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Increasing cost of power, threatens production industry
Jun '10
With the increasing cost of power, the Textile, Clothing and Footwear (TCF) industry fear threat of losing out competitiveness in the country.

As per the TCF council, with the significant surge in the price of power from this month, competitiveness of production in Fiji will further plummet.

Fiji's TCF industry specifically is susceptible as it faces constant high-level of competition from other nations that run low-priced business. Currently, the industry is recovering from the adverse effects of the world economic downturn and salary rise of 2009 and the power price problem has just been included in their list of woes.

There might be issues that the Fiji Electricity Authority (FEA) is facing, but had the stakeholders, specially the production industries such as the TCF, been consulted to find out the impact of this rise in power price on businesses, things would have been ideal, said the TCF council.

Another matter for concern is the scale and urgency of surging the price, as it will decline TCF industry's competitiveness in the global market. More so, improvements made in production will also be wiped out. But a probable solution for now, that is, lessening the power tariffs for local users, will be of great help for the workers of TCF industry.

In the meantime, the Commerce Commission has decided to realign the cost of power, and therefore, council expects that representatives will take feedback from stakeholders and resolve the problem with a win-win result for both businesses and FEA.

Fibre2Fashion News Desk - India

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