FOOTWEAR
16. THE HONG KONG FOOTWEAR INDUSTRY IS NOW
UNFORTUNATELY IN A PATHETICALLY DISTRESSED CONDITION. IT
IS CONCENTRATED IN TWO SMALL LINES OF PRODUCTION AND THUS
VERY SENSITIVE TO MARKET INFLUENCES.
IT IS ALMOST A
COTTAGE-TYPE INDUSTRY. MORE THAN HALF THE SMALL FACTORIES
EMPLOY LESS THAN 10 WORKERS EACH.
AS A RESULT OF THE DROP
IN PRODUCTION SINCE 1971, AT LEAST PARTLY FOLLOWING THE
DISCRIMINATION IN THE EEC GSP, MANY HUNDREDS OF WORKERS
HAVE LOST THEIR JOBS.
COMPARED WITH 255 FIRMS, IN EARLY 1973
ONLY 155 ARE NOW STILL MAKING FOOTWEAR. AT THE END OF 1971
THE FOOTWEAR LABOUR FORCE WAS NEAR 13,000; BY FEBRUARY 1974
IT WAS LITTLE MORE THAN HALF THAT FIGURE.
17: THERE NEVER REALLY WAS ANY JUSTIFICATION FOR
DISCRIMINATION AGAINST HONG KONG IN THE ORIGINAL BEC SCHEME
IN 1971. WE NEVER CAUSED ANY MARKET DISRUPTION IN THE EEĊ.
FOOTWEAR NEVER REPRESENTED MORE THAN 5/6% OF OUR EXPORTS TO
THE EEC. NOW THE FIGURE IS LESS THAN 3% WHILE OUR COMPETITORS
THRIVE.
OUR WEAK INDUSTRY HAS SIMPLY JUST NOT BEEN ABLE TO
COPE WITH THIS WORSENING SITUATION.
OUR FOOTWEAR EXPORTS
TO THE SIX IN 1973 WERE DOWN TO HALF THEIR 1971 LEVEL EVEN
IN VALUE TERMS (WHICH DISTORT BECAUSE OF PARITY CHANGES,
RISING COSTS, ETC). EVEN IN THE UK, WHICH IS OUR BIGGEST
/FOOTWEAR MARKET,
9.