Home / Knowledge / News / Textiles / New carbon pricing policy to further erode TCF sector
New carbon pricing policy to further erode TCF sector
15
Jul '11
The Council of Textile and Fashion Industries of Australia (TFIA) is frustrated that the Gillard government's carbon pricing policy has failed to take into account the severe pressures being faced by one of Australia's most trade-exposed industries.

“Textiles, Clothing and Footwear (TCF) is one of the most important employers in this country,” TFIA CEO Jo Kellock says. “But its profitability has been undermined by successive governments.”

The TCF industry plays an important role in providing regional employment and is a key employer for unskilled female workers and those entering the employment market.

However, its viability has been eroded over the past few decades by the steady decline in tariffs on imported goods and inadequate policy frameworks to stem the shift to offshore production.

Clothing and textiles manufacturing has been particularly hard hit, points out Ms Kellock.

“Manufacturers have been hit from all sides – with rising Australian dollar, increase in cost of raw materials, the rise in labour costs and the heavy competition from imports. There are so many factors that are making it incredibly difficult to keep manufacturing here.”

The lack of support for this industry to help it negotiate through this latest imposition may well be the tipping point for many remaining companies, she adds.

While the industry strongly supports a sustainable low carbon approach, the current carbon pricing policy will submit the industry to further cost pressures that it has no option but to absorb. “This is a very trade-exposed industry,” Ms Kellock says. “With all the competition from importers, TCF manufacturers are not in a position to pass on added costs by raising prices.”

The carbon price will hit manufacturers around 12 months after the SIP scheme has been wound up, Ms Kellock points out. “Other industries are being promised huge compensation programs to counter the impact of carbon pricing which has buoyed their outlook, while TCF manufacturing is apparently being asked to absorb the additional costs with limited means to offset them, a daunting proposition,” she points out.

The concern is that compensation may be too little too late. It is essential to retain a vital and viable TCF manufacturing base in this country, she adds. “Apart from its significant employment base, we also rely on the ability of local TCF manufacturers to supply important areas such as our emergency services with uniforms – not to mention the importance of having an industry that can respond quickly to retail orders and deliver quality products that the consumer can be confident are safe.”

Council of Textile and Fashion Industries of Australia

Must ReadView All

Textiles | On 9th Dec 2016

ACIMIT signs MoU with Pakistan textile bodies

In a bid to strengthen the trading in garments and textiles between...

Textiles | On 9th Dec 2016

‘Less demand may make it hard to achieve export target’

The $48 billion target for textiles and garment exports for 2016-17...

Textiles | On 9th Dec 2016

GST Council may decrease tax rates in future: CBEC

The goods and services tax (GST) Council might reduce the proposed...

Interviews View All

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search