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Government urged to honour commitments

07
Nov '08
Close on the heels of one of the most iconic names in the garment industry; Pringle shifting its manufacturing operations from Hawick in July, another home grown textile company whose roots can be traced back to as far as 1874, has decided to make thirty jobs redundant.

At the time Pringle was shifting its operations, the Scottish Government had pledged to support the town and its economy as it still saw good opportunities in the textile sector. Local politicians have now written letters and reminded the government asking them to redeem the promises made.

They have suggested that the Hawick action plan, which was prepared at that time in July, now be implemented with a sense of urgency and assistance be provided at the earliest. They also add by saying that the latest departure could send the wrong signals and lead to a sense of insecurity in the sector as a whole.

They blame the high interest rates prevailing in the UK compared to those in other countries of the EU and the US, which is responsible for the sickness prevailing in the sector as its makes domestic companies less competitive vis-à-vis their global competitors.

They have requested the government to take immediate action as the situation is expected to worsen in the next few months due to changed global dynamics.



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