Clothing prices ‘likely to rise’

Press, 20 July 1987, Page 9

Clothing prices ‘likely to rise’

Clothing prices are likely to rise because speculators are ‘hogging” garment import licences, says the president of the New Zealand Textile and Garment Manufacturers’ Federation, Mr David Watson. More than 70 per cent of apparel import licences this year had gone to importers who had not had any previous interest in the industry, garment importers said. Mr Watson said some importers were simply speculating in the tender round, and selling licences later. "The costs will have to be passed on to the consumer. “We are not against genuine transfers, just people making money out of the licence only.” Speaking at the Textile and Garment Manufacturers’ Association conference at Rotorua on Satur-

day, Mr Watson said the federation wanted the Government to tighten the rules relating to licence transfer, and to introduce substantial payments to ensure that licences were taken up once they were won. It was nonsense to suggest that garment manufacturers in New Zealand were causing prices to stay high, Mr Watson said. “Garment prices in New Zealand are conrolled by extremely strong competition in a wide-ranging industry. It is well known that price increases for garments recently have been less than the consumers’ price index average.”

However, New Zealand manufacturing was battling uphill because of inflation, company tax rates, interest rates, regional development incentives, and other factors, Mr Watson said.