PSI fails to save textiles industry

Apr 11 2005 (Joy Online) -- The local textile industry faces imminent collapse as a result of unfair trade policies on the international market.

Manufacturers of local textiles say the government has failed to address their problems despite numerous meetings and proposals submitted to it.

The concerns follow the reported imminent collapse of Juapong Textile in the Eastern region.

The collapse of the company has implications of job losses for about a thousand workers in the town. Abraham Coomson is the Secretary General of the Textile, Garment and Leather Workers Union of the Federation of Labor.

When he appeared on JOY FM's Super Morning Show today, Komla Dumor asked him how the local textile industry could be saved from collapse.

“ Nigerian Government gives 50 per cent subsidy to local textile manufacturers who are manufacturing to export, here in Ghana we do not have even 1 per cent subsidy.” he said.

Asked if the President's Special Initiatives (PSI) in Textiles had helped the industry, he hesitated, laughed and said “ There is nothing, we have not seen anything, this PSI thing is about garment but we have not seen anything.”

He noted that the Anti Dumping Bill, which was presented to Parliament, has not been passed due to the lack of political will on the part of government.

“ Problems that had beset the textile industry is contained in that bill, and it is not only Juapong that has been affected, ATL, Printex will eventually go because Printex is discussing with the Nigerian Government to relocate.” he said.

He said about 900 workers are likely to loose their jobs at Juapong Textiles, adding TEGLEU is only asking for reduction in import duties on goods including raw materials of printed fabrics that are prone to smugglings, under invoicing and dumping