Dáil Éireann díospóireacht -
Wednesday, 31 Mar 1993

Vol. 428 No. 6

Written Answers. - Difficulties of Clothing and Footwear Industries.

Jim O'Keeffe

Ceist:

113 Mr. J. O'Keeffe asked the Minister for Enterprise and Employment his views on the number of job losses to date and further projected losses in the clothing and footwear manufacturing and retail sector; and the proposals, if any, he has to reverse the trend.

Minister for Enterprise and Employment (Mr. Quinn)

The Government is aware of the ongoing difficulties which the clothing and footwear sectors are experiencing.

The difficulties facing these sectors include currency, high interest charges until recently and difficult trading conditions due to the international recession.

In an effort to alleviate the problems experienced by manufacturers due to currency problems, the Government established a £50 million Market Development Fund to assist firms whose employment and output were under threat. The clothing and footwear sectors have availed themselves of this to a significant extent.

My Department has had regular contact with the State agencies to address the problems facing these industries on an ongoing basis, taking account of their specific needs.

I am also aware that concern has been expressed about the impact of the increase in the rate of VAT on clothing and footwear announced in the budget. This is primarily a matter for my colleague Deputy Bertie Ahern, Minister for Finance, who has already informed the House as to the reasons for this on a number of occasions. In that context, I would point out that the financially responsible and balanced nature of overall budgetary policy has already contributed significantly to the downward movement in interest rates. This movement will be a major benefit, not just to the clothing and footwear industry, but to the economy as a whole.