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22.07.2005 Business & Finance

Govt to salvage local textile industry- Osei Ameyaw

GNA

Accra, July 22,GNA - Mr Kofi Osei-Ameyaw, Deputy Minister of Trade and Industry, on Friday said the Government was aggressively implementing programmes to rescue the local textile industry from collapse.

He said the Government's rescue plan would lead to a hike in employment, payment of more corporate tax and the opportunity to competitively enter the export market.

The Deputy Minister was associating himself with a statement made on the state of the textile industry by Mr Lee Ocran, Member for Jomoro. The maker of the statement had identified dumping of cheap imported textile, high tax regime and smuggling as the main factors undermining the industry.

Mr Osei Ameyaw said: "Tariff on textile inputs such as dyestuff and colours have been reduced from 10 per cent to 5 per cent in 2004." He said the measure, which was taken to reduce the cost of production of textile, could be reviewed downward.

According to him, the Ministry had created a single corridor for entry of African Textile prints through Takoradi port.

"In addition, there is a requirement of 100 per cent physical examination jointly by officers from the Customs Excise and Preventive Service and Ghana Standards Board."

He said the measure was aimed at eliminating under-declaration and mis-description of imported textile and curb the activities of dubious importers, who use porous entry points.

" It would also ensure full payment of import duties and other charges, which will compel importers to sell at appropriate prices." Security personnel would also have it easy in identifying smuggled textile coming into the country from entry points other than the Takoradi Port.

He said the Ministry was discussing with the local textile manufacturing companies, the possibility of assisting them to re-tool their plants to enable them to increase their production efficiency and become competitive.

Mr Osei Ameyaw said the local cotton industry was being restructured to ensure that such initiative in support of the textile industry would match current developments in the global cotton market.

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