This snapshot taken on 26/07/2008, shows web content selected for preservation by The National Archives. External links, forms and search boxes may not work in archived websites.
The Rt. Hon. Baroness Symons of Vernham DeanTextile Institute Annual Parliamentary Lunch |
 |
|
| (Click picture for biography) | |
Let me start by saying thank you to Lord Haskel for inviting me to address you here today in my capacity as Minister for International Trade and Investment. I would also like to congratulate Lord Haskel on his appointment as the new World President of the Textile Institute. And of course, the textile and clothing industry has had to endure enormous upheaval in recent years. Globalisation has placed increasing pressure on clothing, textiles and footwear firms to continually raise your game to remain competitive and retain your market share. Despite all the difficulties, the UK textile, clothing and footwear industry contributed 0.8% of UK GDP in the year 2000. The industry employs around a quarter of a million people across approximately twelve and a half thousand enterprises, and last year industry exports were worth £6.5bn. You have learned the lesson that companies in a global world need to trade internationally to remain competitive. The globalisation of markets has of course given rise to a real argument about the nature of international trade – liberalisation/protectionism, free trade/fair trade – all terms we hear used in different contexts – sometimes meaning different things to different people. The UK Government believes strongly in the arguments for liberalisation and free trade, but we also recognise the importance of a level playing field for our exporters at home and fair trade for the countries of the developing world. It is in everybody's interests to liberalise the global trading community. Overseas economies and domestic industries stand to benefit. Opening up new markets and reducing barriers to trade for all countries. The advantages are clear. Opening up domestic markets and improved access to economies overseas provides increased choice; competitive prices; and better value for consumers. But in these objectives it is important that the international trading community develops a common framework – the level playing field – and that within that framework the predicaments of very poor countries is catered for. That is why it is essential that we continue to work towards a successful outcome at the fifth WTO Ministerial Conference in Cancun (Mexico) next September. We see huge potential here. Trade liberalisation provides all countries - rich and poor - the opportunity to specialise in those areas where they can compete best. And of course, I'm sure you are well aware that trade in textiles and clothing has been a prominent feature of international trade negotiations. It is a sector which developing countries focus upon all the time. Indeed, for many developing countries the textiles sector is second only to agriculture in terms of importance for employment and export earnings. For developed countries, like the UK, whilst often seen as a traditional industry, it remains an important sector of the economy. And we are not alone among the more developed economies to recognising the importance of the industry – because of the innovation – the flair – the new technologies the industry uses. For many countries there will be some tough decisions and tough negotiations ahead. The outcome may cause short-term pain. In some countries it may mean forcing uncompetitive and unproductive domestic industries to restructure. Here in the UK we have seen the benefits of this restructuring and bearing the short-term adjustment costs. The textiles and clothing sector is a good example. Over the last 20 years the industry has seen a massive reduction in jobs in the UK. Much of this pain has been the result of opening up to foreign competition and cheaper imports. However, there have been many impressive success stories. Those companies that have invested and become more innovative have moved up the value chain and remained competitive. For example, Ramon Holdings Limited, in Leicestershire, is a successful company making a very good living from manufacturing dusters! Their product is a very high value-added hygiene product. The cloth is a very technical textile - impregnated with specialised chemicals. The company is literally cleaning up!! A real value-added product. Another long-established company, J B Broadley, in Lancashire, is also very much at the sharp edge of technology in textile coating. It is one of the World's largest coaters of airbag material used in the automotive industry. Its silicone coating is an ideal material because of its durability, excellent adhesion to the fabric and its ability to protect the airbag fabric over prolonged periods. But this trade round is not just about opening up more developed markets to overseas competitors. If development is to be at the heart of this new trade round we also need to tackle trade-distorting subsidies. The government is clear in its mind that the common agricultural policy is unsustainable. We are pressing hard to reform CAP as part of the Doha negotiations. That is what we agreed at Doha – that we would phase out such subsidies. Since then despite the American Farm Act and a distinctly less enthusiastic response from some European colleagues, we remain constant in our commitment. We know what we signed up to at Doha – we meant it. We cannot continue with a system of subsidies that gives $2 a day to every cow in Europe … but leaves 1.2 billion men, women and children around the world living on half that amount. A new trade round provides major opportunity for UK business and industry. As well as those in developing countries and emerging economies. Opening up more markets and cutting duties around the world will create new job opportunities in manufacturing and service