Objective
Devise policy settings to assist the industry to restructure and reposition itself to be sustainable over the long term.
Significance for Australia
Sales and service income for the textile, clothing and footwear (TCF) industry, excluding early stage leather tanning and wool scouring, for the year 2005-06 (latest available figures) was $9.2 billion, which resulted in industry value added of $2.7 billion. This represents approximately 2.6% of total manufacturing industry value added.
International developments, such as Free Trade Agreements, will continue to present both opportunities and challenges for the sector.
Departmental role and current achievements
The Department manages the $575 million TCF Post-2005 Strategic Investment Program Scheme (TCF Post-2005 (SIP) Scheme). This non-competitive grant scheme came into effect on 1 July 2005 and runs until 30 June 2015. Together with a staged tariff reduction program, this scheme will provide the industry with the support and time to adjust to a lower tariff environment.
In addition to the TCF Post-2005 (SIP) Scheme, the $50 million 10-year TCF Structural Adjustment Program supports further TCF industry consolidation and labour market adjustment; the $50 million 10-year TCF Product Diversification Scheme (PDS) assists clothing and finished textile manufacturers located in Australia to internationalise their sourcing arrangements and complement their existing product range; and the $25 million 10-year Small Business Program encourages improvements in the business culture of small TCF firms in Australia.
The Department also manages the Expanded Overseas Assembly Provisions (EOAP) scheme, which provides duty-free entry for clothes and footwear made overseas from mainly Australian fabric and leather; maintains the Register for Approved Occupational Clothing; and is the Program Administrator for the SPARTECA (TCF Provisions) Scheme under the South Pacific Regional Trade Economics Co-operation Agreement, which provides duty relief on imports of TCF goods. The Department has policy responsibility for TCF tariff concessions, TCF policy by-laws and TCF rules of origin.
Targets for 2008-09
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Provide policy advice on matters relating to TCF
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Implement and manage the TCF Post-2005 Assistance Package (except the TCF Supply Chain Program which commences in 2010)
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Provide TCF specific information in relation to multilateral and bilateral trade arrangements
For further information
Phone: +61 2 6213 6868
Email: inquiries@innovation.gov.au
Web: www.innovation.gov.au
May 2008