New textile programme launched

In a welter of publicity, the department of trade and industry has completed four years of intensive investigation into the needs of the clothing and textile sectors, and at long last officially launched the customised sector programme (CSP). “The industry is obviously delighted that it’s all been finally announced,” Brian Brink, executive director of the Textile Federation, told FTW, “although there’s nothing that we didn’t know already – and some of the programmes are already in operation. “Now other components and interventions have been added, they’ve strengthened the teams operating them, and we obviously welcome the department’s implementation.” The industry was also glad that all the areas normally at issue have been covered in the final CSP. “Investments, skills, illegal imports, tariffs, duties – they’re all considered,” said Brink, “although, again, most of these interventions have been under way for about a year now.” He also appreciated the sentiments behind comments about the necessary resources to turn around the ailing industry sectors, made by wellknown industry consultant, Justin Barnes – although not necessarily agreeing with the exact numbers he used. Barnes told Business Day that implementation of four core programmes – most of which will be administered by the Industrial Development Corporation (IDC) – will take immediate effect. But, he added, the department still had not revealed how much in resources was available to turn the sector around. And Barnes estimated that the recapitalisation of the industry, including investment in new equipment, advanced training and operational improvements, would cost about R15-billion – more than double the projection of R7-bn in the original sector programme drafted four years ago. But he said implementation of the plan was better late than never, as the cost to the economy of the industry shutting down would be far greater. The programme now finally presented by the department has four core elements, and it also outlines a number of support measures. The competitive element is covered by the clothing and textiles competitiveness programme aimed at putting a keen edge on manufacturers’ competitiveness. A firm and cluster level clothing/textiles competitiveness improvement programme (CTCIP) is also in place, according to the department, and provided on an attractive cost-sharing basis. The capital upgrade programme is available to clothing, textiles and footwear manufacturers through the enterprise investment programme, and a highlight is that the International Development Corporation (IDC) will make preferential loans available at prime minus 5%. Tariff cuts also figure, with import duties removed on textile inputs not locally-manufactured or not available in commercial quantities. The global downturn is also taken into account, with the CSP including measures to allow the IDC to help fund firms in distress. The core programme for skills is designed to upgrade these skills in association with the sectoral education and training authority (Seta), the department of labour and the national skills fund.