R4.9 billion approved and R3.1 billion disbursed in the clothing and textile sector to save and create jobs – Minister Davies
The Minister of Trade and Industry, Dr Rob Davies says R4.9 billion was approved and more than R3.1 billion was disbursed till the last financial year through the Department of Trade and Industry’s (the dti’s),Production Incentives Programme (PIP) within the Clothing and Textiles Competitiveness Programme (CTCP) to create and save jobs in the sector. Davies was speaking at the First Clothing Manufacturing Industry Sector Summit hosted in Durban by the National Bargaining Council for the Clothing Manufacturing Industry (NBCCMI).
According to Davies, throughout the sector a number of companies who qualified and drew from both programmes were able to save 81 252 jobs, while additional 9 672 were created and the net new jobs grew by 4 785 jobs till the last financial year from the inception of the CTCP.
Davies said that this was an indication that the clothing sector and others are significantly labour-absorbing sectors and that government needs to create more opportunities in order to keep it sustainable.
“The issue of rebates in the clothing and textile sector is still a burning issue within the industry, and part of the government’s plan is still to tighten control of imports and the raising of tariffs to the maximum boundary like we did in the beginning when we were revamping the whole industry. The whole value chain must still be involved in the sector going forward,” said Davies.
Davies added that localisation in every sector would no longer be an option. He said once designation has been translated into a practice note by National Treasury, it will be an obligation that public entities have to buy locally produced goods.
“Whatever is needed to be done to protect the industry, it must be done, but it should be in the interest of industry development and to improve local supplier base. We want to see consequences for those who do not want to implement localisation and empowerment,” he said.
He urged delegates to start a dialogue between retailers and manufacturers around local production and not abandon the issues of empowerment and transformation.
Enquiries:
Sidwell Medupe
Departmental Spokesperson
Tel: 012 394 1650
Cell: 079 492 1774
E-mail: MSMedupe@thedti.gov.za
Follow us on Twitter: @the_dti
