PRESS RELEASE BY THE PRIME MINISTER, THE HON. E. G.
WHITLAM, CLOTHING INDUSTRY
The Prime Minister announced today that the first reference
was being forwarded to the Textiles Authority within the
Industries Assistance Commission. The reference followed
discussions between the Prime Minister and the Minister for
Overseas Trade, Dr. Cairns and the Minister for Secondary
Industry, Mr. Enderby. The reference asked the Authority to
un dertake an immediate examination of the principal sectorsof
the clothing industry to ascertain whether action should be
taken under the GATT Textiles Arrangement to restrain imports
into Australia. The sectors covered were woven shirts, knitted
outerwear, dresses and related clothing products.
" It is time to find out the facts", the Prime Minister said.
The Prime Minister said that the reference followed
representations and claims by representatives of the local
clothing industry of damage from imports. Imports of some
clothing items had increased in recent months but the domestic
market had grown substantially and local production was at
high levels. Mr. Whitlam pointed out that there was a normal
sea-sonal decline in the textile industry at this time. Checks
with the Commonwealth Employment Service have revealed that
statements in the press of layoffs have been grossly exaggerated.
Since the 25% cut in tariffs was made in* July, 1973, a total of
389 persons in the textiles and footwear industries have b. een
displaced. The seasonal nature of employment in the industry
is shown by the 800 persons who were displaced in January, 1973,
550 persons in January 1974 ( an abnormal low) whilst there
was a dectease of 400 jobs in April/ May last year. The Prime
Minister said tha December, January, May and June were months
where there was traditionally a seasonal decline in employment
in the industry.
" It is ty no means clear that restraint action is necessary
at this stage and no clothing company has submitted a detailed
formal case to the Government. / 2
0 -2-
" However, to allay any concern that may be developing about
the future of the textiles indulstry and because some people
are trying to make political capital out of the situation
without presenting the facts, the best thing to do is to have
a public inquiry to obtain any * evidence which is available
and determine whether action is necessary", said the Prime
Minister. The. Prime Minister invited manufacturers and other interested
parties to start, preparing evidence now for submission to the
Authority. The Textiles Authority would announce arrangements for public
hearings shortly. Under procedural arrangements which the
Government announced in February, the Textiles Authority is
being asked to report as soon as possible but within a
maximum period of 60 days. If action for restraints is
recommended by the Authority, urgent negotiations would then
be initiated with the exporting countries concerned.
Any employees laid off as a result of the lifting of the import
quotas or the 25% tariff cut and whose employer makes a
declaration to this effect will receive their average normal
wages over the previous six months until satisfactorily
re-employed or a period of six months has elapsed.
The Prime Minister added that if other sectors of the textiles
and apparel industries faced difficulties from import
competition, consideration would be given to sending further
references to the Textiles Authority.
CANBERRA, A. C. T. EN6MA, 17END6 MAY, 1974