Norco employees have been thrown a lifeline from the Federal Government allowing them to stay employed by the ice cream factory and continue working for the community for the next 10 weeks.

On the eve of impending of the well-publicised stand-downs, 170 employees at Norco’s Lismore ice cream factory have been informed that a bespoke financial support package from the federal government will keep them employed by the dairy cooperative for another 10 weeks, enabling time for the completion and assessment of a grant application under the Anchor Business Support Program.

The announcement follows consistent lobbying by the 100% farmer-owned cooperative and other major Lismore businesses, calling on both the state and federal governments to do more and commit more funding to help Lismore businesses recover from the floods and in turn, safeguard jobs and support the wider community.

The Norco ice cream factory did employ 240 workers pre the February 28 megaflood. So far 70 workers have found other employment leaving 170 workers a further 10 weeks to find other employment in the short term as Norco applies for the Anchor Business Support Package that, if approved, will rebuild the factory and employ 240 people once again.

Member for Lismore Janelle Saffin said, "I was really happy when I heard the news. I think Minister Watt for listening to our concerns in our discussions about extending the period of time workers had to look for jobs. There was so much uncertainty as the July 15 deadline approached. I look forward to hearing what wonderful work the employees will be doing for our community and to help other businesses."

"To ensure the future of the Norco ice cream factory, I would love $100 million in the Anchor Business Support Package and I have asked for the guidelines to be flexible so employers with less than 200 staff can apply. We have some large employers with flood damage that would benefit from that flexibility. I understand they are looking at 150, however, making it flexible will help Lismore more."

CEO Michael Hampson will be holding a press conference tomorrow morning with employees to celebrate the good news.