Norco has been granted an extension until next week to tell the state and federal governments if it will accept a $35 million grant to rebuild its flood-damaged ice cream factory in Lismore.  Key points Norco’s request for an extra $9 million to rebuild after the flood has been denied The federal government says it has already offered Norco more than $53 million in funding The dairy co-op has until next week to make a decision over the future of its Lismore ice cream factory It comes after Federal Emergency Management Minister Murray Watt today confirmed Norco’s request for additional funding had been denied.  The co-operative said the February and March floods had cost the company $142 million. Last week, the dairy giant requested an extra $9 million ” on top of the anchor business grant of $35 million ” saying it needed more money to rebuild. This came on the same day it indefinitely stood down more than 150 staff. However, the federal government has agreed to redirect to the rebuild an $11 million grant allocated to Norco before the floods under the regional growth fund. “The Albanese government understands the important role that Norco plays in Lismore, both in providing employment and identity for the local region,” Mr Watt said. Norco has previously said that unless it got the additional funding, plus the use of the $11 million regional growth funding, it would not be able to afford to rebuild, meaning 240 jobs would be permanently lost from Lismore. It has been given until 5pm on Tuesday to notify the government if it will accept the $34.7 million anchor business grant funding. “This significant offer would see more than half the money in the program go to Norco and is on top of the $8 million already provided to supplement the wages of workers over the past six months,” Mr Watt said. Representatives from the Australian Manufacturing Workers Union addressing Norco employees last week. Rural Kim Honan Community awaits decision Lismore Mayor Steve Krieg said the community was waiting on Norco’s decision about its plans to rebuild, but he understood the process took time. “I think we need to consider every option very carefully,” Cr Krieg said. “Obviously Norco is a very important part of the Lismore identity and we want to see Lismore grow and thrive into the future.” “If we need to sit down and take another week to get this decision right then I think it is the right move.” Local news direct to your inbox North Coast will deliver a wrap of the week’s news, stories and photos every Friday. Sign up to stay connected.