6 January 2000

 

SIR REG EMPEY COMMENTS ON REDUNDANCIES IN CLOTHING INDUSTRY

Sir Reg Empey, Minister for Enterprise, Trade and Investment has today commented on the recent news of job losses in the clothing industry, particularly at Hawkes Bay in Londonderry and Newtownards and at Savile Row in Coleraine.

The Minister said he deeply regretted the job losses.

"Job losses in any sector are very regrettable, but particularly in the local clothing industry which has suffered recently and my sympathy goes to all those affected.

"There has been a declining trend in employment in the textiles and clothing industry here over a number of years where the overall percentage of manufacturing jobs in this industry is more than twice the European Union average.

"However, this has been punctuated by periods of up-turn and sharper down-turns against an overall improving employment level in Northern Ireland.

"In recent months the downtrend in the clothing sector has been sharpened by the specific difficulties at Marks & Spencer and disappointing sales levels more generally on the UK High Street.

"These factors are particularly relevant in the case of Hawkes Bay whose customer base is mainly in the UK.

"The impact of competition from imports from low-cost economies continues to present a formidable challenge to local companies.

"Opportunities in the clothing sector lie mainly in added value products and customer services. Hawkes Bay has been in discussion with IDB about an investment programme to develop brand recognition, high quality contract manufacturing and customer service which would move its product range up market where overseas competition is less dominant.

"These discussions were continuing in the period immediately before Christmas and IDB was not advised of any imminent redundancies.

"IDB’s strategy in support of the industry is to encourage the development of competitive business which, through innovative management, product differentiation and the meeting of customer needs, enables these companies to exploit market opportunities, with special focus on growing export business."