TFIA calls for intervention on textile tariffs
The Council of Textile and Fashion Industries of Australia (TFIA) has called on industry stakeholders to hold a debate about the future of the textile, clothing and footwear (TCF) industry. This follows its recent submission to the new Abbott government setting out a list of priorities.
TFIA chief executive, Richard Evans, says: “We have already seen Minister [for Small Business] Billson flag our concerns about independent contractors within the supply channel being automatically deemed employees to the detriment of them and their clients. We welcome the Minister’s comments, and we hope this leads to relief for our hardworking industry, overburdened by regulation.
He adds: “We would also welcome the Abbott government to consider the issue of design intellectual property, and the manner in which tariffs place an unfair tax upon Australian designers. Our textile and fashion designers are rated as some of the best in the world, yet we discriminate against them because we place a tariff against their design.
“This is a ludicrous situation where we have virtually forced manufacturing jobs off shore; yet now, because designers cannot source adequate and appropriate manufacturing in Australia, they are forced to pay a tariff on their work.”
According to the TFIA, the TCF industry is “extremely hardy” with more than 40,000 employed in the sector, which represents almost 10% of the country’s manufacturing industry. However, Mr Evans claims that niche designers who are unable to source competitive manufacturing in Australia are forced to source from other countries and are subsequently required to pay a tariff.
“Our fantastic designers, who complete the entire pre-manufacturing process in Australia, are forced by the consequences of government policy to import their designed product,” he continues. “If they could source competitive manufacturing in Australia they would not be penalised, but as they can’t, we impose a ridiculous handicap on their IP.
“It’s time for a mature discussion about tariffs. For too long, our essential TCF industry has been required to carry the burden of market change for global competiveness, to the detriment of many Australian companies; and now we penalise our Australian designers because many manufacturers have given up the market.
“The industry is ready for a tariff discussion and we ask the government to engage with us.”
