Irish clothing industry sceptical

Irish clothing manufacturers have given a cautious welcome to assurances from the EU's trade commissioner, Peter Mandelson, that…

Irish clothing manufacturers have given a cautious welcome to assurances from the EU's trade commissioner, Peter Mandelson, that there will be no clothes shortages this winter.

However, they remain sceptical that the huge problems caused by quotas imposed on Chinese textiles in June will be solved in the longer term.

The quotas, implemented in July to protect textile manufacturers in southern Europe, were almost immediately overshot, leaving many importers with the problem that goods they had already ordered and paid for were barred from entering Europe.

As up to 80 million items of Chinese-made clothing remain blocked at European ports - two million of them bound for Ireland - Mr Mandelson's proposals would ease problems now but create problems next year, said Michael Hannon, director of the Irish Clothing and Textile Alliance.

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"Spring collections, which have already been ordered and paid for, would be shipped some time between now and the end of the year. If quotas were brought forward to release the late winter goods now blocked there would be question marks over next year's early supplies," said Mr Hannon.

Describing Mr Mandelson's description of European importers' fears as "hyperbole" and "very unfair", Mr Hannon said: "Eighty million garments is not a small problem."

Duncan Graham, chief executive of Irish clothing manufacturer Libra, also expressed concern that Mr Mandelson planned to resolve the immediate crisis by tapping into next year's quota. "It doesn't solve the problem further down the line," said Mr Graham.

Manufacturers such as Libra were locked into contracts for nine months ahead, he said, and many like him had placed orders for the 2006 spring/summer collection.

"What could happen is that importers will fly all their goods in [rather than shipping by sea] on January 1st next year to get in ahead of the quota expiring again, and that's when the knock-on effect on price will really kick in."

Eddie Shanahan, director of marketing for Arnotts, welcomed Mr Mandelson's statement yesterday as a "suitable climbdown" and a recognition that the quotas imposed on Chinese goods were "ill advised".

Kitty Holland

Kitty Holland

Kitty Holland is Social Affairs Correspondent of The Irish Times