Phil Hogan
Question:68 Mr. Hogan asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans she has to provide essential support for the textile industry in view of the recent number of job losses in this sector. [11233/00]
Written Answers. - Textile Industry Support.
Due to the nature of the world economy and Ireland's improving standard of living, Ireland is no longer a low cost labour location. As a result of this, the clothing and textile sector will continue to face the relocation of labour intensive activities to lower cost countries.
The clothing industry is in a period of great change, as the effects of a strong economy influence the economic factors underlying the sector. In recognition of this significant change I established a review group to develop a revised strategy for the sector. The review group, whose report I launched recently, comprised the Irish Clothing Manufacturers Federation, Enterprise Ireland, FÁS and my own Department.
The review group's report concluded that outsourcing is a reality in the international garment market, a reality that must be accepted, particularly in the high volume low value sector. The report identifies the many challenges facing the sector. Developing new ways of attracting and retaining people in the sector, meeting competition from lower cost countries and identifying and developing new technologies and working practices are all identified as issues that need redress. My Department is pursuing the implementation of the recommendations in the report with the industry and the State agencies. The agencies will continue to support the clothing sector but will do so in a realistic manner, recognising that activities such as outsourcing from lower cost countries are vital if the clothing industry is to survive.
The textile industry is an industry that is based on traditional strengths. The changes within the industry have been market driven. In recent years the market has been a niche one supplying top end manufacturers and designers with wool and linen products. This market still remains but customers within it have become more demanding in terms of design and finishes.
In response to these market demands, Enterprise Ireland in conjunction with the industry identified a number of areas that could be improved in design and finishing. A number of initiatives to improve these areas have been undertaken recently. They include trend forecasting twice yearly, market study visits abroad, new product development support and design improvement incentives.
Most recently, there was a joint North-South initiative involving Enterprise Ireland, the Northern Ireland Industrial Development Board, Irish Linen Guild, the International Fund for Ireland and nine companies, four from the North and five from the South. This initiative, Fabric Ireland, was launched at Premiere Vision – leading world textile show – in Paris on 2 March. The objective is to increase sales of those companies participating by 30% over two years.