Dáil Éireann díospóireacht -
Tuesday, 9 Dec 1997

Vol. 484 No. 3

Written Answers. - Clothing Industry.

Bernard J. Durkan

Ceist:

118 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment whether she has satisfied herself at the current employment levels in the clothing industry and, particularly, the manufacture of women's and men's clothing; if her attention has been drawn to the number of manufacturers currently operating in the country; if her attention has further been drawn to the needs of the industry as set out by the manufacturers involved, the proposals, if any, she has to address these issues; and if she will make a statement on the matter. [22313/97]

Tánaiste and Minister for Enterprise, Trade and Employment (Miss Harney)

At the end of December 1996, 12,600 people were employed in the Irish clothing sector, compared with 13,700 at the end of December 1995. This drop in employment is naturally disappointing. The Irish Clothing Manufacturers Federation has recently acknowledged that the clothing sector in Ireland is in a transitional period, coming from a traditional low cost base through to a higher cost economy. This restructuring of the industry is vital in order to have a competitive future.

Job losses arising from restructuring are an inevitable part of the dynamic process of industrial development. The clothing sector in Ireland mirrors the experience in many other EU countries with the gradual liberalisation of international trade and with commodity products being increasingly produced in low cost countries.

The key challenge facing the industry is to find the optimum balance between adding value of Irish manufactured garments and sub-contracting the manufacture of certain garments, where Ireland cannot be cost competitive, to lower cost countries. My Department and the industrial development agencies, in co-operation with the industry, have made concerted efforts to assist the sector to restructure and a number of initiatives have been put in place in recent years. The most recent strategy agreed for the sector is entitled "Securing the Future". It represents a highly significant and realistic effort to facilitate the process of building strong clothing companies capable of competing on both domestic and international markets, thereby reducing the incidence of company closure and associated job losses. Many companies have been successful in moving into higher value-added market segments.

A review of this strategy is currently being undertaken by my Department, Forbairt and the Irish Clothing Manufacturers Federation. This review is intended to give the industry a stronger focus to its competitive drive and update it on the various measures available to assist it in securing a long-term viable future.