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CONFIDENTIAL

Annex 1

THE TEXTILE COUNCIL'S PROPOSALS

Proposals for Action by Government

The Council made four proposals for action by Government, that it should:

(i) introduce a tariff on Commonwealth cotton textiles;

(ii) prevent a disruptive rise in imports while the industry is adjusting

itself to reliance on tariff protection alone;

(iii) take swifter and more effective action to stop dumping and other

malpractices which result in distortion of trade;

(iv) encourage re-equipment in the traditional textile areas by offering

the incentive of investment grants no less favourable than those available in Development Areas.

Proposals for Action by the Industry

2.

The Council made three main recommendations to the industry as follows: it should:

(i) increase the rate of re-equipment on the basis of the estimated future

market demand;

(ii) move rapidly towards multi-shift systems of working and associated

higher wage structures;

(iii) develop closer technical and commercial links between the various stages of production and marketing by integration of activities within existing groups and by forming new integrated groups and consortia from among existing medium-sized and smaller firms.

However, the Council considered that these proposals, taken in conjunction to those for Government action, would not entirely solve the industry's problems and so it suggested that the industry must:

(iv) rationalise production so as to achieve longer runs of bulk lines;

(v) extend the use of work study, management training and other aids to

the effective utilisation of manpower and equipment;

(vi) place greater emphasis on design, market research and the training of

marketing staff;

(vii)

create conditions which will attract the quality of men and women necessary in a modern capital intensive industry.

CONFIDENTIAL

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