Garment Industry

Dear Madam Prof Ron Duncan’s letter (PIM January) regretfully reflects the view of an academ ic which lacks the knowledge on what

really happens in the market place

“SPARTECA” was formed way back in 1982 to give countries in the Forum group an opportunity of providing employment for their peoples with the knowledge that any development in this region could well be at the expense of jobs in Australia and New Zealand.

They had to pick “Labour Intensive Industries” to soak up this labour and of course they chose, among others, the high est labour intensive industry, that being the

clothing industry.

One should be in no doubt whatsoever that without the benefits of SPARTECA there would not be the clothing industry that exists today in Fiji.

The clothing industry, in Fiji comprises

about 70 firms employing in all about 14,000. Some 25 per cent of these firms are very efficient and have used the oppor tunities under SPARTECA to become more world competitive and are now exporting to the USA and Europe.

The remainder are still below world competitive standards and will find it pro gressively harder to compete as duties are reduced on clothing imports into Australia and New Zealand from non Forum Group countries.

The only short term “saving grace’” that these firms have is that provided they remain reasonably competitive and pro vide a quick turnover service to Australia and New Zealand, a service that is not available from our near Asian neighbours, the longer they will be able to remain in business.

But eventually the hot breath of Asian competition will force them to become more world competitive.

Philip M Levy

TCF Consultant Brisbane.