Is there a ight to textile and clothing industry protection?
Finance minister Manuel prudently rejects a R100/month basic income grant for all ‘as a right’ – it would probably need a doubling of VAT to 28%, cost the fiscus R83bn a year, and bankrupt SA. Then he tells the clothing and textile industry there’s no government rescue plan and difficult market conditions are likely to continue, so they should strive to innovate and become more competitive. One analyst suggests studying how the automotive industry has identified and shared manufacturing best practices during the last seven years. But that breathing-space was courtesy of import tariffs and export subsidies, with high car prices holding back growth. No chance of such costly privileges for clothing, with cheap Chinese clothing flooding world markets. And yet – contrarian US billionaire Wilbur Ross’s International Textile Group helps Chinese producers sell to the US, cuts costs, expands overseas and is becoming one of the largest US textile makers, partly by acquiring bankrupt firms. If he
