Dáil Éireann debate -
Thursday, 15 Feb 1990

Vol. 395 No. 8

Written Answers. - Clothing Industry.

Seán Barrett

Question:

62 Mr. S. Barrett asked the Minister for Industry and Commerce if he has any proposals to assist the clothing industry with a view to protecting jobs at present under threat as a result of improvement in exchange rates, higher inflation and higher interest rates.

Minister for Industry and Commerce (Mr. O'Malley)

A wide range of measures to assist the clothing industry are in place and are being implemented on an ongoing basis to address the weaknesses identified in the sector, which include lack of scale, inadequate management skill, lack of attention to marketing and lack of finance. The measures in place include financial packages with increased emphasis on State support for marketing and technology; marketing initiatives, home and export; company development planning; training programmes, etc., and involve the State agencies working very closely with the sector. Incentive packages are structured to meet the agreed strategic development needs of companies with more emphasis on management development and greater support for strategic market led initiatives.

Undoubtedly, the improved exchange rate vis-à-vis the UK, our main market, has impacted on the clothing industry together with the slow down in consumer spending in the UK. However, while these developments, which are largely outside our control, have adversely affected our competitiveness, it must be acknowledged that, despite recent increases in our interest and inflation rates, they continue to be considerably lower than those of our main competitors.

The measures in place to assist the industry are continually being refined in the light of evolving trade developments. The major challenges facing the Irish clothing industry in the future are the completion of the internal market in 1992 and the longer term phasing out of the multifibre arrangement (MFA).

The clothing industry must prepare itself to meet the challenges ahead and the increased competition from low cost sources by increasing its competitiveness and developing its export markets. In this regard I want to stress that while some companies in the sector are experiencing difficulties there are many successful ones with significant growth potential. I am confident that the industry can meet the challenges ahead with the assistance of the strategies being pursued by the State agencies.

While the support agencies play an important role in helping the industry to develop and expand, much of the initiative rests with the industry itself to exploit new markets and to be competitive on the home market.