industries whilst increasing competition through greater choice and lower prices. We need to hear from you. I have enjoyed talking with you today and look forward to the forthcoming Textile Consultative Forum to be held at the DTI on November 20, which I will open; I hope many of you will be taking part in this; we want to hear your views. We need to know what your priorities are for the new round. We need to ensure that your views are taken into account in these negotiations. Of course I know that your sector has faced serious competition from overseas, which has meant a reduction in jobs for textile and apparel employees. Improving the skills base of the UK textile & clothing industry remains a key issue affecting its competitive future. That is why Government has supported a number of industry-driven initiatives aimed at retraining and developing the skills of existing staff, as well as attracting candidates with higher-level technical skills to meet the new demands of industry. This support has included £2 million through the Strategic Training for Apparel Textiles (STAT) programme, which targets retraining for the industry. And the UK textile and clothing industry is the first and only manufacturing sector with a trailblazer Sector Skills Council - Skillfast- which was launched in April and is now working with industry and government to improve skill levels across the industry. The Government's commitment to your sector has been underpinned by its active support for the National Strategy for the UK Textiles and Clothing Industry published in 2000 by the industry-led, Textiles and Clothing Strategy Group. This report identified the major issues facing the UK textile and clothing industry and set out a strategic approach to the challenges that lay ahead. It made 55 recommendations aimed at industry and government and is widely recognised as a blueprint for the sector's future. In response, the Department of Trade and Industry has channelled significant support to key areas such as:
In total the DTI has invested over £85 million over the last five years to deliver practical benefits to UK textile and clothing manufacturers and help them to adapt and modernise in order to compete more effectively in the global economy. Additionally, through Trade Partners UK's Sector Partnership Programme, the industry-led British Apparel and Textile Export Advisory Group - BATEAG - commissioned a study to look at the routes to overseas markets, and, marketing practices of UK businesses in the clothing, textile and footwear industries. Another key focus is London Fashion Week - a world showcase for British design talent. Trade Partners UK helped bring over more than 60 buyers and journalists from Japan, the USA, Russia, Greece, Italy and Spain to visit the London Designers Exhibition this September. They met with British fashion designers and viewed their collections at the catwalk show. In addition, Trade Partners UK sponsored the International Visitor's Lounge. It has also helped many fashion designers to expand their international horizons. One example is London-based designer Julian Roberts. Julian collaborates with textile designer Sophie Cheung to produce their Julian and Sophie collection. And this was showcased in the 'New Generation' exhibition area. Bringing so many prestigious press and buyers into London makes a real difference to British fashion, and hopefully this leads to direct benefits for the UK textile industry. Other direct, financial help provided by Trade Partners UK to textile companies is through Support for Exhibitions and Seminars Abroad – the SESA scheme. Exhibiting at overseas trade fairs is one of the most effective ways for businesses to test markets, attract customers, appoint agents or distributors, meet wholesalers, carry out research and make sales. Similarly overseas seminars allow firms to demonstrate the quality of their goods or services to an invited audience. SESA support has always been designed to help firms gain initial exposure in new markets. But it is not intended as a continuing subsidy. The primary focus of SESA is:
Since 1997 more than 6,500 business people in the clothing and textile sector have received support to attend overseas trade fairs. This amounts to some £14.3 million. In October I planned to host a Parliamentary reception for the International Textiles Machinery Association 2003. Unfortunately due to a recent operation on my leg I was unable to host this event. However, the reception underlined the Government's support for the NEC's success in securing ITMA 2003. And I am please to let you know that Advantage West Midlands will support the Textile Institute attendance at ITMA. The many actions taken by Government feature in the Textiles and Clothing Strategy Group's second report: Making it Happen- published in July this year to chart the progress made on the Group's recommendations and to set out the challenges that lie ahead. We can all be pleased with the progress made so far but as my colleague, Patricia Hewitt, stated in support of this report, "our work does not stop there. Government will continue to work with the TCSG to ensure this key manufacturing sector continues to improve and develop." But ultimately the success of the national strategy will depend on the industry's response to the challenges of the market. No doubt over the next few months – as the Doha negotiations reach the crucial run-up to Cancun – pressure on agriculture will mean more pressure on textiles and clothing, so it is important for the industry in the UK to advise the Government on the impact the Cancun proposals will have. To conclude, I would like to see the real partnership that exists between Government and the textile and clothing industry deepen as the trade negotiations gather pace. |
|
|
|
|
Other speeches by The Rt. Hon. Baroness Symons of Vernham Dean
(the following are available from the archive) |
|
