The Government is being asked to ring fence the dividend it got from Bord na Mona last year to finance the redundancy package for employees at the Littleton plant.
The government has received €13m as the main share holder of the profitable company.
Fianna Fail TD Jackie Cahill has also criticised the semi-state company for not planning properly for the future of the plant before announcing they were ceasing production there.
Over 100 workers are due to lose their jobs at the briquette factory in Littleton next year.
Cahill said: “Now that redundancy negotiations are progressing between the workers and the Company, following the recent announcement to wind down the Littleton Plant, it is vitally important that the workers are treated properly. For decades people of mid Tipperary have been loyal to Bord Na Mona and it is now time that their loyalty be repaid.”