they’ve let us down,” Mr Johnston said.

“That’s not something we’re just going to take lightly.”

Nestle General manager, David Grant, said the decision to close the factory was based on economics.

While every effort would be made to assist the 58 permanent staff and all casual employees no assurances were ever given.

“We’ve been reviewing the business on an ongoing basis,” Mr Grant said.

He told The Leader the workforce were aware of the review process and did not seem “that shocked” by the decision.

“Maybe shocked at the timing but not the outcome,” he said.

“Clearly disappointed but not shocked.”

The same could not be said for small business owners and community leaders who have been stunned by the closure.

One of those affected is truck owner Robbie McDougall of R.C. McDougall bulk haulage.

Mr McDougall, who contracted to the factory, said yesterday the news of the closure was a body blow.

Mr Grant denied claims his company had benefited from government grants or funding.

He said that while Nestle had been pleased with the performance of the Inverell factory since acquiring it 18 months ago the company had excess production capacity at its Blayney plant.

“We have decided to transfer all Supercoat extruded product to Blayney by the end of March, 2009,” he said.

The company said in a statement it would be providing permanent staff with redundancy packages and offering financial counselling, job-seek training and career counselling to all employees.

Some redundancies are expected to take effect before the March 2009 closure date.