Textile policy clarity call

Press, 16 July 1980, Page 7

Textile policy clarity call

PA Wellington The Labour • Party’s shadow Minister of Trade and Industry, Mr J. A. Walding, has called for an immediate statement of clarification by the Government, on its policies for the restr cturing of the textile industry. “Events in recent days seem to indicate clearly tliat the Government’s statements of restructuring are not worth the paper they are written on, and that in fact the Government is prepared to sit back and allow the whole industry, even viable aspects, slide to the wall,” Mr Walding said. “If, as now seems inevitable, the Government simply sits back and allows the (Mosgiel) debenture holders to handle events, there will be huge losses for other creditors. “The enterprise is too big for the Government to pass over responsibility in that manner,” Mr Walding said. •■' ■' He asked when, and for whom, the promised $5 million of financial assistance would be available. ■There was no mention of SSM in the estimates attached to the Budget, and the ; figure allocated was only $500,000, he said. Mr Walding asked under

what conditions potential buyers for firms such as Mosgiel would be eligible for assistance, and what form that assistance would take. There had been considerable confusion as to whether any possible assistance would be in the form of a loan, or a grant, he said. “Just what steps will be taken to provide, alternative training, for the now very large number of workers facing redundancy, and in what direction will any 'retraining’ programme be ’directed?” Mr Walding asked. He said the Labour Party supported restructuring of the textile industry. But such restruc-. taring demanded that the Government provide both the framework, and the interim assistance, to ease the transition, and develop alternative employment." Mr Walding said the Government was failing completely to accept this responsibility. “They have made a number of vague promises, but in practical terms none of those promises are being fulfilled,” he said. “Unless firm leadership is provided right now the viable aspects of the textile industry —’ll be decimated.”